What is reflecting the V price value in a S price material?

[former_member676772]

Dear Friends,

I have a doubt regarding the MAP in the master data of a Semi-finished / Finished goods.

I know that for statistical purposes, the system also calculates the moving average price for materials that are valuated at standard price in the material master record but how is this V price really calculated?

Is the MAP in the case of these S price materials reflecting the fluctuations that we might have in the production orders (variances).
I mean, the S price materials are calculated based on the BOM and Routing but... could it be that their V price is showing the real price when we place our material back to stock (all actual postings in each Production Order)?

If that would be the case, the MAP in the S price materials would be a good indicator that na analysis on the variances for this materials is required and probably also a correction of the BOM/Routing/Tarrifs, etc.

You might think that 'I discover America now with my stupid questions' but...in my company, we don't pay attention at all to this indicator and no one was able to explain me how it is calculated...because very often I see differences between the S price and the V price on finished or semi-finished materials.
And if I am right in my assumption would be very useful in our fight with the Variances.

I thank you very much for your support in this matter,

Andreea