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FBVV_ROC_DEVAL - Maintain Devaluation Percentages by Range of Coverage

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Define devaluation percentages by range of coverage for writing down inventory values in the balance sheet.

In this step you define how inventory values are to be written down by entering devaluation percentages by range of coverage.

The devaluation percentages are based on the ledger, the organizational units (valuation area and company code) and material characteristics (valuation class and material type).

Note that these elements are read in the following priority sequence:

1. Ledger
2. Valuation Area
3. Company Code
4. Valuation Class
5. Material Type

This priority sequence determines which percentage is selected in case of multiple entries, as illustrated in the following examples.

Example 1

Valuation Area	Company Code	Valuation Class	Material Type	Range of Coverage	Devaluation %
1000	0001	3000		6	10
1000	0001		ROH	6	15

Two devaluation percentages have been defined for the same valuation area and company code. In the first entry the material type has been left blank, while in the second entry the valuation class has been left blank. If a material in valuation area 1000 has valuation class 3000, material type ROH and a range of coverage of 10 periods, a devaluation percentage of 10% will be selected, since the valuation class has a higher priority than the material type.

Example 2

Valuation Area	Company Code	Valuation Class	Material Type	Range of Coverage	Devaluation %
0001	3000		6	10
1000	0001		ROH	6	15

In this example, if a material in valuation area 1000 has valuation class 3000, material type ROH, and a range of coverage of 10 periods, a devaluation percentage of 15% will be selected. This is because the valuation area has a higher priority than the company code. Note that the second entry will be used even though the valuation class has been left blank, since the organizational units take priority over the material characteristics.

Example 3

Valuation Area	Company Code	Valuation Class	Material Type	Range of Coverage	Devaluation %
0001		6	10
0001		10	20
1000	0001		6	15

For materials in company code 0001 with valuation area 1000, a devaluation percentage of 15% will be selected (assuming the other parameters correspond to those of the material). The other two entries will be ignored.

For materials in company code 0001 with a valuation area other than 1000, the devaluation percentage in one of the first two entries will be selected (assuming the other parameters correspond to those of the material). The third entry will be ignored.

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