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When "Total Stock Value / Total Stk Qty" Not equal to Standard Price ??

Former Member
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257

Hi Friends,

We are using Price control "S" for all materials, Material ledger is active but not using actual costing.

For some materials the "Total Stock Value / Total Stk Qty" Not equal to Standard Price.

Can any tell me in what situations this will happen.

Thanks in Advance.

Regards

Ravi

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Well, personally, I don't believe we need to do anything about this. If these are rounding errors, the system tends to sort it out 'by itself' - and what I mean is:

The system stores Standard Cost Estimates upto 3 or 4 places of the decimal, but displays it upto 2 places of decimal. When this is case, all material movements are multiplied by the rate stored in the system tables rather than the rate as displayed in the Costing 2 or Accounting 1 views. So normally you tend to have minor adjustment errors, but these should not normally be serious.

One way to avoid this issue is to manage the Standard Cost Estimate by using a higher value for the Price Unit. E.g., if your SCE is 300.456 per 1 Tonne, increase the Price Unit to 1000 and that way, the price displayed will be 300,456.00 per 1000 Tonnes.

When the system calculates stock values, it always considers the Standard Price as well as the Price Unit, along with the Base UoM. So that way, you numbers are bound to "add-up" each time.

Having said that, if you are concerned about massive differeces just because of rounding errors, you may want to post monthly / periodic adjustment journals to stock / COGS, whatever the case may be.

Hope this helps.

Cheers.

Former Member
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Thanks once again friend,

Given points to your valuble answer.

Regards

Ravi

Former Member
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Hiya,

In some my implementations, we did use ML and in all cases, with Actual Costing. However, except for minor rounding differences (owing to the Price Unit), the unit rate always matches the Standard Price and the Value at Periodic Price / Stock Quantity always matches the Periodic Price.

How significant the differences? I'm assuming you are not referring to rounding differences.

Cheers.

Former Member
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Thanks for you time & valuable inputs Ram Nandula,

As you said there are differences only for few materials and the differences are ranging from -0.01 to +1.85 per unit price, but when multiplied these differences with existing stock these differences are huge.

Can you tell me why these small differences per unit are coming when material ledger / actual costing is used.

What should be done with these differences?

Warm Regards

Ravi

Former Member
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Any thoughts?

Former Member
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Is it related to problem in Program or not following the processes properly?

Thoughts please.