Moving average in B1

[Former Member]

Dear All,

May i know how to calcuate the moving average in B1? can i custom it or it is already set in the system that i cannot change it ?

Many thanks!

[former_member186095 · Accepted solution]

Hi,

Moving average valuation method calculates the inventory value by the item's cost price. The item's Cost Price field is found in Inventory --> Item Master Data --> Inventory Data tab page. This field is updated dynamically by every stock receipt posting.

The example provided by Gordon is okay.

To know more here is a general info about several inventory valuation methods:

http://accountinginfo.com/study/inventory/inventory-120.htm

From SAP, there is a pdf file named continuous stock system in release 2004A. It explained about continuous stock system by Moving average, FIFO and standard cost in B1 and so on.you could download it from this link:

https://websmp108.sap-ag.de/smb/sbo/documentation

Rgds,

[Former Member · Accepted solution]

thanks all!!

[Former Member]

No. You can not change it. It is system function. Moving average is very simple concept. There is no special setting to configure. If it can be changed, it will not be called Moving Average.

In a simple example, moving average is calculated as follows:

Qty   Price   Amount
10      10       100
20       5       100

Moving Average Price = 200 / 30 = 6.87

Thanks,

Gordon

[Former Member]

But we can select the default valuation method during the initial setup....am i right?

[former_member186095]

Ye, starting in Release 2004 A it is possible to change the valuation method of an item, however it would be better ifit is not linked to any open documents and its On Hand stock is zero.

Rgds,

[Former Member]

In system initialization, U can select either standard, fifo or moving average method.