SAP GURU

AUTOMATIC ACCOUNT
DETERMINATION
Contributed By
Prabhakant Tiwari
Under the Guidance of SAP GURU INDIA

Automatic Account Determination:

All the procurement activities are done right from the material creation to PO
ordering, receiving material from GR, etc. Once every process is done, we need
to pay to vendor from the respective department GL account and for that, we
cannot do manually for all the material and it’s very hard to remember.
To deal with this, SAP having a feature where it can recognize the respective
GL account automatically.

PO: - G/ L account comes automatically in account assignment - material

& account assignment category play main role.

Goods Movement: - G/L accounts come automatically – Material &

Movement Type play main role.

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Flow chart of Automatic Account Determination

Before doing Account Assignment Determination we have to understand

the below topics:

Chart of Account:
Chart of account is a classification for the rendering of values or value flows to
ensure the correct rendering of accounting data. Chart of account is used as a
key for account determination, to enable differentiation for G/L account
assignment.

Valuation Area:
It is an organizational level at which material valuation is carried out.
You can take company code or pant as valuation area but mostly plant is
considered as valuation area.

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Valuation Category:
The criterion for the separate valuation of different stocks of material is
managed under one material number.

Valuation Class:
Valuation class is an assignment of material to a group of G/L accounts.

Transaction Event Key:

The transaction event key is an internal processing key that facilitates
automatic account determination. The transaction keys are used to determine
accounts and posting keys for line items which are created automatically by
the system

BSX – It is used for the inventory posting for addition & subtraction of the
stock where respective GL account will pick.

WRX- It is used for GR/IR clearing account after doing the normal inventory
addition and subtraction the vendor should pay.

PRD – This key will be posted when the system determines the price
difference compare to the material master if we maintain standard price
control.

GBB - This key will be posted when we have many procurement types like
sub-contracting, Consignment, Pipeline, Goods transfer-

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Configuration:

1 – Assign Company Code to the chart of Account

SAP MENU PATH –SPRO – IMG – Financial accounting (New) – G/L

Accounting (New) – master Date – G/L Accounts – Preparations – Assign
Company Code to Chart of Account (OB62)

Here we will assign CHART OF ACCOUNT (COA) to COMPANY CODE

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2 – Define Valuation level:

SAP MENU PATH – SPRO – IMG – Enterprises Structure – definition – Logistic

General – Define Valuation Level (OX14)

Here we set valuation area by plant or by company code

(Valuation area by the plant is recommended)

Note: Must be set before assigning any plant to company code, Cannot be
changed after assignment.

3 – Account Determination:

SAP MENU PATH –SPRO – IMG – Material Management – Valuation & account
Assignment – Account Determination – Account Determination without
wizard (OLMW)

Under that topic, we will cover all the configurations of the Automatic
Determination.

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3.1 -Define Valuation Control:

SAP MENU PATH –SPRO – IMG – Material Management – Valuation & account
Assignment – Account Determination – without wizard – Define valuation
Control (OMWM)

We have to make valuation grouping active by click on it.

3.2 – Group together Valuation Areas:

SAP MENU PATH –SPRO – IMG – Material Management – Valuation & account
Assignment – Account Determination – without wizard – Group together
Valuation Areas (OMWD)

Here, assign valuation grouping code to valuation area

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3.4 -Define Valuation Class:

SAP MENU PATH –SPRO – IMG – Material Management – Valuation & account
Assignment – Account Determination – without wizard – Define valuation
Class (OMSK)

Here, create account category reference 0102 and assign to material type
ZRM and valuation class from use of below given three options.

I – 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.

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II – Valuation Class:

Valuation class is defined as per the number of material groups in our

organization.
Suppose if we have 4 material groups then we can have 4 valuation classes &
each valuation class will link to the creation GL account.

III – Material Type Account category reference:

Here we assign the material type ZRM to account category reference 0102.

The impact of this assignment is when we create a material against material

type ROH (ZRM is customized) then only three types of valuation class will
show because the assignment of material type ZRM to ACR 1020 & ACR

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1020 to valuation class IBMM, IIBJ, IIBK, IIBR as you can see in the below-
given screenshot.

Note: The valuation class option will be seen in the material master
accounting view 1 for respective material type ZRM as shown in the below
figure.

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3.5 - Define Account Grouping for Movement Types

It is a standard SAP configuration so there is no need to make any changes

until not create any movement type.

SAP MENU PATH –SPRO – IMG – Material Management – Valuation & account
Assignment – Account Determination without wizard – Define Account
Grouping for Movement Types (OMWN)

GL accounts are triggered while doing MIGO, where the movement type is
linked with a certain general modifier and Transaction event key.

General Modifiers are only allowed for Transaction Key GBB and PRD.

The general modifier will come and hit the GL accounts for procurement
processes like Sub-Contracting, Consignment, Pipeline, Goods Transfer, etc.

Examples of General modifiers are VBR, VNG, BSA, and VBO, etc.

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3.6 – Configure Account Posting:

SAP MENU PATH –SPRO – IMG – Material Management – Valuation & account
Assignment – Account Determination – without wizard – Configure Account
Posting (OBYC)

In this Step Valuation Class is assigned to the G/L account

This configuration completely handled by FI team

Note: Valuation modifier = Valuation grouping code

Using this Valuation modifier, we have the flexibility to map different GL
account for the same valuation class materials.

Result:

We make a standard PO and receive the material from the vendor

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Here you can see the Automatic account determination configuration work as
we assigned.

For more clarification, I am attaching here two screens in which we saw the
GL Account against Transaction key.

Thanks

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© Copyright SAP GURU INDIA

The copyright in this work is vested in SAP GURU INDIA.

Please note and abide by copyright laws. This presentation is for educational

Purposes only, all logos, photos, and information, etc used in this

Presentation is the property of SAP GURU INDIA.

SAP is a registered trademark of SAP AG in Germany and many other

countries. We are NOT associated with SAP.

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