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D. Filler

Material Valuation and the Material Ledger in SAP S/4HANA

The methods used for inventory valuation have been transformed with SAP S/4HANA. The material ledger is now integrated with the Universal Journal and is the sole means for valuing materials. This book covers how valuation is managed in up to three differe...

Leseprobe
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Inhaltsverzeichnis

  • Introduction
  • 1 Introduction to inventory valuation
  • 2 Valuation in parallel currencies
  • 3 Valuation using transfer prices
  • 4 Valuation at actual cost
  • 5 Balance sheet valuation
  • Endnotes
  • A The Author
  • B Disclaimer

Weitere Informationen

Autor/in:

Tom King

Katgorie:

Controlling

Sprache:

Englisch

Leseprobe

2.1 Parallel currency valuation scenario

Let’s look at an example company—Universal Writing Utensils, which is based in Belgium. Group currency for the S/4HANA client is set to EUR. The company also has plants in the United States and Mexico, and wants to be able to view inventory for the North American operations in USD, as well as in EUR. In addition, the Mexican plant needs valuation in the local country currency, MXN (Mexican pesos). Universal Writing Utensils does not want to implement actual costing for these plants.

Two global companies have been defined: K101 for Europe and K102 for North America (see Figure 2.1).

MaterialLedger

Figure 2.1: Universal Writing Utensils companies

Companies are configured under menu path Enterprise Structure • Definition • Financial Accounting • Define Company. Figure 2.2 shows the details of the North American company, K102, which uses USD as the company currency (currency type 60).

MaterialLedger

Figure 2.2: Definition of company K102

Three company codes have been set up using menu path Enterprise Structure • Definition • Financial Accounting • Edit, Copy, Delete, Check Company Code: K101 for Belgium, K102 for the United States, and K103 for Mexico (see Figure 2.3).

MaterialLedger

Figure 2.3: Company codes for Universal Writing Utensils

Company codes are assigned to companies via menu path Enterprise Structure • Assignment • Financial Accounting • Assign Company Code to Company. Figure 2.4 shows company codes K102 and K103 assigned to company K102.

MaterialLedger

Figure 2.4: Assigning company codes to companies

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