How to do Material Ledger Multiple Currency?

Material Ledger Multiple Currency: The system stores valuation data for a material in its material ledger in up to three currencies. You specify in which currencies the system stores this valuation data in Customizing for Valuation and Account Assignment.

When you, for example, post an invoice receipt, the system translates the amount into the other currencies specified using the current exchange rate. This means that the Material Ledger has information based on historical exchange rates.

You can display and maintain current exchange rates either in Customizing for Financial Accounting or by choosing the menu options as below,

Accounting => Financial accounting => General ledger => Environment => Current settings.

Material Ledger Multiple Currency

If information already exists in more than on currency outside of the material ledger, the values with currency types corresponding to those of the material ledger type are transferred. The production order or a standard cost estimate can, for example, contain information in company code currency and in controlling area currency.

Material Ledger Multiple Currency


If the material ledger stores both of these currency types, the values are not converted, but rather transferred to the material ledger when the production order is settled or the standard cost estimate is marked.

The system stores the different currency values in the material ledger record. During material ledger closing, the system totals these values separately in each currency and calculates a separate periodic unit price in each currency. This method means that inventory values and prices for materials with V price control are calculated independently in the different currencies.

The system calculates the periodic unit price in parallel in three currencies.

The system does not translate the periodic unit price itself. The values from the transactions are translated with the exchange rate valid at the time of the transaction and collected in the material ledger. At material ledger closing, a new periodic unit price is calculated for every currency.

The periodic unit price can therefore rise in one currency and fall in another at closing depending on exchange rates on different days.

Also See: SAP Materials Management – Overview

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