Valuation in SAP Controlling

In costing-based Profitability Analysis , it is possible to configure a function known as valuation to supplement the performance information provided directly by a transaction. The additional information may be estimated, calculated, or retrieved from a different source.For example, it is possible to configure the system to calculate estimated values for internal sales commission and freight costs at the time an invoice is billed, so that profitability can be projected prior to knowing the actual values. Likewise, it is possible to access detailed product costing information.

Valuation Using Product Costing: Customizing

Using a costing key, you can determine which cost estimate (i.e. which costing variant) should be used with which validity date for valuation.By assigning a costing key, you control which cost estimate (standard, modified standard, or current cost estimate) should be used in which case depending on the material, material type, or any other combination of characteristics.If an entry exists for the material, this has priority over the entry for the material type. The entry for the material type has priority over any entries defined for other characteristics.In the assignment lines, you determine which values of the cost component structure are transferred to which value fields in the operating concern.

In addition to assigning costing keys to products or material types, you can now assign costing keys to any combination of characteristics in Release 4.0A..This allows you greater flexibility and control in using costing keys.You can use up to three characteristics as "source fields" (e.g. plant, product group). Thus you no longer need to assign costing keys to one specific material or material type, you can also assign costing keys to a combination of different characteristics.This makes it possible, for example, to access the cost of goods manufactured from different plants, which is useful if you want to use the costs from the production plant when the product is sold by different sales plants.

When you define a costing key, you can enter either a costing date or a period or a value for the period indicator. Using the plan period indicator, you can specify the date for which the system should look for a valid material cost estimate in the database for Product Cost Controlling.The following options are available for the plan period indicator:

0 for the "future standard cost estimate"
1 for the "current standard cost estimate"
2 for the "past standard cost estimate"
3 for the standard cost estimate valid on the posting date
4 for the standard cost estimate valid on the date of goods issue.

If you enter "0", "1" or "2" for the plan period indicator, the system reads the standard cost estimate valid on the first day of the period. This refers to the future, current, or past period for which the standard cost estimate is valid according to the e ntries in the valuation segment of the relevant material master record. If you enter "3" or "4" for the plan period indicator, the system reads the standard cost estimate valid on the given posting date or date of goods issue , regardless of what is stored in the material master.

Valuation Using Costing Sheets

Costing sheets are a vehicle through which special values can be accessed or calculated. They are the central piece to the condition technique, a method used all over SAP for performing calculations.Costing sheets consist of a sequence of user-defined condition type, each of which accesses a value or performs specific calculations, as dictated by the definitions of the condition types. Each condition type is mapped to a value field in the operating concern.

Base condition types form the basis for calculations; they refer to value fields which have already been populated through other means; these condition types must have on their master record a condition category of ‘K‘, a calculation rule of ‘B‘, and condition class of ‘B‘. Calculation condition types perform calculations on lines in the costing sheets, which represent subtotals of amounts (like base amounts, for example); these condition types actually populate value fields with values; their definitions can vary.

Calculation condition types each have an access sequence and set of condition records, which store surcharges, deductions, or absolute values for certain combinations of characteristic values.For complete details on the how to use the condition technique, please refer to pricing documentation or take a class on pricing or the condition technique.

Valuation Strategy

The valuation strategy is central to valuation configuration. A valuation strategy may contain references to multiple valuation techniques (costing sheets, user exits, product costing info, etc.) which are to be applied to a given COPA-relevant transaction.It is necessary to decide to what record types (F, A, B, C, and 0-9) and at what points (known as points of valuation) each valuation strategy should apply. Likewise, if a strategy is to be applied to planning data, the relevant planning version must be specified (this is all configuration).The various valuation techniques populate the value fields in different ways:

with costing sheets, condition types are mapped to value fields
Ÿfrom Product Costing, cost components are mapped to value fields
Ÿvalue fields are updated directly through user exits

Analysis of Valuation

Valuation analysis is available to you on the one hand when entering of plan or actual data. On the other hand you have the possibility of checking valuation by simulating the entry of single line items. You can specify different valuation points in time and thus check different valuation strategies. To analyze valuation errors during billing document transfer, you can execute a simulation of previously transferred billing documents and then analyze the results of your valuation strategies. For further options for the simulation of billing document transfers, refer to the section " Tools ".