Actual Costing Material Ledger- Standard costing for international Actual costing for local GAAP

[former_member266169]

Hello,

I have following question:

The US based parent Company  uses  Standard costing  and want to keep this method for the subsidiaries abroad  whilst the local Company must use according to local GAAP actual costing/material ledger.  The fiscal year variant of the Company code and leading ledger  should be according to parent companies Approach  year based and deviates from Calender months whilst  according to local laws  calender based fiscal year variant K4 must be used  which  can be selected for the Non-leading ledger which is created for the local GAAP. 

Is it possible in SAP  to use Standard costing for the leading ledger (USGAAP) during according to local GAAP actual costing/Material ledger  is used and both methods can be reported properly. Is this possible  with different fiscal year variants of the leading ledger and non-leading ledger?

Looking Forward to your soon replies/comments.

Thanks and Kind Regards

[ArturoSenosain]

Hi Tarik.

Do you read the documentation for bf FIN_CO_COGM?

With this BF you can manage multiple accounting principles (GAAP / IFRS).

CO, Multiple Valuation of Cost of Goods Manufactured - Business Functions (SAP Enhancement Package 5...

Multiple Valuation of Cost of Goods Manufactured - Period-End Closing (CO-OM-CCA) - SAP Library

All the projects i worked have 0L Principal Ledger = IFRS and 1L Parallel Ledger = GAAP.

And have Actual Costing in both (keep in mind you have ML at material level, not at accounting principle level). According to documentation, you can accomplish work with Standard Cost for your Principal Ledger and ActualML Cost for your parallel GAAP, this is an extract from SAP HELP:

The following applies to the actual costing:

• If you generally use actual costs, the periodic costing run calculates and posts the cost of goods manufactured for the global accounting principle and the alternative valuation run posts this for the local and additional accounting principles.
• If you generally use standard costs and only use actual costs due to a local accounting principle, the period costing run can also calculate and post actual prices from the version for the parallel cost of goods manufactured. Version 0 remains valuated for standard costs.
• The remaining balance for version 0 can be credited to costing-based profitability analysis using assessments.

Keep in mind you only can pass COGM (and CCS) of both ledgers to CO-PA, as far as i know, assesment to PA only take 0L ledger data.

Wish this give you an idea.

Arturo.

[former_member266169]

http://help.sap.com/erp2005_ehp_05/helpdata/EN/86/9a2e31169340b9b04ca268192e9b5c/frameset.htmHi Arturo,

[kamalkumar_biswas2]

Hi

First of all..you may use same CO area for all the CCodes where you are using Group currency which will be applied for all CCode controlling reports to synchronised and you must have same COA and Posting period variant.

Second..if your controlling area is 1:1 then you can have much flexibility in all these parameters.

Now as per parallel ledger..yes you can use separate posting period variant other than what you have used in main ledger/leading ledger for report purpose because non-leading does not effect any transaction in leading ledger.

kamal