In an integrated Sales Cycle, Goods Issue transactions posted in the Sales and Distribution module (it can also be done in the Materials Management module) cause an Accounting Document to be created. The G/L Accounts to which the transaction is posted can be determined automatically. Configuration of the automatic account assignment takes place in Customizing. Prerequisites for configuring automatic account assignment include: Maintain the Chart of Accounts. Assign Plants to a Company Code. Maintain the necessary Material Types. In general, Material account assignment is configured in the following steps: Establish the Valuation Level. Activate the Valuation Grouping Code option. Group Valuation Areas using Valuation Grouping Codes and establish the Chart of Accounts for each Valuation Area. Maintain the Valuation Classes and Account Category References and their linkage to Material Types. Define Account Grouping (Account Modification codes) for Movement Types. This definition links Transaction / Event Keys (Process Keys) and Account Modification codes to Movement Types. Assign a G/L Account to each combination of Chart of Accounts, Valuation Grouping Code, Account Modification code (if necessary), and Valuation Class. This assignment defined in Table 030 (Automatic Account Assignment Table).
The purpose of Material Valuation is to determine and record the stock value of a Material. The stock value is calculated by multiplying the total stock quantity by the Material Price.
The Valuation Area specifies the level at which a Material is valuated. A Valuation Area can be defined in the following ways: Valuation Area at Company Code level: all the stocks of a particular material are valuated the same for all Plants in that Company Code. Valuation Area at Plant level: all stocks of a particular material are valued the same in that Plant. In another Plant, the material could be valued differently. The level at which valuation should take place should be determined early in the project. Once the level is set, it cannot be changed.
The valuation fields for a material relevant for automatic account assignment can be found in the Accounting View of the Material master. The Valuation Class allows the user to group together materials with similar properties so they can be managed under the same stock account. The allowed Valuation Classes are determined by Material Type. Examples of Valuation Classes include the following: Finished Products Semi-Finished Products Raw Materials The Price Control indicator determines how the Material is valuated: S: Standard Price (cost) V: Moving Average Price (cost) In the Accounting View of the Material master record, users can view the current and future material prices as well as the total stock quantity and total stock value for the current period and the previous period.
The Valuation Area is the level at which material valuations are carried out. It corresponds to either a single Plant or all Plants within a Company Code. The Chart of Accounts to be used is determined for each Company Code. The Valuation Grouping Code is a criterion in account assignment. It is used to combine Valuation Areas (if valuating at the Plant level) or to combine Company Codes (if valuating at the Company Code level) for account assignment purposes.
In the example above, the Valuation Area is a Plant. Rather than having to maintain individual account assignments for each Plant, the Plants that use the same account assignment criteria can be grouped together. In the example, Plants 0002, 0003, and 0004 will all be treated alike in terms of account assignment.
The Valuation Class is a group of Materials with the same account determination. A Valuation Class is assigned to a Material master record at the Plant level. The available Valuation Classes are dependent on the Material Type. In general, several Valuation Classes are allowed for a Material Type. Also, the same Valuation Class could be allowed for different Material Types. The link between the Valuation Class and the Material Type is the Account Category Reference. The Account Category Reference can be a combination of Valuation Classes. Only one Account Category Reference is assigned to a Material Type. The G/L Account assignment for a Material is carried out according to the settings for its Valuation Class.
The Automatic Account Assignment Table (Table 030) in the Materials Management module is sorted by Transaction / Event Keys (Process Keys) , which represent different processes within inventory management. The following Transaction / Event Keys are used in a Goods Issue: BSX: Represents the Inventory Posting Process leading to assignment of the G/L Stock Account that would be credited when material is delivered to a customer. GBB: Represents the Offsetting Entry to the Stock Posting Process leading to assignment of the G/L Cost of Goods Sold Account that would be debited when material is delivered to a customer. Since offsetting entries can cover such a wide scope of transactions, the offsetting entry can be further defined by Movement Type, which is designated by the Account Modification code in Movement Type configuration. In this way, offsetting entries can be posted to different G/L Accounts depending on the Movement Type.
In an integrated Sales Cycle, Goods Issue transactions posted in the Sales and Distribution module (Remember goods issues can also be posted in the Materials Management module) cause an Accounting Document to be created. The G/L Accounts to which the transaction is posted can be determined automatically. Configuration of automatic account assignment takes place in Customizing. The Accounting Document created when a Goods Issue is posted contains automatically assigned G/L Accounts. The system automatically assigns the G/L Accounts using the following data: Chart of Accounts of the Company Code : The Plant entered during the Goods Issue determines the Company Code and the Company Code determines the Chart of Accounts. Transaction / Event Key (Process Key) : These posting transactions are predefined for those inventory management transactions that are relevant for accounting. A record that contains these possible posting transactions is stored in a value string and assigned to each relevant Movement Type in inventory management. Valuation Grouping Code of the Valuation Area : The Plant entered in the Goods Issue determines the Valuation Area and thus the Valuation Grouping Code. Account Grouping (Account Modification code) : The Account Grouping, also called the Account Modification code, is used to further subdivide a Transaction Key. An Account Modification code is assigned to a Movement Type. Valuation Class : The Valuation Class is taken from the Material master record of the Material used in the Goods Movement (Goods Issue).
From within configuration, a simulation of the G/L Account postings for a particular Goods Movement, using a particular Plant and Material can be performed. This function allows verification of the settings that were made. Displayed in the simulation is the Valuation Area and Company Code that are determined based on the Plant and then, in turn, the Valuation Grouping Code and Chart of Accounts that are used. The Valuation Class that is used can be displayed based on the Material. Finally, the user can see if an Account Modification code is used for the Transaction Key.
The Billing Document results in the creation of an invoice sent to the customer. The financial accounting impact is a major integration point between the Sales & Distribution module and the Financial Accounting module. The Billing Document serves as the source for the Accounting Document, which contains the resulting financial accounting transaction. The G/L Accounts to which the transaction is posted are determined automatically on the basis of account determination criteria. In general, Revenue Account Assignment is configured in the following steps: Assign an Account Determination Procedure to the Billing Document Type. Assign the Account Determination Procedure to a Condition Type . Assign the Condition Type to an Access Sequence . Configure Condition Tables with user-defined criteria for revenue account assignment.
A posting block could exist for a Billing Document, which would prevent the automated creation of the Accounting Document. In this case, the corresponding Accounting Document is only created after it released to accounting in a separate step.
In the standard system, account assignment is based on the five factors listed below: They represent the five fields used in the key combination assigned to the Access Sequence for Condition Type KOFI. Condition type KOFI is used to determine to which G/L accounts entries will be posted for revenue, discounts, or taxes, for example. Chart of Accounts : Determined from the Company Code in the Billing Document. Sales Organization : Determined from the Sales Order. Account Assignment Group (of the Customer) : A field in the Customer master record of the Payer that enables the user to group Customers together for account assignment purposes. For example, revenue from domestic Customers would be posted to a Domestic Revenue G/L Account, whereas revenue from foreign customers would be posted to a Foreign Revenue G/L Account. Account Assignment Group (of the Material) : A field in the Material master record that enables the user to group Materials together for account assignment purposes. A separate Revenue G/L Account could be defined for each product line. Account Key : A field that is assigned to Condition Types in the Pricing Procedure that enables the user to define G/L Accounts as, for example, revenue, discounts or taxes.
Revenue account assignment uses the condition technique. Each Billing Document Type is assigned an Account Determination Procedure. Condition Type is a value assigned to an Account Determination Procedure that uniquely identifies the type of account determination that will occur. Account determination type is not a specific field in the system; it refers to the other factors such as Access Sequence that are involved in revenue account assignment. Access Sequence determines the Application Area (Sales & Distribution, Purchasing) using the Condition Tables and determines which Condition Tables are used and in what order they are read. From within the Billing Document, details on how account determination was executed can be viewed.
Valuation Area: A setting in customizing that specifies the level at which a Material is valuated (at the Company Code level or the Plant level). Valuation Class: A code that allows the user to group together materials with similar properties so they can be managed under the same stock account. Examples include finished products, semi-finished products and raw materials. Valuation Grouping Code: A criterion in account assignment which is used to combine Valuation Areas (if valuating at the Plant level) or to combine Company Codes (if valuating at the Company Code level) for account assignment purposes. Account Category Reference: A combination of Valuation Classes. Transaction / Event Key (Process Key): A code, representing different processes within inventory management, by which the Automatic Account Assignment Table (Table 030) in the Materials Management module is sorted. Account Modification code: A code used to further sub-divide a Transaction / Event Key which is assigned to a Movement Type. Account Determination Procedure: A code that is assigned to a Billing Document Type under which all revenue account assignment criteria are stored.
Account Assignment Group (of the Customer): A field in the Customer master record of the Payer that enables the user to group Customers together for account assignment purposes. For example, revenue from domestic Customers would be posted to a Domestic Revenue G/L Account, whereas revenue from foreign customers would be posted to a Foreign Revenue G/L Account. Account Assignment Group (of the Material) : A field in the Material master record that enables the user to group Materials together for account assignment purposes. A separate Revenue G/L Account could be defined for each product line. Account Key : A field that is assigned to Condition Types in the Pricing Procedure that enables the user to define G/L Accounts as, for example, revenue, discounts or taxes.
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<ul><li>To ensure a real-time, integrated Sales Cycle, the system contains functionality which will automatically determine the proper General Ledger Accounts to be posted to when a Goods Issue and a Billing Document is created. </li></ul><ul><li>Chapter Objectives </li></ul><ul><ul><li>Gain an understanding of the configuration used in automatic account assignment for Accounting Documents created in the Sales Cycle. </li></ul></ul>Chapter 18 Automatic Account Assignment
Material Account Assignment Overview Goods Issue Account Assignment Area Inventory COGS X X
What is Valuation? $120 4 Pcs. $30 / Pc. Stock Value $120 = Stock Quantity 4 Pieces x Material Price $30 / Piece
Selecting the Valuation Level Valuation Level Valuation Area is a Plant Valuation Level is Company Code
Accounting Data in the Material Master Valuation Class Raw Material Finished Product Price Control Standard or Moving Average Price 1 2 3 Price Current, Previous Month, Previous Year, Future
Valuation Grouping Code Case 1: Valuation Area = Company Code Valuation Grouping Code 0001 0002 0003 Company Code 0001 0002 0003 0004 Chart of Accounts GKR IKR
Valuation Grouping Code Case 2: Valuation Area = Plant Valuation Grouping Code 0001 0002 0003 Company Code 0001 0002 0003 0004 Chart of Accounts GKR IKR Valuation Area 0001 0002 0003 0004 0005
Linking a Material Type to a Valuation Class Material Type Account Category Reference Valuation Class FERT 0001 7900 3000 HALB 3010 HAWA 0002 3020 ROH1 0003 3030 3040 ROH2 3100 ROH3 0004 3200
Transaction / Event (Process) Keys BSX - Inventory Posting GBB - Offsetting Entry to the Stock Posting
How Does the System Find the Relevant G/L Accounts? 231000 550000 81000 140000 Transaction Key (Process Key) Valuation Grouping Code Chart of Accounts Account Grouping (Account Modifier) Valuation Class 1 2 3 5 4
Performing a Simulation of the Account Assignment Movement Type: 231 Plant: CSPL Material: RES-A Material RES-A Movement Type 231 Valuation Grouping Code Chart of Accounts Valuation Class Transaction Key G/L Acct - Dr. G/L Acct. - Cr. BSX 300000 300000 GBB 191100 191100 Posting Strings: Value String Plant CSPL
Revenue Account Assignment Overview Billing Document X A/R Sales X ACCOUNT ASSIGNMENT CRITERIA
Interface to Financial Accounting Accounting Accounting Release Billing Document Billing Document Posting Block SD FI
Account Assignment Criteria in the Billing Document Billing Document Chart of Accounts Sales Organization Customer Account Assignment Group Material Account Assignment Group Account Key G/L Account Material Master Record Payer Master Record Company Code Assigned to Pricing Procedure Price 100.00 ERL Discount 10.00 ERS Account Key ERL = Revenue ERS = Sales Deduction
Revenue Account Determination Acct. Determination Procedure KOFI Condition Type: KOFI Access Sequence: KOFI Billing Document Type 1. Charts of Accounts 2. Charts of Accounts 3. Charts of Accounts 4. Charts of Accounts 5. Charts of Accounts Sales Organization Sales Organization Sales Organization Sales Organization Sales Organization Account Key Account Key Account Key Account Key Customer Acct. Group Customer Acct. Group Material Acct. Group Records for Condition Type KOFI No valid record exists Valid record exists (search ends) Item 10 Price $10 Discount (10%) $1 Sales Deduction Account Material Acct. Group Specific General Condition Tables Sales Deduction 1