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ERPCorp SAP FICO Blog
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By John Jordan
In SAP S/4HANA, materials are typically valuated using either Standard Price (S) or Moving Average Price (V). The appropriate price control depends on the type of material and how you want inventory price differences to be handled.
Standard Price keeps current-period valuation stable and records relevant differences separately. Moving Average Price adjusts the inventory price as valuation-relevant receipts and invoice differences change stock value. This guide compares the posting effects and explains how each method relates to Material Ledger and optional Actual Costing.
Read more: SAP Standard Price vs. Moving Average Price in S/4HANA
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By John Jordan
What Is Purchase Price Variance in SAP?
Purchase Price Variance (PPV) in SAP S/4HANA occurs when the actual procurement cost of a material differs from the price used to value the material. For materials using Standard Price (S), differences between the standard price and goods receipt or invoice receipt values can be posted to price difference accounts. A purchase order alone normally does not create an FI price-difference posting.
Analyzing PPV helps Purchasing identify the causes of procurement cost variances, including changes in supplier prices, purchase order prices, freight costs, exchange rates, and invoice prices. Assigning PPV to Purchasing also provides greater visibility into the materials and transactions driving those differences.
Read more: SAP Purchase Price Variance (PPV): Posting and Analysis in S/4HANA
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By Stoil Jotev
Different fiscal year variants can complicate parallel valuation in SAP S/4HANA Asset Accounting. This article explains a 4-4-5 versus calendar-year example, the additional representative ledger approach, and its implications for depreciation reporting.
Release scope: Stoil Jotev’s original example describes the approach associated with SAP Note 2220152. Newer scenarios, including Universal Parallel Accounting, provide different support for alternative fiscal year variants. ERPCorp has added the release guidance below; confirm the supported design for your SAP release and deployment before applying the example.
Read more: Fiscal Year Variants in SAP S/4HANA Asset Accounting
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Introduction
SAP MM account determination controls how goods movements in Materials Management (MM) automatically generate postings in Financial Accounting (FI). It ensures that inventory receipts, goods issues, and material consumption are recorded in the appropriate general ledger (G/L) accounts.
Transaction OBYC is used to configure automatic account determination in SAP ECC and SAP S/4HANA on-premise and Private Edition. The system determines the appropriate G/L accounts using transaction keys, valuation classes, account modifiers, and other configuration settings.
For a valuated goods receipt of stock material against a purchase order without account assignment (movement type 101), SAP typically debits inventory and credits the Goods Receipt/Invoice Receipt (GR/IR) clearing account. Price differences can create additional lines. When materials are issued to a production order using movement type 261, SAP credits inventory and debits material consumption.
This article explains how SAP MM-FI account determination works, including OBYC configuration, transaction keys BSX, WRX, and GBB, valuation classes, and the accounting entries generated by common movement types.
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By John Jordan
How SAP Internal Order Budgeting Works
SAP Internal Order budgeting allows you to define approved spending limits for an Internal Order and monitor costs against those limits. Budgets can be maintained at an overall or annual level, depending on the requirements of the organization.
Availability control monitors actual costs and commitments against the available budget, subject to the configured checks and exclusions. When defined tolerance limits are reached, SAP can issue warning or error messages to help prevent spending from exceeding the approved budget.
Read more: SAP Internal Order Budgeting and Availability Control
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By Tom King
When I was a charter member of my company's SAP FICO product costing team, the first item I encountered was activity type. Activity types classify the activities performed by cost centers. Activity quantities serve as tracing factors for allocating costs to receivers, such as other cost centers, orders, and WBS elements. First, in this article, let's create an activity type.
Read more: SAP Activity Types in S/4HANA: Categories and Prices
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By John Jordan
What Is the Difference Between Process and Production Orders?
SAP production orders and process orders are both manufacturing orders used to plan, collect, and analyze production costs, but they support different manufacturing environments.
Production orders are typically used in discrete manufacturing, where a bill of material (BOM) and routing define the components and operations required to manufacture a product.
Read more: SAP Process Orders vs. Production Orders in S/4HANA
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Material price determination in SAP S/4HANA controls how material prices are calculated and how inventory is valued in SAP Material Ledger. The material master Accounting 1 view contains two related settings: Price Control (S or V) and Price Determination (2 or 3).
Price control determines whether current-period inventory transactions use a standard price (S) or moving average price (V). Price determination specifies transaction-based processing (2) or single-level and multilevel processing (3), which supports Actual Costing.
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By Ross Christoph
What Is SAP Mixed Costing?
SAP mixed costing allows organizations to calculate a material cost estimate using multiple procurement or production alternatives. It is useful when the same material can be manufactured using different production versions, master recipes, or procurement methods.
Instead of calculating a standard cost based on only one alternative, mixed costing calculates the costs of the selected alternatives and combines them using weighting factors.
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Make Trading Partner Mandatory with SAP FI Validation
To require a Trading Partner for selected SAP FI postings, define an FI validation that checks whether VBUND is populated. In classic SAP systems, maintain the rule in GGB0 and activate it for the relevant company code and callup point in OB28.
Making the field available for entry is only part of the solution. The rule must identify the transactions that need a partner, run when the relevant data is available, and issue an error if the required value is missing.
Read more: How to Make Trading Partner Mandatory in SAP FI – Part II