Split Valuation: Contributed by Prabhakant Tiwari Under The Guidance of SAP GURU INDIA

SAP GURU
SPLIT VALUATION
Contributed By
Prabhakant Tiwari
Under the Guidance of SAP GURU INDIA
Split Valuation:
Split valuation helps in valuating the stocks of a material in the same valuation
area (company or plant) differently. Some of the examples where split
valuation is required are as follows
Example:
• Stock that is procured externally from a vendor has a different valuation

price than the stock of in-house production.
• Stock obtained from one vendor is valuated at a different price than the
stock obtained from another vendor.
• Same material having different batches may have different valuation
prices.
• Export and import of material have different valuation
We can valuate the materials at different levels which are:-

1 – Company Level
2 – Plant Level
CLIENT
COMPANY 01 COMPANY 02
PLANT 01 PLANT 03 PLANT 03
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1 – Company Code level – If we set the valuation at the company code level
then the price for all the plants will remain the same.
2 – Plant Level – If we customize the valuation at the plant level then the
plant will have its value.
COMPANY 0612
PLANT CINO C2AL
VAL. At CO. Code 150/- EA 150/- EA
VAL. AT PLANT 130 /- EA 145/- EA
Note: Ideally valuation is customizing on plant level because valuation also

depends on location, transportation, etc.
Use of Split Valuation:

For certain materials, it is necessary to evaluate the various stocks in a
particular valuation area separately. Reasons for this include:
• Different origins of the material
• Different grades of quality for the material
• Different statuses for the material
• Differentiation between in-house production and external
procurement
• Differentiation between different deliveries, E.g. Same material
with different vendors
Features of Split Valuation:

If a material is subject to split valuation, the material is managed as several
partial stocks; each partial stock is valuated separately.
Whether the material is subject to the split valuation on the accounting view
of the material master record. There are two fields for this:
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• The valuation category specifies which criterion should be used as the
basis for differentiating between the various partial stocks.
• The valuation type specifies an individual characteristic of a partial
stock.
Before doing configuration we have to understand about below topics:
Valuation Category:
The VALUATION CATEGORY specifies which criterion should be used as the
basis for differentiating between the various partial stocks.
Exp: Quality / Internal Procurement / External Procurement
Valuation Class:
In simple words, we can say that the VALUATION CLASS is deeply about the
VALUATION CATEGORY
Quality Procurement Origin

Type
Valuation Q P O
Category
Valuation A B C In House Out Source Origin -1 Origin -2

Type House
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Configuration of split Valuation:
We have to follow bellow given path for configuration of SPLIT VALUATION
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1 – Activate Split Valuation:
SAP MENU PATH – SPRO – IMG – Material Master – Valuation & Account
Assignment – Split Valuation – Active Split Valuation
Make sure that SPLIT VALUATION is active in the configuration path
Note: One we make SPLIT VALUATION ACTIVE then can't make it UNDO
Exercise: For understanding the concept we will create a Valuation type for
In-house & Outsourced Material and define a new valuation category. Also, we
will procure both materials and observe the status.
A – Configure Split Valuation for PROCUREMENT TYPE valuation

category:
T-Code- OMWC
SAP MENU PATH - SPRO – IMG – Material Master – Valuation & Account
Assignment – Split Valuation – Configure Split Valuation
Step I > Create Globe Type (Valuation Type)
Click on Global Type
Now we will create global types followed by global category
Click on Create
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Here we create two valuation types for material

A: In House Procurement CCP-IN
B: Outsource Procurement CCP-OUT
Step II > Create Global Categories:

T-Code – OMWC
Click on Global
Categories
Click on CREATE
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Here we assign valuation Type CCP-IN & CCP-OUT to valuation categories S.
As you can saw in the below-given screenshot.
Now come back
Click on Types -
>Cat.
Here we create a link with GLOBAL TYPE & GLOBAL CATEGORIES
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Status remain ACTIVE by default
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Now came back on HOME SCREEN
Step III > Create Local Definition:
Click on Local Definition
Now click on PLANT for which we configure SPLIT

VALUATION and then click on Cats.->OU to
Activate global category
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Step IV> Activate Valuation Categories (same as Global) to Local

Definition for Plant.
Select STATUS of relative VALUATIN

CATEGORY and click on ACTIVATE.
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From the above data, we will get the flow chart for Procurement Type as
Procurement
Type
Valuation
Category S
Valuation In House Out Source

Type
CCP-IN CCP-OUT
When we will create a PARENT MATERIAL with CHILD MATERIAL to run

SPLIT VALUATION this assignment will REFLECT which we maintain in
configuration.
VALUATION CCP-IN CCP-OUT

TYPE
ASSIGN
VALUATION
CATEGORY
S
ASSIGN
PLANT CINO
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SAP GURU
First, we create a PARENT MATERIAL & for VALUATION CATEGORY and
mention in Accounting 1 view.
Note: Price control should be always MOVEABLE (V) for parent material.
Only one valuation category is

shown here because plant
C1NO is assigned to valuation
category” S”
Note: Always maintain VALUATION CATEGORY in the parent material.

Extend the same material into different Valuation types.
T-Code – MM01
After creating the parent material we will extend the material as a child into
different valuation types which option appears in starting as shown below.
Only two valuation types are here in drop down

because these two valuation types are assigned
with VALUATION CATEGORY in configuration.
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You can see here two

valuations because we
maintain ACR for Sami
finished in Configuration.
Price controls will

always STANDARD for
INHOUSE MATERIAL
As we see in the above figure while extending the material we can have
material with different valuation types. So we will extend the material for both
valuation types CCP_IN & CCP_OUT
Note: For OUTSOURCE price control should be always MOVEABLE
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GOOD RECEIVE THROUGH OUTSOURCE
PURCHASE ORDER BY T-CODE ME21N
Create Purchase Order w.r.t to material which is maintained for SPLIT
VALUATION by using T-Code – ME21N
Material which is maintained for

SPLIT VALUATION.
Here under DELIVERY TAB ON ITEM

LEVEL we can select any one calculation
type as per requirement. Symbol ‘X’
means if there are many valuation types
then we have to select only those
VALUATION TYPE which has ‘X’ symbol.
GOODS RECEIPT BY T-CODE - MIGO
Here we can see SAME VALUATION

TYPE in the material view which we
select in the PURCHASE ORDER
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CHECK STOCK BY T-CODE - MMBE

Here we can see the stock of material from OUTSOURCING procurement.
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GOOD RECEIVE INTERNAL

The in-house stock increased by PRODUCTION ORDER but here we have
shown it for understanding purpose.
T-CODE- MIGO
MOVEMENT TYPE –
561 is used for initial
entery of stock
VALUATION TYPE
Then CHECK & POST it.
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CHECK STOCK BY for INTERNAL STOCK.
T-CODE – MMBE
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BY PRODUCCTION ORDER
PREREQUISITE:
Before make PRODUCTION ORDER we have to maintain some MATERIAL
MASTER VIEWS which are:
• MRP
• ACCOUNTING ASSIGNMENT
• WORK SCHEDULING
• COSTING DATA
PRODUCTION ORDER BY T-CODE- CO01
Enter MATERIAL NUMBER,

PRODUCTION PLANT &
ORDER TYPE
Enter the REQUIREDD QTY
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SAP GURU
GOOD RECEIPT BY T- CODE - MIGO
CHECK STOCK BY T-CODE - MMBE
As you can see here the stock against CCP-IN valuation type is 161.
From Inventory Management – 16
From production Order - 145
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B – Configure Split Valuation for ORIGIN TYPE valuation category:
Example - For understanding the concept we will create a VALUATION TYPE

for LAND-1 & LAND-2 ORIGIN and define a new ORIGIN VALUATION
CATEGORY. Also, we will procure both materials and observe the status.
SAP MENU PATH - SPRO – IMG – Material Master – Valuation & Account
Assignment – Split Valuation – Configure Split Valuation
T-Code- OMWC
Step I > Create Global Type
Note: In origin procurement, we have to allow ONLY EXTERNAL PO NOT

INTERNAL PO
Step I > Create Global Category
Now ASSIGN, VALUATION TYPE to VALUATION CATEGORY
Now ASSIGN, VALUATION CATEGORY to PLANT
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SAP GURU
From the above data, we will get the flow chart for Procurement Type as
ORIGIN
Valuation
Category O
Valuation Origin -1 Origin -2

Type
LAND-1 LAND-2
When we will create a PARENT MATERIAL with CHILD MATERIAL to run

SPLIT VALUATION this assignment will REFLECT which we maintain in
configuration.
VALUATION LAND-1 LAND-2

TYPE
ASSIGN
VALUATION
CATEGORY
O
ASSIGN
PLANT CINO
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SAP GURU
First, we create a PARENT MATERIAL & for ORIGIN TYPE VALUATION
CATEGORY w.r.t to PLANT and mention in Accounting 1 view.
T-Code – MM01
Extend the material on VALUATION TYPE by T-CODE- MM01
As above we can also create the same material for VALUATION TYPE LAND-2
After that follow P2P cycle you can find the stock for LAND-1 & LAND-2 in
T-CODE MIGO.
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© Copyright SAP GURU INDIA
The copyright in this work is vested in SAP GURU INDIA.
Please note and abide by copyright laws. This presentation is for educational
Purposes only, all logos, photos, and information, etc used in this
Presentation is the property of SAP GURU INDIA.
SAP is a registered trademark of SAP AG in Germany and many other

countries. We are NOT associated with SAP.
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• Stock that is procured externally from a vendor has a different valuation

We can valuate the materials at different levels which are:-

PLANT 01 PLANT 03 PLANT 03

PLANT CINO C2AL

VAL. At CO. Code 150/- EA 150/- EA

VAL. AT PLANT 130 /- EA 145/- EA

Note: Ideally valuation is customizing on plant level because valuation also

Use of Split Valuation:

Features of Split Valuation:

Before doing configuration we have to understand about below topics:

Exp: Quality / Internal Procurement / External Procurement

Quality Procurement Origin

Valuation A B C In House Out Source Origin -1 Origin -2

Make sure that SPLIT VALUATION is active in the configuration path

A – Configure Split Valuation for PROCUREMENT TYPE valuation

Click on Global Type

Now we will create global types followed by global category

Here we create two valuation types for material

B: Outsource Procurement CCP-OUT

Step II > Create Global Categories:

As you can saw in the below-given screenshot.

Now come back

Here we create a link with GLOBAL TYPE & GLOBAL CATEGORIES

Status remain ACTIVE by default

Step III > Create Local Definition:

Click on Local Definition

Now click on PLANT for which we configure SPLIT

Step IV> Activate Valuation Categories (same as Global) to Local

Select STATUS of relative VALUATIN

Valuation In House Out Source

When we will create a PARENT MATERIAL with CHILD MATERIAL to run

VALUATION CCP-IN CCP-OUT

Only one valuation category is

Note: Always maintain VALUATION CATEGORY in the parent material.

Only two valuation types are here in drop down

You can see here two

Price controls will

Note: For OUTSOURCE price control should be always MOVEABLE

Material which is maintained for

Here under DELIVERY TAB ON ITEM

GOODS RECEIPT BY T-CODE - MIGO

Here we can see SAME VALUATION

CHECK STOCK BY T-CODE - MMBE

GOOD RECEIVE INTERNAL

Then CHECK & POST it.

PRODUCTION ORDER BY T-CODE- CO01

Enter MATERIAL NUMBER,

Enter the REQUIREDD QTY

CHECK STOCK BY T-CODE - MMBE

Example - For understanding the concept we will create a VALUATION TYPE

Step I > Create Global Type

Note: In origin procurement, we have to allow ONLY EXTERNAL PO NOT

Step I > Create Global Category

Now ASSIGN, VALUATION TYPE to VALUATION CATEGORY

Now ASSIGN, VALUATION CATEGORY to PLANT

Valuation Origin -1 Origin -2

When we will create a PARENT MATERIAL with CHILD MATERIAL to run

VALUATION LAND-1 LAND-2

Extend the material on VALUATION TYPE by T-CODE- MM01

© Copyright SAP GURU INDIA

The copyright in this work is vested in SAP GURU INDIA.

Presentation is the property of SAP GURU INDIA.