What is period-end valuation in SAP (LO-CMM - Commodity Management in Logistics)?

SAP Term: period-end valuation

• Component: LO-CMM

• Component Name: Commodity Management in Logistics

• Description: Commodity Management in Logistik Period-end accrual process in Sales and Distribution and Materials Management. During this process, the system defines and posts an accrual amount, providing no final invoice has been posted with a posting date either before or on the valuation key date: Sales and Distribution: For commodity delivery items with goods issue Materials Management: For commodity goods receipt items that are relevant for differential invoicing An accrual amount is the difference between an anticipated final invoice amount and the amount actually posted. In purchasing, the system also takes into account the open amount on the goods receipt / invoice receipt clearing account. An accrual amount may have to be approved before it can be posted. A reset posting for the accrual amount is made at the beginning of the following period. In Sales and Distribution, the final billing document signals the end of this process, and in Materials Management, the final invoice represents the end.

Smart SAP Assistant

• Key Concepts: 
  Period-end valuation is a process in SAP Logistics Commodity Management (LO-CMM) that allows users to determine the value of their inventory at the end of a given period. This process is used to ensure that the inventory is accurately accounted for and that the financial statements are accurate. 
  
  How to use it: 
  In order to use period-end valuation, users must first enter the relevant data into the system. This includes the quantity and value of each item in inventory, as well as any additional costs associated with the items. Once this data has been entered, users can then run the period-end valuation process to determine the total value of their inventory at the end of the period. 
  
  Tips & Tricks: 
  It is important to ensure that all relevant data is entered into the system before running the period-end valuation process. This will ensure that the results are accurate and that any discrepancies can be easily identified and corrected. Additionally, it is important to regularly review and update the data in order to ensure that it remains accurate over time. 
  
  Related Information: 
  For more information on period-end valuation in SAP Logistics Commodity Management, please refer to SAP Help documentation or contact your local SAP support team.