Does zero value PO update MAP ?

[Former Member]

Hi MM Gurus,

Need to check if I create a zero value PO, with account assignment category as "Y" - No Cost,, nett price as zero and "free" indicator as checked, upon GR, will the MAP price be updated ?

For these "free" goods that are received into the system, it is presently sitting in the Plant level. If I transfer them to a storage location level, will the MAP be updated also ?

I search through the forum and there does't seem to be an answer for this.

Thanks for your help in advance.

[Former Member · Accepted solution]

Hi Vincent,

If your PO is created with account assignment, the GR will be expensed directly to the cost object. It does not get posted into stock:

Dr Expense account - Cost Object

Cr GR/IR

MAP is not affected whether it's free of charge or not.

Phyllis.

[Former Member · Accepted solution]

Dear Phyllis,

Thank you for your reply.

But I have 5 person here telling me that the MAP will be updated once the GR has been done for free goods. Also, can further elaborate on "it does not get posted to stock".

The PO settings that I have created is :

Account Assignment category = Y (No Cost)

Free goods indicator = checked

Nett Price = 0

Thanks

Vincent

[Former Member · Accepted solution]

Hi Vincent,

It all depends on your Account Assignment 'Y'. It's not standard so it depends on how it's defined in your system.

When you use this account assignment, do you have to enter any cost object in the Account Assignment tab, e.g. cost centre, order, asset, etc? If yes, then the qty is not updated into the material master. If you DONT enter any cost object, then the quantity is updated back to the stock account and your MAP is affected.

Hope I make this clearer for you.

Phyllis.

Edited by: Phyllis Waugh on Oct 10, 2008 4:46 AM

[Former Member · Accepted solution]

Hi Phyllis,

I did an test in my test environment and you are correct. I did not enter any cost object in the Account Assignment tab

The PO that was received in does not affect my stock level and MAP. Thanks Problem solved.

[Former Member]

Hi,

MAP is calculated using formula ---Total Stock value /Total Stock nos.

Ok. So, when the Nos,increase, the MAP is recalculated and updated in material master.

Just check it,.

Regards,

Smitha

[former_member529134]

Hey Vincent , if you do revaluation every time after the goods receipt, what about the opposite entry falling in the income/expense from revaluation account?

How is your finance people going to handle that figure in that account which is a P/L and how are you going to justify those entries?

Regards

Gregory Mathews

[former_member529134]

But even with split valuation, it will affect the MAP of the material at plant level.All you will get is the MAP for a particular valuation type can b kept unchanged.

Hey Vincent will that satisfy your requirement? Personally I dont

think so.

Regards

[Former Member]

Hi Gregory,

Yes I think it will not work also.

My Finance was suggesting if we were to change the MAP after the good receipt to the original MAP using MR21, will that work too ?

E.g.

Present MAP is $1 stock level 1,000

Old MAP = $1

zero PO receipt for 1000 pcs

New MAP = $0.50

Use MR21 to change the MAP back to $1.00

Catch is that you must note down the MAP before doing GR.

[Former Member]

Dear,

Yes the Moving average price of material is decreased.

As a rule, against free of charge GR posting for material with MAP,

No accounts are credited or debited when the delivery free of charge is posted, since there is no change in value. The stock quantity of the material increases in the material master record, while the total value remains unchaged u2013 for this the moving average price automatically decreases.

Regarding transfer of material in plant level to storage location level in the same plant, assume that no changes in price since the transfer is in the same plant. Please check one entry in quality server and confirm.

Regards,

Syed Hussain.

[pankaj_singh9]

Hi,

If you create a Free PO for a Valuated Material then it will definitely affect MAP of the Material.

For e.g. Current Stock of Material = 100 EA and Value = 1000 INR so MAP = 10 INR

Now if you receive 10 EA of material against Free PO then Stock of Material = 110 EA and Value = 1000 INR so MAP = 9.09 INR

The only solution is Split Valuation of the material but it will affect MAP of the material as whole but Valuation Type wise it will not get affected.

[Former Member]

Hi,

If you have current stock with a MAP and do a GR for a Zero Value or Free good item, it will certainly update the MAP as the total value for the material is not getting changed but the qty changes, hence MAP too is being updated.

Trust its clear..

Regards

Merwyn

[former_member529134]

Hello

The receipt of goods receipt as free goods will change the MAP.

Regards

[Former Member]

Hi Gregory,

Any way to get around this as the Finance here don't wish to update the MAP for "Free" goods ?