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What are valuation area valuation category and valuation class

what are valuation area valuation category and valuation class


The purpose of this page is to summarize the most important knowledges about material valuation.


You can read about the general logic, different "valuation terms", account category reference, you can see two examples for split valuation and allowed valuation classes, prerequisites for changing different valuation values and you can finally find something about batch management and valuation.

General logic

Materials can have prices, and can be assigned to accounts. But: different materials can have the same price and can be assigned to the same account. In addition, the one material can have different stocks with different prices and account assignments. This logic is called the ‘Material Valuation’. It works as follows:

    • The Valuation Area defines where valuation is done, per plant or per company
    • The Valuation Category defines how many valuations a material can have
    • The Valuation Type identifies a material valuation: price, stock, and account      reference
    • The Valuation Class can be maintained for each valuation, and links to the      accounts
    • The Account Category Reference defines which

      valuation classes are allowed for      a material type

    Valuation terms

    Valuation Area

    The valuation area (BWKEY) determines where valuation is done. You can either have valuation on plant level, or on company code level. This is determined in transaction OX14, in table TCURM.

    In customizing of material master, you can set per valuation area whether value and/or quantity updating is done in inventory management.

    Valuation Category

    The Valuation Category (BWTTY) determines whether stocks of a material are valuated together, or separately. In case of separately (which is called ‘Split Valuation’), the valuation category also defines which valuation types are possible. Valuation categories are customized per valuation area in table T149, in transaction OMWC.

      • If MBEW-BWTTY is initial for a material, then there is only one valuation type for a material, only one line in table MBEW
      • In case of split valuation where MBEW-BWTTY is filled, can be several valuations, thus more entries in table MBEW

    Typical valuation categories are, for example:

    Category: Taxes

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