Use

The contents of the currency fields can be interpreted as valuation approaches (combination of currency and valuation view) (see also Consistency of the Valuation Settings in Different Applications: Currency and Valuation Profile). Consequently, the use of multiple valuation approaches does not significantly influence the account determination or posting logic in Financials (see also Posting Logic and Account Determination).

Integration

The material ledger forms the basis for storing multiple valuation approaches for material inventories. The material ledger can be seen as a material subledger that stores material stocks according to different valuation approaches from the legal, group and profit center viewpoints.

These valuation approaches are applied and integrated throughout the system for all business processes that are relevant for valuation. That means that multiple values are stored in real time from material costing to the procurement processes and on to the production processes.

For the Financial Accounting and Controlling application components, using transfer prices makes it possible to work with multiple valuation approaches in the documents in all areas of accounting.

For information on how the individual applications store these multiple approaches, see Parallel Bases for Valuation in the Application Components.