Assigning Valuation Class to Material group instead of Material Code

[former_member590677]

Hello Gurus,

I have one doubt:

Why do we need to assign Valuation class to each and every material code when we can simply assign a valuation class to material group and material groups to material code.

Please clarify.

Best Regards,

Parshant

[ankurch · Accepted solution]

Hello Prashant,

I think its not much more related to SAP Technical its about consulting, your question can be why we have material type when we have material group to classify materials on the basis of materials,

I hope I can clear your query -

• We have material type to differentiate the materials based on the basic nature like raw material, now comes to the material group in material type ROH(Raw material) we can have multiple type of raw products, some if that might be count as consumables, so basically we maintained valuation class against material group where we know we need to create PO for consumables and the same GL needs to debit, but in case of material master in which we maintained inventory we need multiple reports based on the material so we maintained valuation class against MMR and the same can be traceable with each of the material document as well as accounting document.

Please do write us if Than you still have any doubt!

thanks,

[former_member590677 · Accepted solution]

Hello Ankur,

Thanks for the Answer .

Just a little bit more elaboration:

If I have a material RAW01(raw material) , Material Group : RAW , so if i assign valuation class 3000 to RAW instead of RAW01 master , what will be the implications. As during PO creation i will be entering both material code and material group, and system can pick the valuation class from material group instead of material master.

we use this concept in services, why can't we have the same in Materials.

Best Regards,

Parshant

[ankurch · Accepted solution]

Thanks Prashant for your confirmation,

While creating PO you can also check if we create PO for consumable items system ask for material group, but if you maintained valuation class in material master record, system gave prefrences to the material master record, one more thing if you use the valuated material then system allowed you to create PO, without Material group in standard scenario.

Thanks,

[former_member183424]

For material master, Valuation class is dependent upon material type. SAP has given the option to assign valuation class to material group only for these scenarios where you are not using material master. Check out my blog post for more details about the same https://blogs.sap.com/2013/11/18/automatic-account-determination-for-without-material-master/

[BalaAP]

Hi,

Ankur answered in a right way.

Those consultants worked from FI and try to learn MM, they will try to imagine Material group as similar to FI-Account Group (of vendor/customer etc). Because in FI, the screen layout (or FSG) and number ranges are allocated as per the account group. Account group plays a vital role in FI.

But in MM, material type has many controls (like screen layout etc). As Ankur said, Material group used in a limited way in MM (for specifying valuation class for materials, which are not having material master, like consumable items).

Adding to this, Material group is used for identifying/searching for required material, and also used for reporting/analysis purpose. It is also used to create PIR (Purchase Info Record) for materials with out material master for a vendor, Pur.Org, Plant and Material Group combination.

regards,

Bala.