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					There are many transactions in Material Management (MM) that relevant for Accounting. These
transactions must be recorded in accounting documents that contain the postings made to the G/L
accounts in Financial Accounting (FI). The mostly used MM transactions that relevant for FI can be
seen at Accounting Journals of SAP Material Management (MM) Transactions.
For those transactions, as far as possible, the SAP R/3 System should determine automatically the
G/L account numbers that are involved in the accounting journal. By doing so, we can minimize the
inputs and error possibilities made by MM end-users who perform the transactions as they don’t
determine the G/L account numbers.
We can do this by Automatic Account Determination process in MM configuration (T-code: SPRO).
The automatic account determination process must be done together with Accounting Department.
The influencing factors that determine how SAP choose the G/L account numbers that are involved
in the accounting journal for MM transactions are:

Chart of accounts of the company code
We must assign a chart of account to each company code. Several company codes can use the
same chart of accounts. This process must be done in FICO configuration. You can learn how to
configure FICO module in its relation with MM module at SAP FICO minimal configuration for MM
posting.
SAP R/3 determines the chart of account affected by MM transaction from the company code or
plant entered by user when performs a transaction. We must define the automatic account
determination individually for each chart of accounts.

Valuation grouping code of the valuation area
See Material Valuation to know more about valuation area. The Valuation grouping code is a key to
differentiate account determination by valuation area within a chart of account. Valuation grouping
code is also called Valuation modification.
SAP screenshots of How to activate the valuation grouping code(T-code: SPRO/OMWM):
SPRO menu:
IMG - Materials Management-Valuation and Account Assignment - Account Determination - Account
Determination Without Wizard-Define Valuation Control
A valuation grouping code consists of a group of valuation areas that can have same account
determination in a specific chart of account. It is a tool that enables us to configure the automatic
account determination with a minimum of effort.
If we activate the valuation grouping code in configuration process, we have to assign a valuation
grouping code to each valuation area.
SAP Screenshots of How to define valuation grouping code (T-code: SPRO/OMWD):
SPRO menu: IMG - Materials Management-Valuation and Account Assignment - Account
Determination - Account Determination Without Wizard - Group Together Valuation Areas.




           By activating and using the valuation grouping code, we don’t have to configure account
            determination for each valuation area (that is a plant or company code) if we don’t want
            to differentiate it for each valuation area. If we want the automatic account determination
            within a chart of accounts runs differently for valuation areas, we can assign different
    valuation grouping codes to these valuation areas.
    We 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.
    For example, if we want to differentiate the account determination for a group of two
    plants with another group of other three plants in a company code (where the valuation
    level is plant), we can assign a valuation grouping code for the group of two plants and
    another valuation grouping code for the group of other three plants. By doing so, we just
    have to configure the account determination for the two valuation grouping codes, no
    need for five valuation areas (plants).
    SAP R/3 determines the valuation area and the valuation grouping code affected by MM
    transaction from the company code or plant entered by user when performs a
    transaction.
   Valuation class of material
    The valuation class is a key to differentiate account determination by materials. For
    example, we can post a goods receipt of a raw material to a different inventory account
    than if the goods receipt were for finished-product.
    We can do this by assigning different valuation classes to the raw material and finished-
    product and by assigning different G/L accounts to the posting transaction for every
    valuation class. If we don’t want to differentiate account determination according to
    valuation classes we don’t have to maintain a valuation class for a transaction.
    The valuation class must be entered in the accounting data view of material master data
    for a valuated-material. The allowed valuation classes for a material depend on its
    material type. More than one valuation class can be allowed for a material type. More
    than one material type can be allowed for a valuation class. The relationship between
    valuation classes and material types is established by the account category reference.
    The account category reference is a compilation of valuation classes. A material type is
    assigned to only one account category reference.
SAP screenshots of How to define valuation classes (T-code: SPRO/OMSK)
SPRO menu: IMG - Materials Management-Valuation and Account Assignment - Account
Determination - Account Determination Without Wizard-Define Valuation Classes.
   Transaction/event key (internal processing key)
    The Transaction/event key is a key to differentiate account determination by business
    transaction. For example, we must differentiate G/L account posted by goods receipt
    transaction and posted by invoice receipt transaction.
    Posting transactions are predefined for those inventory management and invoice
    verification transactions relevant to accounting. Posting records, which are generalized in
    the value string, are assigned to each relevant movement type in inventory management
    and each transaction in invoice verification. These contain keys for the relevant posting
    transaction (for example, inventory posting and consumption posting) instead of actual
    G/L account numbers.
    We do not have to define these transaction keys, they are determined automatically from
    the transaction (invoice verification) or the movement type (inventory management). All
    we have to do is assign the relevant G/L account to each posting transaction.
    You can see list of transaction key here.
   Account grouping(only for transaction: offsetting entries, consignment liabilities, and
    price differences)
    Account grouping is a key that allows us to subdivide number assignments for each
    transaction key in account determination.
    Account grouping is also called general modification. Since the posting transaction
    "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, expense/income from inventory differences),
    it is necessary to divide the posting transaction according to a further key: account
    grouping code.
    An account grouping is assigned to each movement type in inventory management
    which uses the posting transaction "Offsetting entry for inventory posting". Under the
    posting transaction "Offsetting entry for inventory posting", we must assign G/L accounts
    for every account grouping, that is, assign G/L accounts.
    If we wish to post price differences to different price difference accounts in the case of
    goods receipts for purchase orders, goods receipts for orders, or other movements, we
    can define different account grouping codes for the transaction key.
    Using the account grouping, we can also have different accounts for consignment
    liabilities and pipeline liabilities.
    see list of account grouping
   Configure Automatic Postings

   Automatic Postings are postings made to G/L accounts automatically in the case of
    Invoice Verification and Inventory Management transactions relevant to Financial and
    Cost Accounting.
           When entering the goods movement, the user does not have to enter a G/L account,
            since the SAP R/3 System automatically finds the accounts to which postings are to be
            made using the influence factors as explain above.
           SAP Screenshots of how to configure automatic posting (T-code: SPRO/OBYC):


      Posting made in the case of goods receipt (GR) to purchase order (PO):

   


                                  GR/IR Clearing
   Inventory account                 Account


         500                                      500



We need to update the BSX transaction key (Inventory posting) with the GL code Inventory account.
SPRO menu:
IMG - Materials Management-Valuation and Account Assignment - Account Determination - Account
Determination Without Wizard - Configure Automatic Posting.
Enter Chart of Account which we want to configure its account determination, then enter the G/L
account affected by the transaction as below:
We also need to update the WRX transaction key with the GL code GR/IR Clearing account.
Enter Chart of Account which we want to configure its account determination, then enter the G/L
account affected by the transaction as below:
posting made in the case of goods issue to cost center:



                               Material consumption
   Inventory account            expense account


                     500               500
We have configured the inventory posting transaction in the previous section (GR to PO).

Now, we have to configure transaction key GBB. GBB key is used for various offsetting posting
entries. Within GBB transaction there are various account grouping (general modification). In this
case we need to update general modification VBR with the material consumption expense account.
Enter Chart of Account which we want to configure its account determination, then enter the G/L
account affected by the transaction as below:
Further to my post on Mar-24-09 I wld like to add that in tcode OMSK ACRef is assigned to
Val.classes and then ACRef is assigned to Mat.Types thus creating relationship among
val.classes and mat.types.


I think the A/c Cat.Ref. is only used to establish many to many relationship between Material
Types       and       Valuation      Classes.Consider       the      following      example:
Mat.type                                                                               Val.Class
a                                                                                              x
a                                                                                              y
a                                                                                              z
b                                                                                              x
b                                                                                              y
b                                                                                              z
c                                                                                              x
c                                                                                              y
c                                                                                              z
this way we are is using 3-as, 3-bs, 3-cs as also 3-xs, 3-ys and 3-zs. Not only that we are using
more number of lines but also it is difficult to understand. Moreover, if we assign mat.types to
val. classes as above, it is against normalization rules of DataBase management bcoz they
creat                                      redundent                                       data.
I feel I should be right.


            Appreciate the effort especially in connecting Valuation Class, Valuation
            Grouping Code (Valuation Modification) and Account Grouping (where
            applicable).


            I have one question though (at the end of the following restatements)


            1. The Valuation Class is on the part number. It is an attribute of the product.
            Right?


            2. The Valuation grouping code is an attribute of the Valuation area e.g. a
            plant or a warehouse, which is part of the inventory movement transaction.
            Right?


            3. The Transaction/Event key and the Account Grouping are connected to the
            Business Transaction type. Right?


            In all screen shots shown connecting the three/four attributes above with a
GL account do not include the Account Category Reference. quote "The
relationship between valuation classes and material types is established by
the account category reference."


What is the role of ACR in account determination?

				
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posted:11/13/2011
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