Is there anyone who can advise on how we are going to configure our SAP inventory method? we are using MAP?

Question

we are using MAP with perpetual inventory however we have encountered a lot of cost issues making our gross margin unrealistic.

Answer 1

You could have a look to the SAP help portal to check your settings:

http://help.sap.com/saphelp_erp2005/helpdata/en/12/086399470311d1894a0000e8323352/frameset.htm

Once the results of the count have been entered in the system, the differences are determined by the system via a difference list. The system compares the book value at the time of the count with the results of the count and calculates the differences.

Note

If there is a long period of time between physical counting and entering of the results in a physical inventory document, you can "capture" (fix) the book balance in the physical inventory document immediately before the physical count has taken place. This enables you to prevent differences being distorted by a goods issue that is posted, for example, in the period between the counting and entering of results in the system.

If you trace the differences back to a counting error, you can initiate a recount for the items in question.

The actual differences are posted per document. In doing so, you can process a complete document. Alternatively, you can elect to adjust the differences only for certain items in a document. When differences are adjusted, the system always adjusts both values and quantities.

Note

When physical inventory is carried out and Warehouse Management is active, two steps are necessary to adjust the differences. First only the variant quantities are corrected in the storage bins of the storage type. Valuation is not affected. The differences then have to be posted in Inventory Management for the relevant site and storage location. How this is done is described below:

Features

Quantity Correction

The difference posting leads to a correction of the stock quantity. The current stock level as per the book value is replaced by the quantity actually counted. Similar to the document created at goods receipt, the system creates an article document. This contains movement types defined especially for physical inventory postings to enable the stock quantity to be corrected

Value Correction

In addition to correcting the quantity, the system also corrects the value of the stock. The difference quantity determined is valuated at the moving average price of the article. Depending on the type of difference, the amount is posted as an inward or outward movement to the relevant stock account in Financial Accounting. The offsetting entry is normally posted to the "expenses from inventory differences" or "revenue from inventory differences" account. An accounting document is therefore created in addition to the article document.

No value correction is necessary if the stock is non-valuated (for example, vendor consignment stock). No accounting document is created.

Tolerances

Value tolerances can be defined for a group of users who post inventory differences. You can, for example, define the following types of tolerances:

* Maximum amount per physical inventory document
* Maximum amount per document item

If a document exceeds the document tolerance limits defined for the user group, the user is unable to post the physical inventory differences. If the total value of the document is below the document tolerance limit, but some items in the document exceed the maximum amount defined per item, the user is unable to post the differences for the item. The user can still, however, process the remaining items.

Example

The following example illustrates how physical inventory documents and follow-on documents are connected: By posting the difference quantities, an article document (quantities correction) and an accountings document (value correction) are also generated for the physical inventory document.



Physical inventory document 10001234

Item


Article


Moving average price


Book quantity


Qty counted


Difference quantity


Difference value

1


500004711


$1.49 each


100


95


5-


7,45



Article document 4900009876

Item


Article


Quantity


Site


Storage location


Movement type


+/- sign

1


500004711


5


0001


0001


702


- (Outward movement)



Accounting document 4900007564

Item


Account


Debit


Credit

1


Stock of electrical goods


7,45

2


Expenditure from physical inventory differences

Answer 2

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