SAP Material Management: Valuation & Split valuation in MM : Non-valuated plant and materials .

Non-Valuated Plant

There is not a so-called ''non-valuated plant'' concept but ''non-valuated material at that plant'' as the valuation will only take place at material level. What you should do in this particular case is to deactivate the ''value update'' indicator checkbox for all material types you have been using for that particular plant in OMS2 transaction.

Non-Valuated Materials: 

Defining material type for UNBW in OMS2 make it Qty updating for plants,acct category reference will be for non valuated material, no accounting view.

While doing GR it won't create an accounting  document.

to understand the above points you have to understand the valuation . 

Valuation & Split valuation in MM

 Valuation (for a material)

Valuation is the process of determining the current worth of a material. In procurement process while creating purchase orders material price is a mandatory field and it is automatically determined. This happens because material valuation is maintained in SAP system in material master. Material valuation represents integration between MM & FI (Financial Accounting) modules since it updates the general ledger accounts in financial accounting. 

The key points about material valuation are as follows. 

 Material valuation helps to determine the price of material and for which general ledger account it needs to be posted in financial accounting. 

 Material valuation can happen at company code level or plant level. 

 Material can be valuated based on different types of procurement and this is known as split valuation. Normally split valuation is used to valuate material in same valuation area (company or plant) differently. Split valuation is described in detail in below context. 

Split valuation

 Split valuation means managing a material as several partial stock. Each partial stock is valuated separately in the same valuation area (company or plant). Some of the examples where split valuation is required are as follows. 

 Stock that is procured externally from vendor has a different valuation price than the stock of in-house production. 

 Stock obtained from one vendor is valuated at a different price than stock obtained from another vendor. 

 Same material having different batch may have different valuation prices. 

Split valuation is required for certain materials in order to valuate them separately. 

Following can be the reasons for opting for split valuation: 

 Different origins of the material. 

 Different grades of the material. 

 Different statutes of the material. 

 Differentiation between In-house production and External production. 

 Differentiation between deliveries.