Account Determination in SAP

Account Determination in SAP

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Purchasing (Procure-to-Pay)

Account determination is required in SAP materials management with respect to the materials

for transactions relevant to accounting. These transactions must be recorded in accounting

documents that contain the postings made to G/L Accounts in Financial Accounting. The SAP

R/3 system should automatically determine the G/L Account numbers.

Pricing Configuration

In sap purchase pricing is carried out using a business object called calculation schema:

A calculation schema is a framework to calculate various pricing elements in purchasing

calculation.

Configuration of a calculation schema using menu path:

IMG- Materials Management- Purchasing- Conditions- Define Price determination process-

Define calculation schema.

The calculation schema determination can be done for three types of business scenarios:

1. Regular Purchase Orders (PO’s)-The calculation schema for a combination of

purchasing organization and schema group.

2. Stock Transport Orders- The calculation schema for the combination of schema group

for purchasing Organization.

3. Determination of market price- Assign calculation schema directly to each purchase

organization.

Purchasing-Conditions-Define Price determination process

The configuration activities differ in terms of objects that are available for calculation schema

determination.

A calculation schema consists of:

1. Condition types- A condition type in purchasing is similar to the condition types in

sales. They represent different pricing elements that are either a part of vendor invoice or

to calculate and report internally in the company. Prices, freight, taxes, surcharges and

similar pricing elements in procure to pay are configured using condition types.

Menu path:

IMG-Materials Management-Purchasing-Conditions-Define price determination process-

Define condition types.


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2. Access Sequence- It provides SAP ERP with a search strategy that the system can use to

search for valid condition records for a condition type.

You can configure access sequence using: IMG-Materials Management-Purchasing-

Conditions-Define Price determination process-Define access sequence.

Based on a material, plant, source and destination information you can use a tax classification

access sequence to determine the taxability of the material being purchased.

Technical Objects:

Technical objects are being configured in SAP ERP instead of being assigned for vendor

master and material master or any other business object:

Application- An application in SAP ERP represents a group of conditions that are used in a

particular application area. These values are delivered by SAP ERP. The configuration

activity you are carrying out will determine which application values are available.

For the GL Account determination in purchasing functionality the value is always M.

Field Catalog- A field catalog provides a list of valid fields that you can use as

characteristics to carry out GL account determination.

The configuration activity for purchasing is done via the menu path:

IMG- Materials management- Purchasing- Conditions- Define Price Determination- Define

Access Sequences.

This will let you add additional fields to the field catalog from structures KOMG and KOMP.

Account Keys: An account key provides the same functionality as in the sales transactions.

You use account keys in purchasing GL account determination for different types of GL

accounts such as freight clearing, input tax, consignment payables, purchasing account and

so on.

ActKey Name

B01 Rebates

B02 Volume rebate income

DEL Del credere

EIN Purchasing Account

FR1 Freight Clearing

FR3 Customs Clearing

VST Purchase Input Tax

Standard keys available in purchasing account determination.

These account keys are maintained using configuration Item:


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IMG- Materials Management- Purchasing- Conditions- Define Price Determination Process-

Define Transaction/Event Keys-Trans/Event Key.

Business Objects:

1. Purchasing Organization- It is an organizational unit that is responsible for procurement of

products and services. It is one of the most basic configurations in implementing SAP

ERP system.

Configure Purchase Org-

IMG-Enterprise Structure-Definition-Materials Management-Maintain Purchasing

Organization.

Assign Purchase Org to Company Code-

IMG- Enterprise Structure- Assignment- Materials Management- Assign Purchase Org to

Company Code.

2. Plant- A plant is an organizational unit that typically refers to a facility that manufactures

or stores an inventory of products. It is one of the most basic configurations while

implementing SAP ERP system.

Configure a plant-

IMG- Enterprise Structure- Definition- Logistics General- DEFINE COPY, DELETE,

and CHECK PLANT.

Assign plant to company code-

IMG-Enterprise Structure-Assignment-Logistics General-Assign Plant to Company

Code.

3. Chart of Accounts- A chart of accounts is a required characteristic in Sales GL Account

Determination. The GL account determination in purchasing, The COA refers to the chart

of accounts assigned to company code to which purchasing organization is assigned.

4. Account Assignment Category- The purchase account determination also utilizes the

Account assignment category. The one character code determines if any additional

account assignment objects such as cost center, asset and so on are required at the time of

PO entry.

Configure an account assignment-

IMG- Materials Management- Purchasing- Account Assignment- Maintain Account

Assignment Categories.


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GL Account Determination

In Purchasing and material management transactions, GL account determination is

dependent on many factors. Although the purchase account determination system uses the

condition technique to determine the account key, assignment of GL accounts to account

key is not direct and straightforward.

For example a simple transaction such as invoice payment for goods receipts. Where you

post-delivery related unplanned cost depends on how you are valuating that particular

material. If you are evaluating a material using standard price, then you post unplanned

expenses to variance account.

However if you are evaluating a material using moving average price then you should

post the variance to the inventory account. It depends whether you have enough stock in

the inventory account too. If you do not have enough stock then check whether negative

stock of that material is allowed in the system.

Configuration transactions

Purchasing accounts:

M/06: Maintain condition types

M/04: Maintain condition tables

OMFO: PO schema determination

OMFZ: STO schema determination

OMFR: Market Price Schema Determination

M/07: Define access sequences.

Reconciliation Accounts:

OV60: Maintain field catalog

OV66: Maintain Condition Types

OV62: Maintain Condition Tables

OV65: Maintain determination procedure

Tables and Structures:

KOMCV: Allowed fields for account determination

TO24E-Market Price Calculation Schema

T683-Pricing Procedure per usage and application

T685-Condition Types per usage and application

TMKS-PO calculation schema

TMKSU-STO Calculation Schema

TMRRUR-Unbilled account Receivables


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Inventory Transactions

The process explains the GL account determination for inventory transactions in SAP

MM.

Material Valuation: Create the material master in SAP ERP for all the services and

products that you purchase, sell, trade or manufacture. Depending on the material type

the materials can be valuated or non-valuated. Valuated materials have monetary value

attached to their stock and non-monetary transactions have no monetary values attached

to it. Example: inventory of raw materials (ROH) or finished goods (FERT) are always

valuated. On the other hand materials created to represent services (DIEN) are

maintained as non-valuated.

Material type configuration as valuated or non-valuated:

IMG-Logistics-General-Material Master-Basic settings-Material Types-Define attributes

of material types.

It is also applicable to maintain values for individual valuation areas but SAP ERP

represents the organizational unit at which you carry out inventory valuation.

Controlling Object Assignments:

If GL account being posted is also set up as a cost element, then the posting transaction

also makes posting to additional controlling objects. Examples of controlling objects are

project, internal order, cost center, cost object and so on. Which controlling objects are

available and posted depends on which controlling components are active and being used

in SAP ERP.

Cost center posting requires that Cost Center Accounting(CCA) is active, internal order

posting requires that Internal Order Accounting(IOA) is active and posting to a project or

WBS element requires that Project Systems(PS) is active.

SAP ERP uses different transaction keys to determine the necessary GL accounts

depending on whether a business transaction has or can have controlling (CO) account

assignments.

Account Determination Objects 1. Stock Type

2. Geographical/manufacturing unit

3. Transaction Type

Stock Type: GL account postings of different accounts are posted to different GL

Accounts. For example you need different GL accounts for stock of finished goods

and stock of raw materials.


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Material types are configured in SAP ERP systems using:

IMG- Material Master- Basic Settings- Material Types- Define Attributes of material

types.

SAP ERP provides a lot no of material types that are indirectly used for GL account

determination with reference to the GL account determination objects assigned to it.

Example: DIEN- Service

FERT-Finished products

HIBE-Operating supplies

HAWA-Trading Goods

HALB-Semi finished goods

ROH-Raw materials

Geographical/manufacturing unit: It can be distinguished on the manufacturing

units as per the geographical locations. Using the valuation area the configuration

value then refers to the valuation level. You can specify the valuation area at the

company code or plant level.

Recommendation: Set valuation area at plant level and valuation level at company

code level.

Valuation level can be specified as:

IMG- Enterprise Structure- Definition- Logistics General- Define Valuation Level.

Transaction Type: Movement types can help you distinguish between the types of

business transactions and types of inventories involved in business transactions.

Movement types are not directly involved in GL account determination but their

attributes tell the GL accounts they are posted to.

Movement type configuration:

IMG- Materials Management- Inventory management and Physical inventory-

Movement Types- Copy change movement types.

Sample list of movement types in SAP ERP:

101- Goods Receipt

103-Goods Receipt into blocked stock

105-Goods Receipt from blocked stock

201-Goods Issue for cost center

221-Goods Issue for project

231-Goods Issue for sales order

241-Goods Issue for asset

All inventory related transactions have associated movement types. It can be

manually entered or automatically derived.


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Additional Objects:

There are other higher as well as lower level objects that gives rise to considerable

flexibility in GL determination for inventory transactions:

Valuation code- Valuation area- Valuation Category- Material Type;

Valuation Class- Account Category- Account Grouping- Movement Type.

Objects for valuation Areas:

Multiple valuation areas can be grouped into a valuation grouping code. A

valuation area represents a company code or more commonly a plant. If you want to

maintain the same GL Account determination for multiple plants or company codes,

you can group them into a valuation grouping code and then assign all the GL

accounts to it. Without a valuation grouping code you would have to assign all GL

accounts separately for each valuation area. You assign valuation areas to valuation

grouping codes using:

IMG- Materials Management- Valuation and account assignment- account

determination- account determination without wizard- Group together valuation

areas.

Similarly valuation categories can be used to carry out GL account determination by

origin of stock. The functionality is relevant if you have enabled split valuation. It

allows you to valuate different stocks of the same material in the same plant

differently. Take an example of the material that you produce in your plants and also

procure it from external suppliers. A valuation category lets you specify the criteria

according to which partial stocks are divided for valuation.

Configuration for Split Valuation:

IMG- Materials Management- Valuation and Account Assignment- Spilt Valuation.

Objects for Material Types:

The material types and valuation class are linked in many to many relationships via

the account category:

A valuation class lets you assign a material or a group of materials to a set of GL

Accounts. By separating the GL account determination criteria from a material type

SAP ERP lets you assign different types of materials to the same valuation class and

similarly lets you carry out different GL accounts for materials belonging to different

material types.

An account reference category is a group of valuation classes. You can assign only

one account reference category to a material type. This type of assignment allows

multiple valuation classes to be used for materials with the same material type and

similarly the materials belonging to different material types can use the same

valuation class.


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You can define valuation class using the configuration transaction:

IMG- Materials Management- Valuation and account assignment- Account

determination- Account determination without wizard- Define valuation classes.

Objects for Movement Types:

A transaction key groups together multiple movement types depending on different

types of inventory related business transactions. It provides same GL account

determination for similar movement types (Example inventory increase or inventory

decrease).

A transaction key can be differentiated, combined with the other characteristics into

account grouping code. The code is not available for all grouping codes.

Use configuration transaction for account grouping code:

IMG- Materials Management- Valuation and account assignment- Account

Determination- Account determination without wizard- Define account grouping for

movement types.

Transaction Keys:

These are used for GL Account Determination. It is done through transaction OBYC or

menu path:

IMG- Materials Management- Valuation and Account Assignment- Account

determination- Account determination without wizard- Configure automatic postings-

Account Assignment.

All transaction keys share the same transaction group RMK.

Procedures Transactions

Inventory Posting BSD

Material management small differences DIF

Purchase Account EIN

Purchase Offsetting Account EKG

Freight Clearing FR1

Freight Provisions FR2

Customs Clearing FR3

Purchasing Freight Account FRE

Customs Provisions FR4


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Offsetting entry for inventory postings GBB

Account-assigned purchase order KBS

MM Exchange rate differences KDG

Consignment Payables KON

Price difference offset entry KTR

Accruals and defer acct(material ledger) LKW

Cost(price) differences PRD

Expense/revenue from revaluation RAP

Invoice reductions from log.inv.

verification

RKA

General Ledger Account Determination-Procurement:

Inventory Accounts (BSX): These accounts represent the monetary value of the stock

owned by the company. These are balance sheet inventory accounts. To determine these

GL accounts SAP ERP transactions use the BSX (inventory posting) transaction key.

All the GL accounts are configured for the combination of the chart of accounts INT and

the transaction key BSX. For that specific combination different GL accounts are

configured for every valuation class for a valuation grouping code.

Example Assign a valuation grouping code for all the valuation areas (plants or company

code) in the system and they will use the same GL accounts that are specified here for

their inventory transactions. If one company requires a different set of GL accounts for

BSX transaction key you can assign a different valuation grouping code and maintain a

different set of GL accounts in this configuration.

Valuation classes usually correspond to different material types in inventory section of

your balance sheet. These valuation classes can represent raw materials, work in

progress, finished goods, trading goods etc. Any increase or decrease in the inventory

stock due to GR is reflected by debit/credit postings to these accounts.

Example the loading opening inventory balance of materials will debit these GL accounts

and the transactions for issuing raw materials to the production order will credit the GL

account assigned to the valuation class maintained in the raw material record.

Charts of accounts INT Sample Chart of Accounts

Transaction BSX Inventory Postings

Account Assignment

Valuation Valuation Class Account

0001 3000 300000

0001 3001 300010


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0001 3100 792000

0001 7900 790000

0001 7920 792000

0001 3050 305000

GR/IR Clearing Account (WRX):

The transaction is used for determining GR/IR clearing accounts.GL accounts defined for

this transaction key act as a clearing account between goods receipts and invoice receipts

in a regular procure to pay business process.

At the time of goods receipt the GL account maintained for this transaction key receives a

credit posting, while the corresponding offsetting debit entry is posted to the inventory

account determined by transaction BSX.

At the time of invoice receipt from a vendor the GL account maintained for this

transaction key receives a debit posting while an offsetting credit entry is posted to the

vendor’s payable account (AP).

Purchasing Tax (VST):

The VST (Purchase Input tax) transaction key is used to determine GL accounts to post

(input) tax from purchasing transactions. Usually this tax is included on the invoice

received from the vendor. The general modifier for this transaction refers to the tax code

which in turn enables posting to different GL accounts for purchasing tax codes.

Typically it is sufficient to maintain just one GL account for each valuation grouping

code.

How purchasing functionality to this transaction is related to this transaction:

1. Planned and Unplanned Delivery Costs: Most procurement transactions paying

freight and possibly even customs duty.

Planned costs (FR1, FR3): The transaction keys are used to determine GL accounts

that act as clearing accounts for freight charges and customs duty. These accounts are

credited with freight and customs duty when you post invoices from vendors.

Additional Costs (RUE): In addition to freight and customs duty charges there may be

additional types of delivery costs on a purchase order.

Unplanned Costs (UPF): Even if the delivery costs were planned additional delivery

costs may have incurred that they were not originally planned. These unplanned

delivery costs can be entered when you enter the invoice details in purchasing. It is

possible to maintain only one GL account for valuation grouping code.

2. Price variance accounts: There can be several reasons for price variances in

procurement. For materials valuated at a standard price, price variances can occur

because of example goods receipt against a purchase order where the purchase


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order price is different from the standard price or because of an invoice receipt

where the invoice price is different from the purchase order price and standard

price.

The transaction key used for these entries is PRD(offsetting entry for inventory

posting).This transaction key has the following account grouping codes that lets you

separate out GL account to which price variances are posted based on the type of

business transaction:

Blank (GR and IR purchase orders)

PRF (GR against production Orders)

PRA (Goods issues and other movement)

PRU (transfer postings)

It is possible to configure different price variance accounts for each valuation class.

3. Other differences in Logistics Invoice Verification(LIV):

Difference Write-Off (DIF): If you write off small differences between debit and

credit balances at the time of invoice postings, then you have to maintain tolerance

limits.

Invoice reduction (RKA): Invoice differences can be acceptable for small,

infrequent variances. If the invoices from a vendor are consistently overprices you

can use invoice reduction functionality.

4. Foreign Currency transactions:

Exchange Rate Differences (KDM): At the time of posting a goods receipt the

material price is compared with the corresponding invoice price (if the invoice price

is already received) or the corresponding purchase order price. Any difference in

price that can be attributed to an exchange rate difference are posted to the GL

accounts determined by using transaction key KDM (MM exchange rate difference).

Rounding Differences (KDR): Any rounding difference due to exchange rate

conversion and calculation are posted to GL accounts determined by transaction key

KDR (MM exchange rate rounding difference).

5. Consignment Process:

It related to the procure-to-pay cycle.For the GL account determination for the

consignment process in the order-to-cash cycle, you use condition techniques.

It involves a vendor providing and storing goods on your premises. However you

own the stock and pay for it only when you withdraw a necessary quantity from the

consignment stock stored on your premises. The procurement process is also

applicable for materials that are delivered via a pipeline.


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Consignment Payables (KON): These GL accounts are maintained under this

transaction key between two business transactions: withdrawal from consignment

stock for your usage and settlement of consignment stock.

These accounts act similar to regular GR/IR accounts maintained under transaction

key WRX.

Price Difference (AKO): When the consignment stock is withdrawn, SAP use the

price maintained in the corresponding purchasing info record. If consignment stock

is valuated at a standard price there may be price differences similar to price

differences that arise in regular business transactions.

6. Subcontracting Process: Another variation is a subcontracting order. Typical

process includes:

1. You provide component materials to a subcontracting vendor.

2. The subcontracting vendor performs the ordered services.

3. The vendor delivers the final product to you.

4. The vendor invoices you for service.

The following are different processes for GL account determination in subcontracting

process:

The consumption of component materials is posted when the goods receipt of the final

product from the subcontracting vendor is posted. This entry is posted as a credit to the

component material inventory accounts (determined via BSX) and as a debit to the goods

consumption of component materials.

Consumption of raw materials (GBB): The consumption of raw materials is posted when

the goods receipt of the final product from the subcontracting vendor is posted. This entry

is posted as a credit to the component materials inventory accounts (determined via BSX)

and as a debit to the goods consumption of component materials.

The following transaction key and account grouping combinations are used to determine

GL accounts for debit entry is posted to goods consumption:

1. Transaction Key: GBB(offsetting entry for inventory postings)

2. Account Grouping: VBO (goods consumption for subcontracting).

Goods Receipt of final Product (BSX, BSV):

It generates the debit posting to the corresponding inventory accounts (determined via

BSX) and credit posting to the change in stock account. Transaction key BSV (change in

stock account is used to determine the GL account to which credit entry is posted for

goods receipt for final product.

Subcontracting Variances (FRL, FRN):


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At the time of goods receipt the subcontracting vendor may report for variances in the

component materials consumed. The GL accounts are determined using the transaction

key FRL.

Inventory offsetting accounts (GBB):

There are different business scenarios that post to inventory accounts that you would

want to post to different GL accounts as well.

SAP ERP uses transaction key GBB (offsetting entry for inventory posting) where you

can configure different GL accounts for offsetting entries in different business

transactions.

The transaction key makes extensive use of account grouping codes to differentiate

business transactions.

BSA: Used for posting initial opening stock balances.

AUF: Used for posting goods receipt from a production order and for other settlement

purposes if GL accounts for account grouping code AUA are not configured.

AUA: Used when a production order is settled to financial accounting.

VQP: Used when a sample goods issue to Quality Management is posted without account

assignment.

VQY: Used when a sample goods issue to QM is posted with account assignment.

VBR: Used when internal goods issue (e.g. cost center) occurs as a consumption account.

VAX: Used when a goods issue from non-valuated sales order stock is made, that is, the

sales order item does not carry costs and revenues.

VAY: Used when a goods issue from non-valuated sales order stock is made, that is, the

sales order item carries costs and revenues.

VNG: Used when inventory stock or material quantities are scrapped.

ZOB: Used when a goods receipt without reference to a purchase order is posted, that is,

when the SAP purchasing functionality is not active or not used.

ZOF: Used when a goods receipt without reference to a production order is posted, that

is, when the SAP PP is not active or not used.

Account Grouping Codes:

To define different account grouping codes for the transaction key GBB, you use the

configuration transaction OMWN, which is available at menu path:


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IMG- Materials Management- Valuation and account assignment- Account Determination-

Account determination without wizard- Define account grouping for movement types.

Configuration Column Purpose and Usage

Movement Type This is a classification key that determines the

type of material movements.

Special Stock Indicator This indicator lets you manage inventory of the

same stock separately for different reasons.

Value Update This setting indicates that material is managed

on a value basis.

Quantity Update This setting indicates that material is managed

on a quantity basis. It is similar to managing

stock by value except in this case the material

quantity is updated or not updated.

Movement Indicator This indicator signifies the type of document

that constitutes the basis for this material

movement. Example Goods movement without

reference, for purchase order etc.

Consumption posting indicator This indicator specifies whether and where the

goods movement makes the consumption

posting. Examples of this indicator are posting

to consumption account, an asset, a sales order

or no consumption posting.

Posting String for value A value string indicates the business event that

characterizes the value determination for that

business transaction.

Counter This counter uniquely identifies the key values

of this configuration transaction.

Transaction Key This is the transaction key used for GL account

determination.

Account Modifier This is the field where you specify account

modifier codes for the combination of key

values in that configuration row.

Check account assignment If this indicator is set the system uses the

account assignment specified on the item

screen if available. If the account assignment is

not set or not available then the system uses

automatic account determination.

Configuration Transactions:

It provides a list of the configuration transaction for the account determination objects:

Transaction Code Description


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OBYC Maintain account determination

OMJJ Customize movement types

OMS2 Maintain material type

OMSI Define valuation class

OMSK Maintain and assign account category

reference to material type and valuation class.

OMWD Assign valuation area

OMWM Maintain Valuation Grouping Code

OX14 Maintain valuation level

Tables and Structures:

Table/Structure Description

BEWC Split Valuation configuration

ICURM Valuation Control

MBEW Material Valuation

T001K Valuation Area

T025 Valuation Classes

T025K Account category reference

T030 Standard accounts table

T030A Account transaction key to transaction

group

T030R Account determination rules

T030X Transaction Group

T156M Quantity Strings

T156SC Quantity/value string determination-

client dependent

T156SY Quantity/value string determination-

client independent

T156W Value Strings

T156X Account grouping code

T163K Valuation grouping code


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Automatic Account Determination process in SAP MM:

For every goods movement created for a valuated material, the SAP system can create two types

of documents: a material document and an accounting document. The SAP system follows the

accounting principle that for every material movement, there is a corresponding document that

provides details of that movement. In addition, an accounting document is produced that

describes the financial aspects of the goods movement.

The material document and accounting (FI) document creation depend on the movement type

configuration.

Through the movement type configuration and based on the customizing settings defined for the

account determination the SAP System can do automatic account postings.

To determine the customizing settings for Account Determination you should GO through the

following customizing path: SPRO -> IMG -> Materials Management -> Valuation and

Account Assignment -> Account Determination.

Below sections describe the two ways to define the account determination: Account

Determination Wizard and Account Determination without Wizard.

Account Determination Wizard

It is a proposal from SAP System to define the account determination.

In this step, you can quickly configure the system to make automatic postings by answering the

wizard's questions. The wizard undertakes the functions of the following steps:

1. Defining valuation control


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2. Grouping valuation areas

3. Defining valuation classes

4. Defining account grouping for movement types

5. Purchase account management

6. Configuring automatic postings

You can continue to use these transactions either in conjunction with or instead of the wizard.

Account Determination without Wizard

In this step, you can manually define the settings for account determination in Inventory

Management and Invoice Verification.

Account determination without the wizard enables you to make a more complex configuration

than account determination with the wizard, but requires that you are already familiar with the

principle of automatic account determination in the ERP System.

You can configure account determination with the wizard in the first instance, for example.

Then, if the wizard does not meet your company's account determination requirements, you can

work without it.

You have to work without the wizard if you use the material ledger (this is standard).

Define Valuation Control

It can be configured by the following customizing path: SPRO -> IMG -> Materials

Management -> Valuation and Account Assignment -> Account Determination -> Account

Determination without Wizard-> Define Valuation Control.

It defines if the valuation areas will be grouped by activating the valuation grouping code. This

makes the configuration of automatic postings much easier.

In the standard SAP R/3 System, the valuation grouping code is set to active as default setting.

Firstly, you should create the valuation grouping code.

It corresponds to the transaction OMWM.

OMWM - Valuation Control


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Group together Valuation Areas



Determination without Wizard-> Group together Valuation Areas.

In this step, you assign valuation areas to a valuation grouping code.

Valuation area corresponds to the organization level in which the valuation will occur. Or the

valuation occurs at the plant level or it occurs at the company code level.

The valuation grouping code makes it easier to set automatic account determination. Within the

chart of accounts, you assign the same valuation grouping code to the valuation areas you want

to assign to the same account. The chart of account is a list of accounts.

Within a chart of accounts, you can use the valuation grouping code:

to define individual account determination for certain valuation areas (company codes or plants)

Example:

The valuation areas 0001 and 0002 are assigned to company codes which use the same chart of

accounts. For both valuation areas, however, you would like to define a different account

determination.

You must assign different valuation grouping codes (for example, 0011 and 0022) to both

valuation areas.

to define common account determination for several valuation areas (company codes or plants)

Example:

Valuation areas 0003 and 0004 are assigned to company codes which use the same chart of

accounts. Account assignment for both valuation areas should be similar.

You assign the same valuation grouping code (for example, 0033) to both valuation areas. Thus,

you only have to define account assignment for both valuation areas once.

Requirements:


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You must have activated the valuation grouping code in the step Define valuation control

(OMWM).

You must have defined the valuation level in corporate structure Customizing. The valuation

level is defined in transaction OX14 where you should decide if the valuation will occur at the

plant level or company code level.

You must have assigned each plant to a company code in "Enterprise structure" into the

Customizing. When assigning your plants, the valuation areas are defined automatically. To

assign a plant to company code you should go to transaction OX18.

OX14 - Define Valuation Level

Recommendation:

SAP recommends that you only use a valuation grouping code within a chart of accounts in order

to prevent account determination from becoming confusing.

Default settings

In the standard SAP system, valuation is predefined at plant level. All plants are grouped

together via valuation grouping code 0001.

Group together Valuation Areas corresponds to the transaction OMWD.

OMWD - Account Determination for Valuation Areas

Define Valuation Classes


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Determination without Wizard->Define Valuation Classes.

In this step, you define which valuation classes are allowed for a material type.

If a user creates a material, he/she must enter the material's valuation class in the accounting data

(Accounting 1 and 2 views). The ERP system uses your default settings to check whether the

valuation class is allowed for the material type.

The valuation class is a key to group materials with the same account determination. The

valuation classes depend on the material type. Several valuation classes are generally allowed for

one material type. A valuation class can also be allowed for several material types.

The valuation class determines the G/L accounts which will be updated as result of the goods

movement generated for the material.

The valuation class makes it possible to:

Post the stock values of materials of the same material type to different G/L accounts

Post the stock values of materials of different material types to the same G/L account

MM03 - Display - Acoount 1 view

The link between the valuation classes and the material types is set up via the account category

reference.

The account category reference is a combination of valuation classes. Precisely one account

category reference is assigned to a material type.

Requirements

You must have defined your material types.

You must have defined the chart of accounts.


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You must have agreed with Financial Accounting which materials are assigned to which

accounts.

Default settings

In the standard SAP R/3 System, an account category reference is created for each material type.

The account category reference is, in turn, assigned to precisely one valuation class. This means

that each material type has its own valuation class.

OMSK – Account Category reference/valuation class

OMSK – Account category reference button

OMSK - Valuation Class Button


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OMSK - Material Type/Account category reference

Account Grouping (account modifier) for Movement Types

Using this function, you can assign an account grouping to movement types. The account

grouping is a finer subdivision of the transaction/event keys for the account determination.

The account grouping is provided for the following transactions keys:

GBB (offsetting entry for inventory posting)

PRD (price differences)

KON (consignment liabilities)

The account grouping in the standard system is only active for transaction key GBB (offsetting

entry for inventory posting).

OMWN - Define Account Grouping for Movement Types


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Purchase Account Management

It is used to attend legal requirement from specific countries (France, Italy, Finland, Belgium,

Spain and Portugal). In this step, you will define a specific valuation and a separate accounting

document for Purchase Order postings.

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.

Automatic Postings

Postings are made to G/L accounts automatically in the case of Invoice Verification and

Inventory Management transactions relevant to Financial and Cost Accounting.

Example: Posting lines are created in the following accounts in the case of a goods issue for a cost center:

Stock account

Consumption account

Search for relevant accounts

When entering the goods movement, the user does not have to enter a G/L account, since the

ERP system automatically finds the accounts for each posting based on the following data:

Chart of accounts of the company code

If the user enters a company code or a plant when entering a transaction, the ERP system

determines the chart of accounts which is valid for the company code.

You must define the automatic account determination individually for each chart of accounts.

Valuation grouping code of the valuation area


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You must define the automatic account determination individually for every valuation grouping

code within a chart of accounts. It applies to all valuation areas which are assigned to this

valuation grouping code.

If the user enters a company code or a plant when entering a transaction, the system determines

the valuation area and the valuation grouping code.

Transaction/event key

You do not have to define these transaction keys, they are determined automatically from the

transaction (invoice verification) or the movement type (inventory management). In this step,

you can only insert the account number for each transaction key.

Account grouping (modifier) (only for GBB, PRD and KOM)

Since the transaction key GBB is used for different transactions (for example, goods issue,

scraping, physical inventory), which are assigned to different accounts (for example,

consumption account, scrapping, expense/income from inventory differences), it is necessary to

divide the posting transaction according to a further key: account grouping code.

Valuation class of material or (in case of split valuation) the valuation type

The valuation class allows you to define automatic account determination that is dependent on

the material.

You can achieve this by assigning different valuation classes to the materials and by assigning

different G/L accounts to the transaction key for every valuation class.

Default settings:

G/L account assignments for the charts of accounts INT and the valuation grouping code 0001

are SAP standard.

OMWB - Configure Automatic Postings


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OBYC - Maintain FI configuration


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Account determination settings

You should go to transaction OMWB and click on ‘simulation’ button. Then, insert the affected

material, the correspondent plant and the movement type. After that, click on ‘account

assignments’ button and you will see the simulation’s result.

OMWB - Simulation


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Important:

Report DFKB1INT: run it in transaction SE38. It is used to shows us the possible values for the

account determination customizing settings. If the customer changed something here, it is not

standard anymore.

References:

1. http://help.sap.com/

2. Account determination in SAP by Manish Patel

3. http://www.sapstudymaterials.com/2007/12/sap-mm-automatic-

account-determination_16.html

http://help.sap.com/

http://www.sapstudymaterials.com/2007/12/sap-mm-automatic-account-determination_16.html

http://www.sapstudymaterials.com/2007/12/sap-mm-automatic-account-determination_16.html

Documents

Account Determination in SAP