Material Ledger Conversion in a Parallel Valuation Scenario
Hi All,
I'm working in a scenario where the Material Ledger is already active (without multiple currencies - in other words, with the local currency).
We would like to activate parallel valuation introducing a new currency type (group currency).
We have already read SAP Note 120380 - "Subsequent activation of multiple valuation approaches" where the preservation of ML historical data would involve a SAP intervention.
It is not clear which kind of activities SAP should do in order to preserve ML historical data, i.e. which kind of data should be involved in a potential ML conversion data process.
Any help will be GREATLY appreciated.
Regards, ALDO26X1
Hi Udo,
first of all thanks very much for your answer.
As described in the note 120380 we are in the following scenario:
The ML is already active (without multiple currencies - in other words, with the local currency)
B) You now require historical data: In this scenario, you must set a new currency key in the ML tables. The fields are filled as start
values with the posted transaction data in local currency (depending on the currency, either transferred or translated). This procedure is
very complicated and can be carried out on a project basis only. Contact SAP if you want to do this.
Unfortunately it is not clear which kind of impacts this procedure would have on the actual data and which are the new values introduced (only stock values in the new group currency for MM periods?).
Thanks for you cooperation.
Kind regards, ALDO26X1
Similar Messages
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Material ledger is not active in valuation area C002
Dear All,
I have a Scheduling Agreement for a material 'A' with Vendor 'V' with diff prices with validity dates, I did the GR & when i am posting the invoice thro' miro, system is throwing error as above Material ledger is not active in valuation area C002 Why should I activate the material ledger here ? Pls suggest how can i solve this ?
regds,
KalluHi
For a Particular material, Material Ledger is active or not? Can be checked in Accountig view of Material Master.
Why we need Material Ledger?
A fundamental task of the material ledger is carrying inventories in multiple currencies and/or
valuations.
Material inventory values are normally carried by the SAP system in one currency. The material
ledger component enables the R/3 System to carry inventory values in two additional
currencies/valuations. Therefore, all goods movements in the material ledger are performed in up
to 3 currencies or valuations. Currency amounts are translated into foreign currencies at
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countries can therefore carry their inventories in a more stable currency (such as US
dollars). This reveals inflationary effects on inventory values.
If you use transfer prices to represent value flows in your company in different
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Before activating the material ledger, make sure you know which currencies and valuations
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Material ledger is not active in valuation area S001
Dear All,
I have created a Scheduling Agreement & did the GR. When I am doing invoice posting system is throwing error as Material ledger is not active in valuation area S001
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regds,
CBHi,
Please check your Material Ledger Activation setting for the Valuation AreaC002 in T-code OMX1. The Check box for the ML activation against the Valuation Area-S001 may be ticked. After activation/ticking this box, T-code CKMSTART was not executed to complete the ML activation. If you want the activation of Material Ledger, you have to run T-code CKMSTART to complete this ML activation or Otherwise uncheck this box. I hope this step will resolve your issue.
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SO I went to OMX1 and I beleive that a while back there was a change to do company code valuation , which got changes to plant valuation ,so this is what I see in the screen:
Valuation area = 0001
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and there is this one records which shows :
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Setting Material Ledger to Productive
All,
How do I set the material ledger to productive for a given plant ?
The accounts are all setup and everything is fine in transaction OMX1
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However in transaction CKM9 the material ledger is not yet productive.
How do I make it productive ?
Thanks,
MarkDear Mark,
After installing the Material Ledger it is necessary to run a transaction to define the Material Ledger as productive for a valuation area.
Note: Once defined as productive, the material ledger cannot be deactivated. This procedure must be executed only when there are no material movements for the period. Also, if there are material master data for production related materials (material types ROH, HALB and FERT) already in the system they must have a standard price registered .
Prerequisites:
To install the Material Ledger/WIP functions is also necessary that the extension EA-FIN (Financials Extension) has been activated. To check if this extension is active use the following path: IMG > SAP Customizing Implementation Guide > Activation Switch for SAP R/3 Enterprise Extension Set
1. Access the activity using one of the following navigation options:
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or Transaction CKMSTART
2. Run the transaction CKMSTART for all valuation areas.
Reward points if it helps.
Regards,
Naveen. -
Hi co experts,
Kindly explain the material ledger concept in product costing
Regards
venkataswamyHi
Material Ledger Overview
You want to perform actual costing for materials.
You want to carry your material stock in multiple currencies.
You want to valuate your material stock each posting period.
You are active as a corporate group in several countries and you use multiple valuations.
Actual Costing uses the Material Ledger to store material prices in up to three currencies and according to three valuation strategies (group, legal and profit center).
Actual Costing aims to provide the actual costs for each material at period close. Each material movement is recorded in the Material Ledger together with the preliminary valuation and any variance (from invoice or order settlement). Material settlement is used to integrate this variance into the material price at period close.
Both single -level and multi-level material settlement are available. Multi-level settlement is used to reconstruct the quantity structure based on the material movements for the period, and assign variances for the raw materials to the finished and semi-finished products as follow-up costs.
The actual price for each material can be updated to the material master for the closed period.
Regards -
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
ThanksIf 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 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,
GregHi 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 price changes in parallel valuation
Hi experts,
i have an issue with Material Ledger. in our client organisation, ML is active and there are materials with price determination indicator set to 3 and with price control indicator 'S' in the material masters.
However over a period of time, the parallel valuation for most materials display different values. it is essentially due to lack of knowledge on the part of users and indiscrete use of CKMM for change of price control indicator from 3 to 2 and vice versa.
Now the business is serious to correct this situation. My questions in this regard are;
a. what is the best source (table name) from down loading the material prices in different valuation views for a given period
b. what precautions should we need to take to make changes (manual changes or mark and release of standard cost estimates) for these materials for all the valuation views to the prices ( i have gone through the SAP note 190707.
c. what will be implications of making such changes on the financial balances of the organisation.
Please give me a comprehensive picture of these aspects as monetary value at stake is quite significant for the client.
Regards,
Raoa. Use CKMLHD & CKMLCR
b. Make Price Determination Binding in OMX1, once you are done with your changes in CKMM
c. CKMM program tells you whats the financial impact...still you want to play safe...get a copy of production and try it out to see the impact -
3 valuations in Material ledger
Hi,
My client's requirement is as follows:
1) Legal valuation has to be in Local currency but on Actual Costing
2) Profit Center Valuation in Local currency but on standard costing - same as Group valuation
3) Group Valuation in Group currency in standard costing - Group valuation
Is this possible when, Actual costing Material ledger implemented?
I imagin, Legal valuation field in Material Master will be updated by periodic unit price when we run CKMLCP. Then Profit center valuation field in the Material Master will be updated when we run CK40N in standard costing PC valuation costing run. Then again we will run ck40n in standard costing for Group valuation to update Group valuation in Material Master.
If my client opts to run ck40n for legal valuation, then he should also be able to mark and release standard cost new price, in Legal valuation field of material master and actual costing will not release standard price for new period.
The requirement is typically complicated, as my client wants to maintain his Global template, though one country comes under actual costing requirement.
I would like to dig out answers from real time experience please.
Cheers,
AshokI can give you some information but not everything. I have gone through the deployment of material ledger using 3 valuations, but not the ones you are using. We used Local, Group and Group at Group. All 3 are at actual costing. What this means is that the local currency is the currency in the country where the plant exists. The group valuation is a straight conversion to US dollars from the local currency based on the currency conversion tables M and P rates. Note that both of these first two currencies can include intercompany profit if reflected on the transferring sales order between companies. The Group at Group is the US dollar conversion without the intercompany profit. We find this works for our business.
The other thing about material ledger is that you need to have a standard cost estimate so that material ledger can keep track of the cos component structure. The way it works is as follows:
Say the standard estimate shows labor=$100, materials=$200 and overhead=$300 for a total cost of $600. All transactions in the month using this material use the $600 standard. Now, when material ledger is run at month end, the PUP (periodc unit price) is calculated and let us assume the PUP values are labor=$150, materials=$250, overhead=$350 for a total PUP of $750. Material ledger already has tables with the details of the standard components against every transaction. Now it will apply the remaining adjustments totalling $150 to the proper cost components for COPA purposes. This is pushed to COPA using transaction KE27. Think of it like this...Actual cost is equal to standard ($600) plus/minus variances ($150).
Therefore, you always should have a standard cost estimate when using material ledger. At least that is my usage and understanding. I hope I provided useful information for you in some way.
David -
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
SaberaHi 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 -
Alternative valuation run methodolgy for material ledger
Hi Experts
Does someone can explain me how to customize alternative valuation run in SAP and how to use it.
Do I have to run it from CKMLCPAVR or from CKMLCP.
Can I run for same plant and same period the AVR in CKMLCP ?
On the screen of CKMLCPAVR I don't have nothing in Creat Cost estimate ??
THanks and regards
DjamelHi Djamel ,
1. Purpose of Material Ledger Run (CKMLCP) is to calculate actual cost of the product .. and you can update material master with actual cost ( optional step).SAP uses weighted average methord when calculating actual cost.
2. Purpose of Alternate Valuation Run (CKMLCPAVR) is to have a actual cost for analysis purpose . You can use weighted average methord or use can use FIFO , LIFO valuation methord also . Ifd you want to use LIFO/FIFO methord .. you have to configure LIFO/FIFO customization and use the standard BADI give in the SPRO menu .
3. CKMLCP and CKMLCPAVR have no depencies and you can run that for same plant .. or you can run anyone of them . Both the purposes are different .
4. On the screen of CKMLCPAVR I don't have nothing in Creat Cost estimate ?? Implement SAP Note 659447 - No process steps in AVR cockpit ... it will solve your issues .
5. For CKMLCP.. OBYC settings are as per transaction key "BSX" ... OSS Note : 908737 - Post Closing in Material Ledger
6. CKMLCPAVR -- OBYC settings are as per transaction key "BSD " .. as if required manual entry has to be done to have actual costs . So , inventory account must have manual updation tick in GL master
7. To sum -up... OBYC settings you have to do for CKMLCPAVR and any valuation approach you use other than default SAP weighted avergae methord ( LIFO or FIFO)
Hope it clarifies ... Do revert bac for any further clarifications..
Regards
Sarada -
Is it possible to have 2 or more standard prices for a single material e.g. one price for imported material and one for in-house produced material. If it is possible then what will be the effect of this when material ledger is activated?
Hi,
Yes we can use more than one standard price for a single material by using split valuation.
You can use split valuation with Material Ledger:
Assume that two valuation types are required.
Valuation Type-1 for imported material
Valuation Type-2 for in-house produced material
Material master price control =S for Valuation Type-1,
Material master price control =S for Valuation Type-2,
Material master price control =V without valuation type (header level).
Price determination indicator = 3 for header as well as each valuation type.
Good receipts and Goods Issue will happen for each valuation type.
At month end after Actual Costing Run. the material valuation will happen:
Header level (weighted MAV of both the valuation types)
For Val type-1(weighted MAV of this valuation type only)
For Val type-2(weighted MAV of this valuation type only)
Price variances of valuation type will be carry forward to next level, if this product is consumed at next level.
You can find the Actual costs at each valuation type level in MM03 or CKM3 or CKM3N.
Hope the above example provides some inputs to you.
Please check and confirm.
Thanks and Regards
Binoj M D -
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
ANGKSHello 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
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