Hi
Our client wants to go for the AVR functionality to get the cumulative average actual cost for the financial year. We are looking at both the AVR options - delta & total postings. We want to understand the impact of AVR on the COPA Periodic Revaluation in both the above scenarios - delta & total postings.
Our concern is how the COGS of the previous periods would be revalued in COPA. For example, once we close ML for February, how would KE27
revalue the COPA COGS for the month of Jan.
For example, lets say the YTD average cost for Jan AVR was 120. In this scenario KE27 for Jan would ensure that COPA COGS is also 120. Hence
FI COGS 120 = COPA COGS 120.
Now when we close Feb, lets say that the YTD Feb average cost (Jan & Feb) was 125. In this scenario KE27 for the Feb invoices would ensure that the total COPA COGS is also 125. However, how will the system revalue the Jan invoice COGS to ensure that the total COGS is 125.
The total COGS in these invoices was 120 based on the KE27 results in Jan (based on Jan AVR). If this does not happen, we will have differences between FI COGS & COPA COGS.In the current scenario, there is a difference between the two
YTD Feb FI COGS = 125*2 = 250
YTD Feb COPA COGS = 245 which is 120*1 (Jan AVR) + 125*1 (YTD Feb AVR)
YTD FI & COPA COGS Differences = 5
Would appreciate any inputs on this issue
Lalit