In this post we will first check the configuration in details required for material master creation in S4 HANA. We will keep configuration minimum possible & use of SAP standard wherever possible.

1. Material Master related configuration

Below are the main configuration required to create material master

1.1 Material Type

Grouping of similar attribute materials . For example -Raw materials, Semi-finished products, or finished products.

Material type determines

• If the material is intended for a specific purpose such as a configurable material or process material.
• Material number is assigned internally or externally.
• The number range of the material number.
• Which screens appear and in what sequence
• Procurement of the material -manufactured in-house or procured externally, or both

We will use below SAP standard material type

• ERSA Spare Parts
• FERT Finished Product
• HALB Semifinished Product
• HAWA Trading Goods
• LEER Empties
• LEIH Returnable packaging
• ROH Raw materials
• VERP Packaging
• HAWA Trading Goods

Below is the configuration for let,s say example – Trading Goods (HAWA)

Transaction code – OMS2

Now click on “Quantity/value updating” & select “QTY Update” & ” Value Update” for your all material type in all your plants (Valuation Area)

So we have selected for our valuation areas PA10, PA20 & PP10

1.2 Define Number Ranges for Each Material Type

Here we define the type of number assignment and the number range intervals for material master records. When creating a material master record it is must to assign it a unique number. There are two ways of doing this

1.2.1 Internal number assignment

In this case, a number within the number range interval allowed is assigned by the SAP system. Currently, the maximum length allowed for an internal number is 18.

1.2.2 External number assignment

Here, the user assigns a number within the number range interval allowed. You can define the intervals for external number assignment numerically and alphanumerically. For integration purposes, SAP, currently, allows only the number range length of 18 characters.

Transaction Type ; MMNR

Now let,s create our first material

2. Create your First material in S4 HANA

Here we will create different materials to be used for our car business

2.1 Creation of “Trading Material” -Mat Type “HAWA”

HINT

On Step 9 “ML Active” checkbox should be already selected and greyed out. If this is not selected then stop here and check ML activation through the link given below.

How to activate Material Ledger in S4HANA in 5 Easy Steps

2.2 Creation of “Packaging Materials” -Mat Type “VERP”

As per definition provided by SAP- “Packaging materials are intended to enclose or hold together the materials that are to be packed. In other words, the material that is to be packed can be packed into or onto the packaging material. The packaging material can be a load carrier. The most important packaging materials include crates, boxes, containers, wire baskets, and pallets”

We will create two packaging material

• Packaging Material CARTONSTD -CARTON WITH SSCC GENERATION
• Packing Material PALLETSTD – PALLET WITH SSCC GENERATION

a) Packaging Material CARTONSTD -CARTON WITH SSCC GENERATION

TCode – MM01, Select Material type as “VERP” – Packaging Material

Packaging material type Standard Carton “SCAR” assigned to packaging material “CARTONSTD”

b) Packaging Material PALLETSTD – PALLET WITH SSCC GENERATION

T-Code – MM01, Select Material type as “VERP” – Packaging Material

Note : Please see the below post to see the packaging material type “SCAR” & “SPAL” configuration in detail

Unlock SAP Efficiency: Master Handling Units Now! – Create the Packaging Materials

3. Extension of Material to Other Plants

There are business cases where we need to extend the materials to other plants.

3.1 Extension to intra-company Plant – Business Case

In order to work with stock transfer/stock transport order , it is mandatory to extend the material in both the plants. This means the material should be available in both receiving & sending plants

We need to extend our materials to our other plants in order to be able to do Stock Transfers & STOs

System will throw an error while transferring the stock or creating the STO , if the material is not extended to receiving plant

3.2 Extension to intra-company Plant

As per our organization structure We have two plants PA10 & PA20 assigned to PA10 company code as shown in below picture

First we will extend our material to PA20 plant which is assigned to same company code (PA10) as PA10 plant

To extend the material Start MM01

• Enter material as “66”
• Enter “Copy from.. Material as “66”

Press Enter

System will copy Material type and industry sector from master record as shown in the below screenshot

Select all the views

press enter and system will present source & destination organization levels as shown in the below screenshot

Fill the details as shown in the below screenshot

Note : Sales Organization PA10 serves for both the plants PA10 & PA20.

Please click HERE for details of assignment of plant to sales organizations.

Press enter and system will automatically select extendable screens one by one.

You will be presented “Classification” screen.

Since we have not configuration yet so just come out from this screen by pressing the “Next Screen” button.

You will be presented the “Sales : sales org. 1” screen

Enter Delivering Plant “PA20-PPIC Boston Part”

Press enter and you will be presented “Sales : sales org. 2” screen

We are not changing anything on the above screen so just press enter and system will present “Sales : General/Plant” screen

We are not changing anything on the above screen so just press enter and system will present “Intl Trade : Export” screen

We are not changing anything on the above screen so just press enter and system will present “Sales text” screen

We are not changing anything on the above screen so click on “Purchasing” screen

We are not changing anything on the above screen so just press enter and system will present “Intl Trade : Import” screen.

We are not changing anything on the above screen so just press enter and system will present “Purchase order text” screen

We are not changing anything on the “Purchase order text” screen, so click on “MRP 1” screen

We are not changing anything on the above screen so just press enter and system will present “MRP 2” screen

We are not changing anything on the above screen so just press enter and system will present “MRP 3” screen

We are not changing anything on the above screen so just press enter and system will present “MRP 4” screen

• We are not changing anything on the above screen so just press enter and system will present “Advance Planning” screen .
• We are not changing anything on the “Advance Planning” screen, so just press enter and system will present “Forecasting” screen

Enter Forecast Model as “N-No forecast/external model”

We are not changing anything on the above screen so just press enter and system will present “Plant data / Stor. 1” screen

We are not changing anything on the above screen so just press enter and system will present “Plant data / Stor. 2” screen

We are not changing anything on the above screen, so just press enter and system will present “Quality Management” screen

We are not changing anything on the “Quality Management” screen, so just press enter and system will present “Accounting 1” screen

In the above screen Price is showing as 15.69 USD per price for this material in PA10 Plant
Let,s assume that this material costs 20 USD in PA20 plant due to cost of living difference , overheads etc.

After changing the price, press enter and system will present “Accounting 2” screen

We are not changing anything on the “Accounting 2” screen, so just press enter and system will ask to save.

Material is now extended to PA20 Plant.

3.3 Extension to inter-company Plant

We have two companies PA10 & PP10 with plant assignment shown as below

Now we have extend our material to the PP10 plant which is assigned to the different company code PP10.

To extend the material Start MM01

• Enter material as “66”
• Enter “Copy from.. Material as “66”

Press Enter

System will copy Material type and industry sector from master record as shown in the below screenshot

Enter source and destination organization structures

You will be presented the “Sales : sales org. 1” screen

Enter Delivering Plant “PP10- PPELC Fremont Pl”

Also Electrical plant is tax exempt so select Tax classification as “0-Exempt”

Press enter and you will be presented “Sales : sales org. 2” screen

We are not changing anything on the “Sales : sales org. 2” screen so just press enter and system will present “Sales : General/Plant” screen

Change loading group to “PP10-Manual Load”

In the above screen Price is showing as 15.69 USD per price for this material in PA10 Plant
Let,s assume that this material costs 20 USD in PP10 plant due to cost of living difference , overheads etc.

After changing the price, press enter and system will present “Accounting 2” screen

We are not changing anything on the “Accounting 2” screen, so just press enter and system will ask to save.

Material is now extended to PP10 Plant.

4. Creating the material for S4 HANA EWM

We have seen the material creation for the S4 or ECC part in the above sections of the post.

Now we will create the material to use in EWM. We will review the material creation for both S4 HANA embedded as well as decentralized EWM on S4 HANA options

We will first review the difference between creation of material in embedded & decentralized EWM

--> Please note that in order to be able to distribute the delivery to the EWM system, the material given in Purchase Order/Inbound Delivery should be created for a storage location which is connected to a EWM warehouse. Check the below posts for detail

--> Configure SAP S4 HANA Material Management Organization Structure in 5 Minutes-Create Storage Location

--> Configure SAP S4 HANA Logistics Execution Organization Structure in 5 Minutes-Assign Warehouse Number


--> Storage location in the Purchase Order & subsequent to Inbound delivery flows from the "Storage Location for EP" field of "MRP2" view of the material master. Please check the detail HERE

4.1 Material Creation Difference-Embedded Vs Decentralized EWM

Before understanding the difference, we need to understand that whenever we create the material, it is first created in SCM (i.e., APO stack)

We can display the material in “/SAPAPO/MAT1”. Here all fields are replicated from S4/EWM and get overwritten with update in S4/EWM

Now once material is present in SCM/APO, we can then extend (create) this material for our Warehouse. We use “/SCWM/MAT1” for this

--> Creating the material in SCM/APO is like creating the material globally in EWM instance (logically in case of Embedded EWM & Separate sever in case of decentralized EWM).

--> Second level is to create/extend this material in our Warehouse. It is mandatory to have the material in SCM/APO (step above) to be able to create material for our Warehouse.

4.1 Creating Material for Embedded S4 HANA EWM

As explained above we will first create the material in SCM/APO.

We will create material “Battery “

4.1.1 Material Creation in SCM/APO

We create the material first same as we create in S4/ECC normally.

This material creation is already explained in the step 2, so we have created this material offline.

In case of Embedded EWM, as soon as we create this material in S4/ECC through MM01, it is available in SCM/APO

Run /SAPAPO/MAT1.

Input material number & choose “Global Data” radio button.

4.1.2 Material Creation in Warehouse

Since we have already fulfilled the prerequisite of material creation in warehouse (Material is present now in SCM/APO as shown in section 4.1.1), We can now create this material in our warehouse.

Run /SCWM/MAT1

Please check the below post for configuration of “Party Entitled to Dispose”

How to Integrate SAP EWM Warehouse in 7 Easy Steps

Give the required data in “warehouse data” & “ST. Type Data” view

input “Put away Control indicator” & “Removal Control Indicator”

in “ST.Type Data”, input Storage type & storage section indicator

4.2 Creating Material for Decentralized EWM on S4 HANA.

To create the material in decentralized EWM, we use ALE/IDOC technique.

--> Since decentralized EWM is a separate server so there is a sender system (S4 HANA) and a receiver system (EWM) involved in Creation of a Material for Decentralized EWM on S4 HANA.

--> Please note that SAP ERP/S4 is always the sender system, and decentralized EWM. is always the receiver system.

4.2.1 Material Creation in SCM/APO

As explained material needs to be created first at global level in SCM/APO of the decentralized EWM server.

This is done through ALE/IDOC.

We will review here the full process of material creation.

Note: We will not explain the process of ALE set up as nothing special in it. It is just a general ALE set up which is used normally in SAP

4.2.1.1 Creating Reduced Message Types in ERP System

We will see the reduced message type MATMAS in detail in a separate post.

5. Creating the material for Specific Business Process

If there is a specific business process needs to be determined for a material (specially in outbound/inbound delivery), then this is decided through field “Gen. item cat. grp” on “Sales: sales org 2” view of the material.

5.1 General Purpose Material

For a normal business process. the value of this field is given as “NORM” as used in the above section of the post.

5.2 Specific Purpose Material

When there is a special business process to be used, the value of the field “Gen. item cat. grp” is different.

For example

--> Some Example of "Gen. item cat. grp" value for specific business process

       NLAG --> "Non-stock material"
       ERLA -->	Structure/Mat. Above
       ERLB --> Structure/Mat. Above
       LEER -->	Empties
       LEIH	--> Returnable Packaging
       VERP--> Packaging

5.2.1 “Gen. item cat. grp” for Spare Parts Specific Business Purpose

We have used general item category for our material 700007106 which is specifically created as spare part for spare part specific purpose.

We used “YSPR” for this field for the spare parts

--> The above field is used to To determine different line item category "YSPR" for the spare parts materials from the the standard line item category "YELN", we have to input different "item category" in the material master of spare parts materials. Please check the below link to see this in detail

Configure SAP S4 HANA Sales Documents in 10 Minutes-Item Category Determination in Special Process Inbound Delivery

5.2.2 “Gen. item cat. grp” for Third Party Sales

We use Item category Group as “BANS” for the third party sales process. The rest of the material creation process will same as HAWA as given HERE

5.2.3 “Gen. item cat. grp” for Third Party Individual PO

We use Item category Group as “BANC” for the third party sales process. The rest of the material creation process will same as HAWA

5.2.4 “Gen. item cat. grp” for Third Party Subcontracting

We use Item category Group as “BADS” for the third party sales process. The rest of the material creation process will same as HAWA

6. Creation of Finished Goods for Production Order (FERT)

Here we will create a finished good material to use in our production order

Step 1

Go to MM01 and enter below on the Create Material (initial screen)

• Material Code – “Internally Generated”
• Material Type -FERT
• Industry Sector – M Mechanical Engineering

Press Enter

Step 2

Select the views to be created (Presented from the material type config OMS2). Enter organization structure in which material is to be created

• Plant -PA10 (PPIC Chicago Plant)
• Sales Org -PA10 (IC Car Sales Organization)
• Distribution Channel – PA (Car Dealer

Press Enter

Step 3

On “Basic Data 1” view

• Enter Description – “Finished Car Model D“
• Enter BUOM – EA
• Enter Division – PC (Petrol Car)
• Enter Material Group – PA10 (IC Car Parts Light)
• Gross Weight – 2000 KG
• Net Weight – 1900 KG

Step 4

On Sales : Sales Org. 1 view

• Enter Delivering Plant -PA10
• Enter Tax Classification -1 (Taxable)

Step 5

On Sales : Sales Org. 2 view

• Enter General Item Category – NORM
• Enter Item Category Group – NORM
• Acct Assmt Grp Mat. – PA (Products)

Step 6

On Sales : General/Plant view

• Enter Availability Check -KP (No Check)
• Enter Batch Management -Selected
• Enter Batch management(Plant) – Selected
• Enter Transportation Group – PA10 (Normal Transport)
• Enter Loading Group -PA10 (Manual Load)

Step 7

On MRP 2 view

• Enter “Prod. Stor. location -PP1B (This will be the production supply SLOC from where material for production will be supplied)
• Enter “Storage loc. for EP” as -PP1A -Std. SLOC, (This will be defaulted in PO and flows to the subsequent Inbound Delivery).
  
  Please note that if we want this material to be handled in EWM, then we need to select a Storage location, connected with EWM warehouse in the field “Storage loc. for EP”.

Step 8

On Plant Data / Stor. 1 view

Enter Storage Condition as P1 (IM Managed stock) – Based on this we can configure different picking SLOC , based on if SLOC is IM managed, WM managed or EWM

Step 9

Accounting 1 View

• Enter Valuation Class as 7920 -Finished Products
• ML Active checkbox – should be already selected and greyed out. (If this is not selected then stop here and check ML activation through below given link to the corresponding post).
• Enter price control “V”/”S” and price as 50000 USD.

7. Creation of SFG for Production Order (HALB)

Here we will create a semi-finished good (Assembly) material to use in our production order

Step 1

Go to MM01 and enter below on the Create Material (initial screen)

• Material Code – “Internally Generated”
• Material Type -HALB
• Industry Sector – M Mechanical Engineering

Press Enter

Step 2

Select the views to be created (Presented from the material type config OMS2). Enter organization structure in which material is to be created

• Plant -PA10 (PPIC Chicago Plant)
• Sales Org -PA10 (IC Car Sales Organization)
• Distribution Channel – PA (Car Dealer

Press Enter

Step 3

On “Basic Data 1” view

• Enter Description – “Chassis Model D“
• Enter BUOM – EA
• Enter Division – PC (Petrol Car)
• Enter Material Group – PA10 (IC Car Parts Light)
• Gross Weight – 600 KG
• Net Weight – 550 KG

Step 4

On Sales : Sales Org. 1 view

• Enter Delivering Plant -PA10
• Enter Tax Classification -0 (Exempt)

Step 5

On Sales : Sales Org. 2 view

• Enter General Item Category – NORM
• Enter Item Category Group – NORM
• Acct Assmt Grp Mat. – PA (Products)

Step 6

On Sales : General/Plant view

• Enter Availability Check -KP (No Check)
• Enter Batch Management -Selected
• Enter Batch management(Plant) – Selected
• Enter Transportation Group – PA10 (Normal Transport)
• Enter Loading Group -PA10 (Manual Load)

Step 7

On MRP 2 view

• Enter “Prod. Stor. location -PP1B (This will be the production supply SLOC from where material for production will be supplied)
• Enter “Storage loc. for EP” as -PP1A -Std. SLOC, (This will be defaulted in PO and flows to the subsequent Inbound Delivery).
  
  Please note that if we want this material to be handled in EWM, then we need to select a Storage location, connected with EWM warehouse in the field “Storage loc. for EP”.

Step 8

On Plant Data / Stor. 1 view

Enter Storage Condition as P1 (IM Managed stock) – Based on this we can configure different picking SLOC , based on if SLOC is IM managed, WM managed or EWM

Step 9

Accounting 1 View

• Enter Valuation Class as 7900 -Semi finished products
• ML Active checkbox – should be already selected and greyed out. (If this is not selected then stop here and check ML activation through below given link to the corresponding post).
• Enter price control “V”/”S” and price as 9999 USD.

8. Creation of Raw Material for Production Order (ROH)

Here we will create a RAW material (Component) to use in our production order

Step 1

Go to MM01 and enter below on the Create Material (initial screen)

• Material Code – “Internally Generated”
• Material Type -ROH
• Industry Sector – M Mechanical Engineering

Press Enter

Step 2

Select the views to be created (Presented from the material type config OMS2). Enter organization structure in which material is to be created

• Plant -PA10 (PPIC Chicago Plant)
• Sales Org -PA10 (IC Car Sales Organization)
• Distribution Channel – PA (Car Dealer

Press Enter

Step 3

On “Basic Data 1” view

• Enter Description – “Tail Lights“
• Enter BUOM – KG
• Enter Division – PC (Petrol Car)
• Enter Material Group – PA10 (IC Car Parts Light)
• Gross Weight – 5 KG
• Net Weight – 4 KG

Step 4

On Sales : Sales Org. 1 view

• Enter Delivering Plant -PA10
• Enter Tax Classification -1 (Taxable)

Step 5

On Sales : Sales Org. 2 view

• Enter General Item Category – NORM
• Enter Item Category Group – NORM
• Acct Assmt Grp Mat. – PA (Products)

Step 6

On Sales : General/Plant view

• Enter Availability Check -KP (No Check)
• Enter Batch Management -Selected
• Enter Batch management(Plant) – Selected
• Enter Transportation Group – PA10 (Normal Transport)
• Enter Loading Group -PA10 (Manual Load)

Step 7

On MRP 2 view

• Enter “Prod. Stor. location -PP1B (This will be the production supply SLOC from where material for production will be supplied)
• Enter “Storage loc. for EP” as -PP1A -Std. SLOC, (This will be defaulted in PO and flows to the subsequent Inbound Delivery).
  
  Please note that if we want this material to be handled in EWM, then we need to select a Storage location, connected with EWM warehouse in the field “Storage loc. for EP”.

Step 8

On Plant Data / Stor. 1 view

Enter Storage Condition as P1 (IM Managed stock) – Based on this we can configure different picking SLOC , based on if SLOC is IM managed, WM managed or EWM

Step 9

Accounting 1 View

• Enter Valuation Class as 3000 -RAW Products
• ML Active checkbox – should be already selected and greyed out. (If this is not selected then stop here and check ML activation through below given link to the corresponding post).
• Enter price control “V”/”S” and price as 50 USD.

Note:

Please see below post to check how the FG, SFG & Raw Material created above are used in the BOM and subsequently in the production order

How to Configure Base PP Cycle in 5 Minutes

We have created the below FG, SFG & Raw materials

Assembly (Semi Finished)-Chassis Model D (Material 500000023)

1. Component-Tail Lights (Material-500000007)
2. Component-Boot Insulation (Material-500000008)

Assembly (Semi Finished)-Car Boot Model D (Material 500000021)

1. Assembly (Semi Finished)-Chassis Model D (Material-500000023)
2. Component-Rear Tires (Material no.-500000018)

Finished Product (Car model D, Material-500000027)

1. Component-Electric Wires (Material-500000019)
2. Assembly (Semi Finished)-Car Boot Model D (Material-500000021)
3. Component-Petrol (Material-500000026)
4. Component-Engine Assembled (Material-500000009)

Now we will activate QM view for the component Tail lights.

9. Creation of QM view for QM-MM Interface

Since component Tail Lights (Material-500000007) is purchased from the vendor so we need to inspect it at the time of goods receipt

We need to assign inspection type “01” in material master QM view

Go to MM01 and enter material 500000007, select QM view and input plant PA10

As soon as we select the inspection type “01” in QM view of material master, the fields selected in the configuration will be activated by default

Please see the below post for detail

How to Configure & Test QM in Procurement-Define Default Values for Inspection Type

9.2 QM In Procurement Active Checkbox

If we set this indicator then “QM in procurement” is activated for all the plants pertaining to a client.

--> If we activate QM in procurement indicator in the material master record (Which is at the client level), we must also input "Quality Procurement Key" at the plant level for quality management in procurement.

9.2 QM Control Key

This key determines all the conditions which are valid for quality management in procurement.

To configure the QM procurement key , follow the below path

SPRO –> Quality Management –> QM in Logistics –> QM in Procurement –> Define Control Keys for QM in Procurement

We have configured the below key for our materials

The post 2 Minutes Guide to Create your First Material in S4 HANA appeared first on Ultimate SAP Guides | S4 HANA Logistics Modules.

In the world of SAP S/4HANA, the Material Ledger (ML) is no longer a luxury or an optional sub-module—it is a mandatory requirement for material valuation. While the “mandatory” label often causes concern for logistics and finance teams, activating ML doesn’t have to be a technical nightmare. When executed correctly, the Material Ledger serves as the backbone for multi-currency functionality and real-time inventory valuation across different accounting standards (like IFRS or Local GAAP).

The following guide provides a strategic roadmap to move your valuation areas from a “Red” status to a “Green” productive state, ensuring your financial data is accurate and compliant.

5 Easy Steps to Material Ledger Activation

Step 1: Assign Currency Types to Material Ledger Type (T-Code: OMX2)

To record inventory values across legal, group, and profit center valuations, you must configure the currency types associated with your Material Ledger. This allows for multi-currency reporting and valuation views that are critical for global enterprises

--> We have to configure & activate Material Ledger as it is mandatory in SAP s4 HANA

--> We want to configure & activate material Ledger with minimum possible configuration

--> So we will activate our Material Ledger with only 1 currency "Company Code currency" to keep it simple

Please follow the below path for this configuration.

Senior Consultant’s Tip: For your initial S/4HANA activation, using Material Ledger Type “9000” with only “Company Code currency” (10) is a Best Practice for Lean Implementations. This setup minimizes complexity by generating only one view in the material master, which is often sufficient for mid-sized organizations or those not yet utilizing complex parallel valuation.

Select material ledger type “9000” and click on “Define individual characteristics”

Step 2: Assign Material Ledger Type to Valuation Area (T-Code: OMX3)

This step acts as the mapping phase, where you tell the SAP system which specific plants (valuation areas) will track material costs under the rules defined in Step 1.

In this configuration, assign Material Ledger type “9000” to your valuation areas (e.g., PA10, PA20, and PP10).

Important Warning: After this assignment, you will notice the valuation area status is Red. Do not be alarmed; this is the expected status. It will remain red until you complete the Production Start-up in Step 4.

Please follow the below path for this configuration.

and assign our chosen material ledger type “9000” to all our valuation areas (PA10, PA20 & PP10)

Step 3: Activate Valuation Areas for Material Ledger (T-Code: OMX1)

Transaction OMX1 is the “On Switch” for the Material Ledger in your plants. Beyond just turning it on, this is where you define how the system determines material prices.

You must choose between two Price Determination levels:

1. Transaction-Based (2): Materials are valued at either moving average price (V) or standard price (S). Moving average price is calculated only for informational purposes.

2. Single/Multi-level (3): This is the prerequisite for Actual Costing. It calculates a periodic unit price for closed periods. Single-level rolls variances into ending inventory, while Multi-level rolls variances from lower-level components (Raw Materials) up to higher-level products (Finished Goods).

Strategic Directive: For your initial S/4HANA activation, I recommend Option 2 (Transaction-Based) to maintain a streamlined logistics profile. However, if your finance team requires the elimination of manual month-end variance allocations and needs true Actual Costing, Option 3 is the standard choice.

Please follow the below path for this configuration.

Select “ML Act.” check box and Price determination level as option 2 “Transaction-Based Price Determination”

Note

The value of price determination flows from this config to the material master as shown in the below screenshot.

Step 4: Production Start-up of Material Ledger (T-Code: CKMSTART)

This is the final execution step. Running CKMSTART converts your valuation areas into a productive state, allowing SAP to begin recording actual costs, multi-currency values, and parallel accounting.

Once you execute this for a specific plant (such as PA10), the system will trigger the “Plant is now productive” indicator. It is only at this point that the status in transaction OMX3 will finally turn from Red to Green.

Lets first activate this for our PA10 valuation Area (Plant)

All green log informing PA10 is now productive with Material Ledger.

Valuation area PA20 & PP10 is made productive with ML through similar way

Step 5: Troubleshooting Common Activation Errors

Technical hurdles are common during ML activation. Here is how to resolve the most frequent errors encountered in the field:

Error 1 -Company Code is not set up for Material Management (M3152)

When we tried PP10 to make productive with ML, below error message is encountered

To resolve this error , We need to set-up Company code PP10 for Material Management through T-code OMSY

Now PP10 is initiated for MM periods from the current month .

Please note we need to open posting period starting of every month through MMPV. This step was already done for PA10 company code hence no error for Plants PA10 & PA20

Now re-try to make PP10 plant productive with ML

PP10 plant is Successfully productive now

Error 2 -Material Ledger Currencies were changed (C+039)

How to resolve error C+039 ‘Material ledger currencies were changed’

To resolve this error run the transaction code CKM9 and check Company Code/Controlling area currency as per screenshot given below

This currency should be aligned with the currency in SCC4

Note : For Example

Company Code Currency : USD

Currency in SCC4 : EUR

in this case in OKKP, select group currency 30 and currency as EUR

Please note that these currencies selection should not be changed after ML activation (CKMSTART). If changed then Error Material Ledger Currencies were changed (C+039) will come. if this happens then revert to the original currencies selection after deactivation of ML>

Error 3- ML Active checkbox is not selected in Material Master Accounting View.

• To resolve this first deactivate the ML through running report SAPRCKMJX in SE38
• Now go to OMS2, select your material type and click on “Quantity/value updating”
• Now select the “Quantity updating” & “value updating” check box for your valuation area (plant) & save.
• Now Set the Plant production for ML again through t-code CKMSTART
• Check in MM03- ML active checkbox should be now selected.
  

Error 4- ML currencies are not integrated in FI for valuation area (Error FML_CUST033)

To resolve the error we will follow 3-Part Remedial Sequence

Phase 1 (Controlling Area Setup): 

To resolve this error, Configure the controlling area as given below for our Co-Area PPIN and linked it to Company codes. Please note that currencies should be aligned for material ledger & Controlling area

Phase 2 (Component Activation)

In SPRO (Maintain Controlling Area), ensure “CCtr Std. Hierarchy” is created. Set all components to “Not Active” to maintain a lean logistics scenario.

SPRO –> Controlling –> General Controlling –> Organization –> Maintain Controlling Area

“CCtr Std.Hierarchy” is mandatory. Just give name as “PPIN” and save.

System will prompt for creation of “PPIN” “CCtr Std.Hierarchy”. Click on “yes”

Click on “Activate components/control indicators”

Since our focus is not on controlling right now so choose all components as not active to have minimum restrictions/work in our logistics scenarios.

We have already assigned our company codes “PA10” & “PA20” to our controlling area “PPIN”

Now run the CKMSTART again for our valuation area and Error FML_CUST033 -ML currencies are not integrated in FI for valuation area should not come.

if you are still getting this error then we need to configure the company code currency

Phase 3 (Ledger Integration)

Use transaction SB22 to check for the presence of your company code. If missing, navigate to FINSC_LEDGER, select Ledger “0L,” and ensure the company code settings are fully maintained.

Check the presence of your company code in transaction SB22

If your company code is not present then run T-code “FINSC_LEDGER”

Select line with ledger “0L” and click on “Company code Settings for the Ledger”

Insert your company codes

Now this error will be 100% resolved.

Error 5- Error C+380 with CKMSTART

The error message C+380 happens if the plant has an inconsistent entry in table T001W.

Cause: Inconsistency in plant/valuation area assignment.

Resolution: Use T-Code OX18 to delete the plant-to-company code assignment, save, and then re-assign the plant.

Expert FAQ: High-Value Technical Queries

Video Tutorial

To get the most value from this topic, we recommend reading this full blog post along with watching the embedded YouTube video below.

The post provides structured insights and practical examples, while the video offers a visual walkthrough to reinforce key concepts. Together, they deliver a complete learning experience for SAP professionals.

Conclusion

Transitioning your valuation areas from Red to Green is more than just a configuration checkbox—it is a significant milestone for inventory transparency and financial accuracy. By following these five steps, you ensure that your S/4HANA system is architected for multi-currency reporting and advanced valuation requirements.

Are you ready to move beyond basic activation? Now that your Material Ledger is active, you can leverage Actual Costing for deep profitability analysis. To eliminate manual entry errors and speed up your deployment, I highly recommend using the Configuration Accelerator Workbooks for Efficiency

Note

Check Post FI Organization Structure in 5 Minutes to familiarize yourself with S4 HANA FI Organization Structure

Check Post SD Organization Structure in 5 Minutes to familiarize yourself with S4 HANA SD Organization Structure

Check Post MM Organization Structure in 5 Minutes to familiarize yourself with S4 HANA MM Organization Structure

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