SAP MM Automatic Account Determination There are many transactions in Material Management (MM) that relevant for Accounting. These transactions must be recorded in accounting documents that contain the postings made to the G/L accounts in Financial Accounting (FI). The mostly used MM transactions that relevant for FI can be seen at Accounting Journals of SAP Material Management (MM) Transactions. For those transactions, as far as possible, the SAP R/3 System should determine automatically the G/L account numbers that are involved in the accounting journal. By doing so, we can minimize the inputs and error possibilities made by MM end-users who perform the transactions as they don’t determine the G/L account numbers. We can do this by Automatic Account Determination process in MM configuration (T-code: SPRO). The automatic account determination process must be done together with Accounting Department. The influencing factors that determine how SAP choose the G/L account numbers that are involved in the accounting journal for MM transactions are: Chart of accounts of the company code We must assign a chart of account to each company code. Several company codes can use the same chart of accounts. This process must be done in FICO configuration. You can learn how to configure FICO module in its relation with MM module at SAP FICO minimal configuration for MM posting. SAP R/3 determines the chart of account affected by MM transaction from the company code or plant entered by user when performs a transaction.We must define the automatic account determination individually for each chart of accounts. Valuation grouping code of the valuation area See Material Valuation to know more about valuation area. The Valuation grouping code is a key to differentiate account determination by valuation area within a chart of account.
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SAP MM Automatic Account Determination
There are many transactions in Material Management (MM) that relevant for Accounting. These
transactions must be recorded in accounting documents that contain the postings made to the G/L
accounts in Financial Accounting (FI). The mostly used MM transactions that relevant for FI can be
seen at Accounting Journals of SAP Material Management (MM) Transactions.
For those transactions, as far as possible, the SAP R/3 System should determine automatically the
G/L account numbers that are involved in the accounting journal. By doing so, we can minimize the
inputs and error possibilities made by MM end-users who perform the transactions as they don’t
determine the G/L account numbers.
We can do this by Automatic Account Determination process in MM configuration (T-code: SPRO).
The automatic account determination process must be done together with Accounting Department.
The influencing factors that determine how SAP choose the G/L account numbers that are involved
in the accounting journal for MM transactions are:
Chart of accounts of the company code
We must assign a chart of account to each company code. Several company codes can
use the same chart of accounts. This process must be done in FICO configuration. You
can learn how to configure FICO module in its relation with MM module at SAP FICO
minimal configuration for MM posting.
SAP R/3 determines the chart of account affected by MM transaction from the company
code or plant entered by user when performs a transaction.We must define the
automatic account determination individually for each chart of accounts.
Valuation grouping code of the valuation area
See Material Valuation to know more about valuation area. The Valuation grouping code
is a key to differentiate account determination by valuation area within a chart of
account. Valuation grouping code is also called Valuation modification.
SAP screenshots of How to activate the valuation grouping code(T-code:
SPRO/OMWM):
SPRO menu:
IMG - Materials Management-Valuation and Account Assignment - Account
Determination - Account Determination Without Wizard-Define Valuation Control
We do not have to define these transaction keys, they are determined automatically from
the transaction (invoice verification) or the movement type (inventory management). All
we have to do is assign the relevant G/L account to each posting transaction.
You can see list of transaction key here.
Account grouping(only for transaction: offsetting entries, consignment liabilities, and
price differences)
Account grouping is a key that allows us to subdivide number assignments for each
transaction key in account determination.
Account grouping is also called general modification. Since the posting transaction
"Offsetting entry for inventory posting" is used for different transactions (for example,
goods issue, scrapping, 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.
An account grouping is assigned to each movement type in inventory management
which uses the posting transaction "Offsetting entry for inventory posting". Under the
posting transaction "Offsetting entry for inventory posting", we must assign G/L accounts
for every account grouping, that is, assign G/L accounts.
If we wish to post price differences to different price difference accounts in the case of
goods receipts for purchase orders, goods receipts for orders, or other movements, we
can define different account grouping codes for the transaction key.
Using the account grouping, we can also have different accounts for consignment
liabilities and pipeline liabilities.
You can see list of account grouping here.
Configure Automatic Postings
Automatic Postings are postings made to G/L accounts automatically in the case of Invoice
Verification and Inventory Management transactions relevant to Financial and Cost Accounting.
When entering the goods movement, the user does not have to enter a G/L account, since the SAP
R/3 System automatically finds the accounts to which postings are to be made using the influence
factors as explain above.
SAP Screenshots of how to configure automatic posting (T-code: SPRO/OBYC):
Posting made in the case of goods receipt (GR) to purchase order (PO):
Inventory accountGR/IR Clearing
Account
500 500
We need to update the BSX transaction key (Inventory posting) with the GL code Inventory account.SPRO menu:IMG - Materials Management-Valuation and Account Assignment - Account Determination - Account Determination Without Wizard - Configure Automatic Posting.