Automatic Account Determination-Key Words
Valuation Level
Valuation Group Code, also referred to as VM = Valuation modification
Valuation grouping code active
Valuation areas are grouped together with the objective of simplifying management of the standard
accounts table by minimizing the number of entries.
Use
Along with other factors, the valuation grouping code determines the G/L accounts, to which a goods
movement is posted (automatic account determination).
Valuation Area
You define the valuation area by deciding at which level you want to valuate your stocks of materials.
Your decision applies for all clients.
Valuation area = Company code: The R/3 System creates the valuation data for a material for
each company code. The price control used and the price of a material apply for each company
code. This means that the material is valuated uniformly across all plants belonging to a particular
company code.
Valuation area = Plant: The R/3 System creates the valuation data for a material for each
plant. The price control used and the price of a material apply for each plant. This allows you to
valuate the same material in different ways in different plants.
In a production system, you cannot change the valuation level to company code level or to plant level,
because you would have to convert the data that already exists.
For the PP component and for product costing, it is essential that you use the valuation level “Plant”.
Valuation Class
Default value for the valuation class for valuated stocks of this material.
Use
The valuation class has the following functions:
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