Material Ledger in SAP S4 HANA – Introduction
Material Ledger in SAP S4 HANA is used for inventory valuation in multiple currencies and actual costing.
In SAP, the word material denotes goods or services that we use for different transactions. These include purchasing, sales, production, warehouse and inventory management etc. Each Material represents a unique data object that is stored in SAP tables and contains several attributes. Such as plant, storage location, profit center, sales organization, standard cost etc.
Also, the master data of material contains hundreds of fields that serve different purposes. In addition, we can classify material according to what we use it.
Classification of Material Ledger in SAP S/4HANA
a) Raw Materials – Basic materials that we use in the production process
b) Semi-finished goods – Partly produced materials that we use in the production of other goods
c) Trading goods – Materials that the company purchase for resale
d) Finished goods – Goods that the manufacturing process completed.
The Material Master is a record of all the information necessary for maintaining a material and is organized into views. These views correspond to the areas in which we use the material.