In the first phase, Overhead Cost Controlling supports multiple valuation methods for goods movements. Transfer prices for internal activities are not yet supported.
In Overhead Cost Controlling, you can store up to three different valuation methods at the same time:
The legal valuation method must be used throughout the Controlling (CO) component.
One of the three valuation methods must be defined as the "main" method. This one is stored as actual version 000. This valuation method reflects your operational managerial philosophy. You can only plan in Overhead Cost Controlling in this version, and only values in this version can be used as the tracing factor or referrence value for distribution, assessment, periodic transfers, accrual calculation and overhead costing. The active availability check monitors the actual values in this version.
You make the settings necessary for storing multiple valuation methods in Financials in the Implementation Guide (IMG) under "Controlling General" in the section "Multiple Valuation Approaches/Transfer Prices". There you will find the following steps:
Distribution, assessment and periodic repostings
Distribution, assessment and periodic repostings are all stored in up to three valuation methods. The costs to be allocated are selected from the corresponding versions. Values from the operational version can be used as a tracing factor. the allocated values may differ from those in the other valuation methods. However, this does not apply to assessment of cost center costs to Profitability Analysis (CO-PA), which is only stored in the operational valuation method.
Internal activity allocation
Internal activity allocations are stored in the operational valuation method only. The planned activity price used for the allocation is thus regarded as uniform for all valuation methods.
Indirect activity allocation and target=actual activity allocation work the same way.
Accruals and overhead
The operational valuation method forms the basis for accruals and overhead. The values calculated are valid for all three methods.
Settlement is updated in all three valuation methods except for settlement to assets or to profitability segments. The system uses the legal valuation method for assets and the operational valuation method for profitability segments. You can only settle line items to an asset if the legal valuation method is your operational method.
The system reposts documents (with reference) in each valuation method with the amount updated when the document was originally posted. It is not possible to repost values for multiple valuation methods.
Documents and line items
Separate line items are created for each valuation method when you post a document. These line items all belong to the same document header.
Analyses and information system
Variance analysis is only possible in the operational valuation method. The information system in Overhead Cost Controlling can use all the valuation methods. The screen where you choose which valuation method you want to see is only visible if you have activated multiple methods. In the information system, you can run comparisons between the plan values in the operational method with the actual values in another method.
Commitments are only stored in the operational version. The active availability check compares the actual values in this version with the released budget. Thus the availability check also runs in this version.
Reconciliation with Financial Accounting
All three valuation methods are updated in the reconciliation ledger. Reconciliation postings are made in all the methods stored in Financial Accounting. Methods not stored there are ignored. The default settings for reconciliation reports and the cost flow report display the values using the legal valuation method.
For more information on transfer prices, see: