Segmentation - Valuation Types
Material ledger (ML): It helps to calculate actual cost for materials and also provide the facility of multiple parallel valuations in multiple currencies. ML has two major functionalities, first to calculate actual cost of materials, semi/finished goods, and second provide an opportunity to calculate actual cost on multiple valuation such as Legal, Group, & Profit center valuation.
ML data forms the basis of actual costing and is used to manage valuation prices in multiple currencies and valuations. Consequently, material ledger data supplements the material master record. In addition, material ledger data can refer to materials that are part of sales order stock and project stock.
For SAP S/4HANA for fashion and vertical business, the material has been integrated in material master for distribution channels and stores. The ML related entries (fields) are displayed in the material master only if ML is activated for a particular DC/store. If you have maintained the Moving price, Standard price & Future price values in the standard accounting screens before navigating to any of the ML enabled plants, then these values are copied to the ML fields.
Split Valuation: For certain materials, it is necessary to individually valuate the various stocks in a particular valuation area. If a material is subject to split valuation, then the material is managed as several partial stock and each partial stock is valuated separately.
Every transaction that is relevant for valuation, be it a goods receipt, goods issue, invoice receipt or physical inventory, is executed at the level of the partial stock. When you process one of these transactions, you must always specify which partial stock is involved. This is to ensure that only the partial stock in question is affected by a change in value, the other partial stocks remain unaffected. Along with the partial stock, the total stock is also updated. The calculation of the value of the total stock results from the total of the stock values and stock quantities of the partial stock. Using split valuation, separate valuation of partial quantities of a material can be carried out.