This document provides instructions for configuring and activating split valuation in SAP to separately value in-house production stocks and externally procured stocks of materials. It outlines the steps to 1) activate split valuation in the system, 2) create valuation types for in-house and external stocks, 3) assign valuation categories to the types, and 4) create material master records and production/purchase orders to value the stocks separately. The purpose of split valuation is to allow different valuation prices for internally produced versus externally sourced materials.

1. Split Valuation Activation & its Material Master creation
Split Valuation Use: - For certain materials, it is necessary to evaluate the various stocks in a
particular valuation area separately, this configuration guide will provide configuration details
for activating split valuation for valuating in-house production and external procurement
stocks. Also this document will show the procurement process of the split valuated materials.
Configuration of Split Valuation
1.1 Activation of split valuation
1.2 Configure split valuation

2. For External Valuation type put
Valuation type = External
A. Ext. Purchase Orders = 2

3. Acct cat. Reference = 2000
Then click on Save.
Again click on Create tab to create In House valuation type.
For In House Valuation type put
Valuation type = In House
I. Int. purchase orders = 2
Acct cat. Reference = 2000
Then click on Save.
1.2.2 Create Global Category

5. Then Click on save.
1.2.3 Assign “Valuation types to Valuation categories” (Global)
A. Global Categoriesà Types -> Cat. àPut a cursor on Valuation type and click “Activate”

7. By this way we can activate split valuation for in-house production & externally procured
materials.
Split Valuation for Material
1.1 - Purpose
The SAP R/3 System allows you to valuate stocks of a material either together or
separately. According to different valuation criteria Split valuation is necessary, if stock from in-
house production has a different valuation price than externally procured stock.
2. Process :-
2.1 Creation Of Material Master
Create Material Master through MM01, and also select Accounting views

11. 2.2 - External procurement process of material
Step 1
Create P.O through Me21N , maintain the "valuation type" as external in delivery tab in item
level.
Step- 2
Make goods receipt with respect to the P.O no,

12. 2.3 -- In - House production confirming for the same material,
Step- 1 Create production order
T- code Co01

13. You can see in "Goods receipt" tab Valuation type is defaulted as "IN HOUSE".
Now confirm the production order using T-code Co11N.
Check the stock over view in Transaction MMBE which shows stock for two different valuation
types.