Valuation Strategy in Agro Business

[vivek_srivastava12]

Hi,

We are implementing SAP in company where they have Agro and Trading Business, In Agro they manufature one of the item and then they sell, so we have product costing also implemented.

Any one can please help me to understand what type of Valuation we should propose, as of now we are proposing Standard Costing but client is not accepting because if there is any variance then system will post it to PRD Account.

Please let me know what type of valuation is followed in this type of business.

Regards,

Vivek

[vivek_srivastava12]

Solved

[ajaycwa1981]

Hi

For materials specific to Trading - You can Choose V

But those specific to Mfg must have S... you have no choice with it... Refer note 81682 where SAP explained the drawbacks of V for Mfd items

If they want to inventorize variances - Then implement Material Ledger

br, Ajay M

[vivek_srivastava12]

Hi Ajay,

Is there any other way or work around to inventorize Variance without Implementing ML.

Regards,

Vivek

[ajaycwa1981]

Hi

No, there is no other way....

You can consider the following work around if you find it suitable

Calculate an alternate std price based on actual prices as mentioned here

Then revise COGS in COPA from KE27 based on this new alt std price... Steps for the same are mentioned here

br, Ajay M

[vivek_srivastava12]

Hi Ajay,

Thank you so much for the Work Around Steps.

I have a query regrding Activity Price Calculation;

How the Actual Activity price will be calculated, is it manual actvity or system can give us the same.

Regards,

Vivek Srivastava

[ajaycwa1981]

Hi

It can be calculated by the system using KSII or entered manually in KBK6

br, Ajay M

[vivek_srivastava12]

Hi Ajay,

Do we need to Activate ML?

I have done setting on Version 0 is Exchnage rate as P and in Price Calculation Plan Method = Average Price

Actual Method = Periodic Price

Revaluation = Own Business transcation

I have executed KSII for one Cost Center Grp, without Test mode

Now the Output is Activity Quantity is 7.25 and Total Price 1200 and Price Fixed as 1200,

1200 is the price which I have maintained in KP26 for the Activity Type LABOR,

After this I executed CON2 in Updated Run in th eout put list it is not showing any Price.

Now I want to understand that how I can see what is the actual Price System has calculated and where it is updating.

Please help.

Regards,

Vivek Srivastava