![]() ![]() Updating Standard Cost with Actual Prices (optional).Let us see what this ML Subledger will do and help business: This does not mean that ML is restricted for Management Accounting(CO), as the actual costing functionality would be used for valuation of inventory on the balance sheet. IMG>Controlling>Product Cost Controlling>Actual Costing/Material Ledger. ability to manage material prices in multiple currencies/valuations,.Material Ledger as a Tool fufills two basic objectives: Material Ledger/Actual Costing is a Sub-Ledger like AP, AR, Fixed Assets – this gives us some relief indicating ML is just a sub-ledger and we are talking about this sub-ledger functionality. Material Ledger/Actual Costing is one of the Sub-ledgers both from FICO perspective and from Inventory Management Perspective. Please note some document numbers in CO/ML will appear as Alphanumeric based on the business scenario/transaction, it is SAP derived based on internal algorithms. We will go to the one level below General Ledger ie., Sub-Ledger, below this level is the Journal Entry Postings.(either within FICO or through integrated postings). Now, our high-level fundamental concepts in place. Trial Balance is the closing balance of all GL Accounts for a given Dateīalance Sheet represents the financial position as on Date. And the GL is validated by a Trial Balance. ![]() General Ledger represents the record keeping system for Company’s Financial data in the form of Debit/Credit item records posted. Lets talk about sub-ledger functionality in FICO. □īefore we discuss about ML Functionality. Just tried to give a comparison so as to keep this concept simple. In the same way, Material ledger(Actual Costing) will have different valuation views(3) for varied business reasons. We have Different Depreciation Areas based on Ledger Group/Accounting Principle etc for varied business requirements. In same fashion, the closing value of Material is influenced by many factors such as its Price set up, receipts/invoice/consumption etc in its journey in SAP Landscape. If we draw a comparison, Closing Balance of Fixed Asset depends on many factors like acquisitions, reitrements, useful life, depreciation key, depreciation postings etc. It will touch across the lifeline of the Material’s journey in SAP landscape. We think ML is heavy, the basic reason to have such a thinking is the functionality moves around voluminous transactions covering across Procurement, Production Planning, Operations and Controlling. Experience is an outcome of continuous learning process. In this blog, i tried to demystify some of these myths for the beginners. Material Ledger and Actual Costing both should be active etc.ML is having many complex terms to understand.ML is considered to be more complex and complicated topic to understand.If we approach with this objective, it keeps us less overwhelmed in our understanding. In this blog, the approach in understanding Material Ledger is to keep it simple, that ML(Actual Costing) is another sub-ledger and the configuration mapping is required to achieve the business requirements from Inventory Valuation and reporting perspective. This blog is just an overview of Material Ledger functionality without navigating through transaction or configuration screens. We will discuss about Multiple Currencies and Valuation Approaches as we move forward. This helps to understand Material Ledger/Actual Costing in SAP quickly and seamlessly. Material Valuation and Movements throughout the Supply Chain and manufacturing cycle.Work In Process/Variance/Settlement Processes under different manufacturing scenarios.Standard Cost Estimates and related configuration/processes.It would be a good idea to have a better understanding about the Product Cost Flow which includes: It enables material inventories to be valuated in multiple currencies and allows the use of different valuation approaches. The material ledger is the basis of actual costing. The material ledger uses this data to calculate prices to valuate these materials. Material Ledger is a Tool that collects transaction data for materials whose master data is stored in material master. I tried to keep this blog as simple and brief as possible.:) This blog post for beginners in ML or for experienced Consultants in other SAP Components, to understand and navigate Material ledger (ML)-Actual Costing Functionality in SAP S/4HANA. ![]()
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