hi
Plant is called as Valuation Area.We can valuate Material at Plant level and company level. If you valuate material at company code level price will be same. If you valuate the material at plant level the price will be differ from plant to plant.
SAP recommends to have Plant as the valuation area.
Because valuation area is the place where the material are getting valuated at.
let say u have many plants assigned to a company codeand these plants are located in different location.
So the material prices will be different in diff location.
So the valuation becomes complicated.thts why we normally use plant as valuation area this just a simple example.
when we define the valuation area as company code then the material is valuated at company code level that is it will have the same value for all plants in that company code.
Whereas when we valuate the same material at plant level then for each plant the material will be valuated as per the material movement and pricing in that plant. Thus providing you a value of the material plantwise.
When we maintain the Company code level valuation class the value by default is maintained individually for each plant but the visibility of stock is on Comapny code level value.
check the link
http://help.sap.com/saphelp_470/helpdata/en/47/60feb949f011d1894c0000e829fbbd/content.htm
MM -> Valuation and Account Assignment -> Account Determination -> Account Determination without wizard -> Group together valuation areas (T Code OMWD). The Val.Grpg Code in this customizing is a freely definable 4-character code. You can then use this as valuation modifier in MM-FI account determination (OBYC).
Regards
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