Material Ledger
Material Ledger
Material Ledger
Multiple Valuation
Legal Valuation | Group Valuation | Profit Center Valuation
Table of Contents
Concept ................................................................................................................................................................................... 6
Configuration........................................................................................................................................................................... 7
1st Company Code ............................................................................................................................................................... 7
1st Plant of TJ05 ................................................................................................................................................................... 9
Storage Location............................................................................................................................................................ 11
Version .............................................................................................................................................................................. 11
Group Version ............................................................................................................................................................... 11
Profit Center version ..................................................................................................................................................... 13
Currency , Valuation Profile & Material Ledger ................................................................................................................ 16
Maintain Currency & Valuation Profile ......................................................................................................................... 16
Assign Currency and Valuation Profile to Controlling Area ........................................................................................... 18
Assign Currency Types and Define Material Ledger Types ............................................................................................ 18
Assign Material Ledger Types to Valuation Area ........................................................................................................... 19
FI Currency .................................................................................................................................................................... 19
Again Assign Material Ledger Types to Valuation Area ................................................................................................. 20
Activate Material Ledger for Valuation Areas ............................................................................................................... 20
Configure Dynamic Price Changes ................................................................................................................................ 20
Define Material Update Structure................................................................................................................................. 21
Actual Costing ............................................................................................................................................................... 22
Activate Actual Cost Component Split .......................................................................................................................... 22
Check Config.................................................................................................................................................................. 22
Check Its Done. ............................................................................................................................................................. 25
Cost Component Structure – Copy of TJ ....................................................................................................................... 26
Costing variant .............................................................................................................................................................. 29
2nd Plant Of TJ05 – TJ5A..................................................................................................................................................... 33
Storage Location............................................................................................................................................................ 34
Just Check ...................................................................................................................................................................... 34
2nd Company Code ............................................................................................................................................................ 35
Plant of TJ06 ...................................................................................................................................................................... 40
Storage Location............................................................................................................................................................ 41
Sales Org............................................................................................................................................................................ 42
Distribution Channel ......................................................................................................................................................... 42
Division .............................................................................................................................................................................. 42
Purchase Org ..................................................................................................................................................................... 42
Shipping Point ................................................................................................................................................................... 42
Assignment........................................................................................................................................................................ 43
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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Company to Company Code .......................................................................................................................................... 43
Plant to Company Code................................................................................................................................................. 43
Sales Org to Company ................................................................................................................................................... 43
Sales Org to Distribution Channel ................................................................................................................................. 43
Sales Org to Division...................................................................................................................................................... 43
Assign Sales Organization - Distribution Channel – Plant ............................................................................................. 44
OVXG ............................................................................................................................................................................. 44
Set up sales area ........................................................................................................................................................... 44
OVX6.............................................................................................................................................................................. 44
VOR1 ............................................................................................................................................................................. 44
VOR2 ............................................................................................................................................................................. 45
OVXA ............................................................................................................................................................................. 45
OVXK.............................................................................................................................................................................. 45
Assign purchasing organization to company code ........................................................................................................ 45
Assign purchasing organization to plant ....................................................................................................................... 46
Assign shipping point to plant ....................................................................................................................................... 46
OVKK.............................................................................................................................................................................. 46
OVL2 .............................................................................................................................................................................. 46
VKOA ............................................................................................................................................................................. 47
Controlling Area ................................................................................................................................................................ 47
Define Ledger for CO Version ............................................................................................................................................ 48
For Profit Center Valuation ............................................................................................................................................... 49
Cost Component Structure ............................................................................................................................................... 50
OBYC - AUM....................................................................................................................................................................... 51
GL For Inter Company & Assign in OKTZ ........................................................................................................................... 52
Inter Company GL & Assign in OBYA ................................................................................................................................. 54
Define Valuation Clearing Account.................................................................................................................................... 55
Material Ledger ................................................................................................................................................................. 57
Assign Currency Types and Define Material Ledger Types ............................................................................................ 57
Assign Material Ledger Types to Valuation Area ........................................................................................................... 57
Activate Material Ledger for Valuation Areas ............................................................................................................... 57
Configure Dynamic Price Changes ................................................................................................................................ 57
Assign Material Update Structure to a Valuation Area ................................................................................................. 57
Activate Actual Costing ................................................................................................................................................. 58
Activate Actual Cost Component Split .......................................................................................................................... 58
CKMSTART ......................................................................................................................................................................... 58
Special Procurement ......................................................................................................................................................... 59
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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Profit Center ...................................................................................................................................................................... 61
Cost Center........................................................................................................................................................................ 61
MM Config ........................................................................................................................................................................ 62
BP ...................................................................................................................................................................................... 64
BP Number Range ......................................................................................................................................................... 64
Define Groupings and Assign Number Ranges.............................................................................................................. 65
Vendor ............................................................................................................................................................................... 65
Create Number Ranges for Vendor Accounts ............................................................................................................... 65
Assign Number Ranges to Vendor Account Groups ...................................................................................................... 65
Number Assignment: Assign Account Group to Vendor ............................................................................................... 66
Customer ........................................................................................................................................................................... 66
Create Customer Accounts ........................................................................................................................................... 66
Create Number Range to Customer Account ................................................................................................................ 66
Assign Number Range to Customer Account ................................................................................................................ 67
PP Config ........................................................................................................................................................................... 67
MRP Controller .............................................................................................................................................................. 67
Order Type..................................................................................................................................................................... 68
Define Production Scheduling Profile for Discrete Manufacturing ............................................................................... 69
Define Scheduling Parameters for Production Orders .................................................................................................. 69
Define Checking Control................................................................................................................................................ 71
Define Checking Rule for Backorder Processing............................................................................................................ 72
Define Scheduling Parameters for Production Orders .................................................................................................. 72
Define Confirmation Parameters .................................................................................................................................. 72
Determine Person Responsible ..................................................................................................................................... 73
OPK9 .............................................................................................................................................................................. 73
EC01 .................................................................................................................................................................................. 74
OKYV.................................................................................................................................................................................. 74
Variance Config ................................................................................................................................................................. 74
Transfer Price Config – [8KEZ] ........................................................................................................................................... 75
Process .................................................................................................................................................................................. 81
Master Data....................................................................................................................................................................... 81
Create BP ....................................................................................................................................................................... 81
Material Create – Plant TJ05 (Manufacturing Plant) ..................................................................................................... 83
Material Create – Plant TJ5A (Depo Plant) .................................................................................................................... 85
Material Create – Plant TJ06 (Depo Plant) .................................................................................................................... 86
BOM .............................................................................................................................................................................. 88
Create Activity Type ...................................................................................................................................................... 89
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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Plan Rate of Cost Center – [KP26] .................................................................................................................... 90
Work Center .................................................................................................................................................................. 91
Routing .......................................................................................................................................................................... 91
Production Version – [MM02] ....................................................................................................................................... 93
Cost Estimate – [CK11N-CK24] ...................................................................................................................................... 93
Create Order – [CO01]................................................................................................................................................... 99
Raw Material Stock In – [MIGO].................................................................................................................................. 100
Actual Cost Confirmation – [CO11N]........................................................................................................................... 101
Trf Price – [AKE5] ......................................................................................................................................................... 102
Scenario 01 : Intra Company – Plant to Plant Trf – Same Company Code ...................................................................... 103
Cost Estimate – TJ5A – Receiver Plant......................................................................................................................... 103
Transfer – Plant to Plant .............................................................................................................................................. 110
Scenario 02 : Inter Company – Company to Company Trf – different Company Code ................................................... 112
Change In Master Data................................................................................................................................................ 112
Additive Price – CK74N................................................................................................................................................ 112
Cost Estimate - TJ06 – CK11N/CK24 ............................................................................................................................ 114
Transfer – Company to Company ................................................................................................................................ 119
Scenario 02 : Again Execute Company to Company – Due to Exchange rate slightly difference in above process ........ 127
Exchange Rate ............................................................................................................................................................. 127
Material Standard – TJ05 ............................................................................................................................................ 127
Material Standard – TJ06 ............................................................................................................................................ 128
Transfer Posting ........................................................................................................................................................... 131
Accounting Entries – TJ05 ........................................................................................................................................... 132
Accounting Entries – TJ06 ........................................................................................................................................... 132
Combine Entry............................................................................................................................................................. 133
Scenario 03 : Transfer Material To Material – RM to FG Order ....................................................................................... 135
Material Master Data .................................................................................................................................................. 135
BOM ............................................................................................................................................................................ 137
Routing ........................................................................................................................................................................ 137
Production Version ...................................................................................................................................................... 138
Transfer Price – AKE5 .................................................................................................................................................. 138
Cost Estimate............................................................................................................................................................... 139
Raw Material Stock In ................................................................................................................................................. 143
Production Process...................................................................................................................................................... 144
Variance....................................................................................................................................................................... 149
Settlement ................................................................................................................................................................... 150
Concept
This is the biggest concept of SAP-CO.
Controlling Area , chart of account & fiscal year variant Should be same for this process.
Transfer pricing is purely internal concept, Transfer one plant to another plant if you want to add some extra charges this
is transfer price.
If company transfer goods from one plant to another with in the company or outside the company and client want to
eliminate internal cost effect then we proposed this solution.
If transition b/w company & plants exists but they don’t want to eliminate internal cost so no need to pick multiple
valuation.
Configuration
For using of this document, you need Basic config document also.
Company
Same Controlling area of different company – COA & Fiscal year variant should be same
Yes
Yes
Yes
Storage Location
Version
Its only for actual cost so plan check is remove.
Group Version
Cancel it.
Yes
Select All
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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
FI Currency
Actual Costing
Check Config
We can do this multiple valuation in live system but a lot of precaution should be taken.
If we want to know the inter company profit we have to create this component.
If we try to make it COGM & Fix & Var cost --- it gives error.
Costing variant
Only one costing type is allow on one clint | 1 for legal | 1 for Profit center val | 1 for grp val
Group Valuation
Legal Val
Storage Location
Just Check
2 = Activity revaluation at ML
Copy
Yes
Yes
No
Yes
Plant for TJ06 should be created – it will not copy from TJ05’s Plant becz if copy from tj05 plant it will assign to TJ05
plant.
Plant of TJ06
Storage Location
Sales Org
Distribution Channel
Division
Purchase Org
Shipping Point
Assignment
Company to Company Code
OVXG
OVX6
VOR1
OVXA
OVXK
OVKK
OVL2
Controlling Area
OBYC - AUM
Material Ledger
Assign Currency Types and Define Material Ledger Types
CKMSTART
Special Procurement
Profit Center
Cost Center
MM Config
BP
BP Number Range
Vendor
Customer
PP Config
MRP Controller
OPK9
EC01
OKYV
Variance Config
TJ03 Created as Pricing Procedure (Only input TJ01 & TJ02 & Steps)
Trf pricing variant “PC0 for std costing” & “000 for stock trf ”
Process
Master Data
Create BP
Finished Goods
In this case profit center is main point, each plant have one profit center.
BOM
BOM Create only on TJ05 Plant – only production plant
Routing
Sender plant input | Sender Material input | but Receiver profit center input
Profit Center must input receiver profit center in which material is going to be transferred.
Breakup shows in Component structure, but quantity structure will not show becz no BOM no Routing.
Back it
Legal View
By Purchase Order / Sales Order Method currently its not a part of this course
Before Doing CK11n on group & profit center valuation first execute Ck24 on legal valuation.
No Markup show.
Group Valuation
Group Valuation
There is some Exchange rate Issue Material Standard cost calculation time picks different exchange rates so this 23.09
USD comes into the picture & posted in 300001 GL.
Below mention screen shorts are also available after resolving this issue
Legal Valuation Cost is 338.46 SGD | Exchange rate applies [1.80] & make Group Valuation & Profit center valuation
188.03 USD
By Purchase Order / Sales Order Method currently its not a part of this course
KP26
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Group Valuation
Group valuation
Combine Entry
Legal Valuation
Group Valuation
Profit Center is RM
Routing
Production Version
Cost Estimate
Legal Valuation
Mark / Release
CO11N