What are valuation area, valuation category and valuation class?
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Answer Posted / bhanu charan
valuation class: You group together different materials
with similar properties into valuation classes so that you
do not have to manage a separate stock account for every
material.
Which valuation class a material can be assigned to depends
on the material type. You can define the following
assignments 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.
A material is assigned to a valuation class in the material
master record. The system checks whether the material type
allows the material to be assigned to the valuation class
specified.
The system refers to the valuation class of a material to
determine which stock account to post to when a posting is
made for this material.
Valuation Area::::
Organizational level at which material valuation is carried
out. You can define a valuation area as follows:
* Valuation area = company code
All stocks of a particular material in this company code are
valuated together.
* Valuation area = one plant
The stocks of a particular material in this individual plant
are valuated together. Stocks in other plants are not
included in this valuation area.
You define in Customizing the level at which valuation
should take place.
Valuation Category:::
Criterion according to which split valuation is carried out:
* Procurement
You can valuate a material differently depending on whether
it is manufactured in-house or procured externally.
* Origin
You can valuate a material differently depending on where it
comes from (such as home or abroad).
* Status
You can valuate a material differently depending on its
status (such as new, used, repaired).
You define the valuation categories in Customizing. A
material is assigned a valuation category in the material
master record.
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