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stock valuation and GL amount

Nov 09, 2016 at 07:22 AM


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Currently we are doing the system integration from one system to another system. We would like to move the inventory from another SAP system to our SAP system. We need to integrate them. We got the Inventory amount from old system is 4748.29 for a material 123, the moving average price for material 123 that show in material master is 0.08, price unit is 1.

So i will move this material qty to our system. I will load the inventory to our system with qty 63034, and update the moving average price 0.08 in the material master. After movement type 561, the value that i get is 5042.72.

But the inventory value for this material in old system that show is 4748.29, the qty is the same which is 63034, i calculate the MAP 4748.29 (value)/63034 (qty)=0.075329028. which i think that's why the MAP in the material master is 0.08. Why it is not using the MAP 0.08 to calculate?

is there a way to make it tally?

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1 Answer

Jürgen L
Nov 09, 2016 at 11:03 AM

The moving average price of material develops over time based on receipts, issues, invoice and debit and credit note postings, as well as write on or down values.

Large quantities and low prices will always lead to rounding issues, especially if the price unit is only per 1.

Taking your example, 63034 quantity. with a price of 0.08 you get a value of 5042.72, with a price of 0.07 you had only a value of 4412.38, which means there is a gap of 630.34 value between the one and the other displayable price.

If you start for example with 63034 quantity and value of 5042.72 and receive then a credit note with a value of 300, then the total value will be reduced while the quantity stays and your moving average would not change and still stay with 0.08.

For exact this reason SAP does not just do such a simple MAP * quantity calculation. SAP always uses the total values to calculate the value of a movement, except for goods issues (initial goods entry with 561 is actually a goods issue movement type) .

As you are migrating from legacy system to a new system you have to make use of the field EXBWR Amount in LC . here you enter the 4748.29 from the old value, and this enables SAP to post the movement with that value instead of the average price of 0.08 from the material master.

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