delimitation key

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delimitation key

Definition

Key that defines the valuation of the order during period-end closing.

Use

How the results analysis key is used depends on the nature of the order.

For orders with revenue ( internal orders , sales orders, and projects ), the results analysis key determines how results analysis is carried out.

Results analysis is recommended in the following situations:

When you are using a

nonvaluated sales order stock or nonvaluated project stock and you want to valuate the inventories at the end of the period

When you are using a

valuated sales order stock or valuated project stock and want to valuate goods that have been delivered but not yet invoiced, or when you want to create reserves automatically

For orders without reference to a

sales order item or WBS element, the results analysis key determines how the work in process is calculated.

The production type can be make-to-stock or mass production on the basis of sales orders. The work in process is calculated at the level of the production order, process order, or product cost collector.

For capital investment measures , the results analysis key determines how the system calculates the values to be capitalized.

Examples

For orders with revenue, costs may be incurred before any revenue is received. If you are using a nonvaluated sales order stock, results analysis enables you to report the costs as work in process. After the first revenue has been posted, you can calculate the cost of sales . If the calculated cost of sales is greater than the actual costs incurred to date, the system creates reserves for unrealized costs in the amount of the difference.

No revenue is posted in CO for orders without reference to a sales order item. Each goods receipt for these orders is valuated. The work in process for these orders can be calculated with two different methods:

Work in process at actual costs

The actual costs for production orders and process orders for which no delivery has taken place are reported as work in process. After a partial delivery, the difference between the debit of the order with actual costs and the credit of the order from goods receipts is reported as work in process. When the order is complete, this work in process is canceled. The difference between the debit and credit of the order is then interpreted by the system as a variance.

In Product Cost by Order , the work in process is usually valuated at actual costs.

A requirement for the valuation of work in process at actual costs is that the default rule PP1 (full settlement) must be specified in the order.

Work in process at target costs

A confirmation is made for each operation or at certain reporting points. The system uses the confirmations to determine the quantity of work in process. This quantity is valuated using the strategy sequence specified in the valuation variant for work in process and scrap.

In Product Cost by Period , the work in process is always valuated at target costs.

A requirement for the valuation of work in process at target costs is that the default rule PP2 (periodic settlement) must be specified in the order.

Dependencies

The control parameters for results analysis, for the calculation of work in process, and for the calculation of the values to be capitalized are selected through the results analysis key in the order and a results analysis version. If you have not specified a results analysis key in the order, the order will not be included in the calculation of work in process during period-end closing.

The control parameters for the valuation of work in process in Product Cost by Period are defined in Customizing for Product Cost by Period.