Configuring Split Valuation

Configuring Split Valuation

Business Requirement:- We have a material which is manufactured and same material is also procured at that time the value will be different and we need to identify it for that we can use split valuation.

If the material Purchased locally and the same material is imported then also we can use split valuation.

Here we are doing the Configuration based on Country of Origin (Domestic & Import)

Configuration Steps

1.       Activate Split Valuation

Menu Path	SPRO à Materials Management àValuation and Account Assignment à Split Valuation àActivate Split Valuation
Transaction Code	OMW0

2.       Configure Split Valuation

Menu Path	SPRO à Materials Management àValuation and Account Assignment à Split Valuation à Configure Split Valuation
Transaction Code	OMWC

Click on 

Valuation Type :- Uniquely identifies separately valuated stocks of a material. If a material is valuated according to its origin (valuation category H), you can define the possible countries of origin as valuation types.

Click Create

Go back and click “Global Categories”

Valuation Category  :-Determines whether stocks of the material are valuated together or separately

Select “H” and click

Select the LAND 1 and Click Activate like do for LAND 2 also.

Save

Now go back to initial Screen and click Local Definitions

Select our Plant “0001” and Click 

Select “H” and Click Activate and save.

Now you have to maintain Material Master (Which I will explain in next post with end user manual)

SAP MM Standard Process

Standard Procurement Cycle will consist of the below Steps.

1. Purchase Requirement

    It is an internal document which will trigger the procurement process.
    Material requirement can come from the production department based on the MRP. It can come from 
    Procurement department based on forecast or Reorder Point planning . And it can come from Sales 
    Order also(This will be explained in coming sessions). We can have Release strategy activated for the 
    control Purpose(Will explain in coming session).

2. Source Determination

    This is only required when we are procuring  new material which there is no vendor or source is there
    We need to create the Request for Quotation using the Transaction ME41.We can create RFQ with
    reference to PR or Outline Agreement.
    Next we need to maintain the Quotation in ME47, which is created based on RFQ, in this screen we have 
    the field for entering the Vale for that material.
    Next we can have the Price comparison in ME49 based on the Quotation, Material, Vendor etc.
    Comparison can be based on Reference quotation(Quotation with which the selected quotations are to be
    compared), Mean Value Quotation (base for comparison will be the average price from all quotations) and
    Minimum value quotation (Base will be the lowest price from all Quotation)
    We can include Discount and delivery cost in price calculation, based on this the system will rank the
    vendor and we can create info record based on the selected vendor.

3. Purchase Order Processing -ME21N

    The is an external document which can be created with respective to PR, Quotation, Outline agreement
    and without referance also. We can activate Release strategy for this document for better control. So after 
    the release only the system will allow to do the output.

4. Goods Receipt -MIGO

    Once the PO is released the copy will be send to the Store/warehouse were the material is received. There
    they will match the Delivery Note with PO and the actual material received. If Quality management is
    activated the Material will be Posted in Quality Inspection stock, if not it will be received in Unrestricted
    stock. When this is posted two documents will be generated Material Document which increase the
    inventory qty and Financial Document which increases the Inventory Value.

5. Invoice Verification.

    This can be done in two steps for better control, the purchase department will do the Parking of the Invoice
    document using the transaction MIR7  and the Financial department will Post the Document using MIRO
    Invoice Verification can be carried out based on PO, Vendor, delivery note, Service entry sheet, etc.

Introduction

Hi MM Consultants,
This is a new Blog where i will be posting real time scenarios and its solutions . If you have any questions pls post it in the question section, where i will give the solution for it.
Its an interactive Blog where your knowledge also can be shared, for the growth of Consultant  all over the world.

Regards
Depin