Spotlight: Parallel Valuation and Actual Costing

  • by Gary Byrne, Managing Editor, Financials Expert and SCM Expert
  • April 25, 2013
Paul Ovigele, an SAP consultant at Ovigele Consulting and an SAPexperts Financials advisor, answers some questions about parallel valuation and actual costing processes in the material ledger.

In one of his presentations at Financials 2013 Paul Ovigele spoke about the process of streamlining parallel valuation and actual costing using guidelines to exploit functionality in the material ledger. I asked him some questions about this process.

Paul, you spoke in a session titled “Streamline parallel valuation and actual costing with expert guidelines to exploit key material ledger functionality.” Could you cite a few key tips about streamlining parallel valuation and actual costing with material ledger functionality for users to use now?

The material ledger serves two broad purposes: First, it allows you to revalue your standard costs to actual costs for each material. Second, it allows you to record material prices in three currencies and according to three valuation approaches. Five settings needed to achieve this goal are:

  • Activate valuation Areas for Material Ledger (transaction OMX1)
  • Assign Currency Types to Material Ledger Type (transaction OMX2)  Assign Material Ledger Types to Valuation Areas (transaction OMX3)
  • Run Production Startup for Material Ledger (transaction CKMSTART)
  • Change Material Price Determination to “Single/Multilevel” (transaction CKMM)

Gary Byrne

Gary is the managing editor of Financials Expert and SCM Expert. Before joining WIS in March 2011, Gary was an editor at Elsevier. In this role he managed the development of manuscripts for Elsevier’s imprint responsible for books on computer security. Gary also has held positions as a copy editor at Aberdeen Group, a Boston-based IT market research company, and as an editor at, a publisher of content for the IT community. He also gleaned experience working as a copy editor for International Data Corp., a Framingham, MA-based IT market research company. He earned a bachelor of science degree in journalism from Suffolk University in Boston. He enjoys traveling, sailing as a passenger onboard schooners, and helping his wife, Valerie, with gardening during summer weekends. He’s a fan of all the Boston sports teams and once stood behind Robert Parish in a line at BayBank. He felt small and didn’t ask for an autograph. You can follow him on Twitter at @FI_SCM_Expert. His online footsteps can also be found in the SAP Experts group on LinkedIn.

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11/30/2015 10:34:40 AM

One of the comments I've had from users dealing with 1,000's of materials (20-30,000) at a single plant is that ML is too confusing, and they can't "see the forest for the trees". I haven't had the time to delve into this myself, but I'd be curious to hear comments from others. How best to handle this, what summary, higher level reports are available, etc? Thanks

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