valuation amount of material when it is received from two vendors

[Former Member]

Hai All,

We have one material master : X and the unit of measure is 'pcs' and two serial number : A,B

For this material we make two Pos

First PO calls material X , 1 pcs price 100 (will use serial number A)

Second PO calls material X , 1 pcs price 250 (will use serial number B)

Goods Receipt is done and by filling serial number for the fist PO with A and the second PO with B.

We want to transfer material X serial number A to another plant what will be the valuation amount when the transfer occurs ? how it is calculated

Thanks in advance

From

Sreenivasa Chary

[Former Member · Accepted solution]

I don't think serial number has anything to do with the Material valuation. It is generally used for Logistics purpose. When you are transfering material from one plant to another plant, material price is determined based on the company code of receiving plant. If the transfer is between the plants of same company code then price is determined by the price of material in receiving plant and if the transfer occurs between the plants belonging to different company codes then the price is determined by price in intercompany purchase order.

[Former Member · Accepted solution]

Hai,

You have mentioned that the price is determined by the receiving plant what is basis for this ( criteria of price determination ), secondly we talk about the inter company purchase order in this particular order will the price be picked up from Material master data .

[Former Member · Accepted solution]

1980,

what is basis for this ( criteria of price determination ), 

It is a business decision. When a company is set up in SAP, certain decisions are made as to how the company wishes to value it's inventory. Additional rules are invoked when the Material Master is created in the destination plant. These rules determine the methods used by SAP to post accounting documents, and to valuate inventory. Every business is different, and there are many methods. Start here:

http://help.sap.com/saphelp_erp60_sp/helpdata/en/ff/515fab49d811d182b80000e829fbfe/frameset.htm

we talk about the inter company purchase order in this particular order will the price be picked up from Material master data 

Not necessarily. The price can be entered directly in the Purchase order manually, or it can be determined using condition records. There does not have to be a direct relationship between the Material Master prices and the Purchase order (transfer) prices. Again, this is a business decision.

If you wish additional info about these topics, you might want to try one of the Controlling forums, rather than APO. APO is mainly a supply chain planning system, and the main focus is not cost or price or valuation. Accounting/Controlling is mostly done in the attached Online Transaction Processing system, usually ERP.

Best Regards,

DB49

[Former Member]

Hi,

I donot know more about Material Management. May be you need to look into the split valuation functionality from MM side.

Thanks,

nandha