Moving Average Price

[former_member417357]

Hi All,

Initially MAP of a material was 3000 rupees. After GR and GI of material, MAP reduced to 50 rupees which is wrong, because purchasing department procure the same material varies between 2500 to 3000 rupees only. Why the MAP got reduced to so less and please provide the solution for reset the price to original one(Rs.3000).

At the same time, system throwing error "Moving Average Price for material is negative" during Invoice verification of material cost.

Thanks in Advance.

Santosh

[Former Member]

Dear,

Check is there any PO price changes after GR done. Usually in this case this haappend. If so do cancel the GR and do again.

Check OSS NOTE: 202166

Please check and Confirm:

Total stock ( Qty ) and MAP shown in Material master accounting View.

Also check content from SAP notes this may be useful to you.

Symptom :

You post invoice documents with online transactions of the Logistics Invoice Verification.

When you update the Moving Average Price (MAP) under certain constellations it results in the effect that the MAP becomes constantly smaller until it goes towards 0, or the system generates error message M8 783 'Moving average price for material is negative: ...'.

Reason and Prerequisites

The invoice price is constantly less than the goods receipt price.

The invoice verification tries (in stock coverage) to subsequently debit resp. to credit the difference between value of goods received and invoice item value to the stock.

Example: Purchase order with price of 5,00 EUR/PC

Total stock: 0 PC Total value: 0,00 EUR Moving average price: 0

1.) Goods receipt of 10 PC with 5,00 EUR per piece.

Total stock: 10 PC Total value: 50,00 EUR Moving average price: 5,00

2.) Invoice of 10 PC with 3,00 EUR per piece.

The difference to the goods receipt is 2,00 EUR * 10 PC, amounting to 20,00 EUR. In the stock coverage phase the stock value is now reduced by this amount and thus the MAP reduces.

Total stock: 10 PC Total value: 30,00 EUR Moving average price: 3,00

In case of several invoices with too low a price the total value can reduce to such an extent that the MAP goes towards zero.

Solution :

This effect is the logical consequence both in a business aspect and in a posting aspect if invoices are valued with a price lower than the goods receipts.

In the inverse case the moving average price increases if invoices are valued with a price higher than the goods receipts.

With Transactions MR21/MR22 you can increase the price/stock value again - if required.

Furthermore, you can define tolerance limits in the Customizing for the MAP price variance (Transaction OMC0, tolerance key VP).

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You can see the MAP:

- Check tcode ME1P

- or table S031

Regards,

Syed Hussain.

[former_member417357]

Hi Syed,

Thanks for your solution.

Santosh