Valuation Type - Split Valuation

SAP allows material to be valued at plant level. This helps in valuating a given material with different cost based on the procurement / manufacturing cost at the plant. But there are situations when there is a need to have different valuation of a given material even at plant level. A most common example of such a situation is, when the same material is produced in-house as well as externally procured. An externally procured material would obviously have a different price than an in-house produced material. The organization might also want to track the two types of stock separately so as to have a better visibility of the stock in hand. To configure such a business scenario in SAP, split valuation is used. By this, a different valuation type can be assigned to a material which for instance will indicate whether it was in-house produced or externally procured. If split valuation is enabled, any inventory movement transaction should have the valuation type details. By moving material of a specific valuation type, only details of that valuation type are affected. All other valuation types of that material remain unaffected. Configuration Setting: 1. SPRO> Materials Management> Valuation and account assignment> Split Valuation> Activate Split Valuation T Code OMW0 Activate the split valuation and save. 2. SPRO> Materials Management> Valuation and account assignment> Split Valuation> Configure Split Valuation T Code OMWC This is the main screen for split valuation configuration. Click on Global Types to define new valuation types. There will be a list of existing Valuation Categories displayed in the screen. To create a new Valuation Type, click on the Create button. Enter the Valuation Type name and other details as required in the screen. For instance if External Purchase Orders are allowed for this valuation type or not, Account Category Reference etc. Click on CREATE again so that valuation type gets created. Click on Global Categories to define new valuation category. There will be a list of existing Valuation Categories displayed in the screen with respectively assigned valuation classes. To create a new Valuation Category click on the CREATE button. Enter the Valuation Category name and enter the default Valuation Types in this screen if required. Click on CREATE again so that valuation category gets created. Now Activate the Valuation Category. Go to the main screen of the OMWC transaction. Click on the Local Definitions button. This will display the list of all the plants. Select the plant for which you want to activate the above Valuation Category. Place the cursor on that plant and click on Cats. -> OU button. This will then display the list of all the available valuation categories. From this list of all available valuation categories, select the valuation category which you have created just now by placing the cursor on it. Now click on the Activate button to activate it. After doing this, you should be able to see the status as Active under Status column. Click on the SAVE button.

Material Master Setting: 1. Create the material master with material subject to split valuation. Click on the Accounting 1 view of the material master and enter the Valuation Category as applicable. 2. Update the price as Moving Average Price since there will be more than one price for that material. 3. SAVE the material and extend the material for the same plant with the desired valuation type(s).

Re: Product Costing with split valuation

Regarding the split valuation and standard price : The cost estimate is created on the header segment and this is Standard SAP design. If one material has split valuation, standard price will be released only for header segment (valution type blank). You have the possibility to release standard price for in-house production segment, if you set the 'Default'-flag in the customizing transaction for splitted val. (OMWC) for the val. category 'X'. Alternatively you might create a mixed cost estimate to release prices for each procurement alternative that is associated with a val. type. The only way to mark and release a standard costing per valuation type is by using the functionality of mixed costing. That means that you have to define a quantity structure category and define a procurement alternative based on a valuation type of your material. Afterwards you have define a mixing ratio for your material and the defined quantity structure category. Based on this master data (procurement alternatives and mixing ratios) it is possible to carry out a mixed costing, one part of this mixed costing should be a cost estimate based on your valuation type. If you mark and release the mixed cost estimate the system will set the standard price on valuation type level (prerequisite: you have the define the procurement alternative based on the valuation level) Please refer to NOTE 552486 (FAQ): "Question 10: In the case of a split valuation, why can the prices only be updated in the internal segment? Answer:In the initial standard SAP System, only the header segment is calculated and the price is updated only here.However, if the "Valuation type 'in-house production' mandatory" flag is set for the categories in Customizing (Transaction OMWC), it is also possible to update the price in an internal segment.For external segments (procured externally) this does not make any sense in general.However, mixed costings can also be created and updated for several segments via procurement alternatives." Setting this flag will take impact on materials WITH split valuation in the future. New prices will be released for the in-house segment in addition to header segment in TA CK24.

Only price control "V" is possible for split valuation

Meaning that when we have a split valuation activated in MM then for the valuation type blank we can ONLY CHOOSE the valuation type BLANK