Questions on material ledger

Dear All,
i want to activate material ledger in a company code, but i have some concerns that maybe some of you could give me the best suggestion.
1. is it possible to activate Material Ledger in the middle of SAP operation (i mean in the previous years, we didn't activate the Mat Ledger, just by now we have the idea to activate it)
2. what are the impacts by activating Material ledger, and some concerns that maybe exist in activating it?
3. is there any recommended link that gives the steps for activating it? i got some resources, but apparently the steps don't apply to my system, especially the step when I want to set the valuation area as productive (FYI, my SAP version is 4.7)
Many many thanks!
Nasikhin

you may check below notes, hope it can helps:
Note 596558 - Material ledger production startup
After activate material ledger, you need to start up the ML using tcode : CKMSTART , then check using CKM9 for detail.

Similar Messages

Questions in Material Ledger Currency

Hey Gurus,
I am having some problems posting documents with MIGO because Iti gives me the error message C+052 (inconsistency in valuation of material).
While accessing the tcode CKM9 I see that one of the currencies is inconsistent as you can see in the print.
Do you know if this is the origin of my error? How can I correct it?
Cumps,
MB

Hi Manuel,
Just a thought, as a follow-up to Owen's comment above ...
Before you consider the reversal of production startup, consider the following:
1) If it is only one material that causes this problem, then consider reversing all material transactions during the current period, close any and all production orders, purchase orders, etc that use this material, and see if a deletion flag can be set, and then use a new material. If ML close gives you a problem after reversing all the transactions, see if you can change price determination to 2 and then do ML Close.
2) See if any of the utilities in Material Ledger Help Desk will be helpful in fixing this error.
3) Above all, consult SAP FIRST before you run reversal of production startup etc. They may have a simpler solution.
Of course, I know you will perform all these in a test environment first before you venture anything in Production Environment, right?
Cheers,
TD

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 currency types-manually

Hi,
I have a question about material ledger currency types.
Does it cause any problem if i have set the currency types manually as different then additional local currencies for company code in FI? I have to set the currencies manually. Does it have some disadvanteges? Because when i try to do this in configuration system gives a warning:
"Do not make any changes (SAP entry)
Message no. SV117
Diagnosis
You have changed an entry which, according to the name space definition is managed by SAP.
System Response
Your changes may be overwritten at each subsequent upgrade or release change.
Procedure
Avoid changing this data. If the change is inavoidable, document it carefully, so that it can be repeated, if necessary, after an upgrade or release change. The best way to do this is to put the data in a change request, which you can export before an upgrade or release change, and import again afterwards."
I need your helps.
Thanks a lot.
Saadet

Hi,
Check in following T.Codes but involve FICO Consultants:
OMX1,
OMX2,
OMX3.
Regards,
Biju K

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.

Material Ledger Value Flow Monitor CKMVFM question

Hello,
I am researching the Value Flow Monitor report CKMVFM. On my test material, it is showing a balance in FI, and a red indicator on the FI/ML status. I assume this means there is a discrepancy between FI and Material Ledger, but I don't know how to go about researching this. I have completed all steps in the Closing Cockpit. How do I explain the difference between FI and ML, or go about reconciling the two? Thanks in advance for your assistance!

Please Refer OSS : Note 744090 - Value Flow Monitor: Explanation and recommendations

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.

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 for Stock Transfer Postings

Hi All,
I have a question about the way material ledger is calculated for stock transfer postings (movement type 641). I will give an example to illustrate this issue:
Material A has a Standard cost of $10
Material B has a Standard cost of $8
During the month 100 units were transferred from material A to Material B. This created a financial posting as follows:
Credit Material A -          $1000
Debit Material B -           $800
Debit Price Difference    $200
This price difference of $200 was used in the calculation of Actual cost for material B
However, the Actual Cost for Material A was $9. I would have expected the system to use this actual cost to calculate the difference to be posted to material B. Hence the difference used in Material B should have been $100 {(9 8) X 100} and not $200.
Has anyone had a similar issue, or know how the system resolves this (if at all)?
Points will be rewarded for relevance.
Thanks

Dave, I see that your process is slightly different to mine. We do not revalue inventory at month end, instead the material ledger program posts the revalued amount to a reserve account and the actual cost is only a statistical entry. The material ledger calculation is reversed automatically in the new month and the standard price is used for valuation.
I think this might make it difficult for the system to value STO's at actual. I may need to check with SAP.
Thanks

Material ledger activity rate revaluation account determination modification

Scenario:
SAP ECC 617
Material ledger activated with activity rate revaluation (i.e. cost center over/under absorption posts to ML and not to production orders)
Standard SAP setup has PRV transaction key used to post both multi-level price differences to inventory and to capture the offset to the cost center clearing entries (GBB-AUI) causing the values to get comingled in the same account
Question:
For reporting purposes I would like to determine a unique account for the activity rate revaluation entries. There is no relevant general modifier available for transaction key PRV. Is it possible and practical to modify table T169A for a specific value string / field name combination that represents this material ledger transaction? If so, what is the combination? Or will this cause major issues with ML processing?
I'm trying to find a creative way to fill this gap without account substitution.

Hi Eric,
This is an interesting one.
Modifying value string might be an option but in my opinion is quite a serious "brain surgery" on the system :-).
You may want to try another option.
In SPRO -> Controlling -> General Controlling -> Organization -> Maintain Versions
for version 0, Controlling Area Settings, Settings for Each Fiscal Year in tab Price Calculation there is field Revaluation.
One of the options there is 'Own business transaction'. With this option posting to sending Cost Centre resulting from actual activity price revaluation will be posted with different Business Transaction (although same secondary cost element as original activity allocation).
In reports you can separate postings based on Business transaction.
It definitely works for Activity Update 1 (revaluation of production orders).
I'm not sure if it works for Activity Udate 2 (no revaluation of production orders).
Please let us know the results of your investigation.
Regards,
Szymon

Material Ledger : Actual Cost settlement to Consumption Accounts

Dear CO Experts,
We are aware that when we run CKMLCP, all variances (in the Price Diff GL Account) due to Material Prices flutuation, diff in Standard & Actual Cost of Production, etc. would finally get settled to Consumption or Stock Account in its appropriate ratios.
Consumption Acount GL is a Cost Element with Cost Category as 1.
There can be cases, when there are diferences in Production Order, due to fluctuations in Prices or Actual consumption is more than standard consumption.
When a Production Order is settled the difference is posted to Price Diff Account.
When a Material Ledger (Actual Costing) is executed, Price Diff Account is targetted to be Zero. The Price Diff is then splitted in Stock & Consumtion Account in its appropriate ratios.
Main Question :
Since, Consumption Acount GL is a Cost Element with Cost Category as 1, what shall be the CO Account Assignment Object, when the ML value is settled to Consumption Accounts.

hi merchant..
   1. Price diff between stnd and act is initially goes to PRD a/c through OBYC setting at the time of GR/Invoiceing/Issue if mat is set as S&3.
   2. In case of mat set as V&2 idially there should not be any diff but may arise some small amount due to "no or less stock qty" at the time of invoicing.
3. When CKMLCP is run these price diff & order settlement diff splitted to cons and stock as you mentioned.
Now your question :
" Since, Consumption Acount GL is a Cost Element with Cost Category as 1, what shall be the CO Account Assignment Object, when the ML value is settled to Consumption Accounts"
    Cons GL is cost element cat 1 for capturing mat mov for Issues to orders/cost centres,oth co obj for primary posting at stnd price.
    Now at the time of CKMLCP run you revaluate the materials and price diff are splitted to cons & stock and goes to mat to calculate act cost (stnd +/- prd).
I think this will give you some light on your issue.
kkumar

Material ledger and standard cost estimate

Hi Gurus,
When standard cost estimate is done in a scenario, where material ledger is activated, does the entire stock get revaluated andl post a credit in my P/L? Is it possible to keep my inventory(FG and SFG) at periodic unit price ie at the actual manufacturing price over a longer period say 3 years? Please fill this gap in my understanding.
Best regards
Vimal

Hi Vimal,
Material ledger uses the standard price as 'preliminary price' always during the current month, independent of the question if a new standard price was estimated and released.
But: After period end, when the actual price is calculated the posting will adjust the inventory and P/L accounts to the actual price, with posting date in the recent period.
That means if you have a material that was manufactured once and then consumed over a 3 year period, and during that period you calculate the same material in a standard cost estimate with changing results, that would mean: Looking back at any month during the 3 years the consumption and stock values will be valued at the actual price of manufacturing. But during the currently open period it will always be valuated at the price of the last released cost estimate.
I hope I understood your scenario correct...
Best regards, Udo

Material ledger tick in material master

hi
i have created material master Number ABC.
Make changes in material type and activated material ledger. Now ML tick is on all new material master being created its fine.
Question is how I can activate the ML tick on material number ABC which created before activation of material ledger.
regards

Hi,
no, It's not a big mistake and it can be solved quickly be SAP Support.
But you can try the following workaround:
1. You can change the material type of the material to a material type managed by value and quantity (txn MMAM).
2. Afterwards, change the customizing of the material type in OMS2 (I assume you've done this already).
3. Finally, you reset the material type again in txn MMAM.
If this does not work or if too many materials are affected, there is no other way than contacting SAP Support.
BR,
Antje

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 - 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
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