SAP AFS Split Valuation

By S.Suren

What is Split Valuation?

Split Valuation means managing a material as several partial stocks. Each partial stock is valuated separately.

Split Valuation in AFS

In the apparel industry one of the main reasons behind using Split Valuation would be to valuate the RMs differently based on their SKU levels.

For instance, the various sizes of men’s pants have significant differences in their material input (e.g. zippers). Therefore, the large, medium and small sizes should be valuated and costed separately.

Activate Split Valuation

Path : IMG -> Material Management -> Valuation & Account Assignment -> AFS Split Material Valuation

TCode :OMWC

AFS uses its own special valuation category X for split valuation. Valuation types are not maintained in Customizing but separately for each material in the material master´s AFS Valuation view.

Quick 3 Steps Setup Process

1. Define the global valuation type

2. Define the global categories - This is where we mention which valuation category is to be linked to which valuation types as default.

Note: Activate the valuation type to valuation category.

3. Assign the Valuation Category: Valuation Type combination to Category to Organisational Unit.

Note: Activate the valuation category to the plant.

And thats it, those are the simple steps to setup split valuation characteristics and definition. Once this is done you need to maintain the material master accordingly, this is detailed out

below :

Steps to use Split Valuation in SAP AFS Material

1. Create a Material with a Grid and specify the ”Valuation Category“ as “X“ in the Accounting 1 tab.

2. In the “AFS Valuation“ tab you need to now enter the “Valuation Type“ code for the relevant “SKU“ .

In the above example, my requirement is to valuate the material based on 3 main sizes, i.e. XS, M and L.

Using the Preferred SKU option, I have decided that :

• Size XS and S will be valued similarly

• Size M will be valued seperately

• Size L,XL and XXL will be valued similarly.

3. Save.

Thats about it. Now you could valuate materials different based on their special characteristics, known as Valuation Types in Split Valuation.

Hope you found this post informative. For any queries, suggestions and comments feel free to email me on suren@erparena.com.

Have a nice day !!