At which level is the price control moving average set for a material subject to split valuation in SAP Materials Management?

The price control moving average for a material subject to split valuation is set at the valuation area level. In SAP, the valuation area can either be the plant or the company code, and it determines how the financial valuation of inventory is managed. When split valuation is enabled, materials can have different valuations depending on specific criteria, such as condition or origin.

Setting the price control at the valuation area level allows for a more granular approach to inventory evaluation, accommodating different prices for similar materials purchased under different conditions or from different suppliers. This level facilitates tracking and reporting, ensuring that each variation of a material is appropriately managed within the system.

Choosing the valuation area as the locus for setting moving average price control aligns with SAP’s ability to handle diverse material valuations while maintaining accurate financial data, which is crucial for effective financial reporting and management.