Editing the Rule for Balance Sheet Valuation 

Use

To be able to execute balance sheet valuation, you must first define a rule that specifies the company code, valuation procedure, and price variant. The following three balance sheet valuation programs are based on this rule:

·        Prepare Market Prices (transaction FAIB04)

·        Execute Balance Sheet Valuation (transaction FAIB03)

·        Balance Sheet Values by Account (transaction FAIB05)

Prerequisites

You have implemented Inventory Accounting.

You have the necessary authorizations for balance sheet valuation.

Procedure

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       1.       You are on the initial screen for creating a rule for balance sheet valuation (transaction FAIB01). Here you can create a new rule or modify an existing rule.
To create a new rule:
Enter a company code (mandatory). The number of tabs in the lower part of the screen changes depending on which procedure you select for balance sheet valuation.

If you select Market Prices, the tabs displayed are, at most:

§         Price Sources

§         Invoices

§         Purchase Orders

§         Info Records

§         Scheduling Agreements

§         Contracts

§         Sales Market

If you deselect any of the standard indicators for the Procurement and Sales Market, fewer tabs are displayed accordingly.

Specify the price variant and enter a description.

For the procedures Lowest Value, Balance Sheet Values, and Market Price Analysis, you need to specify the prices and price relationships. For the procedure Balance Sheet Valuation Based on Range of Coverage, you need to specify prices, weighting factors, writedown percentages, exceptions, and the valuation level. For the FIFO procedure you need to specify prices and tolerances.

       2.      Make the required entries on each tab page. Each tab page contains information on the time period for which the data is read (Number of Past Periods and Number of Future Periods), the Sort Strategy, and how the price should be calculated from the data (Exchange Rate Comparison, Number of Averaged Prices).

¡        Number of Past Periods and Number of Future Periods defines the time interval (relative to the selected period) to which you want the rule for balance sheet valuation to apply.

For July 2005 (07/2005), you enter the Number of Past Periods as 6 and Number of Future Periods as 3. The system then includes the periods from February to October 2005 (02/2005 - 10/2005).

If you want to include the selected month itself in balance sheet valuation, you specify the Number of Past Periods as 1 for that month.

¡        The Sort Strategy allows you to sort the data by the lowest, highest, or last price in the time interval.

¡        The Exchange Rate Comparison determines which exchange rate is used to convert documents in foreign currencies. In the standard configuration, the average exchange rate is used. You can also define new exchange rate types in Customizing.

¡        Number of Averaged Prices smoothes out the indicated number of alternative prices and is based on the selected time interval and the Sort Strategy.

       3.      Save your entries with  with quick info Save.

Result

The rule for balance sheet valuation has now been created and is available for the functions Prepare Market Prices (transaction FAIB04), Execute Balance Sheet Valuation(transaction FAIB03), and Balance Sheet Values by Account (transaction FAIB05).

You can display the rule for balance sheet valuation. Choose  with quick info Display Rules (or transaction FAIB07), specify the valuation procedure, and choose  with quick info Execute. The system displays a list with the rules for balance sheet valuation.

You can change a rule. To do so, proceed as follows:

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       1.      Access the rule with  with quick info Other Rule.

       2.      Use input help to enter the company code, procedure, and price variant. Confirm your entries.

       3.      The screen with the rule is displayed. You can now make changes.

       4.      Save your changes with  with quick info Save.

You can delete a rule. To do so, proceed as follows:

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       1.      Access the rule with  with quick info Other Rule.

       2.      Use input help to enter the company code, procedure, and price variant. Confirm your entries.

       3.      The screen with the rule is displayed. You can delete the rule with  with quick info Delete.