You use a nonvaluated sales order stock if you do not want the goods movements to have corresponding postings in Financial Accounting (FI).

A sales order stock is assigned exclusively to a specific sales order and cannot be used for other orders. 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 the material ordered by the customer can only be delivered to the customer in the context of the order.

Just as for a valuated sales order stock with a sales order item that carries costs and revenues, you can do the following for a nonvaluated sales order stock with a sales order item that carries costs and revenues:

• Perform results analysis on the basis of one or more sales order items

• Use results analysis to capitalize goods that have been delivered but not yet invoiced

• Make adjustments to follow-up costs

• Assign special direct cost of sales to the sales order item

• Allocate process costs to the sales order item

• Allocate sales overhead costs using the sales order item as the cost object

When you are manufacturing in-house, the nonvaluated sales order stock with multilevel production structures results in semifinished products manufactured for the finished product being delivered to the sales order stock unvaluated. When you close the period, all costs incurred in the manufacture of the semifinished product are settled directly to the sales order item to which the production order is assigned. If the semifinished product is withdrawn as a material component of a higher manufacturing level, the material withdrawal is not valuated. This means that the material cost for the semifinished product is not shown on the production order for the finished product. Only the production costs, production overhead, and so forth for that manufacturing level are allocated to the production order and passed to the sales order item when you settle.

For externally procured materials, the nonvaluated sales order stock results in the goods receipt posting being made to the nonvaluated sales order stock. The goods receipt or invoice receipt posts the costs of the externally procured materials directly to the sales order item.

You should use a valuated sales order stock in the following cases:

• When you want the goods movements for the sales order inventory to result in postings in Financial Accounting (FI)

• When you want to have the full costs at each manufacturing level

• When you want to calculate the variances for the manufacturing orders assigned to the sales order

• When you want to use individual valuation rather than collective valuation for the materials in the sales order stock

• When you are using the cost-of-sales accounting method and want to post the cost of sales to Financial Accounting before results analysis at the end of the period.

• When you want to use standard costing

If you are using external procurement with a nonvaluated sales order stock, you can update the costs to the sales order item either when the goods are received or when the invoice is received:

• Costs updated when goods received

• Costs updated when invoice received

You control whether the sales order item is debited with actual costs when the goods are received or when the invoice is received in Customizing for Product Cost by Sales Order under Control Parameters for Sales-Order-Related Production ® Check Account Assignment Categories with the indicator GR non-valuated.

In repetitive manufacturing environments with a nonvaluated sales order stock, the system generates a planned order for the sales order item. This planned order is assigned to the sales order item and contains a reservation for the customer requirement. When a goods receipt for the sales order item is entered, it is debited with the actual costs of the material components listed in the planned order. You enter this goods movement in the Repetitive Manufacturing menu.