Transfer Price & Material Ledger

We have to have transfer pricing for profit centres. Eventhough we have only legal valuation in our case, Material Ledger activation is mandatory otherwise system does not permit us to activate transfer pricing. Hence, we have decided to activate ML eventhough we dont want it in our case.
Hence we will activate it and we will not perform anyother activity with respect to the Material ledger.
Will this be OK ? Will it affect any other transactions in our case ? Please offer your inputs.

I am very happy to see that lot of deliberations happened from your side.
To be more precise, let me put our scenario as follows:
- We have only one valuation viz. legal valuation (no multiple valuations)
- We want to use Transfer Pricing
- Without Material ledger, system is not allowing to activate transfer pricing.
We wrote to SAP quoting our situation but I think even after 2-3 rounds of interactions, SAP did not understand our situation that we require only one valuation and activate the transfer pricing. They sent us some notes all of which explains about multiple valuations, material ledger and transfer pricing. That is why I have raised this issue here.
Now, the options you have suggested is to use a customized program or activate ML without actual costing.
Yes, we do not want to have actual costing and have informed our client that ML only will just be activated for the sake of TP, wihout any further utilization of its functionalities.
One more pont, regarding settings done, I have not done any settings related to SPRO actual costings. Regarding the 9-11 settings as pointed out by Sarada, I noted that:
9 Assign Material Update Structure to a Valuation Area OMX8 : Settings are done there with std materiial upd structure. (Is this relating to Actual costing ? Pl. tell me).
10 Activate Actual Cost Component Split SPRO : Not activated.
11 Activate Distribution of Usage Variances : Not done anything.

Similar Messages

Profit center transfer price Without activated material ledger

Hi
May I use profit center transfer price without activated material ledger as well?
Regards

Hi Alaa
This OSS explain the Transfer Price Activation.
Note 122008 - Activate transfer pricesmult.valuation approaches
ML activation is a Must.
Arturo.

Transfer price without Material Ledger

Dear Expert,
I am not using material ledger.but how i will handle transper price without material ledger
I am going to do stock transfer of FG stock from Plant A to plant B.
Standard price in plant A is 10 rs and Plant B 15rs
FG stock in Recieving plant B will debit !5rs and sending plant credit with 10rs and difference of 5rs will store in Price difference a/c.
M i correct with above entry?
In that case how to handle transfer price?.
regards
RR

Hi Raman
No Trf Price possible w.o ML... No work around possible
What are you trying to achieve... Can you detail it.... For sure, you cant maintain multiple valuations for same mat w/o ML
br, Ajay M

Transfer Price capturing through material ledger

Hi
Would like to know how can we capture Transfer price mechanism through Material ledger.And what should be taken care of while activating material ledger.
regards

Hi,
Transfer pricing is taken care using Speicial procurement key as similar as Product cost planning.
The very important activities involved with ML while implementing are:
1. Conversion from pricing control V to S, if we dicide to go with S for rawmaterial.
2. Month end activities. This has to be done with out miss. Other wise, there will be a problem in closing the past period.
Vijay

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

MR11- The price for material && will be negative - Material Ledger Active

Hi All,
The material ledger is active and user is getting error message "The price for material && will be negative" while doing MR11. I found the below SAP Notes:
sapnote_0000010757_FAQ MR11, clear GRIR clearing account
sapnote_0000174684_Procedure for error C+121C+131, price
sapnote_0000320941_Posting in spite of negative price
sapnote_0000790426_MR11 Functionality
I found SAP Note: 174684_Procedure for error C+121C+131, price , but it seems to give a temporary solution of changing the price using MR21 / MR22. The error has become very frequent.
I appreciate, if someone can help me know the pros and cons of using MR21/MR22 transaction when material ledger is active, because I am not able to figure out where will the MR21 / MR22 transaction have impacts in MM and CO?
Is there anyway to do away with the recurrence of Error message permanently?
Thanks in advance!!!
Sagar K.

Hi:
This error occurs when PO price does not match with Moving average price in Material price.
First check the price in PO and in Moving average price in Material Master. If the Moving average price is less than PO, go the T.code MR21 to change the moving average price to PO Price.
Also check T.code MRBR - it will show why the invoice is blocked.
Please let me know if you need more information.
Assign points if useful.
Regards
MSReddy

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.

Standard Price in Material Ledger

Dear Gurus,
On one hand we need to update on finished products (manufactured) a standard cost estimate (CK11N or CK40N) in order to analyse variances on the corresponding production orders (during period en closing with KKS2 transaction), on another hand, because we are implementing material ledger component, we would like to update the standard price of these finished products with the periodic unit price (PUP) with CKME transaction.
The problem is that the system returns an error when we try to release the price with the PUP,
CKPRCH "A current or future standard price exists for material &".
Could you help me ? Thank you very much
Christophe

Hi
I suspect standard price can only be saved once for any period. You can make use of the other price fields in the material master to store different prices
Thank You,

How the System calculate GR/IR Prices in Material Ledger

Dear All,
Please any body help me regarding: How the prices calculation happen during the Goods Rereipt (GR) & Invoice Receipt (IR) prices in Material Ledger same period and next period. Exampls as follows,
If one material GR happened February, 2011 with Rs 100/- and IR happened March, 2011 with Rs 110/-. This difference Rs 10/- how it will be effected in during the two periods.
What will be impact of both periods if runs Material execution at end of the month. For March, 2011 how the material prices calculated & what basis.
Plese help me with above example.
Regards
Bhaskar.

Hi Bhaskar ,
At the time of GR .. in standard costing .. the accounting entries are
Inventory   -
Dr 100 ( Std Price)
Price Diff         -
Dr      10
GR/IR -
Cr 110 ( Invoice Price)
At the time of IR .. the entry is
Gr/IR -
Dr   110
Vendor -
Cr 110 .
Hence , the price difference is taken in accounting and in ML run in the month GR happens....................
Now , how ML run post the amounts in GL and account determination logic.. refer OSS Note : 908737 - Post Closing in Material Ledger
Regards
Sarada

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

Historical moving average price in material ledger

Hi SAPGURUS,
Every Month when doing the Month-end closing, system re-calculate the moving average cost in material ledger . Is there a way to get this information for all plant, all model and download to the EXCEL.
Could you please tell if we can the information from any database table.
Thanks and regards,
Priyajit

Hi,
Look at the following table data MLCRP for price changes. MLCR is the basic material ledger table. There are other ML tables that you may need to refer to: MLCRF and MLPPF.
Cheers.

Material ledger prices for material master

Hi all
We have activated Material Ledger. I like to dowload all the three currency prices for the materials. How is it possible?
In MBEW only the company code currency is available.
Also u cannot use the exchange rate as it gives wrong data.
Regards
JOE

h

Activation Material Ledger with material working in price control "V"

Hi experts!
I have activated Material Ledger and I have a question about this..
1) Before the activation, I have for example a material with the next values in the "Accounting 1" tab:
Total stock = 7 UNI
Price Control = V
Moving price = 166 USD
Standard price = 166 USD
Total value = 1.162 USD (7 UNI*166 USD)
2) And after the Material Ledger activation, In the same material appears the next values in the "Accounting 1" tab.
Total stock = 7 UNI
Price Control = V
Standar price = 166 USD
Per.Unit price = 23,71 USD
Inventory value = 166 USD
I don´t understand if my total value before activation was 1.162 USD, when I have activated ML, the new value is 166 USD.
I dont´t understand why the value for the "Per.Unit price" is 23,71USD and not is 166 USD because this is the original value before ML activation..
I think that my inventory value must be the same before Material Ledger activation, (1.162 USD)???
Best Regards
Manuel

Hi Shaubhikg:
At first, thanks for your response.
I have founded another material wich has the next information before the material ledger activation:
In the Accounting 1 tab:
Price control: V
Moving price: 1.265,80 USD
Total stock: 5 UNI
Standard price: 553,00 USD
Total value: 6.329,00 USD
After the material Ledger production start up, the same material has the next information in USD:
Standard price: 553,00 USD
Per.unit price: 1.265,80 USD
Price control: V
Inventory value: 6.329,00 USD
In this case the total value of the stock is the same after and before to do the activation of ML. I think that this is good..
And can,t understand the example wich I saw you before.. In that case the Total value of the stock after activation Material Ledger is not the same that before activation..
The material doesn´t have any modification in his unit of measure..
Could you tell me someting about this issue??
Best regards!!
Manuel

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

Transfer Price & Material Ledger

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