EHP5 for SAP ERP
6.0
September 2011
English
Inventory Valuation for
Year-End Closing (182)
Business Process Documentation
SAP AG
Dietmar-Hopp-Allee 16
69190 Walldorf
Germany
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
Copyright
© 2010 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the
express permission of SAP AG. The information contained herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components
of other software vendors.
Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.
IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z,
System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390,
OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+,
POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System
Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA,
AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of
IBM Corporation.
Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.
Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of
Adobe Systems Incorporated in the United States and/or other countries.
Oracle is a registered trademark of Oracle Corporation.
UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.
Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or
registered trademarks of Citrix Systems, Inc.
HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C ®, World Wide Web
Consortium, Massachusetts Institute of Technology.
Java is a registered trademark of Sun Microsystems, Inc.
JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented
and implemented by Netscape.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, Clear Enterprise, SAP BusinessObjects
Explorer, and other SAP products and services mentioned herein as well as their respective logos are
trademarks or registered trademarks of SAP AG in Germany and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions,
Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as
their respective logos are trademarks or registered trademarks of SAP France in the United States and in
other countries.
All other product and service names mentioned are the trademarks of their respective companies. Data
contained in this document serves informational purposes only. National product specifications may vary.
These materials are subject to change without notice. These materials are provided by SAP AG and its
affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of
any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only
warranties for SAP Group products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as
constituting an additional warranty.
© SAP AG
Page 2 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
Icons
Icon
Meaning
Caution
Example
Note
Recommendation
Syntax
External Process
Business Process Alternative/Decision Choice
Typographic Conventions
Type Style
Description
Example text
Words or characters that appear on the screen. These include field
names, screen titles, pushbuttons as well as menu names, paths and
options.
Cross-references to other documentation.
Example text
Emphasized words or phrases in body text, titles of graphics and tables.
EXAMPLE TEXT
Names of elements in the system. These include report names,
program names, transaction codes, table names, and individual key
words of a programming language, when surrounded by body text, for
example, SELECT and INCLUDE.
Example text
Screen output. This includes file and directory names and their paths,
messages, source code, names of variables and parameters as well as
names of installation, upgrade and database tools.
EXAMPLE TEXT
Keys on the keyboard, for example, function keys (such as F2) or the
ENTER key.
Example text
Exact user entry. These are words or characters that you enter in the
system exactly as they appear in the documentation.
<Example text>
Variable user entry. Pointed brackets indicate that you replace these
words and characters with appropriate entries.
© SAP AG
Page 3 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
Contents
1
Purpose ............................................................................................................................ 5
2
Prerequisites .................................................................................................................... 5
2.1
Master Data ............................................................................................................................ 5
2.2
Business Conditions ............................................................................................................... 7
2.3
Roles ...................................................................................................................................... 7
2.4
Preliminary Steps ................................................................................................................... 8
2.4.1
Setting Controlling Area .................................................................................................. 8
3
Process Overview Table .................................................................................................. 9
4
Process Steps ................................................................................................................ 11
4.1
Stock Valuation for Raw Materials and Trading Goods ....................................................... 11
4.1.1
Procurement of Raw Materials and Trading Goods ..................................................... 11
4.1.2
Determination of Lowest Value for Raw Materials and Trading Goods on the Basis
of Market Prices ........................................................................................................... 12
4.2
Stock Valuation of Semifinished and Finished Products – Determination of Lowest
Value Using Inventory Costing ............................................................................................ 14
4.2.1
Copying Inventory to Controlling Version ..................................................................... 15
4.2.2
Posting Book Depreciation ........................................................................................... 17
4.2.3
Revaluation: Set Old Posted Values Depreciation to Zero ........................................... 18
4.2.4
Activity Price Planning - Plan Activity Based on Capacity (optional) ............................ 19
4.2.5
Activity Price Planning - Plan Reconciliation ................................................................ 21
4.2.6
Activity Price Planning - Change to Calculate Rates Based on Capacity (optional) .... 22
4.2.7
Activity Price Planning - Plan Price Calculation ............................................................ 23
4.2.8
Inventory Costing .......................................................................................................... 24
4.2.9
Price Update – Marking ................................................................................................ 25
4.3
Analyzing Stock Valuation for Materials using Price Comparison for Each Material Stock
Account/Material Type/Material ........................................................................................... 26
4.4
Stock Value Adjustment ....................................................................................................... 28
5
Appendix ........................................................................................................................ 30
5.1
Reversal of Process Steps ................................................................................................... 30
© SAP AG
Page 4 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
Inventory Valuation for Year-End Closing
1 Purpose
This document outlines the process of inventory valuation at the end of the fiscal year. It
provides end users with an example process description, which they can use as a template for
their own valuation processes.
The Business Process Documentation includes the following process steps:

Review of the Inventory General Ledger Accounts and their related price
difference/Production Variance accounts

Calculation of the adjustment to the IFRS valuation.

Manual inventory value adjustment posting in the financial accounting component
These Business Process documents can be used by all companies running an SAP ERP system
that integrates the Materials Management (MM), Production Planning (PP), Financial Accounting
(FI), and Controlling (CO) components.
Inventory valuation is carried out in accordance with IFRS, which states that the inventory must
be valued at the lower of cost or net realizable value. The cost comprises all costs of purchase,
costs of conversion and other costs in bringing the inventories to their present location and
condition.
2
Prerequisites
2.1 Master Data
You have entered the master data required to go through the procedural steps of this scenario.
Ensure that the following scenario-specific master data exists before you run this scenario:
Master data
Selection
Comment
Material master
Purchased and
Manufactured materials.
For example materials
with material type
FERT/HALB/ROH/VERP
/HAWA
No specific materials
necessary, but
transaction data must be
available.
Production master
Data – BOM, Work
center, routing
For all FERT and HALB
data that is used for
costing with quantity
structure
No specific
BOMs/Routings are
necessary but they must
have been used in the
manufacture of
semi/finished products.
General Ledger
Inventory accounts
Inventory Accounts for
each of the different
types of inventory held.
For Example:
130000 Raw materials 1
130010 Raw materials 2
130100 Operating
supplies
© SAP AG
Value
Page 5 of 30
SAP Best Practices
Master data
Inventory Valuation for Year-End Closing (182): BPD
Value
Selection
Comment
130100 Operating
supplies 2
133000 Spare parts
130110 Packaging
materials
133010 Trading goods
132010 Semifinished
product
132000 Finished
products
General Ledger
Inventory accounts
Inventory Value
Adjustment accounts for
each of the different
types of inventory held.:
130001 Raw materials 1
130011 Raw materials 2
130101 Operating
supplies
130101 Operating
supplies 2
133001 Spare parts
130111 Packaging and
empties
133011 Trading goods
132011 Semifinished
product
132001 Finished
products
General Ledger Price
Difference accounts
PPV or Production
Variance Accounts for
each of the different
types of inventory held:
500200 Raw Materials 1
- PPV
500210 Raw Materials 2
- PPV
500220 Operating
Supplies - PPV
500230 Operating
Supplies 2 - PPV
500240 Packaging and
Empties - PPV
500340 Finished
Products - Prod Var
500330 Semifinished
Product - Prod Var
500250 Spare Parts PPV
500260 Trading Goods PPV
© SAP AG
Page 6 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
2.2 Business Conditions
The business process described in this Business Process Documentation is part of a bigger
chain of integrated business processes or scenarios. Therefore you must have completed the
following processes and fulfilled the following business conditions before you can start running
this scenario:
Business condition
Scenario
Before you can run this scenario, you must have
completed the following scenarios:

Procurement to stock (130)

Make-to-Stock Production – Discrete Industry
(145) (for material F126)
or/and

Repetitive Manufacturing (149) (for material
S21)
or/and

Make-to-Stock Production – Discrete
Industry (145) (for material F126)
Make-to-Stock Production – Process Industry
(146) (for material F29)
or/and

Procurement-to-Stock (130)
Make-to-Stock – Process Industry (146)
Make-to-Stock Production – Process
Industry (146) (for material F29)
Repetitive Manufacturing (149) (for
material S21)
Make-to-Stock – Process Industry (146)
2.3 Roles
Use
To run this scenario in the SAP NetWeaver Business Client (NWBC), the following roles must
already be installed. The roles in this Business Process Documentation must be assigned to the
user or users running this scenario. You only need these roles if you are using the NWBC
interface. You do not need these roles if you are using the standard SAP GUI.
Prerequisites
The business roles have been assigned to the user who is running this scenario.
Business role
Technical name
Process step
Employee
(Professional
User)
SAP_NBPR_EMPLOYEE_S
Assignment of this role is
necessary for basic functionality.
Warehouse
Manager
SAP_NBPR_WAREHOUSEMANAG
ER_M
Determination of lowest value
© SAP AG
Page 7 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
Business role
Technical name
Process step
Warehouse
Manager
SAP_NBPR_WAREHOUSEMANAG
ER_M
Analyze stock valuation
Enterprise
Controller
SAP_NBPR_CONTROLLER_M
Copy inventory to CO-version
Enterprise
Controller
SAP_NBPR_CONTROLLER_M
Post book depreciation
Enterprise
Controller
SAP_NBPR_CONTROLLER_M
Revaluation
Enterprise
Controller
SAP_NBPR_CONTROLLER_M
Activity price planning capacity
(optional)
Enterprise
Controller
SAP_NBPR_CONTROLLER_M
Plan reconciliation
Enterprise
Controller
SAP_NBPR_CONTROLLER_M
Change rate base to capacity
(optional)
Enterprise
Controller
SAP_NBPR_CONTROLLER_M
Plan price calculation
Product Cost
Controller
SAP_NBPR_PRDCOST_CONTRLR
_S
Costing (cost estimate)
Product Cost
Controller
SAP_NBPR_PRDCOST_CONTRLR
_S
Price update
General Ledger
Accountant
SAP_NBPR_FINACC_S
Post stock revaluation
2.4
Preliminary Steps
First, check if purchase requisitions are available in transaction MD04. If no purchase
requisitions are available, perform the following steps:
-
In case of material planned by reorder point planning:
MRP does not create purchase requisitions if the available quantity is bigger than the
reorder point. In this case, reduce the stock of that material with MIGO and movement
type 562.
-
In case of material planned by MRP type PD (MRP):
MRP does not create purchase requisitions if the available quantity is larger than the
current requirements. In this case, create planned independent requirements with MD61.
You need to complete the settings and configurations that are necessary for a standard cost
estimate. For an example, refer to the Product Cost Planning (169) scenario.
2.4.1
Setting Controlling Area
Use
The controlling area is to be set before you carry out the first steps in controlling.
If the controlling area is already assigned in the user parameters (see the Quick
Guide), this step is no longer necessary and can be omitted.
© SAP AG
Page 8 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Accounting  Controlling Cost Element Accounting 
Environment  Set Controlling Area
Transaction code
OKKS
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
Enterprise Controller
(SAP_NBPR_CONTROLLER_M)
Business role menu
Overhead Cost Controlling  Planning  Planning
Preparation  Set Controlling Area
2. On the Set Controlling Area screen, in the field of Controlling area, enter 1000, and then
choose Save (F5) your entry as a user parameter.
3
Process Overview Table
Process step
External
process
reference
Stock Valuation
for Raw Materials
and Packaging
Materials:
Procurement of
Raw Materials
and Packaging
Materials
See 130 Procurement
of Stock
Material
Business
role
Transaction
code
Expected
results
See 130 Procurement
of Stock
Material
See 130 Procurement of
Stock Material
Valuated
Material
movements
Stock Valuation
for Raw
Materials,
packaging
materials and
trading goods :
Determination of
Lowest possible
Value on the
Basis of Market
Prices
Warehouse
Manager
MRN0
lowest value
has been
updated in the
material
master
records
Stock Valuation
of Semifinished
and Finished
Products: Copy
Inventory
Controlling
Version
Enterprise
Controller
KP98
planned
values in CO
version 003
Stock Valuation
of Semifinished
and Finished
Enterprise
Controller
S_ALR_87099918
planned
values for
taxbalance
© SAP AG
Business
condition
Page 9 of 30
SAP Best Practices
Process step
Inventory Valuation for Year-End Closing (182): BPD
External
process
reference
Business
condition
Business
role
Transaction
code
Products: Post
book
depreciation
Expected
results
depreciation in
CO Version
003
Stock Valuation
of Semifinished
and Finished
Products:
Revaluation - set
old posted values
depreciation to
zero
Enterprise
Controller
Stock Valuation
of Semifinished
and Finished
Products:
Activity Price
Planning - Plan
Activity Based on
Capacity
Enterprise
Controller
Stock Valuation
of Semifinished
and Finished
Products:
Activity
PricePplanning Plan
Reconciliation
Enterprise
Controller
KPSI
activity type
reconciliation
in Version 003
Stock Valuation
of Semifinished
and Finished
Products:
Activity Price
Planning Change to
Calculate Rates
Based on
Capacity
(Optional)
Enterprise
Controller
KP26
activity type
planning
based on
capacity in
Version 003
Stock Valuation
of Semifinished
and Finished
Products:
Activity Price
Planning – Plan
Price Calculation
Enterprise
Controller
KSPI
calculated
activity prices
in Version 003
Inventory Costing
Product
Cost
Controller
CK11N
value for
material as
result of cost
estimate
Price Update –
Marking
Product
Cost
Controller
CK24
price update
in material
master
© SAP AG
KP90
planned
values for
costaccounting
depreciation
are zero
KP26
capacity for
activity type in
Version 003
Page 10 of 30
SAP Best Practices
Process step
Inventory Valuation for Year-End Closing (182): BPD
Business
role
Transaction
code
Analyzing Stock
Valuation for
Materials Using
Price
Comparison for
Each Material
Stock
Account/Material
Type/Material
Warehouse
Manager
MRN9
Stock Value
Adjustment
General
Ledger
Accountant
FB50, FB50L
4
External
process
reference
Business
condition
Expected
results
value posted
in accounting
Process Steps
4.1 Stock Valuation for Raw Materials and Trading
Goods
Use
To perform a material valuation for balance sheet purposes using the lowest value principle,
physical inventory prices are required. These prices are used to calculate the value for balance
sheet valuation. This scenario describes the procedures for lowest value determination on the
basis of market prices. The system determines a costing result that can differ from the costs of
goods manufactured. This value is updated in the material master to determine the lowest value.
The system compares the costing result with the current price in accordance with price control
and the price from the previous period. The lowest value is then updated in the commercial price.
Legal inventory requirements (German GAAP):
In Germany, it is not allowed to sell goods below their purchase price. Therefore, the
sales price is irrelevant for the valuation of purchased goods.
Prerequisites

Materials of material type ROH, HAWA

Stocks

Posted receipts and issues
To carry out the business processes in this scenario, the materials that should be considered
must be available and assigned to the storage locations.
4.1.1
Procurement of Raw Materials and Trading Goods
Use
In a business, inventory is calculated at the end of a fiscal year. During the fiscal year, materials
have been procured. The purchasing process can take place with several characteristics. The
© SAP AG
Page 11 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
following description will focus on purchasing prices and price-dependencies, regardless of the
logistical characteristics.
This step is not a prerequisite for inventory calculation, but provides the transaction data that is
relevant for this process.
Process
Reference to Procurement without QM (130) scenario
You can do the physical inventory beforehand, but, it is not needed as a prerequisite for doing
the inventory calculation. Normally, the physical inventory is a step in the year-end procedure
and is done before the valuation process for the year-end.
Process
Reference to Physical Inventory / Inventory Count & Adjustment (137) scenario
4.1.2
Determination of Lowest Value for Raw Materials and
Trading Goods on the Basis of Market Prices
Use
The lowest value based on market prices should be determined. The system searches for the
lowest price (or alternatively the most recent price) among the various prices stored for each
material.
The determination can be done at material level or based on other selections, for example the
material type used. This process steps is based on material types.
Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Logistics  Materials Management  Valuation  Balance Sheet
Valuation  Determination of Lowest Value  Market Prices
Transaction code
MRN0
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
Warehouse Manager
(SAP_NBPR_WAREHOUSEMANAGER_M)
Business role menu
Warehouse Management  Balance Sheet Valuation  Deter.
Lowest Value: Market Prices
2. On the Determine Lowest Value: Market Prices screen, enter the following values:
Field name
Company
Code
© SAP AG
Description
User action and values
Comment
1000
Page 12 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
Key Date
Period end
Plant
1000
Material Type
ROH, HAWA
3. In the Price Comparison group box, choose Market Price.
4. On the Overview tab page in the Select the Required Price Sources dialog box, assign the
ranking to the comparison prices:
Checkbox Description
Checkbox User action
Field Ranking Value
Receipt Prices
Select
2
Order Prices
Select
1
Sched.agmt prices
Select
3
Contract prices
Select
5
Info record prices
Select
4
Standard prices
Deselect
This ranking is an example and has to be adjusted to the specific customer needs.
5. On the Receipts tab page in the Select the Required Price Sources dialog box, enter the
following data:
Field name
Description
User action and values
Comment
Receipt prices
Select
Analyzed prices
for example, 1
Posting date from
Any date
for example, <current
date>
Posting date to
Any date
for example, end of
current month
Strategy
A Lowest Price of Receipts
in Time Interval
Ex.rate Comp.
A Document Exchange
Rate
6. On the POs, Contracts, Sched. Agmts screen, under Info Records tab pages in the Select
the Required Price Sources dialog box, adjust the purchase order date in the same way as
the posting date on the Receipts tab page. The strategy and the exchange rate comparison
are also defined in the same way as on the Receipts tab page.
7. Exit the dialog box by choosing Continue (Enter) and go back to the selection screen.
8. In the Price Comparison group box, choose Comparison Price.
9. In the Select a Comparison Price dialog box, select Lowest Val. Comparison. Below this box,
specify the prices that the system will compare in order to determine the lowest value. Select
the following:

Current Material Price

Current Standard Price

Current MAP
10. Confirm your entries and exit the dialog box by choosing Continue (Enter).
© SAP AG
Page 13 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
11. In the Update Material Master group box, select Database Update.
Two additional pushbuttons appear on the selection screen: Change Material Prices
and Update Prices.
12. To copy the lowest value to an inventory price field, choose Update Prices.
13. In the Update Prices – Select. dialog box, select Commercial Price 1. Confirm your entry by
choosing Continue (Enter).
14. Choose Execute (F8) to determine the lowest value.
The system displays a warning saying you that you have not entered a material
number interval. If you have large volumes of material master data, you should enter
a material number interval.
The system outputs an evaluation for each material. This evaluation specifies the
price that is used as the comparison price and shows whether a new price was
determined for the valuation.
15. Open a second session by choosing Create a New Session or System  Create Session.
16. Call up transaction MM03 Display Material and enter a material number from the lowest
value determination overview. Select the Accounting 1 and Accounting 2 views and enter
plant 1000.
17. Check the price according to price control and the commercial inventory price 1. Then
compare the values with the lowest value determination log.
18. Choose Exit.
Result
The Commercial Price 1 field in materials master records has been updated with the lowest
value (material types ROH and HAWA).
4.2 Stock Valuation of Semifinished and Finished
Products – Determination of Lowest Value Using
Inventory Costing
Use
Based on the commercial prices of the material components and the adjusted prices of the
activity types considering several valuation approaches, the system determines a costing result
that differs from the costs of goods manufactured. This calculated value is updated in the
material master in the procedure for determining the lowest value.
Stock valuation of semifinished and finished products can only be done with
production. If production is not activated, this step cannot be executed.
This inventory costing might produce a value that is smaller than the released cost of goods
manufactured estimate. In this case, you can carry out the stock valuation on the basis of the
new calculated inventory costs.
Prerequisites
© SAP AG
Page 14 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD

Costing variant for inventory costing

Actual cost-accounting depreciation for the production cost center exists

The Commercial Price 1 in the material master records of purchased materials (raw
materials and trading goods) contains the lowest value (see process step before:
Determination of Lowest Value for Raw Materials and Trading Goods on the Basis of
Market Prices)

Adjusting/Planning activity prices for each cost center
The activity types for the machine hours that are used in the work centers to calculate
the costs of goods manufactured can contain different depreciation cost for assets for
local accounting. Costing for activity prices should include the expenses for
depreciations of machines that are directly assigned to the work center.
If the expenses for depreciations included in the price cost estimate differ greatly, the
prices should be calculated in accordance with local legislation in plan version 3 Plan
Version Local Valuation.
In the following steps, you maintain prices for activity types in plan version 3. This
process does not involve a complete price calculation with transfer of the depreciation
values to plan version 3.
The process of the activity price calculation is also described in the Manufacturing Cost
Center Planning (176) scenario
Reference to Manufacturing Cost Center Planning (176) scenario
The following steps are preliminary steps for reaching the activity price in consideration of the
local requirements for valuation.
4.2.1
Copying Inventory to Controlling Version
Use
The current actual controlling version data is copied to the controlling version, which is used for
inventory calculation. In further steps, postings need to be adjusted to legal regulations.
Prerequisites
The controlling-plan version 3 (local valuation) exists and actual postings for the valuation period
has been done.
Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Accounting  Controlling  Cost Center Accounting  Planning
 Planning Aids  Copy  Copy Actual to Plan
Transaction code
KP98
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
© SAP AG
Enterprise Controller
Page 15 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
(SAP_NBPR_CONTROLLER_M)
Business role menu
Overhead Cost Controlling  Planning  Planning: Cost Centers
 Copy Actual to Plan
If the dialog box Set Planner Profile appears, enter SAPALL in the field of Planner
Profile.
2. On the Copy Actual to Plan screen, enter the following data:
Field Name
Description
Controlling
Area
User Actions and values
Comment
1000
Target Cost Centers
Cost centers
Select for example 1301,
1302
Or the cost center
group that is
necessary for all cost
centers with
allocations. If there
are distribution and/or
assessment planned
to be done, copy all
cost centers that are
involved in these
allocation
Template Actual
Period
1-12
Fiscal Year
<current year>
Target (Plan)
Version
003
Period
1-12
Fiscal Year
<current year>
Version used for
inventory calculation
Actual Data
Select Actual
Data
select
Structure
w/values
select
Select „Primary
Costs“ in „Actual
data” screen.
Processing options
Reset and
overwrite
select
Test Run
Deselect
Detail List
Select
Select in test mode if
no postings should be
done
Execute
© SAP AG
Page 16 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
Result
The planning report can be checked with transaction KSBL.
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Accounting  Controlling  Cost Center Accounting  Information
System  Planning Reports  Cost Centers: Planning Overview
Transaction code
KSBL
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
Enterprise Controller
(SAP_NBPR_CONTROLLER_M)
Business role menu
4.2.2
Overhead Cost Controlling  Reporting  Cost Centers  Cost
Centers: Planning overview
Posting Book Depreciation
Use
Book depreciation is posted to cost center accounting with controlling version used for inventory
calculation.
Prerequisites
The Asset Accounting is in use and a special depreciation area for the book depreciation on
planned cost centers is active.
Also, an asset master record with the link to a production cost center must exist.
For demo data refer to Prerequisite Process Steps (154) scenario
Or
Run the processes in the Create Assets (155.02) scenario, using our master data.
Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Accounting  Controlling  Cost Center Accounting  Planning
 Planning Aids  Transfers  Depreciation/Interest FI-AA
Transaction code
S_ALR_87099918
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
Enterprise Controller
(SAP_NBPR_CONTROLLER_M)
Business role menu
© SAP AG
Overhead Cost Controlling  Planning  Planning: Cost Centers
 Primary Cost Planning: Depreciation/Interest
Page 17 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
1. On the Primary Cost Planning: Depreciation/Interest screen, enter the following data:
Field Name
Description
User Actions and values
Comment
1000
Company
Code
Settings
01
Depreciation
area
For Book Balance
Planning periods
Period
1-12
Fiscal Year
current year
Further settings for planning
Plan Version
003
Version used for
inventory calculation
50000
Exclude these asset
classes.
Select More  Edit  All Selections
Asset
Classes
Select Multiple
Selection  Exclude
Single Values Tab
79000
89000
95000
95010
95020
Click Copy
Test run
deselect
Execute
Result
Planned book depreciations under the depreciation area are posted to a cost center under a
costing element.
Example
Here the depreciation is booked under the cost element 920500 to the cost center 1301.
4.2.3
Revaluation: Set Old Posted Values Depreciation to
Zero
Use
If you transfer the tax-based depreciations to the inventory version of cost center accounting, you
need to delete the costing-based depreciations in this version.
Prerequisites
Costing-based depreciations have been booked for the corresponding fiscal year.
© SAP AG
Page 18 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Accounting  Controlling  Cost Center Accounting  Planning
 Planning Aids  Delete  Planned Costs
Transaction code
KP90
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
Enterprise Controller
(SAP_NBPR_CONTROLLER_M)
Business role menu
Overhead Cost Controlling  Planning  Planning: Cost Centers
 Delete Planned Costs
2. On the “Delete Planned Costs” Screen, enter the following data:
Field Name
Description
User Actions and values
Version
003
Fiscal Year
<current year>
Comment
Restrictions
Cost element
920100-920400
Cost elements that
are assigned for
costing based
depreciation
Processing option
Test run
deselect
Execute
Result
The actual posted cost accounting depreciations are deleted. The planning version 003 contains
only costs for the tax depreciation assigned to the production cost center.
4.2.4 Activity Price Planning - Plan Activity Based on Capacity
(optional)
Use
In this activity, you will plan activities rates based on capacity.
This step is needed for manufactured materials. In this case activity types are
included in product costing. Finished goods should be checked at year end for
correct valuation and this includes the use of activity type rates based on actual
figures.
Optional step – if capacity of cost centers is to be adopted
© SAP AG
Page 19 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
Prerequisite

CO Version 3 is maintained

The actual data of the current year are copied as plan data into CO version 3
Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Accounting  Controlling  Cost Center Accounting  Planning 
Activity/Output prices  Change
Transaction code
KP26
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
Enterprise Controller
(SAP_NBPR_CONTROLLER_M)
Business role menu
Overhead Cost Controlling  Planning  Planning: Cost Centers
 Change Activity Type/Price Planning
2. On the Change Activity Type/Price Planning - Initial Screen, make the following entries:
Field name
Description
User action and values
Version
3
From period
1
To period
12
Fiscal year
<current year>
Cost Center
Group
1000
Activity Type
Group
YBMF_P01_AT
Form-based
X
Comment
Activity types used for
manufacturing
3. Choose Overview.
4. Enter the number of hours calculated based on capacity in Capacity column.
5. The Plan Activity column must be zero or a contingency amount to adjust scheduled
quantity.
If a third quantity is needed in the business, it can be entered in the Plan Activity
column. In this case, the step Plan Reconciliation should not be executed as this will
add scheduled quantity to the planned quantity.
6. Equivalent number must be 1 for activity 1 and blank for the others.
7. Choose Save.
Result
The capacity is updated in the cost center.
© SAP AG
Page 20 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
To generate a report, use transaction code S_ALR_87013647.
4.2.5 Activity Price Planning - Plan Reconciliation
Use
In this activity, you will plan reconciliation.
Prerequisites
The activity requirements have been transferred from LTP or other production planning
scenarios to cost center accounting.
For the process of transfer refer to Manufacturing Cost Center Planning (176)
scenario, perform step “Transfer Planned Activity Requirements for Production”.
Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Accounting  Controlling  Cost Center Accounting  Planning 
Planning Aids  Plan Reconciliation
Transaction code
KPSI
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
Enterprise Controller
(SAP_NBPR_CONTROLLER_M)
Business role menu
Overhead Cost Controlling  Planning  Planning: Cost Centers
 Execute Plan Reconciliation
2. On the Execute Plan Reconciliation - Initial Screen, make the following entries:
Field name
Description
User action and values
Cost Center
group
1000
Version
003
From period
1
To period
12
Fiscal year
<current year>
Detail lists
<Select>
Test Run
<Select as needed>
Comment
CO planning version
3. Choose Execute.
Result
The scheduled activity is added to plan activity and updated as plan in the cost center.
© SAP AG
Page 21 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
To generate a report, use transaction code KSBL.
The planned activity from the cost center (usually 0) is shown as well as the new
plan activity.
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Accounting  Controlling  Cost Center Accounting  Information
System  Planning Reports  Cost Centers: Planning Overview
Transaction code
KSBL
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
Enterprise Controller
(SAP_NBPR_CONTROLLER_M)
Business role menu
4.2.6
Overhead Cost Controlling  Reporting  Cost Centers  Cost
Centers: Planning overview
Activity Price Planning - Change to Calculate Rates
Based on Capacity (optional)
Use
In the normal flow of business, activity rates will be calculated based on planned activity. If your
business wants to calculate activity rates based on capacity, execute this step.
Prerequisites
To execute this activity, go to transaction KL02  Basic Data tab  Allocation Default values,
and enter 2 in the Price indicator – Plan price, automatically based on activity field.
This is an optional step.
Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Accounting  Controlling  Cost Center Accounting  Planning 
Activity/Output prices  Change
Transaction code
KP26
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
Enterprise Controller
(SAP_NBPR_CONTROLLER_M)
Business role menu
Overhead Cost Controlling  Planning  Planning: Cost Centers
 Change Activity Type/Price Planning
2. On the Change Activity Type/Price Planning - Initial Screen, make the following entries:
© SAP AG
Page 22 of 30
SAP Best Practices
Field name
Inventory Valuation for Year-End Closing (182): BPD
Description
User action and values
Version
3
From period
1
To period
12
Fiscal year
<current year>
Cost Center
Group
1000
Activity Type
Group
YBMF_P01_AT
Form-based
X
Comment
3. Choose Overview.
4. Change planned price indicator column to 2 to calculate the rates based in the Capacity
column.
5. Choose Save.
Result
The plan is updated with the correct plan price indicator.
4.2.7 Activity Price Planning - Plan Price Calculation
Use
This activity is used for an automatic calculation of plan prices in inventory calculation version.
The basis for the rate calculation depends on the settings in the master data of the activity type.
Prerequisites
Case: “Step Activity Price Planning – Plan Activity Based on Capacity” is not executed: the plan
price will be calculated on the basis of the plan activity.
Case: “Step Activity Price Planning – Plan Activity Based on Capacity” is executed: the plan
price will be calculated on the basis of the capacity.
Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Accounting  Controlling  Cost Center Accounting  Planning 
Allocations  Price Calculation
Transaction code
KSPI
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
Enterprise Controller
(SAP_NBPR_CONTROLLER_M)
Business role menu
© SAP AG
Overhead Cost Controlling  Planning  Planning: Cost Centers 
Execute Plan Price Calculation
Page 23 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
2. On the Execute Plan Price Calculation – Initial Screen, make the following entries:
Field name
Description
User actions and values
Cost Center
Group
1000
Version
3
From period
1
To period
12
Fiscal year
<current year>
Test Run
x
Detail Lists
x
Comment
CO plan version
3. Choose Execute.
Result
The activity prices are calculated.
To generate a report, use transaction code KSBL.
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Accounting  Controlling  Cost Center Accounting  Information
System  Planning Reports  Cost Centers: Planning Overview
Transaction code
KSBL
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
Enterprise Controller
(SAP_NBPR_CONTROLLER_M)
Business role menu
4.2.8
Overhead Cost Controlling  Reporting  Cost Centers  Cost
Centers: Planning overview
Inventory Costing
Use
In this activity, you will execute the costing run.
Prerequisites
The single-level materials have been updated with the commercial price 1 in the material master.
The tariff in Version 3 is available.
Procedure
1. Access the transaction choosing one of the following options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Accounting  Controlling  Product Cost Controlling  Product
Cost Planning  Material Costing  Cost Estimate with Quantity
Structure  Create
Transaction code
CK11N
© SAP AG
Page 24 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
Product Cost Controller
(SAP_NBPR_PRDCOST_CONTRLR_S)
Business role menu
Product Cost Controlling  Product Cost Planning  Create
Material Cost Estimate with Quantity Structure
2. On the Costing Data tab page on the Create Material Cost Estimate with Quantity Structure
screen, enter the following values:
Field name
Description
User action and values
Comment
Material
Use a materials with type
HALB and FERT
Finished and semifinished products
Plant
1000
Costing
Variant
YB03
Costing
Version
1
Inventory valuation
variant
3. Choose the Dates tab page and enter the following data:
Costing Date from:
Period start
Costing Date to:
Period end
Qty Structure Date:
<date>
Valuation Date:
<date>
4. Confirm your entries by choosing Enter. The system begins the cost estimate automatically.
5. Check the values and compare the result with the prices in the material master (transaction
MM03 Display Material).
6. Save the inventory cost estimate.
Result
The saved inventory cost estimate can now be used to update the inventory price in the material
master.
4.2.9
Price Update – Marking
Use
The prices needed for year-end inventory valuations are updated in material master records.
Prerequisites
Cost estimate with the costing variant YB03 with the status “KA” exists.
Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
© SAP AG
Accounting  Controlling  Product Cost Controlling  Product
Page 25 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
Cost Planning  Material Costing  Price Update
Transaction code
CK24
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
Product Cost Controller
(SAP_NBPR_PRDCOST_CONTRLR_S)
Business role menu
Product Cost Controlling  Product Cost Planning  Price Update:
Mark Standard Price
2. On the Price Update: Mark Standard Price screen, choose Other Prices.
3. On the Price Update: Release Other Prices screen, make the following entries:
Field Name
Description
User Actions and values
Company Code
1000
Plant
1000
Material
Use all materials with type
HALB and FERT
Costing Variant
YB03
Costing Date
<date>
Costing Version
1
Comment
4. In the Update Prices in Material Master Record group box, set the Commercial Price 1
checkbox.
5. Choose Execute (F8) to carry out the update.
6. On the Price Update screen, the system provides a short log for the test run. The log
contains green traffic lights and the message Of 1 (or the number of materials that have
been selected) materials, 1 (or the number of materials that have been selected) cost
estimates were updated successful.
7. Choose Back until you get to the Price Update: Release Other Prices selection screen.
8. Use the same selection parameters as in the test run for the price release. Scroll down to the
bottom of the screen. Deselect the Test Run indicator in the Processing Options group box.
9. Update the prices in update mode and choose Back.
10. Call up transaction MM03 and check whether the prices have been updated in the material
master.
Result
The lowest value is determined in inventory costing when the prices are updated in the material
master record. The system compares the valuation price according to price control for the
current period or previous period with the costing result. If the valuation price is lower, this price
is updated, rather than the value determined in inventory costing, as the tax or commercial price.
Commercial price 1 has been updated in the Accounting 1 view in the material master.
4.3 Analyzing Stock Valuation for Materials using Price
Comparison for Each Material Stock
© SAP AG
Page 26 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
Account/Material Type/Material
Use
The process of analyzing the material prices supports the valuation adjustment posting. The
price comparison report supplies the current stock values and the lowest stock value at various
aggregation levels: material stock account, material type, and material. The difference between
the stock values can then be posted in FI as a stock value adjustment.
Prerequisites

Material valuation

Stocks

Evaluation by material stock account only in the case of system integration (account
determination) with FI

Physical inventory
Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Logistics  Materials Management  Valuation  Balance Sheet
Valuation  Results  Balance Sheet Value Per Account
Transaction code
MRN9
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
Warehouse Manager
(SAP_NBPR_WAREHOUSEMANAGER_M)
Business role menu
Warehouse Management  Balance Sheet Valuation  Balance
Sheet Values by Account
2. On the Balance Sheet Values by Account screen, enter the following parameters:
Field name
Description
User action and values
Company Code
1000
Key Date
End of the month in current
year
Plant
1000
© SAP AG
Comment
Page 27 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
The selection can be further restricted by material type or material number interval. If
you have large volumes of material master data, you should always further restrict
the selection.
If you do not restrict the selection by material/material type, the system outputs a
message when you execute the report, informing you that you have not made any
restrictions. In this example, you can confirm this message by choosing Enter.
Result
The report presents the balance sheet values for each account, subdivided into valuation areas
and material numbers, as follows:
Material/Description
Stock
Quantity
Stock
Value
Tax Value
Commercial
Value
Bal. Sheet
Value
For the stock value, the current material price according to price control is multiplied by the stock
quantity.
The tax value is calculated from the stock quantity, multiplied by the tax price or the current
material price.
The commercial value is calculated from the stock quantity, multiplied by the commercial price or
the current material price.
The balance sheet value is the lowest value of the stock, tax, and commercial values.
For a revaluation of products, it needs to be decided whether a value adjustment posting for
year-end closing is required. This decision has to be made for each material depending on the
material type.
4.4 Stock Value Adjustment
Use
To carry out the stock revaluation, you need to make a posting to the relevant stock adjustment
accounts. A stock value adjustment represents a balance sheet valuation. Therefore you should
not post it to the material stock accounts for updating the goods movements.
Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu
Accounting  Financial Accounting  General Ledger 
Document Entry  Enter G/L Account Document
Transaction code
FB50 or FB50L(for ledger group)
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role
General Ledger Accountant
(SAP_NBPR_FINACC_S)
Business role menu
© SAP AG
General Ledger  Posting  Posting  Post G/L Account
Document
Page 28 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
2. On the Enter G/L Account Document: Company Code 1000 screen, enter the following
values:
Field name
Description
User action and values
Comment
Document
Date
Period end
Posting Date
Period end
Currency
ZAR
Reference
Stock Valuation
Doc. Header
Text
Revaluation
Material types for
example: ROH,,
HAWA, HALB, FERT
G/L Acct
132001
Item 1
D/C
Credit
Item 1
Value
Value from stock value
comparison log
Item 1
G/L Acct
500540
Item 2
D/C
Debit
Item 2
Value
Value from stock value
comparison log
Item 2
Cost Center
1201
Item 2
3. Choose Simulate to display and check the document.
4. If the document does not contain any errors, choose Post.
This document is an example. Any other stock differences from the price comparison
report must be posted in the same way. The various material stock accounts can be
revaluated in a document.
If necessary, you can define a unique revaluation account for each material stock
account.
In the balance sheet structure, the stock revaluation accounts must be assigned to
the material stock account items. This ensures a complete view of the current stock
on the balance sheet key date.
Result
Revaluating stock in separate adjustment accounts is a simple way of keeping record of
revaluation postings and history. If MM and FI are fully integrated, it is usually not possible to
post to the material stock accounts manually. The aim of this is to separate posting procedures
in upstream components from standardizing entries and to ensure that system integration can be
checked from a technical perspective.
© SAP AG
Page 29 of 30
SAP Best Practices
Inventory Valuation for Year-End Closing (182): BPD
5 Appendix
5.1 Reversal of Process Steps
In the following table, you find the most common reversal steps, which you can take to reverse
some of the activities described in this document.
Determination of Lowest Value
Transaction code ( SAP GUI)
MRN0
Reversal:
N/A
Transaction code ( SAP GUI)
N/A
Business role
Warehouse Manager
(SAP_NBPR_WAREHOUSEMANAGER_M)
Business role menu
Warehouse Management  Balance Sheet Valuation 
Deter. Lowest Value: Market Prices
Comment
You can overwite the updated prices
© SAP AG
Page 30 of 30