SAP MATERIAL MANAGEMENT PRICING PROCEDURE

SVVM PAVAN

Pavansingineedi@gmail.com

MM - FI INTEGRATION

Procurement process involves the cost of goods and services that

needs to be paid to the vendor by an organization.

The cost being paid must be posted in an organization necessarily in

a correct general ledger (G/L) account.

To avoid this inconvenience, the SAP system can be configured so

that the system will automatically determine the correct G/L account
that needs to be posted.

Elements decides Account Determination:

⮚ Chart of Account (COA).
⮚ Valuation Grouping Code.
⮚ Valuation Class.
⮚ Transaction / Event Key.
⮚ Account (Modifier) Grouping Code.
⮚ Event Key and G/L Mapping. (OBYC)
Define the valuation area level:

Tcode: OX14

Set the valuation area level at plant level.

Activate the valuation grouping code:

Tcode:OMWM

Chart of account assignment

Tcode: OB62

The chart account has been assigned with Company code.

Valuation grouping code assignment:

Tcode: OMWD

I have assigned valuation grouping code for my valuation area NFPL.

The main integration key between MM - FI is valuation class. But the

valuation class not directly linked with material type. The interlink
key between Material type and valuation class is account category
reference.
First define the material type for plant NFPL.

Tcode: OMS2

Save the material type.

Define the account category reference.

Tcode: OMSK

click on account category reference.

0001 - Reference for raw material.

There are standard account category reference for every material

type.

We can define our own also.

Assign the account category reference to valuation class.

You can assign with standard account category reference or create
your own.

I have defined a new valuation class as RO3K with Standard account

category reference.

Assignment of material type with account category reference:

The account category reference assigned with material type.

TRANSACTION EVENT / KEY:

Tcode: OMWN

Movement type linked with transaction event key by value

string.
ACCOUNT MODIFIER:

This key is used to determine different G/L accounts for the same
kind of goods movement based on origin and target.

EG: During the Goods issue, offsetting G/L is determined from the
transaction key GBB. If business wants to post to different G/Ls for
goods issue for cost centers (Movement type 201) and good issues to
orders (Movement type 261) for the same material and plant,
Account modifier can help here

By Default, Standard SAP defines account modification keys for below

transaction keys. User defined keys can also be defined and
respective account determination settings can be maintained.

● GBB (offsetting entry for inventory posting)

● PRD (price differences)
● KON (consignment liabilities)

Below are the modification keys defined by SAP (Extracted from F1

help).

Modifiers for GBB

For the transaction/event GBB (offsetting entry for inventory

posting), the following account groupings have already been assigned
to the relevant movement types:

● AUF: for goods receipts for production orders with account

assignment
● BSA: for initial entries of stock balances
● INV: for expense/revenue 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 consumption from stock of material provided to
vendor
● VBR: for internal goods issues (e.g., for cost center)
● VKA: for consumption for sales order without SD
● VNG: for scrapping/destruction
● VQP: for sampling
● ZOB: for goods receipts without purchase orders
 ● ZOF: for goods receipts without production orders

Modifiers for PRD

If you also activate account grouping for transaction/event PRD

(price differences) when you make the settings for automatic
postings, the following account groupings are already assigned to the
relevant movement types in the standard:

● none for goods receipts and invoice receipts for purchase

orders
● PRF: for goods receipts for production orders
● PRA: for goods issues and other goods movements

Modifiers for KON

If you also activate account grouping for transaction/event KON

(consignment liabilities) when you make the settings for automatic
postings, the following account groupings are already assigned to the
relevant movement types in the standard:

● none for consignment liabilities

● PIP: for pipeline liabilities
ACCOUNT DETERMINATION PROCESS:

Based on this process and configuration the appropriate G/L Account

will be triggered.

Mapping of G/L ACCOUNT With transaction event key:

OBYC
Select the appropriate Transaction event key for goods receipt.

Now we will see the automatic account determination for raw

material receiving.

While receiving the goods against the PO the stock account (BSX) &
WRX (GR/IR) account will be updated.

So I need to configure for that transaction event keys.

Now I need to create the Balance sheet accounts(G/L ACCOUNT) for

this Purpose.

Go to FS00

Enter the company code.

And click on create option.

Enter the G/L account number that needs to be create and company
code.

Enter the account group, description, and trading partner.

Mainly select the account as a balance sheet account.
Then go to control tab,
Enter the tax category, reconciliation account type, and sort key.

Then go to Create/bank/interest tab,

Enter the field status group as G067 - Reconciliation accounts.

And save the G/L Account.

Assign the G/L account in BSX Transaction key.

Then I need to create the account WRX transaction key.

Enter the G/L account and company code.

Save the G/L Account. And assign this G/L account to WRX key.

ASSIGNMENT OF G/L account with Transaction key:

Tcode:OBYC

SAVE THE ENTRY.

Now create a material with a new material type.

Select the material type, industry sector.

Then select the views, plant and storage location.

Enter the new valuation class, and maintain the moving average
price.
The material number is 860010065

Now create a PO for the material.

Save the PO.

4500026845
Now receive the goods against this PO.
Check ITEM OK check box, delivery note.

Check the document.

The material document has been posted. - 5000002182

Check the accounting entries.

Based on our configuration the G/L account has been triggered.

Same as need to do for every transaction event.