Example for Actual Cost Distribution Using
Equivalence Numbers
Order 1100 (with Fixed-Price Joint Product)
Business Transaction Category |
Partner Object |
Quantity |
Value |
Goods issue |
Inventory of material A |
10 pc |
€ 100 |
Activity allocation |
Cost center/activity type 1000/001 |
20 min |
€ 40 |
Overhead |
Cost center 2000 |
- |
€ 50 |
Goods receipt |
Inventory of material B1 (joint product) |
2 pc |
€ –80 |
Goods receipt |
Inventory of material B2 (joint product) |
3 pc |
€ –50 |
Goods receipt |
Inventory of material B3 (fixed-price joint product) |
1 pc |
€ –10 |
Balance |
|
|
€ 40 |
Settlement of order 1100 to inventory of materials B1, B2, and B3:
Order debits: 100 + 40 + 50 = 190
Distribution of debit for fixed-price joint product in the amount of the delivery value:
10 is debited to material B3
Remaining debit on the order:
190 – 10 = 180
Equivalence numbers for the remaining joint products from master data of the order:
Material B1: 2
Material B2: 1
Distribution of the
remaining debit based on the distribution factor at a ratio of
2 : 1
2/3 x 180 = 120 is debited to material B1
1/3 x 180 = 60 is debited to material B2
Order credits (goods receipts) not distributed:
–80 is debited to material B1 → the settlement amount is 120 – 80 = 40 to material B1
–50 is debited to material B2 → the settlement amount is 60 – 50 = 10 to material B2
–10 is debited to material B3 → the settlement amount is 10 – 10 = 0 to material B3
Settlement Result
Business Transaction Category |
Sender |
Receiver |
Amount |
WIP clearing |
Order 1100 |
Inventory of material B1 |
€ 40 |
WIP clearing |
Order 1100 |
Inventory of material B2 |
€ 10 |
Balance |
|
|
€ 50 |
· The settlement amount for fixed-price joint products is always zero, so no posting record is generated.
· You may not use fixed-price joint products as the only settlement receivers. There has to be at least one receiver to which the full remaining balance can be settled.
· It is also possible for both joint production and individual batch valuation to occur in the same order. In this case, the costs are first distributed in accordance with the settlement rule for joint production. Quantity-based distribution for the individual batches is then executed (if applicable).