Material Moving Price and Standard Price

[Former Member]

Hello All,

what could be the reason for having both the Moving Av.Price and Standard price in Material Master of FERT?

Can anyone explain me the business case

Thanks

Arshad

Edited by: arshad ahmed on Apr 21, 2009 8:35 AM

[Former Member]

hi

Standard price for FERT, it is assumed that the FERT material is in_house produced and is subject to costing, that is price will be subjected to changes due to reasons which are internal. for example Inhouse cost run, manual change or costing during confirmation. This price becomes the basis for sales of teh product, where we further add other expenses like transport/insurance/ handling or any other cost before sellling it.

Moving Avg price means that the material is subject to price Variations due to Procurement or trading activity as it is a Finished material. If only activity would have been Trading then might be HAWA could have been the solution, since Procurement is involved the Moving Price indicator is there for weighted avg price updation of the material.

Best regards

[Former Member]

Hi Arshad,

Moving Average Price and Standard Price for FERT material type can be maintained or used in split valuation.

The material can be inhouse production or can be a external purchase.

In this case based on split valuation you can choose the either of moving average price or standard price.

Regards,

Nani.

[former_member433442]

Hi,

In standard SAP if you maintain price control V, then system will update the moving average price automatically. If required you can also maintain standard price for information purpose.

If you maintain price control S, then valuation will happen with standard price, but here also system will calculate moving average price automaically for information purpose.

Regards,

Prabu

[Former Member]

For material type FERT the moving average price is used for Trading product where you import the finish good and sale the same.

The standard price is use when the goods are manufactured by you and for sale you set a stanadard price.