Ac Co Pc Act 001 00 Tm Material Ledger

Training Manual

Module: FI/CO – Financial and Controlling

Function: Material Ledger

File name: AC-CO-PC-ACT-001-00-TM System Version: 2005

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1 Overview – Material Ledger

1.1 This document elaborate the transactions related to the material ledgers

1.2 Transaction Code:

<MM02> Edit or Park G/L Document

<CKM3> Material Price Analysis

<CKMLCP> Edit Costing Run

1.3 SAP Menu Path:

Logistics � Material Management � Material Master � Material � Change � MM02 Immediately

Accounting � Controlling � Product Cost Controlling � Material Ledger �

CKM3 Material Price Analysis

Accounting � Controlling � Product Cost Controlling � Actual Costing � CKMLCP Edit Costing Run

1.4 User Procedures:

a. Some of the information in the material master (accounting 1) is related to Material Ledger. User

should know the setting related when they create or amend the master records

b. The inventory transactions are records in the material ledger. Material Price Analysis could be used

to analysis the price/ cost of a material

c. The manufacturing will be reallocated to the inventory and rollup to the upper level using the single

and multi level price determination. Closing process is also required for the material ledger

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2 Key Concept

Price Determination

With price control V material price determination (indicator2 in the material master), the moving average price

is calculated. With price control S, the material is valuated with the standard price and the moving average

price is calculated for information purposes.

In single-/multi-level material price determination (indicator 3 in the material master), the valuation price

(standard price) remains unchanged and a periodic unit price is calculated for the closed period.

(This option is only for materials with price control indicator S)

a. Transaction-Based Material Price Determination

This function makes it possible for you to calculate the moving average price after every goods

movement.

b. Single Level Price Determination

Single-level material price determination calculates the periodic unit price for a material. The standard

price and the cumulative single-level differences of the period are taken into account. The material price

calculated in multilevel price determination can be used for inventory valuation. Single-level price

determination is a prerequisite for multilevel price determination.

c. Multi-Level Price Determination

Multilevel price determination calculates the periodic unit price for a material. The standard price, the

single-level differences cumulated in the period, the differences between planned and actual prices, as

well as input material differences (multilevel differences) are all taken into account. The material price

calculated in multilevel price determination can be used for inventory valuation.

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3 Procedural Steps

Maintain the Material Masters (ML related information)

Logistics � Material Management � Material Master � Material � Change � MM02 Immediately

Select the accounting 1 view

Select the plant

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Field Usage

Price Determination ‘2’ for moving-average-price items; ‘3’ for standard-price item * refer to key concept

Per. Unit price Moving Average Price/Periodic Unit Price

Price Control V: Moving-average S: Standard

Click the button to save the setting

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Material Price Analysis

Accounting � Controlling � Product Cost Controlling � Material Ledger � CKM3 Material Price Analysis

Field Usage

Material; Plant The material displayed in the report

Period/ Year Which period is the information presenting

Period Status The closing status of the material ledger in this period

View The type report presenting – Price analysis; cost component

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How to read the report?

Business Scenario

We have a two level BOM consist of a SFG P01000C313004 and a FG P01000C313002

� Order 6150008741 (1st Order) has been created for the SFG P01000C313004

� Order 6150008742 (2nd Order) has been created for the FG P01000C313002; the SFG P01000C313004

has been used in this order

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Single Level Price Determination

The balance transaction is recorded in the material price analysis based on the Price Control

During the Costing Run (for the material ledger), part of the variance will be allocated back to the inventory

based on the inventory

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Multi-Level Price Determination (1)

Single-level price determination must be done before the multi-level price determination

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Multi-Level Price Determination (2)

The variance will be rollup to the upper level if it is consumed to another production order

The variance from lower level will be allocated back to the inventory based on the inventory level as is single

level price determination

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Month End Process

Business Procedure Description

Close MM Period (MMPV) Close the period of the material management

Overhead Cost Calculation (CO43) Calculate the overhead for the production orders

Preliminary settlement for

Co-products (CO8A)

Split the production cost to the co-production for joint production

Calculate WIP (KKAO) Calculate the amount of the WIP (w/o posting to FI)

Variance Calculation (KKS1) Calculate the manufacturing variance (for analysis)

Settlement (CO88) Post the WIP & variance to Financial accounting

Costing Run (CK40N) Calculate the Standard Cost and updated to the material master

Costing Run for Material Ledger

(CKMLCP)

Calculate the periodic actual cost and allocate the variance back to

the inventory based on the inventory level

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Costing Run (for Material Ledger)

Accounting � Controlling � Product Cost Controlling � Actual Costing � CKMLCP Edit Costing Run

There are six difference steps in the Costing Run (for Material Ledger)

Steps Description

1. Selection Select the Material to be process (basically, select all material)

2. Determine Sequence Determine the sequence for the multi level price determination

3. Single-Level Price Determination Single-level price determination (refer to the section above)

4. Multi-Level Price Determination Multi-level price determination (refer to the section above)

5. Revaluation of Consumption No special purpose in EME

6. Posting Closing Close the period in material ledger and posting the result to FI

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Create a Costing Run

Click the button

Specify the ID for the Costing Run and click the button to continue

Select the plant to be process. Click the button to save the setting.

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Click the button to show the Flow steps

Step 1: Selection

Check the button in the row “Selection”

Do not change the parameters, chick the save button

A button will be shown after that. Click this button.

Check the “Start Immediately” check box. Chick the confirm button after that.

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Continue. Click the button to refresh the screen, until the status is updated

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Step 2 Determine Sequence

Basically, the step in the following the steps are very similar to step one

Check the button in the row “Determine Sequence”

Save the setting

Execute the program

Choose Start Immediately and confirm

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Step 3 Single-Level Pr. Determination

Click the button to unlock the period

Check the button in the row “Single-Level Pr. Determination”

Choose “Process Again” and click the button to save the setting

Execute the program

Choose Start Immediately and confirm

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Step 4 Multilevel Pr. Determination


Check the button in the row “Multilevel Pr. Determination”

Do not change the parameters and then save the setting

Execute the program

Choose Start Immediately and then Confirm

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Step 5 Revaluation of Consumption

Check the button in the row “Revaluation of Consumption”

Do not change the parameters and then save the setting

Click the button to execute as usual and refresh the screen until the status is updated

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Step 6 Post Closing


Check the button in the row “Revaluation of Consumption”

Remove the “Test run” and save the setting

Click the button to execute as usual and refresh the screen until the status is updated

-- End of Document --

Ac Co Pc Act 001 00 Tm Material Ledger

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