With the implementation of SPS it was created 1 technical CC *843*, which will receive amounts during all month (at each movement done in the material), registered with the price of the respective material.

At the end of the month, with ML and Integrated Margin, the material price is updated and this is also posted in the same CC *843*.

This means that this CC will collect all the price differences of each material, and that it should be balanced after running the Material Ledger and Internal Margin, and should remain only with a small amount, that will then be allocated to value field D43 with a cycle.




Go to KSB1, select your cost center(s) and the layout "/SPS VAR" (this layout is excluding some items which should not be considered as a ML variance,  for example subcontracting POs)


Update the number of lines to the maximum 999999999


Execute


Accounts excluded automatically in this layout:




Identify the materials with an unbalanced amount




Material balanced with Internal Margin Program

As mentioned on the beginning of the procedure, the Cost Centers *843* should be balanced with the run of Material Ledger and/or Internal Margin.

When the CC is balanced with ML, it's easy to analyze, as all documents have the material code, so we can make a sub-total by the material. Anyway, it's important to know that the Internal Margin posts the documents in the CC without the material code, making more difficult to identify these situations. So, how to






Analyze the reason for the unbalanced amount -  usually after running the last step of ML, all materials should be 0


All materials with amounts higher than the threshold agreed (see below) should be analyzed before running the cycle to COPA:

  • KLE: Threshold by product 5.000 € (to be converted accordingly for the non-EUR companies), with a maximum of 50.000 € by company code.
  • Non KLE: Threshold by product 1.000 € (to be converted accordingly for the non-EUR companies), with a maximum of 25.000 € by company code.

Situation 1 - Material is S2:


The Material Ledger will roll-up the variances only for materials with the following master data (to be checked in MM03, tab "Accounting 1):

  • Price Control = S (Standard)
  • Price Determination = 3 (Single/Multi Level)

Meaning that all the variance captured in a material with S + 2 will not be settled by CKMLCP, and the variance will residue in 843 cost center, subsequently assessed to COPA via cycle.


Everytime we have a difference because of this, it's important to understand if the material is correctly classified or not. How? Checking the rules for each material here and, in case of doubts, contacting SU-MAC Team.



Situation 2 - Not Allocated:

Consumption for Movement 309 was not revaluated. The S-L / M-L variance in Cumulative Inventory which should belong to the moved stock now was put away as Not Allocated, due to targeting material with S + 2 .     


How to calculate the amount not allocated?

The idea of the revaluation is that this amount is split by all materials of this consumption. In this case, the ones below:


If we check the master data of all these materials, we'll see that the last one is S2, and not S3, so, the ML is not able to allocate the revaluation part for this material - it only revaluates for the others.



Situation 3 - Not Distributed (Zero GR from PP Order)

Variance was generated by the PP order settlement, but the produced qty is zero and no any stock at CKMLCP closing, so ML is not able to distribute that variance. (company 4290).



Situation 4 - Not Distributed (Negative Open Stock):

This is happening because the beginning inventory is smaller than receipts quantity for this month in this material. Consequently this difference can’t be fully distributed by the system.




How to calculate the amount not distributed?

Go to transaction CKMVFM and fill the company code + material + plant + period


Outcome of the transaction: