Valuation Inventory

Hi Everybody:
I have a issue in a Valuation Inventory.
My client needs to do a valuation for his inventories under LIFO method, but physically the movements of this stock are in FIFO.
What can i do, for get this kind of valuation for the inventory?
I'm using Variable Cost for the price control for this inventory.
I did this query in the forum of MM, and tell me that contact an FI
I appreciate the support.
Omar Perea

Hi
Physical movement is not concerned with what valuation principles you adopt. LIFO valuation is more conservative and probably acceptable in accounting standards in cases where prices are raising rapidly. Reverse is the case in case of price falling rapidly. So the best option is to use LIFO when prices are raising and use FIFO when prices are falling in order to conform to more conservative valuation. The reason being you always value based on the value at which you procured your oldest stock.
Jayaram

Similar Messages

Non valuated inventory stock value

Dear Gurus
how to get the value of the non valuated inventory stock, plant wise material wise, though it is being accounted to expenditure at the time of GR itself
kind regards
Prasad.J

HI
AS THE MATERIAL IS NON VALUATED U CANT GET THE VALUATION OF THE MATERIAL
SO NO VLAUE OF STOCK CAN BE DETERMINED BY THE SYSTEM FOR THE NON VALUATED MATERIAL
HOPE U R CLEAR ABOUT WHAT U ASK
REGARDS
KUNAL

Stock Valuation - Inventory Management Cube

Dear Sap Gurus,
We have implemented the Inventory Management Cube in BW.
Quantities are correct, but we have difference on the stock valuation.
For some material stock value are correct, for some other they are not correct.
A saw a lot of OSS notes and how to on this subject, I am trying to solve this issue using these documents, but based on your experience could you explain me how you solved this issue ????
Thanks,

Hi
Did you follow the correct steps?
Initialisation of BX data in the first step.(Loading of Opening Stock)
Then The request in which the opening stock was loaded must always be
compressed with a marker update
Init load of BF And UM in the second step
The request in which the historical material documents were contained
must always be compressed without a marker update and
Successive delta uploads must always be compressed with marker
updates
Check this whether you have done this or not.
Because of missing the steps here also would give you wrong values,
Regards
Ram

"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

FIFO valuation in Group Currency

Hi Experts,
In our client Materail Ledger is activated. Balance Sheet Valuation Inventory on FIFO was activated. at present we have no problem to execute the FIFO valuation and getting the results for currency 10, i;e., company code currency.
At present business wants to extend this FIFO valuation to Group Currency (means based on the movements in group valuation). I have gone through the all customisation steps, and could not able to find any specific setting for currency option.
Can any one tell me how can i proceed further. will it be possible to valuate the inventory on FIFO basis in Group Currency. If So, Can you please let me know the procedures to be followed.
Thanks & Regards,
S Vasu

Hello Vasu,
You will not need any additional config for the FIFO part since the currency type 10 would act as reference for the group valuation. So you would need to update the settings for currency and valuation profile and the reference variant and transfer control for the group valuation so that it refers to the costing variant used in the legal valuation and the conversion is based on the exchange rate as mentioned in the table.
BR // SG

Consume Non valuated stock

Dear Gurus,
I need to consume the non valuated stock for a valuated material. When we created the material, we did as non valuated and created 1000 eaches of inventory. After few months, we changed into valuated by adding price to it and then we received 500 each.
Non valuated inventory - 1000 each.
Valuated inventory - 500 each.
Moving pice - $1.
Total value - $500.
Now the inventory is showing 1500, but the valuated is only 500.
How do we remove the 1000 eaches from the inventory. Please help.

Hi,
I hope your initial upload is inventorised and non-valuated and second case is inventorised and valuated.
1. You need to remove the stock from your inventory (may be a stock transfer to other plants)
2. You need to activate split valuation (Valuation type can be valuated and non-valuated)
3. Do stock transfer to base plant for 500 qty (under valuation type non-valuated) and 1000 qty (under valuated)
Sk.

Company valuation level

Dear experts
Is it possible to set valuation by company for IS Retail? Is there new version of IS Retail to support the company valuation level?
Please advise.
Hengki

Hi,
In SAP Retail, the valuation area must always correspond to a site.
In retailing it is common practice to record the retail price of inventory (retail method). Since it is extremely time-consuming to determine all the costs associated with the procurement of an article without the use of modern IT systems, it is all the more difficult to determine the delivered cost of merchandise. In view of this, the delivered cost of an article is usually taken as an average price calculated on the basis of the retail value.
(a) Valuating inventory at delivered prices (cost inventory method)
You can only apply this method if you can ensure that all changes involving an article can be accurately recorded. What is known in the trade as the u201Ccost inventory methodu201D or the u201Ccost methodu201D involves valuating stocks at delivered prices and assigning costs to individual articles.
(b) Valuating inventory at retail (retail inventory method)
What is known in the trade as the u201Cretail inventory methodu201D or the u201Cretail methodu201D involves valuating stocks at retail, often aggregated at merchandise category or departmental level. Stock is updated at retail for every merchandise category and department. For balance sheet valuation purposes on the balance sheet key date, the delivered cost of the stock is worked out based on a gross margin between cost and retail.
Both the cost method and the retail method can be used in SAP Retail.
Bye and all the best,
Muralidhara

Fifo valuation in retail

Hi there,
I want to now if FIFO valuation is support in retail solution, and if someone have information about it.
Thanks in advance for your help and regards
Mariana
Message was edited by:
Mariana Cuencio

Hi Mariana,
In retailing it is common practice to record the retail price of inventory (retail method). Since it is extremely time-consuming to determine all the costs associated with the procurement of an article without the use of modern IT systems, it is all the more difficult to determine the delivered cost of merchandise. In view of this, the delivered cost of an article is usually taken as an average price calculated on the basis of the retail value.
(a) Valuating inventory at delivered prices (cost inventory method)
You can only apply this method if you can ensure that all changes involving an article can be accurately recorded. What is known in the trade as the cost inventory method or the cost method involves valuating stocks at delivered prices and assigning costs to individual articles.
(b) Valuating inventory at retail (retail inventory method)
What is known in the trade as the retail inventory method or the retail method involves valuating stocks at retail, often aggregated at merchandise category or departmental level. Stock is updated at retail for every merchandise category and department. For balance sheet valuation purposes on the balance sheet key date, the delivered cost of the stock is worked out based on a gross margin between cost and retail. (You can only use the retail method for inventory managed on a value-only basis)
Bye,
Muralidhara

How ERMA is implemented in SAP Retail

Hi
I want to understand the concepts and process behing EMRA(Extended Retail method of Accounting).
I have gone through the SAP standard keys, characterstics, Infosources and other features related to ERMA but i want ot understand how EMRA is actually implemented and how can we understand the whole concept.
regards
mohammed

Hi,
Valuation at retail in SAP Retail corresponds to all aspects of the retail inventory method as used in the trade. Valuation at Retail is transparent and easy to follow. When you use this method, inventory is updated in the article master at retail and at the same time in the Retail Information System (RIS), allowing you to carry out a number of powerful analyses.
Stock margins and inventory valuation in Financial Accounting are always up to date. And thanks to the integration of valuation at retail with Inventory Management and the integration of Inventory Management with Financial Accounting, Controlling and Profitability Analysis, the valuation data is consistent in all areas.
Valuation at retail can be used for both quantity and value-based Inventory Management and Inventory Management on a value-only basis. The following explains how you can best use valuation at retail for your requirements:
In SAP Retail, the valuation area must always correspond to a site.
In retailing it is common practice to record the retail price of inventory (retail method). Since it is extremely time-consuming to determine all the costs associated with the procurement of an article without the use of modern IT systems, it is all the more difficult to determine the delivered cost of merchandise. In view of this, the delivered cost of an article is usually taken as an average price calculated on the basis of the retail value.
(a) Valuating inventory at delivered prices (cost inventory method)
You can only apply this method if you can ensure that all changes involving an article can be accurately recorded. What is known in the trade as the u201Ccost inventory methodu201D or the u201Ccost methodu201D involves valuating stocks at delivered prices and assigning costs to individual articles.
(b) Valuating inventory at retail (retail inventory method)
What is known in the trade as the u201Cretail inventory methodu201D or the u201Cretail methodu201D involves valuating stocks at retail, often aggregated at merchandise category or departmental level. Stock is updated at retail for every merchandise category and department. For balance sheet valuation purposes on the balance sheet key date, the delivered cost of the stock is worked out based on a gross margin between cost and retail.
Both the cost method and the retail method can be used in SAP Retail.
Bye and all the best,
Muralidhara

Raw material cost estimates

HI experts,
Currently we have the following scenario:
There are some raw materials which are procured externally, and these materials are maintained with price control S
Well, the problem is that the standard cost for the material consists of a few more components, for example:
The standard price for the material X is 20 USD which consists of:
- the price of the material itself : 15 USD
- the import duty : 5 USD
let's say if the actual import duty happened during IR is 6 USD, how can we get the variance from the difference between the import duty? I am unfamiliar with raw material cost estimate, but seeing that the import duty will be captured using condition type in PO, i assumed that we can use raw material cost estimates with this, and use the COPA report with record type B for this case.
Could anyone give any suggestions regarding this case? It is better if it comes with step to step guide.
Thank you very much in advance
Regards,
Erwin

Hi Erwin
1. The ideal design would have been Price Control V if the material is outright purchased... There by not leaving any scope for variances... You would agree that it is best to valuate inventory @ actuals as far as possible
2. If you want to retain S, then release your Std cost as many times as the Base Price of 15 or Import duty of 5 usd changes... This will also avoid variances during MIGO.. However, it will throw up inventory revaluation figure each time u release new cost estimate
Else, the variances will be updated to CO or COPA as per your choice in OKB9.... The record type will be B
Are you not able to update variance to COPA?
br, Ajay M

Maintain Storage Location in IS Retail

Hello everyone,
I'm newbie in IS retail... i want to ask about storage location in DC or site... if we create DC and store, we can't transport it with tcode stms, but we must transport itu using wbte tcode... my question is i want to maintain storage location, i go to the menu : financial accc (new) --> material management --> maintain storage location, is that right? and then if i want to transport that sotrage location, i user the stms tcode or wbte and wbti tcode?
Hope your replies soon guys, really need your help...
Regards
Kenzo00

Hi Kenz,
First, you have to create Reference DC and Site to simplify the process. When you copy, the following data is copied from the reference site;
(1) General site data
(2) Calendar
(3) Valuation / Inventory Management
(4) Listing
(5) Requirement Planning
(6) Distribution
(7) POS Interface
(8) Layout
After creation, you have to carry out Site Export and Import using transaction code WBTE
Here, you can execute above transaction codes in background or in foreground.
Then system creates one file BTRA in path: /usr/sap/trans/tmp in the exported system.
Log on to the target system to Import the site using transaction code WBTI
Before importing you need to move the file from Export system to Import system under the same path.
Execute it in Test mode and see any errors, then remove the tick of test run and execute to Import the site.
Regards - Muralidhara

Accepted at Origin - process

Question from MM Colleage:
Have you used the 107 and 109 movement types before? My understanding is that the accept at origin box is checked at the line item level on the delivery tab of the PO to leverage these 2 movement types. An inbound delivery is completed VL31N. Does VL32N when you post the GR create the 107 movement? Iu2019m disconnecting what t-codes use 107 and 109. Will VL32N create 107?

Response from Remo Fabietti:
I have used these in the past. Yes, you need to set the origin box on the line item. You are not required to use inbound deliveries for this movement (optional). The first movement will receive it into gr blocked stock which in principle allows you to post the invoice, see the inventory, but it is not valuated until you perform the 2nd receipt with which to formally receive into inventory and as valuated inventory. You use MIGO for this. I have attached several knowledge document about this function for your reference.

Change standard price after executing CKMM for materials.

Dear all,
I faced a problem: right after MM period switching, I execute CKMM to switch 2 to 3 for some materials and after taht I changed standard price for these materials by releasing future price.
After material ledger closing (T-code CKMLCP), there is non-zero balance on account for price differences in FI report FAGLL03. This non zero balance occurs just for the materials, which standard price was changed.
Could you please explain me why this happens?
Best regards,
Linh.

Hi Van,
The process follows: When Material Master in 3 (i.e) ML effect (when you release the std cost estimate "no Entry will post revaluation gain/loss" it will r evaluate @month end you do CKMLCP..with difference post to price difference.
Posting to re valuate inventory is non ML process.
Or can you test in testing server by changing std price with 3- no accounting doc will generate.
Let me you your response.
Regd,
Khan.

Material Ledger requirement

Hi,
Sap Masters,
In which circumsatances we can recomand client to implement Material Ledger.
Thanx for quick response.

Hello,
The material ledger has two objectives first parallel valuation and second actual valuation. The module seeks to overcome the shortcomings of the standard and moving average price systems and tries to valuate inventory at actual price which is called periodic unit price.
You can get some good idea from a blog posted by me on SDN.
/people/shaubhik.goswami2/blog/2010/12/03/valuation-alternatives--between-the-devil-and-the-deep-blue-sea
Kind Regards // Shaubhik

Delete/Archive Plant in production system

Hello All,
As per the Client Bussiness requirement, could anyone explain me how can i delete the plant code in production system.
as far as i know, i need to:
close down all purchasing documents
check the inventory
deassign the Pur Org, storage locations ETC.
it would be great if i get all the Standard steps suggest by SAP.
regards
prasad

Hello Venkat,
As per the standard business functionality it is not advisable to delete the plant completely in database system.
Because you had lot of master data under plant creation ( E.g. - Material master , Physical inventory data, material document (GR/GI data) etc ) ..
So, If you are delete the plant code completely there is no past records for that existing master records.
So, It is advisable to do change the plant code name as " DO NOT USE - NAME (OR) BLOCKED - NAME ) in beginning plant name (SPRO settings) ..
For these plant code changes to Do Not use -prerequisite checking are
1. There is Nill stock in MB52 -Stock Avl.
2. MB5L Valuated inventory on GL ( Nill inventory valuated )
3. "MB5T In-transit inventory " There is no stock in transit movement and stocks
After checking these above pre-requisite please following this below step for plant deletion..
1. "OX10 Add ""DO NOT USE"" at the beginning of the plant name."
2. "OX17 Delete plant assignment to purchasing org"
3. "OVX6 Delete plant assignment to sales org"
4. "OMS2 Remove Qty/value updating by material type "
Hereafter your plant is completely deleted in your database..Without affecting any existing functionality in business process.
Hope it would be useful..
With Regards,
Thiru

Valuation Inventory

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