Revalution of Activity Price in Material Ledger

[Former Member]

Dear Experts,

My clients want to absord actual activity price so it can be allocated to the product respectively during Material Ledger closing.

In order to realise this, we have done cost allocation via assessment cycle, cost centre splitting (KSS2) and eventually calculate the actual price determination calculation (KSII). When KSBT is executed, we notice that the system have created the actual activity price for the month with price indicator (5).

The plan activity rate is entered manually as fixed price with price indicator (1) instead of calculating via KSPI.

After calculation the plan price is 900.00 and the actual activtiy price is 1500.00

When we perform the Material Ledger closing, I don't see system revalue the activtiy rate based on actual rate and absorb it to receiving materials. From what I've read and understood, if we don't execute MFN1 / CON2, Material Ledger will revaluate based on actual price and allocate to the receiving materials.

I've configured version 0 (plan/actual), price calculation tab as below:-

Plan

Method > Periodic Price

Actual

Method > Periodic Price

Revaluation > Own business transaction

I also don't see any value via transaction code CKMACD

Regards,

Siva

[marialuisa_munoz · Accepted solution]

Hi Siva,

How have you customized the update of the activity consumption in your quantity structure?.

There are three different settings: 

'0' = Update is not active

'1' = Update is active but not relevant to price determination. Consumption is updated in the quantity structure but not taken into account upon price determination.

'2' = Update is active and relevant to price determination. Variances between the activity prices/process prices posted during the period and the actual price at the end of the period are adjusted subsequently.

If you activate activity consumption update in the quantity structure with the (Activity update relevant to price determination = '2'), the differences for the cost centers/processes are subsequently debited to the relevant material. Therefore, if you activate the activity consumption update in the quantity structure  with setting '2', you cannot complete the step 'revaluate actual prices' during period closing for Cost Object Controlling as this would subsequently debit the material twice.

Please check if this helps.

Best regards,

Maria Luisa

[Former Member · Accepted solution]

Hi Maria Luisa,

Thank You!

Now I see why the activity prices wasn't debiting the material with the actual activity price as I did not configuration in the "Update of Activity Consumption in the Quantity Structure" as "1" or "2".

Regards

Siva

[SFSIP]

Hi Maria Luisa Munoz,

I have gone through your post, but in in my case qty structure update with 2, and when ML post closing the diff between plan price and actual price is posting to Production cost center with value (Plan price - Actual Price * consumption qty) to cost center. I have check rest of setting is correct.

1 more thing in my valuation variant for process order valuation activity price strategy is plan price for the period, same setting for standard cost estimate and even order plan costing.

Also in CKMLCP post closing step in parameters we marked revaluation material, revaluation consumption, and set CO account assignment.

Please correct me if I missing something.

Thanks

akesh agrawal

[marialuisa_munoz]

Hi Siva,

I am glad to hear that!.

Best regards,

Maria Luisa

[Former Member]

Hi,

you can execute revaluation through CON1, CON2 AND MFN1

Hope this helps you

Regards,

Puri.