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FI-MM and FI-SD integration

Former Member
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Could you please advice me what are organizational units to be created in MM and SD modules in order to have integration with FI and it will of immense help if you could send me step wise material on FI integration with SD and MM.

Thank you,


Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hello Asam Reddy,

Following organisatioonal units need to be created.

Plants:The central organizational object in Logistics is the plant. Multiple plants be contained in a company code. That is, they are assigned to the same company code. All company-code relevant transactions from these plants are posted in company code to which plants are assigned.

Purchasing organizations: Purchasing for the plants is completed by the purchasing organization. Each country, in which IDES plants operate, has one purchasing organization. They purchase for all plants in the country and post the purchases in the company code of that country.

MM view of the vendor master record: The purchasing organizations purchase goods and services from suppliers, who are paid by accounts payable. The various purchasing organizations of the group have to enter data specific to purchasing in the vendor master record before the supplier's master record can be used.

Purchase order, goods receipt, invoice verification in relation to business cycle: Step (i): Creating a purchase order: This transaction is completed in MM. No postings are made in FI.

Step (ii) Goods receipt:To update the inventory, a material document is created in MM. At the same time, a document is created in FI, with which the value of the goods is posted to the materials account (debit) and the goods receipt/invoice receipt account (credit) in the general ledger.

Step (iii) Invoice receipt: Invoice receipt: The vendor invoice is posted in MM, which automatically creates a document in FI. The FI document contains the invoice amount that is posted to the goods receipt/invoice receipt account (debit) and the vendor account (credit).The last two steps can be completed in reverse order, depending on the order the goods and the invoice are received.The goods receipt/invoice receipt account ensures that goods were received for each invoice and vice versa.

Configuration part:

Movement type : When you enter a goods movement in the system, you must enter a movement type to differentiate between the various goods movements. A movement type is a three-digit identification key for a goods movement.

The following table contains examples of movement types.

Goods Movements and Movement Types

Goods receipt for a purchase order 101

Goods issue for a cost center 201

Release from quality inspection stock 321 

Control Functions of the Movement Type:

The movement type has important control functions in Inventory Management.

For example, the movement type plays an important role in

updating of quantity fields

updating of stock and consumption accounts

determining which fields are displayed during entry of a document in the system

(ii) Material type: Materials with the same basic attributes are grouped together and assigned to a material type. This allows you to manage different materials in a uniform manner in accordance with your company's requirements. Examples of material types are given in the graphic below

Eg – Raw materials, Finished goods, semi finished products

(iii) Transaction key: The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system.

The transaction keys are defined in the system and cannot be changed by the user.

(iv) Account determination: When you post an invoice, the system updates various accounts in Financial Accounting. It determines automatically which amounts have to be posted to which accounts. Account assignment is based partly on your entries when you enter an invoice, partly on information stored in the system and partly on the system settings.

Your entries provide the following information:

Which vendor account must be posted to?

Which amounts must be posted?

The material master record provides the following information:

- Which valuation class does the material belong to?

- Which type of price control is required for the material?

- Which account must be posted to for the material?

- Is the stock available smaller than the quantity invoiced?

Posted documents provide the following information:

- What is the purchase order price?

- Has a goods receipt been posted for the purchase order?

The system settings provide the following information:

- Is the invoice posted as a net or a gross amount?

- Which G/L accounts must be posted to?

General Modifier Key: Determines the offsetting entries for stock postings

Used to differentiate account determination For example when offsetting entries for inventory postings the key is assigned to transaction key movement type.

Valuation Class: The valuation class is a group of materials with the same account determination. If a transaction is to be posted to different accounts depending on the valuation class, create an account determination for each valuation class in the step Create automatic postings. The valuation classes allowed depend on the material type. Several valuation classes are generally allowed for one material type. A valuation class can also be allowed for several material types.

Accoount category reference: The link between the valuation classes and the material types is set up via the account category reference.

The account category reference is a combination of valuation classes. Precisely one account category reference is assigned to a material type.

Please assign points and I will elt you know the SD-FI integration on similar lines.



Answers (5)

Answers (5)

Former Member
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Hai Asam,

Forgot to state about FI-MM integration in earlier response.

Having created the above SD organisation units, there are only a few more to create for FI-MM integration.

1. Purchasing organisation.

2. Valuation level ( generally plant)

3. Location (optional and need to be created only when required by client)

On creating the above,

1. Assign Purchasing org to co code.

2. Assign purchasing orgn to plant

3. Assign business area to plant / valuation area ( in this state the business area against your plant).

Hope this solves your query.

Assign points if useful.

Former Member
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Hai Asam,

the following organisation units are to be set up to integrate SD with FI.

1. Sales organisation

2. Plant

3. Storage location (under material management)

4. Shipping point

5. Distribution Channel

6. Division.

In addition u can also create sales office, sales group but it is optional.

In order to integrate, follow the following steps:

1. Assign sales organisation to co code.

2. Assign plant to company code.

3. Assign distribution channel, division to sales organisation

4. Determine sales area (it is a combination of sales organisation, distribution channel and division)

5. Assign SO - Distribution channel - Plant

6. Assign sales area to credit control area.

7. Assign shipping point to plant (under logistics execution).

After defining and assigning the organisation units, u can view the properly integrated structure under Tcode EC01.

Assign points if useful.

Former Member
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the below link may user ful for FI-MM and FI-SD integration.

*assign points if it userful

Active Contributor
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Check FICO - General Ledger Documents

U have good documents.



<i>Assign points, if useful</i>

Former Member
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Hi Ramesh,

Your question is very broad one,but let me try to give you a fair overview.

FI-MM: The integration between FI-MM happens in T-code OBYC.

1. When PO is created:


No Entry -

2. When GR is posted

Inventory Account dr (Transaction Key BSX in OBYC)

To GRIR account (T.Key WRX in T-code OBYC)

3. When Invoice is posted

GRIR account Dr.

Vendor account Cr.

4. Payment made to Vendor

Vendor A/c Dr

To Bank Clearing A/c Cr.

Points to know : Movement Types, Assignment of Movement types to T-keys (T-code OMJJ), Value string (I also need some information on this) , OMWN and OMWB transactions.

FI-SD Integration: The integration is done in T-code VKOA .

1. Sales Order Created

-No Entry-

2. PGI done (Goods issue)

Cost of Goods Sold Dr (Configured in OBYC GBB T-Key)

To Inventory Account

3. Billing document released to Accounting

Customer Account Dr.

To Sales Revenue Account (ERL T-key in Pricing procedure)

Note : The GL account is assigned to this ERL in VKOA

4. Payment Received

Bank Clearing A/c Dr

Customer A/c Cr.

Points to Know : Good to understand the pricing procedure and how the different transaction keys are used like ERL, ERS etc.

Hope it will give you a fair idea.If you have any queries,do revert.