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Split Valuation and Material Ledger

Former Member
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Hi All,

Can anybody explain the concept of Split Valuation with some example and it's impact on material valuation in Material Ledger.....

Thanks in Advance

Srikanth Munnaluri

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Answers (3)

Answers (3)

Former Member
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Still would like to wait for responses.

Former Member
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Could not get required answer. Closing the thread.

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ONLY materials with Moving Average Price can use the split valuation


The reason is the following one:

If there are 2 valuation types, named X and Y.

There is an equality:

Material pricetotal quantity = Price Xquantity X + Price Y*quantity Y

In order to balance,

When X and Y is 'V', the header material should use 'V'.

When X is 'V', Y is 'S', the header material should use 'V'.

When X and Y is 'S', the header material should use 'V'.

So only price control V is possible for split valuation.

Please, refer to the SAP Library ( documentation

under the menu path (for your current release level, 470):

MM - Material Price Change (MM-IV-MP)

-> Split Valuation

-> Creating Material Subject to Split Valuation

"Creating Material Subject to Split Valuation:

1. First create a valuation header record for this material. This is

where the individual stocks of a material are managed cumulatively.

To do this, fill in the Valuation category field on the accounting

screen when you create the material master record and leave the

Valuation type field blank. In the Price control field, enter V

(moving average price), since a moving average price is constructed

in the valuation header record from the values and quantities of the

individual stocks. When you save, the system creates the valuation

header record.

2. Then create the material for a valuation type.

To do this, call up the material in creation mode again. Due to the

fact that a valuation header record exists, the system requires you

to enter a valuation type for the valuation category.

3. Repeat step two for every valuation type planned."

In order for the system to take into account the different values of

the substocks, the material at the header level must necessarily have

a 'moving average price' (V) control.

Former Member
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Hi Bijay,

Thanks for your reply..

Now, For example, I created a Header Material with Valuation Price as "V" and other two valuation types for the same material with "S".

Now, in Material Ledger, how the system will take the Periodic Unit Price? for ML purposes, "V" is not allowed. So, can we assume that the system will tak the Valuation Types in which I maintained "S"?

I hope my question is clear....

Srikanth Munnaluri

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Sorry, I have not worked on ML.