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Costing material having moving average price

Former Member
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HI

My client is having business where prices fluctuates a lot and he wants to use moving average price for all materials including semi-finished and finished material.

My question is in this senario how to do configuration of product costing and how will i be able to calculate cost as far as product costing is concerned. client doesnt want to use material ledger.

Regards

Invin

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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hi

you can use the Price control indicator V in material master and go head.

Answers (3)

Answers (3)

Former Member
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Dear Paul

Thanks for your reply. i would be greatful if you could elaborate in detail. i want material prices to change automatically whenever there is any change so far as i understood i dont have to do any configuration setting when all materials are having moving average price am i right ? and if yes how the prices will change whenever there is fluctatuation in prices waiting for an answer.

Regards

Invin

Former Member
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Hi,

You can not carry out period product costing activity if the material has moving average price control.

If you set moving average price control to material master, the following activities control the moving average price

1. GR (if the value is different from PO price) Entry in MIGO

2. IR (if the value is different from PO price) Entry in MIRO (invoice posting)

3. Price change using (MR21 Tcode)

4. Debit/Credit Material (MR22 Tcode)

Prerequisited for Product costing with quantity structure

1. Material ledger should be active

2. Product should be allowed for cost estimate (setting in Material Master)

3. The master should have Standard price Control in the material master.

If you want to change the price of the semifinished product with moving average price (due to price fluctuation) use MR21 or MR22. But this activity involves lot of human effort.

Former Member
0 Kudos

Hi AP

i have already done that but i would like to know how to do costing what will be the configuration required in this type of senario and what will be steps involved while calculating cost of finished and semi-finished goods. kindly elaborate in detail with transaction code

Regards

Invin