Performing Closing Entries (SAP Library - Actual Costing/Material Ledger (CO-PC-ACT))

Performing Closing Entries

Prerequisites

You have performed multilevel material price determination.

For more information, see Performing Multilevel Material Price Determination.

You have allowed closing entries.

For more information, see Allowing Closing Entries.

Procedure

Choose Accounting ® Controlling ® Product Cost Controlling ® Actual Costing/Material Ledger ® Actual Costing ® Edit Costing Run.
Under Process and Post Closing choose Parameters.
Specify whether the system should revaluate the material stock for the period to be closed with the prices calculated in the material price determination.

If you only want a single-level closing entry, first perform single-level material price determination and the closing entry immediately afterwards.

Specify the processing option. You should perform the function in the background.

Result

If you have specified that the system should revaluate the material stock in the previous period, it does the following:

The system changes the price control for the material in the previous period from standard price S to moving average price V and updates the periodic unit price (that it calculated for the material price determination) as the valuation price for the previous period.

In the Accounting 1 view of the material master record, the periodic unit price for the previous period is displayed as the moving price (price control V).

The preliminary valuation price (standard price) remains unchanged and can continue to be displayed.

The system posts the price differences and exchange rate differences that are assigned to ending inventory to the material stock account. You can see these amounts as well as the closing document in material price analysis.

If you specified that the system should not revaluate the material stock in the previous period, then it does the following:

The system does not change the price control.
The system does not post the price differences and exchange rate differences that were assigned to ending inventory to the material stock account, but rather to the Accrual Account (Material Ledger) account (transaction key LKW in Customizing).

See the following for further information on postings: Example: Multilevel Price Determination

Example: Closing Entry

If you want to use the new prices as valuation prices for a future period, you must first mark these prices.

Note

Note

When you have finished the closing entry, recalculate the status data and choose Costing Results. Choose Display Material List with Filter ® Materials Still Open and make sure that all materials have been processed.

See also:

Marking Prices for Future Valuation