Determining the Lowest Value Based On Range of Coverage

Note Note

Because of the volume of data involved, you should only determine the lowest value using background processing.

End of the note.

Procedure

  1. Choose Start of the navigation path Valuation Next navigation step Balance Sheet Valuation Next navigation step Determine Lowest Value Next navigation step Range of Coverage. Next navigation step The system displays selection screen. End of the navigation path

  2. Enter data as required: the company code in question, the key date, and the materials for which you want to determine the lowest value. You can narrow down your selection using material numbers, valuation areas, valuation types, valuation classes, material types, and material groups.

  3. Specify how the system should determine the range of coverage.

  • The system can determine the stock used to calculate the range of coverage from the closing stock of various periods.

    • Select Material Stocks .

    • Specify the period from which the system should determine the material stocks.

    • Choose Weighting Factors . This is where you need to set up the weighting factors for the closing stock balance.

    • Specify whether the system should include reservations and open order stock in determining the stock level.

Choose to confirm your entries.

  • The system can determine the average material consumption used to calculate the range of coverage from various types of individual consumption.

    • Select Material Consumption .

    • Select whether the consumption is to be determined From Cons. Statistics, From Cons. Forecast , or via the customer exit.

    • Enter the period for which consumption is to be determined.

    • Choose Weighting Factors . You can weight the determination of consumption.

    • In the weighting factors table, entry number one is always used for the month or period in which the running date lies. All other entries are used for the corresponding periods in the past or the future, according to the data used as the basis for the determination.

Choose to confirm your entries.

  1. Select Base Price .

You can select one or more prices from the Phys. Inv. Prices and Valuation Alternatives tab pages. The method thus determines the basis price as the minimum of all specified prices and valuation alternatives. Choose to confirm your entries.

  1. Select Deval. Percentages to check or change the devaluation percentages.

The system displays a dialog box where you specify whether the devaluation rates are to be defined at Company Code Level or Valuation Area Level . This dialog box takes you straight to Customizing.

If you make changes, save them. Choose Back. The dialog box is displayed. Choose to confirm your entries.

  1. You can update the material master with the results of lowest value determination. If you want to do this, select the Database Update field under Update Material Master . You can change the material prices or the physical inventory prices in the material master.

  • If you want to change the material prices, select Change Material Prices . The system displays a dialog box, in which you select if:

    • A batch input session should be generated for the price changes

    • The prices should be changed directly when valuation is carried out

    • You do not want the material prices to be changed, in which case you need to select No Update .

Choose to confirm your entries.

  • Choose Update Prices.

The system displays a screen with two tab pages. SAP recommends that you only process one of these tab pages.

  • On the Phys. Inv. Prices tab page, select the price field of the range of coverage price in which the data is to be posted. If you want to delete prices in other price fields when carrying out the update, select the Reset field.

  • On the Valuation Alternatives tab page, select the price indicator that indicates the valuation alternatives to be updated.

Note Note

Choose to confirm your entries.

You should only trigger the automatic price change function if you do not want to carry out further lowest value determinations with price changes.

End of the note.

  1. Choose List format and specify the type of print list that you require.

  2. Choose Exception rules to define when devaluation is not allowed.

  3. Choose Valuation level , to specify whether the procedure is to be done at valuation area level or company code level.

  4. Choose Execute .

Result

The system generates a list of the materials with their percentage devaluation and lowest prices determined.

If you set the automatic price change function, the name of the batch input session or the numbers of the price change documents posted appear at the end of the list.

You can analyze the results using the Schedule Manager and the messages using the application log.

See also:

Lowest Value Determination Based On Range of Coverage

Determining Lowest Values

Balance Sheet Valuation (MM-IM-VP)