Integration of material ledger with FM

Hi everybody.
We have activated FM and ML. When executed CKMLCP ,we got message FI640 Funds center _/_ does not exist, we correct it creating a funds center hierarchy, however, I was reviewing the FI documents and I found that ML documents only use the first fund center of the hierarchy, I thought that automatically it will use the same fund center of original post, but I saw that it does not happend.
We have to chage customizing in FMDERIVE or we have to do something else in FM customizing?
Thanks.

Hi Oscar. Im afraid i could t fully help,I also don't know to much abut FM, just analyze the derivation process (if you plan to work with FM, its a good idea cos FM sometimes is a headache). If you want to analyze a specific case you can do the following
1. Activate the trace (666322 - Derivation tool in the FM: Trace function)
2. do the close for just 1 material in CKMI. Here, you see the trace and can identify the rule that trigger this stuff. I guess this give you an Idea.
Additional ideas:
+ I think COGS accounts and ML Accounts (pry, prv, prd, COC, kdm, UMB, ) must not be relevant to FM (you dont control budget for this stuff, its not logical). Maybe one of our friends could give us un Idea:
Ajay Maheshwari SAP Trainer I want to know if we can define a specific account be not relevant to FM? In resume, ML close trigger some account post that must not control budget, but if they are asking for a Fund or doing derivations, is because there is a config that trigger this stuff. I really appreciate if you clarify this idea.
Also, Oscar say this stuff looks related with CO-PA, i mean the FM post is trigger if the account post to PA.
+ Oscar, if you don't want to worry create a derivation for this accounts and set a dummy fund center (i dont like this solution)
Wish someone clarify your question Oscar, Im also interested!
Arturo.

Similar Messages

Material Ledger with Split Valuation Type 'X' with FIFO

Hi,
The requirement from the customer is to have Raw Material, Intermediary and Finished Products valued at Actuals and on a FIFO basis. According to me, this is possible only if we activate Material Ledger, have batch split valuation u2018Xu2019 as the valuation type and have a batch search strategy which does a FIFO. Are there any technical issues with this solution? Or is there a better solution? Is any organisation ever using this solution for a similar requirement? As an extension of this requirement, how does commodity trading companies running in SAP handle their inventory and COGS valuation?
Thanks and Regards
Shivram.

Hi,
Using Material Ledger with batch management and split valuation of each batch ("X") leads to most aaccurate FIFO valuation result, however, depending on how many material and batch the customer has, huge number of materials will be processed and it will affect the performance issues. You should check the number and expected period-end time frame scheduling at least.
Financial responsible tell you to need this kind of solution (detailed FIFO calculation)?
They usualy needs to get simple FIFO valuation, meaning they don't care each individual logistic material movement as FIFO, but only care of periodic FIFO. I know, it depends on Finacial responsibes or their auditors, so it's also not general.
Please double-check the new FIFO valuation function for Material Ledger with using Periodic Closing and AVR. Some information is in SAP Note 1431829 and 1247053. Related transactions are there, CKLMBB_xxxx under Actual Costing/Material Ledger -> Balance Sheet Valuation Procedures. I couldn't find any official documents for Material Ledger + FIFO valuation (like Release Notes).
Hope this will be an additional option to yours.
Best regards, Takashi

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

FIFO Valuation with Material Ledger !

Hi,
How do we accomplish FIFO Valuation using Material Ledger ?
We have activated the Material Ledger, with Single - Level Determination; Standard Price S. On execution of Single-Level Price Determination, we get the Periodic Unit Price -- which is the Weighted Average Price for the Receipts for the period involved.
I came across SAP Forums, which claim that Material Ledger is the FIFO Valuation on real-time basis. However, this doesn't seem to be true. The Goods Issued are assigned the Periodic Unit Price (calculated above -- i.e the Weighted Average Price ).
In addition, we have Configured the FIFO Balance Sheet Valuation Procedure, through the MM menu. The FIFO Value for the Material is giving weird results. Adding the total Inventory for all the Receipts till date and over-riding the period selection for Single Receipts. For monthly receipts, the system just gives the Weighted Average Price again.
The Business is expecting the FIFO valution for the Inventory Balance on Monthly Basis. ( We are using Material Ledger, so that we can roll-up this FIFO Valuation of the Raw Material ito Gross up into the Finished Product
-- Thanks

Hi Kenny ,
BASIC STEPS THAT CAN BE FOLLOWED FOR ENDING INVENTORY VALUATION :
Ending Inventory is valued as per FIFO calculated through following steps:
     Run the price calculation (Txn: KSII) u2013 check that all      auxiliary Cost centers are zero
     Run Txn:MRF3 (summarization of documents for the      FIFO calculation.)
     Run MRF1 (calculation of FIFO)
     Check if the FIFO calc. is correct via MR35
After ML run the ending inventory value should be equal to the value in MR35 and so balance amount not yet loaded to ending inventory through FIFO valuation is posted to consumption
Exception: If total receipts for a period is less than ending inventory quantity .In this case the EI is valued at weighted average
Please check wether the steps have been properly followed and the execption doesnot exists..
Also, hope your Price Determination is "3" and price control is "S" in Material Master..
Regards
Sarada

Implemanting Material ledger

Regarding material ledger
Dear FI guys,
I have a issue on material ledger. We are going for a upgrade from 4.6 C to ECC 6.0 that time client asking us to go with material ledger implementation also is there any impact with this up on upgrade and can you help me where and all integration will come in the material ledger Could you please give me any docs on material ledger please.
Thanks & Regards
Mastan Rao

Dear Mastan rao,
Material ledger data is valuation and control data for a material (with a particular valuation type, if applicable) in a plant for a particular posting period. Material ledger data also contains data for movements that are relevant to the valuation of the material. This data is collected in the material ledger as it is entered in the system.
Use: Material ledger data forms the basis of actual costing and is used to manage valuation prices in multiple currencies and valuations. Consequently, material ledger data supplements the material master record. In addition, material ledger data can refer to materials that are part of sales order stock and project stock.
Structure: The most important information in material ledger data is:
Valuation price, inventory quantity, and inventory value in up to three currencies and/or valuations
Indicator for price determination (as in the material master record)
Control of the valuation prices (as in the material master record)
Period status of the material
Integration: Using material ledger data, the system collects information on material movements (such as goods receipts and invoice receipts) in each period at historical exchange rates. This data is used during material price determination to calculate new valuation prices for the material. Then, the material stock account is reconciled in multiple currencies with the accounts in Financial Accounting.
If the material ledger is active for a particular plant (and consequently for all materials in that plant), material ledger data is automatically created upon the creation of the material master record or upon production startup. You can see whether the material ledger is active by looking in the accounting view of the material master record.
As per my experience Implementing material ledger along with upgrade should not have any impact on upgrade activity but it is recommended that u treat these two as two individual project. If you are using some tools like solution manager etc u should ideally create two different projects in Solman. one of them should be of implementation type for material ledger while the other one should be an upgrade project. u can further choose ur raodmap etc accordingly and move ahead.
Hope this helps.
Rgds
Manish

Parallel currency in company code require material ledger activation

Hello,
I have a requirement where the company is using parallel currency in NEWGL concept with two different currencies INR and USD.
I want to have a clarification whether I Need to activate Material ledger with parallel currency.
1. Company is using parallel currency with only one legal valuation view.
2. There is no requirement for product costing in the company.
Can the balance in general ledger can be seen in both currency for inventory balances.
Awaiting for your inputs
Thanks

If you don't need parallel currency at present, there's no need to configure it. Why should that be a problem, as long as your Business needs are not relevant to using a parallel currency?
I suspect your actual query is details regarding the future problems that you might face when, faced by changed Business scenarios, you are forced to introduce parallel currency at a future date
If my suspicion is correct, I suggest you look at SAP Note 39919. It's an old note - but one that I've found contains quite relevant tips and tricks about introducing parallel currency in a productive environment.
Remember to assign points if found useful.
Regards,
Gulshan

Material Ledger config

Hi,
I need to activated material ledger with different exchange rates. I never done any material ledger config. Can anyone help me regarding the configuration steps from material ledger with different exchange rates.
Any input would be appreciated.
Thanks,
Lea

Hello
Must :Activate Valuation Areas for Material
> Ledger
yes
> Assign Currency Types to Material Ledger Type
yes, just check 'use currencies from FI'
> Assign Material Ledger Types to Valuation Area
yes, but by default 000 is already assigned and you can leave that
> Maintain Number Ranges for Material Ledger Documents
you can omit and work with the default settings
> Assign Material Update Structure to a Valuation Area
not necessary
> Not required/not activating:
> Configure Dynamic Price Changes
> Define Movement Type Groups of Material Ledger
> Assign Movement Type Groups of Material Ledger
> Activate Actual Costing
> Activate Actual Cost Component Split
Regards

Valuation area not yet productive with material ledger

While doing goods receipt at MB1C,i got the below error:
The description of the error is given below
Valuation area XXX2 not yet productive with material ledger
Message no. C+020
Diagnosis
The material ledger has been activated for the valuation area but material data has not yet been converted in this valuation area.
Procedure for System Administration
If you want to work with the material ledger, choose Accounting -> Controlling -> Actual Costing/Material Ledger -> Utilities -> Production Startup.
There you can convert the data for the material ledger by following the instructions in the online documentation.
Note
Setting the material ledger to productive cannot be undone.
See also:
Actual Costing/Material Ledger in the SAP Library.
The implementation guide for Actual Costing/Material Ledger.
Can you kindly suggest me how to fix this error.
Regards
Sabera

Hi Sabera,
The Valuation Area is not activated for your material ledger. Go to SAP Access>>Accounting>>Controlling>>product cost controlling>>Actual Costing>>environment>>Production Start up>>Set Valuation area as productive.
If you already activated Valution area in to Productive Statge.
Then go to T.Code OMX1 and for your valuation area XXX2 tick the ML activation box.
the error wont come
regards
srikanth

Issue with Standard Cost estimates / Material Ledger

Background:
We have been using SAP for the last 5 years with Material Ledger active. Due to a number of reasons, we have not revised its standard cost estimates from 2001 till now. This means that at month end, we do not mark and release prices as recommended, nor do we mark prices and use dynamic release.
What Happened:
A new material called PFSW3 was made. This is a FERT. Before production
could start my team released the standard cost estimate for this material. Production was now able to proceed without problem. Then, when the time came to sell the material (VF02), SAP again raised the error 'cost estimate not found'. On checking the standard price in MM03, we discovered that the future cost estimate was missing. So we created and marked a new cost estimate in the middle of February 2007.
Problem:
When the first sale took place, SAP released the marked cost estimate and posted a Price Change document to adjust for the new standard cost. I understand this was due to dynamic release. Now, when month end came, the system settled all the production orders of material PFSW3 but did not do multi level costing on it.
Internal Investigation:
My team has determined that the material PFSW3 has price determination 2 set by mistake. All our other production materials (HALB and FERT) are
set to price determination 3 in the material master (accounting view).
Questions:
To sum this situation up,
we need to know why the material PFSW3 was not marked closed in its period status (CKM3) at the time of closing through CKMLCP?
What are the implications of not closing this material in Feb 2007 (current period status is showing 'Quantities and values entered')?
How can we close this material this month?
The future cost estimate is again missing for PFSW3 in March 2007 and I
fear we are going to face more problems as this material is sold to customers.
Please respond this is an urgent issue.

Dear Shumyl,
Please, have a look at Note 645083 - Material period status set to "Closing Entry Completed" that might help to closing your material in previous period.
Hope it will be useful.
Regards,
Flaviano.

Material Ledger Functionality with Non Valuated Sales Order Stock

We are in the process of setting up Make To Order (MTO) with Non Valuated Sales Order Stock. We currently use the Material Ledger in our other businesses that use Process Orders.
Does the Material Ledger functionality support MTO with Non Valuated Sales Order Stock? I have been testing this and have not yet figured out how to get ML postings. We are using production orders that settle to sales orders. We do not bring this into inventory, the costs reside on the sales order.
If this functionality does exist, I would assume I need to configure the Material Update Structure but I cannot find any documentation on this.
Any help would be appreciated.
Regards,
Greg

Hi Greg,
no, material ledger will not be able to calculate and allocate actual costs for the sales order in the scenario you describe. It would of course, if you used the valuated sales order stock.
Generally SAP sees in the valuated sales order stocks (avaliable since 3,1 or something) a great improvement and no real reason to use still the non-valuated scenario.
best regards,
Udo

Material Ledger Question with "Individual PO" process

Hello All,
I have a material ledger question related to the individual PO process in SAP where a Sales Order is Created, which automatically generates a Req/PO. The materials from the Req/PO are received into the plant for which the Req/PO was created, and the Stock type of this material becomes Sales Order Stock. Then a outbound delivery is created to issue the goods to the customer on the original sales order that started this whole process.
The issue is that the material ledger is not reflecting the goods receipt at the time we do the goods receipt against the PO, as it does with all other goods receipts. It will only be reflected once the outbound delivery to the sales order is created. Therfore the general ledger and the material ledger subsidary are not in balance. This will not be a problem as long as the sales delivery is created within a few hours as expected, but if the receipt and sales delivery crosses a month end, this will cause an issue. This would also be a problem for us at physical inventory.
Is this supposed to happen in this process? Is there a report to show where the outbound deliveries need to still be created for sales orders in this process that can be used for us at month end? Any help you could provide would be greatly appriciated. Thank you.

Interesting issue.
Just curious... I feel you have done this, but in CKM3, can you key in the Sales Order number in the field provided and then see what the result is? What does it show?
Cheers.

Revaluating COPA COGS with Material Ledger values (KE27-B0 curr type)

While attempting to use transaction KE27 to revaluate COPA with material ledger's cost component structure, we are getting an error for the B0 (Operating Concern Currency) records. The error (KE 435) states that "Costing Key ML1 does not exist". I have defined this costing key and it appears to be working for the Company Code (curr type 10) currency records. Does anyone have any idea why I am unable to restate the Operating Concern Currency records?

Hi Thomas,
The system posts the difference between the original values of the line
item and the new values in a new, separate line item, but in the same
value fields. To avoid the error message KE435 you have to define for
the costing key a value field for actual costs for your operating
concern in customizing :
Profitability Analysis -> Master Data -> Valuation ->
Set Up Valuation Using Material Cost Estimate ->
Define Access to Actual Costing/Material Ledger ->
Costing Key for actual Cost Estimate ->
Val.Fld Allocatn for Periodic Moving Average Price (total cost)
That is necessary even though you defined already value fields in
Cost component structure (cost component split) in customizing :
Profitability Analysis -> Master Data -> Valuation ->
Assign Value Fields (transaction KE4R)
The program expects both entries, one for cost component total cost
and several for cost component split. If there is a cost component
split defined for material the valuation will distribute the share of
costs to the value fields according the definition.
Only for material without a cost component split the program will
assign the costs to the value field for total costs.
Regards,
Abhisek

Error Message :Valuation area 1000 not yet productive with material ledger

Dear Floks,
I need some clarification to get rid of this error message and move further.
While saving the PGI I am facing the follwoing error message: "Valuation area 1000 not yet productive with material ledger----
The material ledger has been activated for the valuation area but
material data has not yet been converted in theis valuation area."
Plese respond with the solutions ASAP.
Thanks in advance.
Regards
ANGKS

Hello Padmaja,
You will to check the following before activation the Val.area
1) OMX1: Check if ML is active against the plant IF NOT
2) Use tcode CKMSTART - Enter Val area - EXECUTE.
Regards,
Manoj Reddy

Valuation area HDQF not yet productive with material ledger

Dear all,
When i PGI, there is an error: Valuation area HDQF not yet productive with material ledger.
Pls help me to resolved.
Thanks & Regards,

Hi Quang,
Please run CKMSTART tcode and give that plant no(HDQF). Execute the process and then click on Confirm button in the dialog box.
Hope this helps.
Rgds,
Antima

GR/IR account problem with material ledger

Hi,
I just found an issue as effect of material ledger implementation.
after the material ledger is active, when we post a transaction in foreign currency (invoice receipt), the LC 2 amount of GR/IR account is somehow different from the document amount, and the difference is transferred into Material price difference account that we maintain in OBYC - PRD transaction.
because of this, the LC2 amount of GR/IR account can't be cleared.
any suggestion, please?
thanks,
Nasikhin

hi,
It will affect your valuation for the document, which are still open..
You shd run this only after closing all documents and completing whole MM cycle..
Once this is run, you can't go back and make settlements...
So, beware...
Regards
Priyanka.P

Integration of material ledger with FM

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