Audit question - Moving Average Unit Cost - How to see more decimals?

[KateL]

I know that Moving Average cost has more than two decimal places.  You can tell by doing the calculation, but I need to know where to view the additional decimal places.  Can you help?

Tcode MM03 shows Moving average cost at 2 decimals
Table MBEW shows Moving average cost at 2 decimals.
Total Inventory value is shown at 2 decimals.
But Moving average is actually at least 4 decimals
Where can I see the decimals? Is there a table?
Inventory total for a part is 10,093.03
There are 329 on hand.
MAUC is displayed as 30.68
but 30.68 * 329 = 10,093.72
NOT 10,093.03
Auditors don't like the difference ! Not one bit!
Somewhere, MAUC must be displayed with the actual decimals...? 30.6779027
I need to either show Auditors the 4 place decimals, or explain why that is not the case.
THANK YOU !

[coleti]

Dear Kate,

Good discussion you've brought. Usually Prices(Material Ledger) in SAP are managed with 2 decimal places only and this kind of situation is common.

On these situation the usage of the greather Price Unit should be consider. That's would help to reduce the rounding impact.

You can change the price unit in all valuations, both in the accounting view of the material master record and in the price change transaction (MR21).

Have a look into these:

2436214 - Stock valuation with active Material Ledger

438342 - Change of the price unit via Transactions MR21 and MM02

BR,

Gabriel Coleti

[KateL]

Thank you Gabriel.

[KateL]

Thank you Gabriel. We don't have Material Ledger activated in our plants except for some in LATAM region. I'd be looking for the full decimal places... as I mentioned when we look in MBEW we see only the 2. Also, I am aware of MR21, though I appreciate the info in case I did not know. We don't want to Change the price, only view it.

[coleti]

So you use Price Determination 2, it does not matter ML Active or not - Anyway Price Determination 2 is not the best way to have exctly the MAP calculation, you should consider the implemenation of ML if the auditors requires a better pricing control. The Price Unit rules will be also applied to Moving Average Pricing. In generatl MAP = SALK3 / LBKUM... but you will lose some small diff. That is why Price Unit should take into account. The OSS Note will help you on that... 1506200 - Determine how Moving Average Price changed it will bring you to other references also the report MBMAPCHANGES from note 2198317 to analyze moving average price changes that can help you on your Auditing.

[RobynCouch]

As mentioned in previous responses, the only way to get more detailed moving average price data is to increase the pricing unit.

The moving average price has no bearing on the value of your inventory so you do not need to justify the rounding differences to an auditor.  It is simply the value that will be used to value future goods issue transactions.

If you posted a goods issue for your 329 pieces of inventory I think you are correct and the transaction would be valued at 10,093.72 with a variance account posting for 0.69 (depending on your account determination setup).  That is where the discrepancy is accounted for.  You will not find the additional decimal places you are looking for in the moving average price.

[KateL]

Thank you Robyn. Would you say then that this statement is misleading? The Total Inventory Value = Moving Average Price x Quantity on Hand? Would it be more accurate to say, Moving Average Price = Total Inventory Value / Quantity on Hand?

[KateL]

Adding to reply to Robyn... also of course, then the MAC be displayed as 2 decimals and can be easily explained as rounding. versus the other way around where it is not.

[Filipe_Magalhaes]

Hi KateL,

Yes, you are correct. The moving average you find is just a calculated value from the total inventory value divided by quantity. The important value is always the total stock.

For this topic, I recommend you check OSS note 518485 - FAQ: Valuation of goods movements - SAP for Me , namely question 4:

The moving average price is the sum of the values posted to the material (material documents, invoices, price changes) divided by the stock.

The other questions may be a good reference for you as well.

I hope it helps.

BR,

Filipe