SAP Split Valuation
Split valuation in SAP allows you to valuate stocks of a material differently, for example, according to procurement type, origin, or quality, even though they are managed under the same material number.
Split valuation in SAP allows you to value stocks of a material differently, even though they are managed under the same material number. This function is mainly used in the SAP Materials Management (MM) module and is particularly relevant for companies with different procurement types, quality levels or countries of origin.
Separate valuation allows materials to be assigned different prices depending on whether they are manufactured in-house, procured externally or their country of origin. This keeps the cost structure transparent and ensures that the valuation in financial accounting is correct.
What does split valuation mean in SAP?
Normally, a material is valued uniformly in the SAP system, regardless of where the stock originates.
With split valuation, however, partial stocks of a material can each have their own valuation. These partial stocks are managed separately in the system, even though they belong to the same material number.
A practical example:
| Material | Assessment type | Procurement | Price |
| Material A | In-house production | Production | 10€ |
| Material A | External procurement | Sourcing | 14€ |
This allows different cost structures to be clearly represented in the system without having to create multiple material numbers.
Key terms in split valuation
The split assessment is based on several key SAP terms.
| Term | Significance |
| Valuation group | Organisational unit for material valuation (e.g. plant) |
| Assessment type | Criterion for separating the assessment |
| Assessment type | Specific form of a valuation type |
| Sub-inventory | Portfolio with own valuation |
Example:
| Assessment type | Valuation types |
| Procurement method | In-house production / external procurement |
| Origin | Germany / China |
| Quality | A-grade goods / B-grade goods |
The valuation type therefore defines the separation criterion, while the valuation types represent the specific variants.
Typical application scenarios
Split valuation is used when a material can have different economic characteristics.
Typical examples are:
In-house production and external procurement
A company produces a material itself, but also purchases it externally when necessary.
Different suppliers or countries of origin
Materials from different regions can vary greatly in price.
quality differences
Inventories can be divided into A-grade and B-grade goods, for example.
Special stocks or promotional goods
Certain batches or special productions can be evaluated separately.
Split valuation allows these differences within a material to be transparently reflected.
Activation and setup in SAP
To enable a material to be valuated separately, the function must first be activated in Customising.
Typical customising path:
SPRO → Materials Management → Valuation and Account Determination → Split Valuation
The following steps are then carried out:
- Define valuation type (e.g. procurement type)
- Create valuation types (e.g. in-house production/external procurement)
- Activate split valuation in the material master
Activation takes place in the accounting view of the material master.
Important: Subsequent activation is usually only possible if there are no stocks or open documents.
Impact on goods movements
For materials with split valuation, a valuation type must be specified for many logistics processes.
Typical examples:
| Process | Relevant information |
| Goods receipt | Assessment type |
| Goods issue | Assessment type |
| Relocation | Assessment type |
| Inventory | Assessment type |
The system then posts the movement only to the corresponding sub-stock.
Split valuation in SAP S/4HANA
SAP S/4HANA has further developed material valuation from a technical perspective. The mandatory use of the material ledger is particularly relevant.
The material ledger enables:
- Detailed material valuation
- Multi-currency valuations
- Parallel valuations (e.g. group and profit centre view)
In addition, material documents have been consolidated in the MATDOC table, allowing inventory and valuation information to be evaluated more quickly.
Advantages of split assessment
The use of split valuation offers several advantages:
- Transparent cost structure for different types of procurement
- Reduction in material numbers, as variants are managed within the same material
- More flexible account determination in financial accounting
- More accurate cost accounting
This function is therefore frequently used, particularly in manufacturing companies or complex supply chains.
FAQ on SAP split valuation
What is the difference between valuation type and valuation method?
The valuation category defines the separation criterion (e.g. procurement type).
The valuation type describes the specific variant (e.g. in-house production).
Does each material have to be assessed split?
No. The function is activated in the system, but can only be used for selected materials.
When should split assessment be used?
This function is useful if materials:
- come from different sources
- have different prices
- have different quality levels
Fazit
Split valuation in SAP enables differentiated valuation of material stocks within a single material number. This allows companies to accurately reflect different procurement types, countries of origin or quality levels in an economically correct manner.
This concept is becoming even more important in SAP S/4HANA thanks to the integrated material ledger, as material valuations are more closely linked to financial accounting and cost accounting.
