MM Training by Studyuuu

MM Training by Studyuuu
MM Training by Studyuuu

Wednesday, 4 September 2019

Automatic Account Determination full Overview-(MM-FI Integration)- SAP MM


Automatic Account Determination- MM-FI Integration

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Concept

We will be doing all the procurement activities right from material creation to PO ordering and once everything is done, we need to pay to vendor from the respective department GL account and for that we cannot do manually for all materials and it’s very hard to remember- As SAP is having a feature where it can recognize the respective GL account automatically for the material you ordered in PO. How?

To move in depth, we need some knowledge on some concepts to understand the entire process easily.

Two ways of GL accounts – Source

Purchasing- GL account will come in PO automatically- Material and account assignment plays a major role

Inventory-Goods Movement - GL account will be taken automatically as per the Material and Movement type

Concepts/Terminologies to remember:

1.      Material
2.      Material type
3.      Account category reference
4.      Valuation class
5.      Valuation area
6.      Valuation grouping code
7.      Movement type
8.      Transaction Event Key
9.      Account Modifier/General Modifier
10   Chart of accounts

I mentioned few points above to know deeply for better understanding of MM-FI Integration and before going to those points, note some basic important points to remember as a consultant.
Important note:

 Where the GL accounts will be stored in the entire process of account determination?
Answer- It will be stored in the Chart of accounts with the help of BSX, WRX, GBB, PRD

Question: On what basis SAP is taking GL account automatically (For debit and credit-Normal scenario)

Answer- while creating material type (OMS2), we have quantity and value tab in the right side, and we will select for all materials while creating.

Here if there is tick indicators for both quantity and value(valuated material) then whenever we do MIGO the stock gets updated in plant and relevant stock GL account will affect and in other hand stock value will gets hit to different GL account (In deep we will learn below).

If there is only quantity tick (material is not valuated because it’s for consumption) is maintained, then it means we need to order the PR/PO with account assignment because finally after MIGO it will hit the consumption GL account instead of normal GL account.

Finally: In normal process PO is created to procure material from vendor and we will order only 2 types.

One is for production and other is for consumption

While doing MIGO- respective GL account will gets hit as per the purchase order- account assignment (blank/fill any type).

Blank- It will show GL in PO directly

Any Account assignment- It will show while doing MIGO

Into the explanation:

1.      Material
2.      Material type
3.      Account category reference
4.      Valuation class
5.      Valuation area
6.      Valuation grouping code/Valuation modifier
7.      Chart of accounts
8.      Movement type
9.      Transaction Event Key
10  Account Modifier/General Modifier

1.Material

We will create/Order the material from the vendor and for that we need to maintain the material in material master and along with that we are linking valuation class in accounting 1 view for each material with the help of material type.

Link- Valuation class is linked to GL accounts in OBYC (Will study deeply below)

2. Material type

Material type plays an important role in account determination, where while creating material type, we are mentioning the quantity/Value tabs and, we are maintaining the valuation class with respect to material type in material master.

So that whenever we create material for that material type then automatically certain valuation classes with appear to update the material in material master with the help of account category reference (Linking will study below).

3. Account category reference

Account category reference acts as a mediator between the material type and valuation class, where we will define the account category reference to create the valuation class and assigning the material type to account category reference (A=B, B=C= AC)

If we have 10 material types, then we can create 10 account category references and each account category reference will have certain valuation classes like 5 valuation classes (Based of material groups how many we have under 1 material type).

But 1 material type will have only 1 account category reference.

E.g.: Account category reference – 0111(create New)

Account category reference-Valuation classes- RK01, RK02, RK03, RK04, RK05(Create valuation classes)

        Material type (ROH)- Account category reference (0111) (Link to Material type)
        Now automatically material type ROH will take valuation classes - RK01, RK02, RK03, RK04, RK05     
                                                
Note: We need to mention the correct valuation class while creating material in material master   manually, so that respective GL will pick up (Will learn below how)-This step will be done by MDM team, but we need to train them like on what basis we need to update the valuation class.

4. Valuation class

Valuation class is defined as for 1 material type how many material groups- Based on real scenario
If we have 10 material groups under the category of 1 material type, then we will create 10 valuation classes and each valuation class will be linked to creation GL accounts (It may change as per your organization rules)

We need to select the correct valuation class depends on the material; MDM team will take care on this how to update.

5.Valuation area

As we know all the organizations will evaluate the material in plant /Company code level and SAP recommends valuating the material in plant level because price may change plant to plant as per the state and specifications.

We need to check the option that valuation area at plant level and we cannot change it once its defined in enterprise structure.

6.Valuation grouping code

We have certain plants having same attributes with same account determination, so all those plants will combine and create a valuation grouping code.

We will make all those plants to one grouping code and assign GL accounts as per that so that it will reduce the number of entries in OBYC settings.

So that all that plants will trigger same set of GL accounts with the help of Chart of accounts for the entire grouping code.

If we require a separate GL account system, then we need to create a new valuation grouping code it means 2 grouping codes for same chart of accounts with different GL accounts in OBYC.

Generally, for 1 valuation grouping code, we may create 4-5 different or same accounts in OBYC (FI Consultants will do this) because we may have different types of procurements like sub-contracting, Consignment, Pipeline, Goods transfer.

We can achieve the above step with the help of general modifiers (Explained below thoroughly).

7.Chart of accounts

Here chart of accounts contains a certain GL accounts, where INT contains all GL accounts and as we maintained valuation grouping code for similar plants then automatically all those plants will come under the chart of accounts INT.

Depends on the procurement order type GL account will take automatically.

8.Movement type

As we explained in starting page of blog, GL accounts will be triggered when we are doing MIGO, so movement types are linked to general modifiers and these settings are standard and every organization will follow the same settings as SAP recommended.

Every movement type is linked with certain general modifiers and transaction event key.
Note: Modifiers can be allowed only for GBB and PRD.

Some of the general modifiers are VBR, VNG, VBO

As per the procurement process like sub-contracting, Consignment, Pipeline, Goods transfer these general modifiers will come and hit the respective GL accounts.

9.Transaction Event Key

We have a predefined transaction event key like BSX, WRX, GBB.

It mainly explains BSX-Inventory postings, it will store GL accounts that related to stock updating or removing from plant and whenever we are adding stock or removing stock then respective GL account will pick from BSX- Its mainly for inventory addition and subtraction.

WRX- after doing the normal inventory addition and subtraction the vendor should get paid and for that we have WRX-GR/IR clearing account.

So, when you do a normal PO-BSX and WRX will affect for the purpose of inventory and GR/IR clearing purposes.

GBB- Where we have many procurement types like sub-contracting, Consignment, Pipeline, Goods transfer- there we have different modifiers should effect because we may pay or not because few are internal transfers and some should be like consignment and sub-contracting and few are goods issue to cost center- this may be different type of stock gets credited.

For this we have modifiers linked to movement types and each procurement type we have different movement types and its linked to account determination, so that respective modifier will affect.
We have transaction event key- PRD which is for price difference.

When we maintain the material master price indicator as S-Standard price, then if PO is created with different price then difference price amount will be posted for PRD level GL account.

Even we have separate condition prices in PO- so it will affect the respective GL accounts as predefined by SAP- Just learn which is affecting like BSX, GBB.

10.Account Modifier/General Modifier

Account modifier is possible for GBB and PRD
When we are creating MIGO with movement type and once you enter details, system will read K,O,W,P,Q- Special stock indicator, in settings its already defined for plant valuation area to strings and transaction event key and next to that we can find modifier.

It means when we are doing special type of procurement activities – Modifier accounts like BSA, VNB, BSA and VBO will get triggered.

Process- Backend (SPRO Settings)

Step 1: Define valuation control

Here we are defining valuation is under grouping code or not
Most possible 99% we will go to group together valuation area.

Step 2: Group together valuation areas:

Here we are assigning similar plats to one group and for this group GL accounts are assigned in OBYC.

Here we can also find the chart of accounts, where it will be defined by SAP and we can maintain 1 chart of accounts to 1 valuation grouping code or 2 valuation grouping code.
If 2 valuation grouping codes, then we need to define the different GL accounts for the second grouping code.

Here Chart of accounts contain the GL accounts along with grouping code and modifiers-Check in OBYC.

Step 3: Define Valuation Classes:

3.1 Here we will define the account grouping code as per the material types

3.2 We will define the valuation classes for this account category reference- Valuation classes are like material groups and create as per the company requirements.

3.3 Here link the material type to account category reference, we can assign to N number of material types

Whatever the settings have been done- the requirements are like while creating material the valuation class should come automatically as per the material type

Because we defined account category reference to valuation class.

Step 4: Define account grouping for movement types:

Here the settings are standard and no need to change
Here we can find the movement types with types of procurement of material and transaction event key has been assigned to all those and next we can find the account modifier which we will enter if the procurement type is different.

Don’t change these settings unless you are creating new movement type which is very rare.
Step 5: Configure automatic postings: OBYC- Done by FI Consultant

Here they have standard transactions and they will maintain the GL accounts as per Valuation grouping code and modifiers.

This will be completely taken care by FI Consultant


If there are any doubts in above concept, please comment in the comment section and if there are more scenarios then keep posted in email.




8 comments:

  1. Great Explanation sir, but "1 material type will have only 1 account category reference" this statement is not correct sir. In IDES SAP we have 49 Material Types and 12 ACR. So multiple Material type can be assigned to one ACR.

    ReplyDelete
    Replies
    1. What explained in blog is One Material Type will have one ACR. However what you said is vise versa. So both statements are correct
      1 Mat Type = 1 ACR
      1 ACR = Multiple Mat Type


      In real time we do it 1:1

      Delete
  2. I am definitely enjoying your website. You definitely have some great insight and great stories.
    Assignment Writing Help

    ReplyDelete

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