Valuation is controlled by three factors:

• Valuation category

• Valuation type

• Valuation class

Valuation categories are set up in Customizing to determine whether split valuation of a particular article is allowed for each valuation area (usually a store or distribution center). Each category can have one or more valuation types assigned to it.

Valuation category R, for example, enables split valuation to occur automatically for two types of stock: promotion stock and normal stock. Valuation of an article occurs at the type level.

For a given article, you assign a valuation category and valuation class in the article master record for each store that stocks that article. The valuation category determines which valuation types are valid for that article in that store; for example, for category R, the only valid types are promotion stock and normal stock. The valuation class (defined in Customizing) determines the General Ledger account for the article.

If an article in a given store has valuation category R and is assigned to a promotion module, it will be valued as a promotion article and the value posted accordingly. After the promotion is over, the valuation will revert to normal (no split valuation).