Actual cost component values

Question

Hi
We are facing an issue that actual cost component values in our system are not calculating correctly. We consider that there might be difference in our understanding regarding the calculation of actual cost component values.
Therefore I want to understand that how actual cost component values are calculated in SAP Material Ledger. I will appreciate if anyone can elaborate this with example and formula, used for calculation.
Regards

Answer 1

Hi Saad,
Please find below about the actual cost calculation in ML.
In ML single -level and multi-level material settlements are available. Multilevel price determination calculates the periodic unit price for a material. The standard price, the single-level differences cumulated in the period, the differences between planned and actual prices, as well as input material differences (multilevel differences) are all taken into account.
The material price calculated in multilevel price determination can be used for inventory valuation.
The actual price for each material can be updated to the material master for the closed period.
-During price determination, the system carries out the following calculation: 
=>Daily Transaction
1) Purchasing XYZ Qty 20 Std : 10, Actual : 11
   Dr) Stock XYZ 200                   CR) GRIR 220
Purchase price differ XYZ 20
2) Purchasing ZYX Qty 20 Std : 20, Actual : 22
   DR) Stock ZYX 400                   CR) GRIR 440
Purchase price differ ZYX 40
3) Good issue XYZ Qty 15 Std : 10
   DR) Material cost XYZ 150               CR) Stock XYZ 150
4) Good issue ZYX Qty 15 Std : 20
   DR) Material cost  ZYX 300               CR) Stock ZYX 300
5) Good receipt  234 Qty 15  Std : 40
  DR) Stock 234 600                    CR) Clearing 600
6) Good delivery 234 Qty 10  Std : 40
   DR) Material cost  234 400         CR) Stock 234 400
7) Good receipt  123 Qty 10 Std : 50
    DR) Stock123 500                    CR) Clearing 500
8) Good issue  123 Qty 5 Std : 50
   DR) Material cost  123 250         CR) Stock 123 250
9) Good receipt  ABC Qty 10 Std : 60
    DR) StockABC 600                    CR) Clearing 600
10) Sold ABC Qty 5 Std 60
    DR) COGS 300                          CR) Stock ABC 300
=> Monthly Material Ledger Closing
1) Single-level price determination
   DR) Stock XYZ  5 ( Current Stock 5 / Total Purchase Qty 20 *  price difference 20) 
   CR) Purchase price differ XYZ 20
*Transfer price difference to 234  15 ( Good issue  qty 15 / Total Purchase Qty 20 *  price difference 20)
    DR) Stock ZYX  10 ( Current Stock 5 / Total Purchase Qty 20 *  price difference 40) 
    CR) Purchase price differ ZYX 40
*Transfer price difference to 234  30 ( Good issue  qty 15 / Total Purchase Qty 20 *  price difference 40)
2) Multi-level price determination
    DR) Stock234  5 ( Current Stock 5 / Total Good receipt 15 *  price difference 15) 
    CR) Transfer price difference to 234 from XYZ  15
*Transfer price difference to 123 from 234  10 ( Good issue  qty 10 / Total Good receipt 15
       * price difference 15)
    DR) Stock  234 10 ( Current Stock 5 / Total Good receipt 15 *  price difference 30) 
    CR) Transfer price difference to 234 from ZYX 30
*Transfer price difference to 123 from 234 20
        ( Good issue  qty 10 / Total Good receipt 15 *  price difference 30)
    DR) Stock 123 15  ( Current Stock 5 / Total Good receipt 10 *  price difference 30) 
    CR) Transfer price difference to 123 from 234 30
* Transfer price difference to ABC from 123 15
            ( Good issue  qty 5 / Total Good receipt 10 *  price difference 30)
    DR) Stock  ABC 7.5 ( Current Stock 5 / Total Good receipt 10 *  price difference 15) 
    CR) Transfer price difference to ABC from 123 15
*Not allocated price difference 7.5
            ( Sold qty 5 / Total Good receipt 10 * price difference 15)
3) consumption revaluation
         DR) COGS ABC 7.5                     
         CR) Not allocated price difference 7.5
=> Current Actual Stock Amount
   1) XYZ Qty : 5 Actual Amount : 55 (actual price : 11)
   2) ZYX Qty : 5 Actual Amount : 110 (actual price : 22)
   3) 234 Qty : 5 Actual Amount : 215 (actual price : 43)
   4) 123 Qty : 5 Actual Amount : 265 (actual price : 53)
   5) ABC Qty : 5 Actual Amount : 307.5 (actual price : 61.5)
I hope you understand the process of actual cost cal in ML.
Regards,
chandu.