Former Member

Transaction CO88: Moving Average Price for material is negative: xxxxxxx

Team,

When trying to do a settlement using TCode CO88, the following warning message was generated:

"Moving Average Price for material is negative: xxxxxx xxxx"

I will appreciate any inputs.

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• Former Member
Apr 01, 2009 at 05:14 AM

hi

check in the material master for the price.

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• Former Member Former Member

Hi,

This is Pavan Fronm IBGroup Rajnandgaon.

To My Knowledge,

When U Settle the Production Order, the Diffence Between the Target cost and Actual cost(MAP) of Finished Material hits the Material Account of the finished goods.

Say Suppose,

Target cost (Production Cost) = Cost of Raw material + consumable, = 10

Activity ( Labour, Power, etc) = 5

17

Actual Cost is ur Finished Material (MAP). = 18

CASE 1:

Now the system calculate the difference as 17 - 18 = -1 Rs , it try to reduce from Material Cost,

Now in case if Material has the stock say 1 unit.

it will reduce the cost of material by 1 rs in Material Master.

If the Material has no stock , as we know the system try to reduce the cost from zero stock tends to

give us a message saying

MOVING AVERAGE PRICE OF MATERIAL IS NEGATIVE.

CASE 2:

If Target - Actual is say +1 RS it increases the material price to 1 Rupee, if stock is Zero , then 1 Rupee

hits the Price Difference

CASE 3: STANDARD PRICE INDICATOR

In case of Standard Price indicator Every thing beyone the Material Price , whether respect to negative

variance or positive variance hits the price difference.

So I request u to settle the order if u use MAP for Finished goods befor dispatch of finished good to calculate actual production cost for ur finished material..

We can Also use MR21 for price change if the stock has dispatched befor settlement, but it is not suggestable to my knowledge hence ur material wont carry actual production cost if that is thae case.

Please Correct if I m Wrong.

Regards

J .K .PAVAN KUMAR

SAP PP-PI Consultant

• Former Member
Apr 04, 2009 at 07:54 AM

Hi,

This is Pavan Fronm IBGroup Rajnandgaon.

To My Knowledge,

When U Settle the Production Order, the Diffence Between the Target cost and Actual cost(MAP) of Finished Material hits the Material Account of the finished goods.

Say Suppose,

Target cost (Production Cost) = Cost of Raw material + consumable, = 10

Activity ( Labour, Power, etc) = 5

17

Actual Cost is ur Finished Material (MAP). = 18

CASE 1:

Now the system calculate the difference as 17 - 18 = -1 Rs , it try to reduce from Material Cost,

Now in case if Material has the stock say 1 unit.

it will reduce the cost of material by 1 rs in Material Master.

If the Material has no stock , as we know the system try to reduce the cost from zero stock tends to

give us a message saying

MOVING AVERAGE PRICE OF MATERIAL IS NEGATIVE.

CASE 2:

If Target - Actual is say +1 RS it increases the material price to 1 Rupee, if stock is Zero , then 1 Rupee

hits the Price Difference

CASE 3: STANDARD PRICE INDICATOR

In case of Standard Price indicator Every thing beyone the Material Price , whether respect to negative

variance or positive variance hits the price difference.

So I request u to settle the order if u use MAP for Finished goods befor dispatch of finished good to calculate actual production cost for ur finished material..

We can Also use MR21 for price change if the stock has dispatched befor settlement, but it is not suggestable to my knowledge hence ur material wont carry actual production cost if that is thae case.

Please Correct if I m Wrong.

Regards

J .K .PAVAN KUMAR

SAP PP-PI Consultant