Split Valuation Material Ledger, Notes 1755018

[Former Member]

Dear all,

we are implementing Material Ledger with some materials having Split Valuation. There is specific SAP Notes for this scenario, ie No 1755018. However I can not get a clear understanding of what is stated in the notes.

"1051224

: This note enables the valuation type for process categories transfer plant to plant and material to material.

Furthermore it allows activating the valuation type also for process categories production and subcontracting, as far as certain prerequisites

are fulfilled. Please, read note carefully, especially regarding the scenario in which the modification might be used and the possible side

effects If you already know the valuation type at the moment when you are creating the order, this modification enables you to create a new

production process for each valuation type"

does is mean that after we have applied the modification we can then put the valuation type somewhere in the BOM?

additional info, we are already in ECC6 Ehp6, the notes 1051224 has already been applied.

Many thanks,

Edi

[Former Member]

You got it right.  Get it developed and test it with different business scenarios.

[Former Member]

Hi Vivek,

have you had this scenario before?

do you have idea, why SAP doesnt provide this enhancement? in my opinion, it should have come with the notes.

Many thanks again,

Edi

[Former Member]

Edi,

Please look out for sap notes...

Thanks

Vivek

[former_member221187]

HI edi,

1.1 - Periodic Unit Price - During the Period

During the period all transactions are valued at standard cost as a preliminary valuation

SAP collects all valuation relevant transaction data in the material ledger for a period

Price Differences

Exchange rate differences

Production variances

Differences from the preliminary valuation price are posted to price difference accounts

1.2 - Periodic Unit Price - Month end : Single level Price determination

SAP calculates the PUP based on the sum of the price differences, exchange rate differences and production

variances in relation to the cumulative inventory quantity and value

Weighted average cost is used to determine PUP

PUP updated in Material Master (statistical)

No variances are rolled to the next production level

1.3 - Periodic Unit Price - Month end : Single level Price determination

Only movements collected in the material Ledger for receipts and other inward/outward movements will effect the

PUP

Consumption has no effect on the price

1.4 - Periodic Unit Price - Month end : Multi level Price determination

An actual quantity structure (BOM) is created for all materials within a plant based on goods movements

Variances associated with consumption of lower level materials are rolled up to the higher levels of this actual

2. Scenario

2.1 - Receipt and invoicing of raw material

Finished Product FP01 created from single Raw Material RM01.

Price variances on receipt of invoice for RM01.

Production Order utilises half of RM01 stock and incurs lot size variances.

All FP01 sold in period.

RM01 Std @ $10/ton

FP01 Std @ $20/ton

Regards,

G Rajendhar

[former_member221187]

Hi edi,

Go to below link you have total explanation of material ledger.

scn.sap.com/community/epm/accounting-and-financial-close/blog/2013/01/07/material-ledger-actual-costing-pup

Regards,

G Rajendhar.

[Former Member]

Hi Rajendhar,

many thanks for this.

however I have specific case, I have split valuation material in Material Ledger environment.

do you have any idea on this?

best regards,

Edi

[former_member221187]

Hi edi,

I don't have any Idea on this case.

Regards

G Rajendhar

[Former Member]

Edi,

As per SAP Note 1051244:

• At the moment a new production order is created the valuation type of  the material to be produced must already be known.
• In the creation transaction the valuation type must already be filled in the master data of the order at the moment the production process is derived program-internally. Therefore, if you enter the valuation type manually when you create the order, it may already be too late.

To avoid goods receipt with incorrect valuation type you can create an enhancement to Create Batch number & Valuation Type at the time creating the Process Order. Also at the time of Goods receipt create an enhancement for system to automatically receive the same Batch &Valuation Type you have created for the process order. 

regards

Vivek

[Former Member]

Vivek,

Have you tried this?

Why SAP does not prepare this enhancement?

Actually, when we have put the valuation type manually in the Process Order, when we do goods receipt, the valuation type will also appear in the screen, we dont need to put it manually.

So, we of need enhancement, we only need this for the Process Order creation only.

can you please confirm on this?

Many thanks,

Edi

[Former Member]

Hi Edi,

Valuation type will automatically appear at the time of goods issue to process order. However User can change it which will again make a mis-match in actual costing/valuation type.

The enhancement at the time of goods issue is for User Not to change valuation type.

regards

Vivek

[Former Member]

Hi Vivek,

what the enhancement as per your respond below

"To avoid goods receipt with incorrect valuation type you can create an enhancement to Create Batch number & Valuation Type at the time creating the Process Order"

Many thanks,

Edi