For a material subject to split valuation, at which level is the price control moving average set in SAP Material Management?

The price control for a material subject to split valuation is set at the valuation area level in SAP Materials Management. The valuation area typically corresponds to a plant or a company code and is the organizational level at which inventory valuation and accounting take place.

When split valuation is enabled for a material, it allows for different valuated stock types within the same material, such as differentiated stock based on criteria like condition or quality. Each of these stock types can have its own price and valuation method. By defining the price control at the valuation area level, SAP ensures accurate financial accounting, as it allows for the treatment of the various stock types independently.

This setup is critical because different stock types may be acquired or manufactured under different conditions, leading to variations in pricing and valuation. For instance, the price for a specific quality of material may differ from that of a scrap or defective quality. Thus, the valuation area being the level at which the price control is applied enables appropriate tracking and management of costs associated with different stock types in the system.