Split Valuation SAP valuation area is the organizational level at which materials are valuated such as at the plant ‘or company code level When the valuation area is at the plant level, you can valuate a material in different plants at different prices. When the valuation is at the company code level, the valuation price of a material is the same in all of the plants of the company code. ‘You can define valuation area by following path Enterprise Structure - Definition -- Logistic General --Define Valuation Level ‘Once you've defined the valuation area, itis very difficult to change it afterwards because this is the fundamental setting. Material valuation is carried out according to the price controls set in the SAP system. Based on the business scenarios, we can set the valuation method as moving average price (price control V moving average price is a weighted average price itis calculated as Moving average price = Total stock value / Total stock quantity) or standard price (price control S: A standard price is a fixed price defined in the material master record). Configuration of theses valuation is done in Logistic General -- Material Master ~ Basic Settings -- Material Types -- Define attributes of material types Split Valuation: + Split valuation helps in valuating sub stocks of material in different way here sub stock means part of the total stock. * There may be many reasons for valuating sub stock of single material for example; > The material has different origins (e.g., materials have different country of origin) > The material is acquired via different types of procurement (¢g., external procurement or internal procurement) > The material has different categories of quality (e.g., damaged, poor quality or good quality) Figure below Explains the above reasons ‘According to ‘According to procurement country type of origin According to quality are al S.B. Chopade (Chopade.sushilb@gmail.com)Split valuation is used only with the moving average price control, and materials that are subject to split valuation can be valuated only via moving average price method, Material: Matt Goods receipt Valuation ates-0001 Vendor-1 USA Valuation Cat H (Origin) |] | Currency-USD ‘Quantity - 100 Trem [Qty [Price Mow. avg pice «12 fae-1 [60 [70 Total value - 1200 Goods receipt Vendor-2 France Valuation Valuation Carrency-USB. type - USA type - France ay Quantity - 60 Quantity - 40 at-1 [20 ‘Mov. avg price -10 |] Nov. avg. Price 15 Total value 600 || Total value - 600 S.B. Chopade (Chopade.sushilb@gmail.com)Configuration: Peonce a Peo Pec Pree Renney Aid fete Pe (omwo} (omwc) (es) (oa) 1. Activate Split Valuation SPRO ~ IMG--Material Management -- Valuation and Account Assignment ~ Split Valuation -- Activate Split Valuation General Settings for Materials Management ‘Consumption-Based Planning Purchasing External Services Management Inventory Management and Physical Inventory DORM, + [és @ Define Price Control for Material Types * les + Bs a Itis important to active split material valuation Material valuation © sok mater vataton ace, Spit materal valuation not active 2. Define Global Types Material Management -- Valuation and Account Assignment — Split Valuation -- Configure Split Valuation T code : OMWC S.B. Chopade (Chopade.sushilb@gmail.com)goscec sis «fp Materials Management General Settings for Nateraé Management Consumption-Based Planning Purchasing Extemal Services Management Inventory Management and Physical Inventory Excise Duty Valuation and Account Assignment. [23 G Define Price Control for Materal Types lit Valuation yate Spit Valuation DEPHD Split Valuation of Materials y [GRBEITVBE Global Categories Local Defintions ° *)«e @@e Create Valuation Type OCS osu Greate Account Cat. Ref. aero Vahiaton Type ied Then select procurement type business requirement. arebutes ft Purcase Otel Int. purchase orders Fetes cee cree concert ESS ea freer ON After filling all this click on create and then press save. Similar Way create for international procurement Create Valuation Type Create Account Cat. Ref. Valuation Type [mmed p Attrbutes Ext. Purchase Orders [2] Int. purchase orders {0} Acct cat. reference (0002) Reference for raw materias S.B. Chopade (Chopade.sushilb@gmail.com)3. Define Global Categories Material Management -- Valuation and Account Assignment -- Split Valuation ~ Configure Split Valuation T code: OMWC > Choose Global Category button to create new valuation categories and define their attributes. Split Valuation of Materials Global Types SRBSNGHEEGSRES Local Definitions Global categories is single digit parameter where we assign valuation type. Global Valuation Categories Pan (GEBEB] Change Delete Types > Cat. er DVTExtPr ExP DVTInhPr nh DVT Promo. Pr — AutomV TAD nhse/ext.proc. FRED _HALB|¥) Status ci Grades GRADE B (Orgin ‘AUSTAND Remanufacturng | [CORE Retail NORMAL |Automat.(batch) Create Valuation ciate vakacn cso nis oexctan Defra eS Det: route owes] Im-howse prod. mane. val type automatic S.B. Chopade (Chopade.sushilb@gmail.com)4. Define Local Definition Material Management -- Valuation and Account Assignment — Split Valuation ~ Configure Split Valuation T code: OMWC Split Valuation of Materials Global Types Global Categories (IBEaIDEtONeN Now select here for which plant you want this category to be activated Local Definitions: Select Plant Local Types Local Categories Plant Organvational unt name (Waldor? Pars Hamburg New York (Werk Hamburg New York ‘Werk fir Customiing-Kurse SOM Lonard Hamburg (Waldort (Waldorf Harbus NEW YORK ‘Hamburg (NEW YORK (Waldorf (Greensboro ‘Hamburg Plant 1000: Allocate Valuation Categories loca pet toc categores Alcaten of ataton Cates staus—_Vakaton ovrexsr Kal > Gree (ome ‘Asterat (teh) S.B 22 ovT inter Chopade (C ream SOCOrr eres rent hopade.sushilb@gmail.com)Plant 1000: Allocate Valuation Categories Local Types Local Categories DVTExtPr EXP DVT InhPr Inh DVT Promo. PrM VT fae 0 [inise/etproc. | [FREx>_aacaly) [Ercan macaly ‘Status lez 10 Grades ] jae i pomes/INTE.Proc [Domes PROC] fon | frost JO [imam 0 Remanufacturng a DOr ee oC Carr step Calter C/E} ‘Automat.(batch) Contaners felon Pores CIES ses You can activate it for more than one plant (Actate ) [_peacnate So this is all about the configuration we need to apply for split valuation now we will check our created split valuation working correct or not. 1. Create Material (MMO1) In creating material make sure you create material for moving average price. Create Material (Initial Screen) tater type [ROR ROR MATER. = Select views here as per ange mee: _[ 1 rower Ter or Ore need and select proper — tome ‘material type which will st —— have moving verge price. (Aoi. (ons) BUCH oetck sting |) S.B. Chopade (Chopade.sushilb@gmail.com)© padceensioas | Hom. tevet choredkscem ots B ay roger ‘econo? Cora 1 cotg 2) IIE) nea —_[Sra1807 est rata vaaton Cempany cde cureney coup cency reco ret ae ieoetane oe few ace em ‘Next again go to MMO! and put the material number created earlier. mee 4 Sore a ae [netroots fT Create Material (Initial Screen) Genera Plant Data / Storage 2 ena es pacar’ aes wees (iat woomtngt tnawey sacar neat cureng 2 ym. vert we selector enon request 2 LDS J) S.B. Chopade (Chopade.sushilb@gmail.com)(Create Material (Initial Screen) Select es) Oboe Ost aes (on SECs ary cto canyon. Organizational lavels Plant. [2000] Stor. Location _[0003] Valiaton type [BOHESIPRDG| Cor. levels/profies only on request (oo) vrareeo Material 60001800 created S.B. Chopade (Chopade.sushilb@gmail.com)In Similar Way maintain it for another procurement ie. international procurement, And save the material epeeb reread ace Organizational levels Plant (1000) Stor. Location _[0001| Vatation type nn eROE |) | Org. levels/profiles only on request (V)[Setect View(s) |EI_Defauk Setting |) Petiod 008.2027 | Perd 012.2021 General Vatation Data “oral stock ease Unt Dison austin Cat. vavaton cess fn VC: Sale Ord. ste Project Stock VC Prices and ves urency eR ar @ uso Company code curency Group curency Hard curency standard Pree Pee. unt ice 25,09 Price Unt Pre. Cut Inventory Vale Vabe/pernt or Future price Future price fom 2. Create Vendor Master (XK01) Create two vendors one for domestic and another one for international. Here we created following vendor 0000100934 domestic 1033 international 3. Create PO (ME2IN) Let us create PO for domestic vendor first. After putting all data as shown in figure just click on delivery tab where you can select valuation type for PO. In this case itis fixed because we made one mistake in configuration part 10| Page S.B. Chopade (Chopade.sushilb@gmail.com)[create Purchase Order Dramecomrenct OR Hal Gb SF Crmcneew temps [H] Enemraseero See feng an tee » == oR are variant ~ [Ess 61 eww sot tae ocuaey Cb Oxe mee ence ase oe pe Bans. BEL SO0 DEES (omen | (saree Ere temas >] ee ah IR Gis eet Ta ‘earn ta ttenlonns : Change Valuation Category Change Valuation Category + Valuation Category - Valuation cat __[E|Domes/INTE.Proc Default: valtype ext.procure. Default: valtype ext.proc. mand Default: valtype in-house prod Default: valtype m-house mand. Defit valtype: action Defit valtype: obigat. action Determine val. type automat. Bre srs rea ane e Select Domes Proc and Semere: check and save PO mame cries Standard PO created mer = under the number 4500022950 [Page S.B. Chopade (Chopade.sushilb@gmail.comSimilarly Create PO for International Vendor. Only select INT_PROC in delivery tab Standard PO created under the number 4500022952 ‘Cheek Stock (MMBE) ‘Stock Overview: Basic List ne SC ae es oem cd aan that 100 is for domestic vendor and 50 is for ve Yours ie wma intemational vendor. No separation is as fom ware Cat) (SJB) GL) BL Boetaie ewe} upon coker sanecmiBnete ac Uneaten ere fr en ~ 100 nesnun Gemany ay 000 narurg 5. MIGO Let’s create goods receipt of both the domestic and international PO. (2 Goods Receipt Puchase Order - SUSHIL wteomer Wad Ot fot Cie (Ea) GS) ED ate =| frie ove) Gov ineanse >) Gils i om Material document 5000001724 posted Similarly create GR of international Vendor 12| Page S.B. Chopade (Chopade.sushilb@gmail.com‘quantity | Where _| Purchase Order Data_| Partner _ | Account Assignment Materal [etsiatiton (plz Vendor Water No, Materal Group Vakation Type EAN n Order Unt EAN check Material document 5000001725 posted. 6. Check stock again MMBE sont wet anes vereame Pesse vauren we wi (based Oey) (oe/capny CodeParetoage Loca aYSpeaal Stock Unesoed we Qua pene Rasened RL eseabon Ove Stok | Crs. or 159.00 = 1000 Btn Gey 159.00 z You can check moving average price for respective valuation type in mm03.Select valuation class and check. Also without valuation class check the moving average price. S.B. Chopade (Chopade.sushilb@gmail.com)