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MAP and Standard Price

Hi All,

Moving average price is just used for raw material.

Standard price is used for semi-finished goods and finished goods.

When there is a difference in moving average price, where it will settle?

This is because in the moving average price, the price of material always fluatuated, but when we set the standard price, the price of semi-finsihed and finished goods will become fixed.

So when the price difference in moving average price, where it will settle the price difference?

Best regards,

Chien Yee

Former Member
Former Member replied

Settling to variance account will be done at the period end closing transaction.. when your prodcution order has a status of TECO( technically completed or DLV( delivered) , then system at the period end calcuate variance and at that time variances are settled and posted to FI

So after the receving the goods( i.e. after doing GR from production otherwise when u receive back the goods from production order to store) , the variance will be posted to FI

If help ful asign points



Message was edited by:

Prabhat Kumar

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