New Plant without ML active whereas other plants are ML activ in same comp

[Former Member]

_Background of the issue_

The Board of X and Y Company which is under the same group has decided to merge into one company to be named as Z. Presently the org structure is like below

Existing Comp X Org Structure

Client-515

Controlling Area-021

Company Code-021

Existing Comp Y Org Structure

Client-525

Controlling Area-021

Company Code-021

Client -515 will takeover Client 525 company. All the necessary changes will be done in Client 515 to formulate the new company Z in the system. Controlling area and company code will be renamed only and Code will remain the same. All the masters existing for 525 clients will be created in 515 clients. All the transactional balances of 525 clients (Company Y) will be transferred to 515 client (Company X). There are 5 plants in Company X (Client 515) and 4 Plants in Company Y(client 525). Right now entire plants in company X and Company Y are with ML active status.

Note: Though the ML is active in both the clients for both the company X and Y but we are not using ML. None of the ML periodic activities is being done. All the materials in both the company are maintained with price control u201CVu201D. No cost roll up is done for any of the materials in any of the Plant. So ML activation is not required for any of the plant.

Issue: As we explained above that company Y is merging with Company X, so all the plant of company Y need to be created in client 515 in company X. As we are not using ML functionality, we donu2019t want to activate ML for the new plants. So company X will have 5 plants with ML active and 4 new plants without ML active. Though it is recommended to activate ML for all the plants, we donu2019t want to activate this for new plants as none of the CO activities is being done here and all the materials are maintained with price control u201CVu201D.

My question: Will we have any problem if we go live with 5 ML active plants and 4 non active ML plants under the same company code? From my point of view as in active and non active plants all the materials are maintained at price control u201CVu201D, it is not required to activate ML for new plants.

Before you give your decision I request you to must see above mentioned points which I have mentioned under the heading NOTE.

Mukesh

[marialuisa_munoz · Accepted solution]

Hi,

If you are not using ML functionality you can deactivate it.

To deactivate Material Ledger you have to read note 425487 carefully.

If you don't use transfer prices and if the leading CO-version 0 is

not managed in profit center view you can deactivate ML according to

note 108374. Therefore report SAPRCKMJX has to be run and the

Customizing has to be deactivated afterwards. This is the recommended 'safe'

way to deactivate ML.

The consequences of deactivating the Material Ledger are:

- All historical data is deleted

- No valuation of materials in parallel currencies

- Purchase order History is deleted and cannot be recreated

- Actual Costing is not possible any more

- Actual Cost Component Split information is deleted

In fact you will delete all the Material Ledger tables.

If you are using the ML it is recommended to have all plants whithin the company code with the ML active otherwise posting

beetwen plants like stock transfer will not be reflected. But in your case in which you are not use the ML solution it is not a

problem.

Regards,

Maria Luisa

[Former Member · Accepted solution]

Dear Maria,

Till now no Profit center accounting was active but now in this merger activity we are planning to activate profit Center accounting but without Transfer pricing. So even in future also we can be able to deactivate the ML for existing plants.

Right now our concern is whether we should create new plant with ML active or without ML active without deactivating the ML for existing Plants.

I see only one concern, at the time of stock transfer from Active Plant To Non Active Plant or vise versa, some issue may arise.

But if I analyse it technically I don't see any problem as all materials are maintained at moving avg Price(Price Control "V"). If stock transfer causes any difference in price then it will automatically settled with the Materials at receiving Plant and it will not hit any price difference account.

Please validate my understanding and give your suggestion.

Mukesh Poddar

[Former Member · Accepted solution]

Can someone give their valuable suggestion on my concern which I have explained in above query?

With regards

Mukesh Poddar