'Moving average price for material is negative' calculation

[Former Member]

Hi Gurus,

I would like to ask for your assistance regarding Invoice having error of 'moving average price for material is negative'.

How is it being calculated that it goes to negative value? Can you also please give a scenario on why it became negative?

We have the following scenario:

MAP: 0.30

Total Stock: 9

Total Value: 2.74

PO raised and GR was done:

Quantity: 240

Value: 2.95

Would appreciate your assistance on issue.

Thank you.

Jih

[Former Member]

Hi,

Have u activated negative stock for that material. Negative stock is where good issue is made for material for which physical inventory exists as per desired requirement but the actual stock quantity is less than the issued quanity.

This is mainly because , good reciept is not been carried for last supplies

For example : Total book stock quantity for material A : 100 Pieces MAP IN Material master record for material a 10 Euro

Good Issue as per requirement is for 500 pieces

Now there was good reciept of 600 pieces which haven't be done.

Actually your book inventory is 100 but physical inventory is 700 pieces. and goos issue was asked for 500 pieces. Because of which MAP is negative

I think this can be a case. responses will definitely improve my knowledge

Many thanks.

Regards,

Tushar Patankar

[Former Member]

Hi Joe,

you can get the MAP details , how it becomes to negative by this t code - S_P00_07000139

Edited by: Jayakumar Raju A.S on Sep 24, 2009 7:13 PM

[JL23]

This case happens if you receive the material with a price that is to high. Then you consume from this to high valuated stock.

Now you post the invoice that has a different price than you had when you did the GR.

Now SAP tries to adjust the price of the remaining stock by distributing the difference. Because your difference is higher than the current value of the total stock, the MAP would become negative, this is not allowed, hence you get an error.

[amit_choudhary6]

Jurgen,

Does that mean if the total stock value = 100 and qty = 10, MAP = 10

PO of 10 with price @ 12

GR at 12 / pc

IR at 30 / pc.

So now it will make the MAP negative ?

[JL23]

yes

GR 10 with total value 120

current stock 10 with total value 100.

Invoice receipt for 10 with total value 300, which is 180 difference to the GR value, that needs to be distributed to current stock.

100

- 180

_____

-80

-80 divided by current stock 10 = - 8 MAP

[Former Member]

Hi Jurgen, Hi Gurus,

Since it would be negative posting and solution taken was to increase price of MAP, would there be any impact or issue with regards to Finance/Controling side (Accounting wise)?

Appreciate your comments on this.

Thank you.

Jho

[JL23]

yes FI will certainly be effected with a price change, as the value at the stock account increases with a price change

[Former Member]

Hi Gurus,

Thanks for the reply. Can adviced what would be the MAP for below scenario for it to trigger an error "Moving average price for material is negative".

PO was created last 2003 for material XXX with quantity of 240. Total stock of the material at that time is '0' with total value of '0' while MAP is 2.90. Full GR confirmation was done on the succeeding month. Total stock was 310 with total value of 914.75 and MAP was 2.95.

After 6 years which is September 2009, they have decided to do invoice on the PO. Upon checking the total stock of 9 and total value of 2.74 with MAP of 0.3 an error "Moving average price for the material is negative" occured.

Can anyone be able to determine the reason for the error of negative price encounterd during invoice posting.

Many thanks for the help.

[former_member671387]

Hi,

Please check that price of that material is increased or decreased by using transction MR21. after GRN.

You posted a valuated goods receipt for a purchasing document for a material with moving average price control.When the invoice was posted (invoice item with price variance for goods receipt), the system generates error message M8783: 'Moving average price for material & & & is negative'.

Between the posting of the original goods receipt and the entry of the invoice, the system already posted additional valuation-relevant transactions/events (goods movements, invoices and so on, can be displayed with Transaction MR51).

The invoice verification tries (for stock coverage) to credit/subsequently debit the difference between the value of goods received and invoice item value for the stock.However, the material total value must not become negative by this stock posting.

Solution

Before you post the invoice, you must first increase the stock value.

The amount by which the stock value must be increased at least can be calculated from the following values:

1. Transaction MM03, accounting view material master, field 'Total value' (MBEW-SALK3)

2. Invoice item value according to invoice

3. In the invoice verification (Transaction MR01, MR1M, MIRO), change the invoice item amount to a value which is high enough and simulate the invoice to receive the value which would be posted for this item to the GR/IR account.

In the invoice verification, the value (3) minus (2) is posted to stock. It must be larger than (1).Post a subsequent debit with the amount (3) + (1) - (2) for the affected material/plant (Transaction MR22).

You can post the invoice afterwards.

Regards.

Edited by: Sachin on Sep 24, 2009 9:11 AM

Edited by: Sachin on Sep 24, 2009 9:13 AM

[Former Member]

HI,

Check any goods issues against that material with different cost.

Regards,

Andra