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Former Member

Valuaiton Class

Hello freinds,

What is the purpose of Valuation class? Can we assign n no. of gl accounts to the same valuation class and can we create n no. of valuation classess and can we assign no of valuation classess to the same material master.

1. We have 5 general modifiers, 5 valuation classess and 5 gl accounts. Can we assign these 5 gl accounts to same general modifier with same valuation class.

2. Say for ex: i have assigned valuation class 1200 in the material master and 1300 in the OBYC. While posting MIGO and MIRO which one will pick the system i.e., from OBYC or Material master?

Can anybody pl elabrote on this and what is the impact on financial accounting and controlling?

adv thanks

vk

Edited by: VK on Sep 8, 2008 10:51 AM

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3 Answers

  • Best Answer
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    Former Member
    Sep 08, 2008 at 09:28 AM

    Hello,

    For the Second question.

    If you assign the 1200 VC in material master and 1300 VC in OBYC,system should pick up the 1200 and if the customization is not done in the OBYC for the 1200 the system not allow you the MIGO and MIRO.

    Hope it will help you,

    Regards

    Ravi

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  • Sep 08, 2008 at 08:59 AM

    Hi,

    Valuation class - 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:

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

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

    In material master you assign the valuation class, while in OBYC you can define G/L accounts - for certain procedures, goods issue, for example - based on this valuation class.

    Regards,

    Eli

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    Former Member
    Sep 08, 2008 at 10:32 AM

    Hello freinds,

    What is the purpose of Valuation class? Can we assign n no. of gl accounts to the same valuation class and can we create n no. of valuation classess and can we assign no of valuation classess to the same material master.

    1. We have 5 general modifiers, 5 valuation classess and 5 gl accounts. Can we assign these 5 gl accounts to same general modifier with same valuation class.

    2. Say for ex: i have assigned valuation class 1200 in the material master and 1300 in the OBYC. While posting MIGO and MIRO which one will pick the system i.e., from OBYC or Material master?

    Can anybody pl elabrote on this and what is the impact on financial accounting and controlling?

    adv thanks

    vk

    Edited by: VK on Sep 8, 2008 10:51 AM

    Hi,

    Valuation Class is the one from Materials, which forms a link with the GL account of FI.

    Answer b: Yes, we could assign n no. of gl accounts to one valuation class. But, we have to be very careful when assigning the GL accounts to the Valuation class. The reason being afterall, we are asking the system to pick up the GL accounts automatically for certain transactions.

    Valuation classes can be like this: eg:1000 for Raw materials, if you dont have any demarcation, then any kind of Raw Material G/L accounts would be assigned to 1000 valuationclass.

    However for demarcation, if we have defined 1000 for RM - Local, 1001 for RM - imported, 1002 for RM - Traded, then in such case we would need to define 3 different GL accounts whihc would be assigned to the relevant Valuation classes.

    1. We have 5 general modifiers, 5 valuation classess and 5 gl accounts. Can we assign these 5 gl accounts to same general modifier with same valuation class.,

    for the above questions of yours, i would need to check before i would give you the info.

    2. Say for ex: i have assigned valuation class 1200 in the material master and 1300 in the OBYC. While posting MIGO and MIRO which one will pick the system i.e., from OBYC or Material master?

    first of all why would you give 1200 in Material master and 1300 in OBYC, the reason for that question is 1200 say for eg is valuation class for traded goods, and 1300 is for finished goods, then there would be a contradiction.

    MIGO, MIRO transactions would take the information from OBYC, first and later would look at Material Master.

    In a very broad way, as an example we could compare FI's GL account Groups to Valuation class and the part codes of material master to each GL account (different part codes make a material master) like no. of GL accounts forming an account group.

    One more important thing is that, values from MM would flow through valuation classes and hit FI's GL accounts, so a Raw material Valuation class has to hit the same GL account, not otherwise, where Valuation class is of RM and the GL account description is Finished goods.

    Regards

    Soujanya

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