utilities_building_blocks_china_inventory valuation for year end closing _182_bpp.doc

SAP ECC 6.0 EhP3

August 2008

English

Inventory Valuation for Year End Closing (182)

SAP AGDietmar-Hopp-Allee 1669190 WalldorfGermany

Business Process Documentation

SAP Best Practices Inventory Valuation for Year End Closing (182): BPD

Copyright

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Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

External Process

Business Process Alternative/Decision Choice

Typographic Conventions

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Cross-references to other documentation.

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<Example text> Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.

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Contents

1 Purpose........................................................................................................................................ 5

2 Prerequisites................................................................................................................................ 5

2.1 Master Data........................................................................................................................... 5

2.2 Business Conditions..............................................................................................................6

2.3 Preliminary steps................................................................................................................... 7

2.4 Roles..................................................................................................................................... 7

3 Process Overview Table...............................................................................................................8

4 Business Processes................................................................................................................... 10

4.1 Stock Valuation for Raw Materials and Packaging Materials...............................................10

4.1.1 Procurement of Raw Materials, Packaging Materials and Trading Goods...................10

4.1.2 Determination of Lowest Value for Raw Materials, Packaging Materials and Trading Goods, on the Basis of Market Prices........................................................................................11

4.2 Stock Valuation of Semi finished and Finished Products – Determination of Lowest Value Using Inventory Costing.................................................................................................................13

4.2.1 Copying Inventory to Controlling Version.....................................................................14

4.2.2 Posting Book Depreciation...........................................................................................15

4.2.3 Revaluation: Set old posted values depreciation to Zero.............................................16

4.2.4 Activity Price Planning - Planning Activity Based on Capacity (optional)......................17

4.2.5 Activity Price Planning - Planning Reconciliation.........................................................19

4.2.6 Activity Price Planning - Changing to Calculate Rates Based on Capacity (optional). .20

4.2.7 Activity Price Planning - Planning price Calculation.....................................................21

4.2.8 Inventory Costing.........................................................................................................22

4.2.9 Price Updating – Marking.............................................................................................23

4.3 Analyzing Stock Valuation for Materials Using Price Comparison for Each Material Stock Account/Material Type/Material......................................................................................................24

4.4 Stock Value Adjustment......................................................................................................26

5 Appendix.................................................................................................................................... 27

5.1 Reversal of Process Steps..................................................................................................27

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Inventory Valuation for Year End Closing

1 PurposeThis document outlines the process of inventory valuation – balance sheet valuation at the end of the year. This provides end users with an example process description that they can use as a template for their own valuation processes.

The business process procedures include the following process steps:

Stock valuation, using lowest value principle for raw materials, packaging materials and trading goods.

Additional devaluations by movement rate

Inventory costing for finished and semi-finished products, in accordance with the lowest possible value principle

Stock value reporting in the form of a comparison analysis

Manual stock value adjustment posting in the Financial Accounting component

These business process procedures can be used by all companies that are running an SAP R/3 system that integrates the Materials Management (MM), Production Planning (PP), Financial Accounting (FI), and Controlling (CO) components.

The inventory cost estimate calculates tax-based or commercial prices for semi-finished and finished products. After the inventory is costed, the costing results are transferred to the material master as tax-based and commercial prices.

Inventory valuation is carried out in accordance with local legislation (such as the German Commercial Code), including settings for the overhead structure, valuation variant, and stock valuation with devaluation on the basis of movement rate.

2 Prerequisites

2.1 Master DataYou have entered the master data required to go through the procedures of this scenario. Ensure that the following scenario-specific master data exists before you test this scenario:

Master Data Value Selection Comment

Material master Materials used for procurement and Materials that are produces, for example Materials with material type FERT/HALB/ROH/VERP/HAWA

There are no specific Materials necessary, but there should be transaction data available

Production master data - BOM

For all FERT and HALB which should be estimated with a quantity structure

Cost Center * All cost centers in group 130

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Activity Types * All activity types All activity types used in the routings / work centers of the materials to be calculated.

Cost Center Group

130 Manufacturing cost center group

Activity Type Group

YBMF_P00_AT Activity types used for manufacturing

Cost element All production relevant Cost elements in group 10_CE

Cost element 920500 Only for plannes values

Account 910590

Manufacturing Area Master Data Value Selection Comment

All Master data that are necessary for the standard price estimate

BOM Which are necessary for the standard cost estimate

Work Center Which are necessary for the standard cost estimate

routing Which are necessary for the standard cost estimate

2.2 Business ConditionsThe business process described in this Business Process Procedure is part of a bigger chain of integrated business processes or scenarios. As a consequence, you must have completed the following processes and fulfilled the following business conditions before you can start going through this scenario:

Business condition Scenario

If you want to run this scenario there should have been completed the following scenarios:

run through the Procurement to stock (130) process

run through the Make-to-Stock Production - Discrete Industry (130) process (for material F126)

or and

run through the Make-to-Stock Production -

Procurement-to-Stock (130)

Make-to-Stock Production - Discrete Industry (130) (material F126)

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Process Industry (146) process (for material F29)

or and

run through the Repetitive Manufacturing (149) process (for material S21)

or and

Make-to-Stock – Process Industry (146)

Make-to-Stock Production - Process Industry (146) (material F29)

Repetitive Manufacturing (149) (material S21)

Make-to-Stock – Process Industry (146):

2.3 Preliminary stepsYou can check if Purchase Requisitions are available in transaction MD04. If no Purchase Requisitions are available, you can do the following steps:

- In case of material planned by Reorder Point Planning:

MRP does not create Purchase Requisitions, if the available quantity is bigger than the reorder point. In this case you can reduce the stock of that material with MIGO and movement type 562.

- In case of material planned by MRP type PD (MRP):

MRP does not create Purchase Requisitions, if the available quantity is bigger than the current requirements. You can create Planned Independent Requirements with MD61.

The settings and configuration which are necessary for a standard cost estimate have to be done. For an example you can refer to the configuration from scenario Product Cost Planning (169)

2.4 Roles

UseThe following roles must have already been installed to test this scenario in the SAP Netweaver Business Client (NWBC). The roles in this Business Process Procedure must be assigned to the user or users testing this scenario. You only need these roles if you are using the NWBC interface. You do not need these roles if you are using the standard SAP GUI.

PrerequisitesThe business roles have been assigned to the user who is testing this scenario.

Business role Technical name Process step

Warehouse Clerk SAP_BPR_WAREHOUSESPECIALIST-S

Determination of lowest value

Warehouse Clerk SAP_BPR_WAREHOUSESPECIALIST-S

Analyze stock valuation

Enterprise Controller

SAP_BPR_Controller-K Copy Inventory to CO-Version

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SAP_BPR_Controller-K Post book depreciation


SAP_BPR_Controller-K Revaluation


SAP_BPR_Controller-K Activity price planning Capacity (optional)


SAP_BPR_Controller-K Plan reconciliation


SAP_BPR_Controller-K Change rate base to capacity (optional)


SAP_BPR_Controller-K Plan price calculation

Product cost controller

SAP_BPR_PRDCOST_CONTROLLER_k

Costing (cost estimate)

Product cost controller

SAP_BPR_PRDCOST_CONTROLLER_k

Price update

Finanace Manager

SAP_BPR_FINACC-k Post stock revaluation

3 Process Overview TableProcess step External

process reference

Business condition

Business role

Trans-action code

Expected results

Stock Valuation for Raw Materials and Packaging Materials: Procurement of Raw Materials and Packaging Materials

BPP Procurement of Stock Material (130)

Purchasing

Stock Valuation for Raw Materials, packaging materials and trading goods : Determination of Lowest possible Value on the Basis of Market Prices

Purchasing MRN0 A lowest value has been updated in the material master records

Stock Valuation of Semifinished and Finished Products: Copy Inventory Controlling Version

Controller KP98 CO version 003

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Process step External process reference

Business condition

Business role

Trans-action code

Expected results

Stock Valuation of Semifinished and Finished Products: Post book depreciation

Open issue

Stock Valuation of Semifinished and Finished Products: Revaluation - set old posted values depreciation to zero

Open issue

Stock Valuation of Semifinished and Finished Products: Activity price planning - Plan Activity Based on Capacity

Controller Kp26 Version 003

Stock Valuation of Semifinished and Finished Products: Activity price planning - Plan Reconciliation

Controller Kpsi Version 003

Stock Valuation of Semifinished and Finished Products: Activity price planning - Change to Calculate Rates Based on Capacity (Optional)


Stock Valuation of Semifinished and Finished Products: Activity price planning – plan price calculation


Inventory costing Controller Ck11n

Price Update – Marking

Controller Ck24

Analyzing Stock Valuation for Materials Using Price Comparison for Each Material Stock Account/Material

Purchasing Mrn9

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Process step External process reference

Business condition

Business role

Trans-action code

Expected results

Type/Material

Stock value adjustment

Accountant FB50, FB50L

4 Business Processes

4.1 Stock Valuation for Raw Materials and Packaging Materials

UseFor valuate a material for balance sheet purposes according to the lowest value principle, various physical inventory prices are required. These prices are used to calculate the value for balance sheet valuation. In this scenario the procedures for lowest value determination on base market price will be done. The system determines a costing result that can differs from the costs of goods manufactured. This value is updated in the material master in the procedure for determining the lowest value. The system compares the costing result with the current price in accordance with price control and the price from the previous period. The lowest value is then updated in the commercial price.

Legal inventory requirements (German GAAP):It is not allowed to sell goods below their purchasing price. This is legally forbidden. Therefore according to accounting directive the sales price is irrelevant for valuation of purchased goods.

Prerequisites Materials of material type ROH, VERP, HAWA

Stocks

Posted receipts and issues

To carry out the business processes in this scenario, the materials that should be considered must be available and assigned to the storage locations.

4.1.1 Procurement of Raw Materials, Packaging Materials and Trading Goods

Use

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http://help.sap.com/erp2005_ehp_02/helpdata/en/36/3d61da608813f1e10000009b38f983/content.htm


Inventory is calculated at the end of a fiscal year. During a year materials are procured. The purchasing process can take place with several characteristics. For the purpose of the following handling the purchasing prices and the price-dependencies are in the foccus, whatever the logistical characteristics are.

This step is not a prerequisite for inventory calculation but provides the transaction data which are relevant for this process.

Process

Reference to Procurement of Stock Material (130) scenario

Also can the physical inventory be done, but it is even not a prerequisite for inventory calculation but normally it is one step in the year-end procedure that is done before the valuation prozess for the year-end started.

Process

Reference to Physical Inventory (137) scenario

4.1.2 Determination of Lowest Value for Raw Materials, Packaging Materials and Trading Goods, on the Basis of Market Prices

UseDetermining the lowest value based on market prices, the system searches for the lowest price (or alternatively the most recent price) among the various prices stored for each material.

The determination can be done on material level or on base of other selections, for example the material type as used here

Procedure1. Access the transaction choosing one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Logistics Materials Management Valuation Balance Sheet Valuation Determination of Lowest Value Market Prices

Transaction code MRN0

Option 2: SAP NetWeaver Business Client (SAP NWBC) via business role

Business role (name) Warehouse clerk < SAP_BPR_WAREHOUSESPECIALIST-S>

Business role menu Warehouse Management Balance Sheet Valuation Deter. Lowest Value: Market Prices

2. On the Determine Lowest Value: Market Prices screen, enter the following values:

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Field name Description User action and values Comment

Company Code 1000

Key Date Period end

Plant 1000

Material Type ROH, VERP, HAWA

3. In the Price Comparison group box, choose Market Price.

4. On the Overview tab page in the Select the Required Price Sources dialog box, select the relevant comparison prices with a ranking.

Receipt Prices 2

Order Prices 1

Sched. Agmt Prices 3

Contract Prices 5

Info Record Prices 4

This ranking is an example and must be adjusted to the relevant customer needs.

5. On the Receipts tab page, select the posting date from e.g. <current date> until the end of the current month for the receipt prices. Choose the strategy A Lowest Price of Receipts in Period and the exchange rate comparison A Doc. Ex. Rate.

6. On the POs, Contracts, Sched. Agmts, and Info Records tab pages, adjust the purchase order date in the same way as the posting date on the Receipts tab page. The strategy and the exchange rate comparison are also defined in the same way as on the Receipts tab page.

7. Exit the dialog box and go back to the selection screen.

In the Price Comparison group box, choose Comparison Price.

8. In the Select a Comparison Price dialog box, select Lowest Val. Comparison. Below this, specify the prices that the system is to compare in order to determine the lowest value. Set the following checkboxes:

Current Material Price

Current Standard Price

Current MAP

9. Confirm your entries and exit the dialog box by choosing Continue (Enter) (the icon with the green checkmark).

10. In the Update Material Master group box, select Database Update.

Two additional pushbuttons then appear on the selection screen: Change Material Prices and Update Prices.

11. To copy the lowest value to an inventory price field, choose Update Prices.

12. In the Update Prices – Select. dialog box, select Commercial Price 1. Confirm your entry by choosing Continue (Enter).

13. Choose Execute (F8) to determine the lowest value.

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The system warns you that you have not entered a material number interval. If you are dealing with large volumes of material master data, you should enter a material number interval.

The system outputs an evaluation for each material, which specifies the price that is used as the comparison price and whether a new price was determined for valuation.

14. Open a second session by choosing Creates a New Session or System Create Session.

15. Call up transaction MM03 Display Material and enter a material number from the lowest value determination overview. Select the Accounting 1 and Accounting 2 views and enter plant MERGEFIELD Plant_Variant001_Plant \* MERGEFORMAT 1000.

16. Check the price according to price control and the commercial inventory price 1 and compare the values with the lowest value determination log.

17. Exit the two transactions.

Result A lowest value has been updated in the material master records for material types ROH (raw material) and VERP (packaging) and HAWA (trading).

4.2 Stock Valuation of Semi finished and Finished Products – Determination of Lowest Value Using Inventory Costing

UseOn the basis of the commercial prices of the material components and the adjusted prices of the activity types under considering several valuation approaches, the system determines a costing result that differs from the costs of goods manufactured. This calculated value is updated in the material master in the procedure for determining the lowest value.

Stock valuation of semi-finished and finished products can only be done with production. If production is not activated this step must not to be executed.

This inventory costing might produce a value that is smaller than the released costs of goods manufactured estimate. In this case, the stock valuation can be carried out on the basis of the new calculated inventory costs.

Prerequisites Costing variant for inventory costing

Determination of lowest value with update in the material master records of the raw materials if the result of the valuation should be used for the local valuation for example the commercial price (see step above)

Adjusting/Planning Activity Prices for Each Cost Center

The activity types for the machine hours that are used in the work centers to calculate the costs of goods manufactured can contain different depreciation costs for assets for local

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accounting. Costing for activity prices should include the expenses for depreciations of machines that are directly assigned to the work center.

If the expenses for depreciations included in the price cost estimate differ greatly, the prices should be calculated in accordance with local legislation in plan version 3 Plan Version Local Valuation.

In the following steps, you maintain prices for activity types in plan version 3. This process does not involve a complete price calculation with transfer of the depreciation values to plan version 3.

The process of the activity price calculation is also described in the AOP – Manufacturing Cost Center Planning (176) scenario

Reference to AOP – Manufacturing Cost Center Planning (176) scenario

The following described steps are preliminary steps for reaching the activity price in consideration the local requirements for valuation.

4.2.1 Copying Inventory to Controlling Version

UseThe current actual controlling version data are copied to the controlling version which is used for inventory calculation. In further steps postings are to be adjusted to legal regulations.

Prerequisites The Controlling plan-version 3 (local valuation) exists and actual postings for the valuation period has been done.



SAP ECC menu Accounting Controlling Cost Center Accounting Planning Planning Aids Copy Copy Actual to Plan

Transaction code KP98


Business role (name) Enterprise Controller< SAP_BPR_CONTROLLER-K>

Business role menu Overhead Cost Controlling Planning: Cost Centers Copy Actual to Plan

2. On the Copy Actual to Plan screen, enter the following data:

Field name Description User actions and values Comment

Controlling Area 1000

Target Cost Centers

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All cost centers select Or only the cost center group that is neccessary, but if there are are some allocations planned to be done, copy all cost centers

Template Actual

Period 1-12

Fiscal Year <current year>

Target (Plan)

Version 003 Version used for inventory calculation

Period 1-12


Actual Data

All actual data select

Structure w/values select

Processing options

Reset and overwrite select

Execute

Result The planning report can be checked with transaction KSBL.

4.2.2 Posting Book Depreciation

UseBook depreciation is posted to cost center accounting with controlling version used for inventory calculation.

Prerequisites The Asset Accounting is used and a special depreciation area for the book depreciation on planned cost center is active.

Also asset master record with the link to a production cost center must exist.

For demo data reference to Prerequisite Process Steps (154) scenario

Or

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Run the processes in the Create Assets (155.02) scenario, using our master data.



SAP ECC menu Accounting Controlling Cost Center Accounting Planning Planning Aids Transfers Depreciation/Interest FI-AA

Transaction code S_ALR_87099918



Business role menu Overhead Cost Controlling Planning: Cost Centers Primary Cost Planning: Depreciation/Interest

2. On the “primary cost planning: Depreciation/Interest” screen, enter the following data:


Company Code 1000

Settings

Depreciation area 01 For Taxbalace

Planning periods

Period 1-12


Further settings for planning

Plan Version 003 Version used for inventory calculation

Test run deselect

Execute

Result Planned book depreciations under the depreciation area for For Taxbalace (as copy of book depreciation) are posted to a cost center under a costing element.

4.2.3 Revaluation: Set old posted values depreciation to Zero

Use

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After you took over the tax based depreciations into the inventory version of cost center accounting the costing-based depreciations are to be deleted in this version

Prerequisites Costing based depreciations has been booked for the looked at fiscal year.



SAP ECC menu Accounting Controlling Cost Center Accounting Planning Planning Aids Delete Planned Costs




Business role menu Overhead Cost Controlling Planning: Cost Centers Planned Costs

2. On the Delete Planned Costs screen, enter the following data:


Version 003


Restrictions

Costelement 920100-920400 Cost elements that are assigned for costing based depreciation

Processing option

Test run deselect

Fiscal Year Execute

Result The actual posted calculator depreciations are deleted and in the planning version 003 are only costs for the book depreciation assigned to the production cost center.

4.2.4 Activity Price Planning - Planning Activity Based on Capacity (optional)

UseIn this activity you will plan activity based on capacity. If a business wants to calculate activity rates based on capacity this step is necessary. Then also the change of the activity type is necessary step

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Activity Price Planning - Change to Calculate Rates Based on Capacity (Optional). If not it is only a base for comparison.

This is an optional step.



SAP ECC menu Accounting Controlling Cost Center Accounting Planning Activity/Output prices Change




Business role menu Overhead Cost Controlling Planning: Cost Centers Change Activity Type/Price Planning

2. On the Change Activity Type/Price Planning - Initial Screen, make the following entries:


Version 3

From period 1

To period 12

Fiscal year <current year>

Cost Center Group 1000

Activity Type Group YBMF_P01_AT Activity types used for manufacturing

Form-based X

3. Choose Overview.

4. Enter the number of hours calculated based on capacity in Capacity column.

5. The Plan Activity column must be zero or a contingency amount to adjust scheduled quantity.

If a third quantity is needed in the business, it can be entered in the Plan Activity column, but then Plan Reconciliation step should not be executed as this will add scheduled quantity to the plan quantity.

6. Equivalent number must be 1 for activity 1 and blank for the others.

7. Choose Save.

Result The capacity is updated on cost center.

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To generate a report, use transaction code S_ALR_87013647.

4.2.5 Activity Price Planning - Planning Reconciliation

UseIn this activity you will plan reconciliation.

Prerequisites The activity requirements are transferred from LTP or other production planning scenarios to cost center accounting.

For the process for transfer reference to AOP – Manufacturing Cost Center Planning (176) scenario, step “Transfer Planned Activity Requirements for Production



SAP ECC menu Accounting Controlling Cost Center Accounting Planning Planning Aids Plan Reconciliation

Transaction code KPSI



Business role menu Overhead Cost Controlling Planning: Cost Centers Execute Plan Reconciliation

2. On the Execute Plan Reconciliation - Initial Screen, make the following entries:


Cost Center group 1000

Version 003 CO planning version

From period 1

To period 12


Detail lists <Select>

Test Run <Select as needed>

3. Choose Execute.

Result The scheduled activity is added to plan activity and updated as plan on the cost center.

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To generate a report, use transaction code KSBL (menu path Accounting Controlling Cost Center Accounting Information System Planning Reports Cost centers: Planning Overview).

The plan activity from the cost center (usually 0) is shown as well as the New plan activity, which adds the scheduled and the planned activity.

4.2.6 Activity Price Planning - Changing to Calculate Rates Based on Capacity (optional)

UseIn the normal flow of business, activity rates will be calculated based on plan activity. If a business wants to calculate activity rates based on capacity, execute this step.

PrerequisitesTo execute this activity go to transaction KL02 Basic Data tab Allocation Default values, and enter 2 in the Price indicator – Plan price, automatically based on activity field.

This is an optional step.



SAP ECC menu Accounting Controlling Cost Center Accounting Planning Activity/Output prices Change




Business role menu Overhead Cost Controlling Planning: Cost Centers Change Activity Type/Price Planning

2. On the Change Activity Type/Price Planning - Initial Screen, make the following entries:


Version 3

From period 1

To period 12


Cost Center Group 1000

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Activity Type Group

YBMF_P01_AT

Form-based X

3. Choose Overview.

4. Change planned price indicator column to 2 to calculate the rates based in the Capacity column.

The choice of quantity used for the rate calculation is a business decision. If the SOP/LTP accuracy is high then this is the logical choice. If SOP is a new concept and master data is inaccurate then capacity is a better choice.

5. Choose Save.

ResultThe plan is updated with the correct plan price indicator.

4.2.7 Activity Price Planning - Planning price Calculation

UseThe purpose of this activity is automatic calculation of plan price in inventory calculation version. The base for the rate calculation depends on the settings in the mater data of the activity type. If the optional steps where not done the plan price will be calculated on the base of the plan activity otherwise on base of the capacity



SAP ECC menu Accounting Controlling Cost Center Accounting Planning Allocations Price Calculation

Transaction code KSPI


Business role SAP_BPR_CONTROLLER-K (Enterprise Controller)

Business role menu Overhead cost controlling Planning: Cost Centers Execute Plan Price Calculation

2. On the Execute Plan Price Calculation – Initial Screen, make the following entries:


Cost Center Group

1000

Version 3 CO plan version

From period 1

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To period 12


Test Run x

Detail Lists x

3. Choose Execute.

Result The activity prices are calculated.

To generate a report, use transaction code KSBL (menu path Accounting Controlling Cost Center Accounting Information System Planning Reports Cost centers: Planning Overview).

4.2.8 Inventory Costing

UseIn this activity, you will execute the costing run.

Prerequisites The single-level materials where updated with the commercial 1 price in the Material Master. The tariff in the Version 3 is available.



SAP ECC menu Accounting Controlling Product Cost Controlling Product Cost Planning Material Costing Cost Estimate with Quantity Structure Create

Transaction code CK11N


Business role (name) Product Cost Controller < SAP_BPR_PRDCOST_CONTROLLER-K>

Business role menu Product Cost Planning -> Create Material Cost Estimate with Quantity Structure

2. On the Costing Data tab page on the Create Material Cost Estimate with Quantity Structure screen, enter the following values:


Material Use a materials with type HALB and FERT

Finished and semi-finished products

Plant 1000

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Costing Variant YB03 Inventory valuation variant

Costing Version 1

3. Choose the Dates tab page and enter the following data:

Costing Date from: Period start

Costing Date to: Period end

Qty Structure Date: <date>

Valuation Date: <date>

Confirm your entries by choosing Enter. The system begins the cost estimate automatically.

4. Check the values and compare the result with the prices in the material master (transaction MM03 Display Material).

5. Save the inventory cost estimate.

ResultThe saved inventory cost estimate can now be used to update the inventory price in the material master.

4.2.9 Price Updating – Marking

PrerequisitesCost estimate with the costing variant YB03 with the status “KA” exists.



SAP ECC menu Accounting Controlling Product Cost Controlling Product Cost Planning Material Costing Price Update

Transaction code CK24


Business role (name) Product Cost Controller < SAP_BPR_PRDCOST_CONTROLLER-K>

Business role menu Product Cost Planning -> Price Update: Mark Standard Price

2. On the Price Update: Mark Standard Price screen, choose Other Prices.

The Price Update: Release Other Prices screen appears.

3. Enter data to restrict the cost estimates whose results you want to copy to the material master.

4. On the “Price update: Release other prices” screen, make the following entries:

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Company Code 1000

Plant 1000

Material Use all materials with type HALB and FERT

Costing Variant YB03

Costing Date <date>

Costing Version 1

5. In the Update Prices in Material Master Record group box, set the Commercial Price 1 checkbox.

6. Choose Execute (F8) to carry out the update.

On the Price Update screen, the system provides a short log for the test run. The log contains green traffic lights and the message of 1 material, 1 cost estimates were updated successfully.

7. Choose Back until you get to the Price Update: Release Other Prices selection screen.

8. Use the same selection parameters as in the test run for the price release. Scroll down to the bottom of the screen. Deselect the Test Run indicator in the Processing Options group box.

9. Update the prices in update mode and choose Back.

10. Call up transaction MM03 and check that the prices have been updated in material master.

ResultThe lowest value is determined in inventory costing when the prices are updated in the material master record. The system compares the valuation price according to price control for the current period or previous period with the costing result. If the valuation price is lower, this price is updated, rather than the value determined in inventory costing, as the tax or commercial price.

Commercial price 1 has been updated in the Accounting 1 view in the material master.

4.3 Analyzing Stock Valuation for Materials Using Price Comparison for Each Material Stock Account/Material Type/Material

UseThe process of analyzing the material prices supports the valuation adjustment posting. The price comparison report supplies the current stock values and the lowest stock value at various aggregation levels: material stock account, material type, and material. The difference between the stock values can then be posted in FI as a stock value adjustment.

Prerequisites Material valuation

Stocks

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Evaluation by material stock account only in the case of system integration (account determination) with FI

Physical inventory



SAP ECC menu Logistics Materials Management Valuation Balance Sheet Valuation Results Balance Sheet Value Per Account

Transaction code MRN9


Business role (name) Warehouse clerk < SAP_BPR_WAREHOUSESPECIALIST-S>

Business role menu Warehouse Management Balance Sheet Valuation ->Balance Sheet Values by Account

2. On the Balance Sheet Values by Account screen, enter the following parameters:


Company Code 1000

Key Date End of the month in current year

Plant 1000

The selection can be restricted further by material type or material number interval. If you are dealing with large volumes of material master data, you should always restrict the selection further.

If you do not restrict the selection by material/material type, the system outputs a message when you execute the report, informing you that you have not made any restrictions. In this example, you can confirm this message by choosing Enter.

ResultThe report presents the balance sheet values for each account, subdivided into valuation areas and material numbers, as follows:

Material/Description

Stock Quantity

Stock Value

Tax Value Commercial Value

Bal. Sheet Value

For the stock value, the current material price according to price control is multiplied by the stock quantity.

The tax value is calculated from the stock quantity, multiplied by the tax price or the current material price.

The commercial value is calculated from the stock quantity, multiplied by the commercial price or the current material price.

The balance sheet value is the lowest value of the stock, tax, and commercial values.

For revaluation of products each material depending on material type has to be decided whether a value adjustment posting for year end closing is required.

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4.4 Stock Value Adjustment

UseTo carry out the stock revaluation, a posting must be made to the relevant stock adjustment accounts. A stock value adjustment represents a balance sheet valuation and should therefore not be posted to the material stock accounts for updating the goods movements.



SAP ECC menu Accounting Financial Accounting General Ledger Document Entry Enter G/L Account Document

Transaction code FB50 or FB50L(for ledger group)


Business role (name) Finance Manager < SAP_BPR_FINACC-K>

Business role menu General Ledger Document Entry Post G/L Account Document

2. On the Enter G/L Account Document: Company Code 1000 screen, enter the following values:


Document Date Period end

Posting Date Period end

Currency CNY

Reference Stock Valuation

Doc. Header Text Revaluation Material types: ROH, VERP, HAWA, HALB, FERT

G/L Acct 14010190 Item 1

D/C Credit Item 1

Value Value from stock value comparison log

Item 1

G/L Acct 64015101 Item 2

D/C Debit Item 2

Value Value from stock value comparison log

Item 2

Cost Center 1201 Item 2

3. Choose Simulate to display and check the document.

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4. If the document does not contain any errors, choose Post.

This document is an example. Any other stock differences from the price comparison report must be posted in the same way. The various material stock accounts can be revaluated in a document.

If necessary, you can define a unique revaluation account for each material stock account.

In the balance sheet structure, the stock revaluation accounts must be assigned to the material stock account items. This ensures a complete view of the current stock on the balance sheet key date.

Result Revaluating stock in separate adjustment accounts is a simple way of keeping a record of revaluation postings and history. If MM and FI are fully integrated, it is usually not possible to post to the material stock accounts manually. The aim of this is to separate posting procedures in upstream components from standardizing entries and to ensure that system integration can be checked from a technical perspective.

Example In the system the following stock revaluation and expense accounts are avalible:Material stock accaount revaluation account Expense Account200000 (Roh1) 14010190 64015101200010 (Roh2) 14010190 64015101202000 (Hilfsstoffe) 14010190 64015101203000 (Betriebsstoffe) 14010190 64015101204000 (Ersatzteile) 14010190 64015101205000 (Verp) 14010190 64015101228000 (Hawa) 14010190 64015101210000 (Halb) 14010190 64015102220000 (fert) 14010190 64015102

5 Appendix

5.1 Reversal of Process StepsIn the following section, you can find the most common reversal steps, which you can take to reverse some of the activities described in this document,

Determination of Lowest Value

Transaction code ( SAP GUI) MNR0

Reversal: N/A

Transaction code ( SAP GUI) N/A

Business role Warehouse clerk < SAP_BPR_WAREHOUSESPECIALIST-S>

Business role menu Warehouse Management Balance Sheet Valuation Deter. Lowest Value: Market Prices

Comment You can overwite the updated prices

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utilities_building_blocks_china_inventory valuation for year end closing _182_bpp.doc

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