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How to Correct the Closing Stock Value in Material Ledger with MAP

Jan 14 at 04:18 AM

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Dear Experts,

Our Client has implemented Material Ledger and all the material are with Price control V and Price indicator 2 (Incl. SFG & FG). Now, we are facing below problem every month:

1. Daily production is happening with the last MAP.

2. Consumption of the above goods is also happening at the same MAP as used in point 1.

3. At the month end, the production order variance gets settled using KO88.

4. The settlement done in point 4, change the production value however not the consumption value in Material Ledger.

5. Since, out all material are with price indicator 2 and price control V, it will not come for CKMLCP for calculation of revaluation of consumption.

6. Due to all the above issues, Closing inventory is showing incorrect numbers.

Example

In Material Ledger

Particulars Qty Value Price

Opening Inventory: 0 Units 0 INR 0 INR

Production: 10 Units 120 INR 12 INR

Order No. XXXX 10 Units 100 INR 10 INR

Order Variance 0 Units 20 INR 0 INR

Consumption 5 Units 50 INR 10 INR

Closing Inventory 5 Units 70 INR 14 INR

Now my Closing Inventory is wrong as it should @ 12 INR i.e 60 INR because of my production incl. variance is at 12 INR. Since my consumption during the month happened at 10 INR which is less than my production cost. The system is wrongly increasing the inventory value. Ideally at month end after variance settlement of order, SAP should revalue my consumption too.

How to solve this problem. Is it possible to do CKMLCP for 2V type of materials too? or any other solutions?

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