How to configure account determination?

Purpose
The purpose of this page is to describe the main customizing settings for Account Determination.

Overview
For every goods movement created for a valuated material, the SAP system can create two types of documents: a material document and an
accounting document. The SAP system follows the accounting principle that for every material movement, there is a corresponding document that
provides details of that movement. In addition, an accounting document is produced that describes the financial aspects of the goods movement.

The material document and accounting (FI) document creation depend on the movement type configuration.

Through the movement type configuration and based on the customizing settings defined for the account determination the SAP System can do
automatic account postings.

To determine the customizing settings for Account Determination you should GO through the following customizing path: SPRO -> IMG ->
Materials Management -> Valuation and Account Assignment -> Account Determination.

Below sections describe the two ways to define the account determination: Account Determination Wizard and Account Determination without
Wizard.

Account Determination Wizard

It is a proposal from SAP System to define the account determination.

In this step, you can quickly configure the system to make automatic postings by answering the wizard's questions. The wizard undertakes the
functions of the following steps:

1. Defining valuation control

2. Grouping valuation areas

3. Defining valuation classes

4. Defining account grouping for movement types

5. Purchase account management

6. Configuring automatic postings

You can continue to use these transactions either in conjunction with or instead of the wizard.

Account Determination Without Wizard

In this step, you can manually define the settings for account determination in Inventory Management and Invoice Verification.

Account determination without the wizard enables you to make a more complex configuration than account determination with the wizard, but
requires that you are already familiar with the principle of automatic account determination in the ERP System.

You can configure account determination with the wizard in the first instance, for example. Then, if the wizard does not meet your company's
account determination requirements, you can work without it.

You have to work without the wizard if you use the material ledger (this is standard).

Define Valuation Control

It can be configured by the following customizing path: SPRO -> IMG -> Materials Management -> Valuation and Account Assignment ->
Account Determination -> Account Determination without Wizard-> Define Valuation Control.

It defines if the valuation areas will be grouped by activating the valuation grouping code. This makes the configuration of automatic postings
much easier.

In the standard SAP R/3 System, the valuation grouping code is set to active as default setting.

Firstly, you should create the valuation grouping code.

It corresponds to the transaction OMWM.

OMWM - Valuation Control

Group together Valuation Areas

It can be configured by the following customizing path: SPRO -> IMG -> Materials Management -> Valuation and Account Assignment -> Account
Determination -> Account Determination without Wizard-> Group together Valuation Areas.

In this step, you assign valuation areas to a valuation grouping code.

Valuation area corresponds to the organization level in which the valuation will occur. Or the valuation occurs at the plant level or it occurs at the
company code level.

The valuation grouping code makes it easier to set automatic account determination. Within the chart of accounts, you assign the same valuation
grouping code to the valuation areas you want to assign to the same account. The chart of account is a list of accounts.

Within a chart of accounts, you can use the valuation grouping code:

to define individual account determination for certain valuation areas (company codes or plants)

Example:

The valuation areas 0001 and 0002 are assigned to company codes which use the same chart of accounts. For both valuation areas, however,
you would like to define a different account determination.
You must assign different valuation grouping codes (for example, 0011 and 0022) to both valuation areas.

to define common account determination for several valuation areas (company codes or plants)

Example:

Valuation areas 0003 and 0004 are assigned to company codes which use the same chart of accounts. Account assignment for both valuation
areas should be similar.

You assign the same valuation grouping code (for example, 0033) to both valuation areas. Thus, you only have to define account assignment for
both valuation areas once.

Requirements:

You must have activated the valuation grouping code in the step Define valuation control (OMWM).
You must have defined the valuation level in corporate structure Customizing. The valuation level is defined in transaction OX14 where
you should decide if the valuation will occur at the plant level or company code level.
You must have assigned each plant to a company code in "Enterprise structure" into the Customizing. When assigning your plants, the
valuation areas are defined automatically. To assign a plant to company code you should go to transaction OX18.

OX14 - Define Valuation Level

Recommendation:

SAP recommends that you only use a valuation grouping code within a chart of accounts in order to prevent account determination from
becoming confusing.

Default settings

In the standard SAP system, valuation is predefined at plant level. All plants are grouped together via valuation grouping code 0001.

Group together Valuation Areas corresponds to the transaction OMWD.

OMWD - Account Determination for Valuation Areas

Define Valuation Classes

It can be configured by the following customizing path: SPRO -> IMG -> Materials Management -> Valuation and Account Assignment ->
Account Determination -> Account Determination without Wizard->Define Valuation Classes.

In this step, you define which valuation classes are allowed for a material type.

If an user creates a material, he/she must enter the material's valuation class in the accounting data (Accounting 1 and 2 views). The ERP system
uses your default settings to check whether the valuation class is allowed for the material type.

The valuation class is a key to group materials with the same account determination. The valuation classes depend on the material type. Several
valuation classes are generally allowed for one material type. A valuation class can also be allowed for several material types.

The valuation class determines the G/L accounts which will be updated as result of the goods movement generated for the material.

The valuation class makes it possible to:

Post the stock values of materials of the same material type to different G/L accounts
Post the stock values of materials of different material types to the same G/L account

MM03 - Display - Acoount 1 view

The link between the valuation classes and the material types is set up via the account category reference.

The account category reference is a combination of valuation classes. Precisely one account category reference is assigned to a material type.

Requirements

You must have defined your material types.

You must have defined the chart of accounts.
You must have agreed with Financial Accounting which materials are assigned to which accounts.

Default settings

In the standard SAP R/3 System, an account category reference is created for each material type. The account category reference is, in turn,
assigned to precisely one valuation class. This means that each material type has its own valuation class.

OMSK Account Category reference/valuation class

OMSK Account category reference button

OMSK - Valuation Class Button

OMSK - Material Type/Account category reference

 Define Account Grouping (account modifier) for Movement Types

Using this function, you can assign an account grouping to movement types. The account grouping is a finer subdivision of the transaction/event
keys for the account determination.

The account grouping is provided for the following transactions keys:

GBB (offsetting entry for inventory posting)

PRD (price differences)
KON (consignment liabilities)

The account grouping in the standard system is only active for transaction key GBB (offsetting entry for inventory posting).

OMWN - Define Account Grouping for Movement Types

Purchase Account Management

It is used to attend legal requirement from specific countries (France, Italy, Finland, Belgium, Spain and Portugal). In this step, you will define a
specific valuation and a separate accounting document for Purchase Order postings.

Configure Automatic postings

In this step, you enter the system settings for Inventory Management and Invoice Verification transactions for automatic postings to G/L accounts.

You can then check your settings using a simulation function.

What are automatic postings?

Postings are made to G/L accounts automatically in the case of Invoice Verification and Inventory Management transactions relevant to Financial
and Cost Accounting.

Example:
Posting lines are created in the following accounts in the case of a goods issue for a cost center:

Stock account
Consumption account
How does the system find the relevant accounts?

When entering the goods movement, the user does not have to enter a G/L account, since the ERP system automatically finds the accounts for
each posting based on the following data:

Chart of accounts of the company code

If the user enters a company code or a plant when entering a transaction, the ERP system determines the chart of accounts which is valid for the
company code.

You must define the automatic account determination individually for each chart of accounts.

Valuation grouping code of the valuation area

You must define the automatic account determination individually for every valuation grouping code within a chart of accounts. It applies to all
valuation areas which are assigned to this valuation grouping code.

If the user enters a company code or a plant when entering a transaction, the system determines the valuation area and the valuation grouping
code.

Transaction/event key

You do not have to define these transaction keys, they are determined automatically from the transaction (invoice verification) or the movement
type (inventory management). In this step, you can only insert the account number for each transaction key.

Account grouping (modifier) (only for GBB, PRD and KOM)

Since the transaction key GBB is used for different transactions (for example, goods issue, scraping, physical inventory), which are assigned to
different accounts (for example, consumption account, scrapping, expense/income from inventory differences), it is necessary to divide the
posting transaction according to a further key: account grouping code.

Valuation class of material or (in case of split valuation) the valuation type

The valuation class allows you to define automatic account determination that is dependent on the material.

You can achieve this by assigning different valuation classes to the materials and by assigning different G/L accounts to the transaction key for
every valuation class.

Default settings:

G/L account assignments for the charts of accounts INT and the valuation grouping code 0001 are SAP standard.

OMWB - Configure Automatic Postings

OBYC - Maintain FI configuration
How to test my account determination settings?

You should go to transaction OMWB and click on simulation button. Then, insert the affected material, the correspondent plant and the
movement type. After that, click on account assignments button and you will see the simulations result.

OMWB - Simulation
Important:

Report DFKB1INT: run it in transaction SE38. It is used to shows us the possible values for the account determination customizing settings. If the
customer changed something here, it is not standard anymore.

Related Content
Related Documents
SAP WIKI ERP SCM-MM

Related Notes