what is the relevance of valuaation class and valuation area in the mmr

[Former Member]

hi,

sap gurus,

what is the relevance of valuation area in mm module

and valuation class in mmr

plz help me on this

regards,

balaji.t

09990019711.

[Lakshmipathi]

Dear balaji

1) Valuation Class

It is nothing but Assignment of a material to a group of G/L accounts

With other factors, 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:

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

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

2) Valuation Area

Organisational level at which Material valuation is carried out

thanks

G. Lakshmipathi