In SAP S/4HANA, the activation of the Material Ledger (ML) is mandatory for all clients that use material inventory management. This is a fundamental architectural change from SAP ERP. The Material Ledger is required to manage inventory valuation in multiple currencies and is deeply integrated into the Universal Journal (table ACDOCA). While the ML is mandatory, activating its sub-functionality, such as actual costing, remains optional. The system cannot perform material valuation without the Material Ledger being active.

B. Parallel ledgers: Not mandatory. An organization can operate with only the leading ledger (0L) if it only needs to comply with a single accounting principle.

C. Actual costing: This is an optional feature within the mandatory Material Ledger. Companies can use the Material Ledger with standard prices without activating actual costing.

D. Margin analysis: Margin Analysis (the new account-based CO-PA) is the strategic and recommended solution, but costing-based CO-PA can still be used, making Margin Analysis not strictly mandatory.

1. SAP Note 2267834 - Material Ledger Obligatory for Material Valuation in S/4HANA: This official SAP Note explicitly states in its Symptom section: "In SAP S/4HANA

the Material Ledger is obligatory for material valuation." It further clarifies that this is a prerequisite for using the system.

2. SAP Help Portal

SAP S/4HANA 2023

"Material Ledger": The official documentation states

"In SAP S/4HANA

the material ledger is active by default." This underscores its integral and non-optional nature for inventory processes. (See section: Controlling (CO) -> Product Cost Controlling (CO-PC) -> Actual Costing/Material Ledger (CO-PC-ACT)).

3. SAP Press (2020)

Actual Costing with the Material Ledger in SAP S/4HANA: In Chapter 1

Section 1.2

"Architectural Changes in SAP S/4HANA

" the text confirms: "With SAP S/4HANA

it’s now mandatory to use the Material Ledger if you want to use the Inventory Management functionality." This highlights the dependency of core inventory functions on the ML.