Suppliers and inventory valuation discounts.

Hi friends,
We manage agreements with vendors for rebates. For the operation of the rebates everything seems ok. However it me has been requested to include these rebates in the valuation of stocks. Have there someone having this issue. Your help will be welcome.
Kind regards

You r right, this transaction will open following period for postings. You should take into consideration that you may close the previous period for postings using transaction MMRV. In fact, you should perform this right after you finish all your month end activities, so accounting value of your inventory cannot be changed.
In terms of year end materials valuation, depends on you valuation procedure, and local legal/fiscal requirements of your company (LIFO/FIFO/Inflation...) If you don't have any particular need, you don't need to perform any particular operation at year end, it's just another period change.
Hope this helps!

Similar Messages

MM period / Year Closing Activity and inventory Valuation ??

Hallow Experts !
At the time of Period end, we close the Posting Period in Transaction Code - MMPV. So as a Result system opens Next posting period Automatically. (Please Correct if i am wrong). At a time two posting periods are open, Current and previous posting period.
So, while this period close and open activity, The Material Stock valuation is carry forwarded from closing posting period to Opening period Automatically ?
I want to understand the System logic for this inventory valuation carry forward in brief.
Also please explain in brief, Year end activities by Materials Management side for material Valuation ???????
Thanks in Advance !!

Hi,
Before closing a period, you must ensure that all the transactions related to are posted( Examples: GR,IR etc).Once you close the period in MM side, its difficult to post again in that closed period. For more read the SAP notes 487381.
You can check which period is open in MMRV( you can set here back posting allowed or not) and close the period in MMPV.
Initiation of period can be done in MMPI (1st time only) and setting of MM period can be done in OMSY.
Inventory valuation & automatic account posting depends on following T.codes and where is your material valuated (plant level or in co.code level)
1.OMSK: Valuation Class with Account category reference,
2.OMWM: Active Valuation Grouping Code,
3.OMWN: Active Movement type with G/L account,
4.OMWD: Active Valuation Area,
5.OMWB: Active Chart of account,Valuation Grouping Code,Account Grouping Code, Valuation Class and G/L acocounts
Regards,
Biju K

STO Inventory Valuation

Hi Gurus,
I have doubt in inventory valuation when STO is done :
1. We create STO in ME21N.
2. We do Post goods Issue in VL02n
3. Now in ME22N for this STO system under purchase order history for mvmt type 641 system shows the inventory value posted.
4. When Goods Receipt is done at desitnation location through mvmt type 101 system doesnt show any value against this document
In this case how is the inventory value transferred from one plant to other plant within system. Is there any configuration required for this & what has to be done.

Hi
If you process STO bet.plants belong to same company code...then the material will be issued at supplying plant by 641 movement type.... and you have to do GR at receiving plant by useing movement type 101.
Since all the accountings,P&L accounts and all maintained at company code level....all the accounting documents all created at supplying Plant...ie) Stock Acc.of Supplying Plant is Credited....and Stock acc. of Receiving plant id Debited....and if you maintain Std.Price at Receiving Plant & is ther any Price diff.bet. Supplying plant and receiving Plant, then the Price diff will go to Price Diff. acc( TEK is UMB).
Reward if useful
Regards
S.Baskaran

Reversing A/P Invoice posted with wrong date and inventory cost adjustment

Here's the situation:
We had a PO dated 9/1/09 for items with a cost of $14.50, a Goods Receipt was entered 9/15/09 for the items with the same cost on the PO of $14.50. Somehow the order got lost in the mix and the AP invoice wasn't entered until today, with a posting date of 1/21/10 and the cost was corrected per the original vendor invoice to the right amount of $19.33. The invoice was actually dated 9/15/09. This resulted in hitting the vendor, purchases clearing and the inventory account (for the cost adjustment) in January 2010 when it should have occurred in September 2009.
The inventory itself has come and gone in the time between the GR and when the invoice was done with the incorrect date. Normally I would try to reverse the transaction with a Credit Memo and start over, however since the inventory side happened so long ago, I don't see any way of easily going backwards. I thought about doing service CM/invoice but what I am most concerned about is having the inventory valuation occur properly at the correct time. I'm not sure how to go about this.
Using SAP B1 2007A PL42 with moving average inventory.
Any thoughts would be appreciated.

Nicole,
I am afraid you may not have ability to do the adjustment based on historical date that long times ago. You know, the moving average has limited calculation based on current quantity and cost. There are no options to go backward especially new year is coming.
Thanks,
Gordon

Free Goods - FI & Inventory valuation Impact

Dear All,
I would like to know what will be the FI & Inventory valuation impacts in the below 2 cases
1. When free goods indicator is flagged for an item in PO.
2. When free goods indicator is not flagged, but GR-IV and Invoice receipt indicator is unchecked.
I understand what free goods are, but what i need to know is, how will the inventory be valued in both the cases & what will be the FI impact.
I hope my question is clear, await inputs.
Regards,
Vivek

Hi,
First of all, if you activate "Free" indicator then "GR based IV" and "Invoice Receipt" indicators get deactivated automatically or when you deactivate "Invoice Receipt" indicator then "Free" indicator gets activated automatically. It's viceversa.
Now It depends upon the Price Control you have maintained in the material master.
Once you activate "Free" item indicator OR deactivate "Invoice Receipt" indicator in PO then at the time of GR if;
Price Control is "V" (MAP)
Goods Receipt happens on zero value and inturn reduces the MAP of the material which affects the material valuation. And No FI Entry will get generated.
For e.g. Current Stock of Material = 100 KG and MAP = 110 INR so Material Value = 11000 INR
After GR of 10 KG on FOC basis, Current Stock of Material = 110 KG, Material Value = 11000 INR so MAP = 100 INR
Price Control "S" (Standard Price)
After GR, there is not any effect on the Standard price of the material or material valuation.
For e.g. Current Stock of Material = 100 KG and SP = 110 INR so Material Value = 11000 INR
After GR of 10 KG on FOC basis, Current Stock of Material = 110 KG, Material Value = 11000 INR and SP = 110 INR
Here At the time of GR following A/c entry get generated;
Price Difference A/c - Dr - 1100 INR
GR/IR Clearing A/c - Cr - 1100 INR

Engineer to Order Scenario-Target Costs and Stock Valuation

I have got a query pertaining to Engineer to Order Scenario. A production order has been created with WBS element as the account assignment .Its a valuated project stock scenario, with configurable material. As per SAP standard behaviour and my limited knowledge, the Goods Receipt for FERT/HALB happens according to either of the four strategies:
     Standard Price ( if there exists one)
     Customer Exit COPCP002
     Sales Order Cost Estimate
     Preliminary Order Cost Estimate for prod order
However ,I have come across a case where although a preliminary order cost estimate exists for the production order, the system is not able to determine target costs. As a result the entire variance is posted as remaining variance at the time doing a variance calculation on the production order. Moreover at the time of Goods Receipt for FERT material,the system passses an entry Price diff A/c -Debit to Cost of Production, instead of debiting Inventory and crediting cost of production(Price Control is S, no standard price exists for the material)
Thus my query is :
1) In case of Engineer to Order Valuated Stock Scenario where prod order is created with reference to WBS element, how is the standard price (or target costs for version 0) determined
2) Under what situation at the time of goods receipt ,will an entry " Price diff A/c Dr & cost of production-Credit will be posted, instead of Inventory A/c being debited?
Awaiting a reply
-Regards
Amit Kulkarni

Hi Amit
the easy answer first: The standard price is just taken out of the material segment without WBS assignment. That means if you maintain a standard price in the accounting view of the material master for the material number + plant that will be the fallback to be used. That will at least reuslt in a inventory posting, instead of pure price differences (against a price of zero)
Why your production order cost estimate could not be derived I cannot say. But he first startegy will be to search for the cost estimate to the WBS. Is there not something in the project system to perform a project costing and save it? in that case that will be searched and used for the order target cost and inventory posting.
best regards,
                  Udo

How to run "Transfer Invoice Variance to Inventory Valuation"

Hi friends,
Im using oracle 11i. we have purchasing, inventory, AP, GL. Pls give me navigation path of running Transfer Invoice Variance to Inventory Valuation concurrent program. i have created an invoice with some addition cost (freight) that is not included in Purchase order. i have run "Transfer payalbes to general ledger" and posted those journals. I need to run Transfer Invoice Variance to Inventory Valuation program so that item costs get re-averaged. how can i do that? pls provide me the exact path including responsibility name.
Thanks in advance.
LISAN

Hi,
You can also refer to:
Oracle Cost Management User's Guide
http://download.oracle.com/docs/cd/B25516_18/current/acrobat/115cstug.pdf
Thanks,
Hussein

Report with difference of prices from Inventory Valuation

Hello!
I need report with result from Inventory Valuation: Difference of prices= New price - Current Cost. Report can show last 7 documents and i should choose item code.
Can u help me?
Greetings from Poland

Hi,
Please check This
Select A.DocNum,A.DocDate,B.ItemCode,B.Dscription,
B.Price as NewPrice,B.RActPrice as CurrentCost,B.Price-isnull(B.RActPrice,'0') as Difference
From OMRV A INNER JOIN MRV1 B ON A.DocEntry=B.DocEntry
Where (B.ItemCode='[%3]' or '[%3]'='') Having (B.Price-isnull(B.RActPrice,'0'))='0'
Thanks,
Nithi

GRPO not shown in Inventory Valuation report

Hi All
When I run Inventory Valuation report one of the GRPO is not shown in the report where other GRPOs are shown.
To the GRPO which is not shown Landed cost is added so in place of the GRPO landed cost document number is displayed with the same quantity and price which originallly entered in GRPO not shown. Is this normal system behaviour? Please reply
thanks
SV Reddy

Hi Sachin,
thanks for the reply,
But the Landed cost document value in the inventory valuation report is same as GRPO document value. When you add landed cost based on GRPO , in the valuation report it should show GRPO value + Landed cost right, but the system doesnt displya this? any other reason it could be?
thanks
SV Reddy

Inventory Valuation based on Sales Order Costing

Dear All
My client requirement is the inventory value should happen based on the "Sales Order Cost Estimate"
Kindly give the configuration steps, if it is possible in SAP
Regards
Anilkumar

Hi rback59,
The information you have provided is very clear and accurate. Thank you. I am hoping that you can assist with a related problem I am facing:
We have sales order costing in place with the Material Ledger and multiple valuation. For financial reporting purposes, we have a legal valuation/local currency variant entered in our requirements class (46) and we are using this to value our sales order stock. The problem we are facing is that the requirements class allows us to enter only one costing variant. This means we are not able to create a cost estimate for our two additional valuation views (group and profit centre). As a result, we are forced to use the material standard price in the material master for the group and profit centre views which is not ideal.
Do you know if there is a way to create cost estimates in all 3 valuation views for a single sales order line item?
Any pointers would be appreciated.
Thanks,
Ross

Error in "Inventory Valuation Method using Moving Average"

Dear Sir,
Here I am using moving average as inventory valuation method at one of my client. I want to know that in SAP Business One, in case of F.G. valuation we can only get the valuation of Raw Material and not the direct expenses cost.
Can you please tell me how should i put the Direct Expense Cost (e.g. Labor Rate) in F.G. inventory Valuation?
Please reply ASAP.
Thanks & Regards
SS

Hi,
Only the raw material cost will be added to the Cost of the FG based on the Quantity and price in the BOM.
Ex:
To make Parent Item FG 1 nos , you required 2 nos of Child Item of Rs 10 each,
Create Bom for the same and refresh the cost of the FG (will find a refresh arrow in the Bottom of the BOM -Screen)
Once you Issue child parts to the respective production order and make a receipt for the Parent Item the cost of the FG will be posted as RS 20
If you want to add the labor cost to the FG there is no direct provision to add the cost in SBO, we have give a work around only as follows.
Create a Service Item ex.Labor Cost and give the Standard cost for that Item in inventory tab For example for Rs 200/Hr
Now add the Service item (Labor Cost) in the Bill of material and in the Quantity field give the Time for the labor required is if the Labor Time taken is 30 min to make 1 FG give 0.5 ie (convert the cycle time to Hours and give the decimal value)
then refresh the BOM,
Now the cost of the FG will be 20+100( labor cost) = 120
The above method can be used only if you have determined a standard time of labor to manufacture,
With regards,
G.Eshvanth Singh

Inventory Valuation Method

HI,
My client has the requirement like comparison of Item with different valuation method in a single report.
Is there any provision to do this.
Please suggest
Regards,
Vikram

Dear Vikram,
Inventory Valuation Method is inteneded as a managerial report to check what-if scenarios. For instance, you can see what happens if you value an item based on a different costing method. This report is not intended to be used as report for auditing. For audititng purposes use the Inventory Audit Report.
You can use any standard method for the inventory valuation. You can also define various criteria to restrict the selection for inventory valuation.
Goto Inventory->Inventory Report->Inventory Valuation Report.
You will have to export to excel and consolidate the results.
Please note It can be run for other costing methods than actually selected for an item. For the selected method of valuation for an item, please run Inventory Audit Report. Exporting will work for you.
Regards
Preety Goel
SAP Business One Forums Team

Material document line item - inventory valuation affected ?

Hello
In the framework of building a stock report, I'm trying to know if a material document line item has affected inventory valuation that is to say if a corresponding accounting document line item has been posted.
Explored solutions :
- there is no link between MSEG and BSEG
- I tried to look at Quantity string (BUSTM) in MSEG and looked at Quantity strings parameters in T156M but couldn't find a parameter of the value string mentionning if it affects inventory valuation or not
Thanks a lot in advance for your inputs
Regards

Hi,
MKPF is for material document header table MSEG is for material document item table
Creation date will be at the header table, use document number to link both the tables.
Regards
Merwyn

FIFO Inventory valuation without Balance Sheet Valuation

Our business wants to know if they can have real-time FIFO inventory valuation;
At a give point, When we perform and update the material prices through the Balance sheet Valuation - FIFO procedure; system automatically revaluates the inventory at FIFO with offsetting to an expense account.
However, the requirement is to have FIFO real time without performing any month end tasks/ postings to calculate and update the material prices.
Given that the existing material price controls (S and V); Is the above possible ?
With Material Ledger; some of the standard functionalities can be leveraged i,e to have one valuation for std/ actual and the other to have FIFO valuation but the business thinks this is too much of an effort to maintain this functionality. Since, even for this option - the business has to run month end jobs.
Thanks !

Hi
Real time FIFO valuatopn is some thing which would require ML...
however, there are companies who valuated the inventory based on FIFO at period end w/o any use of ML...
I am not very sure as I have never used it - But using MRN9 you can have a comparison of inventory values as per the 2 principles and if you tick "Update Database", it would post to the books....
Please await further replies from the forum members on this...
br,Ajay M

Any changes to BI for procument and Inventory in Delta Fun & release notes

Hello Guru's
Are they any changes to BI for Procurement and Inventory, in the DELTA Functionality and release notes. Will anyone reply me any link that will be of great help.
Full points to the link / oss

Hi,
See
Treatment of historical full loads with Inventory cube
Setting up material movement/inventory with limit locking time
The steps in BI 7.
In R3
0. Delete previous data: TC lbwg, application 03.
1. Delete Queue in LBWQ/SMQ1 related to 03.
2. Lock the system, don't allow any transactions from Users.
3. Stock initialization: TC MCNB, structure 2lis_03_bx. (Here Select All Stocks(Including Non-Valuated)).
4. Statistical setup of mat movements: TC OLI1BW or sbiw path
5. Statistical setup of mat movements: TC OLIZBW or sbiw path for 2LIS_03_UM load.
In BI
0. Load initial stock: datasource 2lis_03_bx using InfoPackage and then Run DTP with the following options.
In DTP: Extraction Tab--->Extraction Mode = Initial Non-Cumulative for Non-Cumulative..select this and then Execute.
1. Cube>Manage>Collaps-->Don't select "No Marker Updating indicator" and then compress.
2. Load 2LIS_03_BF and 2LIS_03_UM Initial runs using InfoPackages and then Cube>Manage>Collaps-->Select "No Marker Updating indicator" and then compress.
Now check the data with MB5B In ECC and recon data with Report on 0IC_C03 Cube.
Thanks
Reddy

Suppliers and inventory valuation discounts.

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