The activation of Material Ledger for Valuation Areas (Plant) in SAP S4 Hana is one of the important configuration step for enhance the inventory management and financial accounting process. The Material Ledger in SAP S/4 Hana provides the detailed tracking and reporting of materials in multiple currencies and provide the real-time data reporting for better decision making.
What is Material Ledger in SAP Hana?
The Material Ledger in SAP is also referred as SAP ML, it is new tool in SAP S4 Hana used for tracking of material movements, monitoring inventory and valuations in real time. Material Ledger also allows to valuate the materials in multiple currencies and generate the reports as per requirements.
In SAP, valuation area is also referred as a Plant. It represents as a organizational unit where the materials are valuated. Activating the material ledger for valuation areas helps in reliable and accurate financial reporting.
Activate Material Ledger for Valuation Areas in SAP S4 Hana
In this configuration step, we need to activate the Material ledger for the valuation areas (Plant Codes) in the SAP S4 Hana system. Before configuring this step, we need to complete the following configuration steps
- Assign Currency Types and Define Material Ledger types
- Assign Material Ledger Types to Valuation Area
Configuration Steps
- Transaction Code: OMX1
- IMG path: SAP Reference IMG > Controlling > Product Cost Controlling > Actual Costing /Material Ledger > Activate material ledger for valuation area
Step 1: Execute the transaction code “OMX1” or follow the IMG menu path and execute the IMG activity “Activate Material Ledger for Valuation area”
Step 2: On the change view “Activation of Material Ledger”: overview screen, click on a position and update your Valuation Area key and press enter to continue.
Step 3: Now update the following details
- Check the field “ML Act. to enable Material Ledger Activated in Valuation Area
- Price Determination: Select option 2 (Transaction Based).
- Click on the save button to save the details.
A warning message will be displayed as “After activating material ledger, live data must be converted”. For this, we need to CKMSTART-Set Valuation Areas as Productive”.