In SAP S/4HANA, the Material Ledger (ML) is a mandatory component for inventory valuation. A primary function of the ML is to manage material prices in multiple currencies and valuations, allowing for parallel valuation in up to three currencies (e.g., company code, group, and hard currency). Furthermore, the ML is the foundation for Actual Costing. It collects all value-relevant transaction data throughout a period to calculate a periodic unit price (PUP). This PUP represents the actual cost of the material for that period and can be used to revalue inventory, thus providing different prices for material valuation beyond the standard price.

A: The material ledger is activated at the valuation area level (typically the plant), not the controlling area level. A controlling area can encompass multiple valuation areas.

E: The material ledger calculates the periodic unit price (actual cost) at the end of a period. The standard price is calculated via a standard cost estimate (e.g., costing run).

1. SAP Help Portal - S/4HANA - Material Ledger: "In SAP S/4HANA

the material ledger is obligatory and must be active." This supports option C.

URL: https://help.sap.com/docs/SAPS4HANAON-PREMISE/1e647943c63b4fb699935129b6120c5c/4764395876533304e10000000a114a6b.html

2. SAP Help Portal - S/4HANA - Multiple Currencies and Valuations: "The material ledger allows you to manage material inventory values in two additional currencies/valuations." This supports option D.

URL: https://help.sap.com/docs/SAPS4HANAON-PREMISE/1e647943c63b4fb699935129b6120c5c/4764395876533304e10000000a114a6b.html (within the "Features" section of the main Material Ledger page).

3. SAP Help Portal - S/4HANA - Actual Costing/Material Ledger: "At the end of the period

a periodic unit price is calculated for the material using the actual costs incurred in that period. This price can be used to revalue the inventory." This supports option B.

URL: https://help.sap.com/docs/SAPS4HANAON-PREMISE/1e647943c63b4fb699935129b6120c5c/4764395876533304e10000000a114a6b.html (within the "Features" section).

4. SAP Help Portal - S/4HANA - Activation of Material Ledger for Valuation Areas: "You activate the material ledger for one or more valuation areas." This proves option A is incorrect.

URL: https://help.sap.com/docs/SAPS4HANAON-PREMISE/1e647943c63b4fb699935129b6120c5c/4764395876533304e10000000a114a6b.html (within the "Implementation Considerations" section).