Skip to Content

Real-time valuation of actual data for COPA

Hi,

I see there is a point of valuation 01 for Real-time valuation of actual data in KEPC. I just wonder why do we need this real time valuation because COPA Cogs is posted from VPRS condition type. In this case why would anyone want to use point of valuation of 01 to revalue the VPRS cost.

I do understand the periodic revaluation makes more sense because we can revalue the COGS based on ML actual price. What i don't understand is the purpose of Real-time valuation of actual data.

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

2 Answers

  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Jan 22, 2014 at 07:59 AM

    Hi..

    While some company only want to display the total value(“VPRS”) of goods as cost of sales,

    Other compnay want to display a much more detailed breakdown of the cogs as below picture.

    So, We need Valuation Using Material Cost Estimates to get standard and actual cost component Split for COGS at point of valuation 01 for Real-time and valuation 02 for periodic.

    To analysis the variance between standard cost and actual cost(PUP * sales qty) base on sales qty and revenue, we need the standard COGS which is valuated by your sales quantities using a standard price determined with a standard cost estimate, and the actual COSG which is valuated by them using actual cost estimates from Material Ledger.


    yy.png (32.3 kB)
    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Jan 22, 2014 at 07:03 AM

    Hi Sanjay

    PV=01 is not meant to revalue the COGS, but to VALUATE it

    VPRS gives you a single number, where as PV=01 helps to valuate Qty Sold with Cost component Split

    In short, VPRS gives you 100 $ was your COGS and PV=01 setting in KEPC helps you get break-up of this 100 $ as (70 Raw Mat, 20 Labor and 10 Overheads)

    Hope this helps

    Ajay M

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.