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Split Valuation - Split valuation enables you to valuate the substocks (part of the total stock) of a material in different ways.
A number of reasons might justify valuating substocks separately, such as:
• The material has different origins (i.e., comes from different countries).
• The material is acquired via different types of procurement (i.e., external procurement versus internal procurement).
• The material has different categories of quality (i.e., damaged, poor quality, or good quality).
• Same material having different batch may have different valuation prices
Split valuation is used only with the moving average price control, and materials subjected to split valuation can be valuated only via the moving average price
method.
valuation category : - The valuation category indicates whether a material’s stock should be valuated as one unit or in parts. This category also a key that
indicates the criteria for defining partial stock and determines which valuation type is allowed
A valuation type :- A valuation type is a key that identifies split-valuated stocks of a material and indicates the characteristic of a partial stock. The valuation
category is assigned in the material master record, and the valuation type is selected during material transactions, such as goods issues and goods receipts.
Example 1:
You procure a material both from in-house production and from external vendors. You want to valuate the stocks from each source separately. In this case, you
select Procurement type as the valuation category ( B ) and Internal and External as valuation types.
Example 2:
You procure a material from several countries. You want to valuate the stocks from each country separately. In this case, you select Origin as the valuation
category ( H ). As valuation types, you define the relevant countries, for example, Italy and France .
Example 3:
You procure a material in different grades. You want to valuate the stocks of each class separately. In this case, you select Quality as the valuation category ( Q
). As valuation types, you could define A , B , C , and D .
Configuration Steps –
Menu path
To activate split valuation, follow the menu path SPRO -Material Management – Valuation and Account Assignment - Split Valuation -Activate Split Valuation.
Allowing split valuation doesn’t mean that you must only valuate the material on a split valuation basis. Split valuation is used only when the valuation category
is assigned in a material master record.
click the Account Cat. Ref. button so that the screen On this screen, the account
reference (ARef) shows that
Repeat the same assignment steps for Grade B and for Grade C. Once
completed,
you’ll see that all three valuation types—Grade A, Grade B, and Grade C—
have the account reference (ARef) 0001 and appear on the screen Save your
entries and go back.
Creating Global Categories T – code OMWC
You can define the following attributes for a
valuation category
In the next step, you must activate valuation types for the
valuation category by
clicking on Types -> Cat.,
Global Valuation Categories
The valuation types GRADE A, GRADE B, and GRADE C are assigned to the
Valuation Cat. G (Steel Grades) by clicking on Activate button located at the bottom of the screen
Next, click on the Cat. -> OUs button
The option to restrict or limit the valuation category and valuation
types assignment to specific valuation area(s) or plant(s). Choose Plant 1000 followed
by clicking on the Cat. -> OUs button,
Goods Receipt of
Two Materials with
Different Valuation
Types
Reports of Split-Valuated Materials
You can view the valuation price in the material master Accounting 1 tab via Transaction MM03, which will show you the valuation
price at the plant level, as shown in
The stock quantity is the sum of all the quantities of various valuation types (steel grades in this case). The moving price denotes
the moving average price of material of various valuation types.
The valuation price for each valuation types is also different in these cases. Material Masters of Both Valuation Types
Transaction MMBE and enter the material
10000084 and plant 1000. You’ll see the current stock of split-valuated material 10000084 by their
respective grades.
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