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Account Determination-difference

Former Member
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Can any1 help me,

what is difference between account category reference & Account grouping code

i m getting confused with both of it...

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Answers (2)

Answers (2)

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Dear Gaurav,

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.

Account category reference: - It is a 4-digit code that establishes relationship between material types and valuation class. One account cat ref assigned to n number of material type and valuation class


Piyush Patel

Active Contributor
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The account category reference allows the flexibility for linking of material type with possible valuation class.For example:

Material type------- account category reference---- valuation class



The account grouping code or account modifier which breaks account determination down by movement type. For example account grouping code VBR is used for 201 movement type


Biju K