Valuing Inventories using mixed costing

Valuing Inventories in SAP using Mixed Costing

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?

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

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

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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Intra-company Transfer Pricing using SAP Material Ledger

Previous to SAP Material Ledger, implementing a process of Transfer Pricing in SAP for intra-company transfers used to be a mini-project comprising writing a bunch of custom codes, tweaking some configuration and possibly coding some user exits. This process can also be achieved thru a complex set of “internal” sales & purchase order process with a more complex web of pricing, custom codes, and accounting entries. With…

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Improve productivity and reporting with SAP Material Ledger

SAP Material Ledger has come a long way since my first implementation in 2000 with SAP version 4.5.  That was an implementation in Transfer Pricing for intra-company code transfers. Then another 2 implementation to activate multiple currencies for a global implementation. And 1 implementation for Material Ledger currencies, and actual costing. The initial versions of Material Ledger were resource consuming functionalities,…

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