Fundamentals of MM-FI Account

Determination
 Several colleagues have asked me questions about the integration
between Materials Management (MM) and Financial Accounting (FI)
modules:
- How do postings flow from MM into FI?
- How do we find out what occurs behind-the-scenes?
- How do we identify which movement types are pointing to a specific GL
Account?
- How do you change the posting to a different General Ledger (GL)
Account?
- How do you create a new movement type and assign it to a specific GL
Account?
Many SAP practitioners – IT and business alike – are in a similar situation
and do not know where to start MM-FI data flow and reconciliation. This
blog clarifies the fundamentals of MM-FI account determination.
Configuration transaction OBYC forms the core of SAP’s integration
between the MM, FI, and Controlling (CO) modules in a traditional SAP ERP
system
Transaction keys are used to determine general ledger accounts used by
the system.
Account modifier is used to differentiate account determinations,
depending on the procedure.
Transaction and account modifiers are a logical grouping similar types of
transactions. The transaction-account modifier, along with the valuation
class, drives the accounting entries. Transaction keys are predefined in
the SAP system and cannot be changed.
 Figure 1: OBYC Setup for BSX – Inventory Posting
You may have seen an accounting entry at the time of the purchase of raw
material as a debit to inventory and credit GR/IR. The configuration setup
of transaction BSX (inventory posting) is responsible for the inventory
posting (see Figure 1), and WRX (GR/IR clearing account) is responsible for
GR/IR posting. When movement type 101 is used to record the goods
receipt of raw material (valuation class 3000) for a purchase order, the
system looks up the GL Account for transaction BSX and WRX for valuation
class 3000 and records it in the accounting document.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Figure 2: OBYC Setup for GBB-VBR – Consumption to Order
Similarly, when raw material is consumed using movement type 261, the
system looks up transaction GBB (offsetting entry for inventory posting)
for account modifier VBR (consumption for internal goods issues), and
that reflects the GL Account in the accounting document (see Figure 2)
Figure 3 provides a summary of few important movement types and
accounting entries. Business process is listed in the column furthest to the
left, with movement type in the next column, and the debit and credit
posting in the subsequent columns.
There is a column for transaction and account modifiers; as we noted
earlier, these are SAP’s terms for logically grouping similar types of
transactions. The transaction account modifier, along with the valuation
class, drives the accounting entries.
The OBYC MM-FI account determination configuration is set up at the time
of original implementation, and once set up, these accounts are derived
behind the scenes. You’ll want to test the setup before going live to ensure
that the correct accounts are being hit for the respective transactions. You
can change this configuration after go-live, but the revised setup needs to
be thoroughly tested. Otherwise, we may run the risk of impacting regular
operations.
Figure 3: Summary of select movement types and accounting entries
Key take-aways:
- Transaction-account modifier and valuation class drive the accounting
entries
- Transaction key: determines general ledger accounts for posting
- Account modifier: differentiates account determination based on
procedure
- OBYC MM-FI Account determination setup is stored in underlying table
T030
- OMJJ Movement Type setup is stored in underlying table T156X
- Combine these two tables (via SQ00 query, or simply on Excel)
- The account modifier links the Movement Type to the Accounting entries
I hope this write-up was useful and explained the fundamentals to you.