‘Split Valuation’ allows substocks of the same material to be managed in different stock accounts. This allows substocks to be valuated separately, and every transaction is carried out at the substock level. So, when processing a transaction, it is necessary to mention the substock.
The ‘split valuation’ is necessary if the material has:
Various Levels of Quality
It is also required in situations where you need to make a distinction between ‘in-house produced materials’ and ‘materials procured externally,’ or if there is a distinction between ‘different deliveries.’
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