In this step you can activate, per plant, Actual Costing for materials and activity consumption update in the quantity structure.
If you use Actual Costing, you can decide whether (in addition to material consumption) activity consumption and/or processes which are used to produce a material should be updated in the quantity structure in Actual Costing/Material Ledger.
Depending on the activation type chosen:
If you decide to have your actual consumption updated in the quantity structure and considered during price determination, all allocations to manufacturing orders that are settled to a material are posted at a constant price throughout the period. This means that the valuation strategy effectively has no effect, as only the first activity allocation of the period is calculated. All subsequent activity consumption is valuated with the fixed price even if, according to the valuation strategy, a different price should be used.
A price change within the period, then, is not considered when allocating to orders that are settled to materials.
You have activated the Material Ledger for
those valuation areas that contain these plants.
Activate
Valuation Areas for Material Ledger .
You can only activate activity consumption update in a plant if Actual Costing is already activated in that plant.
In the step 'Automatic posting' in the Implementation Guide for Materials Management, define a G/L account for the closing entries in Actual Costing/Material Ledger for transaction GBB (Offsetting entry for inventory posting) and for the account grouping code AUI (Credit cost center/process with actual price adjustment). You must have already created this G/L account as a materials management profit and loss account in Financial Accounting and as a primary cost element in cost and revenue element accounting. The credit to the cost center or business process is identified under this cost element.
Automatic posting
Neither Actual Costing nor activity consumption update in the quantity structure are active in the standard system.
You can deactivate Actual Costing at any time to avoid having to update very large amounts of data in the actual quantity structure. If you do this you will have to do without the functions for actual costing in the particular period.
The indicator for activity consumption update may not be changed or deleted within a period. This would cause the system to post incorrect material debits during price determination.