SAP MM Automatic Account Determination

There are many transactions in Material Management (MM) that relevant for Accounting. These transactions must be recorded 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 at Accounting 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 account numbers that are involved in the accounting journal. By doing so, we can minimize the inputs and error possibilities made by MM end-users who perform the transactions as they don’t 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 code We 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 its relation with MM module at SAP FICO minimal configuration for MM posting. SAP R/3 determines the chart of account affected by MM transaction from the company code or plant entered by user when performs a transaction.We must define the automatic account determination individually for each chart of accounts.

Valuation grouping code of the valuation area See Material Valuation to know more about valuation area. The Valuation grouping code is a key to differentiate account determination by valuation area within a chart of account. Valuation grouping code is also called Valuation modification. SAP screenshots of How to activate the valuation grouping code(T-code: SPRO/OMWM): SPRO menu: IMG - Materials Management-Valuation and Account Assignment - Account

All rights reserved A valuation grouping code consists of a group of valuation areas that can have same account determination in a specific chart of account. If we activate the valuation grouping code in configuration process. All rights reserved . The above image is © SAP AG 2010.Account Determination Without Wizard . SAP Screenshots of How to define valuation grouping code (T-code: SPRO/OMWD): SPRO menu: IMG .Group Together Valuation Areas.Determination .Account Determination Without Wizard-Define Valuation Control • The above image is © SAP AG 2010. It is a tool that enables us to configure the automatic account determination with a minimum of effort.Materials Management-Valuation and Account Assignment Account Determination . we have to assign a valuation grouping code to each valuation area.

• Valuation class of material The valuation class is a key to differentiate account determination by materials. 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). SAP R/3 determines the valuation area and the valuation grouping code affected by MM transaction from the company code or plant entered by user when performs a transaction. More than one valuation class can be allowed for a material type. . The valuation class must be entered in the accounting data view of material master data for a valuated-material. If we don’t want to differentiate account determination according to valuation classes we don’t have to maintain a valuation class for a transaction. More than one material type can be allowed for a valuation class. we don’t have to configure account determination for each valuation area (that is a plant or company code) if we don’t want to differentiate it for each valuation area.By activating and using the valuation grouping code. The account category reference is a compilation of valuation classes. For example. By doing so. It applies to all valuation areas which are assigned to this valuation grouping code. For example. no need for five valuation areas (plants). The allowed valuation classes for a material depend on its material type. The relationship between valuation classes and material types is established by the account category reference. A material type is assigned to only one account category reference. If we want the automatic account determination within a chart of accounts runs differently for valuation areas. We can do this by assigning different valuation classes to the raw material and finishedproduct and by assigning different G/L accounts to the posting transaction for every valuation class. we can assign a valuation grouping code for the group of two plants and another valuation grouping code for the group of other three plants. we just have to configure the account determination for the two valuation grouping codes. 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 must define the automatic account determination individually for every valuation grouping code within a chart of accounts. we can assign different valuation grouping codes to these valuation areas.

Account Determination Without Wizard-Define Valuation Classes. The above image is © SAP AG 2010.Materials Management-Valuation and Account Assignment Account Determination . All rights reserved .SAP screenshots of How to define valuation classes (T-code: SPRO/OMSK) SPRO menu: IMG .

The above image is © SAP AG 2010. All rights reserved . All rights reserved The above image is © SAP AG 2010. All rights reserved The above image is © SAP AG 2010.

. These contain keys for the relevant posting transaction (for example. Posting transactions are predefined for those inventory management and invoice verification transactions relevant to accounting.The above image is © SAP AG 2010. For example. All rights reserved The above image is © SAP AG 2010. All rights reserved • Transaction/event key (internal processing key) The Transaction/event key is a key to differentiate account determination by business transaction. inventory posting and consumption posting) instead of actual G/L account numbers. are assigned to each relevant movement type in inventory management and each transaction in invoice verification. we must differentiate G/L account posted by goods receipt transaction and posted by invoice receipt transaction. Posting records. which are generalized in the value string.

scrapping. we can also have different accounts for consignment liabilities and pipeline liabilities. If we wish to post price differences to different price difference accounts in the case of goods receipts for purchase orders. You can see list of account grouping here. Account grouping is also called general modification.We do not have to define these transaction keys. goods receipts for orders. which are assigned to different accounts (for example. You can see list of transaction key here. Since the posting transaction "Offsetting entry for inventory posting" is used for different transactions (for example. Under the posting transaction "Offsetting entry for inventory posting". that is. they are determined automatically from the transaction (invoice verification) or the movement type (inventory management). since the SAP R/3 System automatically finds the accounts to which postings are to be made using the influence factors as explain above. scrapping. Using the account grouping. the user does not have to enter a G/L account. it is necessary to divide the posting transaction according to a further key: account grouping code. All we have to do is assign the relevant G/L account to each posting transaction. SAP Screenshots of how to configure automatic posting (T-code: SPRO/OBYC): . When entering the goods movement. consumption account. assign G/L accounts. expense/income from inventory differences). and price differences) Account grouping is a key that allows us to subdivide number assignments for each transaction key in account determination. consignment liabilities. Configure Automatic Postings Automatic Postings are postings made to G/L accounts automatically in the case of Invoice Verification and Inventory Management transactions relevant to Financial and Cost Accounting. we can define different account grouping codes for the transaction key. we must assign G/L accounts for every account grouping. • Account grouping(only for transaction: offsetting entries. physical inventory). goods issue. or other movements. An account grouping is assigned to each movement type in inventory management which uses the posting transaction "Offsetting entry for inventory posting".

The above image is © SAP AG 2010.• Posting made in the case of goods receipt (GR) to purchase order (PO): Inventory account 500 GR/IR Clearing Account 500 We need to update the BSX transaction key (Inventory posting) with the GL code Inventory account.Account Determination Without Wizard .Materials Management-Valuation and Account Assignment . then enter the G/L account affected by the transaction as below: .Account Determination .Configure Automatic Posting. All rights reserved The above image is © SAP AG 2010. SPRO menu: IMG . All rights reserved Enter Chart of Account which we want to configure its account determination.

All rights reserved Enter Chart of Account which we want to configure its account determination. All rights reserved . then enter the G/L account affected by the transaction as below: The above image is © SAP AG 2010. The above image is © SAP AG 2010.The above image is © SAP AG 2010. All rights reserved We also need to update the WRX transaction key with the GL code GR/IR Clearing account.

Now. The above image is © SAP AG 2010. All rights reserved . GBB key is used for various offsetting posting entries. we have to configure transaction key GBB. In this case we need to update general modification VBR with the material consumption expense account.• posting made in the case of goods issue to cost center: Inventory account 500 Material consumption expense account 500 We have configured the inventory posting transaction in the previous section (GR to PO). Within GBB transaction there are various account grouping (general modification).

Enter Chart of Account which we want to configure its account determination. All rights reserved What's Next? See all articles list at TABLE OF CONTENTS Can't find what you're looking for? Try search here: Top of Form partner-pub-8205 ISO-8859-1 Bottom of Form Search Posted by Rizki Share your opinions or suggestions by posting a comment below..07 Labels: 0170-MM-FICO: Automatic Account Determination 13 comments: Yuvi said.12.. Posted by Rizki at 16. . then enter the G/L account affected by the transaction as below: The above image is © SAP AG 2010.

The Valuation Class is on the part number. Right? In all screen shots shown connecting the three/four attributes above with a GL account do not include the Account Category Reference. The Transaction/Event key and the Account Grouping are connected to the Business Transaction type..This is Gr8 Document who ever created it!! Thanks a Lot September 18. Appreciate the effort especially in connecting Valuation Class. ." What is the role of ACR in account determination? January 19. The Valuation grouping code is an attribute of the Valuation area e. It is an attribute of the product..g. quote "The relationship between valuation classes and material types is established by the account category reference. Valuation Grouping Code (Valuation Modification) and Account Grouping (where applicable).. Right? 2. a plant or a warehouse.. which is part of the inventory movement transaction. Right? 3. I have one question though (at the end of the following restatements) 1. 2008 10:56 PM mk said. 2009 11:37 PM Anonymous said.

They would like to keep the moving average and inventory updated. I think the A/c Cat. is only used to establish many to many relationship between Material Types and Valuation Classes.Ref. audits.. Great blog. you can post a goods receipt to expense account by choosing "K" in "account assignment" field of the Purchase Order (PO). Yes. Is this possible? Your comments will be appreciated.Class ax ay az bx by bz .. March 11.Thanks for sharing this.. Thanks! March 11.typeVal. You can read this post to know more about it. etc. 2009 7:41 AM Anonymous said. 2009 2:29 AM a Blogger said.Consider the following example: Mat.) but want to book straight to expense account. I have a question: Do you know whether SAP can be configured to post to expense account rather than balance sheet account at goods receipt/issue? Some organizations with minimal inventories of certain items do not want to account the inventory (due to cost of physical inventory..

Not only that we are using more number of lines but also it is difficult to understand.. 2009 1:58 AM Anonymous said. Moreover. it is against normalization rules of DataBase management bcoz they creatredundent data. 2009 5:09 AM . Further to my post on Mar-24-09 I wld like to add that in tcode OMSK ACRef is assigned to Val. 3-bs. regards Anoopjeet. classes as above. I feel I should be right. if we assign mat.types. Is this possible? May 11..cx cy cz this way we are is using 3-as.classes and mat.types to val. 3-cs as also 3-xs. I understand using K and I read the details.classes and then ACRef is assigned to Mat. March 25. my questions is.If I want to maintain the inventory and post the purchase cost of the inventory to balance sheet a/c.Types thus creating relationship among val. 3-ys and 3-zs.. Thanks you for your response to my March 11 comment regarding posting to expense accout. regards Anoopjeet March 25. 2009 10:52 PM Anonymous said.. However.

June 7....Anonymous said... 2010 1:34 PM Anonymous said.. Thanks for the material... Nureya November 21.. Really nice and well documented... 2010 2:39 AM . Regards sidhartha September 8.. Commendable Work. Thanks a ton for this commendable effort.Simpleexplaination with Screenshots...Very good and quick reference for a quick interview review. reallythanx for this study material. 2010 4:16 PM Anonymous said. September 18..Nicely explained.. Very Good Document... 2010 1:51 AM Anonymous said..

Super document .. 2011 6:34 AM . however I have a problem ? Created a new plant and want to assign ValGrpgCode nut my new plant does not appear in the view list for me to assign ValGrpgCode.. 2010 11:02 PM Anonymous said. February 26. it is created at CoCo level.... Where can i had my plant/valuation area so it is listed in the OMWD view. i did not understand offsetting entries. very nice explained..Anonymous said. would you please give a real time example for this. December 22.