MR22 Price Change & Variance Program
Manage MR22 price changes and period opening/variance with full control.
What problem does it solve?
Manual MR22 price changes and period opening/variance entries proceed one by one without documentation; a wrong amount or material directly distorts inventory valuation and cost.
How does the solution work?
Conforcus's MR22 program runs Material Ledger price changes and period opening/variance postings in bulk, by rules and traceably, validating entries and preventing wrong postings up front.
What changes in practice?
The program runs on top of the MR22 price change and period-opening transactions in the Material Ledger. Postings are prepared in bulk instead of being entered individually, and each line states which amount is to be posted to which material for which period. Validation checks apply before posting: material and amount are checked against defined rules, and a line that breaks a rule is stopped before it reaches inventory valuation. Once the checks are complete, the postings are made in bulk. Period-opening postings are managed within the same structure, so opening and price-difference work no longer has to be tracked as separate tasks.
For the inventory valuation owner the way of working changes: instead of moving line by line through the MR22 screen, the whole set of postings is prepared, the check results are reviewed and only the lines stopped by the checks are corrected. Because a wrong amount or a wrong material is caught before anything is posted, there is less need to post corrections afterwards and to explain their effect on cost. Since bulk runs are traceable, a question about a change in a material's valuation can be answered by showing which posting was made, for what amount and in which period; nothing is left undocumented.
Benefits
- Price-change and variance postings in bulk and under control
- Wrong amount/material entries prevented up front
- Inventory valuation and cost integrity preserved
Where it sits in SAP
Integrated with Material Ledger (MR22) price change and period-opening transactions; provides bulk variance posting, validation checks and period-opening management. A production-proven program built on CO/Material Ledger expertise.
Who it is for: Cost Accounting Manager, Inventory Valuation Owner, CFO
Frequently asked questions
Which checks run before posting, and what happens to a line that breaks a rule?
The program passes the postings prepared in bulk through validation checks before anything is posted; the checks focus on the errors that distort inventory valuation directly, namely a wrong material and a wrong amount. A line that breaks a rule is not posted and is shown to the user for correction. Which rules apply is defined during setup according to the organization's valuation practice.
What do we do if a posting that passed the checks later turns out to be wrong?
The program's main safeguard is preventing a wrong entry before it is posted. If a posting that complied with the rules but was wrong in business terms has nevertheless been made, it is corrected with a posting in the opposite direction for the same material, and that posting also goes through the same checks in the program. Since the original posting and the correction remain traceable, how the valuation changed can be shown step by step afterwards.
What should we watch for regarding periods and closing when making period-opening and price-difference postings?
A price-difference posting affects the inventory value of the period it is posted in and the cost calculated for that period, so which period the posting belongs to and when it is made relative to the Material Ledger close need to be planned in advance. The program manages period-opening transactions within the same controlled structure as price-difference postings. It is advisable to fix the timing in the close calendar together with the person responsible for closing.