You activate a representative material for specific material per controlling area, valuation grouping code, and valuation class . Essentially, this means you activate it per balance sheet account.
Example
Semifinished and finished products are generally grouped together under one representative material, whereas raw materials are not analyzed in further detail.
Preconditions
Valuation is set up in Customizing for Materials Management under account determination using the functions
Define Valuation Control and
Group Together Valuation Areas.
The valuation classes are defined in the material master records. You do this in the activity
Define Valuation Classes.
Recommendation
Do not activate derivation of representative materials for raw materials. This can lead to long runtimes.
Activities
Activate derivation of representative materials in the desired valuation classes for the relevant valuation grouping constants.