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CKMLCP & "No Stock Coverage check"

Dears

I am new to ML settlement at the period end.

When we run the CKMLCP, I see a check "No stock coverage check". Should I select this check in the CKMLCP ?

We need the actual price calculation by just apportioning the price difference to the available stock only. Not a distorted actual value.

Please guide me.

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3 Answers

  • Nov 20, 2017 at 03:41 AM

    Hi Nikki,

    Check Note 2207543 and 1871499.

    You tick "No Stock Coverage" When there is Not distributed price differences in CKM3 due to price limiter logic. If you don't want leave the amount in Not distributed you can either delete price limiter quantity or using the flag 'No stock coverage check'

    Thanks.

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  • Nov 19, 2017 at 11:36 AM

    Hi Nikki,

    You should not select no coverage check. No coverage check is related to "stock coverage" concept. If you select then it may have abnormal impact on consumption & stock valuation.

    To understand "stock coverage" concept, please refer below link

    https://archive.sap.com/discussions/thread/1271300

    Regards,
    Malay

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  • Nov 20, 2017 at 05:35 AM

    Dears

    Thanks for the inputs.

    What I have understood :

    When we select the 'No stock coverage' indicator, the system will post only proportionate variances on the available inventory quantity and the un-allocated balance variances will remain in the price difference account.

    Also, if we do not select 'No Stock coverage' indicator, the whole variances will be allocated to whatever quantity of material available at the time of post closing and the price difference will become zero.

    So we should select 'no stock coverage' indicator so that the inventory actual cost will be reasonable rather than dumping all variances into the only available material quantity thereby making the inventory value unrealistic.

    Please tell me what I have understood is correct.

    Best Regards

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    • Hi Nikki,

      When we DO NOT select the 'No stock coverage' indicator, the system will post only proportionate variances on the available inventory quantity and the un-allocated balance variances will remain in the price difference account.

      If we select 'No Stock coverage' indicator, the whole variances will be allocated to whatever quantity of material available at the time of post closing and the price difference will become zero.

      By default, No stock coverage is untick. So if you want the price difference zero and its cost is allocated to inventory actual cost then you need to tick it. Yes, you are right it will make the inventory value unrealistic if the amount is huge.

      Thanks