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ML - Revaluation of Consumption - How other companies use in terms of GL Account

Dear all experts,

I am in the middle of configuring the Revaluation of Consumption for the client, and this is the first time I am doing it. However the business has asked for advice on the GL account to be assigned to this COC postings.

Can you share with me what are the GL accounts that are commonly used during Revaluation of Consumption? Can you share with me an example with its double entries?

For example, during a purchase of a raw material, Purchase Price Variances of $100 is posted (Dr. PPV $100). During Reval. of Consumption in CKMLCP, $20 is distributed from <Cumulative Inventory> to <Cost Center> under the "Consumption" Category. (Dr. XXXX $20, Cr. PPV $20). So the question is what is this GL XXXX called? Is my understanding on the transaction/double entries correct?

Thank you in advance.

Sincerely,

Sebastian

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4 Answers

  • Best Answer
    Nov 23, 2017 at 07:07 AM

    It should be 'Reval of Oth Consumption ML (COC)' and it shouldn't be created as cost element.

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  • Nov 25, 2017 at 05:38 PM

    Hi Sebastin,

    Please refer SAP Note 908737 :Post Closing in Material Ledger.

    Regards,
    Malay

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  • Apr 18 at 12:47 PM

    Dear Sebastian,

    With the use of material ledger you don't need to use COC customizing in OBYC. If you assing consumption movement types to material ledger, system does not need COC postings any more.

    To use this functionality, you need to define movement type group for ML update in OMX7. Create a Movement Type Group with the revaluation of consumption detail "2".

    And then assing this movement type group to your consumption movement types in OMX0. After that, material ledger will revaluate your consumptions with the actual price and distributes related price variances.

    P.S.:You don't need to assing your movement type groups to 2* movements. 2* movement types automatically revaluated by the material ledger.

    Best Regards,

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    • Hi Fatih,

      Thank you for your reply.

      "After that, material ledger will revaluate your consumptions with the actual price and distributes related price variances."

      ==> Assuming this is a raw material, from the statement above, where will the system distribute it to? Back to the production orders that consumed this raw material, and roll up to the finished goods that is produced from these production orders?

      "P.S.:You don't need to assing your movement type groups to 2* movements. 2* movement types automatically revaluated by the material ledger."

      ==> Oh that's great. I might be able to test this out immediately without further configuration required.

  • Apr 16 at 03:31 AM

    Hi all,

    Thank you for the answer.

    Regards,

    Sebastian

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