STEP 1

Start the transaction MRN1


Determine Lowest Value: Range of Coverage: initial screen




STEP 2

  1. Enter the company code 

  2. Key dateLast day of the month   = reference date for the calculation of R.O.C.

  3. Material typeZMAT : Finished products & RM & SF

  4. Click on Valuation level  to open a new window 




STEP 3

Select "Company Code"




STEP 4

Click on 

Enter:

  • “Upper limit” = “key date”
  • “Lower limit” = “Upper Limit” – 12 months

The range of dates corresponds to the period of analysis of the monthly stocks 

and enter 




STEP 5

Click on 

  1. Select and enter the range of date in the first range as the analysis period for the determination of consumptions.

and enter 


The option “Determine consumption via user exit” can be selected to apply the  rules  to calculate the range of coverage (average consumption).




STEP 6

Click on 

It is the standard cost of the month

  • If the transaction is run before the end of the month: 
    • Select the current material price
  • It the transaction is run after the end of the month: 
    • Select the Mat. Price Prev. Month

and enter 





STEP 7

  1. Check “Database Update” and 2 new buttons appear.
    • Never click on “Change Material Price”
  2. Click on 
  3. Check “Tax Price 1” to store the price calculated by the system


and enter 


Then start the calculation by clicking on 

Ignore the warning message by clicking on 




STEP 8

The report is displayed


  1. M aterial Master Data & plant code.

  2. Stock quantity at the end of the month (execution date)

  3. Average consumption on the last 12 months

  4. Number of months needed to consume the whole stock with the average consumption = Average stock (2) / Average consumption (3)

  5. Base price used for the calculation of impairment (= standard cost)

  6. % Deduct calculated in function of range of coverage (4)

    • Range of coverage < 12  = 0 %

    • 12 < Range of coverage ≤ 24   = 50 %

    • 36 < Range of coverage   = 100 %

    • 24 < Range of coverage ≤ 36   = 75 %

  7. New price on which the range of coverage is applied = (100 - % Deduct (6)) x Base price (5)

3 Comments

  1. Hi ROLLIER, Charlotte, Is the title of MRN1 - Industrial Supplies Depreciation should be corrected as  Calculate Range of coverage or others? Thanks.

  2. thanks Yijing (Elaine) Ni, I updated the title accordingly, please confirm it is correct now.