What is the requirement to have multiple valuation class for 1 material type?

7.Question: What is the requirement to have multiple valuation class for 1 material type?

Answer: 1 material type contains 1 account category reference, and account category reference contains multiple valuation classes.

So, while creating material through account category reference we see some valuation classes will pop-up, as we are handling material types the hierarchy of material types contains group/class- so to differentiate financially to which GL account it should hit.

*Multiple valuation classes explain different type of materials in one material type.

Electronics- we have Phones/Laptop and Washing machine/Refrigerator.

Scenario: Ticket has been created for one material type, where there organization has acquired 1 small company which belongs to IT and this has been taken as roll out project and asked for creation of new material type for IT goods, so that they can maintain new valuation class(Scenario Assumed) by using existing material type.

In those we will define a new valuation class and assign to account category reference for that material type to reflect in material master.

7.1: Question: What is the requirement to have multiple valuation class for 1 material

Answer:

·        one material we use for purchasing/sales then we would like to have 2 valuation class for 1 Material.

·        One material we have separate Quality like Q1/Q2/Q3, the prices needs to be differentiated by split valuation.

·        One material that procured from vendor and same material it may be manufactured in same plant then prices needs to be maintained differently.

But for this split valuation must be activated in the configuration.