Material Ledger Capabilities

[Former Member]

Hello All,

We are planning on using Material Ledger for the second phase of our project. The main reason for using it is for Multiple currency valuation and not for actual costing.

Following are my questions

Can we use ML only for multi currency valuation and not for actual costing

Can we activate it for certain valuation areas and not for the others

If the best practice is that you need to turn it on for all the valuation areas, then should we turn it on in the initial roll out without waiting for the for the Brazil implementation. If the best practice is that we should turn it on later on how will this affect the Material Valuation for all the Valuation areas that are already live without ML.

Thank You

[Former Member]

Hi,

You CAN switch on just Material Ledger and carry inventory values in upto 3 currencies/valuation types. There is no requirement to switch on Actual Costing or running the Actual Cost run at month-end to determine the "MAP" for the period.

After you switch on ML (not Actual Costing), you can, in addition, choose option 2 (transaction-based price determination) and have the option of setting the price control for materials as Standard Price or MAP.

Alternatively, you can set it to Option 3 (Single/Multi-Level Price Determination) and only have single-level price determination for the material. Your price indicator MUST be set to "S" in this case.

By not activating Actual Costing, you will miss out on Multi-Level Price Determination and you won't be able to Actual Cost your materials. But if that is the business decision, it makes perfect sense. Like I said, it is not mandatory.

You can switch on ML for any Val Areas that you need and as and when you need it. This applies whether you switch on Actual Costing or not. However, the system will only start carrying inventory in the other currencies after the switch on... so that is a business decision.

Hope this helps.

Cheers.

[Former Member]

I have a question on ML. We want to use Periodic Unit Price (PUP). To do this we need to turn on the material ledger. This company only has 1 currency. According to SAP ML must be turned on to use PUP. Is there any other way of getting to PUP without turning on ML? It seems like it will cause more problems than it is worth. Is there a better way?

Thanks,

Rashad

[Former Member]

Yes, ML needs to be activated to calculate PUP. Option 3 in ML.

[former_member740051]

Hi,

If you implement ML, you will have only one more currency valuation more. Thats all. Do you want to implement ML only for that. I think, that purpose can be achived through some reports with abaper's help.

1. You can use ML for multicurrency valuation, but you need to follow all the ML closing activities every month with out miss. Otherwise, it is not possible to post entries in next month.

2.You can activate only for some valuation areas. ( T code OMX1). It is not mandatory that, every valuation area should be implemented with Materail Ledger.

3.We can implement ML seperately any point of time. It is not mandatory that, while doing implementation of other modules this has to be even implemented.

Hope, it helps!

[Former Member]

ML allows material valuation in 3 currencies- I know this. This cannot be achieved by any abaper as I know and without ML, SAP limits invetory valuation by the company code currency only. I am talking "inventory valuation" and not statutory reporting.

My question really is not around how many currencies but around whether ML can be used only for multi currency and not for actual costing- in which case we do not need to calculate PUP (periodic Unit Price) and thus the long month end cycles.

[Former Member]

Hello

ML can be maintained for 3 parallel currencies- legal, group and profit center valuation.

ML can handle actual costing process to roll up price difference and exchange diff on material posting to next level or levels as per the ending inventory and consumption proportionately

the price diff will be adjusted to material revaluation accounts in month end and next month(first day of next month) the same will be reversed.this is system setting in actual costing process

Regards

Dinabandhu

[Former Member]

Thanks Dinabandhu. Can ML be activated to handle inventory valuation in multiple currencies only and not for actual costing?

[varadharajan_krishnamoort]

Hi Andy,

The answer for your question is big "Yes". ML can be used only for multi-currency valuation only. ML can be activated for multi-currency valuation alone.

The point to be noted in that case mostly you would be using Group currency as your other currency and Group currency is defined at Client Level in the client profie.

It is further suggested that you use 30 - group currency as your controlling area currency in such a scenario.

One more point is that if you are looking for implementation at Brazil, I trust that you need to implement actual cositng and other country specific features of actual costing features for local statutory compliance.

Hope this helps you.

Thanks & Regards,

Varadharajan

[Former Member]

Thanks Varadarajan, this asnwers my question.

[Former Member]

Varadarajan,

One more question: Can ML be activated/ implemented for certain Valuation Areas only and not for the others.

Can Multicurrency valuation activated for certain valuation areas , actual costing done for certain other valuation areas while no material ledger activation for the remaining valuation areas.

Thank You,

Nagendra