Activating Material Ledger for Materials in SAP

How To Activate Material Ledger For Material In Sap

This article provides a comprehensive guide on the activation process of Material Ledger for materials in SAP. It offers step-by-step instructions and explanations to help users understand and implement this feature effectively. By following these guidelines, users can ensure accurate cost calculations, gain better insights into material costs, and enhance their overall financial reporting within the SAP system.

How to Enable Material Ledger for Materials in SAP: A Step-by-Step Guide

How to activate Material Ledger in S4 HANA in 5 easy steps

  1. Assign Material Ledger Type to Valuation Area
  2. Activate Valuation Areas for Material Ledger
  3. Assign Currency Types to Material Ledger Type
  4. Production Start-up of Material Ledger
  5. Error Resolution

Step 1: Assign Material Ledger Type 0001 to Valuation Area

In order to activate the material ledger for a particular material in SAP, it is necessary to assign a specific type of material ledger to each valuation area (plant). This assigned material ledger type must include currency type 10.

In case there is a difference in currency between the client level and company code level, it is necessary to assign currency type 30 to the ML type as well.

In STD system ML type 9000 is given for currency type 10 so we have configured our ML type as “0001” to have both currency type 10 & 30. Create this through OMX1 “Define Material Ledger Type”

If we have more than one plant assigned to a single company code (as in our case we have plant PA10 & PA20 assigned to one company Code PA10), we have to assign all valuation areas in this company code to the same material ledger type.

Picture: Associating Material Ledger Type 0001 with Valuation Area.

Please be aware that during the initial configuration process, the status of our valuation area will appear as red, as illustrated in the screenshot below.

No need to be concerned, just continue with step 2. You can always come back and make adjustments after completing steps 3 and 4, which involve starting up the material ledger for production.

After completing Step 4 successfully, recheck the status to ensure that it is green for all valuation areas.

Activating Valuation Areas for Material Ledger in SAP: Step 2

In this process, we will enable material ledger for all our valuation areas. When material ledger is activated for a specific valuation area, the valuation of all materials within that area will be done using the material ledger.

Picture : Path to Activate Valuation Areas for Material Ledger Picture : Activate Valuation Areas for Material Ledge

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Step 3 :Assign Currency Types to Material Ledger Type

We have activated ML type 0001. In this config we will set the currency type associated with this ML type.

Picture : Path to Assign Currency Types to Material Ledger Type Picture : Assign Currency Types to Material Ledger Type

Step 4 :Production Start-up of Material Ledger

In this phase, we will initiate the activation of Material Ledger in our three manufacturing facilities.

Illustration: Transaction code for initiating the activation of Material Ledger in SAP.

Picture : Production Start-up of Material Ledger for Valuation Area PA10

The green log notification indicates that PA10 is now operational with Material Ledger.

Picture : Successful Production Start up of Material Ledger for Valuation Area PA10

The activation of Material Ledger for material in SAP involves making the valuation areas PA20 and PP10 operational using a similar process.

Step 5 : Error Resolution

When we tried PP10 to make productive with ML, below error message is encountered

Currently, the activation of PP10 for MM periods is being started from the present month.

Kindly be aware that it is necessary to initiate the opening of the posting period at the beginning of each month using MMPV. This action has already been completed for the PA10 company code, so there are no issues with Plants PA10 & PA20.

Visual representation: Material Ledger has been successfully activated for Valuation Area PP10 as part of the production commencement process.

How to Enable Material Ledger for Materials in SAP

How to resolve error C+039 ‘Material ledger currencies were changed’

The currency should be synchronized with the currency specified in SCC4.

To activate Material Ledger for a material in SAP, you need to go to the OKKP transaction. Here, you should choose group currency 30 and select EUR as the currency option.

Please note that these currencies selection should not be changed after ML activation (CKMSTART). If changed then Error Material Ledger Currencies were changed (C+039) will come. if this happens then revert to the original currencies selection after deactivation of ML>

How to Enable Material Ledger Activation for Materials in SAP

Afterwards, use the CKMSTART transaction code to set the Plant production for ML again. Finally, verify that the ML active checkbox is now selected in MM03.

Error 4- ML currencies are not integrated in FI for valuation area (Error FML_CUST033)

This issue occurs when the configuration for the controlling area is missing.

Error 4 : Action 1

If error is still appearing then it means controlling area is not maintained fully

“CCtr Std.Hierarchy” is mandatory. Just give name as “PPIN” and save.

System will prompt for creation of “PPIN” “CCtr Std.Hierarchy”. Click on “yes”

Picture : Prompt for creation of “PPIN” “CCtr Std.Hierarchy”

As we are currently not prioritizing control, it is advisable to select all components as inactive in order to minimize restrictions and workload in our logistics scenarios.

We have already assigned our company codes “PA10” & “PA20” to our controlling area “PPIN”

Now run the CKMSTART again for our valuation area and Error FML_CUST033 -ML currencies are not integrated in FI for valuation area should not come.

If you are still encountering this issue, it is necessary to set up the currency for the company code.

Error 4 : Action 3

Verify if your company code is listed in transaction SB22.

If your company code is not present then run T-code “FINSC_LEDGER”

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Error 5- Error C+380 with CKMSTART

The error message C+380 happens if the plant has an inconsistent entry in table T001W.

Since our valuation level is on plant level so in table T001W the field BWKEY(“Valuation Area”) must be the same as field WERKS(“Plant”).

This field is normally filled in automatically, when a plant is assigned to a company code in transaction OX18. To solve this problem, delete the assignment between plant and company code in OX18, save this change and then re-assign it again.

How to enable material ledger for a specific material?

To activate the Material Ledger in a material, follow these steps:

1. Open the MM02 transaction and navigate to Accounting view 1.

2. Flag the field “Material Ledger active”.

3. Save the changes.

Next, check the OMS2 transaction to verify if both quantity and value update are active for that specific material type in the valuation area. Keep in mind that for the Material Ledger to be fully activated, both quantity and value updates must be active.

Benefits of Material Ledger

SAP ERP performs inventory valuation using a single currency, but multinational companies often require the ability to value their inventory in multiple currencies. Material Ledger enables the valuation of inventory in two additional currencies.

The Material Ledger (ML) provides the flexibility to have three types of valuations (Legal, group, and profit center) for multinational companies. Typically, local currency is used for legal valuations while group and profit center valuations are stored in the group currency, which is often USD.

3. Material Ledger (ML) offers the benefits of both standard price and moving average price (MAP) by utilizing actual costing, which is an optional feature.

To quickly understand the S4 HANA FI Organization Structure, you can refer to the article “Check Post FI Organization Structure in 5 Minutes.” This will help you become familiar with the structure without going into further details.

Refer to the article “Check Post SD Organization Structure in 5 Minutes” to quickly understand the S4 HANA SD Organization Structure. Familiarize yourself with it within a short span of time.

Check Post MM Organization Structure in 5 Minutes to familiarize yourself with S4 HANA MM Organization Structure

Determining if Material Ledger is Enabled in SAP ECC

You can check material ledger and actual costing activation parameters &amp, customizations via transaction code CKM9. On the other hand if you click on “FI Documents” in MIGO &gt, Document Info tab, you can see also Material Ledger line at the list of documents. This means ML is active.

Activating a material ledger in plants: How is it done?

Activating Material Ledger for a material in SAP involves several steps. Firstly, you need to define the valuation area and assign it to the material ledger type. The valuation area represents a specific organizational unit within your company where materials are valued.

Next, you must define the material ledger type and assign currency types to it. The material ledger type determines how inventory values are calculated and updated in different currencies. Currency types specify which currencies should be considered during valuation.

Once these configurations are complete, you can proceed with the production start-up of Material Ledger. This involves activating various functions such as actual costing or parallel valuations based on your business requirements.

Finally, it is crucial to check all Material Ledger settings before starting any transactional activities involving materials. This verification helps ensure that all configurations have been correctly implemented and will provide accurate results during inventory valuations.

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Activating materials in SAP SD: How can it be done?

To activate Material Ledger for a material in SAP, follow these steps:

1. Go to the “New Entries” section.

2. Enter a Configuration ID and provide a Description.

3. Configure the parallelization for the activation adapter.

The meaning of C 470 in SAP

To activate Material Ledger for a material in SAP, follow these steps:

1. Go to your user profile and navigate to “Own Data” and then the “Parameters” tab.

3. Next, go to transaction code CKMHELP and select “Helpdesk for Material Master.”

4. From there, choose MLHELP_REPAIR_TABLES and input “=42” in the command table field to execute it in real-time mode.

Material Ledger is a feature within SAP that helps companies track costs associated with their materials accurately. By activating Material Ledger for a specific material, you enable additional functionalities such as multiple valuation approaches and currency conversions.

When you activate Material Ledger for a material, it allows you to maintain different prices based on various factors like currencies or locations where the material is used or sold. This enables better cost analysis by providing more accurate information about expenses related to each specific scenario.

The meaning of material ledger in SAP material master

The Material Ledger is a useful tool in SAP that helps track and analyze transaction data for materials. It specifically focuses on materials whose information is stored in the material master database. By collecting this data, the material ledger can calculate accurate prices for these materials, which are essential for valuating them correctly.

In simpler terms, the material ledger acts as a foundation for determining the actual cost of materials used in business operations. It ensures that prices are calculated accurately based on real-time transaction data and provides valuable insights into material costs.

To activate the Material Ledger for a specific material in SAP, follow these steps:

1. Access the Material Master Data by navigating to MM03 or using transaction code MM01.

2. Select your desired plant and enter the relevant material number.

3. Go to “Accounting 1” tab and click on “Material Ledger” checkbox to enable it.

4. Save your changes by clicking on the save button (Ctrl+S).

5. The Material Ledger will now be activated for that particular material.

By activating Material Ledger, businesses can gain better control over their inventory costs and make more informed decisions regarding pricing strategies and financial reporting related to materials used in their operations

The significance of activating material ledger in SAP

To address this need, Material Ledger provides MNCs with the capability to conduct inventory valuation in not just one but two additional currencies. This feature allows businesses to accurately assess and manage their inventory costs across various regions or countries where they operate. By enabling valuation in multiple currencies, Material Ledger helps organizations gain better insights into their financial performance and make informed decisions regarding pricing strategies and cost control measures.

Moreover, by activating Material Ledger for materials within SAP ERP system, businesses can achieve greater transparency and accuracy in their financial reporting processes. The tool ensures that all relevant costs associated with material production are correctly captured and allocated based on actual consumption rates rather than standard values. This enables more precise calculation of product costs as well as improved tracking of variances between planned and actual expenses.