In S/4HANA, the Material Ledger (ML) is directly integrated into the general ledger via the Universal Journal (ACDOCA) as a subledger for inventory valuation and replaces Material Management (SAP MM) for inventory management.
This ensures the "Single Source of Thruth" approach for material valuation and inventory management.
Accordingly, this new data model makes the activation and use of the Material Ledger mandatory for all companies with material valuation and inventory management. Inventory valuation is no longer part of Material Management (SAP MM). Optionally, parallel valuation and actual costing can be implemented and used.
Companies planning a changeover to S/4HANA must deal with the use and functionalities of the Material Ledger. They need to integrate it into their S/4HANA transformation strategy, regardless of whether they have used Material Ledger in the past or not. It is not possible to change the settings of the Material Ledger afterwards, especially with regard to parallel currencies!
Companies should ask themselves the following questions about the functionalities of the Material Ledger:
Customers with or without Material Ledger experience should consider the functions of the Material Ledger before performing a S/4HANA transformation. The decision regarding the use of the Material Ledger should be included in the S/4HANA transformation strategy.