Presentation on theme: "Inventory Valuation for Year End Closing"— Presentation transcript:
1Inventory Valuation for Year End Closing SAP Best Practices
2Purpose, Benefits, and Key Process Steps Within the inventory valuation at the year end, the valuation of the material has to be reviewed considering several valuation approaches. The single-level materials could be determined by lowest value on base of the market price. The produced materials should also be valuated with the lowest value by using the inventory costing with own setting for the valuation variant.BenefitsValuation can consider the valuation request on the basis of local requirements for valuation approaches.Key Process StepsStock valuation for raw materials, packaging materials and trading goods on base of lowest possible value.Inventory valuation for semi-finished and finished materials on base of local requirements for valuation approaches.Stock value adjustment.
3Required SAP Applications and Company Roles Enhancement package 6 for SAP ERP 6.0Company RolesWarehouse ManagerEnterprise ControllerProduct Cost ControllerGeneral Ledger Accountant
4Detailed Process Description Stock valuation, using lowest value principle for raw materials, packaging materials and trading goods.Additional devaluations by movement rate.Inventory costing for finished and semi-finished products, in accordance with the lowest possible value principle.Stock value reporting in form of a comparison analysis.Manual stock value adjustment posting in the Financial Accounting component.
5Inventory Valuation for Year End Closing Process Flow DiagramInventory Valuation for Year End ClosingEventProcurementValuationPostingPlanningWarehouse ManagerDetermination of Lowest Value for Raw Materials, Packaging Materials and Trading Goods, on the Basis of Market PricesProcurement of Raw Materials, Packaging Materials and Trading GoodsStock Valuation of Semi Finished and Finished Products – Determination of Lowest Value Using Inventory CostingAnalyzing Stock Valuation for Materials Using Price Comparison for Each Material Stock Account / Material Type / MaterialEnterprise ControllerCopy Inventory Controlling VersionPost Book Depreciation as planned valuesRevaluation: Set Old Posted Values Depreciation to ZeroActivity Price PlanningPlan Based on CapacityPlan ReconciliationChange to Calculate Rates Based on Capacity (Optional)Product Cost ControllerPrice Update - MarkingPlan Price CalculationGeneral Ledger AccountantStock Value Adjustment
6Legend Symbol Description Usage Comments Symbol Description Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.Role band contains tasks common to that role.External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario. Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.Connects two tasks in a scenario process or a non-step eventBusiness Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenarioDoes not correspond to a task step in the documentUnit Process: Identifies a task that is covered in a step-by-step manner in the scenarioCorresponds to a task step in the documentProcess Reference: If the scenario references another scenario in total, put the scenario number and name here.Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario hereProcess Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.Does not usually correspond to a task step in the document; Reflects a choice to be made after step executionSymbolDescriptionUsage CommentsTo next / From last Diagram: Leads to the next / previous page of the DiagramFlow chart continues on the next / previous pageHardcopy / Document: Identifies a printed document, report, or formDoes not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow linesFinancial Actuals: Indicates a financial posting documentBudget Planning: Indicates a budget planning documentManual Process: Covers a task that is manually doneDoes not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.Existing Version / Data: This block covers data that feeds in from an external processDoes not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow linesSystem Pass / Fail Decision: This block covers an automatic decision made by the softwareDoes not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.Diagram Connection<Function>External to SAPHardcopy / DocumentFinancial ActualsBusiness Activity / EventBudget PlanningUnit ProcessManual ProcessProcess ReferenceSub-Process ReferenceExisting Version / DataProcess DecisionSystem Pass/Fail Decision