Inventory Valuation at the actual cost at the period end for Local Ledger

[Former Member]

Hi All,

I am new to the controlling and product costing.

My client is having the following requirement:-

1) Globally, client is following Standard costing for all global reports and accordingly maintained 'S" price in material master.

2) For local reporting, client needs inventory report based on the actual cost of the procurement.

3) I explored the concept of " Material Ledger". Is material ledger easy to implement? Does it have any other serious implications on existing configuration/functionality globally running for the client?

4) Actually client is asking for the inventory valuation at actual cost including any duty,taxes,frieght etc paid for that PO only for the local reporting.Is this the legal reuirement in India?

5) Is there any standard report available that can be used so that period end manual financial entries can be made only to the Local Ledger?

Thanks in advance for your support.

[Former Member]

Hi

Before activating please go through one of the SAP note in this regard- 596558 - Material ledger production startup.

1) Globally, client is following Standard costing for all global reports and accordingly maintained 'S" price in material master.

Explanation: ML doesnt have problem with this.

2) For local reporting, client needs inventory report based on the actual cost of the procurement.

Explanation: by using the ML u can activate multiple valuation approaches. Hence it is a default functionality.

3) I explored the concept of " Material Ledger". Is material ledger easy to implement? Does it have any other serious implications on existing configuration/functionality globally running for the client?

Explanation: Though ML activation is at the plant level, but still SAP recommends to activate at the company code and at all plants.

(refer above sap note)

4) Actually client is asking for the inventory valuation at actual cost including any duty,taxes,frieght etc paid for that PO only for the local reporting.Is this the legal reuirement in India?

Explanation: As per Accounting standard, Goods need to be valued either at cost or market value whichever is less. Cost includes base price plus all other incidental expenses.

5) Is there any standard report available that can be used so that period end manual financial entries can be made only to the Local Ledger?

Explanation: If the question is in terms of financial postings, its possible if you have New GL and Document split is active in u r system. For Material Costing u can use the reports like CKM3N...

Regards

Sudhakar Reddy