cancel
Showing results for 
Search instead for 
Did you mean: 

Stock Balance Migration with ML Actual Costing

dwarakanath_n
Active Participant
1,224

Hi Friends,

I have planned the following approach for Stock Balance Migration for my client in S/4 HANA. Client is from Retail Industry (uses Article master instead of material master. Production plant called as Distribution Centre and Selling plant called as Stores).

Kindly review and advise if the below steps can be performed. ML Actual costing available.

As per SAP Note 2530862, the usage of material ledger with actual cost component split is not release for usage with distribution centers or stores for Retail Industry. Hence not using Actual CCS in our process.

We have legal and profit center valuation with different ledgers.

Step 1: CKMSTART Execution

Step 2: Load Material Master with V + 2 (including FS, SFG articles). This is mainly to facilitate legacy data load with their provided Qty and Value to reconcile easily in cutover period. If it is through S + 3 combination, there would definitely be a difference (between MR21 price to their provided legacy data) and that requires again MR22 to adjust. To avoid such complication in steps, planning to do initial V + 2 for all articles.

Step 3: Tally Legacy data load with S/4 HANA load value and secure confirmation from Business.

Step 4: Close Cutover period in MM. Go-live period will be open now. No ML Actual costing is required in Cutover period as all materials are V+2 only.

Step 5: Perform Standard Costing up to Costing analysis step (without mark and release) in Go-live period. This is mainly to analyze the difference between legacy data in Cutover period with SAP standard cost for FG, SFG materials. Download the difference in excel sheet (Reason for doing this step is that client wants Labor, Overheads and Profit center markup in S/4 HANA which is not available in their legacy data. Example: If the legacy data is 10 Qty * 10 SGD per Qty = 100 SGD, with labor, overheads and profit center markup in S/4 HANA, it would be 10 Qty * 12 SGD per Qty = 120 SGD. Difference of 2 SGD per unit or 20 SGD in value will be available and to be downloaded to excel sheet)

Step 6: Based on the step 5 difference and after securing approval from client, load the difference through MR22 in Go-live period. This will create BSX and UMB posting. Up to this step, material is still V + 2 combination, hence this difference will not hit ML Actual costing.

Step 7: Perform CKMM to change V + 2 to S + 3 for FG and SFG Articles in Go-live period (As suggested in SAP note 384553 - Changing 2V to 3S or vice versa needs to be handled only once in a period and I'm following the same).

Step 8: Mark and Release Standard Cost Estimate in Go-live period. This will convert MAP to Standard Price. There will not be any Price Revaluation / Price difference posting as the difference has already been posted through Step 6.

As of this step, Standard price and Actual price will be same in Go-live period. Based on Goods movement in Go-live period, there may be price difference (PPV or production variance) and that would be posted to ending inventory or consumption during ML Actual costing execution on First period end close.

Reason for following the above steps:

a) Initial V + 2 for quicker reconciliation with legacy data (both Qty and Value)

b) There will be a difference between Legacy inventory price at cut-over period end with S/4 HANA price during Go-live period beginning and the difference explained in Step 5), hence MR22 to be performed.

c) Also performing MR22 before CKMM in Go-live period will help to have same price in both Standard and Actual.

This I thought after analyzing the below two options:

a) Without MR22, Standard Price Revaluation after CKMM in Go-live period will increase Standard Price to the extent of the above difference, but Actual price at first period end will still be same as legacy data price as the standard price revaluation will be nullified in Ending Inventory after ML Actual costing. In this case, Standard Price will increase, but Actual Price remains same as of cutover period price.

b) MR22 after CKMM in Go-live period will make Standard Price same as equal to legacy (due to PRD and UMB posting), and Actual price at first period end in ending inventory will increase to the extent of MR22 PRD posting. In this case, Standard Price remains as it is of cutover period price and Actual Price will increase.

Kindly review and advise if there are any changes required in the above steps or anything specific to be considered as part of ML Actual costing during first period end close.

Thanks a lot for your help.

Regards,

Dwarak

Accepted Solutions (0)

Answers (0)