4 Steps to Streamline Standard Costing Performance for Split Valuated Materials

  • by Mehulkumar Patel , Senior System Engineer, Conagra Foods
  • July 29, 2015
Discover how to improve the performance of the CK40N program for split valuated materials without batch archiving.
Learning Objectives

Reading this article, you’ll learn how to:

  • Set the deletion flag at the valuation type (batch) level
  • Use parallel processing
  • Improve performance for standard costing for split valuated materials
Key Concept

CK40N (Automation of Standard Cost Estimate) or CK24 (Price Update with Cost Estimate) are the standard SAP transaction codes to run costing. Some companies do costing every year, and very few companies do it every month. With the help of transaction codes CK40N or CK24, you can load the standard price en masse. To get the correct standard cost, all the logistics data, such as material master, bills of materials (BOM), routings, recipes, activity rates, and costing sheets, must be accurate.

A company that uses split (batch) valuated materials ends up processing hundreds of thousands of batches. When a company does costing in the SAP system, the CK40N or CK24 programs try to look for all these batches for all materials. This process is very time-consuming and sometimes is not feasible when you have a short deadline to complete the costing. If you archive all these batches, the performance of the CK40N program can be improved, but batch archiving is itself a separate project. I explain how to improve the performance of the CK40N program for batch valuated materials without batch archiving.

First, I want to provide you with some information about split valuation. For certain materials, you need to valuate the various stocks in a particular valuation area separately. Here are some examples:

  • Different origins of the material
  • Different grades of quality for the material
  • Different statuses for the material
  • Differentiation between in-house production and external procurement
  • Differentiation between different deliveries

If a material is subject to split valuation, the material is managed as several partial stocks and each partial stock is valuated separately. Each transaction that is relevant for valuation, such as a goods receipt, goods issue, invoice receipt, or physical inventory, is carried out at the level of the partial stock. When you process one of these transactions, you must always specify which partial stock is involved. This means that only the partial stock in question is affected by a change in value. The other partial stocks remain unaffected.

Alongside the partial stocks, the total stock is also updated. The calculation of the value of the total stock results from the total of the stock values and stock quantities of the partial stocks.

You define whether the material is subject to split valuation on the accounting view of the material master record.

Mehulkumar Patel

Mehulkumar Patel is a senior system engineer and certified SAP controlling (CO) consultant with approximately 10 years of experience in SAP FI/CO. He has done multiple end-to-end SAP implementations of SAP applications. He holds bachelor’s and master’s degrees in computer science and an MBA in finance. He also is certified in SAP CO.

 

See more by this author


Comments

No comments have been submitted on this article. 


Please log in to post a comment.

To learn more about subscription access to premium content, click here.