INVENTORY VALUATION FOR YEAR END CLOSING

This scope item provides end users with an example process description that they can use
as a template for their own valuation processes.
Inventory valuation is carried out in accordance with local legislation, including settings for
the overhead structure, valuation variant, and stock valuation with devaluation on the basis
of movement rate.

Process Flow
This scope item consists of the following steps:

Stock valuation, using lowest value principle for raw materials, packaging materials
and trading goods

Additional devaluations by movement rate

Inventory costing for finished and semifinished products, in accordance with the
lowest possible value principle

Stock value reporting in the form of a comparison analysis

Manual stock value adjustment posting in the financial accounting component

Key Points

Stock valuation for raw materials, packaging materials and trading goods based on
the lowest possible value

Inventory valuation for semi-finished and finished materials on base of local

requirements for valuation approaches

Stock value adjustment