SAP EWM Drive for Consultants

SAP EWM Drive for Consultants
SAP EWM Drive for Consultants, Also SAP server access for MM/SD/PP/QM/EWM/S4 Hana - Technical and Functional

SAP MM / EWM Content

Friday 6 September 2019

Moving Average Price (MAP) and Physical Inventory process Overview - SAP MM


Moving Average Price (MAP) and Physical Inventory:

For Videos Explanation, please go to YouTube and Subscribe -  Studyuuu  SAPMM


Moving Average Price:

Concept:

We all know material will be evaluated at plant/Company code level and once you evaluate the price for the material, we need to update in the material master- based on material type. If the material is Finished good, then material price will be moving average price and semi-finished goods may have standard price indicator in material master.

For finished goods, its good to have moving average price because as per the market value the price will change daily.

For semi-finished goods they cannot be changed daily because it’s not a product, mainly it’s a consumable material which will use for support product and it’s a standard price.

Example: 

In our country when ever the budget proposal happens, then they will decide whether this finished goods price should be decreased or not, but they will not worry about consumable materials
Note: We are doing all above things to know the report of spends and correct GL hitting after posting MIGO for a material.

When we are updating price in material master, these things will keep in mind and update the price indicator respectively because its effecting the GL accounts in background.

If you have knowledge on account determination, then the above scenario will affect the PRD transaction key- Price difference account.

How it works:

Once we are maintaining the material then we are updating price control as V or S.

After updating how the price will change for price indicator V-Moving average price, this filed in material master will change daily if we are doing MIGO with the combination of material and plant.
For standard price the price will not change automatically, if required we need to change it manually.

How price is changing for V (Moving average price)-in material master:

Here the price needs to change whenever the MIGO was done for PO
We have one standard formula that on what basis, the price will change in material master.



                              Previous MAP * Previous stock + PO price per quantity * GR Quantity
MAP=                   ---------------------------------------------------------------------------------------------
                                                                   Previous stock + GR Quantity

Check out the formula

Note 1: Where check the previous MAP price in material master for that material and in the same screen we can find out the stock present for that material.

Note 2: Once you get that information then check the current PO price per quantity and GR quantity.
If you are creating PO, then take that info like if you are creating PO now for 100 quantity where per 1 quantity is 10 EUR then GR quantity as 100.

Note 3: Check the previous stock for that material in material master and GR quantity that you are doing now.

Example: lets think previous MAP is 10 and previous stock is 125 and current PO price is 15 with current GR quantity as 100

Now for denominator- Old GR quantity is 120 and new GR quantity is 100



                                                    10 * 125 + 15 * 100
MAP=                   ---------------------------------------------------- =12.22
                                                            125+100


The new price is 12.22 EUR

Now check the material master price in that material- Moving average price – the price will be 12.22 EUR.

Physical Inventory:

Every company will have stock of materials in warehouse for there production activities and everyday the respective persons needs to update the entry and exit of stock in the plant and sometimes it may affect the production if we are not doing this properly.

Example: we all know PR’s will be created by System and manually but if incise system wants to create PR then it will check the level of stock in plant and once the level of stock decreases then automatically system will create PR for that material. To do that correctly the system stock should be updated correctly and there are many scenarios that people tends to forget the updating the inventory with correct numbers and for that SAP has been recommended the physical inventory.

If the level of stock decreases by 50% then system will create auto PR’s with fixed vendors.
End of the day of physical inventory both the stocks needs to match -if not we will post the differences and match it in SAP.

Physical Inventory:

the concept is the warehouse stock should match with physical stock in plant and this counting will be done manually in plant.

Overview:

 Every company they will follow this physical inventory process and its recommended by SAP to do, like for every 3 months or 6 months this physical inventory check should happen and this is the process done in SAP and warehouse persons will update and provide the stock to respective person to update in SAP.

Few companies they will check this physical inventory monthly because they don’t to be in trouble of production loss.

Procedure:

This activity mostly done in weekends and once we are doing this will mark freeze option or block option to avoid incorrect count in physical inventory.

Once we are decided to check for physical inventory then respective team will open T-code MI01 and create a physical inventory.

Create Physical Inventory: MI01---

Where we will enter the plant, material and storage location and save the screen
Now the physical inventory has been created.

1.      Posting Block:

We are marking posting block indicator such that there will be no inventory postings done in SAP before completing this physical inventory for this material.

If the physical inventory is taking 10 days, then up to 10 days there will be no postings done in SAP.

2.      Freeze book inventory:

If we select this option, then system will allow for postings in SAP, but the physical inventory number will be frozen or locked with that number such that there will be no difference in number of counts.

Most of the companies will prefer this option because we don’t know how much time it may take for counting.

Print Physical Inventory: MI21

Enter physical documentary number and execute, so that it will allow you to print.
Whatever they created for material they need to segregate as per the material group wise and take a printout of that what we created.

Once we have taken the print of that physical inventory then we need to send that print to the respective warehouse person then they will count and update in paper that stock is this much.

Enter count for Physical Inventory: MI04

Once we get the count from the warehouse person, then the count needs to be entered in the system as per the material through MI04.

Update the physical inventory number and execute then it will show the material then update the quantity in quantity field and save the screen.

MI05- if we need to correct the number what they have updated then we can update it.

Post Physical inventory: MI07

Once you have posted above step now, we need to do the posting the difference.

Go to MI07 and enter the physical inventory number then system will automatically show the difference in quantity and just check with original quantity in system then post the differences -Save
Here we have only 2 cases the quantity in the physical stock is more than the system stock
Quantity in the system stock is more than the physical stock
Or else both the stocks are matching with correct quantity.

Here once we are posting the differences the system will automatically generates the movement types accordingly.

Movement types-

701/702- Unrestricted Stock

703/704- Quality Inspection

707/708- Blocked Stock

System will automatically pick up as per the stock selected in MI01- here we have 3 options to select that physical inventory needs to be done from which stock.

701- Goods receipt for Warehouse Unrestricted stock
               It Means Counting stock is more than System stock

702- Goods issue for Warehouse Unrestricted stock
               It Means System stock is more than Counting stock

703- Goods receipt for Warehouse QI stock
It Means Counting stock is more than System stock

704- Goods issue for Warehouse QI stock
It Means Counting stock is more than System stock

707- Goods receipt for Warehouse Blocked stock
It Means Counting stock is more than System stock

708- Goods issue for Warehouse QI stock
It Means Counting stock is more than System stock




Please comment your doubts in the comment section of the Blog

                                  Whatsapp link for SAP MM Consultants--


26 comments:

  1. This comment has been removed by the author.

    ReplyDelete
  2. I was reading some of your content on this website and I conceive this internet site is really informative ! Keep on putting up. atividade física brasília

    ReplyDelete
    Replies
    1. Thank you
      Please reach out to- Studyuuusapmm@gmail.com

      Delete
  3. This particular is usually apparently essential and moreover outstanding truth along with for sure fair-minded and moreover admittedly useful My business is looking to find in advance designed for this specific useful stuffs… cci

    ReplyDelete
  4. Employees who have undergone extensive background checks and are trained in the intricacies of office relocations and records moving. movers des moinesiowa

    ReplyDelete
  5. This is my first time i visit here and I found so many interesting stuff in your blog especially it's discussion, thank you. this page

    ReplyDelete
  6. man and van dublin To ensure your property during your turn, you need to ensure you pick a solid organization that gives its customers the most ideal assistance. Since there are many business moving organizations around, you should be particular about who you trust with your hardware with.

    ReplyDelete
  7. The greater part of the organizations that were associated with the moving industry were at first limited to simply neighborhood migration, while overlooking the worldwide movers.bay area movers Be that as it may, presently global movers can likewise use administrations of moving to help them in their migration.

    ReplyDelete
  8. There is noticeably a lot of money to understand about this. I suppose you have made specific nice points in functions also. same day movers

    ReplyDelete
  9. Took me time to read all the comments, but I really enjoyed the article. It proved to be Very helpful to me and I am sure to all the commenters here! It’s always nice when you can not only be informed, but also entertained! Flyttebyrå Oslo

    ReplyDelete
  10. Every one of us needs to settle on a decent and good choice with regards to going through the entirety of that cash for moving. Every one of us has our own particular necessities. Europa-Road túlméretes szállítás

    ReplyDelete
  11. On the off chance that you are preparing to move and worried about securely moving your family products this arrangement of articles will tell in subtleties the best way to wrap your furniture for any enormous or little move. Europa-Road targonca szállítás Debrecen

    ReplyDelete
  12. Man and Van is a home and office mover organization expecting to give its clients a free from any and all harm administration all through London. The Man and Van Company is an expulsion organization that helps individuals out there who need to move their homes and workplaces to London.man with a van hire London

    ReplyDelete
  13. What a fantabulous post this has been. Never seen this kind of useful post. I am grateful to you and expect more number of posts like these. Thank you very much. moving company

    ReplyDelete
  14. Basement Finishing Atlantais locally owned and operated. We cater to the basement needs around the greater Atlanta area. Our team has the experience of working on large-scale projects to simple ones.

    ReplyDelete
  15. You understand your projects stand out of the crowd. There is something unique about them. It seems to me all of them are brilliant. Massachusetts senior movers

    ReplyDelete
  16. In any case, assuming that you are moving significant distance (highway moving) or to capacity, then, at that point, buying your own moving covers may be smart. Bayside Mowing

    ReplyDelete
  17. Such an informative article . Sunshine coast rempvalist Moved my furniture interstate they were reasonably priced and very professional and pleasant to deal with definitely recommend, very informative for pickup and delivery.

    ReplyDelete
  18. You explain it well, thanks for sharing your insights. Some of you don't know the moving companies sunshine coast if you want more information just visit the page.

    ReplyDelete
  19. Impressive and powerful suggestion by the author of this blog are really helpful to me. House removals Geelong

    ReplyDelete
  20. This comment has been removed by the author.

    ReplyDelete
  21. We offer full support, tweaked nearby and significant distance business migration administrations with an emphasis on impressive skill and using cutting edge innovations to guarantee the protected taking care of and chain of guardianship following of your things. Office moving company

    ReplyDelete
  22. Great information. I feel like more people need to be made aware of these things. Your calculations are on point. More companies should pay attention. We are movers in Farmville, VA

    ReplyDelete
  23. This comment has been removed by the author.

    ReplyDelete
  24. I am simply writing to say that you have provided an interesting and helpful article here that is well-informed. Keep sharing this kind of information, I appreciate it. custom erp software

    ReplyDelete
  25. They used straps to secure heavy items in place to prevent shifting during transit.
    Local Movers

    ReplyDelete

Featured post

What is IDOC? Explanation for Interview Purpose

What is IDOC? Explanation for Interview Purpose: Overview Explanation for Interview purpose Question: What is IDOC ? IDOC i...

Popular Posts