Displaying Results of Balance Sheet Valuation

Use

To transfer the results of balance sheet valuation to Financial Accounting, you can proceed as follows:

You first list the results of lowest value determination and then decide which stock accounts are to be taken into account for devaluation. You carry out the corresponding balance sheet posting manually.
You change the price directly when you determine the balance sheet values.

Features

To establish the balance sheet value of the stock, you can list side by side the values resulting from the previous update to the physical inventory prices in the material master record. You have the option of grouping several prices together as a price level. The system automatically calculates the value of a price level from the lowest of the prices assigned (see Example ).

You generate a list in which the values resulting from the price levels defined and the actual stock value (current, from the previous month, from the month before last, or from the previous year) are shown for each material. The total stock values by stock account are also displayed.

This list allows you to decide on the stock accounts that are to be taken into account during devaluation. The list specifies the values that are to be transferred.

At the same time as you generate this list, you can have the system change the prices. Changing the balance sheet price determined causes the system to devalue the stock accounts.

Note Note

If you use the price change function to transfer the balance sheet values to the stock accounts, it can lead to problems if you are later required to reinstate the original values.

End of the note.