Example: Parallel Valuation of Stock Transfers and Billing 

This example shows you how actual data is updated with you are using both legal valuation and profit center valuation.

In this business process, the company transfers a material from plant 1 - which is assigned to profit center 1 - to plant 2, which is assigned to profit center 2. Plant 2 then sells the product to a customer outside the group.

In Profitability Analysis, currency types B0 (operating concern currency, legal valuation) and B2 (operating concern currency, profit center valuation) are active.

Both legal valuation (L) and profit center valuation (P) are used in both plants and profit centers. These valuations yield the following data:

Plant/PrCtr

Profit center valuation

Legal valuation

Transfer price (TP)

Sale price

1

110

100

170

  

2

160

120

  

200

 

Result

  1. The internal transfer from plant 1 to plant 2 yields a line item with currency type B2. This goods movement is only relevant for profits from the profit center viewpoint. Consequently, no posting is created from the legal viewpoint (currency type B0).

    2. To update this document in CO-PA, you must assign your accounts "Internal revenues" and "Internal costs" (stock changes) to value fields in Customizing. The profitability segment is determined based on the information contained in the document.

  2. The system creates line items for the price differences that arise due to the different stock valuations in the two plants. These line items are not updated automatically in CO-PA. However, you can update them if you assign the price difference accounts to a profitability segment by means of a CO automatic account assignment.
  3. The system creates line items with currency types B0 and B2 for the external billing document. Here you can also use CO-PA valuation to copy the manufacturing cost component split from a material cost estimate in CO-PC and add this to the information transferred from the billing document.