Start the transaction MRN1

 

Determine Lowest Value: Range of Coverage: initial screen

 

 

  1. Enter the company code 

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

  3. Material type: ZMAT : Finished products & RM & SF

  4. Click on Valuation level  to open a new window 

 

 

Select "Company Code"

 

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 

 

 

Click on 

  1. Enter the range of date in the first range as the analysis period for the determination of consumptions.

  2. Select  the option “Determine consumptn via user exit” to apply the  rules  to calculate the range of coverage (average consumption).

and enter 

 

 

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 


 

 

  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 

 

 

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)