Automatic account determination (MM-FI ) full explanation.

Description

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

What You Will Learn!

• Automatic account determination(MM-FI Integration) full concept from Basic to high overview

Who Should Attend!

• Consultants, Functional/Technical, Superuser, Enduser

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