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Valuation Strategy in Agro Business


We are implementing SAP in company where they have Agro and Trading Business, In Agro they manufature one of the item and then they sell, so we have product costing also implemented.

Any one can please help me to understand what type of Valuation we should propose, as of now we are proposing Standard Costing but client is not accepting because if there is any variance then system will post it to PRD Account.

Please let me know what type of valuation is followed in this type of business.



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