On-hand inventory at landed cost in S/4HANA Cloud. The working-capital line on the balance sheet.
At a glance
On-hand inventory at standard or moving-average price in S/4HANA Cloud, valued via the Material Master price control field (MARC.VPRSV). The working-capital line on the balance sheet, sourced from the Universal Journal stock postings. Sums valuated stock across all storage locations and plants, multiplied by current valuation price.
| What it counts | SUM(MARD.LABST × MBEW.STPRS) for materials with price control S (standard price) plus SUM(MARD.LABST × MBEW.VERPR) for materials with price control V (moving average price). MARD = stock per material per storage location; MBEW = material valuation. The card sums valuated stock only (excludes consignment, returns blocked stock, in-transit unless owned). Reconciles to GL inventory accounts (typically 130xxx range) on the balance sheet. |
| Tax treatment | n/a, this is a balance sheet inventory figure not a sales figure. |
| Shipping | Inbound freight is included if the procurement-condition cost (FRA1, FRB1) is set up as a delivery cost that loads onto the material’s moving-average price. Most enterprise SAP setups configure this. |
| Discounts | Procurement discounts (RA00, RB00) net into moving-average price at goods receipt. |
| Refunds | n/a. |
| Cancelled / voided orders | n/a. |
| Currency | Group Currency for consolidated views; Company Code currency for single-CC views. SAP stores material valuation in CC currency natively (MBEW) and Group Currency variant (MBEWH historical). |
| Channels / sources | All plants visible to the connected role. Excluded by default: consignment stock owned by suppliers (W type), return-blocked stock (R type), restricted stock (Z type). Configurable per merchant. |
| Valuation method | Standard price (S) or moving average (V), per material. Stock-in-transit valued if owned (FOB-origin shipments). |
| Time window | RT (real-time snapshot from MBEW + MARD) |
| Alert trigger | None by default; pair with Inventory Aging and Dead Stock Value for actionable subsets. |
| Roles | owner, finance, operations |
Calculation
Calculated automatically from your SAP data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.Worked example
A US enterprise B2B distributor on S/4HANA Cloud with 4 plants across 3 Company Codes. Snapshot 03 May 26.| Plant | Company Code | Material count | Valuated stock value (USD, Group Currency) |
|---|---|---|---|
| 1010 (US East DC) | 1000 US Inc | 8,420 | $24,180,000 |
| 1020 (US West DC) | 1000 US Inc | 7,840 | $19,640,000 |
| 2010 (CA Toronto) | 2000 CA Ltd | 4,180 | $8,420,000 |
| 3010 (MX Monterrey) | 3000 MX SA | 3,940 | $5,180,000 |
| Total Inventory Value (this card) | 24,380 | $57,420,000 |
- $57.4M of inventory at landed cost is the balance-sheet asset figure. Reconciles to the GL inventory accounts (130xxx range) on the trial balance to within rounding.
- Plant 1010 (US East DC) holds 42% of the value. Concentration is normal for a distribution model with regional fulfilment, but means a single warehouse outage hits 42% of revenue capacity.
- Pair this card with Inventory Aging and Dead Stock Value. Of 5.2M aged, $1.8M dead.
- Inventory turnover = Annual COGS / average inventory. With 57M average inventory, turnover is 3.3x (about 110 days of inventory on hand). Industry benchmark for B2B distribution: 4 to 6x. The merchant carries more inventory than peers, likely due to product diversity or service-level commitments.
- Multi-Company-Code Group Reporting view. SAP’s Universal Journal stores valuation in both CC currency and Group Currency. The card pivots cleanly between consolidated USD ($57.4M) and per-CC native (Toronto plant in CAD, Monterrey in MXN). FX revaluation of Group Currency runs at month-end via Foreign Currency Valuation Fiori app.
Sibling cards merchants should reference together
| Card | Why pair it with Total Inventory Value |
|---|---|
| Inventory Aging | The bucketed-by-age view of this same total. Aged stock is illiquid working capital. |
| Dead Stock Value | The zero-velocity write-down candidate within the total. |
| Inventory Turnover Ratio | How fast this total is converting to sales. |
| Inventory Carrying Cost | The annual cost of holding this total (storage, insurance, capital). |
| Top SKUs by Inventory Value | Concentration: which materials dominate the total. |
| Average Landed Cost per Unit | Cost-side trend that can move this total without volume change. |
| Landed Cost Variance vs Standard | Variance signals a moving-average vs standard-price gap. |
Reconciling against the vendor’s own dashboard
Where to look in S/4HANA Cloud:Material Inventory Values, Stock Overview Fiori app Stock Overview transaction MMBE (per material) / MB52 (multi-material list) Trial Balance Fiori app filtered to inventory account hierarchy node Embedded Analytics: CDS viewDirect deep-link:I_MaterialStockandI_MaterialValuation
https://my{tenant}.s4hana.cloud.sap/sap/bc/ui2/flp#MaterialInventoryValues-display
Why our number may legitimately differ from MB52 / Trial Balance:
| Reason | Direction | Why |
|---|---|---|
| Stock type filter | Either | Card excludes consignment, blocked, restricted by default. MB52 may include them. Align via filter. |
| Plant scope | Either | Card respects dashboard CC scope; MB52 typically shows all authorised plants. |
| Valuation snapshot timing | Small | Card refreshes every 15 minutes; MB52 is real-time. |
| Standard vs moving average | None | Card uses each material’s price control (S or V); same as SAP’s standard valuation. |
| In-transit valuation | Either | Owned in-transit (FOB origin) included; non-owned (FOB destination) excluded. Configurable. |
| Card | Direction | Notes |
|---|---|---|
| Inventory Sync Drift | Indirect | The unit-level drift between SAP and commerce platforms is the operational risk on this balance-sheet figure. |
| Commerce-platform inventory cards (Shopify, BigCommerce, Adobe Commerce) | n/a | Commerce platforms typically display unit count, not value. SAP is the financial valuation source of truth. |
Known limitations / merchant FAQs
Why is the card lower than my Trial Balance inventory account? Most often: blocked / restricted / consignment stock is in the GL account but excluded from the card by default. Toggle in the field map. Standard price (S) vs moving average (V), which does the card use? Each material’s own price control. SAP allows materials to mix S and V across the chart. The card respects each material’s setting; it does not force one method. FX revaluation and Group Currency, when does the card update? Group Currency stock value updates with each material posting (goods receipt, goods issue, transfer, revaluation). End-of-period FX revaluation runs (Foreign Currency Valuation Fiori app) update parallel-currency balances; the card picks up the new values within 15 minutes of the run. Consignment stock, owned by us or by suppliers? Consignment-from-supplier (W type, vendor-owned) is excluded; consignment-to-customer (where we still own it but it is at the customer’s site) is included. In-transit stock, included? If we own it (FOB origin), yes. If the supplier owns it until delivery (FOB destination), no. SAP S/4HANA on-premise vs Cloud, does the card behave differently? Same data structure (MARD, MBEW, Universal Journal stock postings). Connector path differs slightly; both are supported.
Material Ledger (CKM3N) vs basic valuation, which does the card show?
If your tenant has Actual Costing / Material Ledger active, the card uses periodic actual cost when available; otherwise standard or moving-average price. Configurable via field map.
T-codes for drilling in?
MMBE / MB52 (stock overview), CKM3N (material price analysis), MR21 (price change), MI31 (physical inventory).
What does this number mean for the bank lender?
It is the inventory line on the balance sheet. Inventory-backed lending facilities (revolving credit lines, asset-based lending) typically advance 50 to 70% of inventory value. So 28 to $40M of borrowing capacity, depending on the lender’s haircut.