Revaluation at Actual Prices for Cost Center based activities

[Former Member]

Dear Gurus,

I am seeking an expert advice on how the revaluation at actual prices for cost center based activities are done. ?

Gone through few threads but not getting the proper workflow.

Thanks,

Franklin Joseph

[Former Member · Accepted solution]

Hi Franklin,

Before proceeding further, let me share my views on this. Actually, I have not really worked on the revaluation of actual prices but I can try to provide you some pointers here.

Some companies use actual price calculation to calculate the prices of the individual activity types iteratively for the valuation of actual activities as part of the period-end closing. Actual prices are calculated based on the relationship between the actual costs and the actual service rendered by the cost center.

Depending on the procedure used, the costs and activities of the individual periods are analyzed separately (periodically differentiated price), as total values (average price) or as values cumulated up to the analysis period (cumulated price).

However, since the actual price calculation is not executed until the period-end closing, the iteratively calculated actual price is not available when the actual activity is posted. Therefore, the activities are normally valuated with planned prices initially. After the actual prices are calculated, you can make the relevant adjustment postings, in other words, execute a revaluation at actual prices for your projects.

I hope this may help you to some extent..!!

Regards,

Amit

[Former Member · Accepted solution]

Hi Amit,

Certainly it is a great help. But what about the workflow.? How do I proceed?

Can you share some screen or customization with me?

Thanks,

Franklin

[sanjeevc · Accepted solution]

Hi,

for proper understanding of workflow you have to read below blog

Workflow for Cost Centers/Profit Centers - Defense Forces & Public Security - SAP Library

Regards,
Sanjeev

[Former Member · Accepted solution]

Hi Franklin,

There are certain per-requisites that you need to follow. These are as follows:

1.Internal activity allocations must have been executed or process costs posted for a project.

2. In Customizing, you need to define whether and how the revaluation is to be executed using the Revaluation indicator in the fiscal year-dependent parameters of CO version 0 (or the relevant actual version) like

a) 0(Zero) -  No revaluation takes place. This usually means that all actual activities are valuated with the planned price.

b) 1(One) Revaluation with separate procedure- Revaluations are possible and are executed as differences based on the original allocation with a separate procedure (actual price calculation). The original allocations remain unchanged. As a result, you can trace the deviation between the valuations at the actual price and the planned price.

c) 2(Two) Revaluation in the original procedure- Revaluations are possible and result in a change to the original allocations. The differences between the valuations at the actual price and the planned price cannot be traced with this setting. Changing the existing allocation records is particularly useful if no planned price exists and, therefore, no valuation has taken place with the original posting.

3. As a final prerequisite for revaluation at actual prices, an actual cost calculation must be executed in Cost Center Accounting or activity based costing (transaction KSII or CPH). The actual price calculation is largely controlled by the Methods indicator in the fiscal year dependent parameters of the CO version and the Price indicator of the actual allocation price, which is copied as a default value from the master data of the relevant activity type.

Regards,

Amit

[Former Member · Accepted solution]

Hi Franklin,

In addition to what I have suggested just now. There are few more pointers involved for executing the revaluation of actual prices.

You can use transactions CJN1 (individual processing) and CJN2 (collective processing) to revaluate work breakdown structures and networks in SAP Project System.

For eg:- In case of CJN1, you need to specify period and the fiscal year for revaluation here, as well as indicators for process control if you repeat the revaluation for a period, only the differences that arise due to subsequent price changes are posted. If necessary, you can also cancel the revaluations executed in the update run. The original activity allocations remain unchanged.

If no activities were included in the period, if no actual price exists, or if the project was already valuated with the current actual price, no posting occurs. If the status of the project or the cost center to be

credited prevents posting, the system issues an error message to that effect.

I hope this may help you now.

Regards,

Amit

[Former Member · Accepted solution]

Thanks Amit,

Looks like I have got the way. Need to work on this.

Franklin

[varshal_kachole3]

Hi,

Please refer to Calculating Actual Activity at Actual Prices - Period-End Closing (CO-OM-CCA) - SAP Library and

Hope it Helps!

Thanks and Regards,

Varshal Kachole

[Paulo_Vitoriano]

Hi Franklin,

The process depends on your particular scenario.

Sometime you need to calcualte actual prices separately for different cost center groups and might have settlement steps in between, sometime you can do it in one go.

It is also important what objects are receivers of activity allocation.  Postings between Cost Centers are instantly updated after KSII run, but for orders and WBS-elements you will need to run additionally revaluation transaction like KON1/2 for example.

Regards,