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Does zero value PO update MAP ?

Hi MM Gurus,

Need to check if I create a zero value PO, with account assignment category as "Y" - No Cost,, nett price as zero and "free" indicator as checked, upon GR, will the MAP price be updated ?

For these "free" goods that are received into the system, it is presently sitting in the Plant level. If I transfer them to a storage location level, will the MAP be updated also ?

I search through the forum and there does't seem to be an answer for this.

Thanks for your help in advance.

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8 Answers

  • Best Answer
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    Former Member
    Oct 09, 2008 at 11:21 AM

    Hi Vincent,

    If your PO is created with account assignment, the GR will be expensed directly to the cost object. It does not get posted into stock:

    Dr Expense account - Cost Object

    Cr GR/IR

    MAP is not affected whether it's free of charge or not.

    Phyllis.

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    • Hi Phyllis,

      I did an test in my test environment and you are correct. I did not enter any cost object in the Account Assignment tab

      The PO that was received in does not affect my stock level and MAP. Thanks Problem solved.

  • Oct 09, 2008 at 08:40 AM

    Hello

    The receipt of goods receipt as free goods will change the MAP.

    Regards

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    Former Member
    Oct 09, 2008 at 08:44 AM

    Hi,

    If you have current stock with a MAP and do a GR for a Zero Value or Free good item, it will certainly update the MAP as the total value for the material is not getting changed but the qty changes, hence MAP too is being updated.

    Trust its clear..

    Regards

    Merwyn

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    Former Member
    Oct 09, 2008 at 08:44 AM

    Hi,

    If you create a Free PO for a Valuated Material then it will definitely affect MAP of the Material.

    For e.g. Current Stock of Material = 100 EA and Value = 1000 INR so MAP = 10 INR

    Now if you receive 10 EA of material against Free PO then Stock of Material = 110 EA and Value = 1000 INR so MAP = 9.09 INR

    The only solution is Split Valuation of the material but it will affect MAP of the material as whole but Valuation Type wise it will not get affected.

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    Former Member
    Oct 09, 2008 at 08:47 AM

    Dear,

    Yes the Moving average price of material is decreased.

    As a rule, against free of charge GR posting for material with MAP,

    No accounts are credited or debited when the delivery free of charge is posted, since there is no change in value. The stock quantity of the material increases in the material master record, while the total value remains unchaged u2013 for this the moving average price automatically decreases.

    Regarding transfer of material in plant level to storage location level in the same plant, assume that no changes in price since the transfer is in the same plant. Please check one entry in quality server and confirm.

    Regards,

    Syed Hussain.

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  • Oct 09, 2008 at 08:49 AM

    But even with split valuation, it will affect the MAP of the material at plant level.All you will get is the MAP for a particular valuation type can b kept unchanged.

    Hey Vincent will that satisfy your requirement? Personally I dont

    think so.

    Regards

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    • Hi Gregory,

      Yes I think it will not work also.

      My Finance was suggesting if we were to change the MAP after the good receipt to the original MAP using MR21, will that work too ?

      E.g.

      Present MAP is $1 stock level 1,000

      Old MAP = $1

      zero PO receipt for 1000 pcs

      New MAP = $0.50

      Use MR21 to change the MAP back to $1.00

      Catch is that you must note down the MAP before doing GR.

  • Oct 09, 2008 at 09:12 AM

    Hey Vincent , if you do revaluation every time after the goods receipt, what about the opposite entry falling in the income/expense from revaluation account?

    How is your finance people going to handle that figure in that account which is a P/L and how are you going to justify those entries?

    Regards

    Gregory Mathews

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    Former Member
    Oct 16, 2008 at 09:33 AM

    Hi,

    MAP is calculated using formula ---Total Stock value /Total Stock nos.

    Ok. So, when the Nos,increase, the MAP is recalculated and updated in material master.

    Just check it,.

    Regards,

    Smitha

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