SAP Split Valuation for Materials

The SAP R/3 System allows you to valuate stocks of a material either together or
separately, that is, according to different valuation criteria. Split valuation is
necessary if, for example:

1. Stock from in-house production has a different valuation price than externally
procured stock.

2. Stock obtained from one manufacturer is valuated at a different price than stock
obtained from another manufacturer.

3. Different batch stocks of a material have different valuation prices.

4. Value damaged and repair part differently from a new part.

To used split valuation, you have to activate it using 'OMW0'.

To change split material valuation once it has been set, you must

1.  First post out all stocks (for example, to a cost center or with movement type 562) 
2.  Then change the control parameters 
3.  If necessary, change the automatic account determination 
4.  Finally post the stocks back in again

In split valuation, you can distinguish between partial stocks of a material according
to certain criteria and valuate them separately.

The material stock is divided according to valuation category and valuation type.

The valuation category determines how the partial stocks are divided, that is,
according to which criteria. 

The valuation type describes the characteristics of the individual stocks. 

With the function "Setting" you can determine:

Which valuation categories exist in your company (global categories) which valuation

types exist in your company (global types) which valuation types belong to which
valuation category which valuation categories exist in a valuation area (local
categories) 
Your entries are only relevant if you set split valuation as active in the function
"Global settings".

In the standard SAP R/3 System, the following valuation categories are default
settings:

B procurement type with the valuation types:

"EIGEN" for in-house production 

"FREMD" for external procurement

H Origin 

X automatic valuation (only for batch) 

To select split valuation ('OMWC'), proceed as follows:

1.  Determine the valuation categories and valuation types that are allowed for all
valuation areas: 
    global valuation categories via menu "Goto --> Global Categories"  
    global valuation types via menu "Goto --> Global Types" 

2.  Allocate the valuation types to the valuation categories. 

     a) Select "Goto --> Global Categories". 
     b) Position the cursor on a valuation category and select  
        "Goto --> Global Categories --> Assignments --> 'Types->Category'". 
     c) Activate the valuation types you want.

3.  Determine the local valuation categories for each valuation area. 
     a) Select "Goto --> Local definitions". 
     b) Position the cursor on a valuation area and select  

  "Goto --> Local Definitions --> Allocate Categories->Org.units (button Cats>

(OU)".  
         You obtain a list of the global valuation categories. 
     c) Activate the categories to be used in this valuation area. 
         The system creates the local valuation types based on the allocations under point
2. 
         Only now can you create a master record with split valuation
Specifying Split Valuation by creating Material subject to Split Valuation

1.  Create a material master record, selecting the Accounting View 1.  

2.  Enter your data as required on the Accounting data screen, specifying a valuation
category.  

(If you can't find the valuation category field, it might be hidden, use OMSR to
define the Field groups. Look for the field MBEW-BWTTY for Valuation category). 

3. Be sure that the price control indicator is V for moving average price and enter a
moving average price.  

4.   In the case of split valuation, you can create only one valuation header record
with price control V because the individual stock values are cumulated, and this total
value is written to the valuation header record.  This is where the individual stocks of
a material are managed cumulatively. To do this, fill in the Valuation category field
on the accounting 

 Screen when you create the material master record and leave the Valuation type
field blank. 

5.   Save your data and the system creates the valuation header record. 

6.   The initial screen appears. 

7.   Extend the material by creating new material master records from the Accounting
view 1. For the first material, specify a valuation type in the Organizational Levels
dialog box and enter the respective accounting data on the data screen.  
Proceed likewise for the other materials, distinguishing between them by valuation
type.  To do this, call up the material in   creation mode again. Due to the fact that a
valuation header record exists, the system requires you to enter a valuation  type for
the valuation category. 
8.   Repeat step seven for every valuation type planned.

You want to valuate the stock of material XYZ that you obtain from manufacturer A
in Los Angeles at a different price than the stock you obtain from manufacturer B in
Detroit. In this case, the valuation category is H for origin. Your valuation types can
be LOS ANGELES and DETROIT.

If a material is subject to split valuation, every quantity (sub-stock) of this material

must be assigned to a valuation type (for example, country of origin). 

For every valuation type, there are two types of data in the system, as follows:

Valuation data (for example, valuation price, total stock quantity, total stock value),
which is defined for every valuation type at valuation-area level and applies to all
dependent storage locations. 

Stock data, which, like batch data, is managed separately for each storage location. If
a material that is subject to split valuation is also subject to management in batches, its
stock data is not managed by valuation type, but rather by batch. Every batch is
assigned to a valuation type.

The stock quantity, stock value, and valuation price for all valuation types are
managed cumulatively at valuation-area level.

Must the Valuation Type Exist Before the First Goods Receipt?

You can post the goods receipt of material of a certain valuation type only if the
valuation data for this valuation type already exists; because the system valuates the
goods receipt at the price defined in the valuation data. On the other hand, the stock
data for the valuation type is created automatically during the first goods receipt into
the storage location, if this is defined in Customizing for Inventory Management. 

Goods Movements with Materials Subject to Split Valuation

If you want to enter goods movements for materials subject to split valuation, you
must enter the valuation type in addition to the material number. 

Enter the valuation type in the Batch field for MB01.

In MIGO, there is a valuation type field in Detail data -> Material.