Moving Price is much higher than Net value for Material. Is it critical?

[former_member657006]

Hello all,
I have materials in the system for which the Net value (in Info record) is much lower than the Moving price for this material in MM03. Users get very worried about this and ask why. They say that before these values were almost the same.

As far as I understand, the Moving price can increase if the amount of material has become less, right? (by formula Moving price = total value / total stock quantity) Or are there other reasons? Is it critical that the Net price is two times lower than Moving price? They generally belong to different processes and are not related, right? In my opinion, we should focus on Net values in PIR, and not on Moving price.....but I may be wrong.

Please advise!

And many thanks in advance for any information!

Annet

[DominikTylczyn]

Hello protego_16

First, you don't maintain a net value in an info record, but a net price. That should be the price at which you buy a material for a vendor. A moving average price being much higher than an info record price might indicate that:

• the info record price is outdated and that in fact the vendor sales at higher price then maintained in the info record and the stock value is getting higher due to differences between purchase order and vendor invoices
• or that you are lucky and are buying at lower prices than previously. That is unlikely given the global business conditions.

Moving average price doesn't go up by reducing stock. See, to reduce stock, you need to post a goods issue. By posting the goods issue you reduce both stock value and stock quantity simultaneously, so the moving average price stays the same.

See the following notes on moving average price:

185961 - Moving Average Price Calculation

209864 - Moving average price is disproportionately large

Best regards

Dominik Tylczynski