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Valuation class

Hi PP Experts,

Can anybody plesae tell me why it is need to maintain Valuation class in material master.

replied

Dear,

The valuation class determines the G/L accounts that are updated as a result of a valuation-relevant transaction or event such as a goods movement.

The valuation class makes it possible to:

Post the stock values of materials of the same material type to different G/L accounts

Post the stock values of materials of different material types to the same G/L account

You could relate valuation class to account groups/ asset class etc

Just a way of categorizing the material postings and also used as account assignment which is setup in OBYC.

The valuation class is a key for grouping materials that have the same account determination. If different accounts are to be posted according to valuation class in a transaction, the account determination for this transaction is to be set as dependent on the valuation class.

Valuation class is determine your type of matrial Following are the some example of valuation class

3000--- Raw material

7900-- Semifinished material

7920- -Finished material

The use of valuation classes is to post the materials with the same material type to different accounts and to post materials with different material types to the same account.

Regards,

R.Brahmankar

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