Advantages and disadvantages of Activating Split Valuation

Hi,
Can anyone tell me about the advantages and disadvantages of activating split valuation and how it impact in CO module.

hi,
You need to do a split valuation for a material when you come across any of the below mentioned scenario
1> when there is a difference in country of origin for the material
2> when there are different grades of quality( 1st quality / 2nd quality ) for the same material
3> when the material has to be differentiated between in-house production and external procurement
4> to differentiate between the different deliveries......
when you don activate split valuation ,,
under any case the material will be priced with the same standard price even if its an external procurement at a higher cost.. the values are fetched automatically from the material master,.

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Hello SAP Experts,
What is split valuation and whats is the use of split valuation .
Also can we use split valuation at Material Code level.As we have some material codes that has already been created and which we pocured Localy and import as well.
Also what are the configuration required and once activated how do the system identify that material is local or imported material , while posting any goods movement (101 and others etc.).
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Hi gollu,
Please find process for Split valuation
Valuation category is used if you want to have a split valuation i.e. you have an option of differentiating partial stocks of material according to particular criteria & handling them differently regarding valuation within a plant.
Why Required? : 1)Your valuation of in-house & external procurement may be different
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Active split valuation

Dear all,
For certain material, we did not active split valuation. after goods movement were happened, user would like to active split valuation due to some reasons.
Since there are some PO exist(GR and invoice are completed), even the stock is 0, we can not active split valuation. Does anyone has experience with this?
Rgds,
Ben

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