What is the Moving Average Price (MAP) used for in GFEBS?

The Moving Average Price (MAP) in GFEBS (General Fund Enterprise Business System) is primarily used for price control. This method averages the prices of materials over a specific period, allowing organizations to maintain a more stable and accurate pricing structure for inventory valuation and procurement activities. By analyzing historical data, the MAP provides insight into the cost trends and helps mitigate the impact of price fluctuations, ensuring that purchasing decisions reflect a realistic cost basis. This ensures that financial planning and reporting can be done accurately, based on a reliable measure of inventory costs.

While options like setting the invoice price, supplier selection, and shipping cost calculation are relevant in the context of procurement and logistics, they do not directly pertain to the purpose of MAP. Invoice pricing typically depends on specific agreements with suppliers and may not always reflect the moving average price. Supplier selection involves evaluating vendors based on various criteria, which does not directly relate to how the moving average price is calculated or used. Shipping costs generally relate to logistics and transportation, distinct from inventory valuation processes. Thus, the key function of MAP as a tool for price control plays a fundamental role in helping organizations manage their inventory costs effectively.