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

Rohana Gunawardena Exium
© 2008 Wellesley Information Services. All rights reserved.

What We¶ll Cover «
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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
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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.)
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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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What We¶ll Cover «
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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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Account Determination: What Drives It? ‡ The key criteria driving General Ledger (G/L) account determination are:     Material type Material valuation class Plant Movement type 6 .

whether it¶s relevant for FI posting Use transaction OMS2 to set the material type: 7 .Account Determination: Material Type ‡ ‡ Material Type defines whether a material is subject to value updating. i.e..

the material is assigned a valuation class: 8 .Account Determination: Material Valuation Class ‡ In the Accounting and/or Costing view of the material master.

) ‡ Define valuation classes with transaction OMSK ‡ ‡ First. define an account category reference A valuation class is created and assigned to an account category reference 9 .Account Determination: Material Valuation Class (cont.

but many valuation classes 10 .) ‡ Many valuation classes can belong to a single account category reference ‡ A material type has a single account category reference.Account Determination: Material Valuation Class (cont.

and job costing to be used in the future 11 . CO-PC.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.

use transaction OMWM 12 . but recommended.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.

drives the value string Movement Type Value Update Indicator Quantity Update Indicator Special Stock Indicator Movement Indicator Receipt Indicator Indicator for Consumption Posting Value String 13 . together with other fields.Account Determination: Movement Type ‡ Material Movement Type.

g. or Sales Order. Project. 14 . Production Order. 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.Account Determination: Valuation String ‡ ‡ ‡ ‡ ‡ ‡ ‡ Movement type: Three-digit code. Asset.. e. STO. Indicator for consumption posting: Cost Center.

Account Determination: Valuation String (cont.) ‡ Valuation string is assigned in transaction OMJJ (³Update control/WM movement types´ view) ‡ Do not change for standard movement types Warning 15 .

Value String Assignments (cont.) ‡ Non valuated movement type by process has no value string even for valuated materials 16 .

Account Determination: Transaction Key (cont. 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 17 .) ‡ ‡ ‡ ‡ ‡ ‡ 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 transactionWar i Transaction keys define debit and credit postings There are many transaction keys.

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 18 .

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 19 .

no drop down list 20 .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.

) ‡ The following fields define the selection of the account modifier for transaction key GBB: Movement Type Special Stock Indicator Value Update Indicator Quantity Stock Indicator Movement Indicator Indicator for Consumption Posting Value String Account Modifier 21 .Account Determination: GBB ± Offsetting Entry for Inventory (Stock) (cont.

. for individual PO) 22 .g. for individual PO) Project account assignment (e. for cost center) Sales Order account assignment (e..g.GBB ± Common Account Modifiers ‡ ‡ AUA AUF BSA VAX VAY VBO vendor VBR VKA VKP ‡ ‡ ‡ ‡ ‡ ‡ ‡ Order settlement GRs for orders (without account assignment) and for order settlement when AUA is not maintained Initial entry of stock balances Goods issues for Sales Orders with no assignment object Goods issues for Sales Orders with account assignment object Consumption from stock provided to Internal goods issues (e.g..

open item management Older documentation mentions WRY for the material ledger.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. this is no longer used GOTCHA! 23 .

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 24 .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.

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 25 .

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 26 .

Table T030 IMG ‡ The IMG location in MM often results in FI teams ignoring this area 27 .

This code is used to group together different plants to avoid repeating the same configuration. Set of values predefined by SAP. Preset three character codes that represent different types of business transactions. The G/L account selected for credit postings. A set of values used to segregate different materials. The G/L account selected for debit postings. An additional field to allow more detailed account determination than by transaction key alone. 28 .Table T030: Fields Field Chart of Accounts Transaction Key Valuation Grouping OMWD Code Account Modifier Valuation Class Debit G/L Account Credit G/L Account OMWN OMSK FS01 FS01 Update Comments OB13 The chart of accounts used by the company code.

Table T030: Key Field Drivers Plant Valuation Area Other Factors Valuation Area Other Factors Xaction Key Company Code Value String Chart of Accounts Transaction Key Valuation Group Account Modifier Valuation Class 29 Movement Type Plant Movement Type Material .

Table T030: Updating ‡ Upon entering transaction OMWB. 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 30 . you will see many warning pop-ups.

Table T030: Updating (cont.) ‡ Press the Account assignment button Double-click on the transaction key ‡ ‡ Enter your Chart of Accounts 31 .

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 32 .

Table T030: Updating (cont. use SE16 as this allows many transaction keys to be displayed at once and all table fields can be displayed 33 .) ‡ When reviewing T030 entries or searching for G/L accounts.

Material. and Special Stock Indicator to display G/L accounts 34 .Table T030: Testing ‡ Press the simulation button of OMWB ‡ Enter a Plant. Movement Type.

Table T030: Testing (cont.) 35 .

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 36 .

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 37 .

processing SAP does not transport T030 by row. use manual configuration Solution For high volumes. and overwrite valid configuration For low volumes.. including test values.g. as a result of OMBW. 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 38 .. but rather by transaction key (e. BSX) It is easy to move too many rows in a transport. e. go-live.g. review all entries for the transaction keys to be transported.Transporting Table T030 ‡ ‡ ‡ ‡ ‡ Unlike other tables.

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 39 .

and the G/L account is entered in the PO line item account assignment 40 . 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.FI-GL Impact of Goods Receipts ‡ ‡ ‡ For purchasing.

Goods Receipt (GR) Invoice Receipt (IR) Vendor Payment Stock Account 1.FI-GL Impact of Goods Receipts (cont. WRX 100 GR/IR Clearing 1. BSX 100 2. 3. 100 41 . 3.) 1. 100 100 3. 2. WRX 100 Vendor Cash Account 2.

FI-GL Impact of Goods Receipts (cont.) ‡ Goods Receipt ± WE ‡ Invoice Receipt ± RE  Use Goto -> Display as list. to show transaction code in ECC 42 .

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 43 .

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 44 .

) Sales order Delivery Sales and Distribution (SD) Billing Material account determination using table T030 chooses COS clearing account Revenue account determination allows sophisticated account selection PGI document Dr COS Clearing Cr Stock FI invoice Dr Customer Cr Revenue 45 .FI-GL Impact of Deliveries (cont.

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 46 .

651 Goods Delivery [GD] for returned material ‡ 47 . 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.FI-GL Impact of Material Movements ‡ ‡ It is possible for material movements unrelated to sales and purchases to occur ± e.g..g.

an FI document that debits and credits the same stock account is created  This is normal for plant transfers within a single company code.FI-GL Impact of Material Movements (cont. movement type 351 48 . e.g.) ‡ Often.

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 49 .

HALB. you may need more Set up material masters for the valuation classes/material types defined Extend the materials to all of the plants to be tested With the MM and SD team members. this provides flexibility for future configuration Activate valuation grouping codes. 3.Test Plan for FI-GL Postings of MM Data 1. define the movement types to be used 50 . 5. 6. this provides flexibility for future configuration Define valuation classes matching material types ROH. 4. and FERT. 2. Set up valuation area at the plant level.

10. perform the transactions Review the FI posting for each MM posting and adjust T030 as required Allow a month to complete this process for all transactions Record all results in a spreadsheet with plant. Make initial account entries in T030 For each material. 9. and movement type combination.Test Plan for FI-GL Postings of MM Data (cont. material type. 11. plant. movement type.) 7. 8. and G/L accounts 51 .

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 52 .

this should be FI-GL Ideally. otherwise the MM team could conceivably enter something. 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 53 .Configuration Ownership ‡ ‡ ‡ ‡ The FI team should take full ownership of the MM/FI configuration. just so they can complete their transactions If you have a large FI team.

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 54 .

VSAP.Resources: Information Sources ‡ Implementation Guide  Materials Management Œ Valuation and Account Assignment Œ Account Determination Œ Create automatic postings Œ Double-click on text to launch SAP Online IMG Help f The help text has a detailed list of the SAP transaction keys and account modifiers ‡ Solution Manager.doc 55 . ASAP  Implementation Assistant Œ Knowledge Corner Œ SAP Products Corner Œ R/3 Œ Procurement Œ Automatic Account Assignment (ZIP file) Œ AcctDeterm.

June 2005). ³Material Master History Tables: What Happens to Materials in Prior Periods?´ (SCM Expert. October 2004). August 2003). 56 . ³Segregating Internal and External Goods Receipts´ (SAPtips Magazine. ³Avoid a Disconnect Between Your MM and FI Period Closes´ (SAP Financials Expert. Rohana Gunawardena. Rohana Gunawardena.Resources: CD-ROM Material ‡ ‡ ‡ ‡ Rohana Gunawardena. April 2005). ³Are Your Stock Balances Correct?´ (SAP Financials Expert. Rohana Gunawardena.

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 57 .

com 58 .Your Turn! Questions? How to contact me: Rohana@Exium.