Valuation class problem1

Question

My  question is still not solved. being a abarer, i have object reagading valuation class. what is the effect of valuation class on sap( how it is integrated ) what will be the effect on whole sap system if i use existing valuation class for new material ? ( like creating reports using valuation class.
can be delete valuation class which is not being used ?
if i create new valuation class what measures should be taken ? who will create valuation class abaper or mm.
Thanks

Answer 1

Dear,
Valuation class is a combine combination work of MM and FI during integration.
Valuation class is the g/l accounts to be posted automatically (Ex Raw materail or Finised goods) during movements which effect the valuation.
In material master we specify valuation class:
-  for valuation class, we assign g/l accounts based on nature of transaction,
- at the time of goods receipt/ issue, stores person enters movement type, 
- our a/c's will be updated automatically based on account assignment to valuation class which is specified in material master.
We can group together different materials with similar properties by valuation class. Eg Raw material,Finsihed Goods, Semi Finished. We can define the following assignments in customizing : All materials with same material type are assigned to just one valuation class.
Different materials with the same material type can be assigned to different valuation classes. Materials with different material types are assigned to a single valuation class.
Check the below extract:
Valuation Class
In normal business, every material which is being procured, stocked or consumed needs to be valuated and all the records of such valuation needs to me maintained.
In SAP all such records are being captured in stock account of respective material. Since all most every business deals with a high number of materials and it is not possible for them to maintain separate stock account for every material. Hence there was a strong need of grouping the materials based on the properties they have. Hence in simple words, valuation class is a grouping of materials having similar properties and assignment of these materials to a group of G/L accounts.
Since we are grouping materials based on some properties/attributes known as material type, hence which valuation class a material can be assigned to depend on the material type it belongs. An assignment with the following combination is possible in Customizing:
u2022 All materials with the same material type are assigned to just one valuation class.
u2022 Different materials with the same material type are assigned to different valuation classes.
u2022 Materials with different material types are assigned to a single valuation class.
When we create a material master records, based on the above setting the systems checks whether it can be assigned to the valuation class specified. If not system will not permit to save the records. Once the records are saved, the system refers to the valuation class of a material to determine which stock account to be posted in case of any transactions in IM or LIV.
Valuation Class along with following components forms the valuation structure of a material. During valuation process each of these components is being taken into consideration by the system.
u2022 Valuation area
u2022 Valuation category
u2022 Valuation type
u2022 Material type
u2022 Movement type
Configuration setting for defining New Valuation Class
u2022 create account category reference
u2022 define new valuation class
u2022 Link it with material types via account category reference
u2022 Create an account determination for each material class in the step configure automatic posting
If you want to create / delete existing valuation class, study the dependencies and requirements and consult with FI people also. Usually Valuation classes are created by MM and FI people.
Regards,
Syed Hussain.