Hi
MAP
In the moving average price procedure (price control u201CVu201D), the system valuates goods receipts with the purchase order price and goods issues with the current moving average price. The system automatically calculates the latter upon every goods movement by dividing the total value by the total stock quantity. Differences between the purchase order price and the invoice are posted directly to the relevant stock account if there is sufficient stock coverage.
A price that changes in consequence of goods movements and the entry of invoices, and which is used to valuate a material.
The moving average price is calculated by dividing the value of the material by the quantity of material in stock. It is automatically recalculated by the system after each goods movement or invoice entry.
The system calculates the moving average price automatically by dividing the material value in the stock account by the total of all storage location stocks in the plant concerned. It changes the price with each valuation-relevant movement.
The system changes the periodic unit price if you settle the material ledger and then save the data.
The valuation of stocks at moving average price or periodic unit price means that the price of the material is adapted to the continual fluctuations in the procurement price.
Standard Price
The valuation of material stocks at standard prices means that all goods movements are valuated at the same price over an extended period.
For a material with price control procedure u201CSu201D, SAP R/3 system also calculates its moving average price and save it as statistical-MAP at accounting view on material master data. This statistical MAP has no influence in material valuation.
Characteristic of Price Control u201CSu201D:
All stock postings are made at a standard price.
The system posts all differences from the standard price to an account u201CExpense/Revenue from price differenceu201D.
Exact values are available for cost accounting / controlling purposes (All goods issues, such as issues to a production order, are valuated at the same standard price. This allows better analysis of the costs of production orders).
In the accounting view, we can display differences between the delivered price and the standard price.
We can change material prices if required (generally at the end of period). This causes the system to revaluate the total stock for a valuation area.
Posting at Standard Price.
A receipt posted to a stock account is generally posted at the standard price. Differences between the order price and the standard price are posted to an u201CExpenses/revenue from price differencesu201D account (2).
Differences between the invoice price and the order price are posted to an u201CExpenses/revenue from price differencesu201D account (3).
The moving average price is also recorded in the material master when the material is valuated at a standard price. It indicates the extent to which the standard price differs from the delivered price.
Characteristic of Price Control u201CVu201D.
Receipts are valuated at their actual price (as per purchase order, invoices,...)
The system modifies the price in the material in the material master according to the delivered price.
Issues are generally valuated at the current material price.
The data used for cost accounting / controlling purposes therefore contains price fluctuations.
Only in exceptional circumstances does the system post at a difference to the u201CExpenses/Revenues from price differencesu201D account (The system makes a posting to an u201CExpenses/revenue from price differencesu201D account for a material valuated at a moving average price only in the case of a debit or credit when the stock coverage in the company code is smaller than the quantity to be debited or credited, e.g.: When we reverse an invoice, the account movements made when the invoice was posted cannot always simply be reversed. For example, if there was sufficient stock coverage when we posted an invoice with a price variance for a material with moving average price, but when we reverse the invoice, there is insufficient stock coverage, the R/3 System posts the price difference in the credit memo to a price difference account, although the price variance was debited to the stock account when we posted the invoice)
We can change material prices if required (generally at the end of period). This causes the system to revaluate the total stock for a valuation area.
Postings at Moving Average Price.
Receipts to the stock account are posted with the value Quantity x Order price. The moving average price is recalculated after every transaction and is therefore adjusted in line with delivered prices (2)/(4).
Differences between the order price and the invoice price are debited to the stock account, as the invoiced quantity is in stock (3).
The difference between the order price and the invoice price is only posted for the 50 pieces in stock. For the remaining 50 pieces that are not in stock, the difference between the order price and the invoice price is posted to an u201CExpenses/revenue from price differencesu201D account (6).
Refer to this site for clear understanding
http://www.sapstudymaterials.com/2007/12/mm-008-material-valuation.html
Edited by: sunny on Nov 6, 2009 2:08 PM
Edited by: sunny on Nov 6, 2009 2:09 PM
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