Split Valuation Example (SAP Library

Split Valuation Example

This example demonstrates split valuation for a single site. As goods are received, they are assigned to either promotion or normal stock based on the purchase orders, and the inventory is reevaluated accordingly. Likewise, with each sale, inventory for the corresponding type of stock is reevaluated.

For normal stock, the purchase price is $10 and the sale price is $15.

For promotion stock, the purchase price $8 and the sale price is $12.

Goods movement	Inventory and value of normal stock	Inventory and value of promotion stock	Total value of all stock	Revenue posting
Starting inventory	1,000 articles @ $10 = $10,000	1000 articles @ $8 = $8,000	$18,000
100 articles received into normal stock	1,100 articles @ $10 = $11,000	$8,000 (no change)	$19,000
100 articles received into promotion stock	$11,000 (no change)	1,100 articles @ $8 = $8,800	$19,800
500 articles sold at normal price	600 articles @ $10 = $6,000	$8,800 (no change)	$14,800	500 articles @ $15 = $7,500
500 articles sold at promotion price	$6,000 (no change)	600 articles @ $8 = $4,800	$10,800	500 articles @ $12 = $6,000
Promotion finished; promotion stock moved to normal or promotion stock returned to vendor	1,200 articles @ $9 = $10,800 (moving ave. price) 600 articles @ $10 = $6,000	0 0	$10,800 $6,000