Posted by
Sap Land
Thursday, 15 December 2011
08:43
Hi,
Split Valuation for Sea & Air will be the best solution for the better control on MAP where such both types of procurement is there. Even we can compare the price trend as well as Planned Cost of both types of procurement too. Due to such split MAP, Actual process Cost can derived against Input Consumption. We can analyze different Variances incurred for both types of transactions.
Further, for controlling air lift you can use the trend analysis for both types of procurement easily. And even budgetary control can also be imposed after trend analysis of such procurement.
| | | ---------------Original Message---------------
From: James FitzGerald
Sent: Thursday, December 15, 2011 10:31 AM
Subject: How to Control the Moving Average Price in the SAP Material Master
Why not Standard Cost; split valuation is very cumbersome.
If you don't want the aggravation of split valuation throughout the plant it would be worthwhile using the Standard Costing method.
You would need to understand how you wanted to analyse the purchase price variances. In this type of scenario you may want to have the standard cost = price of acquisition by sea. You can then beat your purchasing department over the head for any unplanned air costs. To be serious though if you use standard cost you then have a basis for cross charging any 'urgency' costs onto your material planners or to the customer if they demand unrealistic lead times. You could analyze the PPVs out to one account and offset this with a sales charge for urgent requirements. |
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