Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order · Module 15 · Cost Accounting Structures
Valuation structures and units
Lesson 156 of 188 · 14 min
Create a valuation structure at cost organization level, then one at subinventory level. Show a lot-level structure and discuss the volume implications. Show valuation units being created as transactions occur, show the same item valued differently under two structures, and show the on-hand value report at each granularity. This is the granularity question from the workshop, made concrete — two structures side by side so the difference is visible. Subinventory-level valuation means the same item can have a different unit cost in raw material and in finished goods. Sometimes exactly what Finance wants; sometimes deeply confusing to everyone else. Make sure it is a decision. Lot-level valuation is precise and generates a valuation unit per lot. For a high-volume lot-controlled item that is a very large number of records. Justify it before building it. This cannot be changed after transactions. Said here, again.
The full lesson is part of the course
The video, the complete written lesson and the module quiz are included in Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order, with a certificate on completion and a fourteen-day refund window.
In this module: Module 15 · Cost Accounting Structures
- 1What we are building
- 2The warning nobody readsFree preview
- 3The costing object model
- 4Choosing a cost method
- 5Cost organization design
- 6Running the costing design workshop
- 7Cost organizations and cost books
- 8Cost organization relationships
- 9Cost elements and components
- 10Cost component mappings
- 11Valuation structures and units
- 12Cost profiles
- 13Expense pools and accounting
- 14Quick setup for cost accounting
- 15What breaks
- 16Lab briefing: the Halden costing design
- 17Lab solution walkthrough