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FI-MM(Valuation Class)

Hi,

Can any one please help me in explaining me what is valuation class ? and where configuration is done, i have some idea that Raw material, finished goods ext are called as valuation class and they are represented by numeric key. can any one provide proper notes on this valuation class and how is it helpful in FI-MM Integration.

thanks in advance

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 02, 2007 at 02:04 PM

    Hi,

    Valuation class is a group of raw materials with the same account determination.

    In any concern there will be hundrends or thousands of raw materials.You might have known while integrating FI-MM you have to create a general ledger account for each raw material. It is a difficult task to create as many as g/l accounts to as many raw materials there exists. So the similar nature raw materials are grouped depending on some characteristics and valuation class is assigned to each such group of raw materials.We create g/l accounts for these valuation classes and assign them.

    Valuation class Tcode is omsk.

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 02, 2007 at 02:25 PM

    Use Tcode OBYC for A/C determination (Integration FI-MM)

    If a user creates a material, he must enter the material's valuation

    class in the accounting data. The R/3 System uses your default settings

    to check whether the valuation class is allowed for the material type.

    The valuation class is a group of materials with the same account

    determination. If a transaction is to be posted to different accounts

    depending on the valuation class, create an account determination for

    each valuation class in the step Create automatic postings.

    The valuation classes allowed depend on the material type. Several

    valuation classes are generally allowed for one material type. A

    valuation class can also be allowed for several material types.

    The link between the valuation classes and the material types is set up

    via the account category reference.

    The account category reference is a combination of valuation classes.

    Precisely one account category reference is assigned to a material type.

    Create account category references under account category reference

    Under valuation class, define the valuation classes for each account

    category reference.

    Under Material type/account category reference, assign an account

    category reference to each material type.

    Tcode OMSK

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 02, 2007 at 02:20 PM

    Hi Giridhar Reddy

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

    We use different valuation class for different types of materials. for ex.for Raw materials-3000, for Finished goods-7920 etc. Which identifies the respective GL Accounts in the FI-MM integration.

    The link will be taken from the material master MM01. when coming to the configuration part of VC, FICO people need not bother as we have standard VCs available or if required MM people will configure our job is Identify the requirement and enter the relevant GL accounts.( it is difficult tio explain more than this here.)

    Further if you want, give your mail id I will forward the relevant material.

    Regards

    Anand Thirtha

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 14, 2013 at 10:53 AM

    valuation classes are allowed for a material type.

    If a user creates a material, he must enter the material's valuation class in the accounting data. The ERP system uses your default settings to check whether the valuation class is allowed for the material type.

    The valuation class is a group of materials with the same account determination. If a transaction is to be posted to different accounts depending on the valuation class, create an account determination for each valuation class in the step Create automatic postings.

    The valuation classes allowed depend on the material type. Several valuation classes are generally allowed for one material type. A valuation class can also be allowed for several material types.

    The link between the valuation classes and the material types is set up via the account category reference.

    The account category reference is a combination of valuation classes. Precisely one account category reference is assigned to a material type.

    The following are the Requirements for Valuation class.

    1) You must have defined your material types.

    2) You must have defined the chart of accounts.

    3) You must have agreed with Financial Accounting which materials are assigned to which accounts.

    Default settings

    In the standard SAP R/3 System, an account category reference is created for each material type. The account category reference is, in turn, assigned to precisely one valuation class. This means that each material type has its own valuation class.

    Recommendation

    We recommend that you create the account groups of your chart of accounts as an account category reference.

    Example GKR:

    • 3000 for raw materials
    • 3030 for accessory materials
    • 7900 for finished products
    • and so on

    Activities

    1. 1. Create account category references under
    2. account category reference
    3. 2. Under
    4. valuation class
    5. , define the valuation classes for each account category reference.
    6. 3. Under
    7. Material type/account category reference
    8. , assign an account category reference to each material type.

    MENU PATH spro ->materials management->valuation and account assignment->account determination->account determination without wizard->Define valuation class.

    Best regards

    bhanuprakash.

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  • Posted on Aug 17, 2016 at 07:20 AM

    why we cant have 3071 valuation class for FHMI.

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