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Automatic account determination Automatic determination

By Former Member , Jan 08, 2008
Sep 15, 2008 at 08:54 AM | 247 Views
Automatic account assignment
0 By Former Member , May 05, 2007

dfrnce in automatic account determination

Hi,
By Former Member , Apr 25, 2008
Please can annybody explain me the flow of account determination. How exactly the accounts are
Follow determined when posting is done. please explain which diff possibilities (Without mat number, through
mvt type e.t.c).
RSS Feed Thaks,

Anand K

MM (Materials Management)

5 Answers
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Former Member Sep 15, 2008 at 09:00 AM

Dear,
2 Well a lengthy explanatory answer to get, but go through the below:

Why do we need Automatic Account Determination?

Every time a transaction with !nancial implications is run, postings must be made to !nancial accounts. Iu2019m a logistics consultant,
so to be honest, I donu2019t care. But it has to happen, so since this is an integration point between us and FI, unless you can make the FI
consultant do it, we have to !ght through it.

We could let the user enter the GL account each time we post an invoice or goods receipt, but SAP is supposed to be a productivity tool,
so thatu2019s not really acceptable.

So, the idea is that the system will determine (based on our con!g) what account to post to depending on a number of factors, namely;
company code, valuation area (plant vs company code), material / material type, transaction or business event and movement type.

So, with !ve variables, the determination system must be pretty complex?

Yes. When you come to understand the way SAP have done it, it is an elegant solution, but it is pretty damn complex.

Before you begin, sit down with the FI consultant, !nd out what accounts there are and in a business sense, how and when each of the
accounts should be posted to. Discuss all !ve of the categories above. With this info set in concrete in front of you, you can begin the SAP
con!g.

Hereu2019s the lowdown, try and stay with me.

Essentially all that is happening is that SAP are allowing us to maintain a record of u201Cif x and y happen, then use account zu201D and
u201Cif a and b occur then use account qu201D.

I can just imagine the conversation many years ago in Germany (translated for your convenience):

u201COk, we need a table of possible outcomes for account determination.u201D

u201CThatu2019s faaarrr too easy. Letu2019s break it into !fty di"erent tables, come up with many interchangeable names for the same
thing, and hide the tables beneath several di"erent, unimaginable directory paths.u201D

Con!guration Steps

First up, since we have to do something !rst, letu2019s specify our valuation control. This is done via IMG > Materials Management >
Valuation and Account Assignment > Account Determination > Account Determination Without Wizard > De!ne Valuation Control.

All that weu2019re doing here is specifying whether the system should consider the valuation grouping code in itu2019s determination
procedures.

u201CWhatu2019s the valuation grouping code?u201D I hear you asking?

The valuation grouping code (vgc) is a collection of valuation areas that will have the same account determination. Since a valuation area
can be a company code or plant, we can say that a vgc represents a group of plants or company codes that have the same account
determination.

If you donu2019t use the valuation grouping code, youu2019ll have to set up account determination for each plant or company code in
SAP.

If youu2019re using the vgc, then jump into u201Cgroup together valuation areasu201D and assign your company codes or plant a code
(any code). They should be somewhere in the list automatically, all you should need to do is give them a code.

The next step is to manage di"erent account determination per material type. This is where it can get complicated if you let it.

The valuation class is linked to an account category reference. The account category reference (acr) is an arti!cial code which allows
#exibility in linking material types with valuation classes.

u201CHuh?u201D I hear you asking. Letu2019s consider the alternatives.

We could relate the GL account directly to the material type. This would be easy to setup for a few material types, but would take a huge
amount of time for many material types, and would be hard to understand if changes needed to be made.

We could use the valuation class, assign the GL account to it, and then assign valuation classes to material types. This is better, since we
could for instance have a u201CRaw Materialsu201D vc and a u201CFinished Materialsu201D vc and then simply link all the various
material types under each category to the valuation class. This would make updates and initial loads easier, but there is still one thing
missing, a material type can only be part of one valuation class and can only post to one account.

However, in the real world, a material type may post to di"erent accounts depending on things other than just the material type, such as
plant, movement type or indeed any of the factors above.

So, we have an account category reference which is linked to a material type. This acr is then linked with a valuation class and the GL
account is linked to the valuation class. So a material type can be linked to one or more valuation classes (and hence GL Accounts) and in
turn, a valuation class can be linked to multiple material types (enabling ease of understanding and updates).

Now that you (hopefully) understand that, the actual updates are pretty simple.

Go to transaction: IMG > Materials Management > Valuation and Account Assignment > Account Determination > Account Determination
Without Wizard > De!ne Valuation Classes and begin by de!ning your valuation classes. Then de!ne your account category references
and go back into your valuation classes and assign them (or you could do the acru2019s !rst). Then go into your material types and
assign your acru2019s to your material types and done! For the moment.

At this point we should consider another factor, the actual business event that is occurring and itu2019s e"ect on account determination.
This is another area where you have to try and see through the impenetrable fog of terminology.

Each time u201Csomethingu201D occurs in the system it produces a u201Ckeyu201D for each of the postings that need to be made (i.e.
debit and credit). This u201Ckeyu201D is entered in our account determination procedure so that postings for credit and debit go to
di"erent accounts. Simple aye?

Well when (as far as I understand) the u201Csomethingu201D can be called u2018transaction (key)u2019 or u2018event (key)u2019 and
the u201Ckeyu201D can be called u2018value stringu2019, u2018posting ruleu2019 or u2018posting string for valuesu2019 and the
column header in SAP for the u201Ckeyu201D says u201CTransu201D. Fun, fun, fun.

The combinations of movement type and u201Ckeysu201D and how they are determined are all internally programmed by SAP, so we
donu2019t really care. What we do care about is the account modi!er or u2018account grouping codeu2019.

This is the topic I spent the most time on, and Iu2019m still not completely clear, so donu2019t feel bad if youu2019re confused.

The account grouping code (aka account modi!cation code, modi!er or (in SAP) general modi!er) is a three character code (which rather
oddly has no link with the posting strings (u201Dkeyu201D)) which we use to break account determination down by movement type.

For example, by default in SAP, the system says for movement type 101 and posting key PRD there is no modi!cation. So the account
determination is not di"erent based on movement type. However, I can enter a code (e.g. AAA) against movement type 101 and posting
key PRD and code BBB against movement type 102 and PRD.

Then in u2018Con!gure Automatic Postingsu2019 when we go into posting key PRD, we will make entries for u2018general
modi!eru2019 AAA, account 100000 and BBB of 100001 (there will also need to be an entry for a u201Cblanku201D modi!er which
should cover all the other movement types).

So, make sense? Hopefully.

Now you need to go through and for each posting key that weu2019re concerned with, record each of the de!ning factors mentioned
above (you donu2019t need to enter them if youu2019re not using them) and enter a GL account for each permutation.

You should now !nd that your account determination is working. I wouldnu2019t put any money on that promise. My hope is that having
read this guide, youu2019re a little bit closer to having your account determination working, and that in conjunction with a number of
other resources youu2019ll get there eventually.

Meantime try to visit :

http://www.sap-hefte.de/download/dateien/1159/110_leseprobe.pdf

one more link to give you complete picture is here below:

http://help.sap.com/saphelp_46c/helpdata/en/12/1a39516e36d1118b3f0060b03ca329/content.htm

Regards,

Syed Hussain.

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1 Comment

Former Member Sep 15, 2008 at 09:10 AM

Thanks Syed, Thank you all for explaining.

Anand K

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Priyanka Paltanwale Sep 15, 2008 at 08:56 AM

hi,
1 In SAP every movement of goods is followed by one movement type and movement type trigged transaction event keys. G/L account
assignment and G/L account assigned to transaction event key in (OBYC).In Account Determination, we con!gure relevant to
transactions(BSX,PRD,FRE) in Inventory Management and in Invoice Veri!cation (Invoice receipt for automatic postings to G/L accounts in
Financial Accounting and Cost Accounting.

For Account Determination there are 5 major criteria's are

1.Chart of Account,

2.Valuation Class,

3.Transaction Event Key,

4.Valuation Grouping Code,

5.Account Grouping Code.

You can Con!gure automatic account determination with following T.Code's :

1.OMSK: valuation Class with Account catagory reference,

2.OMWM: Active Valuation Grouping Code,

3.OMWN: Active Movement type with G/L account,

4.OMWD: Active Valuation Area,

5.OMWB: Active Chart of account,Valuation Grouping Code,Account Grouping Code,Valuation Class and G/L acocounts

Regards

Priyanka.P

AWARD IF HELPFULL

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Former Member Sep 15, 2008 at 08:57 AM

hi
1 1. there are di"erent transaction keys which are assigned to diferent condition typed in procedure . these transaction keys are assigned to
di"erent account.( so system determine account automatically)

2. In material master valuation class is assigned to di"erent g/l account. so any changes in stock of thatmaterial is hit to that particular G/l
account.

important terms are

For Account Determination there are

1.Chart of Account,

2.Valuation Class,

3.Transaction Event Key,

4.Valuation Grouping Code,

5.Account Grouping Code.

Regards,

Vijay

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Kiran. V Sep 15, 2008 at 08:58 AM

HI,
0 Refer this link

http://www.sapstudymaterials.com/2007/12/sap-mm-automatic-account-determination_16.html

Thanks & Regards,

Kiran

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Former Member Sep 15, 2008 at 09:05 AM

Hi,
0 refer this link.

http://www.sapstudymaterials.com/2007/12/sap-mm-automatic-account-determination_16.html

Tx

Uts

Award if helpfull.

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