Balance Sheet Valuation Procedures

Dear Experts,
In IMG Setting for :-
Balance Sheet Valuation Procedures -> Configure LIFO/FIFO Method -> General Informaiton -> Activate LIFO/FIFO Valuation (Tcode: OMW4) "LIFO Valuation Active" and "FIFO Valuation Active" button are SELECTED, what does this mean? Balance sheet valuation is based on which valuation? Please advise.
Thank you.

Hi ,
What you are looking at is first level of definition. There are further levels of control on mvt.types etc.
By default FIFO will be the valuation procedure , but you can set this to different based on requirement.
If you activate only FIFO or LIFO at first level you are left with no choice for further levels.
You may have to consult FI person on how FIFO/LIFO procedure is linked to balance sheet...
Thanks,
sudhakar

Similar Messages

FIFO Inventory valuation without Balance Sheet Valuation

Our business wants to know if they can have real-time FIFO inventory valuation;
At a give point, When we perform and update the material prices through the Balance sheet Valuation - FIFO procedure; system automatically revaluates the inventory at FIFO with offsetting to an expense account.
However, the requirement is to have FIFO real time without performing any month end tasks/ postings to calculate and update the material prices.
Given that the existing material price controls (S and V); Is the above possible ?
With Material Ledger; some of the standard functionalities can be leveraged i,e to have one valuation for std/ actual and the other to have FIFO valuation but the business thinks this is too much of an effort to maintain this functionality. Since, even for this option - the business has to run month end jobs.
Thanks !

Hi
Real time FIFO valuatopn is some thing which would require ML...
however, there are companies who valuated the inventory based on FIFO at period end w/o any use of ML...
I am not very sure as I have never used it - But using MRN9 you can have a comparison of inventory values as per the 2 principles and if you tick "Update Database", it would post to the books....
Please await further replies from the forum members on this...
br,Ajay M

Balance sheet valuation not active (Customizing transaction OMWE)

Hi,
For FIFO Valuation, I have done the following SPRO setting:
1. Activate balance sheet valuation (Trans: OMWE) - as LIFO not relevant, FIFO active.
2. Defined LIFO/FIFO valuation levels (Trans: OMWL) - set as Plant (valuation area).
3. Configured FIFO Valuation areas for year 2008.
4. Define LIFO/FIFO method (Trans: OMWP) - FIFO01 as CUR u2013 current
5. No changes made to movements relevant to FIFO (Trans: OMW4);
While running the MRF1, the system is throwing the following message:
Balance sheet valuation not active (Customizing transaction OMWE)
Message no. MY043
Pls. help in rectifying the problem.
Pls. note that I have already activated the LIFO/FIFO-relevant Check box while creating the Material.
Do I need to execute MRF4 before executing MRF1?
Regards,

hey guys... can anyone help me to solve this issue....

Balance sheet valuation

Dear All,
As I know only P&L hit copa.
What has copa got to do with bs valuation or stock/inventory valuation?
When carry out balance sheet valuation, will hit copa?
Thanks

Hi
1) credit p&l will credit revenue account. if debit p&l that will be expenses account.
Yes, thats correct
2) the valuation can also reverse if we do not want it to happen. right? just like any other finance valuation like goods in transit or foreign currency valuation.
No.. This valuation has to happen.. You cant stop it.... May be you can pass manual JVs to nullify the effect.. BUt you cant stop it from getting posted
3) what is the difference of going to copa or cost center?
if it goes to cost center, you will treat it as an overhead.. It will form a part of your activity price calculated on that cost center OR will form part of overhead rate maintained for the costing sheet
Taking revaluation amount to cost center makes sense in case of Semi Fin Goods which are not directly sold....
Taking to COPA makes sense in case of Finished Goods which are directly sold, as you can directly map it to the sales revenue and COGS
Hope I have clarified your questions properly.. Do revert for further clarifications, if any
Regards
Ajay M

FIFO - Balance sheet valuation

Hi,
My clients requirement is to have a periodic FIFO valution at the end of every quater so as the value to stock represents the last price of each stock.
For eg if material 10 units of A is purchased on 1.1.10 @ rs.5 =     Rs. 50
                             4 units of A is purchased on 10.1.10 @ Rs. 10= Rs.40
                                        Total 14 stocks @ Rs.6.43 (MV)          = Rs. 90
issued                    3 units of Aon 15.1.10 @ Rs.6.43                 =Rs. 19.29
stock valuation as on 31.1.2010                                                  =Rs. 70.17
As per FIFO valuation (75+410)                                                =Rs. 75
the difference is posted to consumption ac when the goods are maintained at MV.
I have executed the process through MRF1 and was successful but when i am trying the again i am not getting any results..

Hi
Real time FIFO valuatopn is some thing which would require ML...
however, there are companies who valuated the inventory based on FIFO at period end w/o any use of ML...
I am not very sure as I have never used it - But using MRN9 you can have a comparison of inventory values as per the 2 principles and if you tick "Update Database", it would post to the books....
Please await further replies from the forum members on this...
br,Ajay M

Currency Valuation G/L Account Balance Sheet Posting F.05

Hi all,
Is there a way to post the Currency Valuation F.05 for G/L account balance sheet posting to another account than itself.
I cannot find any configuration on that, and a trace look to show that it goes back to SKA1,
SKAT & SKB1.
Open item have configuration in OBA1 and we can fix the posting where we want.
But the currency valuation for the account balance always happen to the same account.
Thank you,
Carole

Bal.sheet adj.1 in OBA1 is for that only. The GL account is for Identifying that this is FC account in case of Valuation Loss/ Gain.
Incase of realized loss or gain, it is the same GL account that has to hit in the local currency.

F.05 foreign currency revaluation (Balance sheet preparation valuation)

Hi,
I have run the revaluation (F.05) for a balance sheet account by mistake ticking the "balance sheet preparation valuation" box. Hence i could see some value populated in the coulmn old differences in the revaluation report. Please advice will this have any wrong impact to that account. if so how can i reset the posting made and run the revaluation without ticking the "balance sheet preparation valuation" box.
Thanks and Regards,
VK

Hello VK，
You could reset the valuation difference by using the following method:
1.T-cd:OB59->selecting the valuation method ->in valuation precedure area, selecting "reset" radio button->save it.
2. T-cd:F.05 ->using the same parameters that you ticked the balance sheet preparation valuation" box when you ran F.05 last time.
3.After running F.05->BSEG-BDIFF will be reset to zero in valuated docs.
Best Regards,
Gladys xing

Foreign Currency valuation- balance sheet preparation valuation

Hi,
I have a doubt in foreign currency valuation.
When we tick Balance sheet preparation valuation ( in t-code F.05), no reverse postings are generating, eventhough i tick reverse postings. why is this happening?.
What is happening when we use Balance sheet preparation valuation in Foreign currency valuation?
Thanks,
Vinay

Vinay,
Yes as explained earlier it converts balance sheet from one( Local) currency to Another (foreign) currency on a particular date.
For example if your balance sheet currency is EUR and your foreign currency is USD. It will convert EUR into USD on that particular date on all open items and post it to
the expense and revenue accounts for exchange rate differences from valuations. For payable and receivables accounts you must also define the financial statements adjustment accounts.
This is what it happens check your own thread
http://scn.sap.com/message/14258690#14258690
Best regards
Hrushikesh

Balance sheet adjustment account for Foreign Currency Valuation

Hi all,
I know that we enter AP /AR balance sheet adjustment account for Open items account when we configure for Foreign currency valuation with Tcode OBA1 and KDF. I wanted to know what account can I enter in that field for other balance sheet account which are not open item managed?
Also, Do we valuate GR/IR accounts in foreign currency valuation?? If yes, what balance sheet adjustment account do we enter for those accounts?
Thank you.

HI,
The valuation of <b>foreign currency balances</b> requires a special key that is assigned the gain and loss accounts for posting any exchange rate differences that occur during valuation. You can freely define this key. You then enter it in the master records of the accounts that you want to valuate. To post the differences that are determined from a group of G/L accounts to the same gain or loss accounts, enter the same key for all these G/L accounts.
Create the Create here with Tcode OBA1 and KDB-Exch. Rate Diff. using Exch. Rate Key
And assign this in the GL account master in the Control Tab.
Thanks
Vijay

Balance Sheet *without* the Foreign Currency Valuation

Hi FI experts,
We have an issue and need help from the community.
Our customer wants to have a Balance Sheet without the Foreign Currency Valuation, besides the normal balance sheet with FC valuation.
Does anyone in the group have already faced an issue like this?
Is there any possibility to generate the balance sheet without FC valuation even after run F.05?
Thanks in advance.
James Francisco
SAP FI/PS Consultant.

Hi,
You certainly can do this by creating a financial statement version that does not contain the revaluation balance sheet adjustment accounts and the gain/loss accounts. If you have accounts that are getting revaluated against itself and not a seperate adjustment account, then you can not. For accounts that are not open item, they will revalue against themselves so you need to check on that.
Thanks,
Jes

** Balance sheet at Profit center with Inventory valuation at CoCd level **

Scenario:
Inventory valuation is at CoCd level. Moving Average costing.
There are 2 plants in CoCd 3000.
1.     I created material 1234 in plant P1 (profit ctr P1) & in plant P2 (profit ctr P2)
2.     Then, I received a PO - $1000 (100 qty @ $10) in plant P1 & $1100 (100 qty @ $11) in plant P2
3.     So the Moving average at CoCd is $10.50
4.     I created a Sales order to ship out 100 qty from plant P1. The PGI posted at moving average at CoCd level i.e.
        Dr COGS $1050
        Cr Inventory $1050
5.     Now, Inventory GL account value becomes -ve 50 at plant P1
6.     MB52 looks wrong as below. It doesnu2019t show -50 in P1 & 1100 in P2
Question:
Is there any standard way to accomplish Balance sheets at Profit center with Inventory valuation at CoCd level?
- We can do custom development to distribute Inventory balance on profit centers upon receipts or Invoice receipts (i.e. anything that updates the Moving Avg at CoCd) eg in step 2, when $1100 (100 qty @ $11) in plant P2 is received, then post +500 to inventory in P1 & -500 in P2, to make both P1 & P2 at 1050.
However, this would be huge effort on Development, Testing & ongoing maintenance.
- Another custom way would be to post to Profit centers a periodic entry to correct Inventory balance to (Qty on hand x Moving Avg at CoCd)
Please let me know your thoughts. Thanks.

Hi,
I don't think so it's happen at valuation at Company code level.
Inventory Valuation always at plant level only not at Profit center and company code level.
In your case 2 Plants and 2 Profit centers. There is no chance to different the value at Profit center . Check once in Dev. server with example.
Regards,
Kishroe

Balance Sheet translation at spot rate at ANY point in time

My client produces its financial accounts in AUD. They will have open items in AR, AP and Bank in foreign currencies. WITHOUT running periodic valuation they wish to produce a Balance Sheet at any point in time during the month applying the applicable daily spot rate to valuate the Foreign Currency open items (for reporting purposes only). I have run S_ALR_87012284 and maintained the special evaluations tab for Display Currency (AUD), Key date for translation (current date) and exchange rate type (spot rate type). However, this does not appear to be revaluating the open items in the subledger accounts to produce the balance sheet at the current spot rate. Appreciate input / alternate approach. Cheers, Dean.

Hi Chirag
As per Oracle following are the rules that has to be followed for translation.
1. For Balance Sheet Accounts (Asset & Liabilities) GL as a default uses the YTD rule.
2. For P&L Accounts you can choose between YTD and PTD rule. So in your case you can use the default PTD Rule. (Profile Option 'GL Translation: Revenue/Expense Translation Rule')
YTD Rule = (Translated Period Amount = Period-End Rate x YTD Ledger Currency Balance - Beginning Translated Balance).
PTD Rule = (Translated Period Amount = Period Average Rate x PTD Ledger Currency Balance)
Hope this helps.
Regards,
Gautam
Edited by: Gahlout on Sep 25, 2012 11:04 PM

Change GL Account Type from Balance Sheet Account to P&L Statmt Account

Hi Experts's
We have mistakenly defined the GL account as type Balance Sheet Account type and Some postings are done on this GL, we need to change it to P&L Statmt Account, When we do that it's throwing message FH602, as below.
Change balance sheet control in spite of account balance
     Message no. FH602
Diagnosis
     You have changed the G/L account from a "balance sheet account" to a
     "P&L account" or conversely.
     The balance of the account is, however, not zero.
Procedure
     Check your entries.
     If the G/L account was already posted in the previous year, execute the
     balance carryforward again for the current fiscal year. (program
     SAPF011).
Please let me know the procedure to do this change, or do i have to run any report.
Thanks

HI
If you are mid-year please try this:
Balance sheet having 10000 credit balace
try to post like this manually
Balance sheet account dr 10000
to Profit and loss account 10000
now tick the Profit and loss account and reverse the entry
try this in test environment first
Thanks & Regards
Phaneendra

Default profit centers Plant wise for Balance Sheet tax relevant Items.

Dear All,
We have an issue in profit center acccounting.
In balance sheet accounts, Vat input tax payable, TDS payable, Cenvat clearing etc are picking profit center from 3KEH. When Exicse is getting captured cenvat clearing account having the profit center but while doing the MIRO cenvat clearing do not have profit center & plant.
Why it is so?
Basically we are doing the following steps.
1. Purchase order creation ME21N.
2.Goods received via migo
3. invoice receipt via miro.
At the time of miro posting, system creates automatically accounting document, with default profit center maintained in 3KEH, which are assigned to Vat input tax payable, TDS payable, other tax accounts. For GR/IR clearing account right profit center is picking without any mistake, while doing MIGO & MIRO.
We need to extract the Balance Sheet profit center wise at plant level.
Derivation rule is created for this balance sheet account along with Valuation area condition to post to correct profit center maintained under Tcode: 3KEI . But system is taking only default profit center (3KEH).
I have checked configuration and the following areas like Material master costing view, tax code areas, and account group but did not find any mistake.
Please advice and Guide us, how to get correct profit center at plant level for these balance sheet accounts instead of default. (I want to make default profit centers plant wise).
It is urgent.
Thanks,
Shailendra Gupta.

Hi!
You can use following report :
S_ALR_87013336 (Report for Balance sheet at Profit Center and Group Level).
Hope this will help.
Thanks & Regards,
Taral Patel

When is 'Clearing Balance Sheet' and 'Clearing Inc Stmt item' used?

Hi,
In what circumstances, clearing balance sheet item and clearing inc stmt items are used. Commonly, it's used for balance carry forward task, where system recognized the net profit for the year (in PL) and current ytd profit (in BS).
i was trying to post the following entry via manual posting and system generated additional 2 lines:
DR Sales 100
CR AR 100
DR Clearing BS item 100 < System auto generated additional one line
CR Clearing PL item 100 < System auto generated additional one line
(The above entry is enter at posting level 01)
I was trying to post another 2 balance sheet items via manual posting at posting level 30. There was no additional 2 lines created.
Please advise.
Regards, Renee

Rene,
In real life there are usually closing periods in enterprises, when accountant close their books. Closing partially means that all revenues/gains and expenses/costs are summed up, and net profit in income statement calculated. During this procedure accountants usually make closing entries. After that this calculated net profit is to be transferred to balance sheet, to the retained earnings of the current year item.
In SAP SEM-BCS there are no closing entries. Instead, the system monitors whether entries in P&L were made. The P&L hierarchy in BCS has the following structure:
- one main node under which all revenues and expenses are gathered
- clearing item located OUTSIDE the P&L main node (equals to net profit).
The amount on the clearing item equals the sum of all P&L items under main node, with the opposite sign. So, the sum of P&L items & clearing item is zero.
If the system detects postings to the items located under P&L main node, it recalculates the net profit and adjust the clearing item in P&L accordingly. Since net profit in P&L should correspond to the RE in B/S, the system adjust clearing item in B/S also. So, AT ANY MOMENT the B/S & P&L in the system correspond each other. The work of special/clearing items is like pseudoclosing.
That's the purpose of these clearing items. And as I said earlier they has nothing to do with balance carryforward.
Resume: in case of postings to P&L, the net profit changes and the system adjusts net profit in P&L & B/S (adds two additional entries).
There is NO NET PROFIT CHANGE (and additional entries) when postings made in the balance sheet ONLY (as in your case). -- (As you know, there is almost no possibility to make postings to clearing item in B/S).

Balance Sheet Valuation Procedures

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