Skip to Content
0
Former Member
Feb 22, 2008 at 09:38 PM

Moving Average Costing

17 Views

My clients business buys used equipment on the secondary market that they refurbish & sell. The prices fluctuate pretty dramatically based upon supply and demand; so it really isn't possible to set a standard cost that would be valid throughout the year. Using standard costs results in huge fluctuations in the inventory purchase price variances month over month and quarter of quarter. Therefore, we explored using moving average costing.

Could someone help me get the moving average to update using PM04, Does SAP actually recommend against using moving average costing?