Accounting Entries related to MM transactions...

Initial stock entry:

Movement type - 561(Receipt per initial entry of stock balances into unrestricted-use)
TCODE - MB1C
FI Document Type - WA
89 Raw material BSX S
91 Initial Stock entry GBB BSA H
Physical inventory differences:
Movement type 702 (Goods Issue Physical Inventory difference) this is triggered because of the movement type 102, which is given
while calculating the difference INV: for expenditure/income from inventory differences
TCODE - MI07 (MI01 & MI04)
FI Document Type - WI
81 Inventory differences G/L GBB INV S
99 Raw material BSX H
Goods Issue to Production Order:
Movement type - 261 (Consumption for order from warehouse) VBR: for internal goods issues (for example, for cost center)
TCODE - MB1A
FI Document Type - WA: Goods Issue
81 Raw material Consumption GBB VBR S
99 Raw material BSX H
In case Movement type given is 201(Consumption for cost center from warehouse), at the time of MB1A
system asks for the COST CENTER & GENERAL LEDGER. Here, the account determination happens directly
from MB1A and not from the OBYC. Accounting entry will be same as above except the 'Raw material
Consumption'; it triggers whatever the GL given.
Goods Issue / Delivery: SD
Movement type - 601 (Customer delivery) VAX: for goods issues for sales orders without account assignment object (the account is not
a cost element)
TCODE - VL02
FI Document Type - WL: Goods Issue/Delivery
81 Mater. consumed/trading goods GBB VAX S
without cost element COGS
99 Finished Goods BSX H
Goods Receipt: FG PP
Movement type - 101 (Goods Receipt) GBB-AUF: for goods receipts for orders (without account assignment) and for order settlement
if AUA is not maintained
TCODE - MB31 Goods Receipt for Production Order
FI Document Type - WE: Goods Receipt
89 Finished Goods BSX S
91 Inventory change factory GBB AUF H
outputCOGP
Goods Receipt: RM MM
Movement type - 101 (Goods Receipt)
TCODE - MIGO Goods Receipt for Purchase Order
FI Document Type - WE: Goods Receipt
89 Raw Material BSX S
96 GR / IR Clearing account WRX H
Invoice Receipt: RM MM
Movement type - 101 (Goods Receipt)
TCODE - MIGO Goods Receipt for Purchase Order
FI Document Type - WE: Goods Receipt
86 GR / IR Clearing account WRX S
31 Vendor account KBS H
KBS is without any account determination and posting keys are 81 & 91. It triggers when there is no
material is assigned in the PO at that time.
WRX In case of any posting required without material, account determination should be without valuation
class.
If price changed at the time of IR, then based on the difference in the material price system posts amounts
to particular material account and not to the price difference account (this is related to the materials with
price control V).
Material Valuation: MM
Movement type -
TCODE - MR22 Dr/Cr Material material valuation (below given calculation) & MR21: Price Change (Difference amount posts to the
material account and calculation is ((New price Old price) * Quantity)
FI Document Type - PR: Price change Below entry in case of price increase
89 Raw material BSX S
93 Material Valuation UMB H

Calculation -{ Current Stock Value + ( Amount given in MR22 / Quantity given in MR22 * Cr.

Quantity )}
Billing Document: SD
TCODE - VF01 Billing - VF11 Cancel Billing
FI Document Type - RV: Billing document transfer - RW: Reversal of billing
01 Customer account BSX S
50 Sales Revenue account UMB H

MM-FI integration: A conceptual understanding | SCN

Most of us are comfortable with SD-FI-COPA integration concepts as it

is easy to correlate and understand. But, when it comes to MM-FI
integration, many of us find difficulties in understanding the concepts
and account determination process. When I was trying to analyze my
first issue related to how a stock account is determined in a valuated
transaction, I was lost in OBYC. Let us try to understand few
terminology used in MM-FI integration concepts. Once we are familiar
with the concepts, we will further discuss account determination process
in a stock movement related transaction.
Valuation area:

Stock of a material owned by a company is an asset to the company.

Valuation area defines the organization level at which materials are
valuated.

SAP has provided two options for valuation.

1. Valuation at plant level: All materials are valuated at plant level.

2. Valuation at company code level: All materials in all plants of a

company are valuated at company code level.

This setting is defined in t-code OX14.

Valuated stock:
Total valuated stock = Stock in unrestricted use + Stock in transit
between storage locations/warehouses of a plant + Stock in quality
inspection.

Material type:

This defines the type of material.

EG: Raw material, Finished goods etc.

Material type is defined during material master data creation.

Movement type:

This defines the type of material movement from one place to other.
Movement type enables the system to find predefined posting rules
determining how the stock and consumption accounts are to be posted.
All possible goods movements are already defined by standard SAP
EG: Movement type 101 refers goods receipt

Movement type is entered while posting stock movement related

transactions. Most of the time, standard SAP automatically derives the
movement type based on transaction code.

EG: If we go to MIGO, default movement type 101 is displayed by

system.

Valuation class:

Valuation class is defined for the combination of plant and material (In
Accounting 1 view of material master).
Valuation class allows posting of stock values of

1. Materials of same material type to different G/L account (Different

valuation class is assigned in different plants for the same material)

2. Materials of different material type to same G/L account (Same

valuation class is assigned to materials of different material type)

Note: G/L accounts can be defined at valuation class level along with
other parameters.
Valuation grouping code:

Valuation grouping code combines the valuation areas having same

business properties for the account determination. This reduces number
of entries to be created for automatic account determination for the stock
postings.

EG: Valuation area 1 and 2 are required to be posted to same G/L

account, these are grouped to valuation grouping code ABC and G/L is
determined based on valuation grouping code and valuation class.

Before using valuation grouping code, it needs to be activated

in OMWM.

Valuation grouping code is assigned to valuation area in t-

code OMWD.
In below example, five valuation areas are assigned to same valuation
grouping code.

Account modification/General modification:

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

EG: During Goods issue, offsetting G/L is determined from 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. To understand this better, let us go to t-code OMWN where we
define the transaction key and account modification for the movement
type.
Transaction key which we see in OBYC is determined based on the
movement type. In below screenshot, you can see all parameters are
same for movement type 201 and 261 except account modification.

Please read F1 help on different fields in this screen to know more about
functionality of each field.

T-code OMWN:

When material document is posted with these movement types,

offsetting account is determined from transaction key GBB based on
account modifier and valuation class.
From below screenshot, you can see that, different offsetting G/L
account can be determined for the same transaction key and valuation
class.

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

How are the account determination attributes

determined for each transaction key/event?
Did you observe different set of fields appears for different transaction
keys in OBYC while maintaining G/L account? Yes. This is defined in
Rules for the transaction key.

EG: Select transaction key AUM in OBYC and click on "Rules" in

toolbar.

You can see that general modification and valuation modifier is active.

If you go to G/L account maintenance for this key, you would see the
same fields.
Quick snap of MM-FI Integration process:

When we do material posting for a valuated material, below flow

happens.

1. Movement type and other attributes like special stock indicator,

movement indicator etc are determined based on business transaction
like goods receipt for PO, production order etc.(OMWN). This is
defined by standard SAP.

2. Transaction key/event and account modifier is identified based on

movement type and other standard attributes in step 1 (OMWN)

3. Valuation grouping code activation is checked from OMWM

4. If active, for the given valuation area, valuation grouping code is

identified from OMWD
5. For the identified transaction or event, check if valuation grouping
code is active or not in OBYC (Click the rules button for the transaction
key)

6. Valuation class is determined from material master.

7. Based on the above identified attributes, select the G/L account from
OBYC.

If system cant find any account for the found attributes, stock posting
cant be done and system through clear error stating for which
combination of attributes, G/L account is missing. Such errors are
mostly seen during go live/while posting to new materials due to missing
G/L account maintenance or due to incorrect valuation class in material
master data.

Now you know the process, here is the short cut to find out G/L.

Account determination details are stored in table T030. If you want to

know based on what details XXX account is determined, simply give
that G/L in T030 table in field KONTS. This gives the possible
combination of entries where this G/L is assigned. We can further drill
down based on the filtered entries
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