Special Case: Nonvaluated Sales Order Stock

Use

You use a nonvaluated sales order stock if you do not want the goods movements to have
corresponding postings in Financial Accounting (FI).

A sales order stock is assigned exclusively to a specific sales order and cannot be used for
other orders. Sales order stocks can be for independent requirements as well as for the
dependent individual requirements of the individual requirements material (finished product). For
this reason, the material components can only be used to manufacture the material ordered by
the customer, and the material ordered by the customer can only be delivered to the customer
in the context of the order.

With a nonvaluated sales order stock, inventory changes are not reflected in Financial Accounting. The
sales order stock is settled to Financial Accounting only after results analysis and settlement of the
calculated values (results analysis data).

SAP recommends that you use a valuated sales order stock.

Prerequisites

You control whether the sales order stock is valuated or nonvaluated in Customizing for Product Cost
Controlling under Cost Object Controlling  Product Cost by Sales Order  Control of Sales-Order-
Related Production  Check Requirements Classes.

If the sales order stock is nonvaluated, the sales order item must always be flagged as carrying costs
and revenues. To valuate the inventories, at the end of the period you perform results analysis and
settle the calculated results analysis data to FI for capitalization.

Features

Just as for a valuated sales order stock with a sales order item that carries costs and revenues,
you can do the following for a nonvaluated sales order stock with a sales order item that carries
costs and revenues:
  Perform results analysis on the basis of one or more sales order items

 Use results analysis to capitalize goods that have been delivered but not yet invoiced

 Make adjustments to follow-up costs

 Assign special direct cost of sales to the sales order item

 Allocate process costs to the sales order item

 Allocate sales overhead costs using the sales order item as the cost object

Limited Use of Nonvaluated Sales Order Stock

When you are manufacturing in-house, the nonvaluated sales order stock with multilevel
production structures results in semifinished products manufactured for the finished product
being delivered to the sales order stock unvaluated. When you close the period, all costs
incurred in the manufacture of the semifinished product are settled directly to the sales order
item to which the production order is assigned. If the semifinished product is withdrawn as a
material component of a higher manufacturing level, the material withdrawal is not valuated.
This means that the material cost for the semifinished product is not shown on the production
order for the finished product. Only the production costs, production overhead, and so forth for
that manufacturing level are allocated to the production order and passed to the sales order
item when you settle.

For externally procured materials, the nonvaluated sales order stock results in the goods receipt
posting being made to the nonvaluated sales order stock. The goods receipt or invoice receipt
posts the costs of the externally procured materials directly to the sales order item.

You should use a valuated sales order stock in the following cases:

 When you want the goods movements for the sales order inventory to result in postings
in Financial Accounting (FI)

 When you want to have the full costs at each manufacturing level

 When you want to calculate the variances for the manufacturing orders assigned to the
sales order

 When you want to use individual valuation rather than collective valuation for the
materials in the sales order stock
  When you are using the cost-of-sales accounting method and want to post the cost of
sales to Financial Accounting before results analysis at the end of the period.

 When you want to use standard costing

Quantity and Value Flow with Nonvaluated Sales

Order Stock and In-House Production

External Procurement with a Nonvaluated Sales Order Stock

If you are using external procurement with a nonvaluated sales order stock, you can update the
costs to the sales order item either when the goods are received or when the invoice is
received:

 Costs updated when goods received

When a goods receipt for a nonvaluated, externally procured material is posted, the
goods receipt results in costs directly. The sales order item that carries costs and
revenues is debited with costs in the amount of the order value of the externally
procured material. Any difference between the order value and the invoice value is
updated to the sales order item when the invoice is received.

 Costs updated when invoice received

 The goods receipt is posted directly to the sales order item for which the material was
requested. This goods movement is not valuated at this point – that is, the sales order
item is not debited with actual costs until the invoice has been received. When the
invoice is received, the costs are assigned to the sales order item.

You control whether the sales order item is debited with actual costs when the goods are
received or when the invoice is received in Customizing for Product Cost by Sales
Order under Control Parameters for Sales-Order-Related Production  Check Account
Assignment Categories with the indicator GR non-valuated.

Repetitive Manufacturing with a Nonvaluated Sales Order Stock

In repetitive manufacturing environments with a nonvaluated sales order stock, the system
generates a planned order for the sales order item. This planned order is assigned to the sales
order item and contains a reservation for the customer requirement. When a goods receipt for
the sales order item is entered, it is debited with the actual costs of the material components
listed in the planned order. You enter this goods movement in the Repetitive
Manufacturing menu.

See also:

Nonvaluated Sales Order Stock: Valuation

Nonvaluated Sales Order Stock: Scenario

Example: Nonvaluated Sales Order Stock

Nonvaluated Sales Order Stock: Constraints

General Information on Nonvaluated Sales Order Stocks