Inventory Valuation for Year End Closing (182) Valuation for Year End Closing (182) SAP AG ... (FI), and Controlling (CO ... SAP Best Practices Inventory Valuation for Year End Closing ...

  • Published on
    06-Feb-2018

  • View
    216

  • Download
    1

Embed Size (px)

Transcript

  • EHP6 for SAP ERP 6.0

    July 2012

    English

    Inventory Valuation for Year End Closing (182)

    SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf Germany

    Business Process Documentation

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

    SAP AG Page 2 of 31

    Copyright

    2012 SAP AG. All rights reserved.

    SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, SAP HANA, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

    Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company.

    Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase Inc. Sybase is an SAP company.

    Crossgate, m@gic EDDY, B2B 360, and B2B 360 Services are registered trademarks of Crossgate AG in Germany and other countries. Crossgate is an SAP company.

    All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

    These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

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

    SAP AG Page 3 of 31

    Icons

    Icon Meaning

    Caution

    Example

    Note

    Recommendation

    Syntax

    External Process

    Business Process Alternative/Decision Choice

    Typographic Conventions

    Type Style Description

    Example text Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths and options.

    Cross-references to other documentation.

    Example text Emphasized words or phrases in body text, titles of graphics and tables.

    EXAMPLE TEXT Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example, SELECT and INCLUDE.

    Example text Screen output. This includes file and directory names and their paths, messages, source code, names of variables and parameters as well as names of installation, upgrade and database tools.

    EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the

    ENTER key.

    Example text Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation.

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

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

    SAP AG Page 4 of 31

    Contents

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

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

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

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

    2.3 Roles ...................................................................................................................................... 7

    2.4 Preliminary Steps ................................................................................................................... 8

    2.4.1 Setting Controlling Area .................................................................................................. 8

    3 Process Overview Table .................................................................................................. 9

    4 Process Steps ................................................................................................................ 11

    4.1 Stock Valuation for Raw Materials and Trading Goods ....................................................... 11

    4.1.1 Procurement of Raw Materials and Trading Goods ..................................................... 11

    4.1.2 Determination of Lowest Value for Raw Materials and Trading Goods on the Basis of Market Prices ........................................................................................................... 12

    4.2 Stock Valuation of Semifinished and Finished Products Determination of Lowest Value Using Inventory Costing ............................................................................................ 14

    4.2.1 Copying Inventory to Controlling Version ..................................................................... 15

    4.2.2 Posting Book Depreciation (N/A) .................................................................................. 17

    4.2.3 Revaluation: Set Old Posted Values Depreciation to Zero (N/A) ................................. 19

    4.2.4 Activity Price Planning - Plan Activity Based on Capacity (N/A)................................... 20

    4.2.5 Activity Price Planning - Plan Reconciliation (N/A) ....................................................... 21

    4.2.6 Activity Price Planning - Change to Calculate Rates Based on Capacity (N/A) ........... 22

    4.2.7 Activity Price Planning - Plan Price Calculation (N/A) .................................................. 23

    4.2.8 Inventory Costing .......................................................................................................... 25

    4.2.9 Price Update Marking ................................................................................................ 26

    4.3 Analyzing Stock Valuation for Materials using Price Comparison for Each Material Stock Account/Material Type/Material ........................................................................................... 28

    4.4 Stock Value Adjustment ....................................................................................................... 29

    5 Appendix ........................................................................................................................ 31

    5.1 Reversal of Process Steps ................................................................................................... 31

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

    SAP AG Page 5 of 31

    Inventory Valuation for Year End Closing

    1 Purpose This document outlines the process of inventory valuation at the end of the fiscal year. It provides end users with an example process description, which they can use as a template for their own valuation processes.

    The Business Process Documentation includes 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 semifinished products, in accordance with the lowest possible valuation principle

    Stock value reporting in the form of a comparison analysis

    Manual inventory value adjustment posting in the financial accounting component

    These Business Process documents can be used by all companies running an SAP ERP 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 semifinished and finished products. After the inventory is cost, 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), including settings for the overhead structure, valuation variant, and stock valuation with devaluation on the basis of movement rate.

    2 Prerequisites

    2.1 Master Data

    You have entered the master data required to go through the procedures steps of this scenario. Ensure that the following scenario-specific master data exists before you run 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

    no specific materials necessary, but transaction data must be available

    Production master Data BOM, Work center, routing

    For all FERT and HALB data that is used for costing with quantity structure

    Cost center *

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

    SAP AG Page 6 of 31

    Master data Value Selection Comment

    Activity types * all activity types all activity types used for costing with quantity structure

    Cost center group

    Field Name Description User Actions and values Comment

    Cost Center Group

    3B CAP TECHNICAL OPERATION

    42 UFL OPERATIONS

    4D SWAN OPERATIONS

    59 GCL SE II

    5A GCL WEST

    5B GCL LAGOS

    5C GCL JOS MILLS -OPERATIONS

    5D GCL KANO

    5E GCL ONITSHA

    5F GCL EWU

    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 planned values

    Account 910590

    2.2 Business Conditions

    The business process described in this Business Process Documentation is part of a bigger chain of integrated business processes or scenarios. Therefore you must have completed the following processes and fulfilled the following business conditions before you can start running this scenario:

    Business condition Scenario

    Before you can run this scenario, you must have completed the following scenarios:

    Procurement without QM (130)

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

    or/and

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

    or/and

    Procurement without QM (130)

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

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

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

    SAP AG Page 7 of 31

    Business condition Scenario

    Repetitive Manufacturing (149) (for material S21)

    or/and

    Make-to-Stock Process Industry (146)

    Repetitive Manufacturing (149) (for material S21)

    Make-to-Stock Process Industry (146)

    2.3 Roles

    Use

    To 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.

    Prerequisites

    The 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.

    Warehouse Manager

    SAP_NBPR_WAREHOUSEMANAGER_M

    Determination of lowest value

    Warehouse Manager

    SAP_NBPR_WAREHOUSEMANAGER_M

    Analyze stock valuation

    Enterprise Controller

    SAP_NBPR_CONTROLLER_M Copy inventory to CO-version

    Enterprise Controller

    SAP_NBPR_CONTROLLER_M Post book depreciation

    Enterprise Controller

    SAP_NBPR_CONTROLLER_M Revaluation

    Enterprise Controller

    SAP_NBPR_CONTROLLER_M Activity price planning capacity (optional)

    Enterprise Controller

    SAP_NBPR_CONTROLLER_M Plan reconciliation

    Enterprise Controller

    SAP_NBPR_CONTROLLER_M Change rate base to capacity (optional)

    Enterprise Controller

    SAP_NBPR_CONTROLLER_M Plan price calculation

    Product Cost Controller

    SAP_NBPR_PRDCOST_CONTRLR_S

    Costing (cost estimate)

    Product Cost Controller

    SAP_NBPR_PRDCOST_CONTRLR_S

    Price update

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

    SAP AG Page 8 of 31

    Business role Technical name Process step

    General Ledger Accountant

    SAP_NBPR_FINACC_S Post stock revaluation

    2.4 Preliminary Steps

    First, check if purchase requisitions are available in transaction MD04. If no purchase requisitions are available, perform 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, 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 larger than the current requirements. In this case, create planned independent requirements with MD61.

    You need to complete the settings and configurations that are necessary for a standard cost estimate. For an example, refer to the Product Cost Planning (169) scenario.

    2.4.1 Setting Controlling Area

    Use

    The 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 Center 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

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

    SAP AG Page 9 of 31

    2. On the Set Controlling Area screen, in the field of Controlling area, enter 1000, and then choose Save (F5) your entry as a user parameter.

    3 Process Overview Table Process step External

    process reference

    Business condition

    Business role

    Transaction code

    Expected results

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

    See 130 - Procurement of Stock Material

    See 130 - Procurement of Stock Material

    See 130 - Procurement of Stock Material

    Valuated Material movements

    Stock Valuation for...