Can anyone explain the following:
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1. In the accounting view of Material Master (Material master has various views eg., Basic views, Purchasing views, Production, Sales and Distribution, Accounting and Controlling views) amongst other values we have a Valuation Class field. This Valuation class is the vital link which ensures that Accounting documents are posted automatically. Every material will have a valuation class field. Examples of Valuation Class might be Finished Goods, Raw Materials etc.
2. The combination of this Valuation Class and the Movement Type helps in determining the Gl accounts. GL accounts are automatically updated with this combination with the help of transaction key for the GL code available using the transaction code OBYC.
Material movements in MM happen with respect to a Movement Type. Examples of Movement Type could be the following:
SAP FI (Financial Accounting) Module
Financial Accounting - General Topics
You group together different materials with similar properties into valuation classes so that you do not have to manage a separate stock account for every material.
The following table contains examples of possible valuation classes:
Which valuation class a material can be assigned to depends on the material type. You can define the following assignments in Customizing:
A material is assigned to a valuation class in the material master record. The system checks whether the material type allows the material to be assigned to the valuation class specified.
The system refers to the valuation class of a material to determine which stock account to post to when a posting is made for this material.