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Moving Average Price changes of structured articles

I decided to post this blog, because there is a topic coming up from time to time by our customers, which causes many confusion and misunderstanding, although it is not so complicated as it looks like to be for first.

I hope after reading my explanation many people will get the answer for their doubts.

When splitting up a structured article to its’ components eg. at the time of posting Goods Receipt (movement 319), the calculation of the MAP (Moving Average Price) of the components will be detailed below.

 

Some basics first

The MAP calculation works basically as per this formula:

The current MAP is stored in MBEW table (field VERPR).

When looking for the history of a specific MAP, the CKMI1 table will show to necessary entries.
The key (KALNR field) value can be extracted from the MBEW table, by copying the KALN1 field.
It makes sense to enter also a range for the Date in CKMI1, reducing the relevant entries for those days, when the questionable movements have happened. As soon as we display the list of corresponding DB entries, we can easily follow the changes happened to the MAP by posting the different material documents (AWREF field in CKMI1).

 

MAP of Structured article

Let’s take an example for easier understanding:

Sales set   Components
Cosmetics Gift   2  Lipsticks +             1  Perfume
  MAP: 10 / PC 200 / PC

 

The posting value of the components is calculated as per the following formula:

This is nothing else then distributing the posting value of the structured article proportionally to the components also considering the contribution of each components by weighting them in the formula.

If the sales set “Cosmetics Gift” is posted in article document with value of 199, the formula applied for each components:

  • Lipstick: 10 * 199 / ( 2 * 10 + 1 * 200) = 9.0454545
  • Perfume: 200 * 199 / ( 2 * 10 + 1 * 200) = 180.909090

Checkback:     2 * 9.045 + 180.909 = 199    OK!

Similar example can be found on SAP help portal as well, with less explanation and without formulas.

5 Comments
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  • Hi Andras,

    when you say: “If the sales set “Cosmetics Gift” is sold with value of 199” do you mean cost value (MAP) of the sales set or Retail Sales price?

    Also, why would the sale of the set alter the cost price of the components? Isn’t this against the logic of SAP according to which the Sales/Consumption value is ( MAP * Consumption qty ) ?

     

    • Hi Nikolaos,

      Thanks for pointing out to this sentence – I have corrected it. Actually the sales set’s final price (for which the consumers can buy it, is not the MAP of course, hence final price includes taxes, etc.) The above description of the implemented logic shows how the MAP changes are calculated and saved in case of structured articles (incl. components).

      Sorry, your question regarding altering the cost of components would be against SAP logic is not clear.
      The Sales Set consist of it’s components. If the components are inventoried (exploded in the goods movement), their MAP have to be updated as well. And it is important to understand (this is why this blog post has been released), that updating the MAP of the components is not calculated simply on proportional way – how it is expected by most of our customers, but there is a weighting considered here as well, as you could see above in the formula.

      Best regards,
      Andras

      • Dear Andras,

        In our ECC 6 Ehp 8 Retail system, when performing a 317 movement for creating 1 Sales Set A (with components B (1PC) and C (1PC)) the accounting entries performed by the system are:

        Set Article A (317 +)

        • Debit: Stock Account: (1* MAP of article A) EUR
        • Credit: Offsetting P&L Account:  (1* MAP of article A) EUR

        Component B (317-)

        • Credit: Stock Account: (1* MAP of article B) EUR
        • Debit: Offsetting P&L Account:  (1* MAP of article B) EUR

        Component C (317-)

        • Credit: Stock Account: (1* MAP of article C) EUR
        • Debit: Offsetting P&L Account:  (1* MAP of article C) EUR

        Same logic is applied by Std. SAP when an inbound idoc from the POS system is processed for a retail sale of 1PC of sales set A, having an additional line of the 251 movement.

        On our system, the creation of a sales set does not change either the Moving Average of the set or of the components as all movements are valuated at the current stock price of each material. Nevertheless, movement 317 creates a P&L effect in case the moving average price of the sales set is different from the sum of the cost values  of the components

        What you describe happens when a structured article (Display Set) is split to it’s components via movement 319.

        Can you please validate/invalidate my thoughts/findings from the system?

        Thank you very much,

        Nikos