There are valuation types for each valuation category, which specify which individual characteristics exist for that valuation category. If you give the valuation types meaningful keys, each valuation type in some way represents the name of a sub-stock.
Fixed valuation types are defined in the system for each valuation category except valuation category X.
In Customizing, the system administrator can define as many valuation types as required. Each valuation type must be assigned to a valuation category.
The following graphic shows three examples of split valuation.
You procure a material both from in-house production and from external vendors. You want to valuate the stocks from each source separately. In this case, you select Procurement type as the valuation category (B) and Internal and External as valuation types.
You procure a material from several countries. You want to valuate the stocks from each country separately. In this case, you select Origin as the valuation category (H). As valuation types, you define the relevant countries, for example, Italy and France.
You procure a material in different grades. You want to valuate the stocks of each class separately. In this case, you select Quality as the valuation category (Q). As valuation types, you could define A, B, C, and D.