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Valuing Inventories using mixed costing

Valuing Inventories in SAP using Mixed Costing

Posted on 30/04/2014 by Rajesh Shanbhag | 2 Comments

Overview Mixed Costing allows customers to cost materials as a mix of multiple procurement sources. As a simple example, Mix Product cost of a procured material could be the weighted average of purchase price from multiple vendors (i.e. vendors is “procurement alternative” for Mixed Costing). SAP allows you to define the weightage for each procurement alternative. This Product cost using…

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Can we Accrue Revenue at Outbound Delivery?

Can we Accrue Revenue in SAP at Outbound Delivery?

Posted on 04/04/2014 by Rajesh Shanbhag | 1 Comments

In SAP Procurement, we can accrue liability when we receive materials. This accrual is offset to Vendor account when Vendor invoice is input into the system. Typically, the accounting entry would be as follows: At time of Goods receipt: Debit          Inventory Credit         Goods Receipt/ Invoice Receipt clearing At time of input of…

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Valuing Inventories using Purchasing documents

Valuing Inventories in SAP using Purchasing documents

Posted on 02/04/2014 by Rajesh Shanbhag | 0 Comments

Inventories can be costed in SAP automatically using existing Purchasing documents in the system. Purchasing documents could be Source Lists, Purchase Info Records, Purchase Orders, Contracts. If the Product Costing variant is configured to pick Purchasing documents, it will search for Purchasing documents in a specific order and use the value on that document as the source to value the product.

SAP Product Costing - a Primer

SAP Product Costing – a primer

Posted on 04/03/2013 by Rajesh Shanbhag | 14 Comments

Product Costing in SAP is a mature process that has been implemented and being used by several of SAP customers. The significant limitation with Product Costing was that it was biased significantly towards Standard Cost. Over years, Product Costing spawned a new feature in SAP to handle this limitation – Material Ledger. Product Costing along with Material Ledger allow customers…

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Document Splitting in New GL in SAP #12: Document Splitting and unrealised foreign exchange loss/ gain

Posted on 31/10/2012 by Rajesh Shanbhag | 3 Comments

Overview In a previous blog, I demonstrated the Document Splitting process for realised foreign exchange gain/ loss. In this blog, I will demonstrate the Document Splitting process for unrealised foreign exchange gain/ loss. Unrealised foreign exchange gain/ loss occurs when a company has an outstanding payable/ receivable in a foreign currency and the value of currency has changed since the…

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Document Splitting in New GL in SAP #11: Document Splitting and realised foreign exchange loss/ gain

Posted on 22/10/2012 by Rajesh Shanbhag | 11 Comments

Overview SAP ECC newGL Document Splitting process supports certain “subsequent processes whereby the system transfers document splitting characteristics from the original process to the subsequent process.” Users are not required to configure any extended Document Splitting rules to split documents from subsequent processes. If subsequent processes post line item to cost centres, the system ensures that these cost centre relevant…

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Can SAP ECC newGL replace your existing Special Ledger?

Posted on 09/10/2012 by Rajesh Shanbhag | 6 Comments

Overview One of the common question most customers ask me “Can SAP ECC newGL replace my existing Special Ledger?” However the answer to that question is far from simple. One needs to understand the purpose and design of the existing Special Ledger and map those to SAP ECC newGL features to be able to give a definitive answer. In this…

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sapi·ence n. ability to apply knowledge or experience or understanding or common sense and insight

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