Knowledge Management

Question:
hi all,
Client wants to create provision for split valuation for all the materials they have. if i maintain valuation category as H or Status at the time of creation of all the materials client has what would be the affect? is it advisable or if there is a way that with out doing this if we can split valuate the materials in future what will be the procedure? any help is appreciated
thanks
Answer:
Hi,
I would recommend to look at this setting of materials for future transactions and future materials. There have been several reasons for such recommendation:
1) With regard to historical purchasing data, it is true that any update/maintenance of your current materials will not be having an impact on the historical purchasing documents since accounting documents were posted;
2) More importantly, the financial month-end closing was made both in MM and FI/CO side. If you would like to re-allocate the costs for historical transactions, then this is really a huge works with significant risks and therefore is not recommendable after SAP went live for at least one year.
3) The implication of back posting for such cost reallocation. As I have said that the month-end closing and financial reconciliation has been completed for the past several periods and all reports (balance sheet and income statement) have been generated, it is not logical to change the whole things with the new reporting figures.
4) The possible discrepancies between MM and FI/CO interm of inventory value.
Cheers,
HT
Answer:
Hi HT,
I am confused. What are the affects if I enter the valuation catogery as origin for a material but still i dont split valuate it as long as i dont want to.is it a good idea to keep provision for split valuation for all the materials in the company just by entering a valuation category even if we dont split valuate them.
and secondly is it possible to split valuate a material after an year or two? or we need to create a different material code if we want to split valuate an existing material for which valuation category is not maintained?
thanks for your help
Answer:
Hi,
What are the affects if I enter the valuation catogery as origin for a material but still i dont split valuate it as long as i dont want to.is it a good idea to keep provision for split valuation for all the materials in the company just by entering a valuation category even if we dont split valuate them.
Actually, despite of the fact that there will be one header record for split valuated material with a valuation category should this Valuation Category is maintained in the Material Master, it is not a useful solution since no advantage is to be yielded from such setting. Perhaps, some MM consultants might have a better recommendation.
secondly is it possible to split valuate a material after an year or two? or we need to create a different material code if we want to split valuate an existing material for which valuation category is not maintained?
I would recommend to take the second option ie. creating the new material number for the sake of the fact that a lot of works shall be completed prior to such master data maintenance for instance, clearance of outstanding stock, reversal or completion of all existing purchasing documents etc...
Cheers,
HT
Answer:
What are the affects if I enter the valuation catogery as origin for a material but still i dont split valuate it as long as i dont want to.is it a good idea to keep provision for split valuation for all the materials in the company just by entering a valuation category even if we dont split valuate them.
Greg I am not sure if I understand correctly and completely, but if you are suggesting to set up materials with a valuation category to allow for future split valuation, but only define one valuation type at this time, I think that is a great idea. Since it is so difficult to switch materials to split-valuated once you use them this would make things easier once you go there. Again, I am not sure if this is what you are asking.
It is possible to switch to split valuation after a year or two (we did that) but it is ugly, and your historic data might become difficult to interpret. HT's suggestion is right on.
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Regards,
MMPP
Answer:
Hi MMPP,
The idea is to create, those materials that might be split valuated in future, with a valuation category and maintain them with one valuation type. When there is a need to import such materials another valuation type is maintained so that the material can be split valuated. I would like to know what would be the impact on master data upload? is it possible to upload the valuation types also through lsmw or those materials need to be created manually?
another question i have is if a material is imported, bought indigenously,and they have defective and repaired stock also, what would be the best way to go about?, create two valuation catogeries as origin and status and create two material codes one for origin and one for status or is it possible to maintain all the four sub stocks as valuation types, imported, indigenous, defective and repaired under one valuation catogery?
thanks for your help
Answer:
The idea is to create, those materials that might be split valuated in future, with a valuation category and maintain them with one valuation type. When there is a need to import such materials another valuation type is maintained so that the material can be split valuated. Yep I think that's a good point and makes a lot of sense to me.
I would like to know what would be the impact on master data upload? is it possible to upload the valuation types also through lsmw or those materials need to be created manually? I don't use LSMW, but SHDB instead, and I upload valuation types that way. Actually I do three loads for each group of materials that need to be added: One for client data, one for plant data, and one with valuation data. You might be able to do the same with LSMW.
another question i have is if a material is imported, bought indigenously,and they have defective and repaired stock also, what would be the best way to go about?, create two valuation catogeries as origin and status and create two material codes one for origin and one for status or is it possible to maintain all the four sub stocks as valuation types, imported, indigenous, defective and repaired under one valuation catogery?
It depends. A given material/batch can be assigned only to one valuation type. So if your 4 characteristics are mutually exclusive, you can define 4 valuation types within one valuation category. But if you have imported defective and indigenous repaired you either have to set up those combinations as valuation types, or as you say create several material codes.
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Regards,
MMPP