Actual Costing-ML

[Former Member]

Sirs

My client wants to activate ML/Actual costing.

Basic configuration steps I know and help is also available on the forum. Here my question is that:

What kind of working discipline needs to be maintained to use these functionality so as to get good results? Also please guide what are the pros and cons of using ML/Actual costing?

Best regards

Shalabh Shastri

[mansoor_khan4 · Accepted solution]

Hi,

Please go through the below link, & let me know if any more quires apart of from this.

Discipline required when using Material Ledger/ Actual Costing

http://scn.sap.com/message/15326883#15326883

The following Decipline need to follow when ML is Active
I	ML is to arrive Actual Costing for SFG/FG Material which is activated for ML (S-3)
II	1st decipline has to be followed @Material Master Level which will address to All ML Activites
III	Every Goods movment will effect to the respective month end to Calculate Actual Cost
	1.All Goods Receipts & Invoice Receipts should puch for respective month
	2.All Production Confirmation & Completion of Order to be happed
	3.All Delivery & Billing to the  respective month should happen
	4.All Sales return has to be moved from returnSTOCK to Unresticted
	5.All FI-Cost has to book to respective Cost Centers
IV	Actualization of Cost (Prices diffrence) will settled to respective product @month end based upon the sales(charge off) has happened
V	Once atcual posting ML activities has happened *No Goods movment will happen "Provided ML will get reversed"

Regd,

Khan.

[Former Member · Accepted solution]

Thanks Mansoor

I would be obliged if you please share the pros and cons of activating ML/Actual Costing.

I have gone through the discipline points but want to know 'in respective month' means what? Transaction should happen in the same month or it can happen after the last date (may be a back dated transaction) but before closing of ML?

Waiting for you response.

Best Regards

Shalabh

[mansoor_khan4 · Accepted solution]

Hi Shalabh,

Transaction in the same month means, normally business will set off the date for ML closing activities...

Let say, we are in Sep 5... (All stock movement related (GR/IR/Delivery/Sales Return/Goods movement Plant to Plant-STO would effect to to "August- month" it has to to be valuate the Auagust Stock ...need to post on or before 31.August........

Once we do ML Closing we could not post in August....

Hope you clear.....

Regd,

Khan.

[Former Member]

Please find the pros and cons

Actual Costing using Material Ledger

Inclusions:

• üActual Costing – Multi-level Periodic Material Prices
• üActual values in Accounting
• üAllows to valuate inventory with multiple valuation methods based on business need.

Exclusions:

xCurrent value of procurement costs is not reflected in price

xRaw material consumption will happen at periodic unit price ( previous months average)

xNo real time price will flow during consumption.

xVariances are not reflected in production order

xRevaluation will only happen at the period end

xBench marking is not possible for decision making

[Former Member]

Hi Rajinder

I would be obliged if you give more clarity on the pros and cons points.

Best regards

Shalabh