Valuaiton Class

Question

Hello freinds,
What is the purpose of Valuation class? Can we assign n no. of gl accounts to the same valuation class and can we create n no. of valuation classess and can we assign no of valuation classess to the same material master.
1. We have 5 general modifiers, 5 valuation classess and 5 gl accounts. Can we assign these 5 gl accounts to same general modifier with same valuation class.
2. Say for ex: i have assigned valuation class 1200 in the material master and 1300 in the OBYC. While posting MIGO and MIRO which one will pick the system i.e., from OBYC or Material master?
Can anybody pl elabrote on this and what is the impact on financial accounting and controlling?
adv thanks
vk
Edited by: VK on Sep 8, 2008 10:51 AM

Answer 1

Hello freinds,
What is the purpose of Valuation class? Can we assign n no. of gl accounts to the same valuation class and can we create n no. of valuation classess and can we assign no of valuation classess to the same material master.
1. We have 5 general modifiers, 5 valuation classess and 5 gl accounts. Can we assign these 5 gl accounts to same general modifier with same valuation class.
2. Say for ex: i have assigned valuation class 1200 in the material master and 1300 in the OBYC. While posting MIGO and MIRO which one will pick the system i.e., from OBYC or Material master?
Can anybody pl elabrote on this and what is the impact on financial accounting and controlling?
adv thanks
vk
Edited by: VK on Sep 8, 2008 10:51 AM
Hi,
Valuation Class is the one from Materials, which forms a link with the GL account of FI.
Answer b: Yes, we could assign n no. of gl accounts to one valuation class. But, we have to be very careful when assigning the GL accounts to the Valuation class. The reason being afterall, we are asking the system to pick up the GL accounts automatically for certain transactions.
Valuation classes can be like this: eg:1000 for Raw materials, if you dont have any demarcation, then any kind of Raw Material G/L accounts would be assigned to 1000 valuationclass.
However for demarcation, if we have defined 1000 for RM - Local, 1001 for RM - imported, 1002 for RM - Traded, then in such case we would need to define 3 different GL accounts whihc would be assigned to the relevant Valuation classes.
1. We have 5 general modifiers, 5 valuation classess and 5 gl accounts. Can we assign these 5 gl accounts to same general modifier with same valuation class.,
for the above questions of yours, i would need to check before i would give you the  info.
2. Say for ex: i have assigned valuation class 1200 in the material master and 1300 in the OBYC. While posting MIGO and MIRO which one will pick the system i.e., from OBYC or Material master?
   first of all why would you give 1200 in Material master and 1300 in OBYC, the reason for that question is 1200 say for eg is valuation class for traded goods, and 1300 is for finished goods, then there would be a contradiction.
MIGO, MIRO transactions would take the information from OBYC, first and later would look at Material Master.
In a very broad way, as an example we could compare FI's GL account Groups to Valuation class and the part codes of material master to each GL account (different part codes make a material master) like no. of GL accounts forming an account group.
One more important thing is that, values from MM would flow through valuation classes and hit FI's GL accounts, so a Raw material Valuation class has to hit the same GL account, not otherwise, where Valuation class is of RM and the GL account description is Finished goods.
Regards
Soujanya