Introduction

SAP Material Ledger is a powerful tool within SAP’s Controlling (CO) module, primarily used for managing inventory and actual costing. It enables businesses to calculate actual costs, track variances, and perform inventory valuation in multiple currencies and valuation views. SAP Material Ledger integrates seamlessly with various SAP modules, such as Materials Management (MM), Production Planning (PP), and Sales and Distribution (SD), providing a comprehensive view of product costs and facilitating better decision-making.

This SAP Material Ledger Tutorial guide is designed to simplify the understanding and implementation of SAP Material Ledger. Whether you are a beginner or looking to enhance your existing knowledge, this guide provides step-by-step instructions, practical examples, and key insights to navigate the complexities of SAP Material Ledger effectively.


SAP Material Ledger Tutorial

Introduction to SAP Material Ledger

  1. What is SAP Material Ledger?
  2. Overview of Actual Product Costing
  3. Key Functions of SAP Material Ledger

Key Considerations and Design Principles

  1. Driving Factors for Implementing SAP Material Ledger
  2. Choosing the Right Inventory Valuation Method
  3. Understanding Material Price Determination
  4. Multiple Currencies and Valuation Approaches
  5. Price Differences and Their Impact

Configuration and Setup

  1. Activating SAP Material Ledger for Valuation Areas
  2. Assigning Currency Types to Material Ledger Types
  3. Setting Up Currency and Valuation Profiles
  4. Assigning Valuation Profiles to Controlling Areas
  5. Creating Versions for Group Valuation
  6. Maintaining Number Ranges for Material Ledger Documents

Transactional Flow and Integration

  1. Standard Cost Setup and Cost Roll-Up Process
  2. Purchasing and Goods Movement
  3. Manufacturing Processes with Product Cost by Order
  4. Sales and Integration into COPA

Month-End Closing and Actual Costing

  1. Critical Month-End Checkpoints
  2. Production Order Closing
  3. Running the Periodic Actual Costing Process
  4. Reconciliation of General Ledger Accounts

Analysis and Reporting

  1. Reviewing Actual Costs Using CKM3N
  2. Analyzing Material Ledger Documents
  3. Material Price Analysis and Integrated Views
  4. Understanding Price Difference Accounts

Advanced Topics and Features

  1. Advanced Reporting in SAP Material Ledger
  2. Manual Changes to Actual Cost Component Splits
  3. Distribution of Usage Variances (DUV)
  4. Overview of Alternative Valuation Runs (AVR)


This tutorial is your comprehensive resource for understanding and implementing SAP Material Ledger. Feel free to navigate through the chapters based on your learning requirements, and make SAP Material Ledger work effectively for your organization!