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SAP Material Ledger has two main functions:
Carry inventory in up to two additional valuations and actual costs, as we explain in detail below:
1. Carry material prices in multiple currencies and valuations
Material inventory values are normally carried in only the company code currency. SAP Material Ledger enables you to carry inventory values in two additional currencies/valuations by updating all goods movements in the Material Ledger in up to three currencies/valuations. Currency amounts are translated into foreign currencies at historical exchange rates directly at the time of posting.
When working on SAP Material Ledger/Actual Costing, we recommend you work with our ERPCorp SAP experts:
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2. Value inventory at actual costs
Actual costing values all goods movements within a period at the standard price (preliminary valuation). All material price and exchange rate differences are collected in the Material Ledger.
At the end of the period, an actual price is calculated for each material based on the actual costs of the period. This actual price is called the periodic unit price PUP and can be used to revaluate the inventory for the period to be closed. You can use this actual price as the standard price for the next period.
You can not revalue inventory and post the differences to an accrual account.
Actual costing determines what portion of the variance will be debited to the next-highest level using material consumption. The actual bill of materials enables variances to be rolled up over multiple production levels to the finished product. You can choose to take cost center variances into account.
This category describes how multiple valuations, actual costing, and the material ledger period-end closing process work. It also describes the steps needed to implement them during production startup. The actual cost component split and deactivating the material ledger are also explained.
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