What is Valuation Class?

The Valuation Class in the Accounting 1 View in Material Master is the
main link between Material Master and Finance. This Valuation Class
along with the combination of the transaction keys (BSX,WRX,GBB,PRD )
defined above determine the GL account during posting.

We can group together different materials with similar properties by
valuation class. Eg Raw material,Finsihed Goods, Semi Finished

We can define the following assignments in customizing :
All materials with same material type are assigned to just one valuation
class.

Different materials with the same material type can be assigned to
different valuation classes.

Materials with different material types are assigned to a single valuation
class.