What is split valuation? When is it used? What are the settings reuired for it?
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Answer Posted / Pravendra Singh Rathor
Split Valuation in SAP MM (Material Management) is a method used to value goods receipt or issue of a single document with multiple different cost components. It helps to maintain cost distribution according to individual cost components. It is used when the costs of materials are not uniform, and there is a need for detailed cost analysis. The settings required for split valuation are: Enable Split Valuation in IMG under Materials Management -> Cost Controlling -> Overview -> Initialization -> Define Cost Elements for Split Valuation and activate the relevant cost elements for the respective material.nn
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