With split valuation, you can valuate different stocks of a material differently within a valuation area. You can also assign different accounts for stock and consumption postings (for example, you can differentiate them according to the procurement types – external procurement or in-house production).
Before applying split valuation to stocks of selected materials, weigh the pros and cons of split valuation. The advantage of split valuation is that you need only one material number for different states of a certain material. The principal disadvantage of split valuation is the additional work involved. For example, when posting a goods issue, you need to always specify the partial stock from which you withdraw the material.
If you decide to use split valuation in your company, set the Split Valuation of Materials indicator to active. Setting the Split Valuation of Material indicator does not mean that you have to apply split valuation to every material. You decide whether or not you wish to apply split valuation to a material each time you create a material master record.
Then, define the criteria according to which you want to valuate different sub-stocks of materials differently. It can be, for example, the procurement type or the origin of the material. The criteria are mapped in Customizing by means of a key, the valuation category.
After the valuation categories have been defined, you must define the attributes of the corresponding sub-stocks. For the valuation category (criterion) Procurement type, the attributes can be procured externally or produced in-house. For the valuation category Origin, the attributes can be Germany, China, or USA. The possible values of a criterion are mapped in Customizing by valuation types.
You must first define valuation categories and valuation types globally and assign them to each other. Then you must assign these categories and types to the valuation areas in which you want to use them.
Split Valuation
You can separately valuate different stocks of a material only if split valuation is active. If you wish to enable split valuation for a material, enter a valuation category in the accounting data for the material. The entry of a valuation category stipulates which valuation types you can select. A valuation type characterizes one of the possible partial stocks for a valuation category.
You can specify the default valuation types for every valuation category for the purchasing and production transactions. These valuation types are defaulted when you, for example, create a purchase order for a material.
The valuation categories and valuation types are defined globally, that is, independently of the valuation area, at client level.
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