Valuation Class in SAP MM
🔹 Definition:
Valuation Class is an attribute in the material master that
determines the general ledger (G/L) accounts to which
material transactions are posted in Financial Accounting (FI).
IL
It links Material Master records to G/L accounts through
H
the Automatic Account Determination process.
SA
🔹 Purpose:
AR
To group materials with similar accounting requirements.
E W
Enables automatic posting of material movements (e.g., goods
B
receipt, goods issue, inventory valuation) to correct G/L
B
accounts.
PA
Simplifies and standardizes account determination in
inventory transactions.
🔹 Relation to Account Category Reference (ACR):
Valuation Class is assigned to an Account Category
Reference.
Account Category Reference (ACR) is assigned to a Material
Type.
This controls which valuation classes are allowed for a given
material type.
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Valuation Class in SAP MM
🔹 Where is it Maintained?
1. In Material Master:
Views: Accounting 1 and Costing 1
L
Field: Valuation Class
I
2. Depends on:
A H
Material Type
S R
Valuation Area (plant or company code level, depending on
A
valuation level)
E W
Valuation Category (if split valuation is used)
A BB Valuation Material
P
Material Type Typical G/L Account
Class Example
ROH (Raw Steel Raw Material Inventory
3000
Material) Rods (BSX)
FERT (Finished Finished Finished Goods Inventory
7920
Product) Car (BSX)
HALB (Semi- Gear Semi-Finished Inventory
7900
Finished) Assembly (BSX)
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Valuation Class in SAP MM
🔹 Integration with FI:
1. During transactions like:
Goods Receipt (GR)
Goods Issue (GI)
IL
Inventory Posting
H
Invoice Receipt
SA R
2. The system uses:
A
Valuation Class + Transaction Key + Valuation Modifier
W
To determine the correct G/L account (via T-code: OBYC)
BBE
Transaction Key Description
PA BSX
WRX
Inventory Postings
GR/IR Clearing Account
GBB Offsetting Entry for Inventory
PRD Price Difference Account
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Valuation Class in SAP MM
🔹 Key Points to Remember:
You cannot assign a valuation class that is not allowed for the
material type.
Changing valuation class may result in re-posting inventory
IL
values.
H
Valuation class is essential for automatic G/L determination –
SA R
incorrect setup can lead to posting errors.
📌 Notes:
WA
BE
OMSK + OMSB + OBYC are the most critical config T-codes
B
for valuation class setup.
PA
MM01/MM02 are master data T-codes where valuation class
is selected.
OBYC is where valuation class is mapped to G/L accounts via
transaction keys like BSX, WRX, GBB, PRD.
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T-Codes Related to Valuation Class
in SAP MM (S/4HANA)
T-Code Description Purpose / Usage
MM01 Create Material Master Assign valuation class during material creation
MM02 Change Material Master View or change valuation class
MM03 Display Material Master Check assigned valuation class
L
Valuation Class
I
OMSK Create or maintain valuation classes
Maintenance
H
Define Valuation Classes Assign allowed valuation classes to material types
OMSB
for Material Types (via ACR)
A
Define Account Category Create account category references and link to
S R
OMS9
Reference valuation classes
A
OMS2 Define Valuation Area Set valuation level (plant or company code level)
W
Automatic Account Assign G/L accounts to valuation class +
E
OBYC
Determination transaction keys
B
Useful if valuation class options need to change
MMAM Change Material Type
with material type
A B
MR21 Price Change Can indirectly affect valuation (standard price)
P
MB1C Post Initial Stock Posts inventory to G/L via valuation class
Cancel Material
MBST Reverse inventory postings affecting G/L
Document
MIGO Goods Movement Triggers account postings using valuation class
Valuation class indirectly impacts accounting
MIRO Invoice Receipt
(GR/IR)
CKM3 Cost Component Split Analyze valuation of materials by component
Includes valuation class for determining cost
CK11N Create Cost Estimate
elements
CK40N Standard Costing Run Mass costing – valuation class relevant in valuation
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