MM and FI integrate to ensure that every procurement transaction reflects in financial accounts. When a purchase order is created in SAP MM, financial postings in SAP FI are indeed triggered as a result, for example. When a purchase order is created, commitments are generated in the financial accounts, and when the goods are received, the system automatically updates the accounts payable and inventory accounts in FI.
System will identify the movement type based on business transaction.
Based on the movement type system automatically determines the transaction key and general modifier to posting the accounting documents.
System will search for combination we maintained in OBYC (valuation modifier, general modifier, valuation class and mapped GL account)
Important Terminology
What is Valuation class?
Valuation class will help in automatic account determination, and it is updated in material master record.
Material master record under accounting view1 tab we can find the valuation class field.
Multiple material master can be assign to one valuation class
Valuation modifier:
A grouping of valuation areas is known as a valuation modifier.
What is Valuation area?
Either Plant or company code is valuation area.
Valuation area is fundamentally the level at which material is valued, Material can be valued either at plant level or at company code level.
General Modifier:
Only three transaction keys are having Account modifiers in standard SAP.
The transaction keys are GBB, PRD, KON.
Transaction/Event key:
Used to differentiate between various transactions such as goods movement that occur in inventory and Control the storage or filing of documents & assignment of document
Movement Types:
A function that allows the system to discover predefined posting rules determining how accounts in a financial accounting system should be posted and to update stock fields in a master data.
FI MM Flow with accounting entries
PURCHASE REQUISITION-ME51N
– No Accounting Entry-
PURCHASE ORDER-ME21N
– No Accounting Entry-
GOODS RECEIPT-MIGO
Inventory account Dr (Tran Key BSX) 100 USD
To GR/IR Account Cr (Tran Key WRX) 100 USD
INVOICE RECEIPT-MIRO
GR/IR Account Dr 100 USD
Vendor Account Cr 100 USD
VENDOR PAYMENT-F110/F-53
Vendor Account Dr 100 USD
To Bank Clearing Account Cr 100 USD
MM and FI integrate to ensure that every procurement transaction reflects in financial accounts. When a purchase order is created in SAP MM, financial postings in SAP FI are indeed triggered as a result, for example. When a purchase order is created, commitments are generated in the financial accounts, and when the goods are received, the system automatically updates the accounts payable and inventory accounts in FI.System will identify the movement type based on business transaction.Based on the movement type system automatically determines the transaction key and general modifier to posting the accounting documents.System will search for combination we maintained in OBYC (valuation modifier, general modifier, valuation class and mapped GL account) Important Terminology What is Valuation class? Valuation class will help in automatic account determination, and it is updated in material master record.Material master record under accounting view1 tab we can find the valuation class field.Multiple material master can be assign to one valuation classValuation modifier:A grouping of valuation areas is known as a valuation modifier.What is Valuation area?Either Plant or company code is valuation area.Valuation area is fundamentally the level at which material is valued, Material can be valued either at plant level or at company code level.General Modifier:Only three transaction keys are having Account modifiers in standard SAP.The transaction keys are GBB, PRD, KON.Transaction/Event key:Used to differentiate between various transactions such as goods movement that occur in inventory and Control the storage or filing of documents & assignment of documentMovement Types:A function that allows the system to discover predefined posting rules determining how accounts in a financial accounting system should be posted and to update stock fields in a master data.FI MM Flow with accounting entriesPURCHASE REQUISITION-ME51N- No Accounting Entry-PURCHASE ORDER-ME21N- No Accounting Entry-GOODS RECEIPT-MIGOInventory account Dr (Tran Key BSX) 100 USD To GR/IR Account Cr (Tran Key WRX) 100 USDINVOICE RECEIPT-MIROGR/IR Account Dr 100 USD Vendor Account Cr 100 USDVENDOR PAYMENT-F110/F-53Vendor Account Dr 100 USD To Bank Clearing Account Cr 100 USD Read More Technology Blogs by Members articles
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