Material Valuation

Material valuation is one of the “must-known” topics for all SAP Material Management (MM) learners, especially for MM consultant, FI consultant, and FI & MM administrator in a company. In a company, the material valuation procedure must be determined together with accounting department. It determines, among other things, how a material transaction recorded in accounting journal.
The first thing that we should know in material valuation is the Valuation Area. It is the organizational level at which material is valuated. In SAP R/3 system, there are two possible organizational level at which material is valuated:
  1. Plant.
    When stock is valuated at plant level, we can valuate a material in different plants at different prices. Valuation must be at this level in the following cases:
    • If we want to use the application component Production Planning (PP) or Costing
    • If our system is a SAP Retail system
  2. Company Code.
    When stock is valuated at company code level, the valuation price of a material is the same in all of a company’s plants (that is, in a company code).
SAP recommends that we set material valuation at Plant level.

SAP FICO minimal configuration for MM posting

UPDATED: For all this time we have sold a collection of video trainings. May be some of you have been purchased it from us for USD 55 price. We have gotten some positive testimonials from our customers. But, today, with the spirit of knowledge sharing (along with our SAP Forum launching) we announce that we will give them for free for everyone. You could read this article to know more about this.

There are many SAP Material Management (MM) learners who face the problem in their MM configuration learning process that they can’t post any MM document, even if their MM configuration has been done correctly. It is because they have lack of knowledge in configuring Financial & Controlling (FICO) module as they have never learned it specifically. It can be very frustrating to solve that problem. These video collections give a clear step-by-step SAP FICO configuration in order to allow MM posting, so you can learn it very easily. The videos show SAP IMG Help for every step, so you can know exactly what it’s all about. Continue reading