Market price analysis and loss free valuation example
Hi,
I want to get advice on the devaluation activity.
There are 3 method which are market price, range of coverage and loss free valuation.
I read on sap documentation yet I cannot really get it. So before I execute MRN0, MRN1 and MRN3, I need help to understand
What does it mean by market price and loss free? Can give example of these 2?
I got the definition but i not quite understand. So I need example to explain these 2 method.
"When determining the lowest value based on market prices, the system searches for the lowest price (or alternatively, the most recent price) among the various prices stored for each material. We recommend that you limit the period during which the system retrieves data to the last three months, so the prices are as up-to-date as possible"
"You may need to devaluate materials sold by your company if they will probably not fetch the material price when they are sold. For example, if the demand for a material diminishes because it is no longer the latest technology, you can only sell this material at a loss compared to the material price."
Thanks
Hi
You may need to devaluate materials sold by your company if they will probably not fetch the material price when they are sold.
As per my knowledge devaluvate means you are giving discount on your material .
Regards
Kailas Ugale
Similar Messages
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Trading Partner in Gain and Loss from valuation
Dear Friends,
My issue is with the valuation posted for account maintained on line item basis only (Not open item managment). Since the account is maintained on line item basis, only balance is valuated each month thru f.05.
The problem is that when account posted with Loss or Gain each month on valuation, the document will not have a Trading partner assigned which causes my inter-company elimination issue.
How to get Trading partner assigned to document posted on valuation (F.05) I have tried sustitution rule and OB32 to make Trading Partner as editable but SAP does not allow both.
Best Regards
VKThanks Venkata,
My problem is with the autmated posting result from forex gain or loss when carrying F.05. These documents autmatically created but donot update the Trading Partner. I can not manually input them even if enter Trading Partner is option in OBA7 is checked.
Best Regards
VK -
Vendor Evaluation scores sub criteria price level and price history
Dear all,
I have configured vendor evaluation with subcriteria price history and price level as automatis.
For test, I created a vendor and a material. Assigned market price for year 2009 and 2010.
Also info record price maintained for the vendor material combination.
Vendor XYZ
Material ABC
For 2009 Market price 8 and effective price 8.5
For 2010 Maket price 8.2 Effective price 8.5
Variance calculated 8.43% and score is 15. This was calculated correctly.
Now I created another material and maintained master data for that mater
Vendor XYZ
Material DEF
For 2009 Market price 18 and effective price 20
For 2010 Maket price 20 Effective price 22
Variance calculated 1% for which the score is 50.
When I go for vendor evaluation through ME61 , system is not considering the average of 2 scores. But giving a score of 50. Score bands are as follows.
5 Price behavior 5.0 10
5 Price behavior 10.0 15
5 Price behavior 20.0 20
5 Price behavior 50.0 20
5 Price behavior 99.0 10
5 Price behavior 5.0- 50
5 Price behavior 10.0- 100
5 Price behavior 50.0- 20
5 Price behavior 99.0- 10
Pls help me resolve the issue
Regards.
Milind DugadeHi Siva,
[Vendor Evaluation|http://help.sap.com/erp2005_ehp_03/helpdata/EN/8d/b97db3414511d188fc0000e8322f96/frameset.htm]
[Price Level|http://help.sap.com/erp2005_ehp_03/helpdata/EN/8d/b97db3414511d188fc0000e8322f96/frameset.htm]
[Price History or Behaviour|http://help.sap.com/erp2005_ehp_03/helpdata/EN/8d/b97db3414511d188fc0000e8322f96/frameset.htm]
Reward if helpful.
Thanks and Regards,
Naveen Dasari
Edited by: Naveen Dasari on May 16, 2008 1:10 PM -
All about PnL[Profit and Loss] and SGA[Sales Growth analysis]
hello SDN.
I have just joined a consumer goods MNC as an executive trainee working on SAP BI.
My current profile is on SGA loading and PnL loading.
Can anyone tell me more about SGA and PnL.
I do not want the SAP technical points.
I need the core business explanation for these topics.
Why are they needed and what role they play at the management level, etc...
Waiting for the reply eagerly
ThanksHi,
I think u r asking more on functional analysis, Management uses Sales Growth Analysis (also called Top Line analysis) to know the growth rate in their Revenues, it shows their Market share and customer retention and new customers added, whether their promotional campaigns worked or not? like this it helps the management.
Coming to Profit and loss analysis or also called as Bottom line analysis, it shows their efficiency in optimum utilization of resources, increase or decrease in operating expenses etc.
based on the above two analysis, the scenarios may be like this:
Revenues increased, but profit come down, what r the reasons?
Revenues decreased, but profits increased, reasons?
etc.
this may be useful
Thanks
Ganesh -
ML Price Analysis CKM3N- 643 versus 645 MT - Grp valuation
Hi Everyone:
Our current system has Group Valuation and Transfer Pricing with material ledger activated (10 and 31 currency types). While performing testing for intercompany stock transport orders, I noticed that in CKM3N (Material Price Analysis) 'Purchase Order Grp' shows up if we use 645 movement type but not when we use 643. Is that an expected system behavior? We have ECC6 EHP6
We had to use 643 since we are using cross-company stock transport orders with SD billing and invoice. We don't have stock-in-transit since the plants are only 200 miles apart.
Thanks in advance for everyone's help!
643 Movement type
645 movement type -
SALES Analysis and profit loss statment
Hi All ,
Dear Experts,
My Sales Analysis and profit loss statement Value is deferent . i want to know that which entry show in sales analysis and which entry show in profit loss statment .
Thanks & Regard
AREEBA ALIAree,
Both report are different. The sales analysis will use document of sales orders, delivery order, invoice and credit memo.
The P&L use journal entry of invoice and credit memo. Can you be more specific about the different ?
JimM -
Mismatch - Profit and Loss Account and Sales Analysis Report
There is a mismatch between Sales Analysis Report and Profit and Loss account Sales Figure.
What will be the reason?Hi Nishiraj.......
then you must update or create new Financial Report template for Profit And Loss Account and then check.
For creating Financial Report Template please check this.....
Financial--> Financial Report Template.
http://help.sap.com/saphelp_sbo88/helpdata/en/45/10c8c90b9941dfe10000000a1553f6/content.htm
Regards,
Rahul -
Im From Georgia(Republic of), and im wondering when will the unlocked and contract free version on the new iPhone 5 be available, and is the price going to be the same as iPhone 4S's($650)? IF it will be available for pre-ordering i want to buy one.
Assuming you are referring to the US, no one knows for sure but probably 4 to 6 weeks after the release of the iPhone 5 for the same price as the 4s.
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Price S and prive V in material master
Hi,
most customers ask why moving average price and standard price must be set in material master and why I cannot take as V or S price the price my vendor apply when he sells me products and why are necessary the above price ?
RegardsHi
In the standard price procedure (price control u201CSu201D), the system carries out all stock postings at a price defined in the material master. Variances are posted to price difference accounts.
In the moving average price procedure (price control u201CVu201D), the system valuates goods receipts with the purchase order price and goods issues with the current moving average price. The system automatically calculates the latter upon every goods movement by dividing the total value by the total stock quantity. Differences between the purchase order price and the invoice are posted directly to the relevant stock account if there is sufficient stock coverage.
Characteristic of Price Control u201CSu201D:
u2022 All stock postings are made at a standard price.
u2022 The system posts all differences from the standard price to an account u201CExpense/Revenue from price differenceu201D.
u2022 Exact values are available for cost accounting / controlling purposes (All goods issues, such as issues to a production order, are valuated at the same standard price. This allows better analysis of the costs of production orders).
u2022 In the accounting view, we can display differences between the delivered price and the standard price.
u2022 We can change material prices if required (generally at the end of period). This causes the system to revaluate the total stock for a valuation area.
Posting at Standard Price.
A receipt posted to a stock account is generally posted at the standard price. Differences between the order price and the standard price are posted to an u201CExpenses/revenue from price differencesu201D account (2).
Differences between the invoice price and the order price are posted to an u201CExpenses/revenue from price differencesu201D account (3).
The moving average price is also recorded in the material master when the material is valuated at a standard price. It indicates the extent to which the standard price differs from the delivered price.
Characteristic of Price Control u201CVu201D.
u2022 Receipts are valuated at their actual price (as per purchase order, invoices,...)
u2022 The system modifies the price in the material in the material master according to the delivered price.
u2022 Issues are generally valuated at the current material price.
u2022 The data used for cost accounting / controlling purposes therefore contains price fluctuations.
u2022 Only in exceptional circumstances does the system post at a difference to the u201CExpenses/Revenues from price differencesu201D account (The system makes a posting to an u201CExpenses/revenue from price differencesu201D account for a material valuated at a moving average price only in the case of a debit or credit when the stock coverage in the company code is smaller than the quantity to be debited or credited, e.g.: When we reverse an invoice, the account movements made when the invoice was posted cannot always simply be reversed. For example, if there was sufficient stock coverage when we posted an invoice with a price variance for a material with moving average price, but when we reverse the invoice, there is insufficient stock coverage, the R/3 System posts the price difference in the credit memo to a price difference account, although the price variance was debited to the stock account when we posted the invoice)
u2022 We can change material prices if required (generally at the end of period). This causes the system to revaluate the total stock for a valuation area.
Postings at Moving Average Price.
Receipts to the stock account are posted with the value Quantity x Order price. The moving average price is recalculated after every transaction and is therefore adjusted in line with delivered prices (2)/(4).
Differences between the order price and the invoice price are debited to the stock account, as the invoiced quantity is in stock (3).
The difference between the order price and the invoice price is only posted for the 50 pieces in stock. For the remaining 50 pieces that are not in stock, the difference between the order price and the invoice price is posted to an u201CExpenses/revenue from price differencesu201D account (6). -
Use of GR receipt , IR receipt and GR - non valuated options in PO
I want to know what is the use and effect of GR receipt , IR receipt and GR - non valuated options in PO.
Pls help.Hi
GR-Non valuated:
Set the indicator if goods receipts involving this material are not to be valuated. The valuation of the purchase order item will then take place at the time of invoice verification.
This indicator must be set in the case of multiple account assignment for example.
IR receipt:
Specifies whether an invoice receipt is linked to the purchase order item.
You can not do LIV if this indicator is set.
If the indicator is not set, the goods are to be delivered free of charge.
Goods Receipt;
Specifies whether a goods receipt is linked to the purchase order item.
You can not do GR if you set this indicator.
If GR indicator is set, GR-non valuated Indicator also need to be set.
Cheers!
***reward If Useful (RIU) -
How to use SOA Suite in conjunction with SOA Analysis and Design Tools
Hi everybody,
I am a novice in this field and I need some help regarding integrating analysis and design tools with SOA Suite.
We used to analyze and design with Oracle Designer and use its powerful form generator to develop a system. It almost covered all the software lifecycle and kept the traceability between anlaysis,design and implementation.
I have studied about the SOA concepts and read some papaer about SOA Suite. I have also installed the SOA demo based on SOA Suite and I found it absolutely amazing, but my problem is that It seems oracle does not have any tools for SOA Analysis and Design. am I right? if so, How can we analyze and design a system based on SOA concepts and implement it using soa suite in such a way that keeps traceability? What tools is used for this purpose?
It seems that IBM have some tools like Rational Software Architect and Rational Suite which enable people to design and analyze based on SOA concepts and then generates some pieces of code (like oracle designer in old days) but is it possible to design in these tools and then generating codes for SOA Suite ? (for example generating a bpel file from a design model)
As I told before I am a novice in this field and I would be so grateful if other users can share their expriences regarding this matter.
Any help would be highly appreciated.
Thanks in advance,
NavidLearn About All Things SOA:: SOA India 2007:: IISc, Bangalore (Nov 21-23)
Aligning IT systems to business needs and improving service levels within the constraints of tight budgets has for long been the topmost challenge for CIOs and IT decision makers. Service-oriented Architecture (SOA) provides a proven strategy to clearly address both of these objectives. Creating more agile information systems and making better use of existing infrastructure are two leading factors that are boosting SOA adoption across large, medium, and small Indian industries from the BFSI, Retail, Telecom, Manufacturing, Pharma, Energy, Government and Services verticals in India. If you are an IT decision maker belonging to any of these verticals, SOA India 2007 (IISc, Bangalore, Nov 21-23 2007) presents a unique opportunity to gather cutting-edge business and technical insights on SOA and other related areas such as BPM, BPEL, Enterprise 2.0, SaaS, MDM, Open Source, and more.
At SOA India 2007, acclaimed SOA analysts, visionaries, and industry speakers from across the world will show you how to keep pace with change and elevate your IT infrastructure to meet competition and scale effectively. The organisers are giving away 100 FREE tickets worth INR 5000 each to the first 100 qualified delegates belonging to the CxO/IT Decision Maker/Senior IT Management profile, so hurry to grab this opportunity to learn about all things SOA. You can send your complete details, including your designation, e-mail ID, and postal address directly to Anirban Karmakar at [email protected] to enrol in this promotion that is open until 12 October 2007.
SOA India 2007 will also feature two half-day workshops on SOA Governance (by Keith Harrison-Broninski) and SOA Architecture Deep Dive (by Jason Bloomberg). If you are an IT manager, software architect, project leader, network & infrastructure specialist, or a software developer, looking for the latest information, trends, best practices, products and solutions available for building and deploying successful SOA implementations, SOA India 2007’s technical track offers you immense opportunities.
Speakers at SOA India include:
• Jason Bloomberg, Senior Analyst & Managing Partner, ZapThink LLC
• Keith Harrison-Broninski, Independent consultant, writer, researcher, HumanEdJ
• John Crupi, CTO, JackBe Corporation
• Sandy Kemsley, Independent BPM Analyst, column2.com
• Prasanna Krishna, SOA Lab Director, THBS
• Miko Matsumara, VP & Deputy CTO, SoftwareAG
• Atul Patel, Head MDM Business, SAP Asia Pacifc & Japan
• Anil Sharma, Staff Engineer, BEA Systems
• Coach Wei, Chairman & CTO, Nexaweb
• Chaitanya Sharma, Director EDM, Fair Isaac Corporation
A partial list of the sessions at SOA India 2007 include:
• EAI to SOA: Radical Change or Logical Evolution?
• BPEL: Strengths, Limitations & Future!
• MDM: Jumpstart Your SOA Journey
• Governance, Quality, and Management: The Three Pillars of SOA Implementations
• Building the Business Case for SOA
• Avoiding SOA Pitfalls
• SOA Governance and Human Interaction Management
• Business Intelligence, BPM, and SOA Handshake
• Enterprise 2.0: Social Impact of Web 2.0 Inside Organizations
• Web 2.0 and SOA – Friends or Foe?
• Achieving Decision Yield across the SOA-based Enterprise
• Governance from day one
• Demystifying Enterprise Mashups
• Perfecting the Approach to Enterprise SOA
• How to Build Cost Effective SOA. “Made in India” Really Works!
For more information, log on to http://www.soaindia2007.com/. -
hi Gurus,
I need some 6 real time examples relating to Gap Analysis and Tickets of SAP SD. Please could you send me all the details with the scenarios and solutions to my email if [email protected]
Thanks,
Farhan.Hi Farhan,
Gap means small cracks. In SAP world or in Information Technology world, gap analysis is the study of the differences between two different information systems or applications( ex; existing system or legacy system with Client and new is SAP), often for the purpose of determining how to get from one state to a new state. A gap is sometimes spoken of as "the space between where we are and where we want to be."
Gap Analysis is undertaken as a means of bridging that space. Actual Gap Analysis is time consuming and it plays vital role in Business Blueprint [AS IS Process] stage.
A through Gap Analysis will identify the gaps between how the business operates and its needs against what the package can can't do. For each gap there will be one of three outcomes which must be recorded and auctioned,
1. GAP must be closed and customized software can be developed
2. GAP must be closed but software cannot be written therefore a workaround is required
3. GAP does not need to be closed.
A point worth mentioning here is that at time people confuse between user-exits and Gap Analysis. User exits are standard gate ways provided by SAP to exit the standard code and we can write our own code with the help of ABAP workbench, its not new functionality which we are trying to build in sap but its slight enhancement within the same code.
Gap analysis is start point of Realization and once business Blueprint is finished we have to find the realization of sap system for client requirement and there will be certain gaps when compared to system fit. Those gaps can be closed either by re-engineering of business process to fit with SAP or we have to use USER exits in case of small deviations or complete enhancements with the help of ABAP to fit with the SAP system.
The Gaps can differ from company to company. Most commonly, however, missing functionality is industry-specific.
Examples:
1. MGM Studios and Lycos sometime back worked with SAP to develop its new intellectual property management and media advertising management functionality, respectively.
2. A leading Oral care product company wanted the promotion of free-goods where they wanted 'Buy one get 2 different products free'.
A2. A through gap analysis will identify the gaps between how the business operates ad its needs against what the package can and can't do. For each gap there will be one of three outcomes which must be recorded and actioned.GAPs must be closed and therefore customized software can be developed to close the gap. In some cases GAP must be closed but software cannot be written therefore a workaround is required in other words a business process change is recommended to the client.
In simple terms: Gap means small cracks. In SAP world. In information technology, gap analysis is the study of the differences between two different information systems or applications (ex; existing system or legacy system with Client and new is SAP), often for the purpose of determining how to get from one state to a new state. A gap is sometimes spoken of as "the space between where we are and where we want to be." Gap analysis is undertaken as a means of bridging that space.
Actual gap analysis is time consuming and it plays vital role in blue print stage.
Please Reward If Really Helpful,
Thanks and Regards,
Sateesh.Kandula -
Dear Gurus,
I'm new in material ledger and need advise for material price analysis in CKM3N.
There is a value from receipt from next level 13,282,838.
where cause value change 1,383,641 and new price change 365,125.
How to analyse this casue of single and multilevel price different could happen and what report can explain this different.
Thank you,
ISHi Iwan.
+ CKMLQS is the way to analize the price diff from lower levels. In your screenshot the pride diff come from 0414 F3PCS ( the same header material), thats why i ask if you have rework process.
+ Strategy 20 in the standard is a non-valuated sales order stock process, and its easy to verify because in CKM3N you dont write the Sales Order.
I never see a proyect with non-val sales order stock because SAP recomendation:
https://help.sap.com/saphelp_erp60_sp/helpdata/en/90/ba6cfb446711d189420000e829fbbd/content.htm
In the same page, also check the constrains of non-val sales order stock.
+ Also check this old thread, UDO say ML dont work with NonValuated sales order stock (UDO work in ML development).
Material Ledger Functionality with Non Valuated Sales Order Stock
As i told you, i i couldn't give you an accurate opinion without see your system, but i guess the problem is the non valuated sales order stock.
Question:
+ You are in a productive system or in a test system ?
+ Who decide to work with strategy 20? PP boys ?
Arturo. -
Diff. Between Standard Analysis and Flixible Analysis
Can any one explain the differences between stadnard analysis and flexible analysis in Sales and Distribution ?
An information structure combines three kinds of information:
Characteristics
Key Figures
Period unit (time reference)
Characteristics are items of information that are suitable for aggregation (such as plant, material).
Every characteristic has characteristic values. For example, the characteristic "material" might
have the following characteristic values:
Material: ball-bearing (represented as a text)
Material 324567 (represented as a key)
Key figures are values with particular relevance to business.
Purchasing Information System: invoiced amount, net order value, number of
deliveries
Sales Information System: sales volume, incoming orders, returns, sales order
value
Inventory controlling: valuated stock receipts, average consumption, total
consumption value, number of material movements
Values are ofcourse what we give to the key figures.
Standard analyses offer a wide range of possibilities for analyzing data. The standard analysis
provides you with a whole spectrum of functions which enable you to target specific data for
detailed analyses.
The information structures provide the data basis for the standard analyses.
In each standard analysis you can specify the range of the data to be analyzed by using various
selection options. You can either predefine the key figures that you want to analyze or choose
them interactively during the analysis itself.
Flexible analyses allow you to can tailor the way in which key figures are combined and
aggregated. This means that it is possible to both provide administrators with detailed information
and management with aggregated information.
Flexible analyses enable easy access to the Report Writer, a user-friendly tool with which you
can create reports for various analyses. The Report Writer is integrated in other SAP
applications, such as Extended General Ledger and Cost Center Accounting.
Evaluation structures form the interface to the Report Writer. Evaluation structures consist of
characteristics and key figures and are easy to construct.
An evaluation structure with the same name exists for each information structure in the standard
system.
Even the self-defined information structures created in Customizing can be evaluated via the
flexible analyses.
You can create an evaluation on the basis of the evaluation structure.
To define an evaluation, all you need to do is select the characteristics and key figures you
require
One of the especially useful features here is that you have the option of tailoring the layout of
your report to suit your particular requirements. You can also define extra key figures for the reports,
which are derived from existing key figures by means of calculation formulas. You can
thereby multiply the key figures or divide one key figure by another.
regards
Jude -
Hello
I am looking for advice/tips on tracing the costs of material as it moves through SAP. For example:
Recevie Material 1 at Plant A
Plant A processes Material 1 at Plant A to make 3 semi-finished goods.
One of these semi finished goods is then shipped to another plant.
Then this semi finished good is processed and produces 3 more semi finished goods.
Then the 3 semi finsihed goods are processed again to make several different finished goods.
I have used transaction CS15 to see what materials are made after processing.
I have also used transaction CKM3N to view the material price analysis.
My question is: Is there a better way to view how the costs flow thru SAP? Is there a more efficient way of tracing multiple materials in CKM3N than to enter one material at a time? Any help would be appreciated.
Thanks for reading.
JoeDear Joe,
You can get the value MBEW-KALN1.
Then, you can check Table CKMI1.
Regards,
ian Wong Loke Foong
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