Domain: Costing

Responsibility area: Supervise Inventory Valuation

Table of contents 


Scope

ERP

WP2

Frequency

References

Forms

Attachments


 

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1. Objective and Scope

1.1. Objective of this Operation

The purpose of this document is to explain how the Inventory Revaluation Reverse program will work for December closing.


December Closing:

As a regular rule, the ZWFA100A transaction is executed monthly.

At the end of the year, however, standard cost is impacted not only by master data changes, but also by the changes in fixed cost / depreciation activity type price for the New Year (updating of expenses in cost centers and their production capacity). These changes are year specific. 

Although, the program will run as usual at December closing but the postings performed will be different from a regular month:

Only the amounts related to VC (Variable Cost) Inventory Reval will be reversed in January P&L and back posted to December (D50 in KE30). 

The Reval of FC (Fixed Cost) and Dep (Depreciation) should remain in January (E50 and F50 in KE30).

1.2. Scope

This procedure is applicable to all WP2 companies.

This Procedure is not applicable to WP2 companies using Material Ledger (Brazilian and Korean companies).

2. Definitions

See Finance - Glossary

3. Tasks description

3.1. Periodicity

December closing D2.

3.2. I run the inventory valuation reverse in test mode



STEP 1

Start the transaction ZWFA100A


Inventory valuation reverse: initial screen

The transaction can be launched in test as many times as required, to check the proposal before actual processing.



STEP 2

You can look for an existing variant by clicking on 

Select the variant and 

Enter the period to be reversed: When you enter 01/2016, the revaluation of stock on 01.01.2016 will be reversed & posted on 31.12.2015.

Execute 





STEP 3

The inventory valuation reverse is displayed.

Extract the report and perform the totals by VC/CP, FC/CNP and DEP/AMO.

Remember that only the amounts of VC will be posted in December (D50).

If it is confirmed that the sum of VC of the excel file retrieved is equal to the amount proposed for the posting, the transaction ZWFA100A can be executed in real mode. 

3.3. I control the result of the calculation (Once the transaction ZWFA100A is executed in real mode)



STEP 1

Start the transaction KE30 (make sure you are in the right controlling area) and select the report 


Run Profitability Report: initial screen



STEP 2

Enter

  1. Reporting Currency = 10

  2. Fiscal year (year that we are closing - 2015 for example)

  3. Company Code

  4. Select "Classic drilldown report"

 Execute 







If you have a warning message, click 



STEP 3

Check the amount in the value field D50 in December, that should be the same as the result of the transaction ZWFA100A. 

REMARK: Enter in the line items of the value field "D50" and make the sum or filter by the date of the posting in column "Created on".

You will find the amount on the date that you perform the posting (entry date in the system).



STEP 4

Enter

  1. Reporting Currency = 10

  2. Fiscal year (following year - 2016 for example)

  3. Company Code

  4. Select "Classic drilldown report"

 Execute 







If you have a warning message, click 

 

STEP 5

Check the amounts in the following value fields in January, that should be the same as the results of the transaction ZWFA100A. 

  • D52 -> Shows the reverse of Total costs (VC + FC + DEP)
  • D50 -> Shows the Total costs (VC + FC + DEP)
  • E50 -> Shows the FC
  • F50 -> Shows the DEP