Valuated Sales Order Inventory

Description

From 4.0A onwards you can valuate your sales order inventories. All goods movements then result in postings in Financial Accounting. That is, goods issues reduce the inventory and goods receipts increase it.

The flow of quantities and values in the valuated sales order inventory is the same as that in make-to-stock production.

This means that valuation of the inventories by results analysis is no longer required.

The valuated sales order inventory enables you to do the following at the level of the objects assigned to a sales document item (such as production orders):

As a sales order manufacturer, the valuated sales order inventory allows you to use standard costing rather than actual costing which is required with nonvaluated sales order inventories.

When the sales document item is delivered to the customer, it is debited with the costs at the time of the goods issue. Before delivery to the customer, you can report the funds commitment at the sales document item in your inventory as statistical actuals.

Change system parameters in customizing

In Customizing, you specify whether you want to valuate your sales order inventory in the parameters for the Product Cost by Sales Order component under Check Requirements Classes with the Valuation indicator.

See also: Check requirements classes

Dependent functions

If you implement the valuated sales order inventory, results analysis is normally no longer needed.

Further notes

For more information on valuated sales order inventories, see the documentation for the Product Cost by Sales Order component.