Material Valuation with Surcharges and Reductions (SAP Library

Material Valuation with Surcharges and Reductions

Use

In addition to the manual price maintenance and the grid-/category dependent product costing (see Product Costing with Split Valuation), you can valuate the valuation types of a material with help of surcharge and reduction percentage rates.

With the corresponding definition of the valuation types of a product (see Definition of Valuation Types), you can use the valuation functions at the same time. For example, you can map the valuation of dimensions using the valuation type-dependent product costing and can consider the category-dependent cost differences with surcharge and reduction percentage rates.

However, the technique of the surcharge and reduction percentage rates is only suitable

if you want to handle all the valuation variances within the grid-/category values of a finished product at the same time and

if you do not want to carry out a cost object controlling for the grid/category values of the affected valuation type.

Features

For the valuation with surcharges and reductions, you can define percentage rates and keys in Customizing. You can assign the defined surcharge and reduction percentage rates (keys) to the valuation types of any number of materials.

The percentage rates refer to the results of the respective standard cost estimate. If you mark and release the standard cost estimate the system increases or decreases the costing result and uses the price determined by the surcharge as the standard price of the respective valuation type.

Example

You have a material that with qualities (categories) 1 and 2. Quality 2 is never planned but can result from the production process. It is then sent to the warehouse as a final delivery (the category changes during goods receipt to a production order).

Quality 2 should be valuated in stock with a lower price than quality 1. You must combine the stock keeping units of quality 1 and 2 to one valuation type each. For the valuation type "quality2" you can specify that its valuation price is 10% below the price that was determined by the standard cost estimate.

With marking and releasing the standard cost estimate for the valuation type "quality2", the system uses the costing result of valuation type "quality2" with a reduction of 10% as standard price.

Caution

The technique of the surcharge and reduction percentage rates should only be used for the material valuation. A cost object controlling is not possible for the respective valuation types, because the defined surcharges are not considered during the creation of the standard cost estimate and the modified standard cost estimate in the production order. The saved results of the standard cost estimate and the modified standard cost estimate of a production order are solely based on the explosion of the quantity structure (bill of material, routing) and thus deviate from the standard price of the product. When settling a production order there can be variances that are not production- or MRP-related.

You should therefore use the surcharge technique only for exceptions (see example). For the general grid value-/category-dependent determination of the standard price of finished products, you should use the released standard cost estimate at valuation type level.