Nonvaluated Materials Example in SAP Material Ledger

Excerpt from Practical Guide to SAP Material Ledger by Rosana Fonseca.

John wishes to control the procurement and inventory quantity of his shop floor aides such as rags and working gloves. However, he does not want the expense of those items to be included in the cost of goods sold, nor does he wish to maintain cost estimates or accounting data for those items.

John decides to create material numbers for his shop floor aides with the material type ‘Nonvaluated materials’. This material type does not use the Costing or Accounting Screens. He now has the ability to purchase shop floor aides by using SAP’s reorder point planning logic without the need to maintain costing and accounting views. He also has the added benefit of using a material number range specific to shop floor aides that will help to identify their use within the plant.

Keep reading in Practical Guide to SAP Material Ledger.

Author Rosana Fonseca is an independent SAP Financials consultant who has been working in SAP since 1999. She is SAP certified in FI and CO modules and has extensive experience in SAP global projects in the USA, Canada, Europe, UK, Asia, and South America, which includes different industry segments such as Mining, Oil & Gas, Chemicals, Electronics, Energy, Consumer Goods, Telecom, and Aerospace. She is originally from Brazil, but is also a Canadian citizen. She currently lives in Toronto in her adopted country Canada.