ERPCorp SAP FICO Blog
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By John Jordan
Actual Costing in SAP Material Ledger enables organizations to calculate the actual cost of materials by collecting and allocating price differences incurred during a period. These differences can arise from purchase price variances, production variances, and other inventory-related transactions.
At period-end, Actual Costing calculates a periodic unit price (PUP) that reflects the actual costs of procuring and producing materials. This provides greater transparency into material costs, inventory valuation, and cost of goods sold.
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By John Jordan
SAP Material Ledger period-end closing calculates actual material costs when Actual Costing is active. In an SAP S/4HANA actual costing run, use CKMLCP to review how price differences are allocated and rolled through production levels before posting the closing entries.
This guide explains when a run is needed, how single-level and multilevel price determination differ, and what to reconcile before you complete the close.
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By John Jordan
In SAP S/4HANA, materials are typically valuated using either Standard Price (S) or Moving Average Price (V). The appropriate price control depends on the type of material and how you want inventory price differences to be handled.
Standard Price keeps current-period valuation stable and records relevant differences separately. Moving Average Price adjusts the inventory price as valuation-relevant receipts and invoice differences change stock value. This guide compares the posting effects and explains how each method relates to Material Ledger and optional Actual Costing.
Read more: SAP Standard Price vs. Moving Average Price in S/4HANA
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By John Jordan
What Is Purchase Price Variance in SAP?
Purchase Price Variance (PPV) in SAP S/4HANA occurs when the actual procurement cost of a material differs from the price used to value the material. For materials using Standard Price (S), differences between the standard price and goods receipt or invoice receipt values can be posted to price difference accounts. A purchase order alone normally does not create an FI price-difference posting.
Analyzing PPV helps Purchasing identify the causes of procurement cost variances, including changes in supplier prices, purchase order prices, freight costs, exchange rates, and invoice prices. Assigning PPV to Purchasing also provides greater visibility into the materials and transactions driving those differences.
Read more: SAP Purchase Price Variance (PPV): Posting and Analysis in S/4HANA
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By Stoil Jotev
Different fiscal year variants can complicate parallel valuation in SAP S/4HANA Asset Accounting. This article explains a 4-4-5 versus calendar-year example, the additional representative ledger approach, and its implications for depreciation reporting.
Release scope: Stoil Jotev’s original example describes the approach associated with SAP Note 2220152. Newer scenarios, including Universal Parallel Accounting, provide different support for alternative fiscal year variants. ERPCorp has added the release guidance below; confirm the supported design for your SAP release and deployment before applying the example.
Read more: Fiscal Year Variants in SAP S/4HANA Asset Accounting
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When a goods movement posts to an unexpected G/L account, start by tracing the transaction that generated the posting. The movement type is one part of the explanation; material valuation, organizational settings, transaction keys, and account modifiers also affect SAP MM-FI account determination.
This practical checklist helps you investigate missing account assignments, unexpected inventory accounts, and consumption postings in SAP ECC and SAP S/4HANA on-premise or Private Edition. For the configuration fundamentals and a broader posting reference, read our SAP MM-FI Account Determination: OBYC Guide.
Read more: SAP MM-FI Account Determination: Troubleshooting Postings
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Introduction
SAP MM account determination controls how goods movements in Materials Management (MM) automatically generate postings in Financial Accounting (FI). It ensures that inventory receipts, goods issues, and material consumption are recorded in the appropriate general ledger (G/L) accounts.
Transaction OBYC is used to configure automatic account determination in SAP ECC and SAP S/4HANA on-premise and Private Edition. The system determines the appropriate G/L accounts using transaction keys, valuation classes, account modifiers, and other configuration settings.
For a valuated goods receipt of stock material against a purchase order without account assignment (movement type 101), SAP typically debits inventory and credits the Goods Receipt/Invoice Receipt (GR/IR) clearing account. Price differences can create additional lines. When materials are issued to a production order using movement type 261, SAP credits inventory and debits material consumption.
This article explains how SAP MM-FI account determination works, including OBYC configuration, transaction keys BSX, WRX, and GBB, valuation classes, and the accounting entries generated by common movement types.
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By John Jordan
SAP Note 552486 covers frequently asked questions about Product Cost Controlling (CO-PC). This article focuses on two troubleshooting questions from Tip 100 of 100 Things You Should Know About Controlling with SAP, second edition.
Learn what to check when a costing run in CK40N reuses a cost estimate and how to investigate unexpected results in a Cost Object Controlling report using RKACSHOW.
Read more: SAP Product Cost Controlling FAQ: CK40N and RKACSHOW
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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.
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By John Jordan
How SAP Internal Order Budgeting Works
SAP Internal Order budgeting allows you to define approved spending limits for an Internal Order and monitor costs against those limits. Budgets can be maintained at an overall or annual level, depending on the requirements of the organization.
Availability control monitors actual costs and commitments against the available budget, subject to the configured checks and exclusions. When defined tolerance limits are reached, SAP can issue warning or error messages to help prevent spending from exceeding the approved budget.
Read more: SAP Internal Order Budgeting and Availability Control