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Consumption Sequence for calculating gain/loss

Former Member
0 Kudos

Hi All,

I have made a purchase & sale transaction in Mutual Funds as below

DatePurchase/SaleUnitsPrice per UnitValue
01.01.2011Purchase100101000/-
01.02.2011Purchase150121800/-
28.02.2011Sale110111210/-

As per the above transaction when I do the sale on 28.02.2011, I need to get the profit of 90/- . But system is showing the loss of 22/-, Its taking the average rate for calculating the gain/loss.

System calculation

1000+1800=2800 (Total purchase value)

100+150=250 ( Total no of units)

2800/250=11.2 (Average price)

The system is taking the transalation purchase value as 110*11.2=1232 &  sale value as 110*11=1210. So loss is 1210-1232=22 (Loss).

It is calculating profit/loss on weighted average basis. I need to set this to FIFO method now. I did the required customization but still system is calculating rate on weigthed average basis.

Please let me know what are the options I need to select in the below nodes

  • Define Generation of Securities Account Position Indicator

                                      Origin BT 

                                      Position Indicator Creation

  • Define Generation of Subledger Position Indicator

                                     Origin BT

Product Group

Position Indicator Creation

Regards,

Venkat

Accepted Solutions (0)

Answers (3)

Answers (3)

0 Kudos

Dear Venkat,

After make an entry for the product type under Single Position Management. For Product types that have position. You should enter your data in the TRQCV_LOT_ACC view in transaction SM34 to complete your customizing.

Regards.

Arturo.

Former Member
0 Kudos

Hi Nikhil / Arturo,

Thanks for the reply!!!!

As suggested, I have maintained the product type 02A in SM34 - TRQCV_LOT_ACC.

I checked the Single Position Management, it was blank. when I am trying to assign the product type in Single Position Management, the system is throwing the below error.

"Active business transactions already exist for valuation area 001, accounting code 1000 and product category 02A. It is therefore not  possible to change from a collective valuation to a single valuation"

I have given the valuation area(001),accounting code(1000) & product type(02A).

But when I change the valuation area from 001 to 002, system is allowing me to save the data. But we are not using the valuation area 002 (Parallel Valuation Area - US Gaap)

Please let me know how to proceed further.

Regards,

Venkat

NikhilAdke
Employee
Employee
0 Kudos

Hello Venkat,

The system behaviour is correct. You cannot change the consumption behaviour for an ID if already business transactions are present for the combination valuation area, company code and product type. What you can do is create a new product type based on 02A and possibly do a Sec account transfer , if there are Live deals present. The system will not allow to change from weighted average to Single position Management , when deals are already present for a product type. Or may be try corporate actions to transfer positions from Old ID to New ID .

Regards,

nikhil

Former Member
0 Kudos

Hi All,

Please let me know if you have any solution for the issue.

Regards,

Venkat

NikhilAdke
Employee
Employee
0 Kudos

Hello Venkat,

I beilieve the Differentiation Critieria is at securities Account. Under Define and Assign Differtiations, make an entry for the product type under Single position management. Then it will consider the product type to be checked with whichever consumption sequence you have defined.

As per your previous config, the system calculated Gain/loss on a weighted average basis. Hence also try checking by creating a new securities account and ID. The previous securities account would be locked as transactions exist which would be handled through Weighted average method.

regards,

Nikhil

rohit_jain2
Participant
0 Kudos

Dear Venkat,

Have you done the relevant configurations in "Assign Consumption Sequence Procedure"?

Regards,

Rohit

Former Member
0 Kudos

Hi Rohit

I have done the below settings in "Assign Consumption Sequence Procedure"

Product Type                    02A

Consumption seq. proc.     FIFO

Valuation Area                  001

Default for Man.Cseq         FIFO

Cons BAPI                        -

Regards,

Venkat

rohit_jain2
Participant
0 Kudos

Hi Venkata,

Ideally this should work.

Try doing it at client level. i.e.

In "Settings per Company Code"  level, leave the Company Code and Company Name as blank.

Consumption seq. proc.     FIFO

Default for Man.Cseq         FIFO

All other fileds shall be blank and so will be the product type level settings. I'd faced a similar issue and it had worked for me when i'd done it across all company codes..

All th best!

Regards,

Rohit

Former Member
0 Kudos

Hi Rohit,

The current settings are same as you mentioned in your reply. But it is not working.

Please let me know what are the options I need to select in the below nodes

  • Define Generation of Securities Account Position Indicator

                                         Origin BT                                       

                                         Position Indicator Creation

  • Define Generation of Subledger Position Indicator

                                        Origin BT

Product Group

Position Indicator Creation

Regards,

Venkat