valuation area

[Former Member]

Hi all,

what is the significance of Valauation area?

[Former Member · Accepted solution]

Organizational level at which material valuation is carried out. You can define a valuation area as follows:

Valuation area = company code

All stocks of a particular material in this company code are valuated together.

Valuation area = one plant

The stocks of a particular material in this individual plant are valuated together. Stocks in other plants are not included in this valuation area.

[former_member192897]

Hi Test,

Plant is called as Valuation Area.We can valuate Material at Plant level and company level. If you valuate material at company code level price will be same. If you valuate the material at plant level the price will be differ from plant to plant.

SAP recommends to have Plant as the valuation area.

Because valuation area is the place where the material are getting valuated at.

let say u have many plants assigned to a company codeand these plants are located in different location.

So the material prices will be different in diff location.

So the valuation becomes complicated.thts why we normally use plant as valuation area this just a simple example.

when we define the valuation area as company code then the material is valuated at company code level that is it will have the same value for all plants in that company code.

Whereas when we valuate the same material at plant level then for each plant the material will be valuated as per the material movement and pricing in that plant. Thus providing you a value of the material plantwise.

When we maintain the Company code level valuation class the value by default is maintained individually for each plant but the visibility of stock is on Comapny code level value.

Reg,

Ashok

• Rewards welcome.

[former_member335885]

Hi,

Valuation Area can be at company code level or at plant level.

Normally SAP recommends it to be at plant level.

For example take a material which is maintained in many plants and whose valuation area is at plant level then this material will or can have different prices for the material.

If the valuation level is at company code level then this material will be having the same price in all the plants assigned to this company code level.

thanks & Regards,

Kiran

[kunal_ingale]

hi

You define the valuation level by specifying the level at which material

stocks are valuated. You can valuate material stocks at the following

levels:

o Plant level

Valuation must be at this level in the following cases:

- If you want to use the application component Production Planning

(PP) or Costing

- If your system is a SAP Retail system

o Company code level

The decision you make is valid for the whole client. You are recommended

setting material valuation at plant level.

Important

Once set, it is not possible to switch the valuation level from

plant to company code, or vice versa. If absolutely necessary to

subsequently change the valuation level, contact your SAP consultant

because a data conversion is required.

reward if useful

regards

kunal

[Former Member]

in addition with above all good points some addition

in case your plants are belong to other company code each then it is not going to make any significance that your valuation level is plant specific or company code specific.

but if you are with same copany code and you know that the vendor for all the plants are same then make the vauation area as company code but if diff rates then your valuation will varry much.

so plant specific vauation is what we use mostly in systems.

Regds

S

[BijayKumarBarik]

Hi,

Valuation areas are nothing but the level at which you want to valuate your materials. SAP provides two levels of valuation ie............company code level and plant level.But Plant Recommended is valuation area to have better control on material and its valuation.

Regards,

Biju K