Responsibility area: Manage product costing
Guideline
WP2
It can be a material to be created in a trading plant (type = NDIR), in this case the material code won't be costed, you need to flag : "DO NOT COST"
STEP 1
Display the material master data of any code with MM03 and click on
STEP 2
Click on the button beside the plant code
STEP 3
Click on the button beside any plant code
STEP 4
Fill possible entries depending on your need
STEP 5
The plant type of 7703 is NDIR
- If the material is not created in a trading plant, it can be purchased or produced.
- It is produced when it has a procurement type " E " in the view MRP2: it can be a Semi-Finished product (valuation class = Z140) or a Finished product (valuation class = Z150). A production version is requested to create a produced material .
- It is purchased when it has a procurement type "F" in the view MRP2: it can be a Raw Material (valuation class = Z100), a packaging (valuation class = Z110) or a trading goods (valuation class = Z130). Trading goods are usually produced in another plant of the group. In this case the controller can request the use of a SpecProcurem Costing (in view costing 2) to identify the origin of the product. A purchase price is requested to create a purchased material.
Ensure that the form provided by requester is consistent with core rules.
All companies in WP1 (excluding Chile, Korea & Brazil) are not using Material ledger
All companies in PF1 & Brazilian & Chilean & Korean companies in WP1 are using material ledger
Definition
The valuation class has the following functions:
- Allows the stock values of materials of the same material type to be posted to different G/L accounts.
- Allows the stock values of materials of different material types to be posted to the same G/L account.
- Determines together with other factors the G/L accounts updated for a valuation-relevant transaction (such as a goods movement).
The valuation class cannot be easily changed if the material code has inventory and open orders associated with it. If the valuation class needs be changed after inventory movements then an UR needs to be raised.
In WP1, the valuation class depends on the type of material
Decision tree
It is a general principle but local rules can replace it
Definition
The valuation class has the following functions:
- Allows the stock values of materials of the same material type to be posted to different G/L accounts.
- Allows the stock values of materials of different material types to be posted to the same G/L account.
- Determines together with other factors the G/L accounts updated for a valuation-relevant transaction (such as a goods movement).
The valuation class cannot be easily changed if the material code has inventory and open orders associated with it. If the valuation class needs be changed after inventory movements then an UR needs to be raised.
In WP1, the valuation class depends on the type of material
Decision tree
It is a general principle but local rules can replace it
Definition
Indicates whether material ledger valuation is active for the material.
The indicator is turned on if the material ledger is active 
Definition
This indicator determines whether the material is costed using costing with or without a quantity structure.
This indicator determines whether the material is costed using costing with or without a quantity structure. Turn on the indicator
Definition
If this indicator is set, the material number will be written to the cost element itemization in the Controlling module.
This indicator is always turned on.
The profit center of the material master data is used to:
Identity to which GBU the material belongs = The profit center used must be part of the profit centers hierarchy of the GBU
Calculate industrial indicators by value stream = The profit center used must be included in the corresponding value stream
All profit centers must be attached to a node in the standard hierarchyIn WP2, there is one standard hierarchy per Controlling Area. Its structure must follow the standard rule
The profit center hierarchy can be displayed in SAP with:
Value stream
The value stream (VS) is the lower level of the profit center hierarch in WP1 system, where the profit centers are assigned through the "Profit Ctr Group".
Historically, the value stream nodes in the profit center hierarchy were used for some Industrial reporting on specific production lines but currently this reporting level is no longer used, unless there's a justified request for it. Nevertheless, we need to maintain the value stream node at a standard level.
Most of the value stream codes are already defined for a certain GBU and geographical zone and just need to be extended to a particular company code. It has to be always checked before creating a new code.
VALUE STREAM CODIFICATION in the profit center hierarchy:
X X X X - V Z Y M N XXXX - Stands for the company code
V - Standard for all the VS codes
ZY - Is used to define a specific GBU code as follows (the currently active GBU's are the ones highlighted):
•ZA for a VS under GBU ACETOW
•ZB for a VS under GBU PEROXIDES
•ZC for a VS under GBU COATIS
•ZD for a VS under GBU SODA ASH
•ZE for a VS under GBU ECO SERVICES
•ZF for a VS under GBU FIBRAS
•ZG for a VS under GBU ENG PLASTICS
•ZH for a VS under GBU SPECIAL CHEM
•ZI for a VS under GBU EMERGING BIOCHEMICALS
•ZJ for a VS under GBU TECHNOLOGY SOLUTIONS
•ZK for a VS under GBU COMPOSITES MATERIALS
•ZL for a VS under GBU SOLD ACTIVITIES (2003-2010)
•ZM for a VS under GBU SPECIALTY POLYMERS
•ZN for a VS under GBU NOVECARE
•ZO for a VS under GBU AROMA PERFORMANCE
•ZP for a VS under GBU POLYAMIDE & INTERMEDIATES
•ZQ for a VS under GBU Oil & Gas
•ZR for a VS under GBU CBS (former NON REPARTI RHODIA)
•ZS for a VS under GBU SILICA
•ZT for a VS under GBU RARE EARTH SYSTEMS
•ZY for a VS under GBU ENERGY
M - stands for the geographical zones, as follows:
EU: 0, 1, 2 NA: 3, 4 LA: 5, 6 AP: 7, 8 WW: 9 N - it's a serial number
Note: The value stream codes have to be included in table ZWFAT187 to be able to define the related descriptions in several standard languages.
For this, the codification has to be converted to an 8 digit code as follows (some of the digits are already defined when establishing the VS node in the profit center hierarchy):
C G U Z Y 0 M N CGU - Standard for all the standard VS codes
ZY - Is used to define a specific GBU code, as per list above
0 - Always zero
M - stands for the geographical zones, as per list above
N - it's a serial number
Link to the old WP2 Codification Value Streams Master (OBSOLETE).
Allocate variances = the last 4 digit of the profit center are equal to the last 4 digit of the IECRA where variances are posted in the P&L (process orders variances, PPV & Revaluation) (usually it is the last 4 digits of the non allocated IECRA of the GBU.
The Special procurement key is used for the determination of:
- Stock transfers (from one plant to another plant): The material is produced in another plant in the company code of the finished product, or in another company code (materials in other plants ),
- Subcontracting/Tolling (30): The material is provided by Syensqo companies and is processed by an external supplier,
- Phantom Assemblies: Represents a logical grouping of materials that is not produced as an assembly, yet is managed together,
- Direct production: The material is delivered directly to stock without the semi finished products.
- External Procurement (20): It is the process of procuring goods or services from external vendors.
For some specific cases, the codification of special procurement key may differ from one system to another.
Example of special procurement keys available in PF1:
In general, the special procurement key is recurrently used for:
- Stock transfers : The special procurement key is maintained in material master data whenever a product is transferred from one plant to another.
- In PF1, the special procurement key is only maintained for transferences between plants of the same company code
- In WP1, the special procurement key is maintained for transferences between plants of the same and different companies.
In case these rules are not followed accordingly, we may have some critical impacts in Stock Margin Elimination and Integrated Contribution Margin processes. The special procurement key is a very important field for the determination of integrated cost, mainly in WP1 system.
Example:
A material 1234 is produced in Plant a and then transferred to plant b.
In the master data of the material code 1234 in plant b a code "XX procurement from plant a" is entered in the field SpecProcurem Costing.
Example in SAP PF1:
Material code 195051 is produced in plant SMF and transferred to plant 6006 ( same legal entity 5835).
A SPK X1 was created to link this flow.
Then, the cost estimate (and the costs split) of plant SMF will be reflected in plant 6006.
Example in SAP WP1 :
Material code 46095 is produced in plant 0241 and transferred to plant 7667 (different legal entities → from company 7424 to ZFR3).
A SPK EU was created to link this flow.
Then, the cost estimate (and the costs split) of plant 0241 reflected in plant 7667.
Instructions
If the special procurement key does not exist, a request to IS CO Team needs to be raised. After, the RPA FICO Template needs to be prepared and sent to SU MAC Data Management Team for the updated of this field.
The Special Procurement key is maintained in the Costing 1, but it can also be maintained by the supply chain in the view MRP2 .
If there is no Special procurement type in the Costing 1 of the material master data, the system will consider the Special procurement type in the MRP view. If you have different special procurement types in the Costing 1 and MRP views, the entry in the Costing view is used - For cost estimate purposes, for example.
Definition
Key that determines the production version which is used to determine the quantity structure for the cost estimate.
A production version is used to calculate the cost estimate when :
- the procurement type is E In-house production (MRP2 view)
Click on “Versions” 
to display the list of existing production version. If there is no version available, the cost estimate cannot be calculated.
PF2
It can be a material to be created in a trading plant (type = NDIR), in this case the material code won't be costed, you need to flag : "DO NOT COST"
STEP 1
Display the material master data of any code with MM03 and click on
STEP 2
Click on the button beside the plant code
STEP 3
Click on the button beside any plant code
STEP 4
Fill possible entries depending on your need
STEP 5
The plant type of 7703 is NDIR- If the material is not created in a trading plant, it can be purchased or produced.
- It is produced when it has a procurement type " E " in the view MRP2: it can be a Semi-Finished product (valuation class = Z140) or a Finished product (valuation class = Z150). A production version is requested to create a produced material .
- It is purchased when it has a procurement type "F" in the view MRP2: it can be a Raw Material (valuation class = Z100), a packaging (valuation class = Z110) or a trading goods (valuation class = Z130). Trading goods are usually produced in another plant of the group. In this case the controller can request the use of a SpecProcurem Costing (in view costing 2) to identify the origin of the product. A purchase price is requested to create a purchased material.
Ensure that the form provided by requester is consistent with core rules.
All companies in WP1 (excluding Chile, Korea & Brazil) are not using Material ledger
All companies in PF1 & Brazilian & Chilean & Korean companies in WP1 are using material ledger
Definition
The valuation class has the following functions:
- Allows the stock values of materials of the same material type to be posted to different G/L accounts.
- Allows the stock values of materials of different material types to be posted to the same G/L account.
- Determines together with other factors the G/L accounts updated for a valuation-relevant transaction (such as a goods movement).
The valuation class cannot be easily changed if the material code has inventory and open orders associated with it. If the valuation class needs be changed after inventory movements then an UR needs to be raised.
In WP1, the valuation class depends on the type of material
Decision tree
It is a general principle but local rules can replace it
Definition
The valuation class has the following functions:
- Allows the stock values of materials of the same material type to be posted to different G/L accounts.
- Allows the stock values of materials of different material types to be posted to the same G/L account.
- Determines together with other factors the G/L accounts updated for a valuation-relevant transaction (such as a goods movement).
The valuation class cannot be easily changed if the material code has inventory and open orders associated with it. If the valuation class needs be changed after inventory movements then an UR needs to be raised.
In WP1, the valuation class depends on the type of material
Decision tree
It is a general principle but local rules can replace it
Definition
Indicates whether material ledger valuation is active for the material.
The indicator is turned on if the material ledger is active
Definition
This indicator determines whether the material is costed using costing with or without a quantity structure.
This indicator determines whether the material is costed using costing with or without a quantity structure. Turn on the indicator
Definition
If this indicator is set, the material number will be written to the cost element itemization in the Controlling module.
This indicator is always turned on.
The profit center of the material master data is used to:
Identity to which GBU the material belongs = The profit center used must be part of the profit centers hierarchy of the GBU
Calculate industrial indicators by value stream = The profit center used must be included in the corresponding value stream
All profit centers must be attached to a node in the standard hierarchyIn WP2, there is one standard hierarchy per Controlling Area. Its structure must follow the standard ruleThe profit center hierarchy can be displayed in SAP with:
Value stream
The value stream (VS) is the lower level of the profit center hierarch in WP1 system, where the profit centers are assigned through the "Profit Ctr Group".
Historically, the value stream nodes in the profit center hierarchy were used for some Industrial reporting on specific production lines but currently this reporting level is no longer used, unless there's a justified request for it. Nevertheless, we need to maintain the value stream node at a standard level.
Most of the value stream codes are already defined for a certain GBU and geographical zone and just need to be extended to a particular company code. It has to be always checked before creating a new code.
VALUE STREAM CODIFICATION in the profit center hierarchy:
X X X X - V Z Y M N XXXX - Stands for the company code
V - Standard for all the VS codes
ZY - Is used to define a specific GBU code as follows (the currently active GBU's are the ones highlighted):
•ZA for a VS under GBU ACETOW
•ZB for a VS under GBU PEROXIDES
•ZC for a VS under GBU COATIS
•ZD for a VS under GBU SODA ASH
•ZE for a VS under GBU ECO SERVICES
•ZF for a VS under GBU FIBRAS
•ZG for a VS under GBU ENG PLASTICS
•ZH for a VS under GBU SPECIAL CHEM
•ZI for a VS under GBU EMERGING BIOCHEMICALS
•ZJ for a VS under GBU TECHNOLOGY SOLUTIONS
•ZK for a VS under GBU COMPOSITES MATERIALS
•ZL for a VS under GBU SOLD ACTIVITIES (2003-2010)
•ZM for a VS under GBU SPECIALTY POLYMERS
•ZN for a VS under GBU NOVECARE
•ZO for a VS under GBU AROMA PERFORMANCE
•ZP for a VS under GBU POLYAMIDE & INTERMEDIATES
•ZQ for a VS under GBU Oil & Gas
•ZR for a VS under GBU CBS (former NON REPARTI RHODIA)
•ZS for a VS under GBU SILICA
•ZT for a VS under GBU RARE EARTH SYSTEMS
•ZY for a VS under GBU ENERGY
M - stands for the geographical zones, as follows:
EU: 0, 1, 2 NA: 3, 4 LA: 5, 6 AP: 7, 8 WW: 9 N - it's a serial number
Note: The value stream codes have to be included in table ZWFAT187 to be able to define the related descriptions in several standard languages.
For this, the codification has to be converted to an 8 digit code as follows (some of the digits are already defined when establishing the VS node in the profit center hierarchy):
C G U Z Y 0 M N CGU - Standard for all the standard VS codes
ZY - Is used to define a specific GBU code, as per list above
0 - Always zero
M - stands for the geographical zones, as per list above
N - it's a serial number
Link to the old WP2 Codification Value Streams Master (OBSOLETE).
Allocate variances = the last 4 digit of the profit center are equal to the last 4 digit of the IECRA where variances are posted in the P&L (process orders variances, PPV & Revaluation) (usually it is the last 4 digits of the non allocated IECRA of the GBU.
The Special procurement key is used for the determination of:
- Stock transfers (from one plant to another plant): The material is produced in another plant in the company code of the finished product, or in another company code (materials in other plants ),
- Subcontracting/Tolling (30): The material is provided by Syensqo companies and is processed by an external supplier,
- Phantom Assemblies: Represents a logical grouping of materials that is not produced as an assembly, yet is managed together,
- Direct production: The material is delivered directly to stock without the semi finished products.
- External Procurement (20): It is the process of procuring goods or services from external vendors.
For some specific cases, the codification of special procurement key may differ from one system to another.
Example of special procurement keys available in PF1:
In general, the special procurement key is recurrently used for:
- Stock transfers : The special procurement key is maintained in material master data whenever a product is transferred from one plant to another.
- In PF1, the special procurement key is only maintained for transferences between plants of the same company code
- In WP1, the special procurement key is maintained for transferences between plants of the same and different companies.
In case these rules are not followed accordingly, we may have some critical impacts in Stock Margin Elimination and Integrated Contribution Margin processes. The special procurement key is a very important field for the determination of integrated cost, mainly in WP1 system.
Example:
A material 1234 is produced in Plant a and then transferred to plant b.
In the master data of the material code 1234 in plant b a code "XX procurement from plant a" is entered in the field SpecProcurem Costing.
Example in SAP PF1:
Material code 195051 is produced in plant SMF and transferred to plant 6006 ( same legal entity 5835).
A SPK X1 was created to link this flow.
Then, the cost estimate (and the costs split) of plant SMF will be reflected in plant 6006.
Example in SAP WP1 :
Material code 46095 is produced in plant 0241 and transferred to plant 7667 (different legal entities → from company 7424 to ZFR3).
A SPK EU was created to link this flow.
Then, the cost estimate (and the costs split) of plant 0241 reflected in plant 7667.
Instructions
If the special procurement key does not exist, a request to IS CO Team needs to be raised. After, the RPA FICO Template needs to be prepared and sent to SU MAC Data Management Team for the updated of this field.
The Special Procurement key is maintained in the Costing 1, but it can also be maintained by the supply chain in the view MRP2 .
If there is no Special procurement type in the Costing 1 of the material master data, the system will consider the Special procurement type in the MRP view. If you have different special procurement types in the Costing 1 and MRP views, the entry in the Costing view is used - For cost estimate purposes, for example.
Definition
Key that determines the production version which is used to determine the quantity structure for the cost estimate.
A production version is used to calculate the cost estimate when :
- the procurement type is E In-house production (MRP2 view)
Click on “Versions” to display the list of existing production version. If there is no version available, the cost estimate cannot be calculated.