Use

In Balance Sheet Valuation , material prices are calculated. These material prices are updated in various ways and can be displayed. In each procedure, there are two fundamentally different options for saving the resulting prices:

The prices can be adopted as the new valuation prices for the materials using the price change transaction. Accounting documents containing postings to the stock account and an expense account are created when this happens. The prices can be changed using a batch input session or by means of a direct update.

The prices can be written to the physical inventory fields in the material master. The physical inventory prices have a temporary nature only, this means that the system cannot determine their validity as of a certain point in time. Once their contents have been analyzed, you can reset the physical inventory prices using various programs in balance sheet valuation. No documents are posted when the physical inventory prices are updated.

Features

You can use the physical inventory prices in various ways:

Generally, each balance sheet valuation procedure writes the results in a certain physical inventory field. The logical assignment of the fields to the respective procedure must currently be made outside the SAP System.

In principle, you can combine the procedures in any way you wish, by providing the interim results in each case via the physical inventory prices. The existing dependencies between the procedures and their sequence can be different according to the installation. The organization of balance sheet valuation should be carried out outside the SAP System before you start to use it.

If you link balance sheet valuation procedures together, it does not generally make sense to adopt interim results as the material price at the same time.

Before the final analysis of the results, you can compare physical inventory prices. Conspicuously highprice variancesmay lead to the conclusion that individual physical inventory prices have not been calculated correctly and must be corrected manually.

The results of the individual procedures can be compared with one another using the analysis Balance Sheet Values by Account . The same program calculated the final balance sheet price to be set, which can in turn be adopted as the new material price or as another physical inventory price.

In addition, you can take balances displays with reference to the stock accounts from the list. On the basis of these balances, you can make manual postings to the balance sheet account and the expense account.

Basically, you need to decide whether the results of balance sheet valuation are adopted as the material price or whether manual postings are to be made according to the analysis of balance sheet values by account. You should weigh up the advantages and disadvantage of both procedures carefully.

In addition, there is the option of storing individual physical inventory prices as valuation alternatives in the SAP System, for example, to create a history of the balance sheet valuation results.