Account Determination.pdf

ERPTECHLL.COM Contact: 281-660-6449 Email:
udaysap@yahoo.com
1
MM-FI Account Determination
Odaiah Pelley

 Every Document contains information about Header Data and Line Item Data
 When you create a PO system asks for vendor number and Organizational data that is Purchase Organization,
Purchase Group, Company code in Header Data
 At Line Item, enter Material Number, Plant, Storage Location and Quantity.
 Note: Maintain Purchase Info record hence it determines the price for quantity in PO.
2
PO Creation ME21N

3
Material Valuation
 What is Material valuation in SAP?
Quantity *Price = Stock Value or Valuation
For every goods movement created for a valuated material, the SAP system can create two types of documents:
a material document and an accounting document. The SAP system follows the accounting
principle that for every material movement, there is a corresponding document that provides details of that
movement. In addition, an accounting document is produced that describes the financial aspects of the
goods movement.
The material document and accounting (FI) document creation depend on the movement type configuration.
Through the movement type configuration and based on the customizing settings defined for the account
determination the SAP System can do automatic account postings
Example: Goods Receipt
Material Document Display T.Code: MMBE or MB51
FI Document Display T.Code: FB03

4
MM Transactions
$450
Goods Receipt
Goods Issue
Incoming Invoice
Price Change
Debit/Credit
Material
Account
Maintenance
MM Transactions
$400

MM-FI Integration or Account Determination
Integration happens in 3 methods/levels
1. Enterprise Structure level/ Organizational level
2. Master Data Level
3. Transaction Level or P2P Cycle (Procurement To Pay)
ERPTECHLL.COM Contact: 281-660-6449 Email: udaysap@yahoo.com
5

1 Enterprise Structure level
FI
Hierarchy
Company
Company Code
PCTR/BA
MM
Hierarchy
Purchase
Organization
Plant
Storage
Location
Warehouse
(if it is activated)
List of
GL Accounts
Operational
Chart of
Accounts
Note: when we post goods movement, we will assign plant in MM transaction. The system will derive company
code based on the plant in turn the system will determine chart of accounts from company code.
6

Valuation Class
Account
Category
Reference
1 Master Data level
FI
Operational
COA
Account Group
GL Masters
MM
Material Type
Material Master
Note: Valuation class determines the GL account.
Material Type (Raw Material, Semi Finished Products, Finished Products, Trading Goods, Operating Supplies, Packing Materials,
Services etc)
Valuation grouping code - Group of valuation areas is called as Valuation grouping code or valuation modification
Note: If we want to assign separate gl accounts for separate plants from the same chart of account and same valuation
class then we have to activate valuation grouping code. 7

3 P2P Cycle /Transactional level (Procurement to Pay)
P2P Cycle
FI Entry
Transaction
key/event
Account
Grouping code/
Gen.Modifi.
Transa
ction
Code
Purchase Requisition No
Request for Quotation No
Enter Quotation No
Quotation comparison and
finalize the vendor
No
Purchase Order It is a legal bounding document
Goods Receipt Inventory Raw Material A/C DR
GR/IR Clearing A/C CR
BSX
WRX
MIGO
Invoice Verification GR/IR Clearing A/C DR
Vendor A/C CR
WRX
Purchase Order
MIRO
Goods Issue to the
Requestor
Consumption A/C DR
Inventory Raw Material A/C CR
GBB
BSX
VBR MIGO
Vendor Payment Vendor A/C DR
Bank/Check Issued A/C CR
FI Entry
(no integration) 8

List of GL
Accounts
In INT
Account Determination without wizard
(If Valuation Area = Plant)
Chart of Accounts
INT
Company Code
1000
Chart of Accounts
INT
Company Code
2000
Plant
1000
Plant
2000
Plant
1200
Plant
1100
Valuation
Grouping
Code
0001
Plant
2100
Chart of Accounts
CAUS
Company Code
3000
Plant
3000
Plant
3100
Valuation
Grouping
Code
0002
9
List of GL
Accounts
in CAUS

Account
Modifier
Transaction/Event
Keys
BSX
WRX
List of GL
Accounts
In INT
Account Determination without wizard
(If Valuation Area = Plant) T.code: OMWB or OBYC
Valuation
Class
3000
9000
7920
Plant
1000
Valuation
Grouping
Code
0001
Company Code
1000
Chart of Accounts
INT
Material X
Material Type
ROH
FERT
HALB
Account
Category
Reference
Moment Type
101
Valuation String
WE01
10

Overview of the assignment of G/L Account Numbers for
Automatic Account Determination T.Code: OBYC or OMWB
11
SPRO Material Management Valuation and Account
Assignment Account Determination
Account Determination without Wizard  Configure
Automatic Postings (OMWB cancel then OBYC)

Overview of the assignment of G/L Account Numbers for
Automatic Account Determination T.Code: OBYC or OMWB
Transaction
Key
Account
Modification
Chart of
Accounts
Valuation
grouping code
Valuation
Class
GL A/C
BSX - INT 0001 3000 300000
BSX - INT 0001 3001 300010
WRX - INT 0001 - 191100
GBB VBR INT 0001 3000 400000
PRD PRA INT 0001 3000 231000
12
T.code: OMJJ
Movement Type with
Transaction Key and
Grouping of transaction
key is called as Account
Modification or OMWN

Define Account Grouping for Movement Types
13
T.code: OMWN
Customizing  Materials Management
Inventory Management and Physical
Inventory  Valuation and Account
Assignment  Account Determination 
Account Determination Without Wizard 
Define Account Grouping for Movement
Types

Value String
14
Value string keys are for SAP internal usage. It is just a pointer to the transaction event key which is necessary for
automatic account determination.
Movement types are linked to transaction keys via valuation string in OMWN T-code. The R/3 System automatically
determines the value string assigned to a specific transaction.
It depends partly on entered parameters manually and partly on parameters derived internally by the system.
The value string contains all posting transactions that are possible for a certain transaction.
The program decides which of these posting transactions lead to G/L account postings in individual cases.
You cannot define this in Customizing.
Value string WE01, for the goods receipt for a purchase order into stock, contains transactions BSX and WRX.
WE01: BSX, WRX, PRD, KDM, EIN, EKG, BSV, FRL, FRN, BSX, UMB.
WA14: BSX, PRD, BSX, UMB WA01: BSX, GBB, PRD, BSX, And UMB
Value string RE05 contains transactions BSX and UMB.
In the standard system, value string WE01 is assigned to goods receipts (and also cancellations and return deliveries)
for Standard and Subcontracting purchase order items without account assignment concerning valuated material into
stock.

Value String
15
In the case of (valuated) goods receipts for purchase order items not subject to account assignment, post the items to
a stock account using the transaction key BSX and make an offsetting entry to a GR/IR clearing account.
A price difference posting (transaction key PRD) is only used if the valuated material is subject to standard price
control and if the order price (or invoice price) is different from the standard price. Transaction key KDM is required in
Inventory Management for purchase orders in foreign currencies because of differences in exchange rates between
goods receipts and invoice receipts, unless the material can not be debited or credited because it is subject to
standard price control.
The transaction keys EIN and EKG (and possibly FRE – see account determination for delivery costs) are only used in
company codes where purchase account management is active (as required in France and Belgium for example).
The transaction keys BSV, FRL, and FRN are only used for the Subcontracting item category. Value string WA14 is
defined for deliveries without charge (movement type 511).

Value String
16
In the standard system, value string WA01 is assigned to goods issues and other goods receipts. The R/3 System
uses an additional influencing factor, account grouping, to differentiate further between the various movements during
account determination.
At company code level chart off accounts will be assigned, at valuation area level valuation grouping code has to
assign
For the material if Qty and value updation is activated at the time only system goto find the value string,
when you do the goods receipt or invoices at the time system find the value string based on the value string system
will post to the GL accounts

Movement Type
17
When you enter a goods movement in the system, you must enter a movement type to differentiate between the
various goods movements. A movement type is a three-digit identification key for a goods movement. The
movement type enables the system to find predefined posting rules determining how the accounts of the financial
accounting system (stock and consumption accounts) are to be posted and how the stock fields in the material
master record are to be updated.
The following table contains examples of movement types.
Good receipt movement type=101
Good issue to production movement type=261
Release from quality inspection stock = 321
Scrapping of Good movement type=551
Good delivered to customer movement type=601
Initial uploading of stock movement type=561

OMSK
21
Define Valuation Classes
In this step, you define which valuation classes are allowed for a material type.
If a user creates a material, he must enter the material's valuation class in the accounting data. The ERP system uses your default settings to check whether the valuation class is allowed for the
material type.
The valuation class is a group of materials with the same account determination. If a transaction is to be posted to different accounts depending on the valuation class, create an account
determination for each valuation class in the step Create automatic postings.
The valuation classes allowed depend on the material type. Several valuation classes are generally allowed for one material type. A valuation class can also be allowed for several material types.
The link between the valuation classes and the material types is set up via the account category reference.
The account category reference is a combination of valuation classes. Precisely one account category reference is assigned to a material type.
Example
Requirements
•You must have defined your material types.
•You must have defined the chart of accounts.
•You must have agreed with Financial Accounting which materials are assigned to which accounts.
Default settings
In the standard SAP R/3 System, an account category reference is created for each material type. The account category reference is, in turn, assigned to precisely one valuation class. This means
that each material type has its own valuation class.
Recommendation
We recommend that you create the account groups of your chart of accounts as an account category reference.
Example GKR:
•3000 for raw materials
•3030 for accessory materials
•7900 for finished products
•and so on
Activities
1. Create account category references under account category reference
2. Under valuation class, define the valuation classes for each account category reference.
3. Under Material type/account category reference, assign an account category reference to each material type.

OMWN
22
Define Account Grouping for Movement Types
Using this function, you can assign an account grouping to movement types. The account grouping is a finer subdivision of the transaction/event keys for the account determination.
Example
During a goods movement, the offsetting entry for the inventory posting (transaction GBB) can be made to different accounts, depending on the movement type:
Movement type Account grouping Account
561 Init. entry of stock bal. BSA 399999
201 GI for cost center VBR 400000
Standard settings
The account grouping is provided for the following transactions:
GBB (offsetting entry for inventory posting)
Overview of account groupings GBB
PRD (price differences)
Overview of account groupings PRD
KON (consignment liabilities)
Overview of account groupings KON
The account grouping in the standard system is only active for transaction key GBB (offsetting entry for inventory posting).
Recommendation
We recommend that you use the default setting.
Activities
You do not have to carry out any activities here if you are using the default setting.
You can also define your own account groupings for transaction GBB.
Example:
If you want to post goods issues for cost centers on separate consumption accounts (movement type 201) and goods issues for orders (movement type 261), you can, for example, assign account
grouping ZZZ to movement type 201 and account grouping YYY to movement type 261. In the step Configure automatic postings, you can then assign different accounts to the individual accou
groupings.
The account groupings for transactions PRD and KON are predefined.

Movement Type
23
Material Type is linked to A/C Category Reference
A/C Category Reference is linked to Valuation Class
So Indirectly Material Type gets linked to Valuation Class
There is link of Valuation Area i.e Plant + Company Code +Chart of Account + Valuation Grouping Code
Diff. Valuation Areas are grouped together under one Valuation Grouping Code.
There is linking of following as well -
Movement Type + Valuation Strings + Transaction Key + Account Modification

Account Determination
 Raw material received from vendor ( Good Receipt) (Movement type 101)
Raw Material/ Inventory account – Debit(89) BSX 300000
GR/IR Clearing account - Credit(96) WRX 191000
 Invoice received from vendor
GR/IR Clearing account - Debit WRX 191000
Vendor account - Credit 1000
 When a raw material is issued for a production order ( Movement type 201)
Raw Material Consumption account – Debit 400000
Inventory / Raw Material account -- Credit 300000
The relevant G/L accounts are to be determined automatically by the system for every transaction in
MM
24

Valuation Area
Valuation Area
The valuation area is an organizational unit within Logistics that subdivides a company for the purpose of
uniform and complete valuation of material stocks.
In the SAP system, you specify for your company the level at which your stocks
of materials are to be valuated:
• At company code level
• At plant level
If you have selected the plant as the valuation level, each plant then represents
a valuation area. In this case, the key for the valuation area is identical to the
key for the plant.
25

Valuation Area = Company Code level
26

Valuation Area = Plant Level
27

Grouping of Valuation Areas
28

Valuation Grouping Code.
29

Valuation Grouping Code
You can assign the G/L accounts for automatic account determination (indirectly)
dependent on the valuation area. To minimize the necessary effort involved,
valuation areas with the same account number assignment can be grouped
together. This is done through the valuation grouping code. The valuation
grouping code is then used to assign the G/L account numbers.
30

Material Type and Account Determination
31

Valuation Class
32

Valuation Class
33
the valuation class is used to achieve automatic account determination that varies depending on the material. The valuation
class is a key used to group together materials with the same account determination.
You enter the valuation class in the accounting data for a material.
The permissible valuation classes depend on the material type. Several valuation classes can be allowed for a certain material
type.
The relationship between valuation classes and material types is established with the aid of the account category reference. The
account category reference is a grouping of valuation classes used by the system to check whether the valuation
class entered is allowed when you maintain accounting data in the material master record. This account category reference is
assigned to the material types. Only one account category reference can be assigned to a material type.
When maintaining the accounting data for a material of this material type, you can choose one of the valuation classes that have
been defined for the relevant account category reference. G/L account determination for this material is then carried
out according to the settings for this valuation class. If a material is subject to split valuation, the account determination process
is carried out with the valuation class of the valuation type record.
The valuation classes 3000, 3001, 3002, and 3003 have been grouped together. This group of valuation classes has been
assigned to the account category reference 0001. As a result, you can select any of these four valuation classes when creating
the accounting view of a material with a material type that is assigned to the account
category reference 0001.

Material Type and Valuation Class
34

Grouping of Valuation Class
35

Material Type and Account Category Reference
36

Business Processes and Account Determination
37
The posting transactions for accounting-relevant transactions in inventory management and invoice verification
are predefined and cannot be changed. The next few graphics show how the system determines the
transaction/event keys and what relationship exists between the transaction/event keys and the G/L accounts.

Account Determination Process in MM
38

Account Determination Process in MM
39
Posting records generalized in a value string (posting rule) are assigned to each relevant movement type in inventory
management and each transaction in invoice verification. Instead of specific G/L account numbers, this value string
contains keys for the relevant posting transactions (for example BSX for stock posting
and PRD for price difference posting).
You do not have to define these transaction/event keys. They are determined
automatically in the SAP system from the specific transaction in invoice verification or from the transaction and
movement type in inventory management.
You need only assign the G/L account to which postings are to be made to each posting transaction (taking into
account the other influencing factors). You can see the assignments of value strings to goods movements and the
breakdown of the value string into transaction/event keys in Customizing for Inventory Management and Physical
Inventory, but you cannot change them.
You assign the relevant G/L accounts to the corresponding posting transactions in Customizing for valuation and
account assignment.c

Determination of Value String for Goods Movement
40

41
The value string assigned to a specific transaction is determined automatically. It depends partly on manually entered
parameters and partly on parameters derived internally by the system. The value string contains the maximum
possible posting transactions for a certain transaction. Which of these posting transactions lead to G/L postings in
individual cases is determined by the program and cannot be defined.

42
The value string WE01 is assigned to goods receipts for standard purchase orders (and corresponding reversals and return
deliveries) with items that have no account assignment and are of the categories standard or subcontracting for valuated material
into the warehouse/stores.
For a (valuated) goods receipt against a PO item without account assignment, a posting is always made to a stock account with the
transaction/event code BSX. The offsetting entry is made to the GR/IR clearing account with the transaction/event key WRX.
A price difference posting (transaction/event key PRD) is only made if the valuated material is valuated at a standard price and if the
PO price (or the invoice price) varies from the standard price.
The transaction/event key KDM (exchange rate differences) is needed in Materials Management for POs in foreign currencies in
which different exchange rates applied at the times of goods receipt and invoice receipt, if the material cannot be debited or credited
due to standard price control or lack of stock.
The transaction/event keys EIN (purchase account) and EKG (purchase offsetting account), as well as possibly FRE (freight
purchase account) are only applicable in company codes in which purchase account management is active (as is legally required in
France or Belgium, for example).
The transaction/event keys BSV (changes in stock), FRL (external service), and FRN (external service incidental costs) are used
only in connection with the item category subcontracting.

Value String WA14
43
The value string WA14 is provided for the
goods movement free-of-charge delivery
(movement type 511) for materials with value-
based inventory management.

Assignment of G/L Account Number
44

Assignment of G/L Account Number
45
We can specify whether the assignment of the G/L accounts for particular transactions involving automatic account
determination depends on:
• The valuation grouping code (that is, the valuation area)
• The account grouping code (not possible for every posting key)
• The valuation class
By means of a further indicator, you specify for each posting transaction whether different G/L accounts are to be
assigned for the debit posting and the credit posting (this is possible for postings to expense or revenue accounts,
such as price differences).
The following excerpt from the SAP system Customizing illustrates the assignment of stock accounts, that is, the
assignment of G/L accounts to the transaction BSX (stock posting). This assignment applies only within the chart of
accounts INT. For the transaction BSX (for the chart of accounts INT), the dependency on the
valuation grouping codes and the valuation class has been defined under Rules.

Assignment of Stock Account (Transaction BSX)
46

Assignment of Stock Account (Transaction BSX)
47
A valid G/L account must be assigned for each combination of valuation grouping code and valuation class that
occurs with respect to a business process (for inventory-managed materials).
Furthermore, you assign the FI posting keys for the debit and credit postings to each posting transaction under
Posting Keys. The posting key is a two-character numeric key that controls the entry of document items. Among
other things, it determines the following:
• The account type (vendor/creditor, customer/debtor, asset, material, or G/L account)
• Debit or credit posting
• The layout of the entry screens

Simulation of Account Assignment
48

49
The simulation, which you can call in the activity Configure Automatic Postings, shows you the G/L accounts that
have been assigned according to the following aspects:
• For specified material or valuation class
• For specified plant
• For specified inventory management or invoice verification transaction
You can choose between the following options:
• Input of material number or valuation class (input mode)
• Transaction in inventory management or invoice verification (application
area)
In addition, the SAP system can check whether the assigned accounts actually exist, depending on your setting
when you call the simulation function.
During the simulation, all transaction/event keys for the relevant value string are taken into account, irrespective
of whether or not they are of any significance to your company code (for example, EIN, EKG, FRE).

50
Within the simulation for inventory management transactions, you can check the compatibility of the field selection for
the selected movement type and the field selection for the assigned accounts (report RM07CUFA).
In the following excerpt from the SAP system Customizing, you see the simulated account determination for
movement type free-of-charge delivery (Movement Type 511)

Value String WA01
51

Value String WA01
52
the value string WA01 is assigned to various goods issues and other goods receipts. Further differentiation in the
automatic account determination process for these different movements is accomplished via the
account grouping code.
The necessary accounts must be preassigned for each transaction belonging to this value string that occurs when
a business process is posted in your company. You can reduce the effort involved if the G/L accounts do not
depend on all three influencing factors in the case of individual transactions. Before assigning the G/L
accounts, define the rules for each transaction and chart of accounts according to your requirements.
Account Grouping Code
Because the posting transaction Offsetting Entry for Inventory Posting is used for different transactions and events
(such as goods issue, scrapping, physical inventory) that are assigned to different accounts (for example,
consumption account, expense due to scrapping, expense/revenue from inventory differences), it is necessary to
subdivide the transaction according to a further key. This is done using account grouping (also known as general
modification). The names (keys) of the account groupings are freely definable. Some keys (such as VBR)
are part of the SAP standard.

Valuation Grouping Code
53

Transaction/Event Key and Account Grouping Code
54

Assignment of G/L accounts for the Transaction GBB
55

Account Determination Summary
56

SAP – CONTROLLING (MANAGEMENT ACCOUNTING)
1. General Controlling
2. Cost Element Accounting (CEA)
3. Cost Center Accounting
 Cost Center Split
4. Profit Center Accounting and New GL
 Document Splitting
5. Internal Order
 AUC Settlement
6. FI-MM Integration
57

7. Product Costing
 Standard Cost Estimate
 Product Cost by Order
 Product Cost by Period
 PCC with Production Version
(Repetitive manufacturing)
 PCC with Product Cost by Order
(Repetitive manufacturing)
 PCC with Product Cost by Order
(Discrete manufacturing)
58

FI-SD Integration
 Product Cost by Sales Order
 Sales Order is a not cost object with valuated stock
 Sales Order is a cost subject with valuated stock
 Sales Order is a cost subject with non - valuated stock
8. CO-PA (Controlling Profitability Analysis) – 20 days
 Cost Based Profitability Analysis
 Account based Profitability analysis
9. Material Ledger
 Actual Costing
 Multiple Currencies & Multiple Valuations
 Transfer Price
59

10. Special Scenarios
 Indirect Activity Allocation
 Origin Group
 Overhead keys
 Overhead Groups
 Quantity based overhead costing sheet
 Template Allocation
 Primary Cost component split
 Auxiliary cost component structure
 Unit costing
 Base Planning Object
 Mixed Costing
 Joint and by-Product (co-product)
 Scrap
 Profitability Analysis
 Top-down distribution
 Bottom-up Distribution
 CO-PA Costing Sheet
 Derivation Rules
 Summarization Level
 Re-alignment
60

SAP Certifications 100% Pass Guaranteed
https://www.youtube.com/watch?v=_LJvEE8OT
Vg
Contact details: cell phone +1 281-660-6449
Email id: udaysap@yahoo.com; skypid: opelley; ERPTECHLLC website is in progress
61

ERPTECHLLC.COM Email: udaysap@yahoo.com; Contact: 281-660-6449 62
Training Goals
Initial Training
To gain a basic knowledge and understanding of the system for a particular application
area in order to efficiently carry out implementations
To learn about some typical project issues
To understand the tools available for use in project implementations
To be able to work as a project team member under the guidance of a senior consultant in
the first phase of a project (first year)
Advance Training
To gain a sound knowledge and understanding of the system for a particular application
area in order to efficiently direct/supervise implementations
To understand some typical integration issues in implementations
To apply knowledge of this particular application area in different customer scenarios
To be able to work as a senior consultant in a project with limited complexity

ERPTECHLLC.COM Email: udaysap@yahoo.com; Contact: 281-660-6449 63
Contact Details
ERP TECH LLC
Odaiah Pelley
President
Email: udaysap@yahoo.com; skype id: opelley; contact number: 281-660-6449 (USA)
http://www.erptechllc.com/
https://www.youtube.com/watch?v=_LJvEE8OTVg
India Office Address:
Contact Details:
Satish Pelley CEO
1-9-18/2/A, Ramnagar,
Hyderabad, Telangana – 500020
Email id: satishsapco@gmail.com; contact number; 9866355502

Account Determination.pdf

Recommended

Recommended

More Related Content

Similar to Account Determination.pdf

Similar to Account Determination.pdf (20)

Recently uploaded

Recently uploaded (20)

Account Determination.pdf