Non valuated sales order stock vs valuated

When we went live in 1999 we used non-valuated sales order stock for our MTO process.
I really need to create and save cost estimates for configurable material (an average build) using CK51n. It does not work with non-valuated stock.
Does any know if I can some new part numbers be valuated while the standard process stays non-valuated? A new material type with new rules??
I wasn't here in '99 so I don't know what was involved in setting it up, nor in changing it

Following different option

Similar Messages

Product cost by sales order with Valuated Sales order stock

Hi Gurus,
I am working on Poduct cost by Sales Order with Valuated stock. but i have doubt ragarding to Cost estimation.
1.In sales order scenario also Standard Cost estiamtion (CK11n and CK24) and Marking, Releasing is Mandatory? if not how can we estimate the cost?
2. If we are estimating the cost by using Standard Cost estimate, when can we estimate the cost?
can anybody please give me the steps which we are following in Poduct cost by Sales Order with Valuated stock from starting to end Settlement
Thanks&Regards
Prasad

Hi,
there are 3 types of scenarios in MTO.
In Two scenarios Sale Order would be cost object - (Non-Valuated Sale orders stock and Valuated Sale Order stock with Sale order being Cost Object)
In third scenario (Valuated Sale Order Stock without Sale Order controlling), Only Production Order is the Cost Object.
In all the cases wherever the Sale Order is the cost object, Sale Order is the final Receiver. Only the difference is that in valuated sale order stock, stock entries would be passed to FI and in non-valuated sale order, no goods movement for FG will be there.
Please let me know if you need further details in this regard
Surya

Difference between Valuated and Non valuated Sale order stock

Hi All,
Can anybody tell me the difference between the above said subject with the steps involved in each scenario.
That is valuated sale order stock and Non valuated sale order stock in Product cost by Sale Order.
With Journal entries at each step and whether any WIP or variances at Production order level and sale order level and all the financial entries related to them
Thanks in Advance,
Ravi Kumar

Hi Shail,
Thans for your inputs,
But I wanted to know it in more detail. In what scenarios they are used with financial entries in both the cases.
I will give you my scenario. It goes like this,
My client is in pipe coating business, who receives pipes from customers and does only coating work(which is considered as service) and despatches it to the customer. this process is carried on the basis of work order(Sale order).
Now Production order is created and work is done on that with reference to Sale order for that particular customer.
So the pipe which my client receives should be non valuated stock as it will not be a raw material to them and the cost incurred on it is booked on production order like chemicals as raw material consumption, activity cost etc.
now in this scenario just tell me how and at which stage FI entries get generated at Production order and Sale order level, and also at wat level Standard cost estimate should be created i,e at production order level or sale order level(sale order cost estimate).
Will there be any entries at goods isssue and GR against production order. If no then how the COGM account will get hit.
Please tell me this scenario in both cases Valuated sale order stock and Non valuated sale order stock with financial entries in Sale order costing.
Thanks & Regards,
Ravi Kumar

Non valuated sales order stock-help reqd

Dear Experts,
My client is into Pipe coating business who receives the pipe from the customers, coats it as per there requirements and dispatches it thereon. There is no concept of FG here as its only the service he is doing on it and also when he receives the pipe there is no raw material cost on it. Raw materials for him would be chemicals etc which he uses to coat the pipe.
This is the case of NON Valuated sales order stock.
1) non valuated GR will be done for customer stock -Only QTY update
2) sales order bom will be created with defined characteristic.
3) Plan cost of sales order will be updated based on Costing ID setting
4)Production order will be created based on Sales order.Good issue and Activity confirmation happen at Production order level but Good received only QTY but no value update.
5)Production order will be settled on sales order.Settlement profile of production order type must contain COST ELEMENT tick under settlement.
6)now my sales order contain actual cost of production.
7)No accounting document will be generated at PGI.
8)only accounting document will be generated at Billing.
9)Only COPA Document will be generated at Sales order settlement. I am going to create PA transfer structure in order to post COGM cost component wise.
Mi missing something?
Question
1) Whether all steps are correct
2) There will be no standard cost release and no variance calculation as well.
3)How can i use RA under non valuated sales order stock?.
4)HOw can i use customer stock under sales order bom with non valuated value?
5)How i will do Production order GR Only qty update?
regards
RK

Hi Raman
All steps are correct.. You seem to be an expert now!
THere wil be no Std cost release or variance calc
You can set up RA based on costs or Revenue... 1st of all check with your client whether they would like to have any WIP in this case
you can receive the customer supplied pipe using 501E movement as Non val
GR - Only Qty Update is controlled by Req Class... You need to leave Valuation field BLanlk in Req CLass and choose Acct Assn Catg E
br, Ajay M

MM Account determination with valuated/non valuated sales order stock!

Hi All,
I have been trying to set up MM account determination in our project for sales order assigned POs.What I have observed is that when I have a PO with sales order assignment and according to requirement class (coming through reqt type) in sales order it is valuated sales order stock then in the PO we get the stock account determined through BSX key. But when it is non valuated sales order stock we get a different account assigned through GBB-VKA key. In both the cases the account assignment category in the PO is "E".
Can someone please explain what is the connection between valuated/non valuated sales order stock and MM account determination and if what is happening is right from account determination point of view?
Regards,
V S

These are two different postings:
BSX: stock posting
GBB: Offsetting entry for stock posting
Stock posting (BSX)
This transaction is used for all postings to stock accounts. Such
postings are effected, for example:
-   In inventory management in the case of goods receipts to own
    stock and goods issues from own stock
-   In invoice verification, if price differences occur in
    connection with incoming invoices for materials valuated at
    moving average price and there is adequate stock coverage
-   In order settlement, if the order is assigned to a material with
    moving average price and the actual costs at the time of
    settlement vary from the actual costs at the time of goods
    receipt
Offsetting entry for stock posting (GBB)
Offsetting entries for stock postings are used in Inventory
Management. They are dependent on the account grouping to which each
movement type is assigned. The following account groupings are
defined in the standard system:
-   VKA:     for sales order account assignment
         (for example, for individual purchase order)

Material Ledger Functionality with Non Valuated Sales Order Stock

We are in the process of setting up Make To Order (MTO) with Non Valuated Sales Order Stock. We currently use the Material Ledger in our other businesses that use Process Orders.
Does the Material Ledger functionality support MTO with Non Valuated Sales Order Stock? I have been testing this and have not yet figured out how to get ML postings. We are using production orders that settle to sales orders. We do not bring this into inventory, the costs reside on the sales order.
If this functionality does exist, I would assume I need to configure the Material Update Structure but I cannot find any documentation on this.
Any help would be appreciated.
Regards,
Greg

Hi Greg,
no, material ledger will not be able to calculate and allocate actual costs for the sales order in the scenario you describe. It would of course, if you used the valuated sales order stock.
Generally SAP sees in the valuated sales order stocks (avaliable since 3,1 or something) a great improvement and no real reason to use still the non-valuated scenario.
best regards,
Udo

NON VALUATED SALES ORDER STOCK

Hi
Could someone able to give me Business examples for Non valuted sales order stock..?
Aravind

Hi,
Software materials (like chips , licenses ) are generally not valuated at stock but are procured for a particular sales order stock.
Regards,
Mrinal

Non valuated sales order stock explanation

Dear All,
Can anybody explain me Non valuated Sales order stock briefly.
I know some of the basics about this scenario but i would like to know more about this scenario.
appreciate your explanation.
Regards,
kishore.

With non-valued sales order stock you must also enable the sales order as a cost collector. All costs and revenues can then be assigned to the sales order. Goods movements for the finished good are performed and quantities tracked, however, the goods movement have no value and no financial impact.
For example, you manufacture a product and all the cost to manufacture the product are assigned to a production order. You do a goods receipt to record the produced quantity and the inventory quantity of the sale order stock is increased. In a valuated sales order environment, this transaction would debit inventory and credit expense. In the non-valued sales order environment, no financial posting is made and the costs remain on the production order.
When the goods are later sold, the quantity is removed from sales order stock, but again no finacial posting is made to account for the inventory since it is non-valued. The only financial posting would be to charge the revenue amount to the sales order with an offset to A/R. So at the end of these transactions all the cost and revenue are residing on the production and sales orders. You do have the option of settling those amounts to COPA.
thanks,

Valuated/Non valuated SAles Order Stock

Hi,
Can anyone explain the difference between Valuated & Non valuated Sales order Stock
Thx & Regards

Hi,
If the sales order stock is valuated, you have immediate access to its value in Financial Accounting. The assigned accounts are debited and credited as a result of the valuated goods movements. From the viewpoint of MRP, the sales order stock is available for the sales order only.
If the sales order stock is not valuated, it is managed via a cost collector. The system does not carry out invoice verification postings for goods movements, and you cannot obtain an overview of how the stock is valuated until the end of the settlement period in Controlling.
Valuated sales order stocks have the following advantages:
The full costs are available at each manufacturing level.
All goods movements are immediately reflected in Financial Accounting
Assign points if helpful
Regards,
Saurabh

Product costing valuated sales order stock

Hi all,
We are in complex mfg & currently re-vamping all the ERP SAP instances ( totalling 13 company codes into one single)
All 13 units( who use NON Valuated scenarios for cost object controlling) wil use valuated sales orders & projects. The old 13 companies will be trated as profit centers with transfer pricing functionality ( Multiple valuations)
My issue is to get a product cost for sales order in <b>profit center view</b> ( plan cost) exactly same as to the marked standard cost itemisation of the FERT material.
We mark & release the std cost in Jan & the client wants to have the same itemisation of the cost ( with same values) even if they create a sales order in 2nd or 3rd or last quarter. ( As you might be knowing that the sales order wil always cal;culate the values as per the current qty structure date. In Std SAP date control, there is nothing which allows us to cost exactly the same cost estimate as marked & released in JAn)
Could somebody pls give pointers as how to get this sales order plan cost itemisation exactly equal to prevously marked & released itemisation ?
We use the Std costing variant ( Costing Type = Profit center valuation) with Std date control.
Thanks in advance to all of you,
Warm Regards
Dhiraj

Hi,
If the sales order stock is valuated, you have immediate access to its value in Financial Accounting. The assigned accounts are debited and credited as a result of the valuated goods movements. From the viewpoint of MRP, the sales order stock is available for the sales order only.
If the sales order stock is not valuated, it is managed via a cost collector. The system does not carry out invoice verification postings for goods movements, and you cannot obtain an overview of how the stock is valuated until the end of the settlement period in Controlling.
Valuated sales order stocks have the following advantages:
The full costs are available at each manufacturing level.
All goods movements are immediately reflected in Financial Accounting
Assign points if helpful
Regards,
Saurabh

ECC ehp4 A&D Subcontracting in combination with valuated sales order stock

Hello Experts,
a customer's Equipment (serialized material) is received in a valuated sales order stock (special stock E) and must be delivered to a third party service provider in subcontracting, with relevant spare parts (special stock O). The proces is originated in the Customer Service module where a "Returns and Repair" scenario supports the material return (inbound delivery) from Sales order type RAS Repairs / Service, on the plant, in a valuated sales order stock. Based on a repair procedure a Service order is created from the Repair order to track repair activities which are mainly executed at the workshop (planning plant). Our customer needs to deliver the component to an external service provider. Service order and Repair order have both a PS WBS account assignment.
Tracking of vendor's stocks levels with related deliveries and outputs is a must for the customer. Main Equipment to be repaired is stored in the sales order stock A. Components are stored in a different plant, in (valuated) project stock.
We activated the relevant business functions for Maintenance and Service processing in the Aerospace & Defense industry (MRO) including LOG_EAM_ROTSUB, A&D Maintenance, Repair and Overhaul AD_MRO_CI_1, Material Exchange with ATP Check AD_MRO_CI_2, Rotables/Sharing of Spare Parts, Subcontracting Improvements AD_MRO_CI_3 with exclusion of LOG_EAM_ROTSUB_2 for which EHP5 would be required.
The result is an error (AD_SUBCON094) that occurs when you try to create the subcontracting purchase requisition stating "You are using Subcontracting for MRO processes. During maintenance of the purchase requisition item or purchase order item, you set the account assignment to a PM/CS order. If you are additionally using a valuated project or sales order you would have two real accounting objects, therefore this combination of account assignment and special stock is not allowed.
Choose a different account assignment or a non-valuated special stock."
I'm also investigating on note 863154 - A&D subcontracting components from special stock. This note states that components must be on the same special stock which seems preventing again the above mentioned scenario. Please advise if you already implemented a similar process and if you have any way to support the same.
Thanks,
Stefano

Stefano,
Do you have a solution for this?
Best regards
Jose Marin

Third party process with Valuated sales order stock

Hi All,
We have third party sales order process with valuated sales order stock. The problem is that in the theird party PR which is triggered directly from the sales order it determines a stock account which is assigned to the BSX key in OBYC.
But since this is third party processing as per my understanding a consumption account assigned to key GBB-VAX (since account assignmnt category is X) should get determined, so that when the GR is done against the PO a consumption posting is done in the background.
I am not able to understand if the system is determining the stock account due to the fact that it is valuated sales order stock and if so, what should happen after GR. Should we have a stock created for the material which is physically directly delivered to the customer?
Regards,
V S

Hi,
Check GBB-VKA which is defined in OME9 for your ''E'' Account Assignment Category that SAP will debit upon GR posting
Also check "X" GBB-VAX and the G/L account assignment in OBYC
The posting on GR should be debit KBS -Credit GR-IR
Thanks
Diwakar

He material is not displayed as valuated Sale Order Stock

Sale Order has been created and MRP execution is done at MD04.
The Sale Order is released as Production Order.
But when I am executing T Code MBBS I am getting error message syaing
The material is not displayed as valuated Sale Order Stock.
Diagnosis
The system has not found any stock that satisfies the selection criteria entered.
Possible reasons for this are:
The material does not exist. Have you entered the right material number?
Your selection is too restrictive. The system was not able to find any stock that satisfies all selection criteria.
The stock balance is zero.
Procedure
Check all the selection criteria you entered.
Stock overview has displayed enough stock for material.
Please adivse me how Material can be displayed as valuated Sale Order Stock at MBBS.
Regards

Hi,
Check whether the Production order execution is done and any GR has been done against the Order.
Once the above is done, check in MBBS, the stock will sit in the Valuated SO stock.
Even wait for any other replies.
Thanks & Regards,
Ravi Kumar

Valuated Sales order stock - Goods Receipt

Greetings,
I am trying to better understand the concept of 'Valuated Sales order stock" and I read in the SAP documentation that:
"When you are using a valuated sales order stock, externally procured individual requirements materials are assigned to the sales order stock at the net order price at the time of the goods receipt"
But I find that in our SAP system, this is not the case. Externally procured materials are valued at whatever price they are costed in the sales order they are used.
I can have a PO whose net price is 5000 Euros for Material X but if that same Material X is costed at 8000 Euros in the Sales order to which is it used, the GR for Material X will be at 8000 Euros.
(the PO for Material X is assigned against the sales order).
Perhaps I am misunderstanding what is meant by "externally procured individual requirements materials"?
In the example above, material X is not the Finished Goods sold to customer through the Sales order. It is a component that is involved in the production of the FG.
It seems to me more logical that Material X value be based on the cost estimate computed in the sales order rather than on the PO Net price...
Thanks in advance for your valuable feedbacks!
Best regards,
Sylvain

Hello Nikolas,
Thanks for your answer.
Yes, we value our inventory at Std.
(Is this why the GR is valued at Sales order cost estimate and not Net Price?. SAP does not mention this in its documentation)
I understand your point but my argument is based on the fact that if a purchased material (Material X in my example) is received into stock at the Net Price value, then, there will be a mismatch between
- the Cost Estimate of Material X in the Sales order (Material X will be valued at its Std there, based on our Costing variant)
and
- the value at which this Material X will be consumed in the Production process (since it will be at Net Price).
This would cause a Production variance to be recognized since the actual costs to produce the Finished good would be different from the Cost estimate of the Finished Good in the Sales order (and the cost estimate in the sales order determine the COGS of the Finished Goods in accounting).
The difference of 20 you mention is treated as a Purchase Price variance in our case. That PPV is assigned against the Sales order.
Best regards,
Sylvain

PO against valuated sales order stock posting to consumption account

Hi All,
I am creating a PO with account assignment against valuated sales order stock. However the posting happens to consumption account (GBB) instead of the stock account (BSX). The following settings exist
1. The material type is both quantity and value update
2. The account assignment category used in PO is E which has special stock = E, account modifier = VKA and consumption posting = E
3. The requirement class (in SD) has account assignment = E and valuation = M (even tried with A)
4. The valuation class for valuated SO stock has been maintained in the accounting view
However the system picks up the account corresponding to GBB-VKA and not BSX. Can anyone point out any setting that may be mising here.
Regards,
Ketan

Hi,
Maintain the consumption posting as blank against the account assignment used in PO in OME9 and test the scenario again.
Regards,
AKPT

Non valuated sales order stock vs valuated

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