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Former Member

Material Ledger

Hello Everyone,

Can anyone tell me why do we activate Material ledger? & what are its impact form CO point of view?

Thanks,

Sneha

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    author's profile photo Former Member
    Former Member
    Posted on Aug 12, 2009 at 09:42 AM

    Hi,

    Material ledger give two very important benifits among others-

    1. To have mulitple currencies assignment to the material movements

    2. To have multiple valuation approaches which will enable to have transfer prices...

    Yes, ML have impact in terms 1. Variance Distribution 2. Revaluation of COGS from std cost to actaul rate 3. Revaluation of WIP with Actual Cost 3. Arriving the periodic unit actual rate compare to std rate.

    Regards

    Sudhakar Reddy

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    • Former Member Former Member

      Hi,

      CKMLCP tcode can help u to do period end activities...

      Following activities are generally executed...

      1. Single Level Price Determination

      2. Multi Level Price Determination

      3. Revaluation of Consumption

      4. Revaluaiton of WIP(if WIP actual calculation is activated)

      5. Passing Closing entry...

      Regards

      Sudhakar Reddy

  • author's profile photo Former Member
    Former Member
    Posted on Aug 13, 2009 at 05:00 PM

    Hi Sneha,

    Material Ledger valaution is done for valaution of materials in different currencies.

    It also helps in us following differnt valuation approaches.

    It is the basis of actual costing.

    you can define how the values from valuation-relevant transactions are collected in the material ledger in order to influence the closing entries of material price determination.

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 14, 2009 at 05:04 AM

    Hi,

    Material ledger will help in getting the actual movement of cost of that material. It will also give the details of when and why cost of material is changed. It will help in analysis of cost behaviour and help in finalising the budgets or predicting cost.

    It will have a impact in controlling as it will help in calculating the actual cost of the materil.

    This may help

    Regards

    Shantanu

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