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Title: Automatic Account Determination In SAP MM

 The system creates an accounting document during inventory management transactions and posts the amount
in the appropriate general ledger (G/L) accounts. G/L accounts are automatically triggered with the help of
automatic account determination settings.
 Automatic account determination can be configured either with or without the automatic account
determination wizard.
 Account Determination Without Wizard
 Account determination without the wizard permits you to make a more complex configuration than account
determination with the wizard, but one should be familiar with the principle of automatic account
determination in the ERP System.
 The Process flow chart as shown below gives the idea about automatic postings that are made to respective GL
account automatically during various goods movements.
 Account Determination Process Chart

Chart of
Material Plant Comp. Code GL Account
Accounts

Valuation Grouping Code

Account
Material Valuation
Category
Type Class
Reference

BSX BSA

WEO6 WRX VBR

Movt. Type WE01 GBB VBO

WA01 PRD ZOB

KON VNG

Value Transaction Account

String Key Grouping

 How does the system identifies the appropriate GL account?

 During goods movement, the system automatically finds the accounts to which postings are to be made using
the following data :
i. Chart of accounts of company code
 A chart of accounts provides a framework for recording values to ensure an orderly rendering of accounting
data. The G/L accounts it contains are used by one or more company codes.

Prepared By: Tejas R. Shinde, Email id: [email protected]

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 If the user enters a company code or a plant when entering a transaction, the system determines the chart of
accounts which is valid for the company code.
ii. Valuation grouping code
 The valuation grouping code makes it easier to set automatic account determination. Within the chart of
accounts, you assign the same valuation grouping codes to the valuation areas you want to assign to the same
GL account.
iii. Transaction/Event key
 Transaction keys are used to determine accounts or posting keys for line items that are automatically created by
the system. They’re predefined in the system and can’t be changed by the user.
 Value string, are assigned to each relevant movement type in inventory management. These strings contain keys
for relevant posting transaction such as BSX, WRX etc. GL accounts are assigned to each posting transaction key.
 Following is the list of some important transaction keys:

Transaction
Sr.No. Description
Keys
1 BSX Stock Posting
2 WRX GR/IR clearing
3 PRD Price differences
4 GBB Offsetting entry for stock posting
5 AUM Expenditure/income from transfer posting
6 KON Consignment liabilities
7 KBS Purchase order with account assignment
8 BSV Change in stock
9 FRL External service

iv. Accounting Group

 An account grouping is assigned to each movement type in inventory management which uses the posting
transaction "Offsetting entry for inventory posting".
 "Offsetting entry for inventory posting" is used for different transactions (for example, goods issue, scrapping &
physical inventory), which are assigned to different accounts (for example, consumption account, scrapping, and
expense/income from inventory differences), it is necessary to divide the posting transaction according to a
further key: account grouping code.
 For "Offsetting entry for inventory posting", you must assign G/L accounts for every account grouping.
 Using the account grouping, you can also have different accounts for price differences, consignment liabilities
and pipeline liabilities.
 Following are some important account groupings defined in the standard system for offset entry of the stock :

Accounting
Sr.No. Description
Group Code
1 BSA for initial entry of stock balances
2 PIP for pipeline liabilities
3 INV for expenditure/income from inventory differences
4 VBO for consumption from stock of material provided to vendor
5 VBR for internal goods issues (for example, for cost center)
6 VNG for scrapping/destruction
7 ZOB for goods receipts without purchase orders
8 ZOF for goods receipts without production orders

Prepared By: Tejas R. Shinde, Email id: [email protected]

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v. Valuation class of material

 A valuation class is used to determine the G/L account for the materials stock account. In automatic account
determination, you must create valuation classes and assign them to account category reference. While creating
material master records, you must select the appropriate valuation class in the Accounting view.
 The valuation class list in the material master record will depend on the material type. For example, in the
standard SAP system, material type ROH (raw material) has three valuation classes: 3000, 3001, and 3002.

 Configuration without the Automatic Account Determination Wizard

Step 1: Define Valuation Control (Tcode: OMWM)

Path: SPRO > SAP Reference IMG > Materials Management > Valuation and Account Assignment > Account
Determination > Account Determination without Wizard > Define Valuation Control
 For account determination, you can group together valuation areas by activating the valuation grouping code.
 The valuation grouping code can be made active or inactive by choosing the respective radio button.

Step 2: Assign Valuation Grouping Codes to Valuation Areas (Tcode: OMWD)

Path: SPRO > SAP Reference IMG > Materials Management > Valuation and Account Assignment > Account
Determination > Account Determination without Wizard > Group together Valuation Areas
 Within a chart of accounts, you can use the valuation grouping code to define individual account determination
for certain valuation areas or to define common account determination for several valuation areas (company
codes or plants).
 As shown in image , valuation grouping code 0001 is assigned to valuation area 1000,1100,1200 etc. and
company code 1000

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Step 3: Define Valuation Classes (Tcode: OMSK)

Path: SPRO > SAP Reference IMG > Materials Management > Valuation and Account Assignment > Account
Determination > Account Determination without Wizard > Define Valuation Classes
 Define the valuation classes allowed for material types. Define the account category reference and then the
valuation class for each account category reference. After that, assign the account category reference to the
material type.
 As shown below, account category reference 0001 is assigned to material type ROH, and valuation classes 3000,
3001, 3002 & 3003 are assigned to account category reference 0001 respectively. While creating the material
master record for material type ROH, you can select any one of these valuation classes.

Step 4: Define Account Grouping for Movement Types (Tcode: OMWN)

Path: SPRO > SAP Reference IMG > Materials Management > Valuation and Account Assignment > Account
Determination > Account Determination without Wizard > Define Account Grouping for Movement Types
 The account grouping is a finer subdivision of the transaction/event keys for account determination. During a
goods movement, the offsetting entry for the inventory posting (transaction GBB) can be made to different
accounts, depending on the movement type as shown below.

Sr.No. Movement Type Transaction Key Account Grouping Code GL Account

1 501 ZOB 500000
GBB
2 561 BSA 399999
 The account grouping is provided for the following transactions:
 Transaction GBB (Offsetting Entry for Inventory Posting)
 Transaction PRD (Price Differences)
 Transaction KON (Consignment Liabilities)
 Note: The account grouping in the standard system is only active for transaction key GBB.

Prepared By: Tejas R. Shinde, Email id: [email protected]

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Step 5: Configure Automatic Postings (Tcode: OBYC)

Path: SPRO > SAP Reference IMG > Materials Management > Valuation and Account Assignment > Account
Determination > Account Determination without Wizard > Configure Automatic Postings
 In this step, you assign GL accounts for inventory management and invoice verification transactions key that
result in automatic postings.
 To assign the G/L account, click on Account Assignment. You’ll see a list of transaction keys; double-click on the
key for which you want to set the G/L accounts. You need to define the valuation grouping code (also known as
the valuation modifier), valuation class, and G/L account, as shown below. You can then check your settings
using the simulation function.

 As shown in above image,GL account assignment is done for transaction key GBB,Valuation grouping code
0001,Valuation classes 3001 & 3002 with account modifier BSA & INV respectively. Similarly you can assign GL
accounts to other event keys.

 With above steps, configuration for automatic account determination is completed successfully.

Prepared By: Tejas R. Shinde, Email id: [email protected]

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 Accounting Entries :

 Some important account entries in SAP MM are as follows:

Movement Transaction Account

Sr.No. Description Symbol Credit/Debit
type Key Modifier

BSX + Debit
1 101 GR w.r.t to PO
WRX - Credit
BSX + Debit
GR w.r.t to PO for a
WRX - Credit
2 101 material with STD
price PRD +/- Credit/Debit
BSX - Credit
3 201 GI to cost Center
GBB VBR + Debit
GI via pipeline KON PIP - Credit
4 201 P
process GBB VBR + Debit
BSX + Debit
Transfer Posting BSX - Credit
5 301/303
from Plant to Plant
AUM +/- Credit/Debit
Consignment to KON - Credit
6 411K
own stock BSX + Debit
BSX + Debit
7 501 G.R. Without PO
GBB ZOB - Credit
Withdrawal of BSX - Credit
8 551
goods for scrapping GBB VNG + Debit
BSX + Debit
9 561 Initial Stock Upload
GBB BSA - Credit
Positive Difference BSX + Debit
10 701
Posting GBB INV - Credit
Negative BSX - Credit
11 702
Difference Posting GBB INV + Debit
BSX + Debit
BSV - Credit
G.R. During
WRX + Debit
12 101 K Subcontracting
FRL - Credit
Process
BSX - Credit
GBB VBO + Debit

Prepared By: Tejas R. Shinde, Email id: [email protected]