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author's profile photo Former Member
Former Member

Moving Average Costing

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?

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  • author's profile photo Former Member
    Former Member
    Posted on Feb 22, 2008 at 10:12 PM

    SAP recommand the STD pricing for costing only. you can do for your copmany using std cost set every month or quater as per mrequirements but if you decide to use the MAP then you can't use STD costing.

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