SAP S/4HANA 1610 Material Ledger Actual Costing: Understand the Fundamental Changes and the Impact on Conversion

  • by Ajeet Kumar Agarwal, Senior Business Process Consultant, SAP India (SDC)
  • November 21, 2017
Learn and understand the massive changes in material ledger actual costing with SAP S/4HANA 1610. See how the technical and functional changes to this version of SAP S/4HANA affect organizations that use actual costing in a source system and are migrating from earlier SAP S/4HANA releases to SAP S/4HANA 1610.
Learning Objectives

By reading this article, you will learn:

  • Supported valuations with SAP S/4HANA 1610
  • Why the material ledger is mandatory in SAP S/4HANA enterprise management releases (i.e., versions 1511 and 1610)
  • What the key functional changes in SAP S/4HANA 1610 in material ledger actual costing are
  • What the technical changes in SAP S/4HANA 1610 material ledger actual costing are
  • How to configure the material ledger actual costing in SAP S/4HANA 1610
  • The impact on users at organizations that are converting their systems to SAP S/4HANA 1610 from earlier releases
  • Recommendations for organizations about to undergo a conversion to SAP S/4HANA 1610
Key Concept
Significant functional and technical changes were made to the functionality for material ledger actual costing in SAP S/4HANA 1610. For example, four separate process steps were merged into a single settlement step, and in the material ledger, several old actual costing tables were integrated into two new tables, MLDOC and MLDOCCCS.

With the new magnitude of overall simplification of the actual costing process in SAP S/4HANA 1610, organizations can achieve significant reductions in run time. Now the material ledger close is significantly faster. Four separate process steps (single-level settlement, multi-level settlement, revaluation of consumption, and work in process [WIP] revaluation) are merged into one step (i.e., settlement). The changes made in the material ledger include various old actual costing tables being integrated into two new tables, MLDOC and MLDOCCCS. However, this was not only a technical change. The material ledger data store and processing logic also were fundamentally simplified. Because of these changes in the material ledger, there is in general no backward compatibility, and that is why no compatibility views exist on the table level.

I describe the changes made to SAP S/4HANA 1610 by answering questions that arose in the wake of the release of this version of SAP S/4HANA and explaining their impact on various business processes.

What Are the Supported Valuations with SAP S/4HANA 1610?

SAP S/4HANA supports all ERP valuation methods, and there is no change from a business functionality point of view. SAP S/4HANA 1610 supports the following valuations:

  • Standard Price
  • Moving Average Price
  • Actual Costing Optional
  • Last in, first out (LIFO)/first in, first out (FIFO) valuation
  • Transfer Pricing to enable Legal/Group and profit center valuation

Why Is the Material Ledger Mandatory in SAP S/4HANA Enterprise Management 1511 and Higher?

Before SAP S/4HANA, the inventory valuation tables xBEW(H) (tables EBEW, EBEWH, MBEW, MBEWH, OBEW, OBEWH, QBEW, and QBEWH) contained transactional and master data attributes. With SAP S/4HANA, these tables still exist. However, these tables are used to store only material master data attributes. The transactional fields LBKUM, SALK3, and VKSAL are retrieved from the ACDOCA line items table with on-the-fly aggregation. The transactional field SALKV also is retrieved from the material ledger table.

Hence, those fields are not updated anymore in the original xBEW(H) tables. As a consequence, the material ledger has to be activated mandatorily. During a conversion to SAP S/4HANA 1610 or higher, the configuration conversion step activates the material ledger automatically for all users doing the conversion even though the users have not activated the material ledger in their source systems. If the user is doing a new implementation, the material ledger activation has to be done manually and the xBEW(H) tables need to be updated less often, leading to a higher throughput as a result of fewer database locks (refer to SAP Note 2337368).

For more information on moving to SAP S/4HANA 1610, get advice from Bill Faison and Colin Hart in SAPinsider's Q&A, Transition to Real-Time Analytics on SAP S/4HANA 1610 and SAP BW/4HANA. To register for this Q&A, click here. For advice on best practices for migrating to SAP S/4HANA, register for SAPinsider's Q&A, The Road to SAP S/4HANA. In this Q&A Carl Dubler and Matt Makaila will answer questions about paving a path to SAP S/4HANA and tools you can use. To register for this Q&A, click here.

Ajeet Kumar Agarwal

Ajeet Agarwal is an SAP S/4HANA product expert with more than 17 years of total experience, including 12 years of consulting experience in SAP FI/CO.

He has been part of many full-cycle implementations, rollout and support projects as FI/CO lead. His areas of expertise include product costing, material ledger, Profitability Analysis (CO-PA), the SAP General Ledger, Asset Accounting and FI/CO integration with other SAP modules. He has also worked on the classic general ledger, Accounts Payable, Accounts Receivable, and Bank Accounting.

He works as a senior business process consultant at SAP India (SDC) and part of the SAP S/4HANA Regional Implementation Group (RIG) for the Asia-Pacific and Japan (APJ) region, where he guides partners/customers on SAP S/4HANA conversions and new implementation projects, and  trains them  on SAP S/4HANA new innovations.

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Comments

11/30/2017 7:41:04 AM
AG

helpful

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