Material Ledger with Split Valuation Type 'X' with FIFO

Hi,
The requirement from the customer is to have Raw Material, Intermediary and Finished Products valued at Actuals and on a FIFO basis. According to me, this is possible only if we activate Material Ledger, have batch split valuation u2018Xu2019 as the valuation type and have a batch search strategy which does a FIFO. Are there any technical issues with this solution? Or is there a better solution? Is any organisation ever using this solution for a similar requirement? As an extension of this requirement, how does commodity trading companies running in SAP handle their inventory and COGS valuation?
Thanks and Regards
Shivram.

Hi,
Using Material Ledger with batch management and split valuation of each batch ("X") leads to most aaccurate FIFO valuation result, however, depending on how many material and batch the customer has, huge number of materials will be processed and it will affect the performance issues. You should check the number and expected period-end time frame scheduling at least.
Financial responsible tell you to need this kind of solution (detailed FIFO calculation)?
They usualy needs to get simple FIFO valuation, meaning they don't care each individual logistic material movement as FIFO, but only care of periodic FIFO. I know, it depends on Finacial responsibes or their auditors, so it's also not general.
Please double-check the new FIFO valuation function for Material Ledger with using Periodic Closing and AVR. Some information is in SAP Note 1431829 and 1247053. Related transactions are there, CKLMBB_xxxx under Actual Costing/Material Ledger -> Balance Sheet Valuation Procedures. I couldn't find any official documents for Material Ledger + FIFO valuation (like Release Notes).
Hope this will be an additional option to yours.
Best regards, Takashi

Similar Messages

Canu00B4t use two step transfer with split valuation ?

Hi people , i´ve activated split valuation for MaterialX , it has two Valuation types ( Production and Purchase ) . The problem arose when i tried to do a two step transfer between plants ( mov 303 ) and i got the following error msg :
Use one-step procedure for transfer posting to mat. subj. to valuation
Message no. M7048
Diagnosis
In the receiving plant, the material is subject to split valuation. For this material, a stock transfer cannot be carried out using the two-step procedure.
Procedure
Use the one-step procedure (movement type 301) or a stock transfer order for the stock transfer.
The message is very clear itself , but... i just wonder if there`s actually any way to avoid this, considering that having to create a transfer order for each movement will duplicate work and using a one step transfer won´t be practical. I tried to change the error msg into a warning but couldn´t find it in customizing. Thanks for any comments on this !

First of all , thanks everyone for the help.
Csaba Szommer, Kunal ingale , i read the OSS note and the pdf and indeed everything confirms it´s not possible to do the two step movement. So , i tried the stock transport order and something else appeared here. When creating this type of order , the system first ask for a Supplying Plant , then you can populate the material , quantity and the destination plant. But then it asks for the Valuation Type of the material involved, and it seems this field is Mandatory . Is it possible to make this field on the transport order as optional ? I couldn´t find this field at SPRO-MM-Purchasing-Purchase Order-Define Screen Layout at Document Level .
I need this field to be optional for the following reason. In my company there´s a relation between two plants , Plant A ( from where products are dispatched to the customer ) and Plant B ( where the material is produced with valuation type "Production" and sometimes is buyed from vendors with valuation type "Purchase" ) . The idea is to run an MRP which will generate the material needs on Plant A considering the Sales Orders. This need will be then transformed (automatically by MRP ) in Stock Transport Orders with Supplying Plant "Plant B" and receiving "Plant A". The problem here is that , at the moment of the transport order creation it´s no possible to know which will be the valuation type of the material that will satisfy the need. I mean , Plant B ( production and buying plant ) will check the list of needs for Plant A and then will decide which material ( with which Valuation Type ) they will provide considering the actual stock levels at the time of the MRP run.
In a few words, i see the only way to do a two step transfer of a split valuated material is using Stock Transport Orders , is there a way to make the field "Valuation Type" optional ?. The idea would be to choose the Valuation Type of the material at the moment of the Good Issue. Thanks a lot , once again.
Edited by: Christian Len on Jul 7, 2008 3:16 PM

High volume of batches with Split valuation - impact on system performance

Hi!
I have a client that is intending to load a new material type from their legacy system which will be automatically batch managed with split valuation. So, Valuation category will be 'x' and the valuation type will also be the batch number as automatically created on GR.
The concern of the client is the impact on system performance. Having up to 80,000 batches per material master record (so, 80,000 valuation types will be mainatined with a unique price in the Accounting 1 tab of the MMR) and overall around 1 million batches a year. I'm not aware of any system performance issues around this myself but there seems to be anecdotal evidence that SAP has advised against using this functionality with high volumes of batches.
Could you please let me know of any potential problems I might encounter, having 1 million batches with split valuation may cause? Logically, this would increase to tens of millions of batches over time until archived off via SARA.
Many thanks!
Anthony

I currently have about 1.5 million batches with split valuation in my system (but it is not the X split), and we archive yearly.
having many batches for one material ( lets say 1000) causes dramatic performace issues during automatic batch determination.
it took about 5 minutes until a batch was returned into a delivery. if the user then wants a different batch and has to carry out batch determination again, then he just works for 10 to 15 minutes on one delivery.
This is mainly caused by the storage location segment of the batches. if one batch gets movedd within a plant thru 3 different locations, then the batch has 3 records in table MCHB. But SAP has a report to reorganize the MCHB table that have zero stock.
The X split has more effect, it is not only the batch table that makes issues in this case. With the x-split SAP adds an MBEW record (material master valuation view) for each new batch.
However, if the design is made to get a certain functionality (here valution at batch level), then you have to get a proper hardware in place that can give you the performance that is needed.

Automatic STO for materials with split valuation

Hey Gurus,
Our client uses plant-to-plant STO to do transfers among internal plants. The current process: Run MRP in receiving plants --> MRP generates PReq --> Release PReq --> Assign Preq and create STO(from here, buyers manually check stock at issuing plant to see if there are "New" or "Rebuild" stock available, Rebuild stock always take the priority. Buyers manually assign Rebuild or New to ME21N).
The client tries to automate the STO process, ie, using ME59 or ME59N instead of ME21N. The problem is how the system does stock check and automatically enters"Rebuild" or "New" for materials with Split Valuation, which are done by buyers manually?
Thanks
JM

Hello,
Your client's request can be met with an user exit i guess. I have not used this but this is a suggestion that you can try if you wish.
The following things need to be done.
1. New PR type needs to be created and assinged to the STO document type.
2. When running a MRP at receiving plant, the system uses the special procurement key to create the STO requisition, hence we can write the relevant code in user exit in the MRP program. (please find the user exit for MD01)
3. If the special procurement key is 40 in the material master (MRP view), then system has to create the PR using the new PR type for STO. Also for those PRs the default batch should be "Rebuilt" entered while creating the PR.
4. As the batch is already entered in the PR, converting them to PO automatically will not be an issue.
if you feel that the above solution is little tough to implement, then please write a program to fetch the STO PRs and update the PRs one by one using the BAPI PR update or BDC with the batch "Rebuilt". This program you can ask the users to run before using ME59.
Regards,
Sakthi

Raw materials on MAP with split valuation used in standard cost estimate

We have a few raw materials which are purchased from different vendors and of different brands. We have opened split valuations for these raw materials. These raw materials are later used in manufacture of different finished goods. We use MAP for raw materials and Std. for finished goods. What configuration and processing steps will be required to run standards cost estimate and what will be standard price for a finished good considering the following example:
Material X is finished good
Raw Material A with split valuation @ USD 5 (brand aplha) & USD 10 (brand beta)
Raw Material B without split valuation @ USD 1
It is expected that we used brand aplha 60% of the time and brand beta 40% of the time and production batch size is usually 100 Kg.
Please reply
Edited by: Chris SAP on Sep 29, 2011 7:56 AM

hi chris
Hope you have configured the material A for split valuation. while calculating standard cost estimate for the material C. through ck11n, the system will pick up the header price from material master.
But here you are saying that you have chances of using the material A, 60% of brand alpha and 40% brand beta
Instead of using split valuation use mixed costing concept. create the material A with separate Ids and create two boms one with alpha and the other with beta.
create procurement alternative in CK91N and mixed ratio with Ck94 and release the mixed cost estimate
please go through this thread also
Re: Difference between Split Valuation and Mixed Costing
Krishna

Scheduling agreement with relase - doc type LPA with JIT

Hi
can any one give the steps for Scheduling agreement with relase - doc type LPA with JIT process.. and explain how the JIT will work in SA.
Pls advise what are config required and what the user tcode needed to perform the SA with JIT concept.

Dear Friend,
Without release documentation(Document type LP)
The delivery schedule lines have official character-that is to say,they are transmitted to the vendor as they are saved in the system.The system does not document in detail releases aganist the scheduling agreement that have been sent to the vendor.Therefore,in the case of the document type without release documentation,the message control facility should be set up in such a way that a message is immediately sent to vendor if any changes are made to the delivey schedule stored in the system.
With release documnetation(Document type LPA)
If you use scheduling agreement with release documentation,the delivery schedule lines are not transmitted directly to the vendor.Intially ,the lines of the delivery schedule stored in the system for an LPA scheduling agreement for an internal information only.A message informing the vendor of your material requirements cannot be transmitted to the vendor until you explicitly create an SA release,that is forecast (FRC) or Just in Time(JIT) delivey schedule.Through this process,you can change the way schedule lines are represented.With release documentation,you can disply the SA releases(delivery schedules) transmitted to a vendor over a certain period of any time.This enables you to trace precisely when you sent which information to vendor.
Regards
Pramod

VF11 wrongly created with RV Doc type and with not clear status.

Hi All
Issue: There are 2 billing documents which were created(VF01) in March are canceled (VF11) in May. Cancel document is saved with a message (No automatic clearing of billing document XXXXXXXXX) and message diagnosis saying that u201CThe Automatic clearing of billing document and reversal is not possible. This may be, for example, because the line item update is deactivatedu201D
In the SD document flow cancel billing document is created and it's posted to accounting with Document type RV(which is not configured in the billing types) and it is in not clear status.
2 Sales order types are ZNRC(No Rebate u2013 Credit)    second is ZCR (CM Req With Refer).
Order Type : ZNRC , Billing type :ZG2, Cancel billing type :Z5, Accounting document in billing type for ZG2: is DG and accounting document in cancel billing type Z5 is :(_) blank.
Order type: ZCR Billing type :G2, Cancel billing type :S2, Accounting document in billing type for G2: is DG and accounting document in cancel billing type S2 is :(_) blank.
      FI document type Not maintained in the cancel billing type configuration because this should be determine by reversal document type DA which is maintained in DG document type from FI side. It will be triggered in VF11)
The above configuration is working with the order created VA01,billing VF01 and cancelling VF11 done in same period. If the order and billing done in old period and canceling(VF11) done in current period than FI document creating with RV document type and with not clear status in the document flow.
I reviewed similar issues with SAP Note and with below explanation:
          "There are 2 procedures that are possible when Vf11 is posted.
          Old Procedure - An FI "Reversal" document was created that was not connected with the orignal.
          New Procedure - A Real FI reversal was carried out with clearing."
In this case, our system is following with new procedure except above mentioned orders created in previous period and and canceled in current period.
My Questions are: How the RV document is getting triggered here? why the cancel document (Reversal FI Doc) is not clearing?
     Appreciate your answers or suggestions.
Thanks in advance,
Sunil
Edited by: Sunil kumar Matta on Jun 9, 2011 3:40 PM

Thank you Ivano.
I referred SAP note 1259505 and 339928. But initially we thought of none of the symptoms mentioned in the SAP note are matching with our issue. Then we contacted SAP online support and they suggested checking one SAP note (Mentioned above).
Our system is following new cancellation procedure, but itu2019s failing only for some few documents.
Finally we identified several reasons for the issue. One is profitability segment in the billing document and cancelled document is different due to some changes in segment assignments. Another one is consolidation- consolidation document does not exist in the billing document list but it is getting created in Canceled document (VF11).(Consolidation postings are switched off some time back and now itu2019s on)
After some discussions it is decided to include accounting document type (Reversal) in cancel billing types to avoid default RV document type in canceled billing document accounting document. And non-cleared documents need to be created manually in F-32.
Thread is closed.
Sunil

Price change for Material Maintained with Split valuation

Hi Gurus,
Scenario is like this :
Material with Valuation type is : Rs.50.
Material W/o Valuation type is : Rs. 0 ( This is done at the time creating material master).
Now i want to correct Rs.0 to Rs.40.
When i try to change price through MR21, system is asking to input valuation type.
Is it not possible to change price for material W/o Valuation type (ie blank one), if material is Split Valuated ?
Thanks

Hi,
if the materila is split valuated then u have to enter valuation type because inthe accouting view you hav edefined valuation type and at that level only it stores the price.
I think you wants to change the price at valuation category level , if this is so then it gets updated automatically thru prices maintained at all the valauation type levels.
Hope it clarifies ur doubt.
reward if useful
Rohit

Movement type 415 Q with split valuation?

In my system(4.7C), with movement type 415 Q, user can give any valuation type in the destination field even thought the valuation type is not exist. Is this sap standard function that 415 Q works like this? (I'm not sure on this since there are so many user exit are used). I checked also 311 Q, no check for destination valuation type either. I did not find any good document in notes. can anyone tell me if this is the sap standard funtion? how to prevent user give valuation type not exist? thanks a lot.

Hello Hua Jun Wang,
Without maintaining valuation type the system will not post the transaction.
- Go to SE16 transaction and use table MBEW
- Give your material number and plant (valuation area) and execute the transaction.
It will give all valuation type which is maintained for that material in particular valuation area.
Hope this helps.
Regards
Arif Mansuri

Same material with some valuation type does not post accounting documeents

Hi Experts,
For a finished goods material has two valuation types and each assigned to a different valuation class.
For example Valuation type PLANT is with valuation class PROD, Valuation type EXTERNAL is with valuatioin class RESL.
When I post any material document, accounting document is getting created only for valuation type EXTERNAL.
The automatic account determination is configured properly with both valuation classes for Transaction event key BSX.
Also the simulation of the account determination (OMWB) is showing perfect and hitting the required accounts.
Where is the setting to control this? How to make the system to create an accounting document even if the material is received/issued with Valuation type PROD?
Thanks in advance.

Hi,
I checked up this scenario and is working alright. Acc docs are created for all the valuation types.
Here the issues are:
       1. Check the configuration and master data for valuations.
       2. System is not giving any error for any material document. It means that
           the transaction is clear. Check the price for val type PLANT is not zero.
regards,
sreenivas

Material with different Valuation types in WM Stock status

Hi
If we are maintaining stocks of different valuation types in a Plant , and the Storage Location in the Plant is Warehouse Managed, then how can we see the stocks in different valuation types in the Warehouse stock?
thanks
Raj

Hi Keerthan,
It will not be possible to change or add valuation type after the material movement is performed for the material. Only option is to create new materials.
In case if the materials are not involved in any material movement, then you can change valuation type. Best thing will be executing via LSMW.
Regards
Terence

Error when doing two step transfer between Plants with split valuation

Hi expert,
I´ve activated split valuation for Material X , it has three Valuation types ( NEW, REPAIR and DAMAGE ) . The problem arose when i tried to do a two step transfer between plants ( mov 303 ) and i got the following error msg :
Use one-step procedure for transfer posting to mat. subj. to valuation
Message no. M7048
Diagnosis
In the receiving plant, the material is subject to split valuation. For this material, a stock transfer cannot be carried out using the two-step procedure.
Procedure
Use the one-step procedure (movement type 301) or a stock transfer order for the stock transfer.
The message is very clear itself , but... i just wonder if there`s actually any way to avoid this, I tried to change the error msg into a warning but couldn´t find it in customizing. Thanks for any comments on this !

Hi,
What do you mean with "inconcistent to my storage type definition?", is that mean i can process two step transfer without using PO/delivery process or one-step movement? coz according to business requirement, we must use two step transfer considering to the distance between plants is so far and we want to make it the simple way so that PO/Delivery process isn't better solution. I think, this is an standard procedure all company over the world can use but just the reason of split valuation the system can't execute the transaction.
Is there any config i miss to? is there any user exit i can use for this requirement? please help me..
thanks,
AJ

GR for a STO with SD delivery and Batches with split valuation X

Hello,
We have a problem with the Goods Receipts for Stock Transfer Orders between plants for materials subject to batch split and split valuation with valuation type X.
The scenario is very similar to the one explained on this thread: STO:problem with batch valuated material
When creating the the STO, it automatically sets a valuation type that is not be the appropriate one, we cannot use only one valuation type per position because we can use more than one batch (and valuation type). The outbound delivery has the correct valuation types for each batch and material but when doing the GR at the receiving plant, it only takes into account the valuation type indicated in the STO with no chance to change it.
I have seen the Note 212532 but we are not working with active ingredients.
Does anybody know a useful EP to use?
Thanks in advance for your help.
Regards,
Javier.

Well, we can change the valuation type before Posting the goods issue of the delivery, but in most cases we need more than one batch (each batch has a different valuation type) for each item (material) in the purchase order.
We can do this at delivery level but the GR only takes into account the valuation type of the purchase order.
Thanks.

VPRS shows no Value with Split Valuation - Valuation Category X

After configuring Split Valuation - Valuation Category X (http://wiki.sdn.sap.com/wiki/pages/viewpage.action?pageId=193693045)
VPRS is no longer showing any Value in the Sales Order. I have assigned a Batch in the Sales Order and tried to Deliver and VPRS still shows as 0.
VPRS is working correctly for Material that are not maintained at Valuation Category X.
Also, I have the Price maintained as Moving Average Price for the Materials with Val Cat = X.
Does anyone have any ideas? Please I would appreciate the feedback.

Thank you for the quick response.
After check MBEW i was able to see that my new Batches were being assigned a Standard Price instead of MAP.
I changed the settings in the Attributes of my Material Type to set the Price to MAP instead of Standard.
Now it works perfectly - Thanks!

541 & 543 Mvt for Sub Contract Process with Split Valuation

Hi all,
We have activated SPLIT VALUATION for sub contracting in ECC 6.0
We have clasified into 3 Valuation Catergories as New,Repaired & Faulty.
The logic & naming convention of the materials are
New Material : C1
Repaired : C2
Faulty : C3
The details are as.....a faulty material can be converted into Repaired by the external Vendors,for which we raise a PO and do MB1B with 541 mvt type with ref to this PO.
The Acing Entries are
PK      GL Code        Material     Value
99         117000         C3            10
89         117000         C2            100
93         600530                           90
While in process the GR w.r.t the above mentioned PO ,we are getting 6 accounting entries (which is delivered by Stand SAP) they are as
PK      GL Code       Descrip     Value
89         117000        Stock        100
96         117400        GR/IR         150
91         600530        Sub Cont    100
86         600863        Sub Service 150
99         117000        Stock          100
81         600530        Sub Cont     100
Can any please explain me how the system calculates the above Accounting Entry.
We are confused why the system calculates ( entries) for the 91,81,86 Posting Key.
I have uderstood that PK 89 for goods inward, 96 is for GR/IR clr, 99 is for reversal of 541 mvt type.
Other 3 entries i have the confusion ........
Can anyone please guide me and explain in detail how ,why andfrom where the system is calculating the entries.
Hope that you will help me in this regards
Take Care
God Bless
Regards
Praveen.
Edited by: Praveen Singh on Sep 16, 2008 8:07 PM

Go to OMWB and click on simulation and here enter you mateirla number, plant and Mtype 101
Then click on account assignment
you will see all the entries
Posting Lines Text              VlGCd AGC VCl   PK Acct D      PK Acct Cr
Gain/loss from revaluation      -e-   -e- -e-   83 440700      93 440700
Inventory posting               -e-   -e- TRA1 89 130000      99 130000
Incidental costs of external a -e-   -e- -e-   86 460820      96 460820
External activity               -e-   -e- TRA1 86 460960      96 460960
Change in stock account         -e-   -e- TRA1 81 460820      91 460820
Purchase offsetting account     -e-   -e- -e-   40 --Missing- 50 --Missing-
Purchase account                -e-   -e- -e-   40 --Missing- 50 --Missing-
Materials management exch.rate -e-   -e- -e-   40 440600      50 440600
Cost (price) differences        -e-        TRA1 83 440000      93 440005
GR/IR clearing account          -e-   -e- TRA1 86 210005      96 210005
Inventory posting               -e-   -e- TRA1 89 130000

Material Ledger with Split Valuation Type 'X' with FIFO

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