Operative and Parallel Valuation

Hi All:
I cannot get my head around this and I am sure someone can explain it -- what are the differences between Operative and Parallel Valuation?
I am a technical guy, who is not involved into Finance, especially GL areas. But what see so far is both these areas are used to revaluate deals and only difference I see is that parallel valuation creates entries during re-valuation for each individual line item; while operative does one per transaction.
If that is not critical, technically I should be able to create only one valuation area, and that should be operative area (001)
Little bit of background info: we are moving from R3 to ECC6. in ECC6, operative valuation is a mandatory and it has to be setup. While on R3, my client had only parallel area (004). so I don't see a point of mapping both valuation areas in ECC. I should be able to get away with 001. Am I correct?
Thanks,
JS

Hi,
I assume the valuation area you are asking about is in transaction manager component only. Technically all valuation areas are same in the sense that they have the same functionality. But from a functional stand point, every valuation area is determined based on either different accounting principles or different valuation needs. For e.g. one valuation area can be for your local GAAP while one can be for IFRS. It all depends on the business requirements whether you need multiple valuation areas at all or you can use one itself.
By default 1 valuation area is required and hence 001 will be active and this will be your operative valuation area. Any other valuation are you define will be parallel valuation area. Now if you dont want other valuation areas, then you need not create them. In your system, if you have been using 004 as for lets say IFRS and after upgrading you can configure 001 according to IFRS itself if you dont want VA according to any other GAAP.
Regards,
Ravi

Similar Messages

Treasury Money Markets- Operative Valuation Area and Parallel Valuation Are

Hello Folks
I have a problem I am trying to fix in Treasury Money Markets. The guys that created the fixed term deposits in Money markets did not create them in the Operative Valuation area. They created them in the Parallel Valuation area and went ahead to initialize it, they deleted the operative valuation area. Now the problem came in when new transactions were created. In the process of creation they asked for the operative Valuation area i.e. the new transactions being created. This was then created, but now the problem comes in settling and posting of the old transactions that have matured. These do not exist in the Operative Valuation area.
I cant post anything using TBB1 for the old transactions that were created without the operative valuation area, the system dumps and from the analysis I can see that its the lack of the operative valuation area. For the new transactions being created, a payment request cannot be generated for transactions requiring one.
How can I make sure that the Transactions in the Parallel valuation area also exist in the operative valuation area? Has anyone ever had this problem? Any suggestions on how I can go about solving this problem?
Regards
Valentine

Hi,
I assume the valuation area you are asking about is in transaction manager component only. Technically all valuation areas are same in the sense that they have the same functionality. But from a functional stand point, every valuation area is determined based on either different accounting principles or different valuation needs. For e.g. one valuation area can be for your local GAAP while one can be for IFRS. It all depends on the business requirements whether you need multiple valuation areas at all or you can use one itself.
By default 1 valuation area is required and hence 001 will be active and this will be your operative valuation area. Any other valuation are you define will be parallel valuation area. Now if you dont want other valuation areas, then you need not create them. In your system, if you have been using 004 as for lets say IFRS and after upgrading you can configure 001 according to IFRS itself if you dont want VA according to any other GAAP.
Regards,
Ravi

[FSCM] add parallel valuation area and new valuation classes

Hi, everyone
I have a plan to add parallel valuation area and new (general) valuation class for International Financial Reporting Standards. But I have no experience adding another valuation area. Basically, SAP says new valuation area could be added any time. The concept of parallel valuation area also support that. But I am concerning that there could be a problem technically. Even though there would be a problem when I try to transfer valuation class of new valuation area.
If someone has an experience with these problems, please let me know and prepare that.
Thanks.
Best regards.
Minsun Joo

OX14 - Define Valuation Area (Tick one only- Once your system go live, no more changes)
             Most company take the SAP recommended choice - Value Material Stock at Plant level
             Value Material Stock at Plant or Company Level
          o If you valuate material stocks at plant level, the plant is the valuation area.
          o If you valuate material stocks at company code level, the company code is the valuation area.
          o The decision you make applies to the whole client.
Kesh

What's the meaning of "Parallel Operating System" and "Parallel Desktop"?

What's the meaning of "Parallel Operating System" and "Parallel Desktop"?
Also, what is Boot camp? Are they all the same?

Boot Camp installs Windows directly on your Mac so you reboot your system to switch between OS X (the "Mac" experience) and Windows if you need to use it for any reason.
The problem with boot camp is that you cannot use your Mac applications along with any that require Windows, so companies like Parallels have developed "virtualization" programs that allow you to install Microsoft Windows within OS X and run Windows inside of your Mac instead of "next" to it as is the case with Boot Camp. You open the program and boot a Windows installation that loads in a separate window, all while you have Safari, the OS X Finder, Mail, Calendar, and other programs on your Mac still running in the background.
In this regard, the benefit of Parallels Desktop and similar applications is that they allow you to run a Windows program alongside those for OS X so you do not interrupt your workflow in order to reboot to Windows and use them.

Difference between parallel sequence and parallel operation in a routing.

Hi Experts,
Can any one explain me with example the difference between parallel sequence and parallel operation in a routing? wHEN CAN WE USE PARALLEL OPEARTION AND PARALLEL SEQUNCE WITH COMPONENT ALLOCATION.
Regards
Deepak sharma

I think u need to modify ur quest... i think u r asking about Parallel sequence and alternate seq. Below are the details from SAP site.
A parallel sequence enables you to process several operations at the same time.
You use an alternative sequence for example, if
--The production flow is different for certain lot-size ranges
For instance you can machine a work piece on conventional machine or on NC machines. A NC machine has a longer set-up time than a conventional machine. However the machining costs are considerably less. Therefore whether you use NC machines will depend on the lot size.
---The production flow changes under certain business conditions.
For instance, if you have a capacity problem, you have some production steps performed externally by a vendor.

Parallel Valuation Issue

Hi Experts,
In TRM, I have configured three valuation area. 001 for Operative Valuation and 002 and 003 are for parallel valuation. After some time, I was not requiring Parallel valuation 003. therefore I have deleted the same. while doing my TBB1 posting, The deletion resulted in Error message like a short dump and it was getting logged out from TBB1
To fix that, I have went to Initialize Parallel valuation step, Executed Fast Entry for both Parallel Valuation 003, then i was able to post my transaction in TBB1, But i am finding the entries are coming only for Valuation Area 001 which is Operative Valuation and not coming for Valuation Area 002 Parallel Valuation.
I appreciate any kind of guidance or direction from you on my issue
Ganesh

Hi Ganesh,
I am currently having similar trouble with TBB1 where I receive error message below:
TRL intialization for MM, FX, Derivatives, co. code WTRD, valn area 003 is not yet complete
Message no. TPM_TRL052
Are you familiar with this issue? any help would be greatly appreciated! i hope that you can help..

Processing payment in Parallel Valuation areas

Hi gurus,
from business point of view, you trigger payments only from Operative valuation area (001), which means in SAP, that:
- (step 1) first you post respective flows (TBB1), which results in some open items on Open G/L account (one clearing accont) or Customer subledger;
- (step 2) then you execute payemnt program (F111 or F110), which results in clearing of previous open item (in step 1) and creates new open item on respective bank subaccount (depends on Master data of Business partner - SI: payment details);
- (step 3) and last you receive your bank statement, representing confirmation of executed payment. Then you of course post bank account vs bank subaccount and clear the last one.
However, my question is - do you need to follow the same 3 steps for Parallel Valuation areas? Or instead at the beggining you only post to Operative Valuation area (at TBB1), when execute payment run (F111), process bank statement and only after that update Parallel Valuation areas, without steps 2 and 3 (described above). How then it's possible to achieve such functionality, that posting (TBB1) would directly affect respective bank account (vs posting over clearing account and subaccount) - do you need another posting specifications, assigned to payment relevant update types in Parallel Valuation areas and another account symbol, representing Bank account direcly or some other solutions?
Appreciate your advise.
Rgds,
Renatas

Hi Prasad,
thanks for your reply.
I pretty understand the idea of Parallel Valuation areas.
However, if you say that you don't post to GL with TTB1 (I mean those Update types are marked as not relevant for posting) in the Parallel Valuation areas, so my question is how you will get your update of GL accounts in those non-leading leadgers and create required Balance Sheet ? Let's say, you placed deposit of 1.000 EUR with some bank with start date 24/04/20XX, so TBB1 should produce such kind of posting in Leading ledger:
Debit /// Position Money market (Asset side of Balance) /// 1.000 EUR /// Posting date 24/04/20XX
Credit /// Bank clearing accoount (Asset side of Balance) /// 1.000 EUR /// Posting date 24/04/20XX
Rgds,
Renatas

VMWare Fusion and Parallels Desktop Benchmark Comparison

This is a quickie benchmark of VMWare Fusion and Parallels Desktop using Super PI, PC Mark 05, and Passmark.
VMWare Fusion 36932
Parallels Desktop 3094 Beta 2
Notes:
Both virtual machines were allocated with large 10+ GB virtual disks and 640MB of RAM. The VMWare CPU was configured with two processors. The Parallels CPU was configured with 1 (two is not available). VMWare reported the CPU as 1 physical, 2 logical processors running at 2.66 GHz while Parallels reported 1 physical, 1 logical processor running at 9.6 GHz (the combined speed of all four cores on the Mac Pro). The max observed CPU utilization in activity monitor when running under VMWare was 200% and max under Parallels was 173%.
I chose not to compare 1 VMWare CPU vs. 1 Parallels CPU. While Parallels does not support SMP or multithreaded processes on multiple processors the CPU utilization on the Mac went well above 1 core (173%). For this comparison, I wanted to see results of max processing based on what the two vendors have delivered, as opposed to benchmarking the underlying "virtual or hypervisor cpu" on a 1:1 basis. This explains why VMWare was 2x faster than Parallels on some CPU tests.
Both of these products are beta. VMWare is running in debug mode (can not be turned off in this beta).
Caveat emptor on these stats. This was an unscientific exercise to satisfy my curiosity. Some of the extraordinary differences are highlighted with <--.
Platform:
Mac Pro 2.66 GHz, 2GB RAM, Nvidia 7300GT
Disk 1 - OS X, 73GB Raptor
Disk 2 - dedicated disk where each virtual machine image was created separate from the OS or any OS-related virtual memory files.
VMWare and Parallels guest OS: Windows XP Professional, SP 2
Comparison Benchmrk
VMWare Fusion 36932 and Parallels Desktop 3094 Beta 2
Super PI Parallels VMWare
512K 8s 9s
1M 20s 21s
4M 1m 57s 2m 03s
PC Mark 05 Parallels VMWare
CPU Test Suite N/A N/A
Memory Test Suite N/A N/A
Graphics Test Suite N/A N/A
HDD Test Suite N/A N/A
HDD - XP Startup 5.0 MB/s 19.54 MB/s <--
Physics and 3D Test failed Test failed
Transparent Windows Test failed 69.99 Windows/s
3D - Pixel Shader Test failed Test failed
Web Page Rendering 3.58 Pages/s 2.34 Pages/s
File Decrypt 71.73 MB/s 67.05 MB/s
Graphics Memory - 64 Lines 179.92 FPS 111.73 FPS
HDD - General Usage 4.82 MB/s 42.01 MB/s <--
Multithread Test 1 / Audio Comp N/A N/A
Multithread Test 1 / Video Encoding Test failed Test failed
Multithread Test 2 / Text Edit 152.85 Pages/s 138.48 Pages/s
Multithread Test 2 / Image DeComp 5.91 MPixels/s 35.4 MPixels/s <--
Multithread Test 3 / File Comp 3.22 MB/s 6.03 MB/s
Multithread Test 3 / File Encrypt 19.0 MB/s 33.26 MB/s <--
Multithread Test 3 / HDD - Virus Scan 27.91 MB/s 25.49 MB/s
Multithread Test 3 / Mem Lat - Rnd 16MB 5.34 MAcc/s 6.63 MAcc/s
File Comp N/A N/A
File DeComp N/A N/A
File Encrypt N/A N/A
File Decrypt N/A N/A
Image DeComp N/A N/A
Audio Comp N/A N/A
Multithread Test 1 / File Comp N/A N/A
Multithread Test 1 / File Encrypt N/A N/A
Multithread Test 2 / File DeComp N/A N/A
Multithread Test 2 / File Decrypt N/A N/A
Multithread Test 2 / Audio DeComp N/A N/A
Multithread Test 2 / Image DeComp N/A N/A
Memory Read - 16 MB N/A N/A
Memory Read - 8 MB N/A N/A
Memory Read - 192 kB N/A N/A
Memory Read - 4 kB N/A N/A
Memory Write - 16 MB N/A N/A
Memory Write - 8 MB N/A N/A
Memory Write - 192 kB N/A N/A
Memory Write - 4 kB N/A N/A
Memory Copy - 16 MB N/A N/A
Memory Copy - 8 MB N/A N/A
Memory Copy - 192 kB N/A N/A
Memory Copy - 4 kB N/A N/A
Memory Lat - Rnd 16 MB N/A N/A
Memory Lat - Rnd 8 MB N/A N/A
Memory Lat - Rnd 192 kB N/A N/A
Memory Lat - Rnd 4 kB N/A N/A
Transparent Windows N/A N/A
Graphics Memory - 64 Lines N/A N/A
Graphics Memory - 128 Lines N/A N/A
WMV Video Playback N/A N/A
3D - Fill Rate Multi Texturing N/A N/A
3D - Polygon Throughput Multiple Lights N/A N/A
3D - Pixel Shader N/A N/A
3D - Vertex Shader N/A N/A
HDD - XP Startup N/A N/A
HDD - Application Loading N/A N/A
HDD - General Usage N/A N/A
HDD - Virus Scan N/A N/A
HDD - File Write N/A N/A
Processor Intel Core 2 9653 MHz Processor Unknown 2661 MHz
Physical / Logical CPUs "1 Physical, 1 Logical" "1 Physical, 2 Logical"
MultiCore 1 Processor Core Multicore 2 Processor Cores
HyperThreading N/A N/A
Graphics Card Generic VGA Generic VGA
Graphics Driver Parallels Video Driver VMWare SVGA II
Co-operative adapters No No
DirectX Version 9.0c 9.0c
System Memory 640 MB 640MB
Motherboard Manufacturer N/A Intel Corporation
Motherboard Model N/A 440BX Desktop Reference Platform
Operating System Microsoft Windows XP Microsoft Windows XP
Passmark Parallels VMWare
CPU - Integer Math (MOPS) 112.35 230.31 <--
CPU - Floating Point Math (MOPS) 280.46 588.33 <--
CPU - Find Prime Numbers (OPS) 446.37 676.99 <--
CPU - SSE/3DNow! (MMPS) 2118.56 4737.13 <--
CPU - Comp (KB/s) 2994.16 5952.34 <--
CPU - Encrypt (MB/s) 18.09 36.27 <--
CPU - Image Rotation (IRPS) 598.21 1184.41 <--
CPU - String Sorting (TPS) 2118.81 3672.59 <--
Graphics 2D - Lines (TPS) 220.71 25.15 <--
Graphics 2D - Rectangles (TPS) 189.74 61.8 <--
Graphics 2D - Shapes (TPS) 39.54 13.71 <--
Graphics 2D - Fonts and Text (OPS) 190.39 75.88 <--
Graphics 2D - GUI (OPS) 439.77 63.72 <--
Memory - Allocate Small Block (MB/s) 2533.83 2526.21
Memory - Read Cached (MB/s) 1960.5 1906.27
Memory - Read Uncached (MB/s) 1871.79 1826.08
Memory - Write (MB/s) 1687.81 1545.43
Memory - Large RAM (OPS) 60.99 46.37
Disk - Sequential Read (MB/s) 102.11 76.45 <--
Disk - Sequential Write (MB/s) 58.33 50.9
Disk - Rnd Seek + RW (MB/s) 51.4 40.4
CPU Mark 711.08 1432.72 <--
2D Graphics Mark 743.31 176.5 <--
Memory Mark 599.94 580.38
Disk Mark 766.11 606.7
PassMark Rating 557.27 637.35<br>

Thanks for posting these numbers - it's an interesting comparison.
I would expect the final VMWare fusion performance numbers to be quite a bit better than that of Parallels - they have almost a decade's worth of experience more than the Parallels folks in this arena, and a much larger development team to boot.
Once VMWare Fusion is released to the public, I think that you'll see a clearer distinction between the two products. VMWare will continue to appeal to the professional customer, with a more robust feature set and corporate-friendly features (and a correspondingly higher price tag); Parallels will fall more into the consumer/VirtualPC-replacement market. It will be interesting to see how Parallels will be affected when (and if) VMWare player is ported to OS X.
Interesting about the Parallels performance stats on a native partition - looks like almost enough reason to avoid the bootcamp partition approach altogether. Sharing a native windows installation with a VM in parallels is a pretty scary situation in any case, as the two environments have entirely different hardware configurations. Do-able, but there is some black magic involved (if you want to see an example of what I mean, try to move a windows installation from one machine to another w/different hardware sometime - it ain't pretty); I wouldn't try this in a production scheme unless I had REALLY good backups.

Parallel valuation deactiviation problem

I define in spro for parallel valuation posting rule and document type ZX , after that I run askbn, and post some document.
now I find I can't deactiviate parallel val. in asset accounting, i have multiple depreciation area.
error below when I try to remove document type ZX for company code I001,
(1)Number range has not been created for document type .
Message no. AA738
Diagnosis
No valid number range interval has been created for document type .
Procedure
Specify an interval for number range in the year 999 for company code .
(2) error 2:
Create document number range with external number assignment
Message no. APERB007
Diagnosis
Processing was terminated since the document number range for year 23.09.2011 is set up for internal number assignment.
System Response
You have to enter a document number range with external number assignment for periodic posting of asset values, since the document numbers are not assigned by Financial Accounting, but by the posting program of Asset Accounting. External number assignment should therefore not be equated with manual number assignment. In this case, it means instead that number assignment is external from the point of view of Financial Accounting.
Procedure
Change number range from internal to external number assignment in Customizing for Asset Accounting. Or check the document type entered.
but I already assign number range 31 (external number range) for document type ZX. so how to remove?

Hi,
I already mentioned below:
but I already assign number range 31 (external number range) for document type ZX.
I already flag external number range

Material Ledger Conversion in a Parallel Valuation Scenario

Hi All,
I'm working in a scenario where the Material Ledger is already active (without multiple currencies - in other words, with the local currency).
We would like to activate parallel valuation introducing a new currency type (group currency).
We have already read SAP Note 120380 - "Subsequent activation of multiple valuation approaches" where the preservation of ML historical data would involve a SAP intervention.
It is not clear which kind of activities SAP should do in order to preserve ML historical data, i.e. which kind of data should be involved in a potential ML conversion data process.
Any help will be GREATLY appreciated.
Regards, ALDO26X1

Hi Udo,
first of all thanks very much for your answer.
As described in the note 120380 we are in the following scenario:
The ML is already active (without multiple currencies - in other words, with the local currency)
B) You now require historical data: In this scenario, you must set a new currency key in the ML tables. The fields are filled as start
values with the posted transaction data in local currency (depending on the currency, either transferred or translated). This procedure is
very complicated and can be carried out on a project basis only. Contact SAP if you want to do this.
Unfortunately it is not clear which kind of impacts this procedure would have on the actual data and which are the new values introduced (only stock values in the new group currency for MM periods?).
Thanks for you cooperation.
Kind regards, ALDO26X1

Material price changes in parallel valuation

Hi experts,
i have an issue with Material Ledger. in our client organisation, ML is active and there are materials with price determination indicator set to 3 and with price control indicator 'S' in the material masters.
However over a period of time, the parallel valuation for most materials display different values. it is essentially due to lack of knowledge on the part of users and indiscrete use of CKMM for change of price control indicator from 3 to 2 and vice versa.
Now the business is serious to correct this situation. My questions in this regard are;
        a. what is the best source (table name) from down loading the material prices in different valuation views for a given period
        b. what precautions should we need to take to make changes (manual changes or mark and release of standard cost estimates) for these materials for all the valuation views to the prices ( i have gone through the SAP note 190707.
        c. what will be implications of making such changes on the financial balances of the organisation.
Please give me a comprehensive picture of these aspects as monetary value at stake is quite significant for the client.
Regards,
Rao

a. Use CKMLHD & CKMLCR
b. Make Price Determination Binding in OMX1, once you are done with your changes in CKMM
c. CKMM program tells you whats the financial impact...still you want to play safe...get a copy of production and try it out to see the impact

How to activate parallel valuation for SAPBanking Loan ?

Hi, I'd like to know how to activate parallel valuation for SAPBanking Loan.
When I deal general loan contract with bank, I have to customize FS-CML,
however any other treasury deals are handled in FSCM (e.g. secrities, money-market, foreign exchange and delivatives).
FS-CML doesn't have parallel valuation functions in its own.
So, I think I must customize both FS-CML and FSCM.
I'll wait for your kind answer. Thank you.
Yugo

Hi
It is not possible to activate in such case, u should not have any stock.
With regards
Pavan

Initialization of Parallel Valuation Area

Hi All,
what is initialization of parallel valuation area setting and what is the key date needs to be used here.
Regards,
Andy

Hi Ravi,
I have maintained Valution area 099 for co code XYZ, It already had valuation area 001.
step by step..gng to TRM- Tr Mgr-Gen Settngs- Acc- Org
1) define val area : 099 defined
2)assgmt of valuation areas to co code -defined new val rea for xyz ( it already had for 001)
3) *** of gen valuation class to specific class - defined here 099
4) assign position mgt proceedures- assignd the valuation class 099 for the product used
when i create the transaction it gives me following error
TRL initialization for Securities, co. code XYZ, valn area 099 is not yet
complete
in Initialization of Parallel Valuation area : it is giving Country key not defined
pls help

Parallel valuation area in CFM

HI FSCM Gurus,
Can anyone tell me what all settings are required activate the Parallel Valuation area in CFM.
Thanx in advance...
Useful answers would be definitely rewarded.
Cheers
Megha

Dear Megha,
In Corporate Finance Management, you depict parallel valuation methods using the valuation (depreciation) area. This means that you have to define a valuation area for each of your accounting principles.
The results of the valuations are posted separately by valuation area. For each valuation area, you can decide whether you want the postings to be made to the general ledger or to an additional ledger.
Features:Each valuation area provides you with various classifications that you can use to depict the various valuation rules in the individual accounting principles.
Financial assets: You can divide your financial assets into various valuation classes.
Structure of stocks: You can set the structure of your stocks using characteristics (terms used for differentiation purposes).
Financial products: For certain financial products, you can activate single position management (lot accounting) with various consumption sequence procedures.
You control valuation of your stock using position management procedures that you can assign to stocks depending on the valuation area, valuation class and other characteristics. In the position management procedure, the legally binding valuation approach is defined for valuating a stock (such as lowest value principle or key date valuation).
Hope I had been able to help you. Please assign points and let me know if you need anything specific.
Rgds
Manish

Parallel Valuation Area Initialization Question

Our Treasury configuration was originally not set to post to our parallel valuation area. For the past few months we have been doing Journal Entries to true-up the parallel ledger to the operative ledger. I have completed the configuration to post to the parallel area, however, when executing TPM_Initialize the system want to post old flows to the parallel ledger. Is there a way to not post these flows to the parallel ledger since we've already taken care of these postings with JE's? Thanks!

Hi,
If you want to use parallel valuation areas, then initializing the flows has to be done. Give a key date before you started posting JE for the parallel ledger. It will post only before the key date.
Or try excluding your product categories from initialization by specifying the product categories in the exclusion list.
Instead specify the update types for initialization as not relevant for posting. This will ensure that the treasury subledger will be correct while no G/L entries would be generated.
Regards,
Ravi

Operative and Parallel Valuation

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