Part1

<----- Material Type

| |
| |
| ACR ( account Category Refe
MM <----- --> List of Valuation Class
Option to choose Valuation class

Output----> we can get Valuation class

Part2 ===> Determination of Transaction Key + Genera

These Transaction Keys and

Movement Indicator + Movement Type

|
Contains Valu

Transaction Keys it is inernal technical Processing key , W

All the Transaction Keys are SAP predefined Transaction
Not possible to define our Own T.Keys
Minimum TWO T.Keys are required to post one docume
General Modifier :
Further Clasification of Tran
By using the General Modifi
Possible to define our own G
General Modifiers alow to u

SAP Predefined General Modifiers

GBB-AUF Factory Outut of Pro
GBB-VBR Material consumtion
GBB-AUI Revaluation of Activi
GBB-VQP GI to the Samples ( M
GBB-VNG GI to the Scrap
GBB-VBO GI to the Sub contrac
GBB-BSA Intial stock Upload
GBB-VAX Goods Delivery to the
GBB-VAY Goods Delivery to the
GBB-INV Physical Inventory Di

PRD-Blank Purchase Price Differ

PRD-PRF Production Variance
t Category Referece)
aluation Class

uation class

n Key + General Modifier

ction Keys and GM is used along with valuation class in account determination proce

Contains Value String

|
Contains the list of T.Keys + GM which is possible for specific Movemeent Ty

cessing key , Which is used in automatic Account determiation Process while Posting
ed Transaction Keys

st one document
fication of Transaction Keys
General Modifiers along with T.Keys possible to post to the Different GL accounts eve
efine our own General Modifiers
ifiers alow to use only for few Transaction Keys like GBB , PRD , WRX,

ry Outut of Production (COGM)---> While goods received from Production Order to S

ial consumtion against Cost centers / Against Orders
uation of Activities which is part Material Ledger Actual Costing ( Possible to perform
he Samples ( Material consumtion-Samples)
he Scrap
he Sub contract Material
stock Upload
Delivery to the customer (COGS without CE)-----> MTS , MTO ( SO is Not A cost objec
Delivery to the customer (COGS with CE)-----> MTS , MTO ( SO is A cost object) , Acc
al Inventory Differences

ase Price Differences

uction Variance
ermination process to determine GL accounts

c Movemeent Type

ess while Posting Inventories and Invoice Posting

t GL accounts evethough using the same T.Key

uction Order to Stock

ssible to perform revaluation of activties)

s Not A cost object) , No Account Based OPA

cost object) , Account Based OPA
GR from Vendor to stock T.Keys
Dr. Stock g/L BSX
Cr.GR/IR WRX

Invoice Received From Vendor

Dr. Gr/IR WRX
Cr. Vendor KBS

GI to the Prod Order

Dr. Mat Consumtion Dr. Order GBB
Cr.Stock BSX

GI to the CC
Dr. Mat consumtion Dr.CC GBB
Cr. Stock BSX

GI to the Samples
Dr. Mat Consumtion-Samples Dr.CC GBB
Cr. Stock BSX

GR from Prod order to Stock

Dr. Stock BSX
Cr. COGM/Factory out put of prod GBB

Gi to the Projects
Dr. Mat Consumtion Dr. WBS GBB
Cr. Stock BSX
Material Scrap
Dr. Mat consumtion-Scrap Dr.CC GBB
Cr. Stock BSX

GI to the Subcontract
No Fi Entry

GR from Sub contract vendor to Stock

543
Dr. RM consumtion GBB
Cr. Stock-RM BSX

Dr. Sub Contract charges FRL

Cr. GR/IR WRX

Dr. Stock-SFG/FG BSX

Cr. Change in stock BSV

At the time of Vendor Invoice(MIRO) Scan Invoce

Dr.GR/IR WRX
Cr.Vendor

Intial Stock Upload

Dr. Stock BSX
Cr. Intial balance upload GBB

Goods Delivery to the customer

 Case1 : Sales order is not a cost object ( MTS) and no account based copa
DR. COGS (COGS without CE) GBB
Cr. Stock BSX
Case2 : Sales order is a Cost object (MTO) and Account based COPA
Dr. COGS (COGS with CE) GBB
Cr. Stock BSX

Physical Inventory Difference

System stock is more than Physical Stock
Dr. Physical Inventory Diff GBB
Cr. Stock BSX

Physical Inventory Difference

System stock is less than Physical Stock
Cr. Physical Inventory Diff GBB
Dr. Stock BSX

Example
 Movement Types
Geneal Modifiers 101

No Movement type

261
VBR GBB-VBR

201
VBR GBB-VBR

331
VQP GBB-VQP

101

AUF GBB-AUF

221
VBR GBB-VBR
 551
VNG GBB-VNG

541

VBO 300 GBB-VBO

300

5000
5000

5300
543 5300

5000
5000

561

BSA GBB-BSA

601
) and no account based copa
VAX GBB-VAX

d Account based COPA 601E

VAY GBB-VAY

702

INV GBB-INV

701

INV

SAP Stock-RMX 100 Kgs

Physical Sock Verifictio 90 Kgs
Physical Inventory diff 10 Kgs
E===> SO Stock
BSX Inventory Postings====> To Update the Inventory gL Acco
WRX GR/IR Clearings

GBB Offsetting entry for Inventory Posting

Transaction Key===> PRD=====> Price difference

PRD-
WRX

PRD-PRF
GBB-AUF
entory Postings====> To Update the Inventory gL AccoBSX
IR Clearings WRX

GR from Vendor to stock T.Keys

Dr. Stock g/L BSX
Cr.GR/IR WRX

Invoice Received From Vendor

Dr. Gr/IR WRX
Cr. Vendor KBS

setting entry for Inventory Posting

GBB can be used in multiple type of different Business Transacctions

GI to the Prod Order

Dr. Mat Consumtion GBB VBR
Cr.Stock BSX

GI to the CC
Dr. Mat consumtion GBB VBR
Cr. Stock BSX

GI to the Samples
Dr. Mat Consumtion-Samples GBB VQP
Cr. Stock BSX

GR from Prod order to Stock

Dr. Stock BSX
Cr. COGM/Factory out put of prod GBB AUF

Gi to the Projects
Dr. Mat Consumtion GBB VBR
Cr. Stock BSX

Material Scrap
Dr. Mat consumtion-Scrap GBB VNG
Cr. Stock BSX

Goods Delivery to the customer

Case1 : Sales order is not a cost object ( MTS) and no account based copa
DR. COGS (COGS without CE) GBB VAX
Cr. Stock BSX
Case2 : Sales order is a Cost object (MTO) and Account based COPA
Dr. COGS (COGS with CE) GBB VAY
Cr. Stock BSX

Physical Inventory Difference

Dr/Cr. Physical Inventory Diff GBB INV

Cr/Dr. Stock BSX

Intial Stock Upload

Dr. Stock BSX
Cr. Intial balance upload GBB BSA
n Key===> PRD=====> Price difference
PRD transaction key is used to account purchase price difference for external

By Using the general Modifier , We can post purchase price difference to sepa

PRD- Blank Purchase Price Difference

It Trigers during the GR if any price dfference in case of Std Price and It Trige

Dr. Purchase Price diff Dr. Cost Center

Dr. GR/IR
Cr. Vendor

PRD-PRF Production Variance

It Trigers at the time of settelement of Order if any difference between STD p

Entry for Production Variance

Dr. Production Variance 2000
Cr. COGM (Cost of Goods Mfg) 2000 Cr. Prd Order

FGX --> Std price 10000

Actual Cost of Production 12000
Production Variance 2000
 It is a Intermidiate GL to offset the GR and Invoice receipt for external Procur

Transacctions
ccount based copa

based COPA
ifference for external procurement and is used to account prodution variance for inh

rice difference to separate GL account and Production variance to the separate GL ac

e Price Difference
Std Price and It Trigers during the IR if any price difference between PO and Invoice

Dr. Cost Center

on Variance

rence between STD price and Actual cost of Prodction

Cr. Prd Order 2000

r external Procurement Material
n variance for inhouse mfg products

e separate GL account

n PO and Invoice for both cases STd price or Moving average Price
Value String
Contains the possible T.Keys and General Modifier for Specific M
Or
Grouping of T.Keys along with General Modifie
Movement Type

1 It Represents the Type of the Material Movement

Example :
261 Goods issue(GI) to the production orde
101 Goods Received from Production orde
101 Goods Received from Vendor to Stock
601 Goods Delevered (GI) to Customer

It Indicates Material movement

At the time of Material Movement , We need to select relevant

2 Movement Type contains the Pre defined Posting Rules

Movement type specifies whether to debit or
Movement type it determines the Transaction
These transaction keys and General Modifiers
Posting rule it specifies which financial accoun

3 SAP Predefined Movement Types available

4 We can define user defined movement types in addition to stan

Mov Type 101 GR either from vendor to s

 Val string
BSX
WRX
GBB-AUF
PRD-Blank
PRD-PRF

GR from Vendor to Stock Mov Type

(Purchase Order)
BSX Dr.Stock
PRD- Dr/Cr.Purchase Price diff
WRX Cr.GR/IR

GR from Prd ord to Stock Mov Type

(Prd Order)
BSX Dr.Stock
GBB-AUF Cr.COGM

Movement Indicator====> Type of Doc

Example :
Purchase Order
Production Order
Delevery Doc

It determines the relevant T.key and General Modifiers based on comb

Movement Indicator :
It represents type of Document
 Example :
It is used to differentiate the type of Ta
Example :
Movement Indicator differenti

Valuation Modifier or Valuation Grouping Code

Example :
Plant
A200
A201 Different set ofGL accounts
Co.Code AB10 A202 for AB10 company Plants
A203
A204
A205 Different set ofGL accounts
ABOP(COA) Co.Code AB20 A206 for AB20 company Plants

While mapping of GL accounts in OBYC settings

Valuation ModifT.Key GM V.Class GL accounts

General Modifier = Account Modifier ===> Further clasification of Trnsaction Keys

Valuation Level
Valuation level it specifies the Inventory to be valuated at what

1 Company Code level

 All the Stocks of Material With in Co.co

CO.code 1
Plant1
RMX
V
RMY
S
Below case not Possible
RMZ
S

Note : ===> Moving average price=>V

===> Std Price Method====>S ( Plan p
2 Plant Level
Material stock for Each Plant ca
Same Mterial can have differen

CO.code 2
Plant4
RMX
V

Valuation defination settings at Client Level. This settings its apl

Valuation Area
Valuation level determines the valuation area , Valuation area s
Example : Company Code or Plant Level

Case1 Valuation Level = Co.Code Then Valuation Are

All the Stocks of Material With in Co.co
 CO.code 1
Plant1
RMX
V
The same material across the plants within co
Not possible to maintain different price and m

Case2 Valuation Level = Plant Then Valuation Area =

Material stock for Each Plant can be va
Same Mterial can have different Valua

CO.code 2
Plant4
RMX
V 100

Possible to maintain diffeent price and Differe

al Modifier for Specific Movement Types

ng with General Modifier which is required for Specific Movment Type.

Movement

) to the production order

d from Production order to Stock
d from Vendor to Stock
ed (GI) to Customer

need to select relevant movement type, Then Goods Movement happen based on Movement

ed Posting Rules
fies whether to debit or credit to the stock
ermines the Transaction key and General Modifiers
s and General Modifiers are used in account dtermination process to determne the GL account
s which financial account to be updated i.e which consumtion and inventory account to be upda

types in addition to standard Movement Types

ther from vendor to stock or GR from Production Order to Stock

 T.Key +GM

GBB-AUF
PRD-Blank
PRD-PRF

101

101

difiers based on combination of Movment types and Movement Indicator

ype of Document
 Purchase Order, Production Order, Delevery Document
fferentiate the type of Tansaction

ment Indicator differentiate : Goods receipt for Purchase Order

Goods Reeipt for Production Order

We can address in two Ways

1 By defining Different valuation Class for company code A
ofGL accounts Not recomendable approaches
mpany Plants
2 Valuation Modifier
By using Valuation modifier , We can Group multi
ofGL accounts
mpany Plants A1===> Valuation Mdifier for Plants A200,A201,
A2===> Valuation Mdifier for Plants A203,A204,

n of Trnsaction Keys

y to be valuated at what level and also inventory prices to be managed at what level
Valuation Levels
2 Plant Level
of Material With in Co.code its valuated With same Price and also same method

CO.code 1
Plant2 Plant3
RMX RMX
100 V 100 V 100
RMY RMY
150 S 150 S 150
case not Possible
RMZ RMZ
150 V 150 S 12

erage price=>V Actual Procurement price is used to valuate Inventory

e Method====>S ( Plan price is used to valuate Inventory)

al stock for Each Plant can be valuated differently.

Mterial can have different Valuation method , Different price can have different Plant

CO.code 2
Plant5 Plant6
RMX RMX
100 S 120 V 105

evel. This settings its aplicable for all company codes

n area , Valuation area specifies Material valuation postings

Code Then Valuation Area = Co.Code

of Material With in Co.code its valuated With same Price and same method
 CO.code 1
Plant2 Plant3
RMX RMX
100 V 100 V 100
oss the plants within co.code follows the same price and same method.
ain different price and method for the same material across the plants within co.Code

t Then Valuation Area = Plant

for Each Plant can be valuated differently.
can have different Valuation method , Different price can have different Plant

Plant5 Plant6
RMX RMX
S 120 V 105

iffeent price and Different methods for the same material across the lants
ased on Movement Type

mne the GL accounts

account to be updated
or company code AB10 plant and AB20Plants

We can Group multiple plants for which you need to apply the same account determination Pro

Plants A200,A201, A202

Plants A203,A204, A205,A206
co.Code
t determination Process
CREATION OF PLANT:
IMG-->ENTERPRISE STRUCTURE-->DEFINITION-->Logistics - General-->Define, copy, delete, check plant

CREATION OF STORAGE LOCATION:

IMG-->ENTERPRISE STRUCTURE-->DEFINITION-->Materials Management-->Maintain storage location.

Maintain purchasing organization:

IMG-->ENTERPRISE STRUCTURE-->DEFINITION-->Materials Management-->Maintain purchasing organization.

Assign plant to company code:

IMG-->ENTERPRISE STRUCTURE-->ASSIGNEMENT-->Logistics - General-->Assign plant to

Assign purchasing organization to company code:

IMG-->ENTERPRISE STRUCTURE-->Assignement-->Materials Management-->Assign pur

Assign purchasing organization to plant

IMG-->ENTERPRISE STRUCTURE-->Assignement-->Materials Management-->Assign pur

Define Attributes of Material Types

IMG-->Logistics - General-->Material Master-->Basic Settings-->Material Types-->Define

Maintain Company Codes for Materials Management

IMG-->Logistics - General-->Material Master-->Basic Settings-->Maintain Company Cod

Plant Parameters
IMG-->Materials Management-->Inventory Management and Physical Inventory-->Plan

Set Tolerance Limits

IMG-->Materials Management-->Inventory Management and Physical Inventory-->Goo

Set Tolerance Limits for Price Variance

IMG-->Materials Management-->Purchasing-->Purchase Order-->Set Tolerance Limits f

Maintain Default Values for Tax Codes

IMG-->Materials Management-->Logistics Invoice Verification-->Incoming Invoice-->.M

Set Tolerance L(FOR INVOICE VERIFICATION)

IMG-->Materials Management-->Logistics Invoice Verification-->Invoice Block-->Set Tol

Define Automatic Status Change

IMG-->Materials Management-->Logistics Invoice Verification-->Invoice Verification in

Define Valuation Control

IMG-->Materials Management-->Valuation and Account Assignment-->Account Determ
Group Together Valuation Areas(SAME PATH)
IMG-->Materials Management-->Valuation and Account Assignment-->Account Determination-->Account Determination With

Define Valuation Classes(SAME PATH)

Copy, Change Movement Types OMJJ

IMG-->Materials Management-->Inventory Management and Physical Inventory-->Movement Types-->Copy, Change Moveme

pp integration:
check order type: t.code kot2
img--> controlling--> product cost controlling--> cost object controlling--> product cost by order--> manufacturing orders--> ch

Define order type-dependent parameters t.code opl8

img--> production--> shop floor control--> master data --> order--> Define order type-dependent parameters

Define Cost-Accounting-Relevant Default Values for Order Types ant.code okz3

img--> controlling--> product cost controlling--> cost object controlling--> product cost by order--> manufacturing orders--> De

Define Goods Received Valuation for Order Delivery t.code opk9

img--> controlling--> productcost controlling--> cost object controlling--> product cost by order--> Define Goods Received Valu

Define Scheduling Parameters for Production Orders t.code opu3

img--> Production--> Shop Floor Control--> Operations--> Scheduling--> Define Scheduling Parameters for Production Orders

Define Confirmation Parameters t.code opk4 or opk4n

img--> production--> shop floor control--> operations--> confirmations--> Define Confirmation Parameters

Define Checking Control t.code opjk

img--> production--> shop floor control--> operations--> availability check--> define checking control
Maintain Task List Type for Material Type(OP50)
IMG>Production>Basic data>Routing>General Data>Defn Material Type assig
Maintain Overall plant Maintaince Parameters (OPPQ)
IMG>Production>Material Requirement Planning>Plant Parameters>C

B1 Order price qty variance (GR)/E-MSG 2%

B2 Order price qty variance (GR)/W-MSG 1.50%
VP Moving average price variance 3%
PE Price variance: purchasing 4%
PP Price variance 5%
delete, check plant

g organization.

neral-->Assign plant to company code.

agement-->Assign purchasing organization to company code

agement-->Assign purchasing organization to plant

aterial Types-->Define Attributes of Material Types

aintain Company Codes for Materials Management.

ysical Inventory-->Plant Parameters

ysical Inventory-->Goods Receipt-->Set Tolerance Limits

Set Tolerance Limits for Price Variance

ncoming Invoice-->.Maintain Default Values for Tax Codes

nvoice Block-->Set Tolerance Limits.

nvoice Verification in Background-->Define Automatic Status Change

ent-->Account Determination-->Account Determination Without Wizard-->Define Valuation Con

-->Account Determination Without Wizard-->Group Together Valuation Areas

Types-->Copy, Change Movement Types

r--> manufacturing orders--> check order type.

nt parameters

r--> manufacturing orders--> Define Cost-Accounting-Relevant Default Values for Order Types and Plants.

--> Define Goods Received Valuation for Order Delivery

meters for Production Orders

Parameters
Material Type assignements

Plant Parameters>Carry out overall plant maintaince parameters

>Define Valuation Control
Plants A300 Mfg Plant-Hyd
A301 Mfg Plant- Blr
Purchase Org
A30 Purchase Org-Hyd
A31 Purchase Org- Blr
Stroage Location
10 RM
20 SFG
30 FG

Vclass Description ACR

A100 RM-Local
A101 RM-Import A1
A200 SFG-INHOUSE
A201 SFG-EXTERNAL Local
A202 SFG-EXTERNAL Import A2
A300 FG - Inhouse A3

T.Code
GR from Vendor to stock MIGO
Dr RM-Stock-Local
Dr RM-Stock-Import
Cr GR/IR
Cr GR/IR
Invoice verification ( Vendor invoice recd) MIRO
Case 1:There is no price diff between Purchase order and invoice
Dr Gr/IR(RM Local)
Dr Gr/IR (RM Import)
Cr. Vendor
Case2 : If price diff between PO and INV and full stock is available ( Moving Avg price)
Dr/Cr RM-Stock-Local
Dr/Cr RM-Stock-Import
Dr Gr/IR
Dr Gr/IR
Cr. Vendor

Case3 : If price diff between PO and INV and no stock available ( Moving avg price)

MIRO
Dr/Cr Price difference(RM Local)
Dr/Cr Price difference (RM import)
Dr Gr/IR ( RM Local)
Dr Gr/IR (RM Import)
Cr Vendor
Case4 : If price diff between PO and INV and Partial stock available
Dr/Cr RM-Stock-Local
Dr/cr RM-Stock-Import
Dr/Cr Price difference(RM Local)
Dr/Cr Price difference(RM Import)
Dr Gr/IR
Dr Gr/IR
Cr. Vendor

Issue mat to the Cost center MIGO

Dr. RM Consumption-Local
Dr. RM Consumption-Import
Cr. RM-Local
Cr. RM-Import

GI to the Prod Order MIGO

Dr. RM Consumption-Local
Dr. RM Consumption-Import
 Cr. RM-Local
Cr. RM-Import

GR from Production Order to stock

Dr. Stock-FG
Cr. COGM/Factory output of Prd

Production Variance Settelement ( MM price control S(Std price)

Dr/Cr. Prod Var

Cr/Dr. COGM-FG

Goods Delivery to the customer with ref to SO

Dr. COGS -FG

Cr. Stock-FG

Default Account assignement -OKB9

Purchase Price Diff ( CE) ===>CC======>OH Methods( Templa

Gain /Loss on Reval Inve Non Operational exp /Revenue ( Not
Gain /Loss on Stock Tran Non Operational exp /Revenue ( Not
Note :
 Material type

A10

A20

A30

m.TYPE
101 Tkey general modifier V.class
BSX A100
BSX A101
WRX A100
WRX A101
No Mov type

wrx A100
wrx A101
KBS
( Moving Avg price)
bsx A100
bsx A101
 wrx A100
wrx A101
KBS

Moving avg price)

T.key G.Modifier
prd Blank A100
prd Blank A101
wrx A100
wrx A101

G.Modifier
BSX A100
BSX A101
prd Blank A100
prd Blank A101
wrx A100
wrx A101
KBS

201 T.key Gen.Mod

GBB VBR A100

GBB VBR A101
BSX A100
BSX A101

261
GBB VBR A100
GBB VBR A101
 BSX A100
BSX A101

MIGO 101
BSX A300
GBB AUF A300

KO88/CO88

PRD PRF A300

GBB AUF A300

VL01N 601

GBB VAX/VAY A300

BSX A300

VAX: MTS
VAY : MTO ( Sales order Costing)
COPA-Costing based COPA
VAX: MTS Without cE
VAY : MTO ( Sales order Costing)
COPA-Account based COPA
VAX/VAY MTS/MTO Need to define CE

>OH Methods( Template Allo or costing sheet method)==> Prod Order (PC)
al exp /Revenue ( Not required to define CE)
al exp /Revenue ( Not required to define CE)
G/L a/c
31800
31801
41801
41802

41801
41802
A/P G/L account

31800
31801
 41801
41801
A/P G/L

Co. Entry
10020 Dr/CR.CC
10020 Dr/CR.CC
41801
41801
A/P G/L

31800
31801
10020 Dr/CR.CC
10020 Dr/CR.CC
41801
41801
A/P G/L

Co entry

10000 Dr. CC
10001 Dr. CC
31800
31801

Co Entry
10000 Dr. Prod Order
10001 Dr. Prod Order
 31800
31801

Co entry
31802
10072 Cr. Prod order

10021
10072 Cr. Prod order

10074
31802

With CE

d to define CE

der (PC)
Specify The Valuation Level

Not possble to change Valuation level after assigning of Plants to the Company
Defination is at client Level

CREATION OF PLANT:
IMG-->ENTERPRISE STRUCTURE-->DEFINITION-->Logistics - General-->D
save
CREATION OF STORAGE LOCATION:
IMG-->ENTERPRISE STRUCTURE-->DEFINITION-->Materials Management-->Maintain storage location.
Maintaince of address for Stroage location is optional.
Save
 Save

Maintain purchasing organization:

IMG-->ENTERPRISE STRUCTURE-->DEFINITION-->Materials Management-->Maintain purchasing organization.
 save

Assign plant to company code:

IMG-->ENTERPRISE STRUCTURE-->ASSIGNEMENT-->Logistics - General-->Assign plant to
 save

Assign purchasing organization to company code:

IMG-->ENTERPRISE STRUCTURE-->Assignement-->Materials Management-->Assign pur
 save

Assign purchasing organization to plant

IMG-->ENTERPRISE STRUCTURE-->Assignement-->Materials Management-->Assign pur
 Save
Purchase Org ===> N:N====> Plants

Define Attributes of Material Types

IMG-->Logistics - General-->Material Master-->Basic Settings-->Material Types-->Define
 Below is the SAP Predefined Material types

ROH RM
HALB SFG
FERT FG
DIEN Service
ERSA Spare Parts
HAWA Trading Goods
KMAT Configurable Material

Define Material type for RM with reference to ROH

 Save
Enter and Save
Select Material type then Activate Qty and Value

Save
Define Material Type for SFG
Save
 Save

Define Material Type for FG

Enter and Save
 Save

Maintain Company Codes for Materials Management

IMG-->Logistics - General-->Material Master-->Basic Settings-->Maintain Company Cod
 Note : Abp=====> Allow to post in Previouds Periods

FY2020
Apr 2020 to March 2021
Perd1 ==> April Perd 10====> Jan

Plant Parameters
IMG-->Materials Management-->Inventory Management and Physical Inventory-->Plan
Save
 Save

Define Valuation Control

IMG-->Materials Management-->Valuation and Account Assignment-->Account Determ
Group Together Valuation Areas
Define the Valation Modifier
Grouping the Plants by assigning the valuation modifier for whic
 Valuation Grp Code = Valuation Modifier
Define Valuation Classes
Define Account Category Reference

save
Define Valuation Class
 Save

Assignement of ACR to the Marerial Type

 Save

Set Tolerance Limits

IMG-->Materials Management-->Inventory Management and Physical Inventory-->Goo
Save
Save
Save
Set Tolerance Limits for Price Variance
IMG-->Materials Management-->Purchasing-->Purchase Order-->Set Tolerance Limits f
 Save

Maintain Default Values for Tax Codes

IMG-->Materials Management-->Logistics Invoice Verification-->Incoming Invoice-->.M
 Save
Set Tolerance L(FOR INVOICE VERIFICATION)
IMG-->Materials Management-->Logistics Invoice Verification-->Invoice Block-->Set Tol
 Save
Define Automatic Status Change
IMG-->Materials Management-->Logistics Invoice Verification-->Invoice Verification in
Save
ts to the Company codes and also After creation of Master data and Transaction data

tics - General-->Define, copy, delete, check plant

ation is optional.
al-->Assign plant to company code.
ment-->Assign purchasing organization to company code
ment-->Assign purchasing organization to plant
erial Types-->Define Attributes of Material Types
vate Qty and Value Fields
ntain Company Codes for Materials Management.
al Inventory-->Plant Parameters
-->Account Determination-->Account Determination Without Wizard-->Define Valuation Contro
n modifier for which plants need to apply the same accoutning determination.
al Inventory-->Goods Receipt-->Set Tolerance Limits
t Tolerance Limits for Price Variance
oming Invoice-->.Maintain Default Values for Tax Codes
oice Block-->Set Tolerance Limits.
oice Verification in Background-->Define Automatic Status Change
tion data
ne Valuation Control
FS00
31800 RM-Stock-Local BS Post Automatic
31801 RM-Stock-Import BS Post Automatic
31802 SFG-Stock- Local BS Post Automatic
31803 SFG-Stock- Import BS Post Automatic
31804 SFG-Stock- Inhouse Mfg BS Post Automatic
31805 FG-Stock BS Post Automatic
41801 GR/IR-Local BS-Lia Post Automatic
41802 GR/IR-Import BS-Lia Post Automatic
10020 Purcase Price Difference P&L Exp
10021 Production Variance P&L-Exp
10022 Exchange rate diff for MM P&L Exp
10071 COGM-SFG P&L Exp CE with Categor
10072 COGM-FG P&L Exp CE with Categor
10073 COGS-SFG Case1 COGS Without C
10074 COGS-FG Case1 COGS Without C
10023 Gain / Loss on Stock Transfer P&L Exp Plan1
( W/O CE)

10024 Gain /Loss on Stock Valuation P&l Exp witout CE

10025 Physical Inventory differences P&L Exp With CE

10026 Scrap of Material P&L Exp With CE

10027 Subcontract / Process charges P&L Exp With CE

Post Automatic Indictor Tax Indicator No OpItem Management
Post Automatic Indictor Tax Indicator No OpItem Management
Post Automatic Indictor Tax Indicator No OpItem Management
Post Automatic Indictor Tax Indicator No OpItem Management
Post Automatic Indictor Tax Indicator No OpItem Management
Post Automatic Indictor Tax Indicator No OpItem Management
Post Automatic Indictor Tax Indicator Op Item Managemt
Post Automatic Indictor Tax Indicator Op Item Managemt
Case1 : CE required if ML actual Costing Not Activated Case2 : CE not required if
Case1: CE Not required if Don't want update to the Account Case2: CE required if you
Case1 : CE required if ML actual Costing Not Activated Case2 : CE not required if
CE with Category1
CE with Category1
COGS Without CE====> NO account Based COPA and MTS Case2 COGS With CE====> accou
COGS Without CE====> NO account Based COPA and MTS Case2 COGS With CE====> accou
Plant2
FGX S1000 FGX S1200

Dr. Stock Plant2 1200

Cr. Gain on Stock Trans 200 ===> Non Operational expences / Gain=
Cr. Stock Plant1 1000

witout CE ===> Non Operational expences / Gain===> Not required CE

FGX S 1000 10PC 10000
Increase Price 1050 10500 Stock value becomes 10500
500 Gain on Revaluation of Stock ===> Non Operati

With CE
With CE

With CE
 Only Balance in Local Currency
Only Balance in Local Currency
CE not required if ML actual Costing Activated
CE required if you want to update to the Account Based COPA
CE not required if ML actual Costing Activated

With CE====> account Based COPA ( MTS & MTO) , MTO(Make to Order scenario)
With CE====> account Based COPA ( MTS & MTO) , MTO(Make to Order scenario)

al expences / Gain===> Not required CE

===> Non Operational expences / Gain===> Not required CE

FIMM Integration
GR from Vendor to stock
Dr RM-Stock-Local
Dr RM-Stock-Import
Cr GR/IR
Cr GR/IR
Save
 Save

WRX GR/IR
 Save

Invoice verification ( Vendor invoice recd) MIRO No Mov type

Case 1:There is no price diff between Purchase order and invoice
Dr Gr/IR(RM Local)
Dr Gr/IR (RM Import)
Cr. Vendor
Case2 : If price diff between PO and INV and full stock is available (V--> Moving Avg pric
Dr RM-Stock-Local
Dr RM-Stock-Import
Dr Gr/IR
Dr Gr/IR
Cr. Vendor
PO Price
Assume PO Price RMX 10Kg
RMY 10kg

Note : Already Maping Done

Case3 : If price diff between PO and INV and no stock available ( Moving avg price)

MIRO
Dr/Cr Price difference(RM Local)
Dr/Cr Price difference (RM import)
Dr Gr/IR ( RM Local)
Dr Gr/IR (RM Import)
Cr Vendor
save

PRD-PRF

It Trigers at the time of

Entry for Production

PRD-PRF Dr. Produc
GBB-AUF Cr. COGM (

FGX --> St
Actua
Prod
save

GBB-AUF Can be used At the time of GR fromPro

At The time GR from Prd Order to Stock

FI entry
BSX Dr. Stock-FG
GBB-AUF Cr. COGM

At the time of Order s

PRD-PRF Dr. Produc
GBB-AUF Cr. COGM (

FGX --> St
Actua
Prod
save
save
 save

Case4 : If price diff between PO and INV and Partial stock available
Dr/Cr RM-Stock-Local
Dr/cr RM-Stock-Import
Dr/Cr Price difference(RM Local)
Dr/Cr Price difference(RM Import)
Dr Gr/IR
Dr Gr/IR
Cr. Vendor

PO Price
RMX 10kg 100
RMY 10kg 300

RM X Price Diff
RMY Price Diff

Already Mapping Done

Issue mat to the Cost center MIGO 201

Dr. RM Consumption-Local
Dr. RM Consumption-Import
Cr. RM-Local
Cr. RM-Import
 save
GI to the Prod Order MIGO
Dr. RM Consumption-Local
Dr. RM Consumption-Import
Cr. RM-Local
Cr. RM-Import

Note : Mapping already Done

Goods Delivery to the customer with ref to SO

Dr. COGS -FG

Cr. Stock-FG

COPA-Costing based COPA

COPA-Account based COPA

VAX: MTS
Save
OBYC

OR
MM Path
Check Help Document
 T.Code m.TYPE
MIGO 101 Tkey general modiV.class G/L a/c
tock-Local BSX A100 31800 1000
tock-Import BSX A101 31801 3000
WRX A100 41801 1000
WRX A101 41802 3000
Mov type

wrx A100 41801

wrx A101 41802
KBS A/P G/L account
 (V--> Moving Avg price) Amount
bsx A100 31800 50
bsx A101 31801 200
wrx A100 41801 1000
wrx A101 41802 3000
KBS A/P G/L 4250
PO Price Invoice Pric Value Price Diff
100 1000 105 1050 50
300 3000 320 3200 200
.

Moving avg price) Note : Assume Material already issued to te production and
There is no stock at the time of Invoice
T.key G.Modifier
prd Blank A100 10020 50
prd Blank A101 10020 200
wrx A100 41801 1000
wrx A101 41802 3000
A/P G/L 4250
 Production Variance

gers at the time of settelement of Order if any difference between STD price and Act

ntry for Production Variance

2000
2000 Cr. Prd Order 2000

10000
12000
2000
he time of GR fromProduction Order to Stock and also at the time of production variance settele

om Prd Order to Stock Mov Type ==>101

Co Entry

Cr. Prd Order

the time of Order settelement ==> Entry for Production Variance

2000
2000 Cr. Prd Order 2000

10000
12000
2000
 G.Modifier INR
BSX A100 31800 20
BSX A101 31801 100
prd Blank A100 10020 30 Dr/CR.CC 30
prd Blank A101 10020 100 Dr/CR.CC 100
wrx A100 41801 1000
wrx A101 41802 3000
KBS A/P G/L 4250

Price Invoice Price diff

1000 10kg 1051050 50
3000 10kg 3203200 200
RMX RMY-5Kg Consumed-5Kg
INR Stock qty-4Kg Consumed-6Kg
50 20 30 ==> 30 Trd to Puchase Price Difference
200 100 100 ==> 100 Trd to Puchase Price Difference

T.key Gen.Mod Co entry

GBB VBR A100 10000 Dr. CC

GBB VBR A101 10001 Dr. CC
BSX A100 31800
BSX A101 31801
 261 Co Entry
tion-Local GBB VBR A100 10000 Dr. Prod Order
tion-Import GBB VBR A101 10001 Dr. Prod Order
BSX A100 31800
BSX A101 31801

lready Done

VL01N 601

GBB VAX/VAY A300 10074

BSX A300 31802

VAX: MTS Without CE

VAY : MTO ( Sales order Costing)
-Costing based COPA
VAX: MTS Without cE
VAY : MTO ( Sales order Costing) With CE
-Account based COPA
VAX/VAY MTS/MTO Need to define CE

Without CE
ed to te production and Received Invoice later

Co. Entry
Dr/CR.CC 50
Dr/CR.CC 200
( It post to the cost center as per OKB9 settings)
een STD price and Actual cost of Prodction
oduction variance settelement
 Stock Goods issued to Prd

4kg 6Kg
5kg 5Kg

uchase Price Difference

Puchase Price Difference
Configure Automatic Postings

In this step, you enter the system settings for Inventory Management and Invoice Verification transactions for automatic postings to G/L accounts.

You can then check your settings using a simulation function.

Under Further information there is a list of transactions in Materials Management and their definitions.

What are automatic postings?

Postings are made to G/L accounts automatically in the case of Invoice Verification and Inventory Management transactions relevant to Financial

Example:
Posting lines are created in the following accounts in the case of a goods issue for a cost center:

Stock account

Consumption account

How does the system find the relevant accounts?

When entering the goods movement, the user does not have to enter a G/L account, since the ERP system automatically finds the accounts to wh

Chart of accounts of the company code

If the user enters a company code or a plant when entering a transaction, the ERP system determines the chart of accounts which is valid for th

You must define the automatic account determination individually for each chart of accounts.

Valuation grouping code of the valuation area

If the automatic account determination within a chart of accounts is to run differently for certain company codes or plants (valuation areas), assig

You must define the automatic account determination individually for every valuation grouping code within a chart of accounts. It applies to all v

If the user enters a company code or a plant when entering a transaction, the system determines the valuation area and the valuation grouping

Transaction/event key (internal processing key)

Posting transactions are predefined for those inventory management and invoice verification transactions relevant to accounting. Posting record

You do not have to define these transaction keys, they are determined automatically from the transaction (invoice verification) or the movement

Account grouping (only for offsetting entries, consignment liabilities, and price differences)

Since the posting transaction "Offsetting entry for inventory posting" is used for different transactions (for example, goods issue, scrapping, phys
 An account grouping is assigned to each movement type in inventory management which uses the posting transaction "Offsetting entry for inve

Under the posting transaction "Offsetting entry for inventory posting", you must assign G/L accounts for every account grouping, that is, assign G

If you wish to post price differences to different price difference accounts in the case of goods receipts for purchase orders, goods receipts for o

Using the account grouping, you can also have different accounts for consignment liabilities and pipeline liabilities.

Valuation class of material or (in case of split valuation) the valuation type

The valuation class allows you to define automatic account determination that is dependent on the material. for example: you post a goods rece

You can achieve this by assigning different valuation classes to the materials and by assigning different G/L accounts to the posting transaction

If you do not want to differentiate according to valuation classes you do not have to maintain a valuation class for a transaction.

Requirements

Before you maintain automatic postings, you must obtain the following information:

1. Valuation level ( plant or company code)

Establish whether the materials are valuated at plant or at company code level

When valuation is at plant level, the valuation area corresponds to a plant.

When valuation is at company code level, the valuation area corresponds to a company code.

Define valuation level

2. Chart of accounts and valuation grouping code per valuation area

Find out whether the valuation grouping code is active.

Activate split valuation

If it is not active, determine the chart of accounts assigned to each valuation area (via the company code).

If it is active, determine the chart of accounts and the valuation grouping code assigned to each valuation area.

Group valuation areas

You must define a separate account determination process for chart of accounts and each valuation grouping code.

3. Valuation class per material type

If you wish to differentiate the account determination process for specific transactions according to valuation classes, find out which valuation cl
 Define valuation classes

4. Account grouping for offsetting entries to stock accounts

Under Define account grouping for movement types, determine for which movement types an account grouping is defined f

Default settings

G/L account assignments for the charts of accounts INT and the valuation grouping code 0001 are SAP standard.

Activities

1. Create account keys for each chart of accounts and each valuation grouping code for the individual posting transactions. To do so, proceed a

a) Call up the activity Configure Automatic Postings.

The ERP system first checks whether the valuation areas are correctly maintained. If, for example, a plant is not assigned to a company code

From this box, choose Continue (next entry) to continue the check.

Choose Cancel to end the check.

The configuration menu Automatic postings appears.

b) Choose Goto -> Account assignment.

A list of posting transactions in Materials Management appears. For further details of the individual transactions, see Furth

The Account determination indicator shows whether automatic account determination is defined for a transaction.

c) Choose a posting transaction.

A box appears for the first posting transaction. Here you can enter a chart of accounts.

You can enter the following data for each transaction:

Rules for account number assignments

With Goto -> Rules you can enter the factors on which the account number assignments depend:

- debit/credit indicator

- general grouping (= account grouping)

- valuation grouping

- valuation class
 Posting keys for the posting lines

Normally you do not have to change the posting keys. If you wish to use new posting keys, you have to define them in the Customizing syste

Account number assignments

You must assign G/L accounts for each transaction/event key (except KBS). You can assign these accounts manually or copy them from ano

If you want to differentiate posting transactions (e.g. inventory postings) according to valuation classes, you must make an account assignmen

Using the posting transaction "Offsetting entry for inventory posting", you have to make an account assignment for each account grouping

If the transaction PRD (price differences) is also dependent on the account grouping, you must create three account assignments:

- an account assignment without account grouping

- an account assignment with account grouping PRF

- an account assignment with account grouping PRA

If the transaction KON (consignment and pipeline liabilities) is also dependent on the account grouping, you must create two account assignm

- an account assignment without account grouping (consignment)

- an account assignment with account grouping (pipeline)

d) Save your settings.

2. Then check your settings with the simulation function.

With the simulation function, you can simulate the following:

Inventory Management transactions

Invoice Verification transactions

When you enter a material or valuation class, the ERP system determines the G/L accounts which are assigned to the corresponding posting tr

In the simulation you can compare the field selection of the movement type with that of the individual accounts and make any corrections.

If you want to print the simulation, choose Simulation -> Report.

To carry out the simulation, proceed as follows:

a) Choose Settings to check the simulation defaults for

- the application area (Invoice Verification or Inventory Management)
- the input mode (material or valuation class)
- account assignment
 Instructions

b) Choose Goto -> Simulation.

The screen for entering simulation data appears.

c) Depending on the valuation level, enter a plant or a company code on the screen.

d) When you simulate Inventory Management transactions, goods movements are simulated. The ERP system suggests the first movement ty

When you simulate Invoice Verification transactions, a list appears on the screen of the possible transaction types. Select a line.

e) Then choose Goto -> Account assignments.

A list appears of the posting lines which can be created by the selected transaction. For each posting line, the G/L account for the debit postin

f) From this screen, choose Goto -> Movement+ to get a list of the posting lines for the next movement type or transaction type.

If you work with valuation classes, choose Goto -> Valuation class+ to receive the simulation for the next valuation class. This function is not p

Choose Goto -> Check screen layout to compare the movement type with the G/L accounts determined by the system and make any necessa

Note

The simulation function does NOT obviate the need for a trial posting!

Further notes

The following list shows the individual transactions with examples of how they are used. The transaction/event key is specified in brackets.

Agency business: income (AG1)

This transaction can be used in agency business for income deriving from commission (e.g. del credere commission). The account key is used

Agency business: turnover (AG2)

This transaction can be used in agency business if turnover (business volume) postings are activated in Customizing for the payment types. Th

Agency business: expense (AG3)

This transaction can be used in agency business for commission expenses. The account key is used in the calculation schemas for agency bus

Expense/revenue from consumption of consignment material (AKO)

This transaction is used in Inventory Management in the case of withdrawals from consignment stock or when consignment stock is transferred

Expenditure/income from transfer posting (AUM)

This transaction is used for transfer postings from one material to another if the complete value of the issuing material cannot be posted to the v

Provisions for subsequent (end-of-period rebate) settlement (BO1)

If you use the "subsequent settlement" function with regard to conditions (e.g. for period-end volume-based rebates), provisions for accrued inco

Income from subsequent settlement (BO2)

The rebate income generated in the course of "subsequent settlement" (end-of-period rebate settlement) is posted via this transaction.

Income from subsequent settlement after actual settlement (BO3)

If a goods receipt occurs after settlement accounting has been effected for a rebate arrangement, no further provisions for accrued rebate incom

Supplementary entry for stock (BSD)

This account is posted when closing entries are made for a cumulation run. This account is a supplementary account to the stock account; that

Change in stock (BSV)

Changes in stocks are posted in Inventory Management at the time goods receipts are recorded or subsequent adjustments made with regard t

If the account assigned here is defined as a cost element, you must specify a preliminary account assignment for the account in the table of aut

Stock posting (BSX)

This transaction is used for all postings to stock accounts. Such postings are effected, for example:

In inventory management in the case of goods receipts to own stock and goods issues from own stock

In invoice verification, if price differences occur in connection with incoming invoices for materials valuated at moving average price and there

In order settlement, if the order is assigned to a material with moving average price and the actual costs at the time of settlement vary from the

Because this transaction is dependent on the valuation class, it is possible to manage materials with different valuation classes in separate stoc

Caution

Take care to ensure that:

A stock account is not used for any transaction other than BSX

Postings are not made to the account manually

The account is not changed in the productive system before all stock has been booked out of it

Otherwise differences would arise between the total stock value of the material master records and the balance on the stock account.
Account determination of valuated sales order stock and project stock

Note that for valuated sales order stock and project stock (special stock E and Q) and for the transaction/event keys BSX and GBB, you must m
During data entry, the system attempts to execute a provisional account determination for GBB for valuated stock. The system will only replace

Revaluation of other consumption (COC)

This transaction/event key is required for the revaluation of consumption in Actual Costing/Material Ledger.

Revaluation of consumption valuates single-level consumption using the actual prices determined in the Actual Costing/Material Ledger applica

The header account is determined using the transaction/event key COC.

Del credere (DEL)

Transaction/event key for the payment/invoice list documents in Purchasing. The account key is needed in the calculation schema for payment/

Small differences, Materials Management (DIF)

This transaction is used in Invoice Verification if you define a tolerance for minor differences and the balance of an invoice does not exceed the

Purchase account(EIN), purchase offsetting account (EKG), freight purchase account (FRE)

These transactions are used only if Purchase Account Management is active in the company code.

Note

Due to special legal requirements, this function was developed specially for certain countries (Belgium, Spain, Portugal, France, Italy, and Finla

Before you use this function, check whether you need to use it in your country.

Freight clearing (FR1), provision for freight charges (FR2), customs duty clearing (FR3), provision for customs duty (FR4)

These transactions are used to post delivery costs (incidental procurement costs) in the case of goods receipts against purchase orders and inc

You can also enter your own transactions for delivery costs in condition types.

External service (FRL)

The transaction is used for goods and invoice receipts in connection with subcontract orders.

If the account assigned here is defined as a cost element, you must specify a preliminary account assignment for the account in the table of aut

External service, delivery costs (FRN)

This transaction is used for delivery costs (incidental costs of procurement) in connection with subcontract orders.
If the account assigned here is defined as a cost element, you must specify a preliminary account assignment for the account in the table of aut

Offsetting entry for stock posting (GBB)

Offsetting entries for stock postings are used in Inventory Management. They are dependent on the account grouping to which each movement

AUA: for order settlement

AUF: for goods receipts for orders (without account assignment)

and for order settlement if AUA is not maintained

AUI: Subsequent adjustment of actual price from cost center directly

to material (with account assignment)

BSA: for initial entry of stock balances

INV: for expenditure/income from inventory differences

VAX: for goods issues for sales orders without

account assignment object (the account is not a cost element)

VAY: for goods issues for sales orders with

account assignment object (account is a cost element)

VBO: for consumption from stock of material provided to vendor

VBR: for internal goods issues (for example, for cost center)

VKA: for sales order account assignment

(for example, for individual purchase order)

VKP: for project account assignment (for example, for individual PO)

VNG: for scrapping/destruction

VQP: for sample withdrawals without account assignment

VQY: for sample withdrawals with account assignment

ZOB: for goods receipts without purchase orders (mvt type 501)

ZOF: for goods receipts without production orders

(mvt types 521 and 531)

You can also define your own account groupings. If you intend to post goods issues for cost centers (mvt type 201) and goods issues for orders

Caution
If you use goods receipts without a purchase order in your system (movement type 501), you have to check to which accounts the account grou

If you expect invoices for the goods receipts, and these invoices can only be posted in Accounting, you can enter a clearing account (similar to

Note that the goods movement is valuated with the valuation price of the material if no external amount has been entered.

As no account assignment has been entered in the standard system, the assigned account is not defined as a cost element. If you assign a cos

Account determination of valuated sales order stock and project stock

Note that for valuated sales order stock and project stock (special stock E and Q) and for the transaction/event keys BSX and GBB, you must m
During data entry, the system attempts to execute a provisional account determination for GBB for valuated stock. The system will only replace

Purchase order with account assignment (KBS)

You cannot assign this transaction/event key to an account. It means that the account assignment is adopted from the purchase order and is us

Exchange Rate Differences Materials Management(AVR) (KDG)

When you carry out a revaluation of single-level consumption in the material ledger for an alternative valuation run, the exchange rate difference

Exchange rate differences in the case of open items (KDM)

Exchange rate differences in the case of open items arise when an invoice relating to a purchase order is posted with a different exchange rate

Differences due to exchange rate rounding, Materials Management (KDR)

An exchange rate rounding difference can arise in the case of an invoice made out in a foreign currency. If a difference arises when the posting

Exchange Rate Differences from Lower Levels (KDV)

In multi-level periodic settlement in the material ledger, some of the exchange rate differences that have been posted during the period in respe

Consignment liabilities (KON)

Consignment liabilities arise in the case of withdrawals from consignment stock or from a pipeline or when consignment stock is transferred to o

Depending on the settings for the posting rules for the transaction/event key KON, it is possible to work with or without account modification. If y

None for consignment liabilities

PIP for pipeline liabilities

Offsetting entry for price differences in cost object hierarchies (KTR)

The contra entry for price difference postings (transaction PRK) arising through settlement via material account determination is carried out with

Accruals and deferrals account (material ledger) (LKW)

If the process of material price determination in the material ledger is not accompanied by revaluation of closing stock, the price and exchange r

If, on the other hand, price determination in the material ledger is accompanied by revaluation of the closing stock, the price and exchange rate

Price Difference from Exploded WIP (Lar.) (PRA)

If you use the WIP revaluation of the material ledger, the price variances of the exploded WIP stock of an activity type or a business process are

Differences (AVR Price) (PRC)

In the alternative valuation run in the material ledger, some of the variances that accrue interest in the cost centers, are transfer posted to the se

Price differences (PRD)

Price differences arise for materials valuated at standard price in the case of all movements and invoices with a value that differs from the stand

Price differences can also arise in the case of materials with moving average price if there is not enough stock to cover the invoiced quantity. In

Depending on the settings for the posting rules for transaction/event key PRD, it is possible to work with or without account modification. If you u

None for goods and invoice receipts against purchase orders

PRF for goods receipts against production orders and

order settlement

PRA for goods issues and other movements

PRU for transfer postings (price differences in the case

of external amounts)

Price Differences (Material Ledger, AVR) (PRG)

When you carry out a revaluation of single-level consumption in the material ledger during the alternative valuation run, the price difference acc

Price differences in cost object hierarchies (PRK)

In cost object hierarchies, price differences occur both for the assigned materials with standard price and for the accounts of the cost object hier

Price Difference from Exploded WIP (Mat.) (PRM)

If you use the WIP revaluation of the material ledger, the price and exchange rate differences of the exploded WIP stock of a material are poste

Price differences, product cost collector (PRP)

During settlement accounting with regard to a product cost collector in repetitive manufacturing, price differences are posted with the transaction

This transaction is currently used in the following instances only:

- Production cost collector in Release 4.0

- Product cost collector in IS Automotive Release 2.0 (product cost collector in connection with APO)

Offsetting entry: price differences, product cost collector (PRQ)

The offsetting (contra) entry to price difference postings (transaction PRP) in the course of settlement accounting with respect to a product cost

This transaction is currently used in the following instances only:

- Production cost collector in Release 4.0

- Product cost collector in IS Automotive Release 2.0 (product cost collector in connection with APO)

Price Differences from Lower Levels (PRV)

In multi-level periodic settlement in the material ledger, some of the price differences posted during the period in respect of the raw materials, se

Price differences for material ledger (PRY)

In the course of settlement in the material ledger, price differences from the material ledger are posted with the transaction PRY.

Expense and revenue from revaluation (retroactive pricing, RAP)

This transaction/event key is used in Invoice Verification within the framework of the revaluation of goods and services supplied for which settle

At the time of the revaluation, the amounts determined or portions thereof) are posted neither to material stock accounts nor to price difference

Invoice reductions in Logistics Invoice Verification (RKA)

This transaction/event key is used in Logistics Invoice Verification for the interim posting of price differences in the case of invoice reductions.

If a vendor invoice is reduced, two accounting documents are automatically created for the invoice document. With the first accounting documen

Provision for delivery costs (RUE)

Provisions are created for accrued delivery costs if a condition type for provisions is entered in the purchase order. They must be cleared manu

Taxes in case of transfer posting GI/GR (TXO)

This transaction/event key is only relevant to Brazil (nota fiscal).

Revenue/expense from revaluation (UMB)

This transaction/event key is used both in Inventory Management and in Invoice Verification if the standard price of a material has been change

Expenditure/income from revaluation (UMD)

This account is the offsetting account for the BSD account. It is posted during the closing entries for the cumulation run of the material ledger an

Unplanned delivery costs (UPF)

Unplanned delivery costs are delivery costs (incidental procurement costs) that were not planned in a purchase order (e.g. freight, customs duty

Input tax, Purchasing (VST)

Transaction/event key for tax account determination within the "subsequent settlement" facility for debit-side settlement types. The key is neede

Inflation posting (WGB)

Transaction/event key that posts inflation postings to a different account, within the handling of inflation process for the period-end closing.

Goods issue, revaluation (inflation) (WGI)

This transaction/event key is used if already-posted goods issues have to be revaluated following the determination of a new market price within

Goods receipt, revaluation (inflation) (WGR)

This transaction/event key is used if already-effected transfer postings have to be revaluated following the determination of a new market price

WIP from Price Differences (Internal Activity) (WPA)

When you use the WIP revaluation of the material ledger, the price variances from the actual price calculation that are to be assigned to the WIP

WIP from Price Differences (Material) (WPM)

When you use the WIP revaluation of the material ledger, the price and exchange rate differences that are to be assigned to the WIP stock of a

GR/IR clearing (WRX)

Postings to the GR/IR clearing account occur in the case of goods and invoice receipts against purchase orders. For more on the GR/IR clearin

Caution

You must set the Balances in local currency only indicator for the GR/IR clearing account to enable the open items to be clea

GR/IR clearing for material ledger (WRY)

This transaction/event key is not used from Release 4.0 onwards.

Prior to 4.0, it was used for postings to the GR/IR clearing account if the material ledger was active. As of Release 4.0, the transaction is no long

Customers who used the transaction WRY prior to Release 4.0 must make a transfer posting from the WRY account to the WRX account in ord
utomatic postings to G/L accounts.

t transactions relevant to Financial and Cost Accounting.

omatically finds the accounts to which postings are to be made using the following data:

art of accounts which is valid for the company code.

es or plants (valuation areas), assign different valuation grouping codes to these valuation areas.

chart of accounts. It applies to all valuation areas which are assigned to this valuation grouping code.

n area and the valuation grouping code.

evant to accounting. Posting records, which are generalized in the value string, are assigned to each relevant movement type in inventory management and eac

oice verification) or the movement type (inventory management). All you have to do is assign the relevant G/L account to each posting transaction.

mple, goods issue, scrapping, physical inventory), which are assigned to different accounts (for example, consumption account, scrapping, expense/income fro
ansaction "Offsetting entry for inventory posting".

account grouping, that is, assign G/L accounts.

chase orders, goods receipts for orders, or other movements, you can define different account grouping codes for the transaction key.

or example: you post a goods receipt of a raw material to a different stock account than if the goods receipt were for trading goods, even though the user enters

accounts to the posting transaction for every valuation class.

s for a transaction.

classes, find out which valuation classes are possible for each material type.
 account grouping is defined for the transaction/event keys GGB (offsetting entry to stock posting), KON (consignment liabilities) and PRD

g transactions. To do so, proceed as follows:

s not assigned to a company code, a dialog box and an error message appear.

ividual transactions, see Further information.

fine them in the Customizing system of Financial Accounting.

s manually or copy them from another chart of accounts via Edit -> Copy.

u must make an account assignment for each valuation class.

ment for each account grouping

e account assignments:

u must create two account assignments:

ned to the corresponding posting transactions. Depending on the configuration, the SAP system checks whether the G/L account exists

s and make any corrections.

 tem suggests the first movement type for simulation. If several movements are possible with this movement type, you can select a line.

n types. Select a line.

he G/L account for the debit posting as well as the G/L account for the credit posting are displayed.

e or transaction type.

aluation class. This function is not possible when simulating with material numbers.

the system and make any necessary corrections.

key is specified in brackets.

mission). The account key is used in the calculation schemas for agency business to determine the associated revenue accounts.

omizing for the payment types. The account key is specified in Customizing for the billing type.

alculation schemas for agency business to determine the associated expense accounts.

n consignment stock is transferred to own stock if the material is subject to standard price control and the consignment price differs from the standard price.
 material cannot be posted to the value of the receiving material. This applies both to materials with standard price control and to materials with moving average

ebates), provisions for accrued income are set up when goods receipts are recorded against purchase orders if this is defined for the condition type.

osted via this transaction.

provisions for accrued rebate income can be managed by the "subsequent settlement" facility. No postings should be made to the account normally used for su

account to the stock account; that is, the stock account is added to it to determine the stock value that was calculated via the cumulation. In the process, the va

nt adjustments made with regard to subcontract orders.

t for the account in the table of automatic account assignment specification (Customizing for Controlling) in order to be able to post goods receipts against subc

at moving average price and there is adequate stock coverage

the time of settlement vary from the actual costs at the time of goods receipt

valuation classes in separate stock accounts.

ce on the stock account.

nt keys BSX and GBB, you must maintain an account determination to avoid receiving warning messages when entering data (purchase order or transfer posti
tock. The system will only replace the provisional account determination for GBB with the correct account determination for the stock account (BSX), in the bac

ual Costing/Material Ledger application. This revaluation can either take place in the account where the original postings were made, or in a header account.

e calculation schema for payment/settlement processing to determine the associated revenue accounts.

of an invoice does not exceed the tolerance.

n, Portugal, France, Italy, and Finland).

customs duty (FR4)

ts against purchase orders and incoming invoices. Which transaction is used for which delivery costs depends on the condition types defined in the purchase o

t for the account in the table of automatic account assignment specification (Customizing for Controlling) in order to be able to post goods receipts against subc
t for the account in the table of automatic account assignment specification (Customizing for Controlling) in order to be able to post goods receipts against subc

grouping to which each movement type is assigned. The following account groupings are defined in the standard system:

e 201) and goods issues for orders (mvt type 261) to separate consumption accounts, you can assign the account grouping ZZZ to movement type 201 and acc
o which accounts the account groupings are assigned ZOB

nter a clearing account (similar to a GR/IR clearing account though without open item management), which is cleared in Accounting when you post the vendor

een entered.

a cost element. If you assign a cost element, you have to enter an account assignment via the field selection or maintain an automatic account assignment for t

nt keys BSX and GBB, you must maintain an account determination to avoid receiving warning messages when entering data (purchase order or transfer posti
tock. The system will only replace the provisional account determination for GBB with the correct account determination for the stock account (BSX), in the bac

from the purchase order and is used for the purpose of determining the posting keys for the goods receipt.

n run, the exchange rate difference accounts of the materials are credited with the exchange rate differences that are to be assigned to the consumption.

sted with a different exchange rate to that of the goods receipt and the material cannot be debited or credited due to standard price control or stock undercovera

difference arises when the posting lines are translated into local currency (as a result of rounding), the system automatically generates a posting line for this rou

n posted during the period in respect of the raw materials, semifinished products and cost centers performing the activity used in the manufacture of a semifinish

nsignment stock is transferred to own stock.

or without account modification. If you work with account modification, the following modifications are available in the standard system:

nt determination is carried out with transaction KTR.

 ng stock, the price and exchange rate differences that should actually be applied to the stock value are contra-posted to accounts with the transaction/event ke

stock, the price and exchange rate differences are posted to the stock account (i.e. the stock is revalued).

vity type or a business process are posted to the price differences account with transaction/event key PRA.

enters, are transfer posted to the semifinished or finished product.

h a value that differs from the standard price. Examples: goods receipts against purchase orders (if the PO price differs from the standard pricedardpreis), good

k to cover the invoiced quantity. In the case of goods movements in the negative range, the moving average price is not changed. Instead, any price difference

thout account modification. If you use account modification, the following modifications are available in the standard system:

uation run, the price difference accounts of the materials are credited with the price differences that are to be assigned to the consumption.

the accounts of the cost object hierarchy. In the course of settlement for cost object hierarchies after settlement via material account determination, the price dif

d WIP stock of a material are posted to the price difference account with transaction/event key PRM.

ces are posted with the transaction PRP in the case of the valuated sales order stock.
 ting with respect to a product cost collector in repetitive manufacturing in the case of the valuated sales order stock is carried out via transaction PRQ.

d in respect of the raw materials, semifinished products, and cost centers performing the activity used in a semifinished or finished product, are transfer posted t

he transaction PRY.

d services supplied for which settlement has already taken place. Any difference amounts determined are posted to the accounts assigned to the transaction/ev

k accounts nor to price difference accounts. The full amount is always posted to the "Expense from Revaluation" or "Revenue from Revaluation" account. The o

n the case of invoice reductions.

. With the first accounting document, the amount invoiced is posted in the vendor line. An additional line is generated on the invoice reduction account to partia

order. They must be cleared manually at the time of invoice verification.

rice of a material has been changed and a movement or an invoice is posted to the previous period (at the previous price).
ulation run of the material ledger and has to be defined for the same valuation areas.

se order (e.g. freight, customs duty). In the SAP posting transaction in Logistics Invoice Verification, instead of distributing these unplanned delivery costs amon

settlement types. The key is needed in the settlement schema for tax conditions.

ss for the period-end closing.

ination of a new market price within the framework of inflation handling.

termination of a new market price within the framework of inflation handling. This transaction is used for the receiving plant, whereas transaction WGI (goods re

n that are to be assigned to the WIP stock, an activity type or a business process are posted to the WIP account for activities.

be assigned to the WIP stock of a material are posted to the WIP account for material.

ers. For more on the GR/IR clearing account, refer to the SAP Library (documentation MM Material Valuation).

nable the open items to be cleared. For more on this topic, see the field documentation.

ease 4.0, the transaction is no longer necessary, since postings to the GR/IR account in parallel currencies are possible.

account to the WRX account in order to ensure that the final balance on the WRY account is zero.
e in inventory management and each transaction in invoice verification. These contain keys for the relevant posting transaction (for example, inventory posting a

ch posting transaction.

unt, scrapping, expense/income from inventory differences), it is necessary to divide the posting transaction according to a further key: account grouping code.
goods, even though the user enters the same transaction for both materials.
nsignment liabilities) and PRD (price differences).
differs from the standard price.
d to materials with moving average price control. Price differences can arise for materials with moving average price if stock levels are negative and the stock v

d for the condition type.

o the account normally used for such provisions. As an alternative, you can use this transaction to post provisions for accrued rebate income to a separate acco

cumulation. In the process, the various valuation areas (for example, commercial, tax), that are used in the balance sheet are taxed separately.

o post goods receipts against subcontract orders. In the standard system, cost center SC-1 is defined for this purpose.
a (purchase order or transfer posting) for valuated stock.
he stock account (BSX), in the background, if you enter the data for valuated stock at a later point in time.

e made, or in a header account.

on types defined in the purchase order.

o post goods receipts against subcontract orders. In the standard system, cost center SC-1 is defined for this purpose.
o post goods receipts against subcontract orders. In the standard system, cost center SC-1 is defined for this purpose.

ZZZ to movement type 201 and account grouping YYY to movement type 261.
ounting when you post the vendor invoice.

automatic account assignment for the cost element.

a (purchase order or transfer posting) for valuated stock.

he stock account (BSX), in the background, if you enter the data for valuated stock at a later point in time.

ssigned to the consumption.

price control or stock undercoverage/shortage.

generates a posting line for this rounding difference.

d in the manufacture of a semifinished or finished product are debited or credited to that semifinished or finished product.
ounts with the transaction/event key LKW.

he standard pricedardpreis), goods issues in respect of which an external amount is entered, invoices (if the invoice price differs from the PO price and the stan

nged. Instead, any price differences arising are posted to a price difference account.

consumption.

account determination, the price differences are posted via the transaction PRK.
d out via transaction PRQ.

shed product, are transfer posted to that semifinished or finished product.

unts assigned to the transaction/event key RAP (retroactive pricing) as expense or revenue.

e from Revaluation" account. The offsetting (contra) entry is made to the relevant vendor account.

nvoice reduction account to partially offset this amount. With the second accounting document, the invoice reduction is posted in the form of a credit memo from
ese unplanned delivery costs among all invoice items as hitherto, you have the option of posting them to a special account. A separate tax code can be used fo

whereas transaction WGI (goods receipt, revaluation (inflation)) is used for the plant at which the goods are issued.
n (for example, inventory posting and consumption posting) instead of actual G/L account numbers.

rther key: account grouping code.

levels are negative and the stock value becomes unrealistic as a result of the posting. Transaction AUM can be used irrespective of whether the transfer postin

d rebate income to a separate account in cases such as the one described.

e taxed separately.
fers from the PO price and the standard price).
ed in the form of a credit memo from the vendor. The offsetting entry to the vendor line is the invoice reduction account. Hence the invoice reduction account is
A separate tax code can be used for this account.
ctive of whether the transfer posting involves a transfer between plants. The expenditure/income is added to the receiving material.
e the invoice reduction account is always balanced off by two accounting documents within one transaction.
FS00 31800 RM-Stock-Local BS Post Automatic Ind
Save
Save
31802 SFG-Stock- Local BS Post Automatic Indictor

Save
31803 SFG-Stock- Import BS Post Automatic Ind
Save
 Save
31805 FG-Stock BS Post Automatic Indictor
41801 GR/IR-Local BS-Lia Post Automatic Indictor
Save
Save
10020 Purcase Price Difference P&L Exp
Save
10021 Production Variance P&L-Exp

Without CE

10022 Exchange rate diff for MM P&L Exp

With CE
Save

10071 COGM-SFG P&L ExpCE with Category1

save
10072 COGM-FG P&L ExpCE with Category1
Save
save
10073 COGS-SFG Case1 COGS Without CE=
save COGS Without CE

10074 COGS-FG Case1 COGS Without CE=

Without CE

Save
10023 Gain / Loss on Stock Transfer P&L ExpPlan1
10024 Gain /Loss on Stock Valuation P&l Exp witout CE
Save

10025 Physical Inventory differences P&L Exp With CE

save
10026 Scrap of Material P&L Exp With CE
 save

10027 Subcontract / Process charges P&L Exp With CE

save
Post Automatic Indictor Tax Indicator No OpItem Management
utomatic Indictor Tax Indicator No OpItem Management

Post Automatic Indictor Tax Indicator No OpItem Management

c Indictor Tax Indicator No OpItem Management
c Indictor Tax Indicator Op Item Managemt Only Balance in Local Curr
Case1 : CE required if ML actual Costing Not Activated Case2 : CE not required if
Case1: CE Not required if Don't want update to the Account Case2: CE required if you

Case1 : CE required if ML actual Costing Not Activated Case2 : CE not required if

h Category1
CE with Category1
COGS Without CE====> NO account Based COPA and MTS Case2 COGS With CE====> accou
COGS Without CE====> NO account Based COPA and MTS Case2 COGS With CE====> accou

Plant2
xp witout CE ===> Non Operational expences / Gain===> Not required CE
xp With CE
xp With CE
xp With CE
alance in Local Currency
CE not required if ML actual Costing Activated
CE required if you want to update to the Account Based COPA

CE not required if ML actual Costing Activated

With CE====> account Based COPA ( MTS & MTO) , MTO(Make to Order scenario)
With CE====> account Based COPA ( MTS & MTO) , MTO(Make to Order scenario)
 Default Account assignement -OKB9 Part of Cost center Accounting

Purpose :
IN Manual Postings
Always you need to post specific Co object like cost cente
Bank charges need to post the Finance cost cente
Interest need to post to the Finance Cost center
In MM Transactions
Few Expenses gL account trigers automatically while pos
Example:
Purchase Price Difference
Purchase Price Diff (
Producton Variance

Gain or loss on Revaluation of Inventory

Gain or Loss on Stock Transfer

OKB9 Default CO Account Assignements

Save
Default Acccount Assignement can be maintained either through Substit

Substitution can be prefer to apply the complex Logic including c

OKB9 can be applied in simple cases

Note : Substitutions are Highest priority than the OKB9 settings

enter Accounting

object like cost center /Order

e Finance cost center
Finance Cost center

tomatically while posting MM Transactions

Required to define as CE and need to map in OKB9 settigs

Purchase Price Diff ( CE) ===>CC======>OH Methods( Template Allo or costing sheet m
Not A cost element if Not Required to map in OKB9 settings
Need to Define as CE if Activated Account Based COPA====> Nee
"PSG" it is a cost object for COPA
uation of Inventory Non Operational exp /Revenue ( Not required to define CE)
Transfer Non Operational exp /Revenue ( Not required to define CE)
either through Substitutions or OKB9 settings

plex Logic including condition based

OKB9 settings
n OKB9 settigs
o or costing sheet method)==> Prod Order (PC)
in OKB9 settings
ased COPA====> Need to assigin Prd Variance CE in OKB9 settings and ativate "PSG"

ed to define CE)
ed to define CE)
ate "PSG"
Mapping T.Key +GM to the Movement Indicator along with Movement
g with Movement Typs OMWN /OMJJ
Methods of Valuation OF Inventory
Which method to be followed to valuate Inventory
TWO Methods
1 Standard Price Method ( Plan price)
Inventory can be valuated
The difference between S

Example for External Proc

Stock-RMX 1kg
 Inhouse Mfg

Production Order 1PC of Production

Actual cost 13000
RM Mat 9000
OH 4000
GR from prd to Stock @GR==> Stock -10000

Production Variance 3000

Summary
Method Price
FGX S(StdPrice) 10000

V Moving average price/periodic unit price

Extrnal Procurement
V Moving average price/periodic unit price

Moving Average Price

Dynamically calculates pr

Moving Average Price

ZRMY
V Stock
GR 10pc
GI(Goods Is-1pc
Stock 9pc
IR @125
Stock 9pc

Notes

Case1 :If Invoice Qty is less than than Stock Qty

Example

Entire Purchase price difference loaded on sto

Dr.GR/IR
Dr. Stock
Cr. Vendor
 Case2 :If Invoice Qty is more than Stock Qty

Example

Purchase price difference proposinately loade

Dr.GR/IR
Dr. Stock (7PC)
Dr. Purchase Price Diff
Cr. Vendor

Price Control V=====> Inhouse Mfg

Stock Qty
FGX 2
V(Mov avg Price)
GI to Cust -1
Total Stock 1
at the time of Ord Settelement
Total Stock 1

Production Order 2PC

Actual Material cost

Actual Acty Qty X Plan Rate
 Actual OH allocation performed at M
Actual GR @ Price (Plan Price8000IN
2PC X8000
Production Variance
Settelement of Production Order===> Variance proposinately se
Case1: Prod Order Qty is less than Stock Qt
In this case , Total produc
Case2 Prod Order Qty is more than Stock
In this case , Variance pr
In Our example :
Stock Qty
FGX 1pC
Prd Var 5500 2750

Below entry generates at the time of Order settelement

Dr.Stock 2750
Dr. Prod Va 2750
Cr. COGM 5500

Summary of Consolidated Entry

Dr. Stock 16000+2750

Dr. Prd Var 2750
Cr.COGM 21500
 Delevery note==>Goods Issue to the customer 1PC @

Dr. COGS
Cr. Stock
Billing Sale prrice ===>65000/PC
Dr. Customer
Cr.Sale

Conclusion :
Case1 Without ML( Material Ldger) - Actual Costing
External Procurement Material- RM , FG , SFG
Method of Valuatuion==
Inhouse Mfg Products-FG , SFG
Method of Valuatuion==

Case2
With ML( Material Ldger) - Actual Costing
External Procurement Material- RM , FG , SFG
Method of Valuatuion==
Inhouse Mfg Products-FG , SFG
Method of Valuatuion==
Maerial Ledger-Actual Costing====> To valuate Inventory with P
Prerequst for ML-Actual Costing
All the materials should h
Possible to rollup / alloc
Possible to determine Ac
 Actual cost of product or
PUP( Actual cost of produ
PUP ===> Weighted Avg Price

PUP =( Op Stock value with St

----------------------------
( Op stock qty +GR q

At The month end, During ML Period end process===

 to valuate Inventory

e Method ( Plan price)

entory can be valuated with standard price and it ignores the actual price
e difference between STD price and actual cost of procurement or Production cost tr

ample for External Procurement

RMX(S) 100

PO Price===>120

@GR @120 ===>20====> Purchase price differeces

Dr.Stock 100
Dr. Purchase price diff 20
Cr.GR/IR 120

@IR @125

Dr.GR/iR 120
Dr. Purchase Price Diff 5
Cr. Vendor 125
Price Stock value
100 100
ouse Mfg
FGX(S) Std price 10000

C of Production

Dr. Stock 10000

@GR====> Cr. COGM 10000

@Prd Order settelement===> Production variance settles

P&L Dr. Production Var 3000

P&L Cr. COGM 3000

Consolidated Entry

Dr Stock ( Std Price) 10000

Dr Prd Var 3000
Cr COGM(Actual Cost Pr 13000

Stock Qty Stock Value

1 PC 10000 ProductionVariance GL

COGM GL Account
eriodic unit price

namically calculates price for every goods movement and invoice receipts

= Total Stock value / Total Stock Qty

Stock Value Mov Avg Price

1200 120 1200/10pc
-120 ====> GI qty X Mov ave
1080 120 1080/9pc
45 ===> At the time Invoic
1125 125 1125/9pc

Price Diff 50IR

Invoice qty 10pc Stock Qty 12pc

fference loaded on stock

10pc 120 1200

50
Vendor 10pc 125 1250
 Invoice qty 10pc Stock Qty 7pc

e proposinately loaded on stock and balance transferred to the Purchase Price Differ

10pc 120 1200

Stock (7PC) 35
Purchase Price Diff 15
Vendor 10pc 125 1250

Stock Value Mov Avg Price

pc 16000 8000 16000INR/2PC=8000INR

pc 8000
pc 8000 8000 8000INR/1PC =8000INR
2750
PC 10750 10750 10750INR/1PC =10750IN

8000
ty X Plan Rate 11500 Reval of acty ( Redstribut
ocation performed at Month end 2000 At the month end
Price (Plan Price8000INR) -16000
PC X8000
5500
riance proposinately setteled to the stock and Production variance account on propo
ty is less than Stock Qty
his case , Total production variance setteled to the Stock ( Entire variance load on St
ty is more than Stock Qty
his case , Variance proposinately setteled to the stock and Production variance acco

Consumed Prd Variance account

1PC
2750

er settelement

Cr. Prd Order 5500

000+2750

Cr.Prd Order 21500

o the customer 1PC @Price at the time of GI (8000/PC) Actual GI qty X Mov Avg
1PC X8000=8000=COGS
8000
8000

Customer 65000
65000

dger) - Actual Costing

aterial- RM , FG , SFG
ethod of Valuatuion=====> V -Moving Average Price

ethod of Valuatuion=====> S - Standard Price method

r) - Actual Costing
aterial- RM , FG , SFG
ethod of Valuatuion=====>S-Standard Price Method

ethod of Valuatuion=====> S - Standard Price method

aluate Inventory with PUP(Periodic Unit Price)===> PUP = actual cost of product for t
ML-Actual Costing
the materials should have price control "S" to apply Actual costing then ML possible
ossible to rollup / allocate price difference to the next level and also stock level , COG
ssible to determine Actual cost of product or Actual cost of procurement
tual cost of product or actual cost of procurement canbe called as PUP ( Periodic uni
P( Actual cost of product for the period) can be used to valuate closing stock , cOGS,
ighted Avg Price

Op Stock value with Std Price +GR with Std price+Exchange rate diff+Prod variance+P
------------------------------------------------------------------------------------------------------------
( Op stock qty +GR qty during the period)

Period end process===> Previos Period closing stock valuated with PUP( Actual Price)
roduction cost treated as purchase price difference in case of external procurement o

differeces

Purchase Price Diff GL Account

Price diff @GR 20
Price Diff @IR 5
Total Price Diff 25
 Cr. Prd Order 10000

nce settles

Cr. Prd Order 3000

@GR
@ Order Settelement
Cr. Prd Order 13000

onVariance GL
Prd Var @ Settelement of Order==>3000INR
L Account
Actual cost @GR +Settelement ==> 10000+3000=13000
GI qty X Mov average price =1pc X120=120

At the time Invoice ==> Invoice price 125 and PO price 120===> Purchase Price iff =(1
Stock Consumed Purchase Price Diff Account
9PC 1PC
45 5
chase Price Difference account

NR/2PC=8000INR

R/1PC =8000INR

NR/1PC =10750INR

acty ( Redstributng acty price differences)

month end
Dr. Stock 2PC 16000
Cr. COGM 2PC 16000
( Actual GR qty X Price as per Valuation strategy (Plan Price9000)
ccount on proposinate of Stock qty available and Consumtion Qty

riance load on Stock)

on variance account on proposinate of Stock qty available and Consumtion Qty

GI qty X Mov Avg price
00=8000=COGS

t of product for the period by considering all type of variances and price differences

then ML possible to track price differences/ prd var / exchange rate difference
stock level , COGS, WIP etc
UP ( Periodic unit price)
ing stock , cOGS, wIP

+Prod variance+Purhase price diff)

--------------------

UP( Actual Price)

nal procurement or As Production variance in case of inhouse mfg
chase Price iff =(125-120)*10PC=50INR
sumtion Qty
price differences

e difference
Material Master

Product Hierarchy

FMCG
Health care COSMOstics
Baby care

Plant Material Status

We can restrict useuability of the material a
We can restric the procurement of aterial o
Example :
Product discontinuing from 01.07.202

MRP1
MRP Type
It specifies how the materials to be procured eithe
1 Manual Planning 2

1 Manual Planning
Need to Plan the procurement / Prod

2 Automatic Planning
During the MRP run===>For External
For Inhous ====> It gene
ND====> No planning
PD=====> MRP Run
 Lot Size
It uses while procuring the mat / producing the ma
Cost estimate generates based on Lot Size and costi

Fixed Lot Size 10pc

Always place the order with Fixed Lot size qty
It Ignores the minimum and Mximum Lot size
It considers Scrap also

Requirement 9 PC
Scrap @30% 3 PC
Toal Requirement after scrap 12 PC

During MRP run=====> System places the 2Lot sizes for procure

Lot Size 12/10 1.2

Always Multiplies the Lot Size

Minimum Lot Size : 5PC

Always system place the Minimum ==> 5Lot sizes

Requirement of Material is ===> 2PC

In this case System place the Procuem

Maximum ot Size : 20PC

Rquirement is ====>25PC
In this case System place the Procuem
Scrap
3 Types of Scrap
1 Assembly Scrap =====> Can be specicied in MM -MR
Final component not met quality standards o

2 Component Scrap =====> Can be specicied in MM -MR

Input materials defecives can be called as co
3 Opeariona Scrap ====> Can be specifid in Routi
Inprocess wastage can be called asOperatio

Procurement Type
It Specifies how the material procured / produced
Procurement type indicates weather the material is procu

Based on Procurement type===> System generates requirement

E In-house production
During the MRP run , System generates Plan order then P
Can be assignd for those materials producing inhouse
F External procurement
During the MRP run , System generates Plan order / PR th
Can be selected for all extrnal procurement materials
X Both procurement types
Can be selected for those materials either pocurement in
During the MRP Run, System generates Plan Order then m
Special Procurement :
It Specifies the specifc procurement of the source
Example :
For Depo1 plant===> Always procure the material
Always subcontractthe materials

Special procurement key can be used both in procuremen

Special Procurement key can be specifies either in MM- M

MRP2 tab is the highest priority for procurement o
Costing 1 tab Special procurement key is highest pr

Bulk Material
Example :
Bolts, Grease, Washers etc
During procuremet===> Cost is booked to the cost
Bulk material is not relevant for costings
Strategy Group :
It specifies poduct to be producted either MTS ( M

Discontinue Indicator:
Discontinue the only specific material or discontinu
1 Single/parallel discontinued part/material
It discontinues only specific material

3 Dependent parallel discontinued part/material

It discontinue both specific material along w
 Follow up Material====> Replacement material for disconinue p

Accounting 1 tab

Future Price
It becomes next current future std price
This field can be updated either through the manu
ML PUP price can be marked as future price
Note: Standard (Std) cost estimate program wouldn't upd
Std cost estimate program updates Costing 2 tab f

During the release of the std cost estimate , System follow

Priority1
If Future Price exists in Costing 2 tab then Co

Priority2
If No future price exists in Costing 2 tab, the

Cosing1 Tab
Plant Specific Material Status :
Block for costing
 the material and also in costing
ent of aterial or production of material

rom 01.07.2020

procured either manual planning or automatic planning

Automatic Planning

rement / Production manually

=>For External Procurement== It generates requirements automatically ===> It creat

====> It generates Plan order====> Production order for Inhouse Mfg products
oducing the material
ot Size and costing it may vary depends on Lot size

ot size qty
m Lot size

zes for procurement or production

Lot size====>2Lot size

ce the Procuement / Production i.e Minimum Lot size ===> 5PC

ce the Procuement / Production i.e Maximum Lot size ===> 20pc

 ed in MM -MRP1 tab ===> We will plan scrap %
lity standards or defective

ed in MM -MRP4 tab or BOM Item level can be specifid ===> We will plan
be called as component scrap
pecifid in Routing Operational level ===> We will plan
led asOperational scrap

roduced
material is procured inhouse (Mfg) or Procured Externally

es requirements during the MRP run

n order then Plan order converted into prodction rders

ing inhouse

n order / PR then Plan order /PR converted into Purchase orders

nt materials

pocurement in house or external procurement

n Order then manually need to convert either to PO for external procurement or Pro
 e the material from Mfg Plant 2

in procurement and also costing

ither in MM- MRP2 tab or Costing 1 tab

procurement of materials
ey is highest priority in Costing( Cost estimates)

ked to the cost center and only inventory stored without any vale

either MTS ( Make to Stock) or MTO ( Make to Order Production)

al or discontinue along with dependent materials

material

rt/material
material along with dependent material
or disconinue product

ough the manual price or ML PUP price ( Actual cost of product for specific period)
as future price
m wouldn't update the Accounting1 tab future price field
Costing 2 tab future price field only

, System follows the below strategy to update price to the Accounting1 tab current s

g 2 tab then Costing 2 tab future price uses to update current std price field both in A

sting 2 tab, then Accounting1 tab future price uses to update the current std price bo
tically ===> It creates PR(Purchase Request)==> create PO for external Procurement
e Mfg products
===> We will plan scrap %

===> We will plan scrap %

rocurement or Production order for Inhouse Mfg

r specific period)

nting1 tab current std price field and Costing2 tab current std price field

price field both in Accounting 1 tab and also in costing 2 tab

urrent std price both in Accounting 1 tab and costing2 tab

rnal Procurement