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Tasks to be completed when documenting an operation (from creation to publication)

 1. Enter the Title of the operation / page

2. Add the following Labels : 

    • Scope of applicability: ww, country_accounting 

    • Country or group of countries (if applicable): belux, china, france, italy, lam, nam, uk_ie, bulgaria, dach, netherlands, iberia, poland, latvia, australia, india, japan, south_korea, thailand, singapore, new_zealand, emea_transversal, apac_transversal

Unit and Domain according to the List of labels to be used in the Finance Service Line space

E.g. 1: WW Operation in Financial Accounting under domain "Central Finance Processes & Compliance":
Labels to be used: ww, financial_accounting, central_fin_proc_compliance
  • E.g. 2: France Operation in Financial Accounting:
    • Labels to be used: country_accounting, france, financial_accounting
      (for country operations, the Domain is always country_accounting)

    • 3. Fill in all fields as described above

    4. Name the title of each section using OPD methodology naming convention - Infinitive verb without the “to”, mainly action verb...something) - " I do something..."

    5. Once the description of the operation is completed, ensure it is approved and published by launching the SBS-Finance approval workflow 

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    Domain: Costing
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    Responsibility area: Supervise Inventory Valuation

    Table of contents 

    Table of Contents
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    Panel
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    Scope

    ERP

    Image RemovedWP2

    Frequency

    Image Removed

    References

    ;
    • KE30
    Forms

    Attachments

     

     

    Previous OP <<

    Page_title
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    1. Objective and Scope

    kska

    1.1. Objective of this Operation

    The purpose of this document is to explain how to reverse the automatic Inventory Revaluation done by the system in the current period and repost the inventory revaluation in previous period split it into Variable / Fixed / Depreciation in COPA.

    1.2. Scope

    (to complete)(error)This procedure is applicable to all WP2 companies.

    Warning

    This Procedure is not applicable to WP1 WP2 companies using Material Ledger (Brazilian and Korean companies).

    2. Definitions

    See Finance - Glossary:

    3. Tasks description

    3.1. Periodicity

    This procedure should be executed in the monthly closure on D2. For December yearly closure, a specific procedure must be followed (see I perform the year-end Inventory revaluation reverse).

    (please confirm if the next three paragraphs are in the right place)(error)

    At period-end closing, stocks are reevaluated on the 1st day of the month after the closure (calculation of new Standard Cost Estimate).

    This revaluation must be transferred to the period of the closing, and split into VC/FC/DEP (Variable Cost / Fixed Cost / Depreciation Cost).

    As result, Stock revaluation in the Profit & Loss Statement is done by material / plant / Profit Center (deriving into IECRA) & divided into VC/FC/DEP on the period of the closing, instead of just into VC in the following month.

    3.2. Responsibilities

    SBS -RtR-BO (change RtR-BO)(error) Finance Operations: 

    • After calculating and releasing the standard price for period M+1 via CK40N, the revaluation postings are reversed in month M+1 and re-posted in month M, divided into VC/FC/DEP.

    SBS-RtR (change RtR)(error) WW Costing ExpertsManagement Accounting Service Unit Expert Costing: 

    • Responsible to validate the posting scheme in table ZWFAT151. IS will update this table in the ERP after PE validation.

    3.3. I run the inventory valuation reverse

    The costing run (CK40N) release generates a revaluation variance (difference between the new and the old standard cost), which is posted as variable cost variance in the new month, and updates the cost of inventory in stock. But this is not the ideal solution:

    • Some variances are due to changes in standard fixed cost and depreciation (due to changes in routing or product version, for instance), not just VC, so the standard solution might lead to distortion in Contribution and EBITDA analysis;
    • The inventory revaluation is posted on the new month, when group procedures establish having an updated inventory cost at month’s closing;

     

    Therefore, the following actions must be ensured:

    1. Maintain posting scheme table: ZWFAT151 (by RtR WW Costing ExpertsManagement Accounting Service Unit Expert Costing).
    2. Processing Stock revaluation reverse: ZWFA100A – always in background.

    Which are divided in 3 phases:

    • Reverse of Revaluation of stock issued from Costing run (in period M+1)
    • Posting on Revaluation of stock into period M (100% VC)
    • Split of the revaluation of stock into VC/FC/DEP in period M


    Include Page
    WP1 WP2 - Table ZWFAT151WP1
    WP2 - Table ZWFAT151

    Include Page
    Monthly Closing - ZWFA100A - Processing Stock revaluation reverse
    Monthly Closing - ZWFA100A - Processing Stock revaluation reverse

    3.4. I control the result of the calculation

    Include Page
    ZWFA100A KE30 Report - Control the result of ZWFA100AZWFA100A
    KE30 Report - Control the result

    End

    of

    document.

    ZWFA100A

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