Profit Center derivation during Reval of COGS

[former_member193214]

Hi All,

My company requires profit center by business segment for COGS entries.  To achieve this, I'm using sales order substitution rules (Controlling > Profit Center Accounting > Assignments of Account Assignment Objects to Profit Centers > Sales Orders > Sales Order Substitutions) which works great.  The profit center derived on the sales order flows through to the post goods issue COGS entry and to the invoice.

The issue arrises when we close our Material Ledger and the COGS in revaluated.  The profit center that is derived for COGS entry is the profit center on the material master instead of the profit center that was posted to at PGI.

Is there a config setting I'm missing or a user exit I can implement to derive the profit center from the initial COGS entry?

Ex:

Material Profit Center 932000

Sales Order - Substitution rule derives 931000

PGI:

Material      932000

COGS          931000

Revenue      931000

Reval of Consumption:

PPV          932000

COGS      932000    >>>>>>>  931000 is the profit center needed

I've attached the actual accounting docs for both transactions.

Any comments or suggestions would be appreciated.

Regards,

Linda Lewis

[ArturoSenosain · Accepted solution]

Hi.

You can do the ProfitCenter Substitution at LineItem level in controlling GGB1

I create my substitution as `exit` just for set a break-point in order to show the substitution is trigger by CKMLCP .

I have 1 question about your scenario> You always replace the same ProfitCenter or 1 material can have sales with 2,3 or more ProfitCenters in the same month?

Arturo.

Other question, do you set  COGS as CostElement ? Message was edited by: arturo senosain

[former_member193214 · Accepted solution]

Hi Arturo,

Thanks Arturo for responding to my question.  Unfortunately;  yes,  the same material could be assigned to at least 3 different profit centers in the same month.   We maintain specific customer master fields that are evaluated in the substitution rules at sales order entry time that derive the profit center. 

Example:

Material A - if sold: 

Domestic                    931000  COGS   500001

International                932000  COGS   500001 

Inter-Company            933000 COGS   500501

Our COGS accounts are not created as a cost elements.    

Maybe I can derive a different COGS account for International (like we have done for Inter-company) and then key off of the account to determine profit center in the substitution rule you have suggested above.

I'll have to check to see how we are coming up with the different COGS account.   I think we are calling a user exit and merely checking customer master fields again to derive a custom movement type which is assigned to a custom trans key.

What do you think?

Thanks for the suggestion....it has me thinking outside the box and that's what I needed!!!

Linda Lewis 

[Former Member · Accepted solution]

Hi Linda,

Interesting issue.

What is the Movement Type Group assigned to GI to Delivery movement type (V_156Q_ML)?

If your COGS accounts are NOT cost elements it's probably CF.

Creating different GL accounts for different type of sales (if PC is based on type sales) would solve the issue.

But before you proceed this path please have a look at EXIT_SAPLCKMLMVQUANT_001.

This exit was delivered by SAPas part of the original consumption revaluation solution 305056 - Modification actual update of the ML for COGS . But users can also put their code there.

Please let us know the results of your investigation.

Regards,

Szymon

[Former Member · Accepted solution]

Hi Linda,

You can also check if BAdI CKML_UPDATE offers any options (documented in SAP Note 996305).

Last option could be requesting customer specific modification by SAP(chargable). Please see
SAP Note 1690319 for details.

Regards,

Szymon

[former_member193214 · Accepted solution]

Szymon,

Thank you so much for your response.  The mvt group assigned to mvt 601 is C - COGS Revaluation and the mvt type group assigned to C is  1 - Revaluation of GL account.

I will definitely check into all of your suggestions above and will keep you updated on what we decide to do.

Thanks again for your help.

Linda Lewis

[ArturoSenosain · Accepted solution]

Hi Linda. Good to know you are working on your issue, Some points to consider.

1. The easy solution is do a FI substitution in the COGS account (same opinion as )  and derive the Profit Center based on the account.

2.1 In my country es legally required 2 different accounts, one if you sold to 3dr party and other if you do sales to a partner company (if the company belong to a group of companies). The easy way to do this is defining in MM 2 goods movements codes (601, z61) and assign them to the outbound delivery. If you could, go on with this option!

2.2 But I guess your MM/SD boys are not going to create multiple goods movements codes. If you decide to do a FI substitution, take care, if the substitution is done incorrectly, you could see strange things like in CKM3N (consumption level)  the original account and in the FI document the substituted account.

I doit with method `IF_EX_CKML_UPDATE~MODIFY_FI_TABLES > Modify ACCxx tables before ML update`

This badi is trigger before the creation of the internal tables of ML document.

In the ML Close, system post 1 FI line in order to revaluate each account, so you also could do the ProfitCenter substitution.

3 If you don't want multiple FI accounts, you can change the consumption level, but you also need to do a ProfitCenter substitution in the ML Close, because the system post only in FI, not the CO as you dont set the COGS account as a real cost element. If you want to try, its a good idea write to SAP in the marketplace and tell what you want to do, in old days this can be accomplish with the exit EXIT_SAPLCKMLMVQUANT_001 but SAP recomend dont use it anymore (check 648678 - ZSAPRCKML_COGS: Upgrade to Release 4.7 or higher).

You could have something like the next screenshot, i create a consumption level "R2_Arturo" and "R200"  in debug for GM 601, only for show you this is technically possible. If you write SAP about this option, please share their response (Im also interested).

wish this ideas help you.

Arturo.

[Former Member · Accepted solution]

Hi Arturo,

Very interesting.

Can you please provide more info on how you can create "user defined" consumption levels?

Thanks,

Szymon

[ArturoSenosain · Accepted solution]

Hi Szymon.

I found by change this post.. i dont know why i didnt respond you. Well, here is the info.

The exit EXIT_SAPLCKMLMVQUANT_001 allow you to change the text .. so you can write 'account' + 'profit center'. I know its possible(the exit is active)  but if you want to use it ask SAP, maybe is not a good idea.

This OSS explain how to include aditional fields in CKMLV005, eg the Profit Center. With this, you dont need a profit center substitution in the ml close, only in the original movement (but its better do the substitution in the outbound delivery)

1242114 - Revaluation of consumption Additional acct assgmt features

[Former Member · Accepted solution]

Hi Arturo,

Thanks a lot for sharing.

Regards,

Szymon

[former_member193214]

Hey....Sorry for the delay in getting back with you.  We actually DID NOT resolve the problem as it required a custom user exit during the ML Close post to GL step.  

LL

[former_member237060]

Dear Experts,

We are also facing the same issue when we run the CKMLCP:

COGS posted with different profit center (other than PC available in material master) but revaluation of consumption is posted with the PC from material master (instead of the original account assignment)

Kindly help me by providing the solution ?

Thanks,

Naveen

[former_member193214]

Hi Naveen,

Check out the note that Arturo Senosain suggested.  (1242114)  I have not implemented this yet, but it's on my list of projects. 

Today,after we close the ML and revaluate COPA, we re-class COGS based on COPA.   Very manual time consuming process but a work around.

LL

[former_member237060]

Hi,

The issue is get resolved by Assigning Movement Type Groups (CC) to movement types 601,602,201 & 202.

The note 1242114 is already in place...

Thanks for your response !

Regards,

Naveen

[former_member469549]

Hi Mrs. Lewis.

I´m facing with a same problem that you. Could you say me how was the solution path?

Thanks a lot.

[Former Member]

Hi...

I think that this problem will be resolved if you apply the substitution for changing profit center  in  the outbound delivery after you apply the note 1242114, according to arturo senosain’s opinion.