WIP costing procedure and Material ledger

Dear all,
we are using 4.7 release and it has been asked to implement WIP in our company.
I would like to have some information regarding the activation of WIP in production orders for product costing and the impacts on Material Ledger.
Thanks in advance
Andrea

Similar Messages

Difference between normal Costing run and Costing run in Material Ledger

Hi everybody,
I have a question i wanted to know why we implement Material Ledger .
If material ledger is for settling variances on material then that is also possible without material ledger
Please clear the doubt what is different in ML as compared to normal costing run
thanks in advance
Regards
Deepa

Costing run is to calculate the std cost estimate of materials and Material Ledger costing run is to calculate Actual cost of production of materials.

Difference between Material Master and Material ledger

Can anyone tell me the difference if any between Material Master and Material ledger and its usage and interlink with SAP modules.
Thanks for your time
suresh arya

Hi Suresh,
The application component Actual Costing/Material Ledger fulfills two basic objectives: The ability to carry material prices in multiple currencies/valuations, and actual costing.
The material master records are all information your company needs to manage a material is stored in a data record in the material aster, sorted by various different criteria.
For more information regarding the functionality, you can see in path below, help SAP...
Material Master data:
http://help.sap.com/saphelp_47x200/helpdata/en/03/abb8f85fbe11d396a600a0c930e0da/frameset.htm....
Material ledger:
http://help.sap.com/saphelp_47x200/helpdata/en/a2/5cd63835e211d38a710000e83234f3/frameset.htm..
Regards,
Paulo

Make to Order for configurable Material Costing Procedure and Stage Trans.

Hello, PP Gurus,
I am doing one MTO for configurable Material.
For each sales order I am preparing Production order so when the costing should caried out?
What is the Order settlement & closing procedure?
how the cost is tranfered to the Sales orderand cost transfer is possible
Please inform me Costing procedure in this scenario and transaction.
Thanks & Regards,
Bhavik Dangi.

Hi,
You can use variant configuration for selling the colored fabric. Use the basic fabric as raw. and maintain variant configuarations to have many variants.
Please use strategy 25. When you run MRP the planned orders will be generated and will be assigned to the sales orders. You can see it on the account assignment tab.
In material master pleasse maintain Individual collective requirement indicator to 1-individual in the MRP-4 view.
Then the stocks will be reserved to the specific sales orders.
Thanks and regards
Murugesan

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

Creating freigth cost document and material document

Dear all,
when creating a freigth cost document the system automatically generates a service entry sheet, and a material document with its accounting document. This is standard behaviour.
When creating freigth cost document we've activated user exit V54C0001 so that field 'Description for reference' (VFKP-POSTX) is populated with outbound delivery number (instead of transport number). We need to know how could we automatically fill field 'delivery note' (LFSNR) in material document with that number.
Best regards
Joana Trigo

Hi
So the material document should be linked to the delivery
The document flow:
Delivery->Outgoing moviment->Delivery->Bill->FI invoinces
If you start from FI:
- Get the bill number from header data: BKPF-AWKEY
- get the delivery number from bill item VBRP-VGBEL
- get the document flow for the delivery: VBFA: here you can find out the material document
Max

How to find overhead costs(labor and material) for report based on ck13n

HI.
i am creating a report based on ck13n...
i need to display labor costs.
overhead costs.
material overhead costs for all assemblies (sub assembly as well as final assembly)..
how do i proceed with it

You can use information under itemization for cost estimate display. under itemization cost estimate are normally displayed (if configured) as break between materials, labour and other cost. I ope this helps

Effect of Activating Cross company costing in Material Ledger

Hi all,
We are live with ML from seven years and now we want to activate cross company costing. I would like to know if there will be an impact of this in the material ledger side. If anyone has comeacross this situation please share your ideas about this.
Thanks,
Santosh

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.
When I am doing standard cost estimation for IN01 with group costing variant for group valuation, I am getting error "Object was not costed", but where as If I use standard costing varaint ( PPC1), I am not getting any error, system is showing correct standard cost estimation?
Where as If I use group costing variant for other company codes, I am not getting any error.
Is there any customizing missed regarding standard cost estimation, when material ledger is activated?
regs,
ramesh

Material cost estimate and mateiral cost estimate with quantity structure

Hi sap guys,
What is the difference between material cost estimate and material cost estimate with quantity structure

Hi
Both are in one way the same.
Material cost estimate can be calculated as
1. Material with quantity structure
2. Material without quantity structure
You can get more insight into it at the following link
http://help.sap.com/saphelp_47x200/helpdata/en/7e/cb938143a311d189ee0000e81ddfac/frameset.htm
Regards,
Suraj

Material ledger and cash journal

In a company code where and how do I check whether cash journal and Material Ledger is activated or not?

In fbcjc0 check whether any business transactions are set up or not in respect of your company code or not.

CKMLCP - Zero-stock Product Impacts Material Ledger

Dear experts,
We've executed a monthly costing run using material ledger. It's run smoothly every month but, at this time, the system selected a material which stock quantty is zero, that hasn't had any movements since last year and hasn't been changed (material master) either.
Now system says we need to perform the closing entry in the previous period but what guarantees it won't keep saying it until the last run when the price was calculated for this material?
Why only now it was selected and how to avoid this material to be considered?
Best regards, Marcos.

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 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

Material ledger concept

Hi co experts,
Kindly explain the material ledger concept in product costing
Regards
venkataswamy

Hi
Material Ledger Overview
You want to perform actual costing for materials.
You want to carry your material stock in multiple currencies.
You want to valuate your material stock each posting period.
You are active as a corporate group in several countries and you use multiple valuations.
Actual Costing uses the Material Ledger to store material prices in up to three currencies and according to three valuation strategies (group, legal and profit center).
Actual Costing aims to provide the actual costs for each material at period close. Each material movement is recorded in the Material Ledger together with the preliminary valuation and any variance (from invoice or order settlement). Material settlement is used to integrate this variance into the material price at period close.
Both single -level and multi-level material settlement are available. Multi-level settlement is used to reconstruct the quantity structure based on the material movements for the period, and assign variances for the raw materials to the finished and semi-finished products as follow-up costs.
The actual price for each material can be updated to the material master for the closed period.
Regards

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

Why material ledger reversed?

hi sap experts.
in our compony, at the last of month when we run transaction ckmlcp and material ledger document create at the same time another document is created that have the same type of material ledger document , just reversed acounts , why this happen?
can any body help me plz?

Much appreciate you help and points are assigned!
To Rahul Tyagi:
What is prd referring to?
Is there any possibility that we reverse everything both MIRO and MIGO documents in the PO while ensure the final LC amount in PO is reversed to zero?
The user changed the following things in PO
changed Net Price from 1 to 100 AUD
changed Scheduled Quantity for 3 times with different amount respectively
changed PO quantity for 3 times with different amount respectively

WIP costing procedure and Material ledger

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