Account Determination-valuation grouping code

[Former Member]

SAP MM Valuation grouping code: It is maintained as part of plant configuration same for all plants within company code having same chart of account.

i have read this from one of the website...i just wan to know that Valuation grouping code is only be assgined one time to as many plants within same company code or not

[Former Member · Accepted solution]

Valuation grouping code (VGC)

Valuation grouping code is a key to differentiate account determinations with respect to valuation area.

Where we group together one or more valuation areas that have same account determination attributes

Say

Company Code: 2000

You have five valuation areas (plants): 2100, 2200, 2300, 2400, and 2500

As per business process requirement you need two types of account determinations with respect to valuation area (VA).

2100 and 2200 share same account determinations wrt valuation area (VA).

2300, 2400 and 2500 share same account determination wrt valuation area (VA).

So your solution can be

Company Code	VALUATION AREA (VA)	VALUATION GROUPING CODE (VGC)
2000	2100	0001
2000	2200	0001
2000	2300	0002
2000	2400	0002
2000	2500	0002

This will help you to maintain account determinations for two account grouping codes rather to maintain five account determinations to respective valuation areas (plants)

Hence 2 VGC is simpler and better than 5 VA,

obviously at the end of the day you may have 20+ valuation areas or so.

Or for your requirements as of all plants share same account determination attributes

Company Code	VALUATION AREA (VA)	VALUATION GROUPING CODE (VGC)
2000	2100	0001
2000	2200	0001
2000	2300	0001
2000	2400	0001
2000	2500	0001

Note: It is mandatory to maintain VGC. As VA cannot be assigned directly to account determinations.

Even if you have only one valuation area, it should be assigned to a VGC.

Regards Junnu.

Message was edited by: Mohammed Nisaruddin Juned

[Former Member]

Hi Gaurav,

Yes you can have same valuation grouping code to different plants under one company code.

Valuation grouping code is helpful in one of the following scenario:

Ex: If material 1 is having valuation class as 3000 and the same material is used in three different plants. When GR against the PO happens in 3 different plants then in Plant1 it should hit G/L1 and plant 2 it should hit G/L2 similarly plant3 to G/L3. This can be achieved when we have 3 different valuation grouping codes.

Regards

Ayyallas

[Former Member]

Sir,

simple language just tell me what is valuation grouping code, bcoz from tcode OMWM we activate it.

in OMWD assign valuation grouping code to u r company.

but i think OMWD transaction is for activate valuation area.

so what is difference between valuation area & valuation grouping code

[Former Member]

HI Gaurav,

Valuation area is the level at which material is to be valuated(generally plant) and valuation grouping code is the group of valuation areas together.

Valuation grouping codes either reflect a fine distinction within a chart of accounts or they correspond to a chart of accounts. On basis of valuation grouping code, account determination takes place.

Hope this helps!

[Former Member]

Hi Gaurav,

Valuation area : Area where you want to valuate your material.This is basically company code or plant.In Majority of cases where PP modeule is in place we set Plant as Valuation Area.

& valuation grouping code : Now 1 company code can have multiple plant but if you want to determine separate accounts for Plant while posting transactions  we use valuation grouping code. e.g.While posting GR Plant A must use account X as Stock account and Plant B to use account Y

This setting is done in OMWD by assigning seperate grouping code for valuation area.

Vishal...

[tejyadav]

You can even use Valuation grouping code to different Company codes also,

Apart from that you can different Valuation grouping code also, Basically it will be used for determination of G/L in OBYC w.r.t. Valuation Class

[Former Member]

Hi Gaurav,

One valuation group code can be assigned to more than one valuation area. However, one valuation area can have only one valuation group code. This is valuation group code which makes link between valuation area (plant) and valuation class.

Plant(valuation area) --> valuation group code --> valuation class --> account reference category --> material type

[Former Member]

Than in simple language what is meaning of Valuation Grouping Code..

can u plz tell me