VPRS Cost in Material Ledger

hi all,
i have some problem here.
we use 2 local currency. first local currency is IDR, and second local currency is USD.
our client use material ledger, so in material master accounting 1, we maintain 2 value of inventory (in IDR and USD)
let say we create material XXX (using standard price) in 01 jan 2011 , with IDR value 1,000,000. the system will convert to USD with exchange rate in 01 jan 2011 (which is 10,000). so the USD value will be 1,000,000/10,000 = 100 USD.
then in 10 january 2011, Sales order is created for material XXX with document currency USD .
cond type VPRS get 1,000,000 IDR and covert to doc Curr (USD) with exchange rate in 10 jan 2011 (which is 9,000).
so the VPRS value in USD will be 1,000,000/9,000 = 111,11 USD.
by this case, the VPRS value in sales order is DIFFERENT with value in Material Master. it also become a problem when we want to see PROFIT MARGIN.
can cond type VPRS get the correct USD value according to Material Master?
thanks.
Best Regard,
Hendry

Please check the following notes which may help you
a) Note 547570 - FAQ: VPRS in pricing
b) Note 640692 - Currency conversion VPRS
c) Note 1365939 - VPRS logic and Customizing settings in SD
thanks
G. Lakshmipathi

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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')?
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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.
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thanq for reply.
IF I can update standard price in 3 views, how can i see three standard prices in different views?
I am facing another problem also here.
we have 3 company codes and 3 plants like VN01,SG01,IN01.
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Dear Experts
I want to copy the actual cost of period 1 to be standard of period 2.
I did the following activities:
1- I run all steps for standard cost estimates for year 2012 and released the standard cost estimate for periods 1-12.
2- On January 2012, I did all steps in CKMLCP up to post closing. This is done mid night 12:01 (01.02.2012).
3- I run marking CKMPRPN, I checked "Manual Date" 01.02.2012 and in "Rule Maintenance" I selected "Perioic unit price in previous period. There was no error but when I check MM03 for a specific material there is nothing in coulumn "Future Price"
4- I run CKME and got error "C+811"
Please advise how to copy actual PUP to be standard of next period.
Regards
Ahmed Zain

Dear Maria
Taking all the above contribution in consideration, they are valuabe. Yours has hit my direct problem. I need the following calrifications, please :
1- In CKMLCP is it a must that marking and release of PUP takes place after "Post Closing Step" or I need to do them right away after "Revaluation of consumption step" , then do post closing? in other words, does the PUP will be calcuated after this step b"Revaluation" and can be subject to carry forward for next period. If this is true then we can select manually the next period and do the post closing.
2- My understanding to note 666681 is that, by the end of current period "Feb, 2012", I do all CKMLCP steps up to post closing, then I mark PUP - select manual date 01.03.2012 ( correct me whether it will be 01.03.2012 or 01.04.2012). If I check MM03 for any material I can see PUP in Future colunmn in costing 2 view. By the end of Period 3, I will run CKME for the marked PUP and so on...
Your torsh is required to throw more light in this corner, please
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Ahmed

Material Ledger,Revaluation Production Cost Center ,Standard Cost

Hi, I have a problem with revaluation of production cost centers.
Firstly, production cost center expenses are settled via activity types onto the production order at the end of the period. However, CKMLCP revaluate cost centers after the settlement because of using standard price. So cost centers at the end of the period have some amount.
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Thanks.
Message was edited by:
Ergul Taslacioglu

Hi
Go to the following path in SPRO:
Controlling -> Product Cost Controlling -> Actual Costing/Material Ledger -> Actual Costing -> Activate Actual Costing. Double-click on "Actiavte Actual Costing" and change the indicator from "2" to "1".

Actual Costing concept in Material Ledger

Hi
Masters , can any body please explain the concept of Acutal costing in material ledger i think that involves the following steps:
1 Activate actual costing.
2.Define userdefined names for receipts and consumption
3.Assign user defined names for receipts and consumption /
for the above 2 and 3 points what is the purpose we have to define and assign user defined names in coantrolling level selecting the B+ Procurement and V+ Consumption.
thanks in advance

Hi,
Actual costing is a huge concept. It is difficult to explain the concept in few words
Please go through the following link for detailed informaton:
http://help.sap.com/printdocu/core/print46c/en/data/pdf/COPCACT/COPCACT.pdf
Configuration Points:
Path: IMG>Controlling>Product Cost Controlling --> Actual costing/Material Ledger
1. Activate Material Ledger for valuation areas
2. Assign Currency types to Material Ledger Type
3. Assign Material Ledger Type to Valuation Area
4. Configure Dynamic Price Changes
5. Define Material Update Structure
6. Assign Material Update Structure to a Valuation Area
7. Activate Actual Cost Component Split
8. Activate Actual Costing
Coming to your Questions 2 and 3. they are required to be created if you want your own Controlling level for transactions that you would like to differentiate in the material ledger, further than the standard system offers. Normally we don't use unless there are some specific business requirements
Some key points would be:
ML records all receipts, consumptions and variances for each material.
ML gives overview for each material of the starting balance, receipts, consumption, variance and ending balance.
ML calculates the actual cost for each material u2013 finished goods, packaging.
If a material has BOM, variances of lower levels are rolled up to next higher level up to finished goods, to calculate actual cost for raw material, semi finished & Finished goods in ML as unit price.
Calculated actual cost at end of month can be used as standard price for next period in the material master.
SAP MM is on standard price based costing, ML can do monthly average costing.
Direct settlement of all kind of price differences / exchange rate difference/ to materials at the end of the period.
Once activated , it is not that easy to deactivate although possible with implications like not having historic data.
Cannot be used in isolation : All the plants within the company code shall be material ledger active.
Material Price change is not possible after first transaction in that period.
Using material ledger, inventory in US plant in Canada will be available in USD and CAD
Hope this would help you.
Best Regards
Surya

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Hello,
I have same problem with actual costing in material Ledger.
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Hi Rafal,
there is a functionality built into acual costing to cover this:
[WIP Revaluation |http://help.sap.com/saphelp_erp60_sp/helpdata/en/9e/9e7a74681f1d4f9ba6f5d64aba4a44/frameset.htm]
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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 .
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*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

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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.
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Hi,
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Cheers.

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Hi
I have a situation where Material are using 2V and the material inventory left with some price difference .
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Before MIRO we have issued the stock to Project . In one of the material the price diff of 0.50$ was absorbed by the consumption to Network where as another material left with Price Diff which is causing a diff in GL and Inventory Values .
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Vijay

Hi,
First of, thanks for the valuable information.
We are getting ready to activate actual costing.
Material ledger has been active for quite some time now (multiple fiscal years), with all materials activated at standard (S) and price determination "transaction based" (2). Costing runs are only run on a yearly basis.
I am currently establishing my conversion plan.
I believe I have all the necessary steps identified (exception made for one little clarification) and am still working the timing.
A couple of questions:
1. Should I update my materials with a price determination value 3 before or after my configuration is imported in production? I understand that the configuration will really fall in place at the time I run actual costing at month end (CKMLCP) but I am wondering if there is any dependency with the price determination update (2 to 3) from a timing/sequence standpoint.
2. Is it necessary to run, mark and release a cost estimate right after the price determination has been changed (from 2 to 3) and before any goods movements take place or does updating the price determination to 3 is sufficient to support actual costing at month end (i.e. is the cost estimate in existence with a price determination 2 sufficient)?
3. Any particular aspects/steps I should pay attention to as far as going live with actual costing? In general, what would be the ideal sequence of events?
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Regards.

Setting Material Ledger to Productive

All,
How do I set the material ledger to productive for a given plant ?
The accounts are all setup and everything is fine in transaction OMX1
(the active material ledger is checked for the plant\valuation area)
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How do I make it productive ?
Thanks,
Mark

Dear Mark,
After installing the Material Ledger it is necessary to run a transaction to define the Material Ledger as productive for a valuation area.
Note: Once defined as productive, the material ledger cannot be deactivated. This procedure must be executed only when there are no material movements for the period. Also, if there are material master data for production related materials (material types ROH, HALB and FERT) already in the system they must have a standard price registered .
Prerequisites:
To install the Material Ledger/WIP functions is also necessary that the extension EA-FIN (Financials Extension) has been activated. To check if this extension is active use the following path: IMG > SAP Customizing Implementation Guide > Activation Switch for SAP R/3 Enterprise Extension Set
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Reward points if it helps.
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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).
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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.
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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.
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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 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 Active - K088 Settlement doesnt use Actual Cost Comp Split

Production Order quantities are all scrap (in confirmation) thus order balance contains Consumed Materials and Activity Allocation
When KO88 Settlement is run, the system uses Standard Cost Component Split to allocate the residual to Cost Components instead of the Actual Cost Component Split
When we run the flow trace, the message says:
"Splitting according to output material S-Price CCS"
Expectation was that costs would flow according to Actual Cost Component split.
There is note 756167 - This note activates the update of the actual cost component split information in the material ledger document when you perform the order settlements.
However current release is 604, so its expected that this is already applied.
Any help or insight on how to settle using Actual Cost Component split is appreciated.
Edited by: Chris Gibson on May 5, 2010 8:57 PM
Edited by: Chris Gibson on May 5, 2010 8:59 PM

The second option you mentioned of using separate value field for transferring the standard cost component split from the actual cost component split is the way SAP designed this integration between CO-PA and the Material Ledger. But 40 value field for cost component split is excessive. CO-PA allows up to 120 value fields maximum, so I agree it does not seem prudent to use 80 of them for this purpose.
I suggest you reexamine the level of detail you think may be needed in CO-PA and try to use CO-PC reports at the cost element level to report on more detail. Keep the CO-PA view more aggregated and you can stick with the standard solution for comparing standard to actual costs in CO-PA.
Best regards,
Jeffrey Holdeman

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