Automatic Account Determination in SAP

7/28/2019 Automatic Account Determination in SAP

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There are many transactions in Material Management (MM) that relevant for Accounting. These transactions must berecorded in accounting documents that contain the postings made to the G/L accounts in Financial Accounting (FI).The mostly used MM transactions that relevant for FI can be seen atAccounting Journals of SAP Material

Management (MM) Transactions.For those transactions, as far as possible, the SAP R/3 System should determine automatically the G/L accountnumbers that are involved in the accounting journal. By doing so, we can minimize the inputs and error possibilitiesmade by MM end-users who perform the transactions as they dont determine the G/L account numbers.

We can do this by Automatic Account Determination process in MM configuration (T-code:SPRO). The automatic

account determination process must be done together with Accounting Department.The influencing factors that determine how SAP choose the G/L account numbers that are involved in the accounting

journal for MM transactions are:

Chart of accounts of the company codeWe must assign a chart of account to each company code. Several company codes can use the same chart of

accounts. This process must be done in FICO configuration. You can learn how to configure FICO module in i

relation with MM module atSAP FICO minimal configuration for MM posting.SAP R/3 determines the chart of account affected by MM transaction from the company code or plant enteredby user when performs a transaction.We must define the automatic account determination individually for each

chart of accounts.

Valuation grouping code of the valuation areaSeeMaterial Valuationto know more about valuation area. The Valuation grouping code is a key todifferentiate account determination by valuation area within a chart of account. Valuation grouping code is als

called Valuation modification.SAP screenshots of How to activate the valuation grouping code(T-code:SPRO/OMWM):

SPRO menu:IMGMaterials Management-Valuation and Account AssignmentAccount DeterminationAccount

Determination Without Wizard-Define Valuation Control

The above image is SAP AG 2010. All rights reservedA valuation grouping code consists of a group of valuation areas that can have same account determination in specific chart of account. It is a tool that enables us to configure the automatic account determination with aminimum of effort.

If we activate the valuation grouping code in configuration process, we have to assign a valuation grouping co

to each valuation area.SAP Screenshots of How to define valuation grouping code (T-code:SPRO/OMWD):SPRO menu: IMGMaterials Management-Valuation and Account AssignmentAccount Determination

Account Determination Without WizardGroup Together Valuation Areas.
http://ierp.us/sap/mm-fi-integration/accounting-fico-journals-of-sap-material-management-mm-transactions/http://ierp.us/sap/mm-fi-integration/accounting-fico-journals-of-sap-material-management-mm-transactions/http://ierp.us/sap/mm-fi-integration/accounting-fico-journals-of-sap-material-management-mm-transactions/http://ierp.us/sap/mm-fi-integration/accounting-fico-journals-of-sap-material-management-mm-transactions/http://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://ierp.us/sap/mm-fi-integration/sap-fico-minimal-configuration-for-mm-posting/http://ierp.us/sap/mm-fi-integration/sap-fico-minimal-configuration-for-mm-posting/http://ierp.us/sap/mm-fi-integration/sap-fico-minimal-configuration-for-mm-posting/http://ierp.us/sap/mm-fi-integration/material-valuation/http://ierp.us/sap/mm-fi-integration/material-valuation/http://ierp.us/sap/mm-fi-integration/material-valuation/http://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=OMWMhttp://tcodes.ofsap.com/tcode.php?tcode=OMWMhttp://tcodes.ofsap.com/tcode.php?tcode=OMWMhttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=OMWDhttp://tcodes.ofsap.com/tcode.php?tcode=OMWDhttp://tcodes.ofsap.com/tcode.php?tcode=OMWDhttp://1.bp.blogspot.com/_a_asG961c2A/R2ce1k2dgqI/AAAAAAAAALg/qFZPWTQ7NWU/s1600-h/MM-011-02.jpghttp://tcodes.ofsap.com/tcode.php?tcode=OMWDhttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=OMWMhttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://ierp.us/sap/mm-fi-integration/material-valuation/http://ierp.us/sap/mm-fi-integration/sap-fico-minimal-configuration-for-mm-posting/http://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://ierp.us/sap/mm-fi-integration/accounting-fico-journals-of-sap-material-management-mm-transactions/http://ierp.us/sap/mm-fi-integration/accounting-fico-journals-of-sap-material-management-mm-transactions/


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The above image is SAP AG 2010. All rights reservedBy activating and using the valuation grouping code, we dont have to configure account determination for eacvaluation area (that is a plant or company code) if we dont want to differentiate it for each valuation area. If wwant the automatic account determination within a chart of accounts runs differently for valuation areas, we ca

assign different valuation grouping codes to these valuation areas.We must define the automatic account determination individually for every valuation grouping code within achart of accounts. It applies to all valuation areas which are assigned to this valuation grouping code.For example, if we want to differentiate the account determination for a group of two plants with another group

of other three plants in a company code (where the valuation level is plant), we can assign a valuation groupingcode for the group of two plants and another valuation grouping code for the group of other three plants. By

doing so, we just have to configure the account determination for the two valuation grouping codes, no need fofive valuation areas (plants).

SAP R/3 determines the valuation area and the valuation grouping code affected by MM transaction from thecompany code or plant entered by user when performs a transaction.

Valuation class of materialThe valuation class is a key to differentiate account determination by materials. For example, we can post a

goods receipt of a raw material to a different inventory account than if the goods receipt were for finished-product.We can do this by assigning different valuation classes to the raw material and finished-product and by

assigning different G/L accounts to the posting transaction for every valuation class. If we dont want to

differentiate account determination according to valuation classes we dont have to maintain a valuation classfor a transaction.The valuation class must be entered in the accounting data view of material master data for a valuated-materia

The allowed valuation classes for a material depend on its material type. More than one valuation class can beallowed for a material type. More than one material type can be allowed for a valuation class. The relationship

between valuation classes and material types is established by the account category reference. The accountcategory reference is a compilation of valuation classes. A material type is assigned to only one account

category reference.
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SAP screenshots of How to define valuation classes (T-code:SPRO/OMSK)

SPRO menu: IMGMaterials Management-Valuation and Account AssignmentAccount DeterminationAccount Determination Without Wizard-Define Valuation Classes.

The above image is SAP AG 2010. All rights reserved


http://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=OMSKhttp://tcodes.ofsap.com/tcode.php?tcode=OMSKhttp://tcodes.ofsap.com/tcode.php?tcode=OMSKhttp://1.bp.blogspot.com/_a_asG961c2A/R2ciNk2dguI/AAAAAAAAAMA/uF1Xc0eoPu4/s1600-h/MM-011-08.jpghttp://3.bp.blogspot.com/_a_asG961c2A/R2ciFE2dgtI/AAAAAAAAAL4/-NLi0MFxfyw/s1600-h/MM-011-07.jpghttp://4.bp.blogspot.com/_a_asG961c2A/R2chqU2dgsI/AAAAAAAAALw/3L_D4h-mQLg/s1600-h/MM-011-06.jpghttp://3.bp.blogspot.com/_a_asG961c2A/R2onwU2dg5I/AAAAAAAAANY/NUPc0Rxnt3Y/s1600-h/MM-011-05a.jpghttp://1.bp.blogspot.com/_a_asG961c2A/R2ciNk2dguI/AAAAAAAAAMA/uF1Xc0eoPu4/s1600-h/MM-011-08.jpghttp://3.bp.blogspot.com/_a_asG961c2A/R2ciFE2dgtI/AAAAAAAAAL4/-NLi0MFxfyw/s1600-h/MM-011-07.jpghttp://4.bp.blogspot.com/_a_asG961c2A/R2chqU2dgsI/AAAAAAAAALw/3L_D4h-mQLg/s1600-h/MM-011-06.jpghttp://3.bp.blogspot.com/_a_asG961c2A/R2onwU2dg5I/AAAAAAAAANY/NUPc0Rxnt3Y/s1600-h/MM-011-05a.jpghttp://1.bp.blogspot.com/_a_asG961c2A/R2ciNk2dguI/AAAAAAAAAMA/uF1Xc0eoPu4/s1600-h/MM-011-08.jpghttp://3.bp.blogspot.com/_a_asG961c2A/R2ciFE2dgtI/AAAAAAAAAL4/-NLi0MFxfyw/s1600-h/MM-011-07.jpghttp://4.bp.blogspot.com/_a_asG961c2A/R2chqU2dgsI/AAAAAAAAALw/3L_D4h-mQLg/s1600-h/MM-011-06.jpghttp://3.bp.blogspot.com/_a_asG961c2A/R2onwU2dg5I/AAAAAAAAANY/NUPc0Rxnt3Y/s1600-h/MM-011-05a.jpghttp://1.bp.blogspot.com/_a_asG961c2A/R2ciNk2dguI/AAAAAAAAAMA/uF1Xc0eoPu4/s1600-h/MM-011-08.jpghttp://3.bp.blogspot.com/_a_asG961c2A/R2ciFE2dgtI/AAAAAAAAAL4/-NLi0MFxfyw/s1600-h/MM-011-07.jpghttp://4.bp.blogspot.com/_a_asG961c2A/R2chqU2dgsI/AAAAAAAAALw/3L_D4h-mQLg/s1600-h/MM-011-06.jpghttp://3.bp.blogspot.com/_a_asG961c2A/R2onwU2dg5I/AAAAAAAAANY/NUPc0Rxnt3Y/s1600-h/MM-011-05a.jpghttp://tcodes.ofsap.com/tcode.php?tcode=OMSKhttp://tcodes.ofsap.com/tcode.php?tcode=SPRO


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Transaction/event key (internal processing key)

The Transaction/event key is a key to differentiate account determination by business transaction. For example

we must differentiate G/L account posted by goods receipt transaction and posted by invoice receipt transactio

Posting transactions are predefined for those inventory management and invoice verification transactionsrelevant to accounting. Posting records, which are generalized in the value string, are assigned to each relevantmovement type in inventory management and each transaction in invoice verification. These contain keys forthe relevant posting transaction (for example, inventory posting and consumption posting) instead of actual G/

account numbers.

We do not have to define these transaction keys, they are determined automatically from the transaction (invoiverification) or the movement type (inventory management). All we have to do is assign the relevant G/L
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account to each posting transaction.You can see list of transaction keyhere.

Account grouping(only for transaction: offsetting entries, consignment liabilities, and price differences)Account grouping is a key that allows us to subdivide number assignments for each transaction key in accountdetermination.Account grouping is also called general modification. Since theposting 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 frominventory 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 forinventory posting, we must assign G/L accounts for every account grouping, that is, assign G/L accounts.If we wish to post price differences to different price difference accounts in the case of goods receipts forpurchase orders, goods receipts for orders, or other movements, we can define different account grouping code

for the transaction key.

Using the account grouping, we can also have different accounts for consignment liabilities and pipelineliabilities.

You can see list of account groupinghere.

Configure Automatic PostingsAutomatic Postings are postings made to G/L accounts automatically in the case of Invoice Verification and Invento

Management transactions relevant to Financial and Cost Accounting.When entering the goods movement, the user does not have to enter a G/L account, since the SAP R/3 Systeautomatically finds the accounts to which postings are to be made using the influence factors as explain above.SAP Screenshots of how to configure automatic posting (T-code:SPRO/OBYC):

Posting made in the case of goods receipt (GR) to purchase order (PO):

Inventory accountGR/IR Clearing

Account

500 500

We need to update the BSX transaction key (Inventory posting) with the GL code Inventory accoun

SPRO menu:IMGMaterials Management-Valuation and Account AssignmentAccount DeterminationAccount Determinati

Without WizardConfigure Automatic Posting.

http://www.4shared.com/file/32176939/49dd143e/SAP_MM-Transaction_keys__Account_grouping.htmlhttp://www.4shared.com/file/32176939/49dd143e/SAP_MM-Transaction_keys__Account_grouping.htmlhttp://www.4shared.com/file/32176939/49dd143e/SAP_MM-Transaction_keys__Account_grouping.htmlhttp://www.4shared.com/file/32176939/49dd143e/SAP_MM-Transaction_keys__Account_grouping.htmlhttp://www.4shared.com/file/32176939/49dd143e/SAP_MM-Transaction_keys__Account_grouping.htmlhttp://www.4shared.com/file/32176939/49dd143e/SAP_MM-Transaction_keys__Account_grouping.htmlhttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://tcodes.ofsap.com/tcode.php?tcode=OBYChttp://tcodes.ofsap.com/tcode.php?tcode=OBYChttp://tcodes.ofsap.com/tcode.php?tcode=OBYChttp://1.bp.blogspot.com/_a_asG961c2A/R2ciyk2dgyI/AAAAAAAAAMg/GqQvnrcKxiA/s1600-h/MM-011-12.jpghttp://tcodes.ofsap.com/tcode.php?tcode=OBYChttp://tcodes.ofsap.com/tcode.php?tcode=SPROhttp://www.4shared.com/file/32176939/49dd143e/SAP_MM-Transaction_keys__Account_grouping.htmlhttp://www.4shared.com/file/32176939/49dd143e/SAP_MM-Transaction_keys__Account_grouping.html


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The above image is SAP AG 2010. All rights reservedEnter Chart of Account which we want to configure its account determination, then enter the G/L account affected b

the transaction as below:


We also need to update the WRX transaction key with the GL code GR/IR Clearing account.


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The above image is SAP AG 2010. All rights reserved posting made in the case of goods issue to cost center:

Inventory accountMaterial consumption

expense account

500 500

We have configured the inventory posting transaction in the previous section (GR to PO).Now, we have to configure transaction key GBB. GBB key is used for various offsetting posting entries. Within GBtransaction there are various account grouping (general modification). In this case we need to update gener

modification VBR with the material consumption expense account.


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____________________________________

Accounting (FICO) Journal of MM Goods Receipt (GR) and

Invoice Receipt (IR) Transactions

GR for initial entry for stock balance (movement type: 561).

T-Code used:MIGOorMB1C.

We must carry out an initial entry of stock balances when implementing the MM module of SAP R/3 System in ord

to transfer physical warehouse stocks or book inventories from an existing inventory accounting software into the SA

R/3 System as book inventories.

Typically, a traditional accounting software program usually has an inventory sub module which records t

inventories values in the balance sheet. But its not an online accounting software which record the invento

movement transaction in real-time basis like SAP does. Usually, this accounting software records the materi

movements transaction once in a certain period, e.g. once a month after get the information from otherdepartment.

In the GR for initial entry for stock balance transaction, no physical movements actually take place.

The the typical accounting journal is:

Inventory account

Initial inventory

clearing account

1000 1000

The initial inventory clearing account then will be cleared against other appropriate accounts by FI module.
http://tcodes.ofsap.com/tcode.php?tcode=MIGOhttp://tcodes.ofsap.com/tcode.php?tcode=MIGOhttp://tcodes.ofsap.com/tcode.php?tcode=MIGOhttp://tcodes.ofsap.com/tcode.php?tcode=MB1Chttp://tcodes.ofsap.com/tcode.php?tcode=MB1Chttp://tcodes.ofsap.com/tcode.php?tcode=MB1Chttp://3.bp.blogspot.com/_a_asG961c2A/R2ckmE2dg4I/AAAAAAAAANQ/HqsQHbw7dAY/s1600-h/MM-011-21.jpghttp://tcodes.ofsap.com/tcode.php?tcode=MB1Chttp://tcodes.ofsap.com/tcode.php?tcode=MIGO


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GR for Purchase Order (PO) (movement type: 101).


In a PO, the field that determines the accounting journal is account assignment category field. The account

assignment in a PO is usually adopted from Purchase Requisition (PR).

The account assignment category determines:

The nature of the account assignment (cost center, sales order, and so on) . Which accounts are to be charged when the incoming invoice or goods receipt is posted. Which account assignment data you must provide.


The most used Account Assignment Categories (AAC).

AACDescription

Required account assignment

data

A Asset Main asset number and sub-number

K Cost center

Cost center and G/L account

number

Inventory Material number

For PO with account assignment A (Fixed Asset) the typical accounting journal is:

Fixed asset account

GR/IR Clearing

Account

6000 6000

The first journal will increase the Asset and the second journal will increase the Liabilities (GR/IR is a liabiliti

account), and the Balance sheet stays balance (Asset = Liabilities + Equity).

The goods receipt/invoice receipt (GR/IR) clearing account is posted to whenever you receive goods that have n

been invoiced yet or whenever you receive invoices for goods that have not been delivered yet.

For PO with account assignment K the typical accounting journal is:

Expense account

GR/IR Clearing

Account
http://tcodes.ofsap.com/tcode.php?tcode=MIGOhttp://tcodes.ofsap.com/tcode.php?tcode=MIGOhttp://tcodes.ofsap.com/tcode.php?tcode=MIGOhttp://tcodes.ofsap.com/tcode.php?tcode=MB1Chttp://tcodes.ofsap.com/tcode.php?tcode=MB1Chttp://tcodes.ofsap.com/tcode.php?tcode=MB1Chttp://ierp.us/sap/mm-materials-management/purchasing/a-account-assignment-in-po-document/http://ierp.us/sap/mm-materials-management/purchasing/a-account-assignment-in-po-document/http://ierp.us/sap/mm-materials-management/purchasing/a-account-assignment-in-po-document/http://ierp.us/sap/mm-materials-management/purchasing/a-account-assignment-in-po-document/http://ierp.us/sap/mm-materials-management/purchasing/k-account-assignment-in-po-documents/http://ierp.us/sap/mm-materials-management/purchasing/k-account-assignment-in-po-documents/http://ierp.us/sap/mm-materials-management/purchasing/k-account-assignment-in-po-documents/http://1.bp.blogspot.com/_a_asG961c2A/R1tSjSl261I/AAAAAAAAAGE/6ckf4b5xka0/s1600-h/MM-010-01.jpghttp://ierp.us/sap/mm-materials-management/purchasing/k-account-assignment-in-po-documents/http://ierp.us/sap/mm-materials-management/purchasing/k-account-assignment-in-po-documents/http://ierp.us/sap/mm-materials-management/purchasing/a-account-assignment-in-po-document/http://ierp.us/sap/mm-materials-management/purchasing/a-account-assignment-in-po-document/http://tcodes.ofsap.com/tcode.php?tcode=MB1Chttp://tcodes.ofsap.com/tcode.php?tcode=MIGO


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10 10

The first journal will decrease the Current year net profit (so it will decrease Equity) and the second journal w

increase the Liabilities (GR/IR is a liabilities account), and the Balance sheet stays balance, since decrease in equity

balanced by increase in liabilities and asset stays the same (Asset = Liabilities + Equity).

For PO with account assignment (blank) the accounting journal depends on price control procedure of the materi

received. (seematerial valuationfor detail on price control procedure).

If price control is S (standard price), the typical accounting journal is:Inventory account

GR/IR Clearing

Account

550 500

assumption:Revenue from pricedifferences account

standard price= 550 50

The first journal will increase the Asset by 550 and the second journal will increase the Liabilities (GR/IR is

liabilities account) by 500. The third journal will increase the net profit (so it will increase Equity) by 50, and th

Balance sheet stays balance (Asset = Liabilities + Equity).

If price control is V (moving average price), the typical accounting journal is:
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Inventory account

GR/IR Clearing

Account

500 500

The first journal will increase the Asset and the second journal will increase the Liabilities (GR/IR is a liabilitiaccount), and the Balance sheet stays balance (Asset = Liabilities + Equity).

Seematerial valuationto understand the effect of materials price control procedure to the accounting journal

Goods Receipt transaction.

In the end, the accounting journal for price control procedure S and V will result the same to the Balance Sheand Profit & Loss Statement. It is because as long as the business operation of the company runs, the material th

received by this PO will be used, either for consumption or for sales. Lets assume that there is no other transaction f

this material.

The typical accounting journal for consumption for price control S is:

Inventory account

Material consumption

expense account

550 550

The first journal will decrease the Fixed Asset by 550 (same amount with the increase of the Asset when GR is don

so it will result 0 in Inventory account). The second journal will decrease the current year profit, so it will decrea

Equity, by 550. It will result -550+50(from revenue from price differences account when GR is done) =-5(decrease in Equity).

The typical accounting journal for consumption for price control V is:

Inventory account

Material consumption

expense account

500 500
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The first journal will decrease the Asset by 500 (same amount with the increase of the Asset when GR is done, so

will result 0 in Inventory account). The second journal will decrease the current year profit, so it will decrease Equi

by 500.

GR Subcontract PO.


In subcontract order processing, the vendor receives materials (components) with which it produces the finishe

product. The following are involved:

We order the finished-product using a subcontract order (subcontract PO). The components that the vendneeds to manufacture the finished-product are specified in the purchase order, and we provide them to vendor.

When we send the component to vendor, in Inventory Management, we transfer those components frounrestricted-stock to special stock (stock of material provided to vendor). These special stocks are still show

as our stock in MMBE (T-code for stock overview). This transaction will not post the accounting journal.

The vendor performs its service and delivers the ordered material (the finished-product). GR is done for tfinished-product, and automatically the consumption of the components is posted.

The typical accounting journal when GR is done is:

Inventory account (fin.-

product)

Inventory account

(comp. mat)

1000 800

GR/IR clearing account

200
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Assumption: The vendors fee (PO value) =200; the component value=800.

The first journal will increase the Asset by 1000, and the second journal will decrease the Asset by 800. The thir

journal will increase the Liabilities (GR/IR is a liabilities account) by 200, so the Balance sheet stays balance, Ass

(1000-800) = Liabilities (200) + Equity (0).

Invoice Receipt (IR)

T-Code used: MIRO or MIR6 and MIR7.

The typical invoice accounting journal is:

GR/IR Clearing

account

Vendor account

(Account Payable)

1000 1000

The goods receipt/invoice receipt (GR/IR) clearing account is posted to whenever you receive goods that have n

been invoiced yet or whenever you receive invoices for goods that have not been delivered yet.

Seematerial valuationto understand the effect of materials price control procedure to the accounting journal

Invoice Receipt transaction.

The vendor account (account payable) will be followed up by finance department using FI module to payme

processing. The typical accounting journal of the payment processing is:

Vendor account

(Account Payable) Cash / Bank account

1000 1000

GR other/without PO (movement type: 501)


The the typical accounting journal is:

Inventory account Other revenue account

1000 1000
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Documents

Automatic Account Determination in SAP