Material Ledger

The solution for controlling your costs

One of the questions that companies, of every sector and size, often find themselves asking for is: “What are my costs? And what price do I have to sell my products? “. It is not easy for an activity, especially if characterized by multiple production processes, to accurately quantify the costs and establish a standard price of the product it sells.

For this reason Technis Blu over the years has highly specialized in Material Ledger, an SAP component within the area of cost control. In some contexts, Material Ledger is defined as a register of materials: starting from the actual costs of each processing material, in fact, a final cost is reached, from that later on it will be understood which price to resell the product.

Do you want SAP consulting to know
the individual costs of your activity?

Targets

The cost control phase is extremely incisive and delicate for a company: indeed, it is from this phase that it is decided at what price to sell the final product and, consequently, the marginality that will derive from it. Material Ledger is born just to help you out and support you in this phase. Among its targets we find:

Create, execute, analyze the Average Incremental Cost for all materials;
Identify a final cost that derives from the cost of the individual material and the processing plant;
Manage costs consistently within each production area of the company.

Solution

After fully understanding your needs, Technis Blu team will introduce you into the world of Material Ledger, an SAP component that uses the “alternative assessment” method for updating costs.

Costs are calculated at the end of the accounting period and the purchases, productions, incoming and outgoing movements are taken into account. At this point, through the actual costs, it will be possible to evaluate the stocks of raw materials, semi-finished products and finished products. At the end of this process you will be able to obtain, therefore, a complete overview of the costs that your Company faces and you will be able to better manage the goods stored in the warehouse.

Functions

The Material Ledger function follows a series of specific phases:
- Preliminary assessment. At this stage the actual cost comes from all goods movements within a period at the standard price;
- All price and exchange differences for the material are collected in the material ledger;
- At the end of the period, the actual price is calculated for each material, based on the actual costs found;
- The actual price is used on stocks and, possibly, on the subsequent period. In this way the variances of materials are rolled up over several levels of production, up to the finished product, avoiding losing margins.

Technis Blu services

All companies wishing to install the Material Ledger system can count on the support service offered by Technis Blu. In detail, this service is characterized by its completeness and provides for: meetings with the customer aimed at better understanding the objectives and needs and identifying the necessary implementations also based on the peculiar characteristics of the company; operator training aimed at the correct and effective use of the system; creation of ad hoc reporting. To meet the many and varied demands of its customers, Technis Blu offers not only basic services but also optional additional services to guarantee a complete solution.

Basic services

Project Management;
Gap Analysis meetings;
Installation activities for the system;
Key-User training;
Example file for manual data migration;
Predefined Test Plan and Scenarios;
Printouts and predefined reports;
Go-Live Support.

Optional services

End User Training;
Prints, Reports and customized Interfaces;
Customized authorization profiles;
Change Management;
Post Start Support;
Additional components (data migration, customizations, etc.).

The experience of Technis Blu determines a great knowledge of the internal dynamics and needs of companies. For this reason, the Material Ledger solution has been designed as an ideal system for various types of business, which makes it possible to have full control over every single aspect of the company. Technis Blu offers services designed to ensure you take full advantage of the various management functions.