A valuation type is similar to a batch record within a material master, in fact it can also be used with batch management
The main process requirement is that you have a material master reflecting a single product with varying valuations
Example
Material A with valuation type NEW (Reflecting full price new item)
Material A with valuation type REP (Reflecting partial price repair item)
Material A with valuation type OLD (Reflecting nominal price of item to be scrapped)
Normally this are used in business process where after sales service is supported. Such as CRM repair orders, PM, Service management etc
Regards
Steve
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