Valuation Strategies

A valuation strategy controls how value fields are valuated in costing-based Profitability Analysis. It determines which methods are to be used to fill the individual value fields as well as the order in which these methods are to be applied.

You can valuate your value fields using the following methods:

Valuation using CO-PA-specific conditions

Valuation using product cost estimates

Valuation using customer-defined valuation routines

In CO-PA planning, you can also valuate your data using conditions and costing sheets from the Sales and Distribution (SD) application component.

Example

The following valuation strategy calls for valuation using product costing, then using a CO-PA costing sheet ("ACT001" ), then using a user-programmed valuation routine ("U01").

 Sequence	Appl. Cstg sheet  Name	 Prod.cstg Qty field  Exit no.
	10										X	 VVIQT
	20	 KE	 ACT001							VVIQT
	30														U01 

Valuation using product costing is used primarily to determine the cost of goods manufactured of the products sold in billing documents that are transferred to CO-PA. It allows you to add the fixed and variable cost of goods manufactured to the CO-PA line item in order to compare them to the sales revenues and sales deductions transferred with the original billing document.

The conditions technique lets you calculate values that are required for analyzing contribution margins in CO-PA but are not yet known at the time the original document is posted. In particular, this make it possible for you to calculate such values as sales commission, cash discounts, sales deductions, or freight costs.

You can use your own valuation routines to calculate any values that cannot be determined using either of the above methods.

Activities

First, define the valuation strategies you want to use. Then assign these strategies to the desired points of valuation.

Further notes

Each valuation step contained in a CO-PA valuation strategy is assigned a number. This number determines the order in which the system processes the steps in that strategy.

Value fields that are filled using a previous valuation step are not overwritten by subsequent steps. The only exception to this is when you use a user exit. Once a value has been calculated in one step, you can use that value to calculate other values in subsequent steps.

As a rule, value fields that are filled before valuation is carried out in CO-PA -- regardless of whether they were transferred from SD or entered manually -- can only be changed or overwritten in valuation by a user exit. The only exception to this are values entered manually in CO-PA planning. Here the values found using automatic valuation always take priority over values entered manually in the planning layout.

Plan valuation using pricing procedures from Sales and Distribution (SD)

When defining valuation strategies especially for CO-PA planning, you can also use pricing procedures from SD (application class "V" in the field "Application"). Note that you cannot use SD pricing procedures for actual data, since here the condition values are already transferred directly from the billing document to CO-PA according to how the value field assignment for the SD interface is defined.

For valuation using SD conditions as well, the values are transferred from the condition types to the CO-PA value fields according to the Wertfeldzuordnung defined for the SD interface.

Under certain circumstances, some condition types from SD cannot be used in CO-PA to valuate plan data. For example, the access sequence in SD may use condition tables that contain characteristics not defined in your operating concern. Consequently, before using SD pricing procedures, you should check to make sure that the fields required for the condition types are used as characteristics in your operating concern. Otherwise the system will not find the correct condition records, even if these are defined in SD.