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Valuation Class

Wnat is the role of valuation class in relation to PM module?

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    author's profile photo Former Member
    Former Member
    Posted on May 02, 2011 at 11:33 AM

    Hi,

    Valuation class is having no direct relation with PM module. As valuation classes will be defined for all the materials, spare parts have also been defined with valuation class. This will be coming under MM module.

    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.

    Regards,

    Maheswaran.

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    • Former Member Former Member

      Hi,

      As Plant Maintenance will have only expense & there is no direct revenue because of PM, Profit center will not play any role. If you consider Production or sales activity, there we find both Profit Centers as well as Cost Centers. Because Production & sales departments will incur expense as well as yield profits.

      There are different headers under Chart of accounts. It could be Assets, Liabilities, Revenuse, Expenses.

      Based on the client requirement, different G/L accounts would be defined. For example, if the client wants to track the Material account separately like one G/L for Finished Goods, one for Raw Materials, one Spare Parts, then different G/L will be maintained.

      Each G/L account will have offset account to balance the FI posting. For example, If you are issuing any Spare Parts for the Maintenance Process, we are spending some value of amount. So it is expense.

      Now Asset Material Account will get debitted & Maintenance Expense account will get credited. In this case, offset account for Asset Material Account is Maintenance Expense Account & vice versa.

      There are lots of materials available in SAP Help. Use those resources, you will get more clarity.

      Regards,

      Maheswaran.

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