Many SAP installations experience long run-times during Material Ledger close. This Blog explains a function that can help expedite Material Ledger close.
Knowing how much a product costs is essential to determining actual profitability. Yet most decisions are based on the standard cost of the product, given that it is not always easy to get an accurate picture of the actual cost. Actual costing functionality provided by the Material Ledger component of SAP Controlling bridges this gap. It provides the ability to capture actual costs by tracking variances at the material (product) level. This section provides an overview of actual costing in SAP Material Ledger.
SAP Material Ledger inventory valuation includes the following:
SAP Material Ledger collects material movement data throughout the month and keeps track of which materials were used for the production of specific goods in production/process orders.
The SAP Materials Management module (in combination with the FI module) tracks goods movements and their values at standard cost, while the SAP Material Ledger tracks goods movement values at standard and actual costs. In other words, SAP Material Ledger can be considered a second set of books where each material has a record of all goods movements for actual valuation.
You run SAP Material Ledger closing cockpit every month to perform actual costing using transaction code CKMLCP. The menu path is as follows: Accounting • Controlling • Product Cost Controlling • Actual Costing/Material Ledger • Actual Costing • CKMLCP—Edit Costing Run.
The first step is to create a costing run and assign relevant plants. After selecting plant(s), the Material Ledger closing cockpit requires several steps as shown in Figure 1.1
Figure 1.1: CKMLCP — SAP Material Ledger closing cockpit process steps
Large run times and low system performance may become the norm, given that Material Ledger processes large amounts of data in the closing cockpit. Parallel processing can be used to address this performance concern.
As shown in Figure 1.2, there is an option to run Material Ledger close steps on multiple servers at the same time.
Figure 1.2: CKMLCP – ML Close: Parallel processing on multiple servers
This feature is often referred to as parallel processing. You can see at the bottom of the screen, server group parallel_generators has been selected, with the additional selection of maximum number of parallel processes as 10. This means that, instead of the usual single server, this job will be executed in parallel on 10 servers. This implies there could be a significant (at times, 85-90 percent) performance improvement for this job.
Parallel processing setup requires collaboration with the BASIS team in your organization.