Material Costing: Moving Average Price Issue

[Former Member]

Hi Experts,

I have a issue regarding the Moving Average Price of the Material computed by the system (indent sales process):

The Material was created with Purchased Price .74PO Price x 10 items = 7.4 Amt in LC Posted into the system (PGR).

But afterwards, they reversed the Material Document with the same Price .74PO Price x 10 items.

This had been done last 2009.

Come 2011, they created another indent sale -> PO ->PGR for this material, now the price is .12 PO Price x 10 items = 1.2 Amt in LC Posted. However, the moving average price was computed 0.77

How does the system comes up with this computation? Is there inconsistencies in the system?

[Former Member · Accepted solution]

thanks a lot @jurgen.

I also found this info as an account assignment 'E' posting in Material Document, that's why it's not updating MAP. Is there a configuration on this or is it all account assignment should not affect MAP of Material?

Edited by: Cecilio Cruz II on Mar 2, 2011 2:54 AM

[former_member200116 · Accepted solution]

MSSA>> Header table for sales order stock

KZBWS indicator in MSSA Table will decide whether to valuate stock in MBEW or EBEW or no valuation

so if KZBWS = M , Valuation will hapen in EBEW

KZBWS = A , Valuation will happen in MBEW >>> MAP will be affected in this case

KZBWS = Blank No valuation No FI document no effect in values

How KZBWS is determined is based on Requirement type and Requirement class in Sales Order

[Former Member]

Thanks alot for your answers. Problem solved.

[former_member187989]

Refer note 49995.

[Former Member]

There are no Manual Price Change for the Material given their Change Documents.

[JL23]

Just saw the text next to your movement: GR for sales ord.st.

So this receipt does not go to your valuated plant stock (MARD and MBEW table) and will not effect the moving average price at all.

It is directly posted to sales order stock (MSKA and EBEW table).

Because of this the MAP shown in your material master is probably the initial entry at material master creation, hence you cannot find a change document

[Former Member]

Material Document = 5000003534 (PO Receipt, mvmtype = 101)

LBKUM = 0.000

SALK3 = 0.00

MAP (Moving Average Price) = LBKUM / SALK3 = 0.00?

But still the MAP of the Material shows 0.77

[JL23]

what do you see in the change history of your material master?

I guess someone entered the value manually.

[Former Member]

Thanks @jurgen. I checked-double-checked in MR21, there are no change documents under the material.

in MR51, added one Issue Document:

Material Material Description CoCd ValA

Type DocumentNo Itm Pstng Date Quantity BUn Amount in LC Crcy

2A1E8113-20 COVER SHIFT 1100 1110

WE 5000003540 1 25.02.2011 10- PC 1.15- SGD

WE 5000003534 1 23.02.2011 10 PC 1.15 SGD

WL 4900020403 5 17.09.2009 10- PC 7.35- SGD

WE 5000001968 5 17.09.2009 10 PC 7.35 SGD

In S_P00_07000139:

Start date : 01.01.2009 0 PC 0.00 SGD

Total goods receipt 20 PC 8.50 SGD

Total goods issue 20 PC 8.50 SGD

End date : 28.02.2011 0 PC 0.00 SGD

SLoc S Date Reference Doc. GR/GI Slip MvT Receipt Issue Amount Balance quantity Price/Unit (Bal.) Balance amount Comment

WH01 E 17.09.2009 PL001427 5000026286 101 10.000 0.000 7.35 10.000 0.74 7.35 GR for sales ord.st.

WH01 E 17.09.2009 1121010049 4900227144 601 0.000 10.000 7.35- 0.000 0.00 0.00 GD delivery sls ord.

WH01 E 23.02.2011 2002381 5000048052 101 10.000 0.000 1.15 10.000 0.12 1.15 GR for sales ord.st.

WH01 E 25.02.2011 2002381 5000048120 102 0.000 10.000 1.15- 0.000 0.00 0.00 GR f. sls.or.st. rev

Still it's not tallied with the MAP = .77 in Material Master.

[former_member200116]

Hi ,

I would like to give you information on how you can calculate Moving average price when your MM document was posted .

Please check the values of these fields in your MM document . System will store the values from material master just before the posting of MM document .

Please check in MSEG Table below fields for this material document

MSEG-LBKUM

MSEG-SALK3

Then MSEG-LBKUM / MSEG-SALK3 -- Moving Average Price when document was posted .

Rgs

SB

Edited by: Shashank Balooni on Feb 28, 2011 8:32 AM

[Former Member]

I tried the formula...but I see in Material Master that the total qty and total value is 0.

IM MB5B, these are the entries:

Valuation Area 1110

Material 2A1E8113-20

Description COVER SHIFT

Stock/Value on 01.01.0000 0 PC 0.00 SGD

Total/Val. of Receipts 20 PC 8.50 SGD

Total/Value of Issues 10- PC 7.35- SGD

Stock/Value on 31.12.9999 10 PC 1.15 SGD

SLoc MvT S Mat. Doc. Item DocumentNo Pstng Date Quantity BUn Amount in LC

WH01 601 E 4900227144 3 4900020403 17.09.2009 10- PC 7.35-

WH01 101 E 5000026286 3 5000001968 17.09.2009 10 PC 7.35

WH01 101 E 5000048052 1 5000003534 23.02.2011 10 PC 1.15

So accd to formula:

MAP = ( total value of existing stock + total value of goods receipt ) divided by

( total quantity of existing valuated stock + receipt quantity )

MAP = ( 0.00 + (7.35 + 1.15) ) /

( 0 + 20 - 10)

MAP = 0.85

But in Material Master the MAP = 0.77

0.77<> 0.85

Note: (20 - 10) - Since 2009, first PGR is 10 then did some reversal of 10. Then 2011, posted 10 again.

Edited by: Cecilio Cruz II on Feb 25, 2011 2:41 AM

[JL23]

SLoc MvT S Mat. Doc. Item DocumentNo Pstng Date Quantity BUn Amount in LC
WH01 601 E 4900227144 3 4900020403 17.09.2009 10- PC 7.35-
WH01 101 E 5000026286 3 5000001968 17.09.2009 10 PC 7.35
WH01 101 E 5000048052 1 5000003534 23.02.2011 10 PC 1.15
So accd to formula:
MAP = ( total value of existing stock + total value of goods receipt ) divided by 
( total quantity of existing valuated stock + receipt quantity )
MAP = ( 0.00 + (7.35 + 1.15) ) /
( 0 + 20 - 10)
MAP = 0.85
But in Material Master the MAP = 0.77
0.77 0.85

I am a bit lost how you calculate.

why do you consider a movement of 2009 in your calculation if your stock before this new receipt was zero?

with zero old stock, the MAP is calculated just based on the values in the PO, means 1.15/10

And the result is neither 0.77 nor 0.85.

Because of this, check change history in material master, maybe someone changed the prices manually with MR21

Or the MAP got corrected by invoice posting.

Best you use MR51 transaction to review the accounting documents that happend this month.

Further there is a report in SAP that shows you the MAP developement: S_P00_07000139 maybe it can help you

[Former Member]

Thanks for input. I'll try the formula first.

Sir Jurgen, Stock was zero until they posted this year, 2011.

[Former Member]

check in the material master accounting view for the total stock value and calculate the moving average price as per the formula given by Jurgen.

[JL23]

MAP = ( total value of existing stock + total value of goods receipt ) divided by

(total quantity of exsting valuated stock + receipt quantity

What was your stock situation before the receipt happened?

Edited by: Jürgen L. on Feb 24, 2011 11:19 AM

[Former Member]

Hi,

To check the stock position before the receipt of recent material into stores use Transaction - MB5B and give the date range before the recent transaction date and do the further calculation as suggested by Mr. Jurgen.

Thanks,

Vengal Rao.