Material Ledger in SAP S/4HANA: Functionality and Configuration, 2nd Edition

Dear Reader
Notes on Usage
Table of Contents
  Preface
      Who This Book Is For
      How This Book Is Organized
      Acknowledgments
1   Introduction to the Material Ledger in SAP S/4HANA
    1.1   What Is the Material Ledger?
    1.2   The Before: The Material Ledger in SAP ERP
        1.2.1   Inventory Valuation
        1.2.2   Multiple Valuation Approaches
        1.2.3   Actual Costing
    1.3   The After: The Material Ledger in SAP S/4HANA
        1.3.1   SAP S/4HANA Finance
        1.3.2   Why the Material Ledger Is Mandatory
        1.3.3   Inventory Valuation in SAP S/4HANA
    1.4   Summary
2   Configuring Currency Types, Ledgers, and Valuation Views
    2.1   Defining Currency Types for the General Ledger
        2.1.1   Standard SAP Currency Types
        2.1.2   Defining Standard Currency Types in the Universal Journal
    2.2   Currency Conversion Settings for Company Codes
    2.3   Defining the Currency and Valuation Profile
        2.3.1   Maintaining the Currency and Valuation Profile
        2.3.2   Assigning the Currency and Valuation Profile to the Controlling Area
        2.3.3   Creating Versions for the Valuation Methods
        2.3.4   Activating the Currency and Valuation Profile
    2.4   Defining Ledgers for Valuation Views
        2.4.1   Ledgers in the Universal Journal
        2.4.2   Multi-Valuation Ledger
        2.4.3   Single Valuation Ledger
    2.5   Defining Ledgers for Controlling Versions
    2.6   Material Ledger Activation for Currencies and Valuations
        2.6.1   Defining Material Ledger Types and Assigning Currency Types
        2.6.2   Assigning Material Ledger Types to Valuation Areas
        2.6.3   Activating Material Ledgers for Valuation Areas
    2.7   Summary
3   Group Currency and Valuation
    3.1   Group Currency
        3.1.1   Setting Up Group Currency for a Company Code
        3.1.2   Changing Material Cost
        3.1.3   Making a Purchase
    3.2   Group Valuation
        3.2.1   Transfer Pricing with Group Valuation
        3.2.2   Group Valuation with Standard Cost
        3.2.3   Group Valuation Configuration for WIP
    3.3   Cross-Company Purchasing
        3.3.1   Intercompany Setup
        3.3.2   Intercompany Scenario
    3.4   Summary
4   Profit Center Valuation
    4.1   Transfer Pricing Logic with Profit Center Valuation
        4.1.1   Defining the Currency Type for Profit Center Accounting
        4.1.2   Defining Transfer Pricing for Profit Center Valuation
        4.1.3   Settings for Internal Goods Movement
    4.2   Standard Cost and Profit Center Valuation
        4.2.1   Defining a Costing Variant for Profit Center Valuation
        4.2.2   Assigning Transfer Price Variant to the Costing Version
        4.2.3   Configuring a Delta Cost Component
        4.2.4   Configuring a Special Procurement Key
        4.2.5   Calculating Standard Cost
        4.2.6   Manually Updating the Material Cost
    4.3   Profit Center Valuation Configuration for WIP
    4.4   Cross-Profit Center Purchasing
    4.5   Manufacturing Orders with Profit Center Valuation
        4.5.1   Material Consumption in a Different Profit Center
        4.5.2   Goods Receipt in a Different Profit Center
    4.6   Summary
5   Configuring Actual Costing
    5.1   Material Ledger Activation for Actual Costing
        5.1.1   Maintaining Number Ranges for Material Ledger Documents
        5.1.2   Configuring Dynamic Price Changes
    5.2   Material Update
        5.2.1   Defining Movement Type Groups of the Material Ledger
        5.2.2   Assigning Movement Type Groups of the Material Ledger
        5.2.3   Defining the Material Update Structure
        5.2.4   Assigning Material Update Structure to the Valuation Area
    5.3   Actual Costing
        5.3.1   Activating Actual Costing
        5.3.2   Creating User-Defined Names for Receipts/Consumption
        5.3.3   Assigning User-Defined Names for Receipts/Consumption
        5.3.4   Activating Actual Cost Component Split
        5.3.5   Activating WIP at Actual Cost
    5.4   Account Determination
        5.4.1   Cost/Price Differences for the Material Ledger
        5.4.2   Materials Management Exchange Rate Differences
        5.4.3   Revaluation of Other Consumables
        5.4.4   Accruals and Deferred Accounts for the Material Ledger
        5.4.5   Activity Price Differences
        5.4.6   Material Ledger Cost Center Absorption
        5.4.7   WIP from Price Differences: Materials
        5.4.8   WIP from Price Differences: Activity Types
        5.4.9   Differences of Canceled WIP: Materials
        5.4.10   Differences of Cancelled WIP: Activity Types
    5.5   Summary
6   Actual Costing Run and Analysis
    6.1   Actual Costing Cockpit
    6.2   Actual Costing Run
        6.2.1   Setup
        6.2.2   Selection
        6.2.3   Preparation
        6.2.4   Settlement
        6.2.5   Post Closing
        6.2.6   Mark Prices
        6.2.7   Additional Options
    6.3   Alternative Valuation Run
        6.3.1   Executing the Alternative Valuation Run
        6.3.2   BAdI for Alternative Valuation Run
    6.4   Material Price Analysis
        6.4.1   Navigating the Material Price Analysis
        6.4.2   Price Determination Structure
        6.4.3   Price History
        6.4.4   Material Price Analysis for Old SAP ERP Data
        6.4.5   Actual Cost Components
        6.4.6   Valuated Quantity Structure
    6.5   Activity Consumption Analysis
    6.6   Value Flow Monitor
        6.6.1   Not Distributed Differences
        6.6.2   Not Allocated Differences
        6.6.3   Using the Value Flow Monitor
    6.7   General Ledger Postings Made by the Material Ledger
        6.7.1   Closing Document of the Material Ledger
        6.7.2   Analyzing General Ledger Postings Made by the Material Ledger
    6.8   Summary
7   Actual Costing and Peripheral Transactions
    7.1   Changing Standard Cost Mid-Month
        7.1.1   Restriction on Changing the Standard Cost Mid-Month in SAP ERP
        7.1.2   Changing the Standard Cost Mid-Month in SAP S/4HANA
    7.2   Debiting/Crediting Material
        7.2.1   Debiting/Crediting a Material Directly
        7.2.2   Defining Reasons for the Price Change
        7.2.3   Debiting/Crediting a Material with an Alternative General Ledger Account
        7.2.4   Debiting/Crediting a Material to a Specific Cost Component
    7.3   Distributing Consumption Variances
        7.3.1   Activating Distribution of Consumption Variances
        7.3.2   Distributing Differences for Materials
        7.3.3   Distributing Differences for Activities
    7.4   Manually Changing Cost Components
        7.4.1   Price Difference Account for Cost Component Change
        7.4.2   Changing the Cost Component
    7.5   Subsequent Activation of Actual Cost Component Split
    7.6   Deactivating Statistical Moving Average Price
    7.7   Summary
8   Parallel Cost of Goods Manufactured
    8.1   What Is Parallel Cost of Goods Manufactured?
    8.2   Activating the Business Function
    8.3   Maintaining the Valuation View
    8.4   Defining Ledgers and Accounting Principles
    8.5   Configuring Parallel Valuation
    8.6   Calculating a Parallel Activity Rate
        8.6.1   Calculating the Depreciation in Different Accounting Principles
        8.6.2   Posting Activity Consumption to a Production Order
    8.7   Calculating with Multiple Costing Runs
        8.7.1   Actual Costing Run
        8.7.2   Alternative Valuation Run
    8.8   Summary
9   Balance Sheet Valuation
    9.1   What Is Balance Sheet Valuation?
    9.2   Configuring Balance Sheet Valuation
        9.2.1   Activating FIFO/LIFO Valuation
        9.2.2   Defining Valuation Level
        9.2.3   Defining FIFO/LIFO-Relevant Movement Types
        9.2.4   Defining FIFO/LIFO Methods
        9.2.5   Configuring FIFO/LIFO Valuation Areas
        9.2.6   Defining LIFO Layer Versions
        9.2.7   Defining Document Types for the Lowest Value Method
        9.2.8   Defining Movement Types for the Lowest Value Method
        9.2.9   Defining the Key Figure Scheme
        9.2.10   Setting Up Valuation Alternatives
        9.2.11   Defining the FIFO Variant
    9.3   FIFO Valuation
        9.3.1   Creating a Purchase Order and Goods Receipt
        9.3.2   Activating a FIFO Material
        9.3.3   Calculating Periodic Receipt Values
        9.3.4   Calculating the FIFO Price
    9.4   LIFO Valuation
        9.4.1   Creating Purchase Orders and Goods Receipts
        9.4.2   Activating a LIFO Material
        9.4.3   Calculating the LIFO Price
    9.5   Lowest Value Determination
    9.6   Using Balance Sheet Valuation in Actual Costing
    9.7   Summary
10   The Material Ledger and Peripheral Applications
    10.1   Split Valuation
        10.1.1   Configuring Split Valuation
        10.1.2   Creating a Material Master with Multiple Valuation Types
        10.1.3   Procuring Split Valuated Materials
        10.1.4   Calculating Actual Cost for Split Valuated Material
    10.2   Actual Costing for Make-to-Order Products
        10.2.1   Make-to-Order Production Process
        10.2.2   Calculating the Actual Cost
    10.3   Daily Actual Costs
        10.3.1   Creating Actual Costing Runs for Future Periods
        10.3.2   Creating Variants for Actual Costing Steps
        10.3.3   Creating and Sequencing Background Jobs
    10.4   Exchange Rate Differences
        10.4.1   Configuring the Treatment of Exchange Rate Differences
        10.4.2   Purchasing a Material with Exchange Rate Differences
        10.4.3   Exchange Rate Differences in the Material Price Analysis
    10.5   Actual Costing across Company Codes
        10.5.1   Cross-Company Scenario
        10.5.2   Setting Up Actual Costing across Company Codes
        10.5.3   Material Price Analysis before the Actual Costing Run
        10.5.4   Material Price Analysis after the Actual Costing Run
    10.6   Margin Analysis
        10.6.1   COGS Account Split by Cost Components
        10.6.2   Production Variance Account Split by Variance Categories
    10.7   Stock in Transit
        10.7.1   Stock-in-Transit Scenarios
        10.7.2   Configuring Stock in Transit for Logistics Processes
        10.7.3   Configuring Stock in Transit for Accounting
        10.7.4   Analyzing Stock-in-Transit Postings
    10.8   Summary
11   Reporting
    11.1   ABAP List Viewer Reports
        11.1.1   Prices and Inventory Values
        11.1.2   Materials with Largest Moving Price Differences
        11.1.3   Materials with Highest Inventory Value
        11.1.4   Display of WIP for Actual Costs
    11.2   Drilldown Reports
        11.2.1   Standard Drilldown Reports
        11.2.2   Enhanced Drilldown Reports
    11.3   SAP Fiori Applications
        11.3.1   Trial Balance App
        11.3.2   Material Inventory Values Apps
    11.4   Core Data Services Views
    11.5   Summary
12   Conclusion
    12.1   What You’ve Learned
    12.2   Potential Areas for Innovation
A   Transitioning to the Material Ledger in SAP S/4HANA
    A.1   Existing SAP Customers
        A.1.1   Data Migration
        A.1.2   Subsequent Activation of Actual Costing
        A.1.3   Subsequent Activation of Actual Cost Component Split
    A.2   New SAP Customers
    A.3   Changing the Price Determination
    A.4   Material Ledger HelpDesk
        A.4.1   Material Ledger Overview
        A.4.2   HelpDesk for Transaction Data
        A.4.3   HelpDesk for Master Data
        A.4.4   HelpDesk for Actual Cost Component Split
        A.4.5   HelpDesk for Miscellaneous
        A.4.6   HelpDesk for Production Orders
        A.4.7   HelpDesk for Purchase Order History
        A.4.8   HelpDesk for Balance Sheet Valuation
        A.4.9   HelpDesk for Distribution of Usage Variances
        A.4.10   HelpDesk for WIP
        A.4.11   HelpDesk for Deleting ML Documents
        A.4.12   HelpDesk for Material Ledger Next Architecture
        A.4.13   Administration
    A.5   Summary
B   General Ledger Line-Item Texts from Material Ledger Postings
C   Material Ledger Comparison: SAP ERP versus SAP S/4HANA
D   General Control Parameters for Actual Costing
E   Bibliography
F   The Author
Index
Service Pages
Legal Notes