NEW CKMLCP IN S/4HANA - ERP Financials

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Created by Beatriz Cruz, last modified on Nov 28, 2018

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The most significant advantages of the New Actual Costing in S/4HANA 1610 are the following:

There is one Settlement step that replaces the classical CKMLCP steps Single Level Price
Determination, Multilevel Price Determination, Revaluation of Consumption and WIP Revaluation.
The unification of single and multilevel price determination reduces complexity e.g. for error handling.
An additional Preparation step is required to prepare the data.
If a material is reprocessed for Settlement, the depending materials on higher costing levels which need
to be reprocessed are recognized automatically.
Locking materials can be restricted to the CKMLCP period , so it is possible to post goods movements in
the current period.
Change of standard price for materials and activities within the period is supported.
Price Differences entered in Consumption Folder are considered by Settlement too.
Cycle iteration has been improved.

The new data model leverages the strength of HANA.

New features in New CKMLCP

The steps Selection, Preparation, Settlement and Post Clsoing are new programs that process both
materials and activities.
New additional columns for activity statistics are displayed in CKMLCP.

An additional column 'Locked' is included to set a period lock for all plants of the costing run. If the lock is
set, no goods movements can be posted in the closing period, and the steps Preparation and Setllement,
process the materials without enqueue. The step Post Closing still enqueues the materials since it
updates also data of next period.
New CKMLCP: Steps

The Selection step selects:

All materials with price determination '3' which are relevant for actual costing calculation as per
goods movements posted in the period.
All activity types if activity update = '2' and the activity types are relevant for the costing run.
Parallel processing is available.

The Preparation step:

This step prepares the settlement records, still without values, including input-output connections,
WIP reduction/rollup and revaluation.
All materials and activities are processed or only the open objects, depending on the
postprocessing options.

Parallel processing is available.

Dropdown buttons allow processing

specific materials or activities only. If the
dropdown button for materials is opened,
no activities are processed (even of no
filter is applied) and viceversa.
It is not possible to open the dropdown
buttons for both materials and activities
at the same time.
If you want to reprocess all materials and
activities, both boxes should be closed.

It is possible to run the Settlement step in

old periods, with no need to use the
workaround from KBA 1523233.
You just have to call CKMLCP for the corresponding costing run, and execute the steps. For the
Post closing step of an old period, the corresponding period has to be opened in FI, but there is no
restriction from the Material Ledger side.
 A new exceptional processing parameter
allows processing even if the previous
period is not closed (old error C+805):
'Allow Open Status for Previous Period
(Exceptional Processing).
It is not necessary to set status manually
closed.
This parameter is meant to be used only
in exceptional cases.

The status is checked and updated:

Materials with status error receive an error message and are excluded from processing.
Successfully processed materials receive status green in Preparation step. Materials
processed with errors receive status error in Preparation step.

The Cost Sequence Determination is integrated in the Preparation step.

Result List is available:

The Settlement step:

The actual costing calculation is done on cumulative lines, and also the consumption side is read.
The price limiter logic is applied is activated.
Cycle iteration is carried out.
The cumulated variances are distributed to Consumption lines and Ending Inventory.
For the multilevel settlement lines the corresponding output settlement lines are created.
The Periodic Unit Price is calculated for materials.
The status is checked and updated:
 Successfully processed materials
receive status green in Settlement
step. Materials processed with
errors receive status error in
Settlement step.

Settlement parameters:
Postprocessing option: process all
or only the open objects.
The option ‘do not process’ is
usually enough as the settlement
resets the status of depending
materials on higher level, if their result changes by reprocessing an input material/activity.

Stock Coverage Check (Price Limiter Logic) can be switched on/off.

Automatic Error Management options for:

->Negative price error

->No Convergence with cycle

Parallel processing is supported.

Dropdown buttons allow processing specified materials or activities only (see Preparation step).

For materials, the costing evel and cycle number can be additionally informed. This allows reprocessing
Settlement from a certain costing level on.

Result List and Message log are available:

The Post Closing step:

See the KBA 2558888 - S/4HANA 1610: Post Closing logic in Material Ledger / New Actual
Costing
This step posts the closing document according to the settlement documents.
In the reverse closing case, the closing documents are read and the corresponding values are
reversed.
The Ending Inventory Differences are carried-forward and the materials inventory is revaluated if
'Revaluate Material' parameter has been set.

Materials are locked, as Post Closing step also updates data of next period.
See KBA 2693194 - Error message ML4HRUN101 Valuation Area locked for period MM year
YYYY

The FI and ML documents are created.

The status is changed to Closed.
The Posting logic differs from the classical Posting logic, with a Push logic instead of a Pull logic:
The multilevel rollup from input to output is now posted in the closing document of the input
material or activity. In the classical Posting logic, it was posted in the document of the output
material.

The closing document for activities now also includes the postings for multilevel rollup and
WIP rollup.
A new posting for activities has been introduced, using transaction key PRL.

The activity price variances related to the total consumption of the period are now posted from cost
center account GBB (AUI) to Material Ledger price difference account PRL by one single posting.
From PRL they are then distributed to the receivers.

In this way 'not allocated' variances remain no longer as balance on cost center account, but
instead on the PRL account.

Activities are always posted with valuation class < blank> now.

Check the notes:

2354768 - S4TWL - Technical Changes in Material
Ledger with Actual Costing
2352383 - S4TWL - Conversion to S/4HANA Material
Ledger and Actual Costing

New logic fo clearing of Revaluation Account (UMB)

after price changes:
The Revaluation from price changes or backpostingsare
created immediately and offset as price differences in
CKM3N.
They remain on UMB account in FI and are posted from
there to PRY by Post Closing of the period they were
entered, instead of being cleared by Post Closing of the previous period.

Post Closing step parameters:

The parameters in the first 3 frames are the same as in the classic CKMLCP.

The parameter ‘No. Of Materials in ML. Doc.’ only refers to the size of the posting package (
the number of materials or activities posted in the same ML document).
The size of the processing package is now bigger.

Parallel processing is supported.

 Dropdown buttons allow
processing specified materials or
activities only (see Settlement
step).

Result List and Message log are available:

Results button in New CKMLCP

 On the Display Object List screen , you can decide what to display. You may restrict the display to
one of the steps, or to the materials with error or to the still open materials.

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