# SAP Purchase Price Variance (PPV) and Moving Average Price Calculator

> Source: https://netray.co/tools/sap-material-price-variance-ppv-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

See the price difference posted at goods receipt for a standard price material and the new moving average price for a MAP material.

## Category

sap

## Erp

SAP S/4HANA

## Audience

- SAP MM/FI consultant
- Cost accountant
- Buyer

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Goods receipt quantity

**Key:** gr_qty

**Type:** number

**Default:** 1000

**Min:** 0

**Step:** 10

**Unit:** pcs

#### PO price per unit

**Key:** po_price

**Type:** number

**Default:** 12.8

**Min:** 0

**Step:** 0.05

**Unit:** currency

#### Standard price per unit

**Key:** std_price

**Type:** number

**Default:** 12

**Min:** 0

**Step:** 0.05

**Unit:** currency

#### Existing stock quantity (MAP material)

**Key:** stock_qty

**Type:** number

**Default:** 400

**Min:** 0

**Step:** 10

**Unit:** pcs

#### Current moving average price

**Key:** map_old

**Type:** number

**Default:** 12.2

**Min:** 0

**Step:** 0.05

**Unit:** currency

**Outputs:**

#### Price difference at GR (standard price material)

**Key:** ppv_std

**Expr:** gr_qty * (po_price - std_price)

**Format:** currency

**Primary:** true

**Description:** Positive is unfavorable. Posted to the price difference account.

#### PPV as percent of standard

**Key:** ppv_pct

**Expr:** (po_price - std_price) / std_price * 100

**Format:** percent

#### GR/IR clearing value (PO price)

**Key:** gr_ir

**Expr:** gr_qty * po_price

**Format:** currency

#### Inventory credit value at standard

**Key:** stock_std

**Expr:** gr_qty * std_price

**Format:** currency

#### New moving average price after GR

**Key:** map_new

**Expr:** (stock_qty * map_old + gr_qty * po_price) / (stock_qty + gr_qty)

**Format:** decimal

**Primary:** true

#### Change in MAP

**Key:** map_move_pct

**Expr:** (map_new - map_old) / map_old * 100

**Format:** percent

**Chart:**

#### Price difference at GR vs PO price

**Type:** line

**X:** po_price

**From:** 8

**To:** 16

**Steps:** 40

**Series:**

- ppv_std

**Disclaimer:** Assumes full stock coverage for a MAP material and a PO price with price unit 1. Negative stock, price unit other than 1, and invoice price differences are not modelled.

## Content

**Intro:** SAP values goods receipts differently depending on the price control indicator of the material. For standard price (S) the difference between PO price and standard goes to a price difference account at goods receipt. For moving average price (V) it changes the inventory price. This calculator shows both outcomes so you can explain a variance or predict the price change before a large receipt.

**Sections:**

#### How to use it

**Body:** Enter the received quantity, the PO net price per unit and the standard price. The standard-price result is the posting that goes to the price difference account (PRD). For a moving average material, also enter existing stock and current MAP to compute the new MAP. The chart sweeps the PO price so you can see how sensitive the variance is when supplier prices change. Use the values from the PO history and the material valuation view.

**Bullets:**

- Use net PO price per base unit after price unit conversion
- Ignore invoice receipts, as invoice-level differences are separate
- For MAP, use the stock in the valuation area, not the plant total

#### The formulas

**Body:** For standard price materials: variance = quantity * (PO price - standard price). The goods receipt posts inventory at standard, GR/IR at PO price, and the difference to the price difference account. For moving average: new MAP = (stock quantity * current MAP + received quantity * PO price) / (stock quantity + received quantity). The total stock value then equals the sum of the previous value and the receipt value, which keeps the average consistent.

#### Reading the result

**Body:** A positive variance on a standard price material is unfavorable, as the supplier charged more than your standard. Repeated unfavorable variance on the same item usually means the standard price is out of date and should be updated through a price change or the next costing run. A fast-moving MAP could jump when a small stock level meets a large receipt, so consider purchasing in smaller steps or using standard price for such items.

#### Common mistakes

**Body:** Treating PPV as the same thing as invoice price difference. Using the gross price with taxes. Forgetting that MAP changes affect consumption already issued. Not realising that a price control change on a material with stock needs a revaluation plan, since the system will only allow it under strict conditions.

**Cta:** If purchase price variance review is a monthly manual task, Netray can set up a read-only question layer over SAP purchasing and inventory data. Contact us to discuss what to monitor.

**Faq:**

#### Where does the variance post in SAP?

**Answer:** For a standard price material, the difference between PO price and standard price posts to the price difference account through account determination at goods receipt, usually transaction key PRD. For moving average price materials it adjusts the stock value instead.

#### Is a positive variance bad?

**Answer:** Positive means the PO price was higher than standard, an unfavorable result for purchasing. It is not necessarily bad if the standard is outdated, so check the cause before judging the buyer.

#### Why does the MAP change after a small receipt?

**Answer:** When existing stock is small relative to the receipt, the new price is dominated by the PO price. Even a small quantity can move the average sharply if stock is near zero.

#### Can I use this for invoice differences?

**Answer:** Not directly. Invoice verification can create a separate difference when the vendor invoice price differs from the PO price. Treat that as a second step on top of the goods receipt figures.

## Search terms

sap purchase price variance calculator, sap ppv calculation, sap price difference account PRD, sap moving average price calculation, standard price vs po price sap, sap gr/ir price variance, moving average price formula, price variance mm fi

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