Decimal inconsistency in calculated inventory cost

Hi,
Material Std price is 26.77
while issuing (261) the quantity 11.500 the system is calculating the cost 26.77 * 11.500 = 307.85 (rounding 307.855 to 307.85)
and while reversing (262) this transaction, the system is calculating the cost 307.86 (rounding 307.855 to 307.86)
0.01cost difference is coming.
is there any solution or SAP Note to change cost calculation?

Hi
One possible solution, which I always prefer is, to have the price unit of 1000 instead of 1...Even SAP recommends this... You can avoid a huge chunk of rounding errors with this
You can change price unit anytime using T code MASS or MM17....
regards
Ajay M

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Inventory Costing Vs Material Costing

Can someone explain the difference between inventory costing and material costing ?
Edited by: VamsiM on May 3, 2010 2:14 AM

Hey,
An inventory cost estimate is used to update tax and commercial price, or prices other than
standard. In other words, the costing type is not for the standard price.
Best Regards
Young

Renovation Order Calculation Variable Cost about Material

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I created PM Renovation Order (SPRO) and it function, but I have problem with calculation variable Cost about Material. If I move material from valuation broken to repaired, so average cost is always 0. What is exigency to set, so cost averaged. At order are cost material I work.
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hi
ensure that valuation type(Repaired) should be in "to" area in the refurbishment order.
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Suggestions for Inventory Costs Tables - Retail

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Dear Silvia,
Would you please tell us how you can adapt this requirement?
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Help with sql command for inventory cost change report

Inventory Cost Changes within date range.
Columns on report
Item LastDateChanged CurrentCost PriorCost
Source File-TransHst (Type 14 is inventory cost change)
example data
Type,Item,DtChg,Cost
14,15825,02/01/2014,357.00
14,45832,03/15/2014,95725.00
14,15825,10/01/2013,322.00
14,45832,06/22/2012,94632.00
example output needed
Item LastDateChanged CurrentCost PriorCost
15825 02/01/2014 357.00 322.00
Using Crystal Reports 2008 with Oracle Database
I cannot create sql to retrieve data to create report.
Need Item, Last Change Date, Current Cost and Prior Cost as output of sql
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HI Jerry,
I don't know real syntax of your database, try below SQL, you may have to modify the syntax wherever it is required.
Select t.Item, Max(t.DtChg),(case when year(t.dtchg) = Year(sysdate) then t.Cost else 0) as currentCost,
(case when year(t.dtchg) = Year(sysdate)-1 then t.Cost else 0) as PriorCost
From TransHst t
Where Type=14
Group by t.Item
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Sastry

Calculated Std cost est vs Material Master Std cost price

Hi all,
Why will a calculated std cost est not be equal to my standard price in my costing 2 view on the material master? For ex:
I calc a price for material 1 = R11.50
The price in the material master (MBEW-STPRS) is R10.80.
I can see that the difference is some activities for one of the operations in my production process, but it does not show on my material master.
Can anyone suggest a solution?
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The planned price can be copied from CO-PC, or entered manually depending on your settings in CO. If you open the standard material cost and release it the two price of planning price and standard price will be same.
As to the price of PO that is another price, actual cost happened.
FYI.
If no marked standard cost estimate exists, you can enter a price in this field manually. This makes it possible for the system to find a price when costing an assembly via the valuation strategy, even if no standard cost estimate with status KA (correct) exists for a BOM material (such as a raw material or semifinished product).
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Hi Gurus,
I have a Requirement for calculating the cost for Subcontracting Non stock items N as it is getting calculated in standard functionality for subcontracting items of Type L.
This will be done in CK11n ( used to calculate the standard cost estimate of the product) for header as well as component materials.
please suggest the user exit or Badi where i can change.
Please refer the below logic-
BOM for the material 2000500 as Header and 1LPL0835298AB as a component and this component has an assembly with 7008508 as a component and this component is an Sub contracted item and this has an assembly with component 1LBA182151-3.
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Hi Surya,
Please put breakpoints in any of the below BADI's and check if any of them will trigger for your
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CK_KALAMATCON2_CI                       BAdI for CI Fields for Table KALAMATCON2
COSTINGRUN_CK                           Edit Costing Run
COST_APPORTION_CK                       Maint Apportionment Structure Joint Production: Dist Rules
CO_PROD_COSTING_CK                      Cost Management for Joint Products (Costing, Target Costs)
DATA_EXTENSION_CK                       For Data Enrichment in Product Costing
DYNPRO_EXTENSION_CK                     BAdI for Interface Enhancement in Costing
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CJ9L, calculation of cost forecast plan

Hi,
Prerequisites: Plan work 260 hours. Constraints on start and finish date. Distribution rule is equal to distribution according to factory calender. For scenario 2) actual work is 100 hours. Remaining work is 160 hours. Duration of activity is 1 year.
Scenario 1) When calculating project cost forecast without any actual cost from time reporting, the cost forecast is distributed over the remaining duration of the activity.
Scenario 2) When calculating project cost forecast with actual cost from time reporting, the cost forecast is planned on the same period as the forecast report is run. We would like this to be done in the same way as in scenario 1 above and distributed according to the factory calendar and not have all of the remaining cost on the last period of the activity.
If someone out there has experience of this issue, we appeciate your advice.
Best Regards ,
Ioannis

Hi Ioannis,
Please see the online document
http://help.sap.com/erp2005_ehp_04/helpdata/EN/c2/1ad778462611d2b4310060
94b9c9be/content.htm
to see how the internal-processed activity should work in CJ9L.
I do think, the described scenario 2 do not work in that way because the factors you described. As far as I remember, the following factors are relevant for such case.
1. If the activity is paritally confirmed. What are the actual finish and forecast finish (or remaining duration).
2. Is the forecast work maintained.
3. What is the key date of CJ9L.
Generally there is no logic just to put the remaining costs in the last period, but it can happend that based on the factors above, which uses the last period as remaining time frame.
Kind regards,
Zhenbo

Can we split Inventory costs during FI postings.

Thank you in advance for your time.
Business is asking to split Fixed cost and variable costs (inventory costs) and post to different General ledger accounts when PGI is done. Is this possible to do?

Review if there is any userexit that can be used or a BTE (transaction FIBF).
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Lastly, I have had a similar requirement for two previous US clients and this was because Oracle Hyperion was used as the enterprise financial reporting system.
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What is the formula for calculating average cost for an item in inventory

Hi,
Can someone please share the formula to calculate average cost for an item in inventory which uses Average Costing?
Thank you,
Naren.

HI
When a transaction updates the average cost of an item, the new average cost is calculated as follows:

Reversing A/P Invoice posted with wrong date and inventory cost adjustment

Here's the situation:
We had a PO dated 9/1/09 for items with a cost of $14.50, a Goods Receipt was entered 9/15/09 for the items with the same cost on the PO of $14.50. Somehow the order got lost in the mix and the AP invoice wasn't entered until today, with a posting date of 1/21/10 and the cost was corrected per the original vendor invoice to the right amount of $19.33. The invoice was actually dated 9/15/09. This resulted in hitting the vendor, purchases clearing and the inventory account (for the cost adjustment) in January 2010 when it should have occurred in September 2009.
The inventory itself has come and gone in the time between the GR and when the invoice was done with the incorrect date. Normally I would try to reverse the transaction with a Credit Memo and start over, however since the inventory side happened so long ago, I don't see any way of easily going backwards. I thought about doing service CM/invoice but what I am most concerned about is having the inventory valuation occur properly at the correct time. I'm not sure how to go about this.
Using SAP B1 2007A PL42 with moving average inventory.
Any thoughts would be appreciated.

Nicole,
I am afraid you may not have ability to do the adjustment based on historical date that long times ago. You know, the moving average has limited calculation based on current quantity and cost. There are no options to go backward especially new year is coming.
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Standard v/s inventory cost estimate

Hi
In Indian context, which type of cost estimate should be used?
Regards
Samir

Samir,
Material Valuation determines or records the stock value of a material. The stock value is calculated using the formula:
Stock value = stock quantity x material price
Thus, if the stock quantity or the material price changes, the stock value changes.
Implementation Considerations
Material Valuation is not an independent application area, since most Material Valuation functions take place automatically in the SAP System. Depending on how a company is structured, tasks that have to be carried out manually belong to either Inventory Management or Invoice Verification. In Indian context also it will depend on these factors.
Integration: Material Valuation represents a link between Materials Management (MM) and Financial Accounting (FI), since it updates the G/L accounts in Financial Accounting.
Material Valuation serves the following purposes:
Adjusting material prices to market prices
Performing revaluations
Executing balance sheet valuation
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System settings
Material master record
System Settings: By customizing the SAP System, you adapt Material Valuation to the requirements of your company. Below are some of the questions you answer when you configure the system:
At which level are materials valuated?
Which types of goods movements are relevant for valuation?
Which accounts must be posted to during a transaction?
Material Master Record: As a rule, a material master record is created for every material. The information contained in this record includes valuation data for the material. When maintaining the material master record, you must decide the following:
Whether a particular material should be valuated at all
Whether different sub-stocks of a material should be valuated differently
Whether the stock of a material should be valuated at a constant price (standard price) or whether the price should change in accordance with the delivered price (moving average price)
Which G/L account the stock value of a material should be managed in
The stock quantity and value of a material and the material price are also recorded in the material master record.
Hope this clarifies. let me know if you need anyother information.
Rgds
manish

Inventory Costing

Hi,
1. Only one item rate is stored in item master table. Which rate is this - Purchase rate/ Landed Rate/Selling Rate.
2. If we want to maintain more than one type of rate for an item, then how to do it?
3. Stock valuation is done on which rate basis?
4. On Costing existing item rate(which rate) is updated on which method?
5. What about Inventory Ledger Report (Date wise stock-in Stock-out with valuation).

Hello Sibasish,
Please see responses to your questions:
1. When you say 'rate' do you mean to say 'price'? They can be defined in the Item Master Data (Header) -> Price List field. The Price Lists you define are used for selling the item. You can have as many price lists as needed.
Purchase Price
This can be defined in the Last Purchase Price. The Last Purchase Price can only be updated by B1 functions as per Note 889702 (AP Invoice, Goods Receipt (Stock Module), Opening Balance, etc.)
Landed Price
The initial cost of the item is determined when the item is received into stock. If you need to post additional costs in relation to the purchased item, you can do so in the Landed Cost function. The initial cost is then updated which will include the additonal costs. Hence, your item cost is now your landed cost.
Or if you refer to Landed Price as a price list which is a fixed percentage of the Purchase Price, you may define this in the Price List function. Create a Price List called Landed Price then define the Factor.
2. To maintain several prices, you can access the price list function to add new price lists. Then, define the prices of the item per price list.
3. The Price List you have defined does not influence your stock valuation. The stocks are always valued based on the amounts or costs when you record their receipts. The valuation can be FIFO, Standard or Moving Average. This is set per item in the Item Master Data -> Stock Data -> Item Valuation.
4. Please refer to my response in #3.
5. Please clarify your question.
I hope the above helps.
Regards,
Lorna Real

Decimal inconsistency in calculated inventory cost

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