Below screen will appear. In total there are 9 columns out of which first 4 are simple to understand.

1. Application – Its should be V. V is sales and distribution. Very straight forward. For more option,
press F4 and check.
2. Condition Type – This isn’t an SD condition type. This is condition type for Usage and
Application. Don’t get confused this with SD condition type. Only 2 options will come as below.
There might be more and I am not aware.
 KOFI – Accnt Determination
 KOFK – Acct Determ.with CO
3. Chart of Account – This is Chart of account. Very simple to understand.
4. Sales organisation – This is nothing but our company code.

So, first 4 items are clear an pretty simple.

Next 3 columns are important. 5th 6th and 7th. This are SD values. Let’s see where its coming from Billing
document. If you relate this with Billing document, it will be easy to understand the concept.

Cust Account Assignment Group (AAGC – Column 5).

Column AAGC. Cust Account assignment group. Where does it comes from billing document? See below
screenshot.

Go to VF03. Give the billing document and press enter. Click on header data. If you see there are 5 tabs. It
means its header. Entry is highlighted. This goes to column 5. Here Text is given and in VKOA numbers
are given
AcctAssmtGrpmat (AAGM – Column 6)

Column 6 AcctAssmtGrpmat comes from below highlighted field. This comes from Line item. Here Text is
given and in VKOA numbers are given.
Account Key (Actky Column 7)

Account key is the 7th column. Where is it coming from? In Condition tab below, Click on analysis button.
Below screen will appear. Condition type is highlighted in yellow.

Go to V/08. Select above pricing procedure and click on control.

Below entries will be displayed. If you see column Acc., there are entries for ERL. This will come in
column 7.

In column 8 and 9 there are gl accounts. This gl accounts are provided by Finance team.

For column 8, gl is picked up and documents are posted. But for 9 its accrual and I am not aware of that.

Pointers
Journal Entries

How Journal entries are posted for SD flow? There are 2 types of Journal entries in SD flow.

 Cost of good sold Entries

 Sales order flow entry (This is already explained in above section).

Cost of good sold entries GL Determination.

Cost of good sold entries is as below :

– Cost of good sold account debit

-Inventory/Finished goods account Credit.

Now the question is from where does this GL and Its amount is picked from? It is very important to
understand this flow.

GL for Cost of good sold is picked up from OBYC. This is from FI-MM integration. Key is BSX. From
here inventory GL account is picked up.
GL for COGS is picked up from GBB Transaction key as shown below. General Modifier will be VAX

COGS Amount determination

Standard Price of Material is used to calculate the Amount. Unit/Quantity will be multiplied by Standard
Price and Amount is arrived. From where does this Standard Price is derived? See below screenshot.

Note: I am not sure if there is another price which is considered for COGS. If you have any information, do
share in comment section below.
Exercise

 Identify few Billing documents with Accounting document posted

 Begin the search from Billing document to VKOA.
 Try few documents and your Basic FI-SD integration concept will be Clear.
 Other table in VKOA are similar or with lesser value option.

Conclusion

Once you go through this blog, you will be able to understand the VKOA entries, SD flow and Finance
flow. Post this, you will be able to drill down to accounting entries posted through this integration.

I hope you liked the document, and this is helpful to you.

Regards

CA Zunaid Hingora

Other Blogs

LTMC Process L
Why choosing SAP Profile as a career could be best decision for anyone? h
d
Fiori App List /
FI – SD Integration – VKOA – Understanding Flow – SAP ECC h
IDOC Management – Mass Change – WLF_IDOC, Foreground Processing and other IDOC h
Activities.
SAP ‘ Z Process Re-Engineering’ – Enhance the productivity of the implemented solution h
s
S/4 Hana – House Bank, Bank Account and Account ID Overview h
o
AUC Automatic Creation from WBS – S/4 HANA h
S/4HANA Finance – New vs Old transaction code h
Profit Center – Assignment/Removal of Company code and Activation h
a
AS91 – Asset Master Upload h
Asset Reconciliation Account Posting ABF1L- No OAMK, OASV h
Mass Upload Functionality – SAP h
Data Migration Learning h
SAP Interface Development Process – Detailed Guide h
Fiori Apps Learning h
Screen Recordings S
B
SAP S/4HANA Finance – New Additions, Features and Functionality h
Automatic Idoc Generation while Creating Purchase Order, Nace Config – Material A
Management M
Transport of Copies – SAP T
Fiori vs LTMC vs ACDOCA – Benefits, Value addition Comparision F
Terms of Payment for Installment – SAP Finance T
SAP Project Knowledge Transfer Guide/Checklist (KT) S
Vendor Ageing Report V
SAP Important Tcodes S
LSMW Recording for Transaction Data – FB01 L
SAP FICO Data Migration – Global Execution, Planning and Approach S