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Practical Guide to SAP Material Ledger

This book offers a practical guide to SAP Material Ledger functionality and provides a solid foundation for understanding product costing as it relates to SAP Material Ledger (ML) and actual costing. Solidify your understanding of how SAP ML integrates wi...



  • Preface
  • 1 Introduction to SAP Material Ledger
  • 2 Key design definitions and important considerations when implementing SAP Material Ledger
  • 3 Configuration for activating SAP Material Ledger and actual costing
  • 4 Integrated flow of transactional data into SAP Material Ledger
  • 5 Month-end closing process
  • 6 Actual costs review and reporting
  • 7  Periodic valuation in COPA
  • 8 SAP Material Ledger reporting
  • 9 List of main SAP Material Ledger tables
  • 10 Overview of advanced and newest SAP Material Ledger functions
  • A   The Author
  • B   Disclaimer

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Rosana Fonseca






2.1 Driving factors to implement SAP Material Ledger

In today’s competitive business environment, companies demand higher productivity and better cost control to cope with market changes and constant competitive pressure. It is essential that companies have the appropriate tools to make decisions more readily.

Actual costing with SAP Material Ledger allows organizations to compare variances between their standards (best estimates) and their actual costs.

Actual costing provides visibility of up-to-date costs on a monthly basis, offering the company accurate information in up to three currencies and valuation views, which works very well, especially in companies with worldwide operations.

If your product prices are constantly fluctuating or if the region where your company is located is going through high inflation rates, then SAP Material Ledger can also be useful to address continuous variances to standards by providing current costs for decision-making.

Moreover, if your company is a manufacturing company which runs SAP, then SAP Material Ledger is the right tool for you to manage your costs. SAP Material Ledger is part of standard out-of-the-box SAP which is available for all clients. You just need to configure and activate it according to your business requirements.

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