Non valuated GR and commitment management

Hello all,
we have the following problem: we use commitment management in PS. Our Purchase orders have setting for non valuated GR. So the costs are only recorded on PS with the Invoice receipt.
At month end when posting accruals for goods receipt but not invoice receipts we have the problem, that there is still a commitment from the PO on the project and therefore the accrual to be posted on the WBS element exceeds the available budget (because of the commitment coupled with the accrual we are essentially putting double the budget on the WBS assuming that the Purchase order is for 100% of the budget).
We cannot get rid of the unvaluated GR as it is a fiscal requirement. We also want to keep the commitment until the Invoice is receipt for obvious budget control reasons. Is there a way to swap the commitment with the accrual to be posted?
Thanks
KAi

the cost element used for accrual posting can be set in the configuration oin PS busdgeting where you can exempt for availability check
this way the accruals will not be included in the budget check

Similar Messages

VALUATION TYPE AND STOCK MANAGEMENT

When trying to do a Good Receipt on a subcontract PO against a line item with non-valuated material (UNBW) and Account Assignment "K" (cost center), the system is asking for a Storage Location and is putting the non-valuated material into stock. We are using the UNBW material and the Acct Assginment K PO Line Item as a cost collector for services performed against a supplier. The UNBW material should NOT go into inventory.
CAN SOME ONE TELL ME IF THIS IS STANDARD SAP OR SOME CONFIG THAT IS MAKING THE NON-VALUATED MATERIAL SUBJECT TO STOCK
THANK YOU IN ADVANCE

Hi ,
The goods in general can be managed for 1) Quantity update only : using material type : UNBW 2) Without quantity and without Value Update : Using material Type : NLAG.
This is the recommended standard SAP functionality.
How ever , since you are processing the sub contracting orders , you ought to have at least stocks management by quantity.
For material type UNBW : since this material type is meant for non valuated stocks , the value update does not take place( the value of goods of this material type is not included in the inventory value), but the quantities are always monitored.
Hope this information will be useful .
Regards
raghuramam.

Non valuated material and free materials

hi,
friends
pl provide me the difference between non valuated and free materials.
thanks
durga prasd

Hi Durga Prasad
Free material: These materials are valuated ,but we procure it free of charge.So while creating a PO for free materials then in the PO we can check the Free of charge indicator.Then if you do a GR aganist this PO,there are 2 scenarios ie
If the material is valuated at moving average price,then there will not be any accounting documents at the time of GR.But the moving average price gets recalculated since your stock level increases.
If the material is valuated at Standard price,then accounting documents gets generated at the time of GR even if its frree of charge delivery.
If we dont have a PO,then also if we want to do GR for free material,then this can be donr using the movement type 511.Transaction code is MIGO.Goods receipt with reference to others
Non -Valuated Material:This type of material is not valuated in any valaution areas.
(But if you are refering to non valuated material type(UNBW) then its different scenario)
Hope this will help you
Reward if useful
Thanks and Regards
SHYAM.R

Best Material Type for Handling Non-valuated Materials in Distribution

Our distribution business will soon be handling non-valuated material and I am trying to determine the best material type to use. I am considering material type UNBW but would like to know if anyone has advice. We are strictly providing a service to the vendor for handling these non-valuated materials (for example, wood products). We will not purchase or sell the product. Our service consists of receiving the product into inventory from the vendor, tracking the inventory, (in Warehouse Management) and then shipping the material to a customer of the vendor's choosing. For these non-valuating materials, we are paid strictly for our service of warehousing the material and shipping to a customer.
Up until now, our distribution business has distributed only valuated materials, i.e., materials we purchase at a price and sell at a price. We also use vendor consignment. NOTE: This is not a vendor consignment scenario because we never buy the product.
Here are our requirements:
- We don't own the non-valuated product.
- We need to be able to ship these new non-valuated products on the same shipments as the valuated product we own.
- We use handling unit and warehouse management for all of our finished goods.
- We would like to use our existing processes and HU/WM RF transactions to receive and pick the non-valuated product. This means:
1) Creating inbound deliveries and packing into HUs. And applying our HU bar code labels.
2) Physical inventory counts by HU.
3) Creating sales orders that have both the non-valuated materials and valuated materials we own.
4) Creating outbound deliveries and picking via transfer orders in WM.
5) Assigning the outbound deliveries to a shipment.
Questions:
1) Can a UNBW material that will be stocked but not valuated be received into inventory via a PO? Any way to receive into inventory with an inbound delivery without using a PO?
2) Are there any problems with putting a non-valuated material on a sales order with a zero price?
3) Any challenges that other have run into?
Thanks in advance.
Rob

I must be missing something regarding the use of material type UNBW. When I post the goods receipt for a PO with a UNBW material, no inventory is created. When I create the PO, an account assignment is required. I tried both a cost center account assignment (K) and balance sheet account assignment (Z - using a Profit Center). In both cases, I am forced to check the "Free item" checkbox to avoid entering a price; which also seems strange since the material is UNBW.
I have searched everywhere for a "Best Practice" for my scenario with little results. Again, we are simply managing the inventory for a vendor and shipping the inventory to our vendor's customers. So we are acting as a third pary warehouse and shipper for the vendor. We do not buy or sell the inventory - we are paid a monthly service fee by the vendor for warehousing their product and shipping it to their customers. We may ship the product on sales order deliiveries that include both the "non-valuated" product (i.e., free goods we manage for this vendor) and goods that we actually own.
As an alternative, I am wondering if I should look into somehow using vendor consignment with a settlement price (consignment info record price) of zero. Vendor consignment is nice because you can track the stock by vendor. However, we would never truly "settle" with the vendor because we would not be paying the vendor for the inventory and would never own it.
Our business refers to this as "reload business" but I am not sure this is an industry standard term.
Any other thoughts out there?

Non Valuated & Non Stock Materials

Hi Freinds,
I have a query. Give me few examples for non valuated & non stock materials.
Thanks & Regards
Saeed Arif

hi,
Non-stock : Materials ready for use/Consumption and available anytime Ex: Electricity,Water etc..,.
Non-valuated : Nonvaluated materials are managed on a quantity basis, but not by value.
Ex: Plastic bags in retail malls
hope this gives you a clear view of difference between Non-stock and Non-valuated
Regards
KKY

FI Document Generated for Non-Valuated Material

Hi Every one,
I am doing Transfer Posting Plant to Plant after Posting the document FI documents like Profit Center Doc. & Controlling Doc. going to generated.
My Material is Non-Valuated Material and managed only on Qty bases, I have also maintained the Accounting view for Valuation Class and also maintained the account determination for GBB-ZBR GBB-VBR, (so during PO GL will come automatically)
I don't want to create FI Document while doing inventory any transaction.
Regards

1.use material type UNBW ,check the materil type plant combination in OMS2 .it should only have qty update
2.While creating PO use account assignemnt category and flag GR non-valuated .
3.MIRO will have accounting entry as below
Vendor - credit
Consumprtion acct- Debit (GBB VBR)
4.Further Goods movements in inventory management will not have any accounting entries.
hope it calarifies

Stock Transport for Non Valuated Account Assigned Material

Hi Experts,
I have to satisfy some unique requirement from my demanding FICO team to make certain process work our way.
Following is the scenario...
1. Plant A and plant B belongs to the same company.
2. Plant A makes material X (non valuated, ind/coll indicator = 1).
3. X calls for sub-assembly Y (non valuated, ind/coll indicator = 1) which is a make item in plant B. X and Y belongs to different Profit Centers
4. Sales order placed at plant A for material X.
5. MRP runs and creates a stock transport order in plant A to buy the non valuated material Y from plant B. STO is account assigned to the sales order.
6. Plant B makes the material Y by creating a production order that is account assigned to the same sales order and does PGI to ships it out to plant A.
7. Plant A GRs the material Y and this puts it in sales order stock. No value move, just qty move. Also no FI document created.
8. Plant A issues component Y to the production order created for material X. Cost of Y doesn't show up in the production order as it is non valuated.
9. Upon settlement of the production order in Plant B, the ACTUAL cost gets settled to the sales order in plant A. So at the time of settlement the profit center switch happens for Y (i.e. the profit center for Y changes to match X's profit center)
This is a beautiful process from logistics point of view. BUT, my FICO has unique requirement for inter company sales for our organization. For them to consider a process as inter company sales, the following constraints has to be met...
1. Ownership of material remains with producing profit center until consumption by the receiving object. (with the above mentioned process the profit center switch happens during prod. order settlement)
2. Cost for the consuming profit center will be moving average, standard cost or planned cost. (we are dealing with non-valuated materials and the settlement happens at actual cost)
I need your expertise to help me define a work aroud. I am thinking about a lot of options to somehow make it work but can't seem to get solutions. Following are my thoughts...
1. Is it possible to possible to make the settlement with planned cost instead of actual cost?
2. Is it possible to make a profit center switch during consumption rather during settlement?
3. Is it somehow possible to create an underlying FI document during GR at plant A? (I know SAP does not create a FI doc. for non valuated materials).
4. Or can plant B send an invoice to plant A for the STO? (I believe this can be done for cross-company STO) I am thinking doing an Invoice Receipt at plant A instead of doing a settlement might show up the cost for Y in the production order for X.
An IR with the planned cost would be an awesome solution to get the buy-in from FICO. Can this be done?
I hope you don't mind my lengthy message... Waiting for some positive response.
Thanks.

Anyone??? This is kinda urgent?

Settlment of Non Valuated Material's Prodction Order

Hello,
I want guidance for one scenerio.
Our Company is currently working as Manufacturing Plant and from 1 Dec they want to convert this plant to processing plant. In this we will change all Finished material type as non Valuated and out all raw material we will want to keep one material as valuated.
But after this changes we wants to calculate the variances of non valuated materials and post the Valued material (used in production order and BOM) and also other activitied (ie Machine Cost & energy Cost used in this finished material) to be posted to COPA.
Request you to pleas guide me how i can procced for same.
Thanks & Regards,
Hary

hi
>But now we want to add 3 nonvaluated materials to it.
why u need nonvaluated material ???
as u use nonvaluated material u have to assign the acct assignment to it as consumption have to shown on something.
chekc following process for subcontracting
http://help.sap.com/bp_blv1600/V5600/BBLibrary/HTML/138_EN_IN.htm
Re: Subcontracting with payment of ED
lease elobarate the scenario u need
regards
kunal

Example of Non Valuated stock

Hello friends,
Can you guys give me the example of Non Valuated stock.And how we do the planning for it.
I know that for this type of material there is only quantity updating and not the value updating.And if i am not wrong than we have to do consumption based planning for it.
Plz guide

Hi
Non valuated may be used for scrapping purpose and doing a job work from a diffrent customer. As a by product we may use scrap code as non-valuated so that when we do GR for scrap it will not reduce my production order cost. But at the same time this scrap may be used as in put in some other process for which stock needs to be maintained.
Job/Repair work when doing for customer it is non-valuted for us but for doing all logistic process u have to define as non-valuated code
Another example is PRT. We are making a PRT to execute a specific customer order and want to book the cost of PRT. So showing this PRt code in BOM. While doing GI consume prt to book the cost. But since PRT can be used repeatedly maintain as a non-valuated and receive with byproduct concept.
Hope u r clear now

Non-Valuated Materials Purchasing Process

Hi,
Can some one please explain step by stem the process of purchasing for non-valuated materials. From PR to PO e.g. Account Assignments etc the whole works. If any one has any documents or screenshots that would be greate to just email them to me.
1)When Creating a requsition it asks for an Account Assignment why?
2)It also asks for a valuation price it doesn't accept 0 why? This is a non-valuated material and free?
I am having problems as I have approval levels setup via classifications for all indirect purchasing from account assignment K if for all non-valuated materials I have to create reqs via account assignment K they will require approvals. I don't want that.
please help points will be awarded
thanks
ADeel

U NEED To create the material master with unbw or nlag material type
> create pr
mention the material code and in the valuation field u can put the price of material for internal valuation
mention the account assign. categ. K
now the question is that you do not want to make use of the aac K THEN LET ME TELL U ONE THING
for those material types having no quantity/ value updation it is must that u mention the account assignement category
becuase if u r procuring the material but not storing it then it means u r directly consuming the goods at gr hence u need to tell the system where has the goods gone after gr ............and u r doing this via AAcategory
--->po
if u wan to recive free of cost goods then u need to mark the check box in po in front of your line item ...........

Account determination for non-valuated material

hi,
I have configured account determination for non-valuated material when I try to post the Invoice then error come that GR/IR account required for posting. but my GR is Non valuated so GR/IR account would be ignore then why required GR/IR account by system at the time of Invoice.

You have to understand the difference between GR non valuated and non-valuated stock
Non- valuated stock has following attributes
1. Value update should not be flagged in the material type and valuation area combination (OMS2)
2. That means the stock will not have inventory values and further good movements after GR would not have accounting document
3. Non- valuated stock material can have GR valuated or GR non valuated ,depends on tick /untick of GR non valuated field in the purchase order under delivery tab.
4 . Material type does not have any control on GR non valuated .It is controlled by account assignment category or item category or manually in the purchasing documents.
Scenario 1:
in your case if you have created PO with non-valuated material and without GR -non valuated flag ,there must be an accounting document in GR as follows
GBB     - Consumption account - Debit
WRX - GR/IR account - credit
and if you do invoice ,you would have following accounting entries
WRX - GR/IR    - debit
vendor-           - credit
Scenario 2:
IF you have created PO with +non- valuated material + and flagged + GR non- valuated+ in PO, then GR will not have any accounting entries and MIRO will have following accounting entries
Vendor -     credit
GBB - consumption account - debit
let me know if you have any concern
Regards
Raja

Commitment Management

Dear Experts,
What is the relationship between PM orders and Commitment Management ? Is it possible to activate commitment management for plant maintenance order types in the same way that we do for internal order dypes.
We are already using PM order without commitment management . What are issues and consequences if we activate it now?
Is there is any other suggested SAP process for managing commitments against plant maintenance orders?

Yes it is..
Go to TCode OIOA (order types) and set the Open item management flag
PeteA

PO with Account Assignment P and NON Valuated Material

Hi ,
As per my undersatnding if I create a PO with Account Assignment "P" , system consumes it immediately and stock doesn;t get updated in any storage location.
But
If I use Account Assignment "P" with "NON valuated" stock , system is asking for Slocation at the time of MIGO and also updates Qtys in Storage location , although cost is being booked to consumption account.
Could u pls help to understand the logic for this ?
Regards
Shrey

Hi,
PLease read this para from SAP help .. it is useful to undestand your scenarion
Goods Receipt of Non-Valuated Materials
Use
If the stock of a given material is only managed on a quantity basis, an account assignment must be defined in the purchase order. However, this account assignment does not result in the goods receipt being posted to consumption/usage. Instead, it results in the costs being debited to the account assignment object.
The goods receipt is posted to the warehouse stock, thus increasing the unrestricted-use stock of the material.
*It is not possible to post goods receipts of non-valuated materials directly into consumption/usage. You have to post the goods receipt into the warehouse first and then enter a goods issue.*
Regards
Krishna

"Taxes for SEZ" and "Opg Stock of Material for Non Valuated Project Stock"

Hi Guru's,
Need two clarifications specific to SEZ:
a. When an SEZ unit buys any materials from a DTA unit, and if the supplier issues ARE1 form then there is no Excise duty charged on such purchase. Similarly VAT is also exempt and CST is exempt if the SEZ unit issues Form I. However in case the SEZ unit is not NEF +ve after 5 years, then all these benifits taken on ED, CST, VAT etc needs to be paid back to the Govt.
Hence how is it possible in SAP to capture all these benfits (ED,CST,VAT) in the MIRO Invoice posting stage, so that the details are available when needed?
b. We are using Project Systems and the project is non-valuated. So in our case all material which we buy for Project is consumed at the GRN stage and there is no valuated inventory.
However for "Annual Performance Report" it is mandatory to give the Opening stock of material.
Can anyone throw some light how this can be calculated when we the Project is non valuated?
Regards,
Prasad

Hi,
This is little difficult to manage a material as valuated and non valuated. To make it non valuated you have to use a material type which is managed only on quantity basis and not on value basis like non valuated stock. Then you can do a material to material transfer posting. I haven't checked this scenario. For more info on this please refer these links:
http://help.sap.com/saphelp_dimp50/helpdata/en/4c/227bb446e611d189470000e829fbbd/content.htm
http://help.sap.com/saphelp_di471/helpdata/en/4c/227bdb46e611d189470000e829fbbd/content.htm
http://help.sap.com/saphelp_di471/helpdata/en/4c/227ba746e611d189470000e829fbbd/frameset.htm
http://help.sap.com/saphelp_di471/helpdata/en/4c/227be846e611d189470000e829fbbd/frameset.htm
http://help.sap.com/saphelp_di471/helpdata/en/4c/227b8d46e611d189470000e829fbbd/frameset.htm
Regards,
Atal

Negitive stock and Non valuated stock

Dear Gurus
please give me over view of my below stock. provide with example and situation.
Negitive stock and Non valuated stock
Best regards
srinivas.

Hi
For Negative stock
http://www.sap-basis-abap.com/mm/how-to-use-negative-stocks-and-its-purpose.htm
For Non Valuated Stock
UNBW (non-valuated materials)
Non-valuated materials are managed on a quantity basis, but not by value.
Check it out
Regards,
Raman

Non valuated GR and commitment management

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