518485 – FAQ: Valuation of goods movements




Symptom

This note contains a list of frequently asked questions relating to the valuation of goods movements.
For questions and answers which refer to the valuation for the goods receipt for purchase orders, refer to Note 518368 FAQ:Valuation for purchase order, for topics which especially deal with goods receipts in currencies other than the local currency, read Note 518114 FAQ: Goods movements in foreign currency.

Questions:

    1. How should the valuation level be set in a R/3 System?
    2. How is the standard price calculated for a just created valuation segment?
    3. Is it possible to change the valuation control subsequently to split valuation?
    4. How is the moving average price calculated?Which value has the moving average price if the stock is 0?
    5. How can unrealistic values be prevented for the moving average price?How is it possible to avoid the moving average price from being set to 0?
    6. How is the value of a stock posting line (BSX) calculated for a material with standard price?Why is it possible that price differences occur during the reversal of a material document?
    7. With which value is a goods movement posted for a material with moving average price?
    8. How does the valuation of a material document which is posted to the previous period differ from a posting to the current period?
    9. Why are transfer postings, depending on the movement type, sometimes time valuated with the price of the issuing valuation segment and sometimes with the price of the receiving valuation segment?What can you do if the system generates error message C+121 (when material ledger is used)?
    10. The moving average price is extremely large or small.What is the reason?
    1. 11. You use multiple currencies (additional currencies for the company code) in the FI module, however you do not use a material ledger.If you reverse a material document, under circumstances a different exchange rate is used for the multiple currencies, that is in the CO document, than for the original goods movement. Why is this so?

Answers

    1. 1.

Question:

    1. How should the valuation level be set in a R/3 System?

Answer:

    1. Read both the R/3 Customizing Implementation Guide and Note 8696.
    1. ——————————
    1. 2.

Question:

    1. How is the standard price calculated for a just created valuation segment?

Answer:

    1. Read Note 109731.
    1. ——————————
    1. 3.

Question:

    1. Is it possible to change the valuation control subsequently to split valuation?

Answer:

    1. It is only possible to subsequently change the valuation control by spending a lot of time and effort.For this read the R/3 Customizing Implementation Guide.
    1. ——————————
    1. 4.

Question:

    1. How is the moving average price calculated?Which value has the moving average price if the stock is 0?

Answer:

    1. The moving average price is the total of the values which are posted to the material (material documents, invoices, price changes) divided by the stock.If the stock is cleared completely, then the value is also cleared completely.The price remains unchanged here, a following receipt without external value is valuated with this price.
    1. ——————————
    1. 5.

Question:

    1. How can unrealistic values be prevented for the moving average price?How is it possible to avoid the moving average price from being set to 0?

Answer:

    1. In Customizing, you can set tolerance limits for moving average price variances (Transaction OMC0).Generally we recommend that you use moving average price control for externally procured materials, and standard price materials for materials produced in-house.
    1. Situations in which major deviations can occur for the moving average price can be found in Notes 88305, 88320 and 209864. The influence of rounding effects is described in Note 79483. The influence of rounding effects is described in Note 79483.
    1. ——————————
    1. 6.

Question:

    1. How is the value of a stock posting line (BSX) calculated for a material with standard price?Why is it possible that price differences occur during the reversal of a material document?

Answer:

    1. The value of the stock posting is calculated proportional to value for the goods issue, for the goods receipt it is calculated proportional to price (Note 216080).This can lead to small price differences during the reversal.Rounding differences are also possible.
    1. Notes on this topic: 71124, 212286, 216080, 216094.
    1. ——————————
    1. 7.

Question:

    1. With which value is a goods movement posted for a material with moving average price?

Answer:

    1. The external value is used provided the current stock situation allows it.If no external value is predefined, the stock posting is calculated proportional to value.
    1. If you have negative stock, the valuation is executed with a similar logic as for a material with standard price in order to avoid unrealistic prices.
    1. Notes on this topic: 196505, 212286.
    1. ——————————
    1. 8.

Question:

    1. How does the valuation of a material document which is posted to the previous period differ from a posting to the current period?

Answer:

    1. In the previous period, the price or the stock situation can differ from the current period in such a way that a goods movement is valuated differently than it would in the current period.In this case two accounting documents are generated:
    1. For the previous period, the system generates a document with the posting lines of the stock posting which are to be expected for the respective constellation in the previous period.For the current period, the quantity moved is revaluated (UMB) so that the valuation for this quantity corresponds to the previous period.
    1. Notes on this topic: 196505, 212286.
    1. ——————————
    1. 9.

Question:

    1. Why are transfer postings, depending on the movement type, sometimes time valuated with the price of the issuing valuation segment and sometimes with the price of the receiving valuation segment?What can you do if the system generates error message C+121 (when material ledger is used)?

Answer:

    1. Read Note 180503.
    1. ——————————
    1. 10.

Question:

    1. The moving average price is extremely large or small.What is the reason?

Answer:

    1. This effect can occur as a logical consequence, in business and posting terms, of an unfavorable sequence of postings with an externally predefined value and/or of invoices with price variances.
    1. Notes on this topic: 95379, 185961 and 209864.
    1. ——————————
    1. 11.

Question:

    1. You use multiple currencies (additional currencies for the company code) in the FI module, however you do not use a material ledger.If you reverse a material document, under circumstances a different exchange rate is used for the multiple currencies, that is in the CO document, than for the original goods movement. Why is this so?

Answer:

    1. The translation into the additional local currencies takes place by means of the settings in the Customizing for financial accounting (Financial Accounting -> Financial Accounting Global Settings -> Company Code -> Multiple Currencies -> Define Additional Local Currencies).The rates for the source document and the reversal can differ if the document date or the posting date of the two material documents is different.If the ‘translation date type’ parameter is set to 3 (Translation date), this is identical in the event of a goods movement using the posting date.
    1. Notes on this topic: 335608, 518114.
    1. —————

Other Terms

FAQ, F+Q, MMVAL, PRD, AUM, WA01, ML, BWTTY, VPRSV, LBKUM, SALK3, MBEW, C+121, BUDAT, BLDAT

Reason and Prerequisites

Solution

Software Components
Software Component From To And Subsequent
This document is not restricted to any software component
References
Attributes
Name Value
Other Components MM-IM-GF-POVL Purchase Order Valuation
Other Components MM-IM-GF-CURR Goods Movements in Foreign Currencies

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