Valuation Type - Split Valuation

SAP allows material to be valued at plant level. This helps in valuating a given material with different cost based on the procurement / manufacturing cost at the plant. But there are situations when there is a need to have different valuation of a given material even at plant level. A most common example of such a situation is, when the same material is produced in-house as well as externally procured. An externally procured material would obviously have a different price than an in-house produced material. The organization might also want to track the two types of stock separately so as to have a better visibility of the stock in hand.

To configure such a business scenario in SAP, split valuation is used. By this, a different valuation type can be assigned to a material which for instance will indicate whether it was in-house produced or externally procured.

If split valuation is enabled, any inventory movement transaction should have the valuation type details. By moving material of a specific valuation type, only details of that valuation type are affected. All other valuation types of that material remain unaffected.

Configuration Setting:

1. SPRO> Materials Management> Valuation and account assignment> Split Valuation> Activate Split Valuation – T Code OMW0
Activate the split valuation and save.

2. SPRO> Materials Management> Valuation and account assignment> Split Valuation> Configure Split Valuation – T Code OMWC
This is the main screen for split valuation configuration.

• Click on “Global Types” to define new valuation types.
  There will be a list of existing Valuation Categories displayed in the screen. To create a new Valuation Type, click on the ‘Create’ button. Enter the Valuation Type name and other details as required in the screen. For instance if External Purchase Orders are allowed for this valuation type or not, Account Category Reference etc. Click on ‘CREATE again so that valuation type gets created.
  
• Click on “Global Categories” to define new valuation category.
  There will be a list of existing Valuation Categories displayed in the screen with respectively assigned valuation classes. To create a new Valuation Category click on the CREATE button. Enter the Valuation Category name and enter the default Valuation Types in this screen if required. Click on ‘CREATE again so that valuation category gets created.
  
• Now Activate the Valuation Category. Go to the main screen of the OMWC transaction. Click on the ‘Local Definitions’ button. This will display the list of all the plants. Select the plant for which you want to activate the above ‘Valuation Category’. Place the cursor on that plant and click on ‘Cats. -> OU’ button. This will then display the list of all the available valuation categories. From this list of all available valuation categories, select the valuation category which you have created just now by placing the cursor on it. Now click on the ‘Activate’ button to activate it. After doing this, you should be able to see the status as ‘Active’ under Status column. Click on the SAVE button.

Material Master Setting:

1. Create the material master with material subject to split valuation. Click on the ‘Accounting 1’ view of the material master and enter the ‘Valuation Category’ as applicable.

2. Update the price as Moving Average Price since there will be more than one price for that material.

3. SAVE the material and extend the material for the same plant with the desired valuation type(s).