ERPTwin
101201MMMM01MIGOadvanced

Split Valuation: One Material, Several Valuation Types with Their Own Prices

The same copper wire is bought locally and imported at different costs. With split valuation each origin is a valuation type with its own price, so receipts and issues carry the value of the stock actually moved, not an average.

Educational content. SAP behaviour varies by configuration and release. Spotted something off? Report it.

Digital twin

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SAP DOCUMENTSVisualization of Split Valuation: One Material, Several Valuation Types with Their Own Prices. All information shown in the scene is also available in the caption and the panels next to it.
Demo data

01One material, two valuation types

RM-2000 has valuation category 'origin' with types DOMESTIC (₹800/KG) and IMPORT (₹950/KG).

Copper wire (split-valuated by origin)

RM-2000 — accounting view

Valuation category
Origin (demo)
DOMESTIC
₹800 per KG
IMPORT
₹950 per KG
Header record
Totals of all types

Business scenario

RM-2000 copper wire is valuated by origin: DOMESTIC at ₹800/KG and IMPORT at ₹950/KG. 100 KG of each arrive; production then uses 50 KG of the imported wire.

All companies, numbers and documents are fictional demo data.

Step-by-step flow

  1. 01

    One material, two valuation types open in twin

    RM-2000 has valuation category 'origin' with types DOMESTIC (₹800/KG) and IMPORT (₹950/KG).

    When the cost of the same material differs systematically by source, quality or status, one average price would distort every posting.

  2. 02

    Receive 100 KG domestic open in twin

    101 with valuation type DOMESTIC: +100 KG at ₹800 = ₹80,000.

    It decides which price and which stock record are updated.

  3. 03

    Receive 100 KG imported open in twin

    101 with valuation type IMPORT: +100 KG at ₹950 = ₹95,000.

    The header now shows 200 KG worth ₹1,75,000 — an average of ₹875/KG, but no posting uses that average.

  4. 04

    Production takes imported wire open in twin

    Maintenance issues 50 KG of the imported wire. What value leaves stock?

    That keeps cost of consumption accurate.

  5. 05

    No averages with split valuation open in twin

    The header's average price is informational. Postings always use the valuation type's own price.

    Using it would undercost imported wire and overcost domestic wire.

  6. 06

    Issue 50 KG IMPORT (201) open in twin

    IMPORT 100 → 50 KG; ₹47,500 to CC-4100 (Maintenance). DOMESTIC untouched.

    The consumer is charged what that wire actually cost.

  7. 07

    Each origin keeps its value open in twin

    DOMESTIC 100 KG @ ₹800; IMPORT 50 KG @ ₹950.

    Split valuation is set per plant; it cannot easily be switched off once stock exists.

SAP documents

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Stock impact

StepPlant / SLocStock typeMvTChange
Receive 100 KG domestic1000 / 0001 · batch DOMESTICUnrestricted use101+100 KG
Receive 100 KG imported1000 / 0001 · batch IMPORTUnrestricted use101+100 KG
Issue 50 KG IMPORT (201)1000 / 0001 · batch IMPORTUnrestricted use201−50 KG

Accounting impact

GR for valuation type DOMESTIC

Typical

Receive 100 KG domestic

  • Dr Inventory — raw materials (BSX)₹80,000
  • Cr GR/IR clearing (WRX)₹80,000

Valued at the DOMESTIC valuation record.

GR for valuation type IMPORT

Typical

Receive 100 KG imported

  • Dr Inventory — raw materials (BSX)₹95,000
  • Cr GR/IR clearing (WRX)₹95,000

Valued at the IMPORT valuation record (including import costs in this demo).

Goods issue of valuation type IMPORT

Typical

Issue 50 KG IMPORT (201)

  • Dr Consumption — CC-4100 (Maintenance) (GBB/VBR)₹47,500
  • Cr Inventory — raw materials (BSX)₹47,500

Valued at the IMPORT price.

Typical conceptual flow. Actual G/L accounts and posting behaviour depend on material valuation, automatic account determination and system configuration.

Movement type

  • 101GR (with valuation type)Reversal: 102
  • 201GI to cost center (with valuation type)Reversal: 202

Values one material at different prices depending on origin, quality, status or batch, so stock value and consumption reflect what each portion actually cost.

Transactions & Fiori apps

  • MM01 — Create Material (accounting view per valuation type)
  • MIGO — Goods Movements
  • MMBE — Stock Overview
  • OMWC — Split Valuation Configuration
  • Stock — Single Material

Differences by SAP version

OMWC to activate; MBEW per BWTAR.

Configuration

  • Valuation categories and types (OMWC)

    Configuration dependent

    Categories such as origin or batch (X); types are the individual values.

  • Batch-specific valuation (category X)

    Configuration dependent

    Each batch is its own valuation type.

Prerequisites

  • Split valuation active in the system
  • Valuation category on the material and valuation types assigned to the plant

Master data

Material accounting view
One record per valuation type plus the header.

Organizational structure

  • Plant 1000 (valuation area)

Tables

TableDescription
MBEWValuation records per valuation type (field BWTAR)
MCHABatches (for category X)

Integration

  • FIInventory value per type.
  • COConsumption at the type's price.

Common errors

  • “MIGO asks for a valuation type”

    Likely causes: Material is split-valuated

    Where to look: Material accounting view

Troubleshooting

Something went wrong? Work through these checks in order. They are diagnostic questions, not configuration instructions — confirm changes with your system owner.

  1. CHECK 1

    Movements

    • Valuation type entered?
    • Type assigned to the plant?

Interview questions

  • What is split valuation?

    Valuing one material separately by valuation type (e.g. origin, quality, batch). Each type has its own price and stock value in MBEW; the header record shows totals. Every goods movement must specify the valuation type, and postings use that type's price.

Quiz

Q1 · Identify the accounting impact

With split valuation, what price does a goods issue use?

References

  • SAP SE — SAP Help Portal: Split Valuation (source)
  • SAP SE — SAP Help Portal: Batch-Specific Valuation (source)

Explanations are original. They summarize standard behaviour; always validate against your system's release and configuration.

Version history

VersionChange
1.0.0Initial version.