Changeover Procedure in Materials Management (SAP Library - European Monetary Union: Euro (CA-EUR))

Changeover Procedure in Materials Management

Use

Most of the Materials Management data is converted automatically by the R/3 changeover package. This carries out the preprocessing, conversion, and postprocessing steps.

Features
Preprocessing

During this phase, the system checks whether the material stocks (MM) are the same as the material stock accounts in the general ledger (FI) for all company codes that are included in the changeover to the euro (report EWUMMCHK_40).

The system usually carries out the analysis for inconsistencies in the preprocessing phase, i.e. normally there are no differences. If there are still differences in the system, it cannot begin the conversion of the tables. The system issues an error log of all differences.

In this case, carry out the steps described in the Implementation Guide for European Monetary Union: Euro under Local Currency Changeover ® Preparation ® Preparation in Materials Management (MM).

During preprocessing, the system also starts reports to insert the missing data required by the reports in purchasing tables (EWUMEBAN_40, EWUMPOHD_40, EWUMEKAB).

Conversion

During this phase, the system converts the following data to the euro:

local currency amounts, exchange rates, and pricing conditions for all MM documents, including the purchase order history
stock values and material prices
specifications of amounts in Customizing for MM
LIFO layers, FIFO results records, receipt data

Postprocessing

During this phase, the system clears up any differences arising from the changeover from local currency to the euro:

For split valuation, the system replicates the values in the totals record of table MBEW from the total of the individual valuation records for the current period, the previous period and the previous year (report EWUMMBEW).
The system recalculates the moving average prices from the stock value and the stock quantity in the valuation segment for Materials Management (table MBEW). (report EWUMMPRS).
The system replicates the balances between MM and FI. During this process, the system compares the total values of the material valuation segments for a stock account with the balance of this stock account and outputs the difference. The rounding differences that the system determines are written in database table EWUMMFI and are used as the basis for manual postings in MM sub-ledger accounting (report EWUMMBST).
The system then corrects the purchase order history.

- The system compares the purchase order history records with the line items in the GR/IR clearing account. If it finds any differences, it saves them in table EWUMMFI with the allocation number from the purchase order number and the item number. The system later reconciles the GR/IR account on the basis of these entries.

This also applies to the clearing account for delivery costs.

- The system replicates the goods receipt and invoice receipt values in the purchase order history. If the total of the quantity calculated and the goods receipt quantity are the same, the system corrects the purchase order history records so that the totals of the goods receipt and the invoice values correspond.

Note that you cannot carry out FI-MM postings during postprocessing.

The system issues a log for each report. This informs you about the procedure and possible differences. The differences themselves are recorded in table EWUMMFI.

Differences that arise should be cleared immediately after the changeover. For more information, refer to the European Monetary Union: Euro Implementation Guide under Local Currency Changeover ® Central Changeover ® Central Changeover: Postprocessing ® Postprocessing ® Start Postprocessing Programs Individually ® EWUMFPST: Clear Differences

Reconciliation

Very small differences may occur because amounts are rounded to the the nearest cent. If this leads to inconsistencies (for example, the stock value is not equal to the quantity x the price), a reconciliation is required after the local currency changeover.

If necessary, differences that occur are taken into account during the changeover procedure and corrected automatically.

After the changeover, the following reconciliations are carried out:

Comparison of valuation segments (MM) with Financial Accounting (FI).
Reconciliation of totals segment from the valuation segments for split-valuated materials.
Reconciliation between material price and stock value and quantity in the valuation segment.
Reconciliation of purchase order history records with the line items of the GR/IR clearing account and the clearing account for delivery costs.

The reconciliation of the balances to zero in the accounting documents is taken into account during the reconciliation in Financial Accounting.

The LIFO/FIFO receipt data is not reconciled with the material documents and accounting documents that have been converted. Provided that no material documents or settlements have been archived for production orders, if required, the LIFO/FIFO receipt data can be recompiled via a document extract after the changeover.

Dealing With Archived MM Documents

Archived documents are not converted because the reloading of documents is not supported in Materials Management.

However, you can recompile statistics files from the archive whenever you wish. Whenever you recompile, the system reads the archived documents and converts the amounts in local currency to the euro for the statistics file.