What is moving average price procedure in SAP MM-IV - Invoice Verification?

SAP Term: moving average price procedure

• Component: MM-IV

• Component Name: Invoice Verification

• Description: A procedure for material valuation. In the moving average price procedure, all quantity movements are valuated at delivered prices. Price variances at the time of goods or invoice receipt are posted to the stock account. As a result, the moving average price is continually adjusted to reflect changes in delivered prices over time.

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• Key Concepts: 
  Moving Average Price Procedure (MAPP) is a feature of SAP's Materials Management (MM) Invoice Verification (IV) component. It is used to calculate the average price of a material over a certain period of time. This average price is then used to determine the value of goods received and invoiced. 
  
  How to use it: 
  MAPP is used to calculate the average price of a material over a certain period of time. This average price is then used to determine the value of goods received and invoiced. The MAPP procedure can be set up in the SAP system by entering the material number, the period for which the average price should be calculated, and the number of days for which the average price should be calculated. 
  
  Tips & Tricks: 
  When setting up MAPP, it is important to ensure that the period and number of days are correctly entered in order to get an accurate average price. Additionally, it is important to note that MAPP only works with materials that have been purchased from vendors. 
  
  Related Information: 
  MAPP is closely related to other features in SAP's Materials Management (MM) Invoice Verification (IV) component, such as Price Determination and Price Variance Analysis. Additionally, MAPP can be used in conjunction with other features such as Vendor Evaluation and Vendor Performance Analysis.