on 08-08-2008 9:55 AM
What is the meaning of VALUATION in SAP?
Valuation in SAP is same as in the normal usage. The valuation means computing the stock value, and there are several methods in SAP. The stock value can be for finished products or semi-finished products or engneering items or raw materials. This is important measure of the business performance.
Thanks,
Srinivas Karri
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Hi,
Pls. find the details as below :
Valuation :
Purpose:
In profitability and sales accounting, it is particularly important to have quick access to recent profitability information for sales-related business transactions, and this information should be as complete as possible. To this end, you use valuation for cost-of-sales accounting purposes, completing the information on units sold as well as the price and discount information for your marketing system.
Valuation can be used, for example, to calculate:
Sales deductions that do not appear in the invoice (such as cash deductions, rebates, and commission)
Costs of sales (sold products * standard costs of goods manufactured)
Calculated direct costs, referred to as the special direct costs for sales (such as transportation costs, packaging or insurance)
In what follows, the various valuation options are described, along with the different cases for which you can calculate anticipated values in costing-based Profitability Analysis (CO-PA). Unlike costing-based CO-PA, account-based CO-PA only posts values that are reconcilable with Financial Accounting (FI). This means that the valuation functions described here can only be implemented for costing-based CO-PA.
You can use the valuation options described in this section for actual data as well as for planning data. While you usually valuate your business transactions just after they have occurred (that is, when they are posted), you can also perform a revaluation of your profitability information, to take into account, for example changed costs of goods manufactured.
Features
Valuation Methods
Profitability Analysis offers you the following methods of valuation:
Valuation Using Material Cost Estimates:
Valuation using material cost estimates lets you determine the cost of sales when you post a sales transaction to Profitability Analysis. For this, the quantities of products sold are multiplied by the standard costs of goods manufactured, thereby including in the contribution margin analysis detailed fixed and variable cost components for the cost of goods manufactured in the individual contribution margins.
Moreover, you can use the actual cost estimate from Material Ledger to valuate your sales quantities during periodic revaluation.
Valuation Using Conditions and Costing Sheets:
You can use the condition technique to calculate values in CO-PA that, although relevant for analysis purposes, such as calculating a contribution margin at each level, are not yet established when the document posting occurs. This means in particular that you can determine anticipated sales commissions, discounts, or shipping costs that are not yet known at the time of billing, and use this information to analyze your sales transactions.
Conditions are typically used in the case of percentage or absolute additions/deductions, for example, that are stored in CO-PA according to criteria that you can select (as in the case of price determination in SD).
Valuation using customer-defined valuation routines ( Customer Exits: Valuation).:
Customer-defined valuation routines are available for cases where anticipated valuation approaches cannot be determined using either of the two preceding methods. This means that you can implement your own valuation logic.
Example
The value fields in the following contribution margin scheme are filled with data partly from the relevant sales system, and partly from valuation using conditions and valuation using material cost estimates:
Gross sales
From the sales system
Customer discount
From the sales system
Material discount
From the sales system
Special offer discount
From the sales system
Quantity discount
From the sales system
Cash discounts
ç
Valuation using conditions and costing sheets
Rebates
ç
Valuation using conditions and costing sheets
Total sales deductions
Net sales
Sales commission
ç
Valuation using conditions and costing sheets
Accrued freight costs
ç
Valuation using conditions and costing sheets
Special direct costs for sales
ç
Valuation using conditions and costing sheets
Net revenue
Material direct costs
ç
Valuation using material cost estimates
Variable production costs
ç
Valuation using material cost estimates
Contribution margin I
Material overhead costs
ç
Valuation using material cost estimates
Fixed production costs
ç
Valuation using material cost estimates
Contribution margin II
Valuation Strategy:
You can define a valuation strategy in relation to the point of valuation, the record type, and the plan version (if applicable). You specify in the valuation strategy which of the methods mentioned above (valuation using material cost estimates, valuation using conditions and costing sheets, as well as user exit valuation) are to be used to fill the value fields and in which order these methods are to be implemented.
For more deatails of Valuation go through the following link :
http://help.sap.com/erp2005_ehp_03/helpdata/EN/7a/4c39b14a0111d1894c0000e829fbbd/frameset.htm
Hope this helps.
Regards,
Tejas
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can u throw light on what valuation u required ?
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