Parallel Accounting in Materials Management 

Use

In Materials Management, you can apply various balance sheet valuation procedures for different accounting principles. The difference between the current stock value and the stock value determined during valuation with one of the balance sheet valuation procedures is issued in a report. On the basis of this, you can manually post the differences to additional accounts or parallel ledgers.

Due to price changes, postings cannot be made automatically to additional accounts or parallel ledgers.

If you want postings to be made automatically to additional accounts or parallel ledges, you can use the alternative valuation run.

Features

·        Balance Sheet Valuation

Within a posting period, the material valuation is determined by price control for the material. For balance sheet valuation, the system determines prices on the basis of various valuation procedures and writes the prices in the material master to the tax-based or commercial price fields or to the fields of the valuation alternatives.

·        Inventory Costing

If you use standard costing, you can use inventory costing as an additional valuation method for the balance sheet valuation of your self-constructed products. Separate inventory costings - based on the key date - are created for the different accounting principles. In the material master, the results of inventory costing are written to the tax-based or commercial price fields.

·        Alternative Valuation Run

If you use actual costing, you can also use the alternative valuation run as the valuation method for the balance sheet valuation of your self-constructed products.

In actual costing, the material valuation during the period is based on a period price in the material ledger. Key date-related alternative valuation runs are created for the balance sheet valuation. The basis for the alternative valuation runs are the actual quantity flows that can be revalued. The alternative valuation run determines the difference between the current valuation of the materials and the valuation of the alternative valuation run. The difference is posted to an adjustment account as a delta, and is reversed in the closing posting for the material ledger in the next period. You can transfer the results of alternative valuation runs to Financial Accounting.

You can perform different alternative valuation runs for parallel accounting. You can post the results of the alternative valuation runs to additional accounts or parallel ledgers.