If a material is subject to split valuation, the material is managed in different sub-stocks, where each sub-stock is valuated separately.

Every transaction that is relevant for the valuation – goods receipt, goods issue, invoice receipt or physical inventory – is performed at sub-stock level.

When you process one of these transactions, you must always enter the sub-stock that should be used. In this way, the value change is limited to the sub-stock you choose. All other sub-stocks remain unchanged.

The total stock and the sub-stocks are both updated. The value of the total stock is calculated as the sum of the stock values and stock quantities of all sub-stocks. Valuation for a single batch is a special form of valuation. In valuation for a single batch, one valuation record exists for each batch.

In the following exercises you will create two purchase orders with different prices for the same material. You then post the goods receipt to different batches. You then check the prices at plant level and batch level.