RE:[sap-log-mm] How to Control the Moving Average Price in the SAP Material Master

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Posted by James FitzGerald
on Dec 15 at 10:31 AM
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.

---------------Original Message---------------
From: Jagadeesan Ashok
Sent: Tuesday, December 13, 2011 12:47 AM
Subject: How to Control the Moving Average Price in the SAP Material Master

Dear Experts,

Good Morning!

How to control the moving average price in the sap, because our material procuring methods in two separation one Sea shipment another one is air shipment

As you know Sea shipment transporting cost is lesser than the air lifted material, some times we do the ordering same materials in to sea or Air freight

Based on the urgency, but most of the material procured via sea transport, so moving price is defined is last procured price + transporting taxes etc…..

Is there any different moving price maintained in the material master for SEA and Air procured parts because our production cost + material cost is work based

On the moving price only, our costing shows the Particular Production order make loss because Moving average price is higher… even we procured the material via

Sea shipments. Why this happened know earlier we procured the same material via Air shipment….
With best regards,

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