valuated/non valuated sales order stock

by irma Sun Aug 22, 2004 11:58 am

Hello Sap Gurus, Could any body tell me the difference between valuated and non-valuated sales order stocks. I have created 2 different materials with the following configurations: 1- Strategy Group 20 -> Strategy 20 Account Assignment -> E Valuation -> A Seperate valuation without reference to sales order 2- Strategy Group 81 -> Strategy 81 Account Assignment -> M Valuation -> M Separate valuation with ref. to sales document/project For the first scenario materials produced are assigned to sales order stock, but are not seen as valuated sales order stock. In the second scenario materials produced are assigned to sales order stock but also can be seen as valuated sales order stock in report MMBS. Goods receipt from production have created FI postings with standart price. Both production order for these materials have settlement rule assigned to material. So I could not find the major difference between these scenario. Thanks in advance. waiting for your urgent help...
irma

Posts: 10 Joined: Wed Jun 09, 2004 3:13 pm T o p

by wizia Sun Aug 22, 2004 6:19 pm

Hi Irma, With non-valuated stock, there will be no FI posting on goods receipt from production order and goods issue on sales order. Thus, with non-valuated stock, you will never recognize any inventory value in your FI books.

Your production order should settle to sales order item, and not into material. The COGS will take the actual value of the production order settlement and will post this amount to FI via sales order settlement So with non-valuated stock, there will be 2 stage order settlement. One from Production Order and one from Sales Order. With valuated stock, it works the same as normal stock, except the standard price of the material will be determined by the sales order cost estimation run when you create the sales order. Production order is settled to material. Cheers, wizia
wizia T o p

by irma Mon Aug 23, 2004 2:17 pm

Dear Wizia, Thanks for your reply. It really helped me. Then I assume both cases in my example are valauted stock. But what is the difference between the following cutomizing in requirement class customizing: Valuation -> M Separate valuation with ref. to sales document/project Valuation -> A Seperate valuation without reference to sales order In both cases pp order are settled to material but in case M stocks are reported as valuated special stock in report MMBS. I expect month end closing operations will differ but what are reporting and valuation pros and cons of these cases. Looking for your help Thanks in advance...
irma

Posts: 10 Joined: Wed Jun 09, 2004 3:13 pm

T o p

by wizia Mon Aug 23, 2004 8:42 pm

Hi Irma, With valuation M, you will have your stock valuated according to your sales order cost estimation. This means, you may have 2 different sales orders containing one FG material code with two different standard price according to the product specification of each order. Thus, the system derived its sales order stock valuation from each sales order cost estimation that is run everytime you create a sales order. Since I havent use valuation A, I cant really comment on that. But i guess it has something to do with manual cost estimation feeding. The system will ignore any sales order cost estimation generated and will ask the user to specify the standard price manually. Sorry cant be much of a help!
Cheers, Wizia
wizia

Posts: 31 Joined: Sun Aug 22, 2004 6:23 pm

T o p

by irma Tue Aug 24, 2004 1:35 pm

I think with valuation A system determines the standart price from material master data. Thanks anyway. Your comments helped alot...

Valuated and non-valuated Sale Order scenarios - Business Process Flow FI/CO
SAP Scenario 1 - Valuated Sale Order Stock with Sale Order Controlling (MTO, ATO and ETO with VC):
1. Enquiry 2. Opportunity

3. Quotation (Creation and Approval). In case of ETO BPO is created and updated in quotation (condition type) 4. Creation of Sale Order 5. MRP Run Creation of Planned Order Creation of Production Order and Purchase Order 6. External Procurement Goods Receipt: ROH Inventory Account Dr (BALANCE SHEET) To GR/IR Account Cr (PROFIT & LOSS ACCOUNT) 7. Material Consumption to Production Order: In FI: ROH consumption Account To ROH Inventory Account Same in the case with HALB In CO: Cost of Material is debited to Production Order 8. Activity Consumption to Production Order: In FI: No Posting In CO: Production Order is debited and cost center is credited with activity cost. Dr (PROFIT & LOSS ACCOUNT) Cr (BALANCE SHEET)

9. Goods Receipt from Production Order: FG Inventory Account Dr (BALANCE SHEET) To COGM Account Cr (PROFIT & LOSS ACCOUNT) 10. Delivery to customer: In-Transit Account To FG Inventory Account 11. Invoicing to customer: In FI: Customer Account To Revenue Account COGS Account To In-Transit Account Dr. (BALANCE SHEET) Cr (BALANCE SHEET)

Dr (BALANCE SHEET) Cr (PROFIT & LOSS ACCOUNT)

Dr (PROFIT & LOSS ACCOUNT) Cr (BALANCE SHEET)

In CO: COGS and Revenue are posted to COPA Period end closing Production Order 12. Revaluation of activity prices: Production Order and Cost Center will be debited or credited as the case may be 13. Calculation of WIP In FI: WIP Account Dr. (BALANCE SHEET) To Change in WIP Account Cr (PROFIT & LOSS ACCOUNT) If the Order is completed: In FI: Change in WIP Account To WIP Account Dr (PROFIT & LOSS ACCOUNT) Cr (BALANCE SHEET)

14. Calculation of Variances: Variances are calculated on the Production Order. No FI or CO entries 15. Settlement to Sale Order: Production Order and Sales Order will get debited/credited depending on whether they are positive or negative variances. 16. Result analysis at Sale Order: Result Analysis run will identify the status of the sale order and will enable the postings to COPA at the time of settlement 17. Settlement of Sale Order: In FI: Variances Account Dr (PROFIT & LOSS ACCOUNT) To COGS Account Cr (PROFIT & LOSS ACCOUNT) (It would be otherwise if variances are positive) In CO: COGS, Revenue and Variances are settled to COPA

SAP Scenario 2 Non-valuated Sale Order Stock with Sale Order Controlling: Process Step Business Process Flow Value Flow FI/CO
1. 2. 3. 4. 5. 6. Enquiry Opportunity Quotation (Creation and Approval) Creation of Sale Order MRP Run Creation of Planned Order Creation of Production Order and Purchase Order External Procurement Goods Receipt In FI: Consumption Account To GR/IR Account Dr (PROFIT & LOSS ACCOUNT) Cr (PROFIT & LOSS ACCOUNT)

In CO: Material costs will directly get posted to Sale Order

7. Material Consumption to Production Order:

Not applicable 8. Activity Consumption to Production Order In FI: No Entry In CO: Activity Costs are posted to Production Order 9. Goods Receipt from Production Order: a. Only Material Document for movement of goods will be there. b. The stock is neither valuated in CO nor in FI 10. Delivery to customer: a. Just goods movement from sale order stock to customer. b. No value postings in FI and CO 11. Invoicing to customer In FI: Customer Account To Revenue Account Dr (BALANCE SHEET) Cr (PROFIT & LOSS ACCOUNT)

In CO: COGS and Revenue get posted to Sale Order Period end closing Production Order 12. Revaluation of activity prices: Production Order and Cost Center will be debited or credited as the case may be

13. Calculation of WIP: 14. Calculation of Variances:

No WIP No Variances 15. Settlement of costs to Sale Order: All the costs accumulated in Production Order gets collected to Sale Order 16. Settlement of Variances: No Variances in Production 17. Result analysis at Sale Order: In FI: WIP Account To Change in WIP Account If the Order is completed: Change in WIP Account To WIP Account Dr (PROFIT & LOSS ACCOUNT) Cr (BALANCE SHEET) Dr. (BALANCE SHEET) Cr (PROFIT & LOSS ACCOUNT)

No CO postings will happen 18. Settlement of Sale Order: COGS, Revenue and other direct sale order related values will get posed to PA.