Valuation grouping code (VGC)

Valuation grouping code is a key to differentiate account determinations with respect to valuation area.
Where we group together one or more valuation areas that have same account determination attributes

Say
Company Code: 2000
You have five valuation areas (plants): 2100, 2200, 2300, 2400, and 2500
As per business process requirement you need two types of account determinations with respect to valuation
area (VA).
2100 and 2200 share same account determinations wrt valuation area (VA).
2300, 2400 and 2500 share same account determination wrt valuation area (VA).
So your solution can be
Company Code VALUATION AREA (VA)
VALUATION GROUPING CODE
(VGC)
2000 2100 0001
2000 2200 0001
2000 2300 0002
2000 2400 0002
2000 2500 0002

This will help you to maintain account determinations for two account grouping codes rather to maintain five
account determinations to respective valuation areas (plants)
Hence 2 VGC is simpler and better than 5 VA,
obviously at the end of the day you may have 20+ valuation areas or so.


Or for your requirements as of all plants share same account determination attributes
Company Code VALUATION AREA (VA)
VALUATION GROUPING CODE
(VGC)
2000 2100 0001
2000 2200 0001
2000 2300 0001
2000 2400 0001
2000 2500 0001

Note: It is mandatory to maintain VGC. As VA cannot be assigned directly to account determinations.
Even if you have only one valuation area, it should be assigned to a VGC.