Table of Contents

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Preface
15
Who This Book Is For
15
How This Book Is Organized
15
Acknowledgments
17
1 Introduction to the Material Ledger in SAP S/4HANA
19
1.1 What Is the Material Ledger?
19
1.2 The Before: The Material Ledger in SAP ERP
24
1.2.1 Inventory Valuation
26
1.2.2 Multiple Valuation Approaches
31
1.2.3 Actual Costing
36
1.3 The After: The Material Ledger in SAP S/4HANA
42
1.3.1 SAP S/4HANA Finance
42
1.3.2 Why the Material Ledger Is Mandatory
48
1.3.3 Inventory Valuation in SAP S/4HANA
49
1.4 Summary
53
2 Configuring Currency Types, Ledgers, and Valuation Views
55
2.1 Defining Currency Types for the General Ledger
56
2.1.1 Standard SAP Currency Types
56
2.1.2 Defining Standard Currency Types in the Universal Journal
60
2.2 Currency Conversion Settings for Company Codes
62
2.3 Defining the Currency and Valuation Profile
64
2.3.1 Maintaining the Currency and Valuation Profile
65
2.3.2 Assigning the Currency and Valuation Profile to the Controlling Area
66
2.3.3 Creating Versions for the Valuation Methods
66
2.3.4 Activating the Currency and Valuation Profile
67
2.4 Defining Ledgers for Valuation Views
68
2.4.1 Ledgers in the Universal Journal
68
2.4.2 Multi-Valuation Ledger
69
2.4.3 Single Valuation Ledger
71
2.5 Defining Ledgers for Controlling Versions
72
2.6 Material Ledger Activation for Currencies and Valuations
73
2.6.1 Defining Material Ledger Types and Assigning Currency Types
73
2.6.2 Assigning Material Ledger Types to Valuation Areas
74
2.6.3 Activating Material Ledgers for Valuation Areas
75
2.7 Summary
76
3 Group Currency and Valuation
79
3.1 Group Currency
79
3.1.1 Setting Up Group Currency for a Company Code
80
3.1.2 Changing Material Cost
82
3.1.3 Making a Purchase
84
3.2 Group Valuation
86
3.2.1 Transfer Pricing with Group Valuation
87
3.2.2 Group Valuation with Standard Cost
88
3.2.3 Group Valuation Configuration for WIP
100
3.3 Cross-Company Purchasing
103
3.3.1 Intercompany Setup
104
3.3.2 Intercompany Scenario
108
3.4 Summary
118
4 Profit Center Valuation
119
4.1 Transfer Pricing Logic with Profit Center Valuation
120
4.1.1 Defining the Currency Type for Profit Center Accounting
120
4.1.2 Defining Transfer Pricing for Profit Center Valuation
121
4.1.3 Settings for Internal Goods Movement
129
4.2 Standard Cost and Profit Center Valuation
132
4.2.1 Defining a Costing Variant for Profit Center Valuation
132
4.2.2 Assigning Transfer Price Variant to the Costing Version
136
4.2.3 Configuring a Delta Cost Component
136
4.2.4 Configuring a Special Procurement Key
138
4.2.5 Calculating Standard Cost
139
4.2.6 Manually Updating the Material Cost
144
4.3 Profit Center Valuation Configuration for WIP
145
4.4 Cross-Profit Center Purchasing
148
4.5 Manufacturing Orders with Profit Center Valuation
152
4.5.1 Material Consumption in a Different Profit Center
153
4.5.2 Goods Receipt in a Different Profit Center
156
4.6 Summary
160
5 Configuring Actual Costing
161
5.1 Material Ledger Activation for Actual Costing
161
5.1.1 Maintaining Number Ranges for Material Ledger Documents
162
5.1.2 Configuring Dynamic Price Changes
164
5.2 Material Update
165
5.2.1 Defining Movement Type Groups of the Material Ledger
166
5.2.2 Assigning Movement Type Groups of the Material Ledger
167
5.2.3 Defining the Material Update Structure
167
5.2.4 Assigning Material Update Structure to the Valuation Area
168
5.3 Actual Costing
169
5.3.1 Activating Actual Costing
170
5.3.2 Creating User-Defined Names for Receipts/Consumption
171
5.3.3 Assigning User-Defined Names for Receipts/Consumption
172
5.3.4 Activating Actual Cost Component Split
174
5.3.5 Activating WIP at Actual Cost
175
5.4 Account Determination
176
5.4.1 Cost/Price Differences for the Material Ledger
177
5.4.2 Materials Management Exchange Rate Differences
179
5.4.3 Revaluation of Other Consumables
180
5.4.4 Accruals and Deferred Accounts for the Material Ledger
181
5.4.5 Activity Price Differences
183
5.4.6 Material Ledger Cost Center Absorption
184
5.4.7 WIP from Price Differences: Materials
185
5.4.8 WIP from Price Differences: Activity Types
185
5.4.9 Differences of Canceled WIP: Materials
186
5.4.10 Differences of Cancelled WIP: Activity Types
188
5.5 Summary
189
6 Actual Costing Run and Analysis
191
6.1 Actual Costing Cockpit
192
6.2 Actual Costing Run
193
6.2.1 Setup
194
6.2.2 Selection
196
6.2.3 Preparation
197
6.2.4 Settlement
203
6.2.5 Post Closing
206
6.2.6 Mark Prices
209
6.2.7 Additional Options
212
6.3 Alternative Valuation Run
216
6.3.1 Executing the Alternative Valuation Run
216
6.3.2 BAdI for Alternative Valuation Run
222
6.4 Material Price Analysis
223
6.4.1 Navigating the Material Price Analysis
224
6.4.2 Price Determination Structure
228
6.4.3 Price History
232
6.4.4 Material Price Analysis for Old SAP ERP Data
234
6.4.5 Actual Cost Components
235
6.4.6 Valuated Quantity Structure
238
6.5 Activity Consumption Analysis
240
6.6 Value Flow Monitor
243
6.6.1 Not Distributed Differences
243
6.6.2 Not Allocated Differences
245
6.6.3 Using the Value Flow Monitor
247
6.7 General Ledger Postings Made by the Material Ledger
248
6.7.1 Closing Document of the Material Ledger
248
6.7.2 Analyzing General Ledger Postings Made by the Material Ledger
250
6.8 Summary
252
7 Actual Costing and Peripheral Transactions
255
7.1 Changing Standard Cost Mid-Month
255
7.1.1 Restriction on Changing the Standard Cost Mid-Month in SAP ERP
256
7.1.2 Changing the Standard Cost Mid-Month in SAP S/4HANA
257
7.2 Debiting/Crediting Material
259
7.2.1 Debiting/Crediting a Material Directly
259
7.2.2 Defining Reasons for the Price Change
261
7.2.3 Debiting/Crediting a Material with an Alternative General Ledger Account
263
7.2.4 Debiting/Crediting a Material to a Specific Cost Component
264
7.3 Distributing Consumption Variances
267
7.3.1 Activating Distribution of Consumption Variances
267
7.3.2 Distributing Differences for Materials
271
7.3.3 Distributing Differences for Activities
275
7.4 Manually Changing Cost Components
278
7.4.1 Price Difference Account for Cost Component Change
279
7.4.2 Changing the Cost Component
279
7.5 Subsequent Activation of Actual Cost Component Split
282
7.6 Deactivating Statistical Moving Average Price
283
7.7 Summary
286
8 Parallel Cost of Goods Manufactured
287
8.1 What Is Parallel Cost of Goods Manufactured?
287
8.2 Activating the Business Function
289
8.3 Maintaining the Valuation View
290
8.4 Defining Ledgers and Accounting Principles
292
8.5 Configuring Parallel Valuation
294
8.6 Calculating a Parallel Activity Rate
296
8.6.1 Calculating the Depreciation in Different Accounting Principles
296
8.6.2 Posting Activity Consumption to a Production Order
299
8.7 Calculating with Multiple Costing Runs
306
8.7.1 Actual Costing Run
306
8.7.2 Alternative Valuation Run
307
8.8 Summary
312
9 Balance Sheet Valuation
313
9.1 What Is Balance Sheet Valuation?
313
9.2 Configuring Balance Sheet Valuation
315
9.2.1 Activating FIFO/LIFO Valuation
315
9.2.2 Defining Valuation Level
315
9.2.3 Defining FIFO/LIFO-Relevant Movement Types
316
9.2.4 Defining FIFO/LIFO Methods
317
9.2.5 Configuring FIFO/LIFO Valuation Areas
318
9.2.6 Defining LIFO Layer Versions
319
9.2.7 Defining Document Types for the Lowest Value Method
319
9.2.8 Defining Movement Types for the Lowest Value Method
320
9.2.9 Defining the Key Figure Scheme
320
9.2.10 Setting Up Valuation Alternatives
321
9.2.11 Defining the FIFO Variant
322
9.3 FIFO Valuation
322
9.3.1 Creating a Purchase Order and Goods Receipt
323
9.3.2 Activating a FIFO Material
326
9.3.3 Calculating Periodic Receipt Values
328
9.3.4 Calculating the FIFO Price
329
9.4 LIFO Valuation
334
9.4.1 Creating Purchase Orders and Goods Receipts
334
9.4.2 Activating a LIFO Material
337
9.4.3 Calculating the LIFO Price
339
9.5 Lowest Value Determination
341
9.6 Using Balance Sheet Valuation in Actual Costing
344
9.7 Summary
346
10 The Material Ledger and Peripheral Applications
347
10.1 Split Valuation
347
10.1.1 Configuring Split Valuation
348
10.1.2 Creating a Material Master with Multiple Valuation Types
351
10.1.3 Procuring Split Valuated Materials
353
10.1.4 Calculating Actual Cost for Split Valuated Material
354
10.2 Actual Costing for Make-to-Order Products
356
10.2.1 Make-to-Order Production Process
356
10.2.2 Calculating the Actual Cost
359
10.3 Daily Actual Costs
362
10.3.1 Creating Actual Costing Runs for Future Periods
363
10.3.2 Creating Variants for Actual Costing Steps
365
10.3.3 Creating and Sequencing Background Jobs
370
10.4 Exchange Rate Differences
373
10.4.1 Configuring the Treatment of Exchange Rate Differences
373
10.4.2 Purchasing a Material with Exchange Rate Differences
374
10.4.3 Exchange Rate Differences in the Material Price Analysis
378
10.5 Actual Costing across Company Codes
381
10.5.1 Cross-Company Scenario
382
10.5.2 Setting Up Actual Costing across Company Codes
383
10.5.3 Material Price Analysis before the Actual Costing Run
384
10.5.4 Material Price Analysis after the Actual Costing Run
388
10.6 Margin Analysis
392
10.6.1 COGS Account Split by Cost Components
393
10.6.2 Production Variance Account Split by Variance Categories
403
10.7 Stock in Transit
408
10.7.1 Stock-in-Transit Scenarios
409
10.7.2 Configuring Stock in Transit for Logistics Processes
412
10.7.3 Configuring Stock in Transit for Accounting
417
10.7.4 Analyzing Stock-in-Transit Postings
419
10.8 Summary
423
11 Reporting
425
11.1 ABAP List Viewer Reports
425
11.1.1 Prices and Inventory Values
426
11.1.2 Materials with Largest Moving Price Differences
431
11.1.3 Materials with Highest Inventory Value
432
11.1.4 Display of WIP for Actual Costs
434
11.2 Drilldown Reports
437
11.2.1 Standard Drilldown Reports
437
11.2.2 Enhanced Drilldown Reports
440
11.3 SAP Fiori Applications
443
11.3.1 Trial Balance App
443
11.3.2 Material Inventory Values Apps
451
11.4 Core Data Services Views
459
11.5 Summary
460
12 Conclusion
463
12.1 What You’ve Learned
463
12.2 Potential Areas for Innovation
466
Appendices
471
A Transitioning to the Material Ledger in SAP S/4HANA
471
A.1 Existing SAP Customers
471
A.2 New SAP Customers
481
A.3 Changing the Price Determination
486
A.4 Material Ledger HelpDesk
488
A.5 Summary
497
B General Ledger Line-Item Texts from Material Ledger Postings
499
C Material Ledger Comparison: SAP ERP versus SAP S/4HANA
503
D General Control Parameters for Actual Costing
505
E Bibliography
507
F The Author
509
Index
511