Topic overview

All processes that lead to changes of quantity and/or value in inventoried items are documented in the form of inventory postings. Every inventory posting is assigned to one posting key. The posting key describes the posting process and contains, among other things, information on the type of inventory movement to be carried out, such as receipt, issue, transfer posting, revaluation or correction. The posting key also shows whether the posting is a primary or secondary operation, and which follow-up processes should be called up after a posting is made.

This article describes how posting keys are mapped in the system and how the application of the same name is structured. You will also learn about the relationship between a posting key and other applications and business entities and how it is connected with the business processes.

For instructions on working with the Posting keys application, such as how you can create and maintain posting keys, see the article Procedures: Posting keys.

Definitions of terms

Inventory valuation
Inventory valuation is an ongoing calculation of the corresponding value for item inventory available in the warehouse. The value is expressed in monetary units in the corresponding internal currencies. All inventory postings that cause changes to the quantity or value of inventoried items are documented in various valuation processes. In the course of generating the inventory postings, the inventory and its valuation is updated on the basis of the floating average price method. The full sequence of dated inventory valuations, such as the dated average price, can only be identified after the posting period has been closed.

Warehouse inventory management
Warehouse inventory management is an ongoing recording of the current warehouse inventory. The inventory management server updates these values after every inventory posting with a quantity transaction. Warehouse inventory management is done at the lowest structural level of the warehouse and item or identifier. If the item has several parallel inventory units, then quantities are maintained for each unit. Inventory quantities can have different properties, such as subdivision into different quality statuses.

Posting key
The posting key describes the posting process. Among other things, the posting key contains information about the type of action to be carried out, such as receipt, transfer, issue, revaluation, or correction. The posting key also shows whether the posting is a primary or secondary operation.

Inventory posting
Inventory posting is carried out in order to document all quantity and value transactions within Inventory management. In the process of inventory posting, inventory is updated and materials evaluated.

Application description

You can use the Posting keys application to create and maintain posting keys. The application consists of only one work pane.

Work pane

The identification pane contains the fields that uniquely identify the posting key as well as other characteristics of the posting key. The following input fields are available:

Posting key – this field displays the unique identification of the posting key. the identification is used to find the posting key in other applications. If required, enter an identification as the search criterion for the posting key that you wish to display or edit. When creating a posting key, enter an identification that has not been used yet. The identification can consist of up to four numbers, letters, or a number-letter combination. Once the posting key has been saved, you cannot change the identification anymore.

Process – enter the posting process in this field. the posting process controls the basic processing of the inventory posting. Select one of the following processes:

• Receipt
• Issue
• Receipt transfer posting
• Issue transfer posting
• Receipt revaluation
• Issue revaluation
• Correction

Posting keys of the Receipt process are used for posting goods receipts. Posting keys of the Issue process are used for posting goods issues. Posting keys of the Receipt transfer posting process are used for warehouse relocations that apply to one destination warehouse. Posting keys of the Issue transfer posting process are used for warehouse relocations that apply to one source warehouse. The posting keys of the Issue transfer posting process are only usable as follow-up posting keys for the Receipt transfer posting process category. In the case of transfer, the system automatically generates offsetting postings with the follow-up posting key. Posting keys of the Receipt revaluation process are used for warehouse revaluations that apply to the destination item or to the destination owner of inventory, if you want to change the owner of inventory in the course of the revaluation. Posting keys of the Issue revaluation process are used for warehouse revaluations that apply to the source item or to the source owner of inventory, if you want to change the owner of inventory in the course of the revaluation. The posting keys of the Issue revaluation process are only usable as follow-up posting keys for the Receipt revaluation process category. In the case of revaluation, the system automatically generates offsetting postings with the follow-up posting key. Posting keys of the Correction process are used for mapping quantity- and/or value-based corrections, e.g., as a result of an inventory count.

Process category – with the selection of the process category, you decide whether the posting based on this posting key is a main process or a special process. The assignment of a process category is used for classification of the posting key.

Number range – in the Number range field, enter the number range to be used for the posting key. the number range to be used must be of the Inventory postings category. Every posting based on this posting key contains a sequential number according to the specified number range. You enter the number ranges available for selection beforehand in the Number ranges application.

Follow-up posting key – the follow-up posting key is relevant only in the case of those posting processes where offsetting postings are created automatically, e.g., in the case of transfer postings or deliveries via a branch and consignment warehouse.
In this field, save the follow-up posting key required for the offsetting postings. A follow-up posting key is required for the following posting processes:

• Issue transfer posting
• Issue revaluation

For a posting key of the Receipt transfer posting posting process, assign a posting key of the Issue transfer posting posting process as the follow-up posting key. For a posting key of the Receipt revaluation posting process, assign a posting key of the Issue revaluation posting process as the follow-up posting key. The follow-up posting keys that are available for selection must be entered beforehand.

Cost center (check box) – using the check box, activate the Cost center function. then, a cost center must be entered for each inventory posting of this posting key. For automatic inventory postings that are generated based on upstream processes, it should be taken into account that these processes deliver or can deliver the cost center. If the check box in the posting key is activated and a cost center from the preliminary process is not delivered, the inventory posting is saved in the posting error log. See also the Customizing chapter. 

Note

With activated standard cost accounting, the verification in terms of a cost center is de facto overridden by the settings in the account and cost type (posting rules) – in the preliminary process.

Cost unit (check box) – using the check box, activate the Cost units function. A cost unit must then be entered for each inventory posting of this posting key. For automatic inventory postings that are generated based on upstream processes, it should be taken into account that these processes deliver or can deliver the cost unit. If the check box is activated and a cost unit from the preliminary process is not delivered, the inventory posting is saved in the posting error log. See also the Customizing chapter. 

Note

With activated standard cost accounting, the verification in terms of a cost unit is de facto overridden by the settings in the account and cost type (posting rules) – in the preliminary process.

Quantity transaction (check box) – if you activate the Quantity transaction check box, the inventory quantity of an inventory posting containing this posting key is updated. In the case of inventory postings executed without quantity transaction, the inventories are not updated. For example, it takes effect for postings of supplier invoices or supplementary cost invoices in the course of roll-up of the interim valuation of the receipt of goods.

Note

Transfer postings within a site are not taken into consideration for the inventory turnover statistics.

Valuation category – using the valuation category, you can define how the interaction of various posting keys is performed for the roll-up and post-valuation of receipts valued on an interim basis.
Select one of the following valuation categories:

• Interim
• Roll-up
• Roll-up supplementary costs
• Final

With the Interim valuation category, the items are valued on an interim basis through an inventory posting. As a rule, receipts of goods are entered with a posting key of the Interim valuation category. The inventory postings resulting from supplier invoices or supplementary cost invoices can have a posting key of the Roll-up or Roll-up supplementary costs valuation category, which leads to a correction of the valuation arising from the inventory posting of the Interim valuation category. The Interim, Roll-up, and Roll-up supplementary costs valuation categories are mostly relevant for the processes of receipts of goods, supplier invoices, and supplementary cost invoices. With the Final valuation category, a roll-up of the valuation through an inventory posting of the Roll-up or Roll-up supplementary costs valuation category is not possible.

Valuation price – for manually entered inventory postings, you can specify the origin of the valuation price. the valuation price entered in this field is used as the default in this case. In this field, choose one of the following valuation prices:

• Billing price 1
• Billing price 2
• Billing price 3
• Billing price 4
• Billing price 5
• Inventory count price
• Last cost price
• Average price

Note

In the case of posting keys with the Receipt transfer posting and Issue transfer posting processes, only the average price can always be chosen as the valuation price. Except for inventory postings from distribution orders, such an inventory posting is always valued with the average price.

For the majority of the ERP processes that lead to inventory postings, the valuation price is issued from the upstream vouchers and not the posting key. The following list presents several exceptions to this rule:

• Sales – the average price is always used in sales as the valuation price. Thus, issues do not lead to a
  change of the valuation price and are neutral for the value.
• Purchasing – the valuation price in the purchasing is based on the category of the receipt of goods type in the
  Receipt of goods types application. In the case of purchasing receipts, the valuation price is calculated according to the purchase order. For customer returns, the item is valued with the valuation price set in the posting key. In the case of distribution orders, the price accompanying the inventory posting is always taken.
• Production – in the case of production receipts, the valuation price from the posting key is used.

Note

The valuation price in the Sales order types application is used to determine the cost of goods. However, this value does not affect the inventory posting or the resulting inventory valuation.

Inventory valuation (check box) – if you activate the Inventory valuation function with the check box, the inventory in the course of an inventory posting containing this posting key will be valued again. In the case of inventory postings that are executed with the use of posting keys without inventory valuation, inventory values such as item account, average price, inventory accounts, and item/warehouse values are generally not updated.

Note

In practice, posting keys without inventory valuation from an old system can be used, for example, for a first inventory taking, or for a purely quantity-based inventory management, where inventory values should be generally left out. On the other hand, if an item/warehouse was valued at least once, the use of a posting key without inventory valuation in a reposting is not recommended because the inventory values after a reposting of this type (without inventory valuation) are not updated anymore and it can lead to inconsistencies in follow-up processes.

Warehouse-internal transfer postings are always valuation-neutral, i.e., they do not affect the inventory valuation. If the inventory valuation takes place at the item level and not at the item warehouse level, then transfer postings are generally valuationneutral. However, transfer postings in the case of inventory valuation on the item-warehouse level can
indeed affect the warehouse-specific valuation, because the inventory values differ or can differ among warehouses.

Take into account for FIFO, LIFO and annual LIFO (check box) – this parameter determines if the inventories should be also valued with the FIFO, LIFO and Annual LIFO valuation methods. If you wish to value the inventory postings (or the resulting inventories) generated with this posting key additionally after the FIFO, LIFO or Annual LIFO procedures, activate the Take into account for FIFO, LIFO and annual LIFO check box next to the Inventory valuation check box.

Note

This function is automatically deactivated and set to not editable when the Inventory valuation function is deactivated. The accumulation of the inventories or the inventory values separately according to receipts and issues in the period totals takes place only when the Take into account for FIFO, LIFO and annual LIFO check box is selected in addition to Quantity transaction and Inventory valuation.

Nominal ledger postings (check box) – this parameter box determines if the inventory posting is transferred to the Financial Accounting. If you want a transfer of the inventory posting to take place, activate the Inventory valuation and Nominal ledger postings functions with both check boxes.

Note

This function is automatically deactivated and set to non-editable when the Inventory valuation function is deactivated.The Nominal ledger postings function can be activated anytime if the check box is enabled; see also the chapter Customizing. However, it can be disabled only as long as no inventory posting has been made for the posting key yet.

Actual cost accounting actions (check box) – if this function is activated with the check box, an additional transfer of the actual cost accounting actions to the cost accounting is executed with the Synchronize Financials data batch application. If the check box is not activated, the actual cost accounting actions are transferred through the nominal ledger postings to the cost accounting.

Note

This function is automatically deactivated and cannot be changed when the Inventory valuation function is deactivated. The Actual cost accounting actions function can be activated anytime if the check box is editable; see also the chapter Customizing. However, it can be deactivated only if no inventory posting has been made for the posting key
yet.

Target cost accounting actions from the production (check box) – if the Target cost accounting actions from the production function is activated with the check box, an additional transfer of the target cost accounting actions from the production to the cost accounting is executed with the use of the Synchronize Financials data batch application.

Note

This function is automatically deactivated and set to non-editable when the Inventory valuation function is deactivated. The Target cost accounting actions function can be activated anytime if the check box is enabled; see also the chapter Customizing. However, it can be disabled only as long as no inventory posting has been made for the posting key yet.

Customizing

The following functions are relevant for the Posting keys application in the Customizing:

Controlling

The Cost center, Cost unit, Actual cost accounting actions and Target cost accounting actions from the production functions are visible in the Posting keys application only when this function is active for at least one company.

Financials and nominal ledger postings

The Nominal ledger postings function is visible only when the Financials and Nominal ledger postings functions are active for at least one company.

Business entities

The following business entity is relevant for the Posting keys application that you use, for example, in order to:

• assign authorizations
• set up activity definitions
• import or export data.

Posting key: com.cisag.app.inventory.obj.TransactionType

The business entity is part of the following business entity group: com.cisag.app.inventory.MasterData

Authorizations

Authorizations can be assigned by means of authorization roles as well as by assigning an organization. The authorization concept is described in the technical article Authorizations.

Special capabilities

There are no special capabilities for the Posting keys application.

Organization assignments

If the Content-based authorizations function is activated in the Customizing application, a person can only view the Posting keys application if an organization that is linked to at least one of the following structures has been assigned to him or her in the partner master data:

• Inventory Management

Special features

There are no special features for the Posting keys application.

Authorizations for business partners

The Posting keys application is not released for business partners.