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FI-MM-SD Integration

How do you go about setting the FI MM account determination ?
FI MM settings are maintained in transaction code OBYC. Within these
there are various transaction keys to be maintained like BSX, WRX,
GBB, PRD etc. In each of these transaction keys you specify the GL
accounts which gets automatically passed at the time of entry.
Few examples could be: BSX- Stands for Inventory Posting Debit
GBB-Standsfor Goods Issue/Scrapping/delivery
of goods etc
PRD- Stands for Price Differences.

At what level is the FI-MM, FI-SD account determination settings?
They are at the chart of accounts level.

What are the additional settings required while maintaining or
creating the GL codes for Inventory accounts?
In the Inventory GL accounts (Balance sheet) you should switch on the
‘Post automatically only’ tick. It is also advisable to maintain the
aforesaid setting for all FI-MM accounts and FI-SD accounts. This helps
in preserving the sanctity of those accounts and prevents from having
any difference between FI and MM, FI and SD.

What is Valuation and Account assignment in SAP?
This is actually the link between Materials Management and Finance.
The valuation in SAP can be at the plant level or the company code level.
If you define valuation at the plant level then you can have different
prices for the same material in the various plants. If you keep it at the
company code level you can have only price across all plants.
Valuation also involves the Price Control .Each material is assigned to a
material type in Materials Management and every material is valuated
either in Moving Average Price or Standard Price in SAP. These are the
two types of price control available.

What is Valuation Class?
The Valuation Class in the Accounting 1 View in Material Master is the
main link between Material Master and Finance. This Valuation Class
along with the combination of the transaction keys (BSX,WRX,GBB,PRD )
defined above determine the GL account during posting.
We can group together different materials with similar properties by
valuation class. Eg Raw material,Finsihed Goods, Semi Finished
We can define the following assignments in customizing :
All materials with same material type are assigned to just one valuation
Different materials with the same material type can be assigned to
different valuation classes.
Materials with different material types are assigned to a single valuation

Can we change the valuation class in the material master once it is
Once a material is assigned to a valuation class in the material master
record, we can change it only if the stocks for that material are nil. If the
stock exists for that material, then we cannot change the valuation class.
In such a case, if the stock exists, we have to transfer the stocks or issue
the stocks and make the stock nil for the specific valuation class. Then
only we will be able to change the valuation class.

Does the moving average price change in the material master during
issue of the stock assuming that the price control for the material is
Moving Average?
The moving average price in the case of goods issue remains unchanged.
Goods issue are always valuated at the current moving average price. It
is only in goods receipt that the moving average price might change. A
goods issue only reduces the total quantity and the total value in relation
to the price and the moving price remains unchanged. Also read the
next question to learn more about this topic.

If the answer to the above question is ‘Yes’, then list the scenario in
which the moving average price of the material in the material
master changes when the goods are issued.
The moving average price in the material master changes in the scenario
of Split Valuation which is sometimes used by many organizations. If the
material is subject to split valuation, the material is managed as Several
partial stocks and each partial stock is valuated separately.
In split valuation, the material with valuation header record will have ‘v’
moving average price. This is where the individual stocks of a material
are managed cumulatively. Here two valuation types are created, one
valuation type can have ‘v’ (MAP) and the other valuation type can have
‘s’(standard price).
In this case, whenever the goods are issued from the respective valuation
types, always the MAP for the valuation header changes.

What is the accounting entry in the Financial books of accounts
when the goods are received in unrestricted use stock? Also
mention the settings to be done in the ‘Automatic postings’ in SAP
for the specific G/L accounts.
On receipt of the goods in unrestricted-use stock, the Inventory account
is debited and the GR/IR account gets credited. In customization, in the
automatic postings, the Inventory G/L account is assigned to the
Transaction event key BSX and the GR/IR account is assigned to the
Transaction event key WRX.

If a material has no material code in SAP, can you default the G/L
account in Purchase order or it has to be manually entered?.
If a material has no material code in SAP, we can still, default the G/L
account with the help of material groups. We can assign the valuation
class to a material group and then in FI-automatic posting, we can
assign the relevant G/L account in the Transaction event key. The
assignment of a valuation class to a material group enables the system to
determine different G/L accounts for the individual material groups.

What is the procedure in SAP for Initial stock uploading? Mention
the accounting entries also.
Initial stock uploading in SAP from the legacy system is done with
inventory movement type 561( a MM transaction which is performed).
Material valuated at standard price: For a material valuated at
standard price, the initial entry of inventory data is valuated on the basis
of standard price in the material master. If you enter an alternative value
at the time of the movement type 561, then the system posts the
difference to the price difference account.
Material valuated at moving average price: The initial entry of
inventory data is valuated as follows : If you enter a value when
uploading the initial data, the quantity entered is valuated at this price.
If you do not enter a value when entering initial data, then the quantity
entered is valuated at the MAP present in the material master.
The accounting entries are: Inventory account is debited and Inventory
Historical upload account is credited.

How do you configure FI-SD account determination?
The FI-SD account determination happens through an access sequence.
The system goes about finding accounts from more specific criteria to
less specific criteria.
This is the sequence it would follow:
1) It will first access and look for the combination of Customer
accounts assignment grp/ Material account assignment grp/
Account key.
2) If it does not find the accounts for the first combination it will look
for Customer account assignment grp and account key
3) Furthermore, if it does not find accounts for the first 2 criteria’s
then it will look for Material account assignment grp/Account key.
4) If it does not find accounts for the all earlier criteria’s then finally it
will look for Account key and assign the GL code.
Thus posting of Sales Invoices into FI are effected on the basis of a
combination of Sales organization, Account type, or Customer and
Material Account assignment groups and following are the options
a. Customer AAG/Material AAG/Account type
b. Material AAG/Account type
c. Customer AAG/Account type
For each of this option you can define a Gl account. Thus the system
uses this gl account to automatically pass the entries.


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