FI-MM integration

MATERIALS MANAGEMENT

MM-FI Integration

Materials Management

Topics:

Materials Planning Purchasing

Materials Planning

Materials planning

Plant Maintenance Order

MRP RunNon-Stock Item/Service

Independent Requirements

Purchasing (External Procurement)

Purchasing Procurement Cycle

Types of Procurement External Procurement (Purchasing) Procurement of raw materials, operating supplies, trading

goods/merchandise or services from an external supplier for the organizational units within a firm that need such items.

Internal Procurement (In-house Production) The product is produced in this location. The product is not procured via

purchase requisition or inbound delivery.

External Procurement for stock

Material

Purchasingdocument(s)

Item:no accountassignmentcategory

Vendor

Goods receipt

Goods issue

Warehouse

Production

Production

External Procurement for consumption

Material

Purchasingdocument(s)

Item:with accountassignmentcategory

Vendor

Goods receipt

SR

Purchasing documents

RFQ

Purchase order

Purch.order

Quotation

Quotation

AQuotation

B?

Purchase requisition

Purchaserequisition

Release order

ContractSchedulingagreement

31. 1.

RFQ

?

Structure of a purchasing document

Item 1

General dataConditionsTextsSchedule line

Additional data for item 1

Purchaseorder history

. . .

Item 2

. . .

Additionaldata for item 2

. . .

Purchasing document ocument

General datastatisticsMessagesConditions

Document header

Item categoryPurchasingdocument

Itemcategory

Account assign.category

A B C

Account assignment typePurchasingdocument

Itemtype

Acct.assign.type

A B C

Purchase requisition

Department

Requisition Requisition

Purchasing

Materials Requirement Planning (MRP)

Purchase requisition processing

RFQ

?Release

order

o.k.

MRP Direct entry

Purchase requisition

Determine source of supply

Vendor

Release

Allocate and process

Purchaseorder

Request for quotation/ quotation

RFQ 1

Quotation 1 Quotation 2

Purchaseorder Rejection

RFQ 2

?

Price comparison list

Vendor 1 Vendor 2

Requirements known.Procure from whichsource?

Entering an RFQ

Inquiry 2

?

Vendor 1

Vendor 2

Inquiry 1

?

Item list

11 22

Processing Quotations: ExampleEnter price and pricing conditions11

Vendor BQuotation forRFQ 2Item 10Gross price: 400/tSurcharge: 50%

Vendor C, B - Rejection-Thank you for your offer. Unfortunately,we cannot place anorder at this time .....

Vendor AQuotation forRFQ 1Item 10Gross price: 400/tDiscount: $50

Vendor CQuotation forRFQ 3Item 10Gross price: 400/tFixed costs: $40

Vendor A- Order -

Mat. Qty Price

Steel 2t 350/t

Create info record or reject quotation33

Steel 2 t

Price

350/t 480/t 520/t 450/t

Quotation 1 Quotation 2 Quotation 3 Mean valuequotation

Compare quotations using price comparison list22

Processing Purchase Orders

Purchaserequisition

RFQ

??Reference document

Contract

Pcs % Conditions

SRInfo record

Order history

Purchase order

Vendor

One-time vendor

MM-FI Integration

Valuation Classes

Click on valuation class

OBYC CONFIGURATION

Few MM transactions and its accounting integration:-Movement type for goods receipt against purchase order

is 101The accounting entry posted is as follows:- Inventory of Raw Material Debit

GR/IR (Goods Receipt/Invoice Receipt) Credit

For Inventory of Raw material account You need to update the BSX transaction key with the GL code Inventory of Raw material account

For the GR/IR account you need to update the WRX transaction key with the GL code GR/IR account.

When Raw material is issued to the production orderMovement type used for posting the above transaction

is 261 – Goods issue to orderThe accounting entry generated in the system is:- Raw material consumption Debit Inventory of Raw Material CreditThe transaction Key GBB needs to be updated. GBB key

is used for various offsetting posting entries. Within GBB transaction there are various account grouping (general modification)

In this case you need to update general modification VBR with the Raw Material consumption account

When Initial stock is uploaded for Raw MaterialMovement type used for posting – 561 (Init ial stock

upload)Accounting entry generated is as follows:-

Inventory of Raw Material Debit

Stock data takeover account Credit

The transaction key GBB needs to be updated. General modification Key

BSA needs to be updated with the GL code Stock data takeover account

If you noticed lot of account modifiers in transaction key GBB are used in

various movement type. It is difficult to remember the standard account

modifiers. In that case we can also use the Simulation mode. This helps us

in identifying what are the general modification (account modifiers) used in

GBB:-Use the following path:-IMG Materials Management Valuation and Account

AssignmentAccount Determination Account Determination Without

WizardConfigure Automatic Postings or Transaction code: OMWB