Configuring Automatic Account

Determination

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What is Automatic Account Determination? There are many FI transactions that are

posted automatically Goods receipt Goods withdrawal (issue) Variances (production / etc…)

Account determination is configured via the IMG

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Valuation Control To perform automatic posting, valuation

control must be enabled from the IMG Materials Management Valuation and Account Assignment Account

Determination Account Determination without Wizard Define Valuation Control

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Valuation Grouping Code

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Valuation Class It’s the assignment of a material to a

group of G / L accounts It’s used to determine which accounts are

updated for a particular type of transaction (goods movement for example)

Prerequisites Material types must have been defined COA must be created

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Managing Valuation Classes It’s a three-step process

Create account category references, if necessary

Create valuation classes and assign them to account categories

Assign account category to material type

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Managing Valuation Classes

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Managing Valuation Classes Account categories exist for reference

We always create a valuation class by referencing an account category

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Managing Valuation Classes Create valuation classes and assign

them to account groups

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Managing Valuation Classes Assign material types to account

categories

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Automatic Account Determination (1) It’s a stepwise hierarchical process that

the systems figures out how to automatically post a transaction to a GL account

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Automatic Account Determination (2) By company code COA

Automatic account determination must be defined individually for each chart of accounts

The systems determines the COA based on the company code or plant

By valuation grouping code or valuation area Use to apply different valuation rules to

different company codes By transaction key (these are

predefined)

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Automatic Account Determination (3) By account group

We will not get into this By valuation class

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Account Determination (Implementing) Create a valuation grouping code and

assign it to a company and valuation area

Establish automatic postings

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Configure Automatic Postings (1) Accounts are organized by transaction

types Always based on a COA

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Configure Automatic Postings (2) Associate a valuation class (and group)

with a G / L account

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Configure Automatic Postings

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What’s happening here? BSX (Inventory Posting) contained the

inventory valuation classes and the inventory (asset) account

GBB contains the corresponding expense accounts for the offsetting entry

WRX goods receipt

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Transaction Keys These are different than a transaction

code and determine what is “happening” to the material Received from vendor Goods issued from warehouse

There are hundreds of these

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Configure Cost / Price Difference These are the price variance expense /

revenue accounts

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The GR / IR Account It’s Transaction Key WRX

Set the GR / IR account to the Raw materials Semi-finished goods And finished goods valuation classes

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Price Changes Telling the system whether a price

change in the previous period should be “carried over” to the current period Set for the entire company code

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Tax Defaults for Invoice Verification