Non-Valuated Project Stock: Scenario 

Prerequisites

The Non-valuated project stock indicator must be set in the project definition.

In the material master, the Individual/Collective indicator on the MRP 4 tab page must be set to Individual (1) or Individual/Collective ().

Process Flow

The text which follows describes only the special features of non-valuated make-to-order stock. For a general description of the logistical processes, see Logistical Processing When Working with Project Stock.

Planning

You only obtain complete planned costs for network components managed in individual stock in planning networks because these networks are only intended for use in planning and never carry actual costs. The planned costs for these components do not appear in apportioned orders because no actual costs arise on the non-valuated goods issues arising when these are used; this is the only way that a meaningful plan/actual comparison can be guaranteed.

Additional planning of production costs - using, for example, a unit costing in the WBS - may be necessary because results analysis requires complete cost planning.

No planned value flow is updated to non-stock components.

Valuated and non-valuated project stocks behave in the same way with regard to the MRP planning run.

In-House Production

The production orders created when planned orders are converted have a settlement rule, which stipulates the stock-bearing WBS element as the settlement receiver.

The production orders are not credited when the material is delivered to stock. Only the quantity is posted as a receipt to stock. Similarly, no costs are debited to the production order when you draw semi-finished goods from project stock.

All internal activity/material costs arising when you draw on general plant stock are settled to the WBS element.

External Procurement

External procurement via project stock follows the same cost procedure as direct procurement for the project.

The cost commitment arising from the purchase requisition or purchase order appears under a material consumption cost element in the WBS element.

For technical reasons, purchase requisitions created by the MRP planning run do not create cost commitments or payment obligations in the WBS elements to which they are assigned. This only happens when the purchase requisitions are converted into purchase orders.

Goods received are posted on a quantity basis to project stock. When valuated goods are received, the costs are posted to the WBS element as an expense, under a material consumption cost element.

When the invoice is received, an additional debit is entered (or a first debit if the goods receipt was not valuated) to the WBS element, under an material consumption cost element.

Assembly in Networks

When you begin assembly using networks, goods are issued from goods reservations. This leads only to quantity-based stock reductions. No consumption costs are debited to the network activity, meaning that the actual costs remain in the WBS element.

If you use an assembly item in the network to post an addition to project stock, there is no credit posting to the relevant network activity. The project stock managed on a quantity-basis is increased; no debit posting is made to the WBS element.

Delivery to Customer

When you deliver to your customer, non-valuated goods are issued from reservations. The project stock is credited on a quantity basis only. No cost postings are made in the affected WBS elements or network activities.

Period-end closing

The values of assigned production orders are included in results analysis for WBS elements because the incompleteness of the actual costs in the production orders makes it impossible to determine separate values for WIP and variances in these production orders.

For a complete example illustrating the quantity and value flow using non-valuated sales order stock, see Example: Non-Valuated Sales Order Stock in the Product Cost Controlling (CO-PC) component.