The purpose of this document is to explain how the Inventory Revaluation Reverse program will work for December closing 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 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 the amounts related to VC (Variable Cost) Inventory Reval will be reversed in January P&L and backposted 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).
This procedure is applicable to all WP1 WP2 companies.
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This Procedure is not applicable to WP1 WP2 companies using Material Ledger (Brazilian and Korean companies). |
See Finance - Glossary:
WP1December closing D2.
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| title | I run the inventory valuation reverse in test mode |
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Start the transaction ZWFA100A
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Inventory valuation reverse: initial screen |
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The transaction can be launched in test as many times as required, to check the proposal before actual processing. |
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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 
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| The inventory valuation reverse is displayed. Extract the report and perform the totals by VC/CP, FC/CNP and DEP/AMO. | Info |
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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. |
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| title | I control the result of the calculation (Once the transaction ZWFA100A is executed in real mode) |
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| Start the transaction KE30 (make sure you are in the right controlling area) and select the report 
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Run Profitability Report: initial screen |
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| Enter Reporting Currency = 10 Fiscal year (year that we are closing - 2015 for example) Company Code Select "Classic drilldown report"
Execute
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| 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). |
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| Enter Reporting Currency = 10 Fiscal year (following year - 2016 for example) Company Code Select "Classic drilldown report"
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| 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
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| title | In case of system is not working properly |
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The next section will explain how to to run and post Inventory valuation reverse, in case of the system is not working properly (fails). |
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| title | Inventory valuation reverse (Manual process) |
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| title | I run the inventory valuation reverse in test mode |
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ZWFA100A - Processing Stock revaluation reverse - December closing | ZWFA100A - Processing Stock revaluation reverse - December closing | | Expand |
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The file downloaded is sent to the Plant Controller. Please see the example (file SBS-FRM-DRTR-03-011 – Stock Revaluation December 2011 by January.xls) of Inventory Valuation extraction file in December 2011/January 2012. The file is used to prepare the manual postings. Only the amounts related to VC Inventory Reval will be reversed in January P&L and posted in December. The Reval of FC and Dep should remain in January. |
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| title | I perform the postings |
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The amount in line D52 in January will be split into VC, FC and DEP. To perform the reclassification entries the recommended solution is to use directly the FI Accounts that impact both FI and COPA (without the need for a cost center):
98154199 VC ADJUSTEMENTS - COPA- impact line D45(Posted in December and Reversed in January next year). Reversal of E45 and F45 postings in January are also done in this line.98254199 FC ADJUSTEMENTS - COPA- impact line E45 (Posted in January next year, counterpart in line D45)98258199 FC DEPRECIATION – COPA- impact line F45 (Posted in January next year, counterpart in line D45) Find the Excel files with the data matrix provided to prepare the posting at the Appendix Section in the Appendix (file SBS-FRM-DRTR-03-012 – Posting Data FI-COPA .xls for COPA fields and file SBS-FRM-DRTR-03-013 – Inventory Valuation Decembre – CDC for GBU.xls for cost centers).
For the posting in December, use account 98154199 VC ADJUSTEMENTS - COPA for such entries with counterpart in Stocks Accounts 31000109 (Raw Materials) and / or 37000109(Finished Goods, Semi-finished and Trading).
Each GBU has a Cost center for Inventory Valuation so this would be the privileged solution. But to this end, it also remains the possibility of using the cost centers used in previous years. See attached Excel file at the Appendix Section.
End of document.