{"id":666,"date":"2018-10-16T19:03:34","date_gmt":"2018-10-16T17:03:34","guid":{"rendered":"http:\/\/agil-on.com\/?p=666"},"modified":"2020-12-28T15:31:27","modified_gmt":"2020-12-28T14:31:27","slug":"faq-sap-material-ledger","status":"publish","type":"post","link":"https:\/\/agil-on.com\/en\/faq-sap-material-ledger\/","title":{"rendered":"Q&#038;A SAP Material Ledger"},"content":{"rendered":"<div style=\"padding-top:0px;\t\r\npadding-right:0px;\r\npadding-bottom:0px;\r\npadding-left:0px;\r\nmargin-top:0px;\r\nmargin-right:0px;\r\nmargin-bottom:0px;\r\nmargin-left:0px;\"><a href=\"https:\/\/twitter.com\/AgilonGmbh\" class=\"twitter-follow-button\" \r\n\t\t\t\t\t\tdata-show-count=\"false\"\r\n\t\t\t\t\t\tdata-lang=\"autoLANGauto\"\r\n\t\t\t\t\t\tdata-width=\"250px\"\r\n\t\t\t\t\t\tdata-align=\"left\"\r\n\t\t\t\t\t\tdata-show-screen-name=\"true\"\r\n\t\t\t\t\t\tdata-size=\"medium\"\r\n\t\t\t\t\t\tdata-dnt=\"false\">\r\n\t\t\t\t\t\tFollow @AgilonGmbh <\/a> <\/div>\r\n\t\t\t\t\t\t<script>\r\n\t\t\t\t\t\t!function(d,s,id) {\r\n\t\t\t\t\t\t  var js,fjs=d.getElementsByTagName(s)[0];\r\n\t\t\t\t\t\t  if(!d.getElementById(id)) {\r\n\t\t\t\t\t\t   js=d.createElement(s);\r\n\t\t\t\t\t\t   js.id=id;js.src=\"\/\/platform.twitter.com\/widgets.js\";\r\n\t\t\t\t\t\t   fjs.parentNode.insertBefore(js,fjs);\r\n\t\t\t\t\t\t  }\r\n\t\t\t\t\t\t}\r\n\t\t\t\t\t\t(document,\"script\",\"twitter-wjs\");\r\n\t\t\t\t\t\t<\/script><\/p>\n<p class=\"p3\"><span class=\"s1\">In this post we want to share questions frequently asked before and during the implementation of SAP Material Ledger.<\/span><\/p>\n<h2 class=\"p3\"><span class=\"s1\"><b>Q: What are the use cases for Material Ledger?<\/b><\/span><\/h2>\n<p><span class=\"s1\">There are following main reasons why companies consider Material Ledger as a necessary functionality for their business: <\/span><\/p>\n<ul>\n<li class=\"p3\"><span class=\"s1\">they want to valuate material stock in multiple currencies and\/or with different valuation prices at the same time, according to different valuation approaches &#8211; IFRS, US GAAP, other local GAAP etc.<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">they want to valuate material stock at actual prices<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">they want to determine alternative costs and results based on alternative prices not used for stock valuation<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">they want to automate parallel value flows according to different accounting principles at actual or standard costs in all areas of accounting and controlling<\/span><\/li>\n<\/ul>\n<\/p>\n<h3 class=\"p3\"><span class=\"s1\"><b>(1) Material Ledger with Parallel Valuations without Actual Costing <\/b><\/span><\/h3>\n<p><span class=\"s1\"> allows a material valuation with different prices stored in up to 3 valuation views (legal, group, and profit center view) in the group and the local currency. <\/span><br \/>\n<span class=\"s1\">The legal valuation is usually used for financial closing and reporting of a single legal entity according to the legal requirements (external view). <\/span><br \/>\n<span class=\"s1\">The group valuation is used by a group for closing and reporting across legal entity boarders (internal view). The material prices in the group valuation are usually adjusted (corrected downwards) by intercompany profits.<\/span><br \/>\n<span class=\"s1\">The profit center valuation is used for management reporting, if the entire company is structured by internal areas of responsibilities (profit centers) who deal or compete with each other as if they were independent external companies (alternative internal view). The material prices in the profit center view are usually adjusted by a profit center mark-up or a mark-down.<\/span><\/p>\n<h3><\/h3>\n<h3 class=\"p3\"><span class=\"s1\"><b>(2) Material Ledger with periodic Actual Costing<\/b> <\/span><\/h3>\n<p><span class=\"s1\">allows a deeper analysis of material price components and material price variances based in relation to the standard price, and an update of material prices, stock values and consumption at actual costs (standard costs plus variances).<\/span><br \/>\n<span class=\"s1\">With this approach a deep understanding of cost structures through a cost component view as well as the periodic cost development trough variance analysis are possible. See the official <a href=\"https:\/\/help.sap.com\/viewer\/43fef8fcc9c74b6cb241b3ebc9453908\/6.03.18\/en-US\/c8f1d353ca9f4408e10000000a174cb4.html\" target=\"_blank\" rel=\"noopener noreferrer\">SAP docu<\/a> for more information.<\/span><\/p>\n<h3><\/h3>\n<h3 class=\"p3\"><span class=\"s1\"><b>(3) Material Ledger with alternative valuation run<\/b><\/span><\/h3>\n<p><span class=\"s1\">supports a simulation of alternative cost of goods sold and stock values based on alternative material and activity prices which are not used for stock valuation. Such alternative prices can be standard prices of the previous year, future plan prices, purchase prices, stock valuation prices according to alternative GAAP etc. Alternative activity prices from any active planning version can be used.<\/span><br \/>\n<span class=\"s1\">This functionality can be applied as simulation costing for management reporting and\/or as periodic revaluation for the purpose of parallel accounting according to a different valuation principle. See the official <a href=\"https:\/\/help.sap.com\/viewer\/43fef8fcc9c74b6cb241b3ebc9453908\/6.03.18\/en-US\/a52fc6535e601e4be10000000a174cb4.html\" target=\"_blank\" rel=\"noopener noreferrer\">SAP docu<\/a> for more information. <\/span><\/p>\n<h3><\/h3>\n<h3 class=\"p3\"><span class=\"s1\"><b>(4) Material Ledger with parallel COGM<\/b> <\/span><\/h3>\n<p class=\"p3\"><span class=\"s1\">allows you not only to setup parallel valuations according to different accounting principles for stock valuation as in case (3) but also to integrate it with Cost Center Accounting and Asset Accounting and General Ledger Accounting. This approach is used when an integrated monthly cycle of Accounting and Controlling with different valuation prices (actual or standard) is required for alternative accounting principles. See the official <a href=\"https:\/\/help.sap.com\/doc\/a7b666550852bd7de10000000a44538d\/3.6\/en-US\/c7369cf6928c45abb9e331b00daca245.html\" target=\"_blank\" rel=\"noopener noreferrer\">SAP docu<\/a> for more information. <\/span><\/p>\n<h2 class=\"p3\"><span class=\"s1\"><b>Q: What are the risks or disadvantages when you implement Material Ledger?<\/b><\/span><\/h2>\n<ul>\n<li class=\"p3\"><span class=\"s1\">increased process complexity and longer duration of the month-end closing esp. in the presence of periodic revaluation run(s)<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">performance issues during month.end-closing when you have huge data volumes relevant for Material Ledger<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">increased master data and transactional data complexity, esp. when you implement parallel valuations and different valuation prices<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">strong discipline in logistical processes and higher data quality is required to satisfy ML data consistency and data quality needs<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">not all FICO functionalities are equally available with each Material Ledger approach, so you need to be careful while defining the requirements and choosing the Material Ledger settings. E.g. cost component view is not available without Actual Costing activation and multi-level price determination; settlement of production variances by categories (price\/ quantity\/ to CO-PA is not possible when you activate periodic Actual Costing as all variances are settled to material as a total; not all FICO functionalities are equally available in all valuation views when you activate parallel valuation in Material Ledger, e.g. the split of variances by variance categories, settling variances by categories to Profitability analysis only supported in the leading valuation<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">some of basic Material Ledger settings incl. its activation are irreversible once you activate them in a productive system, under certain circumstances their change or deactivation can be performed only by SAP personnel for additional fees.<\/span><\/li>\n<\/ul>\n<\/p>\n<h2 class=\"p3\"><span class=\"s1\"><b>Q: What impact does Material Ledger has on the material price control?<\/b><\/span><\/h2>\n<p><span class=\"s1\">The following dependencies should be considered when activating Material Ledger:<\/span><br \/>\n<span class=\"s1\">(1) Material Ledger with Parallel valuations without Actual Costing: material price determination is transaction-based; material prices are determined and updated real-time for each valuation when posting a material transaction. Material price control is set according to the strategy of the company, usually<span class=\"Apple-converted-space\">\u00a0 <\/span>a moving average price (V) is applied to all internally or externally purchased materials e.g. raw materials, purchased spare parts, and a standard price (S) is applied to materials manufactured internally, e.g. semi-finished and finished goods.<\/span><br \/>\n<span class=\"s1\">(2) Material Ledger with Actual Costing: material price determination is multi-level or single-level, material prices are updated periodically at month-end closing. Material price control standard price (S) is applied to materials (raw materials, semi-finished and finished goods) which are involved in the manufacturing process and which price variances need to be included in the actual price of finished good. The multi-level price determination is applied when price variances need to be rolled up from the low level to the upper level material in the multilevel BOMs.<\/span><\/p>\n<h2 class=\"p3\"><span class=\"s1\"><b>Q: Which valuation approach is recommended as the leading approach when using parallel valuations in Material Ledger?<\/b><\/span><\/h2>\n<p><span class=\"s1\">Usually the legal valuation is used as the leading valuation due to the constraint, that some processes are not supported in non-leading valuations but need to be applied as per legal or internal requirements, e.g.:<\/span><\/p>\n<ul>\n<li class=\"p3\"><span class=\"s1\">WIP calculation for target costs is only possible on the basis of the leading version,<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">cost and revenue recognition in project and order result analysis is done on the basis of the leading valuation plan values, <\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">plan activity costs are estimated on the basis of leading valuation prices,<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">variance calculation determines variance categories only for the leading version. For the additional valuation approaches, the variances are only available as a sum via the price difference account.<\/span><\/li>\n<\/ul>\n<\/p>\n<h2 class=\"p3\"><span class=\"s1\"><b>Q: What is the impact of Material Ledger on the month-end closing process?<\/b><\/span><\/h2>\n<p><span class=\"s1\">Additional closing steps to be considered:<\/span><br \/>\n<span class=\"s1\">(1) Material Ledger with Parallel valuations without Actual Costing:<\/span><\/p>\n<ul>\n<li class=\"p3\"><span class=\"s1\">Run material costing\/update material prices for parallel valuations,<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">Run result analysis and settlement for parallel valuations.<\/span><\/li>\n<\/ul>\n<p class=\"p3\"><span class=\"s1\">(2) Material Ledger with Actual Costing: below is an example process based on the requirement to determine the actual price for all materials including all material price variances of the closing period and to update the standard price = actual price with validity for the next fiscal period:<\/span><\/p>\n<ul>\n<li class=\"p3\"><span class=\"s1\">a. CKMLCP: Material selection for closing<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">b. CKMLCP: Single-level price determination<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">c. CKMLCP: Multi-level price determination<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">d. CKMLCP: Revaluation of consumption<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">e. CKMLCP: WIP revaluation<\/span><\/li>\n<\/ul>\n<p><span class=\"s1\">The prerequisite to allocate variances to WIP correctly is that all WIPs have been completely posted for all production orders, projects and sales orders. The project controllers\u2019<\/span> <span class=\"s1\">team can check the WIP posted against WIP determined in the result analysis.<\/span><\/p>\n<ul>\n<li class=\"p3\"><span class=\"s1\">f. CKMVFM: Check value flow monitor: Not distributed and Not allocated variances: should be zero<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">g. MR22: Distribute variances to material manually, if not distributed variances zero<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">h. CKMLCP: Check\/Rerun WIP\/Revaluation of consumption<\/span><\/li>\n<li class=\"p4\"><span class=\"s1\">i. CKMLCP: Mark material prices: select a validity date to a date before the end of the calendar period which you are closing<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">j. CKMLCP\/overview costing run: check material status, variances between the standard and the actual price<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">k. MMPV: Close current period, open next period in MM<\/span><\/li>\n<li class=\"p4\"><span class=\"s1\">l. MM03: Check if the future price in material master equal to the actual price of the closing period<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">m. OB52: Open the new posting period in FI<\/span><\/li>\n<li class=\"p4\"><span class=\"s1\">n. CK40n: Create and released standard cost estimate (applied to materials with standard cost estimate: semi-finished and finished materials)<\/span><\/li>\n<li class=\"p4\"><span class=\"s1\">o. CKME: Release material actual price to standard price (applied to materials w\/o standard cost estimate)<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">p. CKMLCP: Post ML closing documents<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">q. CKMLCP\/overview costing run: Check material status and errors.<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">r. CKMLCP: Eliminate errors if any and rerun closing postings<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">s. FAGLB03: Check ML account balances: ideally the total balance of the price variance and variance offset accounts should be zero after Material Ledger Actual Costing closing postings.<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">t. KKAJ, CJ88\/VA88: Once Material Ledger actual costing closing entries have been posted the cost objects impacted by consumption revaluation, e.g. WBS elements, network activities of projects, sales orders, cost centers need to be recalculated and settled\u2013<\/span> <span class=\"s1\">rerun result analysis and settlement to update the results with actual costs.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span class=\"s1\">Dependent on the requirements some of the above steps may not be necessary. E.g if you do not update material prices and just revaluate stocks you only need 1-h, j-k, m, p-t steps. If you do not have any impacted cost objects you skip step t.<\/span><\/p>\n<h2 class=\"p3\"><span class=\"s1\"><b>Q: How are logistical processes integrated with Material Ledger? What needs to be considered when defining logistical processes?<\/b><\/span><\/h2>\n<p><span class=\"s1\">Material Ledger is closely integrated with Material Management (MM), Production planning and execution (PP), and with Sales and Distribution (SD). In order to achieve the desired results with Material Ledger, esp. when Actual Costing is activated, it is important that logistical processes follow the best practices and stick to the established rules, e.g.:<\/span><\/p>\n<ul>\n<li class=\"p3\"><span class=\"s1\">goods receipt posting before invoice receipt posting for each purchased item in each posting period: there should be a stock unequal to zero when an invoice with price differences is posted,<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">no production order release before release of the header material cost estimate,<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">no production order confirmations or goods receipt in the period subsequent to the period of the final order closing\/settlement,<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">no order delivery to stock, to project or to customer until all manufacturing costs are fully posted to the order,<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">no customer returns without the reference to the original order item.<\/span><\/li>\n<\/ul>\n<\/p>\n<h2 class=\"p3\"><span class=\"s1\"><b>Q: How to analyze if all material price variances are allocated correctly to the materials at month-end?<\/b><\/span><\/h2>\n<p class=\"p3\"><span class=\"s1\">First, check the relevant account balances in FI (e.g. in FAGLB03 report): ideally the total balance of all price variance and variance offset accounts should be zero after Material Ledger Actual Costing closing postings. In this case Material Ledger has successfully allocated all variances either to inventories, WIP or material consumption (costs of projects \/ orders).The following MM\/FI accounts are to be considered in this reconciliation:<br \/>\n<span class=\"s1\">Price variance accounts:<\/span><\/span><\/p>\n<ul>\n<li class=\"p3\"><span class=\"s1\">PRD: purchase price variance and production variance<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">KDM: exchange rate difference<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">AUM: difference from material stock transfer<\/span><\/li>\n<\/ul>\n<\/p>\n<p><span class=\"s1\">Variance offset tough ML closing:<\/span><\/p>\n<ul>\n<li class=\"p3\"><span class=\"s1\">PRV, PRY, PRM: single-level, multi-level differences and WIP revaluation offset<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">KDV: exchange rate differences from the low level material revaluation.<\/span><\/li>\n<\/ul>\n<\/p>\n<p><span class=\"s1\">Second, in case the total balance is not zero, further analysis can be done with the help of<span class=\"Apple-converted-space\">\u00a0 <\/span>Material Ledger Value Flow Monitor. (CKMVFM). It provides a good overview whether and how variances have been allocated\/distributed. Trough the drill-down function it is possible to find the root cause \u2013<\/span> <span class=\"s1\">mostly a process or master data issue in the related logistical processes, and to define actions to eliminate the identified issues.<\/span><\/p>\n<h2 class=\"p3\"><span class=\"s1\"><b>Q: What are the causes of not allocated \/not distributed variances?<\/b><\/span><\/h2>\n<h3 class=\"p3\"><span class=\"s1\"><b>Not distributed variances<\/b> <\/span><\/h3>\n<p class=\"p3\"><span class=\"s1\">are originated from the initial inventory\/goods receipts. They are not considered in the actual price as Material Ledger considers them as price distorting or prevents a negative actual price.<\/span><br \/>\n<span class=\"s1\">They occur when<\/span><\/p>\n<ul>\n<li class=\"p3\"><span class=\"s1\">variance amount is higher than the value of cumulative inventory at standard price. This can be caused by ether a wrong standard price (e.g. zero), wrong variance (e.g. when qualities in goods &#8211; receipts lower that quantities in invoice receipts), periodic shift of goods receipts and invoice receipts, manual posting on variance accounts to materials without stock in the posting period<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">changes in the price control of materials during the posting period with transaction CKMM<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">change of the valuation class or profit center in material master during the posting period<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">late standard price change with transaction MR21.<\/span><\/li>\n<\/ul>\n<\/p>\n<h3><span class=\"s1\"><b>Not allocated variances <\/b><\/span><\/h3>\n<p><span class=\"s1\">are originated from the consumption and multi-level rollup side and mean that Material Ledger was not able to allocated them neither to the stock on the material level,<span class=\"Apple-converted-space\">\u00a0 <\/span>nor to the stock on the subsequent levels nor to any costs object.<\/span><br \/>\n<span class=\"s1\">They occur when<\/span><\/p>\n<p class=\"p3\">\n<ul>\n<li class=\"p3\"><span class=\"s1\">Material Ledger closing has not been fully performed esp. with regard to revaluation of consumption, WIP or multi-level price determination, or not performed for some materials and plants, or not fully re-processed<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">a subsequent material in the multi-level price determination has wrong price control (e.g. price determination 2, price control V)<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">the multi-level price determination was cut off due to a high number of cycles. this happens e.g. when a material is involved in cyclical processes (multiple reworks, back-and-forth stock transfers).<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">in a scenario with periodic production orders without WIP, consumption without goods receipts are posted in the posting period, goods receipts posted in the next period<\/span><\/li>\n<\/ul>\n<\/p>\n<h2 class=\"p3\"><span class=\"s1\"><b>Q: What are the prerequisites to use the Material Ledger alternative valuation run for the purpose of alternative cost simulation?<\/b><\/span><\/h2>\n<p class=\"p3\"><span class=\"s1\">First, you need to determine the valuation strategy for the alternative valuation run:<\/span><\/p>\n<p class=\"p3\">\n<ul>\n<li class=\"p3\"><span class=\"s1\">Will materials be valuated with a different price than that in the periodic material ledger run?<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">What is the source of this price &#8211; material master, external price tables, ML other periods, FIFO\/LIFO prices, other prices?<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">Will activities be valuated with a different price than that in the periodic material ledger run?<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">What is the source of this price &#8211; actual vs. plan, which CO version?<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">How will these alternative values be used &#8211; ML stock values report, CO-PA alternative operating results, FI parallel ledger report etc.<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">Do the alternative costs need to be posted to FI and updated in CO on costs centers?<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">Do you run it for a single period or for several periods?<\/span><\/li>\n<\/ul>\n<\/p>\n<p class=\"p3\"><span class=\"s1\">Customizing prerequisites:<\/span><\/p>\n<p class=\"p3\">\n<ul>\n<li class=\"p3\"><span class=\"s1\">basics: Activate Material Ledger and Actual costing with actual cost component split<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">in order to use alternative material prices you need to setup a valuation alternative in transaction OMWEB with final result \u201eC\u201c- relevant for external cumulative valuation in Material Ledger. In addition you need to implement the OSS note 997262 BAdI BADI_ENDING_INV.<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">in order to use alternative activity prices you need to setup CO versions in Controlling and enable the actual activity update with indicator \u201e1\u201c<\/span> <span class=\"s1\">in transaction \u201eActivate Actual Costing\u201c<\/span> <span class=\"s1\">. If actual activity prices shall be used you need to set this indicator (e.g. 5) in the relevant activity types in transaction KL02.<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">in order to transfer the alternative costs to CO-PA define a define a costing key and assign it to the relevant accounting principle in the transaction \u201eSet-up transfer of cost component split to CO-PA\u201c. In CO-PA customizing define which value fields should receive costs from this costing key.<\/span><\/li>\n<\/ul>\n<\/p>\n<p class=\"p3\"><span class=\"s1\">Typical process for simulation run (posting run: no, revaluation consumption: yes, acc. modification: blank, acc. principle: blank):<\/span><\/p>\n<p class=\"p3\">\n<ul>\n<li class=\"p3\"><span class=\"s1\">a. CKMLCP Complete the periodic Material Ledger closing<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">b. KSII Actual activity price calculation<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">c. MRY2 Transfer Physical Inventory Prices to Material Ledger valuation alternative<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">d. CKMLCPAVR<span class=\"Apple-converted-space\">\u00a0 <\/span>Data selection<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">e. CKMLCPAVR<span class=\"Apple-converted-space\">\u00a0 <\/span>Cumulate data<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">f. CKMLCPAVR<span class=\"Apple-converted-space\">\u00a0 <\/span>Determine sequence<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">g. CKMLCPAVR<span class=\"Apple-converted-space\">\u00a0 <\/span>Single-level price determination<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">h. CKMLCPAVR<span class=\"Apple-converted-space\">\u00a0 <\/span>Multi price determination<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">i. CKMLCPAVR<span class=\"Apple-converted-space\">\u00a0 <\/span>Revaluate consumption<\/span><\/li>\n<\/ul>\n<\/p>\n<p class=\"p3\"><span class=\"s1\">The results you can see directly in CKMLCPAVR transaction of in CKM3 (select the AVR run) or in the value flow monitor CKMVFM (select the AVR run).<\/span><\/p>\n<h2 class=\"p3\"><span class=\"s1\"><b>Q: What are the prerequisites to use the Material Ledger alternative valuation run to revaluate stocks according to alternative accounting principle in a non-leading ledger?<\/b><\/span><\/h2>\n<p class=\"p3\"><span class=\"s1\">In addition to the customizing described in the previous chapter you need to define stock accounts for BSD account in OBYC transaction and to set up a non-leading ledger and an accounting principle in FI new General Ledger.<\/span><br \/>\n<span class=\"s1\">Typical process for a posting run (posting run: yes, revaluation consumption: no, acc. modification: BSD, acc. principle: local:<\/span><\/p>\n<p class=\"p3\">\n<ul>\n<li class=\"p3\"><span class=\"s1\">steps 1-h<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">j. CKMLCPAVR<span class=\"Apple-converted-space\">\u00a0 <\/span>Determine delta posting<\/span><\/li>\n<li class=\"p3\"><span class=\"s1\">k. CKMLCPAVR<span class=\"Apple-converted-space\">\u00a0 <\/span>Post closing<\/span><\/li>\n<\/ul>\n<\/p>\n<p class=\"p3\"><span class=\"s1\">The results you can see directly in CKMLCPAVR transaction of in CKM3 (select the AVR run) or in the value flow monitor CKMVFM (select the AVR run) as well as in Financial accounting reports by selection the respective non-leading ledger. See the official <a href=\"https:\/\/help.sap.com\/viewer\/43fef8fcc9c74b6cb241b3ebc9453908\/6.03.18\/en-US\/bbf0d353ca9f4408e10000000a174cb4.html\" target=\"_blank\" rel=\"noopener noreferrer\">SAP docu<\/a> for more information. <\/span><\/p>\n<p class=\"p3\">Learn more about SAP Material Ledger: <a href=\"https:\/\/agil-on.com\/en\/sap-material-ledger\/\">https:\/\/agil-on.com\/en\/sap-material-ledger\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Follow @AgilonGmbh In this post we want to share questions frequently asked before and during the implementation of SAP Material Ledger. Q: What are the use cases for Material Ledger? There are following main reasons why companies consider Material Ledger as a necessary functionality for their business: they want to valuate material stock in multiple [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":1147,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[39],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/agil-on.com\/en\/wp-json\/wp\/v2\/posts\/666"}],"collection":[{"href":"https:\/\/agil-on.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/agil-on.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/agil-on.com\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/agil-on.com\/en\/wp-json\/wp\/v2\/comments?post=666"}],"version-history":[{"count":13,"href":"https:\/\/agil-on.com\/en\/wp-json\/wp\/v2\/posts\/666\/revisions"}],"predecessor-version":[{"id":2158,"href":"https:\/\/agil-on.com\/en\/wp-json\/wp\/v2\/posts\/666\/revisions\/2158"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/agil-on.com\/en\/wp-json\/wp\/v2\/media\/1147"}],"wp:attachment":[{"href":"https:\/\/agil-on.com\/en\/wp-json\/wp\/v2\/media?parent=666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/agil-on.com\/en\/wp-json\/wp\/v2\/categories?post=666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/agil-on.com\/en\/wp-json\/wp\/v2\/tags?post=666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}