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Parallel valuation area in CFM

Former Member
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HI FSCM Gurus,

Can anyone tell me what all settings are required activate the Parallel Valuation area in CFM.

Thanx in advance...

Useful answers would be definitely rewarded.



Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Dear Megha,

In Corporate Finance Management, you depict parallel valuation methods using the valuation (depreciation) area. This means that you have to define a valuation area for each of your accounting principles.

The results of the valuations are posted separately by valuation area. For each valuation area, you can decide whether you want the postings to be made to the general ledger or to an additional ledger.

Features:Each valuation area provides you with various classifications that you can use to depict the various valuation rules in the individual accounting principles.

Financial assets: You can divide your financial assets into various valuation classes.

Structure of stocks: You can set the structure of your stocks using characteristics (terms used for differentiation purposes).

Financial products: For certain financial products, you can activate single position management (lot accounting) with various consumption sequence procedures.

You control valuation of your stock using position management procedures that you can assign to stocks depending on the valuation area, valuation class and other characteristics. In the position management procedure, the legally binding valuation approach is defined for valuating a stock (such as lowest value principle or key date valuation).

Hope I had been able to help you. Please assign points and let me know if you need anything specific.



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