Material ledger:'not allocated' variance

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.
Is there anyone know why and how it come and settle it ?
thanks very much

Dear Jin Ming Zhang,
Please, check the note 908776 which explains the possible reasons for 'not distributed' and 'not allocated' price differences.
There is no automatic procedure, but CKMVFM is a valuable tool to analyse the reason for the differences and distribute/include them.
Best regards,
Antje

Similar Messages

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

Material Ledger not activated in Material Master--Urgent

Dear Gurus,
We have created Material Master of Project Material With tag "Do NOT Cost" but Material ledger not get activated. although In plant material Ledger is activated .
Can any body Help to find out solution
Regrds
Mahesh
*Assign full marks

>
Kishore Kumar Chiluka wrote:
> Hi
>
> Please get in touch with your BASIS consulatant , as the updates are not performing rightly, this seems to be asystem error.
>
> Thanks & Regards
>
> Kishore
Thanks a lot Kishore.
But unfortunately we don't have any Basis Guy separately. I was doubling up as Basis as well APO in my org . I'm pretty new to all these stuff. I searched in help.sap.com about this a lot, but couldn't find anything useful.
Can you help me in identifying a solution to this problem?
Thanks,
Rajesh Manoharan

Material ledger not closed

Hi ,
I am facing one issue in which the material ledger for a material has not been closed for a particular month. We have price difference in beginning and cumulated inventory. Is it because of the price difference ? or can it be due to some exchange rate difference ? How can I check this in system ?
Pls help.
Regards,
Gaurav

Hi,
Please check if the material was correctly closed with transaction CKMLCP. Maybe for the material was manually closed without executing transaction CKMLCP. You can verify this if there is a post closing document for the material in that period.
I hope this helps.
Best regards,
MLM

Material Ledger - Not Distributed when use MR22

Dear All
I do follow step and i have a problem which need your help
1. Create a Mew Materail, price determination: 3 - Single/Multi level
2. GR with Mvt 561.
3. Using MR22 to update valuae for that material.
4. Run CKMLCP -->
I have 2 question
1. When I run CKM3, I saw quantity in the Consumption Group with negative quantity. I don't know why, because I do GR, not do GI
2. After run CKMLCP, I saw a not distributed line.
I aldready config PRDs,
Please help me solve that problem.
Thanks
QuangDD

Hello Quang,
First of all, do you have any consumption for your material in CKM3?
CKMLCP would not distribute anything if there is no consumption in the material.
The "not distributed" lines are due to 4 different causes explained in SAP Note 908776.
I think your problem though, is that you have an MR22 posting and there is no consumption to apply that variance to.
Hope it helps
Javier

Material Ledger - not distributed

Dear All.
After I run CKMLCP, I found that some value can't not distributed and it's stored in not distributed category.
I found an unnormal thing in sytem: When I run Settlement, CO88, some Production Order in previous month appear in current period, with a little variance. All of them are completed in previous month and I ran CO88 for them.
Does anyknow why CKMLCP can't ditribute all producion variant to consumption and stock ? Pleas help me.
Thanks and Best regard,
QuangDD

Hi,
The production order even you settle at the previous month may consume some stock in the current period also.so that the settlemnt is considering that amount in the current month,so check whether the consumption is on which month by running consumption of production order in MB51 or production report.
So it will lead unconsistency in CKMLCP run.so check with the prouction dept & correct the entry & take the CKMLCP run.
Tell me one more thing the cost release is for monthly or periodically.
Regards,
Raj.

Material Ledger not activated in both plants within the same company

Hi Experts,
I would like to ask what would be the impact if we activate ML only in one plant. The company code has 2 plants assigned to it. We are currently implementing transfer pricing but only to one plant. What is the impact of activating the PC valuation to other plant under the same company code?
Thanks

Hi,
Usually to add transportation cost or freight to the material cost at the time of STO we will use the seperate pricing procedure & condition types.
same way we can do one thing..
1)define the seoerate pricing procedure for STO
2)include condiion types for mfg cost, transport cost, margin etc etc & define the condition types in such a way that this all condition type values are get added to inventory.
3)create STO & give values for all condition types in STO
4)create delivery PGI
5)create excise invoice
6)create GRN at receiving plant.
hope its clear.
Regds

Material ledger Conceptual doubt

Dear Guru's,
I have one doubt regarding Activate Actual costing.
What is importance of these below fields.
0              No activity update
1              Activity update not relevant to price determination
2              Activity update relevant to price determination
     If we select "1" what is impact, means whether we have to do month end process at cost center or material ledger. What are the dependencies for this.
or If we select "2", where we have to month end process. in material ledger means where we have to our month end process.
Please explain process. i have read help document. but i am confusing my self.
Thanks,
AK.

Hi Kumar,
You can refer below link related to your query.
Material ledger
Notes: (May be useful)
If you use Actual Costing, you can decide whether (in addition to material consumption) activity consumption on cost centers and process consumption of business processes that are required to produce a material should be updated in the quantity structure in the Actual Costing/Material Ledger.
Depending on which activation type is chosen
Actual consumption is updated in the quantity structure but not considered by price determination.
You can use this setting if you simply want information about the complete actual quantity structure. You can assign variances between the plan price of the cost center/activity type or process, and the actual price calculated at period end to the particular cost object at period-end closing using the function 'Revaluation at Actual Prices'.
Actual consumption is updated in the quantity structure and taken into account for the price determination.
If you choose this setting, the variances between the plan price and the actual price are adjusted subsequently. The cost center or the process is then credited and the material associated with the consumption is debited. In the context of multi-level price determination, these variances can be rolled up through the production structure up to the finished product in the same way that material price variances are rolled up.
If you choose this setting, you cannot use the function 'Revaluation at Actual Prices' at period closing in Cost Object Controlling, as the variances from the cost centers/processes are debited to the material direct. If you do use the function 'Revaluation at Actual Prices' at period closing, the cost centers/processes are credited twice and the materials are debited twice.
BR
Ashok

How to activate material ledger field under accounting data

Hi
can any body give me solution for following
i am creating a MIGO for capital Purchase order for (Project capital material-PROJ) with WBS ELEMENT.
While clicking check button while doing migo error is showing
"Material xxxx for plant xxxx material ledger not activated"
when i am trying to change mode under accounting view
ML ACTIVE FIELD is grey. How to activate this field.
Please give me solution.
Thanks
Nirmal

tx. OMX1

How to set Material Ledger as Productive

In CKM9 ---> I am getting message as --> Material Ledger Not Yet Productive
how to set Material Ledger as Productive
Please help

IMG->Controlling->Product Cost Controlling->Actual Costing/Material Ledger-> Activate Valuation Areas for Material Ledger
In this step, you activate the material ledger for valuation areas - Before activating material ledger, check the additional currencies defined in the Co Cd.

0COPC_C04 : Material Ledger Inactive for valuation area

I ran RSA3 for 0CO_PC_ACT_02 and 0CO_PC_ACT_05 and I get 1000 records respectively. I ran the info package to load this data into BW to 0COPC_C04 . I am getting a message in the status tab " Job termination in the source system". When I look at the job log , it says " Material ledger not active for abcd Valuation area".
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
Company Code = abcd
Price Det. = 3
and there is this one records which shows :
Valuation area = abcd
Company code = abcd
Price determination = 3
and it is not check marked under ML Act . This is only in the dev box , it was fixed in QA and Prod. But never fixed in Dev.
I am not sure , what to do , also I am not sure if this is what is causing the problem.
Thanks

Can some one guide me?
Thanks

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 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

Huge price variance in Material Ledger

Dear Gurus,
In our case the standard cost of one Finished goods is released with the price of Rs.10 but later on the cost of one of the Raw material is changed to Rs.1200. Without releasing the standard cost (as it cannot be released for more than once in a period) of the Finished Goods, we have performed Mock month end closing for Material Ledger.
Now due to the difference in raw material cost huge variance (Rs.12000-10) is lying as unallocated variance.
Please advise the way out as to how to correct the same at the earliest.
Regards
Rajya Lakshmi

Hi,
Thanks for the reply but in case of MR21 and MR22 also the variance will be collected on price difference account only and needs to be allocated back to the Finished Goods.
Against which the PRD should be knocked off is the question and how to pass the JV.
Please Advise.
Regards
Rajya Lakshmi

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,
Kallu

Hi
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
historical exchange rates directly at the time of posting. Businesses such as those in highinflation
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
valuation views, you must use the material ledger. This allows you to carry your
inventories in three different valuations (legal valuation, valuation for reporting
purposes, and profit center valuation).
Before activating the material ledger, make sure you know which currencies and valuations
you want to use, because you cannot go back and change the setting.
Activating the material ledger is a prerequisite for using multiple valuations.
Thanks
Raman

Material ledger:'not allocated' variance

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