What are the benefits to use the Actual Costing - Material Ledger ?
The application component Actual Costing/Material Ledger fulfills two basic objectives: the ability to manage material prices in multiple currencies/valuations, and the actual costing functionality.
The aim is to combine advantages of both the moving average price and the standard price, to calculate the accurate actual price and to distribute price differences and follow-up costs.
The benefits of the different valuation methods S price / V price are combined:
S price -> Stable price for controlling purposes.
V price -> Actual price for valuation purposes.
The following functionalities are provided:
- Inventory Valuation at actual prices.
- Actual Costing: Actual Price calculation and multilevel.
- Transparency of value chain.
- Parallel Currencies and parallel valuation.
- Actual Price Cost Component Split
Customizing Material Ledger
- Basic settings for the Material Ledger in customizing
There are some basic settings for the Material Ledger in customizing:
- Activate Valuation Areas for Material Ledger: If the material ledger is active for a particular valuation area, all materials in the valuation area are valuated using the material ledger.
- Assign Currency Types to Material Ledger Type and Assign Material Ledger Type to Valuation Area.
You specify which currency types are used separately in the different applications. It is important to make sure that the settings in Financial Accounting, Controlling, and the Material Ledger harmonize with each other.
There is no possibility to change the currency type with the Material Ledger already active. The currency in T000-MWAER must remain the SAME after the ML-startup program. If you change it later you have inconsistent data. In the case of you are working with a test system, you must deactivate the ML, and then you must run the startup program again with the currencies you want to work with. Take into account that the deactivation means: Running report SAPRCKMJX, and this report DELETES all ML-data. Check the KBA 1511335.
- Define Material Update Structure and Assign to a Valuation Area.
In the standard system, the categories in the material update structure 0001 are so defined that the valuation price during material price determination corresponds to the weighted average price - the sum of the beginning inventory and the prices of all receipts of the period.
During the material ledger update, data is collected from valuation-relevant transactions (for example, goods receipts, invoice receipts, settlements of production orders) in different categories in the material ledger according to the material update structure.
The influence that these transactions have on the valuation price during material price determination depends on the category in which they are collected. The following categories exist:
- Other receipts/consumptions
A receipt always has an effect on the valuation price.
If you are working with the update logic in the standard system, the material stock in the closed posting period is valuated with the weighted average price- - the sum of the beginning inventory and prices of all receipts in the period.
If this logic meets your demands, you do not have to edit this section. The system automatically uses material update structure 0001.
- Define and Assign Movement Type Groups of Material Ledger: Setting up the Material Ledger Update of Goods Movements for Revaluation of Consumption if you want to adjust the single-level consumption values in actual costing with the periodic unit price in all value records, if the Revaluation of Consumption step is run.
The price differences allocated to the category Consumption are allocated to the individual consumption alternatives in proportion to quantities consumed.
Check the related wiki: https://wiki.scn.sap.com/wiki/x/yqw0Gg
- Transaction CKM9: Display of ML relevant customizing settings.
- Transaction CKM9 with the option 'Display Accounts': the accounts for each ML relevant transaction type and corresponding valuation class are displayed.
- Remember!: activate Actual Costing in customizing to enable multilevel and actual costing functionalities. Check CKM9 for the plant.
- If you are using SAP Retail Solution and you need to enable Material Ledger for plants in company codes without Retail Soluction activated please check the note 1955551.