Parallel Valuation Methods in Controlling

Use

Recording values based on differing accounting principles is not a classic requirement of Controlling (CO). CO normally reflects the leading valuation.

Features

Transfer from CO to FI

Allocations within CO frequently result in the relocation of costs or quantities between segments and functional areas. This information is required in Financial Accounting to ensure reporting by segment or to depict cost-of-sales accounting. The values of these allocations are transferred to Financial Accounting through the integration with CO. This means it is possible to post to parallel ledgers in addition to the leading ledger.

The Calculation of Work in Process and Results Analysis in CO are made, depending on the accounting principles, in accordance with different Valuation Methods. You can post the results either to additional accounts or in parallel ledgers.

Various methods are depicted in various parallel results analysis versions. You can Assign Accounting Principles in the posting rules to each results analysis version. If you want to post to additional accounts, you do not need to assign an accounting principle to the results analysis version. If you want to post to parallel ledgers, an accounting principle must be assigned to the results analysis version, and an appropriate ledger group assigned to this accounting principle.

Transfer from FI to CO

This varies in the individual solutions:

  • Portrayal Using Parallel Ledgers

    All of the values of the leading ledger relevant to CO are transferred. Postings that are only ever updated to parallel ledgers are not available in Controlling.

    Note Note

    If you include additional CO account assignments (such as cost centers) in the line items and totals records of a parallel ledger, you can implement a simplified Controlling directly using this parallel ledger. To do this, Allocation is available to you.

    End of the note.

  • Portrayal Using Additional Accounts

    In most cases, only the values from the accounts of the leading valuation of FI are transferred to CO. However, you can also transfer values from additional accounts to CO. You then have to take into account these additional accounts for all CO-internal allocations. As the Actual Price Determination always includes all accounts, it cannot be used.