Valuation in Line With German Commercial Code

The valuation procedure in line with the German Commercial Code described in the following is based on the Customizing settings for the Results Analysis and Valuation of Semi-Finished Constructions .For more information see Preparatory Tasks .

Results Analysis Category

Results analysis categories differentiate key figures calculated in the results analysis.For example, assets make up one results analysis category.

Line ID

One purpose of line IDs is to structure input data.This enables you, for example, to separate costs that must be capitalized and costs that cannot be capitalized.Line IDs can also be used to further subdivide certain results analysis categories.

You should have defined the following line IDs for the following valuation procedure.

Input data	Line ID
Revenue	ERL
Capitalized costs	KAV
Costs that cannot be capitalized	KNA

Key figures for GCC valuation	Line ID
Reduction in assets due to incurred loss	BVL
Reduction in assets due to imminent loss	BDV

Key figures

For the WBS element to be valuated, the following key figures are updated in the GCC valuation:

This graphic is explained in the accompanying text.

In the database the key figures are represented with the following signs:

Costs with a plus sign

Assets, revenue and work values with a negative sign

For more information, see Results Analysis Indicators

To simplify description of the algorithm, assume that all indicators have plus signs.

The indicator Split Creation/Usage influences how the key figures are updated.

If the indicator is flagged, the reserves for imminent loss can be displayed separately according to creation and usage for different cost elements.A separation of assets is not possible.

If the indicator is not flagged, it is not possible to separate reserves for imminent loss or assets.

This graphic is explained in the accompanying text.

The indicator Split Creation/Usage is maintained for the results analysis version in the extended tax.For more information, see Defining Versions .

If the indicator Split Creation/Usage is not flagged in the results analysis version, the following key figures are updated:

Key figure	Results Analysis Category	Line ID
Non-reduced assets (not yet reduced by actual loss and imminent loss) <=0	WIPA The assets for the balance sheet display are shown as the balance for the results analysis category WIPA.	KAV
Reduction in assets due to actual loss >=0 In contrast to the other key figures, only one annual value is displayed, because the actual loss for the previous year is not entered for the non-reduced assets.	WIPA	BVL
Reduction in assets due to imminent loss >=0	WIPA	BDV
Capitalized profit (reduced due to imminent loss) <=0 This means profit that will probably be made when costs that are still part of assets start affecting net income.	CAPP
Reserves for imminent loss (not reduced by CAPP) >=0	RIML
Reduction in imminent losses due to capitalized profit <=0	RDVA
Down payments to be capitalized >=0 This means the proportion of the down payments received amounting to the assets for the balance sheet display.	ANKB
Down payments not to be capitalized >= 0 This means the proportion of down payments received that exceeds the actual assets for the balance sheet display.	ANUS
Work value <=0	ERER
Cost of sales for costs which can be capitalized >=0	KDUA	KAV
Cost of sales for costs not to be capitalized >=0	KDUN	KAN
Invoiced work value <=0	BWER	ERL

If the indicator Split Creation/Usage is flagged in the results analysis version, the following key figures are updated:

Key figure	Results Analysis Category	Creation/Usage	Line ID
Non-reduced assets (not yet reduced by actual loss and imminent loss) <=0	WIPA The assets for the balance sheet display are shown as the balance for the results analysis category WIPA.	B	KAV
Reduction in assets due to actual loss >=0 In contrast to the other key figures, only one annual value is displayed, because the actual loss for the previous year is not entered for the non-reduced assets.	WIPA	B	BVL
Reduction in assets due to imminent loss >=0	WIPA	B	BDV
Capitalized profit (reduced due to imminent loss) <=0 This means profit that will probably be made when costs that are still part of assets start affecting net income.	CAPP
Creation of reserves for imminent loss (not reduced by CAPP) >=0	RIML	B
Usage of reserves for imminent loss (not reduced by CAPP) >=0	RIML	V
Reduction in imminent losses due to capitalized profit <=0	RDVA	B
Down payments to be capitalized >=0 This means the proportion of the down payments received amounting to the assets for the balance sheet display.	ANKB
Down payments not to be capitalized >= 0 This means the proportion of down payments received that exceeds the actual assets for the balance sheet display.	ANUS
Work value <=0	ERER
Cost of sales for costs which can be capitalized >=0	KDUA		KAV
Cost of sales for costs not to be capitalized >=0	KDUN		KAN
Invoiced work value <=0	BWER		ERL

Algorithm

The calculation methods are differentiated by the status of the WBS element to be valuated.

Status: Released (RLSD)

This status identifies WBS elements that can be assigned to an account.

Status: Technically completed (TECO)

This status is for WBS elements that are fundamentally completed but are not to be archived yet.Unforeseen costs can still be posted.

For more information on system status see the SAP Library under Project System → Structures → Status Management.

If the valuation has RELEASED status, the system creates the key figures in the following table.Note that some key figures are help parameters for understanding the calculation:

Current stand

Key figure	Calculation guidelines
Cumulative production costs to be capitalized	Actual costs to be capitalized for the current year up to the valuation period + assets for balance sheet display + reduction in assets due to imminent loss for the previous year. If the cumulative production costs to be capitalized are negative, the system displays a controllable message (message /SAPPCE/PNV 303) and sets the cumulative production costs to be capitalized to 0. You define in Customizing whether the system should update or cancel the valuation. For more information on messages see Defining Message Control .
Work value	Total work value up to the valuation period as per construction progress report.
Invoiced work values	Actual revenue up to valuation period
Non-invoiced work value	Work value – invoiced work value If the amount without plus or minus sign for the non-invoiced work value is less or equal to the rounding error, the system sets the figure for the non-invoiced work value to 0 without displaying a system message. There is normally a difference between the invoiced work value and the work value. The rounding error specifies the maximum difference amount possible when the invoiced work value and work values are compared. You define the rounding error under Additional Settings for Valuation of Semi-finished Constructions . If non-invoiced work value is negative and less than the negative rounding error, the system displays a controllable message (message /SAPPCE/PNV 304) and sets the non-invoiced work value to zero.
Proportional costs to be capitalized for non-invoiced work value (non-reduced assets) Reduction in assets due to incurred loss	Cumulative production costs to be capitalized * non-invoiced work values / (invoiced work value for previous year up to valuation period + non-invoiced work value), if denominator > 0 0, if denominator <= 0 If the denominator (in other words the total of the invoiced work value for the previous year up to the valuation period and the non-invoiced work value) is negative, the system displays a controllable message (message /SAPPCE/PNV 305). If the proportional costs to be capitalized exceed the non-invoiced work value, the assets are reduced by the difference.The difference is displayed as reduction in assets due to incurred loss.
Capitalized profit	Non-invoiced work value – Assets (>=0)
Cost of sales for costs which can be capitalized	Actual costs that can be capitalized – Proportional costs to be capitalized for non-invoiced work values + reduction in assets due to incurred loss
Cost of sales for costs which cannot be capitalized	Actual costs that cannot be capitalized

Future expectations

Key figure	Calculation guidelines
Planned profit for remaining plan	Difference between the total of the planned revenues and planned costs for the periods following the valuation periods.
Reduction in imminent losses due to capitalized profit	If the planned costs are greater than the planned revenues, the planned loss is reduced by the capitalized profit.
Reduction in assets due to imminent loss	If the planned costs are greater than the planned revenues, the capitalized profit is reduced by planned loss.
Reserves for imminent loss	If the planned lost is greater than the capitalized profit, reserves for imminent loss are displayed for the remaining planned losses.
Assets for balance sheet display	Assets for balance sheet display = assets after reduction due to incurred loss and planned loss
Down payment to be capitalized	Down payments up to the value of assets in balance sheet display (The assets for the balance sheet display are compared with the down payments.)
Down payments not to be capitalized	Down payments that exceed the assets in the balance sheet display (The assets for the balance sheet display are compared with the down payments.)

If the valuation has status TECO only the following key figures are displayed:

Key figure	Calculation guidelines
Work value	Work value up to the valuation period as per construction progress report.
Invoiced work values	Actual revenue up to valuation period
Cost of sales for costs which can be capitalized	Actual costs capitalized by the valuation period
Cost of sales for costs which cannot be capitalized	Actual costs that cannot be capitalized by the valuation period

All other key figures are 0.