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8.3 VALUATION LEVEL/ AREA Every Material need to be valuate on Quantity basis or Quality Basis sometimes on both conditions. In SAP this valuation can be done at either Plant Level or Company Level and the most advisable method is at PLANT level. WHY IT NEED TO BE DONE AT PLANT LEVEL Consider Plant A and B are having the same material X but different moving price 4 and 5 respectively. In that case if you valuate at company level then the valuation will take anyone moving price only, but if you valuate at plant level then the correspondent moving prices will take in account. For these kind of reason only Valuation Levels are need to be set at PLANT Level.   Factors like Transport charges, different vendors, contract price will change Moving Price from Plant to Plant Once the Valuation Level is set at Plant Or Company Level it cannot be changed  HOW TO DEFINE VALUATION LEVEL/AREA STEP 1 STEP 2 STEP 3 STEP 4...

8.2 PURCHASE ORGANIZATION & PURCHASE GROUP PURCHASE ORGANIZATION ·          PUR.ORG is responsible for all procurement activities. ·          PUR.ORG is denoted by a four digit alphanumeric key. TYPES OF PURCHASE ORGANIZATION ·        PLANT SPECIFIC PURCHASE ORGANIZATION ·        CROSS PLANT PURCHASE ORGANIZATION ·        CROSS COMPANY PURCHASE ORGANIZATION ·        CENTRALIZED PURCHASE ORGANIZATION ·        REFERENCE PURCHASE ORGANIZATION ·        STANDARD PURCHASE ORGANIZATION                 If we want to use the agreement or any other purchase related document in common with more than one PUR.ORG ...