What is valuation class

what is valuation class? where do we make settings for it?
Can we make new valuation class?

Hi
Assignment of a material to a group of G/L accounts
With other factors, the valuation class determines the G/L accounts that are updated as a result of a valuation-relevant transaction or event such as a goods movement.
The valuation class makes it possible to:
Post the stock values of materials of the same material type to different G/L accounts
Post the stock values of materials of different material types to the same G/L account
Yes you can create new valuation Classes
You can define the Valuation Calsses in Transaction OMSK or SPRO-> MATerails Management-> Valuation and Account Assignment-> Account Determination-> Account Determination Without Wizard-> Define Valuation Classes
Under valuation class, define the valuation classes for each account category reference.
Thanks & Regards
Kishore

Similar Messages

  • What is Valuation Class & it uses ?

    Hello SAPians,
    Please expalin me, what is Valuation Class & what it is used for ?
    Thanks in advance.
    Regards
    Rahul Chitte

    Hi Rahul,
    Valuation class and valuation type are used in MM module -
    Valuation class – materials of similar properties are grouped together as valuation class so that you do not have to maintain separate stock accounts for every material. The system refers to valuation class to find the relevant stock account for posting the stock value.
    Valuation type – specifies the individual characteristic of a valuation category.
    b)     Procurement – internal or external
    c)     Origin – names of different countries where the material is being imported.
    d)     Status – new, used or repaired.
    Valuation category – criterion according to which split valuation is carried out.
    a)     Procurement             b) Origin                    c) Status
    Split valuation – an option that lets you manage different stock accounts for a single material in a plant.
    REWARD POINTS IF HELPFUL
    Regards
    Sai

  • What is valuation class In MM?

    Hi,
    What is valuation class in MM?
    Ram Rathode
    Note : Please search forum before posting,search forum,wiki,sap help etc.,
    Edited by: Jeyakanthan A on Jun 1, 2011 11:46 AM

    Valuation class is assigned to the material in material master. It allows the stock values of materials of the same material type to be posted to different G/L accounts and it also allows the stock values of materials of different material types to be posted to the same G/L account.
    Valuation class id created in OMSK Transaction.

  • Valuation class and Account Category reference

    Dear Friends.
    Please Can I know Valuation class and Account Category reference for following Material Types?
    1)     Advertisement material- what is Valuation class and Account Category reference ?
    2)     Asset Material- what is Valuation class and Account Category reference ?
    3)     Trading goods-what is Valuation class and Account Category reference ?
    4)     Engineering Material-what is Valuation class and Account Category reference ?
    regards,
    Mahesh.
    Edited by: mahesh A on Jun 8, 2011 8:17 AM
    Note : Please search forum before posting,follow forum rules.
    Edited by: Jeyakanthan A on Jun 8, 2011 11:54 AM

    Please check these answered links:
    Re: What is account category reference in Account determntn??
    changing the account category reference
    Re: account category reference
    Change of Account Category Reference
    Re: What is account category reference in Account determntn??
    Edited by: Afshad Irani on Apr 29, 2010 12:07 PM

  • FI-MM(Valuation Class)

    Hi,
    Can any one please help me in explaining me what is valuation class ? and where  configuration is done, i have some idea that Raw material, finished goods ext are called as valuation class and they are represented by numeric key. can any one provide proper notes on this valuation class and how is it helpful in FI-MM Integration.
    thanks in advance

    valuation classes are allowed for a material type.
    If a user creates a material, he must enter the material's valuation class in the accounting data. The ERP system uses your default settings to check whether the valuation class is allowed for the material type.
    The valuation class is a group of materials with the same account determination. If a transaction is to be posted to different accounts depending on the valuation class, create an account determination for each valuation class in the step Create automatic postings.
    The valuation classes allowed depend on the material type. Several valuation classes are generally allowed for one material type. A valuation class can also be allowed for several material types.
    The link between the valuation classes and the material types is set up via the account category reference.
    The account category reference is a combination of valuation classes. Precisely one account category reference is assigned to a material type.
    The following are the Requirements for Valuation class.
    1) You must have defined your material types.
    2) You must have defined the chart of accounts.
    3) You must have agreed with Financial Accounting which materials are assigned to which accounts.
    Default settings
    In the standard SAP R/3 System, an account category reference is created for each material type. The account category reference is, in turn, assigned to precisely one valuation class. This means that each material type has its own valuation class.
    Recommendation
    We recommend that you create the account groups of your chart of accounts as an account category reference.
    Example GKR:
    3000 for raw materials
    3030 for accessory materials
    7900 for finished products
    and so on
    Activities
    1. Create account category references under
    account category reference
    2. Under
    valuation class
    , define the valuation classes for each account category reference.
    3. Under
    Material type/account category reference
    , assign an account category reference to each material type.
    MENU PATH spro ->materials management->valuation and account assignment->account determination->account determination without wizard->Define valuation class.
    Best regards
    bhanuprakash.

  • Hw to create new valuation class..?

    Hi gurus
    can anybody explain me how to create new valuation class for Some materials types eg finished goods.
    What is valuation class..? were to assign the valuation class after creation..?
    Thanks
    sap-mm

    Hi,
    Goto SPRO->IMG->Materials Management>Valuation and Account Assignment>Account Determination->Account Determination Without Wizard->Define Valuation Classes
    Valuation class means:
    Assignment of a material to a group of G/L accounts
    With other factors, the valuation class determines the G/L accounts that are updated as a result of a valuation-relevant transaction or event such as a goods movement.
    The valuation class makes it possible to:
    Post the stock values of materials of the same material type to different G/L accounts
    Post the stock values of materials of different material types to the same G/L account
    Account category reference is assigned to val.class and val.class is assigned to material type and g/l is assigned to v.class
    Venkatesh

  • Changeing Valuation class-what happens to deleted open docs.

    Hello,
    we are planning to change the valuation class for material. In order to change the class we would have to delete all open items that trace back to the material (PO, GR, IR). I run me2m to identify the open documents for that material.
    My issue is when I reverse or delete the IR, GR, and PO what happens to the those documents.? We have documents that go back to 2007.
    Do we have to recreate the PO, GR, IR after we change the class.?What are the long term effects when doing this change (Audit)?
    Please advise.
    Thanks.

    You don't need to worry about old documents as long as they are not open.
    You just need to invoice out all the open GRs or cancel all those GRs. In case of POs, you have to ensure the GR qty is equal to IR qty for each PO line, then you can mark the line as deleted so that the system will allow you to change the val. class. You also need to make the stock to zero.
    Once val. Class is changed, you can undo all the above.

  • What is the use of valuation class in Finished Material Master?

    Dear Expert
    What is the use of valuation class in Finished Material Master?
    Thanks of Advance

    hi,
    this is to inform you that,
    generally 7920 - will be the valuation class for the finished goods.
    Allows the stock values of materials of the same material type to be posted to different G/L accounts & vice versa.
    this is an integration field which identifies the G/L accounts & goods movement types.
    balajia

  • Change of Material Valuation Class - What Approach to Consider?

    Dear SAP Expert ...
    In OSS notes # 160970, it mentions that starting from release 4.6B we
    can use Customizing Transaction OMT4 (Change System Message) to change
    corresponding check from error to warning.  With this function, the
    system won't check if there are existing document (e.g. = PO, SO,
    etc.) for respective materials (which we want to change the valuation
    class from), thus we only deals with stock on-hand.
    However, the same notes also recommend the customer need to ensure that from
    organizational point of view there are no inconsistency occured after the change of valuation class.
    We're doing investigation of the automatic account determination which
    is driven by some valuation class and ensure that it won't introduce
    any inconsistency in Financial Statement (Balance Sheet and Income
    Statement). 
    Basically there are 2 (two) aspects we need to adjust:
    (1) Make sure there are no stock available for respective materials during the change
    (2) Adjust the error to warning message for system message using OMT4, thus the system won't check any existing document (so we don't have to delete thousands of existing document)
    We'd like to clarify with you (if similar experience available before) if the following approach we take has been according to the standard practise and NO
    inconsistency will ever occur in the future.
    The approach we take is as follows:
    (1) Identify the FROM valuation class and TO valuation class
    (2) Identify automatic account determination from each FROM an TO
    valuation class (IMG path = OMWB)
    (3) Determine the G/L account used when the changes happen, e.g. :
        Consignment Expense/Revenu (AKO)
        Expense/Revenue from Stock Transfer (AUM)
        Change in Inventory Account (BSV)
        Materials Management Small Difference (DIF)
        External Activities (FRL)
        Incidental Cost of External Activities (FRN)
        Purchase Offsetting Account (FKG)
        Purchasing Freight Account (FRE)
        Materials Management Exchange Rate Diff (KDM)
        MM exchange rate rounding differences (KDR)
        Gain/Loss from Revaluation (UMB)
    (4) Determine the implication of (different) G/L account posting to the Balance
    Sheet & Income Statement reporting
    We'd like to say huge thanks in advance for any input or advise.
    Regards,
    Alvon Sibarani

    Gopala ...
    That's an interesting approach you provided below.  Really appreciate for the input.
    Just for your background:
    1. Our company is also using global instance system (located in US), where all business unit around the globe connects to.
    2. With global instance, we have to standardize majority of the system setting & configuration into a common design.
    3. The common design includes the valuation grouping code, which we use single code (e.g. = ABCD)
    4.  I supposed the single valuation grouping code is introduced for ease in corporate reporting tree.
    5.  The issues we experience on the valuation class is basically happen for only 1 business unit (in China)
    6.  Adjusting the valuation grouping code might solve the 1 business unit issue, while on the other hand we must also consult with the global finance group on the implication to the corporate reporting tree with introduction of the new valuation grouping code (e.g. = WZYX)
    Again that's a valueable input we have here and we'd like to discuss it first with the finance group on the implication.  I personnaly doubt the global finance will agree with such approach, not to mention it approaching the year end thus no "major" modification be introduce.
    Regards,
    Alvon Sibarani

  • What is the correct Valuation Class?

    Hi,
    Can we find out most appropriate Valuation class by seeing material master data?
    This is for the finished Product. Since due to some integration this product has added, Now we have to suggest Appropriate Valuation class and do configuration for automatic posting.
    So how to suggest correct valuation class for this product?
    Regards,
    Shwetha

    Hi,
    U just find same product which is fall under finish product .
    Use Tcode mm03 go to Accounting tab check valuation class.
    The same valuation class u can take for the new creation of master data of finish product .
    Configure it in integration part in OBYC.
    Here U have to configure transaction key like BSX, WRX,BSA etc.
    Regards
    Pari

  • De-linking (Valuation class & GL A/c) automatic posting in Invoice booking

    Experts,
    I have a issue regarding link between FI & MM
    From what I understand,
    there is a link between Service & Valuation class
    & also a link between valuation class & GL.
    This link enables automatic FI line item posting while invoice booking.
    My question:
    1. Can we break the linkage between valuation class & GL i.e. we want to stop the automatic posting
    2. What is the effect of above
    3. Would you advise to do this .. ? Why?
    Regards,
    KPS007

    Hi,
    SAP standard process are the best business practises and it should changed only when we have genuine business problem and not for people issue.
    There are several scenarios will occur during MIGO and MIRO. For each scenario system should determine a correct Inventory account, GR/IR clearing account, Price difference account and etc. First you need to prepare an excel sheet with all your possible business scenario, valuation area/valuation grouping code and their respective GL accounts. Once you have listed out all the scenarios and correct GL accounts, you can configure the system as per your requirement. Initial home work is needed to avoid any difference in account posting. Hence try to fix the source of your problem rather than changing the best practise. Account determination is vast and it cannot be explained here but please refer the below link.
    http://help.sap.com/saphelp_46c/helpdata/en/12/1a39516e36d1118b3f0060b03ca329/content.htm
    Regards,
    Senthil

  • Change Valuation class

    We have a need to change the valuation class of the material master with tcode MM02, and the material has a lot of open Purchase Orders and Sales orders, and many batches created for this material.  This material use by many countries, and we cannot replace it with a new material number for my plant.
    System issue message Valaution class cannot be changed because of a lot of open doc and batches exists,  in this situation how to change the Valuaiton class, it will be quite impossible to delete all those open doc and batches. ?? What can we do in order to change the valuaiton class of the material master MM02.??

    Hi,
    You have to eliminate those problems that is reported by SAP.
    E.g.:
    - no stock in current and previous period has to exist (eliminate stock: MB1A201posting date in the past; reset stock level: MB1A+202)
    - transactional data has to be deleted
    - if there are goods movement in current period you have to cancel all of them or you have to wait till the first day of the next period
    If you want to change valuation category as well, you have to archive batch master records.
    This is not an easy thing to do, you may face several difficulties...
    Mass transaction can be used if you have several transactional data to delete (check transaction MASS)
    You can search for threads on this forum or for OSS notes too.
    Regards,
    Csaba

  • Invalid Valuation Class for Plant

    Hello,
    I'm creating a material using t-code MM01, and when I enter a valuation class in the Accounting 1 view, I get error message ZA 038 "Invalid valuation class for this plant".  This valuation class was working before, so I want to look into the configuration to see what may have been changed.  Can anyone point me in the right direction?
    Thanks,
    Cynthia

    Hi,
    the message u got is custom defined message.
    The reason for the designing the message may be that the material that u want to create is not to be meant for the plant u used.
    i hope this will solve the issue.
    Thank You,
    Purnachandra RM

  • How to shift valuation class from one material type to another material type ?

    I have came across following weird scenario:
    We already created huge no.of materials of material type say ZABC with two valuation classes say 1100 and 1200(GL accounts for these VCs for different posting keys in OBYC settings are same). Account category reference for this material type is 0010.
    After that we created new material type say ZPQR  with new Account category reference 0025, and valuation class 1200 is linked with this ACR 0025. Because of this, valuation class 1200 disappeared from material type ZABC. In order to avoid inconsistency, we need to have valuation class 1200 linked with older material type i.e.ZABC.How we can do this ? What impacts must have happened in this period (from MM/FI) in the system, where valuation class get shifted from one material type(ZABC) to another material type(ZPQR)....please help us in this scenario.

    Thanks Sana,
    We are also looking for the solution provided by you i.e. reassign ACR 0010 to Valuation class 1200.
    Your are also correct in terms of  statement "config doesnt allow me to assign same valuation class to 2 different AREF (Account reference number/Account category reference).
    I wanted to know, what are the possible impacts in the system during this re-assignment of ACR to old material type ZABC.
    Regards,
    Sudarshan.

  • Change GL account for the valuation class

    Hi,
    Currently I have a valuation class SUPP which is assign to GL account 14800, now the customer have the request to change it to GL account 14100. There is an option to change it in Config OBYC, but there are a lot of materials involved and a lot of material cost that exist is booked under GL account 14800. Can I just change it OBYC, what's the impact?
    Anyone experienced that before?
    Thanks!

    Hi
    This is normal Phenomenon since under that material type you must be having other valuation classes other than SUPP, and you must have assigned lot other G/L accounts , i.e for G/L recon you need to consider lot of Inventory accounts. Now if you change, during the next recon you just have to add the old entry details along with the new G/L account. No issues at all other than informing and co-ordination with FI guys after you new assignment of the G/L acct for SUPP.
    Best Regards

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