” There are two types of Material Ledger
– When most people talk about the Material Ledger, they mean Actual Costing. The Material Ledger is used to track goods movements, invoices, and order settlements and then calculate a weighted average cost (the periodic unit price) using one or more costing runs at period close. This option continues to be supported in SAP S/4HANA for industries that regularly use Actual Costing, such as chemicals, pharmaceuticals, and food, and countries that require Actual Costing, such as Brazil, but the use of Actual Costing is not compulsory in SAP S/4HANA.
– The other option is to use the Material Ledger as an inventory subledger that captures inventory values in multiple currencies. This inventory subledger is also needed to store group valuations and transfer prices based on standard costs. This option is compulsory in SAP S/4HANA and is activated during migration, writing the inventory values in multiple currencies to the universal journal.”