MAP of RM to FG

[Former Member]

Dear All,

Is there a way to move the summation of the MAPs of Raw Materials to the Standard Price of the Finished Good through Transactions (We are trying to avoid ABAP)

I work for the Meat Industry.

Regards,

Ro

[former_member184655 · Accepted solution]

Dear Rohith,

Assuming your query is about the standard cost estimate of the finished product,now in this case

you can find the summed values of the raw materials getting included to the top level sub-assembly

and assemblies either using T.Code CK13N or else using

CK80_99              Material: Cost Components

CK84_99              Material: Itemization

CK86                 Costed Multilevel BOM

CK86_99              Material: Multilevel BOM

Check and revert back.

Regards

Mangalraj.S

[Former Member · Accepted solution]

Thanks Mangairaj for the reply.

Does this even help in the summed MAP values of the raw materials getting included to the MAP of the top level Assembly.

[Former Member]

Sorry... I meant moving MAP of Raw Materials to MAP of Finished Good through transactions...

[former_member184655]

Dear Rohith,

No, The system calculates the moving average price(for each material) 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.

Regards

Mangalraj.S

[Former Member]

Hey Mangalraj,

I know that MAP is calculated by the system based on each valuation relevant movement.

What I want to know is if it is possible to match the MAPs of the Raw Materials after production to the MAP of the Finished Good by doing some config change in SAP.

Unfortunately we never used BoMs before and Finance is used to seeing the MAP of the Final Product and after we implement BoMs they still want to see the MAP of the final product as a summation of all the MAPs of the raw materials.

Regards,

Rohith DSouza

[svs_sap]

Hi

This is not possible. If you see logically what you are asking is to match the MAP price for all RM used in a FG BOM to the standard price of the FG.

Practically this is not correct also. Example,

You have FG with standard price indicator

FG

l

l-RM1 with MAP 10 per unit

l

l-RM2 with MAP 10 per unit

This MAP for RM is during std cost run of FG, so considering only material cost durign standard cost run of FG, the price of FG is 20.

When you created order, FG std price is 20, and RM price is as said above.

Hope after order creation and before execution, there is GR for RM against PO, and this will increase the price of RM say from 10 to 15 for both.

So when you do goods issue to order after increase of MAP, then RM goods issue is 15 + 15 = 30

where as when you do GR of FG sd price for order GR is 20.

So this is the mismatch for the order.

Hope you understand, similarly in real time scenario it is very difficult to match the price of MAP of RM with standard price of FG, that is one of the reason for every order we get variances.

Best regards,

Sharat

[Former Member]

Thanks Sharat,

Say for example I maintain MAP instead of Standard Price for a Finished Good (I know this is not recommended by SAP), can the summation of MAPs of RMs be matched to the MAP of FG?

Regards,

Rohith

[svs_sap]

Hi Rohit,

No in that case the FG price gets updated with respect to goods movement and invoice price the price at which it is sold, because it is the in house produced material.

And the ramw materials are procured so MAP will get update with respect to the goods inward and procured price.

Regards,

Sharat

[svs_sap]

Hi Rohit,

When you create the production order on the FG, and do goods issue and GR.

Then you can go to option Goto > Cost Analysis > details

In this you can get the details of RM and FG actual costs.

If there is no change in MAP then you get the value match for material costs, do not consider the routing cost into consideration.

I suggest you yo refer the documents published by Mr. Ranjit John, which explains very well the cost capture in the production orders, you really get lots of updates on this subject.

http://scn.sap.com/community/erp/manufacturing-pp/blog/2012/03/13/understanding-production-order-var...

some 3 blogs are there, check it veru informative.

Best regards,

Sharat

[Former Member]

Thanks... will check it out...