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Material Ledgers/ Actual Costing 76 Likes 79,868 Views 25 C
omments
Material Ledger/ Actual Costing is one of the complex tool
provided by SAP to manage its inflows and outflows of core
manufacturing related materials in multiple currency and
valuations. In this blog, I have tried to explain this
functionality in detail with example (mainly Actual Costing).
Basically Material Ledger/Actual Costing are the two separate
functionalities which are inter-dependent and are incorporated in
the SAP Controlling module which are discussed below.
Actual Costing
Actual Costing is functionality provided by SAP to calculate
actual prices i-e; PUP (periodic unit price) of inventories/
valuated material including Raw Material (ROH), Semi- Finished Good
(HALB) and Finished Good (FERT). It includes all the actual prices
for material in particular period.
Actual Costing Run (CKMLCP) is the month end activity, which is
used to valuated the inventory in balance sheet at actual price
(PUP- Periodic Unit Price) by calculating and posting Production
variance during the month on the Material which was previously
maintained at Standard Price (calculated from CK11N) in balance
sheet.
Standard costing and actual costing can run completely separate
from each other without any conflicts. The only decision to be made
is, what price you use for material valuation. You can mark and
release your cost estimations from CK40N as standard price to be
used during the period. After the period is over and you run your
CKMLCP you can decide in the closing entries if you want to revalue
the inventory (of last month) by the periodic unit price.
The figure below shows the process and entries for Production
Variance without Material Ledger/ Actual Costing,
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The figure below shows the process and entries for Production
Variance with Material Ledger/ Actual Costing,
If ML / Actual Costing is active the following Price
determination setting can be done in Material Master of
material.
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ML active ML not active
Moving Average price (V)
Standard price (S) Standard price (S)
Recommended for SFG FG
Price determination
2 Transaction-based
(MVA is used for valuation)
Price determination
3 Single/Multilevel
(PUP is used for Valuation in the closed period)
Recommended for FG SFG and also RM
If ML is active with price determination 3 and you have already
performed transactions to the material during the current period
the costing release (CK40N or CK24) of Standard price to material
is not allowed.
Price determination
2 Transaction-based
(Std price is used for Valuation.
MVA is used for Info purpose )
If with ML active you use price determination 2 then you can
have both standard and moving average price (S or V) but cannot do
inventory valuation at actual costing (PUP).
So, if you decide to use 2 and V then the purpose of ML would
only be for parallel valuation (not for actual costing).
Moving Average(V)
Recommended for RM
S4 HANA Simplifications for Actual Costing:
In S4/HANA, there are no changes in the Actual Costing process
it is remain optional to client whether to use this functionality
or not as in SAP ECC.
Material Ledger
Material Ledger is a tool used to manage your inventory in
multiple currencies and/ or perform multiple inventory valuation.
It allows the client to manage its inventory in three currencies
which is
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previously (when Material Ledger is not activated) being manged
in only one currency with legal valuation.
Material ledger with Or without Multiple valuations
In order to used Multiple Valuations ML must be implemented.
ML with multiple valuations ML w/o multiple valuations
If multiple valuations are used ML valuates the materials in up
to 3 valuation views with 2 currencies
Example 1: 3 val : 2 curr
Legal valuation/ Comp code currency
Group valuation/ Group currency
Profit center valuation/ Group currency
OR
Legal valuation/ Comp code currency
Group valuation/ Group currency
Profit center valuation/ Comp code currency
Example 2: 3 val : 1 curr
Legal valuation/ Comp code currency
Group valuation/ Comp code currency
Profit center valuation/ Comp code currency
If multiple valuations are not used ML just store the material
prices/stock values in up to 3 currencies
Example 1:
Comp code currency
Group currency
Hard currency
Example 2:
Comp code currency
Group currency
Index based currency
Used with Multiple Valuation:
Used for parallel valuations. Material price/stock is
valuated(costed through CK11N) separately and stored in the
specified currency.
Used without Multiple Valuation:
Used if we want to store/display material
price/stock/transactions in multiple currencies.
It is a mere translation of price/ stock into different
currencies at historical exchange rate .
For each valuation view we maintain separate Version in
controlling through t-code: OKEV.
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Example,
Version Version Description
Plan Actual Valuation View
WIP/RA Variance
0
909
910
Legal valuation
Group valuation
Profit Ctr Valuation
. Legal valuation
Group Valuation
Profit Ctr Valuation
With Legal Valuation, you are able to valuate your business
processes similar to how you would do that in the Company Code,
using Company Code Currency. Hence your financial reporting will be
similar in Profit Center Accounting and FI.
In the Group View, you apply transfer pricing among Profit
Centers at cost. Therefore, there are no intra-company transfer
profits. The only profits that arise will be with respect to
non-group companies.
With the Profit Center View, you apply transfer prices amount
Profit Centers with Internal Revenue and Internal Costs. Therefore,
rather than transfer the goods at Cost, the sender PC will “sell”
the goods to the receiver PC. This differs from the Legal view,
where the group valuation is more like a intra-group transfer.
S4 HANA Simplifications for Actual Costing:
Previously in SAP ECC,
Now in SAP S4/HANA,
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Material Ledger Simplifications in S4/ HANA,
Material Leger/ Actual Costing Process Flow. Procure to Pay
Cycle for RM (Raw Material):
Figure below shows the Purchase to Order cycle to procure RM1
and RM2 material at respective prices.
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Accounting entry generated in FI module during transaction
MIGO,
In report CKM3 for RM1, we see that the price difference between
standard price maintained in RM1 material and actual price at Good
receipts is separately posted and shown under Price difference.
Prerequisites for Production Cycle:
Now check or Run cost estimate for FG and SFG to calculate and
update Standard Prices in Material Master. Also create BOM and
Routing master data for FG1 (FERT).
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Production Cycle for FG (Finished Good):
Now we create Production Order using CS01, as we are using
Collective order processing which is a set of production orders for
FG and all its SFGs.
To Create a collective order, one of the SFG must have a special
procurement key 81 in its MRP/ Costing view of master data.
As, we are using External activity “PCKG” at operation 0020. So
when create Production order of any quantity the Purchase
requisition for this activity type based on required quantity and
standard price got created. Then on the basis of the Purchase
requisition purchase order is created and Invoice verification MIRO
is done against it.
Now the confirmation for SFG1 operation 0010 is performed.
During confirmation the plan yield based on production quantity
plus BOM and activity from routing is suggested which is change by
manually entering the actual quantity and activity cost. It also
suggests scrap of 2% maintained in MRP1 view of material
master.
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Figure below analyzes RM1 goods issue and SFG1 Production issue
for Production order in Material price report CKM3N for RM1 and
SFG1.
Now the confirmation for SFG2 operation 0010 is performed. The
pertaining accounting entries and moment types are shown in figure
below,
Below is the figure to analyze RM2 goods issue and SFG2
Production issue for Production order in Material price report
CKM3N for RM2 and SFG2.
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Now, we do the final confirmation for FG1 for operations “0010”
and “0020” as shown in figure below,
Material Price Analyses report CKM3 for FG1 is analyzed, as
shown in the below figure,
Following are the additional reports to further analyze the FG1
Material activity, purchase price and production variances.
Month-End Process for Production:
Now, we calculate actual activity Prices through KSII or entered
it manually through KBK6. Then we TECO the all three production
order and run the settlement to calculate Production Variances for
FG (FERT) and SFGs (HALB).
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Below the figure showing CKM3 report analysis for FG1, SFG1 and
SFG2,
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Order to Cash Cycle for FG:
Now we make the sales 100 quantity of FG1. First we maintain the
sales price for condition type PR00 in VK11 and then we execute the
sales order cycle for the entry of sales order to billing where the
accounting invoice is generated in Finance.
After doing post good issue/ delivery where the accounting entry
is generated for Cost of sales. In Material Price analysis report
CKM3 for FG, we are now able to see the impact of this sales as
shown in below figure,
Note: If costing based CO-PA is activated, we can see the
document generated for delivery and billing in Profitability
Analysis by using t-code KE24 only after billing.
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Actual Costing Run (CKMLCP): Pre-requisites:
The sequence in ML/Actual Costing should always be the
following:
1) Create and mark cost estimate in period 1 for period 2
(T-Code: CK11N)
2) Do the period shift from period 1 to 2 (T-Code: MMPV)
3) Release the Standard cost estimate (T-Code: CK40N or
CK24)
4) Do ML period end closing of period 1 (T-Code: CKMLCP)
With ML active, you may use CKMLCP to calculate the actual price
and mark it as the further price (but only for two periods later.
Let’s say, if you do post closing for period 06 and get a periodic
unit price, this price can only be marked as future price in period
08 or later). This marked future price can be released via ck40n,
ck24, CKME.
If the company decides to go for periodic unit price every
period. It is recommended to execute CKMLCP and further processes
till release of periodic unit price from period 6 to 7 with
material price determination maintain as 3 and S.
Company may decide whether or not to use the PUP (actual price)
as future price. If it does not want so, use the normal Product
Cost Planning process from CK11N/ CK40N.
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Case 1 (Price determination 3 & S):
If ML is active with price determination 3 and you have already
performed transactions to the material during the current period,
the costing release (CK40N or CK24) of Standard price to material
is not possible.
Case 2 (Price determination 2 & V):
If with ML active you use price determination 2 then you can
have both standard and moving average price (S or V) but cannot do
inventory valuation at actual costing (PUP). So, if you decide to
use 2 and V then the purpose of ML would only be for parallel
valuation (not for actual costing).
CKMLCP Execution:
CKMLCP is executed to calculate Period Unit Price (PUP), which
basically represent average actual cost for material or semi
finished goods. Execution of CKMLCP includes the below steps:
Step 1: Selection
Execution of Selection steps identified, the list of materials
for which the Periodic Unit Price calculation need to be executed
during CKMLCP. The selection step work on the below concept:
After executing the Selection step, the system will identifies
all the materials for which Periodic Unit Price should be
calculated during the CKMLCP as in our case materials MAK2 RM1,
MAK2 RM2 MAK2 SFG1, MAK2 SFG2 & MAK2 FG1 are selected.. The
materials selected during this run are based on following
criteria,
1- Materials from those plants specified at creation of CKMLCP
costing run.
2- It includes all the materials for which any goods movement
happened during the current period or any of the previous periods
after the go-live off Material ledger in Plant
3- List of materials for which ML indicator is set to active in
Material master.
4- Material with status other than not defined or new.
Step 2: Determine Sequence
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In this step the system describes the sequence in which the
Periodic Unit Price for all the selected materials needs to be
calculated.
It determine the group of materials, the cost of which don`t
depend on the cost of any other materials. Generally these are
externally procured materials from external vendor (not from
internal organization transfer, or purchase from some other plant
of same company). Like in our case raw materials MAK2RM1 and
MAK2RM2 gets selected. These materials are considered for actual
PUP calculation at single level price determination.
All the other materials, manufacture in-house, sub-contracting,
purchase from some other affiliates in the same company are
considered for multilevel price determination.
Step 3: Single level price determination
Single-level material price determination is the step in which
the Periodic Unit Price (also called PUP, Actual Price) is
determined. This step calculates actual material prices based on
Costs of Procurement. The term single-level always refers to an
individual material and its procurement process (external
procurement and internal procurement like production or company
transfer).
When using Actual costing, all materials are valuated with a
preliminary price (standard price) that must remain constant during
a period. Variances (price differences and exchange rate
differences) arise during the period for this preliminary valuation
price.
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At the end of the period, you can use the single-level price
determination to assign the variances recorded in the period for
each material.
In our case the Price difference for RM1 & RM2 are
calculated and production variance for SFG1, SFG2 & FG1 are
calculated.
The below figure shows the impact of single level price
difference on the ending inventory of FG1.
Step 4: Multilevel price determination
In this step system do the PUP price calculations by considering
the below prices:
1- Variance between the Standard price of raw materials with the
Single level PUP calculated at -single level price
determination
2- Variance between Plan activity rate with Actual activity
rate
3- Variance allocation performed through the actual flow of
goods on actual quantity
4- Variance between inter-plant (under same company, may or may
not be under the same co. codes) transfer are also consider if any
goods movement happened between these plants, otherwise not
5- All other variances having an impact on lower level materials
actual cost are consider for calculating actual PUP for higher
level materials.
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The screenshots below depicts the the impact of Multi-Level
Price determination on the RM1 to SFG1 highlighted in blue
circle.
The picture below shows the the effects of Multi level Price
determination on SFG2 from RM2 consumption.
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Finally the the variances in consumption of SFG1 & SFG2 for
FG1 would be transfer to FG1 Receipt from lower level Variances as
shown in the figure below.
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Step 5: Revaluation of consumption
In this step system do the revaluations of all the consumption
based on the actual PUP calculated at single level or multilevel
price determination. The main purpose of this step is to bring the
cost of consumption for Good Finished to actual cost, so that the
profit margins are not over or under stated.
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The below image illustrates the impact of Consumption
Revaluation on FG1 as the cost from non-allocated is assigned to
Revaluation of Consumption.
Step 6: WIP revaluation
In this step system do the revaluations of all the Work in
progress based on the actual PUP calculated at multilevel price
determination.
As in our scenario WIP is not calculated for Production Order so
we skip this step.
Step 7: Post closing
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At post closing step, system do the posting of all the variances
calculated during single level or multilevel price determination
and do the revaluation of consumption and closing inventory, and
passed the necessary entries.
After this the material master price control in the previous
period will be changed permanent to V, from S. But in the new
period, it will still be S.
Below are Accounting entries for the analysis resulted as a
result of Post Closing execution.
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In above entries you see that here the activity Price variance
is charge to cost center and FG Inventory directly rather than to
Cost center and Production Order. Here we don’t have to run t-code
CON2 for Revaluation of activity at actual Price.
Step 8: Mark material price
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Material ledger provides the functionality of converting the
current Periodic unit Price (PUP) as standard cost of next month.
This can be done via executing the Mark material price step.
When you mark price with CKMLCP, the future price in accounting
view 1 is changed together with the “valid from” date.
After executing this step, the PUP of current months gets
updated as marked cost estimate for coming month. For converting,
the PUP of current month as standard cost of next month
autoatically, we need to activate Dynamic price release.
Material Ledger Reports to Analyze after CKMLCP
In Material Ledger, the reports CKMVFM (Value Flow Monitor for
materials), CKMACD (Value flow monitor for activities) and
CKMREDWIP (Value Flow monitor for reduced WIP) are available to
detect incomplete value flows.
These reports can be executed after all value allocating CKMLCP
steps (all steps before Post Closing).
Why the balance in price differences accounts is not zero?
With postings to materials with standard price control, price
differences accumulate in FI. In the period-end closing of the
material ledger (ML), for materials that are ML active and
price determination 3, the accumulated price differences can be
further allocated to ending inventory or consumption.
Ideally, the Material Ledger can explode all price differences
in this way, that is, the balance of all price difference accounts
is zero in total.
This note describes which price difference accounts are to be
looked at. It explains in which cases a balance remains on the
price difference accounts after the period-end closing of the
ML:
Link:
https://wiki.scn.sap.com/wiki/display/ERPFI/Value+flow+monitor
The Value Flow Monitor in transaction CKMVFM: valuable
information after period-end closing in Material Ledger.
Value Flow Monitor CKMVFM is the report to check all values
initially posted to price difference accounts have been allocated
to Consumption or to Ending Inventory after period-end closing in
Material Ledger.
You use the Value Flow Monitor (transaction CKMVFM) to analyze
the not distributed or not included differences.
744090 – Value Flow Monitor: Explanation and recommendations.
Explanations for the selection screen:
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In the above image, select either the option to display all
materials or the option to display only materials with open
differences. You can use the Value Flow Monitor to analyze
additional materials with price determination control 2. You cannot
map the original selection options to these materials and,
therefore, they are changed accordingly.
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You may enter a threshold value for differences that are not
distributed and/or not included. This means you can prevent the
system from displaying materials, for which rounding differences
occurred.If you enter only one threshold value, the transaction may
display materials for which differences are below this
threshold.
If you select option “Reconciliation FI with ML”, the system
automatically selects the relevant price difference accounts for
the reconciliation of FI accounts with the Material Ledger. The
program analyzes all accounts that the chart of accounts of the
company code to be analyzed provides for price differences. In
particular, the following account keys are provided in the standard
system: ‘AKO’, ‘AUM’, ‘KDM’, ‘KDV’, ‘PRD’, ‘PRV’, ‘PRY’, ‘UMB’,
‘UMD’. Sometimes you may have to use other accounts for price
differences or to control further postings to the accounts
mentioned above. Take this into account in the analysis or contact
us for a relevant change.
Important: The reconciliation between FI and ML only returns
helpful results if you did not activate the summarization of FI
documents. If special stocks are analyzed, the updating of the
table ACCTIT must also be activated. If you activated a
summarization of FI documents, the “Reconciliation FI with ML”
option does not deliver any helpful results or does not delivery
any results at all.
When you summarize FI documents, the values that are defined by
the material are deleted from the relevant tables. For this reason,
the information necessary for the selectable reconciliation can no
longer be determined as differentiated.
The system cannot determine all of the information from the FI
documents that is required for analyzing special stocks. The table
ACCTIT provides the missing information. If you did not activate
updating for the table ACCTIT, the differences of the special
stocks are assigned to the stock material. The total of the
differences for a material is then correct. However, it is not
clear whether the differences are relevant for the warehouse stock
or special stock. If you do not select the “Reconciliation FI with
ML” option, the updating of the table ACCTIT is not relevant.
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For performance reasons, you must create an extract for each
run. If you select a name, for which an extract already exists, the
system overwrites this on the database. If the saved extract data
requires too many resources on your computer, you can delete
it.
– Create an extract for each run – use Note 912984. – Delete
extract for the run – implement Note 999197. Recommendations for
the selection to improve the performance:
To analyze the FI accounts, all FI documents (BSEG records) of
the selected time period must be read. This can result in major
performance problems. The runtime and the required memory are
considerably affected. Therefore, the analysis of alternative
valuation runs is critical for performance. Different procedures
are recommended to work around this difficulty. First of all,
execute the transaction without analyzing the FI accounts and
clarify which materials need a more detailed analysis. It is not
performance-critical to execute this transaction because the BSEG
records are not read in this case. Execute the transaction a second
time and only analyze the materials that raise critical questions.
This time, choose option “Reconciliation FI with ML”. There should
be no performance problems because the scope of the selected data
is now much smaller. A further option is to create a database
extract in the background. This can then be used regardless of
performance problems in the update run for the analysis.
To improve performance, you must implement the following notes:
1045124, 973647, 924343, 912984, 855568, 849398, 849065, 770270,
768815, 715186.
Explanations for each view: Monitor
The monitor is the “initial view” after you start the
transaction. The total of all postings without or with material
reference is displayed on the selected accounts. Materials are
subdivided according to price determination control 2 and 3. The
listing is sorted according to material category and plant.
The total of all FI postings relating to material on the
selected accounts is displayed in the “FI balance” column. In the
“FI/ML balance” column, the system lists the differences that
accumulate in the Material Ledger. The diode in the FI column is
red when the values in the columns named above differ from one
another. This diode is only significant if the material status is
unequal to “Price determined” or “Closing Entry reversed”. The
material status is apparent from the SP, MP, C columns
(single-level price determined, multiple-level price determined or
entered at closing). In the situations mentioned above, differences
are only determined in the Material Ledger, but not yet posted in
FI.
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As for materials, you can go from the “Monitor” view to FI
postings for a more detailed analysis. The FI postings are then
sorted and totaled according to account and transaction key. This
move is also possible for postings without material reference.
Analysis “Not distributed”
The logic currently implemented in the price determination
allows for a stock coverage check to take place. If the existing
differences cannot be absorbed by the stock, a distorted price may
be determined. Due to the price limiter logic, the differences are
distributed according to stock. Differences that cannot be absorbed
by the stock are determined as not distributed. You can investigate
this phenomenon using the Value Flow Monitor. The price limiter
quantity (“PL Quantity” column) specifies for which number of
material pieces differences were determined. You can set the price
limiter quantity to zero. Then all differences can be absorbed by
the stock. No more non-distributed rows are created. In the “Price
PB = 0” column, the newly created price is displayed. The diode in
the “VB” column specifies whether the price limiter quantity can be
set to zero. If it is red, the price will be negative when you
reset the price limiter quantity. If this is the case, use
transaction MR22 to post a revaluation. If the diode is green, you
can delete the price limiter quantity. Then the relevant entry in
the database (field CKMLPP-PBPOPO) is deleted and the material
status is reset to “Quantities and Values entered”. You have to
execute the price determination for the material once again. You do
not have to use the stock coverage check during single-level price
determination. If you implement Note 855387, you have the option to
turn on the stock coverage check using the selection parameter.
Then you no longer have to reset the price limiter quantity. You
can carry out the price determination without stock coverage check
but with thresholds. Heavy price distortions are output as errors.
Then you can examine the relevant materials using the Value Flow
Monitor and determine the price accordingly (MR22, determine price
with stock coverage check, confirm distorted price).
In the “Monitor” and “Analysis not distributed” view, you can go
to a detailed analysis of the non-distributed values. The
calculation of the not distributed differences that exist due to a
price limiter quantity logic that is used are explained here (area
of calculation). However, there may be not distributed differences
that are not displayed in this area. There is no program error in
these cases. For the explanation of these not distributed
differences, see the other reasons listed in the related Note
908776. In addition, for the detailed analysis of the not
distributed differences, the system displays the relevant documents
that caused the not distributed values (area of relevant
documents). You can navigate to the source document.
Material list
A flat ALV list is delivered when all other views are executed
as ALV trees. You have the option to sort or filter the data
according to an ALV list or to apply functions to the values. You
cannot do this on the other views. The “Material list” view does
not contain any additional information, only additional
options.
Real Time Problems And Business Scenarios of ML- Actual
Costing.
Following are the solutions/ blogs and queries pertaining to
real time issues face by organization for Material Ledger- Actual
Costing.
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Problem:
I want to delete old variant & create new variant for Period
11 2009. or kindly suggest that It will be safe that we will run
same last year variant ?? Because I suspect that variant will cost
only for those material which was exist last year.
Solution: you can delete the cycle using transaction code
CKMLRUNDEL : Delete Costing Run.
Link:
https://answers.sap.com/questions/7094908/actual-costing–t-code-ckmlcp.html
Problem: CKMLCP – Error Message No. C+816
First determine price (m-lvl) for input material 50000014 ,
valuation area 1001
Solution: It was due to some missing Actual Rates per Activity
Type which causes this issue at first place. I re-executed ML Run
from scratch and it worked as required.
Link:
https://answers.sap.com/questions/12317172/ckmlcp—error-message-no-c816.html
Problem: How To Analyze Not Distributed Price Differences with
Value Flow Monitor (CKMVFM)
Refer Note 2123418
Not Allocated price difference.
1. By-product. You have configured by-product in your
production. The main product has a special apportionment structure
assigned. This apportionment structure will divide the input
costs/difference according to the actual output quantities of the
products received in the period. If the by-product has a receipt
quantity in the period, it will receive part of the price
difference.
2. Rounding. The Not Allocated value with very small
amount(comparing the total price difference) is normally caused by
rounding. The price difference is allocated according to
consumption quantity. When there are several types of consumption,
the sum of the allocated difference might be higher than the real
allocated value. Please check KBA 2134733 for more information.
3. Profit center valuation. If Not Allocated price difference
only happens in profit center valuation view, this should be
relevant. If the profit centers maintained in sender material and
receiver material are different, system will not allocate the price
difference.
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4. Change of fiscal year variant. If you changed the fiscal year
variant, especially the last day of period, the existing data in
quantity structure table(CKMLMV003 and CKMLMV004) might be
inconsistent. This inconsistency will cause price difference can’t
be allocated in multilevel price determination.
5. Plant transfer posting. You have plant transfer postings from
Plant A to Plant B. Plant transfer posting is a multi-level process
in material ledger. If you put the two plants in two different
costing runs, system can’t allocate the price difference.
6. Cycle. If the cycle is with non-convergency, there can also
be Not Allocated price difference.
7. Error KD560 The system is using apportionment structure to
roll-up the cost. In the setting of apportionment structure, you
have defined source structure. The cost elements for the sender are
not maintained in the source structure. Please see more detail in
KBA 1846670.
8. Migration to S/4 HANA This only happens after you perform
Material Ledger Migration into S/4 HANA release. This is mentioned
in SAP Note 2354768, that before you start migration, all Material
Ledger costing runs, no matter if actual costing (transaction
CKMLCP) or alternative valuation run (transaction CKMLCPAVR) need
to be finished (e.g. step ‘post closing’ successfully executed, no
error, no materials with status ‘open’). If you don’t follow this,
it could happen that in one period, there are postings both before
and after the migration. If you start costing run here, it might
happen that system can’t distinguish the price difference
correctly. So “Not Allocated” value happens.
Link:
https://blogs.sap.com/2013/02/15/how-to-analyze-not-distributed-price-differences-with-value-flow-monitor-ckmvfm/
Problem: How to open the MM previous periods, after the ML-
Actual Costing activation, for the creation(Plants) and entries (of
Materials) on the new Plants on which ML-Actual Costing is not
active.
Link:
https://answers.sap.com/questions/12900355/how-to-open-the-mm-closed-period-when-material-led.html
Problem: ML is Revaluing the consumption as the difference of
24,231.49/= is allocated for % Qty which is consumed in Production.
It’s not revaluing the Stock transfer made to other Plant of Qty
505.
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Link:
https://answers.sap.com/questions/12547238/not-allocated-variances-in-ml-closing—ckm3n.html
Problem: How to change the Price determination and Price Control
for the Material when ML actual costing is active. At Material
Ledger production startup CKMSTART, the system automatically sets
all materials to price determination control 2. If required, you
can change the price determination control using transaction
CKMM.
Link: https://wiki.scn.sap.com/wiki/display/ERPFI/CKM
Problem: ML Document reversal on MIRO cancellation/reversal. On
reverse of MIRO, system should also reverse ML Document and all
price difference posted against invoice. However, in CKMVFM (Value
monitor flow), system is showing reversal documents and posting
differences on material which should not be done.
Link:
https://answers.sap.com/questions/12900755/ml-document-reversal-on-miro-reversal.html
Problem:
-
How to Update the Actual Price (PUP) of current month as
Standard Price for Next Month.
I have a small doubt, after Marking Material Prices through
CKMLCP do we need to following below steps of Cost Estimate
Creation or not :
Maintaining Planned Activities for the Month? Maintaining
Planned Activity Rates for the Month? Executing Planned Price
Calculation for the Month?
Link:
https://answers.sap.com/questions/12618582/mark-material-prices—ckmlcp.html
Problem: Reverse marking and cost release: We did CKMLCP for
May, all materials have done post closing, there is one finished
product 120000, besides post closing, we also did mark and price
release using CKME, now I want to reverse 120000 for marking and
price release? which steps we need to follow? thanks
Link:
https://answers.sap.com/questions/10126139/reverse-marking-and-cost-release.html
Problem:
Material ledger must be configured to attend the Brazilian
legislation, that establishes the total absorption for production
costs to inventory and COGS.
The actual tariff must be applied to activity types used on
production cost centers previously with standard price allocating
the manufacturing expense price differences.
Link:
https://blogs.sap.com/2016/05/12/material-ledger-configuration/
Problem: Error Message C+805 and C+712 Material Ledger
CKMLCP
I have made the back dated posting after ML-Actual Costing
Closure in previous period i-e; 01/2021. Now in Actual Costing
Closing Run of current period i-e; 02/2021, I face error (code
mention above) when i run single level price det. for period
02/2021 in CKMLCP it give me error C+805 which explains to close
the previous period which is 01/2021 and for this period the status
of the material is value entered.
Solution:
-
Also the Program Report Z_ML_SET_PP_STATUS_70 is used to jump
the Material to next period for ML-AC Closing.
Link:
https://answers.sap.com/questions/10217355/error-message-c805-and-c712-material-ledger-ckmlcp.html
Problem: You must first allow closing entries for period 003 /
2021
Message no. C+831
Diagnosis
You are trying to perform closing entries before closing entries
were allowed.
Reason:
The period-end closing in Material Ledger can only be done for
the previous period. Thus, you need to close the April period
before you can do the period-end closing in t-Code: CKMLCP.
Also, you can use the t-Code CKMG, as mention in below link.
Link:
https://answers.sap.com/questions/12393808/you-are-not-allowed-to-execute-closing-entries-in-.html
References: Special thanks to Srinavasa Kasireddy
https://blogs.sap.com/2019/03/07/material-valuation-with-material-ledger/comment-page
1/#comment-453516 – By Srinavasa Kasireddy
https://blogs.sap.com/2014/05/12/automation-of-actual-costing-run-ckmlcp-in-material-ledger/
https://archive.sap.com/discussions/thread/1772674
https://archive.sap.com/discussions/thread/3346981
https://answers.sap.com/questions/12547238/not-allocated-variances-in-ml-closing—ckm3n.html
https://wiki.scn.sap.com/wiki/display/ERPFI/CKMM
https://answers.sap.com/questions/12900755/ml-document-reversal-on-miro-reversal.html
-
https://answers.sap.com/questions/12618582/mark-material-prices—ckmlcp.html
https://answers.sap.com/questions/12317172/ckmlcp—error-message-no-c816.html
https://wiki.scn.sap.com/wiki/display/ERPFI/Value+flow+monitor
https://blogs.sap.com/2016/05/12/material-ledger-configuration/
https://answers.sap.com/questions/10217355/error-message-c805-and-c712-material-ledger-ckmlcp.html
https://answers.sap.com/questions/12393808/you-are-not-allowed-to-execute-closing-entries-in-.html
https://answers.sap.com/questions/7094908/actual-costing–t-code-ckmlcp.html
Alert Moderator
Assigned tags
SAP S/4HANA FIN Controlling FIN Cost Object Controlling FIN
Material Ledger
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25 Comments You must be Logged on to comment or reply to a
post.
Bhaskar Basam
January 8, 2018 at 4:55 am
Hi Muhammad,
Very well explained.
Bhaskar
o Like(0)
Farooq Baig
May 14, 2018 at 8:47 am
Thank you Muhammad
very well explained whole process, waiting to see your other
blogs.
o Like(0)
muhannad hamdy
May 23, 2018 at 7:34 am
Great job , with high effort , thanks
-
o Like(0)
Nitin Goyal
October 14, 2018 at 5:58 pm
Hi Muhammad Muzammil Khan,
Nice document.
Just one addition, In case of Material price determination 2 and
price indicator in material master is "S", We could run actual
costing (PUP).
In few companies, Price determination 2 is used and "S" is used
for SFG & FG and "V" is used for Traded goods and RM. In such
scenario, Actual costing could be used for SFG and FG
Let me know if have different view on the same
Regards,
Nitin Goyal
o Like(0)
o
Muhammad Muzammil Khan Post author
November 8, 2019 at 7:40 am
Price determination
2 Transaction-based with Price Control S....
(Std price is used for Valuation.
MVA is used for Info purpose )
If with ML active you use price determination 2 then you can
have both standard and moving average price (S or V) but cannot do
inventory valuation at actual costing (PUP).
2 Transaction-based with Price Control V...
So, if you decide to use 2 and V then the purpose of ML would
only be for parallel valuation (not for actual costing).
Like(0)
-
Nitin Kumar
January 10, 2020 at 5:47 pm
Hi Muhammad,
Thanks for your response. Just a quick question..
You are right that with Price determination 2, We can't have
Actual costing.
May we use price determination 3, for Semi-finished Good and
Finished Goods and Price determination 2 (with V or S) for Raw
Material. This is how, we may do actual costing for Semi-finished
and Finished Goods... Will this scenario Works?
Like(0)
Muhammad Muzammil Khan Post author
March 3, 2020 at 4:39 am
POSSIBLE BUT NOT RECOMMENDED
Price Determination 2 is like MVA Price. This is possible but
not recommended by SAP to maintain RAW on Price Detr 2.
Reasons because your are than unable to calculated and analyze
Price variance for Raw Materials, and also Raw Mat is issued on SFG
and FG on MVA Price.
Like(0)
G Lakshmipathi
November 1, 2018 at 4:48 am
Not sure how much hours you took to frame this blog but really
it is a wonderful document for all. Keep blogging with such
wonderful informations.
-
o Like(1)
Paul Constantine
November 21, 2018 at 11:23 am
SUPERB! I
o Like(0)
Raja Kumar
December 11, 2018 at 6:52 am
Excellent
o Like(0)
MA Aleem
January 9, 2019 at 1:32 pm
This is superb article, very well presented
Kudos to the effort
o Like(0)
Abdullah Galal
January 15, 2019 at 10:53 pm
Amazing effort, you're a great Blogger.
Thank you for sharing.
-
o Like(0)
Rosario Selvakumar
January 29, 2019 at 11:26 am
Nice article...well documented...You have a professional touch
in your writing....very simple and to the point explanation...Keep
blogging...
o Like(0)
Huseyin Cinar
May 28, 2019 at 8:07 am
Thank you for sharing this amazing document.
Best Regards,
Hüseyin
o Like(0)
John Joyce
June 5, 2019 at 3:34 am
This is very useful - thankyou
o Like(0)
Mustafa Zoeb Sakerwala
June 6, 2019 at 7:02 am
Hi Muhammed
-
A very nice article and I wish to recommend it to all the young
guns who are enthusiastic to great a grip over SAP - Management
Accounting (SAP CO) Area. This article would certainly help them a
lot to get them started in ML/AC.
All the best.
Regards
Mustafa Sakerwala
o Like(0)
Ranganath D
June 18, 2019 at 5:26 pm
Hi Muhammed,
This is really a very beautiful explanation, Kindly can you also
explain about the CKMLCPAVR cumulative actual costing run
process.
Regards,
Ranganath
o Like(0)
Takashi Takagi
July 25, 2019 at 7:02 am
Very much detailed and thank you for sharing such a great
effort..
I hope you have a great success wonderfull carrier
o Like(0)
Sushant Tyagi
November 13, 2019 at 10:56 am
very useful document
-
o Like(0)
Maggie Liu
January 12, 2020 at 11:11 am
excellent! thank you for sharing us this useful article.but I
still have one question. we have a material which is trading
goods.what would happen if we use price determination S+2?
no.actual costing caculation when run ML?
o Like(0)
Selvaraj Kaveri
June 17, 2020 at 1:53 am
Thanks Bro , Great work . Expect more .Wish you all the
best.
o Like(0)
i siva prasanna kumar
September 27, 2020 at 6:00 am
i have forgotten to activate material ledger and created a
material , now how to activate current material ??
o Like(0)
Muhammad Hasan Mufid
November 5, 2020 at 3:27 am
Hi Muzammil
Excellent comprehensive explanation, thank you for this useful
documentation.
-
Regards,
Muhammad Hasan Mufid
o Like(0)
HAMZA BOHARI
March 9, 2021 at 5:34 am
Hi Muzammil
Excellent article. Very well explained. Keep posting
Thanks & regards
Hamza Bohari
o Like(0)
Azeem Aslam
March 24, 2021 at 10:14 am
Hi Muzzammil
It's great to have a such a blog on the internet.
Could please anyone comment why this price difference not
distributed?
-
Thanks
Azeem