What is valuation procedure in SAP FIN-BAC-INV - Inventory Accounting?

SAP Term: valuation procedure

• Component: FIN-BAC-INV

• Component Name: Inventory Accounting

• Description: Enables warehouse inventories and goods movements to be valuated with different approaches. The valuation procedure determines how business transactions affect the inventory value and therefore the inventory price of inventory objects. The following valuation procedures are available: Valuation at standard price Valuation at moving average price Changing the valuation procedure does not affect posted values. The valuation procedure can therefore be changed at any time.

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• Key Concepts: 
  Valuation procedure is a feature of the SAP Inventory Accounting component (FIN-BAC-INV) that allows users to assign different values to inventory items. This is useful for companies that need to track the value of their inventory over time, as it allows them to assign different values to items based on their current market value. 
  
  How to use it: 
  To use the valuation procedure, users must first create a valuation class in the system. This class will contain all of the necessary information about the item, such as its current market value and any applicable taxes or fees. Once this is done, users can assign this class to any inventory item they wish to track. 
  
  Tips & Tricks: 
  It is important to keep in mind that the valuation procedure only applies to inventory items and not other assets. Additionally, it is important to keep track of any changes in the market value of an item, as this will affect its assigned value in the system. 
  
  Related Information: 
  For more information on how to use the valuation procedure, please refer to SAP's official documentation on Inventory Accounting (FIN-BAC-INV). Additionally, there are many online resources available that provide detailed tutorials and best practices for using this feature.