Friday, 19 December 2014

Explain Split Valuation. Why is it Necessary?

Split Valuation allows sub stocks of the same material to be managed in different stock
accounts. This allows sub stocks to be valuated separately, and every transaction is carried out at the sub stock level. So, when processing a transaction, it is necessary to mention the sub stock.
The split valuation is necessary if the material has:
􀂃 Different Origins
􀂃 Various Levels of Quality
􀂃 Various Statuses

It is also required in situations where you need to make a distinction between in-house produced materials and materials procured externally, or if there is a distinction between different deliveries.


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