Valuation Area

Organizational level at which material valuation is carried out. You can define a valuation area as follows:

All stocks of a particular material in this company code are valuated together.

The stocks of a particular material in this individual plant are valuated together. Stocks in other plants are not included in this valuation area.

You define in Customizing the level at which valuation should take place.

Valuation Class

You group together different materials with similar properties into valuation classes so that you do not have to manage a separate stock account for every material.

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The following table contains examples of possible valuation classes:

Which valuation class a material can be assigned to depends on the material type. You can define the following assignments in Customizing:

A material is assigned to a valuation class in the material master record. The system checks whether the material type allows the material to be assigned to the valuation class specified.

The system refers to the valuation class of a material to determine which stock account to post to when a posting is made for this material.

Valuation Category

Criterion according to which split valuation is carried out:

You can valuate a material differently depending on whether it is manufactured in-house or procured externally.

You can valuate a material differently depending on where it comes from (such as home or abroad).

You can valuate a material differently depending on its status (such as new, used, repaired).

You define the valuation categories in Customizing. A material is assigned a valuation category in the material master record.

Valuation Type

The valuation type specifies the individual characteristic of the valuation category, such as internal or external , in the case of Procurement. Within the valuation category Origin , you can define the different countries as the valuation types. You define valuation types in Customizing. You first determine all the valid valuation types for a valuation category.

You define in the material master record which valuation types are allowed for a particular material. For every material subject to split valuation, you must enter all the valuation types allowed in the material master record.

Material Type

You assign every material to a material type when you create it. Examples of material types in the standard system include raw materials , operating supplies and finished products .

The material type controls the properties of a material and which data must be maintained for the material. The following control features are important for valuation:

The system administrator can create or change material types in Customizing.

Movement Type

For every material movement, there is a movement type in the SAP System. The movement type controls the properties of the movement, for example, which entries you must make when entering a material movement, and which updates are carried out when the movement is posted. The following control features are important for valuation:

The system administrator can create or change movement types in Customizing.