Advanced Automatic Account Determination in SAP MM

In SAP MM, when an organization procures goods and services from a vendor, they need to ensure that the cost is recorded in the appropriate general ledger (G/L) account. Remembering and inputting the correct G/L account every time during procurement can be challenging. To simplify this process, the SAP system can be configured to automatically determine the correct G/L account for posting. The G/L account is posted both when goods receipt is completed and during invoice verification clearing. Account determination encompasses various aspects related to this process.

1. Establish Valuation Control.

2. Consolidate Valuation Areas into groups.

3. Specify Valuation Classes.

4. Set up Automatic Posting configuration.

Define Valuation Control

Valuation areas can be grouped together and can be assigned to one grouping code, if they belong to the same G/L account. For example, different plants under one company code can be assigned the same valuation grouping code and vice versa. Before this, valuation grouping code must be activated and this can be done by following the steps given below.

Activating Valuation Grouping Code: The Path to Follow

To access the account determination settings in SAP MM, you can follow these steps: go to IMG, then navigate to Materials Management, Valuation and Account Assignment, Account Determination, and finally Account Determination without Wizard. From there, you will find the option to define valuation control.

In the initial step, navigate to the Display IMG screen and choose Define Valuation Control using the provided path.

Proceed to Step 2 by choosing the Valuation grouping code and then click on Save. This will activate the Valuation grouping code.

Grouping Valuation Areas Automatically in SAP MM

To assign the valuation area and valuation grouping code to a company code in SAP MM, you can follow the steps outlined below.

Path to Define Valuation Area and Valuation Grouping Code

To access the account determination settings in SAP MM, go to IMG and navigate through Materials Management, Valuation and Account Assignment, Account Determination, and then select Account Determination without Wizard. From there, you can choose to group together valuation areas.

To begin, navigate to the Display IMG screen and choose to group valuation areas together as instructed in the given path.

In the second step, you have the option to create a valuation area and assign it a grouping code. This can be done by selecting the relevant company code and saving your changes. By doing so, both the valuation area and its corresponding grouping code will be established for that particular company code.

Configuring automatic account assignment in SAP: A step-by-step guide

In OMSK, there is a valuation class with a reference to the account category. OMWM represents an active valuation grouping code. OMWN refers to an active movement type with a G/L account. Lastly, OMWD indicates an active valuation area. There are also additional items in this list.

List:

– Valuation Class in OMSK with Account Category Reference

– Active Valuation Grouping Code in OMWM

– Active Movement Type with G/L Account in OMWN

– Active Valuation Area in OMWD

– More items

Define Valuation Classes

The valuation class is used to classify the general ledger (G/L) account based on the type of material. This means that different G/L accounts will be assigned for raw materials and finished materials, as their costs vary. In addition to the valuation class, an account reference is also kept. To define both the account reference and valuation class, you can follow these steps.

Path to Define Account Reference and Valuation Class

Go to IMG, then navigate to Materials Management and select Valuation and Account Assignment. From there, choose Account Determination followed by Account Determination without Wizard. Finally, click on Define Valuation Classes.

In the Display IMG screen, choose Define Valuation Classes by following the path mentioned above.

Proceed to Step 2 by selecting the Account Category Reference button.

Step 4 – Enter the name and description of ARef (Account reference).

Step 5 – Next, navigate to the same screen and select the Valuation Class option.

Step 7 – Enter the valuation class name, ARef (Account reference), and a brief description for the valuation class.

Step 8 – Next, navigate to the same screen and select Material Type/Account Category Reference.

Step 9 – In this step, you can establish a connection between material types and their corresponding account references (ARef). Remember to save the changes. This will enable the posting of general ledger accounts for various material types.

Creating an account determination in SAP MM: A step-by-step guide

To configure automatic postings, follow these steps:

1. Access the Display IMG screen and navigate to Configure Automatic Postings.

2. Select Account Assignment from the options provided.

3. In this section, you can maintain transactions that require automatic account determination.

4. Remember to save your changes by clicking on the Save button.

Automatic Posting Configuration in SAP MM

The determination of the G/L account is done automatically for every transaction in SAP. This occurs because the SAP system has been configured to enable automatic postings. To configure automatic posting, you can follow the steps outlined below..

Automatic Posting Configuration in SAP MM: A Step-by-Step Guide

To set up automatic account determination in SAP MM, navigate to the IMG menu and select Materials Management. From there, go to Valuation and Account Assignment followed by Account Determination. Next, choose Account Determination without Wizard and proceed to Configure Automatic Postings.

To begin, navigate to the Display IMG screen and access the Configure Automatic Postings option using the given pathway.

Step 3 – In this step, you can update the transaction for which automatic account determination is applicable. Save the changes made. The configuration for automatically posting transactions has now been set up.

The meaning of OBYC in SAP

OBYC is an abbreviation for “Order By-Product Configuration” in SAP. It serves as a tool to configure products and services based on orders, including custom products, services, and contracts. OBYC provides software solutions for managing customer contacts and business operations.

What is the aim of account determination?

The account determination key plays a crucial role in SAP MM as it determines the accounts that should be posted in Financial Accounting during asset transactions. This key is defined for each chart of accounts and depreciation area, which are considered automatic posting areas within the chart of depreciation. By assigning an account determination key to these areas, businesses can ensure accurate and consistent accounting entries for their assets.

In SAP MM, the account determination process involves mapping various transaction types or events to specific general ledger (GL) accounts. These transaction types include goods receipt, invoice verification, stock transfer, and more. The system uses predefined rules based on factors such as material type, valuation class, movement type, and plant to determine the appropriate GL accounts for each transaction.

Understanding Account Determination in SAP: An Illustrative Example

Account determination in SAP MM allows the system to automatically assign appropriate general ledger accounts for fixed asset transactions. In SAP Business One, you have the flexibility to define multiple account determination sets. This feature enables efficient and accurate accounting for your fixed assets.

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