Solution to handle Re-furbished / Repaired Material

Question

Dear MM Gurus
I would be really greatful if someone gives the solution to handle Re-furbished / Repaired Material in Inventory Management, as per below scenario :
1. We have implemented Inventory Management Module on SAP ERP2005 ECC6.0.
2. We have big volume of Spares for maintenance in our Inventory within the stores for examples:  Electric motors, pumps, Values etc. (bulk quantity)
3. Whenever these items e.g. electric motors, pumps or values becomes faulty, then
    (a) these faulty Pumps/Motors are returned to stores department by maintenance dept
    (b) A new pump/Motor is issued to the maintenance department for replacement
4. The Old/Faulty Motors/Pumps are sent outside to vendors for repair / refurbishment.
5. The same item after repaired / refurbished is received by us from vendor.
Problems being faced by us :
Now problems is how to handle the complete scenario e.g. receiving of fault material back to stores (2) Sending these item to outside vendors for repair (3) issue of PO to vendor for repair (4) Receipt of repaired items from Vendors (5) Payment to vendor (6) Tracking of complete process.
Solution Required
(a) System should maintain the stock separately for refurbished material e.g. refurbished
     Motors / Pumps against same Original material code with separate-separate quantities
    and values. We don't want to create separate codes for New and repaired item.
(b) System should provide the separate stock for same items separately i.e.
     (1) For New Material
     (2) For refurbished Material with separate valuations i.e. stock value.
     (3) Material lying with vendor(s) for repairs
(c) While issuing, system should keep a track of material i.e. either new material is
      Issued or against the repaired/refurbished.
(d) Moreover the issue/consumption value should be different according to the use of
      Material i.e. for new material (motors/Pumps) and refurbished material
(e) System should give us the stock list separately for both New & repaired materials
     and with vendor(s) along with its value.
Kindly advise us SAP Best Practice/Practical solution for the above mentioned problem. This is to be noted that we don't have PM Module implemented with us.
With best regards
Anil Bedi

Answer 1

Dear Lakshmi Reddy
Thanks for yours prompt reply.
Is "Split Valuation" the only solution to handle refurbrished items because at this moment it is difficult to implement this solution
due to following reasons :
1. We have more than 9000 mtrl for this category
2. To implement split valuation we have to stock-out these materials,since to activate this there should not be any stock.
3. Then we have to activate the split-valuation against each such types of materials.
4. after that we have to do stocks-in for these materials.
5. We are on SAP from more than 3 years now.
Hence it would be a practical problem for us to go for SPLIT VALUATION.
I would appreciate if you can suggest us another suitable solution
Once again thanks and best regards
Anil Bedi