non valuated SO stock

[Former Member]

in make to order scenario, should we setup sales order stock as valuated or non valuated? what's the difference for the impact to costing?

[former_member186385]

Hi,

MTO process, SAP recommends to use Valuates SO stock

The Main differnce is when you use the Non-valuated Sales order stock, the Goods Movement will not have any impact on the corresponding FI posting

For example, in MTO for your finished Material is there any subsequent production order created, the respective goods movement of production order will be settled to the Sales order item and after completion of the Result analysis and Settlement during the period end closing only the cost will be transferred to the respective FI entries

Main impact for Non valuated sales order stock

1. Cost object controlling is only done at the sales order item

2. system does not report all cost of BOM items

3. Inventory valuation cannot be done individually ( for example if your sales order is having FERT and HALB )

4. No standard cost estimation is possible

regards,

santosh