SAP MM Interview Questions and Answers by B G Basetty & Rajendra G

AUTOMATIC ACCOUNT DETERMINATION

1. What are GBB, BSX, WRX, PRD, and KOM?

A: GBB: Offsetting entry for inventory posting

The offsetting entry for inventory posting is used in Inventory Management. The
account assignments depend on the account grouping that is assigned to each
movement type. In the standard configuration, the account groupings below have
already been defined:
• AUF: for goods receipts for production orders with account assignment
• BSA: for initial entries of stock balance
• INV: for expenditure/income from inventory differences
• VAX: for goods issues for sales orders without account assignment
object
• VAY: for goods issues for sales orders with account assignment object
• VBO: for consumptions from stock of material provided to vendor
• VBR: for internal goods issues (e.g. for cost center)
• VNG: for scrapping/destruction
• VQP: for withdrawal of samples
• ZOB: for goods receipts without purchase orders
• ZOF: for goods receipts without production orders
You can also define your own account groupings. For example, if you want to
post goods issues for cost centers (movement type 201) and goods issues for
orders (mvt type 261) to separate consumption accounts, you can assign account
grouping ZZZ to movement type 201 and account grouping YYY to movement
type 261.

BSX: Inventory posting

This transaction is used for all postings to stock accounts.
These postings are carried out:
• In Inventory Management for goods receipts into and for goods issues
from a company's own stock.
• In Invoice Verification, if there are price differences for materials with
moving average price control when the invoice is received and there is
sufficient stock coverage.
As the account assignment for this transaction depends on the valuation class, you
can manage materials with different valuation classes in separate stock accounts.

WRX: GR/IR clearing

Postings to the GR/IR clearing account result from goods receipts and invoice
receipts for purchase orders. For more information on the GR/IR clearing account,
refer to the MM guide - Material Valuation.

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PRD: Price differences

Price differences result for materials with standard price control for all
movements and invoices that are valuated at a different price from the standard
price.
Examples:
• Goods receipts for purchase orders, if the purchase order price is
different from the standard price,
• Goods issues for which an external amount is entered,
• Invoices, if the invoice price is different from the purchase order price.
Price differences can also result for invoices for materials with moving average
price control, if the invoice price differs from the purchase order price and there is
insufficient stock coverage for the quantity invoiced.
Depending on how the posting rules for the transaction key PRD are configured,
you can work with or without an account grouping. If you work with an account
grouping, the following account groupings are used in the standard system:
• None for goods receipts and invoice receipts for purchase orders
• PRF for goods receipts for production orders
• PRA for goods issues and other movements

KON: Consignment liabilities

Consignment liabilities arise in the case of withdrawals from consignment stock
or from a pipeline or when consignment stock is transferred to own stock.
Depending on the settings for the posting rules for the transaction/event key
KON, it is possible to work with or without account modification. If you work
with account modification, the following modifications are available in the
standard system:
• None for consignment liabilities
• PIP for pipeline liabilities

2. Define item category and account assignment category?

A: Item category: It defines how the procurement of a material or service item is

controlled. The item category determines the field selection and whether any
additional data screens are shown. In addition, it determines whether a goods
receipt or invoice receipt is to follow.
Account Assignment Category: It specifies whether accounting for an item is to
be effected via an auxiliary account. The account assignment category determines
which account assignment data (such as cost center, account number and so on) is
necessary for the item.

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3. What is valuation class? What is its role in valuation?

A: Valuation class is an assignment of a material to a group of G/L accounts.

With other factors, the valuation class determines the G/L accounts that are
updated as a result of a valuation-relevant transaction or event such as a goods
movement.
The valuation class makes it possible to:
• Post the stock values of materials of the same material type to different
G/L accounts.
• Post the stock values of materials of different material types to the same
G/L account.

4. What is the transaction event key for inventory posting?

A: The transaction event key is an internal processing key which facilitates automatic
account determination. The transaction keys are used to determine accounts and
posting keys for line items which are created automatically by the system.

5. What are the different rules based on which accounts are determined in
automatic postings?

A: The followings are the different rules based on which accounts are determined in
automatic postings:
• Debit/Credit
• Valuation Modifier
• Valuation Class
• General Modification
• Depreciation Area

6. What are the steps in automatic account assignment configuration?

A: The steps involved in the configuration of automatic account assignment:

1. Define Valuation Control: For account determination, you can group together
valuation areas by activating the valuation grouping code. This makes the
configuration of automatic postings much easier. In this step you are going to
set the valuation grouping code active.
2. Group Together Valuation Areas: In this step, you assign valuation areas to a
valuation grouping code. The valuation grouping code makes it easier to set
automatic account determination. Within the chart of accounts , you assign the
same valuation grouping code to the valuation areas you want to assign to the
same account.
Valuation grouping codes either reflect a fine distinction within a chart of
accounts or they correspond to a chart of accounts.
Within a chart of accounts, you can use the valuation grouping code

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• To define individual account determination for certain valuation areas

(Company codes or Plants)
• To define common account determination for several valuation areas
(Company codes or Plants)
Requirements
• You must have activated the valuation grouping code in the step Define
valuation control.
• You must have defined the valuation level in corporate structure
Customizing.
You must have assigned each plant to a company code in "Corporate
structure" Customizing. When assigning your plants, the valuation areas are
defined automatically.
3. Define Valuation Classes: In this step, you define which valuation classes are
allowed for a material type.
If a user creates a material, he must enter the material's valuation class in the
accounting data. The R/3 System uses your default settings to check whether
the valuation class is allowed for the material type.
The valuation class is a group of materials with the same account
determination. If a transaction is to be posted to different accounts depending
on the valuation class, create an account determination for each valuation
class in the step “Create automatic postings”.
The valuation classes allowed depend on the material type. Several valuation
classes are generally allowed for one material type. A valuation class can also
be allowed for several material types.
The link between the valuation classes and the material types is set up via the
“account category reference”.
The account category reference is a combination of valuation classes.
Precisely one account category reference is assigned to a material type.
Requirements:
• You must have defined your material types.
• You must have defined the chart of accounts.
• You must have agreed with Financial Accounting which materials are
assigned to which accounts.
4. Define Account Grouping for Movement Types: Using this function, you can
assign an account grouping to movement types. The account grouping is a
finer subdivision of the transaction/event keys for the account determination.
The account grouping is provided for the following transactions:
• GBB (offsetting entry for inventory posting)
• PRD (price differences)
• KON (consignment liabilities)
The account grouping in the standard system is only active for transaction key
GBB (offsetting entry for inventory posting).

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5. Configure Automatic Posting: In this step, you enter the system settings for
Inventory Management and Invoice Verification transactions for automatic
postings to G/L accounts.
You can then check your settings using a simulation function.

7. What are valuation area, valuation category and valuation class?

A: Valuation Area: It is an organizational level at which material valuation is carried

out.
Valuation Category: Criterion for the separate valuation of different stocks of a
material managed under one material number.
Valuation Class: Valuation class is an assignment of material to a group of G/L
accounts.

8. What do you mean by valuation class and what does it control?

A: Refer answer for the Q.No: 6

9. What is account category reference? Definitions?

A: Account Category Reference: It is a group of valuation classes for the purpose of

automatic account determination. The system uses account category reference to
check whether the valuation class you have entered is allowed when you maintain
accounting data in a material master record.

10. How does G/L account identified for a material type?

A: G/L account for a material type is identified through Valuation Class and
Movement type.

11. What are other parameters available for account determination?

A: The following parameters are available for account determination:

• Chart of accounts of the company code
• Valuation grouping code of the valuation area
• Transaction/event key
• Account grouping
• Valuation class of material or valuation type in case of split valuation.

12. What is chart of account? Why it is required? What is transaction key?

Explain about all parameters in account determination?

A: Chart of account is a classification for rendering of values or value flows to

ensure correct rendering of accounting data.

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Chart of account is used as a key for account determination, to enable a

differentiation for the purpose of G/L account assignment.

13. What is transaction key and account modifier for movement type 201?

A: Transaction keys for movement type 201: GBB, KON, and PRD.
Account modifiers for movement type 201: VBR, PRA and PIP

14. What is the relevance of account category reference in pricing?

A: Refer answer for the Q.No: 12

15. What is the purpose of account grouping code?

A: The account grouping is a finer subdivision of the transaction/event keys for the
account determination.
Since the posting transaction "Offsetting entry for inventory posting" is used for
different transactions (for example, goods issue, scrapping, physical inventory),
which are assigned to different accounts (for example, consumption account,
scrapping, and expense/income from inventory differences), it is necessary to
divide the posting transaction according to a further key: account grouping code.
An account grouping is assigned to each movement type in inventory
management which uses the posting transaction "Offsetting entry for inventory
posting".
Under the posting transaction "Offsetting entry for inventory posting", you must
assign G/L accounts for every account grouping, that is, assign G/L accounts.
If you wish to post price differences to different price difference accounts in the
case of goods receipts for purchase orders, goods receipts for orders, or other
movements, you can define different account grouping codes for the transaction
key.
Using the account grouping, you can also have different accounts for consignment
liabilities and pipeline liabilities.

16. Can you assign more than one valuation class to a single material master
record?

A: No

17. Can one material type have many account category references?

A: No you cannot have more than one account category reference for one material
type

18. What is a valuation class? How is it used?

A: Refer answer for the Q.No: 6

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19. Under which circumstances is a posting made to a price difference account

when a goods receipt for purchase order is posted to stock?

A: The price difference account is fired in the following cases:

• In case of material with standard price, the valuation of initially entered
inventory data will be based on this standard price. If you have entered a
different price other than this standard price in PO, this difference is
posted to price difference account at GR.
• In case of material with moving average price, if you have entered a
different price for an item in PO other than the moving average price of
that item and also if there is no sufficient stock coverage then the price
difference account is fired.

20. What is the relevance of account modifier in IM postings? Name some

account modifiers?

A: An account modifier is a key which is used to differentiate account determination.

21. Explain step by step procedure for configuring automatic account

determination?

A: Refer answer for the Q.No: 9

22. Define valuation category and valuation type? Explain the step by step
procedure for creating a split valuated material master?

A: Valuation Category: Criterion for the separate valuation of different stocks of a

material managed under one material number.
Valuation Type: The valuation type specifies the individual characteristics of the
valuation category. It identifies the stock of the material that are subjected to split
valuation.

23. What is the relevance of transaction/event keys in account determination?

Explain?

A: The transaction keys are used to determine accounts and posting keys for line
items which are created automatically by the system.

24. Where do you create account assignment categories for purchasing? What is
the control data for account assignment category?

A: Account assignment categories for purchasing are created in the following IMG
setting:
IMG → Materials Management → Purchasing → Account Assignment →
Maintain Account Assignment Categories.

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Control data for account assignment category:

• Account assignment category indicates whether an item is to be assigned
to an auxiliary account (such as a cost center).
• The account assignment category determines which account assignment
details are required for the item (for example, cost center or account
number).

25. Where do you establish a relation between Item category and Account
assignment category? Mention the navigation?

A: you can establish a relation between Item category and Account assignment
category in IMG settings.
Navigation:
IMG → Materials Management → Purchasing → Account Assignment →
Define Combination of Item Categories/Account Assignment Categories

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