Skip to Content
avatar image
Former Member

Costing Run

Whenever we execute/ Release the Standard Cost estimates in respect of our Manufactured products system revalues the Inventory of such items ( having price indicator u2018su2019 ) with new standard cost. The difference in the inventory value ( i.e. value based on old std. cost & value based on new std. cost ) for such items gets posted to GAIN/LOSS ON REVALUATION GL Account

my question is

Is it possible to avoid this entry. i.e. the new std. cost released will value the inventory prospectively meaning only those inventory items which are produced post release of new std. cost .

If above solution not feasible then is there a way whereby we reverse the above entry i.e reversing the Gain / loss on revaluation & restate the inventory value at itu2019s old price.

Add comment
10|10000 characters needed characters exceeded

  • Follow
  • Get RSS Feed

3 Answers

  • Best Answer
    Sep 17, 2010 at 09:33 AM

    Hi gaurav

    thats not possible.. Any change in std cost will immediately affect the entire inventory and not the prospective ones

    The only possibility to restate the inventory to its old price is to create new set of GL accounts and pass a JV from F-02.. But this will not be at material level.. This will be at company code level

    you can also use MR21 to restate the std cost to its old value, but that would defeat the purpose of re-releasing the new std cost itself....

    Thats the basic design of SAP to revaluate inventory based on change in std cost.. that can not be changed...

    You can also schedule your re-release of std cost when the inventory is zero or minimal (as less as possible) so that the amount in inventory revaluation is less


    Ajay M

    Add comment
    10|10000 characters needed characters exceeded

  • Sep 17, 2010 at 09:37 AM

    Hi Gaurav ,

    When you have Price Control " S" Standard in Material master ... inventory value in Balance Sheet = Std Price * Qty in Hand .

    When Standard Price Changes.. the new Balance Sheet amoount = New Std Price * Qty in Hand ..

    Since , we have a double entry accounting .. due to change in balance sheet .. one entry will happen in Profit & Loss Account which is the gain/loss on revalution..

    Gain/Loss on Revalution is a pure domain concept and nothing about SAP in it. We cannot ignore this entry .. as otherwise our accounting principle doesnot matches..

    If you want to change the GL of the Gain/Loss entry ... then you can do it manually .. if you want to post it in a dfferent GL account later.

    But , revering this entry defies the logic of Inventory Value in Balance Sheet..

    Please revert back for any further clarifications.



    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Sep 22, 2010 at 11:23 AM

    Thanks ... problem resolved

    Add comment
    10|10000 characters needed characters exceeded