Material ledger and transfer pricing

Hi
Is it amndatory that I need to activate ML for configuring transfer pricing?

Yes. ML activation is a mandatory settings for transfer pricing.

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Variance between Material Ledger and General Ledger of

There is again a variance between Material Ledger and General Ledger of
7.026,64 (Tcode MB5L) as it was already in $$100036500(G/L).
The strange thing is, that there is only a difference in the GL Account
Balance report (FS10N) for S240077000(G/L ). In the Line Item report (FBL3N)
all documents are available. This issue impacts at least the Balance
carry forward negativ at the year end, because the system will forward
the the amount of the balance for S240077000, which is now 7.026,64 to
less.
Ther first investigations results:
- all Material- and FI documents are available.
- the variances in June refer to FI-documnets 4900015286 and 4900015293.
- the documents, e.g. 4900015292 and 4900015287, are correct and was
posted at the same day by the same user and with the same transaction
MI07.
- there are no differences for the posted materials identificable from
the other materials

Material Ledger/Actual costing MLAC
MLAC is used where the FG cost varies every month due to external procurement variation.
Ex: Jan 2011
FG cost of manufcature internally = 100
FG cost of procurement externally = 120 ( Company procures due to capacity constraint)
FG Standard price at the end of month = 110...This is standard price of FG
Due to heavy fluctuations in the month of February 2011 in procurement...
Ex: Feb 2011
FG cost of manufcature internally = 140
FG cost of procurement externally = 460 ( Company procures due to capacity constraint)
FG Standard price at the end of month = 300...This is standard price of FG.
The variance is very high in Feb 2011 and company want to absorb this variance in Feb 2011 iteslef hence they will use MLAC.
So if the variance is within reasonable limits company usually do not follow MLAC.
Where as if the variance is very high company usually follow MLAC.
In Pharma Industry usually the variance is very high on month to month basis hence they follow MLAC.
Where as in Industrial Mahcineery Manufacturing Company the variance is with in reasonable limits hence they do not follow MLAC. Ofcourse they can use MLAC as well.
Srinivas

MATERIAL LEDGER AND PRICE CONTROL V

Hi Gurus.
In a Plant I've activated material ledger and some materials have price control V. how does price control V works with material ledger? the average price is uptated at the end of the month or is updated with every receipt?
Kind Regards.

Hi Andres,
What is the price determination indicator in material master? is it 3 or 2?
Materail ledger during the Actaul Costing Run consider only the price determination indicator 3 material masters.
Generally all BOM component material masters, we should maintain price determination indicator 3 and price control S.
All other materials you can have price determination indicator 2 and price control V.
Regards,
ADI

Material ledger and cost estmate

Hi all
Can any body tell me the impact on material ledger of deleting the current standard cost estimate from material master? The requirement has come for change the current standard cost from material master whom we have released on 01.01.2008 and now today at 07.01.2008 we want to change this. All the transactions for material in current period I have got the reverse. Now I will delete the cost estimate from T_code CKR1 and than the new standard cost will releases from today in same period. At month end we are going to run the actual costing. Would be any problem in actual costing?
Thanks and Reagrds
Vinay Thakre

thanks Pascal for prompt response,would you please advise my below understanding to ML and actual cost
1)CKMLCP - Edit Costing Run to create costing run to calculated periodic unit price
2)Because there are some activities in CKMLCP,we have to respectively execute CKMF / CKMG/CKMJ / CKMH / CKMI for each activity of costing run
3)after costing run with CIMLCP,SAP will use calculated periodic unit price to revaluate inventory for previous period,and the price indicator S automatically changed to V for previous as well.
4)SAP will generate FI cocument to adj inventory and consumption cost after "post closing"
5)there is different periodic unit price for each closed period
5)the price indicator for closed period is always V,the price indicator in current period is S

Material ledger and standard cost estimate

Hi Gurus,
When standard cost estimate is done in a scenario, where material ledger is activated, does the entire stock get revaluated andl post a credit in my P/L? Is it possible to keep my inventory(FG and SFG) at periodic unit price ie at the actual manufacturing price over a longer period say 3 years? Please fill this gap in my understanding.
Best regards
Vimal

Hi Vimal,
Material ledger uses the standard price as 'preliminary price' always during the current month, independent of the question if a new standard price was estimated and released.
But: After period end, when the actual price is calculated the posting will adjust the inventory and P/L accounts to the actual price, with posting date in the recent period.
That means if you have a material that was manufactured once and then consumed over a 3 year period, and during that period you calculate the same material in a standard cost estimate with changing results, that would mean: Looking back at any month during the 3 years the consumption and stock values will be valued at the actual price of manufacturing. But during the currently open period it will always be valuated at the price of the last released cost estimate.
I hope I understood your scenario correct...
Best regards, Udo

Material ledger and cash journal

In a company code where and how do I check whether cash journal and Material Ledger is activated or not?

In fbcjc0 check whether any business transactions are set up or not in respect of your company code or not.

Enhance 2LIS_03_UM to include Material Ledger and Group Currency

Hi all,
I have searching for a solution for this issue for almost a week now both in SDN and Service Marketplace but seems that there is very less informaton about it.
Background:
We are in the process of implementing the standard content for Inventory in BI and have followed all the steps necessary to initialize and load data. Out data matches perfectly with reports such as MC.1 and MB5L however in the Revaluation datasource there is no provision to pickup other currency type for material price maintained in material ledger.
I have been trying to find some User Exit/BADI either in the V1/V2 posting or during V3 collection run to pick the delta in standard price and Moving Average Price (MAP) for these difference currency types but without any success.
We have total three valuations maintained in the ML (Material Ledger)
10 - Local Currency (this is the only one provided in the standard content extractor)
30 - Group Currency With Group Valuation
31 - Group Currency with Legal valuation
Even if I change the Group currency in MR21 the change is picked up by 2LIS_03_BF and with the field BWGEO blank. This is not surprising since this field is for Local currency only.
I am sure that someone must have faced this issue before where material ledger is active, any help is appreciated.
Thanks
Raj

Hi,
Delta load extracts data from Delta Queue based on your update mode selected in LBWE.
Full Load or Init load extracts data from Setup tables, here if you are extracting data from setup tables ? did you fill the setup tables now or not after deleting the existing data of the setup tables?
are you getting same values when compare to R/3 and BW data for some document numbers?

Transfer Price & Material Ledger

We have to have transfer pricing for profit centres. Eventhough we have only legal valuation in our case, Material Ledger activation is mandatory otherwise system does not permit us to activate transfer pricing. Hence, we have decided to activate ML eventhough we dont want it in our case.
Hence we will activate it and we will not perform anyother activity with respect to the Material ledger.
Will this be OK ? Will it affect any other transactions in our case ? Please offer your inputs.

I am very happy to see that lot of deliberations happened from your side.
To be more precise, let me put our scenario as follows:
- We have only one valuation viz. legal valuation (no multiple valuations)
- We want to use Transfer Pricing
- Without Material ledger, system is not allowing to activate transfer pricing.
We wrote to SAP quoting our situation but I think even after 2-3 rounds of interactions, SAP did not understand our situation that we require only one valuation and activate the transfer pricing. They sent us some notes all of which explains about multiple valuations, material ledger and transfer pricing. That is why I have raised this issue here.
Now, the options you have suggested is to use a customized program or activate ML without actual costing.
Yes, we do not want to have actual costing and have informed our client that ML only will just be activated for the sake of TP, wihout any further utilization of its functionalities.
One more pont, regarding settings done, I have not done any settings related to SPRO actual costings. Regarding the 9-11 settings as pointed out by Sarada, I noted that:
9 Assign Material Update Structure to a Valuation Area OMX8 : Settings are done there with std materiial upd structure. (Is this relating to Actual costing ? Pl. tell me).
10 Activate Actual Cost Component Split SPRO : Not activated.
11 Activate Distribution of Usage Variances : Not done anything.

Transfer Price capturing through material ledger

Hi
Would like to know how can we capture Transfer price mechanism through Material ledger.And what should be taken care of while activating material ledger.
regards

Hi,
Transfer pricing is taken care using Speicial procurement key as similar as Product cost planning.
The very important activities involved with ML while implementing are:
1. Conversion from pricing control V to S, if we dicide to go with S for rawmaterial.
2. Month end activities. This has to be done with out miss. Other wise, there will be a problem in closing the past period.
Vijay

Material Ledger Actual costing - fully costed BOMs and variance type split

We are in the process of activating material ledger and have 2 user
requirements that we have not yet been able to complete. First, the
difference between standard cost and weighted average cost needs to be
split between the variance types (raw material purchase price, raw
material usage, packaging price, packaging usage, etc.). Secondly we
need a fully exploded cost itemization that supports the weighted
average cost, similar to the costing structure pane in transaction
ck13n.
Do you know of any custom developement that might assist us in these
requirements, or have any information that might help us develop a
process to calculate these values ourselves.
Thanks

We are in the process of activating material ledger and have 2 user
requirements that we have not yet been able to complete. First, the
difference between standard cost and weighted average cost needs to be
split between the variance types (raw material purchase price, raw
material usage, packaging price, packaging usage, etc.). Secondly we
need a fully exploded cost itemization that supports the weighted
average cost, similar to the costing structure pane in transaction
ck13n.
Do you know of any custom developement that might assist us in these
requirements, or have any information that might help us develop a
process to calculate these values ourselves.
Thanks

Difference between Material Master and Material ledger

Can anyone tell me the difference if any between Material Master and Material ledger and its usage and interlink with SAP modules.
Thanks for your time
suresh arya

Hi Suresh,
The application component Actual Costing/Material Ledger fulfills two basic objectives: The ability to carry material prices in multiple currencies/valuations, and actual costing.
The material master records are all information your company needs to manage a material is stored in a data record in the material aster, sorted by various different criteria.
For more information regarding the functionality, you can see in path below, help SAP...
Material Master data:
http://help.sap.com/saphelp_47x200/helpdata/en/03/abb8f85fbe11d396a600a0c930e0da/frameset.htm....
Material ledger:
http://help.sap.com/saphelp_47x200/helpdata/en/a2/5cd63835e211d38a710000e83234f3/frameset.htm..
Regards,
Paulo

Material ledger production start up

Dear expert,
we are working on a project that has two main objectives:
1) now the customer is using the mtv 103/105 and we want to move to the 101
2) now the customer is using a custom 'medium price calculation' and we have to activate the material ledger.
I red the note 596558 and I have some question; first at all I would like to find some documentation about this activity and the effects of a Material ledger production startup, could someone tell me we can I find info ?
The question are
At point f) is wrote
u201CYou should always transfer purchase orders and purchase order histories before activating the material ledger. This ensures that the system translates the purchase order history in all additional currencies.u201D
What does it means? Why it is necessary translate? How?
If a company has only the local currency is it necessary the translation?
At point j) is wrote
u201CWe recommend that you close open orders before activating the material ledger and recreate them after the activation if required.u201D
WHY?
The posting logic for postings that reference a purchase order is changed in the parallel currencies due to the activation of the material ledger. As a result, there may be unexpected price postings and exchange rate difference postings for purchase orders that are not closed in business transactions (goods movements and invoices) that are posted later.
Which unexpected postings? Refers to new u2018Transactionu2019 (e.g. BSX, WRX, PRD, KDM, u2026) used after the material ledger start up?
Now the customer is using a custom u2018medium price calculationu2019; we think to reverse all movements in the year (103, 105, invoices) for order item not closed and recreate the goods movement with the new model (101, invoices) after the ML activation.
Thanks in advance.

In our case CKMSTART was definately done before Inventory load. This Tcode was part of config prior to Master data creation and migrated data loads....

Material Ledger

Hi Experts,
I have activated Material Ledger and Actual Costing. After that I tried to do the “Production Startup of Mat. Ledger” (Set Valuation Areas as Productive – CKMSTART) I am getting below error.
Cost component structure for period 007 / 2014 in plant XXXX not found
Message no. MLCCS003
Diagnosis
No cost component structure was found in valuation 2 for period 007 / 2014 in plant XXXX.
I checked the Cost component structure and observed that Cost Component Structure is active and assigned to Plant via Company Code.
I ran the transaction “Display of ML-Relevant Customizing settings – CKM9”. I noticed that it is mentioned that “Currency and Valuation profile” is not active. I have created the Currency and Valuation profile TP01 and have assigned the Currency type 30 and 10 to it.
Please suggest.
Thanks and Regards,
Sudhir Harale

Hi Experts,
I deselected the "Actual Cost Component Split Active" check box and observed that “Production Startup of Mat. Ledger (CKMSTART)” is getting executed without error.
But I don’t know the impact of deactivating the "Actual Cost Component Split Active".
Please give your valuable advice.
Thanks for help.
Regards,
Sudhir Harale

Activation Material Ledger with material working in price control "V"

Hi experts!
I have activated Material Ledger and I have a question about this..
1) Before the activation, I have for example a material with the next values in the "Accounting 1" tab:
Total stock = 7 UNI
Price Control = V
Moving price = 166 USD
Standard price = 166 USD
Total value = 1.162 USD (7 UNI*166 USD)
2) And after the Material Ledger activation, In the same material appears the next values in the "Accounting 1" tab.
Total stock = 7 UNI
Price Control = V
Standar price = 166 USD
Per.Unit price = 23,71 USD
Inventory value = 166 USD
I don´t understand if my total value before activation was 1.162 USD, when I have activated ML, the new value is 166 USD.
I dont´t understand why the value for the "Per.Unit price" is 23,71USD and not is 166 USD because this is the original value before ML activation..
I think that my inventory value must be the same before Material Ledger activation, (1.162 USD)???
Best Regards
Manuel

Hi Shaubhikg:
At first, thanks for your response.
I have founded another material wich has the next information before the material ledger activation:
In the Accounting 1 tab:
Price control: V
Moving price: 1.265,80 USD
Total stock: 5 UNI
Standard price: 553,00 USD
Total value: 6.329,00 USD
After the material Ledger production start up, the same material has the next information in USD:
Standard price: 553,00 USD
Per.unit price: 1.265,80 USD
Price control: V
Inventory value: 6.329,00 USD
In this case the total value of the stock is the same after and before to do the activation of ML. I think that this is good..
And can,t understand the example wich I saw you before.. In that case the Total value of the stock after activation Material Ledger is not the same that before activation..
The material doesn´t have any modification in his unit of measure..
Could you tell me someting about this issue??
Best regards!!
Manuel

Questions on material ledger

Dear All,
i want to activate material ledger in a company code, but i have some concerns that maybe some of you could give me the best suggestion.
1. is it possible to activate Material Ledger in the middle of SAP operation (i mean in the previous years, we didn't activate the Mat Ledger, just by now we have the idea to activate it)
2. what are the impacts by activating Material ledger, and some concerns that maybe exist in activating it?
3. is there any recommended link that gives the steps for activating it? i got some resources, but apparently the steps don't apply to my system, especially the step when I want to set the valuation area as productive (FYI, my SAP version is 4.7)
Many many thanks!
Nasikhin

you may check below notes, hope it can helps:
Note 596558 - Material ledger production startup
After activate material ledger, you need to start up the ML using tcode : CKMSTART , then check using CKM9 for detail.

Material ledger and transfer pricing

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