Configuring Split Valuation

With split valuation, you have the option of differentiating between partial stocks of a material according to particular criteria and handling them differently, regarding the valuation, within a plant. A split valuation might be necessary in the following cases:

• When the stock of material from in-house production has a different valuation price to the stock of the same material from external procurement.

• When the stock of a material is to be distinguished by quality and the value is determined depending on the quality.

• When the different batch stocks of a material have different valuation prices.

If you want to use split valuation, it must be activated and configured in Customizing. The activation of split valuation allows you to perform split valuation for single materials, as required, but it does not mean that every material needs to be valuated separately.

To differentiate between material stocks, you must define a valuation category and at least two valuation types. The valuation category defines the criterion according to which the partial stocks are to be differentiated. The valuation types describe the possible features of the partial stocks.

For example, you want to differentiate between your stocks according to the procurement type for in-house and externally procured parts. The criterion (valuation category) in this case is the procurement type. The possible attributes (valuation types) are "Internal" and "External".

Settings for Split Valuation in Customizing

You activate split valuation in Customizing for Materials Management under Valuation and Account Assignment→Split Valuation→Activate Split Valuation (OMW0).

Define the valuation categories, valuation types, and the assignment of types to categories in Customizing for Materials Management underValuation and Account Assignment→Split Valuation→Configure Split Valuation(OMWC).

The settings for Split Valuation are as follows:

• Global definition of valuation types, independent of the valuation area
• Global definition of valuation categories, independent of the valuation area
• Assignment of the valuation types to the valuation category, independent of the valuation area
• Determination of the globally defined valuation categories that can be used in a valuation area; this valuation area specific setting is called local definition.

For the individual valuation type, you can define whether it can be used in an internal and/or external procurement process. Via the valuation category you control whether a valuation type is binding for a process. For example, it is useful for differentiation according to procurement type that only the valuation type "external" is allowed for externally procured parts of the material, whereas only the valuation type "own" is allowed for quantities produced in-house.

In addition, you can use the valuation type to influence account determination by specifying different account class references for the valuation types. For the previous example, this means that the in-house produced stock of the material can be managed in a different stock account than the externally procured stock.

To configure split valuation for a material, you have to perform the following steps:

1. Enter a valuation category in the valuation area-dependent accounting data of the material and select price control V (moving average price).
   Note

   For a material whose stocks are valuated separately, you can only create the valuation header record with price control V because the individual stock values are cumulated and the total value is updated in the valuation header record.
2. For all specifications, that is, for all valuation types that are to be possible for this material, you must additionally create accounting data for the combination of valuation area and valuation type. At this level, you can then freely choose between price control according to standard or moving average price as well as different valuation classes.
   Hint

   If a valuation category specifies that the valuation type is set automatically, then the system creates the valuation type automatically at the first receipt. Such a valuation category is useful for materials that are handled in batches if individual batch valuations are used.

Every transaction involving valuation, whether it is a goods receipt (GR), goods issue (GI), invoice receipt, or physical inventory, is executed at the partial stock level. When you process these transactions, you must always specify which partial stock is affected. Only one value change occurs for the partial stock affected. The other partial stocks are not affected. In addition to the affected partial stock, the total stock is also updated.

The value of the total stock is calculated from the sum of the stock values and the stock quantities of the individual partial stocks.