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 General Information on Nonvaluated Sales Order Stocks Locate this document in the navigation structure

Preliminary Costing with a Nonvaluated Sales Order Stock

Cost Rollup with a Nonvaluated Sales Order Stock

With a nonvaluated sales order stock, cost rollup depends on the requirements indicator of the material (individual requirements or collective requirements).

  • The cost of goods manufactured for materials from collective requirements are rolled up to the next-highest production level and taken into account in all cost estimates above that as long as the indicator Roll up costs is set for the cost component.

  • The cost of goods manufactured or the procurements costs for materials from individual requirements are not rolled through the structure but rather shown directly in the cost estimate for the sales order item. These costs are shown in the cost estimates for higher-level materials, but no overhead is allocated to them.

The sales order item thus contains the following costs:

  • The planned costs for the production of all materials controlled by individual requirements in the structure, plus the overhead

  • The planned costs for external procurement of all raw materials controlled by individual requirements in the structure, plus the overhead

In this way product costing simulates the process in your actuals, whereby the costs for all materials from individual requirements are:

  • Collected on production orders and settled on the sales order item when the order is settled

  • Assigned to the sales order item when the invoice is received

Note Note

If you are using a valuated sales order stock or a valuated project stock, the costs are rolled up the same way as in make-to-stock production.

End of the note.

Actual Costs with a Nonvaluated Sales Order Stock

  1. Actual costs on the production orders

  2. Goods movements for a nonvaluated sales order stock are not valuated in Financial Accounting . This means that the material consumptions of dependent requirements (mainly semifinished products) from the sales order stock are not shown on the production order. These costs are entered on the sales order item either when the invoice is entered or at the point of goods receipt (external procurement) or order settlement (in-house production). Because the production orders do not contain the full actual costs, accurate variance calculation is not possible and is therefore not supported by the system.

  3. Actual costs on the sales order item

If you are using a nonvaluated sales order stock, the actual costs of production on the manufacturing orders (production orders and process orders) are settled to the sales order item during period-end closing.

In the case of trading goods, the sales order item is debited with the actual costs of the externally procured material at the time of the goods receipt or invoice receipt.

Actual costs are entered on the sales order item as a result of the following business transactions:

  • Goods movements in Materials Management (MM)

  • Goods issues for the sales order

You use movement type 291 here so that the Sales order field is displayed.

  • Goods receipts for the sales order

You use movement type 101 here so that you deliver to the sales order stock.

  • Settlement to the sales order item of the orders assigned to the sales order item (production orders, maintenance orders, internal orders, and so forth)

  • Postings in Financial Accounting (FI)

  • Internal activity allocations

You enter internal activity allocations in sales-order-related production with screen variant SAP05.

  • Reposting of costs, line items, activity allocations

You enter cost repostings in sales-order-related production with screen variant SAP08.

  • Direct assignment of personnel costs to the sales order item by means of time sheets

Note Note

Sales order items can also be debited with actual costs by means of process cost allocation, revaluation of activities at actual activity prices, and overhead allocation.

These functions are treated in the period-end closing section.

End of the note.

Actual Revenues with a Nonvaluated Sales Order Stock

If you are using cost-of-sales accounting in Financial Accounting (FI) with a nonvaluated sales order stock, you must perform results analysis before you transfer the cost of sales to Financial Accounting and then settle the calculated cost of sales to Financial Accounting .

Period-End Closing with a Nonvaluated Sales Order Stock

If you are using a nonvaluated sales order stock, then for all manufacturing orders the settlement receiver is the sales order item and the settlement type is FUL (full settlement).

First carry out the period-end closing activities in Product Cost by Order . During settlement, the system settles to the sales order item all actual costs of the manufacturing orders assigned to the sales order item. If you have created manufacturing orders in other company codes assigned to the sales order item, make sure that these are first settled before you perform results analysis.

If you are using a nonvaluated sales order stock, variance calculation for the manufacturing order is not supported.

You then perform results analysis in the period-end closing functions for Product Cost by Sales Order .

You perform results analysis to calculate the value of the unfinished and finished products.

The results analysis data is transferred to subsequent application components when you settle:

  • Revenues, sales deductions, and the cost of sales are transferred to Profitability Analysis (CO-PA).

  • Capitalized costs or revenue in excess of billings is transferred to Financial Accounting (FI) and Profit Center Accounting (EC-PCA).

  • Reserves for imminent loss are transferred to CO-PA, FI, and EC-PCA.

  • Reserves for unrealized costs are transferred to FI and EC-PCA.

  • Reserves for complaints and commissions are transferred to FI and EC-PCA.

  • If you are using cost-of-sales accounting, the cost of sales is transferred to FI and EC-PCA.

Note Note

Special requirements in cross-company processing with nonvaluated sales order stock:

In the results analysis version in the Extended Control, you use the indicator WIP on dependent orders to specify that the costs for manufacturing orders should be shown in the second company code as work in process until they receive the status DLV ( delivered ). At that point, the work in process in the second company code is canceled and work in process is shown in the company code of the sales order item. You then perform results analysis on the sales order item.

End of the note.

Results Analysis

If you are using a nonvaluated sales order stock, you valuate your inventories using results analysis. In this case you must always perform results analysis if you want to capitalize the sales order stock in your balance sheet. The posting in FI is made through the settlement of the data calculated in results analysis.

If you are using a nonvaluated sales order stock, you use results analysis to:

  • Determine the value of the work in process (calculation of the capitalized costs or revenue in excess of billings)

The work in process determined in this way includes the finished product inventory and the unfinished products inventory because the delivery to inventory is unvaluated.

  • Automatically create reserves

  • If you are using cost-of-sales accounting in Financial Accounting , you use results analysis to determine the cost of sales which you then settle to Financial Accounting .

See also:

Calculation of Planned Costs in Product Cost by Sales Order

Actual Postings and Funds Commitments in Product Cost by Sales Order

Period-End Closing in Product Cost by Sales Order: Scenario

Results Analysis

For information on cost rollup and cost component splits, see the document Product Cost Planning.