SAP MM : Material valuation class and Account (MM - FI link)

Valuation class is a group of raw materials with the same account determination.

In any concern there will be hundrends or thousands of raw materials.You might have known while integrating FI-MM you have to create a general ledger account for each raw material. It is a difficult task to create as many as g/l accounts to as many raw materials there exists. So the  similar nature raw materials are grouped depending on some characteristics and valuation class is assigned to each such group of raw materials.We create g/l accounts for these valuation classes and assign them.

Valuation class Tcode is OMSK

The valuation class determines the G/L accounts that are updated as a result of a valuation-relevant transaction or event such as a goods movement.The valuation class makes it possible to:

Post the stock values of materials of the same material type to different G/L accounts and Post the stock values of materials of different material types to the same G/L account.

We use different valuation class for different types of materials. for ex.for Raw materials-3000, for Finished goods-7920 etc.  Which identifies the respective GL Accounts in the FI-MM integration.

The link will be taken  from the material master MM01. when coming to the configuration part of VC, FICO people need not bother as we have standard VCs available or if required MM people will configure our job is Identify the requirement and enter the relevant GL accounts.( it is difficult tio explain more than this here.)

Further if you want, give your mail id I will forward the relevant material.