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4/10/2015 MaterialLedger+ActualCosting(PUP)|SCN
http://scn.sap.com/community/epm/accountingandfinancialclose/blog/2013/01/07/materialledgeractualcostingpup
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1.MaterialLedger+ActualCosting(PUP)
1.1PeriodicUnitPriceDuringthePeriodDuringtheperiodalltransactionsarevaluedatstandardcostasapreliminaryvaluationSAPcollectsallvaluationrelevanttransactiondatainthematerialledgerforaperiodPriceDifferencesExchangeratedifferencesProductionvariances
Differencesfromthepreliminaryvaluationpricearepostedtopricedifferenceaccounts1.2PeriodicUnitPriceMonthend:SinglelevelPricedeterminationSAPcalculatesthePUPbasedonthesumofthepricedifferences,exchangeratedifferencesandproductionvariancesinrelationtothecumulativeinventoryquantityandvalueWeightedaveragecostisusedtodeterminePUPPUPupdatedinMaterialMaster(statistical)Novariancesarerolledtothenextproductionlevel1.3PeriodicUnitPriceMonthend:SinglelevelPricedeterminationOnlymovementscollectedinthematerialLedgerforreceiptsandotherinward/outwardmovementswilleffectthePUPConsumptionhasnoeffectontheprice1.4PeriodicUnitPriceMonthend:MultilevelPricedeterminationAnactualquantitystructure(BOM)iscreatedforallmaterialswithinaplantbasedongoodsmovementsVariancesassociatedwithconsumptionoflowerlevelmaterialsarerolleduptothehigherlevelsofthisactualstructure2.Scenario
2.1ReceiptandinvoicingofrawmaterialFinishedProductFP01createdfromsingleRawMaterialRM01.PricevariancesonreceiptofinvoiceforRM01.ProductionOrderutiliseshalfofRM01stockandincurslotsizevariances.AllFP01soldinperiod.RM01Std@$10/ton
MaterialLedger+ActualCosting(PUP)PostedbyFernandoAlmeidainAccountingandFinancialCloseonJan7,20133:45:20PM
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4/10/2015 MaterialLedger+ActualCosting(PUP)|SCN
http://scn.sap.com/community/epm/accountingandfinancialclose/blog/2013/01/07/materialledgeractualcostingpup
2/4
FP01Std@$20/ton
2.2ProductionOrdercostingandsettlementRM01Std@$10/tonFP01Std@$20/ton
2.3SaleoffinishedmaterialRM01Std@$10/tonFP01Std@$20/ton
2.4PuPcalculationandposting
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4/10/2015 MaterialLedger+ActualCosting(PUP)|SCN
http://scn.sap.com/community/epm/accountingandfinancialclose/blog/2013/01/07/materialledgeractualcostingpup
3/4
2.5PeriodicValuationRM01Std@$10/tonPUP@$15/tonFP01Std@$20/tonPUP@$30/tonSales@$40/ton
3.Analysis StandardPrice MovingAverage
Features
AllinventorypostingsarecarriedoutatthestandardpriceVariancesarepostedtopricedifferenceaccountsPricechangescanbemonitored
Goodsreceiptsarepostedatthegoodsreceiptvalue.MaterialpricereflecttheactualpriceincurredPricedifferencesdonotoccurexceptinrarecircumstances
Pros
EnsuresconsistentcostmanagementoftheproductionprocessandmakesvarianceswithinproductiontransparentCanbeusedasbenchmarktocomparethecontributionmarginsofamaterialindifferentmarketsegmentsinProfitabilityAnalysis
Variancesoccurringbothformaterialsproducedinhouseaswellasmaterialsprocuredexternallycauseanupdateinthematerialpriceandthematerialstockvalue
Cons
Doesnotreflecttheactualcostsincurredduringtheperiod.Thiscanleadtoinexactvaluationpricesformaterialswhoseprocurementpriceschangeagreatdealoveraperiod,orwhosemethodofproductionchangeswithinaperiod.
Thisproblemincreasesinmultilevelproductionwitheachnewproductionstep.Thismeansthatthecostsforthe
PriceusedtovaluateamaterialconsumptionisalmostcompletelydependentonthetimeatwhichthegoodsissueispostedinthesystemNoconsistentcostmanagementofproductionprocess.Theeffectofchangesintheproductionprocess,forexample,arenotrecognizableinthefinishedproduct,andcomparingresultsfromdifferentareasinProfitabilityAnalysisis
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4/10/2015 MaterialLedger+ActualCosting(PUP)|SCN
http://scn.sap.com/community/epm/accountingandfinancialclose/blog/2013/01/07/materialledgeractualcostingpup
4/4
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finishedproductmaynotreflectthemostrecentdata.Thematerialstockvaluedoesnotreflectthecurrentprocurementcosts,asvariancesfromthestandardpricearecollectedinapricedifferenceaccountinFinancialAccountinganddonotleadtoacorrectionofthematerialstockaccount.Thevariancescollectedinthepricedifferenceaccountcannolongerbeassignedtotheindividualmaterial.
notreallymeaningfulduetolackofabenchmark
Anymistakeenteringdatacancauseimmediateandunwantedchangesinthematerialprice.Anygoodsissuespostedfollowingthiserrorwillbevaluatedimmediatelywiththisincorrectmaterialprice
6699Views Tags:material,cost,ledger,ml
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7Comments
Like(1)
ThummalapentaSudhakarraoJan24,20134:47PM
Verygoodexplanationregardingpricingofmaterials
Like(0)
VenkatEmaniMay6,20133:23AM
Excellentexplanation!!
Like(0)
DevendraMohanMay6,20137:31AM
Wonderfulexplanationofpricingofmaterialsinfulllengthandaveryappropriateexplanation
Like(0)
TrinathGujariJan13,20142:26PM
greatjobinformativedocument
Like(0)
SadeghEbnoddinOct23,20143:01PM
thankyoudear
Fernandothisisaveryclearandinformativedocument.ireallyenjoyed.goodlockinyourjob
Like(0)
IralaDamodarareddyDec3,20148:48AM
Greatprovidedwithclearsteps.
Like(0)
Julie(PHANTHITHUHUONG)Apr6,20158:30AM
Nicedocument...
