OMS2 - quantity update vs. value update

Question

Hello MM experts,
Could anyone please explain the difference between quantity update vs. value update - which is selected in what scenario.
We have a new material with 3050 val. class and VERP as item category group. When we created PO, it gave us error as to  'Account Assignment Mandatory'. So I selected quantity update in OMS2 for VERP material type. However, it still gave the error. So, I selected the 'value update'. Now the PO was created successfully. I did not select value initially, since it wasn't selected for any other material type/plant.
Please explain the reason.
Thank you.

Answer 1

Hi Munair,
from accounting perspective any material can be purchased for either  STOCK or for CONSUMPTION
- STOCK implies that material will be kept in inventory and will be managed on Qty and Value basis ( you can see stock qty and value in material master accounting view and in reports like MB52) and subsequent issue will generate an account posting
-  CONSUMPTION means that material's purchase value will be consumed at the time of purchase.
for items which we always want to be consumed at the time of purchase e.g. factory consumable or small items like stationary etc. where we don't want to track them on value basis in accounting  we need to put VALUE update as ' blank'
this will ensure that material can't be brought in to inventory and hence will always ask for account assignment because system wants to know that if its for consumption than against what it will be consumed e.g. cost centre / internal order
it will allow to progress of you use an account assignment and put a cost centre against it.
In your case some companies wants to track packaging on a value basis ( so require value update as X in OMS2)
for others if packaging is too small in terms of value than they prefer not to track this is accounting and somark value update as 'blank' in OMS2)
Hope this clears
Regards
Dheeraj