account-category-reference-acr--grandfather-of-automatic-account-determination-process.pdf

Generated by Jive on 2015-02-06+01:001

SAP ERP - Logistics Materials Management(SAP MM): Account Category Reference(ACR) - Grandfather of Automatic AccountDetermination Process

Posted by Bijay Kumar Barik Oct 31, 2013{This is my 2nd blog in SCN and 1st blog in SAP ERP - Logistics Materials Management (SAP MM) Forum.I do realise and strongly believe now, there is another part of SCN world rather than answering the thread/threads where I expressed in my SCN 1st blog Me, Myself, SDN and now SDN is SCN @10Years http://scn.sap.com/community/about/blog/2013/10/07/me-myself-sdn-and-now-sdn-is-scn-10years for SCN andMe- Blog Competition http://scn.sap.com/docs/DOC-45348}.

Every movement of goods is followed by movement type only and without movement type use / without helpof movement type - no goods movement is possible in SAP. During goods movement of transaction posting,movement type trigger transaction event key and G/L account assignment triggers based transaction event key(OBYC) with valuation class where valuation class determines the valuation class available in material masterwhich is used for transaction posting. For automatic account determination, the vital direct parameters involvesare movement type, valuation class, chart of account, valuation area, business key (transaction key), valuationgrouping code{ valuation modification or valuation modifier}, account grouping code{general modification orgeneral modifier },nature of G/L account ,posting keys and value string.

Moderately understandable, only large vital factor - valuation class in material master determine G/L accounton goods movement for a movement type and then, all are happy on validation in/for business process bycross checking accounting entries in each case/stage. Essential regard to account category reference (which isvery much responsible of having valuation class in material master), play grandparent role by being silent friendfor success to automatic account determination process.

The account category reference (ACR) is an artificial code of four characters which allows flexibility in linkingmaterial type with valuation class. In reality, the valuation class is linked to an account category reference andaccount category reference linked to material type. In other term account category reference is used to simplifythe assignment of permitted valuation class/valuation classes to the material type/ material types.

Business Case-1: How to use Account Category ReferenceBased on requirement, business can have one material type, one account category reference and onevaluation class by assigning material type to account category reference and then assigning account categoryreference to valuation class. For example business can have one custom material type ZROM (Raw Material)with custom account category reference (Z001) and new valuation class (3005) for Raw Material(Raw material- inventory managed with quantity and value)

SAP ERP - Logistics Materials Management (SAP MM): Account Category Reference (ACR) - Grandfather ofAutomatic Account Determination Process


During material creation with transaction code: MM01 with certain material type manually or by any uploadingtool, only one permitted valuation class is defaulted for that material type by account category reference. So inmaterial creation process no chance of making any mistakes by users or by any uploading tool.

Business Case-2: How to use Account Category ReferenceBased on requirement, business can have one material type, one account category reference and multiplevaluation classes by assigning material type to account category reference and then assigning accountcategory to valuation classes. For example business can have one custom material type ZROM (Raw Material)with custom account category reference (Z001) and new valuation classes i.e. (3005) for Raw Material, (3006)for Chemicals and (3007) for Filter material (all materials are inventory manage with quantity and value)



During material creation with transaction code: MM01 with certain material type manually or by any uploadingtool, only permitted valuation classes are defaulted for that material type by account category reference . Here,there is a chance of entering wrong valuation class by user manually or through upload file using a tool whichneeds to be validated.

Business can go for designing a custom transaction code where material can be created through uploading filewhich can be verified by central material creation officer.Business Case-3: How to use Account Category ReferenceBased on requirement, business can have multiple material types, one account category reference and multiplevaluation classes by assigning material types to account category reference and then assigning accountcategory reference to valuation classes. For example business can have three custom material types suchas ZROM (Raw Material), ZCHE(Chemicals ) and ZFIL(Filter material ) with one custom account categoryreference (Z001) and three new valuation classes ie.. (3005) for Raw Material, (3006) for Chemicals and(3007) for Filter material (all materials are inventory manage with quantity and value)



During manual material creation with transaction code: MM01 or material creation by any uploading tool, onlypermitted valuation classes are defaulted for that material type by account category reference. Here, enteringcorrect combination of material type for material and valuation class are expected through manually or throughupload file which needs to be validated.

Business can go for designing a custom transaction code where material can be created by referring uploadingfile which can be verified by central material creation officer.



Also business can think of having material master creation form for any new material mastercreation, if necessary material code/ material number is not available in system User/Users canfill the template of uploading file with duly filled material master creation form and send forapproval.On appropriate check and verification with approval from approving authority, if centralmaterial creation officer is happy, then he /she can upload file with custom transaction code fornew material code.

Reference:http://scn.sap.com/thread/1748734https://scn.sap.com/thread/2012467http://scn.sap.com/thread/3158751

Before concluding, based on business scenarios and material behaves to business on purchasing,inventory management and accounting management one can decide on usage of valuation classand material type permitted by account category reference.

Thanks for your time to read my 2nd Blog. Also I would like to thank all my present project team members fortheir great encouragement and strong motivation.

Regards,Biju K11978 Views



pranaya ranjan sahuFeb 6, 2015 10:52 AMDear Biju Bhai,

Nice blog.I enjoyed.SAP Boss

Jan 8, 2015 4:34 PM

Good article and keep writing.

SAP BossJan 8, 2015 4:25 PMGood effort. Keep contributing.Sivakumar

Jeff LuJan 6, 2015 4:42 AMit is a really excellent blog for me to understand the relationship between material master and valuation side .

Keep more nice blog in high productivity!

Vick Patel in response to Bijay Kumar Barik on page 6Sep 2, 2014 5:21 PMyou are always welcome Guruji

Bijay Kumar Barik in response to Vick Patel on page 6Sep 1, 2014 7:37 AMVick,

Thank you for your appreciation

Regards,Biju K

Bijay Kumar Barik in response to Binoy Vargis on page 7Aug 31, 2014 2:40 PMBinoy,

Thank you

Regards,Biju K

Vick PatelAug 26, 2014 8:52 PMbest of all blog so far ...very detail oriented information specifically onOBYC.



Bijay Kumar Barik in response to Manjunath B L on page 7Aug 19, 2014 5:45 AMManjunath,

Thank you for your appreciation and encouragement

Regards,Biju K

Binoy VargisAug 18, 2014 7:26 AMHi Biju,

Nice narration.RegardsBinoy

Bijay Kumar Barik in response to S Patel on page 7Aug 18, 2014 6:47 AMSP,

Thank you for your encouragement

Regards,Biju K

Bijay Kumar Barik in response to Prabhakaran M on page 8Aug 15, 2014 10:44 AMPrabhakaran,

Thank you for your appreciation

Regards,Biju K

Manjunath B LAug 8, 2014 9:18 AMDear Biju Sir,

It is very informative and i have read your other document "who is the owner of material master". Innovativeand very easy to understand. Thank you for sharing knowledge.

Regards,Manjunath B L

S PatelAug 8, 2014 1:51 AM



Hi Biju,

Very well explained (The best I have ever found) and very informative too.

FYI...Whenever I have any issues I always check for your explanation on SDN because you explain theconcept very clearly and in detail too.

Thanks once again the way you explain things..

Thanks,S.P

Prabhakaran MJul 1, 2014 12:18 PMHi Biju, Nicely presented and very informative. Thanks for sharing the valuable information. Regards,Prabhakaran M

Bijay Kumar Barik in response to Narendra Konnipati on page 8Apr 22, 2014 5:41 PMNaren,

Thank you for the compliments . Just follow SCN threads for all type of issues, which will enrich yourknowledge and skills.

Regards,Biju K

Bijay Kumar Barik in response to Shailesh Rajan on page 9Apr 21, 2014 6:59 AMShailesh,Thanks a lot for constant interest to my replies! Your feedback one is very helpful & encouraging. If sufficienttime permits, I will go soon for creativity thought to my upcoming blogs with better title.

Regards,Biju K

Narendra KonnipatiApr 20, 2014 6:54 AMBiju sir,

Thank you for sharing this document.

If you create one document with your experienced major issues in MM then it would be very nice to all SCN

folks including me .



Thanks,Naren

Shailesh RajanApr 20, 2014 4:13 AMDear Bijay,

This by far has been the best article, That I have ever come across on AAD, If you and the person behindthis blog SAP MM Automatic Account Determination Sapdup could come together and write adocument on Automatic Account Determination, it would become the one stop guide for all SAP consultants.

Have learnt a lot in SAP from your replies to queries, please carry on with the phenomenal work that you aredoing.

Best RegardsShailesh

Bijay Kumar Barik in response to HHC MM on page 9Mar 12, 2014 4:04 PMThank you.

Regards,Biju K

HHC MMFeb 25, 2014 6:00 AMIts very useful..thanks

kiran kumar in response to Bijay Kumar Barik on page 9Feb 9, 2014 11:06 AMThanks bijay..

Bijay Kumar Barik in response to kiran kumar on page 10Feb 8, 2014 5:15 PMKiran,You can permit multiple Material types to single valuation class with help of one Account category reference.

But in your case - you can not keep it as HALB represent Material type Semifinished products,ZROH which iscopy of ROH Material type represent Raw materials and ZERT which is copy of FERT Material type representFinished products.

So you can keep it as following



Mtype ACR VClassHALB 0008 7900ZROH 0001 3000ZERT 0009 7920

OR you can create new valuation classes and Account category references and assigned as following:

Mtype ACR VClassHALB 0008 7900ZROH Z001 3008ZERT Z009 7950

Regards,Biju K

Dibyendu Patra in response to kiran kumar on page 10Feb 8, 2014 12:05 PMNo, This details is not provided in this blog..But you can keep this on case 2.Just vice-versa from material type and valuation class..In that case..3 material type has same ACR and 1 valuation class contain the same ACR..

kiran kumarFeb 8, 2014 12:01 PMHi Bijay,I saw another case like below

Mtype ACR VClassHALB 0005 3100ZROH 0005 3100ZERT 0005 3100

is this also like case1?ThanksKiran

Bhanu ChandraFeb 8, 2014 8:26 AMHi Bijay,

Very useful document. Thank you

Regards,



Bhanu

Bijay Kumar Barik in response to sam k on page 11Jan 31, 2014 11:28 AMSam,To get in-depth knowledge - Everyday spend 6 to 7 hours per day in SCN for six months and also do spend 5hours with system.

Good Luck!!

Regards,Biju K

sam kJan 27, 2014 4:10 PMhi bijayi am interested to gain in-depth knowledge in sap mm can you please help me with that thanks

Regardssam

Bijay Kumar Barik in response to Danny Wang on page 12Jan 21, 2014 11:26 AMDanny,

Thanks for your comment

Regards,Biju K

Bijay Kumar Barik in response to Dibyendu Patra on page 11Jan 8, 2014 10:09 AMDev,Yes, in system you can do it but how your new model and your unique solution will help to your businessprocess at the end for reporting!

You solution/solutions should empower for the business and business user by providing a lot of flexibility to trydifferent planning models with Bottom up and Top down approach.

Regards,Biju K

Lakhya Pratim Baruah in response to Dibyendu Patra on page 11Jan 8, 2014 8:10 AM

yes....



Dibyendu PatraJan 7, 2014 5:25 PMMuch clear about Account Assignment Category Reference...Thank for sharing...Just one confirmation about ACR:We can use many valuation classes for one material type via ACR and as well as we can use one valuationclass for many material types via ACRIsn't it Biju Sir ???

Bijay Kumar Barik in response to Rohidas Shinde on page 13Jan 7, 2014 2:33 PMThank you!

Regards,Biju K

Bijay Kumar Barik in response to Lakhya Pratim Baruah on page 13Dec 27, 2013 10:55 AMLakhya,Thanks a lot, I'm glad you like the title of this blog!!!!

Regards,Biju K

Danny WangDec 27, 2013 6:19 AMVery useful post.ThanksDanny

Bijay Kumar Barik in response to Vimalanathan Annamalai on page 13Dec 23, 2013 11:55 AMVimalanathan,

Thanks for your compliment, I'm glad you like the blogIf time permits, I will go for a creativity thought to my upcoming blog!

Biju KBijay Kumar Barik in response to Pradeep Mani on page 13

Dec 20, 2013 9:37 AMPradeep,

Good to see your appreciation .Thank you!

Regards,



Biju KBijay Kumar Barik in response to Sesha S B on page 13

Dec 19, 2013 3:10 PMSesha,

Thank you for the pleasure of your support and goodwillMuch appreciated!!!

Regards,Biju K

Bijay Kumar Barik in response to Chitralekha Veluru on page 14Dec 19, 2013 9:19 AMChitra,

Thank you for your wonderful compliment. Your feedback one is very helpful and encouraging

Regards,Biju K

Rohidas ShindeDec 18, 2013 7:06 PMGood DocumentRohidas

Lakhya Pratim BaruahDec 18, 2013 4:39 PM

Nice document Bijay. And, a good title for ACR - Grandfather Vimalanathan Annamalai

Dec 17, 2013 6:56 PMHi Bijay,

This is the first time i am reading your blog. This is a very good blog that will help the beginners to understandthe use of account category reference. Hope to get lot of such blogs from you.

Pradeep ManiDec 16, 2013 11:40 AMHi Bijay,Informative!Thanks for sharing.

Sesha S BDec 16, 2013 6:43 AMHello Bijay,



Nice document..Your contributions in SCN are very helpful and informative. Thank you for sharing yourknowledge and valuable time..

RegardsSesha.

Chitralekha VeluruDec 16, 2013 4:32 AMHello Sir,

Very Useful Information and the illustration with examples is very good.

Thanks for sharing.

Expecting many such useful posts !!!

RegardsChitra

Bijay Kumar Barik in response to Swapnil nevrekar on page 15Dec 9, 2013 9:06 AMSwapnil,Thanks a ton for the great compliments.

Your feedback on "Logic Behind this Blog" is very special and encouraging . Thank you again!

Regards,Biju K

Bijay Kumar Barik in response to vasu sara on page 15Dec 6, 2013 9:40 AMSrinivas,Thanks for your comment!

Good to see you like the concept behind

Regards,Biju K

Bijay Kumar Barik in response to kiran kumar on page 15Dec 5, 2013 2:08 PMKiran,

Good to see your words of appreciation

Regards,



Biju KSwapnil nevrekar

Dec 5, 2013 8:17 AMThis blog refreshed the importance of ACR & also emphasizes on choosing the right combination of valuationclasses & material types.

Thanks a lot Bijay

Best Regards,Swapnil

vasu saraDec 4, 2013 8:11 PMStructurely documented and with good illustrations used how a automatic account determined, great job Bijay.

regardsSrini

Bijay Kumar Barik in response to ACR RUBEN on page 15Dec 4, 2013 9:42 AMRuben,

Thank You, I appreciate that you like this blog

Regards,Biju K

kiran kumarDec 4, 2013 2:51 AMThank you so much bijay for clear elucidation on ACR..

Thankskiran

ACR RUBENDec 3, 2013 6:38 AMDear Bijay,You have excellently explained the Automatic Account determination process.RegardsACR.Ruben

Bijay Kumar Barik in response to Venkata V on page 16Nov 29, 2013 5:55 PMHi,

Thanks for the compliment. I will do it in the future



Regards,Biju K

Venkata VNov 29, 2013 12:15 PMDear Biju,

Its really so helpful. Awaiting your further posts.

Regards,

Sravan

Bijay Kumar Barik in response to Vijay Suryawanshi on page 16Nov 29, 2013 11:50 AMVijay,Thanks for your comment!

Regards,Biju K

Vijay SuryawanshiNov 28, 2013 4:52 AMHi Bijay,

This is very useful for begineers.

Regards,

Vijay Suryawanshi

Bijay Kumar Barik in response to sanjeet kumar on page 16Nov 22, 2013 9:54 AMHi,Thanks for all the compliments and glad that you like it.

Regards,Biju K

sanjeet kumarNov 21, 2013 7:27 PMHi Bijay,

I appreciate you for your way of presentation and reply of question in appropriate way.



Thanks a lot for sharing heart of MM.

With RegardsSanjeet Kumar

Bijay Kumar Barik in response to lipi icfai on page 18Nov 20, 2013 3:15 PMNarayan (Tanushree),

I appreciate the visit!

I was preoccupied. I couldn't reach your question

Regards,Biju K

Bijay Kumar Barik in response to Kunal Ingale on page 17Nov 14, 2013 9:58 AMKunal,

Thank you very much.I am very happy to receive your comments , especially from you as you are an ActiveContributor in this Forum.

Regards,

Biju KBijay Kumar Barik in response to PREETI KASHYAP on page 18

Nov 13, 2013 11:28 AMPreeti,Thanks for your appreciation!

Regards,Biju K

Kunal IngaleNov 12, 2013 10:53 AMHi Biju ,

Nice blog ...really the gradpa revealed

Nicely elaborated with business scenarios

Thanks



Kay.....

PREETI KASHYAPNov 11, 2013 9:27 AMHello Sir

This is very good and helpful post. Thanks for the sharing .

Regards.

lipi icfai in response to Bijay Kumar Barik on page 20Nov 11, 2013 7:45 AMyou never answer my questions sir...Tanushree

Bijay Kumar Barik in response to subburam v on page 18Nov 9, 2013 12:21 PMSubbu,

Thanks for your appreciation! I'm glad you like this blog

Regards,Biju K

Bijay Kumar Barik in response to S Ramaraju on page 19Nov 8, 2013 5:48 PMRamaraju,Thank you.

Regards,Biju K

Bijay Kumar Barik in response to Ashok Kumar Telugu on page 19Nov 8, 2013 10:04 AMAshok,Good to see your appreciation!

Regards,Biju K

Bijay Kumar Barik in response to Anupam Kumar on page 20Nov 8, 2013 8:07 AMAnupam,

Thank you for highlighting and I appreciate your comments greatly!

Regards,Biju K



subburam vNov 8, 2013 6:21 AMHI Biju,

For long time I had doubt whether account category reference can be assigned to one material type and onevaluation class.Now you have cleared my doubt.

Good work Keep it up..Expecting more posts from you.

RegardsSubbu.

Ranjeet singh in response to Bijay Kumar Barik on page 19Nov 8, 2013 6:02 AMHi,

Super knowledge sharing great commitment. Thanks

regardsRS

Bijay Kumar Barik in response to Ranjit W on page 20Nov 8, 2013 4:21 AMThank you,Ranjit!

Regards,Biju K

Bijay Kumar Barik in response to Jose Machado on page 21Nov 7, 2013 6:08 PMJose,

Delighted to meet you tooThanks for your compliment and glad that you like it.

Regards,Biju K

Ashok Kumar TeluguNov 7, 2013 4:46 PMHi Biju, Great work. Thanks for sharing..

Regards,Ashok Kumar Telugu



S RamarajuNov 7, 2013 2:34 PMGood One.

Bijay Kumar Barik in response to Satish Babu on page 21Nov 7, 2013 1:42 PMSatish,

Thanks for all the compliments, I'm glad you like it .

If time permits , I will go for creativity thought to my upcoming blogs.

Regards,Biju K

Bijay Kumar Barik in response to mm 442 on page 21Nov 7, 2013 12:32 PMMithun,Thank you for highlighting. Much appreciated!!!!

Regards,Biju K

Anupam KumarNov 7, 2013 9:53 AMHello Sir,Its really a very informative blog, which help us to understand the usage of account reference category & itsimportance.

RegardsAnupam

Bijay Kumar Barik in response to Prerna Garg on page 23Nov 7, 2013 9:39 AMPrerna,

Thank you a lot for all of your nice comments.Always great to receive encouragement .Your feedback one isvery helpful for my future upcoming blogs.

Regards,Biju K

Ranjit WNov 7, 2013 6:53 AMExcellent work Biju. keep it up !

Bijay Kumar Barik in response to Sudeep A on page 22



Nov 7, 2013 2:43 AMThank you, Sudeep!

Regards,Biju K

Jose MachadoNov 6, 2013 9:09 PMThanks Bijay for your time on posting this useful blog. Greetings from Venezuela

Regards,

Jose

Bijay Kumar Barik in response to Dileep V on page 22Nov 6, 2013 6:16 PMDileep,Thanks for your nice comment!

Regards,Biju K

Satish BabuNov 6, 2013 1:33 PMHi Bijay,

Finally I found a document posted by You. Very nice & clear documentation. Expecting more from You.

RegardsSatish

Bijay Kumar Barik in response to Ragini sap on page 22Nov 6, 2013 11:25 AMRagini,

Thanks for your appreciation

Regards,Biju K

mm 442Nov 6, 2013 8:28 AMHi sir,

impressive , Good concept but huge impact.



Regards,

Mithun

Bijay Kumar Barik in response to Vignesh M on page 22Nov 6, 2013 6:04 AMVignesh,

Thank you. Great to receive encouragement and based on my availability will go for next blog!

Regards,Biju K

Bijay Kumar Barik in response to karthikeyan s on page 23Nov 5, 2013 2:28 PMKarthik,Thanks for your appreciation.

Regards,Biju K

Sudeep ANov 5, 2013 12:19 PMGood work. Keep going and keep sharing.

Sudeep.

Bijay Kumar Barik in response to Paritosh Das on page 23Nov 5, 2013 11:57 AMParitosh,Thank you for your compliments.

Regards,Biju K

Dileep VNov 4, 2013 3:54 PMGreat Work ... Keep the good work rolling.

Ragini sapNov 4, 2013 2:16 PM

Excellent work bijay, keep it up....Vignesh M

Nov 4, 2013 1:17 PMGood one Bijay. Expecting more from you.



ThanksVignesh

Paritosh DasNov 4, 2013 10:13 AMDear Biju ,

Really appreciate that you took time to make & shared this document with us.

I try to follow oyu.

Thanks for sharing the doc.Thanks & RegardsParitosh Das

karthikeyan sNov 4, 2013 10:08 AMHi Biju,

This is very useful for us. Thanks for the continuous support.

Regards,Karthik

Bijay Kumar Barik in response to Mohsin Abbasi on page 24Nov 4, 2013 2:18 AMMohsin,Thanks a lot for constant interesting and comment. Good times and best wishes.

Regards,Biju K

Prerna GargNov 3, 2013 5:34 PMDear Bijay,

No need to say that this is a very informative and useful blog. Very much elaborated and comprehensive.

It is really helpful to understand the concepts from scratch.

Regards,Prerna Garg

Bijay Kumar Barik in response to Prakash AN on page Nov 3, 2013 12:55 PM



Prakash,

Thanks for your appreciation.The feedback one is very helpful and encouraging

Regards,Biju K

Mohsin AbbasiNov 1, 2013 9:19 PMHi Biju,Awesome One, Enlighten the Concept of Core Area of OBYC.

Best RegardsMohsin Abbasi

Bijay Kumar Barik in response to Prabodha Rao on page Nov 1, 2013 6:15 PMPrabodha,Thank you for the nice comment and compliment! Wish you all the best.

Regards,Biju K

account-category-reference-acr--grandfather-of-automatic-account-determination-process.pdf

Documents

Transcript of account-category-reference-acr--grandfather-of-automatic-account-determination-process.pdf