Automatic Account Determination
Different transactions in inventory management and invoice verification are relevant to accounting. The system records these transactions into an accounting document that contains the postings to the Finance general ledger (G/L) accounts. The program should automatically determine the G/L accounts to which you make the postings in such a document.
For example, when you issue raw material for a production order, the system makes postings to stock accounts (under credits) and consumption accounts (under debits). Automatic account determination is a procedure applied to accounting-relevant transactions and is used to identify the G/L accounts to which it makes postings without any user intervention. You must enter these accounts in a special table in Customizing for the transactions in inventory management and invoice verification.
Sample Automatic Postings
The procurement process is based on the following business processes:
1. An order was created with a quantity of 10 pieces at a price of EUR 12 per piece. The
material is valued at a standard price of EUR 10 per piece.
2. In step 1, the system posts the goods receipt (GR).
3. In step 2, the system posts the IR for the PO.
The system automatically determines the relevant G/L accounts for every transaction in MM. A transaction in MM, for example, GR for PO, consists of a number of accounting operations, such as stock posting (transaction key BSX) and GR/IR clearing posting (transaction key WRX).
Usage of Automatic Account Determination
This figure shows the typical G/L postings that can occur in the event of a GR into the warehouse or stores or an IR for a PO item of the standard category without an account assignment.
The MM transactions for which you can set up automatic postings occur in the areas of inventory management, invoice verification, and material valuation. MM transactions also include goods movements triggered by production or sales operations.
Influencing Factors for Account Determination
In Customizing for Financial Accounting (FI), you can specify the chart of accounts for each company code. For example, the chart of accounts specifies the G/L accounts that are to be used for stock and expense postings. You must set up account determination for each chart of accounts separately because the meaning of individual G/L accounts depends on the chart of accounts. In addition, set up automatic postings as a function of the valuation area for which the transaction is recorded.
Automatic Postings Based on Organizational Level
In the example displayed in the figure, the valuation level is a plant. If the valuation area is a plant, assign plant-based postings to only specific G/L accounts. For example, using a plant dependent account number assignment, you can post transactions or events related to the production process in one plant to different G/L accounts and cost elements than the transactions or events related to the same production process in another plant. The figure
shows that the system can make postings to different stock and expense accounts for the same material and the same transaction or event. A possible reason for these postings might be that one plant produces a material and the other plant consumes this material as a component. Use different stock accounts because you cannot use plant-specific material types for a material.
Automatic Postings Based on Material or Material Type:
You can also set up automatic postings as a function of the material and the relevant material type for which a transaction is recorded. You analyze the various material types in your company for the stock postings. Depending on the procurement type, you may need one or more stock accounts to differentiate between the materials produced in-house and procured externally.
The figure shows an example where you can make automatic postings to different accounts for the same transaction in the same plant, depending on the material type and material. You can also set up automatic postings, depending on the specific transaction or event that leads to an update in the accounting system. In an SAP system, the receipt value might be posted to a stock account in certain transactions and to an expense account in other transactions.
Automatic Postings Based on MM Transactions/Events
The figure shows the postings for two different business processes. The upper block shows GR postings into the warehouse for a PO item without account assignment and with the item category standard. The lower block shows the posting for a change in the valuation price. If you change the price (revaluation), the system generates an accounting document (if that stock exists).
Automatic Postings Based on MM Transaction Events
When you record goods movements in an SAP system, post the movements to specific business process by defining their movement type. For example, you can post an issue of material for a production order with movement type 261. In contrast to this consumption posting, you can post inventory differences to a special expense account. To show the expenditure for production and inventory differences separately in Financial Accounting and Cost Accounting, set up and assign different accounts to the corresponding types of goods withdrawal postings.
Procedure for G/L Account Determination When entering a goods movement, you do not need to enter a G/L account because the SAP system finds it automatically.
The SAP system determines the G/L account based on the following data:
● Organizational level
● Business transaction
You directly or indirectly specify the plant(s) for the goods movement. The system determines the following details from this specification:
● The company code to which the plant belongs and the chart of accounts for this company code
● The valuation area to which the plant is assigned and a key that can be used for differentiated account number assignment per valuation area.
You specify directly or indirectly the material for which the goods movement is to be entered. The system determines the following details from this specification:
● The material type of the material and the indicators showing whether quantity-based and/or value-based updates have been defined for it.
● The valuation class of the material, which you enter in the accounting data of the material master record and which is responsible for differentiated account number assignment, depending on the material and material type
Business Transaction In inventory management, specify a movement type (directly or indirectly) by which the goods movement is to be posted. The movement type allows you to differentiate between goods movements (for example, GR, goods issue, and transfer posting). The movement type symbolizes the business transaction or event represented by the goods movement. Among other things, the system determines the following details from this data:
● The specifications for posting to FI accounts
● The specifications for updating stock and value fields in the material master record Selecting a process in invoice verification (invoice, debit memo, subsequent debit, or subsequent credit) controls which postings are required for that process. The system also checks whether the quantity that was calculated or credited by the process is still in stock (stock coverage). During IR, for a material that is valuated using the moving average price, the system may post to a price difference account if the invoice price differs from the order price and the calculated or credited quantity is no longer or only partly in stock.