Webinar topic presented by Rogerio Faleiros · Updated overview by ERPCorp
Is Material Ledger mandatory in SAP S/4HANA? Does that mean Actual Costing is mandatory too? These are separate questions: Material Ledger is required for inventory valuation in SAP S/4HANA, while Actual Costing remains optional.
This page originally announced a webinar previewing Rogerio Faleiros’ SAP Controlling 2017 presentation. The overview below revisits its key questions with SAP reference materials and links for further learning.
Table of Contents
- Material Ledger Myths and Facts
- Questions from the Original Webinar
- What to Review in Your SAP System
- About Rogerio Faleiros
- Conclusion
- Glossary
- Reference Materials
Material Ledger Myths and Facts
Table 1 separates three common assumptions from the corresponding SAP guidance.
| Myth | Fact |
|---|---|
| Material Ledger is optional in SAP S/4HANA. | Material Ledger is mandatory for inventory valuation in SAP S/4HANA. |
| Mandatory Material Ledger means mandatory Actual Costing. | Actual Costing remains optional. Its activation and period-end processes are separate design decisions. |
| Material Ledger reporting and its data sources are unchanged from SAP ERP. | SAP documents changes to the Material Ledger architecture and the data used in CKM3 Material Price Analysis in S/4HANA. |
Table 1: SAP S/4HANA Material Ledger Myths and Facts
For the distinction between inventory valuation and periodic actual cost calculation, read SAP Material Ledger in S/4HANA: Overview and Actual Costing. For activation and closing considerations, see What Is Actual Costing in SAP Material Ledger?.
Questions from the Original Webinar
The original session announcement highlighted four questions:
- What happened to index and totals tables?
- Which Material Ledger scenarios can still be used?
- Which reports are available?
- Is Material Ledger mandatory in SAP S/4HANA?
These remain useful review questions, but the answers must be tied to the target SAP release and accounting architecture. A discussion prepared for the 2017 conference should be read in its historical context.
What to Review in Your SAP System
Data Sources and Custom Reports
Review custom reports and interfaces that read legacy tables. SAP KBA 2503684: New Design of the Views in CKM3 explains that the S/4HANA Material Ledger architecture changed the process and data origin behind Material Price Analysis. Validate each custom dependency against the relevant simplification and migration documentation.
Available Reporting Tools
Match each reporting requirement to the functions available in your edition and release. SAP provides a feature comparison for Manage Material Valuations and related transactions, including Material Price Analysis.
Actual Costing and Parallel Accounting
Confirm whether the business needs periodic Actual Costing and which currency and valuation requirements apply. Where Universal Parallel Accounting is enabled, SAP documents ledger-specific Actual Costing runs and changes to reporting navigation. Keep those processes distinct from earlier closing designs.
About Rogerio Faleiros
Rogerio Faleiros is an SAP Controlling consultant with implementation experience in food processing, chemicals, construction, and agribusiness. His work includes integrating IFRS requirements with SAP Product Cost Controlling for companies in the United States, Brazil, and Germany.
He holds an MBA in IT from Fundação Getulio Vargas and co-authored Configuring Controlling in SAP ERP. Visit Rogerio’s speaker profile for his background and conference sessions.
Conclusion
The key distinction is straightforward: Material Ledger is mandatory in SAP S/4HANA, while Actual Costing is optional. Reporting, data sources, and supported valuation scenarios need a separate review for the release and architecture you use.
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Glossary
Actual Costing
An optional function for calculating periodic actual material costs from relevant cost differences.
Material Ledger
SAP functionality supporting inventory valuation in multiple currencies and valuation views.
Material Price Analysis
A reporting function used to examine material valuation transactions and price determination results.
Periodic Unit Price
The actual material price calculated for a period through periodic Actual Costing.
Universal Parallel Accounting
An accounting architecture supporting ledger-specific valuation and accounting processes in supported SAP S/4HANA scenarios.
Valuation View
A perspective for valuing inventory, such as legal, group, or profit center valuation, where supported.