Change Standard Price to Moving Average Price

[Former Member]

Hello-

Is it possible to change the price control from standard to moving average? we have been using standard price valuation from day 1, but management has raised a question if there is a possibility?

what would be the consequences of doing this? we are talking about more than 150k materials here.

is it possible to do?

Any input on this issue is really helpful.

Thanks in advance.

RNarayan

[Former Member · Accepted solution]

Hello

yes it is possible, but you will loose all price difference all what is there in standard price related updates

use CKMM and change from 3 to 2 and S to V

Regards

Dinabandhu

[Former Member · Accepted solution]

Hello All-

Thanks for your answers...they are really helpful. But, would it affect anywhere from an audit perspective?

Thanks,

RNarayan

[varadharajan_krishnamoort · Accepted solution]

Hi,

What materials are you taking about Procured Materials or Manufactured Materials?

If it is raw material Technically no issues. You need give the accounting impact on account of change in valuation methodology (if material, you can use the statistical moving average for this purpse).

If it is finished products - SAP does not recommed to valuate Inhouse produced products with Moving Average as it has the potential to distort the material valuation heavily.

Hope this helps you.

Varadharajan

[former_member740051 · Accepted solution]

Hi,

There should not be any audit issue bcz of changing the pricing control.

1. Books are with both Differnce account and Inventory account under the same header. If you use the pricing control S, the difference will be under Price Difference account. If you use the pricing control V, the values are there in Inventory. So, you will get the values under the same header in books what ever pricing control you use.

2. I don't see any logic behind using Finished component with pricing control V. If you are procuring the finished goods material, then this can be considered as raw materials. If you sub-contract the finished goods, then that should be with Pricing control S and If we produce the materail inhouse, obviously it is with pricing control S.

Hope, it helps!

[Former Member · Accepted solution]

Again, Thanks for your answers. Can you explain why it is a good approach to use MAP for raw materials and Standard for semifinished and finished products. Maybe some pro's and con's help me understand the concept clearly.

Thanks,

RNarayan

[venkatsatish_lolla · Accepted solution]

Hi ,

Refer the standard explanation given by SAP in the below given link . This would be really useful.

http://help.sap.com/saphelp_erp60_sp/helpdata/en/d2/cb532d455611d189710000e8322d00/frameset.htm

Regards,

Venkat.

[Former Member]

Thanks for the answers

[Former Member]

HI,

You can change the Pricing control from S to V. Standard price will be copied to Moving average price.

Impact:

1.From the next cost estimate, these materials will not be considered for std cost updation

2.Further, every GR/IR of PO will update the Raw material price.

I hope, it helps

Vijayanand Sankaran

[Former Member]

Hi,

Yes you can change price control indicator from s to v. Be sure that after changing the indicator system will update std price when you run cost estimate.

Thru cost estimate your std price will only update. For update the same std price into MAV you would need to creat ABAP upload.

Download the std prices and upload to MAV price field for future.

hope it will be useful.

bukhari

[Former Member]

Hi, When there is a change in the Price Control, material valuation differs and consequently PR document is getting posted. For Example Price Control S, Price is 10. Qty 100, hence Material is valued at 1000. When there is change to V, MAP is 11, the stock value shall become 1100. Hence, the inventory shall be debited 100 and Inventory Valuation account shall be credited 100. If I am wrong, pl correct me. Trust this helps much! Cheers,

[Former Member]

I am not sure but i think

when you change the price indicator from S to V then the standard price will be copied on to moving average price.

and from now on ( after u change the indicator) your material will be valued at MAP.

So there will not be any change in the valuation of material when you change the indicator. It will only reflect in future movements.

Regards,

Reddy