Inventory value in SAP
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- Posts: 30
- Joined: 10 Feb 2021, 07:37
Inventory value in SAP
I find, Material master and FI of SAP are showing different value of inventory. Which value is authentic? As an auditor which value should i consider as real value of inventory? Can the value of MM( material master) be wrong?
Re: Inventory value in SAP
what's the reason for this discrepancy?
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- Posts: 30
- Joined: 10 Feb 2021, 07:37
Re: Inventory value in SAP
I have asked my audit client. They haven’t given explanation yet. I will inform you later. Thanks a lot for your response.
Re: Inventory value in SAP
so what was the reason?
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- Posts: 30
- Joined: 10 Feb 2021, 07:37
Re: Inventory value in SAP
Yet i haven’t got any explanation from client. But my thinking is that, they have given manual entry in FI to manipulate the inventory
Re: Inventory value in SAP
I assume the system is set up using the moving average price.
The material master will always contain the last moving average price. This amount can be updated after each inventory transaction, most frequently after a goods receipt. Other reasons why the moving average price can be updated is durign invoice approval where a price difference is detected. The individual inventory transactions such as waste or goods issue, will be posted using the moving average price of that moment.
Given this information, I can't really asses what your question is.
The material master will always contain the last moving average price. This amount can be updated after each inventory transaction, most frequently after a goods receipt. Other reasons why the moving average price can be updated is durign invoice approval where a price difference is detected. The individual inventory transactions such as waste or goods issue, will be posted using the moving average price of that moment.
Given this information, I can't really asses what your question is.