One basic principle of the Controlling applications in the R/3 System is that all the quantity flows in the Logistics applications are reflected in realtime as value flows in financials.
If you use multiple valuation approaches in your system, you also need to store these valuation approaches in Cost Element Accounting. Cost Element Accounting provides the infrastructure necessary to represent these multiple value flows by allowing you to store multiple actual versions in parallel.
This means that, for example, when you use a material for a production order, separate goods usage postings are stored in parallel according to the different valuations.
You must specify one of the actual versions - that you have defined in Controlling - as the operational version. This version reflects your organization’s basic managerial accounting philosophy as the primary valuation method, and must be defined in the system as version 000. In addition to this version, you can also define other actual versions to reflect the other two valuation methods. For more information, see Assigning Valuation Approaches to CO Versions.
The legal valuation method must be represented in CO by at least one of the actual versions in your system. You can then also define up to two other versions by specifying these in the currency and valuation profile.
For more information about using multiple valuation approaches in Cost Element Accounting, see:
Overhead Cost Controlling also stores multiple valuation approaches according to the settings made for Cost Element Accounting.
This means that you can post materials usage to cost centers using different valuation approaches.
It is currently not possible to use transfer prices and multiple valuations for activities. Consequently, activities are only valuated using the operational valuation in CO. This means that you can only calculate planned activity prices and planned overhead in the operational valuation view. It also means that plan/actual comparisons and variance analyses can only be carried out in that version.
You can calculate up to three actual prices in parallel. Thus valuation can be carried out in all three valuation approaches. If you do not use actual price determination, the system uses the plan price to valuate actual data. Do not see the multiple actual prices as transfer prices for activities. Actual price determination only takes into account the different primary costs that arise as a result of transfer pricing for goods movements.
Multiple valuation approaches are supported for all secondary allocations, thus ensuring that the value flows are complete.
For more information about using multiple valuation approaches in Overhead Cost Controlling, see:
Cost Object Controlling has the task of making multiple valuation approaches available for the settlement production variances to Financial Accounting and the material ledger. This applies to those cost objects that are settled to material stock ‑‑ production orders, process orders and run schedule headers.
The controlling functions in Cost Object Controlling, such as variance calculation, are still limited to one valuation approach. This applies to the calculation of overhead, variances, and variance categories. Only goods movements are posted using multiple valuation approaches. Consequently, the actual costs for a single valuation approach are always taken from the material costs in that view plus the activities and overhead costs from the operative version.
Before you can settle your costs for the three valuation views, you need to calculate work in process for each approach. For this purpose the valuation approach stored in the currency and valuation profile needs to be copied to the results analysis version. This makes it possible to use multiple valuation approaches for posting the work in process to FI and for settling the production variances. The production variances in this case are the difference between the actual costs, inward stock movements and work in process using each valuation approach.
For more information about using multiple valuation approaches in Cost Object Controlling, see:
The Profitability Analysis (CO‑PA) application component represents all external sales with customers outside the group and other companies within the group. These external sales could be analyzed from the point of view of internal organizational units in reporting using the characteristic “profit center”.
By using transfer prices in Profitability Analysis, you can analyze all internal goods movements within profit centers in addition to the external sales, and valuate these using transfer prices according to the cost‑of‑sales method.
For more details on transfer prices in CO‑PA, see Multiple Valuation Approaches/Transfer Prices in CO-PA