Working with Inventory Valuation

The SAP ERP back end allows you to valuate materials either separately or together, according to different valuation criteria.

The way material stocks are valuated depends on the following:

• Valuation category: Defines whether the stocks are valuated jointly or separately. If stocks are managed separately, the category also specifies the criteria used to valuate the stocks. The criteria can include if the stocks are valuated by origin, in-house production or external procurement, or individual batches.

• Valuation type: Valuation type is a further subdivision of valuation category. For example, if the valuation category is origin, a company may want to define the valuation types as stock from Los Angeles and stock from Detroit.

You enter an inventory valuation type when you add a new material receipt. Inventory valuation is available for all four types of orders where the goods receipts process is available:

• Purchase order

• Production order

• STOs

• ASN documents that are Warehouse Managed and not already posted

If the material you are adding is tied to a valuation category on the SAP ERP back end, the Valuation Type is active on the Add Goods Receipt screen. You can select any of the types from the dropdown menu.

If the material is a serialized or batch material, enter a serial or batch number on the second Add Goods Receipt screen. Then tap on Finish to complete the material receipt creation process.