SAP S4HANA: Non-Valuated & Non-Stock Items - Process & Configuration

What's the difference between Valuated, Non-valuated and Non-stock items? what are the related financial entries and the configuration steps in SAP S4HANA
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[@gamingwithasmile5081]

Thanks and Lots of love from India

[@AbdullahGalal]

Thank you for you words! Sending gratitude back to india!

[@markalbanburton]

Very interesting. Thanks Abdullah. Very well explained and helped me in what I'm looking at right now.

[@mguru1982]

Highly informative for beginners ! Lots of love from India.

[@ashishsingh7569]

You're teaching very clearly thanks for sharing

[@AbdullahGalal]

You are very welcome

[@olayinka5494]

I am amazed that this hasn't gotten a million views. Thanks for breaking this down. God bless you

[@AbdullahGalal]

I'm amazed too :) help me by sharing the video Thank you Olayinka

[@SAPUSER999]

Thank you for your clear explanations !

[@AbdullahGalal]

You are welcome!

[@saibalu4320]

Nice info Abdullah. it's simple and well explained.

[@AbdullahGalal]

Thanks a lot

[@harshawickramasinghe143]

Thx Abdullah..

[@khushhalpathan]

Really nice vedio for knowledge Thanks so much Abdullah Bro

[@AbdullahGalal]

It's my pleasure

[@vishalchaurasia1447]

Awesome explanation

[@AbdullahGalal]

Thanks!

[@rk6261]

Great explaining sir.

[@AbdullahGalal]

Thanks and welcome

[@MEANDMUSIC]

Hey! you are the best thank you for well explanation

[@AbdullahGalal]

You're welcome! thank you!

[@erkanvarol51]

excellent explanation.

[@AbdullahGalal]

Glad it was helpful!

[@diegopagura421]

Great video! Thanks

[@AbdullahGalal]

Glad you liked it!

[@dearloop1513]

The excellent explanation

[@AbdullahGalal]

Glad it was helpful!

[@arunthathigopalapillai7276]

Very informative and interesting

[@AbdullahGalal]

Glad you think so!

[@Pedro38906]

Well explained, Thanks

[@AbdullahGalal]

You're welcome!

[@preetambagde7958]

Good information.

[@AbdullahGalal]

Thanks

[@pritamjawale1968]

Supperrr sir nice explaination👌

[@AbdullahGalal]

Thank you!

[@basemshier1764]

ماشاء الله عليك كلامك ألماظ متابعك بشدة : باسم

[@AbdullahGalal]

Thank you Basem!

[@mokka61]

Really Sir , God bless you, great effort , honst explanation thanks dear & could you please how SAP adjust the COGS after calculated the actual expenses to avoid the duplication of cost in P&L and standard cost

[@chiit70]

Great explaining Bro

[@AbdullahGalal]

Thanks!

[@mannepalliashwinkumar6040]

Well explained Thanks But I guess it could've been great if you shown the Materials masters as well with required views for all three material... Thank you

[@AbdullahGalal]

Very good note, thank you!

[@srvuyyuru321]

Thank you so much for your great effort to make these videos. Great detailed explanation. For Non-valuated materials, you've shown to input the GL in PO with K a/c assignment category. So the same GL has been used for both MIGO and MIRO. So, no accounting view in OMS2, means no valuation class is required to derive as it is a manual input in PO directly? In which case GBB>VBR you suggested for the above comment? How GR/IR is determined for Non-Valuated and Non-stock items?

[@AbdullahGalal]

Having the accounting view on allows using the valuation class which is more flexible and recommended. In this old demo I had no accounting view for Non-Valuated but there's accounting view for Non-Stock. In my demo system at the time I had the GR/IR determined in OBYC without valuation classes (only one GR/IR for all materials). GBB VBR is for the consumption account in PO, you can maintain it with or without valuation class based on the requirement

[@adhiprasetyokusdiyanto5135]

Great..

[@AbdullahGalal]

Welcome

[@liorblum1802]

Thank you very much for the amazing video. I have one question if I good receipt a material (Material Type UNBW) which managed Quantity only . I don't see the Quantity in MBEW but I can see it only in MARD. In t-code MMBE I see the Quantity in Storage Location. Could you please explain it? Thanks Lior

[@SeemaM.]

A lot of learning thank you 😊 could you please create video on order to cash cycle

[@AbdullahGalal]

Welcome, will do my best

[@danieljessin3519]

@@AbdullahGalal yes please. OTC for Asset sales.

[@AbdullahGalal]

@@danieljessin3519 will do my best!

[@ajinkyahatolkar6518]

when you were showing in OMS2 about NLAG materials, accounting view for NLAG was ticked. how ?? ideally, there is no accounting view for NLAG material. also, how to check which account is linked to moment type 101 for NLAG material since there is no valuation class for the same ??

[@kamalyadav9003]

Thanks Abdullah, Can you please share the Good list of practical examples for which materials we should consider, UNBW and NLAG material Type

[@AbdullahGalal]

A quick Google search and I found this. The first comment gives many examples answers.sap.com/questions/6957177/exact-difference-between-non-stock-nlag-and-non-va.html

[@MohamedGamal-rp5ck]

Hello Abdallah what is the case of using the same material which is valuated Qtys and value to be purchased on account ass K is in this way should insert the GL manual in P.O is there automatic account determination for this case

[@susammachacko6469]

Hi, Well presented! I have a doubt. For eg, I am regularly purchasing non-stock materials, what set up should I do to allow my system to automatically propose specific account for this NLAG.

[@AbdullahGalal]

Assign the GL in Transaction OBYC, under GBB > VBR I've a full free course published for Accounting Determination in MM, you can check it if the above is not clear

[@islammohamed-ks7so]

Hello How did you configure the WRX in OBYC when the material type ZNV has not accounting view and hence no Valuation Class ?

[@abdallahhamdini2497]

Dear Abdullah, I really appreciate your help and explanation, I only have questions about the non valuated material and the non stockage one, how can we do the automatic G/L account assignment without the valuation class in material master accounting data. It would be very useful if u showed the material master of the 3 materials.

[@AbdullahGalal]

is recommended to have accounting views and valuation classes for all kinds of materials to be able to easily do flexible account determination

[@abdallahhamdini2497]

@@AbdullahGalal It works perfectely using the accounting view, thanks abdullah

[@AbdullahGalal]

@@abdallahhamdini2497 Glad to know! thank you for the update

[@abdul_kareem116]

How the gr ir ac is determining for non stock material, could you please explain I have doubt on this

[@varunjain6860]

I have a query as what I have read is for non valuated GR, there is no FI accounting, but in your video we are able to see the FI accounting. Please can you help me resolve this mis-understanding?

[@jyothirmai3309]

Can you please explain about physical inventory and release strategy process

[@AbdullahGalal]

Will do my best

[@MohamedGamal-rp5ck]

MSA enta very professional

[@AbdullahGalal]

Thanks a lot Mohamed!

[@devenderparmar1987]

Hi Abdullah, please post 1 video on FOC goods procurement along with the planned delivery cost with no payment to supplier

[@AbdullahGalal]

Hi Devender, will do my best

[@shashankt5143]

How do you return the goods to the customer after finding no fault though sd?

[@fatemeedalatbin477]

thank you , i have question , non stock item is free material? and if item number 3 is non vaulted and non stock so why did you create line item for vendor?

[@AbdullahGalal]

Non stock item is not free material, it has a value but we post it to an expense account directly not balance sheet while free item has no value at all. Non valuated items also have a value posted directly to expenses as you see in goods receipt and they have a price and we have to pay to the vendor this is why there's a vendor line.

[@SureshKumar-zb2uf]

Well Explained Thank you, I have a scenario like below please check once. for material type NLAG / UNBW means non stock / non valuated , purhcase order created with Cost center account assignment " K " ( Qty 10 Gross Price 10 with Freight 20 while doing MIGO KBS account has to hit 100 + (Here freight value should not add ) WRX 120 - Freight account FR1 20 - ,, please reply the solution how to maintain condition type setting and pricing procedure ,, thank you for your support

[@AbdullahGalal]

Hi Suresh, I explained in detail how to configure the Freight condition to post to a separate GL Account here: kzbin.info/www/bejne/fnizeq2EnaiGbdk

[@faizalselot4158]

Is it possible to purchase a non stock items without material material master data?

[@sumantsharma679]

I need Non-Valuated Stock in the system. Same material, the same plant, when we buy material, it is inventory, but I wanted to bring the same material in the same plant as Non-Valuated Stock, it will update Qty but no value. This stock will be for particulate Internal Order or WBS projects.

[@AbdullahGalal]

Define a normal material, when you buy it for stock do a normal purchase, but when you buy it for a project use the Account Assignment "K" and charge it to the project

[@tormasimbolon55]

Thankyou for video, Please advise .. i use Tcode MIR5 how to shown GL account for document no MIRO, 🙏

[@myadagiri4344]

How to pick the GL account for non validated material, what are the configuration required?

[@AbdullahGalal]

This item has no accounting view so no valuation class, the GL account comes from OBYC > GBB > VBR line with empty valuation class

[@myadagiri4344]

@@AbdullahGalal thank you for your reply. I will check once

[@ajayutekar2]

If asset to be created with Material Master then what should be Material Type? NLAG or UNBW?

[@AbdullahGalal]

Hi Ajay, is your question related to Capital Procurement for India? this is an India specific process, check out this document archive.sap.com/kmuuid2/808c60ca-013b-2c10-34a2-94d1eb442e6f/Capital%20Procurement%20in%20SAP.pdf

[@ajayutekar2]

@@AbdullahGalal Thank you...

[@m77ast]

Just subscribed - the work is masterful. If I can support in any other way do let me know.

[@AbdullahGalal]

Thank you! To support the channel, you can join the channel membership

[@m77ast]

@@AbdullahGalal kindly let me know the process.

[@tormasimbolon55]

What Tcide can shown GL account after do MIRO?

[@sankarpalaniswamy2430]

We have 4 different plant based on business unit but we have common IT and HR department who are responsible to purchase Laptop and stationary items. So kindly let me do we need to create separate plant for indirect purchase to handle ( IT and HR team procurement) if so how this procurement could distributed to actual business unit .

[@AbdullahGalal]

From a finance point of view, we don't care much about plants, for the costs related to these laptops and stationery we will use separate cost centers. From a procurement point of view, I can't fully advise but I also don't see the reason why you need separate plants

[@kasunchamara2737]

Do we consume the non-value stock item in the BOM PP?

[@AbdullahGalal]

Yes, I ve seen this a lot, with items like water for example

[@KRANTZSVLOG]

No goods receipt possible for purchase order ... what does it mean

[@AbdullahGalal]

What's the full business case ?

[@KRANTZSVLOG]

@@AbdullahGalal In the meantime I found out that in the item field in the PO the good receipt wasnt activated

[@y.aditya3510]

can give examples for non stock item?

[@AbdullahGalal]

cleaning materials, cafeteria supplies, office supplies

[@ibrahimrefaai]

like without watching

[@AbdullahGalal]

Thanks

[@SM-qf3pf]

Hello sir Ecc is extended till 2027 is it true

[@AbdullahGalal]

I don't have any confirmed information on this

[@SM-qf3pf]

@@AbdullahGalal Ho Thank you sir

[@bjyotiraditya3564]

can you post dmee app config

[@AbdullahGalal]

will do my best

[@ravighatole]

Good explanation..but one question here how the quantity of non valuated material is consumed? You posted GR in storage location..from there how to remove it? And what is the accounting entries?

[@AbdullahGalal]

You use them like any normal material, with no accounting entry as it has zero value. Only MM stock update entry

[@ravighatole]

​@@AbdullahGalalyes, right, I checked later , it's working as per your input.. Thanks for quick response