Multiple Valuation Approaches in Overhead Cost Controlling 

Use

You have the option of working with multiple value flows.

For information about the basic business principles for multiple valuation approaches in the system and about portraying multiple valuation approaches in Controlling, see the SAP-Library under Accounting →  Enterprise Controlling (EC) → Profit Center Accounting → Multiple Valuation Approaches/Transfer Prices or Accounting → Financial Accounting → General Ledger Accounting (New) → Business Transactions → Multiple Valuation Approaches/Transfer Prices

You make the required settings for using multiple valuations in Customizing under Controlling → General Controlling → Multiple Valuation Approaches/Transfer Prices or Financial Accounting (New) → General Ledger Accounting (New) → Business Transactions → Multiple Valuation Approaches/Transfer Prices.

This section explains the aspects of multiple valuation approaches that are relevant for Overhead Cost Controlling.

Features

Value Flow

Distribution, Assessment, and Periodic Reposting

Distribution, assessment, and periodic repostings are executed for actual data and in parallel for all valuations. The costs to be allocated are taken from the relevant valuation. The values of the operational valuation are used as the tracing factor. The allocated values can vary from one another in the different valuations.
The assessment of overheads from cost centers to Profitability Analysis (CO-PA) occurs in two valuation approaches: the legal valuation approach and the profit center valuation approach.

Internal activity allocation

Internal activity allocations are executed in the operational valuation. The plan price used for the allocation is valid for all valuations. During a later phase, it is possible to use different (manual) plan prices for the different valuations, dependent on the receiver.

Actual price calculation and revaluation on orders is possible in all valuation views. The system distributes the actual costs to activity types on the basis of the planning in the operational valuation.

Accrual and Overhead

The operational valuation forms the basis for accrual calculation and overhead rates. The amounts calculated are valid for all valuations.

Settlement

Settlement occurs in parallel in all valuations, with the exception of settlement to fixed assets and profitability segments. For settlement to fixed assets, the system uses the company code currency. For settlement to Profitability Analysis, it uses the operational valuation. Line item settlement to a fixed asset is possible only if you use the company code valuation as your operational valuation.

Reposting

You repost a document (with references) in each valuation for the amount updated when the document was originally posted.

Reposting of values is not possible for multiple valuation approaches.

Documents and Line Items

When you post a document, the system writes separate line items for every valuation. All the line items belong to the same document header.

Analysis and Information System

Variance calculation only takes place in the operational valuation.

The information system for Overhead Cost Controlling (CO-OM) can call up every valuation. The system only displays a field that is ready for input in the selection screen for the valuation if you have activated the update of multiple valuation approaches in at least one of the controlling areas of the current client. For more information, see Accounting → Controlling → Cost Center Accounting → Information System for Cost Center Accounting → Report Definition → Report Painter). In reporting, you can make target/actual comparisons between plan values in the operational valuation and the actual values in other valuations.

Availability Control

Commitments are only executed with the operational valuation.

Active availability control compares the actual values of the operational valuation with the released budget. Therefore, availability control takes place in the operational valuation.

Reconciliation with Financial Accounting

You can use multiple valuation approaches either in classic Profit Center Accounting (EC-PCA) or in New General Ledger Accounting, which incorporates Profit Center Accounting as an integral part. This has the following consequences for Financial Accounting:

If you use classic Profit Center Accounting, all valuations are updated in the reconciliation ledger. When you enter reconciliation postings, the system reports the values to Financial Accounting in all valuations. However, it does not include valuations that are not made in Financial Accounting. For more information, see the SAP Library under Accounting → Controlling → Cost Element Accounting → Transfer Prices in the Reconciliation Ledger.

If you use Profit Center Accounting within the framework of New General Ledger Accounting, the values from Controlling are transferred directly to General Ledger Accounting via real-time integration. For more information, see the documentation in the SAP Library under Accounting → Financial Accounting → General Ledger Accounting (New) → Configuration → Real-Time Integration of Controlling with Financial Accounting.

By default, reconciliation reports and cost flow reports display the values in the company code valuation.