Valuation area and split valuation

[Former Member]

Hi,

what is the difference between split valuation and valuation area ?

Best regards

[Former Member]

Hi

Split valuation

Split valuation http://www.sap123.com/showthread.php?t=29

Regards

Ram

[former_member529134]

Hello

Both split valuation and valuation area are two different concepts.

Pankaj has given you the defenition for both.

Valuation area is nothing but the organizational level at which you asses value for the materials.We have two options for valuation area in SAP.It can be either company code or plant. In most of the cases the valuation area is plant.

You might have noticed that at the time of material creation, if you have to maintain the accounting view in which u give the material price control,material price,total stock and stock value, then the valuation class u have to enter the plant in the organizational level. That means these datas are maintained at plant level.

Now about split valuation.

To split the valuation of same material types we have valuation classes.Hope u will be clear with that concept.

Now if we have to split the valuation of a material in a valuation area we use split valuation.

For example you might be procuring the same material from a local vendor and foreign vendors from US and Australia. If the materail price is Rs10, 15,25 for the material from local,US and Australian vendor, we maintain split valuation for that material.

At the time of master creation we create the master for that material with a valuation category (in this case origin) and without entering the valuation class or it price control or price and we save it.

Then from the configuration when we again take the same material in MM01 T.code, we will enter the valuation type as local,US or Australian and maintain the accounting information.

We can maintain the same material to different valuation classes by using split valuation.

Hope it is clear

Regards

Gregory Mathews

[pankaj_singh9]

Hi,

Split valuation: - The SAP R/3 System allows you to valuate stocks of a material either together or separately, that is, according to different valuation criteria. Split valuation is necessary if, for example:

- Stock from in-house production has a different valuation price than externally procured stock.

- Stock obtained from one manufacturer is valuated at a different price than stock obtained from another manufacturer.

- Different batch stocks of a material have different valuation prices.

- Value damaged and repair part differently from a new part.

Valuation Area: - Organizational level at which the material is valuated. A valuation area can be one of the following:

- Plant

- All plants belonging to a company code, in which case the valuation area is the company code