Improve productivity and reporting with SAP Material Ledger

Improve productivity and reporting with SAP Material Ledger

SAP Material Ledger has come a long way since my first implementation in 2000 with SAP version 4.5.  That was an implementation in Transfer Pricing for intra-company code transfers. Then another 2 implementation to activate multiple currencies for a global implementation. And 1 implementation for Material Ledger currencies, and actual costing. The initial versions of Material Ledger were resource consuming functionalities, and prone to issues/ bugs.  However, the functionalities have improved over time; and the SAP ECC 6.0 has a robust version of Material Ledger.

As an accountant who progressed to SAP Financials, SAP Product Costing and SAP Material Ledger are pure marvels of technology and a blessing for finance decision makers. It removes the drudgery of book-keeping in the costing process and releases the time for analysis and improved decision making with the organisation.

During my days as an accountant in the pre-SAP world, I used to perform Product Costing using a combination of in-house COBOL programs, and office products like Lotus 123, Foxbase.  Graduating to SAP Costing was an exercise in automating and consolidating the various manual processes I used, to gather information and report costs. That improved my productivity to perform the tasks of analysing the data and taking decisions.

The main gripe with SAP Product Costing was that it offers only two choices for valuing inventories: Standard Cost and Moving Average cost. Customers wanted a more realistic cost that was closer to reality than standard cost, and could handle the erratic fluctuations in moving average cost. The limitations were overcome when SAP introduced the Material Ledger in version 4.0.

Below is a simple slideshow on what SAP Material Ledger can do for your organisation. This module could significantly improve the productivity in your organisation; and provide real time cost information, that can be used a catalyst for decision making.


Rajesh has implemented SAP Material Ledger at 4 of his customer sites. Rajesh has 12 years experience implementing SAP / IT / BPM Finance solutions for several customers globally; he also has 7 years experience working in the business in Finance and Accounting functions. His business process knowledge combined with his IT expertise enables him to provide his customers with best-of-breed advise on business process / IT implementations.

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