What is equivalence number distribution in SAP FIN-BAC-INV - Inventory Accounting?

SAP Term: equivalence number distribution

• Component: FIN-BAC-INV

• Component Name: Inventory Accounting

• Description: Distribution method for joint products. In equivalence number distribution, costs are distributed based only on the equivalence numbers defined by the user. Other criteria such as the output quantity of the joint products have no influence on distribution.

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• Key Concepts: 
  Equivalence number distribution is a feature of SAP Inventory Accounting (FIN-BAC-INV) that allows users to assign a unique number to each item in their inventory. This number is used to track the item’s movement and status throughout the inventory system. It also helps to identify the item when it is sold or transferred to another location. 
  
  How to use it: 
  To use equivalence number distribution, users must first assign a unique number to each item in their inventory. This can be done manually or through an automated system. Once the numbers are assigned, they can be used to track the item’s movement and status throughout the inventory system. The numbers can also be used to identify the item when it is sold or transferred to another location. 
  
  Tips & Tricks: 
  When assigning numbers, it is important to ensure that each number is unique and not duplicated. This will help prevent confusion and ensure that items are tracked accurately. Additionally, it is important to keep track of the numbers assigned so that they can be referenced easily in the future. 
  
  Related Information: 
  Equivalence number distribution is just one of many features available in SAP Inventory Accounting (FIN-BAC-INV). Other features include inventory management, stock control, and order processing. Additionally, there are many third-party tools available that can help users manage their inventory more efficiently.