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Actual Costing is a highly sophisticated and integrated controlling concept. For a successful implementation project it is of essential importance to understand the impact of this function. This page is to give you answers to the most frequently asked questions.
A. After the multi-level price determination, a line "not distributed" appears in the material
price analysis: price differences are not taken into account for the price determination and are
not distributed to consumption or ending inventory.
Here's the explanation why this is correct and how you can avoid it.
Costs that are not covered by the inventory remain as price differences.
If in a period values are posted for a quantity larger than the cumulative quantity, only a
portion of the values is distributed to material. The portion that is not distributed to material
is displayed in the Material Price Analysis in the line "Not Distributed" (Figure 1). This
ensures that the price determination considers only values that belong to the period's
cumulated quantity (stock coverage).
You realize external procurement with purchase orders.
In the current period, you buy and receive a total of 100pc of a raw material (that is,
you post the goods receipts and the invoices).
As the beginning inventory of the period is zero, the cumulative inventory is 100pc.
At the end of the period, you receive further invoices for the purchased goods:
Your forwarding agent invoices the shipments.
The Custom's invoices the import duties.
Tax Authorities invoices Luxury Tax.
subsequently debit the quantity the invoices refer to: 100pc each time.
As you enter the reference quantity (100pc) with each posting you realize, the price limiter
quantity increases to a total of 300pc: 100pc of the shipment, 100pc of the duties, and 100pc
of the tax.
During price determination, Material Ledger finds that the price limiter quantity exceeds the
cumulative quantity of that period (100pc). It prorates the values posted with Debit/Credit
Material: Two thirds of the value are not covered by stock and thus are categorized as "not
to be distributed". You can see this value in the line Not Distributed.
In period 1, you create a production order for 100pc of a finished material.
Of this quantity, you finish and take on stock 90pc in period 1, all of which are sold
The ending inventory of period 1 is zero, as is the beginning inventory of period 2.
The remaining quantity of the production order is finished and taken on stock in period
2. No other goods receipts are posted during this period; the cumulative inventory is
Only now you settle the order and post the variances of the production order (100pc) to
the material; posting date is in period 2. Theses variances show as single-level price
During the order settlement, Material Ledger has set the price limiter quantity to 100pc (the
quantity for which the order was settled).
During price determination of period 2, Material Ledger finds that the price limiter quantity
exceeds the cumulative quantity (10pc) and prorates its value: the value that belongs to the
90pc which were taken on stock and sold in the previous period is displayed in the Not
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