Material Ledger- Valuation Area

[Former Member]

Hi guys,

I want to know what is the significance of material legder in controlling?

Why do we assign a valuation area to the materail ledger?

Thanks

Srikanth.

[Former Member]

hi

material ledger is used to capture the cost of material stocks in controlling in order to calculate the price of the unit cost of that particular product. Valuation Area makes you to perform uniform and complete Valuation of material stock, if you are using different types of material stocks.

[Former Member]

Dear Srikant,,

Material Ledger is usefull for Managerial Decision if you activated Material Ledger then You can have report in different Currency. For Example if you are Purchasing One Raw Material From Different Countries Like from USA, UK and China in this case you can get the details of your stock in three difference currency and Management will have the choice as per Exchange rate that from which country they should purchase Raw Material. In short you will have Material ledger item wise in multi currency.

One Most important thing without Material Ledger you can not calculate actual cost of Material in Product Costing so for that reason we are assigning valuation are to Material Ledger. Valuation Area is nothing but either your Plant or Company Code.

thx.

Ganpat Sundhesa.

[Former Member]

Hi Ganu

In Product Cost Planning we will plan Do Plan Cost

In Cost object Controling we will Do the Actual Cost

What is the use of Material Ledger

am little bit confuse Please guide me