This document details the MM-FI integration and the sequential understanding of automatic account

determination.

The important factors involved in the MM-FI integration are as follows.

 Material Master
 Material type
 Valuation class
 Valuation grouping code
 Account category reference
 Movement type
 Transaction/Event Key
 Valuation String
 GL account
 Company code
 Chart of Accounts

Material master:

Each material is identified with a unique material code.

Material Type:

The material type of the material master forms an important part of the AAD which can be configured
through OMS2 transaction.

Valuation class:

The valuation class assigned to a material master in its accounting data acts as another important factor
for the AAD. The valuation class is a group of materials with the same account determination.

Several valuation classes are generally allowed for one material type and similarly one valuation class
can also be allowed for several material types.

The list of valuation classed available for selection is restricted based on the account category reference
(ACR) which will be detailed in the coming sections of this document.

Valuation Grouping Code:

If the valuation areas (plants) are more than one, and different kind of accounting treatment needs to
be done, Valuation Grouping Code needs to be configured and it needs to be assigned with the valuation
areas. Valuation grouping code is activated using OMWM.

Note: Even if there is only one valuation area, it is mandatory to have a Valuation Grouping Code.

Linkage between Material master, valuation class and valuation grouping code:

The valuation class is not directly assigned to material type but through Account Category Reference.
The transaction OMSK is used for linking material type, valuation class and ACR.
ACR will be configured first and it will be assigned to the valuation class.
Similarly the material type will be assigned with ACR.

This ACR can be assigned in OMS2 also (material type configuration)

Based on the material type and ACR, valuation classes which are assigned with the particular ACR alone
will get listed for selection in material master.

For instance, valuation classes starting from 1100 to 1800 are marked with the ACR 0001 which is
configured as Reference for Raw materials (ROH). So whenever a ROH material is created, in the
accounting view, valuation classes from 1100 to 1800 alone will get displayed.

Movement Type:

The next part of the AAD is the movement type. Based on the material type, valuation class and ACR,
respective GL accounts will be determined by the system. In the transaction OMJJ, for the movement
type, select the account grouping.
In this section, there are few more vital factors for AAD is involved.

Valuation String:

This is an internal identifier predefined by SAP against each movement type and this cannot be
modified. The value string contains all posting transactions that are possible for a certain movement.
The program decides which of these posting transactions lead to G/L account postings in individual
cases.

For instance, WE01 is assigned for the movement type 101 and type B (GR for PO) and (quantity
updating and value updating) which is linked with the transaction BSX (inventory posting) and WRX
(GR/IR Clearing).

In addition to the above, this valuation string is assigned to many other transactions such as PRD, KDM,
EIN, EKG, BSV, FRL, FRN, BSX, UMB. In simple, valuation string WE01 is assigned to Goods receipt,
cancellations and return deliveries movement types.

WA01 is another valuation string which is attached to Goods Issue movement types and other Goods
Receipts.

Transaction/ Event Key:

The posting transactions are predefined for the inventory management and we need to assign the
relevant G/L accounts for those transactions. PRD, KDM and other transactions are likely to get hit when
a relevant goods movement is happened.

PRD in a GR will be hit when material master is a having price control S and there is a price difference
during GR.

KDM will get hit, when the purchase order is having foreign currency and involves price difference due
to exchange rate.

Further to this, standard SAP is having another identifier called as Account Grouping.

Account Grouping:

When it comes to goods issue, we need to further differentiate between a goods scrapping, vendor
rejection, physical inventory etc. For enabling this, SAP has provided Account Grouping. As and when
transaction GBB is hit (Offsetting Inventory) account grouping comes in to picture. Account grouping is
enabled for only three transactions GBB, PRD and KON.

To understand better, movement 551 is posted, which internally nullifies the stock (GBB) and credit is
posted to a Scrapping GL account. Similarly same material is issued to a cost center for internal
consumption, (201) which internally nullifies stock (GBB) and a credit given to the GL account. In both
the cases, account key hit is GBB and we need to use the respective Account Grouping to differentiate
between these two movement types.

Following are the account grouping or general modifiers available in SAP.

AUF: for goods receipts for production orders with account assignment
BSA: for intial entries of stock balances
INV: for expense/revenue from inventory differences
VAX: for goods issues for sales orders without account assignment object
VAY: for goods issues for sales orders with account assignment object
VBO: for consumptiom from stock of material provided to vendor
VBR: for internal goods issues (e.g., for cost center)
VKA: for consumption for sales order without SD
VNG: for scapping/destruction
VQP: for sampling
ZOB: for goods receipts without purchase orders
ZOF: for goods receipts without production orders.

The GL account determination can be simulated using a transaction code OMWB.

On pressing enter,

Click cancel.

Click Options SimulationInput Mode.

Click Simulation.

Change the plant and input the valuation class.

Change the movement type if required and click on the account assignment.
Organizational level configurations are shown on the top. Plant 1000 mapped internally to company
code which is linked to chart of Accounts. Also the valuation area 1000 is mapped to plant 1000 in turn
assigned to valuation grouping code 0001.

Coming to the valuation part, the valuation class is 1800 and the valuation string assigned to the
movement type 101 is WE01.

Next section of this the actual posting lines. Possible posting keys (GBB, BSX, PRD..,etc ) are given in the
left part (Posting Lines Text) and against those account keys, valuation grouping code, AGC, the
valuation class, posting keys and debit and credit G/L account are mapped on the right side.

We need to understand that it is not necessary that, all the account keys to reflect in one transaction.
For a 101 document, basic accounting entries will be a Stock account debit and GR/IR account credit.
Other account keys like PRD, BSV etc, will get hit as and when it is warranted.

Accounting entries for a 101 document:

In the accounting document, 503003 is a stock account and 407060 is GR/IR clearing account

Compare the postings with the simulation in OMWB.

If the material is valuated at standard price, in addition to regular stock account debit (std price),
another line account for price diff will get hit along with total value of GR IR clearing as below. Check the
green colored account in the above screen shot.

Accounting entries for a 551 document:

The cost centre alone given during the transaction, whereas the credit and debit GL accounts are
determined automatically.

To understand this, refer the movement type 551 in OMJJ. For the movement type 551, valuation string
WA01 and the transaction event key GBB, account modifier has been configured as VNG.

The material 4252005M0109 is a HALB material, having the valuation class 1800. OMWB simulation is
displayed as below.

The stock account of material (503003) will get a Credit and the GL against the account modifier VNG
will get a Debit (202058).
Accounting Entries for a Sub contracting GR:

As we are aware, when a GR is made for a subcontracting order, 101 will be posted for the header part
no and 543 will get posted for the raw materials. The accounting entries of this GR is explained
hereunder.

Subcontracting activity is an extended arm of the production wing and hence the activities performed
will be conceptually equivalent to the production activity performed in house.

The GR (101) can be compared with the production GR (131) and the RM consumption (543) can be
compared with the production consumption (261) and the difference between these two; the
conversion cost or subcontracting charges can be compared with over heads in production scenario.

101 document entries will be

Stock account of FG Dr 839120.99

Cost of Goods Mfg. from MOS Cr 839120.99 –

543 entries will be

Stock Account of RM Cr 294591.00 –

Cost of Goods Mfg. To MOS Dr 294591.00

Conversion cost Or Sub contracting Charges will be

MOS Charges Dr 544529.99

GR IR Clearing Account Cr 544529.99 –

Split up of these documents can be compared and understood with any 131/261 material document.