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Material Ledger activation during S4 HANA Conversion

Dear Experts,

Our Client has not been using ML in their present ECC.

They are now planning to move to S4 HANA 1610, most probably they are planning for Conversion & S4 HANA Go-Live before their FY end (Mar-2017) somewhere by 01-Oct-2017.

As we all know, ML is mandatory now in S4 HANA.

I also know the impacts of ML when we plan to activate it, during the ongoing FY.

May I please know if :

  1. There are such pre-requisites, precautions, pros & cons, etc. when we plan the conversion ? Or
  2. The System takes care during the migration/conversion.



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3 Answers

  • Best Answer
    Sep 07, 2017 at 04:52 AM


    ML is mandatory for S/4HANA. However, there can be a scenario, where the client also wants actual costing along with material ledger, than of course it will make lot of difference for your customer. If however you are looking at only activation of ML (and not ML with Actual costing), than it is only that quantity will now be updated in ACDOCA. There is no closing entry of Price difference to be loaded on inventory balance, as it the case of Actual costing(Means you might not need to run actual costing month end transactions etc)

    Thanks and Regards

    Sanil Bhandari

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    • Thank you very much Sanil, as I too had same doubts and agree with your replies.

      Now what the Customer is looking for & agrees, that will be something to wait & watch

      I am closing the question or the loop here. regards !

  • Sep 07, 2017 at 04:09 AM

    I found a good informative Note.

    Note 2396864 - Material Ledger Obligatory for Material Valuation in S/4HANA systems.

    However, please feel free to share anything you know and something which could be difficult to find thru blogs.

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  • Sep 13, 2017 at 02:39 PM

    Dear Hussein Merchant

    If you decided to proceed for S4HANA conversion, please check notes also to prevent before & after errors:

    • 2345739 - S/4HANA 1610 Material Ledger Migration: Relevant notes and frequently asked questions
    • 2416935 - Material Ledger with Actual Costing in S/4HANA 1610: Important Notes

    If customer is not using material ledger, it could be easier to implement ML.

    And it would be better to check Simplification list to get detailed info about 1610 changes. You can check simplification list for SP02 through below link:

    Simplification List for SAP S/4HANA 1610 Feature Pack Stack 02

    PS: As a recommendation, plan the conversion regarding financial periods(such as 01.01.2018) and please upgrade to latest Service Pack version to minimize errors.

    Kind Regards,

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