by Paul Ovigele
This all-in-one book helps you set up the SAP Material Ledger, run it smoothly, and configure key settings for currency conversion, ledgers, and valuation views.
We set up and run actual costing, group valuation, profit center valuation, parallel cost of goods manufactured, and balance sheet valuation.
We walk through special scenarios and execute reports to monitor material value flows.
Table of Contents
- Chapter 1: Introduction to Material Ledger in SAP S/4HANA
- Chapter 2: Configuring Currency Types, Ledgers, and Valuation Views
- Chapter 3: Group Currency and Valuation
- Chapter 4: Profit Center Valuation
- Chapter 5: Configuring Actual Costing
- Chapter 6: Actual Costing Run and Analysis
- Chapter 7: Actual Costing and Peripheral Transactions
- Chapter 8: Parallel Cost of Goods Manufactured
- Chapter 9: Balance Sheet Valuation
- Chapter 10: The Material Ledger and Peripheral Applications
- Chapter 11: Reporting
- Chapter 12: Conclusion
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Chapter 1: Introduction to Material Ledger in SAP S/4HANA
This chapter explains how the Material Ledger evolved from SAP ERP to SAP S/4HANA.
We discuss two new tables in SAP S/4HANA and why the SAP Material Ledger is mandatory for inventory valuation.
Chapter 2: Configuring Currency Types, Ledgers, and Valuation Views
This chapter explains the new approach for defining parallel currencies in the Universal Journal and how these currencies are integrated with valuation views and management accounting/controlling versions. We introduce single valuation and multi-valuation ledgers and discuss each feature.
Chapter 3: Group Currency and Valuation
SAP S/4HANA improves transparency into the actual cost flow and transfer prices. This chapter explains how to set up and use transfer pricing with group valuation in the Material Ledger for standard and actual costs.
We demonstrate an intercompany purchase and sale and show how the intercompany profit is eliminated in the group valuation view.
Chapter 4: Profit Center Valuation
This chapter explains the transfer pricing process using profit center valuation. It examines the business case for using profit center transfer pricing, including how to use this functionality with both standard and actual costs.
This chapter further demonstrates how a markup is added in the profit center valuation view when a sale occurs between two profit centers.
Chapter 5: Configuring Actual Costing
This chapter discusses the actual costing configuration steps, such as defining and assigning material ledger types, updating structures, and defining the actual cost components.
We also explain the configuration of the accounts posted with actual costing.
Chapter 6: Actual Costing Run and Analysis
This chapter explains actual costing in SAP S/4HANA and the changes to the data flows and closing process. We also describe how to analyze the Material Ledger's actual costing calculation postings, with material price analysis and valuated quantity structure transactions.
Chapter 7: Actual Costing and Peripheral Transactions
This chapter describes peripheral transactions that impact actual costing, such as changing the standard cost during the month, debiting or crediting a material directly with Transaction MR22, distributing consumption variances, and changing the actual cost component split.
Chapter 8: Parallel Cost of Goods Manufactured
This chapter discusses how the parallel cost of goods manufactured by COGM is used to calculate an alternative activity rate for a different accounting principle and how this parallel activity rate is used to calculate a different actual cost at the end of the period.
Chapter 9: Balance Sheet Valuation
This chapter explains the basic process of balance sheet valuation and discusses the methods of valuing inventory: first-in, first-out FIFO and last-in, first-out LIFO.
We demonstrate how AVR's alternative valuation run can recalculate the balance sheet value.
Chapter 10: The Material Ledger and Peripheral Applications
This chapter explains specialized scenarios, such as split valuation, make-to-order MTO, daily actual cost, stock in transit, and also highlights the flexibility that can occur when using the SAP Material Ledger in these situations.
Chapter 11: Reporting
This chapter explains reporting and analytics in Material Ledger in SAP S/4HANA with Transaction CKMLCP. It introduces the relevant SAP Fiori apps, including the Trial Balance app and several Material Inventory Values apps. It discusses other traditional reporting options, including drilldown reports and ABAP List Viewer ALV reports.
Chapter 12: Conclusion
We summarize the book and areas for future innovation in the Material Ledger in SAP S/4HANA.
Click HERE to pick up a copy of Paul's 2nd edition book for all the SAP Material Ledger details.
Want to know more about the Material Ledger and other advanced SAP topics?
Meet Paul Ovigele, many SAP Experts, and attendees at the SAP Controlling Conference.
CLICK HERE to learn more.