SAP Integration Entries for FI-MM

Fi Mm Integration Entries In Sap

  • A ‘Plant’ is an operating area or a branch or a location within a company. Each ‘Plant’ is assigned to a single ‘company code’. A ‘company code’ can have several ‘Plants’
  • IMG Path: Enterprise Structure -Definition – Logistics general – Define, copy, delete, check plant

SAP Definition of Storage Location

A storage location is where inventory is physically stored in a facility. A plant can have multiple storage locations within it.

The purchasing organization serves as the primary level of consolidation for purchasing statistics, following the client organizational unit.

Prior to assigning a plant to a company code, it is necessary to establish the Valuation Level. The valuation level determines how materials are valued within the system.

Navigate to the IMG Path: Enterprise Structure – Assignment – Material Management – Assign purchasing organization to company code.

Purchase Organization Assignment to Plant in SAP

To integrate the Financial Management (FI) and Materials Management (MM) modules in SAP, you need to follow a specific path in the IMG (Implementation Guide). This path can be found under Enterprise Structure, specifically in the Assignment section of Logistics General. Here, you will find an option to assign a purchasing organization to a plant. By completing this step, you establish a connection between procurement activities and specific plants within your organizational structure.

Purchasing Groups

Navigate to the following path in the SAP system: SPRO – Material Management – Purchasing – Create Purchasing Group.

A Purchasing group consists of individuals or a team responsible for managing specific materials or a collection of materials.

Material Type Attributes Definition

Material Type is a classification used in SAP ERP to group materials together based on their similar characteristics. It is mandatory for every material master record created in the system to be associated with a specific material type.

Navigate to the configuration path in SAP: Logistics – General – Material Master – Basic Settings- Material Types- Define Attributes of Material Types.

The table displays various material types along with their corresponding descriptions. The first type, ROH, refers to raw materials. The second type, FERT, represents finished goods. Lastly, HALB stands for semi-finished goods.

SAP Plant Parameter Creation

In this step, we set the tolerance limits for goods receipts. When processing a goods receipt, the system checks each item to determine whether the goods receipt varies from the purchase order or the material master data. The different types of variances are defined by tolerance keys. For each tolerance key, tolerance limits can be set per

Navigate to the following path in SAP: SPRO – Material Management – Inventory Management – Good Receipt – Set Tolerance.

Transfer the tolerance values B1, B2, and VP from company code 1000 to MK14.

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Setting Tolerance Limit for Price Variance in SAP

Variances are allowed within the tolerance limits. If a variance exceeds a tolerance limit, the system issues a warning or error message. In SAP, the types of variance are represented by the tolerance keys.

Navigate to the following path in SAP: SPRO – Material Management – Purchasing – Purchase Order – Configure tolerance limit for price variance.

Transfer the tolerance limits for PE and SE from company code 1000 to MK14.

Define the tolerance threshold for price discrepancies between the invoice and purchase order in SAP.

Path in IMG: Material Management – Logistic Invoice verification – Invoice block – Define Tolerance.

Transfer the price variance for production and purchasing from company code 1000 to MK14.

Define Automatic Status Change

Background verification of invoices is performed, and if they are found to be accurate, the status is automatically changed to completed.

Define Valuation Control

The valuation grouping code determines whether the valuation areas will be grouped together. By default, the standard SAP R/3 System has the valuation grouping code activated.

Navigate to the Materials Management section in SAP and access the Valuation and Account Assignment module. From there, go to Account Determination and select the option for Account Determination without Wizard. Finally, choose Define Valuation Control to proceed with further configuration.

Valuation Area Plant Grouping in SAP

Location: Material Management – Valuation and Account Assignment – Account Determination – Account Determination without the assistance of a wizard – Consolidate valuation area.

Valuation in the SAP system is pre-set for each plant, with all plants being categorized under valuation grouping code 0001. It is necessary to assign the predefined SAP valuation grouping 0001 to Plant 01M1.

SAP Definition of Valuation Classes

Navigate to the following path in the SAP system: Materials Management -> Valuation and Account Assignment -> Account Determination -> Account Determination without Wizard->Define Valuation Classes.

Sap Integration Entries for Account Category Reference

When inputting a goods movement, it is necessary to specify the corresponding movement type. The movement type plays a crucial role in Inventory Management as it carries out important control functions.

Modifying the quantity fields, revising the stock and consumption accounts, and generating receipts or issue slips are all essential tasks involved in integrating FI (Financial Accounting) and MM (Materials Management) entries within SAP.

Navigate to the Inventory Management and Physical Inventory section in the Materials Management module of SAP. From there, access the Movement Types menu and select the option to Copy or Change Movement Types.

The table shows different movement types and their corresponding allowed transactions. For example, movement type 101 corresponds to a goods receipt transaction, while movement type 261 corresponds to a goods issue for an order transaction.

Generating Different General Ledger (GL) accounts for the integration between Financial Accounting (FI) and Materials Management (MM).

The following table displays the integration entries in SAP for Fi Mm. It includes descriptions, GL accounts, types, line items, sort keys, FSGs, and whether automatic posting is enabled or not. The entries listed include RM Local with GL account 200108 under BS/Cr. Liabilities type and X as a line item; GRIR Clearing Acct with GL account 100510 under BS/Cr. Liabilities type and X as a line item; PO and Invoice Price Diff Acct with GL account 400203 under PL/Mnf. Exp type and X as a line item; RM Consumption Local with GL account 400000 under PL type and X as a line item; RM Consumption Import with GL account 400001 under PL type and X as a line item; Tax Payable with GL account 100511 under BS type, X as a line item, G001 as the sort key but no FSG specified for it.

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For detailed, step-by-step instructions on SAP Cost Center Accounting, Product Costing, Profit Center Accounting, Internal Orders, FI-MM Integration follow along with my video tutorial below

SAP Configuration: FI-MM Integration for Automatic Account Posting

The following table displays various transaction keys and their corresponding descriptions, valuation classes, general modifications, and GL accounts. These entries are related to the integration between Financial Accounting (FI) and Materials Management (MM) in SAP.

– Transaction Key: BSX

Description: Inventory Posting

Valuation Class: 01RM

General Modification:

GL Account: 200108

– Transaction Key: WRX

Description: GRIR Clearing Account

Valuation Class: 01RM

General Modification:

GL Account:100510

– Transaction Key: PRD

Description : Price Diff Account

Valuation Class :01RM

General Modification :

GL Account :400203

– Transaction Key : GBB

Description : Offsetting Entry for Inventory Posting

Valuation Class :01RM

General Modification :VBR

GL Account :400001

– Transaction Key : BSX

Description :

Inventory Posting

Valuation Class :


General Modification :

GL Account :


Vendor Master Extension for Purchase Organization in SAP

Prior to proceeding with the aforementioned step, it is essential to establish a partner function specifically for vendors.

1. Define partner schemas by accessing the Partner Settings in Purchasing Documents section under Materials Management in SPRO.

2. Configure settings for vendor master records by going to Control under Vendors in Business Partner within Logistics – General in SPRO. Specify the account groups and field selection, with partner schemas set as IDE1.

3. Assign partner schemas to vendor account groups through Partner Settings in Vendor Master Record-Assign Partner Schemas to Account Groups under Purchasing within MM module in SPRO, using IDE1 as the partner schema.

4. Define permissible partner roles per account group via Define Permissible Partner Roles per Account Group option found under Partner Determination within Purchasing of Materials Management.

SAP Integration Entries for Material Creation

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What is the Tcode for integrating FI and MM in India?

The integration between the Financial Accounting (FI) and Materials Management (MM) modules takes place in transaction code OBYC.


1. The FI-MM integration is established through T-code OBYC.

2. T-code OBYC facilitates the connection between the FI and MM modules.

3. In order to synchronize data, users need to access transaction code OBYC for FI-MM integration.

4. Integration between FI and MM can be achieved by using T-code OBYC.

5. Users can manage the integration of FI and MM by utilizing transaction code OBYC.

Purchase Order Creation

A purchase order with the SAP number 4500041321 was generated in the standard format.

Integration partners for SAP FI in India

SAP FI is a software component that is often connected with the MM (Materials Management) and SD (Sales and Distribution) components. Integration in this context refers to how SAP FI works together with these other modules, specifically how information from these modules affects the financial accounting processes.

When we talk about integration between SAP FI and other modules, it means that the system has been designed to connect different parts of the software so they can work together seamlessly. In this case, it involves connecting SAP FI with MM and SD. This allows for a smooth flow of data between these modules, ensuring that financial transactions related to materials management and sales are accurately recorded in the financial accounting system.

The integration entries in SAP refer to specific records or entries created in the system when there is an interaction between different modules. For example, when a purchase order is created in MM for buying materials, an entry will be automatically generated in SAP FI to record the financial impact of this transaction. Similarly, when a sales order is processed in SD, relevant financial entries will be made in SAP FI based on this activity.

SAP Integration Entries for Goods Receipt

To conclude the previous MM period and initiate the current MM period, you can utilize the MMPV function in SAP.

The material document 5000003531 has been successfully posted. To view the details of this material document, you can use the transaction code MB03.

Explaining Fi-mm integration during an interview: A guide

FI-MM Integration is must to post the Goods Receipt and Invoice Receipt where an Accounting document will be triggered in the background by taking the G/L Accounts from OBYC. MIGO and MIRO – Integrated with FI and derives the accounts from OBYC based on the Valuation Class from the Material Master.

SAP Integration Entries for Purchase Order Invoice

Creating a vendor master record centrally using code XK01 allows for efficient management of vendors across various departments and functions within an organization. This centralized approach ensures consistency and accuracy in maintaining vendor data throughout the system.

On the other hand, code MK01 enables users to create vendor master records specifically from the purchasing or MM perspective. This means that procurement-related information such as pricing conditions, delivery terms, and payment methods can be directly incorporated into the creation process.

By having separate codes for central creation (XK01) and creation from Purchasing/MM side (MK01), SAP provides flexibility in managing vendors based on different requirements or business scenarios. Organizations can choose between these options depending on their specific needs and processes.

Understanding fi integration in SAP FICO

1. Data flow from FI to CO

2. Creation of Cost Elements for GL accounts in FI

3. Transfer of data between FI and CO modules

Performing SAP integration: A guide

There are several methods through which the process of SAP integration can be carried out. In most cases, SAP integrations utilize Intermediate Documents (IDOCS), regardless of the specific service or software involved. IDOCs play a crucial role in transforming information into a standardized data format, enabling seamless data transfer to and from SAP systems.

By utilizing IDOCs as an intermediary, organizations can ensure that data is accurately transmitted between different systems within their IT landscape. These IDOCs act as a bridge, facilitating smooth communication and synchronization between various applications and modules integrated with SAP.

Location of SD and MM integration in SAP

– Sales order created for material with item category Group BANC or BANS

– After completion of the sales order, an automatic PR is generated

– The MM team converts the PR into a PO

– Integration between SD and MM modules occurs during sales order creation

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Product MK14RM01
Sector Mechanical Engineering

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< tr >< td > Factory < TD > 01M1

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