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 




Domain: 1. Enter the Domain identified in OPD matrix (for Country specific operations, Domain = Country Accounting)



Responsibility area: 2. Enter the responsibility area described in OPD matrix ("N/A" for Country Accounting Operations)


Table of contents 

By default the table of contents displays Heading 1 & Heading 2 (other levels can be added)



Scope

3. Remove the icon when not applicable

ERP

4. Remove the icon(s) when not applicable

Frequency

5. Remove the icon(s) when not applicable

 

   

References

6. Add the link to SAP transaction(s) (when it exists)



Forms

7. Insert the links accordingly and change the link text with the OP nam



Attachments

8. Add the link to attachments or external links




Previous OP << >> Next OP



1. Objective and Scope

1.1. Objective of this Operation

WHY - Describe the objective of the operation


1.2. Scope

Detail the scope (legal entities, etc.)


2. Definitions

Definitions should be added in the Finance Glossary - Add definition and link it to respective Letter in Finance Glossary 

See Finance Glossary:

  • ...

3. Tasks description


3.1. I verify that the previous dependent steps have been performed

Confirm that Product Costing is successfully completed.

3.2. I launch the calculation of Inventory valuation

All the finished and semi-finished goods are preliminary valuated at standard costs during the month. Consequently, at the end of the period, it is necessary to run Material Ledger, in order to correct the standard price, calculating an actual price for each material, based on all the actual costs for that specific period. This actual price is called “periodic price unit” and can be used to revaluate the material stock for the mentioned period.

Actual Costing - determines what portion of the variance is to be debited to the next highest level using material consumption. With the actual BOM, variances can be rolled-up over multiple production levels all the way to the finished products.

Material Ledger is activated at company level but its use can be limited by plant or by article. So, if one plant is customized with ML, all the articles in this plant will have material ledger postings but with a different importance depending if the article is included in the end of the month procedure or not.

After the run of Material Ledger, all the inventory stocks are revaluated at actual prices and actual production cost of the period.

For WP1 companies, Material Ledger is performed only for Brazil and South Korea, due to fiscal purposes and for that reason the postings are done in local accounts.

The transaction is composed of 5 flow steps which have to be launched in a sequential way and ends with the post closing step. The Revaluation of Consumption only applies to Mercosur companies and the last step “Mark material prices” is not used in Solvay companies.




In case of FI accounts closed please bear in mind that information in MM might be impacted (CKM3 information). In case this occurred please refresh cockpit to have the most updated status for the materials.

As action, open FI period,  re-run post closing step and refresh cockpit again.  

If accounts are not opened and material ledger is not refreshed, re-run ML cockpit will be kept in error, originating problems in the following period.


3.3. I check that there are no errors in Material ledger

Check the log of each step processed in CKMLCP to see if there are errors, even with all the status green.

Besides the errors that can appear in the log of each step, above you can find some of the possible errors that we can find during the run of Material Ledger:


  • Single Level Price Determination 



"You cannot perform price determination in period XXX/YYYY"

This error happens because we are creating a Costing Run for future periods and, so, we have to correct the period.

Or else, if we are in the actual period, it means that the Material Ledger wasn’t performed for the previous period and, in that case, we have to check the reason for that and, if necessary, contact locals.


 





"Carry out period-end closing for material XXXXX in the previous period" 

In this case, there is an inconsistency in the master data of material 32690 (Plant RBAE). This material is marked with “Price Determination: 3 Single-/multi-level” and “Price Control: S Standard price” (transaction MM03 – Accounting 1). This means that this material has to be integrated on the Material Ledger for the current month. However, as it wasn’t included on the previous one, it’s generating an error.

In these cases, we have to check with locals if they want to include the mentioned material on ML for the closing month. If they don’t, the material’s master data has to be changed from “Price Determination: 3 Single-/multi-level” to “Price Determination: 2 Activity-related”. After, we have to re-start the ML for the closing month.

If locals want to include this material on the Material Ledger (meaning that we should leave the master data as it is), we will have to check this situation with them and find a way to run ML for the previous period, for Material 32690 / Plant RBAE, because it had already movements on the previous month.


 

 



  • Multilevel  Price Determination



"Periodic Unit Price of the material will be negative"

Differences were collected in the period to be settled and, after the recalculation, a statistical periodic unit price has been calculated with a negative price.

 

To correct this, we must check if all production orders are settled, and settle the ones that still remain with amount. After having all the production order settled, if we remain with the same error, we need to exclude the mentioned material from the multi-level parameters:

 


 

 





"The actual price for XXXX could not be determinated"

To solve we need to go to transaction KBK6 and manually change the actual price for the cost center and activity type in error:

 

In order to not have a variance, we just copy the amount that we have in column VarPlanPriceAreaand paste it to column FxdActPriceArea.

After we must repeat this step (Multilevel price determination) for ML.


 

 



  • Post Closing



"Material XXXXX in valuation area YYYY locked"

Someone is using the material at the same time that we are running Material Ledger. We have to wait until that person leaves the material and re-run this step for the ML.


Remark: This error can also happen on other steps of Material Ledger.


 

 





"Period XXX/YYYY is not open for account type M and G/L XXXXXXXXXX" 

 The period is not open.

Go to transaction OB52, open the necessary account type and G/L account and re-run the step.


 





"Account determination for entry COCA LKW not possible"

When choosing the parameters selection, the option "Revaluate Material" was not flagged, causing this debit credit inconsistency.

In order to correct this error we have to reverse ML and re-execute the last step flagging the correct fields.


 





"Maximum number of items in FI reached"

The maximum number of items for a FI document has been exceeded.

To correct this error we have to change the field “No. of Materials in ML Doc.” from 50 to 1:


 





End of document.