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Need your expertise on a question in Product costing area

jaybanda2
Active Participant
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Hi there to all,

Need your Expertise please....

Our Purchasing department is planning to move from Standard price control to moving average price for all ingredients and packaging materials.

They wanted to know what it takes to do that and the impacts itu2019s going to have on the product costing and FIFO impacts it might have.

Can you Put some light on it, Any information wouldbe really helpful as i am really amatuer on this area.

Thanks

Jay

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ajaycwa1981
Active Contributor
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Hi Jay

1. If you are on lower versions of SAP - When you change from S to V, you have to manually update the V price same as S and then change the price control

For eg: Std price is 100 and MAP (Mvg Avg Price) is 0... If you want to change from S to V, you should make MAP as 100 1st and then change S to V

But, if you are on ECC version - system automatically adopts the 100 in MAP and you can simply change it from S to V

2. Whether stocks exist or not - You can change price control

3. With every GR from purchase order - your MAP will be updated.. As of now, you are used to a single std price for whole period... Now, it can be a different price after each GR

All consumptions would happen based on the MAP at that point of time

4. If your product costing of FG (Valuation variant) reads the standard cost of input materials as of now, you may have to change it to read the MAP hence forth

Regards

Ajay M

Edited by: Ajay Maheshwari on Nov 11, 2010 8:35 PM

jaybanda2
Active Participant
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so is there any setting to be done on CO Side or is it the MM side for this change. upto my knowledge everything comes from MM settings isn't it. and as a Contolling guy what should i need to make sure from my side?

ajaycwa1981
Active Contributor
0 Kudos

Hi Jay

Nothing from CO side except ensuring that Valuation Variant refers to the MAP and not standard price during cost estimate

Just ensure that val Variant reads the price you want in CK11n.. thats it

Thanks

Ajay M