Training Manual

Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

1
1.1

Overview Material Ledger

This document elaborate the transactions related to the material ledgers

1.2

Transaction Code: <MM02> <CKM3> <CKMLCP> Edit or Park G/L Document Material Price Analysis Edit Costing Run

1.3

SAP Menu Path: Logistics Accounting Material Management Controlling Material Master Material Change MM02 Immediately

Product Cost Controlling

Material Ledger

CKM3 Material Price Analysis Accounting Controlling Product Cost Controlling Actual Costing CKMLCP Edit Costing Run

1.4

User Procedures: a. Some of the information in the material master (accounting 1) is related to Material Ledger. User should know the setting related when they create or amend the master records b. The inventory transactions are records in the material ledger. Material Price Analysis could be used to analysis the price/ cost of a material c. The manufacturing will be reallocated to the inventory and rollup to the upper level using the single and multi level price determination. Closing process is also required for the material ledger

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Key Concept

Price Determination
With price control V material price determination (indicator2 in the material master), the moving average price is calculated. With price control S, the material is valuated with the standard price and the moving average price is calculated for information purposes. In single-/multi-level material price determination (indicator 3 in the material master), the valuation price (standard price) remains unchanged and a periodic unit price is calculated for the closed period. (This option is only for materials with price control indicator S)

a. Transaction-Based Material Price Determination

This function makes it possible for you to calculate the moving average price after every goods movement.

b. Single Level Price Determination

Single-level material price determination calculates the periodic unit price for a material. The standard price and the cumulative single-level differences of the period are taken into account. The material price calculated in multilevel price determination can be used for inventory valuation. Single-level price determination is a prerequisite for multilevel price determination.

c. Multi-Level Price Determination

Multilevel price determination calculates the periodic unit price for a material. The standard price, the single-level differences cumulated in the period, the differences between planned and actual prices, as well as input material differences (multilevel differences) are all taken into account. The material price calculated in multilevel price determination can be used for inventory valuation.

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Procedural Steps

Maintain the Material Masters (ML related information)

Logistics Material Management Material Master Material Change MM02 Immediately

Select the accounting 1 view

Select the plant

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Field Price Determination Per. Unit price Price Control Click the button

Usage 2 for moving-average-price items; 3 for standard-price item * refer to key concept Moving Average Price/Periodic Unit Price V: Moving-average S: Standard to save the setting

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Material Price Analysis

Accounting Controlling Product Cost Controlling Material Ledger CKM3 Material Price Analysis

Field Material; Plant Period/ Year Period Status View

Usage The material displayed in the report Which period is the information presenting The closing status of the material ledger in this period The type report presenting Price analysis; cost component

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

How to read the report? Business Scenario

We have a two level BOM consist of a SFG P01000C313004 and a FG P01000C313002 Order 6150008741 (1st Order) has been created for the SFG P01000C313004 Order 6150008742 (2nd Order) has been created for the FG P01000C313002; the SFG P01000C313004 has been used in this order

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Single Level Price Determination

The balance transaction is recorded in the material price analysis based on the Price Control

During the Costing Run (for the material ledger), part of the variance will be allocated back to the inventory based on the inventory

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Multi-Level Price Determination (1)

Single-level price determination must be done before the multi-level price determination

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Multi-Level Price Determination (2)

The variance will be rollup to the upper level if it is consumed to another production order

The variance from lower level will be allocated back to the inventory based on the inventory level as is single level price determination

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Month End Process

Business Procedure Close MM Period (MMPV) Overhead Cost Calculation (CO43) Preliminary settlement for Co-products (CO8A) Calculate WIP (KKAO) Variance Calculation (KKS1) Settlement (CO88) Costing Run (CK40N) Costing Run for Material Ledger (CKMLCP)

Description Close the period of the material management Calculate the overhead for the production orders Split the production cost to the co-production for joint production Calculate the amount of the WIP (w/o posting to FI) Calculate the manufacturing variance (for analysis) Post the WIP & variance to Financial accounting Calculate the Standard Cost and updated to the material master Calculate the periodic actual cost and allocate the variance back to the inventory based on the inventory level

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Costing Run (for Material Ledger)

Accounting Controlling Product Cost Controlling Actual Costing CKMLCP Edit Costing Run

There are six difference steps in the Costing Run (for Material Ledger) Steps 1. Selection 2. Determine Sequence 3. Single-Level Price Determination 4. Multi-Level Price Determination 5. Revaluation of Consumption 6. Posting Closing Description Select the Material to be process (basically, select all material) Determine the sequence for the multi level price determination Single-level price determination (refer to the section above) Multi-level price determination (refer to the section above) No special purpose in EME Close the period in material ledger and posting the result to FI

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Create a Costing Run

Click the

button

Specify the ID for the Costing Run and click the

button to continue

Select the plant to be process. Click the button

to save the setting.

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Click the Step 1: Selection

button to show the Flow steps

Check the

button in the row Selection

Do not change the parameters, chick the save button

button will be shown after that. Click this button.

Check the Start Immediately check box. Chick the confirm button after that.

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Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Continue. Click the

button to refresh the screen, until the status is updated

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Step 2 Determine Sequence Basically, the step in the following the steps are very similar to step one

Check the

button in the row Determine Sequence

Save the setting

Execute the program

Choose Start Immediately and confirm

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Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Continue. Click the

button to refresh the screen, until the status is updated

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Step 3 Single-Level Pr. Determination

Click the

button to unlock the period

Check the

button in the row Single-Level Pr. Determination

Choose Process Again and click the

button to save the setting

Execute the program

Choose Start Immediately and confirm

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Continue. Click the

button to refresh the screen, until the status is updated

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Step 4 Multilevel Pr. Determination

Click the

button to unlock the period

Check the

button in the row Multilevel Pr. Determination

Do not change the parameters and then save the setting

Execute the program

Choose Start Immediately and then Confirm

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Continue. Click the

button to refresh the screen, until the status is updated

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Step 5 Revaluation of Consumption

Check the

button in the row Revaluation of Consumption

Do not change the parameters and then save the setting Click the button to execute as usual and refresh the screen until the status is updated

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Training Manual
Module: FI/CO Financial and Controlling Function: Material Ledger AC-CO-PC-ACT-001-00-TM

File name:

System Version:

2005

Step 6 Post Closing

Click the Check the

button to unlock the period button in the row Revaluation of Consumption

Remove the Test run and save the setting

Click the

button to execute as usual and refresh the screen until the status is updated

-- End of Document --

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