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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 valuations: (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:


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).

Other functionalities like 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.



Like for material we can see for each activity type/ Cost center how was the price difference was settled in production ( Process or production orders) and WIP.

Alternative costing run:


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

AVR can be used in S/4 Hana 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.



Actually, In transactions CKMLPC and CKMLCPAVR, there is an additional parameter "Application", this application can be chosen so that it is possible to process Alternative Valuation Runs (AVR).

In S/4 Hana, There are 2 options for creating an AVR:

  • Create a Classic AVR which is the same like the classic ERP version without Run reference.

  • Create an AVR with "Run reference" . The idea is to make the AVR creation easier and safer as there are many different settings to be maintained. Before creating the AVR, a Run reference should be created with the main settings relevant to the AVR. The settings are taken from the Run reference and cannot be changed anymore.

NB: It is no longer possible to use delta posting runs. AVR is always a full posting run and can only be one per period. (For more details check OSS note: 2559509 - S/4 HANA: New settings in ML Costing Cockpit (AVR)).

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

For more information and to get updated with all new SAP S/4 Hana insights I encourage you to follow the SAP S/4HANA Finance : https://blogs.sap.com/tags/67837800100800006927/


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