In SAP S/4HANA, which organizational unit is responsible for the valuation and inventory management of materials?

The plant is the organizational unit responsible for the valuation and inventory management of materials in SAP S/4HANA. In this context, a plant is a central location where inventory is held and managed. It plays a key role in materials management processes, including handling stock levels, monitoring inventory movements, and determining how materials are valued for financial reporting.

When it comes to valuation, the plant defines the material valuation strategies based on specific criteria, including the costing method and the valuation class assigned to materials. Inventory management functions carried out at the plant level include tracking goods receipts, goods issues, stock transfers, and physical inventory counts.

The other organizational units serve different functions: the company code is primarily used for financial accounting; the purchasing organization manages procurement processes; and the storage location focuses on the physical storage of materials within a plant. Thus, while these units are essential in their own rights, they do not encompass the complete set of responsibilities related to inventory valuation and management like the plant does.