FUNCTIOAL SAP CONSULTANT SHOULD KNOW

THIS
• MM modules means procure to pay process
which includes purchasing, Goods receipt and
Invoice verification.
• FI module means financial statement and
payment process which includes vendor
payment, profit and loss statement, balance
sheet, cash and bank reports, tax report etc.
• If both MM and FI modules are to be worked
together with integrity then scope of the project
must be thoroughly understood.
Manufacturing business logic
LEVELS OF MM-FI INTEGRATION
Material master data view
fields in accounting view
Valuation class & Price control indicators
Valuation class MM and FI

FI
MM
 What is valuation class?
The Valuation Class in Accounting 1 View in Material Master is the main link
between Material Master and Finance

This Valuation Class determine the G/L Account during posting of goods movements.

We can group together different materials with similar properties by valuation class.
e.g. Raw material, Finished Goods, Semi-Finished.

Best possible combination provided by SAP is really interesting

All materials with the same material type are assigned to just one valuation class.

Different materials with the same material type can be assigned to different valuation classes.

Materials with different material types are assigned to a single valuation class.
 How to link valuation class and G/L
Account?
Transaction/event keys helps to connect valuation class
and G/L account

Transaction /event key

G/L Account
Valuation class
 Few important Transaction key used in MM
• BSX : Inventory account (helps in determining GL account for
inventory)
• GBB : inventory offsetting account (helps in determining
offsetting GL account of inventory GL account)
• WRX : GR/IR clearing account (helps in determining GR/IR
clearing account)
• PRD : Price difference account (helps in determining GL
account for booking any difference in prices)

https://www.scribd.com/document/182240928/Accounting-entries-in-MM-with-Transaction-Keys-pdf
Where should I find these valuation class, transaction event key
and G/L account together in SAP?

T-Code OBYC
Finally I got my G/L account to my material goods movement posting for the
valuation class from my material master through transaction event key in OBYC
 Are we still missing something?

How SAP determines for which type of material movement

which G/L should get hit
 Movement Type
• It’s a three digit number which represents the nature of movement of
material.
• Movement types are predefined by SAP. Depending upon transaction,
SAP automatically picks the corresponding movement type.

Below shows few examples of movement types

Transaction keys are attached to the movement types

You can find movement type and transaction key links in OMWN.

Based on G/L account assigned to transaction key in OBYC and valuation

class in material, the account document generated on each transaction.
 Price Control
Price Control is an indicator defined in the material master data. It indicates
the method used to valuate the stock of a material. It can either be S
(standard price) or V (Moving average price).

S V
Standard Price: A constant price at which a material is
always valuated. Goods movements and invoices do
not change this price.
Example: GR valuation by using Standard Price

Data before the posting:

Stock before the posting: 10 PC.

Value before the posting: 200 USD.

Standard Price: 20 USD/PC.

Posting:

Reception of a Purchase order of 10 PC with a price of 25 USD/PC (Purchase

order net value of 10 PC x 25 USD/PC = 250 USD)
 Standard Price effect
Data after the posting:
Stock after the posting: 10 PC + 10 PC = 20 PC.
Value before the posting: 200 USD + 200 USD = 400 USD.
Standard Price: 20 USD/PC.

Price difference (PRD) = WRX – BSX

PRD = 250 USD - 200 USD = 50 USD.

SAP recommended that, Standard price

usually used for finished or semi-finished
material.
Moving Average Price: A price which changes in
consequence of goods movement and invoice postings.
The moving average price is calculated by dividing the value
of the material by the quantity of material in stock. It is
automatically recalculated by the system after each goods
movement or invoice entry
Moving average price are used mainly for Raw Materials and
External Purchases. The Price of external procured materials
varies based on Market, will reflect the current market cost.

Below is the example of

MAP Posting
 Moving Average Price effect
Example: GR valuation by using Moving Average Price
Data before the posting:
Stock before the posting: 10 PC.
Value before the posting: 200 USD.
Moving Average Price: 20 USD/PC.
Posting:
Reception of a Purchase order of 10 PC with a price of 25 USD/PC
(Purchase order net value of 10 PC x 25 USD/PC = 250 USD).

Data after the posting:

Stock after the posting: 10 PC + 10 PC = 20 PC.
Value before the posting: 200 USD + 250 USD = 450 USD.
Moving Average Price: 450 USD / 20 PC = 22.50 USD/PC.
Fields in Costing view
Vendor master Company data view

FK02
Reconciliation Account
Vendor master Purchasing data view

MK02
Currency and Pay term

MK02
Vendor bank data at Client level
SAP Automatic Account determination
MM-FI Configuration
Glimpse of the Configuration
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 .

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.
• E.g.: 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 YNA.
Valuation class creation
OMSK
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.
• E.g.: 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.
 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.

MM FI
If system can’t find any account for the found attributes, stock
posting can’t 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.
Please share your valuable feedback, thoughts
and add additional information/corrections
if any