valuation of material stock

[Former Member]

Hi MM Experts,

    I am ABAP Developer I am new to SAP MM , i am confused about material price concept. i read some blogs and i understood that there are different organizational levels.

    1.   In that where the material is valuated ?? company level or plant level ??

    2.   If both are right , in which cases they prefer company/plant ??? please explain me with small example.

    3.   And how can we identify the material price is valuated at company or plant ??

    4.   If the material is valuated at company level or plant, is that is the final price to the customer(irrespective of their shipping address)??

    5.   how many types of prices are there for material ??

    6.   Is there any standard  BAPI, which shows all prices  of material??

    7.   And is there any standard BAPI which gives over all material stock (plant wise,storage Loc wise) ?

Regards

Venkatesh

[anand_sagarsethi · Accepted solution]

Hi Venkatesh,

when you have production of material in multiple plants, you like to have that material valuated at plant level because you wish to see cost variance as which plant produces cheaper. Cost of running in plants are  different because of labor cost, machine running cost. Electric cost and many more. In that scenario we valuate material at plant level.

sometimes you don't produce but since plants located at different locations, in that cases you have shipping cost which you want to add on material in those cases we prefer valuation at plant level.

It is the question of profitability tracking.

please follow below link that help you go step by step in detail, and hopefully answers everything.

Thanks

Anand

[Former Member · Accepted solution]

Hi Anand,

     your answer is understandable to me. Now i am clear about reasons of valuation at plant and companycode levels. can you help me  to know about S(Standard Price) & V(Moving Average Price) of material with simple example.

Thank you

Venkatesh.

[anand_sagarsethi · Accepted solution]

basic fundamental rule is raw materials are set on moving average prices.

and semi finished and finished goods as standard price.

reason is simple: let say you make match sticks box.

you want fix the price of match stick box for 6month or a year because it's what you sell.

but you want to see cost of raw materials affect its cost based on vendor, shipment cost etc,

wood sticks let say bought from 2 vendors one and .1p and another at .2p you want the cost of those to be affected because u consume it for your own need. So if you bought 100 each from vendor you will have .15p as avg price.

you will not do the same to your match stick(finished good) as you don't consume it. You sell it.. And based on your past experience you know what standard price it will be going to stay for year or 6 month based on company policy.

Thanks

anand

[former_member197616]

Hi, Please find the answers In that where the material is valuated ?? company level or plant level ?? : Ans : A material inventory can be valuated at plant level or coompany code level too . Normally plants are attached to the company code. If maintained at Plant level , for that material total stock value will be sum of all plant stock values . Plant valuation provides differentiated pricing .This is config and one tome for the client .     2.  If both are right , in which cases they prefer company/plant ??? please explain me with small example. Ans: Standard practice is at plant level to have the differentiated pricing .     3.  And how can we identify the material price is valuated at company or plant ?? This is a confg .You can check this at spro--mm-IM     4.  If the material is valuated at company level or plant, is that is the final price to the customer(irrespective of their shipping address)?? Ans : No . Every time the purchase price or sale price varies . Though the MMR is given a price with S std price or V Moving average price , if there is a difference in PO price / Invoice / etc system posts price difference accounts .     5.  how many types of prices are there for material ?? Ans : Two Types S standard price :Means price for a product is constant . V Moving average price . System calculates the MAP based upon the new price and updates.     6.  Is there any standard  BAPI, which shows all prices  of material?? Ans : What do you mean by all prices ? Try table MBEW .No need of BAPI.     7.  And is there any standard BAPI which gives over all material stock (plant wise,storage Loc wise) ? Ans : standard reports are available . Try MB52 . rEGARDS

[ankurch]

Hi Venkatesh,

The answer of your question might be little complex for you just because you are ABAP consultant.

1. First of all there are two kind of material price Nett Price & Effective Price.

2. Valuation area - The organizational level at which material is valuated, called valuation area.

it can be plant or company code level, if Production planning & product cost accounting is active than valuation area must be at plant level.

You can check the valuation area through transaction code "OMWD"

3. If valuation area at plant level than same price will be maintained for similar material, if its at company code level than different price will be maintained at difference plants of same company code.

4. You can check material price through "CKM3"

5. Price control S(Standard Price) & V(Moving Average Price) can be maintained for material.

6. Use transaction code "MB52" to generate the list of stock material with storage location and value.

Please check & revert back!!

Thanks & regards,

Ankur Chauhan