valuation area function

[#1]

Hi,

I would like to clarify the use of valuation area for plant.

May I know if valuation area is used to valuate the stock/material (inventory) cost? Meaning the buying cost but not the selling cost, right?

Thanks

Rgds

[Former Member]

hi

function of valuation area is to define the valuation for the material at the plant level or in the company code level. if it is plant level each plant will have their own accounting entries in all the process (Ex: GR/MIRO/PGI/Sales Invoice). if it is company code level the accounting entries will be showed in company code level only. further al the accounting standards and rule will applicable at company code level only

hope you will understand

Sridharan

[Former Member]

Hi,

Can I say basically valuation area is not just only to know the purchasing cost of the inventory but also selling value?

Thanks