Time Base and Exposure to Inflation Variant (SAP Library

Time Base and Exposure to Inflation Variant

Definition

See Time Base and Exposure to Inflation Variant (TBE variant).

Use

In Chile, you have to define two TBE variants: one for domestic raw materials, and one for imported raw materials.

TBE Variant for Domestic Raw Materials

This TBE variant has to allow you to revaluate your domestic raw materials every six months using the index published for the fifth month (see Replacement Cost Valuation). The material prices (standard and moving average prices) are only to be updated at year-end.

Assuming that your fiscal year follows the calendar year, for example, you would revaluate your materials in June, using the index published for May, and in December, using the index for November. In December, you would also update the material prices (by setting the Post? indicator).

In that case, you would define a variant as follows:

TBE year	Until month	Until day	Post?	Until month	Until day	Prev. year?
9999	5	31		11	30	´
9999	6	30		5	31
9999	11	30		5	31
9999	12	31	´	11	30

TBE Variant for Imported Raw Materials

This TBE variant has to allow you to revaluate your imported raw materials every six months using the difference in the exchange rate between (a) the purchase date – or, in the case of materials on hand from previous periods, the last revaluation date – to (b) the current revaluation date. Again, the material prices are only to be updated at year-end.

Assuming again that your fiscal year follows the calendar year, for example, you would revaluate your materials in June, using the exchange rate published for 30 June, and in December, using the exchange rate for December. In December, you would also update the material prices.

In that case, you would define a variant as follows:

TBE year	Until month	Until day	Post?	Until month	Until day	Prev. year?
9999	5	31		12	31	´
9999	6	30		6	30
9999	11	30		6	30
9999	12	31	´	12	31