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2021-01-27

Incident: 424725 / 2020 - Moving Average is not updating


ID 002028376600004247252020
Customer 1522516 - Industrial Clothings Private Limite
Installation 0020889567 - ERP T
System PRD - MDERPAPP1
Component Actual Costing/Material Ledger (CO-PC-ACT)
Status Confirmed Automatically
Priority High

Communication
09.12.2020 06:27:53 CET - Info for Customer: SAP

Session ID:136077826268102145

Hassan Ali - 09.12.2020 13:21:43


Product Area selected: SAP S/4HANA Finance
Product Function selected: Finance Financial Planning and Analysis Controlling Product Cost Planning
Component selected (Product Function Selection): CO-PC-PCP

--- Steps to Reproduce ---


NOTE TO SAP SUPPORT: I give my approval for SAP Support to reproduce the described issue using any
steps provided by me in the description below, while connected remotely to my non-production environments.
If it is necessary to do this in a production environment, SAP Support will contact me specifically before
proceeding.

--- Description ---


After S4 HANA Upgrade Material Master is not updating with Standard Cost Estimate.

Hassan Ali - 09.12.2020 13:22:10


Hi

Betty@SAP - 09.12.2020 13:22:13


Hi

Betty@SAP - 09.12.2020 13:22:34


Did you have created an incident for this issue?

Hassan Ali - 09.12.2020 13:22:41


Not yet.

Betty@SAP - 09.12.2020 13:22:45


Ok

Hassan Ali - 09.12.2020 13:22:47


Need to discuss first.

Betty@SAP - 09.12.2020 13:23:29


© 2021 SAP SE or an SAP affiliate company. All rights reserved 1 of 17
2021-01-27
From your problem description, it looks like no standard price updated in MM03 after upgrade to S/4

Hassan Ali - 09.12.2020 13:23:37


We upgraded to S4 HANA 1909 in June 21 2020. Now after that Upgrade even after Material ledger Actual
costing Moving average does not change and it is same for last 6 months.

Hassan Ali - 09.12.2020 13:24:08


we have very serious concerns regarding this issue in our system.

Hassan Ali - 09.12.2020 13:24:35


In our Valuation strategy we have given Moving Average first priority.

Betty@SAP - 09.12.2020 13:24:39


OK, it's moving average price, not standard price

Betty@SAP - 09.12.2020 13:24:48


yes

Hassan Ali - 09.12.2020 13:25:08


Yeah actually moving average is not updating that's why Standard is same for Cost estimate for last Six
months.

Hassan Ali - 09.12.2020 13:25:52


Even in MM03 is cannot see Changes in Standard price as for previous period logs are there but after S4
HANA Upgrade there is no Changes log in system.

Betty@SAP - 09.12.2020 13:26:40


Dear, can I create an incident for you, so I can check the issue in your system?

Hassan Ali - 09.12.2020 13:27:05


Yes create it but high priority has system is being affected and it's yearly closing now.

Betty@SAP - 09.12.2020 13:27:15


yes, of course

Hassan Ali - 09.12.2020 13:27:38


Should i open connection for you ?

Hassan Ali - 09.12.2020 13:27:47


After you create incident.

09.12.2020 06:28:10 CET - Problem Description: Hassan Ali (S0022809007)

Product Area selected: SAP S/4HANA Finance


Product Function selected: Finance Financial Planning and Analysis Controlling Product Cost Planning
Component selected (Product Function Selection): CO-PC-PCP

--- Steps to Reproduce ---


NOTE TO SAP SUPPORT: I give my approval for SAP Support to reproduce the described issue using any steps
provided by me in the description below, while connected remotely to my non-production environments. If it is

© 2021 SAP SE or an SAP affiliate company. All rights reserved 2 of 17


2021-01-27
necessary to do this in a production environment, SAP Support will contact me specifically before proceeding.

--- Description ---


After S4 HANA Upgrade Material Master is not updating with Standard Cost Estimate.

09.12.2020 06:32:29 CET - Info for Customer: SAP

Session ID:136077826268102145

Hassan Ali - 09.12.2020 13:21:43


Product Area selected: SAP S/4HANA Finance
Product Function selected: Finance Financial Planning and Analysis Controlling Product Cost Planning
Component selected (Product Function Selection): CO-PC-PCP

--- Steps to Reproduce ---


NOTE TO SAP SUPPORT: I give my approval for SAP Support to reproduce the described issue using any
steps provided by me in the description below, while connected remotely to my non-production environments.
If it is necessary to do this in a production environment, SAP Support will contact me specifically before
proceeding.

--- Description ---


After S4 HANA Upgrade Material Master is not updating with Standard Cost Estimate.

Hassan Ali - 09.12.2020 13:22:10


Hi

Betty@SAP - 09.12.2020 13:22:13


Hi

Betty@SAP - 09.12.2020 13:22:34


Did you have created an incident for this issue?

Hassan Ali - 09.12.2020 13:22:41


Not yet.

Betty@SAP - 09.12.2020 13:22:45


Ok

Hassan Ali - 09.12.2020 13:22:47


Need to discuss first.

Betty@SAP - 09.12.2020 13:23:29


From your problem description, it looks like no standard price updated in MM03 after upgrade to S/4

Hassan Ali - 09.12.2020 13:23:37


We upgraded to S4 HANA 1909 in June 21 2020. Now after that Upgrade even after Material ledger Actual
costing Moving average does not change and it is same for last 6 months.

Hassan Ali - 09.12.2020 13:24:08


we have very serious concerns regarding this issue in our system.

Hassan Ali - 09.12.2020 13:24:35


© 2021 SAP SE or an SAP affiliate company. All rights reserved 3 of 17
2021-01-27
In our Valuation strategy we have given Moving Average first priority.

Betty@SAP - 09.12.2020 13:24:39


OK, it's moving average price, not standard price

Betty@SAP - 09.12.2020 13:24:48


yes

Hassan Ali - 09.12.2020 13:25:08


Yeah actually moving average is not updating that's why Standard is same for Cost estimate for last Six
months.

Hassan Ali - 09.12.2020 13:25:52


Even in MM03 is cannot see Changes in Standard price as for previous period logs are there but after S4
HANA Upgrade there is no Changes log in system.

Betty@SAP - 09.12.2020 13:26:40


Dear, can I create an incident for you, so I can check the issue in your system?

Hassan Ali - 09.12.2020 13:27:05


Yes create it but high priority has system is being affected and it's yearly closing now.

Betty@SAP - 09.12.2020 13:27:15


yes, of course

Hassan Ali - 09.12.2020 13:27:38


Should i open connection for you ?

Hassan Ali - 09.12.2020 13:27:47


After you create incident.

Betty@SAP - 09.12.2020 13:29:25


Chat Incident 424725 / 2020 / Moving Average is not updating
https://support.wdf.sap.corp/sap/support/message/002028376600004247252020

Betty@SAP - 09.12.2020 13:29:30


This is the incident link

Hassan Ali - 09.12.2020 13:30:12


Ok Thanks

Betty@SAP - 09.12.2020 13:30:33


PRD system is opened now.

Hassan Ali - 09.12.2020 13:31:18


Yes please check. Thanks

09.12.2020 10:03:56 CET - Call to Customer: SAP

Contact Person: Mr. Hassan Ali


Call time: 2020.12.09 / 17:03:56 / UTC+8

© 2021 SAP SE or an SAP affiliate company. All rights reserved 4 of 17


2021-01-27
Contact Number: +92-3000655172
Customer reached Y/N: N
Call back Y/N: N
Subject of Call: No one reached.

09.12.2020 10:04:54 CET - Reply: SAP

Dear customer,

Could you please also provide a material example in MM03 so I can go to further investigation?

Best regards,

Betty

SAP Support

SAP hotline for urgent issues-> details in note 560499


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09.12.2020 10:27:06 CET - Info for SAP: Hassan Ali (S0022809007)

Please note the Material Along with Plant

3000001454

Plant: 2020

10.12.2020 03:19:48 CET - Reply: SAP

Dear customer,
The root cause of moving average price in last period cannot be updated as standard price in current is marking step in
ckmlcp have not been executed.

© 2021 SAP SE or an SAP affiliate company. All rights reserved 5 of 17


2021-01-27
Please check example you provide.
Period 11/2020 -> Closing entries completed -> PUP in ckm3 1.12
mm03 1.12
S price mm03 1.41
ckm3 1.41
Period 12/2020 -> Relevant for settlement -> PUP in ckm3 1.41
mm03 1.41
S price mm03 1.41
ckm3 1.41
For materials 3S, the price differences are recorded in the Material Ledger tables and when running the actual price determination
at period-end closing (CKMLCP), the price differences are rolled-up to finished materials and included in the actual price. During
the period, for the materials relevant for actual costing (3S), the moving average price field is updated like a STATISTICAL moving
average price (MAP). So each goods movement can potentially update this statistical moving average price temporarily. But this is
NOT the true moving average price, because ML price determination overwrites this PUP with the actual price at the end of the
period with transaction CKMLCP.
Only this ACTUAL price is the TRUE 'Periodic Unit Price'. For this reason this actual price is only updated in the period it was
calculated for. This means, if you are in period n, you are executing transaction CKMLCP in period n-1, the actual price (PUP)
calculated is updated for period n-1.
According to above logic described in KBA2427173 - How the periodic PUP is updated in Actual Costing. Only moving average
price in period 11/2020 is updated as 1.12 is standard system behavior because marking step in ckmlcp have not been executed.

I will use a simple example to describe how you can update the periodic unit price. For the example, the
current period is 09/2020. You carry out the period-end closing for period 08 and determine the new periodic
unit price for this period, which is updated in period 08. The price control is converted to V for this period. You
can carry out the marking step within the period-end closing for period 08 (Transaction CKMLCP). As a result
of this marking, the periodic unit price determined in period 08 is updated as future price in the current period
(09/2020). You can then release this future price at the beginning of period 10/2020 (Transactions CKME,
MR21). Thus, you can release a determined periodic unit price at the earliest 2 periods after the closed
period.

Best regards,
Betty
SAP Support

10.12.2020 13:58:43 CET - Info for SAP: Hassan Ali (S0022809007)

Issue over here is not Marking price with CKMLCP. The problem is something else. In our Valuation variant
we have strategy sequence as Give priority to Moving average. On each month when ML is closed the Period
closed Price control move to V. That Price can be used in Monthly Cost estimate to reflect true Standard
prices. Now the thing is after S4 HANA that is not Happening.

Apparently there has been a change in system’s functionality post S4 Hana implementation whereby the
system is not updating the standard price of materials based on moving average prices.

Below are the materials for Plant 2020 in our system. Kindly have a look at that.

You can see clearly that After July Prices has not been changed.

Ethanol Methanol XVT LA


Month Moving Average Standard Moving Average Standard Moving Average Standard
Jan 1.02 0.96 0.51 0.51 1.383 1.397
Feb 1.08 0.99 0.51 0.51 1.380 1.397
Mar 1.10 1.02 0.50 0.51 1.378 1.383

© 2021 SAP SE or an SAP affiliate company. All rights reserved 6 of 17


2021-01-27
Apr 1.10 1.08 0.49 0.51 1.378 1.380
May 1.10 1.10 0.49 0.50 1.378 1.378
Jun 1.41 1.10 0.44 0.49 1.360 1.378
Jul 1.29 1.41 0.43 0.44 1.301 1.360
Aug 1.26 1.41 0.42 0.44 1.286 1.360
Sep 1.11 1.41 0.42 0.44 1.291 1.360
Oct 1.21 1.41 0.42 0.44 1.318 1.360
Nov 1.12 1.41 0.45 0.44 1.479 1.360

10.12.2020 13:58:44 CET - Business Impact: Hassan Ali (S0022809007)

It is impacting our PRD as business user are doing budgeting and forecasting based on those Standard
Prices.

11.12.2020 08:46:00 CET - Info for Customer: SAP

Dear customer,

Please be informed that I have forwarded the incident to development team for further checking.
One of the experts in that area will update you later.

If you need to engage with SAP Support immediately, please contact the SAP Customer Interaction Center.
SAP Note560499 provide guidance on how to contact the SAP Customer Interaction Center

Best regards,
Betty
SAP Support

11.12.2020 10:39:50 CET - Call from Customer: SAP

Recieved email from Mr. Selvaratnam at Support India Mailbox requesting for an update with the below
business impact.

• Please brief us on the exact impact on your production system?


Standard price is not changing after S4 HANA migration. (Email attached with more updates from our
consultants)

• When is the production GO live date? In case, If it is in DEMO, Development, Quality or test system?
Live system
• please Specify if there is any workaround?
No workaround

• Number of consultants involved and users affected? please specify if any are external?
Consultant – 6, Users - 850
• Specify financial impact, if any, due to delay (Specify currency also)
Yes, this leads to huge financial impact due to standard price is being used in the pricing reports.

• Kindly let us know if the system connections are open?


Yes, connection opened for SAP.

11.12.2020 13:26:23 CET - Info for Customer: SAP

Hello,

I'd like to inform you I've taken the message and I'm starting its processing. I'll inform you soon.

© 2021 SAP SE or an SAP affiliate company. All rights reserved 7 of 17


2021-01-27

Best Regards,
Stanislav
Application Innovation Services - AIS, Customer Solution Support and Innovation /
SAP Development Support

11.12.2020 15:16:14 CET - Reply: SAP

Hello,
First of all thank you for your provided example and access into the system I used it for the analysis. There isn't any error in the
system with the material costing. Even if the material released price is the same for the last moths it's correct.
The product costing has set the valuation strategy '3 Moving average price' it means in the point of time when the material costing
is called (e.g. CK40N) the CURRENT moving average price is taken for the costing. Later when the price is release it's set as the
standard cost for the current period in the material management. The current moving avg.price is updated during each material
movement (inventory management) in the material ledger.
See attached screenshot "Moving Average Price":
In the last costing run (MM03 - Costing 2 tab. - Current button) you can see last costing was called at 30.11. 17:23.
Check the price in that time in the material ledger (tx CKM3, View 'PH' Price History) - the price was exactly 1.41 USD and this
price was the result of the product costing run. This price was later released as standard on 1.12.2020
(Later the material ledger [ML] closed the period and set mov.avg.price to 1.12 USD - this value is visible in the MBEWH table: it
was after the costing run).
Right now the moving avg.price is 1.07 USD and when now the product costing is called the result is expecting 1.07 USD (tx
CK11N w/o saving).
I assume similar situation was in the previous periods (not specified exactly when the costing runs were called):
31.10. was mov.avg.price 1.41 USD so standard price for 11/2020 was set to 1.41 USD
30.9. was mov.avg.price 1.41 USD ... dtto ...
A Goods Issue and Stock Movement didn't change the price in that period (already created at 4.11.20 17:18:56 : value / qty =
49716.96 / 35260.245 = 1.1400... USD,
I believe you understand how the moving avg.price is updated in the Material management (taken from ML) and how the standard
price for the given period is obtained (current moving avg.price is put) and because the current moving average price was in that
point of time exactly same (1.41 USD) when the costing runs were called the price is same for last months.
The system works as is designed because there isn't any program error I'd kindly ask you to close this message.
Thank you for your co-operation.
Stanislav
Application Innovation Services - AIS, Customer Solution Support and Innovation /
SAP Development Support

12.12.2020 08:02:36 CET - Info for SAP: Hassan Ali (S0022809007)

Hi Stanislav

First of All thankyou for your analysis.

Now coming to the issue, please note that the material you have selected i myself along with team was doing
testing on it and moving average was changed manually to check whether CK40N is performing right or not.

Now if you see any previous month you clearly see that in July 2020 onwards only 1.41 Cost is there in
Material cost estimate. Now if you go to CKM3N you can see every month a new PUP is calculated, if that is
happening why that cost is not going in Costing 2 Tab MAP section. See the issue over here is this our
Valuation variant hold strategy like this to pick Moving average price first and then go to Standard.

Please check any previous month in CK13N and CKM3N, you get what i am trying to demonstrate here that
after CKMLCP is executed successfully the MAP in Costing 2 tab does not get updated and same price is
there after S4 HANA upgrade.

You can also check these two material as well for more dee analysis.

Plant 2020

© 2021 SAP SE or an SAP affiliate company. All rights reserved 8 of 17


2021-01-27

3200000413
3100003842

Same issue with all the material though ML calculates the PUP correctly but that PUP does not reflect in
Costing 2 Tab MAP.

Please check this MAP update issue in Costing 2 tab.

14.12.2020 07:20:54 CET - Info for SAP: Hassan Ali (S0022809007)

Kindly update on the status of this incident as this is very crucial for our business.

14.12.2020 08:42:24 CET - Info for Customer: SAP

Hello,
I'm going to look at it. I'll inform you soon.
Stanislav
Application Innovation Services - AIS, Customer Solution Support and Innovation /
SAP Development Support

14.12.2020 08:58:06 CET - Reply: SAP

Hello,
The R/3 support connection is closed for the affected PRD system. Open it, please.
Stanislav
Application Innovation Services - AIS, Customer Solution Support and Innovation /
SAP Development Support

14.12.2020 11:26:22 CET - Info for SAP: Owais Khawaja (S0014369991)

Hi,

Connection is open. Credentials are maintained in secure area. Please check.

Regards,

14.12.2020 13:40:39 CET - Reply: SAP

Hello,

Thank you for the connection opening.

The material 3000001454 got moving average price 1,41 USD in the beginning July and during the July there
wasn’t any document for its change. There were several invoices documents for exactly this price (e.g. 17.7.
Invoice 1000372868/20: 55,357.66 USD @ 39,260.751 kg => 1.4100… USD @ 1 kg).
There isn’t any material movement document (like Good Receipt) which would have changed this price.

In general the price change in the Material ledger (tx CKMLCP) doesn’t change the material standard price in
the material master. So you’d call the actual costing to update moving average price in the material ledger
and afterwards the costing run (tx CK40N) to get the actual moving avg.price as the standard price for a next
period.

As to the material 3200000413 the costing run was called at 30.11. 17:25:46 local time UTC+3 (tx MM03,
cost.2, current but., history tab) and the mov.avg.price was 280.10 USD in that time (see CKM3, timestamp
between 20,201,125,125,130.9949690 and 20,201,130,152,742.3973620 i.e. 2020/11/25 12:51:30 UTC –
2020/11/30 15:27:42 UTC). A following change of the moving avg.price was done at 2020/11/30 15:27:42

© 2021 SAP SE or an SAP affiliate company. All rights reserved 9 of 17


2021-01-27

UTC => /utc+3/ 18:27:42 it’s about one hour later after the costing run (17:25:46).

As to the material 3100003842 the costing run was called at 30.11. 17:23:32 loc.time (PK) and the moving
avg.price was 8.41 in that time (tx CKM3) which was updated to 10.08 USD 3 days later 3.12.2020.

From this point of view everything is consistent.

Stanislav
Application Innovation Services - AIS, Customer Solution Support and Innovation /
SAP Development Support

15.12.2020 05:37:23 CET - Info for SAP: Hassan Ali (S0022809007)

Dear Stanislav

Can we have a session to discuss the issue in detail ?

15.12.2020 09:20:20 CET - Reply: SAP

Hello,
Yes, provide a link to the session or a phone number (I can see this +92-3000655172).
Stanislav
Application Innovation Services - AIS, Customer Solution Support and Innovation /
SAP Development Support

15.12.2020 09:34:36 CET - Info for SAP: Hassan Ali (S0022809007)

Hi

Please find zoom link for meeting at 4:00 PM at PK time.

https://midassafety.zoom.us/j/2689848385

And yes i am available at this number for Call. For Whatsapp my Number +92-3213327545.

15.12.2020 14:17:00 CET - Call to Customer: SAP

Contact Person: Mr. Hassan Ali


Call time: 2020.12.15 / 12:00:00 / CET
Contact Number: https://midassafety.zoom.us/j/2689848385
Customer reached Y/N: Y
Call back Y/N: N
Subject of Call:
Discussion about this. The customer understand that the standard price is getting right from the current moving avg.price monthly.
It§s according the cost strategy settings.
The problem is that the system set moving avg.price to fix value every month during the ML period close / settlement process. Not
clear why the system sets the fix price 8.41 USD in ML period closing process each month. ML : PC-ACT

15.12.2020 17:20:27 CET - Info for SAP: Hassan Ali (S0022809007)

Hi

Can you please update on the status of this. Whether it has been assigned to Actual Costing personnel ?

17.12.2020 08:08:30 CET - Info for SAP: Hassan Ali (S0022809007)

Kindly update on the status of this issue.

© 2021 SAP SE or an SAP affiliate company. All rights reserved 10 of 17


2021-01-27

This is very serious concern for our company. Budgeting has been stuck due to this issue.

Kindly Update.

17.12.2020 15:47:55 CET - Call from Customer: SAP

Recieved email from Mr. Selvarathnam at Support India Mailbox requesting to speed up. Informed on actions
taken.

• Please brief us on the exact impact on your production system?


Standard price is not changing after S4 HANA migration. (Email attached with more updates from our
consultants)

• When is the production GO live date? In case, If it is in DEMO, Development, Quality or test system?
Live system
• please Specify if there is any workaround?
No workaround

• Number of consultants involved and users affected? please specify if any are external?
Consultant – 6, Users - 850
• Specify financial impact, if any, due to delay (Specify currency also)
Yes, this leads to huge financial impact due to standard price is being used in the pricing reports.

• Kindly let us know if the system connections are open?


Yes, connection opened for SAP.

17.12.2020 16:52:58 CET - Call from Customer: SAP

Received email from Mr. Selvarathnam at Support India Mailbox requesting to speed up.

Business impact:

• Issue in live system.


• After S4 HANA Upgrade Material Master is not updating with Standard Cost Estimate.
Standard price is not changing after S4 HANA migration.
• No workaround. Show stopper. 6 consultants involved.
• 850 users affected.
Yes, this leads to huge financial impact due to standard price is being used in the pricing reports.
• Yes, connection opened for SAP.

Requested assistance.

Contact: Mr. Hassan Ali, +92-3000655172

18.12.2020 02:54:25 CET - Reply: SAP

Hello,
I think there is a misunderstanding going on.
In S/4 the moving average price/ periodic unit price is only updated for a period after the settlement step in
CKMLCP is run, anything before in the MAP price field could be the value that was there when the period
was moved, etc.
So when you run CK11N/CK40N on 30.11.2020, the moving average price in 11/2020 contains still either the
old s-price (as in one of your examples) or another value that is not related to any moving average price.
You could run CKMLCP settlement step before running cost estimates (you might run into locking problems)
to get a good estimation of the actual price at the end of the period.
© 2021 SAP SE or an SAP affiliate company. All rights reserved 11 of 17
2021-01-27
You could also mark the actual price of 12/2020 as future price and then have your cost estimate for 2/2021
(that you create at the end of 1/2021) pick up the marked price for the cost estimate.
I hope I could answer your question and give you some workarounds.
Best regards
Matthias

18.12.2020 05:28:54 CET - Info for SAP: Hassan Ali (S0022809007)

Hi,

That is not a issue at all. I have explained in great detail to previous developer regarding the issue and he
agree with me that there is some issue.

Please go through whole communication, I not about standard not updating it's about whenever ML is closed
it changes the price to same which was there in June at the time of S4 HANA migration. Timing is not an
issue. Please look at the system again.

18.12.2020 20:52:28 CET - Reply: SAP

Hello,
lets use mat 3100003842 in 2020 as an example.
The value in the periodic unit price right now is 8.41 and it will stay this way until the settlement step in
CKMLCP is run for 12/2020, probably in the 1st week of January.
Now you create another cost estimate on 30.12.2020, it will read the periodic unit price of 8.41 of course.
With the 1st posting in 1/2021, the ML period data is created and the periodic unit price of 8.41 is copied to
1/2021.
Now you run CKMLCP on the 3rd of January and the periodic unit price in 12/2020 is updated to let's say
8.85. But this will not impact the PUP in 1/2021, nor will the closing posting, the PUP in 1/2021 is still 8.41
and if you create another cost estimate at the end of 1/2021 it will again read 8.41.
Before S/4 the PUP was updated throughout the period by postings for 3/S materials, In S/4 the PUP gets
only updated once when you run CKMLCP settlement.
As I mentioned earlier, you could create a costing run (just to test or in a test system) for 12/2020 now
already and run settlement, this would update the PUP now from 8.41 to 8.85 and when you run CK11N the
cost estimate would also use the price of 8.85.
I hope I could explain the process now.
Best regards
Matthias

20.12.2020 09:28:28 CET - Info for SAP: Hassan Ali (S0022809007)

Hi.

Thanks for your explanation.

This would be very different from the things happening in ECC. Previously if you see same material before
S/4 HANA the same material was getting updated the same way system wants. Now that Settlement step is
run before costing run, that would not be beneficial for our business need.

Can we have the same functionality that was before S4 HANA, because this is impacting our business need.
We only need that PUP should get updated in Moving average that is available in Costing 2 Tab and system
will automatically pick this price according to valuation variant. This will be done after one month of the
update PUP price. Currently same Moving average is fixed every month. Which in my point of view is not
correct it should be updated through CKMLCP.

© 2021 SAP SE or an SAP affiliate company. All rights reserved 12 of 17


2021-01-27

Please try to understand our business need and give us the same model which was there before S4 HANA.

If you need any further clarification we can have a ZOOM Session to explain it further.

21.12.2020 21:59:06 CET - Reply: SAP

Dear customer,
it is not possible to go back to the old "MAP" logic where the periodic unit price of materials with settlement
control "3" (i.e. materials which participate in actual costing) is updated by every material transaction. This
logic became obsolete with SAP note 2498647 (see attachment), which is not even specific to S/4 HANA but
is also valid for ECC systems. With the corrections from this note, the periodic unit price of materials with
settlement control "3" is only updated by running transaction CKMLCP, not by any other transactions. The
idea behind this is that for materials with settlement control "3", there is no such thing as a "moving average
price" which is determined after every material transaction; instead, materials with settlement control "3" have
a periodic unit price which can only be calculated at the end of the period when all price-relevant material
transactions have been posted and actual costing is performed.
If you want to determine the standard price of a material based on the most recent "actual" material price, you
need to use the periodic unit price of the previous period after CKMLCP has been executed for this period. I
am not an expert for product cost planning - perhaps you can use the strategy "Valuation price with user exit"
in your valuation variant 001 and create a user exit implementation which reads the periodic unit price of the
previous period from table CKMLCR?
Best regards,
Felicitas Lindner
Application Innovation Services / Actual Costing and Material Ledger
SAP Development Support

29.12.2020 05:07:04 CET - Info for SAP: Hassan Ali (S0022809007)

I don't understand this simple thing that one thing that was working according to Midas Need and that was
even correct, why would SAP change it.

You are missing a simple point over here. Each month Moving average is converted to same Standard price
again by having a Price Difference in CKMLCP.

Previous developer agreed with me that there is an issue in this thing.

29.12.2020 05:56:06 CET - Reply: SAP

Dear customer,
what do you mean by "each month Moving average is converted to same Standard price again by having a
Price Difference in CKMLCP"? Transaction CKMLCP uses the actual goods receipt values of a material to
calculate the periodic unit price. In general, these actual goods receipt values are independent of the
standard price of the material. For example, if a material is procured externally via purchasing, then the
purchase order price is the actual goods receipt value which is updated in actual costing. If a material is
produced in-house, then the goods receipts from in-house production are first valuated according to the
material standard price, but during order settlement and actual costing via CKMLCP the actual costs of the
materials and activity types consumed in the production process are rolled up to the finished product so that
the actual goods receipt value becomes equal to the actual production costs. These costs are again
independent of the standard price of the finished product.
I therefore do not see what you mean by your "simple point over here".
Best regards,
Felicitas Lindner
Application Innovation Services / Actual Costing and Material Ledger
SAP Development Support
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2021-01-27

Contacts

Secondary
Role Name Time Zone Primary Phone E-Mail
Phone

Hassan Ali hassan.ali@midas


Reporter CET +92-3000655172 +94-
(S0022809007) safety.com

Attachments

File Name Description File Type File Size Created By Created On

MovingAVGPrice.p Moving Average 11.12.2020


PNG 286.2 KB SAP
ng Price 15:16:05 CET

KBA/SAP Notes

KBA/SAP Note Number Note Text

2498647 MLNEW: Unexpected change to the actual price

2427173 How the periodic PUP is updated in Actual Costing

Action Log

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