Stock Balance Upload During Data Migration

[sanjay_ram]

Hi,

For initial stock balance upload, in an Material ledger activated system, is it good to load the stocks as per the legacy standard prices or load them as per the new standard cost estimate prices from SAP?

If we load as per the standard prices from legacy we can easily reconcile the balances with GL trial balances.

However if we load as per the new cost estimate prices from SAP, the stock balances will not match with the GL trial balances.

Please do advise on which method will be more appropriate.

[kalpesh-2022]

Hello Sanjay,

In my opinion you should perform inventory upload with legacy values only if you have actual costing activated in Material Ledger. I have written down below the approach assuming that you are going live on 1st Feb 2023:

- Open MM Period for Jan-2022.

- Perform the costing run in SAP as per latest masterdata migrated from legacy system

- Release the Standard Cost estimate for period Jan-2023 (of course there will not be any Financial impact as no inventory uploaded in system yet).

- Make sure MM Period for Feb-2023 is NOT opened to avoid postings in the Go-live period (i.e. Feb-2023)

- Upload Inventory in SAP with closing Qty and Closing Values of Legacy system with 31 Jan 2023 migration date (ensure to provide legacy system inventory valuation in "Ext. Amount LC" while doing 561 Mvmt on MIGO). System will trigger the Price difference posting along with this (In other words, Inventory Balance Sheet GL gets hit as per released Std cost, hence system determines the price difference).

- After inventory upload is complete, verify that Qty uploaded in SAP system matched with legacy system closing Qty. At the same time, closing inventory value of legacy will match with total of Price differences and inventory GL balances in SAP

- After above step, open MM Period for Feb-2023.

- Perform Material Ledger Closing for Jan-23 period and ensure no error. ML Closing brings back the inventory values at Legacy system values by actualizing the price differences.

- Now check the GL Balances on inventory GL accounts in SAP, it will match exactly with legacy system inventory closing balances. GL Balance total of whole set of Price difference accounts will be zero

Above becomes critical activity of your cutover plan, hence carefully coordinate with SAP MM colleagues and business inventory from Finance team.

This approach helps to achieve the objective of inventory upload at actual or when actual costing activated where you have to perform the ML closing in anyway.

Do reward if useful.

Best regards

Kalpesh Vasvani