Material Ledger requirement

Hi,
Sap Masters,
In which circumsatances we can recomand client to implement Material Ledger.
Thanx for quick response.

Hello,
The material ledger has two objectives first parallel valuation and second actual valuation. The module seeks to overcome the shortcomings of the standard and moving average price systems and tries to valuate inventory at actual price which is called periodic unit price.
You can get some good idea from a blog posted by me on SDN.
/people/shaubhik.goswami2/blog/2010/12/03/valuation-alternatives--between-the-devil-and-the-deep-blue-sea
Kind Regards // Shaubhik

Similar Messages

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

Cost of goods manufactured vs COGS+ Material ledger

Hi Experts,
My company is implenting Material Ledger. They want to see the actual cost of goods manufactured. We are able to develop the actual cost of goods sold in COPA. The required report is to show:
1- Direct material used at standard + variances (price + usage) to give the actual.
2- Direct labor (standard + variances = Actual)
3- Manufacturing overhead ( standard + variances = Actual)
Attached excel file is showing the requirement.
Your guidance to develop this report by any means (Report painter, BI, other).
Regards
Ahmed Zain Hassan

Hi Ahmed / Ajay.
1. In order reports KKO0, you dont see the revaluation of ML, as you said Consumption and Activities are revaluated at Material level, and as far as i know, theres no way to add records that represent the revaluation.
2. The easy way to have a Order Report revaluated at actual cost is with LIS(Logistic InfoSys), creating a Z infostructure (eg copy lis S027) that store consumption and activity QTY, and a user exit that read the actual cost of consumed materials (depending if this is V, S2, S3) and activities and revaluate. In LIS, there are standard way to "re-post" or repopulate the infostructures. This LIS can be reported with the standard functions (ReportPainter, quers on SQ01), or create a Z tcode that show the info stored in the way you want. Problem: Not all know how to customize LIS, and also you need code in the exit.
3. In my country (Peru), there are lots of companies that develop a Z Kardex valuated at actual cost (because, is a legal requirement), and also create Zprograms that calculate the order at actual cost (indeed, i create this reports twice). Its a bit complex, but not impossible and depends on custo EG if you have multiple valuations, you need to write code in order to get the infor for this specific valuations.
4. About COPA, you can post to copa the Actual Cost Component Split calculated by ML. In this CCS, you can identify the Labor, Direct Materials, and overheads. You have 2 options, You can post the delta to the original field or have an aditional field that store the difference. This stuff is done in KE27, i see 1 example in the SCN (i guess i bookmarked). Its important to understand you dont have the detail of the delta per consumed material, just an agregated value.
Here is the link
http://wiki.scn.sap.com/wiki/display/ERPFI/KE27+Periodic+Valuation
5. There is a new ML DrillDown report functionality. Indeed, i couldnt spend time analizing the solution (my test system is with EHP5 and dont plant to upload the OSS), but i guess this is the future. You can look for info with tcode KKML0 in the marketplace, also check this oss 1639462 - ERP accelerators: enhancements in ML drilldown reporting
My questions:
What you want?
+ Order Report, i mean Cost detaild per Order? The Actual CCS por order?
+ Material Report? I mean, the monthly average of a Fert, and its CCS ?
+ a PA Report, that show Sales (Incomes), and Costs per matiral , split by Direct, Labor and OverHead?
Arturo.

Material Ledger activation at Company Code Level

Hi All,
I have a requirement where Material Ledger need to be activated at Company level and not at single Plant Level. We are about to implement ML and would like to have periodic unit price calculated at company code level (e.g. 1 material, 4 plants, 1 company = 1 periodic unit price).
I went through the customization , it only refers to Plant level (Valuation area level)
Could anybody throw light on this.
Regards
Barbara

Hi,
What is the valuation level?
If the valuation is at plant level you can maintain different views at different plants of these company codes.
If only name is different i think you would do better with the same material code, and if you still want to differentiate please create two different materials
Regards,
Prithviraj
Edited by: Prithviraj Talekar on Feb 11, 2009 5:25 AM

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

Material Ledger Postings - Contradicting IAS 2?

Hi All,
Material Ledger captures both Price Differences and Exchange Rate Differences and allocates these according to Stock and Consumption.
During the month, when we encounter Price and Exchange Rate differences, these are held on the P/L. At month-end, when we close ML, the Price and Exchange Rate differences 'attribuatable' to Stock are moved from the P/L to the Balance Sheet (or "Capitalised").
This is seemingly contrary to IAS 2, which clarifies that Exchange Rate differences cannot be capitalised on stock. Is that an acceptable accouting treatment for (say) external reporting. Certainly SAP does follow IAS, so I'm probably just missing the point?
Reproduced Verbatim:
"Inventory cost should not include: abnormal waste, administrative overheads unrelated to production, selling costs, foreign exchange differences arising directly on the recent acquisition of inventories invoiced in a foreign currency and interest cost when inventories are purchased with deferred settlement terms."
Can anyone shed light please?
Regards.
Venky.

Dear Ram
Thanks for your reply.
Both the production orders are for the same material, same BOM was used and the only difference is the goods receipt was not made for one productin order. We need to hold that order for 2 weeks. Fortunately this happens in the month end and the BOM is very small by which we could able to find this difference.
In CKM3 w.r.t actual cost copmponent split the value of one number is 4500 instead of 4800. The total consumption difference for the two orders are shown as the price difference and the price is calculated for 1 EA of the finished material in stock.
My requirement is since we have given to stock only one number the consumption difference has to be posted to 1 EA. and the consumption difference for another one should be loaded to pending production order.
or is there any way to post the price difference to pending production orders.
Thanks
Soundar

Material ledger and cost estmate

Hi all
Can any body tell me the impact on material ledger of deleting the current standard cost estimate from material master? The requirement has come for change the current standard cost from material master whom we have released on 01.01.2008 and now today at 07.01.2008 we want to change this. All the transactions for material in current period I have got the reverse. Now I will delete the cost estimate from T_code CKR1 and than the new standard cost will releases from today in same period. At month end we are going to run the actual costing. Would be any problem in actual costing?
Thanks and Reagrds
Vinay Thakre

thanks Pascal for prompt response,would you please advise my below understanding to ML and actual cost
1)CKMLCP - Edit Costing Run to create costing run to calculated periodic unit price
2)Because there are some activities in CKMLCP,we have to respectively execute CKMF / CKMG/CKMJ / CKMH / CKMI for each activity of costing run
3)after costing run with CIMLCP,SAP will use calculated periodic unit price to revaluate inventory for previous period,and the price indicator S automatically changed to V for previous as well.
4)SAP will generate FI cocument to adj inventory and consumption cost after "post closing"
5)there is different periodic unit price for each closed period
5)the price indicator for closed period is always V,the price indicator in current period is S

Material ledger 643 movement type showing up under cost center

Hello everybody
We are in the process of implementing the material ledger.
We have two processes of stock transfer in our system
1. Plant to plant- mvmt type 641/101 (intracompany ) which ML is recognizing as stock transfer
2. Cross company STO- mvmt type 643/101 (intercompany) which ML is putting it under cost center and not as stock transfer
As the number 2 scenario is also stock transfer and we are seeing under cost center bucket we are not able to join the PGI document to the recieving site and vice versa of the GR to the supplying site. Hence have a problem to transfer variances too.
So is there any way-to make the cross company stock transfer also as a stock transfer in ckm3.
Appreciate it.
Sankara

Hi
Your requirement class settings must have had sales order as a cost object
1. Go to sale order, procurement tab
2. Check whats the req type
3. Go to OVZH and check whats the req class assigned to this req type
4. Go to OVZG and check whats the acount assignment cateory in req class.. I think it is E
You should use a proper req class/type to avoid this error
br, Ajay M

Material Ledger Report

Hello All,
Is there any report available in Standard SAP Material ledger which shows the openening quantity, purchase, consumption and closing stock by material wise.
This is required for audit purposes.
I just wanted to know how other companies solving this problem.
Thank you,
Regards,
Santosh

Dear Santhosh,
Use CKM3.
About Ckm3
One question about Material Ledger Data
Hope this will help.
Regards,
Naveen.

Material Ledger - Usage

Dear Team,
Need to know any company have used the Material Ledger for Actual cost valuation is "yes", request to revert for the below mentioned questions:
a) Is it required to have Raw material, SFG, FG & depot FG Item type price control - as "S" type,
b) Is there any limitation,
c) Duirng month end, how much time it takes to run?.
Rgds
Ganesh

Hi Ganesh
We are using Material Ledger.
All the material prices are maintained and standard price. Seems it doesnot take much time to run the material ledger at the month end. I would say its not very abnormal atleast.
Thanks
Ashok
Assign points for useful answer

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

Material ledger production start up

Dear expert,
we are working on a project that has two main objectives:
1) now the customer is using the mtv 103/105 and we want to move to the 101
2) now the customer is using a custom 'medium price calculation' and we have to activate the material ledger.
I red the note 596558 and I have some question; first at all I would like to find some documentation about this activity and the effects of a Material ledger production startup, could someone tell me we can I find info ?
The question are
At point f) is wrote
u201CYou should always transfer purchase orders and purchase order histories before activating the material ledger. This ensures that the system translates the purchase order history in all additional currencies.u201D
What does it means? Why it is necessary translate? How?
If a company has only the local currency is it necessary the translation?
At point j) is wrote
u201CWe recommend that you close open orders before activating the material ledger and recreate them after the activation if required.u201D
WHY?
The posting logic for postings that reference a purchase order is changed in the parallel currencies due to the activation of the material ledger. As a result, there may be unexpected price postings and exchange rate difference postings for purchase orders that are not closed in business transactions (goods movements and invoices) that are posted later.
Which unexpected postings? Refers to new u2018Transactionu2019 (e.g. BSX, WRX, PRD, KDM, u2026) used after the material ledger start up?
Now the customer is using a custom u2018medium price calculationu2019; we think to reverse all movements in the year (103, 105, invoices) for order item not closed and recreate the goods movement with the new model (101, invoices) after the ML activation.
Thanks in advance.

In our case CKMSTART was definately done before Inventory load. This Tcode was part of config prior to Master data creation and migrated data loads....

Material Ledger - Global Company - impact

Hi,
My company is a Global company integrating all company codes spread accross the world on ecc 6. One among the company code requires, maintaining 'Material Ledger'. We have only one leading ledger. Will this affect material valuation on 'consolidation' in GAAP or IFRS requirements. Will Material Ledger post or adjust COGS A/c. and Inventory account, when end of period valuation process carried out?
Kindly clarify..
Ashok

Hi Ashok,
We are planning to activate material ledger in the ECC 6.0 version. Since you guys have already implemented this, do you see any issues with its activation ?
regards
Kishore.

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

Material Ledger Activation in a live environment

Hi Experts,
My client is already in a live SAP environment. So now they would like to activate Material Ledger/Actual Costing to enable the actual cost calculation. I have never worked in an environment where we activated ML in a live system.
The client is considering activating ML for the purpose of actual costing. We are also considering parallel valuations i.e. we would like to use Group Valuations to satisfy group reporting requirement.
Would appreciate if you could provide some insights or guidance on how to do this. Specifically, I also would like to understand the following areas with regards to the above requirements:
1. Timing - should we do this only in a new fiscal year or we can do this at the start of a new period during the year;
2. How can we migrate the actual cost with the right cost components
Thank you for your reply.
TL

Hi TL,
All your above-said requirements can be fulfilled by activation of ML. Regarding your doubts :
01. Timingu2014As per SAP, there is no time constraint for ML Activation. The ML Activation program i.e., t-code-CKMLSTART will look after all system required settings. The date on which you have activated ML, for all Material Types, the preliminary valuation will become u201CStandard Priceu201D, all the Price/FOREX differences will be accumulated in ML Price differences categories. After the ML month-end activities, system will calculate the average price i.e., Periodic Unit Price (PUP). PUP will be treated as Actual Current Product cost, Month-end Inventory Value of the material. It can also be used as future Standard Price.
02. . How can we migrate the actual cost with the right cost components :
No need of migration of actual cost with right cost components. All Actual Material movements transaction data i.e., Beginning Inventory, Goods Receipt, Goods Issue, Ending inventory will be reflected in ML. The Components are same as per the Product Cost Planning Cost Components which are available in assigned Cost Component structure. These will be reflected in ML Analysis report in t-code-CKM3.
Regards
appalas

Material Ledger requirement

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