Batch Valuation of Configurable Materials

Use

In SAP Mill Products , you can put away products whose production cost changes depending on the configuration or production process, and with different valuations with or without reference to a sales order. This is an especially important function for configurable materials.However, you can also use this function to produce non-configurable materials if recipes or routings need to be changed frequently and you want to use the same material number for the changing production costs for inventory valuation or Controlling.

Prerequisites

  1. Activate make-to-stock production for configurable materials with individual batch valuation for one or more valuation categories. You do this in Customizing for Materials Management by choosing Start of the navigation path Valuation and Account Assignment Next navigation step Split Valuation. End of the navigation path

    1. In the Customizing activity Activate Split Valuation , activate split material valuation for your company.

    2. In the Customizing activity Configure Split Valuation , define the valuation categories for individual batch valuation and assign the Autom.VTy indicator to the valuation categories so that a valuation record is created automatically for each batch upon goods receipt. Activate the valuation categories you have created for the respective plants.

    3. In the Customizing activity Define Valuation Categories for MTS with Configurable Materials , enter all the valuation categories for which you want to execute make-to-stock production with individual batch valuation.

  2. Enter the valuation category you are using for MTS with individual batch valuation in the master records of all the materials you want to be produced according to this procedure. You make the assignment on the Costing 2 or Accounting 1 views of the corresponding material master.

Features

If you produce materials with changing production costs for stock and activate individual batch valuation, goods receipts from production orders are valuated at individual batch level.

The preliminary order cost estimate is used for valuation. You can carry out material valuation at several levels of the production hierarchy. Before the last preliminary cost estimate, you must assign batch numbers to all the components that you want to be valuated for single batches. This way, the component costs that actually arise can be considered in preliminary costing. At goods receipt, the system transfers the materials with the same material number to the warehouse, but with a value that reflects both the individual characteristics of the product as well as the production process.

The system determines the value at the time of the first goods receipt of a valuation type for a production order cost estimate and uses this price for further goods receipts and cancellations. This batch price remains unchanged even if there is a stock transfer from plant to plant or storage location to storage location. If there is a stock transfer between plants with a stock transport order, the system valuates the material in the receiving plant using the purchase order price.

You can use a report to display an overview of production orders for materials that are valuated in single batches.

Note Note

The characteristic value assignments in the sales order cost estimate can be different than those in the material valuation and production order cost estimate. You therefore cannot access the batch valuation in profitability analysis until period-end closing has been carried out in the material ledger, thus determining the actual costing.

The standard costs of the configurable material may have been determined on the basis of different conditions than those in the production order. That is why plan/actual comparisons for valuating the batches in the production order are not possible.

There is no report for checking if the production order cost estimate is based on the most current valuation of the assigned batches or if it reflects an older status of the valuation.

End of the note.

Activities

  1. You create a production order for a material to which you have assigned a valuation category for make-to-stock production of configurable materials.

    The system displays the system statuses MT01 and MT02 in the production order.

    • If status MT01 is active, you have not yet assigned the relevant batches to all components.

    • If status MT02 is active, errors have occurred during preliminary costing.Either preliminary costing has not yet been carried out, it contained errors, or could not be correct due to a missing batch assignment (MT01).

  2. Before the last production order cost estimate, assign the relevant batch numbers to all components in the component view.

  3. You execute the production order cost estimate. Statuses MT01 and MT02 should no longer be active.

  4. You enter the goods receipt. The system creates a specific valuation type for the production order and valuates the new batch/valuation type with the price determined in preliminary costing and not with the standard price.