In this tutorial, we will lean the process of Activate SAP Material Ledger Step by Step for valuation area M110, which serves as the reference plant for all material ledger configurations and business process examples in this context.

SAP recommends activating the Material Ledger for all plants under the same company code to maintain consistency between Financial Accounting (FI) and Materials Management (MM).

Steps to Activate SAP Material Ledger

The valuation areas where the SAP Material Ledger will be activated are configured using transaction code OMX1 or through the IMG menu path:

Controlling → Product Cost Controlling → Actual Costing/Material Ledger → Activate Valuation Areas for Material Ledger.

  1. Navigate to Activation Settings:
    • Double-click on Activate Material Ledger in the configuration menu (refer to Figure 1 for guidance).
  2. Configuration Screen:
    • On the configuration
      1. Select the ML ACT checkbox to activate the Material Ledger.
      2. In the Price Determination (PRICE DETER) field, define the material price determination type:
        • Set this to 3 for single-level and multi-level price determination.
        • Optionally, set it to 2 for materials using price-control moving average (V) in the material master Accounting 1 view.
  1. You may choose to make the price determination binding at the valuation area level:
    • If selected, the price determination for all materials in the valuation area will be fixed and cannot be changed later.
    • Leave this option unchecked if future changes to price determination are anticipated.
  2. Save the Configuration:
    • After saving, a warning message will appear , indicating that live data needs to be converted to the Material Ledger if the system is already live.

Important Considerations

  • Converting Live Data:
    • When activating the Material Ledger in a live system, you must convert existing data to the Material Ledger before proceeding. For more details, refer to Section 3.14 on production start-up steps.
  • Production Start-Up:
    • For new implementations, complete the production start-up step before creating any new material master records.
    • If the Material Ledger is being activated in an existing system, ensure all necessary data is converted.

Checking Material Ledger Settings

Before proceeding with activation, review relevant configurations, such as:

  1. Currencies: Ensure the appropriate currency settings are defined.
  2. Account Determination: Validate account assignment and setup.

Use the option Check Material Ledger Settings to confirm all configurations are correctly set.

  • Run this check after completing the Material Ledger configuration but before the production start-up step.
  • This step can be performed anytime through transaction code CKM9 or the IMG menu path.

Key Steps Before Going Productive

  1. Verify Material Ledger settings using CKM9.
  2. Ensure no configuration gaps in currency settings and account determination.

Following these steps ensures a smooth transition to the SAP Material Ledger while maintaining system integrity.