1. Material Ledger - Precautions
Material Mater data
Material movements
Inventory revaluation
Prior period Inventory adjustments
Financial postings
Period end closing

2. Material Mater Data
 Ensure all the materials in all the plants in a
Company Code should be activated for material
ledger.
 Ensure the all in-house produced materials (FG and
SFG materials) are to be considered for actual costing
with price determination indiacater”3” with price
control “S” in the accounting ‘1’ view.
 Ensure the rest all materials apart from the above
are to be considered for non- actual costing with
price determination indicator “2” with price control
“V” in the accounting view.

3. Material Movements
 It is obligatory that the right movement types should
be used for relevant movements. For instance the
movement type” 561” should be used for GR w/o
reference to order and the movement type “562”
should be used for reversal 0f movements with
“561”. At the same time “562” should not be used
for issue of material.
 Avoid the material to material transfers as much as
possible.

4. Inventory Revaluation
 Ensure the inventory re-evaluation is done always in
the beginning of the period before starting the
material movements of the particular materials.
Inventory re-evaluation is not possible in mid of the
period once the material movements are already
happened during the period. However this limitation
is applicable only for the materials activated for
actual costing i.e with price determination “3”.

5. Prior Period Inventory Adjustments
 Ensure the material adjustments if any required for
the previous period should be done before closing
the ML only, preferably before closing the material
period.
 Prior period material movements (value relevant) will
not be possible once the ML closing is completed for
the particular period. However this limitation is
applicable only for the materials activated for actual
costing i.e with price determination “3”.

6. Financial Postings
 Ensure that the production cost centers should not
be posted with high value one time credits /
debits, preferably credits. If any such postings may
be posted to the corporate & general admin cost
centers.

7. Period End Closing
 It is obligatory that the ML closing should be
performed for the previous period before closing the
present MM period. ML closing for the previous
period cannot be performed once the present MM
period is closed.