Assigning SAP Material Ledger types to a valuation area is a critical configuration step that ensures accurate material valuation and financial reporting. Each valuation area, typically aligned with a plant, must be linked to a specific Material Ledger type to define how valuation and accounting data are managed.

This process allows businesses to standardize material ledger settings across plants within the same company code, ensuring consistency and integration with financial accounting. By assigning ledger types, organizations can enable advanced material valuation features, streamline cost management, and maintain uniformity in transaction recording. Proper setup is essential for seamless operational and financial processes.

Assigning SAP Material Ledger types to a valuation area

In this step, you will assign the SAP Material Ledger type created in earlier steps to the valuation area(s). This assignment ensures that materials in the defined valuation area follow the correct ledger type for material valuation.

  1. One Material Ledger Type Per Valuation Area:
    • Only one Material Ledger type can be assigned to each valuation area.
  2. Shared Material Ledger Types:
    • A single material type can be shared across multiple valuation areas.
    • All plants within the same company code must use the same Material Ledger type to maintain consistency.

Configuration Path

You can access this configuration through: Transaction Code OMX3 or via the IMG menu path: Controlling → Product Cost Controlling → Actual Costing/Material Ledger → Assign Material Ledger Types to Valuation Area.

Assigning SAP Material Ledger types to a valuation area

Steps to Assign Material Ledger Types

  1. Access the Assignment Screen:
    • Navigate to the Assignment of Material Ledger Types to Valuation Areas screen .
  2. Assign the Material Ledger Type:
    • Select the relevant valuation area (e.g., THYD in the example).
    • Enter the appropriate Material Ledger Type (e.g., 0000).
Assigning SAP Material Ledger types to a valuation area
  1. Validate the Assignment:
    • Ensure that all valuation areas within the same company code share the same Material Ledger type for consistency across plants.
  2. Save the Configuration:
    • Once the assignments are completed, save the changes to finalize the setup.

Displays the Change View: Assignment of Material Ledger Types to Valuation Areas screen, where valuation areas (e.g., M110) are linked to their respective Material Ledger types (e.g., MD01).

Key Considerations

  • Consistency Across Valuation Areas:
    • Ensure all plants in the same company code use the same Material Ledger type to avoid discrepancies in material valuation.
  • One-to-One Assignment:
    • A valuation area can only be assigned to a single Material Ledger type, though multiple valuation areas can use the same Material Ledger type.

By assigning the Material Ledger type to valuation areas, you enable SAP to manage material valuation in line with organizational requirements, ensuring accurate and consistent reporting across plants and company codes.