Definition
Indicates a grouping of valuation areas to facilitate the administration of the table of standard accounts by minimizing the number of entries
Definition: valuation area
Materials Management (MM)
Organizational unit in Logistics dividing up a company for the purpose of valuating stocks in a standardized and consistent manner.
Classification
Business object
Application:
Inventory must be valuated at plant level for product costing and order costing.
Integration
Inventory is valuated either at plant or at company code level. At plant level, a plant represents a valuation area. At company code level, a company code represents a valuation area.
To valuate inventory in a plant, you must assign each plant to a valuation area. Each valuation area is assigned to a company code for balance sheet purposes.