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Paul Ovigele has worked as an ERP financials consultant since 1997 inSpeaker Badge both North America and Europe, specializing in implementing the Financial Accounting and Controlling modules and all integration areas for companies in various industries. Paul delivers training sessions to finance professionals at both functional and managerial...

Paul Ovigele has worked as an ERP financials consultant since 1997 inSpeaker Badge both North America and Europe, specializing in implementing the Financial Accounting and Controlling modules and all integration areas for companies in various industries. Paul delivers training sessions to finance professionals at both functional and managerial levels, and is published in Financials Expert where he also serves as a technical adviser. He has presented at SAP financial conferences in both Europe and the United States. Paul is the author of Material Ledger in SAP S/4HANA (2019).



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Explanation of FI Line Item Texts created by Material Ledger

Paul Material LedgerIf you use Material Ledger’s Actual Costing, then you would know that the Post Closing Step creates accounting documents depending on how the variances for the Material have been distributed. For example, a material with a price (or exchange rate) difference of $100 could be sold, scrapped, used in a production order that is complete, used in a production order that is not complete, transferred to another plant, or left in inventory. And this only refers to the differences that are created on the material itself (single-level), and not the differences that are transferred from other materials (multilevel) which have their own slew of Material Ledger postings.

 Because of this, it is easy to be overwhelmed by the volume of postings that are created by the Material Ledger’s closing entry and what they mean. Some companies choose to label the General ledger accounts appropriately to indicate what the posting is for, but if you do not understand the posting, it is easy to incorrectly label the General Ledger account. Also, you may not need a separate general ledger account for each scenario as that may lead to more General Ledger accounts than you need, and may create even more confusion.

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Introduction to SAP Material Ledger

Paul AwardMaterial Ledger is SAP’s solution to performing actual costing. It is supposed to contain the benefits (without inheriting the disadvantages) of the two traditional methods of inventory valuation - Standard Costing and Moving Average Costing. Before you can understand the functionality of Material Ledger, it is always good to start with some of the characteristics of these two traditional approaches.

Standard costing is an effective method of obtaining stable prices for your materials which can be benchmarked against any price fluctuations.

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Dive into SAP FI/CO with popular speaker Paul Ovigele at Controlling 2015


Paul Ovigele Controlling 2015Popular SAP Controlling speaker Paul Ovigele will present several sessions at Controlling 2015. Based on feedback from Controlling 2014, Paul has developed sessions on the topics attendees want to learn more about. Paul will present sessions on:

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Five Expert Tips and Tricks for SAP Controlling and Financials Webinar Recording and Slides


Paul Ovigele Controlling 2015On Friday, March 13 Paul Ovigele presented a webinar on Five Expert Tips and Tricks for SAP Controlling and Financials. 

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Guest — SAPHybrisonlineTraining
Best information and thanks for sharig
Wednesday, 26 October 2016 06:36
Guest — Neel Jaiswal
Thank you for sharing tips and tricks for SAP controlling. You can also enroll yourself in an institute for SAP course in Delhihtt... Read More
Thursday, 12 October 2017 10:52
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Free Book Excerpt: Introduction to Reconciling SAP COPA to the General Ledger


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You may wonder why I am writing a book on such a specific topic. I initially had similar thoughts myself and wondered if the topic of CO-PA and general ledger reconciliation necessitated a whole book. However, I have found that this topic comes up time and time again with my clients and believe that it is important to provide information in a detailed manner to help businesses effectively deal with the reconciliation of CO-PA to the general ledger.

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Most Common SAP Controlling Pitfall: Inability to Automatically Reconcile the SAP CO-PA Module with the SAP General Ledger

Paul Ovigele

Our blog series on the most common SAP Controlling pitfalls and how to avoid them continues this week. SAP Controlling 2013 speaker Paul Ovigele discusses the most common pitfall is from his perspective.

The Controlling Profitability Analysis (CO-PA) module has been around about 15 years, and its original purpose was to enable businesses to produce market segment profitability reports predominantly based on sales data. It is particularly useful to users in the Finance and sales departments as it allows you to perform profitability analysis according to several dimensions (customer, product, country, salesperson etc.) and its real-time functionality aids quick and effective decision making. However, one pitfall of the Controlling module is the inability to automatically reconcile the CO-PA module with the General Ledger.

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Updating Quantity Fields in CO-PA

If you are using the Controlling Profitability Analysis (CO-PA) module, then you know that the task of mapping various objects to value fields is the key to ensuring that the reports are complete and accurate. The normal scenario is to assign amount fields such as sales conditions, general ledger accounts and production variances. However, it is also important to map quantity fields such as sales and production quantities to value fields (which are set up with a “quantity” attribute in transaction KEA6). Most sales and contribution margin reports contain these quantity values (for example Net Weight of products sold) in order provide the appropriate context for the reported revenue and cost of sales figures.

I will discuss the three main areas where you can make assignments to quantity fields in CO-PA:

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Guest — Elanthendral
I like your collection, thanks for sharing this wonderful collection of themes with us.i am working in Erp In Chennai
Wednesday, 11 May 2016 11:56
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Introduction to SAP Material Ledger

b2ap3_thumbnail_IMG_3289.jpgMaterial Ledger is SAP’s solution to performing actual costing. It is supposed to contain the benefits (without inheriting the disadvantages) of the two traditional methods of inventory valuation - Standard Costing and Moving Average Costing. Before you can understand the functionality of Material Ledger, it is always good to start with some of the characteristics of these two traditional approaches.

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Recent Comments
Guest — Satish
Thank You For Giving The Valuable Information Paul Ovigele , This Post Is Very Useful For Understanding SAP Material Ledger.... Read More
Thursday, 28 July 2016 07:53
Guest — Elanthendral
Nicz.I need some tips related to your content. I am working in Web Designing Companies In Chennai.
Monday, 09 January 2017 11:09
Guest — CK
How many types of variances can be calculated using ML?
Tuesday, 20 March 2018 05:10
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