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SAP Integration FI MM SD PDF
SAP Integration FI MM SD PDF
Prepared By:
Ms.Pramila Nagaraj
First Class MBA Finance Graduate (2009-10)
Global Academy of Technology, Bangalore (VTU- Belgaum)
Trained up in SAP FICO @ SAPTAC Bangalore (FRESHER)
Overview
Procure to Pay
– Vendor Master
– Material Master
– Account Assignment
– Automatic account determination for goods movement (goods receipt, goods issue,
transfer)
• Valuation Class: determine G/L accounts which needs to be updated for goods movement
– For example, what the purchase order is raised for, e.g., asset, non-stock, services
– Nature of the account assignment (cost object), e.g., cost centre, sales order, project
– Example:
Goods Receipt
Dr. Material
Cr. GR/IR
Goods Receipt
Dr. Asset
Cr. GR/IR
– For example, what the purchase order is raised for, such as asset, non-stock,
services
– Nature of the account assignment, for example, cost center, sales order, project
– Example:
Goods Receipt
Dr. Material
Cr. GR/IR
Goods Receipt
Dr. Asset
Cr. GR/IR
– Account determination has been configured for movement type and valuation
class
• For example, Movement Type 101 (goods receipt) for valuation class 7900
is debited to stock account 304000
• If the Purchase Order is set with goods receipt, invoice verification is a 3-way matching (e.g.,
quantity from the goods receipt and price/invoice amount from the PO)
• Purchase Orders can be drilled into from FI invoice and vice versa
• Go to PO History
We can determine when the checking is done: order, delivery, goods issued, etc.
• System checks customer outstanding balance against the credit limit allowed before a
sales order can be saved
Condition Type determines items included in the Sales Order, for example, material price,
tax, discount, etc.
Account key and other parameters determine GL accounts for automatic posting during A/R
invoicing
• This profit centre will be taken to Sales Order and then to A/R invoice generated from the
Sales Order
• When a billing document is created, the system automatically creates all relevant
accounting documents
Billing/Invoicing (2 of 3)
• The system assigns the costs and revenues to different CO account assignment objects like:
• Cost centres
• Business processes
• Projects or orders
• All relevant accounts in FI are managed in CO as cost elements or revenue elements, which
enables one to compare and reconcile values from CO and FI
– FI document
– CO document
1. Determination of Requirements
In this step, there is a requirement of material or service, which must be procured externally, from
the user. The requirement must be recorded as Purchase Requisition (PR) document in SAP MM.
Purchase Requisition (PR) is an internal purchasing document in SAP ERP that is used to give
notification to responsible department about the requirement of material/service and to keep
track of such requirement.
After the PR has been created in the previous step, the responsible department must process it.
The buyer of the procurement department must determine the possible sources of supply of the
material/service specified in the PR.
3. Vendor Selection
If in the previous step, there are some outline agreements or info record documents that can be
used as references to create a PO, the buyer can select or choose which vendor that will be
appointed to provide the material/service at this time.
In the previous step, the buyer has selected the vendor which will provide the material/service
needed in PR. In this step, the buyer creates a Purchase Order (PO) based on the PR and the
reference document (that can be an outline agreement, an info record, or a quotation).
5. PO Monitoring
After the PO has been sent to the vendor, the buyer has the responsibility to monitor whether the
vendor delivers the material/service at the right time on the right place.
6. Goods Receipt
When the vendor delivers the material or perform the service, the responsible person of the
company must perform the goods receipt (GR) or service acceptance (SA) transaction. The GR/SA
will update the PO history.
7. Invoice Verification
After the vendor delivered the material/service, it will send the invoice to the person responsible
in the company. Invoice is a formal document issued by a vendor to the company to request the
payment for the material or service that the vendor has already provide to the company according
to the terms of payment agreed in the PO.
8. Payment Processing
After the Invoice Receipt (IR) transaction has been posted, the vendor’s account payable will
increase and the company must process the payment to that vendor as stated in the terms of
payment of the PO. The payment transaction will be performed in FI module. After the payment
has been posted, the vendor’s account payable will be debited and the cash or bank account will
be credited.
SAP MM stands for Materials Management and this is part of SAP Logistics includes:
1. Requisitions
2. Purchase orders
3. Goods receipts
4. Accounts payable
5. Inventory management
6. BOM’s
7. Master raw materials, finished goods etc
1. It’s all about selling goods & distributing them to relevant parties and gets the payments
for relevant parties.
2. Helps to optimize all the tasks and activities carried out in sales, delivery and billing.
3. Key elements are: pre-sales support, inquiry processing, quotation processing, sales order
processing, and delivery processing, billing and sales information system.
4. SAP SD application components fulfills many of the international requirements that
supports the sales and distribution activities with functions such as pricing and conditions,
customer order processing, delivery monitoring, billing, credit and risk management.
5. The SAP sales and distribution is part of the logistics module that support your customers,
starting from quotations, sales order and all the way towards billing the customer.
6. It is tightly integrated with the MM and PP functional modules. It allows companies to
input their customer sales price, check for open orders and forecast etc.
1. Pricing
2. Availability Check
3. Credit Management
4. Material Determination
5. Output Determination
6. Text Processing
SAP SD stands for Sales and Distribution and this is the module which is used to manage customer-
focused activities, from selling to delivery, including -
1. RFQ
2. Sales orders
3. Pricing
4. Picking (and other warehouse processes)
5. Packing
6. Shipping
1. A customer orders some items from your company by creating a sales order
2. Your company decides to deliver the items ordered by the customer.
3. This is recorded by creating a outbound delivery document
4. Once the items are available for sending to the customer, you post goods issue which
reduces your inventory and puts the delivery in transit. This will create a material
document.
5. You will post goods but the material document created will be stored in tables.
6. You will then create shipment document to actually ship the items.
7. You finally create a sales billing document.
8. This will have a corresponding accounting document created that will be in different
tables.
9. When customer pays to your invoice, it will directly hit your AR account in FI.