Parallel Accounting in Materials Management 

Use

In Materials Management, you can apply various balance sheet valuation procedures for different accounting principles. The difference between the current stock value and the stock value determined during valuation with one of the balance sheet valuation procedures is shown in a report. On the basis of this, you can manually post the differences to additional accounts or in parallel ledgers.

Automatic postings following price changes cannot be made to additional accounts or in parallel ledgers.

If you want automatic postings to be made to additional accounts or in parallel ledgers, you can use the alternative valuation run.

Features

●      Balance Sheet Valuation

Within a posting period, the material valuation is determined by price control for the material. For balance sheet valuation, the system determines prices on the basis of different valuation procedures and writes the prices in the material master to the tax-based or commercial price fields or to the fields of the valuation alternatives.

When the balance sheet price calculated differs from the current stock value of a material, you can use this as the basis for changing the material price or make adjustment postings to a balance sheet account in Financial Accounting (FI). For more information, see Generate Balance Sheet Values per Account.

 

●      Inventory Cost Estimates

If you use standard costing, you can use inventory costing as an additional valuation method for the balance sheet valuation of your self-constructed products. Separate inventory cost estimates - based on the key date - are created for the different accounting principles. In the material master, the results of inventory costing are written to the tax-based or commercial price fields.

●      Alternative Valuation Run

If you use actual costing, you can also use the alternative valuation run as the valuation method for the balance sheet valuation of your self-constructed products.

In actual costing, the material valuation during the period is based on a period price in the material ledger. Alternative valuation runs specific to the key dates used are created for the balance sheet valuation. This alternative valuation runs are based on actual quantity flows, which can be revaluated. The alternative valuation run calculates the difference between the current valuation of the materials and the valuation of the alternative valuation run. The difference is posted to an adjustment account as a delta and is reversed with the closing posting for the material ledger in the next period. You can transfer the results of alternative valuation runs to Financial Accounting.

You can perform different alternative valuation runs for parallel accounting. You can post the results of the alternative valuation runs to additional accounts or in parallel ledgers.

●      Multiple Valuation of Cost of Goods Manufactured

You can valuate the cost of goods manufactured using multiple accounting principles. The accounting principles determine the valuation approaches

○       In Asset Accounting and in Cost Center Accounting

○       For actual price calculation

○       For the cost of goods manufactured and the balance sheet values.