Valuation procedure

hi
in price valuation there is 2 types one is standard and another is moving average
moving average price represents a current delivered price
. i understand this one but,
the standard price is based on planned values and not actual values. i cant understand this one
pl explain
thanks and regards
prasanthi

dear prasanthi
pleas go through the below link , this will clear your all dobuts..
http://help.sap.com/erp2005_ehp_03/helpdata/EN/47/60ff4849f011d1894c0000e829fbbd/frameset.htm
http://help.sap.com/erp2005_ehp_03/helpdata/EN/47/60ff4849f011d1894c0000e829fbbd/frameset.htm
Reward points if helpful
thanks and regards
ravikant dewangan

Similar Messages

Valuation Procedure to calculate Fair Market Value

Hi Treasury Experts,
In the Treasury Hedge Management component we are looking for a valuation procedure which can handle the calculation of the Fair Market Value of the financial transactions in line with the standard FAS133 accounting standard.
We have financial contracts that run over several months. From the contract start date to contract valuation date we need to value based on comparing the spot rate of the transaction against the close rate applicable at valuation date. We can use the Price Valuation Procedure for Forward Exchange Transaction with step 3000 (Rate Valuation Spot/Spot Hedge Accounting) to calculate this piece of the Fair Value.
We also need to include in the calculation of the Fair Value a component from the valuation date to the contract maturity date. This piece of the valuation is based on an interpolation of the interest rates over the remaining days of the contract (from valuation date to maturity date).
Can you advise if there is a valuation step or perhaps number of valuation steps that can be used to calculate the Fair Value of a financial contract in line with this requirement? That is to value the contract from inception date to valuation date based on comparing the PV at spot versus the PV at close rate and then to value the contract from valuation date to contract maturity date based on the PV by the interpolated interest rates over the remaining days of the contract?
Thanks for your advice.
Mik

See what other similar ones are selling for:
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Balance Sheet Valuation Procedures

Dear Experts,
In IMG Setting for :-
Balance Sheet Valuation Procedures -> Configure LIFO/FIFO Method -> General Informaiton -> Activate LIFO/FIFO Valuation (Tcode: OMW4) "LIFO Valuation Active" and "FIFO Valuation Active" button are SELECTED, what does this mean? Balance sheet valuation is based on which valuation? Please advise.
Thank you.

Hi ,
What you are looking at is first level of definition. There are further levels of control on mvt.types etc.
By default FIFO will be the valuation procedure , but you can set this to different based on requirement.
If you activate only FIFO or LIFO at first level you are left with no choice for further levels.
You may have to consult FI person on how FIFO/LIFO procedure is linked to balance sheet...
Thanks,
sudhakar

Split valuation procedure

Hi
can any one explain the split valuation procedure...
regards
sesidhar

Hi gollu,
Please find process for Split valuation
Valuation category is used if you want to have a split valuation i.e. you have an option of differentiating partial stocks of material according to particular criteria & handling them differently regarding valuation within a plant.
Why Required? : 1)Your valuation of in-house & external procurement may be different
2) Distinguish based on Quality so value
3)Different batches have different value
Valuation category could be In House/External , Indian / Imported
Following configuration reqd.
1)In global setting we have to define Valuation category( Say P-Procurement) & Valuation type( Int. / Ext)
2) Active split valuation in MM
3) Assign valuation type to category in customizing
5) In Material Master enter valuation category in accounting view & choose price control V
6) Extend Material Master view for both valuation type
7) valuation category to be active /assign for plant
8) In local definition Define Valuation category to Valuation area.
Then for every transaction (Valuation relevant) may be GR, GI, and Phy. Inventory you must mention valuation type during transaction to get your material valuated separately.
This is all about split valuation configuration.
Vivek

Valuation mode in sampling procedure

Dear all,
I have a doubt that if we ll give valuation parameters as Attributive inspection while creating sampling scheme and we can assign the same sampling scheme in ths sampling procedure. But in the sampling procedure if we choose valuation mode as Manual valuation means what will happen?
My question is while we are performing usage decision,
On what basis system ll perform usage decision, whether it based on manual valuation or attributive inspection.
Kindly clear my doubt.
Regards
Karthik

Hi,
An attributive inspection (OK or not OK) is an acceptance sampling inspection. This means that the number of nonconforming units or the number of defects in a sample determines the acceptability of the inspection lot. ISO 2859 serves as a standard for attributive inspections. The Quality Management component has two valuation procedures for attributive inspections:
Attributive inspection based on nonconforming units
Attributive inspection based on the number of defects
For an attributive inspection, you determine the number of defects or the number of nonconforming units per sample size. Depending on the recording form, you either enter the results or the system determines these results from the single values.
The inspection result is compared with the acceptance number and the rejection number for the characteristic in question. The inspection characteristic is accepted if the number of defects or the number of nonconforming units does not exceed the acceptance number. The characteristic is rejected when the rejection number is reached or exceeded. If the result falls between the acceptance number and the rejection number, the characteristic is accepted (but rejected for the dynamic modification valuation).
An attributive valuation is also possible when the rejection number is reached with a smaller sample size or when the acceptance number is not exceeded with a larger sample size. In all other situations, you must use the sample size defined in the sampling plan.
-Keerthi

FAGL_FC_VAL - Valuation isnu00B4t working

Hi there,
I´m running the Foreign Valuation Currency report (t code FAGL_FC_VAL), but noted that there are some missing open item documents that don´t appear in the report. They exist, because I can see them in FBL1N, but not in the report.
Besides, there is some vendor invoices that don´t suffer Revalidation in foreign currency. Valuation difference and amount posted are zero. Could you help me why this problem is occurring?
Thanks in advance.

Hi,
You can only evaluate open items that not evaluated on the same valuation key date.
Valuation difference and amount posted are zero
It is depending on what valuation are that you have provided in FAGL_FC_VAL. Because Valuation Area connected to Valuation method where valuation procedure is configured. (TCode S_AL0_19000081)
GAAP (lowest value principle): only loss is accounted, not the gain. It means if there is foreign currency gain for the open item, then Valuation difference and amount posted are zero.
ISA (Always valuate): both loss and gain are accounted. If you want to valuate open items irrespective of whether there is gain or loss, you have to choose valuation area that connected to such valuation method. (Tcode - S_AL0_19000080)
Thanks,
Sukhbold

Forex valuation

Dear friends & experts,
I am new to the forum and appreciate that you guys can help me on the forex valuation issue.
I wonder whether there is a foreign currency valuation procedure (besides SAPF100) which can generate valuation postings for line item display.
I did the F.06 but didn't success.
Appreciate if u can advise me on what option to be clicks and what fields to be filled for transaction F.06.
Thank you.
-ZUKI-

Hi Zuki,
Following are the fields to be filled in F.06
1. Company code
2. Evaluation Key Date
3. Valuation Methods: SAP provides various valuation methods: BSK, EVR and KTO
4. Valuation in curr.type : 10 Or or valuation area SA
5. Check : Create Postings
6. Batch input session name - Code identifying the batch session that is created Example: FCV0620021
7. Document date Date the transaction occurred Example: 310702
8. Posting date - Date that the business transaction occurred Example: 310702
9. Posting period Fiscal month when the transaction posts to the General Ledger Example: 7
10. Reversal posting date Date when you want to post a reverse. Normally the 1st day of next month Example: 010802
11. Reverse post. period Posting period for reversal Example: 08
Now you need to select the accounts you want to valuate. Click <tab button> Selections .
1 Click Valuate vendor open items .
2.Click Valuate customer open items Button .
 You can select only particular vendor / customer accounts to be valuated. If you leave the selection fields empty (like in our example), all the accounts will be selected for valuation.
Click Execute Button to perform valuation. Note that the system does not create the postings immediately but creates a batch input session instead.
Press Back Button .
To post the valuation, you need to process the Batch Input Session that youve just created. You can open another SAP session.
From the main menu choose System  Services  Batch input  Sessions
Regards,
Hemachandra K S
Please, donot forget to mark the answer as Helpful, Very Helpful or Problem solved.

Material valuation IFRS

Hello experts,
We are working on an ECC 6.0 implementation for IAS/IFRS. Therefore, it is necessary to have two accounting ledgers (IFRS ledger and Legal ledger for the country - Chile) in order to support two different kind of material valuation (one of the ledger must have a special valuation procedure for material).
Is it possible to manage a parallel valuation of material without material ledger?
Thanks in advance for your help
Regards,
Ricardo

Hi Swaninathan , I to do the material revluation using the inflation accounting, The legal requirement is as below, can you please have a look at it and tell me if it is possible to achieve with the standard program. I am Using J1AX and J1AZ and it doens seem to be working according to the requirement.
We have to inventory revaluation using this standard functionality, we don't need to change any values in the Material master , just have to post it into tax ledger for the reporting purpose.No material Ledger.
I have three business scenarios
1. Domestic inventory from second half of calendar Year
Calculation: need to find the Highest value from invoice, contract or agreement document and do the following calculation
          so for example
Product         PO date                  PO Price
Material A     04-22-2012            $ 500
Material A     04-22-2012            $ 480
Material A     04-22-2012            $ 495
Data in the MM
Product         Units   Standard Price (CLP)          Inventory Total
Material A     100    485                       48.500
Adjust                                                1.500
Total            100    500                       50.000
just calculate the inflation using the inflation index . so just 1500 will go into tax ledger
2. Domestic inventory from first half of calendar Year
Product         PO date                  PO Price
Material A     04-22-2012       $ 500
Material A     04-22-2012       $ 480
Material A     04-22-2012       $ 495
Product                        Units Standard      Price (CLP)          Inventory Total
Material A                    100                   485                       48.500
Adjust                                                                              1.500
Total                           100                   500                       50.000
Infl.Adjust (1,8%-2011)                          509                            50.900
1500(difference from total value)+900(inflation) will go into tax ledger
SO Adjust the inventory according to the Total value of that material and take the difference and post into tax ledger. Is it Possible with the standard functionality of inventory revaluation using J1AX and J1AZ? ? Please let me know if this is possible
3. Domestic inventory from previous year calendar Year
- calculation based on last years inflation.
Please let me know if this is possible.
Thanks & Regards
Saurav.

Freign curency valuation

To Comply the accounting standards the foreign exchange valuation is caried out on year end date.
For ExampleMy company code currency is INR, and a Export sale was made on 1st nov 2007 in terms of USD say 1000 USD,wherin the conversion rate was Say 39.50 INR. In Sundry debtors Books of accounts says sundry debtors balance with 1000 USD and Equivalent INR will be 39500.
on the Year end date say 31st December the sundry debtors is still exists for 1000 USD and say conversion rate will be Rs40.00.
Hence in books of accounts my Sundry debtors should be 40000/- ( Since my reporting date is 31.12.2007). Hence I transfer Rs 500/- to Foreign Exchange revaluation Gain/Loss account as Gain and Increase my Debtors to 40000/- in INR.
there will not be any change USD figures. And on 1st of January I reverse the entry.
the document is reversal means that 500 rs will also be reversal on 1st january
plz clear
regards
supriya thodimela

Hi
Are you asking whether your statements below are correct?
If so, then it is perfectly right. You will increase the receivables by Rs.500 as on 31st Dec 07 based on foreign currency. However please note that you have used Valuation Method which uses the valuation procedure "Always valuate". Normally in India, we do not recognize unrealised exchange gains. We go by lowest value principle wherein we recognize unrealised exchange losses only (not gains). Please check the valuation procedure
S Jayaram

Reset of foreign currency valuation

Hi FI-experts
By mistake the foreign currency valuation program was executed. Does anbody know if there is a program that can reset the foreign currency run?
Or is there a manual work around?
Any help is appreciated.
Best regards,
Marco

Hi
It depends whether you have checked the box "Bal. sheet preparation valuation".
If you didn't select that option, you can just manually reverse all documents by "F.80".
If that option is selected, you have to manually reverse all documents by "F.80", and run another valuation method which has the valuation procedure in "RESET" (OB59) to remove posted FX difference amount in each valuated journal entry.
Regards,

Configuration for Foriegn currency Valuation

Hi,
I currently work with blueprint and need help to understand one function in transaction code OB59. I can choose one of two fields:
"Determine rate type from account balance"
or
"Exch. rate type from invoice reference"
I have read the two explanations when pressing F1, but I'am not sure I quite understand the function of the two fields.
Does it simply mean that the exchange rate difference is calculated based on the account balance or based on the invoice reference?
Thanks for an answer.
Naja

Hi Naja,
In this you will be determining the currency exchange rate valuation for debit and credit balances for specific document types. Based on the requirement from the client you determine if it has to standard, intrastate or any specific.
Also you have fields related to valuation procedure based on requirement.
Also go through the below link which would provide more information about transaction OB59.
http://help.sap.com/erp2005_ehp_04/helpdata/EN/96/8b333943ce11d189ee0000e81ddfac/content.htm
Do let me know for any clarification.
Thanks
madhu

Different security valuation based on listed or not on exchange

Dear All,
I was wandering if it is possible to make a differentiation on security valuation for the same valuation area:
- In case the bond is listed ==> valuation at "market price"
- In case the bond is not listed ==> valuation at "valued at cost"
kind regards,
Stef

Hi,
In order to have a different valuation procedure, you need to basically have a different position management procedure for the two different bonds. So to get that you have two options, I could think of. How does your business deal with this? Do they have different securities account for listed and different securities account for non listed securities. In case yes, then you can assign different position management procedures at the level of security account groups. In case the differentiation level should be securities account group.
If not then you can use portfolio as a factor and then have a different PMP for your portfolio. Needless to say for this the differentiation level should be portfolio. Else a simpler method would be to have another product type and assign the corresponding PMP to that product type. Have 1 for listed bonds and have another for un-listed bonds.
Regards,
Ravi

FIFO Valuation w/o ML

Hi
Want to take the opinion of experts on this...
1. If I want to have my stock valued on FIFO basis on Month end - Can it be done w/o ML?? ( As far as my understanding goes, it is possible)
If any one can throw a brief light on the process, it would be great... Does FIFO valuation run at month end, posts to FI books?? If yes, Whats the Accounting entry and which keys in OBYC I need to maintain
2. I would need ML only if I want values of the stock as well as consumption based on FIFO on real time basis.... Is this assumption correct??
3. In the 1 above, I think it can give only stock balances based on FIFO.... But not consumption values.... Am I right??
4. If at all I want to derive Consumption values based on FIFO w/o ML - I have a work around in mind.. Just wanted to take opinon on the same
a. Activate Purchase Based Accounting - it would post to P&L also along with Stock a/c.
b. Do FIFO run and it would post to the stock accounts.
c. If we calculate (by way of ABAP report): Op Stock based on FIFO + Purchase account mentioned in 4.a - Cl Stock Value based on FIFO run - This should also give us the Consumption based on FIFO....
br, Ajay M

Hi Ajay,
just focussing on your point 1.
"1. If I want to have my stock valued on FIFO basis on Month end - Can it be done w/o ML?? ( As far as my understanding goes, it is possible)
If any one can throw a brief light on the process, it would be great... Does FIFO valuation run at month end, posts to FI books?? If yes, Whats the Accounting entry and which keys in OBYC I need to maintain?"
YES, FIFO valuation can be done at period end w/o ML.
The process can look like that:
Customizing: Materials Management / Valuation and account assignment / Balance sheet valuation procedures / configure LIFO / FIFO Methods.
Go through the steps in "general information", most of them are self-explaining, the interesting thing is the "define LIFO/FIFO relevant movement types", which might be different from client to client (maybe they have own defined movement types,...).
Also "define LIFO/FIFO methods" is interesting because of the difference of calculating FIFO values based on "single receipts" or not. The difference is well explained in the SAP docu, generally I found the SAP docu for FIFO helpful when I first set up this process on a client system.
Overall, FIFO customizing is not a big thing...
The process itself is like:
Executing MRF4 (or schedule it as a periodically batch job which updates new material masters where the indicator is not set so far).
Using MRF3 to create the document extract (which contains all the necessary info to valuate your stock quantity).
At the end MRF1 to calculate the FIFO value. Here the push button "Tolerances" is interesting which allows client specific settings under which circumstances a FIFO value is calculated or replaced by an alternative value.
The result itself is NOT posted to accounting, but you can store the information in a price field in accounting 2 view in material master (example: tax price 2). And with this information you can use MRN0 to post the FIFO value if you want to. Here don't define a market price source, use tax price 2 as the only comparison price and if FIFO value is lower then the "actual" price in material master, you can create a price change posting based on the FIFO information.
Guess that answers the OBYC entries also.
Best regards, Christian

FIFO Valuation with Material Ledger !

Hi,
How do we accomplish FIFO Valuation using Material Ledger ?
We have activated the Material Ledger, with Single - Level Determination; Standard Price S. On execution of Single-Level Price Determination, we get the Periodic Unit Price -- which is the Weighted Average Price for the Receipts for the period involved.
I came across SAP Forums, which claim that Material Ledger is the FIFO Valuation on real-time basis. However, this doesn't seem to be true. The Goods Issued are assigned the Periodic Unit Price (calculated above -- i.e the Weighted Average Price ).
In addition, we have Configured the FIFO Balance Sheet Valuation Procedure, through the MM menu. The FIFO Value for the Material is giving weird results. Adding the total Inventory for all the Receipts till date and over-riding the period selection for Single Receipts. For monthly receipts, the system just gives the Weighted Average Price again.
The Business is expecting the FIFO valution for the Inventory Balance on Monthly Basis. ( We are using Material Ledger, so that we can roll-up this FIFO Valuation of the Raw Material ito Gross up into the Finished Product
-- Thanks

Hi Kenny ,
BASIC STEPS THAT CAN BE FOLLOWED FOR ENDING INVENTORY VALUATION :
Ending Inventory is valued as per FIFO calculated through following steps:
     Run the price calculation (Txn: KSII) u2013 check that all      auxiliary Cost centers are zero
     Run Txn:MRF3 (summarization of documents for the      FIFO calculation.)
     Run MRF1 (calculation of FIFO)
     Check if the FIFO calc. is correct via MR35
After ML run the ending inventory value should be equal to the value in MR35 and so balance amount not yet loaded to ending inventory through FIFO valuation is posted to consumption
Exception: If total receipts for a period is less than ending inventory quantity .In this case the EI is valued at weighted average
Please check wether the steps have been properly followed and the execption doesnot exists..
Also, hope your Price Determination is "3" and price control is "S" in Material Master..
Regards
Sarada

FX Spot Valuation

Hi Experts,
I need to valuate a fx spot transaction with M (Standard translation at average rate). The configuration that I have for key date valuation for product type (60A) is as follows:
Define Price Valuation Procedure for Forward Exchange Transactions
1000 (Rate Valuation Spot/Spot)
NPV Type: 002
Write Up Rule: Write up to Market Value
Write Down Rule: Write Down to Market Value
Rate Type Spot Pur.:       M
Rate Type Spot Sale       M
Rate Type Swap Purch M
Rate Type Swap Sale    M
For Define Position Management Procedure:
Position Management Category: Forex Transactions
Transfer Cat: Only Post to Used Components
Type of Step: 6
Procedure: 1000
Flag "Carry Out for Key Date Valuation"
In Assign Update Types for Valuation:
Tab "One Step: Overall write-down"
- Adjustment Write-Down, Forex V102
- Forex Write-Down V103
Tab "One Step: Overall write-up"
- Forex Write-Up V152
- Adjust Forex Write-Up V153
Tab "Foreign crcy valuation"
- Forex Write-Up V202
- Forex Write-Down V203
- Write-Up for Costs, Forex 206
- Write-Down for Costs, Forex V207
- Variation Margin Forex Write-Up V210
- Variation Margin Forex Write-Down V211
- Clear Forex Write-Up V252
- Clear Forex Write-Down V253
- Clear Write-Up for Costs, Forex V256
- Clear Write-Down for Costs, Forex V257
All update types flagged as relavant for posting.
when buying/selling a currency the system is configured to post the transaction the following way:
Example:
TX01 / TX-5 / TBB1
Im buying 1.000.000 EUR @ 1.5 USD
40 - EUR Bank: 1.000.000 EUR
50 - Clearing Account: 1.000.000 EUR
40 - Clearing Account: 1.600.000 USD
50 - USD Bank: 1.600.000 USD
If Exchange Rate Type "M" for EUR is 1.6 I need to post a profit for the difference between (1.6 - 1.5)* 1.000.000= 100.000
But when valuating with TPM1 nothing happens, and no message is displayed.
Thanks for the help in advance!
Best Regards,
Santiago

Hi Manish, regarding the Derived Business Transactions configuration is as follows:
In Assign Update Types for Derived Business Transactions, selection the correspondant Pos Management Procedure.
Under Dialog Structure "Rate Gains/Losses":
                                      Unsched.            Sched Outflows
Exchange Rate Gain    DBT_B005           DBT_B006
Exchange Rate Loss   DBT_B007           DBT_B008
Rate Gain (Standard) DBT_B013
Rate Loss (Standard) DBT_B014
or should I configure valuation??
FX Write-Up of Amort. Acqu. Value ???? (what update type)
FX Write-Down of Amort. Acqu. Value ???? (what update type)
Control of Processing of Derived Business Transactions
Acct Code XXXX / Offline / Same Status / 04 (Other Reasons)
All update type marked relevant for posting.
Need anything else?
When executing TPM27
ACC      /        VA    /        TRL Date   /   BT Cat / Name of business transaction category / Der BT´s
1002     001          11.01.2010     4000     Open OTC transaction
1002     001          11.01.2010     4001     Close OTC transaction
1002     001          11.01.2010     4002     Purchase OTC transaction
1002     001           11.01.2010     4003     Sell OTC transaction
Then in the TPM18
with TRL Date: 11/01/2010
and the following message appears: "No Scheduled derived business transactions were found for the selection"
Thanks in advence for the help

Valuation procedure

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