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Material Ledger activation during S4 HANA Conversion

Sep 07, 2017 at 03:39 AM

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Former Member

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.

Regards,

Hussein.

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3 Answers

Best Answer
Sanil Bhandari Sep 07, 2017 at 04:52 AM
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Hi

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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Former Member

Hi Sanil,

Thats perfect and near to what I am looking for.

Thank you very much !

What I am looking for is, if the Client decides to go for the Actual Costing also; then what could be the precautions & pre-requisites.

The bigger pain is since they plan to go live during their ongoing FY, which I am concerned on the historical data & values of the Materials from ML or Actual side.

Please if you can share your views on this.

Regards,

Hussein.

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Hi

You can activate ML (with or w/o Actual Costing) anytime during the year, but of course it should happen at the end of a period and specifically after you have settled all the production variances.

However, having executed at least couple of conversion projects to S/4HANA I can tell you from exp that you push your customer to have only a technical migration as a first step and look at new functionality like Actual costing as a seperate project. Actual costing needs a clear thought on the process part and how accounting will happen. It is not a straight forward process.

Regards

Sanil Bhandari

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Former Member

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 !

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Former Member Sep 07, 2017 at 04:09 AM
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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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Seref Can Kucukkarakurt Sep 13, 2017 at 02:39 PM
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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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