182_ERP605_BPD_EN_BR_Inventory Valuation – Material Ledger Closing

EHP5 for SAP ERP 6.0

June 2011

English

Inventory Valuation – Material Ledger Closing (182)

SAP AGDietmar-Hopp-Allee 1669190 WalldorfGermany

Business Process Documentation

SAP Best Practices Inventory Valuation – Material Ledger Closing (182): BPD

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Example

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Content

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

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

2.1 Master Data 5

2.2 Roles 5

2.3 Preliminary Steps 6

2.3.1 Setting Controlling Area 6

3 Process Overview Table.................................................................................................7

4 Process Steps................................................................................................................. 8

4.1 Running Actual Costing Splitting 8

4.2 Running Actual Price Calculation 8

4.3 Production and Process Order Variance Calculation 9

4.4 Settling Variances 10

4.5 Costing Cockpit: Actual Costing 11

4.6 CO-PA Revaluation 12



Inventory Valuation – Material Ledger Closing

1 PurposeThis document outlines the process of inventory valuation with the Material Ledger Closing at the end of the actual period. It provides end users with an example process description, which they can use as a template for their own valuation processes.

The Actual Costing/Material Ledger is legal requirement for Brazil and used to calculate actual product costs for each material at the end of the period end close. During the period, each material movements are valued with a standard price and any variances from this standard are collected in the material ledger together with the preliminary valuation when invoices are received or orders settled. In other words, Material Ledger serves for recording the real costs of externally procured materials and materials produced in-house and at the same time it takes into consideration and records all factors effecting price fluctuation.

At the end of the period, during the material ledger closing process the variances collected during the period are used to calculate the actual price for the materials and postings are made in the FI to reflect this price.

The actual price that is calculated is called the periodic unit price and can be used to revaluate the inventory for the period to be closed. In addition, you can use this actual price as the standard price for the next period. Valuating the material inventories at the periodic unit price provides a method of valuation using actual costs while avoiding the problems associated with the moving average price. Actual Costing therefore combines the advantages of price control using the standard price with the advantages of using the moving average price.

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

2 Prerequisites

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

Master data Value Selection Comment

Cost Center Group 130

Plant 1000

1100



2.2 Roles

UseTo run this scenario in the SAP NetWeaver Business Client (NWBC), the following roles must already be installed. The roles in this Business Process Documentation must be assigned to the user or users running 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 running this scenario.

Business role Technical name Process step

Employee (Professional User)

SAP_NBPR_EMPLOYEE_S Assignment of this role is necessary for basic functionality.

Enterprise Controller

SAP_NBPR_CONTROLLER_M Setting Controlling Area

Product Cost Controller BR

SAP_NBPR_BR_PRDCOST_CONTRLR_S

Costing Cockpit: Actual Costing

Product Cost Controller

SAP_NBPR_PRDCOST_CONTRLR_S Settling Variances

Production and Process Order Variance Calculation

Enterprise Controller BR

SAP_NBPR_BR_CONTROLLER_M Actual Costing Splitting

Running Actual Price Calculation

CO-PA Revaluation

2.3 Preliminary Steps

2.3.1 Setting Controlling Area

UseThe controlling area is to be set before you carry out the first steps in controlling.

If the controlling area is already assigned in the user parameters (see the Quick Guide), this step is no longer necessary and can be omitted.



Procedure

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

Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Accounting Controlling Cost Element Accounting Environment Set Controlling Area

Transaction code OKKS

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role

Business role Enterprise Controller

(SAP_NBPR_CONTROLLER_M)

Business role menu Overhead Cost Controlling Planning Planning Preparation Set Controlling Area

2. On the Set Controlling Area screen, enter Controlling area 1000.

3. Save (F5) your entry as a user parameter.

3 Process Overview TableProcess step External

process reference

Business condition

Business role

Transaction code

Expected results

Setting Controlling Area

Enterprise Controller

OKKS

Running Actual Costing Splitting


KSS2

Running Actual Price Calculation


KSII

Production and Process Order Variance Calculation

Product Cost Controller

KKS1

Settling Variances Product Cost Controller

CO88

Costing Cockpit: Actual Costing

Product Cost Controller BR

CKMLCP

CO-PA Revaluation


KE27



4 Process Steps

4.1 Running Actual Costing Splitting

UseActual cost splitting makes it possible to divide costs into fixed and variable portions. You can also use it to carry out target/actual comparisons and to calculate actual prices.

Procedure1. Access the activity using one of the following navigation options:


SAP ECC MenuAccounting Controlling Cost Center Accounting Period-End Closing Single Functions Splitting

Transaction Code KSS2

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

Business roleEnterprise Controller BR

(SAP_NBPR_BR_CONTROLLER_M)

Business role menuOverhead Cost Controlling Period End Closing Single Functions Actual Cost Splitting: Cost Centers

2. On the Actual Costing Splitting: Initial Screen, enter with the following information:

Field name Description User action and values Comment

Period <Period to Close>

Fiscal Year <Current Fiscal Year>

Cost Center Group 130 Example

3. Choose Execute.

4. If you get no errors, go back and deselect the Test Run option.

5. Choose Execute again.

4.2 Running Actual Price Calculation

UseIn this activity you run the Actual Price Calculation to calculate the real activity price in the Productivity Cost Center.

Procedure1. Access the activity using one of the following navigation options:


SAP ECC Menu Accounting Controlling Cost Center Accounting Period-End



Closing Single Functions Price Calculation

Transaction Code KSII

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

Business roleEnterprise Controller BR


Business role menuOverhead Cost Controlling Period End Closing Single Functions Actual Price Determination: CCtrs

2. On the Execute Actual Price Calculation: Initial Screen, enter with the following information:


Cost Center Group 130 Example

PeriodFrom <Period to Close>

To <Period to Close>


3. Choose Execute.



4.3 Production and Process Order Variance Calculation

UseIn this activity, you calculate production and process order variances.

Procedure



SAP ECC menu Logistics Production Shop Floor Control Period-End Processing Variances Collective Processing

Transaction code KKS1


Business role Product Cost Controller

(SAP_NBPR_PRDCOST_CONTRLR_S)

Business role menu Product Cost Controlling Periodic Processing Variances Variance Calculation (Production Orders)

2. On the Variance Calculation: Initial screen, make the following entries:


Plant 1000 Example



With production orders Selected

Period <Period to Close>

Fiscal year <Current Fiscal Year>

All target cost vsns Selected

3. Choose Execute.



4.4 Settling Variances

UseIn this step, you settle the production variances to Financial Accounting and Profitability Analysis.

Procedure



SAP ECC menu Logistics Production Shop Floor Control Period-End Processing Settlement Collective Processing

Transaction code CO88


Business role Product Cost Controller

(SAP_NBPR_PRDCOST_CONTRLR_S)

Business role menu Product Cost Controlling Periodic Processing Settlement Actual Settlement: Production/Process Orders

2. On the Actual Settlement screen, make the following entries:


Plant 1000 Example

With Production Orders Selected

Settlement Period <Period to Close>


Processing Type Automatic

3. Choose Execute.





4.5 Costing Cockpit: Actual Costing

UseIn this activity you run the Material Ledger Closing to calculate the actual costing.

Procedure

1. Access the activity using one of the following navigation options:


SAP ECC Menu Accounting Controlling Product Cost Controlling Actual Costing/Material Ledger Actual Costing Edit Costing Run

Transaction Code CKMLCP


Business role Product Cost Controller BR

(SAP_NBPR_BR_PRDCOST_CONTRLR_S)

Business role menu Product Cost Controlling Actual Costing/Material Ledger Actual Costing Cockpit Actual Costing

2. On the Costing Cockpit: Actual Costing – Change Execute screen, in the Costing Run field, enter ML001.

3. Enter with the Period to be Closed and the Current Fiscal Year.

4. Enter a Description.

5. Choose Create Costing Run and confirm the Pop up.

6. Select the Plant Assignment tab and move the plant 1000 (Example) from the Available Plants to the Assigned Plants.

7. Choose Save.

8. In the Create Cost Estimate table, for each row, there is a Change Parameter button in the Parameters column, choose the one in the Selection row and deselect Background Processing.

9. Choose Save then choose Back.

10. Choose Execute that appears in the Execute column and the status light for this row turns green.

11. For the Determine Sequence row, choose the Change Parameter button. Deselect Background Processing, and then choose Save then choose Back.

12. On the row with Single-Level Pr. Determination, choose Lock and the Authorization will be changed to Allowed.

13. Click on Parameters of the Single-Level Pr. Determination and select the option Process Again and deselect the option Background Processing.

14. Choose Save and Back.



15. Choose Execute.

16. Choose the Parameter of the Multilevel Pr. Determination and select the options Process Again and Check Against Moving Avg Price In Preceding Period. Also, deselect the Background Processing.


18. Choose Execute.

19. Choose the Parameter of the Revaluation of Consumption and select the option Process Again and deselect the option Background Processing.


21. Choose Execute.

22. On the row with Post Closing, choose the Parameter button and select the following:


Execute Selected

Revaluate Material Selected

Revaluate Consumption

Selected

Set CO Account Assignment

Selected

Background Processing Deselected

Test Run Deselected

Save log Selected


24. Choose Execute.

25. Choose the Parameters of the Mark Material Prices row and select the option Beginning of the following period and deselect the option Background Processing.


27. Choose Execute.

4.6 CO-PA Revaluation

UseIn this activity you revaluate the CO-PA with the Actual Costing calculated with the Material Ledger Closing.

Procedure

1. Access the activity using one of the following navigation options:


SAP ECC Menu Accounting Controlling Profitability Analysis Actual Postings Period-End Closing Periodic Adjustments



Periodic Valuation

Transaction Code KE27


Business role Enterprise Controller BR


Business role menu Profitability Analysis Period End Closing Periodic Adjustments Periodic Valuation

2. If the Set Operating Concern dialog box appears, enter your Operating concern (for example, 10BR) and choose Enter.

3. On the Periodic Valuation: Initial Screen, make the following entries:

Actual Data

From period <Period to Close >.<Current Fiscal Year>

To <Period to Close >.<Current Fiscal Year>

Record type F

All Valuation Views Selected

Options

All val. flds modifiable Deselected

Periodic Valuation Deselected

Test Run X (Test run can be used initially, if desired)

Make sure you provide the data in the correct formatPeriod: Format MMM.YYYY (for example 001.2011)

4. Choose Selection criteria.

5. Choose Execute.


Documents

182_ERP605_BPD_EN_BR_Inventory Valuation – Material Ledger Closing