Material Valuation

Knowing the value of the material at a certain time.

M-1  1,10 / 1,15/ 1,05/ 1,25/1,18

M-1
10
31.03.22
5000 = 50000

Valuation areas:
Plant
Cc

(Valuation price) Price Control

Standard Price (S) – Price remains constant

M-1 “S” = 10
Total stk = 25000
Total value = 250000

100
80

MR21  for price control change

Moving Average Price (V) –Price changes
proportionately on GR/GI/IR transactions

M-1
V = 10
Stock = 0

Stock 0 * 10 Rs. = 0

PO 100 Pcs @ 20 per pc = 2000

GR 100 Pcs * 20 = 2000
Stock 0 * 10 = 0
Stock 100 * 20 = 2000

Stock 100 = 20 = 2000

Total Value/Total Qty =

2000/100 = 20
V= 20

II
M-1 V = 20
Stock = 100
PO M-1 100 Pcs @ 10 per pc
GR 100 Pcs

Stock 100 *20 = 2000

GR 100 *10 = 1000

3000/200 = 15

M-1 = V = 15

31 .03.2023 = 30,000
1.04.2023 = 20
Stock =
Note:
- Once valuation area is set, the same cannot be
changed
- If val. Area is set at CC then MMR is also
maintained @ CC (client, CC, plant, sloc)
- SAP Suggests to maintain bought materials @ MAP
and produced materials @ SP
- If Production Planning and Product Costing is active
(Manuf. Industries), then it is mandatory to maintain
Plant as val. Area

Price control Change – MR21

CC 1ipa  Plant 1ipa  M-1
Plant 1000  M-1

Val. Area Plant

M-1
Plant 1000 Plant1100
5000 Pcs 1000 Pcs
20 per pc 30 per pc
“V” “S”
100000 30,000

= 130000

Val. Area CC 1iPA = S= 2 M-1

M-1 “s” = 2
Plant 1000 Plant1100
5000 Pcs 1000 Pcs
10000 2000

12000
Account Category Reference (ACR)
Contains list of valuation classes

Valuation class (VC)

Specifies to which G/L A/c the postings are to be made

ACR is assigned to material type

ACR 0001  Assigned to Mtl type ROH /

HALB/FERT…….

VC 9000
Stock (BSX) – 300000
Consumption (GBB) – 400000
GRIR (WRX) – 191100
Price difference account (PRD) = 231000

VC 9001
Stock (BSX) – 300001
Consumption (GBB) – 401000
GRIR (WRX) – 191200
Price difference account (PRD) = 231200

VC9002
Stock (BSX) – 300011
Consumption (GBB) – 401001
GRIR (WRX) – 191201
Price difference account (PRD) = 231203

1 ACR = many material type

1 material type = 1 ACR
1 ACR = many VCs
1 VC = 1 ACR