What is material valuation in SAP MM-IM - Inventory Management?

SAP Term: material valuation

• Component: MM-IM

• Component Name: Inventory Management

• Description: Determination of the value of a stock of material. Valuation-relevant data on a material includes: Valuation price Assignment to a valuation class Selection of the valuation method: Valuation at standard price Valuation at moving average price

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• Key Concepts: 
  Material Valuation is a process in SAP Inventory Management (MM-IM) that determines the value of a material based on its current stock quantity and price. It is used to calculate the total value of a material in the inventory and to determine the cost of goods sold. 
  
  How to use it: 
  Material Valuation is used to calculate the total value of a material in the inventory. This is done by multiplying the current stock quantity of the material by its price. The result is then used to determine the cost of goods sold. 
  
  Tips & Tricks: 
  It is important to keep track of the current stock quantity and price of a material in order to accurately calculate its value. Additionally, it is important to regularly update the stock quantity and price in order to ensure that the Material Valuation process is accurate. 
  
  Related Information: 
  Material Valuation is closely related to other processes in SAP Inventory Management such as Goods Receipt, Goods Issue, and Stock Transfer. It is also related to other processes such as Cost Accounting and Financial Accounting.