All companies in WP1 (excluding Korea & Brazil) are not using Material ledger

All companies in PF1 & Brazilian & Korean companies in WP1 are using material ledger

Definition

The valuation class has the following functions:

Allows the stock values of materials of the same material type to be posted to different G/L accounts.
Allows the stock values of materials of different material types to be posted to the same G/L account.
Determines together with other factors the G/L accounts updated for a valuation-relevant transaction (such as a goods movement).

The valuation class cannot be easily changed if the material code has inventory and open orders associated with it. If the valuation class needs be changed after inventory movements then an UR needs to be raised.

In WP1, the valuation class depends on the type of material

Decision tree

It is a general principle but local rules can replace it

Definition

Indicates the price control used to valuate the stock of a material. You have the following options:

Standard price => Code S
Moving average price => Code V

		S	V
Asia	KR	Valuation class Z130, Z140 & Z150	Raw Materials (Z100 & Z110)
	CN	All except the split valuation in plants 0223 & 0224	Plants 0223 & 0224: RM with a split valuation
	IN, SG, NZ, JP	All	Never
Europe		All	Never
North America		All	Never
Latin America		Valuation class Z130, Z140 & Z150	Raw Materials (Z100 & Z110)

Definition

The system calculates the moving average price automatically by dividing the material value in the stock account by the total of all storage location stocks in the plant concerned. It changes the price with each valuation-relevant movement.

The field “Moving Price” or the field "Per. unit price" can only updated manually in 2 cases:

for the creation of the view Accounting 1 of a Raw Material, Packaging or Trading goods (Z100, Z110, Z130). The price is provided by PtP.
when there is a mistake in the calculation of the Moving price (it can come from an incorrect price in a purchase order). In this case the modification must be justified and will be controlled by the IAC 01.02

The field is never updated manually when the material code is produced & in material ledger plants

Definition

Number of units to which the price refers.

Usually it is 1 000 except when there is a request to have another lot size.

Definition

The valuation class has the following functions:

Allows the stock values of materials of the same material type to be posted to different G/L accounts.
Allows the stock values of materials of different material types to be posted to the same G/L account.
Determines together with other factors the G/L accounts updated for a valuation-relevant transaction (such as a goods movement).

The valuation class cannot be easily changed if the material code has inventory and open orders associated with it. If the valuation class needs be changed after inventory movements then an UR needs to be raised.

In WP1, the valuation class depends on the type of material

Decision tree

It is a general principle but local rules can replace it

Definition

Indicates whether material ledger valuation is active for the material.

The indicator is turned on if the material ledger is active

Definition

Specifies how the material price determination should proceed.

If the valuation class is Z100 or Z110	Price determination is 2 Transaction-Based always
If the valuation class is Z130, Z140 or Z150	Price determination is 3 Single-/Multilevel

Definition

The system calculates the moving average price automatically by dividing the material value in the stock account by the total of all storage location stocks in the plant concerned. It changes the price with each valuation-relevant movement.

The field “Moving Price” or the field "Per. unit price" can only updated manually in 2 cases:

for the creation of the view Accounting 1 of a Raw Material, Packaging or Trading goods (Z100, Z110, Z130). The price is provided by PtP.
when there is a mistake in the calculation of the Moving price (it can come from an incorrect price in a purchase order). In this case the modification must be justified and will be controlled by the IAC 01.02

The field is never updated manually when the material code is produced & in material ledger plants

Definition

Number of units to which the price refers.

Usually it is 1 000 except when there is a request to have another lot size.

Definition

Indicates the price control used to valuate the stock of a material. You have the following options:

Standard price => Code S
Moving average price => Code V

		S	V
Asia	KR	Valuation class Z130, Z140 & Z150	Raw Materials (Z100 & Z110)
	CN	All except the split valuation in plants 0223 & 0224	Plants 0223 & 0224: RM with a split valuation
	IN, SG, NZ, JP	All	Never
Europe		All	Never
North America		All	Never
Latin America		Valuation class Z130, Z140 & Z150	Raw Materials (Z100 & Z110)

Definition

Determines whether stocks of the material are valuated together or separately.

In WP1, leave it blank

Definition

The commercial price is used to replace the moving average price in the calculation of the semi-standard in certain circumstances.

The use of the commercial price is controlled in the frame of IAC 01.02

Definition

This indicator determines whether the material is costed using costing with or without a quantity structure.

This indicator determines whether the material is costed using costing with or without a quantity structure. Turn on the indicator

Definition

If this indicator is set, the material number will be written to the cost element itemization in the Controlling module.

This indicator is always turned on.

Definition

Variances are calculated for the orders for which a variance key has been entered.

The variance key to be entered is always Z_Z001

The profit center of the material master data is used to:

Identity to which GBU the material belongs = The profit center used must be part of the profit centers hierarchy of the GBU

Calculate industrial indicators by value stream = The profit center used must be included in the corresponding value stream

All profit centers must be attached to a node in the standard hierarchy

In WP2, there is one standard hierarchy per Controlling Area. Its structure must follow the standard rule

The profit center hierarchy can be displayed in SAP with:

Value stream

The value stream (VS) is the lower level of the profit center hierarch in WP1 system, where the profit centers are assigned through the "Profit Ctr Group".

Historically, the value stream nodes in the profit center hierarchy were used for some Industrial reporting on specific production lines but currently this reporting level is no longer used, unless there's a justified request for it. Nevertheless, we need to maintain the value stream node at a standard level.

Most of the value stream codes are already defined for a certain GBU and geographical zone and just need to be extended to a particular company code. It has to be always checked before creating a new code.

VALUE STREAM CODIFICATION in the profit center hierarchy:

X	X	X	X	-	V	Z	Y	M	N

XXXX - Stands for the company code

V - Standard for all the VS codes

ZY - Is used to define a specific GBU code as follows (the currently active GBU's are the ones highlighted):

•ZA for a VS under GBU ACETOW

•ZB for a VS under GBU PEROXIDES

•ZC for a VS under GBU COATIS

•ZD for a VS under GBU SODA ASH

•ZE for a VS under GBU ECO SERVICES

•ZF for a VS under GBU FIBRAS

•ZG for a VS under GBU ENG PLASTICS

•ZH for a VS under GBU SPECIAL CHEM

•ZI for a VS under GBU EMERGING BIOCHEMICALS

•ZJ for a VS under GBU TECHNOLOGY SOLUTIONS

•ZK for a VS under GBU COMPOSITES MATERIALS

•ZL for a VS under GBU SOLD ACTIVITIES (2003-2010)

•ZM for a VS under GBU SPECIALTY POLYMERS

•ZN for a VS under GBU NOVECARE

•ZO for a VS under GBU AROMA PERFORMANCE

•ZP for a VS under GBU POLYAMIDE & INTERMEDIATES

•ZQ for a VS under GBU Oil & Gas

•ZR for a VS under GBU CBS (former NON REPARTI RHODIA)

•ZS for a VS under GBU SILICA

•ZT for a VS under GBU RARE EARTH SYSTEMS

•ZY for a VS under GBU ENERGY

M - stands for the geographical zones, as follows:

EU: 0, 1, 2

NA: 3, 4

LA: 5, 6

AP: 7, 8

WW: 9

N - it's a serial number

Note: The value stream codes have to be included in table ZWFAT187 to be able to define the related descriptions in several standard languages.

For this, the codification has to be converted to an 8 digit code as follows (some of the digits are already defined when establishing the VS node in the profit center hierarchy):

C

G

U

Z

Y

0

M

N

CGU - Standard for all the standard VS codes

ZY - Is used to define a specific GBU code, as per list above

0 - Always zero

M - stands for the geographical zones, as per list above

N - it's a serial number

Link to the old WP2 Codification Value Streams Master (OBSOLETE).

Allocate variances = the last 4 digit of the profit center are equal to the last 4 digit of the IECRA where variances are posted in the P&L (process orders variances, PPV & Revaluation) (usually it is the last 4 digits of the non allocated IECRA of the GBU.

Definition

Lot size of the costed object (such as a material or sales order) used in the product cost estimate in the MRP view.

Usually it is 1 000 except when there is a request to have another lot size.

Definition

Indicates whether, for a specific plant, the material may be used

In WP1, there are 3 main status that can be used:

01 Blocked for procment/whse => Mainly used in Brazil. Once accounting & costing views are created, before GBUs validation and the cost estimate is released.
Z0 Blocked for all => Used when the material code is not used anymore (it is obsolete)
Z1 Material creation in prog => Used when the creation is in progress (until the cost estimate is released)

The field remains empty once the cost estimate is released. The material code can be used.

The field must always be filled until the cost estimate is released (except in trading plants) :

With the status Z1
or with the status 01 (used in Brazil)

The profit center of the material master data is used to:

Identity to which GBU the material belongs = The profit center used must be part of the profit centers hierarchy of the GBU

Calculate industrial indicators by value stream = The profit center used must be included in the corresponding value stream

All profit centers must be attached to a node in the standard hierarchy

In WP2, there is one standard hierarchy per Controlling Area. Its structure must follow the standard rule

The profit center hierarchy can be displayed in SAP with:

Value stream

The value stream (VS) is the lower level of the profit center hierarch in WP1 system, where the profit centers are assigned through the "Profit Ctr Group".

Historically, the value stream nodes in the profit center hierarchy were used for some Industrial reporting on specific production lines but currently this reporting level is no longer used, unless there's a justified request for it. Nevertheless, we need to maintain the value stream node at a standard level.

Most of the value stream codes are already defined for a certain GBU and geographical zone and just need to be extended to a particular company code. It has to be always checked before creating a new code.

VALUE STREAM CODIFICATION in the profit center hierarchy:

X	X	X	X	-	V	Z	Y	M	N

XXXX - Stands for the company code

V - Standard for all the VS codes

ZY - Is used to define a specific GBU code as follows (the currently active GBU's are the ones highlighted):

•ZA for a VS under GBU ACETOW

•ZB for a VS under GBU PEROXIDES

•ZC for a VS under GBU COATIS

•ZD for a VS under GBU SODA ASH

•ZE for a VS under GBU ECO SERVICES

•ZF for a VS under GBU FIBRAS

•ZG for a VS under GBU ENG PLASTICS

•ZH for a VS under GBU SPECIAL CHEM

•ZI for a VS under GBU EMERGING BIOCHEMICALS

•ZJ for a VS under GBU TECHNOLOGY SOLUTIONS

•ZK for a VS under GBU COMPOSITES MATERIALS

•ZL for a VS under GBU SOLD ACTIVITIES (2003-2010)

•ZM for a VS under GBU SPECIALTY POLYMERS

•ZN for a VS under GBU NOVECARE

•ZO for a VS under GBU AROMA PERFORMANCE

•ZP for a VS under GBU POLYAMIDE & INTERMEDIATES

•ZQ for a VS under GBU Oil & Gas

•ZR for a VS under GBU CBS (former NON REPARTI RHODIA)

•ZS for a VS under GBU SILICA

•ZT for a VS under GBU RARE EARTH SYSTEMS

•ZY for a VS under GBU ENERGY

M - stands for the geographical zones, as follows:

EU: 0, 1, 2

NA: 3, 4

LA: 5, 6

AP: 7, 8

WW: 9

N - it's a serial number

Note: The value stream codes have to be included in table ZWFAT187 to be able to define the related descriptions in several standard languages.

For this, the codification has to be converted to an 8 digit code as follows (some of the digits are already defined when establishing the VS node in the profit center hierarchy):

C

G

U

Z

Y

0

M

N

CGU - Standard for all the standard VS codes

ZY - Is used to define a specific GBU code, as per list above

0 - Always zero

M - stands for the geographical zones, as per list above

N - it's a serial number

Link to the old WP2 Codification Value Streams Master (OBSOLETE).

Allocate variances = the last 4 digit of the profit center are equal to the last 4 digit of the IECRA where variances are posted in the P&L (process orders variances, PPV & Revaluation) (usually it is the last 4 digits of the non allocated IECRA of the GBU.

The profit center of the material master data is used to:

Identity to which GBU the material belongs = The profit center used must be part of the profit centers hierarchy of the GBU

Calculate industrial indicators by value stream = The profit center used must be included in the corresponding value stream

All profit centers must be attached to a node in the standard hierarchy

In WP2, there is one standard hierarchy per Controlling Area. Its structure must follow the standard rule

The profit center hierarchy can be displayed in SAP with:

Value stream

The value stream (VS) is the lower level of the profit center hierarch in WP1 system, where the profit centers are assigned through the "Profit Ctr Group".

Historically, the value stream nodes in the profit center hierarchy were used for some Industrial reporting on specific production lines but currently this reporting level is no longer used, unless there's a justified request for it. Nevertheless, we need to maintain the value stream node at a standard level.

Most of the value stream codes are already defined for a certain GBU and geographical zone and just need to be extended to a particular company code. It has to be always checked before creating a new code.

VALUE STREAM CODIFICATION in the profit center hierarchy:

X	X	X	X	-	V	Z	Y	M	N

XXXX - Stands for the company code

V - Standard for all the VS codes

ZY - Is used to define a specific GBU code as follows (the currently active GBU's are the ones highlighted):

•ZA for a VS under GBU ACETOW

•ZB for a VS under GBU PEROXIDES

•ZC for a VS under GBU COATIS

•ZD for a VS under GBU SODA ASH

•ZE for a VS under GBU ECO SERVICES

•ZF for a VS under GBU FIBRAS

•ZG for a VS under GBU ENG PLASTICS

•ZH for a VS under GBU SPECIAL CHEM

•ZI for a VS under GBU EMERGING BIOCHEMICALS

•ZJ for a VS under GBU TECHNOLOGY SOLUTIONS

•ZK for a VS under GBU COMPOSITES MATERIALS

•ZL for a VS under GBU SOLD ACTIVITIES (2003-2010)

•ZM for a VS under GBU SPECIALTY POLYMERS

•ZN for a VS under GBU NOVECARE

•ZO for a VS under GBU AROMA PERFORMANCE

•ZP for a VS under GBU POLYAMIDE & INTERMEDIATES

•ZQ for a VS under GBU Oil & Gas

•ZR for a VS under GBU CBS (former NON REPARTI RHODIA)

•ZS for a VS under GBU SILICA

•ZT for a VS under GBU RARE EARTH SYSTEMS

•ZY for a VS under GBU ENERGY

M - stands for the geographical zones, as follows:

EU: 0, 1, 2

NA: 3, 4

LA: 5, 6

AP: 7, 8

WW: 9

N - it's a serial number

Note: The value stream codes have to be included in table ZWFAT187 to be able to define the related descriptions in several standard languages.

For this, the codification has to be converted to an 8 digit code as follows (some of the digits are already defined when establishing the VS node in the profit center hierarchy):

C

G

U

Z

Y

0

M

N

CGU - Standard for all the standard VS codes

ZY - Is used to define a specific GBU code, as per list above

0 - Always zero

M - stands for the geographical zones, as per list above

N - it's a serial number

Link to the old WP2 Codification Value Streams Master (OBSOLETE).

Allocate variances = the last 4 digit of the profit center are equal to the last 4 digit of the IECRA where variances are posted in the P&L (process orders variances, PPV & Revaluation) (usually it is the last 4 digits of the non allocated IECRA of the GBU.

The profit center of the material master data is used to:

Identity to which GBU the material belongs = The profit center used must be part of the profit centers hierarchy of the GBU

Calculate industrial indicators by value stream = The profit center used must be included in the corresponding value stream

All profit centers must be attached to a node in the standard hierarchy

In WP2, there is one standard hierarchy per Controlling Area. Its structure must follow the standard rule

The profit center hierarchy can be displayed in SAP with:

Value stream

The value stream (VS) is the lower level of the profit center hierarch in WP1 system, where the profit centers are assigned through the "Profit Ctr Group".

Historically, the value stream nodes in the profit center hierarchy were used for some Industrial reporting on specific production lines but currently this reporting level is no longer used, unless there's a justified request for it. Nevertheless, we need to maintain the value stream node at a standard level.

Most of the value stream codes are already defined for a certain GBU and geographical zone and just need to be extended to a particular company code. It has to be always checked before creating a new code.

VALUE STREAM CODIFICATION in the profit center hierarchy:

X	X	X	X	-	V	Z	Y	M	N

XXXX - Stands for the company code

V - Standard for all the VS codes

ZY - Is used to define a specific GBU code as follows (the currently active GBU's are the ones highlighted):

•ZA for a VS under GBU ACETOW

•ZB for a VS under GBU PEROXIDES

•ZC for a VS under GBU COATIS

•ZD for a VS under GBU SODA ASH

•ZE for a VS under GBU ECO SERVICES

•ZF for a VS under GBU FIBRAS

•ZG for a VS under GBU ENG PLASTICS

•ZH for a VS under GBU SPECIAL CHEM

•ZI for a VS under GBU EMERGING BIOCHEMICALS

•ZJ for a VS under GBU TECHNOLOGY SOLUTIONS

•ZK for a VS under GBU COMPOSITES MATERIALS

•ZL for a VS under GBU SOLD ACTIVITIES (2003-2010)

•ZM for a VS under GBU SPECIALTY POLYMERS

•ZN for a VS under GBU NOVECARE

•ZO for a VS under GBU AROMA PERFORMANCE

•ZP for a VS under GBU POLYAMIDE & INTERMEDIATES

•ZQ for a VS under GBU Oil & Gas

•ZR for a VS under GBU CBS (former NON REPARTI RHODIA)

•ZS for a VS under GBU SILICA

•ZT for a VS under GBU RARE EARTH SYSTEMS

•ZY for a VS under GBU ENERGY

M - stands for the geographical zones, as follows:

EU: 0, 1, 2

NA: 3, 4

LA: 5, 6

AP: 7, 8

WW: 9

N - it's a serial number

Note: The value stream codes have to be included in table ZWFAT187 to be able to define the related descriptions in several standard languages.

For this, the codification has to be converted to an 8 digit code as follows (some of the digits are already defined when establishing the VS node in the profit center hierarchy):

C

G

U

Z

Y

0

M

N

CGU - Standard for all the standard VS codes

ZY - Is used to define a specific GBU code, as per list above

0 - Always zero

M - stands for the geographical zones, as per list above

N - it's a serial number

Link to the old WP2 Codification Value Streams Master (OBSOLETE).

Allocate variances = the last 4 digit of the profit center are equal to the last 4 digit of the IECRA where variances are posted in the P&L (process orders variances, PPV & Revaluation) (usually it is the last 4 digits of the non allocated IECRA of the GBU.

Once the cost estimate is released, it appears in the field "current"

Code	Description	Material type	Definition
Z100	CS Raw materials	ZMAT	Material not sold but used for the production of a finished product
Z110	CS Packaging	ZVER	Packaging.
Z130	CS Trading goods	ZMAT	Material purchased but not used in the production
Z140	CS Intermediates	ZMAT	Material produced but usually not be sold
Z150	CS Finished product	ZMAT	Material produced and can be sold

Code	Description	Material type	Definition
Z100	CS Raw materials	ZMAT	Material not sold but used for the production of a finished product
Z110	CS Packaging	ZVER	Packaging.
Z130	CS Trading goods	ZMAT	Material purchased but not used in the production
Z140	CS Intermediates	ZMAT	Material produced but usually not be sold
Z150	CS Finished product	ZMAT	Material produced and can be sold

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