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Function documentation Replacement Cost Valuation Locate the document in its SAP Library structure

Use

In Chile, you use the standard functions for replacement cost valuation (see Structure linkReplacement Cost Valuation (Inflation)). However, you are required to valuate the replacement cost of your stock not on a monthly basis – which is the standard procedure – but at the end of every half year. Furthermore, you only post the changes to the materials' standard or moving average prices at year-end.

Features

You revaluate your materials as follows:

You revaluate domestic raw materials using the highest price in any invoices or contracts from the half year. If this price is lower than the price from the previous half year, however, the old price continues to apply.

If you do not have any relevant business documents, you revaluate the material using the inflation index issued for the penultimate month of the fiscal year.

You revaluate imported materials using the same procedure, but using the latest price given in invoices or contracts.

If there are no relevant business documents, you revaluate the materials using the change in the foreign exchange from the last revaluation date to the current revaluation date. This procedure differs slightly from the standard, where the change in the exchange rate is calculated to the last day of the period before the revaluation date.

Activities

See Replacement Cost Valuation.

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