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BijayKumarBarik
Active Contributor
66,832

{This is my 2nd blog in SCN and 1st blog in SAP ERP - Logistics Materials Management (SAP MM) Forum. I do realise and strongly believe now, there is another part of SCN world rather than answering the thread/threads where I expressed in my SCN 1st blog ‘Me, Myself, SDN and now SDN is SCN @10Years’ http://scn.sap.com/community/about/blog/2013/10/07/me-myself-sdn-and-now-sdn-is-scn-10years for “SCN and Me- Blog Competition” http://scn.sap.com/docs/DOC-45348}.

Every movement of goods is followed by movement type only and without movement type use / without help of movement type - no goods movement is possible in SAP. During goods movement of transaction posting, movement type trigger transaction event key and G/L account assignment triggers based transaction event key (OBYC) with valuation class where valuation class determines the valuation class available in material master which is used for transaction posting. For automatic account determination, the vital direct parameters involves are  movement type, valuation class, chart of account, valuation area, business key (transaction key), valuation grouping code{ valuation modification or valuation modifier}, account grouping code{general modification or general modifier },nature of G/L account ,posting keys and value string.

Moderately understandable, only large vital factor - valuation class in material master determine G/L account on goods movement for a movement type and then, all are happy on validation in/for business process by cross checking accounting entries in each case/stage. Essential regard to account category reference (which is very much responsible of having valuation class in material master), play grandparent role by being silent friend for success to automatic account determination process.

The account category reference (ACR) is an artificial code of four characters which allows flexibility in linking material type with valuation class. In reality, the valuation class is linked to an account category reference and account category reference linked to material type. In other term account category reference is used to simplify the assignment of permitted valuation class/valuation classes to the material type/ material types.

Business Case-1: How to use Account Category Reference

Based on requirement, business can have one material type, one account category reference and one valuation class by assigning material type to account category reference and then assigning account category reference to valuation class. For example business can have one custom material type ZROM (Raw Material) with custom account category reference (Z001) and new valuation class (3005) for Raw Material(Raw material - inventory managed with quantity and value)

During material creation with transaction code: MM01 with certain material type manually or by any uploading tool, only one permitted valuation class is defaulted for that material type by account category reference. So in material creation process no chance of making any mistakes by users or by any uploading tool.

Business Case-2: How to use Account Category Reference

Based on requirement, business can have one material type, one account category reference and multiple valuation classes by assigning material type to account category reference and then assigning account category to valuation classes. For example business can have one custom material type ZROM (Raw Material) with custom account category reference (Z001) and new valuation classes i.e. (3005) for Raw Material, (3006) for Chemicals and (3007) for Filter material (all materials are inventory manage with quantity and value)

During material creation with transaction code: MM01 with certain material type manually or by any uploading tool, only permitted valuation classes are defaulted for that material type by account category reference . Here, there is a chance of entering wrong valuation class by user manually or through upload file using a tool which needs to be validated.

Business can go for designing a custom transaction code where material can be created through uploading file which can be verified by central material creation officer.

Business Case-3: How to use Account Category Reference

Based on requirement, business can have multiple material types, one account category reference and multiple valuation classes by assigning material types to account category reference and then assigning account category reference to valuation classes. For example business can have three custom material types such as  ZROM (Raw Material), ZCHE(Chemicals ) and ZFIL(Filter material ) with one custom account category reference (Z001) and three new valuation classes ie.. (3005) for Raw Material, (3006) for Chemicals and (3007) for Filter material (all materials are inventory manage with quantity and value)

During manual material creation with transaction code: MM01 or material creation by any uploading tool, only permitted valuation classes are defaulted for that material type by account category reference. Here, entering correct combination of material type for material and valuation class are expected through manually or through upload file which needs to be validated.

Business can go for designing a custom transaction code where material can be created by referring uploading file which can be verified by central material creation officer.

Also business can think of having “material master creation form” for any new material master creation, if necessary material code/ material number is not available in system – User/Users can fill the “template of uploading file’ with duly filled “material master creation form” and send for approval.On appropriate check and verification with approval from approving authority, if central material creation officer is happy, then he /she can upload file with custom transaction code for new material code.

Reference:

http://scn.sap.com/thread/1748734

https://scn.sap.com/thread/2012467

http://scn.sap.com/thread/3158751

Before concluding, based on business scenarios and material behaves to business on purchasing, inventory management and accounting management – one can decide on usage of valuation class and material type permitted by account category reference.

Thanks for your time to read my 2nd Blog. Also I would like to thank all my present project team members for their great encouragement and strong motivation.

Regards,

Biju K

120 Comments
Former Member
0 Kudos

Thank you so much bijay for clear elucidation on ACR..

Thanks

kiran

BijayKumarBarik
Active Contributor
0 Kudos

Ruben,

Thank You, I appreciate that you like this blog :smile:

Regards,

Biju K

Former Member
0 Kudos

Structurely documented and with good illustrations used how a automatic account determined, great job Bijay.

regards

Srini

0 Kudos

This blog refreshed the importance of ACR & also emphasizes on choosing the right combination of valuation classes & material types.

Thanks a lot Bijay

Best Regards,

Swapnil

BijayKumarBarik
Active Contributor
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Kiran,

Good to see your words of appreciation :smile:

Regards,

Biju K

BijayKumarBarik
Active Contributor
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Srinivas,

Thanks for your comment!

Good to see you like the concept behind :smile:

Regards,

Biju K

BijayKumarBarik
Active Contributor
0 Kudos

Swapnil,

Thanks a ton for the great compliments.

Your feedback on "Logic Behind this Blog" is very special and encouraging :smile: . Thank you again!

Regards,

Biju K

Former Member
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Hello Sir,

Very Useful Information and the illustration with examples is very good.

Thanks for sharing.

Expecting many such useful posts !!!

Regards

Chitra

Former Member
0 Kudos

Hello Bijay,

Nice document..Your contributions in SCN are very helpful and informative. Thank you for sharing your knowledge and valuable time..

Regards

Sesha.

former_member185462
Active Participant
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Hi Bijay,

Informative!Thanks for sharing.

Former Member
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Hi Bijay,

This is the first time i am reading your blog. This is a very good blog that will help the beginners to understand the use of account category reference. Hope to get lot of such blogs from you.

Former Member
0 Kudos

Nice document Bijay. And, a good title for ACR - Grandfather :smile:

former_member221213
Participant
0 Kudos

Good Document

Rohidas

BijayKumarBarik
Active Contributor
0 Kudos

Chitra,

Thank you for your wonderful compliment. Your feedback one is very helpful and encouraging :smile:

Regards,

Biju K

BijayKumarBarik
Active Contributor
0 Kudos

Sesha,

Thank you for the pleasure of your support and goodwill :smile:

Much appreciated!!!

Regards,

Biju K

BijayKumarBarik
Active Contributor
0 Kudos

Pradeep,

Good to see your appreciation :smile: .Thank you!

Regards,

Biju K

BijayKumarBarik
Active Contributor
0 Kudos

Vimalanathan,

Thanks for your compliment, I'm glad you like the blog :smile:

If time permits, I will go for a creativity thought to my upcoming blog!

Biju K

Former Member
0 Kudos

Very useful post.

Thanks

Danny

BijayKumarBarik
Active Contributor
0 Kudos

Lakhya,

Thanks a lot, I'm glad you like the title of this blog!!!!

Regards,

Biju K

BijayKumarBarik
Active Contributor
0 Kudos

Thank you!

Regards,

Biju K

former_member183424
Active Contributor
0 Kudos

Much clear about Account Assignment Category Reference...

Thank for sharing...

Just one confirmation about ACR:

We can use many valuation classes for one material type via ACR and as well as we can use one valuation class for many material types via ACR

Isn't it biju.k ???

Former Member
0 Kudos

yes.... :smile:

BijayKumarBarik
Active Contributor
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Dev,

Yes, in system you can do it but how your new model and your unique solution will help to your business process at the end for reporting!

You solution/solutions should empower for the business and business user by providing a lot of flexibility to try different planning models with Bottom up and Top down approach.

Regards,

Biju K

BijayKumarBarik
Active Contributor
0 Kudos

Danny,

Thanks for your comment :smile:

Regards,

Biju K

Former Member
0 Kudos

hi bijay

i am interested to gain in-depth knowledge in sap mm can you please help me with that thanks

Regards

sam

BijayKumarBarik
Active Contributor
0 Kudos

Sam,

To get in-depth knowledge - Everyday spend 6 to 7 hours per day in SCN for six months and also do spend 5 hours with system.

Good Luck!!

Regards,

Biju K

Former Member
0 Kudos

Hi Bijay,

Very useful document. Thank you

Regards,

Bhanu

Former Member
0 Kudos

Hi Bijay,

I saw another case like below

Mtype    ACR     VClass

HALB     0005     3100

ZROH    0005     3100

ZERT     0005     3100

is this also like case1?

Thanks

Kiran

former_member183424
Active Contributor
0 Kudos

No, This details is not provided in this blog..

But you can keep this on case 2.

Just vice-versa from material type and valuation class..

In that case..

3 material type has same ACR and 1 valuation class contain the same ACR..

BijayKumarBarik
Active Contributor
0 Kudos

Kiran,

You can permit multiple Material types to single valuation class with help of one Account category reference.

But in your case - you can not keep it as HALB represent Material type Semifinished products,ZROH which is copy of ROH Material type  represent Raw materials and  ZERT which is copy of FERT Material type represent Finished products.

So you can keep it as following

Mtype    ACR     VClass

HALB     0008     7900

ZROH    0001     3000

ZERT     0009     7920

OR you can create new valuation classes and Account category references and assigned as following:

Mtype    ACR     VClass

HALB     0008     7900

ZROH    Z001     3008

ZERT     Z009     7950

Regards,

Biju K

Former Member
0 Kudos

Thanks bijay..

Former Member
0 Kudos

Its very useful..thanks

BijayKumarBarik
Active Contributor
0 Kudos

Thank you.

Regards,

Biju K

former_member204661
Contributor
0 Kudos

Dear Bijay,

This by far has been the best article, That I have ever come across on AAD, If you and the person behind this blog SAP MM Automatic Account Determination « Sapdup could come together and write a document on Automatic Account Determination, it would become the one stop guide for all SAP consultants.

Have learnt a lot in SAP from your replies to queries, please carry on with the phenomenal work that you are doing.

Best Regards

Shailesh

former_member184065
Active Contributor
0 Kudos

Biju sir,

Thank you for sharing this document.

If you create one document with your experienced major issues in MM then it would be very nice to all SCN folks including me :smile: .

Thanks,

Naren

BijayKumarBarik
Active Contributor
0 Kudos

Shailesh,

Thanks a lot for constant interest to my replies! Your feedback one is very helpful & encouraging. If sufficient time permits, I will go soon for creativity thought to my upcoming blogs with better title.

Regards,

Biju K

BijayKumarBarik
Active Contributor
0 Kudos

Naren,

Thank you for the compliments :smile: . Just follow SCN threads for all type of issues, which will enrich your knowledge and skills.

Regards,

Biju K

prabhakaran_m
Explorer
0 Kudos

Hi Biju, Nicely presented and very informative. Thanks for sharing the valuable information. Regards, Prabhakaran M

Former Member
0 Kudos

Hi Biju,

Very well explained (The best I have ever found) and very informative too.

FYI...Whenever I have any issues I always check for your explanation on SDN because you explain the concept very clearly and in detail too.

Thanks once again the way you explain things..

Thanks,

S.P

manjunathbl
Participant

Dear Biju Sir,

It is very informative and i have read your other document "who is the owner of material master". Innovative and very easy to understand. Thank you for sharing knowledge.

Regards,

Manjunath B L

BijayKumarBarik
Active Contributor
0 Kudos

Prabhakaran,

Thank you for your appreciation :smile:

Regards,

Biju K

BijayKumarBarik
Active Contributor
0 Kudos

SP,

Thank you for your encouragement :smile:

Regards,

Biju K

binoy_vargis1
Active Contributor

Hi Biju,

Nice narration.

Regards

Binoy

BijayKumarBarik
Active Contributor
0 Kudos

Manjunath,

Thank you for your appreciation and encouragement :smile:

Regards,

Biju K

bobbyp450
Explorer

best of all blog so far ...very detail oriented information specifically on

OBYC.

BijayKumarBarik
Active Contributor
0 Kudos

Binoy,

Thank you :smile:

Regards,

Biju K

BijayKumarBarik
Active Contributor
0 Kudos

Vick,

Thank you for your appreciation :smile:

Regards,

Biju K

bobbyp450
Explorer

you are always welcome Guruji

jeff_lu2
Participant

it is a really excellent blog for me to understand the relationship between material master and valuation side .

Keep more nice blog in high productivity!

Former Member

Good effort. Keep contributing.

Sivakumar

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