When purchase orders are created, the system checks to see whether the article is assigned to a promotion. If so, it proposes the default valuation type (for example, promotion or normal) based on the valuation category in the article master record and the valuation types assigned to it in Customizing for Material Management. However, this can be overridden (changed to normal, or no split valuation) if the purchasing agent determines that the vendor cannot supply the article at the reduced purchase price.

When goods are received into the warehouse, values are posted to the appropriate General Ledger account (normal or promotion) depending on the valuation type.

For clearance sales of current inventory (as opposed to promotions where merchandise is specially ordered), your entire inventory of the articles involved should be revalued as promotion merchandise (rather than normal merchandise) prior to the start date of the promotion.

For stock transport orders, articles will be revalued according to the valuation category for those articles in the receiving site.