Monday, May 18, 2009

Valuation area

valuation area : Valuation area means at which level material is valuated .

Some cool facts about valuation area :

1 . There are two valuation areas at which a material can be valuated
• At company code level
• At plant level
2 . If valuation is at plant level we can valuate a material at different price at different plants.
3 . When we valuate a material at company code level the price remains same for all the plants in that company code.
4 . if we are using Production planning or production cost accounting components or if our system is a Retail system then valuation in plant level is mandatory .
5. Do not play with the valuation level . Once it is set at one level it is very difficult to change it .

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