MM / P2Pintermediate

MM Valuation Part 2: Configuring Valuation Area, Valuation Class and Price Control

Key takeaway

Configure valuation: valuation level (OX14), material type quantity/value updating per valuation area (OMS2), account category references and valuation classes (OMSK), default price control, and the process for adding new valuation classes safely.

Explanation

📌 KEY POINTS
✅ Valuation level (OX14) is set once — plant level is standard and practically irreversible.
✅ OMS2: quantity and value updating per material type and valuation area; default price control.
✅ OMSK: valuation classes linked to material types via account category references.
✅ New valuation classes require OBYC entries and finance approval before use.
⚠️ Changing valuation settings with existing stock creates inconsistencies.

━━━━━━━━━━━━━━━━━━━━
▶ WHERE WE ARE
Part 1 introduced valuation. Now configuration.

━━━━━━━━━━━━━━━━━━━━
▶ 1. VALUATION LEVEL

OX14 plant vs company code.

━━━━━━━━━━━━━━━━━━━━
▶ 2. MATERIAL TYPE SETTINGS

Quantity/value update; price control default; mandatory price control option.

━━━━━━━━━━━━━━━━━━━━
▶ 3. VALUATION CLASSES

Account category reference → allowed classes.

━━━━━━━━━━━━━━━━━━━━
▶ 4. NEW CLASS PROCESS

Define class, assign to reference, OBYC entries, test.

━━━━━━━━━━━━━━━━━━━━
▶ 5. PRICE CONTROL

Default per material type; changes in material master with checks.

━━━━━━━━━━━━━━━━━━━━
▶ STEP BY STEP

Review OX14 and OMS2.
Create a valuation class with its account category reference.
Maintain OBYC and test GR/GI.

✅ CHECKPOINT: a new material type/class combination posts correctly for all movements.

Code example

ABAP Code

===== STEP 1: settings =====OX14: valuation level plant | OMS2: ROH → value update X, quantity update X, price control V (default) ===== STEP 2: valuation classes =====OMSK: account category reference 0001 (ROH) → classes 3000, 3001 | 0009 (FERT) → 7920 ===== STEP 3: new class checklist =====Define class → assign reference → OBYC BSX/GBB/PRD → test 101/201/551/701 → finance sign-off

Real project scenario

A global manufacturing client rolled out a new plant with a new valuation class for regional raw materials but forgot OBYC entries. Goods receipts failed on day one. The team created a checklist for new valuation classes including test movements before go-live.

Common mistakes

Company code valuation level without reason.
Missing OBYC for new classes.
Changing settings with stock.
Too many valuation classes.
No sign-off.

Best practices

Use plant level.
Keep classes meaningful.
Follow a class creation checklist.
Test movements.
Involve finance.

Interview angle

Questions: "Where do you set the valuation level?", "How are valuation classes linked to material types?", "What is needed for a new valuation class?"
Strong answer: OX14, OMS2, OMSK account category reference, new class checklist with OBYC and tests.

Practice this lesson

Quick check

1. Where are allowed valuation classes linked to material types?

2. A team proposes switching the valuation level to company code after go-live. What is the problem?

3. In a new plant rollout, GRs fail because materials have no accounting data. What is missing?

Interview questions

1. A global manufacturer is deciding between company-code-level and plant-level material valuation. Walk through the implications of this decision on the enterprise structure and downstream inventory accounting.

Answer it in your own words first, then compare.

2. A global enterprise is deciding between plant-level and company-code-level valuation for a new business unit with highly volatile intercompany material transfers. What are the architectural trade-offs, and which valuation level would you recommend?