Precautions to change Moving average price in MR21

[Former Member]

Hi Gurus

What precautions should i have to take if i am changing Moving average price in direct PRODUCTION server,what areas this going to affect.

How safe this is to carry the procedure directly on production.

Regards

Ana.

[Former Member · Accepted solution]

Hi,

Both MR21 and MR22 (material revaluation) shall be exercised with due careness and awareness by FI and CO team as this has a direct impact onto the balance sheet report thereafter (since it will result in either an increase or decrease in the total valuated stock value). Besides, since change will be made in MAP without any respective posting of vendor payment, it will cause an inconsistency between FI and MM in MB5L report.

Cheers,

HT

[Former Member]

there will not be any much impact on the changes....u done by MR21.

only valuation of the stock will be effected on that and an accounting entry will get generate..

better u intimate the same document to FI , once u post/change the MAP price...

enjoyy..

Kamti kamti Dood umti:-)

[raghavendra_praveen]

Hi Sandeep,

As you said - MR 21 will update the inventory value (may be credit/debit) and on other side which account will be affected and how FI/MM will legalise that entry?

If it is for MAP - then please tell the need to run MR21 - in next purchase we can adjust the price difference in net price (keeping earlier procurements values are not correct)..

If the stock quantity is zero - then if we post Material revaluation - only price will be changed, - no doubt, but if stock is there it will have impact on FI side...

Thanks

[Former Member]

Hi

Changing the MAP will affect the Change in the Inventory valuation.

there is no such high impact in Transaction process... as the difference in the GR & the IR will be posted more or less on the same Inventory account.

You can carry out the Process.. this is a normal activity which tales place in all the business

Thanks & Regards

Kishore

[raghavendra_praveen]

Hi

MR21 is used to revaluate the inventory generally for standard price materials as for MAP - stocks will be updated depending upon the GR values. Change of price will hit price variance- revaluation account though it will update your total inventory values. In normal cases it is not advisable to do revaluation for materials (not required generally for MAP materials). In case of standard cost estimate maintained for materials it will be done through CK24.

Thanks

Edited by: Praveen Raghavendra on Dec 22, 2008 1:57 PM