Explain the Basic Steps in configuring Split Valuation?

The five basic steps for Configuring Split Valuation are:

1. Activate Split Valuation

2. Define Global Valuation Types

For each Valuation type you need to specify:

(a) whether external purchase orders are allowed,

(b) whether production orders are allowed

(c) the account category reference.

3. Define Global Valuation Categories

For each valuation category specify:

(a) default valuation type to be used when purchase orders are created and whether this default can be changed,

(b) default valuation type to be used when production orders are created and whether this default can be changed

(c) whether a valuation record should be created automatically when a GR is posted

for a valuation type for which no record yet exists.

4. Allocate Valuation Types to the Valuation Categories

5. Define which of the Global Categories/Types apply to which Valuation Areas