JE Passed in case of Standard valuation method in 2007B

Dear All,
I am bit confused---
The scenario is i have done one transaction for A/P invoice.The JE passed in case of A/P invoice & in case of item having valuation method standard & procurement method make is hitting material variance account instead of hitting inventory account since the tax say cst is inventoried.This issue is occurring only in case of standard valuation method.In case of other valuation method the accounting entry is correct, so what might be reasons behind it.
Also, if anyone could provide me sap portal link which will help me out to identify the changes which took place in different PL's.
Regards-
Mona.

Hi Mona ,
The quick thing is to check :
1. What is the standard price of the item
2. Is your GRPO price is difference than AP invoice
Everytime you purchase it will check against your standard price and if it is different it his variance account .
Hope this helps
Bishal

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You may use Inventory Revaluation to revalue the item cost.
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Hi
Yes its right not to change the earlier valued items on one costing method to another.
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Error in "Inventory Valuation Method using Moving Average"

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Hi,
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@jrockman li
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a sample Snippet for understanding purpose
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Difference between All valuation methods

Hiii Guru's,
Can anybody tell me the actual difference between the inventory valuation methods given in B1 - Standard / Moving / FIFO ... Actually I want to know their impact in each case if I maintain my masters at item group level. so how it will affect my accounts... preferrably give examples in each case to understand the different scenario...
Thanks in advance. I will assign points for helpful asnwers.
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Hi,
Standard :-
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Eg, Lets consider Item A
Valuation Method : Standard
Value : $56.00
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Moving Average :-
This means a valuation takes place based on the corresponding quantities and prices for each goods receipt and issue, and the moving average price is updated accordingly. The valuation price is calculated as the quantity multiplied by the average price.
Eg, Let's Consider Item A
Valuation Method : Moving Average
Value : $56.00
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FIFO :-
Under this valuation method, the system assumes that the items that entered the warehouse first will also exit first. This means goods issues are valuated with the prices that are valid for the first goods receipts.
Eg., Let's consider Item A,
Valuation Method : FIFO
Value : $56.00
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Thanks for the info guys, it will come in handy.
I need to validate that a number is entered with zero or one decimal place, then make sure it is evenly
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Valuation Method

Good Morning.
may somebody help me please?
I have a problem with the stock value method.
I need to change the method from some items, from standard to weighted average.
I followed all the step mentioned in "Help Sap".
All warehouses are in zero, and there are not open documents like purchase orders, production order, deliveries without invoice, etc.
I have done the same with several items, some allow me to change the method but not in others, and i do not know what is the cause
thank you very much in advance

HI
Check This SAP Note
869071 - Changing the valuation method items
https://websmp230.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/sno/ui_entry/entry.htm?param=69765F6D6F64653D3030312669765F7361…
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How to call a standard BOR method in a program. For example I have to call BOR method ISUSMORDER.Release in my program but don't know how to call.
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Mithilesh

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I am trying to understand the concept of different valuation methods. could you explain using examples please ?
Say for instance, a goods receipt is raised in USD for 100USD on 2 Jan 2009 and local currency is EUR. Exchange rate is 1EUR : 1,5USD. On 4 Jan 2009 invoice received at rate of 1EUR : 1,6USD.
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tks

Those are different ways of valuating your Foreign Currency Operations depending or the country regulations:
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RA thru Valuation Method 07 and its inexplicable settlement

Hi,
I have run RA and Settlement with Valuation method 07 and seen the results. But postings to COPA is perfect but Finance postings are in reverse. Let me explain and request you to support me with your valuable inputs.
The Actual costs is 1000 whereas the planned estimate is 2000. The Actual revenue is 1200 whereas the planned revenue is 3000. The POC is 45%. Hence, while doing RA, the system has given the result that the calculated costs is 900 and hence WIP is 100. In the case of Revenue, the calculated revenue is 1350 and hence 150 is revenue in excess of billings. This is quite ok.
But when it comes to settlement, the change in WIP accounts is debited and WIP account is credited with 100 instead of change in WIP account is credited and WIP(BS a/c) is debited. In the same way, the Rev in excess billings(P/L ac) is debited 150 and Res for excess billings(BS a/c) is credited.
My copa postings shows the revenue of 1350 and cost of 900 and a profit of 450. But the income statement shows loss of 50. The 250 goes to the debit side instead of credit side of the income statement. It is quite inexplicable.
Regs!
Edited by: Ashok Singh on Apr 24, 2009 5:09 PM

hi
check your settings for accounting documents postings

RA with Valuation Method 7 with POC %ages

Hi,
Highly appreciated, if you can detail the steps involved in carrying out RA with Valuation Method 7 with progressive value analysis. Here, we can give a percentage of POC into the system as certified by the Engineers unlike Valuation method 3 where the POC is calculated on the basis of actual costs incurred.
In the case of valuation method 3, only revenue is analysed by the system with reference to the POC and necessary entries are posted as Revenue surplus or Revenue in excess of billings. Whereas in the case of valuation method 7, both the revenue and costs are analysed and necessary provisions are made both for revenue and costs.
Regards,
Ashok Singh

hi
check your settings for accounting documents postings

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Hi PS Experts,
The building block document on Profit Realization 'I58_BB_ConfigGuide_EN_DE' says that as per IAS 11 and 18, we need to configure Result Analysis Valuation Method 3 only which is cost based. Is it right and whether you are all having this valuation method in your SAP system where IFRS standards are applicable.
Then, in addition to this cost based Revenue Recognition through this valuation method 3, we would like to input realistic POC(Engineer's certificate) into the system. Whether it is possible and if so, how and what other valuation method we need to use with or with changes to a particular valuation method. Appreciate your valuable inputs on this.
Regards!

Hello,
Cost based POC i.e Method 3 is compliant with IFRS requirements. Other methods also are so.
The choice of RA method depends on value/risk/duration/revenue plan of the project. We use this method for high value projects running for a long time where there is a need to recognise revenue before actual billing.
Completed contract method is also used and very much in accordance with accouning principles.
For POC calculated through progress determination- say Engineer's certificate- you can use method 7.
Thanks,

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Dear All
Is it possible to Change the valuation method from FIFO to LIFO or Moving Average Price, when the Stocks are available in factory

Standard to MAP and vice versa are very well explained in the document provided by Ramana on page 31. Thanks Ramana!
As far as the FIFO and LIFO valuation are concerned, the system continues to maintain in standard or MAP, as setup by the price control indicator, S or V. What the system does is, at the period end, finds what would be the value of the closing stock, if FIFO or LIFO is method is followed. It is only relevant to valuation of closing inventory. It is for information purpose, but still if you want to value the inventory on FIFO or LIFO basis, then you can set up the update indicator. If it is done so, then the value proposed by LIFO/FIFO analysis is updated, as if it were a price change.
In OMWE you can parallely maintain both LIFO and FIFO active.

Inventory Valuation Method

HI,
My client has the requirement like comparison of Item with different valuation method in a single report.
Is there any provision to do this.
Please suggest
Regards,
Vikram

Dear Vikram,
Inventory Valuation Method is inteneded as a managerial report to check what-if scenarios. For instance, you can see what happens if you value an item based on a different costing method. This report is not intended to be used as report for auditing. For audititng purposes use the Inventory Audit Report.
You can use any standard method for the inventory valuation. You can also define various criteria to restrict the selection for inventory valuation.
Goto Inventory->Inventory Report->Inventory Valuation Report.
You will have to export to excel and consolidate the results.
Please note It can be run for other costing methods than actually selected for an item. For the selected method of valuation for an item, please run Inventory Audit Report. Exporting will work for you.
Regards
Preety Goel
SAP Business One Forums Team

JE Passed in case of Standard valuation method in 2007B

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