1 Reply Latest reply: Oct 25, 2010 10:40 AM by Maria Luisa Munoz RSS

Activate material ledger for a client already on SAP

Shalini Bhandari
Currently Being Moderated

My client is operating on ECC5.0. Now we are planning to activate the material ledger with actual costing functionality for this client. I read the SAP note which lists the considerations we need to keep in mind when activating material ledger for a live client and I understand that it is very tough to reverse back once the material ledger is impelmented. That is the reason why we want to explore beforehand, all the issues and problems that we may come acros when implementing material ledger in a live environment.

Please let me know if anybody has ever done that and if so, then what are the important considerations and steps.

  • Re: Activate material ledger for a client already on SAP
    Maria Luisa Munoz
    Currently Being Moderated

    Hi,

     

    Did you check the following notes which give a detailed information about Material Ledger activation:                                                                               

    596558  Material ledger production startup                               

    384145  Advice note on material ledger production startup                

    165844  Material ledger production startup                                                                               

    Please, check attached note 596558, which provides recommendations       

    on Material Ledger production startup:                                              

    ...                                                                      

        b) Always activate the material ledger for a complete company code   

           and copy all currencies from FI. This is the only way to ensure   

           the reconciliation with FI.                                                                               

    c) In addition, it is recommended that you activate the material     

           ledger for a complete company code because the invoice            

           verification can neither store invoices that contain materials    

           from plants the material ledgers of which are active nor more     

           materials from plants the material ledger of which is not active. 

    ...                                                                               

    Please, consider that only transactions performed after the startup      

    will be taken into account for the actual price calculation.             

    You can run the productive startup also in the middle of a period,       

    but take into account the recommendation in note 596558, point d.                                                                               

    d) If you want to activate the actual costing, it is recommended         

       that you do this at the period start. As of the point in time of      

       the activation, material movements are then updated in the            

       material ledger quantity structure tool, and you can use              

       multilevel costing.                                                                               

    Concerning the updating in the general ledger accounts, please           

    check the attached note 908737. The leading ledger will be updated       

    according to the general ledger accounts customized in transaction OBYC. 

     

    Related to the ML Deactivation in a productive system, be aware of the effects of the Deactivation.                                                                               

    If you deactivate Material Ledger for a productive plant, the material     

    ledger master data is deleted. Prices and inventory values in              

    parallel currencies and their history are lost.                                                                               

    To deactivate Material Ledger you have to read note 425487 carefully,      

    which explains the deactivation effects.                                                                               

    Please, consider the following topic:                                                                               

    Deactivating the material ledger from a Profit Center Accounting point     

    of view:                                                                   

    If transfer prices are active in your system, you cannot deactivate the    

    material ledger. Refer to Note 175758.                                                                               

    When you start using Material Ledger, you have two steps:                  

       - 'activate' ML in SPRO, and then                                       

       - 'set ML as productive' by running CKMSTART.                                                                               

    When we say 'deactivate ML' in note 425487, we mean both steps:            

       -  reset ML from productive by running report SAPRCKMJX                 

       - 'deactivate' ML in SPRO.                                                                               

    Note 108374 references the step 'set ML as deproductive'.                                                                               

    The consequences of deactivating the Material Ledger are:                                                                               

    - All historical data is deleted                                          

    - No valuation of materials in parallel currencies                        

    - Purchase order History is deleted and cannot be recreated               

    - Actual Costing is not possible any more                                 

    - Actual Cost Component Split information is deleted                                                                               

    In fact you will delete all the Material Ledger tables.                                                                               

    If you don't use transfer prices and if the leading CO-version 0 is       

    not managed in profit center view you can deactivate ML according to      

    note 108374. Therefore report SAPRCKMJX has to be run and the             

    Customizing has to be deactivated afterwards.                                                                               

    I hope this explanation helps.                                 

    Kind regards,                                                                               

    MLM

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