SPLIT VALUATION

Split valuation refers to the valuation type on a material master. Typically, organizations will want to track the
material costs, for example, for new, used or repaired stock. The valuation type field on the material master allows
you to track this stock separately, and specify what type of stock is being moved or purchased, and charge
appropriately. There are follow-on effects, of course, in finance account assignments etc.

SAP Split Valuation for Materials

The SAP R/3 System allows you to valuate stocks of a material either together or separately, that is, according to
different valuation criteria. Split valuation is necessary if, for example:

1. Stock from in-house production has a different valuation price than externally procured stock.

2. Stock obtained from one manufacturer is valuated at a different price than stock obtained from another
manufacturer.

3. Different batch stocks of a material have different valuation prices.

4. Value damaged and repair part differently from a new part.

To use split valuation, you have to activate it using 'OMW0'.

To change split material valuation once it has been set, you must

1. First post out all stocks (for example, to a cost center or with movement type 562)
2. Then change the control parameters
3. If necessary, change the automatic account determination
4. Finally post the stocks back in again

In split valuation, you can distinguish between partial stocks of a material according to certain criteria and valuate
them separately.

The material stock is divided according to valuation category and valuation type.

The valuation category determines how the partial stocks are divided, that is, according to which criteria.

The valuation type describes the characteristics of the individual stocks.

With the function "Setting" you can determine:

which valuation categories exist in your company (global categories)
which valuation types exist in your company (global types)
which valuation types belong to which valuation category
which valuation categories exist in a valuation area (local categories)

Your entries are only relevant if you set split valuation as active in the function "Global settings".

In the standard SAP R/3 System, the following valuation categories are default settings:

B procurement type

with the valuation types:

"EIGEN" for in-house production
"FREMD" for external procurement

H Origin

X automatic valuation (only for batch)

To select split valuation ('OMWC'), proceed as follows:

1. Determine the valuation categories and valuation types that are allowed for all valuation areas:
global valuation categories via menu "Goto --> Global Categories"
global valuation types via menu "Goto --> Global Types"

2. Allocate the valuation types to the valuation categories.
a) Select "Goto --> Global Categories".
b) Position the cursor on a valuation category and select
"Goto --> Global Categories --> Assignments --> 'Types->Category'".
c) Activate the valuation types you want.

3. Determine the local valuation categories for each valuation area.
a) Select "Goto --> Local definitions".
b) Position the cursor on a valuation area and select
"Goto --> Local Definitions --> Allocate Categories->Org.units (button Cats->(OU)".
You obtain a list of the global valuation categories.
c) Activate the categories to be used in this valuation area.
The system creates the local valuation types based on the allocations under point 2.
Only now can you create a master record with split valuation.

Specifying Split Valuation by creating Material Subject to Split Valuation

1. Create a material master record, selecting the Accounting View 1.
2. Enter your data as required on the Accounting data screen, specifying a valuation category.
(If you can't find the valuation category field, it might be hidden, use OMSR to define the Field Groups.
Look for the field MBEW-BWTTY for Valuation category).
3. Be sure that the price control indicator is V for moving average price and enter a moving average price.
4. In the case of split valuation, you can create only one valuation header record with price control V because the
individual stock values are cumulated, and this total value is written to the valuation header record. This is where
the
individual stocks of a material are managed cumulatively. To do this, fill in the Valuation category field on the
accounting
screen when you create the material master record and leave the Valuation type field blank.
5. Save your data and the system creates the valuation header record.
6. The initial screen appears.
7. Extend the material by creating new material master records from the Accounting view 1. For the first material,
specify a
valuation type in the Organizational Levels dialog box and enter the respective accounting data on the data screen.
Proceed likewise for the other materials, distinguishing between them by valuation type. To do this, call up the
material in
creation mode again. Due to the fact that a valuation header record exists, the system requires you to enter a
valuation
type for the valuation category.
8. Repeat step seven for every valuation type planned.

You want to valuate the stock of material XYZ that you obtain from manufacturer A in Los Angeles at a different
price than the stock you obtain from manufacturer B in Detroit. In this case, the valuation category is H for origin.
Your valuation types can be LOS ANGELES and DETROIT.

If a material is subject to split valuation, every quantity (sub-stock) of this material must be assigned to a valuation
type (for example, country of origin).

For every valuation type, there are two types of data in the system, as follows:

Valuation data (for example, valuation price, total stock quantity, total stock value), which is defined for every
valuation type at valuation-area level and applies to all dependent storage locations.

Stock data, which, like batch data, is managed separately for each storage location. If a material that is subject to
split valuation is also subject to management in batches, its stock data is not managed by valuation type, but rather
by batch. Every batch is assigned to a valuation type.

The stock quantity, stock value, and valuation price for all valuation types are managed cumulatively at valuation-
area level.

Must the Valuation Type Exist Before the First Goods Receipt?

You can post the goods receipt of material of a certain valuation type only if the valuation data for this valuation
type already exists, because the system valuates the goods receipt at the price defined in the valuation data. On the
other hand, the stock data for the valuation type is created automatically during the first goods receipt into the
storage location, if this is defined in Customizing for Inventory Management.

Goods Movements with Materials Subject to Split Valuation

If you want to enter goods movements for materials subject to split valuation, you must enter the valuation type in
addition to the material number.

Enter the valuation type in the Batch field for MB01.

In MIGO, there is a valuation type field in Detail data -> Material.

------ end----------

SPLIT VALUATION BY WILLEM HOEK
This notes relates to SAP ECC (ERP Central Component) 5.0

Without split valuation, materials are valued at plant level.
With split valuation, the same material number at a plant can have different stock quantity and value for
different groupings (called valuation types).

The valuation types are set up in configuration could be for example:
New, old or
GB, US, AU, ... (indicating countries for example)
Red, blue, black, etc.... (Indicating colors for example)
The valuation types are grouped together in a valuation category
So for example, the above valuation types could be grouped by age, country, color.

A material is activated by entering the valuation type in the accounting view of the material master.

IMPORTANT: It is possible to change a valuation category if no stock and PO were created. However, once
a Valuation category is assigned -- it cannot be un-assigned (make blank again). So it is not something that
gets changed at will. It needs to be decided on creation of material.

Steps to set it up

CONFIGURATION
1. Activate Valuation
2. Create Valuation Category
3. Create Valuation Types
4. Link Categories > Types
5. Link valid Valuation Categories to Plant

MASTER DATA
1. Activate Split valuation for a material
(Add Valuation Category in material master)
2. Create Accounting views for every valuation type
Using Split Valuation in transactions
1. Create Purchase Order
2. Goods Receipt / Goods Issue
3. Physical Inventory
4. Stock Overview
-------------DETAIL------------------

In this example we want to group material in the same plant based on AGE (valuation category).
We will have two "groups" (valuation types): OLD and NEW.

Configuration
IMG: Material Management > Valuation > Split Valuation

1. Activate Valuation - tcode OMW0


Configure Split Valuation - tcode OMWC


2. Create Valuation Category
Select: Global Categories


The Ext Mandatory option will force users to enter a valuation type in purchase orders.
Select: Create (to save)


3. Create Valuation Types
Select: Global Types > Create


Select: Create (to save)

The Purchase Orders attributes option indicate if PO's are allowed or not.
1 - Not allowed
2 - Allowed but with warning
3 - Allowed

The account category reference determines what GL valuation classes will be allowed.

4. Link Categories > Types
Select: Global categories (from main config menu)
Select: Valuation Category
Select: Types > cat.


Activate valid valuation categories


5. Link valid Valuation Categories to Plant
Select: Local Definitions (from main config menu)
Select: Plant to use
Select: Cats -> OU
Select: Valuation Category and press Activate



ACTIVATE MATERIAL MASTER

1. Activate Split valuation for a material
(Add Valuation Category in material master)
Material Master create - MM01


NOTE: It is only possble to change a material (valuation category) if no stock and PO were created. So it is
not something that get changed at will. It needs to be decided on creation of material.

2. Create Accounting views for every valuation type - MM01





USING SPLIT VALUATION IN TRANSACTIONS

1. Create Purchase Order - ME21N


2. Goods Receipt / Goods Issue - MIGO


4. Physical Inventory - example MI10

Note that the batch field is used!

5. Stock Overview - MMBE



--------------- END OF DOCUMENT -----------





Split Valuation
Use
For certain materials, it is necessary to valuate the various stocks in a particular valuation area separately.
Reasons for this include:
Different origins of the material
Different grades of quality for the material
Different statuses for the material
Differentiation between in-house production and external procurement
Differentiation between different deliveries
Features
If a material is subject to split valuation, the material is managed as several partial stocks, each partial stock
is valuated separately.
Each transaction that is relevant for valuation, be it a goods receipt, goods issue, invoice receipt or physical
inventory, is carried out at the level of the partial stock. When you process one of these transactions, you
must always specify which partial stock is involved. This means that only the partial stock in question is
affected by a change in value, the other partial stocks remain unaffected.
Alongside the partial stocks, 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 stocks.
You define whether the material is subject to split valuation on the accounting view of the material master
record. There are two fields for this:
The valuation category specifies which criterion should be used as the basis for differentiating
between the various partial stocks.
The valuation type specifies an individual characteristic of a partial stock.
Valuation Category
Use
The valuation category specifies which criterion should be used as the basis for differentiating between the
various partial stocks.
The standard system contains several default valuation categories, for example:
B
o for procurement type
o The stock is divided up according to whether the material is manufactured in-house or
procured externally.
H
o for origin
o The stock is divided up according to where it was delivered from.
Prerequisites
The system administrator can set up additional valuation categories in Customizing. For each valuation
category you must define which valuation areas it is valid in.


Features
Every material subject to split valuation is assigned to a valuation category in the material master record. The
material can then be managed using the valuation types defined for this valuation category.
The valuation category X is a special case: no valuation types are predefined for this category. At goods
receipt, a batch is created for the material entered. This also serves as its valuation type. This makes it
possible to valuate every goods receipt separately, for example, by using the order number as the valuation
type.
In the case of partial deliveries for a purchase order, you can only valuate each partial delivery separately if
goods-receipt-based Invoice Verification has been defined in the purchase order (the field GR based IV must
be selected on the order item screen). If goods-receipt-based Invoice Verification has not been defined, the
valuation type that you enter for the first partial delivery is binding for the following partial deliveries.
Valuation Type
Use
There are valuation types for each valuation category, which specify which individual characteristics exist for
that valuation category. If you give the valuation types meaningful keys, each valuation type in some way
represents the name of a sub-stock.
Fixed valuation types are defined in the system for each valuation category except valuation category X.
Prerequisites
In Customizing, the system administrator can define as many valuation types as required. Each valuation type
must be assigned to a valuation category.
Features
The following graphic shows three examples of split valuation.

Example 1:
You procure a material both from in-house production and from external vendors. You want to valuate the
stocks from each source separately. In this case, you select Procurement type as the valuation category (B)
and Internal and External as valuation types.
Example 2:
You procure a material from several countries. You want to valuate the stocks from each country separately.
In this case, you select Origin as the valuation category (H). As valuation types, you define the relevant
countries, for example, Italy and France.
Example 3:
You procure a material in different grades. You want to valuate the stocks of each class separately. In this
case, you select Quality as the valuation category (Q). As valuation types, you could define A, B, C, and D.
Creating Material Subject to Split Valuation
First create a valuation header record for this material. This is where the individual stocks of a material
are managed cumulatively.
To do this, fill in the Valuation category field on the accounting screen when you create the material master
record and leave the Valuation type field blank. In the Price control field, enter V (moving average price),
since a moving average price is constructed in the valuation header record from the values and quantities of
the individual stocks. When you save, the system creates the valuation header record.
Then create the material for a valuation type.
To do this, call up the material in creation mode again. Due to the fact that a valuation header record exists,
the system requires you to enter a valuation type for the valuation category.
Repeat step two for every valuation type planned.
Stocks Subject to Split Valuation
The stocks of a material subject to split valuation are managed separately for each valuation type. They are
cumulated in the valuation header record: This is where all the individual stock quantities and stock values are
added together and managed. A moving average price is calculated from the values of the various valuation
types and the stock quantities.
The following graphic shows an example of split valuation:

Material 1 is managed separately according to origin (valuation category H). The valuation types Italy and
France have stocks. The fact that these stocks are in different storage locations is not important for valuation.
In the valuation header record, the separate stocks are cumulated:
The total stock in the plant is 100.
The moving average price is calculated from valuation of the individual stocks:
Average price = total value / total quantity
Value Italy: 40 x 4.00 = 160.00
Value France: 60 x 6.00 = 360.00
Total value: = 520.00
Average price: 520.00 / 100 = 5.20
Actions for changing split material valuation
To change split material valuation once it has been set, you must
1. First post out all stocks (for example, to a cost center or with movement type 562)
2. Then change the control parameters
3. If necessary, change the automatic account determination
4. Finally post the stocks back in again

Split Valuation with Batches
Use
You use split valuation for batches if within value-based inventory management you want to separate
costs for externally processed batches from costs for internally processed batches, and you want to store the
prices and values for groups of batches.
Integration
Split valuation for batches works on the same principle as the differentiation of partial stocks according to their
origin, for example. In the split valuation procedure, you choose one valuation type for a batch.
Features
Changing the Valuation Type
If you change the valuation type in the batch master record, the system does not change the valuation type in
the movement data (for example, purchase order, delivery, order, and so forth). Also refer to
Changing the Batch Master).
When changing the valuation type, you must check whether the batch is contained in the movement data of
business processes that are still open. Otherwise, the business process affected cannot be closed.
Upon Goods receipt and goods issue of a batch, the system checks whether the valuation type from the
respective document is identical to that of the stock to which the batch is to be posted.
If the valuation types are different:
The goods receipt is rejected
o For the purchase order
o For the shipping notification
o For the production order
The goods issue is rejected
o For the delivery
o For the sales order
The reversal movement types cannot be carried out either.
There are two ways of closing these business processes:
You cancel the change you made to the valuation type, close the business process,
and change the valuation type again.
You post the materials to a batch that has the same valuation type as the document,
and then change the valuation type.
During Invoice verification (purchase-order-based and goods-receipt-based) and order settlement (for a
production order) the system copies the original valuation type.

You cannot change the valuation type if the batch is valuated on the basis of batch-specific
units of measure and a price already exists for a characteristic that is relevant to valuation.
Configure Split Valuation
In split valuation, you can distinguish between partial stocks of a material according to certain criteria and
valuate them separately.
The material stock is divided according to valuation category and valuation type:
The valuation category determines how the partial stocks are divided, that is,
according to which criteria.
The valuation type describes the characteristics of the individual stocks.
With the function "Setting" you can determine:
which valuation categories exist in your company (global categories)
which valuation types exist in your company (global types)
which valuation types belong to which valuation category
which valuation categories exist in a valuation area (local categories)
Requirements
Your entries are only relevant if you set split valuation as active in the function "Global settings".
Default settings
In the standard SAP R/3 System, the following valuation categories are preset:
B procurement type
with the valuation types:
"EIGEN" for in-house production
"FREMD" for external procurement
H Origin
X automatic valuation (only for batch)
Actions
To select split valuation, proceed as follows:
1. Determine the valuation categories and valuation types that are allowed for all valuation
areas:
global valuation categories via menu "Goto --> Global Categories"
global valuation types via menu "Goto --> Global Types"
2. Allocate the valuation types to the valuation categories.
a) Select "Goto --> Global Categories".
b) Position the cursor on a valuation category and select "Goto --> Global Categories -->
Allocations --> Types->Category".
c) Activate the valuation types you want.
3. Determine the local valuation categories for each valuation area.
a) Select "Goto --> Local definitions".
b) Position the cursor on a valuation area and select "Goto --> Local Definitions --> Allocate
Categories->Org.units". You obtain a list of the global valuation categories.
c) Activate the categories to be used in this valuation area.
The system creates the local valuation types based on the allocations under point 2.
Only now can you create a master record with split valuation.
Activate Split Valuation
In this step, you configure whether split valuation is allowed at your company.
If you generally allow split valuation, this does not mean that you must valuate each material on this basis.
You decide whether to do so or not for a particular material when creating the material master record.
Note
A lot of effort is required to change this setting once it has been
made.
(Actions for changing split material valuation)
Default settings
In the standard SAP R/3 System, split valuation is set so that it is active.
Activities
Set split valuation.
Notes on transport
In this step, you maintain the table TCURM. This table activates/deactivates key functions in the client. It:
Defines the valuation level (plant / company code)
Activates the Late material block
Activate Split valuation
Since the automatic transport of an indicator could activate/deactivate other functions, you cannot use the
automatic transport function here.
Maintain the Customizing function manually in the target system.
For the first Customizing transport to a target system that is not yet productive, you can transport the table
manually. To do this, you must include the entry R3TR TABU TCURM in the transport request.
How Split Valuation Is Controlled
Use
Valuation is controlled by three factors:
Valuation category
Valuation type
Valuation class
Valuation categories are set up in Customizing to determine whether split valuation of a particular article is
allowed for each valuation area (usually a store or distribution center). Each category can have one or more
valuation types assigned to it.
Valuation category R, for example, enables split valuation to occur automatically for two types of stock:
promotion stock and normal stock. Valuation of an article occurs at the type level.
For a given article, you assign a valuation category and valuation class in the article master record for each
store that stocks that article. The valuation category determines which valuation types are valid for that article
in that store; for example, for category R, the only valid types are promotion stock and normal stock. The
valuation class (defined in Customizing) determines the General Ledger account for the article.
Click here for an example of how valuation categories and types can be used.

Depending on your setup in Customizing, a store may have more than one valuation category.
If an article in a given store has valuation category R and is assigned to a promotion module, it will be valued
as a promotion article and the value posted accordingly. After the promotion is over, the valuation will revert to
normal (no split valuation).
Split Valuation and Inventory Management for
Promotions
Use
When purchase orders are created, the system checks to see whether the article is assigned to a promotion.
If so, it proposes the default valuation type (for example, promotion or normal) based on the valuation
category in the article master record and the valuation types assigned to it in Customizing for Material
Management. However, this can be overridden (changed to normal, or no split valuation) if the purchasing
agent determines that the vendor cannot supply the article at the reduced purchase price.
When goods are received into the warehouse, values are posted to the appropriate General Ledger account
(normal or promotion) depending on the valuation type.
For clearance sales of current inventory (as opposed to promotions where merchandise is specially ordered),
your entire inventory of the articles involved should be revalued as promotion merchandise (rather than
normal merchandise) prior to the start date of the promotion.
For stock transport orders, articles will be revalued according to the valuation category for those articles in the
receiving site.
Split Valuation Example
This example demonstrates split valuation for a single site. As goods are received, they are assigned to either
promotion or normal stock based on the purchase orders, and the inventory is reevaluated accordingly.
Likewise, with each sale, inventory for the corresponding type of stock is reevaluated.
For normal stock, the purchase price is $10 and the sale price is $15.
For promotion stock, the purchase price $8 and the sale price is $12.
Goods movement Inventory and
value of normal
stock
Inventory and value
of promotion stock
Total value
of all stock
Revenue
posting
Starting inventory 1,000 articles
@ $10 = $10,000
1000 articles
@ $8 = $8,000
$18,000
100 articles received into
normal stock
1,100 articles
@ $10 = $11,000
$8,000 (no change) $19,000
100 articles received into
promotion stock
$11,000 (no
change)
1,100 articles
@ $8 = $8,800
$19,800
500 articles sold at normal
price
600 articles
@ $10 = $6,000
$8,800 (no change) $14,800 500 articles
@ $15 =
$7,500
500 articles sold at
promotion price
$6,000 (no change) 600 articles
@ $8 = $4,800
$10,800 500 articles
@ $12 =
$6,000
Promotion finished;
promotion stock moved to
normal

or

promotion stock returned
to vendor
1,200 articles
@ $9 = $10,800
(moving ave. price)


600 articles
@ $10 = $6,000
0





0
$10,800





$6,000













Step-By-Step Procedure Of Configuring Split-Valuation
http://www.gotothings.com/mm/step-by-step-procedure-of-configuring-split-valuation.htm

SAP Configuration ==> SAP Material Management
To used split valuation, you have to activate it using 'OMW0'.
To change split material valuation once it has been set, you must
1. First post out all stocks (for example, to a cost center or with movement type 562)
2. Then change the control parameters
3. If necessary, change the automatic account determination
4. Finally post the stocks back in again
In split valuation, you can distinguish between partial stocks of a material according to certain criteria and valuate them
separately.
The material stock is divided according to valuation category and valuation type.
The valuation category determines how the partial stocks are divided, that is, according to which criteria.
The valuation type describes the characteristics of the individual stocks.
With the function "Setting" you can determine:
- which valuation categories exist in your company (global categories)
- which valuation types exist in your company (global types)
- which valuation types belong to which valuation category
- which valuation categories exist in a valuation area (local categories)
Your entries are only relevant if you set split valuation as active in the function "Global settings".
In the standard SAP R/3 System, the following valuation categories are default settings :
B procurement type
With the valuation types:
"EIGEN" for in-house production
"FREMD" for external procurement
H Origin
X automatic valuation (only for batch)
To select split valuation ('OMWC'), proceed as follows:
1. Determine the valuation categories and valuation types that are allowed for all valuation areas:
- global valuation categories via menu "Goto --> Global Categories"
- global valuation types via menu "Goto --> Global Types"
2. Allocate the valuation types to the valuation categories.
a) Select "Goto --> Global Categories".
b) Position the cursor on a valuation category and select
"Goto --> Global Categories --> Assignments --> 'Types->Category'".
c) Activate the valuation types you want.
3. Determine the local valuation categories for each valuation area.
a) Select "Goto --> Local definitions".
b) Position the cursor on a valuation area and select
"Goto --> Local Definitions --> Allocate Categories->Org.units (button Cats->(OU)".
You obtain a list of the global valuation categories.
c) Activate the categories to be used in this valuation area.
The system creates the local valuation types based on the allocations under point 2.
Only now can you create a master record with split valuation.
Specifying Split Valuation by creating Material Subject to Split Valuation
1. Create a material master record, selecting the Accounting View 1.
2. Enter your data as required on the Accounting data screen, specifying a valuation category.
(If you can't find the valuation category field, it might be hidden, use OMSR to define the Field Groups.
Look for the field MBEW-BWTTY for Valuation category).
3. Be sure that the price control indicator is V for moving average price and enter a moving average price.
4. In the case of split valuation, you can create only one valuation header record with price control V because the
individual stock values are cumulated, and this total value is written to the valuation header record. This is where the
individual stocks of a material are managed cumulatively. To do this, fill in the Valuation category field on the
accounting screen when you create the material master record and leave the Valuation type field blank.
5. Save your data and the system creates the valuation header record.
6. The initial screen appears.
7. Extend the material by creating new material master records from the Accounting view 1. For the first material,
specify a valuation type in the Organizational Levels dialog box and enter the respective accounting data on the data
screen.
Proceed likewise for the other materials, distinguishing between them by valuation type. To do this, call up the material
in creation mode again. Due to the fact that a valuation header record exists, the system requires you to enter a valuation
type for the valuation category.
8. Repeat step seven for every valuation type planned.
You want to valuate the stock of material XYZ that you obtain from manufacturer A in Los Angeles at a different price
than the stock you obtain from manufacturer B in Detroit. In this case, the valuation category is H for origin. Your
valuation types can be LOS ANGELES and DETROIT.
If a material is subject to split valuation, every quantity (sub-stock) of this material must be assigned to a valuation type
(for example, country of origin).
For every valuation type, there are two types of data in the system, as follows:
Valuation data (for example, valuation price, total stock quantity, total stock value), which is defined for every valuation
type at valuation-area level and applies to all dependent storage locations.
Stock data, which, like batch data, is managed separately for each storage location. If a material that is subject to split
valuation is also subject to management in batches, its stock data is not managed by valuation type, but rather by batch.
Every batch is assigned to a valuation type.
The stock quantity, stock value, and valuation price for all valuation types are managed cumulatively at valuation-area
level.
Must the Valuation Type Exist Before the First Goods Receipt?
You can post the goods receipt of material of a certain valuation type only if the valuation data for this valuation type
already exists, because the system valuates the goods receipt at the price defined in the valuation data. On the other hand,
the stock data for the valuation type is created automatically during the first goods receipt into the storage location, if this
is defined in Customizing for Inventory Management.
Goods Movements with Materials Subject to Split Valuation
If you want to enter goods movements for materials subject to split valuation, you must enter the valuation type in
addition to the material number.
Enter the valuation type in the Batch field for MB01.
In MIGO, there is a valuation type field in Detail data -> Material.
Split Valuation
Introduction
Split Valuation In the normal course of business there is a strong need for sub-division of material stock based on
certain criteria. Some of the common criteria are defined as follows, but there may be more or less per the business
process at Client Level.
Source of Supply may be different
Types of Procurement- Internal or External
Quality of the material may be different
Statutes of the material may be different
Differentiation based on different deliveries
Differentiation based on batch management
Once the stock has been sub divided, now the business may be interested to valuate these sub stocks based on the
different criteria. So in SAP we map this requirement by using Split Valuation (which means valuating a material as
several sub stocks separately.) It may be required for certain materials or all, per the client requirement.
Based on split valuation, we can monitor each transaction of these sub stocks and capture the actual value of the material
which is affected by the movement of any goods.
Before creating a material Master Record, the business has to decide whether the material is subject to split valuation or
not. If it is subject to split valuation, then it needs to be defined on the accounting view of the material master record
under the field valuation category.
Now we can divide the material stock according to valuation category and valuation type. The valuation category
determines how the partial stocks are divided, that is, according to which criteria. And the valuation type describes the
characteristics of the individual stocks. If our material is batch managed then we need not maintain it at valuation type
level. The only thing we have to assign is the appropriate valuation category. In this case the batch number itself will be
treated as the valuation type for all purposes.
How to Configure Split Valuation After activating the split material valuation, we need to configure the same in SPRO
under the node configure the split valuation. It is divided in the same way as follows:
Global Types (Valuation Types)
Global Categories (Valuation Categories)
Local categories (Valuation Area)
In SPRO we can determine or create the following settings per our requirements:
Which valuation categories exist in your company (global categories)
Which valuation types exist in your company (global types)
Which valuation types belong to which valuation category
Which valuation categories exist in a valuation area (local categories)
http://sapmmsolutions.blogspot.in/2011/09/configuring-split-valuation.html

Configuring Split Valuation
Business Requirement:- We have a material which is manufactured and same material is also procured at that time the
value will be different and we need to identify it for that we can use split valuation.
If the material Purchased locally and the same material is imported then also we can use split valuation.
Here we are doing the Configuration based on Country of Origin (Domestic & Import)
Configuration Steps
1. Activate Split Valuation
Menu Path SPRO Materials Management Valuation and Account Assignment Split Valuation
Activate Split Valuation
Transaction Code OMW0




2. Configure Split Valuation
Menu Path SPRO Materials Management Valuation and Account Assignment Split Valuation
Configure Split Valuation
Transaction Code OMWC




Click on

Valuation Type :- Uniquely identifies separately valuated stocks of a material. If a material is valuated according to
its origin (valuation category H), you can define the possible countries of origin as valuation types.




Click Create




Go back and click Global Categories
Valuation Category :-Determines whether stocks of the material are valuated together or separately



Select H and click




Select the LAND 1 and Click Activate like do for LAND 2 also.
Save
Now go back to initial Screen and click Local Definitions



Select our Plant 0001 and Click



Select H and Click Activate and save.
Now you have to maintain Material Master (Which I will explain in next post with end user manual)