Page 1
Account Determination in SAP
Neha Anand Page 1
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.
Page 2
Account Determination in SAP
Neha Anand Page 2
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:
Page 3
Account Determination in SAP
Neha Anand Page 3
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.
Page 4
Account Determination in SAP
Neha Anand Page 4
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
Page 5
Account Determination in SAP
Neha Anand Page 5
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.
Page 6
Account Determination in SAP
Neha Anand Page 6
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.
Page 7
Account Determination in SAP
Neha Anand Page 7
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.
Page 8
Account Determination in SAP
Neha Anand Page 8
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
Page 9
Account Determination in SAP
Neha Anand Page 9
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
Page 10
Account Determination in SAP
Neha Anand Page 10
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
Page 11
Account Determination in SAP
Neha Anand Page 11
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.
Page 12
Account Determination in SAP
Neha Anand Page 12
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):
Page 13
Account Determination in SAP
Neha Anand Page 13
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:
Page 14
Account Determination in SAP
Neha Anand Page 14
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
Page 15
Account Determination in SAP
Neha Anand Page 15
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
Page 16
Account Determination in SAP
Neha Anand Page 16
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
Page 17
Account Determination in SAP
Neha Anand Page 17
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
Page 18
Account Determination in SAP
Neha Anand Page 18
Group together Valuation Areas
It can be configured by the following customizing path: SPRO -> IMG -> Materials
Management -> Valuation and Account Assignment -> Account Determination -> Account
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:
Page 19
Account Determination in SAP
Neha Anand Page 19
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
Page 20
Account Determination in SAP
Neha Anand Page 20
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 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.
Page 21
Account Determination in SAP
Neha Anand Page 21
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
Page 22
Account Determination in SAP
Neha Anand Page 22
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
Page 23
Account Determination in SAP
Neha Anand Page 23
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
Page 24
Account Determination in SAP
Neha Anand Page 24
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
Page 25
Account Determination in SAP
Neha Anand Page 25
Page 26
Account Determination in SAP
Neha Anand Page 26
OBYC - Maintain FI configuration
Page 27
Account Determination in SAP
Neha Anand Page 27
Page 28
Account Determination in SAP
Neha Anand Page 28
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
Page 29
Account Determination in SAP
Neha Anand Page 29
Page 30
Account Determination in SAP
Neha Anand Page 30
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