Moving price of the material

[Former Member]

Dear All,

Can anyone tell me what is the moving price.how can system calculate moving price with simple example.

Regards

Ajit

[Former Member · Accepted solution]

Hi,

You have asked to explain the moving average price with simple example. So, I tried to explain as given below.

Transaction 1: You are buying 120 pieces of u2018Material Au2019 at the rate 125 INR. So, the total purchase value is 15000 INR.

Transaction 2: You are buying 150 pieces of u2018Material Au2019 at the rate 155 INR. So, the total purchase value in this transaction is 23250 INR.

The value per unit is calculated as given below:

Value per unit = (15000+23250) / 270 = 141.67 INR

This is the average price of the material you have in stock.

Transaction 3: If you are removing 100 units from the stock for consumption or sale. So stock quantity is 170 and the stock value is 170* 141.67 = 24083.70 INR.

Transaction 4: You are buying 90 pieces of u2018Material Au2019 at the rate 110 INR. So, the total purchase value is 9900 INR.

The moving average price is calculated like this. MAP = (old stock value + Added value)/ Total quantity. That is (24083.70 + 9900)/260 = 130.71

Like this the prices will be changing according to the inward and outward movements.

Regards,

K Bharathi

[sarthak_mohantysd]

Hello,

The system calculates the moving average price automatically by dividing the material value in the stock account by the total of all storage location stocks in the plant concerned. It changes the price with each valuation-relevant movement.

This can be defined as a price that changes in consequence of goods movements and the entry of invoices, and which is used to valuate a material. It is automatically recalculated by the system after each goods movement or invoice entry.

Regards,

Sarthak

[Lakshmipathi]

Go through this link

[Standard vs Moving Average Price |http://www.sap-basis-abap.com/sapmm017.htm]

Also check this link

[Goods Issue |http://help.sap.com/saphelp_47x200/helpdata/en/47/61005e49f011d1894c0000e829fbbd/frameset.htm]

thanks

G. Lakshmipathi

[Former Member]

Hi Ajit,

The moving average price is the total of the values which are posted

to the material (material documents, invoices, price changes)

divided by the stock.If the stock is cleared completely, then the

value is also cleared completely.The price remains unchanged here, a

following receipt without external value is valuated with this

price.

regards,

Ramana