Hard-to-Get Inventory Analyses Become Easy Via the Material Ledger 4.6

  • by Kurt Goldsmith, Senior Business Consultant, Enowa Consulting
  • July 15, 2002
The latest version of the Material Ledger is a significant upgrade and includes two important inventory reporting options: compilation of actual bill of materials and automatic tracking of multilevel variances from standards.

I have known about the Material Ledger since R/3 release 3.0B. But perhaps like a lot of field consultants, did not get too excited about its functionalities until I first saw the 4.6 release’s version. After just one day of running test scenarios (in preparation for co-teaching the SAP class on Material Ledger, course #AC510), I called the controller from a project I worked on in 1998. He had been unhappy after the cutover to R/3 because two of his favorite inventory analyses became impossible to perform. I knew he had gone through a recent upgrade to the 4.6 release.

I asked him if the upgrade’s scope had included the addition of the Material Ledger to the existing design. "No? Then, I must show you something!"

At the end of this article, you will know what I know — that for a wide variety of businesses, the 4.6 version of the Material Ledger represents a major upgrade in functionality for the accounting department, especially in regard to two kinds of inventory reporting that are extremely difficult (if not impossible) to achieve anywhere else in R/3:

  • The compilation of the so-called "Actual BOM" (bill of materials)
  • The automatic tracking of so-called "Multilevel" variances from standards

Kurt Goldsmith

Kurt Goldsmith is a senior business consultant for Enowa Consulting, specializing in the diagnosis and resolution of productivity-related integration issues between a company’s division of labor (end users, managers, executives) and SAP software (R/3, BW, APO, CRM). He also has a lifetime performance record of one win and two third-place finishes from five career starts as a thoroughbred racehorse trainer.

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