Name: Introduction to Split Valuation
Uploaded: 2024-1-9
Duration: 127 s
Description: Get an introduction to split valuation in SAP S4HANA Cloud, public edition.

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Introducing Split Valuation

<div id="content"><p tabindex="0">The configuration tasks described in this unit are not specific to a particular solution process, but allow you to valuate partial stocks of a material separately within a storage location.</p></div>

Relevancy of this Unit

<div id="content"><div class="parentsection"><div class="section"><p tabindex="0">Watch the video below for an introduction to split valuation.</p><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_3q6cy50q"></div></div><p tabindex="0">After this introductory video, we will go into the details of how to configure split valuation.</p></div></div></div>

Split Valuation

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

Get an introduction to split valuation in SAP S4HANA Cloud, public edition. 

Introduction to Split Valuation

Now that you have explained the basic principles of stock valuation and account determination for goods movements, imagine that a customer asks you the following questions. If I understand you correctly, in SAP S4HANA Cloud Public Edition, we specify the valuation price and valuation procedure per material and plant. That's correct. I just had a thought. In our company, depending on our workload, we either purchase certain semi-finished products such as forks for the forklifts we manufacture, or we make them ourselves, and we valuate the forks differently depending on whether they are purchased or produced. The quantities produced are valuated using a standard price, while those purchased are valuated using the moving average price in order to reflect the purchase price. Does this mean that in SAP S4 HANA Cloud Public Edition we need to have two different product master records for the purchased and the self-produced forks? That's a very good question. And fortunately, the answer is no. You don't need to create two product master records in this case. You want to valuate partial stocks of a material, in your example, the fork, differently depending on certain criteria, in your case, the procurement type. SAP S4HANA Cloud provides split valuation for just such a requirement. This is good news. Is split valuation available in the standard system? Do you have to activate it? Yes, to use split valuation you must enable and configure it in most cases. I suggest that we go to your configuration environment and configure split valuation to meet your needs.