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Former Member

Moving Average Price Vs Freight Cost

Dear friends,

Setup: We have set up of Main plant and remote plant where requirement for material is initiated from remote plant against plant maintenance Work Order/WBS. Materials are stocked at main plant and sent to Remote plant when requested.

MAIN PLANT ----Stock movement-----> REMOTE PLANT

MRP at main plant runs, creates the Purchase requisition and materials are procured to Main plant based on safety stock and requirements. The Stock is available in Main plant.

Scenario: In Purchase order, if we enter freight cost then on goods receipt Moving average price is adjusted with Net price+Freight cost. If same material is procured again but from same/different Vendor with freight cost then again moving price is adjusted. This means the MAP will keep on increasing. The stock is now in Main plant and when a request comes from remote plant it is sent.

Question:

1. If same material is procured multiple times then MAP will keep on increasing as there will be always freight involved. We do not want MAP to increase.

2. How can we distribute the Freight cost related to procured stock to Requester of Material. Currently the cost of Freight is bear by Warehouse whereas it should be the requester of material.

Please suggest if you have any ideas

Regards,

Arvind

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1 Answer

  • Apr 10 at 04:07 AM
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