In SAP every movement of goods is followed by one movement type and movement type trigged transaction event keys. Example: 100 (Qty) X 20 (PO price) = 2,000 . The summary at the last of the document is enough to revise the whole document. SAP has provided two options for valuation. Very nice document to understand the detailed integration of FI-MM. SAP has delivered account determination simulation tool. tables VBAK,VBAP. All possible goods movements are already defined by standard SAP, EG: Movement type 101 refers goods receipt. To carry on FI-MM Integration in SAP, in MM Module, valuation areas are maintained at plant level to value the inventory at that level. This also refers to Material Master. This is defined by standard SAP. To create custmer tcode is xd01, xd02, xd03. Finance For Invoice verification process & Payment to vendor. Once we are familiar with the concepts, we will further discuss account determination process in a stock movement related transaction. Valuation at company code level: All materials in all plants of a company are valuated at company code level. Thanks a lot Prakash. Valuation area defines the organization level at which materials are valuated. ABAPers are there to essential do some bespoke development. We can further drill down based on the filtered entries. Account determination details are stored in table. Each and every movement type in MM module has a link to the transaction type created by SAP. The Best Four of them are: Chart of Accounts Also, this movement hits some G/L account in FI… Thaanks a lot, VV, Thank you for your efforts and support. EG: During Goods issue, offsetting G/L is determined from transaction key GBB. Very neatly presented and clearly explained. 1. The questions which are being asked in SDN maximum will be real time issues only. By Default, Standard SAP defines account modification keys for below transaction keys. This whitepaper tries to bring more clarity on what is split valuation about and the approach to implement it in SAP. Click onAnd update the following information App : V … Valuation at company code level: All materials in all plants of a company are valuated at company code level. We can further drill down based on the filtered entries. *-- Shahee. Configure Automatic Postings In this step, you enter the system settings for Inventory Management and Invoice Verification transactions for automatic postings to G/L accounts. You can then check your settings using a simulation function. Under Further information there is a list of transactions in Materials Management and their definitions. What are automatic … There are certain simple things you need to understand to know how this integration happens. Also invoice verification is used further along the process to check that the invoice you send to your customer is the same material and quantity as that which the vendor sends to you (but obviously shipped. 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). GR & IR will updated by movement of goods only. Link Between SAP SD, MM & FI. As we know about the module MM, FI and SD in SAP ERP. Wow!!! 7. MRP and availibility check related data is also taken from MM although you control this data in SD also. This gives the possible combination of entries where this G/L is assigned. Summary Many organizations today arrive at the different valuation for same material based on various factors crucial to their business. 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. Generally SD is integrating with MM in Stock Transport Order (STO) and Third Party Order. In each of these transaction keys you specify the GL accounts which get automatically passed at the time of entry. It is really a good explanation about account determination. This process uses a purchase order (which is sent to your vendor). 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. When PO is created : ... (Goods Receipt, Goods Issue, etc) 2. Did you observe different set of fields appears for different transaction keys in OBYC while maintaining G/L account? Let us try to understand few terminology used in MM-FI integration concepts. Account determination details are stored in table T030. I see almost no postings during US day time. In case of SAP MM FI integration, functionality and data from SAP MM (Materials Management) module triggers automatic postings in SAP FI (Financial Accounting) module. Attachments: When material document is posted with these movement types, offsetting account is determined from transaction key GBB based on account modifier and valuation class. For instance payment of a UK based material would be placed in a different GL account to that of a non-UK based material. fi-mm-sd integration q&a. Very informative and straight to the point, Thank you! Materials of same material type to different G/L account (Different valuation class is assigned in different plants for the same material), 2. Material planning and procurement through projects. Excellent paper & thanks a lot for sharing your knowledge, keep it flowing. Vinodh sir are you fico consultant or mm consultant sir?? Help to improve this answer by adding a comment. 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. Unable to contribute more these days due to tight work schedules and time zone differences. Accounting entry are posted to Financial Module due to the integration of FI and MM integration through transaction OBYC. FI MM settings are maintained in transaction code OBYC. General ledger accounts are set as per the different parameters of valuation area, movement type and transaction type that is created with respect to the movement type. THIS BLOG IS TO WRITE REVIEWS AND NOTES ABOUT SAP FINANCE AND CONTROLLING (FI/CO) BOOKS, ARTICLES etc. How sap overcomes challenges in accounts payable process? In SAP you will always get integration with other modules. You explained neatly and presentation. So basically the FI-Sd integration is for picking up the revenue accounts or the discounts and surcharges.The account key determines whether it is a revenue or a surcharge or discount. Every such movement of good s hits some G/L account. G/L account assignment and G/L account assigned to transaction event key (OBYC). THIS IS ONLY FOR EDUCATIVE PURPOSE. Transaction key/event and account modifier is identified based on movement type and other standard attributes in step 1 (OMWN), Valuation grouping code activation is checked from OMWM, If active, for the given valuation area, valuation grouping code is identified from OMWD, 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). Production Planning for getting the requirements of material. this is only for educative purpose. Stock of a material owned by a company is an asset to the company. Valuation class is defined for the combination of plant and material (In Accounting 1 view of material master). Whenever you create a delivery with reference to a sales order, goods movement takes place in the bacgground. 6. The link between SD and MM :- 1. Yes. Movement type enables the system to find predefined posting rules determining how the stock and consumption accounts are to be posted. Split Valuation: MM-FI Integration Applies to: SAP ECC 6.0. Thus this is a link between SD and FI, 3. Thanks for sharing your knowledge that's a very big deal which is missed with many intelligent consultants these days. The following are the important FI MM integration related accounting entries in SAP. As we are in MM module, we should know about the integration point. Tcode for creation ME21,ME22,ME23. Not much in to SCN now a days due to time constraints. FI-SD INTEGRATION. How FI and MM are inter-related in SAP? Valuation grouping code activation is checked from OMWM, 4. Hello Friends, I have provided the video about Automatic Account Determination which is the most important topic in SAP. Step 1 Generating purchase requisition( PP-MM involved) Step 2 Making inquiries (MM) Step 3 Raising purchase order (MM) Step 4 Release of purchase order ( MM) Step 5 Goods received from vendor ( MM and FI ) Entry will … Valuation class allows posting of stock values of, 1. SAP FI is commonly integrated with MM and SD component. 1. If active, for the given valuation area, valuation grouping code is identified from OMWD, 5. Thank you Sir for providing this wonderful document. SAP MM-FI Integration-Automatic Account Determination. Please read F1 help on different fields in this screen to know more about functionality of each field. This movement is configured in MM. This gives the possible combination of entries where this G/L is assigned. How are Accounting entries posted automatically and how do we configure them? SAP FI Integration with other modules means how the system maps with different modules and how the effect of those is passed into FI Module. FI MM integration in SAP is an example of how different modules of SAP ERP systems are integrated with each other. eg. FI Integration with SD and MM. 3. 2. EG: If we go to MIGO, default movement type 101 is displayed by system. 3. 3. Its a very useful document, really helpful for me. tables EKKO,EKPO. Process Flow in SD. Configuration transaction OBYC forms the core of SAP’s integration between the MM, FI, and Controlling (CO) modules in a traditional SAP ERP system . Explained in simplest form possible. When you create sales order in SD, all the details of the items are copied from Material master of MM. To create a sales order we need purchase order number and custmer number. EG: Select transaction key AUM in OBYC and click on “Rules” in toolbar. tables VBRK,VBRP. Valuation at plant level: All materials are valuated at plant level. Postings are made to G/L accounts automatically in the case of Invoice Verification and Inventory Management transactions relevant to Financial and Cost Accounting. With the integration, SAP ensures that data from one module flows to another module automatically. SAP PS system is tightly integrated with various other SAP modules : SAP MM - Material Management . But will be back as and when time permits. Material type is defined during material master data creation. SAP FI-MM Integration Entries The following are the important FI MM integration related accounting entries in SAP. From below screenshot, you can see that, different offsetting G/L account can be determined for the same transaction key and valuation class. Purchase order (PO) Accounting entry will not generate . FI-MM Integration. Basically STO is divided in to three types, http://www.sapcustomization.com/document/fi_mm_integration.pdf, http://www.sap-img.com/sap-sd/link-between-sap-sd-mm-and-fi.htm, http://www.financialsforum.com/showthread.php?t=26, http://www.sap-basis-abap.com/mm/sap-mm-and-fi-integration.htm, mm is integrated with FI and SD with FI it is integrated by money i.e. Whenever you create a delivery with reference to a sales order, goods movement takes place in the bacgground. Here movement 601 takes place. Few examples could be: BSX- Stands for Inventory Posting Debit GBB-Stands for Goods Issue/Scrapping/delivery of goods etc … What are the real time MM integration issues with the other modules? 1. tables LIKP,LIPS, Tcode for creation VF01,VF02,VF03. Please share your valuable feedback, thoughts and add additional information/corrections if any , MM-FI integration: Account determination simulator. But, when it comes to MM-FI integration, many of us find difficulties in understanding the concepts and account determination process. It's very informative and I really liked the way you explained. Looking at MM and SD interaction first, take the scenario of a third party order process. January 22, 2016 September 15, 2019 by ganeshsapmmwm, posted in SAP MM Inventory Management, SAP MM Procurement. If you want to know based on what details XXX account is determined, simply give that G/L in T030 table in field KONTS. For the transaction/event GBB (offsetting entry for inventory posting), the following account groupings have already been assigned to the relevant movement types: 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: 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: How are the account determination attributes determined for each transaction key/event? Examples of some are given down below:Various account keys are available Let us now maintain for the table entry account key. Looking at MM and SD interaction first, take the scenario of a third party order process. The system uses FI/MM tax codes to automatically calculate taxes in Materials Management (MM). In case of standard sales order, you create an outbound goods delivery to the customer. 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. Transaction keys are used to determine general ledger accounts used by the system. When you create sales order in SD, all the details of the items are copied from Material master of MM. 1. But SAP needs to know, when processing a customer's payment, to which GL account the payment has to be processed. In case of standard sales order, you create an outbound goods delivery to the customer. KONTS. It would be great mentioning how we can achieve the below using "Account Category Reference (ACR)" and assignment among Material type, ACR and Valuation class. SAP FI-MM-SD Integration, A Special Report PDF book for free download one can learn how the integration within FI MM, and SAP SD takes place. Warehouse Management After the material is approved from Quality department, the material is stored in warehouse for production. FI & MM integration 1. 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). can u give explain about the link fi mm integration in simple method, You have explained clearly FI-MM Integration, Thanks for sharing the knowledge . MM-FI integration: A conceptual understanding. While you create inbound/outbound delivery with reference to a sales order, the shipping … For Account Determination 5 major characteru2019s are as follow: 5.Account Grouping Code/Account Modifier. MM stands for Material Management, FI standard for Financial Accounting, SD stands for Sales and Distribution. tables VBAK,VBAP, Tcode for creation VA21,VA22,VA23. Now we know how MM and FI are integrated and how the account determination happens. Your integration, or interaction, with them would be when specifying the tables, fields, input fields, a simple process explanation, data mapping (if doing an interface from one system to another) etc. Total valuated stock = Stock in unrestricted use + Stock in transit between storage locations/warehouses of a plant + Stock in quality inspection. xk01(create), xk02(change) , xk03(display). SAP FI-MM integration is one of the important and advance topics in SAP. Valuation grouping code combines the valuation areas having same business properties for the account determination. MM-FI integration: A conceptual understanding Now we know how MM and FI are integrated and how the account determination happens. SAP has delivered account determination […] 3.OMWN: Active Movement type with G/L account, 5.OMWB: Active Chart of account,Valuation Grouping Code,Account Grouping Code,Valuation Class and G/L acocounts. Before that, to create a purchase order we need to have material no, vendor no. 3. Tcode for creation VA11,VA12,VA13. Share a link to this. FI-MM: The integration between FI-MM happens in T-code OBYC. To GR/IR Clearing Account 2,000 – WRX (Movement type 101) Structure In contrast to standard FI tax codes, these tax codes contain additional information that is required for tax calculation according to Brazilian legal requirements: Materials of same material type to different G/L account (Different valuation class is assigned in different plants for the same material), 2. Although SAP MM (Material Management) is responsible for managing materials and inventory in SAP. Within these there are various transaction keys to be maintained like BSX, WRX, GBB, PRD etc. If we want to test inventory account determination, neither you need to do actual material posting in the system nor go through master data and customization to identify the accounts. In each of these transaction keys you specify the GL accounts which get automatically passed at the time of entry. Transaction key which we see in OBYC is determined based on the movement type. 4. Understanding procure to pay (PTP) cycle and accounting document at each step. Transaction and account modifiers are a logical grouping … In SAP you will always get integration with other modules. Based on the above identified attributes, select the G/L account from OBYC. Materials of different material type to same G/L account (Same valuation class is assigned to materials of different material type). Know someone who can answer? tables VBAK,VBAP, Tcode for creation VL01,VL02,VL03. Because It could not be possible to me or any one to Explain the Real time Issues.