The price that moves itself

The moving average rewrites itself with every receipt and keeps no diary. May moved four prices: three by receipts, each half of a variance story, and one manual revaluation that is only trustworthy because its approval is attached.

RuleKeep every valuation price change as a dated row with its driver, because the moving average rewrites itself and standard reporting keeps no diary.

Neverread this month’s stock value with last month’s price in mind. The average moved with every receipt, and one manual change can move it again without ceremony.

The moving average is a price that rewrites itself. The diary of its moves is the difference between analysis and archaeology.

◆ May price movementsfour materials, drivers named.

Material	Old average	New average	Change
M-1120, receipt priced above average	48.20	49.10	0.90
M-3315, receipt priced below	12.65	12.40	-0.25
M-8807, freight added on receipt	230.00	234.50	4.50
M-5502, manual revaluation, approved	75.00	78.00	3.00
Price changes, May			4 rows

Receipt-driven moves are the mechanism working as designed, and each is half of a variance story. The manual row is the one that needs its approval attached, which is why the diary keeps the driver column at all. Sample values are illustrative, never client data.

◆ The reprice with no memoryand the timing distortion.

A manual revaluation changes the price now and leaves the history to specialist transactions nobody opens. And the average distorts on timing by design: an invoice arriving after the stock has partly sold reprices only what remains, so fast-turning materials absorb price news into a shrinking base.

◆ The owned answerthe diary as a dimension.

Landed price rows make valuation history a versioned dimension: any stock value recomputes for any date, the write-down page prices from the same rows, and a manual change without an approval reference fails the nightly check.

Use case

Problem

Stock value moves and nobody can say which prices moved it, manual revaluations pass without ceremony, and last year’s valuation questions require archaeology.

What we build

Every price change landed as a dated row with driver and approval: receipt-driven moves tied to variances, manual moves gated, history queryable.

What you get

A valuation trail that explains itself: value bridges by price and volume, manual changes with names attached, and no specialist-transaction archaeology.

Can you bridge last month’s stock value to this month’s?

We build the price diary that splits price from volume.

Talk to us

Terms on this page

SAP: The vendor. Systems, Applications, and Products in data processing.
HANA: SAP’s in-memory database, the platform S/4 runs on.
MM: Materials Management, the purchasing and inventory module.
moving average: The valuation price that updates with each receipt.
MR21: The delivered manual revaluation transaction; instant, quiet.
MBEW: The valuation table holding the current price only.
revaluation: A deliberate price change outside the receipt mechanism.