What is a Material Ledger?

A Material Ledger is nothing but a tool for inventory accounting that provides new methods for price control for material valuation (you can store the material inventory values in more than one currency). It makes it possible to keep the material price constant over a period of time (say, over the life of a production order). The moving average price field is used to store a periodic price. This periodic price stays constant and is the price used for valuation until you close the material ledger. At closing, the periodic price is updated based on the actual value of invoice receipts received for that material during the period.