MM Inventory Valuation Part 4: Split Valuation and Valuation Types

Key takeaway

Value the same material differently by origin, quality or procurement type: activating split valuation, valuation categories and types, header and type-level accounting data, entering valuation types in POs and movements, batch-level valuation, and common pitfalls.

Explanation

📌 KEY POINTS
✅ Split valuation values partial stocks of one material separately (e.g. domestic vs imported, new vs refurbished).
✅ Valuation category (e.g. by origin) contains valuation types; assigned to plants (valuation areas).
✅ Material has a header accounting record (price control V) and one accounting record per valuation type.
✅ Valuation type must be entered in POs/movements (or derived via batches).
⚠️ Split valuation adds effort for every transaction — use it only with a real business need.

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▶ WHERE WE ARE
Part 3 covered actual costing. Now split valuation.

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▶ 1. ACTIVATION

Split valuation activated globally (configuration).

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▶ 2. CATEGORIES AND TYPES

Global categories/types; local assignment to valuation areas.
Type settings: external/internal procurement allowed, account category reference.

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▶ 3. MATERIAL MASTER

Valuation category on header; accounting view per type.

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▶ 4. TRANSACTIONS

PO item and GR with valuation type; batches can carry valuation type.

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▶ 5. PITFALLS

Missing type records, wrong type chosen, reporting complexity.

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▶ STEP BY STEP

Define category "Origin" with types DOMESTIC and IMPORT.
Create material with both type records.
Post GRs with each type; check values.

✅ CHECKPOINT: stock overview shows separate quantities and values per valuation type.

Code example

ABAP Code

===== STEP 1: configuration (SPRO > MM > Valuation and Account Assignment > Split Valuation) =====Activate split valuation | global category H (origin) | types DOMESTIC, IMPORT | local definitions per plant ===== STEP 2: material =====Accounting 1 header: valuation category H, price control VType records: DOMESTIC (valuation class 3000, price 10.00) | IMPORT (valuation class 3000, price 12.00) ===== STEP 3: transactions =====PO item valuation type IMPORT → GR → stock of type IMPORT | MMBE per type

Real project scenario

A company used split valuation for imported versus domestic materials but let users pick types freely at GR. Imported goods often posted as domestic, understating stock value. Making the valuation type mandatory in POs by source and deriving it via batches removed errors.

Common mistakes

Using split valuation without need.
Missing type records.
Free choice of type at GR.
Confusing reporting.
Forgetting batch integration.

Best practices

Justify split valuation.
Derive types from PO/batch.
Maintain all type records.
Train users.
Report per type.

Interview angle

Questions: "What is split valuation?", "Valuation category vs type?", "How is the type chosen in transactions?"
Strong answer: purpose, activation, categories/types per plant, header and type records, transactions and batches, pitfalls.

Practice this lesson

Quick check

1. Users pick valuation types freely at GR, so imported goods post as domestic. What is the fix?

2. What is a key risk of introducing split valuation without clear need?

3. In split valuation, what does the material's header accounting record hold?

Interview questions

1. A company wants different values for imported and domestic stock of the same material. How do you implement split valuation?

Answer it in your own words first, then compare.

2. What are the most important design decisions, trade-offs, and best practices in Inventory Management, Valuation, Material Ledger and Account Determination?

Answer it in your own words first, then compare.

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Reference-verified: the steps are checked against official SAP documentation and tutorials, and object and field names in the sample code are checked for consistency. The code has not been compiled or run on an SAP system by ERPClimb. Syntax marked release-dependent varies by SAP release, so check it in your own system.