Materials Management Terms in SAP

Materials Management Terms in SAP

Controlling (CO)

An organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control.  Operating results for profit centers can be analyzed using either the cost of sales approach or the period accounting approach. By analyzing the fixed capital as well, you can expand your profit centers for use as investment centers.

Profit Center
Key that uniquely identifies the profit center in the current controlling area.

Valuation Category
Determines whether stocks of the material are valuated together or separately.
Dependencies :In the case of split valuation , this indicator also determines which valuation types are allowed, that is, the criteria by which stocks can be valuated.

Valuation type
Invoice Verification (MM-IV)
A subdivision of a valuation category in split valuation.
Example : An enterprise manages its stocks of a material using the valuation category “Quality”, comprising the following

Valuation types:
High quality, Average quality, Inferior

Hazardous material number

Number that identifies the material as a hazardous material or as dangerous goods and assigns hazardous material data or dangerous goods data to it.
Use: The hazardous material number indicates that the material is dangerous, making special precautions necessary for its storage and shipment.

Valuation Class
Assignment of a material to a group of G/L accounts

With other factors, the valuation class determines the G/L accounts that are updated as a result of a valuation-relevant transaction or event such as a goods movement.

The valuation class makes it possible to:
1), Post the stock values of materials of the same material type to different G/L accounts
2), Post the stock values of materials of different material types to the same G/L account

Default value for the valuation class for valuated stocks of this material.

Use: The valuation class has the following functions:
1),  Allows the stock values of materials of the same material type to be posted to different G/L accounts
2),  Allows the stock values of materials of different material types to be posted to the same G/L account.
3), Determines together with other factors the G/L accounts updated for a valuation-relevant transaction (such as a goods movement

MM – Materials Management: Workflow Scenarios