Goods Received Valuation for Order Delivery

[Former Member]

Dear Experts,

In our business process planned order is created through project system. planned order is converted in to production order. while receiving finished goods throgh production order .

for exmple: production order 1:

In finished good A with moving avg price is Rs150

for this we use raw material B Rs 120

labour & machine Rs 20

toatl production cost is Rs 140

while goods receiving the production order credited with Rs 140.

For same material again we created one more Production order with another planned order.

production order 2:

In finished good A with moving avg price is Rs150

for this we use raw material B Rs 140

labour & machine Rs 20

toatl production cost is Rs 160

while goods receiving the production order2 credited with Rs 140. which is previous production order1 cost.

our client wants to credit production2 with Rs 160.

this credit posting Rs 140 is taken for all production order which is created to mateial finished good A.

Define Goods Received Valuation for Order Delivery here i assigned the valuation varient to the plant.

Is there any configuration for this apart from the valuation type V in the Material Master.

Please help on this. I will be grateful for all of you.

Thanks and Regards

Raju

[ajaycwa1981]

Hi

The situation you are describing is a standard behaviour... SAP documentation states that in MTO scenario, your price from 1st goods receipt is used to valuate the subsequent Goods receipts

I think, both of your production orders pertain to the same project.... Correct me if i am wrong plz...

If you create another project, 140 will not be used... System will use the price from the 1st goods receipt of that project

This behaviour is controlled by requirement class settings. Check what requirement class you are using and see what all valuation settings have you made there.. especially in fields "Valuation" and "Without valuation strategy"

Refer the following path in SAP library or help.sap.com

- Controlling > Product Cost Controlling > Cost Obj Contr > Product Cost by sales order > Valuated sales order stock > Std price with valuated sales order stock

This appllies to both sales order stock and project stock

This explanation is very detailed and comprehensive... Believe me, these settings are extremely influential and must be done with utmost care.... Understand this documentation well b4 doing the settings

Regards

Ajay M

[Former Member]

Hi Ajay,

Both of your production orders pertain to the same project....

in requirement class settings what are the configuration required for goods delivered with production cost.

present in requirement class settings valuation and without valuation strategy fields are blank.

Regards,

Raju

[ajaycwa1981]

Hi

I could not understand your question properly...

if you wish to valuate GR based on std cost from CK11N, you need to tick "Without valuation strategy"

Also, Valuation field cannot be blank... You need to have either M or A in it depending on whether you want to valuate your MTO inventory separate from or along with sale order...

Also, Your account assignemnt category in req class should be Q in my opinion

Regards

Ajay M

[Former Member]

Hi Raju,

the behavior you describe really looks like goods delivery is valued at S-price, not V-price.

Do you have split valuation? In that case it is possible that on plant level valution is at V, while at the level of valuation type, it is S, which would determine the valuation of your deliveries.

Apart from that, please note that SAP recommends valuation of finished goods at S-price. For those who want valuation at actual costs, the recommended procedure is the use of the material ledger. This is because valuation of finished goods at actual costs by using V-price will only achieve the desired results under very restrictive circumstances.

Regards

Nikolas