Current MAP while costing

[Former Member]

Hi experts,

If am facing one problem while costing, need your help for the same.

I have an FG1 which is costed and have released price on 2'nd of this month in which there is an component A.

Now i am costing another assume FG2 which also contains same component A whose current MAP is 69 and previous MAP was 150, After 2'nd this component A was tranferred to another plant with 301 movement, so the MAP has now been updated to 69.

Now when i am costing FG2 the MAP for component A is reflecting 150 which was previous MAP which was released after the costing of FG1, According to PRICE CONTROL INDICATOR 'V' the MAP should come from the material master of component A as 69 which is not the case.

Kindly suggest the solution for same.

Regards,

Lodhi.S

[Former Member]

Dear Sarfaraz,

Please check the priority for material valuation in valuation variant ( Tcode-OKP8), there give first priority to MAP & second to Std. price.

regards,

Basavaraj.

[Former Member]

Hi,

In valuation variant also prirotiy is for MAP, and it is cosidering MAP only, but this MAP is released MAP not the current MAP of component which has been changed after the 301 movement.

Regards,

Lodhi.S

[Former Member]

Not answered

Edited by: sarfaraz lodhi on Mar 26, 2010 9:31 AM

[Former Member]

Hi,

I think system is considering the standard price of material "A".

Please check the standard price of Material "A" bacause after releasing the cost for FG1 ( as you mentioned you have released the cost of FG1), standard cost of Component ( Material "A") will get updated.

If it is updated, what is the standard cost Material "A"?

Regards,

Basavaraj.

[Former Member]

HI,

Yes, Std. price is 150 but V is the price control indicator, and also previous MAP was 150. And uptil now it was picking MAP only.

Regards,

Lodhi.S

[rohit_chauhan]

Apologies

.... the reply was posted twice.....

--- removed the duplicate post -

---

Regards,

Rohit.

Edited by: Rohit Chauhan on Mar 23, 2010 7:42 AM

[Former Member]

Hi Mr.Rohit,

Let's assume i am costing in 1000 plant and the component A has been transferred from 2000 plant, In 2000 plant MAP for A is 69 which is now updated as 69 in plant 1000 also.

But as i said it is not reflecting while costing FG2, It reflecting as 150 which is previous cost for A.

Regards,

Lodhi.S

[rohit_chauhan]

Hi,

Apologies for mis-understanding your query.

I think the stock in destination plant must exist in very large quantity as compared to the transferred quantity. As it is the Moving Average Price. The incoming inventory would be valuated at the source price and the MAP will be total qty divided by total value.

Check the calculations below.

Lets say 1 unit was transferred to plant 1000 from 2000.

The MAP in 2000 is Rs 69 and MAP in 1000 is Rs 150. Lets say the stock in Plant 1000 for the said material is 10 units.

The value of stock in plant 1000 would be = 10 X 150 = Rs 1500, before the transfer.

After the transfer the value of stock would be = (10 X 150) + (1 X 69)

Therefore the new MAP in 1000 Plant would be = [(10 X 150) + (1 X 69)] / (10 + 1) = 142.64

Now if the stock in the destination plant is very large as compared to the transferred qty, the change in MAP may be negligible.

Please check into this possibility also.

Lets wait for the experts to reply on the issue also.

regards,

Rohit.

[rohit_chauhan]

Hi,

The Accounting View is a Plant dependent view. Please check the MAP in the plant where you are taking the costing run.

As per my understanding of your query, the Material ('A') was moved to a different plant with MAP as 69. So MAP in the destination plant would be updated with Rs 69 and the source plant would still have the MAP as Rs 150.

Kindly check & revert.

Hope that helps.

Regards,

Rohit.