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What is Split valuation? why and where it will be useful?

Dear Frndz,

Kindly explain What is Split valuation? why and where it will be useful?

Regards,

SRini

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    author's profile photo Former Member
    Former Member
    Posted on Dec 19, 2008 at 06:18 AM

    Hi,

    Split Valuation

    Use

    For certain materials, it is necessary to valuate the various stocks in a particular valuation area separately. Reasons for this include:

    Different origins of the material

    Different grades of quality for the material

    Different statuses for the material

    Differentiation between in-house production and external procurement

    Differentiation between different deliveries

    Features

    If a material is subject to split valuation, the material is managed as several partial stocks, each partial stock is valuated separately.

    Each transaction that is relevant for valuation, be it a goods receipt, goods issue, invoice receipt or physical inventory, is carried out at the level of the partial stock. When you process one of these transactions, you must always specify which partial stock is involved. This means that only the partial stock in question is affected by a change in value, the other partial stocks remain unaffected.

    Alongside the partial stocks, the total stock is also updated. The calculation of the value of the total stock results from the total of the stock values and stock quantities of the partial stocks.

    You define whether the material is subject to split valuation on the accounting view of the material master record. There are two fields for this:

    The valuation category specifies which criterion should be used as the basis for differentiating between the various partial stocks.

    The valuation type specifies an individual characteristic of a partial stock.

    Prerequisites

    The valuation category is defined in the master record of a material. It determines whether the material is subject to split valuation. The specified material type must also be maintained in the material master record.

    Activities

    To specify the valuation type of a material for which valuation types have been defined in the material master record, proceed as follows:

    Branch to the purchase order item detail screen.

    Enter a predefined valuation type in the field Val. type.

    Save the purchase order.

    For more details , pls go through the following link :

    [Split Valuation |http://help.sap.com/erp2005_ehp_04/helpdata/EN/8a/d1de34e4cb2300e10000009b38f83b/frameset.htm]

    Hope this helps.

    Regards,

    Tejas

    Edited by: Tejas Pujara on Dec 19, 2008 7:22 AM

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 19, 2008 at 06:23 AM

    hi

    The SAP R/3 System allows you to valuate stocks of a material either together or separately, that is, according to different valuation criteria. Split valuation is necessary if, for example:

    1. Stock from in-house production has a different valuation price than externally procured stock.

    2. Stock obtained from one manufacturer is valuated at a different price than stock obtained from another manufacturer.

    3. Different batch stocks of a material have different valuation prices.

    4. Value damaged and repair part differently from a new part.

    To used split valuation, you have to activate it using 'OMW0'.

    To change split material valuation once it has been set, you must

    1. first post out all stocks (for example, to a cost center or with movement type 562)

    2. then change the control parameters

    3. if necessary, change the automatic account determination

    4. finally post the stocks back in again

    In split valuation, you can distinguish between partial stocks of a material according to certain criteria and valuate them separately.

    The material stock is divided according to valuation category and valuation type.

    The valuation category determines how the partial stocks are divided, that is, according to which criteria.

    The valuation type describes the characteristics of the individual stocks.

    With the function "Setting" you can determine:

    which valuation categories exist in your company (global categories)

    which valuation types exist in your company (global types)

    which valuation types belong to which valuation category

    which valuation categories exist in a valuation area (local categories)

    Your entries are only relevant if you set split valuation as active in the function "Global settings".

    In the standard SAP R/3 System, the following valuation categories are default settings :

    B procurement type

    with the valuation types:

    "EIGEN" for in-house production

    "FREMD" for external procurement

    H Origin

    X automatic valuation (only for batch)

    To select split valuation ('OMWC'), proceed as follows:

    1. Determine the valuation categories and valuation types that are allowed for all valuation areas:

    global valuation categories via menu "Goto --> Global Categories"

    global valuation types via menu "Goto --> Global Types"

    2. Allocate the valuation types to the valuation categories.

    a) Select "Goto --> Global Categories".

    b) Position the cursor on a valuation category and select

    "Goto --> Global Categories --> Assignments --> 'Types->Category'".

    c) Activate the valuation types you want.

    3. Determine the local valuation categories for each valuation area.

    a) Select "Goto --> Local definitions".

    b) Position the cursor on a valuation area and select

    "Goto --> Local Definitions --> Allocate Categoires->Org.units (button Cats->(OU)".

    You obtain a list of the global valuation categories.

    c) Activate the categories to be used in this valuation area.

    The system creates the local valuation types based on the allocations under point 2.

    Only now can you create a master record with split valuation.

    -ashok

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  • Posted on Dec 19, 2008 at 06:45 AM

    Dear,

    Please refer this link it will clear your all doubts,

    [Split Valuation for Materials |http://www.sap-img.com/mm025.htm]

    what-is-split-valuation

    Hope it will help you.

    Regards,

    R.Brahmankar

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