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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