Reconciling Accounts for the Material Ledger in Different Curren (SAP Library - Actual Costing/Material Ledger (CO-PC-ACT))

Reconciling Accounts for the Material Ledger in Different Currencies and Valuation Categories

Prerequisites

You must perform this step if one of the following is true:

The valuation level is the company code, and you have set the material ledger in the company code as productive.
The valuation level is the plant, and you have set the material ledger in all plants belonging to the company code as productive.
You are working with more than one currency or valuation category

Make sure that no material postings are necessary during the reconciliation in the relevant valuation area. The company code for inventory accounting is blocked during reconciliation.

When you convert the data at the beginning of a new fiscal year, carry the balances for general ledger accounts forward by choosing Accounting ® Financial Accounting ® General Ledger then Periodic Processing ® Closing ® Carry Forward ® Balances. You can find documentation for this program under Help ® Application help.

Procedure

Choose Accounting ® Controlling ® Actual Costing/Material Ledger ® Environment ® Production Startup ® Reconciliation with Bal.Sht Acct. in FI.

Enter the company code.

Enter the account where offsetting entries should take place in order to deal with differences in foreign currencies in the material stock account, and to reconcile the accounts of Financial Accounting with the accounts of Materials Management.

The account should fulfill the following prerequisites:

The account currency corresponds to the company code currency
Balances are only carried in local currency
Postings can only be made to the account automatically
There is no open item management
The account is a profit and loss account and not a reconciliation account

Do not enter a material stock account. If you enter one, you will lose reconciliation between subledger accounting for the material and G/L accounting.

Choose the method of processing.
Choose Execute.

You receive a list with a comparison of the inventory values from Materials Management (subledger accounting) and from Financial Accounting (G/L accounting).

Result

The system does the following:

Aggregates the inventory values in all currencies of Materials Management at the account level and compares them with the balance sheet account balances in Financial Accounting
Adjusts the balance sheet account balances in FI in the other currencies (and not the local currency) to the input from Materials Management, and posts differences to the adjustment account.
Generates an accounting document for the adjustment posting

Note

There is no reconciliation for differences between Materials Management accounts and Financial Accounting accounts in the company code currency, because this inconsistency must first be eliminated. In this case, contact SAP.