validation

The process of checking values and combinations of values as they are entered into the SAP System.

Entered values are checked against a user-defined Boolean statement (this is a prerequisite). If the statement is true, the SAP System validates the data using a second Boolean statement (as a check). If the check statement is true, the SAP System posts the data. If the checkstatement is false, it issues a user-defined message. Depending on the message type, the posting may be blocked.

Validation occurs before the data is posted, so that only valid data is posted.

validation

The process of checking values and combinations of values as they are entered into the SAP System.

Entered values are checked against a user-defined Boolean statement (this is a prerequisite). If the statement is true, the SAP System validates the data using a second Boolean statement (as a check). If the check statement is true, the SAP System posts the data. If the check statement is false, it issues a user-defined message. Depending on the message type, the posting may be blocked.

Validation occurs before the data is posted, so that only valid data is posted.

validation check

The stored values of a company are checked against the predefined validation rules, when a validation is run.

These validation rules are user defined.

The validation check changes the status of a company within Status Management.

Consequently, the next step in Status Management can be performed only after the validation check has been run without errors.

validation group

A group that consists of rules for checking data consistency in the SAP System.

A validation group is user-defined, must be assigned to each company, and should be assigned to each subgroup.

validation group

A group that contains rules for checking the consistency of the data in the SAP System.

A validation group is defined and then assigned to each company and subgroup.

valuated project stock

An inventory of materials for processing a project, the value of which is calculated by valuating the material movements in real time.

valuated sales order stock

An inventory for processing a sales order.

The value of this inventory is determined by valuating the material movements in real time.

valuated stock

The stock of a material owned by a firm that is part of the firm's current assets.

Various procedures can be applied to valuate this stock.

The valuated stock of a material at a plant is the sum of:

• Unrestricted-use stock held at all storage locations
• Stock in quality inspection at all storage locations
• Stock in transfer at storage location and plant levels

valuation

A valuation is the process of identifying or calculating cost accounting values in Profitability Analysis.

You can valuate both plan and actual data.

There are the following basic methods of valuation:

• Valuation using conditions and pricing procedures -

Conditions can be used to calculate values that are needed for reports (such as stepwise contribution margin analyses) but that are not known at the time of posting. This enables you to determine values such as sales commission, discounts, rebates and shipping costs to evaluate a sale at the time of billing.

• Valuation using material cost estimates -

This method enables you to determine the cost of goods manufactured when a transaction is updated in Profitability Analysis. For example, you can compare the revenues and sales deductions taken from a billing document with the variable and fixed cost components for the cost of goods manufactured of the product sold.

• Valuation using user-defined valuation routines -

If you require values that cannot be found using one of the other methods, you can also program your own valuation routines.

valuation

A balance sheet term: the calculation of the value of all fixed and current assets and of all payables at a certain time and in line with the appropriate legal requirements.

valuation alternative

The prices based on tax law and commercial law from the material master record are saved in a table.

The saved data is available for valuation or analysis.

valuation area

An organizational unit in Logistics subdividing an enterprise for the purpose of uniform and complete valuation of material stocks.

valuation category

Criterion for the separate valuation of different stocks of a material managed under one material number.

Reasons for such so-called "split valuation" include:

• Quality
• Batch
• Degree of purity
• Use or non-use in promotions

valuation class

Assignment of a material to a group of G/L accounts

With other factors, the valuation class determines the G/L accounts that are updated as a result of a valuation-relevant transaction or event such as a goods movement.

The valuation class makes it possible to:

• Post the stock values of materials of the same material type to different G/L accounts
• Post the stock values of materials of different material types to the same G/L account

valuation date

The date on which materials, internal activities, and external activities are valuated in costing.

valuation differences

The costs relating to operational expenses. Such costs are valuated or distributed across periods differently in cost accounting than in financial accounting.

Example

• Depreciation may be posted as a different amount in cost accounting to that posted in financial accounting.
• Vacation pay or Christmas bonuses may be distributed evenly across periods in cost accounting.

valuation header record

A material master record used in the case of the split valuation of stocks of a material.

You create this record for the valuation criterion you wish to allow for the material together with the associated valuation category.

valuation method

The method that determines how an asset is valued during its useful life.

The most important parameter of a valuation method is the depreciation key for the automatic calculation of planned depreciation. Other parameters include the useful life or period control.

valuation method

A method that can be used for multiple charts of accounts.

It determines the method with which a foreign currency valuation is to be performed as part of the closing procedures. An example of a method is the lowest value principle.

valuation of net assets

The valuation of net assets according to capital taxation criteria.

The property values can be managed in their own depreciation area.

valuation price

The price per base unit of measure of a material.

The valuation price is the basis for determining the value of goods for balance sheet purposes.

valuation procedure

An option allowing stocks of materials to be valuated according to different principles.

Example

• LIFO valuation
• Valuation according to the lowest value principle

valuation reserve for special reserves

A balance sheet posting on the liabilities side, showing the difference between the valuation of assets for tax purposes and for book depreciation purposes.

Typically these reserves are not subject to taxes, and must be displayed separately in the balance sheet. In certain countries, these reserves are permitted to be formed from untaxed gain as a result of special tax depreciation, but must be taxed in later periods.

valuation strategy

A method of costing-based valuation of value fields.

The valuation strategy describes the valuation methods that are used to valuate value fields, and in which order the SAP System applies them.

The following methods are available:

• Valuation using conditions
• Valuation using material cost estimates
• Valuation using user-defined valuation routines

valuation strategy

A strategy for the valuation of materials, internal activities, and external activities in costing.

It depends on the costing variant and the valuation variant.

valuation type

An subdivision of a valuation category in split valuation.

Example

An enterprise manages its stocks of a material using the valuation category "Quality", comprising the following valuation types:

• High quality
• Average quality
• Inferior quality

valuation type

The basic criterion for calculating the asset value.

In a depreciation area, in addition to the acquisition and production costs and ordinary depreciation, the following special valuation types can be calculated:

• Revaluation
• Investment support measures
• Special depreciation
• Unplanned depreciation
• Transfer of reserves
• Interest

valuation variant

A key, in Product Cost Planning,

that determines the prices that the SAP System selects to valuate the quantity structure of a material cost estimate or order, or to valuate the costing items of a unit cost estimate.

The valuation variant controls how the materials and activities in the cost estimate are valuated. The valuation variant specifies the following parameters:

• The price in the material master (such as the standard price) or in the purchasing info record (such as the net order price) that is used to cost a material in the BOM
• The planned or actual price that is used to valuate the internal activities
• The version in Cost Center Accounting that is used to valuate internal activities
• The costing sheet that is used to calculate overhead
• Whether, and to what extent, a BOM item or an operation in the routing is relevant to costing

The different valuation strategies for materials, internal activities, external activities, and subcontracting are stored as strategy sequences.

A global valuation variant is valid for all plants. A local valuation variant is valid only for a specific plant. You define valuation variants in Customizing for Product Cost Controlling.

In Cost Object Controlling, there is a valuation variant that can be used for the valuation of work in process at target costs and for the valuation of scrap variances.

In this valuation variant, you specify the cost estimate that is used to calculate the target costs.

valuation view

A particular vantage point from which you can valuate your business transactions - that of an individual company, of the group as a whole, or of a profit center within the organization.

In the context of multiple valuation and transfer prices, you can define the following views:

• Legal view
• Group view
• Profit center view

Together with a currency type and a currency, the valuation view creates what is called a valuation approach.

value added

The difference between the value of goods produced and the cost of materials used in producing them (Samuelson, Economics).

In the SAP R/3 System, this indicates whether a business process is relevant to, or has a deciding influence on, the production of a product or service. The degree of influence on the value added is illustrated by means of a ranking order.

value as new insurance

An insurance using the asset value as new as the base value.

You can define an index series for determining the insurable value that takes price increases into account, and enter this index series in the asset master record.

value change

Changes that are liable to occur during the valuation process in connection with goods movements and material price changes (in Inventory Management and Invoice Verification, for example).

value contract

An agreement that a customer will order a specific value of releasable products during a specified period.

The contract does not include a schedule of specific delivery dates.

value contract

A contract (form of long-term purchasing arrangement) in which the purchase of goods or services up to a total value is agreed.

The goods released (called off) against the contract are specified in contract release orders (outside SAP, also known as "call-offs").

A criterion for the fulfillment of a value contract is its agreed total value.

value date in the past

An item posted to a period for which interest has already been calculated.

value field

The value fields contain values and quantities that were updated or planned for particular objects.

In costing-based profitability analysis, value fields represent the highest level of detail at which you can analyze quantities, revenues, sales deductions, and costs for profitability segments in profitability analysis or contribution margin accounting. You are able to define the revenues and costs that go into specific value fields for profitability reports or sales and profit planning when you set up your SAP System.

Example

• You can define your sales deductions to reflect the structure of sales deductions in SD conditions.
• For the cost of goods manufactured, costs can be represented in accordance with the costing sheet in material costing (or summaries thereof).

value item

A financial statement item for which you can enter data as values or quantities.

value limit

Maximum value that the costs of unplanned services must not exceed.

Value limits facilitate the inclusion of unplanned services in bid invitations or purchase orders. In the case of large procurement projects (such as the construction of an office building) it is not possible to specify with precision all services or items of work in advance. In such cases, you enter value limits instead of service descriptions.

value of goods received

The sum of the amounts posted to the GR/IR clearing account for a business transaction when goods receipts are posted.

value of travel flat rate

A value used for calculation of miles or kilometers with the travel flat rate

value type

An indicator that distinguishes between costs such as:

• Actual costs
• Planned costs
• Target costs

value variable

A variable that represents a specific value that you can enter directly.

The variable can be changed when a program that uses the variable is executed.

Value variables can be used only in basic sets.

VAR

Simplified export regulation for Switzerland (Vereinfachte Ausfuhrregelung)

A monthly declaration to the Swiss authorities that provides statistics on exports from Switzerland.

variable

A name that is given to data that can be changed when a program that uses the variable is executed.

A variable could be:

• A company
• The current year
• The current month
• A date
• A user name

variable cost

A portion of the total cost that varies with the operating rate and the lot size.

variable depreciation

The calculation of depreciation amounts that are proportional to the multiple-shift usage of the asset.

The SAP System allows for both depreciation that is independent of the usage of the asset and depreciation that is variable based on usage. You can split the depreciation of an asset into a fixed portion and a variable portion. The SAP System then multiplies the variable portion by a multiple-shift factor.

variance

The difference between target cost and control cost that is analyzed in cost accounting.

Target costs can be calculated on the basis of various costs such as standard costs or planned costs. Control costs can be the actual costs.

variance calculation

A stage in the period-end closing process that determines variances for the following objects:

• Cost centers
• Product cost collectors
• Production orders
• Process orders
• Cost object hierarchies

Variances enable you to determine the effects of various factors, such as:

• Changes in the quantities of materials consumed
• Changes in the prices of materials consumed
• Changes in the operating level of the cost center

variance category

A classification of variances based on their cause.

You can calculate the following variance categories on the input side:

• Scrap variances (only in Product Cost Controlling)
• Input price variances
• Resource usage variances
• Input quantity variances
• Remaining input variances

You can calculate the following variance categories on the output side:

• Fixed cost variance (only in Overhead Cost Controlling)
• Mixed price variance (only in Product Cost Controlling)
• Output price variance
• Output quantity variance (only in Overhead Cost Controlling)
• Lot size variance (only in Product Cost Controlling)
• Remaining variances

variance key

A key that ensures the object is selected during variance calculation.

Also controls whether scrap costs are reported in a separate category.

variance variant

A parameter that determines the variance categories that are calculated.

VAT transaction

A business transaction, in South Korea, where you sell a product to a customer that is in possession of a VAT registration number.

When you prepare the VAT summary report for the National Tax Service, these transactions are categorized as such on the return.

vendor

A business partner to whom amounts are payable for goods delivered or services performed.

Examples of such services or goods include:

• Goods acquired
• Business services received
• The transfer of a right

vendor account

A structure that records value movements in a company code that affect receivables or payables with regard to a vendor.

A vendor account contains transaction figures where value movements are recorded as periodic totals in the accounts payable ledger (for reporting purposes. A distinction is made between:

• Normal transaction figures -

These represent value movements as totals per posting period for the relevant reconciliation account.

• Special transaction figure -

These represent value movements as totals per fiscal year referring to a category of special G/L transactions (special G/L indicator).

A vendor account also contains information required by a company code to present the actual value of the business transactions conducted with a vendor.

Payables to vendors are recorded simultaneously in a general ledger account by assigning a reconciliation account to the vendor account. To present payables per category of special G/L transactions, you have to specify a chart of accounts position for each of these categories to reconcile them in the general ledger (reconciliation account determination). This assignment covers all company codes.

vendor consignment stock

Stock made available by the vendor that is stored on the purchaser's premises but remains the vendor's property until withdrawn from stores for use or transferred to the purchaser's valuated stock.

vendor contract

An outline purchase agreement with a vendor, fulfilled through the issue of release orders referencing the contract.

A vendor contract can have one or more items and is based either on the value of the goods or services (value contract) or the quantity (quantity contract).

vendor declaration

A document provided by a vendor that is issued to verify origin of a product or group of products and authorization for preference treatment.

The vendor declaration is used in the SAP System for material calculation during preference determination.

vendor evaluation

A program that provides a decision basis for selecting and controlling sources of supply.

The user can specify and weight the main criteria for evaluating a vendor.

The main criteria are:

• Delivery reliability
• Price
• Quality
• General service and support

The main criteria can be divided into subcriteria.

The system computes a points score for the vendor based on the weightings given to the criteria. The user specifies the maximum attainable score.

vendor evaluation criterion complaints level

In the vendor evaluation system, a subcriterion of the main criterion "Quality".

This subcriterion is used to assess the quality of the materials supplied by a vendor.

vendor master

The collective term for all vendor master records.

The vendor master contains the data of all vendors with which a company conducts business.

vendor master record

A data record containing all the information necessary for any contact with a certain vendor, in particular for conducting business transactions.

This information includes, for example, address data and bank data.

vendor net procedure

A procedure whereby cost or inventory postings are reduced automatically by the expected cash discount when an invoice is posted.

You can, for example, post exact acquisition values (less the cash discount) to fixed assets accounts.

vendor outline agreement

A long-term purchase arrangement with a vendor for the supply or provision of materials or services subject to specified conditions.

The conditions apply for a predefined period of time and to a predefined total quantity or total purchase value.

vendor quotation

An offer from a vendor to a purchasing organization to supply materials or perform services subject to predefined terms and conditions.

vendor scheduling agreement

A type of outline purchase agreement with a vendor in which delivery dates and quantities are defined in a delivery schedule.

A vendor scheduling agreement can have one or more items. There can be several delivery schedule lines for each item of the agreement.

Where procurement is based on scheduling agreements, the lines of the delivery schedule replace individual purchase orders.

version

An original or revision of a requisition or external purchasing document.

When a purchasing document is changed, the changes are recorded in a change document. Change documents from a certain period are collected in a version and are then available for analyses.

A new version is always created by the system when a requisition or external purchasing document has reached a final state.

By "final state" is meant either "Active" or "Release completed".

Note

Versions are created at item level in purchase requisitions and at header level in external purchasing documents (e.g. purchase orders).

version

The objects that enable you to perform consolidations using different valuations and to run separate comparisons and simulations based on different financial statement data.

These can then be compared using current reporting tools.

You can create a new version at any time.

version

A collection of fiscal year-dependent indicators for plan and actual data for one controlling area. These indicators include:

• Lock version
• Integrated planning or line item update
• Copying allowed
• Exchange rate type
• Value date
• Integration of order plans with Cost Center Accounting
• Purely iterative activity price
• Methods for calculating planned activity prices
• Methods for calculating actual activity prices
• Revaluation indicator (for revaluating actual activities with an actual activity price)
• Cost component structure for cost component split
• Valuation variant for CO resource planning

Versions enable you to carry parallel sets of planning data for the same object, such as optimistic plan data and pessimistic plan data.

version-specific cost estimate

A cost estimate for a production version, executed separately for each product cost collector.

A production process with the CO level "Production: Production Version" must be assigned to the product cost collector.

Version-specific cost estimates use the BOM and routing of the production version.

volume variance

The volume variance identifies over-absorption and under-absorption of fixed plan costs per cost element for each activity type.

It shows whether the fixed cost center costs are covered by actual activity. The variance is always because of actual activity variance from plan activity.

volume-based rebate

A cumulative, period-end discount granted by a vendor to a customer.

The volume-based rebate is typically based on the volume of business done with the customer within a specified period and is intended to serve as an inducement to the customer to buy more.

It is defined with the aid of condition records.