Material ledger - Multilevel price determination

Hello,
When there are transfer postings from Sales order stock to free stock, system has calculated multilevel price differences during settlement.
This material is a externally procured material and does not have any BOM.
Can some one explain the scenario when will the system calculate this multilevel price differences for a material which is externally procured and which does not have any BOM.

U have to use specil procurement type in Material master data.
Further cost based issues refer cost estimate w/o Quantity structure.

Similar Messages

Multilevel price determination - Not completed

Hi,all
we ran the CKMLCP (Material Ledger) closing. The status of the material in CKM3 is shown as "Closing Entry Completed" but period status is "Multilevel price determ. Not completed"
Now I have questions:
1. whether I must account for this material in the sequence of the current month?
2. what consequences will be in next periods, whether material will be able to be accounted "Multilevel price determination Completed"
best regards
Artur

HI,
If you do not close this material in this month properly, you will not be allowed to close this material in the next month. System will throw the error to cloe properly for the privious month.
Vijay

Material ledger (ML) price analysis, LACCS & CKMLLA return err. CKMLLA001

Dear colleagues,
We're experiencing problems analysing actual cost component split on material level after Material Ledger closing and need some help.
OSS-note 872421 "Cost component split display for activity types" comes with two transactions for the purpose of analysing prices. But both transactions LACCS & CKMLLA don't work in our system, returning error message "Header not found: message № CKMLLA001" after trying to view ML prices (F5) or get Price report from LACCS as well as on Price report (F8) in CKMLLA.
There's no further info available on message CKMLLA001. Did anyone here happened to get this message? What could it mean, what should we check?
We need for analysing ML prices because the values in cost components split (according to CKM3, Itemization) differ greatly from what was expected on the basis of price analysis in Cost Center accounting (e.g. S_ALR_87013611).
OSS-note note 880217 "Cost component split and price do not match" is implemented in our system, as well as recommendations from the corresponding note 1090144 "Preventing rounding errors in prices" are taken into account. For activity prices number of significant digits is set to 10, "no optimization" not selected. Though we don't get any warnings # 204: "Split and price of cost elem./activity type &1/&2 not consistent" during multi-level price determination, the totals are close to equal in ML costing compared to CC costing.

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 Periodic Price

hello gurus,
we are activated the material ledger.when we run ckmlcp the perodic price become the standard price.but my client wants standard price only they wants perodic price only for statiscal purpose only
For ex:
std price 100
periodic price is 150
when we run the month end activities periodic price become the std price i.e 150
but our client wants std price 100 for all periods and periodic price only for information prupose
for this how can configure in the system
Regards,
Rihana

Dear Rihana,
You can change the Price determination control from '3' to '2'. For materials with 'price control' = 'S' and 'price determination
control' = '2' the periodic unit price (PUP or v-price) is for statistical purpose only. However, please note that 2S-materials will not be selected during period-end closing. Only 3S-materials will be handled in txn CKMLCP.
Kind Regards,
Antje

Material ledger Price determination change

For the FERT materials - we have material ledger active, price determination 2 and price control S setup as of now. We have the standard cost for the group and Moving average is calculated for information purposes - now we want the moving average to be periodic.
I changed the price determiation from 2 to 3 in ML activation but had no impact.
My questions are:
1. Should we do this at the material level - so that moving avg does not get updated for each transaction and instead by period.
2. what are the steps/tcodes to be taken before and after changing the price determination. I understand we need to run ckmlcp - but need clarity on all the steps I have to do both from config and master data perspective.
3. Test script steps

Hi!
A+ 1st point. Other decision is when you do MMPV.
B+ I think its better do MMPV on 01/may before do CKMM, so in point iii, you close of April. If you do CKMM with MMPV active period April, ML will be active for March and April. Again this is just a personal point of view.
C+ Well, the procedure is correct, Keep in mind the following: The system consider in your scenario S2 > S3 as Actual Cost of April the value in the standard at the moment of CKMM, so the flow:
> CKMM > Release Standard> At the release, system create a price diff (UMB), that is part of your actual cost (initial of may). The value is the diff of your previews and new standard.
In the ML Close of april, UMB of MAY will be cleared and converted in PRY/PRV. If you want details of this, check Standard Cost Release with ML Active.
Its important you validate it, because if the system dont select this materials, UMB $$ will be part of your P&L account.
In the ML close of May, this value will be consider part of the actual of May.
D+ What will happen if the run (iii) above after point (i ) will the ML revaluation will have impact on the material changes to 3S.
The ML close of april have impact if you post (GM, IR, Settlement) for this materials on April. If this materials are produced, its common that you do the settlement of its order the 1 or 2nd day of may with posting date of april, but as i toldyou is a common procedure.
E+ Just thinking, Its a good idea you do the ML close for this materials in April (status set to 70)
If for any reason your ML close dont select them there are some workaround eg check this oss 1602599 - Additional selection options for selection
PS1. Wish this give you more ideas. This topic is interesting and difficult to explain, because have some `depends on`. Again, i recomend you test in your QAS system!
PS2. This post maybe give you other ideas Material Ledger Activation - Lot of Questions in startup.
Arturo.

Tables used for material ledger

What are the standard tables used for material ledger

Hi,
All req. configuration i have defined in last thread...
The following tables contain data that can appear in the material ledger documents:
·        MLHD      Material Ledger Document: Header
·        MLIT Material Ledger Document: Items
·        MLPP      Material Ledger Document: Posting Periods and Quantities
·        MLPPF    Material Ledger Document: Field Groups (Posting Periods and Quantities)
·        MLCR      Material Ledger Document: Currencies and Values
·        MLCRF    Material Ledger Document: Field Groups (Currencies and Values)
·        MLCRP    Material Ledger Document: Price Change (Currencies, Prices)
·        MLMST    Material Ledger Document: Costing Run Header Data
The following types of material ledger documents are available, differing by transaction type:
·        CL     Material Ledger Closing Entries
·        UP    Material Ledger Update
·        PC    Price Changes
·        ST     Single-Level Price Determination
·        MS    Multilevel Price Determination
·        RE    Material Ledger Data Repairs
USE :
Material ledger documents are data that is recorded during each business transaction that is relevant to valuation. You can archive documents for closed periods when they are no longer needed for material price determination or reporting purposes. Archiving the documents deletes them from the database.
Regards,
Priyanka.P
PLS AWARD IF HELPFULL
Edited by: Priyanka Paltanwale on Aug 7, 2008 9:34 AM

Canceling Material Ledger

Hi all,
I need to understand better which are the consequences in material ledger canceling procedure described in the following SAP notes:
SAP Note 108374 - Canceling material ledger production startup
SAP Note 425487 - Deactivating the material ledger in production systems
In particular I'm intrerested in which are the tables anda data involved by the deleting procedure.
My goal is the subsiquent reactivation of the material ledger in a multiple valuation scenario as described in the SAP note:
SAP Note 120380 - Subsequent activation of multiple valuation approaches
Thanks in advance for your cooperation.
Best regards, ALDO26X1

The following tables contain data that can appear in the material ledger documents:
· MLHD Material Ledger Document: Header
· MLIT Material Ledger Document: Items
· MLPP Material Ledger Document: Posting Periods and Quantities
· MLPPF Material Ledger Document: Field Groups (Posting Periods and Quantities)
· MLCR Material Ledger Document: Currencies and Values
· MLCRF Material Ledger Document: Field Groups (Currencies and Values)
· MLCRP Material Ledger Document: Price Change (Currencies, Prices)
· MLMST Material Ledger Document: Costing Run Header Data
The following types of material ledger documents are available, differing by transaction type:
· CL Material Ledger Closing Entries
· UP Material Ledger Update
· PC Price Changes
· ST Single-Level Price Determination
· MS Multilevel Price Determination
· RE Material Ledger Data Repairs
USE :
Material ledger documents are data that is recorded during each business transaction that is relevant to valuation. You can archive documents for closed periods when they are no longer needed for material price determination or reporting purposes. Archiving the documents deletes them from the database.

Single level and multi level price determination

Hi,
Regarding single level and multilevel price determination, how system is arriving the figure of some portion to single level and some portion to multilevel. Can any one clarify the concept.
govind.

Hi
Find below my clarification.
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.
Follwing are Prerequisites\
The material ledger is active.
Actual costing is active.
The price determination indicator in the material master is set to 3.
The price control indicator in the material master is set to S.
Single-level price determination has been performed.
Following are the fartures
A level is identified by a material and its associated procurement process. Multiple levels are the result of one material being used in another material. These multiple levels are reflected in the actual BOM that is created in the costing run in the step Determine Sequence.
In multilevel production, both single-level and multilevel price differences exist. If one material is used in another material, and single-level price differences exist for the input material, this results in multilevel price differences. In this way, differences are rolled up from raw materials through semifinished products to finished products. This solves the problem of follow-up costs.
The price calculated through price determination is updated as a periodic unit price (V price) in the Accounting 1 view of the material master record The price control indicator remains set to S. The standard price does not change.
Regards
Deepak

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:not distributed variance-URGENT

Dear all,
For raw material A, it issued to certain production order(say FG is B) in Apr. at the month end, I found that there are some variance(not distributed) in material A due to there is no goods receipt for production order. in May. I performed GR for B, then calculate WIP/variance and perform settlement. after that, I run CKMLCP for ML closing.
However, system can not distribute the variance which occurred in the previous month to B, this means this variance will keep in the variance account forever, and the actual cost of B is wrong.
I do not know whether this is standard SAP, our version is ECC6.0.
thanks,
Ben

Hi Ben,
If you don't find the reason for 'not allocated', you should open a message in the system for SAP to check.
Check note 908776. Here you will find all possible reasons:
**'Not included' or 'Not allocated' price differences:
A) The material has multilevel consumption alternatives (processes).
Possible causes:
- Multilevel price determination was not carried out yet.
- Not all subsequent materials were processed by multilevel price
determination. If multilevel step has not been carried out (or
resulted in an error etc.) the price differences remain on the
input material in the 'not allocated' line.
You can verify the Actual BOM for all consumption processes to find
all output materials. You should check the status for multilevel in
all output materials
- the multi level document of one subsequent material is obsolet,
because it is older than the single level or multi level document of
the input material.
You can check this by comparing the time stamps in the documents'
header data.
This situation occurs when the input material was reprocessed by
single level and/or multi level price determination, but not all
depending subsequent materials were reprocessed.
To avoid such error SAP recommends to run multi level price
determination generally with the option:
'materials already processed: process again'.
- For some consumption processes there was no goods receipt of the
output material in the period. In this case the price differences
can not be rolled up by multi level price determination. They
remain as 'not included' ('not allocated') at the input material.
- For some consumption processes, that have different output
materials (joint production) for one of the joint products (the
materials that receive costs according to the apportionment
structure) the goods receipt has not been posted yet. In this case
the differences to be allocated to this joint product remain as
'not included' ('not allocated') at the input material
- One output was calculated with reduced BOM. Typically this happens
if input and output material are part of a cycle, and this cycle
was cut off because it didn't converge. In this case the price
differences of the input were not rolled-up along the cycle
connections and therefore remain on the input material. To verify
if this case applies check the multi level document of the output
material. There must be a red light in the item line of the input
material to indicate that no price differences have been rolled up.
In the header data of the multi level document you can see the
cycle number. Furthermore in the log of multi-level price
determination there may be a message 'Cycle * cut off after *
iterations'.
B) Material has Single level consumption alternatives
- For release 4.7 or higher, the step 'Revaluation of consumption'
was not carried out. (This step is only available with Financials
Extensions).
Regards,
BC

Actual Costing / Material Ledger - Component values transfer after movement

I executed a production order with several cost components, as Labor, Machine HS, after the settlement of the production order this cost where allocated into de CKM3N components. In addition to this, I executed movement 412 Q (Plant Stock to WBS Stock) for the material and the component values didnt pass to the material / PEP. I executed CKMLCP to Multilevel price determination. Can anyone help me with this?
The original material kept the cost split values, but the Material / Pep didnt. (the material code and plant didn't change)
Regards

Hi ,
Welcome to SDN ..
Its not a ML issue , but its a MM issue..
Movement 412Q is a transfer from plant stock to project stock. The material quantity gets reduced from plant stock and increased on project stock. The material value stays on the inventory account (so you won't see any actual costs associated with this transaction). ..
After you do a 412Q you can to a 221Q to issue the material from your project stock to the WBS. This will reduce the quantity in your project stock segment. The material value is credited to inventory and debited to material consumption expense(actual cost on the WBS).
The above applies to valuated project stock only. An issue to non-valuated project stock is treated like an inventory transfer from the logistics point of view(quantity is moved from plant stock to project stock) but like a consumption from a financial point of view(reduce inventory, increase expense).
Since, your Project Stock is not consumed.. CKM3N is not reflecting any consumption. Please use the movement type 221Q and i am sure your issue will be solved..
Please revert back for any further clarifications
Regards
Sarada

Material ledger Tables

Dear All,
Issue: Not able to post Good receipt due to the error that material does not exit.
Background: we have activated user exit in material master for material type ZROH and assigned a internal number range to it in MMNR. this user exit will append the material group mentioned during master creation in the internal code generated by system.
example PPMM is the material group and the internal code generated by system is 122222 so when we save the material in mm01 our material code is PPMM122222.
we are trying to do GR by 501 and now the material ledger function module is truncating PPMM from the material code and its trying to post document with 1222222. which then goes into error that material does not exist.
Analysis: I have checked in the MARA/MARC the material code is PPMM1222222. but i guess in some table whcih is relevant for material ledger system has stored internal material number 1222222.
So I am looking for tables or solution for this isssue

Hi Expert,
Please refer the SAP Standard Material Ledger Tables:
The following tables contain data that can appear in the material ledger documents:
Table - MLHD - Material Ledger Document: Header
Table - MLIT- Material Ledger Document: Items
Table - MLPP - Material Ledger Document: Posting Periods and Quantities
Table - MLPPF - Material Ledger Document: Field Groups (Posting Periods and Quantities)
Table - MLCR - Material Ledger Document: Currencies and Values
Table - MLCRF - Material Ledger Document: Field Groups (Currencies and Values)
Table - MLCRP - Material Ledger Document: Price Change (Currencies, Prices)
Table - MLMST - Material Ledger Document: Costing Run Header Data
Regards,
GK
SAP

Single level price determination in material ledger

What is the meaning of single level?Doe it include only the price determination of procured raw materials or will it also include semi finished and finnished goods?

Hi
Single level price determination is to calculate the unit price of material for a period. It takes into account the price differneces arising out of Price Differences like GR/IR Differences, Exchange Rate Differences, and revaluation differences to calculate the actual price of a material.
You can have more information of Single Level Price Determination at the following link:
http://help.sap.com/saphelp_47x200/helpdata/en/d2/cb4f37455611d189710000e8322d00/frameset.htm
Regards,
Suraj

CKMM Change Material Price Determination

Hello all,
Under what conditions or scenarios CKMM (Change material price determination) is used in Material Ledger/Actual Costing
Thanks

Nasir,
I presume that you are aware of the two price controls prevailing in Product Costing. (1) Standard Price S is constant price without considering usage or invoices; Material stock valued at the same price over an extended period; Price variances are posted to price difference accounts; not affecting the standard price. (2) Moving Average Price V is the price that changes in consequence of usage and entry of invoices; Calculated by dividing the value of material by the quantity in stock; Automatically recalculated based on activity.
Thru' CKMM transaction, you can inter-switch material from one price control to another. However, as I have been observing clients dont move from one price control to another just like that. In my many years of SAP experience, I have moved so far only one material from V to S.
Even within Standard Price S, the standard price can be adjusted from single / multilevel pricing to transaction based pricing. CKMM transaction can also be used for making that kind of change.
Thanks.

Material ledger - Multilevel price determination

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