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FI MM Integration steps

Former Member
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Hi Gurus,

Can any one explain FI and MM integration in detail......


SAP Student

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Answers (4)

Answers (4)

Former Member
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This message was moderated.

Former Member
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SAP MM and FI Integration

FI-MM Integration

Process Flow in MM

Step 1 Generating purchase requisition( PP-MM involved)

Step 2 Making inquiries (MM)

Step 3 Raising purchase order (MM)

Step 4 Release of purchase order ( MM)

Step 5 Goods received from vendor ( MM and FI )

Entry will be

Raw Material Inventory a/c Dr.

GR/IR clearing a/c Cr.

Step 6 Invoice verification and quality assurance (FI and MM)

Entry will be

GR/IR clearing a/c Dr

Vendor a/c Cr

Step 7 Goods issued for consumption(MM, FI and PP)

Entry will be

Raw material consumption a/c Dr

Raw material inventory account Cr

Step 8 Production receipt( FI, MM & PP)

Entry will be

Finished goods inventory a/c Dr

Change in stock Cr

Step 9 Finished goods delivered to customer(MM, SD & FI)

Entry will be

Change in stock Dr

Finished goods inventory a/c Cr

Step 10 Raising invoice on customers( SD & FI)

Customers a/c Dr

Sales a/c Cr

Step 11 Receipt of payment from customers( Same as SD-FI integration)


Main screen of FI-MM integration is OBYC

Here we have to link the MM movement types to FI G/L accounts

Assign Following G/L accounts to movement type according to valuation class.

BSX- Raw material Inventory account

GBB- Raw material consumption account

WRX- GR/IR clearing account

Former Member
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Please follow the following steps for FI and MM integration:

Integration FI with MM

Integration of SAP FI with MM is done at OBYC.

Let me elaborate... In MM you purchase goods and to which you pay, the purchasing process has the following steps:

Step1: First you send a Purchase Order to the Vendor.

Here there won't be any accounting entry as this is simply like telling the Vendor what goods you want, its quantity and the date of delivery etc.,

Step 2: You will receive the Goods to the Purchase Order.

When you receive Goods you CAN NOT make the following entry

Inventory A/c Dr

To Vendor A/c

because, some of the goods you have received may be damaged or may not be upto the mark or for any other reason goods may reject, so before posting it to Vendor A/c we keep it in separate place till we verify the goods. And the actual entry will be:

Inventory A/c Dr (Transaction Key BSX @ OBYC)

To GR/IR A/c (Transaction Key WRX @ OBYC)

Here the goods received is Debited to inventory and Credited to a temporary A/c i.e., GR/IR a/c

Step 3: You will post an Invoice to the Goods received.

Here you will post the invoice after you are satisfied with the goods received, the entry will be

GR/IR A/c Dr

To Vendor A/c

Now the goods are moved from GR/IR A/c and Vendor is Credited. Now you got the final entry of Goods to Vendor Account i.e.

Inventory A/c Dr

To Vendor A/c

i.e., Inventory A/c was Debited and Vendor A/c was Credit and GR/IR A/c is Dr and also Credited hence its balance became 'Zero', and it has to be Zero always.

Step 4: And make Payment to Vendor.

Vendor A/c Dr

To Bank Clearing A/c

Step 5: At the time of Bank Statement upload:

Bank Clearing A/c Dr

To Bank Main A/c

Hope this helps you.


Kannusamy S

Active Contributor
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This has been addressed many times on this forum, just search by "FI MM Integration" date range all, you will find very use full and helping information.