SAP Account determination MM-FI by Odaiah Pelley

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Fundamentals of MM-FIAccount
Determination
Several colleagues haveasked questions about integration between Materials
Management (MM) and Financial Accounting (FI) module:
- How do postings fromMM flow into FI?
- How do we find out whatoccurs behind-the-scenes?
- How do we identify which movement types are pointing to a specific GL
Account?
- Is there a way by which wecan change the posting to a different General Ledger
(GL) Account?
- How does one create a new movement type and assign it to a specific GL
Account?
Many SAP practitioners – ITand business alike – are in similar situation and do not
know whereto starton MM-FI data flow and reconciliation. This blog is an
attempt to clarify the fundamentals of MM-FI accountdetermination.
Configuration transaction OBYC forms the core of SAP’s integration between the
MM, FI, and Controlling (CO) modules in a traditional SAP ERP system
Transaction keys(1) are used to determine general ledger accounts used by the
system. Accountmodifier is used to differentiate account determinations,
depending on the procedure. [Transaction and accountmodifiers can be seen as a
logical grouping similar types of transactions]. The transaction-accountmodifier,
along with the valuation class, drives the accounting entries. Transaction keys are
predefined in the SAP systemand cannotbe changed.

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Figure1: OBYC setup for BSX – Inventory posting
Many of you may have seen an accounting entry at the time of the purchaseof
raw material as a debit to inventory and credit GR/IR. The configuration setup of
transaction BSX (inventory posting) is responsiblefor the inventory posting (see
Figure1), and WRX (GR/IRclearing account) is responsiblefor GR/IRposting.
When movement type 101 is used to record the goods receipt of raw material
(valuation class 3000) for a purchaseorder, the systemlooks up the GL Account
for transaction BSX and WRX for valuation class 3000 and records it in the
accounting document.

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Figure2: OBYC setup for GBB-VBR – Consumption to Order
Similarly, when raw material is consumed using movement type 261, thesystem
looks up transaction GBB (offsetting entry for inventory posting) for account
modifier VBR (consumption for internal goods issues), and that reflects the GL
Account in the accounting document (see Figure2)
Figure3 provides a summary of few important movement types and accounting
entries. Business process is listed in the column furthest to the left, with
movement type in the next column, and the debit and credit posting in the
subsequentcolumns.
There is a column for transaction and account modifiers; as wenoted earlier,
these are SAP’s terms for logically grouping similar types of transactions. The
transaction account modifier, along with the valuation class, drives the accounting
entries.
The OBYC MM-FI accountdetermination configuration is set up at the time of
original implementation, and once set up, these accounts arederived behind the
scenes. You’ll want to test the setup beforegoing live to ensurethat the correct
accounts are being hit for the respectivetransactions. You can change this
configuration after go-live, but the revised setup needs to be thoroughly tested.
Otherwise, wemay run the risk of impacting regular operations.

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Figure3: Summary of select movement types and accounting entries
Key take-aways:
 Transaction-accountmodifier and valuation class drivethe accounting entries
 Transaction key: determines general ledger accounts for posting
 Account modifier: differentiates account determination based on procedure
 OBYC MM-FI Accountdetermination setup is stored in underlying table T030
 OMJJ Movement Typesetup is stored in underlying table T156X
 Combine these two tables (via SQ00 query, or simply on Excel)
 The account modifier links the Movement Type to the Accounting entries
I hope this write-up was usefuland explained the fundamentals to the readers.
(1) - The transaction key in MM-FI accountdetermination isnot the same as
transaction code. A transaction code is an alphanumeric code thatrepresentsa
particular task in SAP. It allows usersto access tasks directly without having to use
menu paths.