The Stock Margin Elimination is more a process then a report, it's a step for the closing process each month all the companies have to eliminate the internal margin for the stock. This is using data from the P&L Integrated margins to have the calculations for this Stock Margin elimination (for WP1) mainly from the SAP CO (Controlling) module . |
For this Application the access is provided based on the BW menu "MS - Stock Margin Elimination (Model S)" and it's done via Service one. Fill the form In SAP system select the "WBP - BW Business Warehouse" In WBP - BW Business Warehouse : Select the Business Role select the "MS - Stock Margin Elimination (Model S)" |
Target Users: As examples: Controllers / Accountants |
VERSION | DATE | MODIFIED BY | DESCRIPTION |
0.01 | 24.10.2023 | Inês Vilares | Initial draft |
|
2.0 Business Process
The process before it was very complex and has a big imapct for the closing process. See below the old logic:
To have a most accurate process for this and more efficient, the idea was based on the following:
For calculation we will use:
→ The quantities that are effectively in stock at the plant level.
We call it LOGISTIC STOCK.
→ The quantities that are being shipped to the plant . These items are not present in the factory but are its property.
We call it STOCK IN TRANSIT.
The goal is to use the IM cost unit to valuate the stock and in the standard cost we have the internal margin between plant and manufacturing plant and since in the IM cost unit we don't have the difference will be our stock margin elimination.
This should be done at D+3 in the morning because it's need it for the closing process. That is why this a closing tool and not a reporting tool.
The idea is to take the quantities in stock and valuate at standard cost vs at IM cost but in term of quantity we need to have two types of quantity: the real stock in plant but also the stock in transit. In BW we had a old logistic stock model and the current stock model wasn't develop and we antecipate and we did this model to provide the financial tool and to be accurate with the logistic quantities. Double check with Ludovic.
3.0 Application Feature Overview
For this application find below all the workbooks available:
| Reports | Definition | Prompts | BW Workbook Query | Query Technical Name |
|---|---|---|---|---|
| Stock Margin elimination report | In this report it's possible to check the different values for the:
| Mandatory:
Optional:
| BW_WBK_MS_0001 | BW_QRY_CPCOMS01_0002 |
4.0 Functional Specification
4.1 General Data/Calculations
For these reports, it’s important to understand some concepts which will allow the user to work with the reports.
| Batch | It's an identification to have a track on the material and can give us a lot of information as where was produced, manufacturing plant, among others. |
|---|---|
4.2 Process Detail
4.2.1. Report/Process Definition
| Domain | Finance |
|---|---|
| Application | BW reports under MS - Model S |
| Provider |
BW Target Model : 2 sources / 2 ways of calculation
For PF1 the project decided to not do the calculation in BW but it's done in SAP with a program with their own claculation (run once per month).
For WP1 part the calculation is done in BW, we are using:
- the material movement to have the stock model;
- the costing runs for the calculation of the IM cost unit;
- the FI documents because the stock in transit doesn't exist in logistic, in SAP we only have this coming from FI documents and we are using the information from the working capital model.
with these elements we are able to determine the stock margins for WP1 in BW.
After we also have some cross cases stock in WP1 with production in PF1 or the other way and this is also done in BW side.
With this no automatic process from BW to BFC (business needs to perform some analysis/validation).
In summary: Provide a query that give for PF1 and WP1 : - Stock at end of month; For PF1 data the calculation is done in PF1 : those results are aggregate in BW. For WP1 data and Cross-system cases ; the calculations are done in BW. The query will be formatted to be loaded manually in BFC ; but no automatic a loading . Manual adjustments/corrections can be done. |
BW Target Model: the WP1 solution in brief
1- We are extracting the data for the quantities in stock (BW stock model) and in transit (working capital information).
2- We need to identify which is the manufacturing plant of the material because this can be different from the plant. For this we can use the batch info or the material master data.
3- We will valuate the stock at IM Cost unit and to take into to account the transport time it was requested to have this shift of month. Exist a table where the shift of month can be changed by the user.
4- To valuate the stock at standard cost it's done M+1 to take into account some Solvay pratices regarding the stock revaluation process.
5- The difference will be our stock elimination.
An integrated solution:
For this scope it's important to understand the logic for the integrated margins since the new BW Stock elimination Margin will share the same calculation elements as the P&L in integrated margin - the Integrated Margin (IM) cost unit.
The quantities for:
- Logistic Stock are coming from the BW stock Model;
- Stock In transit are coming From Working Capital Stock Queries.
For the integrated margins logic please check our functional documentation under the scope "Profit and Loss Integrated Costs".
BW Stock elimination Query - Calculation for WP1
Main Process:
Evaluate logistic Inventory at IM cost - Main cases
At D+2/D+3 we extract Total STock quantities from BW logistic model at Material /plant / Batch Level.
At D+2/D+3 night IM cost unit for WP1 materials are calculated at:
- Month
- Plant
- Material (WP1 code)
IM cost unit are splitted:
- CP
- CNP
- AMO
- Internal duties
- Internal freight
Determine Manufacturing Plant:
1. Manufacturing Plant of Batch if existing
2. If no Manufacturing Plant or no Batch
- Production Plant of material master data (coming from Sp);
- Plant of Stock.
Determine Reference Month:
- We add a Shift of months:
- The shift of month is GBU dependent
- Exception cases maintain for a list of Material /Plant
