GARUDAFOOD Material Ledger

Configuration

1. Display of ML-Relevant Customizing Setting (CKM9)

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2. OMX1 Material Price Determination: Control

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Specifies how the material price determination should proceed.

You have the following options:

 With price control V in activity-based 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, and is only recommended if in addition to multiple

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currencies and/or valuations, you use single-/multi-level material price

determination. In single-/multi-level material price determination, a periodic unit
price is updated for information, but it can only be used for material valuation in
the closed period.

Dependencies

The indicator is only of use if the material ledger is active.

Upon activating a valuation area for the Material Ledger in Customizing, you can enter
what type of material price determination will be proposed when creating a material in
that valuation area. This proposal will be ignored at production startup: the system
automatically sets the indicator to 2 in the material master for all materials present.

3. OMX2 Assign Currency Types to Material Ledger Type

In this step, you create material ledger types and allocate up to three currency types to
each of these material ledger types.

Standard settings

The standard system contains the material ledger type 0000, which uses currency types
from Accounting.

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Activities

1. Specify which currency types you want to use for the respective material ledger
type.

2. If you require material ledger types with other currency types, choose the function
New entries.

3. Enter a four-digit identification code in the field ML type. The first character of this
identification code must be a letter.

4. Specify which currency types you want to use for the respective material ledger
type. You have the following options:

o If you want to use the currency types that are defined in Financial Accounting, you
set the indicator Currency types from Financial Accounting. In this case, the
currency types are automatically derived from Financial Accounting. This setting is
covered by the material ledger type 0000 in the standard system.

o If you want to use currency types defined in the currency and valuation profile, set
the indicator Currency types from CO. In this case, the currency types are derived
automatically from the currency and valuation profiles.

o If you want to use a combination of the currency types from both Controlling and
Financial Accounting, set the indicator Currency types from FI and Currency types
from CO. In this case, you must Check the settings manually, check Material Ledger
Settings.

o If you want to use other currency types, set the Manual indicator and select Define
individual characteristics. As well as the currency type for the company code
currency, you can enter (up to 10) more currency types.

5. Save your entries.

Further notes

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Before converting data for production startup, make sure that the currency settings in
Financial Accounting and in the Material Ledger are correct. You cannot change the
currencies, currency types and material ledger types after production startup.

In Customizing for Financial Accounting, you can display the currency types that belong to
a certain company code. Define Additional Local Currencies.

In the currency and valuation profile, you can display the currency types that belong to a
particular controlling area. Currency and Valuation Profile

Recommendation

To ensure that information is consistent across Materials Management, Financial

Accounting and Controlling, ensure that the group currency is used as the controlling area
currency

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4. OMX3 Assign Mat Ledger Type to Valuation Area

In this step, you allocate material ledger types to the valuation areas.

You can only allocate one material ledger type to each valuation area. This must contain
the currency type 10.

You can allocate the same material ledger type to several valuation areas. If you have
several valuation areas within a single company code (that is, when the valuation area
corresponds to a plant), you must assign all valuation areas in this company code to the
same material ledger type.

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Requirements

o You have defined the relevant valuation areas.

o You have created the relevant material ledger types.

Further notes

Before you convert data for production start-up, make sure that the currency settings in
Financial Accounting and in the Material Ledger are correct. Once production has been
started, you cannot change currencies, currency types and material ledger types.

Activities

To assign material ledger types to a valuation area, proceed as follows:

 Choose the function New entries.

 Enter a valuation area.
 Enter a material ledger type.
 Save your entries.

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5. OMX4 Maintain Number Ranges for Material Ledger Documents

A material ledger document must be clearly identified in the system. This is achieved by
saving each transaction in the material ledger under a unique number.

Dependencies

Even if you do not use the Actual Costing/Material Ledger component, you have to define
number ranges for price changes as well as debits and credits to materials. In addition to
the accounting document that is created during such a transaction, the system also
creates a material ledger document.

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6. OMX9 Define Material Update Structure

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In this section, you can define a material update structure.

During the material ledger update, the system collects data from valuation-relevant
transactions such as goods receipts, invoice receipts, and settlement of production orders.
This data is collected in different categories in the material ledger in accordance with the
material update structure.

The influence that these transactions have on the valuation price upon material price
determination depends on the category to which they were assigned. The following
categories are available:

o Receipts
o Consumption
o Other Receipts/Consumption

A receipt always effect the valuation price. With consumption, you can determine whether
or not it has an effect on the valuation price of a material: the category Other
receipts/consumption has an effect, the category Consumption does not.

Process Category (Procurement/Consumption)

Key which you use to assign specific procurement categories and consumption types to a
specific category for single-level material price determination .

 Procurement categories (process categories that begin with B) are activities that, as a
rule, lead to a receipt (for example, purchase orders, production, subcontracting,
stock transfers).

 Consumption types (process categories that begin with V) are activities that, as a rule,
lead to a withdrawl (for example, withdrawls from production orders and cost
centers).

Process categories are defined in the system. Activities that are not assigned to a
procurement category are assigned to process category B+. Activities that are not assigned
to a consumption type are assigned to process category V+.

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Use

The process category is used when collecting valuation-relevant transactions for single-
level material price determination in order determine how the valuation-relevant
transactions should influence the valuation price of the material.

You can assign the process category in Customizing for the component Actual
Costing/Material Ledger.

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7. Assign Material Update Structure to a Valuation Area

(Controlling\Product Cost Controlling\Actual Costing/Material Ledger\Material
Update\Assign Material Update Structure to a Valuation Area)

In this section, you can assign a material update structure to one or more valuation areas.
Requirements

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You have activated a corresponding valuation area in the material ledger. Activate
valuation area for the material ledger

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8. Update of Activity Consumption in the Quantity Structure

Setting for updating the consumption of activities and processes in the actual quantity
structure. Three different settings are available:

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'0' = Update is not active

'1' = Update is active but not relevant to price determination. Consumption is updated in
the quantity structure but not taken into account upon price determination.

'2' = Update is active and relevant to price determination. Variances between the
activity prices/process prices posted during the period and the actual price at the end of
the period are adjusted subsequently.

Consequences

If the update is relevant for price determination in a plant, all allocations to orders that
are settled to materials are posted with a constant price throughout the period. The
valuation strategy is invalidated inasmuch as a price is calculated according to the strate
only for the first activity allocation. For all subsequent allocation the constant price is
used, even if the strategy would dictate otherwise.

The update settings can only be used together with Actual Costing. Data can not be
updated correctly if the setting changes within the period. (price determination would
generate incorrect debits to materials)

Dependencies

If you activate activity consumption update in the quantity structure with the (Activity
update relevant to price determination), the differences for the cost centers/processes are
subsequently debited to the relevant material. Therefore, if you activate the activity
consumption update in the quantity structure with setting '2', you cannot complete the
step 'revaluate actual prices' during period closing for Cost Object Controlling as this
would subsequently debit the material twice.

9. OMXF Activate Actual Cost Component Split

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In this step, you can activate the actual cost component split for each valuation area.

Requirements

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 You have defined the cost component structure in Customizing for Product Cost
Planning.

 If, in the cost estimate, you have defined multiple costing variants with which you
update standard prices, you must have allowed marking for the standard cost
estimate. The system uses the costing variants selected there to determine the cost
component structure for the actual cost component split.
Startup Activities

MLCCS_STARTUP creates the data for the actual cost component split.

OMX_UMB_ACCOUNTS

CKML Actual Costing/Material Ledger

CKML_FPR1 Create Production Process
CKML_FPR1N Edit Production Process
CKML_FPR3 Display Production Process
CKML_PRICES_SEND Send Material Prices
CKML_SURF Edit Prcrmnt / Cnsmptn Alternatives
CKMLAVREXP AVR Erklärungstool
CKMLAVRPERD Display period values
CKMLCP Cockpit Actual Costing
CKMLCPAVR Alternative Valuation Run Cockpit
CKMLCPMLBF Material Ledger Budget Cockpit
CKMLDC Debit/Credit Material
CKMLDM Debit or Credit Material
CKMLLA Prices in the Material Ledger
CKMLLACHANGE Display ActvPrices, Change NO_SETTLE
CKMLLACREATE Create ML-AT Master Data Manually
CKMLLANOSETTLE Ind.'Do Not Consider Price'
CKMLLASHOW Display Activity Prices
CKMLMAT Display Material List
CKMLMV_CA Edit Controlling Level
CKMLMV_MCA_N Mass Maintenance: Controlling Levels
CKMLMVCHECK Quantity Structure Consistency
CKMLOH PO History/Multiple Currencies

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CKMLPC Price Change

CKMLPOH Order History Display
CKMLPROT Delete Logs
CKMLQS Valuated Quantity Structure(M-level)
CKMLRUNCUMDEL Delete costing run cumulation
CKMLRUNDEL Delete Costing Run (Actual Costing)
CKMLRUNREORG Reorganization of Costing Runs
CKMLSTATUS Materials by Period Status
CKMLWIPDEACT Check Report: WIP Deactivation
CKMLXPRA46A Postprocessing Report for 46A-XPRA

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10. Display Valuation Strategy – Material Cost Estimate to COPA (KE4U)

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The valuation strategy contains the methods used for valuating value fields in costing-
based CO-PA. It determines the methods used to fill different value fields and the order in
which these methods are processed. You can valuate data using the following methods:
In CO-PA planning, you can also valuate data using condition types and pricing procedures
from the Sales and Distribution (SD) application component. Valuation using transfer
prices is likewise only possible in planning.

11. Define Access COPA to Standard Cost Estimate

(SPRO _profitability analysis- valuation - set up valuation using material cost
estimate - define access to SCE)

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Product Cost Planning is used to determine the planned cost of goods manufactured for
product. In Profitability Analysis (CO-PA), you can access these material cost estimates to
valuate the data in CO-PA. This includes cost estimates both with and without quantity
structures. With this function, you determine which cost estimates from Product Cost
Planning should be used to valuate actual or planning data in CO-PA. You do this by
defining costing keys. A costing key is a set of access parameters that are used in valuation
to determine which data in Product Cost Planning should be read.

12. Define access to actual costing / material ledger

(SPRO _profitability analysis- valuation - set up valuation using material cost estimate -
define access to actual costing/material ledger)

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In this actvity, you create the costing keys for valuation with actual cost of goods
manufactured. You define how the system calls up the periodic allocation prices/actual

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cost estimates from the material ledger by maintaining costing keys. When your sales
quantities in co-pa are valuated using periodic allocation prices/actual cost estimates from
the material ledger, this typically occurs at the period end during revaluation.

13. Assign Costing Keys to any charateristics (KEPC)

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In order to valuate CO-PA line items using material cost estimates in Product Cost
Planning, you must define your valuation strategy so that the system accesses product
costing for the desired point of valuation.

If you are valuating using more than one costing key, note that a value field can only be
filled by valuation if it is empty. In other words, each value field can only be filled once,
and is never overwritten.

The system follows certain rules for determining which costing keys to use:

1. First it checks whether one or more costing keys has been assigned to the product being
valuated. If so, it valuate the data using only those costing keys.

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2. If no costing key is assigned to the product, the system checks whether any costing keys
have been assigned to the material type of the product. If so, the data is valuated only
using those costing keys.
3. If no costing keys have been assigned to the material type, the system then checks
whether any costing keys have been assigned to other characteristics using the flexible
assignment function. If no costing keys are found in this manner, the transaction cannot be
valuated using a material cost estimate.
Likewise, no valuation is carried out if an entry exists in one of these assignment tables

14. Assign Costing Elements to Value Fields (KE4R)

1.

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