Prerequisite

 WP1 Worldwide

 The purpose of this document is to explain how to generate the proposition and how to account in ERP the valuation of the stocks at the “fair value” in order to give relevant information about the “real value” of the company to all economic actors (share-holders, legal authorities...).   

           
  Inventory Valuation process   

Area: Calculate and post Inventory Reserves    

previous Operation(s):      

Rules & Glossary: Costing - Rules Costing - Glossary Costing - SAP Operations

Before the closure in the months of March, June, September and December. The final validation and postings should be done until D-5 at the latest. 

RtR Service Center runs the transactions and prepares the Excel files with proposal of rotation and financial depreciation.

Controllers are responsible to analyze the posting proposal sent by RtR Service Center and provide the final validation for the depreciation amounts to be posted, indicating the changes to be done to the original posting proposal. In some cases, an additional comment on the largest variances between depreciation proposed and validated is required.

You can refer to Rules - Inventory Impairment.  

 

 

  

Guideline

    (thumbs up) The posting of Inventory depreciation can only be carried out after validation of the responsible Controller. In the validation reply to the initial proposal, the depreciation amounts must be indicated for each specific material.

 

     You can refer to Rules - Posting of Inventory Depreciation


Reference

 

Next Operation(s):