MM-FI Integration

MM-FI Integration

IMPORTANT SAP NOTES ON CONFIGURATION OF MM-FI ACCOUNT DETERMINATION & AUTOMATIC POSTINGS

What are automatic postings?

Postings are made to G/L accounts automatically in the case of Invoice Verification and Inventory Management transactions relevant to Financial and Cost Accounting.

Example:

Posting lines are created in the following accounts in the case of a goods issue for a cost center:

Stock account, Consumption account

How does the system find the relevant accounts?

When entering the goods movement, the user does not have to enter a G/L account, since the R/3 System automatically finds the accounts to which postings are to be made using the following data:

Chart of accounts of the company code

If the user enters a company code or a plant when entering a transaction, the R/3 System determines the chart of accounts which is valid for the company code.

You must define the automatic account determination individually for each chart of accounts.

Valuation grouping code for the valuation area

If the automatic account determination within a chart of accounts is to run differently for certain company codes or plants (valuation areas), assign different valuation grouping codes to these valuation areas.

You must define the automatic account determination individually for every valuation grouping code within a chart of accounts. It applies to all valuation areas which are assigned to this valuation grouping code.

If the user enters a company code or a plant when entering a transaction, the system determines the valuation area and the valuation grouping code.

Transaction/event key (internal processing key)

Posting transactions are predefined for those inventory management and invoice verification transactions relevant to accounting. Posting records, which are generalized in the value string, are assigned to each relevant movement type in inventory management and each transaction in invoice verification. These contain keys for the relevant posting transaction (for example, inventory posting and consumption posting) instead of actual G/L account numbers. You do not have to define these transaction keys, they are determined automatically from the transaction (invoice verification) or the movement type (inventory management). All you have to do is assign the relevant G/L account to each posting transaction.

Account grouping (only for offsetting entries, consignment liabilities, and price differences)

Since the posting transaction "Offsetting entry for inventory posting" is used for different transactions (for example, goods issue, scrapping, physical inventory), which are assigned to different accounts (for example, consumption account, scrapping,

expense/income from inventory differences), it is necessary to divide the posting transaction according to a further key: account grouping code.

An account grouping is assigned to each movement type in inventory management which uses the posting transaction "Offsetting entry for inventory posting".

Under the posting transaction "Offsetting entry for inventory posting", you must assign G/L accounts for every account grouping, that is, assign G/L accounts.

If you wish to post price differences to different price difference accounts in the case of goods receipts for purchase orders, goods receipts for orders, or other movements, you can define different account grouping codes for the transaction key.

Using the account grouping, you can also have different accounts for consignment liabilities and pipeline liabilities.

Valuation class of material or (in case of split valuation) the valuation type

The valuation class allows you to define automatic account determination that is dependent on the material. for example: you post a goods receipt of a raw material to a different stock account than if the goods receipt were for trading goods, even though the user enters the same transaction for both materials. You can achieve this by assigning different valuation classes to the materials and by assigning different G/L accounts to the posting transaction for every valuation class.

If you do not want to differentiate according to valuation classes you do not have to maintain a valuation class for a transaction.

Requirements

Before you maintain automatic postings, you must obtain the following information:

1. Valuation level (plant or company code)

Establish whether the materials are valuated at plant or at company code level

When valuation is at plant level, the valuation area corresponds to a plant. When

valuation is at company code level, the valuation area corresponds to a company

code.

2. Chart of accounts and valuation grouping code per valuation area

Find out whether the valuation grouping code is active.

Activate split valuation

If it is not active, determine the chart of accounts assigned to each valuation area

(via the company code). If it is active, determine the chart of accounts and the

valuation grouping code assigned to each valuation area. Group valuation areas

You must define a separate account determination process for chart of accounts

and each valuation grouping code.

3 Valuation class per material type

If you wish to differentiate the account determination process for specific

transactions according to valuation classes, find out which valuation classes are

possible for each material type Define valuation class

4. Account grouping for offsetting entries to stock accounts

Under Define account grouping for movement types, determine for which

movement types an account grouping is defined for the transaction/event keys

GGB (offsetting entry to stock posting), KON (consignment liabilities) and PRD

(price differences).

Activities

1. Create account keys for each chart of accounts and each valuation grouping code

for the individual posting transactions. To do so, proceed as follows:

a) Call up the activity Configure Automatic Postings.

The R/3 system first checks whether the valuation areas are correctly

maintained. If, for example, a plant is not assigned to a company code, a dialog

box and an error message appear. From this box, choose Continue (next entry)

to continue the check.

Choose Cancel to end the check.

The configuration menu Automatic postings appears.

b) Choose Goto -> Account assignment.

A list of posting transactions in Materials Management appears.

For further details of the individual transactions, see Further information.

The Account determination indicator shows whether automatic account

determination is defined for a transaction.

c) Choose a posting transaction.

A box appears for the first posting transaction. Here you can enter a chart of

accounts

You can enter the following data for each transaction:

- Rules for account number assignments

With Goto -> Rules you can enter the factors on which the

account number assignments depend:

- debit/credit indicator

- general grouping (= account grouping)

- valuation grouping

- valuation class

- Posting keys for the posting lines

Normally you do not have to change the posting keys. If you

wish to use new posting keys, you have to define them in the

Customizing system of Financial Accounting.

- Account number assignments

You must assign G/L accounts for each transaction/event key

(except KBS). You can assign these accounts manually or copy

them from another chart of accounts via Edit -> Copy.

If you want to differentiate posting transactions (e.g.

inventory postings) according to valuation classes, you must

make an account assignment for each valuation class.

Using the posting transaction "Offsetting entry for inventory

posting", you have to make an account assignment for each

account grouping

If the transaction PRD (price differences) is also dependent on

the account grouping, you must create three account assignments:

- an account assignment without account grouping

- an account assignment with account grouping PRF

- an account assignment with account grouping PRA

If the transaction KON (consignment and pipeline liabilities) is

also dependent on the account grouping, you must create two

account assignments:

- an account assignment without account grouping (consignment)

- an account assignment with account grouping (pipeline)

d) Save your settings.

Then check your settings with the simulation function.

With the simulation function, you can simulate the following:

- Inventory Management transactions

- Invoice Verification transactions

When you enter a material or valuation class, the R/3 system

determines the G/L accounts which are assigned to the corresponding

posting transactions. Depending on the configuration, the SAP system

checks whether the G/L account exists

In the simulation you can compare the field selection of the

movement type with that of the individual accounts and make any corrections.

If you want to print the simulation, choose Simulation -> Report.

To carry out the simulation, proceed as follows:

a) Choose Settings to check the simulation defaults for

- the application area (Invoice Verification or Inventory

Management)

- the input mode (material or valuation class)

- account assignment

Instructions

b) Choose Goto -> Simulation.

The screen for entering simulation data appears.

c) Depending on the valuation level, enter a plant or a company

code on the screen.

d) When you simulate Inventory Management transactions, goods

movements are simulated. The R/3 system suggests the first

movement type for simulation. If several movements are possible

with this movement type, you can select a line.

When you simulate Invoice Verification transactions, a list

appears on the screen of the possible transaction types. Select

a line.

e) Then choose Goto -> Account assignments.

A list appears of the posting lines which can be created by the

selected transaction. For each posting line, the G/L account for

the debit posting as well as the G/L account for the credit

posting are displayed.

f) From this screen, choose Goto -> Movement+ to get a list of the

posting lines for the next movement type or transaction type.

If you work with valuation classes, choose Goto -> Valuation

class+ to receive the simulation for the next valuation class.

This function is not possible when simulating with material

numbers.

Choose Goto -> Check screen layout to compare the movement type

with the G/L accounts determined by the system and make any

necessary corrections.

Further Notes

• Expense/revenue from consumption of consignment material (AKO)

This transaction is used in Inventory Management in the case of

withdrawals from consignment stock or when consignment stock is

transferred to own stock if the material is subject to standard

price control and the consignment price differs from the standard

price.

• Expenditure/income from transfer posting (AUM)

This transaction is used for transfer postings from one material to

another if the complete value of the issuing material cannot be

posted to the value of the receiving material. This applies both to

materials with standard price control and to materials with moving

average price control. Price differences can arise for materials

with moving average price if stock levels are negative and the stock

value becomes unrealistic as a result of the posting. Transaction

AUM can be used irrespective of whether the transfer posting

involves a transfer between plants. The expenditure/income is added

to the receiving material.

• Provisions for subsequent (end-of-period rebate) settlement (BO1)

If you use the "subsequent settlement" function with regard to

conditions (e.g. for period-end volume-based rebates), provisions

for accrued income are set up when goods receipts are recorded

against purchase orders if this is defined for the condition type.

• Income from subsequent settlement (BO2)

The rebate income generated in the course of "subsequent settlement"

(end-of-period rebate settlement) is posted via this transaction.

• Income from subsequent settlement after actual settlement (BO3)

If a goods receipt occurs after settlement accounting has been

effected for a rebate arrangement, no further provisions for accrued

rebate income can be managed by the "subsequent settlement"

facility. No postings should be made to the account normally used

for such provisions. As an alternative, you can use this transaction

to post provisions for accrued rebate income to a separate account

in cases such as the one described.

• Change in stock (BSV)

Changes in stocks are posted in Inventory Management at the time

goods receipts are recorded or subsequent adjustments made with

regard to subcontract orders.

If the account assigned here is defined as a cost element, you must

specify a preliminary account assignment for the account in the

table of automatic account assignment specification (Customizing for

Controlling) in order to be able to post goods receipts against

subcontract orders. In the standard system, cost center SC-1 is

defined for this purpose.

Stock posting (BSX)

This transaction is used for all postings to stock accounts. Such

postings are effected, for example:

- In inventory management in the case of goods receipts to own

stock and goods issues from own stock

- In invoice verification, if price differences occur in

connection with incoming invoices for materials valuated at

moving average price and there is adequate stock coverage

- In order settlement, if the order is assigned to a material with

moving average price and the actual costs at the time of

settlement vary from the actual costs at the time of goods

receipt

Because this transaction is dependent on the valuation class, it is

possible to manage materials with different valuation classes in

separate stock accounts.

Caution :

Take care to ensure that:

- A stock account is not used for any transaction other than BSX

- Postings are not made to the account manually

- The account is not changed in the productive system before all

stock has been booked out of it

Otherwise differences would arise between the total stock value of

the material master records and the balance on the stock account.

Revaluation of "other" consumptions (COC)

This transaction/event key is only relevant to Brazil. It is used if

a revaluation report is used for company codes in Brazil.

The revaluation report uses the actual prices determined by the

material ledger/actual costing to:

- Revaluate costs on the basis of actual prices

- Post the price differences arising from "other" consumptions

(e.g. consumption to cost center) to a collective account

This transaction/event key is needed to post the price differences.

The account specified here is posted with the price differences for

"other" consumptions.

o documentation currently available.

Small differences, Materials Management (DIF)

This transaction is used in Invoice Verification if you define a

tolerance for minor differences and the balance of an invoice does

not exceed the tolerance.

Purchase account(EIN), purchase offsetting account (EKG), freight

purchase account (FRE)

These transactions are used only if Purchase Account Management is

active in the company code.

Freight clearing (FR1), provision for freight charges (FR2), customs

duty clearing (FR3), provision for customs duty (FR4)

These transactions are used to post delivery costs (incidental

procurement costs) in the case of goods receipts against purchase

orders and incoming invoices. Which transaction is used for which

delivery costs depends on the condition types defined in the

purchase order.

You can also enter your own transactions for delivery costs in

condition types.

External service (FRL)

The transaction is used for goods and invoice receipts in connection

with subcontract orders.

If the account assigned here is defined as a cost element, you must

specify a preliminary account assignment for the account in the

table of automatic account assignment specification (Customizing for

Controlling) in order to be able to post goods receipts against

subcontract orders. In the standard system, cost center SC-1 is

defined for this purpose.

External service, delivery costs (FRN)

This transaction is used for delivery costs (incidental costs of

procurement) in connection with subcontract orders.

If the account assigned here is defined as a cost element, you must

Offsetting entry for stock posting (GBB)

Offsetting entries for stock postings are used in Inventory

Management. They are dependent on the account grouping to which each

movement type is assigned. The following account groupings are

defined in the standard system:

- AUA: for order settlement

- AUF: for goods receipts for orders (without account

assignment)

and for order settlement if AUA is not maintained

- AUI: Subsequent adjustment of actual price from cost center

directly

to material (with account assignment)

- BSA: for initial entry of stock balances

- INV: for expenditure/income from inventory differences

- VAX: for goods issues for sales orders without

account assignment object (the account is not a cost

element)

- VAY: for goods issues for sales orders with

account assignment object (account is a cost element)

- VBO: for consumption from stock of material provided to

vendor

- VBR: for internal goods issues (for example, for cost

center)

- VKA: for sales order account assignment

(for example, for individual purchase order)

- VKP: for project account assignment (for example, for

individual PO)

- VNG: for scrapping/destruction

- VQP: for sample withdrawals without account assignment

- VQY: for sample withdrawals with account assignment

- ZOB: for goods receipts without purchase orders (mvt type

501)

- ZOF: for goods receipts without production orders

(mvt types 521 and 531)

You can also define your own account groupings. If you intend to

post goods issues for cost centers (mvt type 201) and goods issues

for orders (mvt type 261) to separate consumption accounts, you can

assign the account grouping ZZZ to movement type 201 and account

grouping YYY to movement type 261.

Caution

If you use goods receipts without a purchase order in your system

(movement type 501), you have to check to which accounts the account

groupings are assigned ZOB

If you expect invoices for the goods receipts, and these invoices

can only be posted in Accounting, you can enter a clearing account

(similar to a GR/IR clearing account though without open item

management), which is cleared in Accounting when you post the vendor

invoice.

Note that the goods movement is valuated with the valuation price of

the material if no external amount has been entered.

As no account assignment has been entered in the standard system,

the assigned account is not defined as a cost element. If you assign

a cost element, you have to enter an account assignment via the

field selection or maintain an automatic account assignment for the

cost element.

Purchase order with account assignment (KBS)

You cannot assign this transaction/event key to an account. It means

that the account assignment is adopted from the purchase order and

is used for the purpose of determining the posting keys for the

goods receipt.

Exchange rate differences in the case of open items (KDM)

Exchange rate differences in the case of open items arise when an

invoice relating to a purchase order is posted with a different

exchange rate to that of the goods receipt and the material cannot

be debited or credited due to standard price control or stock

undercoverage/shortage.

Differences due to exchange rate rounding, Materials Management

(KDR)

An exchange rate rounding difference can arise in the case of an

invoice made out in a foreign currency. If a difference arises when

the posting lines are translated into local currency (as a result of

rounding), the system automatically generates a posting line for

this rounding difference.

Consignment liabilities (KON)

Consignment liabilities arise in the case of withdrawals from

consignment stock or from a pipeline or when consignment stock is

transferred to own stock.

Depending on the settings for the posting rules for the

transaction/event key KON, it is possible to work with or without

account modification. If you work with account modification, the

following modifications are available in the standard system:

- None for consignment liabilities

- PIP for pipeline liabilities

Offsetting entry for price differences in cost object hierarchies

(KTR)

The contra entry for price difference postings (transaction PRK)

arising through settlement via material account determination is

carried out with transaction KTR.

Price differences (PRD)

Price differences arise for materials valuated at standard price in

the case of all movements and invoices with a value that differs

from the standard price. Examples: goods receipts against purchase

orders (if the PO price differs from the standard pricedardpreis),

goods issues in respect of which an external amount is entered,

invoices (if the invoice price differs from the PO price and the

standard price).

Price differences can also arise in the case of materials with

moving average price if there is not enough stock to cover the

invoiced quantity. In the case of goods movements in the negative

range, the moving average price is not changed. Instead, any price

differences arising are posted to a price difference account.

Depending on the settings for the posting rules for

transaction/event key PRD, it is possible to work with or without

account modification. If you use account modification, the following

modifications are available in the standard system:

- None for goods and invoice receipts against purchase orders

- PRF for goods receipts against production orders and

order settlement

- PRA for goods issues and other movements

- PRU for transfer postings (price differences in the case

of external amounts)

Provision for delivery costs (RUE)

Provisions are created for accrued delivery costs if a condition

type for provisions is entered in the purchase order. They must be

cleared manually at the time of invoice verification.

Taxes in case of transfer posting GI/GR (TXO)

This transaction/event key is only relevant to Brazil (nota fiscal).

Revenue/expense from revaluation (UMB)

This transaction/event key is used both in Inventory Management and

in Invoice Verification if the standard price of a material has been

changed and a movement or an invoice is posted to the previous

period (at the previous price).

Unplanned delivery costs (UPF)

Unplanned delivery costs are delivery costs (incidental procurement

costs) that were not planned in a purchase order (e.g. freight,

customs duty). In the SAP posting transaction in Logistics Invoice

Verification, instead of distributing these unplanned delivery costs

among all invoice items as hitherto, you have the option of posting

them to a special account. A separate tax code can be used for this

account.

Input tax, Purchasing (VST)

Transaction/event key for tax account determination within the

"subsequent settlement" facility for debit-side settlement types.

The key is needed in the settlement schema for tax conditions.

Goods issue, revaluation (inflation) (WGI)

This transaction/event key is used if already-posted goods issues

have to be revaluated following the determination of a new market

price within the framework of inflation handling.

Goods receipt, revaluation (inflation) (WGR)

This transaction/event key is used if already-effected transfer

postings have to be revaluated following the determination of a new

market price within the framework of inflation handling. This

transaction is used for the receiving plant, whereas transaction WGI

(goods receipt, revaluation (inflation)) is used for the plant at

which the goods are issued.

GR/IR clearing (WRX)

Postings to the GR/IR clearing account occur in the case of goods

and invoice receipts against purchase orders. For more on the GR/IR

clearing account, refer to the SAP Library (documentation MM

Material Valuation).

Caution

You must set the Balances in local currency only indicator for the

GR/IR clearing account to enable the open items to be cleared. For

more on this topic, see the field documentation.

Path

IMG (Implementation Guide)  Materials Management Valuation And Account Assignment  Account Determination  Account Determination without wizard  Configure Automatic Postings

Note: Configuration related to the above for growel attached as Annexure

Define Accounts for Materials Management

In this step, you store accounts for Materials Management transactions that lead to automatic postings in Financial Accounting.

Store the required accounts for every transaction that is posted in your company.

Path

IMG (Implementation Guide)  Financial Accounting  General Ledger Accounting  Business Transaction  Integration Materials Management  Define Accounts for Materials Management

Transaction Code OBYC

What MM does

Path

IMG (Implementation Guide)  Materials Management Valuation And Account Assignment  Account Determination  Account Determination without wizard  Define Valuation Control

Transaction Code OMVVM

For account determination, you can group together valuation areas by activating the valuation grouping code. This makes the configuration of automatic postings much easier.

In the standard SAP R/3 System, the valuation grouping code is set to active.

Activities

Set the valuation grouping code.

Notes on transport

In this step, you maintain the table TCURM. This table activates/deactivates key functions in the client. It:

Defines the valuation level (plant / company code), Activates the Late material block,

Activates split valuation

Since the automatic transport of an indicator could activate/deactivate other functions, you cannot use the automatic transport function here.

Maintain the Customizing function manually in the target system.

For the first Customizing transport to a target system that is not yet productive, you can transport the table manually. To do this, you must include the entry R3TR TABU TCURM in the transport request.

Group Together Valuation Areas

In this step, you assign valuation areas to a valuation grouping code.

The valuation grouping code makes it easier to set automatic account determination. Within the chart of accounts, you assign the same valuation grouping code to the valuation areas you want to assign to the same account.

Valuation grouping codes either reflect a fine distinction within a chart of accounts or they correspond to a chart of accounts.

Within a chart of accounts, you can use the valuation grouping code

to define individual account determination for certain valuation areas (company codes or plants), to define common account determination for several valuation areas (company codes or plants)

Requirements

You must have activated the valuation grouping code in the step Define valuation control.

Define valuation control

You must have defined the valuation level in corporate structure Customizing.

Define valuation level

You must have assigned each plant to a company code in "Corporate structure" Customizing. When assigning your plants, the valuation areas are defined automatically.

Assign plant to company code

Recommendation

We recommend that you only use a valuation grouping code within a chart of accounts in order to prevent account determination from becoming confusing.

Path

IMG (Implementation Guide)  Materials Management Valuation And Account Assignment  Account Determination  Account Determination without wizard  Group Together Valuation Areas

Transaction Code OMVVD

Following are the settings done

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 R/3 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.

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.

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

sreference to each material type.

Path

IMG (Implementation Guide)  Materials Management Valuation And Account Assignment  Account Determination  Account Determination without wizard  Define Valuation Classes

Transaction Code OMSK

Following are the settings made

Account Category Reference

Valuation Classes

Material Type/ Account Category Reference

Define Account Groupings 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 with ChOA-INT

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:

o GBB (offsetting entry for inventory posting)

Overview of account groupings GBB

o PRD (price differences)

Overview of account groupings PRD

o 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.