Material Ledger x IFRS x Depreciation

Question

Hi All
In South America companies are used to run actual costing run (CKMLCP) to valuate the stock with actual price. This actual price uses local depreciation method in their depreciation activity.
Due consolidation purposes and IFRS requirements companies also must report the stock of materials using other depreciation methods.
In few words, we have to maintain the actual cost but change the "local" depreciation cost to "IFRS" depreciation. It´s an additional material ledger.
So far I know you can do it using the following scenarios:
1) Develop a custom report that recalculates your material ledger (CKM3 massive).
2) Use IFRS as local depreciation, calculates a difference from local depreciation, make a posting, run CKMLCP and reverse.
3) Use Alternative Valuation Run (CKMLCPAVR) besides regular CKMLCP to have an additional actual price for materials using different stock valuation method or parallel valuation ledgers.
I´m very interested in the third scenario but until now nobody has implemented it.
Pls let me know your opinion and thanks for your cooperation
Frederick Ramos
SAP CO Consultant
Brazil

Answer 1

Hi,
We had a similar requirement. And we decided to use Delta version (with a bit of a twick ;-).
It's based on the principle that we want to calculate different activity prices in different versions (0 and delta) using different splitting structures. We want to use the same data posted only once in version 0 (primary, secondary and production confirmations). However in one version you include depraciation CE from main dep. area and in delta version you include depraciation CE from IFRS (I presume you can post both depreciations into CO with different cost elements).
Then we use AVR which references delta version for activity prices.
I only prototyped it and this solution was not fully tested yet. So let me know if you encounter any problems.
Step by step description of the solution below:
1. Transaction OKEQN
    a) Create a delta version referencing version 0. Make it valid for actuals, plan and variance.
    b) Under Controlling Area Settings -> Settings for Each Fiscal Year -> Price calculation Tab set revaluation to 0 u2013 u201CDo not
         revalueu201D. Otherwise in CKMLCPAVR price cal we get error KP291.
        Please see SAP note 420366. Note 420366 - Error in cumulation actual price in ML delta versions
    c) Under Controlling Area Settings -> Delta Version: Transfer Business Trans. from Ref. Version thick all the boxes for actual.
         This setting defines which transactions are REFERENCED from version 0. Transactions are grouped per check box. If a
         box is checked a group of CO business transactions is treated as to be referenced from version 0.
         If a box is not checked a group of CO business transactions is not referenced from version 0 but can be executed
         explicitly for delta version.
         The logic here is that table TKA09V contains CO business transactions which can be explicitly executed for delta version.
         CO business transactions which are not in TKA09V are referenced from version 0 and must NOT be executed explicitly
         for delta version.
         Check box u201CActivity allocationu201D controls several CO business transactions which are related to activities, amongst them
         RKL - Actual activity allocation.
         So if we want to use in delta version the same activity quantities confirmed in version 0 we need to tick this box.
         However ticking this box also controls CO business transaction KSII - Actual price calculation.
         In other words if we tick for actuals box u201CActivity allocationu201D neither activity RKL nor KSII can be executed explicitly in
         delta version. Both transactions are referenced form version 0.
         So now if we try to execute Actual activity price calculation for delta version we get an error:
         "Message no. KI506
         Transaction KSII for version YYY is not permitted"
However what we want is to reference activity quantities from version 0 AND to execute activity price calculation explicitly for delta version (using dedicated splitting structure with IFRS depreciation cost elements included).
In order to achieve the above (and avoid KI506 in KSII) I had to u201Cmanuallyu201D maintain table TKA09V. I just manually entered entry KSII - Actual price calculation for delta version. This way I can calculate actual activity prices separately for delta version using quantities (and costs) already posted in version 0 and dedicated splitting structure.
d) Create additional splitting structure as per your alternative valuation needs (transaction OKES).
    For delta version assign your cost centres to this new splitting structure (transaction OKEW).
   So now we are ready to execute actual activity price calculation for delta version in transaction KSII.
In my testing everything went as expected. Actual activity prices for delta version were calculated according to new splitting structure and saved in table COST.
e) Create AVR and specify delta version as u201CVersion for Price for Cumulation in Legal Valuationu201D. Specify 7 u2013 Actual price for  the period.
In my testing system used the correct price from delta version.
NOTE: Do not use "Determine Actual Prices" activity in CKMLCPAVR but calculated activity pricers for Delta verrsion in KSII.
Good luck,
Szymon