what is split valuation whre & why it is used?
Answer Posted / sibi dominic
If you want to maintain 2 prices for a single material then
we make use of split valuation.
Example: A typical example is
If there is a motor, the motor can be purchased
(originated) from Mexico and Canada, per unit purchased
from Mexico will cost $ 100 and the same product purchased
from Canada will cost $ 120. So we need to create two
valuation type under one valuation category and maintain
different prices for these valuation type Mexico 100 and
Canada 120 and when we create the PO we need to select the
respective valuation type and the system automatically
picks up the price from valuation type. Accounting
treatment – in Offsetting entry posting GBB select account
modifier as INV (expense/ income from inventory differences)
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