Actual Costing/Material Ledger 

Purpose

This component can be used for the following purposes in material valuation:

The amounts in the three currencies can portray different valuation views (such as legal, group or profit center valuation).

Implementation Considerations

This component is important if one or more of the following situations apply to you:

For more information, see Installation: Actual Costing/Material Ledger.

Integration

The graphic shows how valuation-relevant data from Logistics and Accounting is gathered and managed in the Material Ledger, and how this data is used for both balance sheet preparation in Financial Accounting as well as for internal evaluation purposes. (The three different currencies can also represent different valuations.)

 

Features

Actual Costing for Materials

When using the standard price as the method of price control, you can value material movements with a preliminary standard price. Differences between the actual prices and the standard price (such as price and exchange rate differences) that arise through valuation-relevant transactions, are posted to price difference accounts and exchange rate difference accounts, and collected in the material ledger. At the end of a posting period, you can settle the variances between the actual prices and the standard price, determine new valuation prices, and adjust the valuation for the closed period. The price differences are transferred to the balance sheet account.

Therefore, you can calculate periodic unit prices each posting period based on actual data and apply any price and exchange rate differences to the material stock. Using the multi-level actual costing functions, you can determine the actual quantity structure of a material and apply price differences to consumption.

Material Ledger

Ledger is simply an accounting term for a book. A ledger provides the framework for the presentation of transaction figures for specific reporting or evaluation purposes.

The material ledger is a subledger for materials that have a material master record in the R/3 System.

The Material Ledger contains master data for materials. The materials are clearly identified with their material number in conjunction with their valuation area and valuation type (in cases of split valuation). Data from all valuation-relevant movements are collected in the material ledger data in order to calculate valuation prices for the materials. Material ledger data contains prices in up to three currencies and valuation views.

Types of Material Settlement for Business Management Purposes

If you want to employ this component simply to use the multiple currency/multiple valuation functions; you can have your materials valuated with the standard price or the moving average price without using the material ledger. If this is the case, work with transaction-based material settlement.

If you want to use this component to perform actual costing, you will valuate the materials and material movements - on a preliminary basis - with the existing standard price. You then have the opportunity to valuate the material stock in the closed period using the periodic unit price. In this case, you work with single-/multi-level material settlement.

Constraints

The following functions are not supported by this component at this time:

The following functions are supported by this component on a limited basis:

This is only possible if the valuation area was not set as productive.

This only possible using one currency.

The following components are not supported in connection with this component:

However, Logistics Invoice Verification is supported.