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material master price

Former Member
0 Kudos

hi

how system updates material master price after doing GRN w r t PO can anybody explain me ?

Accepted Solutions (1)

Accepted Solutions (1)

former_member225662
Active Contributor
0 Kudos

HI,

The GR is valuated according to the price control set in the material master. if the price control is standard price, then the GR is valuated with the standard price, no matter what price the PO has.

in case of moving average price: if the goods receipt is executed before the invoice receipt, the goods movement is valuated with the purchase order price. If an invoice is already posted, the system uses the price of the invoice. If a partial invoice is received, the partial quantity corresponding to the invoice is valuated with the invoice price, the rest is valuated with the purchase order price.

if you change the price in the PO before you do a Goods receipt (and before you post an invoice receipt), then the GR is valuated with this new entered price.

Check OSS Note 456691 - Price determination in purchasing

Regards

KK

Answers (3)

Answers (3)

Former Member
0 Kudos

thanks 2 all

vary helpful

former_member182609
Active Contributor
0 Kudos

If your material master has standard price system will not update material price after GR.You can see update price in Moving average price.For e.g in your material master moving average price is 10 and there is no stock.If you receive material qty against PO 10 qty and price each one 11.Then system will update the price as 11 in material master.This variation depends what price you are receiving and hat is the current stock and current price in material master

Former Member
0 Kudos

Dear Slng,

Taking Mr. Sridhar example

10+11=21/2=10.5

so 10.5 value should be updated

Check & revert Back

Regards

Madhu

Former Member
0 Kudos

Sir,

Please check following case,

We have a pump code with material master price = 63000/-

Purchase Order created for the same with price : 59,698.33

total price for the same is : 60,354.18 (MIRO)

GR done on 03rd march

so what should be the updated price in material master.

please explain

Former Member
0 Kudos

Hi,

The material price in material master would change if it is stock material means if there is a plant stock mainatined for the material. It works on following logic

if PO is for 100 nos. price is Rs. 10 / each

1) First GRN is made for 100 nos. total stock value is Rs. 1000 (this is a first GRN for that material)

2) Second PO is at @ Rs. 20 / piece qty. 100 nos.

GRN is made for that 100 nos. for the above PO.

Now the stock value is Rs. (1000(first GRN) + 20*100(2nd GRN)) = 3000

Now new MAP (moving average price) is 3000 / 200 (nos.) = Rs. 15 / Piece

This is how the MAP gets updated in material master data.

I hope your query is clarified.

Regards.

Sanjay

Former Member
0 Kudos

Dear Slng,

For example you have given above, map will change as per follows:

If you have a single pump with map 63000/- and you have purchased a new pump with 59698.33 /- Map will change to (63000+59698.33)/2 nos = 61349.16/- in material master.

With regards,

Ajay

PollyGan
Advisor
Advisor
0 Kudos

Dear SIng , Ajay,

If invoice is posted and the BSX(stock account will also be adjusted).

first in GR

BSX debit 59698.33

WRX credit 59698.33

then in IR

KBS credit 61349.18

WRX debit 59698.33

BSX debit 1650.85

The price will be (63000 + 61349.18) / 2 after all.

Thanks and regards,

Polly

Former Member
0 Kudos

Dear Slng,

Sorry for late reply

i think already Fellow Forum Members already explained

Old price + New Price / 2 will be updated in material master

Check & revert Back

Regards

Madhu

Former Member
0 Kudos

Hi

it cannot be explained in few lines. check the below link

http://help.sap.com/erp2005_ehp_04/helpdata/EN/47/60ff6f49f011d1894c0000e829fbbd/content.htm

regards

Antony