SAP Material Valuation Basics

SAP Material Valuation Basics

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SAP Material Valuation Basics - 1 ...................................................................................2 Material Valuation General ........................................................................................................... 2 Valuation Level..................................................................................................................................... 2 Valuation area = company code ................................................................................................ 3 Valuation area = plant..................................................................................................................... 3

SAP Material Valuation Basics - 2 ...................................................................................4 Material Master Record Accounting Data ............................................................................. 4 Standard price ...................................................................................................................................... 5 Moving average price ....................................................................................................................... 5

SAP Material Valuation Basics - 3 ...................................................................................6 Material : V price 20 EUR ............................................................................................................... 6 Material : S price 20 EUR................................................................................................................ 6 Material Valuation Examples ....................................................................................................... 6 Posting to Moving Average Price (Example)...................................................................... 8

SAP Material Valuation Basics - 4 .................................................................................10 Stock Types, Valuation, GR in Warehouse - 1 ................................................................. 10

SAP Material Valuation Basics - 5 .................................................................................12 Stock Types, Valuation, GR in Warehouse - 2 ................................................................. 12

SAP Material Valuation Basics - 6 .................................................................................14 Stock Types, Valuation, GR in Warehouse - 3 ................................................................. 14 Documents at Goods Receipt........................................................................................................................ 14

SAP MATERIAL VALUATION BASICS - 1 his series of articles give an overview of the determination of valuation levels for materials using the valuation area, and the two possible procedures for material valuation. These articles will also explain: The significance of the valuation area The function of the valuation class Material valuation with the moving average price Material valuation with the standard price In a company, most of the externally procured materials are stored before they are required for production or sales. The warehouse stocks of materials must be updated on a quantity and value basis.

Material Valuation General In most goods movements in Inventory Management, the stock quantity and therefore also the stock value vary. In goods receipts, the stock value increases; in goods issues, the stock value decreases. The quantity and value of the material stock and the material price (=valuation price) are updated in the material master record. You therefore also need a material master record for warehouse material. The material valuation determines and maintains the stock value of a material. The following formula is used to calculate the stock value: Stock value = stock quantity * material price From this formula it follows that the stock value changes when the stock quantit