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FIN_CO_COGM and CO-PA

ArturoSenosain
Advisor
Advisor
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Hi Friends.

I just begin a new project. We plan to activate ML with business Function FIN_CO_COGM in order to have 3 valuations (IFRS, Local and TAX).

Our COGS in IFRS and Local are different.

I guess this is not possible, but i want experts opinions:

+ Only leading ledger postings are transfer to PA? Any workaround 'tested'? I checked this thread http://scn.sap.com/thread/1728765 but its quite old, and want confirm this behavior.

+ Can I transfer both (IFRS and Local) Actual COGS to CO-PA in the PA revaluation run KE27? Any workaround in mind?

Arturo.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hello!!

I just found the answer for this if anyone still wants to know it...

I have on my system 3 diferents valuations: 1) IFRS 2) LOCALGAAP 3) TAXES

because the system didn't allow to   add a costing key for parallel valuations what we have to do is created the costing key if it is for legal valuation like this, on the menú:

Controlling -> Profitability Analysis -> Master Data -> Valuation ->  Set Up Valuation Using Material Cost Estimates -> Define Access to Actual Costing/MAterial Ledger

So, I have 3 costing keys to the same valuation view, but each one has a different Value Field assign:

After that we go to assign this costing key as second cost calculation, in my case I assign Costing Keys to Material Types, like this:

Now we need to implement the note:  1967777 - Use Result of Material Ledger AVR Costing Run (Cost Component Split) for Periodic Valuation in CO-PA.

Then we go to the menú:

Controlling -> Product Cost Controlling -> Actual Costing -> Set Up Transfer of Cost component Split of CO-PA.

In this transacction you have to do the link between your costing key and the "Accounting Principle" defined on FI (Finacial accounting global settings -> parallel accounting -> define accounting principles) .

I believed the error was tried to attached the costing key to the parallel version, it seems that SAP link the parallel costing to the accounting principle as well as on CKMLCPAVR parameters.

So the transaction: Set Up Transfer of Cost component Split of CO-PA has to be like this:

I already did it and works perfect! I choose to revaluate all three valuations so I can compare the diferences on actual prices on all my valuations.

Kind Regards,

Carolina

ArturoSenosain
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Hola Caro.

You are correct, thanks for posting the solution. I find the answer some time ago but i forget to post the solution here.

Arturo!

Answers (2)

Answers (2)

Former Member
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Hi Arturo, would you founded a solution for this?

I have right now the same problem...

It really helps me if you would give me some ideas about this!

Thanks,

Carolina Gómez

Former Member
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Hi Arturo,

In the thread you mentioned there's reply from Janet Salmon:

"

As many people have already commented, the standard system behaviour is such that only data from the leading ledger is transferred to CO - at least until EhP5.

In EhP5, there is a new business function FIN_CO_COGM (parallel valuation of cost of goods manufactured) that allows you to create a second version in CO that is used specifically for the valuation of cost of goods manufactured according to a second accounting principle. This allows you to transfer depreciation according to two accounting approaches into CO and then calculate actual activity rates according to the two approaches. To value your inventory if you are already using actual costs, you would use a periodic costing run to pick up the activity rate according to the first valuation and the alternative valuation run to pick up the activity rate according to the second valuation. If you are using standard costs for your leading valuation, you would use a periodic costing run to pick up the activity rates in the second valuation and create appropriate closing entries.

This approach has some gaps - it only takes account of depreciation from FI-AA but does not yet handle ledger-specific postings in FI (FB50L). However, I think it is worth considering in your system design.

Regards,

Janet (Product Owner, Management Accounting)

"
I think it answers your question. You can calculate different COGS using AVR (Alternative Valuation Runs) and transfer them to CO-PA iin KE27. AVR can be assigned to Accounting Principle (if you use NewGL).

Regards,

Szymon

ArturoSenosain
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Hi man,i think my question was not clear

letme explain better:

+  Janet Talk about transfer to CO, not to PA. I mean, i worked last year with COGM with different depreciation runs and also with ledger independent posts with FB50L. The problem i see is, if I post in FI in a parallel ledger only, this post don't go to PA... or at least in my test its not arriving to PA... maybe Im doing something wrong.

+ In KE27, I know i can transfer the 'Legal' or  'Paralell Cost of Goods Manufactured', but i want to transfer both, i mean have 2 different revaluations. tcode KE4J only allow set one Key for 'Point of Valuation' - 'Record Type'. I i try to define 2 revaluation for the invoice record 'F' and also set a Plan Version, but i cant accomplish what im looking for.

I think this clarify my question.

Thanks!

Arturo.

Former Member
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Hi,

Yes, FIN_CO_COGM allows only for differences coming from FI-AA. And doesn't cater manual adjustments to different ledgers.

We implemented different solution using CO Delta version instead of Accounting Principles (we are still on Classic GL).

Regarding sending 2 or more cost estimates to CO-PA in KE27 please check if the following works for you. It works for us as we use only 1 type of valuation - Legal and define AVR to give us alternative COGS. But I see no reason why it should not work for mulitple valuation views.

SPRO -> Controlling -> Profitability Analysis -> Master Data -> Valuation -> Set Up Valuation Using Material Cost Estimate -> Define Access to Actual Costing/Material Ledger

Create 2 costing keys, one for periodic run and one for AVR. The dfinition for them should be the same.

Assign those costing keys in KE4J to point of valuation 2, record type F as First and Second Costing key.

In KE4R assign value field to both costing keys.

Now you need to tell the system that one costing key points to results of AVR.

You do it:

SPRO -> Controlling -> Product Cost Controlling -> Actual Costing/Material Ledger -> Actual Costing
-> Set Up Transfer of Cost Component Split to CO-PA.

Regards,

Szymon


ArturoSenosain
Advisor
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Thanks for the input!

Im going to test this solution tonight

ArturoSenosain
Advisor
Advisor
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Hi Szymon. I was quite busy. Letme share what i found:

in KE4J, the system dont allow add a Costing Key for 'Parallel Cost of Goods Manufactured'  (valuation 5) Only allow valuation 0 Legal  or 1 Group. So I cant set the 2nd key.

The program is hard coded

Also, dont allow set a 'plan version'.. because my plan version '0ML' is assigned to 'Parallell Cost of Goods Manufactured' in the valuation profile.

Any other idea ?

Arturo.

Former Member
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Hi Arturo,

As mentioned before I never worked with FIN_CO_COGM (no NewGL and other limitations of this solution like only one currency).

We achieved Parallel Inventory Valuation utilising CO Delta versions which in my opinion is more flexible.

But coming back to your errors.

I think that CO-PA only supports Valuation Views 0-2.

But I think there might be a way around. If in CO-PA for Parallel Valuations your are only interested in recording parallel COGS you can achieve that by creating a separate sets of COGS value fileds for each parallel valuation.

Then you do the CO-PA config I mentioned before for CO-PA version 0 and legal valuation (separate costing key for each AVR).

So summarising:

1. parallel valuations are achieved via AVRs (utilising version 0ML).

2. revaluation of COGS in CO-PA happens in CO-PA version 0 and Valuation View 0 in separate sets of value fields.

3. In CO-PA reports you do not use different vesrions and valuation views but different sets of value fields in version 0 and valuation view 0.

It should work.

Regards,

Szymon