What is valuation function in SAP FIN-BAC - Business Accounting?

SAP Term: valuation function

• Component: FIN-BAC

• Component Name: Business Accounting

• Description: Function that determines how a valuation object is valuated based on its variables. The following valuation functions are available: INVENTORY: Valuation based on the inventory situation of the material PURCHASE_ORDER: Valuation based on the inventory situation of the material specified in the purchase order GET_FIN_OBJECT_PRICE: Price of the FIN object in CWM 1.0, the material only GET_FIN_OBJECT_PRICE_FIX: Fixed price of the FIN object in CWM 1.0, the material only GET_PLANNED_ACTIVITY_PRICE: Planned price of the activity type from ERP GET_ACTUAL_ACTIVITY_PRICE: Actual price of the activity type from ERP These functions are used in the following valuation strategies: INVENTORY_RECEIVER: Inventory valuation receiver: Valuation function INVENTORY with the receiving material inventory INVENTORY_SENDER: Inventory valuation sender: Valuation function INVENTORY with the sending material inventory STOCK_TRANSFER: Stock transfer: Consists of the following strategy sequence: 1. Valu

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• Key Concepts: 
  Valuation function is a feature of the FIN-BAC Business Accounting component of SAP software. It is used to determine the value of an asset or liability at a given point in time. This value is then used to calculate the financial position of a company. The valuation function can be used to calculate the current market value of an asset or liability, as well as its future value. 
  
  How to use it: 
  The valuation function can be accessed through the FIN-BAC Business Accounting component of SAP software. Once accessed, users can enter the relevant information such as the asset or liability type, its current market value, and its expected future value. The valuation function will then calculate the current and future values of the asset or liability. 
  
  Tips & Tricks: 
  When using the valuation function, it is important to ensure that all relevant information is entered accurately. This will ensure that the calculated values are accurate and reliable. Additionally, users should be aware that the valuation function only calculates values based on current market conditions and does not take into account any potential changes in market conditions in the future. 
  
  Related Information: 
  The valuation function is just one of many features available in the FIN-BAC Business Accounting component of SAP software. Other features include financial reporting, budgeting, and forecasting tools. Additionally, users can access tutorials and other resources to learn more about how to use this component effectively.