clarification required on MAP

[Former Member]

we are into IS-Retail. i want to to know the impact on MAP when ever stock transfer takes place between stores belongs to one co.code.

Ex: if the article 'A' has MAP of 20 in supplying store code 3300

and receiving store code 4400 has MAP of 40 for same 'A' article.

in this scenario how MAP will impact and what are consequences in supplying and receiving stores.

[Former Member · Accepted solution]

To answer your question, I will assume that you are referring to the purchase price and not the retail price, and that both sites are in the same company code (therefore intercompany billing is not in place).

If site 3300 has a moving average price of 20 and site 4400 has a moving average price of 40, then when the stock transfer takes place, site 4400's moving average price will be reduced. Let's assume that site 3300 is sending 100PC or 100EA or whatever, and site 4400 has 50PC on hand. The total inventory cost being transferred is 2000 (20 * 100 = 2000). Site 4400 has 2000 in inventory (40 * 50 = 2000). Site 4400, when it receives the inventory now has 4000 in inventory and 150PC for a moving average price of 26.67. (4000 / 150 = 26.67). Hope this helps.

[Former Member]

Thank u for ur clarification.