SAP Account Determination Ppt Rajnish

Materials Management (MM)

- Rules -

Unit 11

January 2008© SAP AG - University Alliances and The

Rushmore Group, LLC 2008. All rights reserved.

2

Business Process Integration

Rules

MM



3

Rules

• Defines the parameters for Master Data and Transactions

• Determines functionality for Master Data and Transactions

• Relatively fixed• Changes as policy changes



4

R/3

FIFinancialAccounting

COControlling

PSProjectSystemWF

WorkflowISIndustrySolutions

MMMaterials Mgmt.

HRHumanResources

SDSales and Distribution

PPProductionPlanning

QMQualityMgmt.PM

Plant Maintenance

SMServiceMgmt.

Client / ServerIntegrated BusinessSolution

ECEnterpriseControlling

AMFixed AssetsMgmt.

Materials Management (MM)

January 2008© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All

rights reserved. 5

Procurement Process (Procure-to-Pay)

Purchase Requisition

Paymentto Vendor

Notify Vendor

VendorShipment

InvoiceReceipt Goods

Receipt

Purchase Order

3-WayMatch



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Unit 11 – Overview

• Reservations• Tolerances

– Purchasing– Goods Receipt– Invoice Receipt

• Automatic Account Assignment• Invoice Verification



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Reservations

• A request to have a material ready for issue at a future date for a production order, sales order, etc.

• The purpose of a reservation is to ensure that a material is available when required and not assigned to another use



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Purchasing Tolerances

• A tolerance limit is set for allowed variance before a warning/error message is displayed– Price variance

• Compares the price in the purchase order with the valuation price stored in the material master

– Maximum cash discount • This tolerance limit is set to assure that cash discounts

do not exceed allowable discounts



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Goods Receipts Tolerances

• Purchase order price quantity – there are two tolerance levels maintained per item– The maximum percentage variance before a

goods receipt postings is not allowed– A percent variance that generates a warning

message but allows posting • Moving average price variance – the

maximum allowable moving average price change allowed



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Invoice Receipts Tolerances• Many tolerance limits that can be configured

for invoice receipts: price, quantity, and blanket purchase orders These tolerances include:– Amount for item with or without order reference– Form small differences automatically– Percentage Over/Under Quantity Variance– Exceed amount: quantity variance– Blanket purchase order – value and time limit– Price variance



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Automatic Account Assignment

• Automatic account assignment is created to avoid manual postings of financial transactions which follow goods movements to reflect the values of transferred materials

• Automatic account assignment is used across all modules to keep track of the values of materials that are being consumed (e.g., production), or transferred into other valuation areas of the company



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Automatic Account Assignment(continued)

• Automatic account assignment is a set of rules and master data which enable the financial tracking of logistics movement



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Automatic Account AssignmentComponents

• Components of Automatic Account Assignment– Chart of Accounts– Valuation Grouping Code– Transaction Key– Modifier for Transaction Key– Valuation Class



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Automatic Account AssignmentValuation Grouping Code

• Valuation grouping code - groups valuation areas together – Example: valuation area is plant, five plants exist

in the company, all five plants use the same accounts.

– Multiple valuation groups are possible



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Automatic Account AssignmentValuation Grouping Code

Plant – P004Plant – P001

Grouping CodeG001

Plant – P003

Plant – P002

Grouping CodeG002

Plant – P005



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Automatic Account AssignmentTransaction Keys

• Transaction Keys – The transaction keys are used to determine

accounts or posting keys for line items which are created automatically by the system.

– The transaction keys are defined in the system.



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Automatic Account AssignmentTransaction Keys

• Transaction Keys– Inventory Postings

• BSX – Offsetting Entry for Inventory Postings

• GBB– Materials Management Small Differences

• DIF– Cost (price) differences (PPV)

• PRD– Goods receipt / inv. receipt clearing acct

• WRX



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Automatic Account AssignmentModifier

• Modifier – modifies the transaction key for various movement types– Blank – Goods receipt from purchase order with

account assignment– VBR – Goods issue to consumption – VAX – Goods issue to sales – post to cost of

goods sold– AUF – Goods receipt from a production order –

post to production settlement– Etc. – Many others



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Material Types & Valuation Classes

• Account category reference:– Builds the link between material types and the

valuation class(es)

0009 – Reference for Finished Products

0005 – Reference for Trading Goods

0002 – Reference for Operating Supplies

0001 – Reference for Raw Materials

Account Category Reference

FERT

HAWA

HIBE

ROH

Material Type

7920

3100

3030/3031

3000/3001/3002/3003

Valuation Class



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Material Types & Valuation Classes

Material TypeROH (Raw Material)

Acct Cat. Ref0001 – Raw Materials

Valuation Class3000(Steel)

Valuation Class3001(Paper)

Valuation Class3003(Plastics)



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Account790000


Plant P001

Valuation Class3100 (Trading Good)

Grouping CodeG000

Goods MovementGBB (Goods Issue)

Account ModifierVBR (Iss. To Cons.)

Plant P002


Grouping CodeG000



Plant P003


Grouping CodeG001



Account790001



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PlantMaterial TypePoints To:

G/L AccountAccount Modifier

Transaction Event Key

Valuation Grouping CodeValuation ClassRepresented By:

Chart of Accounts

Additional Information

Goods MovementValuation AreaMaterial

Where Value is recorded:Why 2:Why 1: Where Valued: What:

Plant – P001HAWAPoints To:

790000VBRGBBG0003100Represented By:

Chart of Accounts -C000

Issued to ConsumptionGood IssuePlant – P001BPEN000

Where Value is recorded:Why 2:Why 1: Where Valued: What:



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Goods Receipt

• Materials can be received as stock items or non-stock items

• Receipt is possible from external or internal sources

• Individually / collectively• Tolerance limits can be set for goods receipt• Special movement type for initial inventory

load



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Goods Receipt – (continued)

• Stock items can be received into restricted or unrestricted stock

• Non-stock items are received into orders, projects, cost centers

• Materials that are usually received into inventory can also be received into orders, projects, cost centers



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Invoice Verification

• Set parameters for invoice verification– Quantity, price, receiving date, P/O quantity– Updates material master if moving average price– Automatic account assignment for price

differences - if allowed• Verify actual versus target

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 26

3-Way MatchPurchase order- Target quantity -- Target price -

Goods receipt - Actual quantity -

Invoice receipt- Actual price -



27

Accounts Payable Settlement

PurchaseOrder

GoodsReceipt

InvoiceReceipt

Debit Credit

PaymentProgram

Verification


Unit 11, Group 1 – Exercises

89. Set Default Values for Inventory Management Reservations

90. Maintain Purchasing Tolerance Limits91. Maintain Goods Receipt Tolerances92. Maintain Invoice Receipt Tolerances93. Set (Review) Valuation Control94. Assign Valuation Area Grouping95. Define (Review) Valuation Classes


Unit 11, Group 2 – Exercises

96. Configure Automatic Postings for Goods Movement 97. Configure Automatic Postings for Taxes98. Set Parameters for Invoice Verification99. Create Default Values for Invoice Verification

SAP Account Determination Ppt Rajnish

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