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Material Valuation Class impacts on MM/SD business processes

Hi gurus

I need to test the impact of MM/SD business processes on Valuation Class. Can anyone suggest the scenarios/transactions that needs to be run to test the scenarios? To explain one of the scenarios - if a user creates a sales order with a material assigned to a specific valuation class, how does that impact the account postings and if it does what business scenarios around it needs to be tested? Hope I made myself clear.

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  • author's profile photo Former Member
    Former Member
    Posted on May 07, 2012 at 04:18 PM

    scenario 1: User maintained wrong valuation class in material master

    solution: http://wiki.sdn.sap.com/wiki/display/Snippets/How+to+change+Valuation+Class+in+Material+Master

    Valuation Class

    In normal business, every material which is being procured, stocked or consumed needs to be valuated and all the records of such valuation needs to me maintained.


    In SAP all such records are being captured in stock account of respective material. Since all most every business deals with a high number of materials and it is not possible for them to maintain separate stock account for every material. Hence there was a strong need of grouping the materials based on the properties they have. Hence in simple words, valuation class is a grouping of materials having similar properties and assignment of these materials to a group of G/L accounts.


    Since we are grouping materials based on some properties/attributes known as material type, hence which valuation class a material can be assigned to depend on the material type it belongs. An assignment with the following combination is possible in Customizing:


    • All materials with the same material type are assigned to just one valuation class.


    • Different materials with the same material type are assigned to different valuation classes.


    • Materials with different material types are assigned to a single valuation class.

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  • author's profile photo Former Member
    Former Member
    Posted on May 07, 2012 at 04:20 PM

    Hi,

    I hope you know the use of valuation class in SAP. It plays an important role in G/L account determination. Hence to answer your query if you create a new valuation class for a material with a new GL assignment then the new GL will be affected in all the normal business scenarios such as Purchase/Stock transfer/ Sales where ever the material is used.

    Thanks & Regards,

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  • Posted on May 07, 2012 at 05:05 PM

    Hi,

    What is your specific scenarios for suggestion!


    MM/SD business processes are different and on Valuation Class used in the material are different specific to business except for few scenarios such as Trading Goods .

    Raw material procures with Valuation Class 3000 and go for processing , converted to semifinished product with Valuation Class 7900 and finally Finished products converted with Valuation Class 7920 which you can sale Finished products by creating a sale order(VA01).

    When Raw material received Raw material inventory A/C debited and GR/IR A/C credited.When Finished products leaves ,it will reduce Finished products quantity with Finished products Inventory account Credited with Cost of Goods Sold Debited.

    Regards,

    Biju K

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  • Posted on May 07, 2012 at 08:45 PM

    Automatic account determination in SAP takes place by searching the correct GL account assigned to the valuation class in OBYC. Valuation class helps in grouping materials and assigning different accounts to them.

    The conversion of material types depends on valuation class and account category reference.

    Mathew

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