Split Valuation in Inventory Management 

Use
If a material is subject to split valuation, every quantity (sub-stock) of this material must be assigned to a
valuation type (for example, country of origin).

For every valuation type, there are two types of data in the system, as follows:

 Valuation data (for example, valuation price, total stock quantity, total stock value), which is
defined for every valuation type at valuation-area level and applies to all dependent storage
locations.
 Stock data, which, like batch data, is managed separately for each storage location. If a material
that is subject to split valuation is also subject to management in batches, its stock data is not
managed by valuation type, but rather by batch. Every batch is assigned to a valuation type.

The stock quantity, stock value, and valuation price for all valuation types are managed cumulatively at
valuation-area level.

Must the Valuation Type Exist Before the First Goods Receipt?

You can post the goods receipt of material of a certain valuation type only if the valuation data for this
valuation type already exists, because the system valuates the goods receipt at the price defined in the
valuation data. On the other hand, the stock data for the valuation type is created automatically during the
first goods receipt into the storage location, if this is defined in Customizing for Inventory Management.

Goods Movements with Materials Subject to Split Valuation

If you want to enter goods movements for materials subject to split valuation, you must enter the valuation
type in addition to the material number. Enter the valuation type in the Batch field.

How Split Valuation Is Controlled 

Use
Valuation is controlled by three factors:

 Valuation category

 Valuation type

 Valuation class

Valuation categories are set up in Customizing to determine whether split valuation of a particular article
is allowed for each valuation area (usually a store or distribution center). Each category can have one or
more valuation types assigned to it.

Valuation category R, for example, enables split valuation to occur automatically for two types of stock:
promotion stock and normal stock. Valuation of an article occurs at the type level.
For a given article, you assign a valuation category and valuation class in the article master record for
each store that stocks that article. The valuation category determines which valuation types are valid for
that article in that store; for example, for category R, the only valid types are promotion stock and normal
stock. The valuation class (defined in Customizing) determines the General Ledger account for the article.

Click here for an example of how valuation categories and types can be used.

Stocks Subject to Split Valuation 

The stocks of a material subject to split valuation are managed separately for each valuation type. They
are cumulated in the valuation header record: This is where all the individual stock quantities and stock
values are added together and managed. A moving average price is calculated from the values of the
various valuation types and the stock quantities.

The following graphic shows an example of split valuation:

Material 1 is managed separately according to origin (valuation category H). The valuation types Italy and
France have stocks. The fact that these stocks are in different storage locations is not important for
valuation.

In the valuation header record, the separate stocks are cumulated:

 The total stock in the plant is 100.

 The moving average price is calculated from valuation of the individual stocks:
 Average price = total value / total quantity

Value Italy: 40 x 4.00 = 160.00

Value France: 60 x 6.00 = 360.00

Total value: = 520.00

Average price: 520.00 / 100 = 5.20

Split Valuation for existing materials     Reply

Posted: May 5, 2010 12:09 PM

Dear Friends,
I would like to active the split valuation for materials which are already created and are having stock.
when i try to change the valuation category in the accounting view to X, it display errors that stock exist,
i have already removed the stock from the plant but still error comes can anyone tell me how can i
activate the split valuation for existing materials.....

Thanks in advance

Jeyakanthan Re: Split Valuation for existing materials     Reply

A 
Posted: May 5, 2010 12:20 PM   in response to:
Husain Husain
Posts: 8,984
Registered: 11/2/06
Answered in this link http://forums.sdn.sap.com/thread.jspa?
Forum Points: 16,184
messageID=8475763#8475763
 

sandeep13 Re: Split Valuation for existing materials   Reply

Posts: 551
Registered: 9/29/09
Forum Points: 1,336
Posted: May 5, 2010 12:21 PM   in response to:
Husain Husain
Hi
You need to remove stock from previous period aswell

1.Using MB1C 561 Post the same quantity to current period as that in
previos period so that previous period stock and current period stock
are identical.
2. Using MB1C 562 perform a posting in previous period

Regards
 Sandeep
Husain Re: Split Valuation for existing materials   Reply
Husain
Posted: May 6, 2010 11:48 AM   in response to:
sandeep13
Posts: 21
Registered: 2/13/09
i already removed the stock in the last period only . the error is showing batch
Forum Points: 26 still exist. not stock .

Husain Re: Split Valuation for existing materials   Reply

Husain
Posted: May 6, 2010 11:49 AM   in response to:
Jeyakanthan A
Posts: 21
Registered: 2/13/09
my question is the same dear, there is no stock no open po still its showing
Forum Points: 26 batch exist and not able to activate the valuation type.

Jeyakanthan Re: Split Valuation for existing materials     Reply

A 
Posted: May 6, 2010 12:17 PM   in response to:
Husain Husain
Posts: 8,984
Registered: 11/2/06
See this link http://forums.sdn.sap.com/thread.jspa?
Forum Points: 16,184
messageID=7359271#7359271
 

Husain Re: Split Valuation for existing materials   Reply

Husain
Posted: May 10, 2010 6:44 AM   in response to:
Jeyakanthan A
Posts: 21
Registered: 2/13/09
hi friends. i got replies from all you friends indicating that the batch need to be
Forum Points: 26 archived, but as soon as i try to archive the batches the errors are coming the
stock exist. i hvae already marked the batch for deletion. and also i have
  mentioned that i have removed the stock in the last period,but still i m getting
errors.

can anyone highlight where i m missing something

Jeyakanthan Re: Split Valuation for existing materials   Reply

A 
Posted: May 10, 2010 7:53 AM   in response to:
Husain Husain
Posts: 8,984
Registered: 11/2/06
Search for sap notes in service market place,Raise support ticke to SAP if it is
Forum Points: 16,184 business critical issue

Dear Experts,

i am trying to change the valuation category of an existing material (from normal to split valuated) but
system is showing error messages of "Physical inventory running" for the plant and storage location,
whereas no inventory document is active.

please suggest.

Regards,

Pawan

Antony Re: Problem in split valuation of existing   Reply

James material  
Posted: Feb 11, 2010 6:39 AM   in response to:
Vi...
Pawan khurana

Posts: 1,407 Hi
Registered: 4/13/09 In MM03 for that material check for storage location stock view. In that you
Forum Points: 3,762 see a field Phys.inv.block. If it is X or A, system will not allow you to do any
transaction. You need to complete physical inventory process.
 
Regards
Antony

Hi all,

why split valuation is only used along with the moving average price? why standard price is not used ?
reasons?

Plz clarify on this.

Vel
Mangalraj.S Re: why split valuation is only used   Reply
along with the moving average price?  
Posted: May 26, 2011 5:38 PM   in response to:
vels135
Posts: 5,262
Registered: 5/8/07 Dear Vels,
Forum Points: 13,152 I dont know whether this will completely answer your query but still check,

  Normally if a material can be procured from 2 different sources or if a material

can be produced in-house as well as procured

externally then it has to be split valuated as the price does not remain same.

If it's produced in-house with a price X,then in the case of external

procurement it may be some Y.

If it has to be priced using standard price then the cost should remain same
which may not be possible,so in my understanding

it is possible thorugh moving average price and not by standard price.

Also check this link to understand more,

http://www.sap-img.com/mm025.htm

Regards
Mangalraj.S

Dogboy49 Re: why split valuation is only used along   Reply

with the moving average price?  
Posted: May 26, 2011 8:18 PM   in response to:
vels135
Posts: 3,115
Registered: 8/24/06 Vel,
Forum Points: 7,802 Well, you can use standard price - of each individual Valuation TYPE. The price
of the overall Material/Valuation Area must be set as Moving average, since the
  overall material price (and material value) at this level is dependent upon the
amount and price of each of the individual Valuation Types that have been
processed. As product moves in and out of stock, the overall average price of the
material will change - by definition.

You can fill the Standard Price field if you wish, to use as a reference number, but
the system will generally ignore this value.

Best Regards,
DB49

anupam Re: why split valuation is only used along   Reply

sharma with the moving average price?  
Posted: May 27, 2011 8:01 AM   in response to:
vels135

Posts: 1,070 HI
Registered: 12/6/07
Forum Points: 1,834
Check these links:

  http://help.sap.com/saphelp_46c/helpdata/en/47/61017149f011d1894c0000
e829fbbd/content.htm
http://forums.sdn.sap.com/thread.jspa?threadID=943054

Regards
Anupam Sharma

vels135 Re: why split valuation is only used   Reply

along with the moving average price?  
Posted: May 27, 2011 5:04 PM   in response to:
Posts: 6
anupam sharma
Registered: 1/28/11
Forum Points: 0 Thanks for all