SAP Functional, Basis Components,
and ABAP Programming Books
Plant 0001 is the SAP default.
OX14 - Define Valuation Area (Tick
one only- Once your system go live, no more changes)
Most company take the SAP recommended choice - Value Material Stock at
Value Material Stock at Plant or Company Level
OX10 - Create / Change / View Plants
If you valuate material stocks at plant level, the plant is the valuation
If you valuate material stocks at company code level, the company code
is the valuation area.
The decision you make applies to the whole client.
OVXB - Create / Change / View Division
OX18 - Assign Plant to company code
e.g. 0001 - 0001 - All Plants
Px1 - Plant Px1
Px2 - Plant Px2
OX19 - Assignment of company code
to the Controlling Area
OB38 - Assign company code to Credit
OMJ7 - Assign business area to Plant/Valuation
area and division
e.g. Plant Px1 - Business Area Bx1
Assign Valuation area to the Business Area
.e.g. Valuation area Vx1 - Business Area Bx1
Business Area Bx2
OMS0 - Assign Factory Calendar to
the Plant and Business Area
The plant plays an important role in the following areas:
If you want to use the application PP (production planning) or product
costing and job-order costing, you must set valuation at plant level.
Material Valuation - If the valuation level is the plant, the material
stocks are valuated at plant level. Each plant can have its own material
prices and account determination.
Inventory Management - The material stocks are managed within a plant.
MRP - Material requirements are planned for each plant. Each plant has
its own MRP data. Analyses for materials planning can be made across plants.
Production - Each plant having they own production/planning.
Costing - In costing, valuation prices are defined only within a plant.
Plant Maintenance - If a plant performs plant maintenance planning
tasks, it is defined as a maintenance planning plant. A maintenance planning
plant can also carry out planning tasks for other plants (maintenance plants).
The valuation level that you choose affects
Effect on the maintenance of material master records:
the maintenance of material master records
the G/L accounts in which material stocks are managed
the G/L accounts to which transactions are posted in Materials Management
Depending on the valuation level chosen,
Effect on G/L accounts:
you maintain accounting data in the material master record for each plant
or for each company code
you define a valuation price for the material in each plant or in each
If material stocks are valuated at company code level, all plant stocks
of a material are managed in a joint stock account for each company code.
If material stocks are valuated at plant level, you can manage the
material stocks for each plant in different accounts. For each plant, you
can define a separate determination.
If several plants are to use account determination, you can group these
plants in "Valuation and Account Assignment" Customizing.
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