2.5    Valuation

With the introduction of SAP S/4HANA, the usage of the Material Ledger (ML) becomes required for inventory valuation. This transition has implications on finance organizations but is relatively transparent for supply chain organizations.

This next section will focus on the integration points between IM and Finance and will feature multiple currency functionality and locking optimization.

2.5.1    Multiple Currencies

SAP S/4HANA supports valuation of multiple currencies. Whereas the SAP Business Suite supported only one material currency, with SAP S/4HANA, you can support up to three currencies. Using the parallel valuation functionality, the unique currencies create a specific valuation view such as company code/legal valuation, group valuation, or profit center valuation.

2.5.2    Locking Optimization

SAP S/4HANA has introduced a major change in the IM module to support increased throughput of goods movements by introducing multiple locking strategies. The following locking optimization options are available in SAP S/4HANA:

• Exclusive lock (early lock strategy)
  When material master data is read for the first time during a goods movement, all plant and accounting data tables are locked exclusively until the goods movement has been fully posted. Another user can’t maintain the material during this time. This ensures that the goods movement is valuated correctly and that the stock quantities and values are updated correctly. The disadvantage is the long period of time for which the lock is set (from the time the material master data is first read when the goods movement is entered through to completion of the update posting).
• Late exclusive lock
  Material is blocked as late as possible only if data is actually saved. In this strategy, material master and quantity data is read before item processing, but no exclusive locks are set. An exclusive lock will be set only for a short period of time during item processing for each item. This exclusive lock will be converted into shared locks after checks for the stock are run.
  With SAP S/4HANA leveraging insert-only database changes in the MM-IM data model, no exclusive locking is required for material with price control Standard and Moving Average with all stock types. The benefit of this method is that no exclusive locking is required for material valuation, and it enables parallel material document processing. Some locking is necessary for moving average price items to allow for updates to pricing changes.