Material Ledger Overview

You use the material ledger tool to model the following business functions:
•Actual costing for a material
•Material valuation in several currencies or valuations
•Material valuation using the periodic unit price
•Material valuation using the moving average price

Periodic unit price

Moving average price

(Product Cost Controlling (CO-PC)) A price that changes periodically as a result of goods movements and invoice entries. The periodic unit price is calculated by dividing the value of the material by the quantity of that material in inventory. It references the base unit of measure and price unit in the material master record.   The price is recalculated when single-level or multilevel material price determination is performed.   The periodic unit price is used in single-level and multilevel material price determination to valuate the materials for the closed period. For the current period, the material is still valuated using the standard price.   You can carry the periodic unit price in up to three currencies and three valuation views.

(Invoice Verification (MM-IV):)   A price that changes in consequence of goods movements and the entry of invoices and is used to valuate a material.   The moving average price is calculated by dividing the value of the material by the quantity of material in stock. It is automatically recalculated by the system after each goods movement or invoice entry.     Inventory Accounting (FIN-BAC-INV):   Valuation procedure in which the inventory price can be changed by each business transaction (such as goods movements, GR/IR clearing with externally procured materials, and order settlement for materials manufactured internally).

Calculating Scrap

 

Use

You can calculate and plan the scrap quantity that will result from production. These scrap quantities are then included in the planning run and in the calculation of production costs.

Prerequisites

Which calculation the system uses depends on the settings in the material master record or in the BOM.

Features

The scrap quantity is settled against the net requirements quantity.

Three calculation procedures are supported by the system:

• Assembly scrap
• Component scrap
• Operation scrap

https://help.sap.com/saphelp_47x200/helpdata/en/f4/7d28fc44af11d182b40000e829fbfe/frameset.htm

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Assembly Scrap 

Use

You use this function to plan the scrap that results from the production of an assembly.

Prerequisites

You have maintained the assembly scrap in the material master (MRP 1 view) as a percentage in the Assembly scrap field for the assembly header material.

Features

The system automatically increases the quantity to be produced by the percentage of scrap.

However, the system always uses the estimate yield for the availability calculation for the assembly. Furthermore, the estimate yield of the assembly is always displayed in the MRP list or in the stock/requirements list.

Assembly scrap increases the order quantity of the assembly and subsequently increases the order quantity for corresponding components. The dependent requirements of the material components are therefore increased correspondingly.

Example

Estimate yield	200
Assembly scrap	10%
This results in a scrap quantity of	20 pieces
and a required quantity of	220 pieces

https://help.sap.com/saphelp_47x200/helpdata/en/f4/7d28fc44af11d182b40000e829fbfe/frameset.htm

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Component Scrap 

Use

You use this function to plan the scrap of a component that may break during production of an assembly.

Prerequisites

You have entered values for calculating component scrap in the material master or the BOM:

• in the BOM on the Item Detail Screen: General Data (data block for quantity data). This component scrap is only relevant for the individual BOM.

• in the material master (view MRP 4) in the Component scrap field. This component scrap is relevant for all BOMs.

The component scrap quantity maintained for a material component in the BOM has the higher priority.

Features

 

• Component scrap increases the dependent requirements quantity of the component.
• If a scrap quantity was planned for a higher-level assembly, assembly scrap and component scrap are added to the component level.

 

Example

Estimate yield	200
Assembly scrap	10%
Component scrap	10%
This results in a scrap quantity of	42 pieces
and a required quantity of	242 pieces

 

https://help.sap.com/saphelp_47x200/helpdata/en/f4/7d28fc44af11d182b40000e829fbfe/frameset.htm

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 Operation Scrap 

Use

Before high-value components are built into an assembly, the system carries out a quality control check of the assembly, if necessary. Faulty materials that were taken into account in assembly scrap are not passed on to the next operation. They are removed.

Therefore, for a high-value component, you plan using operation scrap instead of general assembly scrap.

Prerequisites

You have maintained the operation scrap in the BOM, on the Items Detail Screen: General Data, under quantity data. You must also set the operations scrap net indicator at the same time.

Features

 

• This scrap quantity refers to the quantity of one component that is to be processed in an operation meaning that the planning run is more exact and you can determine service and quantity consumption more precisely.
• If the component is contained in an assembly, for which an assembly scrap quantity has been maintained, the system only takes the operation scrap into account.

 

• The net indicator instructs the system to calculate the component operation scrap without taking assembly scrap into account (net usage scrap).

You should also set the net indicator, if operation scrap has not been maintained and assembly scrap has been entered. The assembly scrap should not, however, be taken into account.

Example

	Quantity to be produced (required quantity)	1,000 pieces
	Assembly scrap	10 %
Component 1	Operation scrap	No entry
	Net indicator	Not set => assembly scrap is taken into account
	=> Scrap quantity	100 pieces
Component 2	Operation scrap	1%
	Net indicator	Set => assembly scrap is not taken into account
	=> Scrap quantity	10 pieces

Before component 2 is built into the assembly, the incorrect assemblies are rejected and the system only takes the smaller operation scrap quantity into account. Therefore, component quantity of component 1 refers to 1,100 pieces to be produced; and the component quantity of component 2 refers to 1,010 pieces to be produced.

 

https://help.sap.com/saphelp_47x200/helpdata/en/f4/7d28fc44af11d182b40000e829fbfe/frameset.htm