Material valuation

• Stock posting
• Revaluation postings
• Negative stocks
• Price differences and exchange rate differences
• Transfer postings 
• Determination of the clearing entry during goods receipt for a purchase order
• Determination of the debit entry of a goods receipt for a purchase order item with account assignment
• Determination of the credit posting to order during a goods receipt for a production order

Stock posting

Value of the goods movement: With the majority of goods movements, a corresponding value flow is specified with the quantity flow. This goods movement value generally corresponds to the value from the stock posting (e.g. for consumptions); however, the value can also be determined via a purchase order price (goods receipt for purchase order), originate from the plan credit of a production order (goods receipt for production order) or simply be specified externally as a local currency amount (e.g. for a baseline inventory at the time of production startup).

• For materials controlled by the moving average price, the stock posting is always determined proportionally to the value.
• For standard-price-controlled materials, additions are posted proportionally to the price while withdrawals are posted proportionally to the value.

....

• Formula for the value-proportional value determination:
• Value of the stock posting = (total value of the stock * quantity) / total valuated stock
• Formula for the price-proportional value determination:
• Value of the stock posting = (standard price * quantity) / price unit

Revaluation postings

If a goods movement is posted in the previous period, the stock posting amount determined for the current period may differ from that in the previous period. If this is the case, you must create a revaluation document in the current period. Keywords for an SAP Notes search: UMB and MMVAL

0196505

Negative stocks

In the case of negative valuated stocks, particularly for materials controlled by moving average price, a special posting logic must be followed for the determination of the stock posting. Most important SAP Notes: 0196505Keywords for an SAP Notes search: BSX and MMVAL

Price differences and exchange rate differences

If the value of the good movement is different from the value of the stock posting, the difference is posted to a difference account regardless of whether it is a moving average price or standard price material.


During the goods receipt for a foreign currency purchase order, exchange rate differences can be posted
You post a goods receipt for a foreign currency purchase order without account assignment. Here, the system generates exchange rate differences and/or price differences.

Postings in local currency

Postings to the material stock account (BSX): GR quantity * standard price / price unit
during a reversal of a goods receipt: (Stock value * GR quantity) / total valuated stock

Postings to the GR/IR clearing account (WRX): Quantities of goods received are always valuated for the order price if an invoice does not yet exist for a quantity. However, if an invoice already exists for a GR quantity during goods receipt, goods receipt is valuated with the invoice price.

In foreign currency purchase orders, the valuation approaches in the purchase order or the invoices do not exist in local currency (they usually exist in purchase order currency). They are converted from the document currency into the local currency. The exchange rate of this translation can be determined at several positions.

• The exchange rate can be fixed in the purchase order header. This specification has contract character with the vendor and means that the fixed exchange rate should apply to this purchase order, that is, independently of the exchange rate currently maintained in the system.
• When an invoice is entered, an exchange rate is specified externally.

Exchange rate differences (KDM): The exchange rate differences result from the difference of the clearing value on the GR/IR clearing account (WRX) in document currency that is translated to the current exchange rate stored in the system in local currency from the clearing value in local currency that is determined with the conversion factor from the purchase order or the invoices.

(Price difference = GR/IR amount - stock value - exchange rate difference)

Price differences are posted to the GR/IR clearing account of the stock value if differences from the clearing value occur (for example, if the purchase order price differs from the standard price) or if an exchange rate difference posting is performed (in this case, price differences can also be posted for the moving average price materials).

Postings in document currency

Postings to the material stock account (BSX):  the valuation  in the material master in local currency (standard price, total value of stock) must be converted into document currency. This translation is   carried out on the posting date with the exchange rate type that is assigned to the FI document type used, that is, independent from the exchange rate defined in the purchase order! If no exchange rate type is assigned to an FI document type, the system uses exchange rate type M.

Postings to the GR/IR clearing account (WRX): The same as for local currency posting.

Exchange rate differences (KDM): Exchange rate differences cannot occur in purchase order currency.

Price differences (PRD): Price differences are posted if the stock value in document currency does not match the clearing value in document currency.

If the goods movement is for a purchase order with account assignment, no PRD or KDM lines will be generated.

Transfer postings

For transfer postings, the value of the goods movement is determined from the stock posting of the issuing stock.
Most important SAP Notes: 0071124, 0180503
Keywords for an SAP Notes search: AUM and MMVAL

Determination of the clearing entry during goods receipt for a purchase order

During goods receipt for a purchase order, the value of the goods movement is determined using the clearing of the GR/IR clearing account. If a quantity is already calculated at the time of the goods receipts, the GR/IR clearing account is balanced proportionally, meaning the value of the goods movement is determined by the invoice value; if no invoice is available for the goods receipt quantity, the goods receipt is calculated using the net purchase order price or order price.
Delivery costs for goods receipts are also determined using this same clearing logic. However, the clearing posting is made to a separate account.
Most important SAP Notes: 1915844, 0049995, 0191927
Keywords for an SAP Notes search: WRX and MMVAL

Determination of the debit entry of a goods receipt for a purchase order item with account assignment

The total of the amount posted for the GR/IR clearing account and the provisions for the delivery costs (if they exist) are posted for the account assignment of the purchase order item.

Determination of the credit posting to order during a goods receipt for a production order

During a goods receipt for a production order, the value of the goods movement is determined by crediting the production order. If a quantity of goods received has not yet been calculated, the order credit is determined from the plan credit. If the quantity of goods received has already been calculated, the order is credited for actual costs.

FAQ

Goods movements in foreign currency ( 518114 )

Q: How is the goods receipt valuated for a purchase order in foreign currency?
A: During the goods receipt to a purchase order in foreign currency, the purchase order currency is the transaction currency.

Q: Which exchange rate is used during goods receipt for a purchase order in foreign currency?
A: If the flag 'Exchange rate fixed' is set in the purchase order, the system uses this exchange rate.Otherwise, the calculation is carried out with the current exchange rate for the posting date.

Q: How are exchange rate differences between purchase order date, goods receipt and invoice receipt dealt with?
A: Exchange rate differences and price differences can be displayed separately in the accounting document.You can set the point in time for the determination of exchange rate differences in Customizing of the invoice verification (Materials Management -> Logistics Invoice Verification -> Incoming Invoice -> Configure How Exchange Rate Differences Are Treated).

How does the system carry out the conversion of the currencies for the goods receipt for a purchase order if a material ledger is used?

1686557 - Unexpected exchange rate difference during goods receipt

Транзакция OMRW ( T169P Parameters, Invoice Verification )
Treatment of exchange rate differences in the company code currency.
If you set this selection field then the settings in the ERD Setting column for this currency type are no longer relevant.

 
The system calculates and posts exchange rate differences between order-related goods receipts and invoices not just for materials with standard price, but also for:

• Materials with moving average price
• Account-assigned transactions
• Planned delivery costs

The valuation of the inventories or consumption is effectively done at the exchange rate for the goods receipt, and not at the exchange rate of the invoice. When you post the good receipts, the fixed exchange rate from the purchase order is not used, but the translation of the purchase order values to local currency is always done at the posting date of the goods receipt.

If you are using the material ledger with actual costing, the system does not include the posted exchange rate differences at period-end closing in the actual prices of the materials.

1. Customizing: in transaction OMRW "Treatment of exchange rate difference", the Field "ERD Setting" (table field T169P-XPLCU) is : blank
2. The fix exchange rate indicator in the purchase order (table field EKKO-KUFIX) is: blank
3. The currency in the purchase order is set, for example to USD
4. In transaction OBY6, the local currency is set to a different currency, for example to EUR
5. In transaction OB08, the related exchange rate is defined, for example to USD 1 = EUR 1.2347
6. A purchase order is created for example with 50 pieces of a material with an order price of 631.00 USD/piece, so the total PO amount is 31550.00 USD
7. Using the same example, the goods receipt shows a quantity of 50 pieces. The following exchange rate is stored at the time of the goods receipt in the system in transaction OB08: USD 1 = EUR 1.2347
8. Although the exchange rate hasn't been changed, the system will post to exchange rate difference account amounting to 0.01 EUR. This exchange rate difference is unexpected.

WRX	31.550,00-	USD	/	38.954,79-	EUR
KDM	0,00	USD	/	0,01	EUR

Due to compatibility reasons, the rounding caused by floating point value cannot be avoided. To avoid the exchange rate difference, you can split the quantity and carry out the partial goods receipt. In the above example, posting:

• Goods receipt with quantity 1
• Goods receipt with quantity 49

will lead to correct results.

Also the unexpected exchange rate difference generated by rounding can always be adjusted from FI side.

LMBGBFSU/ AUSGABE