SAP S4HANA MM

Split Valuation
 Split Valuation
“Split valuation is the process to evaluate the material in same plant/valuation area with
different values”

Procurement activities in every organization one of the important part is material valuation.
While creating purchase orders, material price is a mandatory field and it is automatically
determined. It happens because material valuation is maintained in the SAP system in material
master.
Material valuation represents integration between MM and FI modules, material valuation is
responsible for the updating of G/L accounts in financial accounting.
Use For certain materials, it is necessary to valuate the various stocks in a particular valuation
area separately. Reasons for this include:
1) Different origins of the material
2) Different grades of quality for the material
3) Different statuses for the material
4) Differentiation between in-house and external procurement
5) Differentiation between different deliveries

Account category
reference (0001)

Valuation (3)Plant Material

Type (Z005) Type (XK01)

Bangalore Material
(180 EUR) (464912)

Hyderabad (1)Valuation
(200 EUR) Category (Y)

Valuation
New Delhi class (3000)
(220 EUR)
Plant Z005
Material 464912 (Aluminum)

Banglore Venodor Hydrabad Vendor New Delhi

180 200 220

For my Mumbai client, Who has a Production facility for HVAC Ducting material they procure
some Raw materials like Aluminum from three different Vendors one is in Bangalore, and
second is at Hyderabad and the third is at New Delhi there is a difference in the quality, delivery
charges, state taxes, due to this reasons price of all three vendors are different and because of
that my client's requirement is to have a different stock account as well as different valuation of
stock for that material this requirement I can fulfill by using split valuation.

PATH FOR Split valuation

STEP-1
Activate Valuation
PATH: SPROMaterials ManagementValuation and account
assignmentSplit valuation Activate Split valuation

Here we have to activate split

valuation for material

STEP-2
Create Global Valuation Category
Valuation Category is the criteria on which material is split valuated.

PATH: SPROMaterials ManagementValuation and account

assignmentSplit valuation Activate Split valuation
Here we can set whether under this
valuation category in-house production
or external procurement mandatory.
STEP-3
Creation of Valuation types
Valuation Type specifies the feature of a category.

Here I need to assign my account category reference,

which will trigger this valuation type for material type.
For Other two valuation Types I have done the same.
STEP-4
Activate Valuation types for Valuation Category

Here I need to activate my

valuation type under valuation
category
Likewise I have activated this with other valuation types.

Step-5
Activate valuation category for Plant Z005

In this step I have

activated valuation
category under my
plant Z005.
 Here we can see that by activating valuation category
automatically valuation types are activated for plant.

STEP-6
Creation of material
T-CODE: MM01

Here I need to assign

valuation category

For Split valuation price

control moving average
price is mandatory.
Extend material to Valuation category T-CODE: MM01
For Valuation category: Banglore-1

For Valuation category: Hydrabad

For valuation category: New Delhi

STEP-7
Creation of Purchase order (ME21N) for Vendor 101046

PO For vendor 101046

price is 180 EUR.

As I have maintained valuation type

for this material, system ask me to
enter the same, but I can decide it
while doing goods receipt.

Posting Goods Receipt (MIGO)

Here while posting Goods

receipt I have enter
valuation type
 PO For vendor 101046

Stock Overview: MMBE

Here we can see same material is

maintained at different valuation type.
Check Valuation in Material Master (MM03)

The same material value is split

because of valuation type according
to which stock will be calculated.

Thanks & Regards,

Akash Hiwale
E:akashhiwale20@gmail.com