We might have seen material ledger issue while working in S4 Hana, for example while creation of material master. As we can see the error below. Lets discuss about it.


As the error states, The term "Valuation Area" refers to the physical location where a companies plant are situated. 


While the Material Ledger functionality is not mandatory in the SAP ECC system, the opposite is true for S4 Hana. 


In S4 Hana, the Material Ledger functionality is considered to be a part of the Controlling module. To streamline the 

process and reduce the number of tables stored in the background, SAP has made it technically mandatory to activate Material Ledger at the plant level. However, the decision to use this feature functionally in practice depends on the client's specific requirements and is therefore optional.


Activation of Material Ledger:


Path :     SPRO -->. Controlling  --> Product Cost Controlling --> Actual Costing/Material Ledger -->


Here, we need to perform first 3 steps 


                                                                 OR


We can directly use below T-Codes to avoid the path.


                   i)   OMX2-  Assign Currency Types and Define Material Ledger Types.

                   ii)  OMX3 - Assign Material Ledger Types to Valuation Area

             iii) OMX1 - Activate Material Ledger for Valuation Areas







 i) Assign Currency Types and Define Material Ledger Types (OMX2)

        Here, ML type -9000 and 0001 has already been provided by SAP as Standard.


Select and go to next step.


Now, we can see how many currencies are assigned to this ML type. Here, we can tell the system how many currencies we required, it will be part of CO.




ML- 0001 has 2 currencies. Company code and Group currency.



Verify that ML- 9000 have one currency (company code currency).



ii) Assign Material Ledger Types to Valuation Area (OMX3)


Assign material Ledger with Plant.




iii) Activate Material Ledger for Valuation Areas (OMX1)



Note : If we are activating actual costing in Material Ledger and other configurations then only use 3 or else use -2.

Price determination binding – If this indicator is not set, we will can chose between 2 or 3. If its checked than by default it will appear as 2 or 3 which is maintained in price determination and can’t be changes while material creation.



Now material Ledger (ML) has been activated, so lets create a material an check.

As we can see we are still now getting error of “material master must be productive for plant”



For that we need to go to T-Code- CKMSTART. Need to convert live data/ master data that needs to be converted.

Enter plant and Remove the Test run check box. --> Execute.



It will start migration of material master or Transactional data are created to the ML table.






Now go to – Tcode- SM37 to check if job has been finished or not. Once its finished, we can go ahead to create the material master.





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