Material Valuations

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Information about Material Valuations
Education

Published on September 24, 2009

Author: vrs4u

Source: slideshare.net

MATERIAL VALUATIONS IN SAP

Stock value = stock quantity x material price The stock value increases in goods receipt, decreases in goods issue

Valuation area Valuation area is the organizational level in which the material is valuated SAP recommends valuation area at plant level Generally valuation area is already assigned to plant in customizing as default

Valuation area is the organizational level in which the material is valuated

SAP recommends valuation area at plant level

Generally valuation area is already assigned to plant in customizing as default

Valuation area Valuation area in plant level is mandatory for production planning and or product cost accounting Once decided the valuation level in customizing it is difficult to revise

Valuation area in plant level is mandatory for production planning and or product cost accounting

Once decided the valuation level in customizing it is difficult to revise

Valuation class Valuation class is used to determine which stock account need to be updated during goods movement A valuation class is assigned to a material type in customizing Valuation class can also be assigned to several material types

Valuation class is used to determine which stock account need to be updated during goods movement

A valuation class is assigned to a material type in customizing

Valuation class can also be assigned to several material types

Valuation class Valuation class enables to manage the stock of several material in a stock account Valuation class is a mediator to access the General ledger account

Valuation class enables to manage the stock of several material in a stock account

Valuation class is a mediator to access the General ledger account

Standard price Stanard price is a constant price of material. Will not update the price in material master records, after calculation of each and every invoice. The difference in standard price and actual invoice price will be posted to price differences account

Stanard price is a constant price of material.

Will not update the price in material master records, after calculation of each and every invoice.

The difference in standard price and actual invoice price will be posted to price differences account

Standard price Even if standard price selected, system calculates moving average price for analysis Material type determines which valuation procedure is selected We can analyze the price difference account and make necessary changes in standard price based on merit and requirement

Even if standard price selected, system calculates moving average price for analysis

Material type determines which valuation procedure is selected

We can analyze the price difference account and make necessary changes in standard price based on merit and requirement

Moving average price The system calculates price after every movement of the material Updates value in the master records The difference of value if any after procurement, the same is directly posted to the stock account This process will amend the existing price

The system calculates price after every movement of the material

Updates value in the master records

The difference of value if any after procurement, the same is directly posted to the stock account

This process will amend the existing price

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