2019-09-23 2577551

2577551 - Material Ledger Production Setup in S4HANA

(Green field approach)
Version 5 Type SAP Note
Language English Master Language English
Priority Recommendations / Additional Info Category Consulting
Release Status Released for Customer Released On 14.10.2019
Component CO-PC-ACT ( Actual Costing/Material Ledger )

Please find the original document at https://launchpad.support.sap.com/#/notes/ 2577551

Symptom

You set up the S4HANA system following the green field approach (no migration from ERP or sFIN system)
and you want to set up the Material Ledger (ML) functionality from the scratch.

In the case of migration/transition from ERP to S4HANA check the following notes:

2267834 - Material Ledger Obligatory for Material Valuation

2337383 - Material Ledger Obligatory for Material Valuation (upgrade from S/4HANA 1511 to S/4HANA 1610)

Other Terms

Mateiral Ledger customizing, Material Ledger production startup, S4HANA green field approach

Reason and Prerequisites

Material Ledger is mandatory in S4HANA. In this note we describe the prerequisites, and all steps to
configure and set up Material Ledger.

Solution

Set up of the Material Ledger must be in sync with the General Ledger set up and the Currency and Valuation
Profile.

Prerequisites:

Therefore, before you set up the Material Ledger execute the following steps, exactly in this order:

1) [OPTIONAL] Only, in the case you want to use valuations 1 - Group Valuation and/or 2- Profit Center
Valuation, set up correctly Currency and Valuation Profile in SAP Customizing Implementation Guide-
>Controlling->General Controlling->Multiple Valuation Approaches/Transfer Prices->Basic Settings->Maintain
Currency and Valuation Profile and assign it to the controlling area in Customizing Implementation Guide-
>Controlling->General Controlling->Multiple Valuation Approaches/Transfer Prices->Basic Settings->Assign
Currency and Valuation Profile to Controlling Area. Also check the follow up customizing settings in SAP
Customizing Implementation Guide->Controlling->General Controlling->Multiple Valuation
Approaches/Transfer Prices->Basic Settings.

2) Set up the Currencies in Universal Journal as described in the note 2344012. Please consider that, ML
currencies can be only in the first four columns of the Universal Journal (H, K, O, V). Starting from
OP1809(S4CORE 103) it is possible to have ML currencies in all columns of the Universal Journal.

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2019-09-23 2577551

Activate Material Ledger Customizing:

In order to customize the Material Ledger follow these steps:

1) SAP Customizing Implementation Guide->Controlling->Product Cost Controlling->Actual Costing/Material

Ledger->Assign Currency Types and Define Material Ledger Types or transaction OMX2. Define ML Type
with the description, the flag 'Manual' is automatically checked out. Using ' Define individual characteristics'
you can define Currency and Valuation Types - 10 (Company Code Currency in Legal Valuation) is a default.
Other two can be chosen from the set of {11,12,30,31,32,40,50,60}. Hence, Material Ledger can be defined
only up to three Currency and Valuation Types. In OP1809 (S4CORE 103) the note 2752721 - Material
Ledger supports up to 3 Currency and Valuation Types in OP1809 prevents that Material Ledger is
configured with more than three currencies. Also, the customer defined currencies from the namespace Y*
and Z* cannot be used in Material Ledger. Furtheron, if you decide to use valuations 1- Group Valuation and
2 - Profit Center Valuation then only one currency can be chosen within valuation - either 11 or 31 (for
valuation 1) respectively, either 12 or 32 (for valuation 2) for Material Ledger Type definition.

2) SAP Customizing Implementation Guide->Controlling->Product Cost Controlling->Actual Costing/Material

Ledger->Assign Material Ledger Types to Valuation Area or transaction OMX3. All valuation areas of one
company code must be assigned to the same Material Ledger type. Status Icon shows the consistency
between ML currencies and FI currencies. If there is a mismatch, the status will be red. Please note that the
ML currencies are a subset of FI currencies.

3) SAP Customizing Implementation Guide->Controlling->Product Cost Controlling->Actual Costing/Material

Ledger->Activate Material Ledger for Valuation Areas or transaction OMX1. Here you set ML Activ flag, and
define Price Determination(2 -Transaction-Based, 3 - Single-/Multilevel Method) . You can also set the Price
Determination Binding in the Valuation Area by checking out the corresponding flag.

Setting Material Ledger Productive:

4) [OPTIONAL] If you intend to use Material Ledger Actual Costing, then it should be activated it before
setting the Material Ledger productive. Please follow the customizing path SAP Customizing Implementation
Guide-->Controlling->Actual Costing/Material Ledger->Actual Costing->Activate Actual Costing. If you decide
to activate the Actual Costing at later point of time, then you will need to do it by transaction run
FCML4H_STARTUP (Set ML Actual Costing as Productive (retroactively). Please check the note 2395913.

5) [OPTIONAL] If you intend to activate Actual Cost Component Split, then it should be activated before
setting Material Ledger productive as well. Please follow the customizing path SAP Customizing
Implementation Guide-->Controlling->Actual Costing/Material Ledger->Actual Costing-> Activate Actual Cost
Component Split.

6) Now you can set up the Material Ledger productive. SAP Menu->Logistics->Materials Management-
>Valuation->Actual Costing/Material Ledger->Enviroment->Production Startup->Set Valuation Areas as
Productive or transaction CKMSTART. All material master data will be created and the final check of the
currencies will be carried out. The connection between ML relevant currencies (CURTPs) of one company
code and the ledger/currency set up on the other side will be defined and frozen. Please be aware, that once
the valuation areas are set productive, you cannot change ledger/company code assignement in General
Ledger. If there is a necessity to do so, check the note 2512618 - Cases when to deactivate Material Ledger
and carry out new productive start in order to see whether your case is applicable.

Additional Information:

Technical simplification within ML has been carried out in S4HANA. More information are to be found in the
notes:

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2019-09-23 2577551

2332591 - S4TWL - Technical Changes in Material Ledger

2270546 - S4TWL - Technical Changes in Material Ledger

Software Components

Software Component Release

S4CORE 100 - 100

S4CORE 101 - 101

S4CORE 102 - 102

This document refers to

SAP Note/KBA Title

2553586 S/4HANA: error MLCCS009 or C+099 or missing cost component split data in table MLDOCCCS

2426246 MLCCS003 or OMX3: error with currency type 31, ML currency type but not FI currency type

2512618 Cases when to deactivate Material Ledger and carry out new productive start

2395913 ML Actual Costing Live (ACT_LIVE) in table CKMLV

2344012 Currencies in Universal Journal

2337383 S4TWL - Material Valuation Data Model Simplification in S/4HANA 1610 and Higher

2332591 S4TWL - Technical Changes in Material Ledger

2270546 S4TWL - Technical Changes in Material Ledger

2267834 S4TWL - Material Ledger Obligatory for Material Valuation

This document is referenced by

SAP Note/KBA Title

2810569 S/4HANA Message FINS_ACDOC_CUST298 with transaction FINSC_LEDGER

2695405 Material Ledger must be set to productive - FINS_ML_UTIL002

2553586 S/4HANA: error MLCCS009 or C+099 or missing cost component split data in table MLDOCCCS

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2019-09-23 2577551
2708588 Transfer purchase order history when the material ledger is active.

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