Paul Ovigele has worked as an SAP financials consultant since 1997 in both North America and Europe, specializing in implementing financial accounting and controlling along with their integrated areas for companies in the consumer goods, chemicals, logistics, pharmaceuticals, apparel, and entertainment industries. Paul has delivered numerous training sessions to finance professionals at both the functional and managerial levels and has presented at various SAP financials conferences around the world. Paul is the founder of the consulting platform ERPfixers, which provides premium SAP consulting expertise in various modules.

((Second edition, updated and expanded))

... 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

1.3 ... The After: The Material Ledger in SAP S/4HANA ... 42

1.4 ... Summary ... 53

2 ... Configuring Currency Types, Ledgers, and Valuation Views ... 55

2.1 ... Defining Currency Types for the General Ledger ... 56

2.2 ... Currency Conversion Settings for Company Codes ... 62

2.3 ... Defining the Currency and Valuation Profile ... 64

2.4 ... Defining Ledgers for Valuation Views ... 68

2.5 ... Defining Ledgers for Controlling Versions ... 72

2.6 ... Material Ledger Activation for Currencies and Valuations ... 73

2.7 ... Summary ... 76

3 ... Group Currency and Valuation ... 79

3.1 ... Group Currency ... 79

3.2 ... Group Valuation ... 86

3.3 ... Cross-Company Purchasing ... 103

3.4 ... Summary ... 118

4 ... Profit Center Valuation ... 119

4.1 ... Transfer Pricing Logic with Profit Center Valuation ... 120

4.2 ... Standard Cost and Profit Center Valuation ... 132

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

4.6 ... Summary ... 160

5 ... Configuring Actual Costing ... 161

5.1 ... Material Ledger Activation for Actual Costing ... 161

5.2 ... Material Update ... 165

5.3 ... Actual Costing ... 169

5.4 ... Account Determination ... 176

5.5 ... Summary ... 189

6 ... Actual Costing Run and Analysis ... 191

6.1 ... Actual Costing Cockpit ... 192

6.2 ... Actual Costing Run ... 193

6.3 ... Alternative Valuation Run ... 216

6.4 ... Material Price Analysis ... 223

6.5 ... Activity Consumption Analysis ... 240

6.6 ... Value Flow Monitor ... 243

6.7 ... General Ledger Postings Made by the Material Ledger ... 248

6.8 ... Summary ... 252

7 ... Actual Costing and Peripheral Transactions ... 255

7.1 ... Changing Standard Cost Mid-Month ... 255

7.2 ... Debiting/Crediting Material ... 259

7.3 ... Distributing Consumption Variances ... 267

7.4 ... Manually Changing Cost Components ... 278

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

8.7 ... Calculating with Multiple Costing Runs ... 306

8.8 ... Summary ... 312

9 ... Balance Sheet Valuation ... 313

9.1 ... What Is Balance Sheet Valuation? ... 313

9.2 ... Configuring Balance Sheet Valuation ... 315

9.3 ... FIFO Valuation ... 322

9.4 ... LIFO Valuation ... 334

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

10.2 ... Actual Costing for Make-to-Order Products ... 356

10.3 ... Daily Actual Costs ... 362

10.4 ... Exchange Rate Differences ... 373

10.5 ... Actual Costing across Company Codes ... 381

10.6 ... Margin Analysis ... 392

10.7 ... Stock in Transit ... 408

10.8 ... Summary ... 423

11 ... Reporting ... 425

11.1 ... ABAP List Viewer Reports ... 425

11.2 ... Drilldown Reports ... 437

11.3 ... SAP Fiori Applications ... 443

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

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