Name: Basics of material valuation
Uploaded: 2023-12-6
Duration: 129 s
Description: Get an introduction to material stock valuation and account determination when posting goods movements.

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Introducing Material Stock Valuation

<div id="content"><p tabindex="0">The configuration tasks described in this unit are not specific to any particular solution process, but have an impact on the value posting of each goods movement.</p></div>

Relevancy of this Unit

<div id="content"><div class="parentsection"><div class="section"><div tabindex="0"><h3>Basics of Material Stock Valuation</h3></div><p tabindex="0">Watch the video below for an introduction to material stock valuation.</p><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_gmq3hp5k"></div></div><p tabindex="0">After this introductory video, we will go into the details of stock valuation procedures and account determination.</p></div></div></div>

Introduction to the Material Stock Valuation

Configuring Supply Chain Business Processes in SAP S/4HANA Cloud Public Edition

Get an introduction to material stock valuation and account determination when posting goods movements.

Basics of material valuation

Imagine that you are showing your customer how to post a goods movement, such as a goods receipt for a purchase order. When you post the goods receipt, the system issues a success message with the number of the material document that was posted. You can open the material document. You then see the process flow, in the case of a goods receipt for a purchase order, you first see the reference purchasing document, the material document, and then an accounting document. Accounting documents record value changes resulting from transactions relevant to accounting. They consist of one or more line items, postings, each of which represents a posting to an account. At this point, a participant interrupts you with a comment. Does that mean that when we post goods movement, we also post values? Absolutely. Inventory management ensures that material stocks are controlled by quantity and value. You enter the quantity with every goods movement, for example, for an initial stock receipt, a goods receipt for a purchase order, or a withdrawal for a cost center. The system automatically determines in the background the value of the quantity entered, that is, the amount by which the total stock value is changed. At the same time, the system automatically determines the accounts to be posted to. A goods movement always includes a stock account. It's good that the value update is automatic, but do we have any influence on it? For example, in our company we have different inventory accounts for raw materials and trading goods, sometimes different accounts per plant. Can we control this? Yes, we do have some control over both the value that is posted and the accounts that are updated. Let's start.