In which scenario are all stocks of a specific material valuated together?

When discussing material valuation in the context of Enterprise Resource Planning (ERP) systems, particularly in SAP, the scenario where all stocks of a specific material are valuated together pertains to the company code.

A company code is the smallest organizational unit in a financial accounting structure. It represents an independent accounting entity and forms the basis for financial reporting. Under this organizational framework, all materials and their corresponding stocks that belong to a single company code are aggregated for financial purposes. This means that regardless of whether the materials are stored in different plants or sourced from multiple suppliers, as long as they are part of the same company code, their valuations are managed collectively.

Valuation within a company code allows for the integration of all inventory data, ensuring that financial statements reflect an accurate picture of the material's value across the entire code. This approach facilitates better financial reporting, compliance with accounting standards, and streamlined internal processes.