For a split-valuated material, the price control set in the accounting view at the valuation area level (the "header record") dictates the price control options for the individual valuation types. A refurbishment process inherently involves changes in material value (e.g., from a low-value 'defective' state to a higher-value 'repaired' state). The moving average price ('V') is the appropriate price control to automatically reflect these value changes. To use moving average price for the valuation types, the system requires that the price control for the valuation area header record must also be set to moving average price ('V'). This is a fundamental configuration prerequisite.

A. For the valuation area, the price control must be standard price.

This is incorrect. Setting the header to standard price ('S') would force all valuation types to also be 'S', which is unsuitable for a refurbishment process.

B. For each possible valuation type, the price control must be moving average price.

While this is the recommended practice for the valuation types in this scenario, it is a consequence of the business need, not the primary system prerequisite. This choice is only possible if the valuation area is set correctly first.

C. For each possible valuation type, the price control must be standard price.

This is incorrect. Standard price does not automatically update with value changes from goods movements, making it unsuitable for tracking the value increase during refurbishment.

1. SAP Help Portal (S/4HANA): In the documentation for "Valuation of a Material with Split Valuation

" it is stated as a prerequisite: "In the accounting view of the material master record: ... For the valuation header record

you have entered V (moving average price) as the price control. (If you choose S

you must use the standard price for all valuation types.)" This confirms that to use 'V' for the types

the header must be 'V'.

Source: SAP Help Portal

S/4HANA

"Prerequisites for Valuating a Material with Split Valuation".

2. SAP Learning Hub: The course content for SAP S/4HANA Sourcing and Procurement (e.g.

TS452) explains that the price control in the valuation header record constrains the price control in the valuation-type-specific data. For processes with fluctuating values like refurbishment

moving average price is the standard recommendation

which necessitates setting the header record to 'V'.

Source: SAP Learning Hub

Course TS452

Unit: "Valuation and Account Assignment".

3. SAP Press Publication: In "Materials Management with SAP S/4HANA: Business Processes and Configuration" by Akhtar & Murray

the configuration of split valuation is detailed. The book clarifies that the header record's price control setting is a critical first step that determines the valuation strategy for all subordinate types.

Source: Akhtar

J.

& Murray

M. (2021). Materials Management with SAP S/4HANA: Business Processes and Configuration. SAP Press. Chapter 6

Section 6.5 "Material Valuation".