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Define Account Determination for Internal Goods

Movements
Internal goods movements in Logistics (stock transfers, materials usage for production orders, and so on)
can lead to an exchange of goods between profit centers.
To be able to show the material flow correctly in rofit !enter "ccounting, you need to look at the profit
center as an independent company. This means that a sale is made by the sending profit center, while the
receiving profit center posts a goods receipt.
This way of looking at postings in rofit !enter "ccounting cannot be achieved based solely on the
original posting. #ou therefore need to make an additional account assignment.
" separate account determination generates additional posting lines on the basis of the original
document, and then posts these in rofit !enter "ccounting.
The source document is not changed. Therefore this has no effect on $inancial "ccounting ($I).
%owever, note that these lines are also updated in $I if your organi&ation is using transfer prices and
storing the profit center valuation method in $I (see the example below).
$or some goods movements, it does not make sense to make an additional posting. These goods
movements are given a special handling. The table that contains these exceptions is fully maintained
and delivered by '" in the standard ()* 'ystem. #ou only need to define special handling if you re+uire
this for movement types that you defined yourself.
In this step, you enter the accounts that you need in order to represent internal goods movements in rofit
!enter "ccounting for each controlling area. These accounts must be defined already in $inancial
"ccounting ($I).
"s seen in the following example, three types of additional account are re+uired,
internal revenues
internal change in stock
deliveries from profit centers
Stock transfer of material M1 from plant 01 to plant 02 using the legal
valuation method in rofit !enter Accounting and in "I
FI posting:
'tock to stock -,......
EC-PCA posting:
r!tr material /- plant .- 001 internal revenues (-,......)
internal change in stock -,......
r!tr material /- plant .2 001 delivery from profit center -,......
internal change in stock (-,......)
In this case, no original postings are transferred. Instead, all the postings are represented in rofit !enter
"ccounting by additional postings.
Material #ithdra#al of a semifinished product 1 from plant 1 and plant 2
using transfer prices
The stock value using legal valuation is, -,......
The stock value using profit center valuation is, -,2.....
The transfer price is, -,3.....
FI posting:
In $I only legal valuation is recorded.
!hange in stock (plant 2) to stock (plant -) -,......
EC-PCA posting:
4!0!" stores the profit center valuation.
r!tr mat.- plant -001 internal revenues (-,3.....)
internal change in stock -,2.....
r!tr mat.- plant 2001 delivery from profit center -,3.....
internal change in stock (-,3.....)
Material #ithdra#al of semifinished product material 1 $profit center 1%
for production order 2 $profit center 2% using legal valuation in rofit
!enter Accounting and "I
$or material withdrawals, the costs on the receiver profit center are shown, plus an internal sale is
assigned to the sender profit center. 5n the receiving side, it may be necessary (consumption of
semifinished goods) to correct the posting under 6!hange in stock6 with a posting 67elivery from profit
center6.
FI posting:
!hange in stock of semifinished product to stock -,......
rofit center - 001 Internal revenues (-,......)
001 Internal change in stock -,......
rofit center 2 001 !hange in stock of semifin.prod. -,......
001 Internal change in stock (-,......)
001 7elivery from profit center -,......
The two lines 6!hange in stock6 on the receiver side cancel each other out. The transaction is an external
delivery from the point of view of the receiver profit center, which is reflected in the line 67elivery from
profit center6.
Material #ithdra#al of a semifinished product 1 $profit center 1% for
production order 2 $profit center 2% using transfer prices
The stock value using legal valuation is, -,......
The stock value using profit center valuation is, -,2.....
The transfer price for the semifinished material is, -,3.....
FI posting:
In $I, only legal valuation is stored.
!hange in stock of semifinished product to stock, -,......
EC-PCA posting:
In rofit !enter "ccounting, profit center valuation is stored.
rofit center - 001 Internal revenues (-,3.....)
001 Internal change in stock -,2.....
rofit center 2 001 !hange in stock -,3.....
001 Internal change in stock -,3.....
001 7elivery from profit center -,3.....
&e'uirements
#ou must already have created $I profit and loss accounts with the indicator 65nly automatic posting6.
Internal revenues
!hange in stock
7elivery from profit center
Activities
!hoose the material types for which you want to represent goods movements between profit centers.
8ote that only the material types you choose here will be taken into account in the representation of
material flows between profit centers.
#ou may want to leave out material types for raw materials or operating supplies which have little value. If
you do not choose these material types, only the consumption postings will be debited to the profit center
on the receiver side.
#ou can set up the account determination by
material type
valuation class
valuation modifcation constant
9lank entries (e.g. without a valuation class) are interpreted as generic entries. %owever, the material
type must have at least one entry.
In the field No receiver records you enter whether the system should ignore the data records on the
receiver side.
This might make sense if you also want to represent goods movements of raw materials between profit
centers. In this case, the system posts a 6material usage6 on the receiver side. It is not necessary to
correct the 6change in stock6 as shown in the third and fourth examples.
(otes on transporting
#ou can transport the !ustomi&ing settings for rofit !enter "ccounting under Transport tools.
8ote 32::2* 0 7ifferent handling of local and
parallel currency in /L
S)mptom
;ith some business transactions, the posting logic differs in local and parallel currencies if the material ledger is
productive.
The different posting logic may also take effect if the first local currency and parallel currencies match.
*ther terms
!8"!T, /9<"L
&eason and rere'uisites
The material ledger is productive.
The currencies managed in the material ledger are updated independently of each other. The system performs
amount translations between the currencies if external values are assigned that exist only in the transaction currency
or the first local currency. This type of external value occurs, for example, for goods receipts for purchase orders
(purchase order price), for goods movements with external value (field 4=;(T is filled manually in the material
document), for invoices and so on.
>enerally, the posting logic is the same in all currencies managed in the material ledger. In some special cases
however, the parallel currencies are processed differently than the first local currency. These cases are described
here.
Goods receipt for purchase orders #ith multiple valuations
To valuate goods receipts, the system normally uses the exchange rate valid on the posting date to translate the
purchase order price to the parallel currencies, if the goods receipt is before the invoice receipt.
4xception, $or an active multiple valuation, the purchase order price is not translated in other valuation views (group
valuation or profit center valuation) if the vendor is an affiliated company? that is, if the field L$"-0<9@87 is not initial
in the vendor master. In the multiple valuation views, the goods receipt is than evaluated with the current material
price.
8ote A3B3A* describes how the goods receipt can be valuated in multiple valuation views with the translated net
purchase order price, even for affiliated companies (user exit 4=ITC'"L!*2C..*).
*rder settlement in profit center valuation
In profit center valuation+ the order settlement $K*,,+ !*,,% does not settle an) differences to the material if
the order and the material -elong to different profit centers. Instead+ the s)stem posts the differences to the
production variance account that )ou maintained in !ustomi/ing using transaction 0KE1.
(ote 23,320 descri-es ho# )ou can settle production variances in profit center valuation to a material in this
t)pe of scenario $e4it E5I67SA1!&87000%.
&eversal postings9 Goods receipt for su-contract orders
;ith the goods receipt for the subcontract order, the parts provided are backflushed. The value of the incoming
material results from the total of the values of all parts provided (valuated with the current prices in the relevant
currency) plus the purchase order price translated to the relevant currency on the posting date.
$or a reversal of a goods receipt for the subcontract order (reversal with transaction type -.2, but no document
reversal) the parts provided for historical exchange rates (average value from the withdrawals for all previous goods
receipts) are posted back to the warehouse in the first local currency? however, in the parallel currencies, the receipt
of the parts provided are valuated using the current material price.
$or a document reversal, the parts provided are posted back with the original withdrawal value (withdrawal value of
the posting to be reversed) to the warehouse.
8ote -.A*:.2 solves this problem.
"i4ed e4change rate in the purchase order or e4ternal e4change rate in the invoice
"n exchange rate that is fixed in the purchase order or an exchange rate that is entered in the invoice is used only for
the translation from the transaction currency to the first local currency. $or the translation to further local currencies,
these exchange rates are used only if the !ustomi&ing setting in $inancial "ccounting is set so that the values of the
parallel currencies are translated from the first local currency and not directly from the transaction currency.
!alculation of e4change rate differences in the invoice verification
4xchange rate differences are always calculated in the invoice verification between the relevant local currency and
the transaction currency, even if the !ustomi&ing setting in $inancial "ccounting is set so that the values in the
parallel currency are to be translated from the values of the first local currency.
4xternally entered exchange rates always affect only the first local currency.
Different translation rules for first local currenc) and parallel local currencies
In !ustomi&ing for $I, you define the rules according to which you want values to be translated into the different local
currencies (from transaction currency or first local currency? on the posting date, the document date or the value date?
exchange rate type use).
!heck whether your settings can lead to different values (for example, a different exchange rate type or a different
date).
Deep in mind that material ledger currencies that are not managed in $I have hard coded translation rules that you
cannot set in !ustomi&ing. 'ee also 8otes *EAAF: and *EBF2:.
Solution