You use a valuated sales order stock if you want the goods movements to have corresponding postings in Financial Accounting (FI).
A sales order stock is assigned exclusively to a particular sales order and sales order item and cannot be used for other sales orders or sales order items. Sales order stocks can be for independent requirements as well as for the dependent individual requirements of the individual requirements material (finished product). For this reason, the material components can only be used to manufacture the material ordered by the customer and listed in a particular sales order item, and the material manufactured can only be delivered to the customer in the context of the sales order item.
As a manufacturing enterprise, you can use the valuated sales order stock in:
In this case you use the functions ofProduct Cost by Sales Order.
In this case you use the functions ofProduct Cost by Order or Product Cost by Period (refer to: product cost collectors in sales-order-related production).
You can also use the valuated sales order stock for external procurement (trading goods). There are two types of trading goods:
Here you analyze the profitability for specific markets in Profitability Analysis (CO-PA) (such as for the consumer goods industry).
Here you use the functionality of Product Cost by Sales Order.
If you are using a valuated sales order stock or a valuated project stock, an accounting view must have been created for the individual requirements material.
If you are using configurable materials and want the individual requirements materials to be valuated, do not use material type KMAT because in the standard system this material type does not allow accounting views to be created (or open the accounting view for material type KMAT). Use any other material type with an accounting view and set the Material is configurable indicator in the basic data view of the material master record if applicable. You can specify this indicator as a default value in Customizing. To do this, go into Customizing for Logistics General under Basic Data® Material ® Control Data ® Define attributes of material types.
You have specified that the sales order stock should be valuated in Customizing for Product Cost by Sales Order under Control of Sales-Order-Related Production® Check Requirements Classes in the Valuation field. You select this requirements class through the requirements type (refer to: Control of Requirements Type Determination). You can:
The sales order stock is valuated together with the make-to-stock inventory. Here you enter A in the Valuation field in the requirements class. The individual requirements material is valuated according to the valuation of the make-to-stock material. You view the inventory quantity and inventory value of all sales order stocks that are manufactured with valuation indicator "A" in the material master record.
You are in an order-related production environment and are collecting the actual costs of production on a product cost collector.
The system valuates the sales order stock separately. The valuation is performed in accordance with the indicator Without valuation strategy in the requirements class. If you specify in the valuation strategy that the sales order stock is to be valuated on the basis of the standard price of the material manufactured for the make-to-stock inventory, the Valuation indicator in the requirements class should have the setting for only quantity-based separate valuation (entry A).
The Accounting 1 view includes the following fields:
You always enter a valuation class in this field.
If you want to assign the valuated sales order stock in FI to a different account than the make-to-stock-inventory, enter an additional valuation class in this field.
If you want to assign the valuated project stock in FI to a different account than the make-to-stock-inventory, enter an additional valuation class in this field.
The system uses this valuation class together with automatic material account determination to find the account to which the inventory values of the valuated sales order stock are updated.
A valuated sales order stock provides a number of benefits such as efficient cost management in sales-order-related mass production environments, simplified inventory processing with individual requirements materials, and comparable processing in sales-order-based and make-to-stock production environments.
Valuated sales order stocks have the following advantages:
Goods receipts result in automatic capitalization of the costs of the finished products that are relevant to inventory valuation; goods issues result in a corresponding inventory reduction. The flow of quantities and values is the same as in make-to-stock production. With goods issue postings for delivery to the customer, the sales order item is debited if you have flagged the sales order item as carrying costs and revenues (refer to:
For trading goods procured externally, the goods receipt is posted to the valuated sales order inventory. If you have flagged the sales order item as carrying costs and revenues, the sales order item is not charged until the goods issue posting for delivery to the customer.
The costs for externally procured raw materials are only debited to the sales order item when the goods issue for delivery of the finished product to the customer is posted.
If you are using the cost-of-sales accounting in Financial Accounting, the cost of sales is updated to Financial Accounting immediately rather than when results analysis is carried out.
In multilevel make-to-order production, you can calculate variances on manufacturing orders and collective orders because you can report the full costs for the manufacturing orders assigned to the sales order item.
Variance calculation determines the difference between the valuation of the goods receipt and the actual costs, and explains how the variance occurred.
You can view the valuated sales order stock in the menu Inventory Management (refer to: Displaying Valuated Special Stocks).
You can settle the variance of a manufacturing order or product cost collector that produced an individual requirements material to Actual Costing/Material Ledger (CO-PC-ACT).
Posting Goods Movements
All goods movements for materials produced in-house that are assigned to a sales order take place on the sales order stock.
With a valuated sales order stock, goods movements result in postings in Financial Accounting just as with make-to-stock inventories.
Quantity and Value Flow with Valuated Sales Order Stock
External Procurement with a Valuated Sales Order Stock
The system generates a purchase requisition from the sales order.
When you are using a valuated sales order stock, externally procured individual requirements materials are assigned to the sales order stock at the net order price at the time of the goods receipt. The net order price is updated as the standard price. If the sales order item is flagged as carrying costs and revenues, then when the goods issue for delivery to the customer takes place, the sales order item is debited with the costs of the externally procured material. If there are differences between the standard price (the net order price) and the actual costs, and if the sales order item is flagged as carrying costs and revenues, the price differences are posted to the sales order item.
In-House Production with a Valuated Sales Order Stock
See also:Valuated Sales Order Stock: Valuation Standard Price with Valuated Sales Order Stock Example for Valuated Sales Order Stock Without Product Cost by Sales Order: Quantity and Value Flow Variances with a Valuated Sales Order Stock Product Cost by Sales Order: Scenario Example for Product Cost by Sales Order with Valuated Sales Order Stock: Quantity and Value Flow
If you are using transfer prices with a valuated sales order stock, you can update data in multiple valuation views.
For more information on valuated sales order stocks, refer to the following sections:Valuated Sales Order Stock: Valuation Standard Price with Valuated Sales Order Stock Displaying Valuated Special Stocks Product Cost Collectors in Sales-Order-Related Production Variances with a Valuated Sales Order Stock
For information on mass production on the basis of sales orders, refer to the following documents:Cost Object Controlling: Mass Production on the Basis of Sales Orders Product Cost by Order Product Cost by Period
For information on complex make-to-order production, refer to the following section:Cost Object Controlling: Complex Make-to-Order Production
For information on automatic material account determination, refer to the Implementation Guide (IMG) for Materials Management under Valuation and Account Assignment® Account Determination ® Create Automatic Postings.
For information on goods movements, refer to the following section:Actual Costs in Cost Object Controlling
For information on updating data in multiple valuation views when using a valuated sales order stock, refer to the following section:Transfer Prices in Cost Object Controlling
For information on analyzing profitability for specific markets, refer to the document Profitability Analysis (CO-PA).