moving avg price

[Former Member]

All sap gurru,

can some one explain me how the price changes with goods movement & entry in invoice.

Regards

Pankaj

[Former Member · Accepted solution]

Hello,

Moving Average Price is calculated as:

Total Qty=Balance on hand quantity + Goods Receipts quantity

Total Value = Balance on hand value + Goods Receipts value

New Moving Average Price = Total Value / Total Quantity

Thus lets assume an example where the GI/GR is done $50. At that time itself the Billing is not done but is done at a later stage when there is some more GI/GR, its a possibility that the price at this time is say $52 instead of $50.

For more details regarding Moving Average Price Calculation check <b>OSS note 185961.</b>

Regards,

Gauravjit.

Reward points if the explaination is helpful

[Former Member · Accepted solution]

Thanks a lot,

Can u send me details about intercompany billing.

steps

regards

Pankaj

[Former Member · Accepted solution]

Intercompany Billing

During a business transaction in which the sales organization belongs to another company code than the delivering plant, an intercompany sale from stock is carried out. In this case, intercompany billing is carried out between both company codes with the help of an intercompany billing document. Intercompany sales and distribution processing allows a company to sell goods from a plant which is allocated to another company code.

The system checks the company codes of the sales organization and of the delivering plant and automatically carries out intercompany billing processing for different outcomes. Two billing documents are created in this case:

A customer billing document which is sent from the sales organization to the customer who receives the goods.

An intercompany billing document which is sent from the delivering plant to the sales organization.

The difference between the customer billing document and the intercompany billing document remains in the selling company as a contribution margin.

To be able to use intercompany billing for the intercompany sale from stock, you must set the configurations to the following points:

Specify per sales order type whether intercompany billing is possible.

Allocate corresponding organizational data for intercompany billing to the plants with which intercompany sales and distribution processing is to be carried out.

Specify a customer number to represent the sales organization.

Default Settings

For controlling intercompany sales from stock, the following configurations have been set in Customizing:

1. Billing type

For the definition of the billing document, the billing type II (intercompany billing) was included.

2. Condition type

Condition types PI02 for condition rates to be determined in percent and PI01 for condition rates with fixed amounts have been included for calculating intercompany billing prices.

3. Access sequences

For carrying out intercompany billing, access sequences PI01 and PI02 have been set up.

4. Table maintenance

The system checks the allowed combinations of sales organization, distribution channel and plant by means of the table TVKWZ.