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split valuation for material component in CJ20N

Former Member
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Dear PS experts,

     we have an issue about how to split the valuation of the same material to different GL accounts.

Example :

     we have material cement in construction project and we want to create PR for the same material in different WBS element plumbing and skeleton.
but when the PR +reservation issued from the project we need to redirect the posting in specific GL.:

Villa project :
                        Skeleton WBS

                                    Material cement PR + reservation for WBS.

                        Plumbing WBS

                                    Material cement PR + reservation for WBS.

Material cement is the same material but when buying this material for skeleton work it will post on the GL skeleton work and when buying this material for plumbing work it will post on the GL plumbing work for a financial purpose.

the material management consultant suggested to use material split valuation and to assign valuation type for this material while assigning this material to any activity but in CJ20N we don't have valuation type field to put the valuation type skeleton or plumbing !!!!!!!


IS there any solution for this problem how to be handled PS, MM and FI.

Accepted Solutions (1)

Accepted Solutions (1)

Paulo_Vitoriano
Active Contributor
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Hi Ahmed,

I think split valuation is primarily used when same material has two different prices (maybe one bought and one produced internally) and not for its usage, so that is conceptually wrong from a starting point.

Next, cement is still the cement and I do not see a need to account for it on different P&L GL accounts, instead your project can have two different network activities to reflect and split between skeleton and plumbing.  That is not a kind of analytical dimention to show up on chart of accounts, but instead on a project structure.

Same employee can be performing both activities, but I doubt that you will split it at GL account level.

Regards,

Paulo

Former Member
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Hi Paulo,

Thanks for your reply I have told the customer about all this points that you have mentioned and I know that you are right.

but the customer wants to analyse the consumption on the cement at skeleton and at plumbing from the financial point of view (FI).

Is there another  Solution ?

kenmelching
Active Contributor
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This is a common mistake to use the Chart of Accounts to meet reporting requirements.  It results in an unnecessarily complicated chart of accounts.

Are you using Valuated or Non-Valuated Project Stock?  Or is the cement coming from plant stock?

You are already making a separation between Skeleton Cement and Plumbing Cement with your WBS structure.  That is the purpose of PS.

When you issue material to a WBS the accounting entry is to Dr the WBS and Cr Inventory (or GR/IR).  The Dr side will contain the WBS number.  You can develop a report that reads the Accounting Documents and WBS elements and filters per the difference you want. 

Alternatively, you can use a FI enhancement to add data to the Text or Assignment field on the Accounting Doc and report through that data.

MM account determination primarily uses the Valuation Class on the material master to determine the account.  You could use an account determination user exit to make things go where you want if you absolutely have to, but I reccommend against it.  Hopefully you can meet your requirements through reporting.

Former Member
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Hi Ken,

Thank you for your answers

I completely agree with your answers as i tried many times to persuade the customer with this ERP logic.
I am using valuated project stock.

Thanks

Former Member
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HI Mr Ken,

Finally the customer accepted your solution but he asked me if he can connect WBS element with cost center to see the reports from the controlling point of view to assign for each wbs element cost center and see all the actual costs on the cost center reports.

1- is this a true business logic ??
2- If yes can i connect between WBS element and cost center as i have found responsible cost center but in the network not in the WBS element ?
3- If this is ok can i give authorization to fininacial manager in cj20n only to put the cost center for each WBS element ??

Paulo_Vitoriano
Active Contributor
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Hi Ahmed,

1. You have two standard fields on the WBS that are Responsible Cost Center and Requesting Cost Center, just a matter of opening fields in the fields status selection.

2. The project structure can be presented from the perspective of Cost Center structure for reporting.

3. Also you can have a statistical postings on the Cost Centers, but I do not really see a need for it.

4. I think it can be challenging, specially in CJ20N to give authorisation to a single field update, that is not a standard authorisation available.

Regards,

Paulo

kenmelching
Active Contributor
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To use delivered Cost Center Reporting you would need to settle the PS costs to a Cost Center.  What is your settlement processes?  Settle to COPA, Cost Centers, etc?

On a WBS there are 2 fieds which can hold Cost Centers (Responsible and Requesting CC) they are intended for capital projects where you settle to an AuC, but you can repurpose them as a "link" for reporting and then develop custom reports.

In CO costs are posted to a CO object, Cost Centers and WBS are both CO objects.  Your WBS structure has the separation you want, if oyu settle to a cost center the costs will be mixed again.

You can see CO reports via WBS's, these are the deliverd PS reports.

Answers (1)

Answers (1)

Former Member
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Completely true but he Wants that because he wants to see the costs from a point of view which different to the point of view of the project manager.
we are assigning a profit center to each project is this can help me to put the hierarchy structure of the profit center to the WBS elements under the project.
can this solution help me ???

Paulo_Vitoriano
Active Contributor
0 Kudos

Hi Ahmed,

To get a Cost Center view on a project you can just select the PS report that takes a Cost Center hierarchy to rearrange the structure, so top nodes will be Cost Centers and below the WBS-elements that are assigned to them.

Profit Centers are an option, but that is a heavy one. Normally it makes sense when you want to see a revenue split, and not an alternative costing view.

Regards,

Paulo