Valuation and account determination;

Several influencing factors in valuation account determination. Every company code will have a chart
of account and we also have valuation area. Valuation area can be at plant or company code level.

Ex - Plant level, so we can group several plants with one single valuation grouping code.

Material will be assigned to a valuation area (materials will have material type), each valuation area
will be assigned to a valuation class,

Material type can be assigned to value string and depending on transaction code they are assigned
to account grouping code.

We can go more granular or at a higher level, if there is no valuation class, no account grouping
code, no valuation grouping code, every transaction will go to same GL accounts all time.

AG-VM are optional

Client Chart of Transaction Valuation Account Valuation G/L Acc G/L Acc
account Grouping Grouping class debit credit
code/modifier code (AG)
(VM)
100 INT All-simple 3000 300000 300000

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100 INT 3010 300000 300000
100 INT 3020 300000 300000
100 INT 3030 300000 300000
100 INT 0001 3000 310000 310000
100 INT 0001 3010 320001 320001
100 INT 0001 3020 330002 330002
100 INT 0001 3030 340003 340003
100 INT 0002 3000 410000 410000
100 INT 0002 3010 420000 420000
100 INT 0002 3020 430000 430000
100 INT 0002 3010 440000 440000
100 INT 0002 AUF 3020 500000 500000
100 INT GBB 3010 600000 600000
100 INT GBB 3020 600000 600000
100 INT GBB 3030 600000 600000
100 INT GBB 0001 3000 610000 610000
100 INT GBB 0001 3010 620001 620001
100 INT GBB 0001 3020 630002 630002
100 INT GBB 0001 3030 640003 640003
100 INT GBB 0002 3000 710000 710000
100 INT GBB 0002 3010 720000 720000
100 INT GBB 0002 3020 730000 730000
100 INT GBB 0002 3010 740000 740000
100 INT GBB 0002 AUF 3020 800000 800000
100 INT WRX 3010 900000 300000
100 INT WRX 3020 900000 300000
100 INT WRX 3030 900000 300000
100 INT WRX 0001 3000 910000 910000
100 INT WRX 0001 3010 920000 920000
100 INT WRX 0001 3020 930000 930000
100 INT WRX 0001 3030 940000 940000
100 INT WRX 0002 3000 460000 460000
100 INT WRX 0002 3010 470000 470000
100 INT WRX 0002 3020 480000 480000
100 INT WRX 0002 3010 490000 490000
100 INT WRX 0002 AUF 3020 590000 590000

3000 (raw mat), 3010 (Finished), 3020 (semi-finished), 3030 (office supply), Valuation modifier as
plant;

Plant 1000,2000 – VM 0001,

plant 3000, 4000 - VM 0002

If movt type 221 tied to AUF- tied account modifier, account modifier must be ticked for this

Valuation class assigned to materials

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Group together different valuation areas, valuation area 100 can be directed to same valuation
grouping code.

Defining valuation class, valuation class are assigned to materials (RAW/HALB)

Material type account category reference can assign material type to account reference

Account grouping for movement types,

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Depending on different movement types we can assign different account modifiers as below.

Account modifiers can be used in configuration to drive different account for different movement
types.

Configure automatic account determination posting and for chart of account INT and transaction
BSX.

Here we are not using only valuation class (only valuation class is active not modifier or account
grouping) only valuation class can be linked to GL account.

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Check GBB (offsetting) can see many different types of modifiers

Pricing Procedure

1. For standard PO it is defined depending on schema group of the vendor and purchasing
organisation.
2. For STO, it is defined depending on supplying and receiving plant and document type,
schema group for purchasing organisation.
3. For market price determination it is defined depending on purchase organisation. That is for
each purchase organisation a separate calculation schema can be applied for determination
of market price.

PP is combination of different prices such as gross price, freight price, tax, surcharges, etc, all these
conditions into one procedure and calculates subtotal of net price.

Key features, condition table and access sequence, condition record, condition type, schema group,
calculation schema, schema determination, multiple fields can be used in one condition table.

Condition type – Each condition type is used for different type of charges, like gross price, rebate,
tax etc.

Access sequence –searches for condition record for condition type within a given condition table,
access sequence will allow to search within a set of condition tables only.

Condition table – Where all fields are saved with combination of individual condition record; for
plant specific example, if plant I used as condition table then condition record will be created for
plant only, many fields can be clubbed within a single condition table.

Condition record – Condition record contains record maintained against condition table with regards
to condition type, whenever a vendor uses a condition type. In above case where condition table is

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created for a plant, whenever a plant/vendor is used, and respective condition type is pulled and
corresponding condition record is pulled.

Schema group – Is assigned to vendor and purchase organization, which helps a vendor and
purchase organization to differ to a specific pricing procedure, combination of respective schema
group is then employed.

Calculation Schema – Here sequence of pricing calculation is maintained such as gross price, tax etc.
Calculations of all condition types are maintained.

Schema determination – Here pricing procedure for a purchasing document is mainatained.

1) Maintain condition table SPRO>MM>PURCHASING>CONDITIONS>DETERMINE PRICE

DETERMINATION PROCESS>MAINTAIN CONDITION TABLE>CREATE CONDITION TABLE.

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Group of fields selected above such as plant, purch org, vendor material are called condition records
and 947 in this example is called condition table.

2) Define access sequences SPRO>MM>PURCHASING>CONDITIONS>DETERMINE PRICE

DETERMINATION PROCESS>MAINTAIN CONDITION TABLE>DEFINE ACCESS SEQUENCE.

Creating access sequence Y000 material pricing

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Click on Y000 and click on accesses, herein and click on new entry;

Access no10, and ur created table 588/947 click enter and save;

Proceed to select access sequence and click on fields; Give combination of access sequence and field
we created;

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This means access sequence Y000 will access condition records from condition table 947 thru access
number 10.

Access sequence will access condition records from the condition table thru an access number.

3) Define Condition types

SPRO>MM>PURCHASING>CONDITIONS>DETERMINE PRICE DETERMINATION PROCESS> DEFINE

CONDITION TYPES.

Ex, PBXX, PB00. Create new and copy existing any one.

Create YB00 and give n our created Access sequence from above.

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For PBXX > YBXX

For RA01 > YRA1

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 4) Define calculation schema;

Calculation schema contains a framework of condition types, that is multiple condition types;

SPRO>MM>PURCHASING>CONDITIONS>DETERMINE PRICE DETERMINATION PROCESS> DEFINE

CALCULATION SCHEMA.

Referring/copying to existing RM0000, we create a new one YY0000;

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Select procedure YY0000 and click on control data;

Select all;

Deselect PB00, PBXX & RA01 and delete these to be replaced by our custom ones

Replace with our customised condition types;

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Save

Do same with RM0002, replace with similar YY002 and reprocess above protocol.

5) Define schema group r;

SPRO>MM>PURCHASING>CONDITIONS>DETERMINE PRICE DETERMINATION PROCESS> DEFINE

SCHEMA GROUP.

Schema group vendor;

Select new entries and create Y1 and save;

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Now select schema group for purchasing organisation;

Create new entries Y001 and save;

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Now >Assignment of Schema Group to Purchasing Organization.

To regular purchasing organisation we assign schema group purchasing organisation;

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 6) Define Schema determination

SPRO>MM>PURCHASING>CONDITIONS>DETERMINE PRICE DETERMINATION PROCESS> DEFINE

CALCULATION SCHEMA.

We create by clicking on new entries; proceed with our created fields and save;

Revert back to define condition types again;

Select YB00 and click on details magnifier glass and here we maintain created pricing procedure;

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We also maintain vendor master XK02;

Maintain schema group vendor herein;

In Material master maintain MM02;

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 7) Create condition records MEK1;

Details of vendor material and amount are entered;

Create PO to test.

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Split Valuation

Valuating same material in same valuation is over different prices, for instance price of material
produced in house and procured externally.

Activation of split evaluation;

SPRO>MATERIAL MANAGEMENT>VALUATION AND ACCOUNT ASSIGNMENT>SPLIT

VALUATION>ACTIVATE SPLIT VALUATION.

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Configuring split valuation; Global type

Key features;

Valuation Area -A zone/place where material is valuated, in this case valuation area is plant

Valuation Type – Detail of material procured/country of origin (COO).

Valuation Category – Based on category of in-house produce of externally procured, based on

grade.

SPRO>MATERIAL MANAGEMENT>VALUATION AND ACCOUNT ASSIGNMENT>SPLIT

VALUATION>CONFIGURE SPLIT VALUATION.

Creating valuation type based on country/region of origin

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Creating valuation category;

SPRO>MATERIAL MANAGEMENT>VALUATION AND ACCOUNT ASSIGNMENT>SPLIT

VALUATION>CONFIGURE SPLIT VALUATION.

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Now to activate valuation type in valuation category;

Now go to local definitions;

SPRO>MATERIAL MANAGEMENT>VALUATION AND ACCOUNT ASSIGNMENT>SPLIT

VALUATION>CONFIGURE SPLIT VALUATION.

We will now create/associate a material for 1000 plant after activation of H as shown below;

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We will activate H – Origin for plant 1000

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Vendor Evaluation

Vendor evaluation customization settings are under purchasing MM.

1) Herein we define weighing keys;

As description indicates 01 is for ½ ratio split and 02 is for customizing the ratio therein such as ¼ of
the weight/points.

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 2) We then define criteria

There are two kinds of evaluation criteria, Main criteria and Sub criteria;

Under each main criteria one can find enlisted sub criteria with scoring method with short text
describing auto/semi-auto determination.

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3) Scope of list is defined as below;

4) Define purchasing organization data for vendor evaluation,

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Here for each purchase organisation main criteria and a sub criteria can be defined;

Standard main criteria available in SAP are, Price, Quantity, Delivery and Service accordingly in
Criteria number series.

And each main criteria will have its enlisted sub criteria in accordance with their weightage scale;

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Similarly Main criteria having their weightage skill;

Points and scores for all sub criteria are recorded therein as all in reference with purchase org;

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MASTER DATA;

Purchasing under easy access;

Maintaining vendor evaluation (ME61) in reference to purchase org and vendor

Auto new evaluation for sub criteria, gets picked up in accordance to SPRO setting;

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Return PO

There are 2 types of return PO,

1> PO has met with GR and IR has been completed too, later realised goods need to be
returned, in this case we need to have master data such as vendor master (RE) and Re
document type in ME21N.

Vendor master, created via XK01 and Return Vendor check box is ticked. This will ask for
other parameters such as account group, shipping condition and customer number. If the
earlier 2 parameters are given the later customer master/number is automatically created.
Return Vendor with respective purchasing organisation will be created.

Return document type PO is to be created in reference with RE Vendor; this will be identified
with shipping tab.

Followed by this, create an OBD via VL10B followed by pick, pack and PGI.
Once PGI completes, you can see 161 movement type registered in PO history tab.

Once done, perform credit memo in MIRO.

2> For PO where only GR has been posted and no invoice is performed.

For a regular PO with GR performed, proceed with performing return delivery over MIGO.
With respect to given material, we are cancelling material doc posted during GR. Here in PO
History tab, 122 movement type is registered.

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