Tag Archives: SAP configuration

Define Valuation Level

The valuation level is an important configuration step because it specifies the level at which material stocks are valuated for the whole client.

• Depending on the valuation level chosen, accounting data (in particular the valuation price) is maintained for each plant or for each company code in the material master record.
• If material stocks are valuated at company code level, all plant stocks of a material are managed in a joint stock account for each company code.
• If material stocks are valuated at plant level, the material stocks for each plant can be managed in different accounts. We can define a separate account determination for each plant

Menu Path: Implementation Guide for R/3 Customizing (IMG) -> Enterprise Structure -> Definition -> Logistics general -> Define Valuation Level


Transaction Code: OX14


Once set, it is not possible to switch the valuation level from plant to company code, or vice versa. If absolutely necessary to subsequently change the valuation level, contact your SAP consultant because a data conversion is required.


Step 1. Click at execute button execute


Step 2. Choose the appropriate valuation level as you business requirement


Define Plant

As a part of the Logistics Organizational Structure, Plants are defined in SAP. The ‘Plant’ is an operating area or a branch or a location within a company. Each ‘Plant’ is assigned to a single ‘company code’. A ‘company code’ can have several ‘Plants’.

Before setting up new plant, certain other settings need to be defined:

Factory calendar
A factory calendar identifies the workdays, public holidays, and company holidays. The SAP system is delivered with some factory calendars, but a new factory calendars can be configured on a companys schedule.

Country Key
A country key is required to define a plant. The system is delivered with country keys, and new country codes need to be configured if athey are not in the system.

Region Keys
A region code is required along with the country code. The region is defined as a state or province associated with a country

Create a new plant
A four-character string defines the plant field.

Menu path : Implementation Guide for R/3 Customizing (IMG) -> Enterprise Structure -> Definition -> Logistics general -> Define, copy, delete, check plant.



Step 1 . Go to SPRO

Step 2. Double click at Define Plant

Step 3.  Click at New Entries button

Step 4.  Key in your new Plant here. Afterwards click at save icon to apply your new configuration.