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Negative Moving Average price.

Former Member
0 Kudos

Hi All,

in my company all meterial issued to prodcution order / cost center Immediately after G.R.

we do invoice verfication of vendor after say 1 month.

Now if there is difference in Price of MIRO & MIGO & there is no stock of material.system gives error message "Moving average price is in negative " & we are not able to post the documents.

What is the standard practice in the case / permanent solution for this problem.

this is frequenet problem we are getting.

Thanks & Regards

PKY

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi,

Because the calculation of moving average price is based on the currect stock quantity and value, if the difference is greater than the current stock value, then you will get the negative moving average price!

Suggestion:

1. Do IV as soon as possible to avoid the deficit of stock value;

2. Waiting for the stock value is greater than the difference, do IV!

But they are not standard and better solution, you had better optimize the IV procedure!

Good luck

Tao

Answers (0)