Link Between SAP SD, MM & FI. tables VBAK,VBAP, Tcode for creation VA21,VA22,VA23. Hi Vinod, Thanks for sharing your knowledge. Good document. Production Planning for getting the requirements of material. Note: G/L accounts can be defined at valuation class level along with other parameters. xk01(create), xk02(change) , xk03(display). Also invoice verification is used further along the process to check that the invoice you send to your … Wow!!! Accounting entry are posted to Financial Module due to the integration of FI and MM integration through transaction OBYC. In below screenshot, you can see all parameters are same for movement type 201 and 261 except account modification. Automatic Account DeterminationMM/FI Integration in SAP MMFor any doubts please contact me on +91 - 9309151143SAP MM Training Nikhil Machavoulu Whenever you create a delivery with reference to a sales order, goods movement takes place in the bacgground. FI-SD INTEGRATION. General ledger accounts are set as per the different parameters of valuation area, movement type and transaction type that is created with respect to the movement type. Process Flow in MM . Step 1 Receipt of enquiry from customers (only SD is involved) Step 2 Sending quotations (SD) Step 3 Receipt of sales order (SD) Step 4 Delivery of finished goods (SD, MM and FI are involved) Entry will be Change in stock a/c Dr Finished goods inventory a/c Cr. Transaction key/event and account modifier is identified based on movement type and other standard attributes in step 1 (OMWN), 3. Examples of some are given down below:Various account keys are available Let us now maintain for the table entry account key. G/L account assignment and G/L account assigned to transaction event key (OBYC). You should only submit an answer when you are proposing a solution to the poster's problem. SAP FI (Financial accounting) is the basic module and very important module in SAP. SAP PS system is tightly integrated with various other SAP modules : SAP MM - Material Management . Understanding procure to pay (PTP) cycle and accounting document at each step. Hello Friends, I have provided the video about Automatic Account Determination which is the most important topic in SAP. Stock of a material owned by a company is an asset to the company. Sales & Distribution  For shipping of material to customer. When PO is created : ... (Goods Receipt, Goods Issue, etc) 2. There are certain simple things you need to understand to know how this integration happens. Please share your valuable feedback, thoughts and add additional information/corrections if any , MM-FI integration: Account determination simulator. Such errors are mostly seen during go live/while posting to new materials due to missing G/L account maintenance or due to incorrect valuation class in material master data. If you want to know based on what details XXX account is determined, simply give that G/L in T030 table in field KONTS. Valuation area defines the organization level at which materials are valuated. Tcode for creation VA11,VA12,VA13. User defined keys can also be defined and respective account determination settings can be maintained. 1. SAP FI Integration with other modules means how the system maps with different modules and how the effect of those is passed into FI Module. Few examples could be: BSX- Stands for Inventory Posting Debit GBB-Stands for Goods Issue/Scrapping/delivery of goods etc PRD- Stands for … This whitepaper tries to bring more clarity on what is split valuation about and the approach to implement it in SAP. Sharing knowledge only improves our knowledge further. this blog is to write reviews and notes about sap finance and controlling (fi/co) books, articles etc. Clears up a lot of questions. In below example, five valuation areas are assigned to same valuation grouping code. Understanding MM FI integration in very simple terms. And post to a different GL code. Valuation at plant level: All materials are valuated at plant level. These two modules FI and SD is very much integrated with MM modules. SAP MM and FI Integration. Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total. Most of us are comfortable with SD-FI-COPA integration concepts as it is easy to correlate and understand. If you have an answer for this question, then please use the Your Answer form at the bottom of the page instead. 7. FI MM settings are maintained in transaction code OBYC. The Best Four of them are: Chart of Accounts FI-MM Integration. Wonderful document. In SAP you will always get integration with other modules. If you go to G/L account maintenance for this key, you would see the same fields. It is the process which has strong integration between main SAP modules MM … The following are the important FI MM integration related accounting entries in SAP. Example: 100 (Qty) X 20 (PO price) = 2,000 . 3. 2. Step 1 Generating purchase requisition( PP-MM involved) Step 2 Making inquiries (MM) Step 3 Raising purchase order (MM) Step 4 Release of purchase order ( MM) Step 5 Goods received from vendor ( MM and FI ) Entry will be Raw Material Inventory a/c Dr. GR/IR clearing a/c Cr. 3. When you create sales order in SD, all the details of the items are copied from Material master of MM. This movement is configured in MM. We can further drill down based on the filtered entries. Summary Many organizations today arrive at the different valuation for same material based on various factors crucial to their business. SAP has delivered account determination […] When you create sales order in SD, all the details of the items are copied from Material master of MM. THIS BLOG IS REALLY HELPFUL FOR SAP PROFESSIONALS AND STUDENTS PREPARING FOR SAP FICO CERTIFICATIONS & TRAINING. Structure In contrast to standard FI tax codes, these tax codes contain additional information that is required for tax calculation according to Brazilian legal requirements: Finance  For Invoice verification process & Payment to vendor. This gives the possible combination of entries where this G/L is assigned. While you create inbound/outbound delivery with reference to a sales order, the shipping … This is defined by standard SAP. Thanks a lot. Step 1 Generating purchase requisition( PP-MM involved) Step 2 Making inquiries (MM) Step 3 Raising purchase order (MM) Step 4 Release of purchase order ( MM) Step 5 Goods received from vendor ( MM and FI ) Entry will … It is highly required to configure automatic postings in Financial Accounting and test this configuration to make sure that postings are made to the correct GL accounts. MRP and availability check related data is also taken from MM although you control this data in SD also. 2. What an Insight. I see almost no postings during US day time. Very useful blog indeed! EG: If we go to MIGO, default movement type 101 is displayed by system. What are the real time MM integration issues with the other modules? There are many such links between SD and MM. But, when it comes to MM-FI integration, many of us find difficulties in understanding the concepts and account determination process. This is defined in Rules for the transaction key. Transaction key which we see in OBYC is determined based on the movement type. It really helpful me and cleared lot of question. EG: Valuation area 1 and 2 are required to be posted to same G/L account, these are grouped to valuation grouping code ABC and G/L is determined based on valuation grouping code and valuation class. Process Flow in SD. Before using valuation grouping code, it needs to be activated in OMWM. SAP has delivered account determination simulation tool. This process uses a purchase order (which is sent to your vendor). Looking at MM and SD interaction first, take the scenario of a third party order process. To create a sales order we need purchase order number and custmer number. Example: Posting lines are created in the following accounts in the case of a goods issue … How FI and MM are inter-related in SAP? So please go thru all the SDN threads. SAP has provided two options for valuation. There are many such links between SD and MM. Also, this movement hits some G/L account in FI. If system can’t find any account for the found attributes, stock posting can’t be done and system through clear error stating for which combination of attributes, G/L account is missing. So basically the FI-Sd integration is for picking up the revenue accounts or the discounts and surcharges.The account key determines whether it is a revenue or a surcharge or discount. This is a great contribution to the community. Valuation at plant level: All materials are valuated at plant level. Few examples could be: BSX- Stands for Inventory Posting Debit GBB-Stands for Goods Issue/Scrapping/delivery of goods etc … Total valuated stock = Stock in unrestricted use + Stock in transit between storage locations/warehouses of a plant + Stock in quality inspection. While you create inbound/outbound delivery with reference to a sales order,the shipping point determination takes place with the help of the loading group, plant data, shipping conditions etc. ABAPers are there to essential do some bespoke development. 1. SD module is highly integrated with the other modules in SAP. Vinodh sir are you fico consultant or mm consultant sir?? 1. As we know about the module MM, FI and SD in SAP ERP. For the identified transaction or event, check if valuation grouping code is active or not in OBYC (Click the rules button for the transaction key). FINANCE MODULE CONFIGURATION MANUAL MM-FI Integration IMPORTANT SAP NOTES ON CONFIGURATION OF MM-FI ACCOUNT DETERMINATION & AUTOMATIC POSTINGS What are automatic postings? House bank, Bank key, Account ID; What configuration (FBZP) needed for executing F110 in sap ? Basically STO is divided in to three types, http://www.sapcustomization.com/document/fi_mm_integration.pdf, http://www.sap-img.com/sap-sd/link-between-sap-sd-mm-and-fi.htm, http://www.financialsforum.com/showthread.php?t=26, http://www.sap-basis-abap.com/mm/sap-mm-and-fi-integration.htm, mm is integrated with FI and SD with FI it is integrated by money i.e. Materials of same material type to different G/L account (Different valuation class is assigned in different plants for the same material), Materials of different material type to same G/L account (Same valuation class is assigned to materials of different material type), Before using valuation grouping code, it needs to be activated in, Valuation grouping code is assigned to valuation area in t-code, EG: During Goods issue, offsetting G/L is determined from transaction key GBB. Thank you. MRP and availibility check related data is also taken from MM although you control this data in SD also. It's very informative and I really liked the way you explained. Awesome article, Please also share the FI-SD integration article, for this detialed informaition... i may need this or similar kind of information in near future. FI-MM: The integration between FI-MM happens in T-code OBYC. Looking at MM and SD interaction first, take the scenario of a third party order process. Know someone who can answer? For Account Determination 5 major characteru2019s are as follow: 5.Account Grouping Code/Account Modifier. Also, please make sure that you answer complies with our Rules of Engagement. After reading this tutorial, you will learn about the integration points between MM and FI (there are several of them) and see an example of the integration in action. Its a very useful document, really helpful for me. Movement type enables the system to find predefined posting rules determining how the stock and consumption accounts are to be posted. Not much in to SCN now a days due to time constraints. When material document is posted with these movement types, offsetting account is determined from transaction key GBB based on account modifier and valuation class. If we want to test inventory account determination, neither you need to do actual material posting in the system nor go through master data and customization to identify the accounts. SAP FI-MM integration is one of the important and advance topics in SAP. Materials of same material type to different G/L account (Different valuation class is assigned in different plants for the same material), 2. Valuation grouping code activation is checked from OMWM, 4. All possible goods movements are already defined by standard SAP, EG: Movement type 101 refers goods receipt. Thank you Sir for providing this wonderful document. If system can’t find any account for the found attributes, stock posting can’t be done and system through clear error stating for which combination of attributes, G/L account is missing. SAP FI-MM Integration Entries The following are the important FI MM integration related accounting entries in SAP. This defines the type of material movement from one place to other. The summary at the last of the document is enough to revise the whole document. Material type is defined during material master data creation. Transaction key/event and account modifier is identified based on movement type and other standard attributes in step 1 (OMWN), Valuation grouping code activation is checked from OMWM, If active, for the given valuation area, valuation grouping code is identified from OMWD, For the identified transaction or event, check if valuation grouping code is active or not in OBYC (Click the rules button for the transaction key). Account determination details are stored in table T030. Transaction keys are used to determine general ledger accounts used by the system. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources.