Can any one please let me know, in how many ways the Moving average price of the material can be changed.
thanks & regards
Kedar Kulkarni replied
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