![]() ![]() If multiple valuations are not used ML just store the material prices/stock values in up to 3 currencies Profit center valuation/ Comp code currency ![]() If multiple valuations are used ML valuates the materials in up to 3 valuation views with 2 currencies ![]() In order to used Multiple Valuations ML must be implemented. Material ledger with Or without Multiple valuations It allows the client to manage its inventory in three currencies which is previously (when Material Ledger is not activated) being manged in only one currency with legal valuation. Material Ledger is a tool used to manage your inventory in multiple currencies and/ or perform multiple inventory valuation. In S4/HANA, there are no changes in the Actual Costing process it is remain optional to client whether to use this functionality or not as in SAP ECC. S4 HANA Simplifications for Actual Costing: So, if you decide to use 2 and V then the purpose of ML would only be for parallel valuation (not for actual costing). If with ML active you use price determination 2 then you can have both standard and moving average price (S or V) but cannot do inventory valuation at actual costing (PUP). ![]() If ML is active with price determination 3 and you have already performed transactions to the material during the current period the costing release (CK40N or CK24) of Standard price to material is not allowed. (PUP is used for Valuation in the closed period) If ML / Actual Costing is active the following Price determination setting can be done in Material Master of material. The figure below shows the process and entries for Production Variance with Material Ledger/ Actual Costing, The figure below shows the process and entries for Production Variance without Material Ledger/ Actual Costing, After the period is over and you run your CKMLCP you can decide in the closing entries if you want to revalue the inventory (of last month) by the periodic unit price. You can mark and release your cost estimations from CK40N as standard price to be used during the period. The only decision to be made is, what price you use for material valuation. Standard costing and actual costing can run completely separate from each other without any conflicts. It includes all the actual prices for material in particular period.Īctual Costing Run (CKMLCP) is the month end activity, which is used to valuated the inventory in balance sheet at actual price (PUP- Periodic Unit Price) by calculating and posting Production variance during the month on the Material which was previously maintained at Standard Price (calculated from CK11N) in balance sheet. In this blog, I have tried to explain this functionality in detail with example (mainly Actual Costing).īasically Material Ledger/Actual Costing are the two separate functionalities which are inter-dependent and are incorporated in the SAP Controlling module which are discussed below.Īctual Costing is functionality provided by SAP to calculate actual prices i-e PUP (periodic unit price) of inventories/ valuated material including Raw Material (ROH), Semi- Finished Good (HALB) and Finished Good (FERT). Material Ledger/ Actual Costing is one of the complex tool provided by SAP to manage its inflows and outflows of core manufacturing related materials in multiple currency and valuations. ![]()
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