Period-End Valuation for Deliveries with Differential Billing
When selling a commodity, the invoiced amount of a delivery item can vary up until the point when the final invoice is created. For example, the quality of a particular batch may fluctuate and therefore influence the price, or the underlying market price may change.
Period-end valuation provides you with a period-end accrual process for these delivery items.
Period-end valuation includes the following steps:
Creation of a Worklist
Verification of Valuation Results
Approval and Posting of Accrual Documents
Completeness Check
Period-End Valuation Process
On the sales side, the period-end valuation is performed using special billing documents for the period-end posting and period-end reset. The following table outlines the various billing types that are required:
Billing Type | Description | SD Document Category | Description | Document Category Extension | Description |
|---|---|---|---|---|---|
F2DM S1DM | PEV Posting Cancel PEV Posting | f f | Additional Billing Documents Additional Billing Documents | f001 f002 | Period-End Invoice Period-End Credit Memo |
G2DM S2DM | PEV Reset Cancel PEV Reset | f f | Additional Billing Documents Additional Billing Documents | f002 f001 | Period-End Credit Memo Period-End Invoice |
IVDM IVSM | PEV Posting ICB Cancel PEV Posting ICB | f f | Additional Billing Documents Additional Billing Documents | f003 f004 | Period-End Invoice (Intercompany Billing) Period-End Credit Memo (Intercompany Billing) |
IGDM IGSM | PEV Reset ICB Cancel PEV Reset ICB | f f | Additional Billing Documents Additional Billing Documents | f004 f003 | Period-End Credit Memo (Intercompany Billing) Period-End Invoice (Intercompany Billing) |
Prerequisites
You have made all of the required settings in Customizing for Sales and Distribution
under Period-End Valuation for Deliveries with Differential Billing
. Note the following:
Settings for Creating a Worklist
You have checked the Customizing activity
Adjust SD-Specific Index Relevance for Worklist
for registering relevant objects for the period-end valuation. One of the following prerequisites must be fulfilled for the system to be able to register a delivery item with goods issue as relevant for the period-end valuation:At least one document item must contain a pricing condition with a floating price.
The batch of the document item in question is not final, meaning its
usage decision
characteristic does not contain a value, based on material number, batch number, and plant. If this characteristic does not exist or does contain a value, no further changes will be made to the values, meaning the batch is final.
Customer-Specific Worklist Modifications
You can use Customizing activity
BAdI: Index Relevance and Maintenance for Commodity Management
to define your own check methods, which the system can then use to mark business objects as relevant for the period-end valuation.You can use Customizing activity
BAdI: Selection Criteria Check During Worklist Creation
to enhance the selection screen used for creating worklists by adding additional input checks.
Activating the Approval Process
You can activate the approval process for accrual documents belonging to document category
Standard
andNo FI Relevance
. To do so, navigate to Customizing activityDefine Settings Dependent on Company Codes
.Control Settings for the Period-End Valuation
You can use Customizing activity
Define SD-Specific Settings Dependent on Company Codes
to select the checkboxNo Billing Document
. This setting means that the system does not allow you to post or cancel a billing document up until the valuation key date if you have already created a valuation result or accrual document for the relevant delivery item.Special Settings for Posting in Sales
You can find the billing types and assigned document category extension for the period-end valuation in Customizing for Sales and Distribution, under
Billing
Billing Documents
Define Billing Types
.You have defined the following Customizing activities for the posting:
Assign Billing Type for Period-End Posting to Sales Document Type
You have assigned the billing type for the period-end posting. The system posts the billing document for the accrual amount in the form of an invoice. You can also assign a billing type for intercompany billing. Here, the organization that created the sales order and the organization delivering the related product belong to different company codes within the same company.
Assign Billing Type for Period-End Reset to Billing Type for Posting
You have assigned the billing type for the period-end reset of the period-end posting.
You have posted at least one delivery item that the system has registered for the period-end valuation.
Process
To call up the transactions required for using period-end valuation in sales, on the SAP Easy Access
screen choose Logistics
Sales and Distribution
Sales
Environment
Period-End Valuation
, as follows:
Creation of a Worklist
For delivery items that are relevant for the period-end valuation and have not yet been finally invoiced, the system calculates the value of the final invoice as an anticipated amount on the valuation key date at the end of a period. This amount is based on the latest available market data and will in most cases be different to the posted amount found in the provisional invoice. The difference between the anticipated amount and the posted amount is what forms the accrual amount. For more information, see Creation of a Worklist.
When creating a worklist, the system creates billing documents of billing type F2DM or IVDM for intercompany billing. These billing documents have a posting block to begin with and are therefore not yet transferred to Financial Accounting. The way in which delivery items are distributed across billing documents is done in the same way as for a billing document run for standard invoices.
NoteYou can split the billing documents in greater detail, for example one billing document for each delivery, by configuring a suitable data copy routine within copy control. For more information, see Copy Control.
End of the note.These billing documents are usually
Differential Billing Documents
, meaning an item pair representing the difference exists for each delivery item. The positive item represents the anticipated amount of the final invoice. The negative item represents the value of the latest provisional or differential invoice for this delivery item. The difference between the two items is the accrual amount. If no provisional invoice has been created for this delivery item, only the positive item exists, meaning the accrual amount corresponds to the entire anticipated invoice value. For more information on differential billing, see Billing with Differential Billing Documents. NoteIn Customizing, you can stipulate that a provisional invoice must always be available on the valuation key date. This means that you cannot forget to create a provisional invoice. If you were to forget to create a provisional invoice, and went on to create one for the period in question after the period-end valuation, the system would post the revenue from this invoice amount for a second time.
End of the note.Verification of Valuation Results
During the period-end valuation, you can verify the calculated valuation result for each delivery item. For more information, see Verifying Valuation Results.
An accrual document item refers to one delivery item. It includes the corresponding revenue amount and accrual amount that are to be posted.
A valuation item for a delivery item refers to the billing document item pair. The data displayed is that of the billing document item pair.
When revaluating a valuation result, the system usually rebuilds the pricing conditions of the corresponding billing document item, the same as when creating a new billing document. If the header data, item data, or partner data in the underlying sales order has changed, meaning it requires different billing document data, the system cancels the old billing document, and creates a new one. The valuation result then refers to these new billing document items.
NoteYou can influence the decision of the system whether to update the existing billing document or to cancel it and create a new one by implementing
BAdI: Ignored Fields During the Comparison Step of a Revaluation
(MEV_REPRICE_CHK_SD_CLEAR
).End of the note.When creating the accrual document, the system copies the reference to the billing document items into the accrual document items.
When copying a billing document to an accrual document, you must always transfer all of its items. For this reason, when creating accrual documents, the system requires you to decide whether a result is
Postable
orNot Postable
for all valuation results of a billing document. If you have defined some of the valuation results for a billing document asPostable
and some of them asNot Postable
, the system automatically cancels the existing period-end billing document and creates a new billing document for the postable and non-postable parts. NoteIn the commodity business, billing documents for the period-end posting usually involve just a few items pairs, often only one. If you are finding it challenging to work with billing documents together in this regard, you can use a suitable copy routine to split them up in greater detail, as mentioned previously.
End of the note.Approval and Posting of Accrual Documents
Depending on the results of the check, you create an accrual document for one or more than one valuation result. The system then uses this document to post the accrual amount for the individual delivery items. The system posts the accrual amount as revenue to Financial Accounting (FI) at the end of the period.
NoteThe offsetting account is a G/L account that has as its semantics
Period-End Accrual Customers.
The system does not post to actual customer accounts.You must configure account determination in such a way that the offsetting account is identified as the second account. For more information, see Account Determination.
End of the note.For more information, see Approval and Posting of Accrual Documents.
When posting the accrual documents, the system transfers the billing documents to Financial Accounting. At the same time, by copying from one billing document to another, the system creates the corresponding billing documents for the period-end reset using billing types G2DM or IGDM. The system then transfers the period-end resets to Financial Accounting directly. Here, the posting date of the reset is the starting date of the subsequent period.
When reversing accrual documents, the system creates the corresponding cancelation billing documents and transfers them to Financial Accounting. The accrual document that is a reversal document with Reversal as its status refers to the items within the cancelation billing documents.
Result
The system has posted the revenue amount and accrual amount to Financial Accounting (FI) at the end of a period, and the posting period is therefore closed. The system automatically performed a reset posting at the start of the subsequent period.