Executing Balance Sheet Valuation 

Use

With internationally accepted accounting principles (IAS, US-GAAP) you can valuate your inventories at the end of the period based on different approaches and for different purposes.

The balance sheet valuation function in Inventory Accounting provides different procedures and methods for the periodic valuation of inventories:

·        FIFO Valuation

·        Market Price Analysis

·        Lower of Cost or Market

·        Flat-Rate Writedown Based on Range of Coverage

Prerequisites

You have implemented Inventory Accounting.

You have the necessary authorizations for balance sheet valuation.

You have created rules for balance sheet valuation.

You have prepared data in the intermediate layer for balance sheet valuation.

If you want to use your own price types, you must have created them in the valid namespace (namespaces 0 and 1 are preassigned) and also for the standard price types that cannot be changed under Price Type Master Data and Price Type Control (transaction UAVPL).

Procedure

...

       1.      You are on the initial screen for executing balance sheet valuation (transaction FAIB03). Enter the selection criteria for the company code (required), plant, and material.

¡        Parameters

Enter the posting period, the fiscal year, and the valuation procedure, and select a price variant you have defined.

¡        Processing Options

You can run the job in the background by selecting Background Processing. This improves system performance. Test Run is selected as a default. If you select Detailed Lists the subsequent screen displays a detailed list, otherwise you only receive a message log.

       2.      Choose  with quick info Execute.

       3.      Depending on your settings, either the basic list or the detailed list appears.

¡        If you selected the FIFO procedure under Parameters, a Detailed List for Balance Sheet Valuation: FIFO appears.

¡        If you selected the Market Price Analysis procedure under Parameters, a Detailed List for Balance Sheet Valuation: Market Price Analysis appears.

¡        If you selected the Lowest Value procedure under Parameters, a Detailed List for Balance Sheet Valuation: Lowest Value appears.

¡        If you selected the ROC procedure under Parameters, a Detailed List for Balance Sheet Valuation: Range of Coverage appears.

Result

The prices shown in the detailed lists are also shown in Display Material Prices (transaction FAIV03) sorted by price type.