08/09/2022, 21:14 Material Ledger and Value Flow Monitor – Not Distributed and non-allocated balances:CKMLCP and CKMVFM

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Pavan Kumar Arvapally

May 10, 2016
| 2 minute read

Material Ledger and Value Flow

Monitor – Not Distributed and non-
allocated balances:CKMLCP and
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Material Ledger and Value flow monitor. CKMLCP and  CKMVFM

The objective of the blog is to explain the reason for Non distributed PRD
differences in the value flow monitor.

By reading this blog you can able to answer the following questions:

Why should we use Value flow Monitor..?

The reason why price differences/ exchange rate differences not
apportioned to the SFG/FG Materials.?

Material Ledger and Value Flow Monitor – Not Distributed and non-
allocated balances:
https://blogs.sap.com/2016/05/10/material-ledger-and-value-flow-monitor-not-distributed-and-non-allocated-balances/ 1/9
08/09/2022, 21:14 Material Ledger and Value Flow Monitor – Not Distributed and non-allocated balances:CKMLCP and CKMVFM | SAP Blogs

The blog is more about the value flow monitor– Not Distributed and non-
allocated balances, before that I will give a brief introduction to Material
Ledger as it is helpful for the newcomers.

The objective of the Material Ledger:

The primary objective of the material ledger functionality is arriving the

actual cost and we can see the results in multiple valuations and multiple
currencies.

How system arrives the actual cost:

Initially, all the transactions are happening with the standard price,
during CO Month end process we will get the variances and those
variances got settled when we execute the settlement.

By following the CO Month end process (OH Calculation – There are

many methods, WIP calculation, Variance calculation, and Settlement),
we are able to settle the variances to the production or process order, but
unable to get the actual price.

Importance of ML Run:

By performing ML run these variances/ price differences/exchange rate

differences will get settled to the respective material. We will get the
actual price. Actual price can be called as a periodic unit price (PUP).

I will start the primary topic – Value flow monitor – Not Distributed
and Non Allocated Balances:

By reading the functionality of ML, management and everyone feels that

all the variances and differences due to price and exchange rate should
get settled to the material and be expecting no balances should appear in
PRD GLs.

https://blogs.sap.com/2016/05/10/material-ledger-and-value-flow-monitor-not-distributed-and-non-allocated-balances/ 2/9
08/09/2022, 21:14 Material Ledger and Value Flow Monitor – Not Distributed and non-allocated balances:CKMLCP and CKMVFM | SAP Blogs

Management expectation – Differences in PRD should be zero. But it is

very much difficult in real time scenarios…but …..Why…?

We will look into that……Here I am posting two questions:

Is the actual price arrived during ML run is accurate only if there are
no differences found in Value flow monitor….?
Is there any hard and must rule, that the differences in PRD should be
apportioned to the SFG/FG to arrive at the actual price..?

By the end of this blog, you can able to answer those questions. Please
find the further details:

 Nature of the differences:

Differences
Price differences
Exchange rate differences
Single level differences
Single level price differences
Multilevel differences
Multilevel price differences
Multilevel exchange differences

Reason for the differences which are appearing in the Value flow
monitor:

There are many differences, it depends on the transaction history of that

material.

Example – This issue I have faced recently.

There is a huge difference appearing in the value flow monitor. 

Management asking for the clearing that difference.

Then I went into the transaction history of that material.

https://blogs.sap.com/2016/05/10/material-ledger-and-value-flow-monitor-not-distributed-and-non-allocated-balances/ 3/9
08/09/2022, 21:14 Material Ledger and Value Flow Monitor – Not Distributed and non-allocated balances:CKMLCP and CKMVFM | SAP Blogs

I found some process orders which were partially confirmed and GR not
happen. They feel that getting the output from that process order is no
longer possible then they have confirmed with lower quantity and
completed the final delivery.

During CO Month end process, system posted a huge variance and got
settled.
After performing ML run, while analyzing the Value flow monitor
found these differences which are not apportioned to the material.
The system has cleverly ignored the difference (Which is not practical
and genuine) while calculating actual price calculation.
Still, there is an option of apportioning these differences if
management feels it is required.
If we apportion, in my case resulted price will be negative….so we
strict to Value flow monitor.

Hope you got the answers to those questions mentioned above.

Last but not least:

https://blogs.sap.com/2016/05/10/material-ledger-and-value-flow-monitor-not-distributed-and-non-allocated-balances/ 4/9
08/09/2022, 21:14 Material Ledger and Value Flow Monitor – Not Distributed and non-allocated balances:CKMLCP and CKMVFM | SAP Blogs

Every error is not dangerous, sometimes it is an alert.  Every difference

need not distribute.

Regards,

Pavan Kumar Arvapally

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Assigned Tags

FIN Controlling

FIN (Finance)

SAP Profitability and Cost Management

material leder

material ledger close

product costing

sap erp financials

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08/09/2022, 21:14 Material Ledger and Value Flow Monitor – Not Distributed and non-allocated balances:CKMLCP and CKMVFM | SAP Blogs

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13 Comments

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Prasad Patil
May 11, 2016 at 4:36 am

Hello

Nice document with nice explanation.

Regards

Prasad

Like 0 | Share

Pavan Kumar Arvapally | Blog Post Author

May 11, 2016 at 4:38 am

Thank you Prasad...

Regards,

Pavan Kumar Arvapally

Like 0 | Share

Kamal Kumar SAP Consultant/Trainer

May 11, 2016 at 4:47 am

Hello Pavan

Simple and nice analysis..

https://blogs.sap.com/2016/05/10/material-ledger-and-value-flow-monitor-not-distributed-and-non-allocated-balances/ 6/9
08/09/2022, 21:14 Material Ledger and Value Flow Monitor – Not Distributed and non-allocated balances:CKMLCP and CKMVFM | SAP Blogs

Sometimes people (client) are worried about this non-allocated/undistributed  amount in CKMLCP.. This
topic may give them some confidence

Kamal

Like 0 | Share Pavan Kumar Arvapally | Blog Post Author

May 11, 2016 at 5:11 am

Hi Kamal,

Thanks for the feed back.Added a screen for more clarity...

Regards,

Pavan Kumar Arvapally

Like 0 | Share

Former Member
May 13, 2016 at 5:41 am

I think that this note 908776 - Not included/not allocated and not distributed is helpful for your document.

Like 0 | Share

Pavan Kumar Arvapally | Blog Post Author

May 13, 2016 at 8:33 am

Thank you Big Choi...

Like 0 | Share

Manuel Robalinho
June 9, 2016 at 6:18 pm

Excelent!

Very good aproach!

Like 0 | Share

Pavan Kumar Arvapally | Blog Post Author

June 10, 2016 at 4:34 am

Thank you Manuel....

https://blogs.sap.com/2016/05/10/material-ledger-and-value-flow-monitor-not-distributed-and-non-allocated-balances/ 7/9
08/09/2022, 21:14 Material Ledger and Value Flow Monitor – Not Distributed and non-allocated balances:CKMLCP and CKMVFM | SAP Blogs

Like 0 | Share

Changlin Ke
March 24, 2018 at 5:56 am

Are there a program to apport the Not distributed value?

Are the Not distributed value come from partially confirmed process order?

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satish kumar
December 11, 2019 at 1:06 pm

Hi Pavan,

Good Explanation. This is very useful for me.

Thank you so much for given the valuable information.

Best Regards,

Satish Kumar. N

Like 0 | Share

Cuneyt AZAK
January 17, 2021 at 12:09 pm

Hi everyone,

How can i solve this problem? How can i distribute that not distributed values?

Thanks a lot!

Like 0 | Share

Pavan Kumar Arvapally | Blog Post Author

April 29, 2021 at 5:26 am

https://blogs.sap.com/2016/05/10/material-ledger-and-value-flow-monitor-not-distributed-and-non-allocated-balances/ 8/9
08/09/2022, 21:14 Material Ledger and Value Flow Monitor – Not Distributed and non-allocated balances:CKMLCP and CKMVFM | SAP Blogs

Yes Cuneyt Azak  it is possible by using price limiter indicator in ckmvfm.

Pavan

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Vaishali Gupta
January 11, 2022 at 9:39 am

Nicely explained and documented.

Wonderful work !!

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