07.06.2009 Page 1 of 5

SAP Note 533207 - Valuated and nonvaluated project stock

Note Language: English Version: 4 Validity: Valid Since 28.08.2002

Summary

Symptom

Differences of the valuated and nonvaluated project stock.

Topics:- Definition of valuated and nonvaluated project stock

- Advantages and disadvantages of valuated/nonvaluated project stock as adecision help

More Terms

Cause and Prerequisites

Solution

Valuated project stockProject stock for which each material in the stock is always managedquantity-based and value-based.Each material quantity is valuated withmonetary valuation.All goods movements for the project stock lead tocorresponding postings to G/L accounts in Accounting.

Nonvaluated project stockProject stock for which each material in the stock is only managedquantity-based and is not valuated with monetary valuation.For externalprocurement, the corresponding is entered as an expense in Accountingimmediately.Further goods movements for the project stock occur nonvaluatedand do not lead to corresponding postings in Accounting.You normallydetermine the value of the project stock summarized via the resultsanalysis at the end of the period and transfer the value to Accounting bymeans of the settlement of the accrued values.

Valuated project stock

Advantages:

- Immediate display of all goods movements in Accounting

- From the viewpoint of Accounting, the value flow corresponds tothe value flow for anonymous make-to-stock production.Thesystem automatically activates costs of the finished productsand semifinished products that are relevant to stock during thegoods receipt postings.Goods issue postings lead tocorresponding reductions in stock.

07.06.2009 Page 2 of 5

SAP Note 533207 - Valuated and nonvaluated project stock

- If price differences occur during the goods receipt or in theinvoice verification, they are reported for the WBS elementprovided that the respective general ledger account offinancial accounting has been actually created as a G/Laccount.

- Complete actual costs on all manufacturing levels

- Since goods withdrawals from the project stock lead to actualcosts on the order, the complete actual costs are issued oneach order. A deviation recording as for anonymousmake-to-stock production is possible.

- Separate valuation of the material

- Materials that are managed in the project stock are valuatedseparately.

- Cross-company-code withdrawals and cross-line withdrawals fororders of other projects are possible.

- Simple physical inventory management and stock revaluation, forexample, for balance sheet reasons.

- Separate determination of work in process on production orders

- The production orders for the valuated sales order stock areprocessed in the same way as the production orders of thenormal make-to-stock production that is, they are not takeninto account during the results analysis on the project.For theactivation of the costs qualifying for stock of the productionorder, you may have to trigger a separate WIPdetermination.This may not be required, for example, if allcosts on production orders are issued as goods in process inthe reconciliation ledger and can be posted to Accounting.

- Display of the funds tied in the project stock on the WBSelement as static actual costs (if desired - for this purpose,the G/L account must be created as a cost element (cost elementcategory 90)).

- Planned costs for material components managed as project stockon production orders and planned networks.

Disadvantages:

- Quantities and values cannot be separated

- As of Release 3.0 of the SAP R/3 System, you can use the salesorder stock in combination with the project (standard accountassignment category D in the sales order item).The quantitiesare managed in the non-valuated sales order stock here and thecosts on WBS elements.This scenario cannot be supported forvaluated sales order stock.

07.06.2009 Page 3 of 5

SAP Note 533207 - Valuated and nonvaluated project stock

- No complete actual costs from external procurement on theproject.

- In the case of valuated project stock and in-house production,high price differences occur in CO with unprecise pricemethods.The value-based stock is issued under a static costelement in CO.

Nonvaluated project stock

Advantages:

- Upward compatibility from viewpoint of Accounting with Releasesprior to 4.0A.

- Complete actual cost of goods manufactured on the projectbecause no price differences can occur and follow-up costs aredebited to the WBS element completely in the case of externalprocurement.

- Resource-related billing of projects with the display of thegoods receipt as an expense to be billed.

- Less line items relevant for billing because there are no COdocuments for the goods movements between project stock andproduction orders or networks.

Disadvantages:

- Incomplete actual costs on production orders or networkactivities.

- Since stock withdrawals of a customer-related material do notlead to a corresponding debit of the production order, theactual costs of the production order are not complete.During amulti-level production only those additional values added ofthe manufacturing level are issued on the respective productionorder that were caused by internal activities or materialwithdrawals from the anonymous stock.The material costs forsemifinished products are not taken into account.

- Complete actual costs only on the project

- The costs from external procurement are posted to the WBSelement that carries the stock during the goods receipt orinvoice receipt directly.The project is always debited with thecomplete actual production costs of the production orders.Youcannot make a standard price valuation for materials managed asprojet stock.During the settlement of the production orders, noprice difference postings occur.As a result, an expressive CostObject Controlling is only possible on the level of the WBSelements or of the overall project.

07.06.2009 Page 4 of 5

SAP Note 533207 - Valuated and nonvaluated project stock

- Incomplete planned costs for production orders and networks forplanning purposes.

- You only receive complete planned costs for network componentswith individual requirements control on planning networks.

- To determine the goods in process on the production ordersassigned to the project, you have to carry out the resultsanalysis for projects.

- No deviation recording possible on the production orders.

- During the results analysis, only a collective valuation ofdifferent materials managed in a project stock occurs.

- Complicated transfer posting of stocks because the price of anindividual material does not exist in the stock.The price forthe material must be determined manually and posted manually inCO.

- Cross-company-code processing requires manual corrections inAccounting.

Header Data

Release Status: Released for CustomerReleased on: 28.08.2002 08:13:03Original Lang.: GermanPriority: Recommendations/additional infoCategory: Consulting

Main Component: PS-MAT Material

The Note is release-independent

Related Notes

07.06.2009 Page 5 of 5

SAP Note 533207 - Valuated and nonvaluated project stock

Number Short Text

677169 FAQ 2: Material and Project System