ML and actual costing in SAP S/4 Hana

As a product costing consultant I have worked for several companies in different fields as : Manufacturing, Oil and gas and life science.

Product costing is one of the most fascinating and challenging sub modules in SAP especially when we have ML and actual price activated.

In this blog I want to share with you (Based on my previous experience) all the new functionalities in ML with SAP S/4 HANA.

In SAP, material ledger is a subledger that provides a more detailed analysis of customer transactions.

The material ledger had two basic functions:

  • To carry out prices in several mix of currencies and valuation: (Group valuation / Group currency), (Legal valuation / Company code currency)
  • To Run actual costing: Inventory reevaluation, COGS, WIP…

What changed in ML with S/4 Hana ?

With SAP S/4 Hana ML activation become mandatory but actual price still optional.

The number of ML tables was reduced drastically to only two main tables: MLDOC and MLDOCCCS.

We can define up to 3 different currencies that can be delivered from FI, CO or manually.

The Parallel valuation can be used with multi-Valuation ledger (Single valuation by ledger) or single valuation ledger (With all the valuations needed: Legal, Group, Profit center).

Actual price in SAP S/4 Hana:

The runtime of the program is much faster because the actual costing cockpit is leveraging the speed of the SAP HANA in-memory database.

The number of steps in the actual costing cockpit was reduced (Instead of eight execution steps there are five execution steps).

In ECC :

In S/4 HANA : 

Single, multiple level determination and reevaluation of consumptions and WIP was grouped in only one step : Settlement.

Even if we use margin analysis COGS reevaluation is available at actual price (Caution: We cannot activate Variance splitting and COGS at actual price at the same time otherwise we will have a duplicated posting in COPA).

WIP at actual price can be activated if needed.

Activity price analysis:

Like for material price analysis, The transaction CKM3A has been designed to analyze Activity type/Business process consumption similarly to CKM3.

Alternative costing run:


Alternative costing run with parallel COGM was introduced (from Enhancement Package (EHP) 5).

AVR can be used for the following purposes:

  • Calculating the PUP over several periods.
  • Calculating the PUP with a different budget version.
  • Calculating the PUP following a different accounting principle.
  • Calculating the PUP using the parallel cost of goods manufactured (parallel COGM) functionality.

Please share with us your feedback, suggestions, and thoughts with us regarding this topic in comments.

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