cancel
Showing results for 
Search instead for 
Did you mean: 

Price differences in moving average price

former_member608262
Discoverer
0 Kudos

Hello Dear friends

I'm learning basic concepts of SAP and during studying about standard and moving average prices, I faced a sentence that "price difference occurs in moving average price in exceptional circumstances". So my question is "What are these exceptional circumstances?"

Accepted Solutions (0)

Answers (1)

Answers (1)

lingaiahvanam
Active Contributor

Hi,

In the SAP System, there are two types of price control:

  • Standard price - Price control S
  • Moving average price - Price control V

These two types of price control differ in how they handle price variances resulting from goods receipts or invoice receipts.

Moving Average Price

Valuation using a moving average price results in the following:

  • Goods receipts are posted at the goods receipt value.
  • The price in the material master is adjusted to the delivered price.
  • Price differences occur only in exceptional circumstances.

If a material is assigned a moving average price (MAP), the price is automatically adjusted in the material master record when price variances occur. If goods movements or invoice receipts are posted using a price that differs from the moving average price, the differences are posted to the stock account; as a result, the moving average price and the value of the stock change.

Best Regards,

Lingaiah