on 06-27-2017 10:23 AM
Hi All
I have a query related to Inventory revaluation. It is in context of Indian client having continuous manufacturing operation. Has 3 company code across 3 countries.
When Standard cost is released, system revalues total inventory while client wants revaluation should happen only for 1 month old inventory.
Revaluation of total inventory causes financial posting in system for old stock also. e.g. I have 6 months old stock ( e.g. 100 units ) and Standard price has now increased by 1 INR.
System will post following entry
Dr Inventory 100 [B/S ]
Cr Inventory revaluation 100 [P&L ]
Please share your views how inventory revaluation of old stock can be avoided. Do other Indian / Global company have similar requirement ??
Does accounting standard specify that only current month inventory should be revalued ? Can FIFO/LIFO valuation method help in this context ??
Regards
Kapil
Hi Kapil,
This is a limitation of standard costing. It revaluates all inventory in same plant (old or new) with same material code. Actual costing is the only solution for this issue
Regards,
Malay
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Appreciate feedback on this SAP Controlling related query
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