Hello Gurus,
Can any one let me know how system calculates moving average price? is there any situation where system calcultes moving avg price though the standard price is enabled? I will be very happy if any one provides me mathematical formula for calculating moving avg price.
thank you
Srinivas
Hi Srinivas,
Moving Average Price (MAP) is not calculated through Standard price; in material master we can maintain price control as standard price (S) or moving average price (V).
MAP is calculated as shown below;
Material purchased on 01jan09 - Rs. 100 @ 50 pic
In material master it updates as 100 in MPV, 50 in total stock and 5000 in total value.
When same material is purchased on 10Jan09 u2013 Rs. 80 @ 50 pic, now system updates as follows.
100*50 = 5000
80*50 = 4000
Total value = 9000
Total quantity = 100
MAP = Total Value / Total quantity
MAP updated in material master is 90
Regards,
Giridhar
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