These reports are usually tailored to internal management requirements for planning, controlling and decision making. Whereas the SAP CO module deals with internal management reporting such as:. These types of reports are usually for legal and regulatory purposes and they generally follow a standard format and rules governed by the General Accepted Accounting Principles (GAAP) of the country. The FI module deals with external financial reporting, such as the balance sheet and income statement. Traditionally SAP has categorized Accounting into: Material Ledger serves as a sub-ledger for inventory valuation. Material Ledger in SAP is a Sub-ledger for Inventory Valuation Such as the country or industry the company is in or the management requirements for how should report the inventory. Because the method of inventory valuation may differ from company to company depending on various factors. It is important to understand that it is much more than that. This is because actual costing tends to get the most attention, even though Material Ledger serves as a sub-ledger for inventory transactions. The Material ledger consists of two main functionalities:Ī common misconception about Material Ledger among SAP customers is that it refers solely to actual costing. Thus, in the same way, Material Ledger provides a more detailed analysis of inventory transactions.Īlso Read: An overview of SAP Receivables Management in S/4HANA Functionalities of Material Ledger Similarly, AR provides a more detailed analysis of customer transactions. For example, AP is a sub-ledger of G/L that provides a more detailed analysis of vendor transactions. These sub-ledgers are the categories that the Material Ledger fits into. It typically refers to AP, AR and fixed assets as sub-ledgers of the GL.
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