What is Valuation Area? How is it linked with Valuation Class? What is the
significance of Valuation Area?
Valuation areas are nothing but the level at which you want to valuate your
materials. SAP provides two levels of valuation Plant level and company code
level.
For example:
Valuation at plant level: Suppose you have two plants one in Hissar and one
in Andhra Pradesh, Then of course you would like to valuate the rawmaterials at
plant level as because you have got transportation cost and taxes etc to account
for.
Valuation at company code level:Here you valuate all your material in same
way.
In One client valuation areas can either be set to plant level or company
code level. Once you have made this setting this cant be changed
Valuation classes are linked to valuation class in Tcode OBYC
If your valuation area is at plant level then in OBYC you will find a coloumn
for Valuation modifier you can provide your plant there.
For example:
Valuation Mod Valuation class Account
plant 1 3000 200130
