Executive Summary: From the time of Luca Pacioli, the father of accounting, till today, inventory valuation has been a point of debate. In countries ith stable inflation rate it is considered fine to have inventory valuated at standard cost. In such countries material inventory values are normally carried by the S!P system in one currency ith ramaterials valuated at moving average price and semi"finished and finished goods valuated at standard price. In countries here currency is not stable and inflation rates are high it is pertinent to have inventoried valuated at actual costs. In such countries it might also be re#uired to record inventory valuation in more than one currency, usually a local currency and another more stable reporting currency li$e the %S& to indicate the inflationary impact on th e in ve nt or y va lu es. S!P suppor ts this re#uir emen t of shoing inve nt or y va luat ion in mult iple currencies at actual cost using the functi ona lit y of mat eri al le dge r and act ual cos tin g. 'hi s hi tepaperprovides an overvieof material ledger, actual costing, its setup in S!P and some $non issues based on real life pro(ect experiences. Introduction: )aterial Ledger and actual *osting in S!P )aterial Ledger in S!P essentially is a line item ise record shoing changes in stoc$ and prices ith each material movement in up to three currencies. )aterial records pertaining to opening stoc$, goods receipt, invoice receipt, debits, credits etc get logged in the ledger along ith the price and exchange rate differences throughout the month. 'he currency translations for the three currencies happen at historical exchange rates available at the time of posting. 'his ledger ith a complete record ofeach single transaction of the material forms the basis to calculate actual cost for the material at period end. 'he actual price thus calculated in S!P is ca lled the pe ri odic unit pr ice and can be used to reva luate
