💰 SAP Valuation Area — Complete Guide
The level at which stock VALUE is stored. System-wide one-time choice: Plant level (standard) or Company Code level (rare). Configuration, OBYC integration, split valuation.
📋 Snapshot
| What it is | The level where money value of stock is stored |
|---|---|
| Options | Plant level (recommended) OR Company Code level (rare) |
| Mandatory? | YES — system-wide one-time setting |
| T-code to define | OX14 |
| Database table | T001K (per valuation area), MBEW (per material per val area) |
| Reversible? | Practically NO after go-live |
1. Plant level vs Company Code level
| Option | Result | Use when |
|---|---|---|
| Plant level (recommended) |
Each plant has its own MAP/Std price for the same material | 99% of projects. Required if PP module is in use. |
| Company Code level | All plants of a CC share one price for the same material | Legacy / specific country needs. Cannot use PP. |
2. How Valuation Area connects to OBYC
The Valuation Area level drives OBYC G/L account determination:
- Movement type (e.g. 101) triggers Transaction Key (BSX, WRX)
- Material Master provides Valuation Class (e.g. 3000 raw, 7920 finished)
- Plant gives Valuation Grouping Code (e.g. 0001)
- OBYC lookup: (BSX, 0001, 3000) → G/L 200000 (Raw Materials Stock)
- FI doc posts: Dr 200000 / Cr 191100 (GR/IR)
3. Valuation Grouping Code (OMWM)
An optional grouping of plants with similar OBYC needs. Instead of maintaining OBYC per plant, you group similar plants.
- Activated via OMWM
- Plants assigned to groups via OMWD
- OBYC mappings then maintained per group (less duplicate config)
Example: All India plants → group 0001. All UAE plants → group 0002. OBYC entries for raw material inventory:
BSX + 0001 + 3000 → G/L 200000 (Raw Materials Stock - India chart)
BSX + 0002 + 3000 → G/L 7000 (Raw Materials Stock - UAE chart)4. Split Valuation
Advanced — same material in same plant, different prices for different "categories" (origin, quality grade, batch type).
Common use cases
- Material from different countries (India vs China origin)
- New vs Refurbished (mechanical parts)
- Different quality grades (Grade A, Grade B steel)
- Owned vs External (consignment vs own stock)
Configuration
- Activate split valuation — OMW0 globally
- Define valuation categories — OMW0 (e.g. H = origin)
- Define valuation types — (e.g. INDIA, CHINA under category H)
- Assign categories to plants — OMWC
- Material Master Accounting view — Set valuation category H, then create per type sub-records (MBEW row per material+plant+type)
5. "Is this possible?" — client Q&A
Can I mix valuation levels (some plants at plant-level, others at CC-level)?
NO. Valuation level is system-wide — one choice for the whole client.
Can I change valuation level after go-live?
Practically no. Requires SAP-supported conversion, full stock revaluation, downtime. Almost never done in real projects.
Can two plants have different prices for the same material?
Yes — that's exactly what plant-level valuation gives you. Common: different supplier, different freight per plant.
Do I have a choice if PP is in scope?
No — PP requires Plant-level valuation. SAP enforces this.
Split valuation pros/cons?
Pro: tracks different price categories of same material. Con: master data complexity, every transaction must specify the valuation type.
6. PSEC valuation setup
Valuation Level: PLANT-LEVEL (set once via OX14)
Valuation Grouping Code (OMWM activated):
0001 Pakistan plants (1100, 1200, 1300)
0002 UAE plants (2100)
OBYC entries (sample):
BSX + 0001 + 3000 → G/L 200000 (Raw Mat Stock - PK chart)
BSX + 0002 + 3000 → G/L 7000 (Raw Mat Stock - UAE chart)
Split valuation: NOT activated (simple setup)