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MAP Change

Hello,

Can any one please let me know, in how many ways the Moving average price of the material can be changed.

thanks & regards

Chaitanya Rayaprolu

Former Member
Former Member replied

HELLO,

MOVING AVARAGE IS NOTHING BUT VALUE/QTY

SO WHENEVER THERE IS CHANGE IN VALUE AND QUANTITY THERE WILL BE CHANGE IN MOVING AVARAGE PRICE.

For example business senarios

1) If PO of 10 Nos with 10 rs price , GR by 10rs and during invoice verification is done by 11 rs ,Then there will be change in MAP.

2)If qty 9 with 10rs during Gr and qty 10 with 10rs in IR then there qill be change in MAP.

How SAP calcualte the moving average price

Goods Receipt for Purchase Order

Balance on hand quantity + Goods Receipts quantity

Balance on hand value + Goods Receipts value

New Moving Average Price = Total Value / Total Quantity

Invoice Receipt for Purchase Order

Invoice price more than Purchase Order price

additional value add to Balance on hand value then divided by Balance on hand quantity

Invoice price less than Purchase Order price

difference is deducted from the Balance on hand value (up to 0). The rest of the amount will becomes price variance. This will result in Balance on hand value is zero while there are Balance on hand quantity. If the Balance on hand value is enough to deduct, then the remaining value will be divided by Balance on hand quantity.

When your Goods Issue price is constantly greater than your Goods Receipt price, it will result into zero value moving average price.

Hope this helps you

Regards

Kedar Kulkarni

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