Re: [sap-acct] Make-to-Order Product cannot have stock valuation and FI document
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 | Posted by Reginald Kam on Mar 28 at 9:29 AM |  Mark as helpful |
Toolbox sap-acctThank God I meet a FICO guru on the MTO issue. Surya, you're my Angel.
First Scenario:
It seems that your-mentioned first scenario is exactly what I want. But what IMG setting do I have to set to get this result ? Shall I change the Stock Valuation for the Requirement Class 40 ? Any undesirable side effect if I make such change ?
Second Scenario:
I don't quite understand. The COPA, to the best of what know, is just for reporting analysis. Do you mean that when the cost and revenue will not be posted to GL until I settle the sales order ? If so, how can I settle the sales order ?
Third Scenario:
This is the undesirable scenario I've come across. You said: 'Revenue posting to FI does not result in COPA posting but get posted to Sale Order item.'. When is the cost and revenue get posted to GL account ? You said: 'Only when we settle the SO, then only the values are posted to COPA.'. What is the effect of settling SO and how ?
Where can I get more information regarding this issue ?
KC
----- Original Message -----
From: suryanarayanabellamkonda via sap-acct
To: Reginald Kam
Sent: Friday, March 26, 2010 5:48 PM
Subject: Re: [sap-acct] Make-to-Order Product cannot have stock valuation and FI document
Posted by suryanarayanabellamkonda (SAP FI/CO Sr. Consultant)
on Mar 26 at 7:49 AM Mark as helpful
Hi Guys,
Sorry if i am jumping inbetween. But i thought i can give some more understanding on MTO scenarios to Reginald.
MTO scenarios are broadly can categorise in to:
1. Valuated Sale Order without Sale Order Controlling -This is only for pure logistic purpose. The Financial value flows are just as good as MTS scenario. The additional thing it does is, the stock that we are dealing with will be earmarked to the sale order.
2.Valuated SlaeOrder with Sale Order controlling - In this scenario, the Sale Order is� the controlling object.The costs, Revenues and Variance (if variance account is a cost element) will get posted to Sale Order. The sale order need to be settled to at the period to enable the values flow to COPA.
3.Non-Valuated Sale Order with Sale Order Controlling - In this scenario, the value flow will be different. The consumption of Raw Materials (purchase order dependant) is posted to Sale Order Item instead of Production Order.The inventory is reflected as sales order stock but it is not valuated. Only quantity is visible. It is directly expensed. When this stock is issued from storage location, there would be no FI posting as it is non-valuated and already expensed. Goods Issue to Customer - No FI Posting. Revenue posting to FI does not result in COPa posting but get posted to Sale Order item. Only when we settle the SO, then only the values are posted to COPA.
I am not going in depth of each and every minor aspect of the above scenarios.
It is the business call that which scenario they need to adapt in the given Business Scenario.
Reginald, having gone through those scenarios, now you need to decide which one is more suited to your scenario and then do the necessary configuration settings.
Please do let me know if you need further assistance in this regard
surya
<img src="http://us.i1.yimg.com/us.yimg.com/i/mesg/tsmil eys2/23.gif">
<em><font color="#347d7e" style="BACKGROUND-COLOR:#ff7f00;"><strong>with regards,</strong></font></em>
<font color="#347d7e" style="BACKGROUND-COLOR:#ff7f00;"><strong><em>surya </em></strong></font>
________________________________
From: ajay.maheshwari via sap-acct <sap-acct@Groups.ITtoolbox.com>
To: harshasury... <harshasurya@yahoo.com>
Sent: Fri, 26 March, 2010 1:57:26 PM
Subject: Re: [sap-acct] Make-to-Order Product cannot have stock valuation and FI document
Posted by ajay.maheshwari (Mr.)
on Mar 26 at 4:29 AM Mark as helpful
Hi Reginald
Since your Goods receipt upon production was not valuated, PGI also wont be
valuated....
you settle mfg costs on sales order and also your revenue would be posted
upon sales order instead of COPA...
then you settle revenues as well as costs from sales order to COPA
If this is not what you want, then you need to change the settings in req
class and account ass. category
Ajay
On Fri, Mar 26, 2010 at 7:10 AM, Reginald Kam via sap-acct <
sap-acct@groups.ittoolbox.com> wrote:
> Posted by Reginald Kam
> on Mar 25 at 9:40 PM
> Thank you so much for your response, Ajay.
>
>
>
> Some companies do not have to be such big as boeing or ship-maker to have
> the business requirement of make-to-order, and need to keep the finished
> goods or even its subordinate raw material separated. In my environment, if
>
> the finished goods is put in storage location upon production order
> completion, we do need to have cost booked and reflected in the stock
> valuation.
>
>
>
> Apart from the stock valuation, why is there not any FI document generated
> for the sales delivery ?
>
>
>
> From: ajay.maheshwari via sap-acct [mailto:sap-acct@Groups.ITtoolbox.com]
> Sent: Thursday, March 25, 2010 7:57 PM
> To: Reginald K
> Subject: Re: [sap-acct] Make-to-Order Product cannot have stock valuation
> and FI document
>
>
>
>
>
>
>
>
> Posted by ajay.maheshwari (Mr.)
> on Mar 25 at 8:10 AM
>
> <http://it.toolbox.com/api/ContentVote/3398024/1/1 /> Mark this reply as
> helpfulMark as helpful
>
> Check your account assignment category in the Req class.... The consumption
>
> posting field in the acc ass category determines this
>
> Usually, in complex make to order, SAP recommends the stock to be non
> valuated.. i.e. it is assumed u make only upon order like in ship making or
>
> boeing kind of company... u make and immediately supply.. so it does not
> make sense to value the stock
>
> in this case, ur sale order is a cost object and prod order settles upon
> sale order..... or on a WBS as the case may be
>
> Regards
>
> Ajay
>
> On Thu, Mar 25, 2010 at 3:57 PM, Reginald Kam via sap-acct <
> sap-acct@groups.ittoolbox.com> wrote:
>
> > Posted by Reginald Kam
> > on Mar 25 at 7:04 AM
> > I have a finished product whose 'Strategy Group' is set to be 20 in
> > material master. Upon production order completion, and goods receipt into
>
> > storage location; I've found the material document does not have amount;
> and
> > there is FI document generated.
> > In OPPS, the Requirement Class is set to be 40 in Strategy Group; and
> this
>
> > Requirement Class 40 in set to have no Stock Valuation in OVZG. All these
>
> > are standard SAP settting. Can any expert tell me why make-to-order
> product
> > cannot have stock valuation and FI document ? And how can I have the same
>
> ?
__.____._ First Scenario:
It seems that your-mentioned first scenario is exactly what I want. But what IMG setting do I have to set to get this result ? Shall I change the Stock Valuation for the Requirement Class 40 ? Any undesirable side effect if I make such change ?
Second Scenario:
I don't quite understand. The COPA, to the best of what know, is just for reporting analysis. Do you mean that when the cost and revenue will not be posted to GL until I settle the sales order ? If so, how can I settle the sales order ?
Third Scenario:
This is the undesirable scenario I've come across. You said: 'Revenue posting to FI does not result in COPA posting but get posted to Sale Order item.'. When is the cost and revenue get posted to GL account ? You said: 'Only when we settle the SO, then only the values are posted to COPA.'. What is the effect of settling SO and how ?
Where can I get more information regarding this issue ?
KC
----- Original Message -----
From: suryanarayanabellamkonda via sap-acct
To: Reginald Kam
Sent: Friday, March 26, 2010 5:48 PM
Subject: Re: [sap-acct] Make-to-Order Product cannot have stock valuation and FI document
Posted by suryanarayanabellamkonda (SAP FI/CO Sr. Consultant)
on Mar 26 at 7:49 AM Mark as helpful
Hi Guys,
Sorry if i am jumping inbetween. But i thought i can give some more understanding on MTO scenarios to Reginald.
MTO scenarios are broadly can categorise in to:
1. Valuated Sale Order without Sale Order Controlling -This is only for pure logistic purpose. The Financial value flows are just as good as MTS scenario. The additional thing it does is, the stock that we are dealing with will be earmarked to the sale order.
2.Valuated SlaeOrder with Sale Order controlling - In this scenario, the Sale Order is� the controlling object.The costs, Revenues and Variance (if variance account is a cost element) will get posted to Sale Order. The sale order need to be settled to at the period to enable the values flow to COPA.
3.Non-Valuated Sale Order with Sale Order Controlling - In this scenario, the value flow will be different. The consumption of Raw Materials (purchase order dependant) is posted to Sale Order Item instead of Production Order.The inventory is reflected as sales order stock but it is not valuated. Only quantity is visible. It is directly expensed. When this stock is issued from storage location, there would be no FI posting as it is non-valuated and already expensed. Goods Issue to Customer - No FI Posting. Revenue posting to FI does not result in COPa posting but get posted to Sale Order item. Only when we settle the SO, then only the values are posted to COPA.
I am not going in depth of each and every minor aspect of the above scenarios.
It is the business call that which scenario they need to adapt in the given Business Scenario.
Reginald, having gone through those scenarios, now you need to decide which one is more suited to your scenario and then do the necessary configuration settings.
Please do let me know if you need further assistance in this regard
surya
<img src="http://us.i1.yimg.com/us.yimg.com/i/mesg/tsmil eys2/23.gif">
<em><font color="#347d7e" style="BACKGROUND-COLOR:#ff7f00;"><strong>with regards,</strong></font></em>
<font color="#347d7e" style="BACKGROUND-COLOR:#ff7f00;"><strong><em>surya </em></strong></font>
________________________________
From: ajay.maheshwari via sap-acct <sap-acct@Groups.ITtoolbox.com>
To: harshasury... <harshasurya@yahoo.com>
Sent: Fri, 26 March, 2010 1:57:26 PM
Subject: Re: [sap-acct] Make-to-Order Product cannot have stock valuation and FI document
Posted by ajay.maheshwari (Mr.)
on Mar 26 at 4:29 AM Mark as helpful
Hi Reginald
Since your Goods receipt upon production was not valuated, PGI also wont be
valuated....
you settle mfg costs on sales order and also your revenue would be posted
upon sales order instead of COPA...
then you settle revenues as well as costs from sales order to COPA
If this is not what you want, then you need to change the settings in req
class and account ass. category
Ajay
On Fri, Mar 26, 2010 at 7:10 AM, Reginald Kam via sap-acct <
sap-acct@groups.ittoolbox.com> wrote:
> Posted by Reginald Kam
> on Mar 25 at 9:40 PM
> Thank you so much for your response, Ajay.
>
>
>
> Some companies do not have to be such big as boeing or ship-maker to have
> the business requirement of make-to-order, and need to keep the finished
> goods or even its subordinate raw material separated. In my environment, if
>
> the finished goods is put in storage location upon production order
> completion, we do need to have cost booked and reflected in the stock
> valuation.
>
>
>
> Apart from the stock valuation, why is there not any FI document generated
> for the sales delivery ?
>
>
>
> From: ajay.maheshwari via sap-acct [mailto:sap-acct@Groups.ITtoolbox.com]
> Sent: Thursday, March 25, 2010 7:57 PM
> To: Reginald K
> Subject: Re: [sap-acct] Make-to-Order Product cannot have stock valuation
> and FI document
>
>
>
>
>
>
>
>
> Posted by ajay.maheshwari (Mr.)
> on Mar 25 at 8:10 AM
>
> <http://it.toolbox.com/api/ContentVote/3398024/1/1 /> Mark this reply as
> helpfulMark as helpful
>
> Check your account assignment category in the Req class.... The consumption
>
> posting field in the acc ass category determines this
>
> Usually, in complex make to order, SAP recommends the stock to be non
> valuated.. i.e. it is assumed u make only upon order like in ship making or
>
> boeing kind of company... u make and immediately supply.. so it does not
> make sense to value the stock
>
> in this case, ur sale order is a cost object and prod order settles upon
> sale order..... or on a WBS as the case may be
>
> Regards
>
> Ajay
>
> On Thu, Mar 25, 2010 at 3:57 PM, Reginald Kam via sap-acct <
> sap-acct@groups.ittoolbox.com> wrote:
>
> > Posted by Reginald Kam
> > on Mar 25 at 7:04 AM
> > I have a finished product whose 'Strategy Group' is set to be 20 in
> > material master. Upon production order completion, and goods receipt into
>
> > storage location; I've found the material document does not have amount;
> and
> > there is FI document generated.
> > In OPPS, the Requirement Class is set to be 40 in Strategy Group; and
> this
>
> > Requirement Class 40 in set to have no Stock Valuation in OVZG. All these
>
> > are standard SAP settting. Can any expert tell me why make-to-order
> product
> > cannot have stock valuation and FI document ? And how can I have the same
>
> ?
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