CO: Material Ledger

1. Describe the process of Material Ledger actual costing:

Definition:

Material Ledger is a Tool that collects transaction data for materials whose
master data is stored in material master.

The material ledger uses this data to calculate prices to valuate these
materials.

The material ledger is the basis of actual costing. It enables material

inventories to be valuated in multiple currencies and allows the use of
different valuation approaches.

It would be a good idea to have a better understanding about the Product Cost
Flow which includes:
1. Standard Cost Estimates and related configuration/processes
2. Work In Process/Variance/Settlement Processes under different
manufacturing scenarios
3. Material Valuation and Movements throughout the Supply Chain and
manufacturing cycle.

Material Ledger as a Tool fufills two basic objectives:

1. ability to manage material prices in multiple currencies/valuations,
2. actual costing.

ML is a part of CO Module. IMG>Controlling>Product Cost Controlling>Actual

Costing/Material Ledger. 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.

Let us see what this ML Subledger will do and help business:

1. Inventory Valuation/revaluation
2. Visibility of Price changes
3. Updating Standard Cost with Actual Prices (optional)
4. Periodic Unit price etc
Displaying Material Ledger Documents

Procedure When Document Number is Known

1. Choose Accounting  Controlling  Product Cost Controlling   Actual
Costing/Material Ledger  Information System  More Reports   Material Ledger
Document.

2. Enter the document number and the year and choose Header .

Procedure When Document Number is Unknown

1. Choose Accounting  Controlling  Product Cost Controlling   Actual

Costing/Material Ledger  Information System  More Reports   Material Ledger
Document.

2. Choose the possible entries in the field Document number .

A screen appears where you can search for documents.

3. Enter the selection criteria and choose Execute .

A list of documents that meet the selection criteria appears.

4. Select the document number of the desired report.

The system takes the document number and the year.

5. Choose Enter
Status Management of Material Ledger Data

Use

The system automatically assigns a period status to material ledger data. The
period status indicates which functions have been performed for the material,
and also controls which functions are allowed.

Integration

The material ledger recognizes scenarios such as whether valuation-relevant

transactions were performed for materials or whether the program for period
closing was carried out.