CO PC ACT AlternativeValuationRun

7/22/2019 CO PC ACT AlternativeValuationRun

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Alternative

Valuation Run

New Development in R/3 Enterprisein Actual Costing



SAP AG 2001, Buchungen AVR, Udo Werner 2

Alternative Valuation Run (AVR) Concept

Reuses data collected in Periodic Actual Costing

Influencing Factors:

Material prices based on longer time periods : Cumulat ion

Parameters can be varied to calculate alternative results for actual

material costs: Alternat ive valuat ion

Multiple (alternative) runs are possible for each period andmaterial (999)




Advantages of using the AVR

Cumulat ion:

Smooth out seasonal or random changes

Full absorbance of cost center costs although output is zero in somemonths

Decrease influence of work in process, beginning, and ending inventory

Get an overview of how prices influence processes over a whole

business year

Alternat ive Valuat ion:

Support alternative valuation rules for stocks from IAS, US-GAAP, HGB,and so on.

Use activity prices that differ from the operational activity prices




Sequential Cumulations

Periods

1 2 3 4 5 6 7 8 9 10 11 12

Quarters

Fiscal Years

Cumulation:




Year-To-Date Cumulation (YTD)

Periods

1 2 3 4 5 6 7 8 9 10 11 12

Cumulation Runs




Cumulation of Periods

Instead of actual costs only being based on a single period (month),all price relevant transactions from a multitude of periods are

calculated together.

This process uses the:

Cumulated actual quantity structure

Cumulated single level differences from production or procurement

Cumulated activity prices Beginning inventory from the first period

Ending inventory from the last period

Cumulation Average of Periods!Example follows...


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Example: Average from Periods

Period 01Period 02$1000

90KG 10KG

$100$900

$100

10KG 90KG

$90$10

Product A

$19.10

$1100

100 KG 100 KG

$190$910

Product B

$11.90

Product A

$20Product B

$20Product A

$11Product B

$11

Period 1 + 2



Example: Cumulation

Period 01Period 02$1000

90KG 10KG

$100$900

$100

10KG 90KG

$90$10

Product A

$15.50

$ 1100

100 KG 100 KG

$550$550

Product B

$15.50

Product A

$20Product B

$20Product A

$11Product B

$11

Cumulated Calculation forPeriod 1 + 2



Alternative Valuation

Valuations can vary by run

For materials: Different split between valuation of ending inventory and consumption

Change ending inventory valuation and CCS using a BADI(ENDING_INVENTORY)

Use an external price for ending inventory, for example, FIFO price

determined in balance sheet valuation (Table CKMLPR_EB) Manual change of material price and cost component split

Manipulate cumulated data using a BADI (CKMLAVR_SIM)

For activities:

Different types of activity prices

Planned activity prices (CO version > 0)

Periodic actual activity prices (CO version = 0)

Cumulative actual activity prices



Run Definition

A run consists of

Definition:

A collection of parametersPlants taking part

Beginning and ending period

Settings

A name and a long text

Steps to complete all of the actual costing processes

Results Reporting and analysis

Postings: FI and cost centers

Use in CO-PA



Definition: Period Data



Definition: Plant Assignment



Definition: Settings



Run processing Steps

A run consists of

Definition:



Settings





Use in CO-PA



Processing Steps



Process Step: Determine Actual Prices

Without AVR:

The determination of actual activity prices in Cost Center Accounting(Transaction KSII) allows you to either calculate and store periodicor cumulated activity prices.

With Step „Determine Actual Prices“ in the AVR:

Cumulated actual activity prices can be stored additionally in theirown version. Actual data is used from version 0, but the results arewritten to an additional version.

Aim:

Periodic ML uses periodic activity prices, AVR uses cumulatedactivity prices



Process Step: Posting

The Determine Delta Postings and Post Closing steps are optionalsteps. They are only displayed if the run is defined as a ‚posting run‘

Postings can be previewed and controlled in the results part of thecockpit.

An explanation of the posting logic follows...




Preview Delta Postings

Posting entries can be previewed using the filter hierarchy




Run Results I

A run consists of

Definition:



Settings





Use in CO-PA




Results: Reporting

AVR runs are stored separately from periodic data. The followingreporting and analysis tools can be used for AVR in the same way as

for Periodic ML:

Price analysis on material level (CKM3)

Valuated quantity structure

Data extraction to BW

Value flow monitor

CKMLAVRPERD allows you to compare data from multiple periods withthe AVR data at procurement alternative level




Reporting: Price Analysis at Material Level (CKM3)




Reporting: Valuated Quantity Structure (Multilevel)




Run Results II

A run consists of

Definition:



Settings





Use in CO-PA




Results: Postings

Postings from AVR may include:

Delta stock account adjustments

Cost center credits from actual activity prices

Cost of single level consumption

The ‚posting run„ flag determines if the results can be used for

posting or not. This prevents double postings being made to sameaccount from different runs.

The flag can only be set once per ending period, plant, and accountmodification.

With Account Modification,alternative valuations can be posted

in parallel to different sets ofaccounts

Posting from AVR is optional, not mandatory!

SAP recommends posting from periodicactual costing!

with Accounting Principle, alternativevaluations can be posted in parallelto a Special Ledger




Delta Stock Account Postings

AVR results are compared, by material, with the current material valuation.

The difference is posted to a delta stock account with posting key BSD.The offsetting posting uses key UMD.

To keep the operative valuation separate, the BSD account must not equal theBSX account.

The posting is automatically reversed in next period in order to allow Year-to-Date-Cumulations.

Per material in AVR:

BSD = ( stock value AVR) – (stock value material master)

UMD = - BSD

Example:

AVR periods 1 – 12, ending stock: 100 pieces,Price $ 1.20

Periodic valuation period 12: 100 pieces, V-Price1.00 (from periodic revaluation)

Post ing:

BSD 20

UMD 20-

C C C f




Cost Center Credits from Actual Activity Prices

There are three alternatives for crediting cost centers:

No crediting of cost center

Crediting triggered by periodic material ledger with periodic actualactivity prices, not by AVR

Crediting triggered by AVR with cumulative actual activity prices

Makes sense if, for example, cost centers would not be cleared in some periodsdue to seasonal fluctuations.

Offsetting posting (crediting cost center activity type inCO)GBB / AUI

Lower level price differencesPRV

Posting date: Last day of ending period of AVR

In case of previous run, for example when using YTD:Previous cost center posting is reversed

S i ith C t C t P ti




Scenarios with Cost Center Postings

Customizing Activityupdate

Rate in AVRDef. Periodic ML AVR

2 Blank Uses periodic

a c tual rates Crediting CC

Actual valuation of periods will be recognized

in cum u lation No credit of CC 2 Actual Rate

Uses periodica c tual rates

Crediting CC Determination of cumulated actual activity

prices available Pickup of cumulated actual rate differences No credit of CC

1 Actual Rate + Flag 'credit CC'

Activity differences not used Determination of cumulated actual activity

prices is available

Pickup of cumulat ed actual rate differences CC Credited

R l ti f C ti




Revaluation of Consumption

Single-level consumption can be revaluated periodically, and can also beadjusted to the AVR price

Consumption value from AVR

Consumtion quantities are cumulated.Quantity x AVR price = consumption value

Periodic consumption value

Posting documents from revaluation ofconsumption are added together for therange of AVR Periods

AVR delta postings:

Consumption value from AVR – periodic consumption value – posted inprevious periods by AVR

Posting is made in same way as posting in periodic valuation: posting madeto original consumption account (and CO object)

E l P ti




Example Posting

Closing entry AVR January to September 2000

Posting date 30.09.2000 Credit cost center NSC1 100- GBB AUI

Price Diff. Lower levels 100 PRV

Finished Goods Inv. Delta 50 BSD

Revaluation Delta 50- UMD

Cost of sales 50 COGS

Price Diff. ML 50- PRY

Posting Date 01.10.2000Revaluation Delta 50 UMD

Finished Goods Inv. Delta 50- BSD

Closing entry cumulation January to December 2000

Posting date 31.12.2000 Credit cost center NSC1 100 GBB AUI <-reversal of former closingPrice Diff. Lower levels 100- PRV <-reversal of former closing Credit cost center NSC1 180- GBB AUI

Price Diff. Lower levels 180 PRV

Finished Goods Inv. Delta 90 BSD

Revaluation Delta 90- UMDCost of sales 40 COGS <-difference to former closing: 90 - 50*Price Diff. ML 40- PRY

Posting Date 01.01.2001Revaluation Delta 90 UMD

Finished Goods Inv. Delta 90- BSD

In January to September, 1000 pieces of a semifinished good“FG1” were produced. 1000 hrs of activity “ac1” in cost center“NSC1” were consumed. The preliminary (frozen) price of ac1was 1 EUR/h. For periods 1 - 9 in 2000, the total costs for

NSC1 were 1100 EUR and the total output was 1000 hrs of ac1.Therefore the actual activity price of ac1 is 1.1 EUR/hr

At 09.30.2000 the ending stock is 500, another 500 pieces weresold in January to September.

No other price differences occurred for FG1.

In the last quarter of the year,another 1000 pc wereproduced, again consuming1000 hrs of AC1. Thecumulated yearly costs forcost center NSC1 were 2180EUR, and the total output was

2000 hrs. The price for AC1 is1.09 EUR/hr. The endingstock is now 1000 Pc.

R R lt III




Run Results III

A run consists of

Definition:



Settings





Use in CO-PA

U i AVR i i CO PA




AVR values in Prof i tabi l i ty Analys is

Custom izable strategy to select AVR

Cost o f sales spl i t in to cost compon ents

Plan/Actual/AVR var iance analysis

Using AVR prices in CO-PA

Plan Ac tual (AVR) Var. % Var. Abs .

Revenues : 100,000 US$

Sales Quanti ty : 1,000 pc

50,000 45,000 5,000 10 %Raw Materials

4,000 5,000 -1,000 - 25 %Labor var iable

4,000 4,500 - 500 - 13 %Machine variable

10,000 7,000 3,000 30%Log ist ic Processes

5,000 5,500 - 500 - 10 %Material Overh eads

6,00027,000 33,000 22 %Contr ibut ion Margin I

10,000 10,000 0 0 %Labor f ixed

7,000 7,000 0 0 %Machine f ixed

10,000 16,000 6,000 60 %Contr ibut ion Margin II

S t CO PA R l ti




Setup CO-PA Revaluation

IMG:

- Controlling

- Product Cost Controlling

- Actual Costing/Material Ledger

- Actual Costing

- Set-up transfer of cost componentsplit to CO-PA

IMG:

- Controlling

- Profitability Analysis

- Master Data

- Valuation

- Set up valuation using materialcost estimate

- Define access to ActualCosting/Material Ledger

Summary



Summary

Features

AVR works as an add-on to Periodic Actual Costing

AVR can determine actual costs for a range of periods (cumulation)

You can choose between different valuations of stocks and activities

Results

AVR provides material prices, cost component splits, and actualquantity structures

Reporting in BW, CO-PC, and CO-PA

Valuation for stocks, consumption, and activity consumption can beposted to G/L accounts and cost centers

Documents

CO PC ACT AlternativeValuationRun