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The Revaluation of Consumption step does not allocate price differences!!

Hi everyone,

According to our analysis, Activation of actual costing was customized on 3th August, 2016.

And we are trying to exceute “Revaluation of consumption” step, on 07 period(July) 2016.

The documents posted previously to the Actual costing activation is the main problem in our view.

So that cause to not allocate price differences when we execute “Revaluation of consumption step” for July.

There is no effect, when we execute ROC step for July.

Our price difference account is incredibly high, cause of that.

Is there any solution to get this problem over?

How can I allocate differences to consumption?

Refference; 2017745 - Not allocated price differences after Revaluation of Consumption step.

Thanks for help,

Regards,

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3 Answers

  • Best Answer
    Posted on Aug 15, 2016 at 03:48 PM

    Hi resul

    For July you must revaluate consumption at order level in period end closing...and after ML activation it is through ML if you have config revaluation at Actual costing

    Kamal

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    • Hi Owen,

      Thank you.

      I totally accepted that there is no solution.

      We ,intend to do some manuel posting in this process.

      Firstly, doing MR22 posting for 261 movement from raw material to finished goods.

      Then, sending the final product's price difference to consumption account based on material.

      Best Regards,

      Resul.

  • Posted on Aug 15, 2016 at 03:37 PM

    Hello,

    Please review the following information regarding revaluation of consumption.

    Price differences at Cumulative inventory line are distributed

    to Consumption and Ending Inventory in a first step.

    If Total Consumption = 0, all price differences will go to

    Ending Inventory.

    The system does not revaluate when total consumption = 0.

    For such a scenario, no revaluation of consumption will be run

    as per system design.The revaluation is done by two steps:

    1) Single level price determination distributes the cumulated

    price differences to ending inventory and total consumption line.

    2) Revaluation of Consumption then distributes the price differences

    from total consumption line to the individual consumption

    alternatives;

    In this case step 1) doesn't allocate any differences as total

    consumption quantity is zero.

    So step 2) has nothing to distribute.

    Unfortunately, there is this two step logic in the actual costing

    which means, first, the differences are distributed to the categories

    consumption and ending inventory, and after that, the differences are

    distributed further to the next level material, to the WIP production or

    to the single level consumption. Therefore, if there are no differences

    on the category consumption because the consumption quantity is zero,

    there is nothing that can be distributed further. This is a design

    issue that can't be changed without redesigning the actual costing.

    In this case, the only possible workaround would be to avoid the

    negative consumption. In your sample material, there are several

    negative consumption postings which summed up to the positive

    consumption postings lead to a total consumption quantity = 0.

    Please, check the note 575801 for details.

    The Material Ledger has been designed under certain implementation

    assumptions. One of them is that ML does not have negative quantities.

    However, the logistics allow postings with negative quantities

    or some movement types generate negative quantities.

    They flow into ML and ML gets negative consumptions

    and negative receipts. We call this effect shortly 'negative

    consumptions'.

    The note 536893 explains the stock transfer movements in ML and

    logistics. It is important to understand the physical and logical

    direction of movement types from ML and logistics point of view.

    Thus, the result and ML value flow can be understood. If this flow

    conflicts with ML, the material gets a negative consumption.

    This situation that all consumption of the period sums up to total

    consumption quantity zero is a very marginal case.

    It is only possible because one of the consumption movements

    has a reversal movement.

    This is one of the reasons for which reversals movements should be

    used carefully. Generally they should be used only to reverse a

    previous 'straight' movement, but never in a 'systematic' way instead

    of straight movements.

    I hope this information helps,

    regatrds

    Ray

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  • Posted on Aug 13, 2016 at 06:21 AM

    This message was moderated.

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