You can use the alternative valuation run for one or more of the following purposes:

• Cumulation over several periods
• Valuation according to different accounting principles (IAS, US-GAAP, HGB and so on)

• Valuation using prices that are different to those normally used

In addition to the costing run used in periodic actual costing, the alternative valuation run allows you to generate cumulated actual values over several periods. You can create several alternative valuation runs for a plant and then compare the results. If you have activated actual costing, the system will update the cumulative data.

The receipts of all periods to be cumulated are added together, including their single-level price and exchange rate differences. The preliminary material valuation takes place using the standard price for the initial period of the alternative valuation run. If the material is to be revaluated after the initial period, the material valuation is scaled to the alternative valuation run, this means that the material is valuated in the alternative valuation run with the standard price from the initial period. The differences are displayed in the cumulative view of the material price analysis as single-level price differences.

The system uses this data to execute the single/ multilevel material price determination in the alternative valuation run, in the same way as for actual costing.

You can evaluate the data from the alternative valuation run in the Material Price Analysis. The data is also passed to Profitability Analysis.

Only materials with price determination control 3 are taken into account by the alternative valuation run.

The alternative valuation run cockpit is essentially the same as the cockpit for periodic actual costing. In contrast to actual costing however, you can create several alternative valuation runs.

In order to be able to revaluate activities using actual prices from any CO version you must set the activity update indicator to 2 (Activity update relevant for price determination). You do this in Customizing under Controlling ® Product Cost Controlling ® Actual Costing/ Material Ledger ® Actual Costing ® Activate Actual Costing. The alternative valuation run allows you to calculate cumulative actual prices in any CO versions that do not otherwise contain any actual data.

If you create a follow-on run for an existing alternative valuation run, then the ending inventory quantities and values from the existing run will be used as the basis for the beginning inventory of the follow-on run.