SAP FI/CO Integration of FI with MM

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Faculty: M.Upendar Reddy, I.C.W.A.I and Sap Fi/Co Consultant

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 SAP FI/CO Integration of FI with MM

Integration of FI with MM
Step 1: Define / Create Plant

Path: SPRO – Enterprise Structure – Definition - Logistics- General – Define, Copy,

Delete, Check Plant

Double Click on “Define plant”

Click on “New entries”
Plant =
Calendar = 01 (Factory Calendar) Click on “Save”

Name =
Country = Click on “Enter”

Step 2 : Define / Create Storage location

Path: SPRO – Enterprise Structure – Definition - Material Management – Maintain

Storage location
T.Code OX09

Plant = Click on “Enter”

Click on “New entries”
Storage Location =
Description = Click on “Save”
Select the Line and
Double Click “Addresses of storage location”
Click on “New entries”
No. = 01 Click on “Save”
Name =
Country = Click on “Save”

Step 3: Maintain Purchase Organization

Path: SPRO - Enterprise Structure – Definition – Material Management – Maintain

purchase Organization

Click on “New entries”

Purchase Organization =
Description = Click on “Save”

Step 4: Assignment of Plant to Company Code

Path: SPRO – Enterprise Structure – Assignment – Logistics-General – Assign Plant to

Company Code T.Code OX18

Click on “new entreis”

Company code =
Plant = click on “save”

Faculty: M.Upendar Reddy, I.C.W.A.I and Sap Fi/Co Consultant

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 SAP FI/CO Integration of FI with MM

Step 5: Assign Purchase Organization to Company Code

Path: SPRO – Enterprise Structure – Assignment – Material Management – Assign

Purchase Organisation to Co. Code T.Code OX01

Clikc on “position”
Purchase organization = click on “enter”
Company code = click on “save”

Step 6: Assign Purchase Organisation to Plant

Path: SPRO – Enterprise Structure – Assignment – Material Management – Assign

Purchase Organization to Plant T.Code OX17

Click on “new entries”

Purchase organization =
Plant = click on “save”

Step 7: Creation of Plant parameters

Path: SPRO – Material Management – Consumption based planning – Plant parameters

– Carry out overall maintenance of Plant parameters T.Code OM18

Click on “Copy”
From Plant = 0001
To Plant = Click on “Copy” and Enter.

Step 8: Maintain Posting Periods for Material Management

Path: SPRO – Logistics-General – Material Master – Basic settings – Maintain Co.

Codes for Material Management T.Code OMSY

Click on “Position” button,

Company Code =
Year = Period =
Click on “Save”.

Note: T.Code OMSY is used for opening Posting period for the first time only. For
subsequent opening / closing of posting periods, we need to use T.Code MMPV.

Step 9: Valuation Grouping Code

Path: SPRO – Material Management – Valuation and Account assignment – Account

Determination – Account Determination without wizard – Group together valuation areas
T.Code OMWD
Click on Position Button
Valuation Area =
Valuation Grouping Code = 0001 Click on Save.

Faculty: M.Upendar Reddy, I.C.W.A.I and Sap Fi/Co Consultant

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 SAP FI/CO Integration of FI with MM

Step 10: Purchase Order Tolerance Group

Path: SPRO – Material Management – Purchasing – Purchase order – Set tolerance limit
for price variance

Select and Copy “PE” and “SE” tolerance groups of Co.Cd. 0001 to your Company
Code.

Step 11: GR Tolerance Group – T.Code OMC0

Path: SPRO – Material Management – Inventory Management and Physical inventory –

Goods Receipt – Set Tolerance limits

Copy “B1”, “B2” and “VP” Tolerance groups of Co. Cd. 1000 to your Co. Cd.

Step 12: Vendor specific Tolerance Group

Path: SPRO – MM – Logistics Invoice verification - Incoming invoice – Configure

Vendor specific Tolerances

Copy Co.Cd. 1000 settings to your Co. Cd.

Step 13: Parameters for Invoice verification

Path: SPRO – MM – Logistics Invoice verification – Invoice verification in back ground

– Define automatic status change

Copy Co.Cd. 0001 settings to your Co. Cd.

Step 14: Maintain Plant Parameters for Inventory management & physical inventory

Path: SPRO – Material Management – Inventory management & Physical inventory –

Plant Parameters

Select Plant 0001

Click on copy as button
Plant = Click on Save

Step 15: Default Values of Tax Codes for Invoice verification

Path: SPRO – Material Management – Logistics Invoice verification – Incoming

invoices – Maintain default values for tax codes

Copy Co.Cd. 0001 settings to our Co.Cd. and Enter Tax Code = V0.

Faculty: M.Upendar Reddy, I.C.W.A.I and Sap Fi/Co Consultant

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 SAP FI/CO Integration of FI with MM

Step 16: Define Attributes for Material Type

Path: SPRO – Logistics-General – Material Master – Basic settings – Material types –

Define Attributes for Material types T.Code: OMS2

Click on “Position”,

Material type = ROH, Double Click on “Quantity/Value Updating”

Click on “Position”,
Valuation Area = (Plant Name)
Select “Quantity Updating” and “Value updating” Click on “Save”.

Step 17: Maintain AN and ST Tolerance Limits T.Code:OMR6

Copy “AN” & “ST” of 1000 Co. Code to your Co. Code

Step 18: Vendor Master Record Creation

Path: SAP Easy Access – Logistics – Material Management – Purchasing – Master data
– Vendor – Centrally – Create T.Code XK01

Company Code =
Account Group =
Purchasing Organization = Click Enter

Title = Company
Name =
Country =

Click “Next Screen” button Thrice

Reconciliation Account = (Sundry Creditors A/c)
Sort Key = 012 (Vendor Number)
Cash Management Group = A1 (Domestic Vendors)

Click “Next Screen” button

Payment terms = 0001 (Payable immediately due net)
Tolerance group = Blank
Select “Check Double Invoice”

Click “Next Screen” button,

Order Currency = INR Click Save

Step 19: Creating Material Master Record

Path: SAP Easy Access – Logistics – Material Management – Material Master –

Material – Create – General – Immediately T.Code MM01

Material =
Industry =
Material type = Click on “Select Views”,
Faculty: M.Upendar Reddy, I.C.W.A.I and Sap Fi/Co Consultant
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 SAP FI/CO Integration of FI with MM

Select the following views

Basic Data 1
MRP 1
Purchasing
Accounting 1

Costing 1
Costing 2

Click on “Organizational levels”,

Plant =
Storage location = Click on “Enter”

Material =
Base unit =
Material Group = Click on Enter

Purchasing Group = Click on Enter

MRP Type = ND (No Planning) Click on Enter

Valuation class =
Moving price = Click on Enter

Select “With Quantity Structure” check box Click on Enter

Observe all Fields Click on “Save”.

Step 20: Creation of GL account’s in FI T.Code FS00

1. Inventory – Raw Material Account – 200125

A/c Group = Current Assets
FSG =G006
Select “Post automatically only”

2. GR/IR Clearing Account – 100520

A/c Group = Current Liabilities
Tax Category = *
Select “Open item Management” option
FSG = G045 Select “Post automatically only”

3. Raw Material Consumption Account – 400000

A/c Group = Raw Material Consumption
FSG = G003
Select “Post automatically only”.
Click on “Edit Cost Element”, Cost element category = 1

Faculty: M.Upendar Reddy, I.C.W.A.I and Sap Fi/Co Consultant

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 SAP FI/CO Integration of FI with MM

Step 21: Creation of NumberRanges T.Code: FBN1

Create Number ranges for the following Document types with respective Serial Numbers.

Doc. Type: WA – S. No. 49 – Goods Issue

Doc. Type: WE – S. No 50 – Goods Receipt
Doc. Type: RE – S. No 51 – Gross Invoice Receipt

Step 22: Assignment of Accounts for automatic postings (Integration)

Path: SPRO – Financial Accounting – GL Accounting – Business Transactions –

Integration – Material Management – Define Accounts for Material Management
T.Code OBYC

Or

Path: SPRO – Material Management – Valuation and Account Assignment – Account

determination – Account determination with out wizard – Configure automatic postings
T.Code – OBYC

Double Click on “BSX”, Chart of Accounts =

Select “Valuation Class”, Click on “Save”
Valuation Class =
Account =
Click on “Save”. Go back
Double Click on “WRX”,
Click on “Save”
Account =
Click on “Save”. Go back

Double Click “GBB”,

Select “Valuation modifier”, “General Modification” and “Valuation Class”
Click on “Save”
Valuation Modification =
General Modifier =
Valuation Class =
Account =
Click on “Save”.

Step 23: Creation of purchase order

Path: SAP Easy Access – Logistics – Material Management – Purchasing – PO – Create

T.Code ME21N
Vendor Number =
Payment terms =
Raw Material =
PO Quantity =
Delivery date =
Net Price =
Currency =
Faculty: M.Upendar Reddy, I.C.W.A.I and Sap Fi/Co Consultant
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 SAP FI/CO Integration of FI with MM

Plant =
Storage Location =
Go to Org. Data tab
Purchase Organization=
Purchase Group =
Company Code =

Click on Enter and Save. Note the PO Number.

To Display Purchase Order, go to T.CodeME23N, Click on “Other Purchase Document”

Icon and give the PO Number.

Step 24: Creation of Goods Receipt T.Code MIGO

Path: SAP Easy Access – Logistics – Material Management – Inv. Management – Goods
Movement – GR for PO

Enter PO Number after “Goods receipt” and “Purchase Order” fields

and Click on “Enter”

Scroll down and Select “Item OK” and Click on “Check” button on the tool bar.

Click on “Post” button.

“Note” the Document Number.

To display MM Document, go to T.Code MB03

Enter the Document Number and Click on “Enter”.

To see the corresponding Accounting Document (created automatically because of

Integration), keep the cursor on the document
And click on “Accounting Document” button in the tool bar and Observe this document:

Inventory Raw Material A/c Dr

To GR/IR Clearing A/c

Step 25: Invoice verification T.Code MIRO

Invoice date =
Amount =
Go to Payment tab,
Baseline date =

In PO Reference tab,
Enter PO Document Number Click Enter

Click on “Save” Note the Document Number,

Go to Menu, Click on Display Document,
Faculty: M.Upendar Reddy, I.C.W.A.I and Sap Fi/Co Consultant
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Click “Follow on Documents” button and Observe the following document:

GR/IR Clearing A/c Dr

To Vendor a/c

Step 26: Goods issue to Production T.Code MB1A

Path: SAP Easy Access – Logistics – Material Management – Inventory Management –

Goods Movement – Goods issue

Movement type =
Plant =
Storage Location =

Click on “Enter”

G/L Account =
CostCenter =

Material =
Quantity =
Storage Location =

Click on “Save”. Note the Document Number

Go to T.Code MB03, display your document and Observe the following Acctg.
document:

Raw Material Consumption A/c Dr.

To Inventory of RM A/c

Prerequisites:

Step 1: Define Tax Calculation Procedure for country

Path: SPRO – Financial Accounting – Financial Accounting Global Settings – Tax on
Sales / Purchases – Basic Settings – Check calculation procedure

Double Click on “ Define Procedures”

Click on “New Entries”
Procedure = ITAX
Description = Tax Procedure for India Click on Save

Select the procedure line “ ITAX ” and double click “Control Data”
Click on “New Entries”
Step Condition Type Description From To Account Key
1 BASB Base Amount
2 MWVS Input Tax 1 1 VST
3 MWAS Output Tax 1 1 MWS Save

Step 2: Assign country to calculation procedure

Faculty: M.Upendar Reddy, I.C.W.A.I and Sap Fi/Co Consultant
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Path: Same as above

Click on “Position” button, Country = IN - Enter, Procedure = ITAX - Save

Step 3: Define tax codes for Sales and Purchases

Path: SPRO – Financial Accounting – Financial Accounting Global Settings – Tax on

Sales/Purchases – Calculation – Define Tax Codes for Sales and Purchases
T.Code: FTXP

Country = IN Enter, Tax Code = V0 Enter

Tax Code = 0% Input Tax, Tax Type = V (input tax) Enter
Input tax percentage = 0, Output tax percentage = Click on “Deactivate Line” –
Save

Tax Code = A0 Enter

Tax Code = 0% Output Tax, Tax Type = A (Output tax) Enter
Output tax percentage = 0, Input tax percentage = Click on “Deactivate Line” – Save

Step 4: Creation of Tax Payable Account T.Code – FS00

Number = 100510
A/c Group = Current Liabilities
Text = Tax Payable
A/c Currency = INR
Select “Open item management”
Select “ Line Item Display”
Sort Key = 001
Field Status Group = G001 Click on Save

Step 5: Assignment of Account for Automatic posting T.Code – OB40

Double click on Transaction – VST Line
Chart of Accounts = Enter and Click on Save
Account = 100510 Click on Save
Double click on Transaction – MWS line Click on Save,
Account = 100510 Click on Save

Faculty: M.Upendar Reddy, I.C.W.A.I and Sap Fi/Co Consultant

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