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MAP and Standard price

For one material can i maintain both MAP and Standard price.....I came to know that standard price is for costing purpose....

For costing is it necessary to maintain Standard price for Rawmaterials......I am not aware of costing...

can any one pls tell me...

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    author's profile photo Former Member
    Former Member
    Posted on Dec 08, 2011 at 10:06 AM

    Hi Prnav,

    when you are talking about the Raw Material, the MAP keeps on changing as the GR price changes. where as when the same scenario is running with the Stnd Price then your price is constant and any variations in the GR price will be hitting the PRD account.

    therefore the best practise is to maintain the MAP for the raw material.

    In case of Standard Price the when PRD(Price Difference account) is hit, then it is not taken into calculation and there are chance of ending up with wrong Product Costing if the majority of Finished product cost is made of raw materials only,

    Hope it helps You.

    Regards,

    Yawar Kahn

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  • Posted on Dec 08, 2011 at 10:13 AM

    Hi

    for one material you can not maintain both MAP and Standard price,you have to decide you want your material valuation by stander or by moving price

    simply if you procure any material then it should be moving

    if you sale any product it should be stander you own price of material

    IF you want one material should have two different price the you can use split valuation but there your material will have moving price

    Regards

    Kailas Ugale

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 08, 2011 at 10:39 AM

    hi Pranav,

    If you activate material ledger, you can make use of both standard and MAP.

    Please refer the below link which explain more about price control and advantage of using material ledger.

    [http://help.sap.com/printdocu/core/print46c/en/data/pdf/COPCACT/COPCACT.pdf]

    "When using the application component Actual Costing/Material Ledger, you only use the

    standard price as a preliminary valuation price in the current period. At the end of the period, you

    can use this component to calculate an average price for the material using the actual costs

    incurred in that period. You can then use this average price to valuate the material stock in the

    period in question. Actual Costing/Material Ledger, therefore, combines the advantages of price

    control using the standard price and the moving average price"

    Regards,

    R.S

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 08, 2011 at 10:25 AM

    Hi,

    You cannot maintain standard and MAP for the same material. MAP is used for external procurement materials like raw materials. Standard price is maintained for the inhouse produced material like finished good. Hope it clear . Thanking you.

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  • Posted on Dec 08, 2011 at 11:45 AM

    Hello Pranav,

    You can have only one Price Control for a given material - either S (Standard price) or V (Moving Average).

    You cannot maintain both prices for a given material.

    However, if you are using standard price control S for a material, you can still have a statistical moving average price (MAP).

    This statistical MAP is updated automatically by system as and when goods receipts/invoice receipts are posted in system.

    You can see this in the Moving Price field in accounting view of material master. The MAP gets updated in table MBEW & MBEWH.

    However, if you are using price control V for a material, then you cannot have a standard price also for the same material.

    SAP says if you activate material ledger, then it is possible to have both types of valuation for the same material.

    Please refer forum threads for the same.

    Regards

    Prabhu

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  • Posted on Dec 08, 2011 at 12:02 PM

    you can maintain both, standard and moving average price, for any kind of price control.

    but your valuation uses only the price which corresponds to the price control.

    the other price is then just statistical.

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 08, 2011 at 12:20 PM

    Hi,

    The idea behind keeping a Standard price control is when a material is produced in house the cost is know then you can have this price control. Whereas when the material is procured from external vendors and the rate of the material varies then you keep MAP price control and rate average out (rolling period).

    When you set standard price control you will have MAP just for statistical purpose and you need not do anything.

    Hope this helps!

    Reetesh

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