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Jan 14, 2020 at 02:48 AM

Production lot value posting zero value cause by SAP currency rounding formula update

151 Views Last edit Jan 14, 2020 at 05:21 AM 2 rev

2019/12/27, We noticed many JE of Goods Issue for Production Posting Amount are Zero but with Valuation Quantity, it was unusual,

So We check all system transaction and finds out system was posting wrong values after 2019/12/16.
byd-repor-gl-accounts-line-items.png

At before, the formula should be : Amount = Round( Goods Issue Quantity * Unit Price, 0);

After Routine Maintenance, the formula become : Amount = Round( Goods Issue Quantity * Round(Unit Price,0), 0);

They Rounded the Unit Price before calculate the Total Value, It cause All Material which Unit price under 0.49, All counts to Zero, and Unit price great than 0.5, counts to 1. byd-inventory-cost-history-11a00000.png

And even worse : It not only cause posting Amount counts to zero, but All Production Cost got very great bias.

After We finds out the Problem , We created Incidents in System, And SAP reply that the problem was caused by their Operation at Routine Maintenance, (NOT IN SYSTEM UPGRADE!!!!),

byd-incen.png byd-maintenance-schedule-list.png

We guess SAP Back-end wants to replace the rounding formula of JE Posting Engine of Goods movement , because our currency are TWD, has no decimal places, they may using very simple Find and Replace function without any checking.

We ask SAP Provide the solution to fix , but they only can using "Manual Entry for Production Lots" to Add the value of difference of each production lots JE, and We needs to provide the value for fix, but All Our Material Valuation are the Moving Average, it means every Goods movement Posting Amount using different unit price.
byd-00086-manual-entry-for-production-lots.png

And it's 2020/01, We should already provided 2019 Year Income statement to CEO, but because this problem, We only can using the price at 2019/12/13 when system still normal , to calculate the Posting value of each production lots, It means the values which We provided, CPA may issues a disclaimer of opinion or an adverse opinion in the audit report, because the posting value was not created by system.

We needs to Know what action We do can really fixing that problem.