[Foreword]

The reason why Decision is highly praised by enterprises during the implementation of digital transformation projects is because experts are escorting Decision during the project process to help enterprises gain new knowledge, grow new capabilities, and improve management during the implementation of digital transformation projects. To improve our vision and reduce project misunderstandings, we have specially set up a "Decision Expert Column" to share with you a series of articles on the implementation of digital transformation projects, so stay tuned.

This article is based on Mr. Yang Yongqing, Decision’s chief financial expert, who has 24 years of rich experience in the field of SAP ERP, and combines the common misunderstandings he found in the implementation of ERP projects to publish corresponding research insights and suggestions to protect your SAP financial implementation and delivery.
 

[Problem Description]

When the monthly settlement was launched, the user asked, could you give an example to explain the SAP material ledger posting logic? What PRD/PRV/PRY/AUM/UMB/KDM means, I don’t understand what it means.
 

[For example]

After running the material ledger in the previous period, the material is revalued and the material cost difference is added to the material inventory amount
Assumption: The standard cost of period inventory in the previous period was 100 yuan, and the cost difference was 5 yuan.
Features: Voucher type = ML Reference transaction =MLHD Posting date: The last day of the previous month
Borrow: raw materials/semi-finished products/inventory goods BSX 5 yuan
Credit: Inventory cost difference PRY 5 yuan
After posting, theoretically: inventory cost difference (raw material difference, semi-finished product difference, inventory commodity difference) account balance is 0.

①The actual cost of opening inventory is reduced to: standard cost + cost difference
Assumption: The standard cost of inventory in the new period is 100 yuan (the same as the previous period), and the cost difference is 5 yuan.
Features: Voucher Type = ML Reference Transaction =MLHD Posting Date: First of the Month
Borrow: Inventory cost difference PRY 5 yuan
This difference is included in the material ledger difference rollover
Loan: Raw materials/semi-finished products/inventory goods BSX 5 yuan
After posting, restore the cost difference to: inventory cost difference (raw material difference, semi-finished product difference, inventory product difference) account
Note: The S4 system no longer distinguishes: PRV/PRY single-layer and multi-layer differences, all are recorded in PRY
 

② Release standard costs for the new period
Assumption: The new standard cost in the new period is 90 yuan, then the cost difference needs to be increased by 10 yuan, and the inventory cost needs to be reduced by 10 yuan.
Features: Document type = PR Reference transaction = PRCHG Posting date: Standard cost effective start date
Borrow: Inventory cost difference UMB-empty 10 yuan
This difference is included in the material ledger difference rollover
Loan: Raw materials/semi-finished products/inventory goods BSX 10 yuan
After posting, the balance of raw materials/semi-finished products/inventory goods = material quantity * standard cost of the new period
 

③ Cost differences caused by warehousing in the new period
Assumption: purchase order warehousing, purchase order settlement, production order settlement, cost difference is 8 yuan
Borrow: Inventory cost difference PRD 10 yuan
This difference is included in the material ledger difference rollover
Loan: Other party’s subject XXX 10 yuan
 

④ After the standard cost of the new period is released, two FI vouchers will be generated for material receipt and receipt in the old period, one is the accounting voucher for receipt and receipt in the old month, and the other is the standard cost and cost difference adjustment voucher for the new period.
Assume: the new standard cost in the new period is 90 yuan, and the standard cost in the old period is 100 yuan, then the cost difference needs to be increased by 10 yuan, and the inventory cost needs to be reduced by 10 yuan.
Features: Voucher Type = PR Reference Transaction = PRCHG Posting Date: First of the Month
Borrow: Inventory cost difference UMB-empty 10 yuan
This difference is included in the material ledger difference rollover
Loan: Raw materials/semi-finished products/inventory goods BSX 10 yuan
 

⑤Exchange rate difference in the new period
Assumption: When the purchase invoice is settled, there is no difference in the foreign currency amount, but the exchange rate is different between the purchase month and the purchase settlement month, resulting in an exchange rate difference of 6 yuan.
Borrow: Inventory cost difference KDM 6 yuan
This difference is included in the material ledger difference rollover
Loan: Other party’s account XXX 6 yuan
 

⑥ MR22 cost adjustment for the new period
Assumption: Allocate the cost of no output work order with the same material number 4 yuan
Borrow: Inventory cost difference PRD 4 yuan
This difference is included in the material ledger difference rollover
Loan: Other party’s account UMB-ZXX 4 yuan
 

Here's where the cost differences come from and where they go:
For example: after the PRY/PRD difference source is accounted for, it is allocated to the outbound and closing inventory through the PRY transaction;
For example: After the UMB-null revaluation difference source is recorded, it is apportioned to the outbound and closing inventory through the UMB-null transaction;
For example: after the KDM exchange rate difference source is recorded, it is allocated to the outbound and closing inventory through KDM transactions;
 

What needs attention is:
UMB-null, the account configured in the OBYC transaction code can be the same as the PRD/PRY/KDM account
UMB-ZXX (revaluation reason), accounts need to be configured according to the revaluation reason
 

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