FIN2008 Gunawardena MM FI Integration V00-2

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What Every Finance Team Now Needs to Know About FI and MM Integration

Rohana GunawardenaExium

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What We’ll Cover …

• Introduction• MM fields that drive FI-GL account determination• Understanding Table T030• Transporting T030 configuration• FI-GL impact of Goods Receipts• FI-GL impact of Deliveries• FI-GL impact of Material Movements (MM)• Test plan to ensure clean FI-GL postings of MM data• Configuration ownership• Wrap-up

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Introduction

• I have seen many clients encounter issues with MM/FI configuration

• The chief culprit has been apathy – neither FI nor MM wants to own the configuration

• The MM team gets stuck, so it implements something just to get rid of the error messages

You FI guys should do this!

No, you MM guys should

do this!

Issue

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Introduction (cont.)

• MM Account Determination or Automatic Account Assignment is the SAP tool used to select General Ledger (G/L) accounts for MM-related FI postings

• This session covers the basics of MM Account Determination

• This is a complex area … … but not so complex that you need to be afraid

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Account Determination: What Drives It?

• The key criteria driving General Ledger (G/L) account determination are: Material type Material valuation class Plant Movement type

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Account Determination: Material Type

• Material Type defines whether a material is subject to value updating, i.e., whether it’s relevant for FI posting

• Use transaction OMS2 to set the material type:

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Account Determination: Material Valuation Class

• In the Accounting and/or Costing view of the material master, the material is assigned a valuation class:

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Account Determination: Material Valuation Class (cont.)

• Define valuation classes with transaction OMSK

• First, define an account category reference• A valuation class is created and assigned to an account

category reference

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Account Determination: Material Valuation Class (cont.)

• Many valuation classes can belong to a single account category reference

• A material type has a single account category reference, but many valuation classes

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Account Determination: Plant/Valuation Area

• The valuation area can be defined at the plant or company code level – use transaction OX14

• Always choose the plant level

• This allows PP, CO-PC, and job costing to be used in the future

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Account Determination: Valuation Group

• Valuation areas are grouped to allow the same configuration for many plants – use transaction OMWD

• Use of valuation groups is optional, but recommended; use transaction OMWM

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Account Determination: Movement Type

• Material Movement Type, together with other fields, drives the value string

MovementType

ValueUpdate

Indicator

QuantityUpdate

Indicator

SpecialStock

Indicator

MovementIndicator

ReceiptIndicator

Indicatorfor

ConsumptionPosting

Value String

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Account Determination: Valuation String

• Movement type: Three-digit code.• Value update indicator: Update G/L accounts?• Quantity update indicator: Update quantity fields?• Special stock indicator: Who owns this material/who has

physical possession?• Movement indicator: What type of order caused

this movement?• Receipt indicator: Type of PO, e.g., STO.• Indicator for consumption posting: Cost Center, Asset,

Project, Production Order, or Sales Order.

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Account Determination: Valuation String (cont.)

• Valuation string is assigned in transaction OMJJ (“Update control/WM movement types” view)

• Do not change for standard movement types

Warning

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Value String Assignments (cont.)

• Non valuated movement type by process has no value string even for valuated materials

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Account Determination: Transaction Key (cont.)

• The valuation string points to transaction keys in Table T156W, not in IMG

• Do not change this table• Not all transaction keys are used for a transaction• Transaction keys define debit and credit postings• There are many transaction keys; see documentation in

IMG for a full list• The three most common transaction keys include:

BSX – inventory (stock) postings GBB – offsetting entry for inventory (stock) WRX – GR/IR clearing

Warning

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Account Determination: Transaction Key

• The first two transaction keys of WF01 create the following postings:

Debit BSX Stock

Credit WRX GR/IR clearing• This is the accounting you would expect for a Goods

Receipt into stock

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Account Determination: BSX-Inventory (Stock) Postings

• This transaction key represents the stock account• The G/L stock account is used only for BSX; do not use

the account for any other transaction key • The G/L account master must be set for automatic

posting only• Account assignments should not be changed in your

production system unless all stocks are posted to another account

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Account Determination: GBB – Offsetting Entry for Inventory (Stock) • In the case of transaction key GBB, Table T156X is

used to determine an account modifier

• This allows further flexibility in selection of the consumption account

• Use transaction OMWN• Account modifier is freely definable, no drop down list

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Account Determination: GBB – Offsetting Entry for Inventory (Stock) (cont.)

• The following fields define the selection of the account modifier for transaction key GBB:

MovementType

SpecialStock

Indicator

ValueUpdate

Indicator

QuantityStock

Indicator

MovementIndicator

Indicator Valuefor

ConsumptionPosting

Account Modifier

String

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GBB – Common Account Modifiers

• AUA Order settlement • AUF GRs for orders (without account assignment)

and for order settlement when AUA is not maintained

• BSA Initial entry of stock balances• VAX Goods issues for Sales Orders with no

assignment object• VAY Goods issues for Sales Orders with account

assignment object • VBO Consumption from stock provided to vendor • VBR Internal goods issues (e.g., for cost center) • VKA Sales Order account assignment (e.g., for

individual PO)• VKP Project account assignment (e.g., for

individual PO)

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Account Determination: WRX – GR/IR Clearing

• Postings to the Goods Receipt/Invoice Receipt (GR/IR) clearing account occur when goods and invoices are received

• The balance indicator must be set only in local currency for the GR/IR clearing account so that open items are cleared

• This should be a clearing account, open item management

• Older documentation mentions WRY for the material ledger; this is no longer used

GOTCHA!

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Account Determination: Recap of Fields

• You have seen a number of different fields that influence the selection of G/L accounts

• As you are advised not to change several tables, the selection of influencing fields which are commonly maintained includes: Material Valuation Class Plant/Valuation Area

• The specific transaction/Material Movement will also impact the G/L accounts through transaction keys

• These fields are key fields of Table T030

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Table T030: Introduction

• This table contains the G/L accounts selected for material postings

• This is where you will spend the most time configuring the MM/FI interface

• Maintain using transaction OMWB Best table content display using SE16

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Table T030 IMG

• The IMG location in MM often results in FI teams ignoring this area

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Table T030: Fields

Field Update Comments

Chart of Accounts OB13 The chart of accounts used by the company code.

Transaction KeyPreset three character codes that represent different types of business transactions. Set of values predefined by SAP.

Valuation Grouping Code

OMWD This code is used to group together different plants to avoid repeating the same configuration.

Account Modifier OMWNAn additional field to allow more detailed account determination than by transaction key alone.

Valuation Class OMSK A set of values used to segregate different materials.

Debit G/L Account FS01 The G/L account selected for debit postings.

Credit G/L Account FS01 The G/L account selected for credit postings.

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Table T030: Key Field Drivers

Plant

Valuation Area

Company Code

Chart of Accounts

Movement Type

Other Factors

Value String

Transaction Key

PlantValuation

AreaValuation

Group

Movement Type

Other Factors

Xaction Key

Account Modifier

MaterialValuation

Class

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Table T030: Updating

• Upon entering transaction OMWB, you will see many warning pop-ups; press Cancel to go past these

• These are the result of inconsistent configuration• Review the pop-ups prior to moving configuration out of the

development system

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Table T030: Updating (cont.)

• Press the Account assignment button

• Double-click on the transaction key

• Enter your Chart of Accounts

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Updating Table T030 (cont.)

• Enter or modify G/L accounts

• Different keys have different fields for input

Note: General Modifier is the

same as Transaction Key

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Table T030: Updating (cont.)

• When reviewing T030 entries or searching for G/L accounts, use SE16 as this allows many transaction keys to be displayed at once and all table fields can be displayed

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Table T030: Testing

• Press the simulation button of OMWB

• Enter a Plant, Material, Movement Type, and Special Stock Indicator to display G/L accounts

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Table T030: Testing (cont.)

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Table T030: Account Determination Wizard

• I do not recommend the use of the wizard in productive systems as it does not allow the level of granularity required for detailed adjustments

• The risk of corrupting existing configuration is not worth it

• The wizard can be used to set up a baseline configuration for the first time; revise the configuration using the IMG

• It can be used to review existing configuration• It does not allow for complex configuration• Transaction code OMWW

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Transporting Table T030

• Unlike other tables, as a result of OMBW, processing SAP does not transport T030 by row, but rather by transaction key (e.g., BSX)

• It is easy to move too many rows in a transport, including test values, and overwrite valid configuration

• For low volumes, use manual configuration• For high volumes, e.g., go-live, review all entries for the

transaction keys to be transported; a test or dummy entry must not be included when transporting

• Maintain a spreadsheet of settings for T030 to refer to in case of any configuration corruption

Solution

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FI-GL Impact of Goods Receipts

• For purchasing, movement type 101 is used most often for a GR related to a PO

• The movement type logic applies only to direct purchasing

• In indirect purchasing there is no material master or movement type, the cost is expensed immediately, and the G/L account is entered in the PO line item account assignment

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FI-GL Impact of Goods Receipts (cont.)

1. Goods Receipt (GR)

2. Invoice Receipt (IR)

3. Vendor Payment

1. BSX 100

Stock Account

2. WRX 100

1. WRX 100

GR/IR Clearing

3. 100

Cash Account

3. 100

Vendor

2. 100

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FI-GL Impact of Goods Receipts (cont.)

• Goods Receipt – WE

• Invoice Receipt – RE

Use Goto -> Display as list, to show transaction code in ECC

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FI-GL Impact of Deliveries

• Why is this in an MM presentation? A Delivery creates a Material Movement, which in turn creates

an FI posting using entries in T030 You can find the movement type in the Sales Order schedule

line, depending on schedule line category

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FI-GL Impact of Deliveries (cont.)

Sales order DeliverySales and

Distribution (SD) Billing

Revenue account determination allows sophisticated account

selection

Material account determination using table T030 chooses COS

clearing account

FI invoiceDr Customer Cr Revenue

PGI documentDr COS Clearing Cr Stock

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FI-GL Impact of Material Movements

• It is possible for material movements unrelated to sales and purchases to occur – e.g., stock transfer, cycle count adjustments, initial stock load

• These material movements create FI documents based on the configuration I have reviewed

• Not all movement types create FI documents – e.g., 651 Goods Delivery [GD] for returned material

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FI-GL Impact of Material Movements (cont.)

• Often, an FI document that debits and credits the same stock account is created This is normal for plant transfers within a single

company code, e.g. movement type 351

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Test Plan for FI-GL Postings of MM Data

1. Set up valuation area at the plant level; this provides flexibility for future configuration

2. Activate valuation grouping codes; this provides flexibility for future configuration

3. Define valuation classes matching material types ROH, HALB, and FERT; you may need more

4. Set up material masters for the valuation classes/material types defined

5. Extend the materials to all of the plants to be tested

6. With the MM and SD team members, define the movement types to be used

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Test Plan for FI-GL Postings of MM Data (cont.)

7. Make initial account entries in T030

8. For each material, plant, and movement type combination, perform the transactions

9. Review the FI posting for each MM posting and adjust T030 as required

10. Allow a month to complete this process for all transactions

11. Record all results in a spreadsheet with plant, material type, movement type, and G/L accounts

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Configuration Ownership

• The FI team should take full ownership of the MM/FI configuration; otherwise the MM team could conceivably enter something, just so they can complete their transactions

• If you have a large FI team, this should be FI-GL• Ideally, you should have one or two people who

understand all relevant entries• Lock all other users out of T030 – major problems can be

caused by free update access to this table

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Resources: Information Sources

• Implementation Guide Materials Management Valuation and Account Assignment

Account Determination Create automatic postings Double-click on text to launch SAP Online IMG Help The help text has a detailed list of the SAP transaction keys

and account modifiers

• Solution Manager, VSAP, ASAP Implementation Assistant Knowledge Corner SAP Products

Corner R/3 Procurement Automatic Account Assignment (ZIP file) AcctDeterm.doc

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Resources: CD-ROM Material

• Rohana Gunawardena, “Are Your Stock Balances Correct?” (SAP Financials Expert, October 2004).

• Rohana Gunawardena, “Material Master History Tables: What Happens to Materials in Prior Periods?” (SCM Expert, June 2005).

• Rohana Gunawardena, “Avoid a Disconnect Between Your MM and FI Period Closes” (SAP Financials Expert, April 2005).

• Rohana Gunawardena, “Segregating Internal and External Goods Receipts” (SAPtips Magazine, August 2003).

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7 Key Points to Take Home

• MM account determination is driven primarily by only four values

• Not all MM movement types result in FI postings• The FI team should take ownership of the MM to FI

configuration• Lock down Table T030• Once you are productive, transport T030 manually• Make use of the simulation tool in OMWB• Avoid using the MM Account Determination Wizard

after go-live

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Your Turn!

Questions?

How to contact me:[email protected]

Documents

FIN2008 Gunawardena MM FI Integration V00-2