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Former Member

standard price in HALB

Hi SAP Guru's,

I have been asked in an interview as why we maintain Standard Price in HALB material Type.

Can any one please give some light on this.

Thanks

IS

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    author's profile photo Former Member
    Former Member
    Posted on Sep 20, 2008 at 10:48 AM

    Dear,

    I would like to suggest as follows:

    Material type - HALB

    Semifinished products can be procured externally (sub-contracting) as well as manufactured in-house.

    They are then processed by the company. A material master record of this material type can contain both purchasing and work scheduling data.

    The reason for SAP recommends Standard price for HALB type material is, the material price effects the enterprise finish product selling price and effects on customer / market price.

    For example if an enterprise manufacturing Televisions. The finish product is Color Television.

    Client made a contract with outside vendor for assembly of Picture tubes with screen.

    Since the client fixed the price or have an idea about the finish product of color television, the price control on subcontract i.e Picture tubes assembly with screen is compulsory. Then only the client can achieve the final product price as fixed earlier.

    If for these material the moving average price is maintained in Material master, there are chances are there that the finish product market value / price changed daily.

    Regards,

    Syed Hussain.

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  • Posted on Sep 20, 2008 at 10:41 AM

    Hi,

    HALB means Semifinished material, which is generally manufactured in-house and when it is manufactured the cost of manufacturing comprises of Raw Material Cost and Operation Cost and if we keep it on MAP basis then we will not be able to know the Production Variances since it will directly pick up the Raw Material Cost and Operation Cost during GR from production.

    So better keep, it as Standard Price do that it will give us variance as +Raw Material Cost + Operation Cost - Standard Price+

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 20, 2008 at 11:09 AM

    Dear,

    HALB material is in-house producation material which material we manufacture in our company. So price for HALB material deside we.

    At the time of HALB material creation we not enter standard price for material.

    But for in-house production materials we run costing. Due to costing standard price is come in material.

    In other material like VERP, HIBE is external procurement. so in all external materials we maintain material price in moving average price field.

    Because at the time of good receipt moving price is change as per material stock and it's rate.

    But for HALB material we can't create good receipt against purchase order because it is in-house production. Due to in-house producation we maintain standard price for material with run costing of material.

    Regards,

    Mahesh Wagh

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