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mickaelquesnot
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FI-SD integration is very important topic for FICO consultants. This is the one of most asked interview question and lack of knowledge/concept could result in rejection.  This concept could be understood in totality to avoid any confusion. FI-SD integration knowledge for FICO consultant is must in Implementation/Support/Roll Out projects.

  • This is a simple document for FI SD integration.

  • This document is for Finance consultants to understand the FI-SD concept at Macro Level.

  • This document will help you to understand basics of FI SD integration and not the complete process.

  • This document is created with the purpose to share the knowledge and help the sap community.


 

Purpose

Purpose of this document is mentioned below:

  • Not to understand SD concept, but to understand what is exactly required to understand by Finance team from SD Module.

  • This will help to understand the SD concepts as well.

  • I have adopted reverse engineering process rather than understanding through SD.

  • We will proceed through VKOA to SD to understand this concept, instead of directly understanding the SD concept.


 

Assign G/L Accounts


In this menu option, you allocate G/L accounts for revenue account determination. You have to make the allocation for every access sequence you have defined beforehand.

A variety of criteria is valid for a G/L account, depending on the key combination. For the key combination "Customer account determination group/Account key" a G/L account depending upon the following criteria, for example, is given:

  • Application (key for SD application)



  • Account determination type



  • Chart of accounts (from the module FI)



  • Sales organization



  • Customer account determination group



  • Account key


Requirements

For the condition technique, access sequences, account determination types, account determination procedures and condition tables must be defined in Sales and Distribution. Chart of accounts and G/L accounts must be defined in the module FI.

Actions

  1. Check to what extent you can use the allocations contained in the system.

  2. Allocate the G/L accounts for each access sequence. The second G/L account is used for accrual posting, for example, in rebate processing.


 

VKOA – Assign GL Accounts.

VKOA is the transaction code for FI-SD integration. If you access this TRANSACTION CODE, below screen will appear. This is FI-SD integration point. There are 8 table for this integration.

001        Cust.Grp/MaterialGrp/AcctKey

002        Cust.Grp/Account Key

003        Material Grp/Acct Key

004        General

005        Acct Key

015        Company Code / Condition Contract Type

016        Company Code / Contract Process Variant / Account Key

017        Sales Org./Item Cat./Acct Key

At first look, finance consultant will be nervous and lost. If you understand first table, rest are repetitive. Double click on Table 001.

 

 

 

 

Below screen will appear. In total there are 9 columns out of which first 4 are simple to understand.

 

  1. Application – Its should be V. V is sales and distribution. Very straight forward. For more option, press F4 and check.


 

Application


Subdivides the usage of a condition (for example, pricing) for use in different application areas (for example, sales & distribution or purchasing).

 

M           Purchasing

RW        DI - Warranty

V            Sales/Distribution

VA          CO-PA

VB          Reconciliation Acct

VC          Cash Settlement

VD          Payment cards

 

 

  1. Condition Type – This isn’t an SD condition type. This is condition type for Usage and Application. Don’t get confused this with SD condition type. Only 2 options will come as below. There might be more and I am not aware.


 

 

Condition type for account determination


The key that uniquely identifies an account determination type.

Use


When you post an invoice, for example, the system uses account determination types to locate the G/L accounts to which amounts should be posted. You can define G/L accounts in account determination tables in SD Customizing through Acct determination -> Environment -> Maintain acct determ. The system checks these tables according to the specified access sequence until it finds a valid account.

 

KOFI       Acct determination

KOFK     Acct Determ.with CO

KORC     Commission Settlemnt

KORP     Purchasing Rebate

KORR     Royalties Settlement

KORS     Sales Rebate

 

 

  1. Chart of Account – This is Chart of account. Very simple to understand.


 

Chart of Accounts


Key that uniquely identifies a chart of accounts.

 

 

  1. Sales Organization – This is nothing but our company code.


 

Sales Organization


An organizational unit responsible for the sale of certain products or services. The responsibility of a sales organization may include legal liability for products and customer claims.

Use


You can assign any number of distribution channels and divisions to a sales organization. A particular combination of sales organization, distribution channel, and division is known as a sales area.

 

 

 

 

So, first 4 items are clear and simple.

Next 3 columns are important. 5th 6th and 7th. This are SD values. Let’s see where its coming from Billing document. If you relate this with Billing document, it will be easy to understand the concept.

 

Cust Account Assignment Group (AAGC – Column 5).

Column AAGC. Cust Account assignment group. Where does it comes from billing document? See below screenshot.

Account Assignment Group for this Customer


The account assignment group to which the system automatically posts the sales document.

Use


The system uses the account assignment group as one of the criteria during the automatic determination of revenue accounts.

Procedure


The system automatically proposes the account assignment group from the customer master record of the payer. You can change the default value in the sales document or the billing document.

 

 

Go to Manage Billing Documents.



App ID: F0797

With this app, you can manage invoices, invoice cancellations, credit memos, and other billing documents. This includes displaying, editing, posting, and canceling billing documents. You can also review why a billing document split has occurred and generate PDF-based print previews of billing documents.

Key Features

  • Display, sort, and filter a list of all billing documents in the system

  • Post billing documents to financial accounting

  • Display billing documents in detail, including a PDF preview and split analysis

  • Cancel billing documents

  • Adjust view settings as well as save and load custom views

  • Navigate to related apps

  • Export data to spreadsheets


Read more in

App Documentation

App demo:

Manage_Billing_Documents_1809OP

Further assets:

EKT_ManageBillingDocuments_OP1809

Learn more about solution capability:

Sales Billing (S/4)


Give the billing document and press enter. Click on header data. If you see there are 5 tabs. It means its header.  Entry is highlighted. This goes to column 5. Here Text is given and in VKOA numbers are given









 

AcctAssmtGrpmat (AAGM – Column 6).

Account Assignment Group for Material


Group of materials with the same accounting requirements.

Use


Used by the system when creating an accounting document from a billing document to determine the revenue or sales deduction account.

 

 

Column 6 AcctAssmtGrpmat comes from below highlighted field. This comes from Line item. Here Text is given and in VKOA numbers are given.

 

 

 

Account Key (Actky Column 7)

Account key is the 7th column. Where is it coming from? In Condition tab below, Click on analysis button.

Account Key


Key that identifies different types of G/L account.

Use


The account key enables the system to post amounts to certain types of revenue account. For example, the system can post freight charges (generated by the freight pricing condition) to the relevant freight revenue account.

 

 

 

 





















 

 

 

 

 

Below screen will appear. Condition type is highlighted.

Go to V/08. Select above pricing procedure and click on control.

 

 

Define And Assign Pricing Procedures


Use

In this activity, you define pricing procedures. In addition, you assign the pricing procedures to transactions by defining the following dependencies:

  • Customer




  • Sales area


In the pricing procedure, you define which condition types are to be taken into account and in which sequence. During pricing, the system automatically determines which pricing procedure is valid for a business transaction. The system then takes the condition types contained in the pricing procedure into account, one after the other.

The determination of the procedure depends on how you configure the following:

  • Set Pricing Procedures


You create new pricing procedures, for example, by copying a similar pricing procedure. In addition, you can change or delete your own pricing procedure.

  • Set Customer Pricing Procedures


You specify the customer pricing procedure in the customer master record for each sales area.

Note: You can delete your own customer pricing procedure only, if it is not allocated in the Set Pricing Procedure Determination step.

  • Set Document Pricing Procedure
    You specify the document pricing procedure for each sales document type and billing type.



  • Assign Document Pricing Procedure to Order Types



  • Assign Document Pricing Procedure to Billing Types



  • Set Pricing Procedure Determination
    You specify how the system determines pricing procedures for sales documents every time you create a new pricing procedure.


To determine the procedure, you allocate the customer pricing procedure and the document pricing procedure to a pricing procedure within a sales area.

SAP Recommendation

  • Define your own pricing procedures that contain only those condition types that you actually use. Otherwise, the system makes unnecessary accesses to conditions.



  • Do not change the pricing procedures contained in the standard system.



  • If you want to determine condition types for a sales rebate or a sales commission in the order-to-cash process, you must add the condition types for rebate accruals and commission accruals (for example, REA1, RCA1) to your pricing procedure used in sales documents. To ensure the posting of the accrual amounts to accounting, you must also maintain the corresponding accounting key for that condition type as well.


Warning: Do not add the condition types for rebates and commissions (for example, RES1, RCS1) to your pricing procedure used in sales documents. This can influence the pricing results and can lead to incorrect accounting data.

 

 

 

 

 

Below entries will be displayed. If you see column Acc., there are entries for ERL. This will come in column 7.

In column 8 and 9 there are gl accounts. This gl accounts are provided by Finance team.

For column 8, gl is picked up and documents are posted. But for 9 its accrual and I am not aware of that.

G/L Account Number


The G/L account number identifies the G/L account in a chart of accounts.

 

Number of Accruals Account


The provision account is only required if there are conditions that are relevant for accrual, for example, rebate conditions. If this is the case, account determination takes place in the billing document with the field

Account key - Accrual (KVSL2). This field is assigned to the condition type in the pricing procedure. Normally account determination for G/L accounts takes place in the billing document with the field account key (KVSL1). The account key field is assigned to the condition type in the pricing procedure.

Pointers

 

 

 

 

Journal Entries

How Journal entries are posted for SD flow? There are 2 types of Journal entries in SD flow.

  • Cost of good sold Entries

  • Sales order flow entry (This is already explained in above section).


Cost of good sold entries GL Determination.

Cost of good sold entries is as below :

– Cost of good sold account debit

-Inventory/Finished goods account Credit.

Now the question is from where does this GL and Its amount is picked from? It is very important to understand this flow.

 

 

 

 

 

 

 

 

Configure Automatic Postings


In this step, you enter the system settings for Inventory Management and Invoice Verification transactions for automatic postings to G/L accounts.

You can then check your settings using a simulation function.

Under Further information there is a list of transactions in Materials Management and their definitions.

What are automatic postings?

Postings are made to G/L accounts automatically in the case of Invoice Verification and Inventory Management transactions relevant to Financial and Cost Accounting.

Example:
Posting lines are created in the following accounts in the case of a goods issue for a cost center:

  • Stock account



  • Consumption account


How does the system find the relevant accounts?

When entering the goods movement, the user does not have to enter a G/L account, since the system automatically finds the accounts to which postings are to be made using the following data:

  • Chart of accounts of the company code


If the user enters a company code or a plant when entering a transaction, the system determines the chart of accounts which is valid for the company code.

You must define the automatic account determination individually for each chart of accounts.

  • Valuation grouping code of the valuation area


If the automatic account determination within a chart of accounts is to run differently for certain company codes or plants (valuation areas), assign different valuation grouping codes to these valuation areas.

You must define the automatic account determination individually for every valuation grouping code within a chart of accounts. It applies to all valuation areas which are assigned to this valuation grouping code.

If the user enters a company code or a plant when entering a transaction, the system determines the valuation area and the valuation grouping code.

  • Transaction/event key (internal processing key)


Posting transactions are predefined for those inventory management and invoice verification transactions relevant to accounting. Posting records, which are generalized in the value string, are assigned to each relevant movement type in inventory management and each transaction in invoice verification. These contain keys for the relevant posting transaction (for example, inventory posting and consumption posting) instead of actual G/L account numbers.

You do not have to define these transaction keys, they are determined automatically from the transaction (invoice verification) or the movement type (inventory management). All you have to do is assign the relevant G/L account to each posting transaction.

  • Account grouping (only for offsetting entries, consignment liabilities, and price differences)


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", you must assign G/L accounts for every account grouping, that is, assign G/L accounts.

If you 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, you can define different account grouping codes for the transaction key.

Using the account grouping, you can also have different accounts for consignment liabilities and pipeline liabilities.

  • Valuation class of material or (in case of split valuation) the valuation type


The valuation class allows you to define automatic account determination that is dependent on the material. for example: you post a goods receipt of a raw material to a different stock account than if the goods receipt were for trading goods, even though the user enters the same transaction for both materials.

You can achieve this by assigning different valuation classes to the materials and by assigning different G/L accounts to the posting transaction for every valuation class.

If you do not want to differentiate according to valuation classes you do not have to maintain a valuation class for a transaction.

Requirements

Before you maintain automatic postings, you must obtain the following information:

  1. Valuation level ( plantor company code)


Establish whether the materials are valuated at plant or at company code level

When valuation is at plant level, the valuation area corresponds to a plant.

When valuation is at company code level, the valuation area corresponds to a company code.

Define valuation level

  1. Chart of accounts and valuation grouping code per valuation area


Find out whether the valuation grouping code is active.

Activate split valuation

If it is not active, determine the chart of accounts assigned to each valuation area (via the company code).

If it is active, determine the chart of accounts and the valuation grouping code assigned to each valuation area.

Group valuation areas

You must define a separate account determination process for chart of accounts and each valuation grouping code.

  1. Valuation class per material type


If you wish to differentiate the account determination process for specific transactions according to valuation classes, find out which valuation classes are possible for each material type.

Define valuation classes

  1. Account grouping for offsetting entries to stock accounts


Under Define account grouping for movement types, determine for which movement types an account grouping is defined for the transaction/event keys GGB (offsetting entry to stock posting), KON (consignment liabilities) and PRD (price differences).

Default settings

G/L account assignments for the charts of accounts INT and the valuation grouping code 0001 are SAP standard.

Activities

  1. Create account keys for each chart of accounts and each valuation grouping code for the individual posting transactions. To do so, proceed as follows:

  2. a) Call up the activity Configure Automatic Postings.


The system first checks whether the valuation areas are correctly maintained. If, for example, a plant is not assigned to a company code, a dialog box and an error message appear.

From this box, choose Continue (next entry) to continue the check.

Choose Cancel to end the check.

The configuration menu Automatic postings appears.

  1. b) Choose Goto -> Account assignment.


A list of posting transactions in Materials Management appears. For further details of the individual transactions, see Further information.

The Account determination indicator shows whether automatic account determination is defined for a transaction.

  1. c) Choose a posting transaction.
    A box appears for the first posting transaction. Here you can enter a chart of accounts.


You can enter the following data for each transaction:



    • Rules for account number assignments




With Goto -> Rules you can enter the factors on which the account number assignments depend:

- debit/credit indicator

- general grouping (= account grouping)

- valuation grouping

- valuation class



    • Posting keys for the posting lines




Normally you do not have to change the posting keys.  If you wish to use new posting keys, you have to define them in the Customizing system of Financial Accounting.



    • Account number assignments




You must assign G/L accounts for each transaction/event key (except KBS). You can assign these accounts manually or copy them from another chart of accounts via Edit -> Copy.

If you want to differentiate posting transactions (e.g. inventory postings) according to valuation classes, you must make an account assignment for each valuation class.

Using the posting transaction "Offsetting entry for inventory posting", you have to make an account assignment for each account grouping

If the transaction PRD (price differences) is also dependent on the account grouping, you must create three account assignments:

- an account assignment without account grouping

- an account assignment with account grouping PRF

- an account assignment with account grouping PRA

If the transaction KON (consignment and pipeline liabilities) is also dependent on the account grouping, you must create two account assignments:

- an account assignment without account grouping (consignment)

- an account assignment with account grouping (pipeline)

  1. d) Save your settings.

  2. Then check your settings with the simulation function.


With the simulation function, you can simulate the following:



    • Inventory Management transactions







    • Invoice Verification transactions




When you enter a material or valuation class, the system determines the G/L accounts which are assigned to the corresponding posting transactions. Depending on the configuration, the SAP system checks whether the G/L account exists

In the simulation you can compare the field selection of the movement type with that of the individual accounts and make any corrections.

If you want to print the simulation, choose Simulation -> Report.

To carry out the simulation, proceed as follows:

  1. a) Choose Settingsto check the simulation defaults for
    - the application area (Invoice Verification or Inventory Management)
    - the input mode (material or valuation class)
    - account assignment


Instructions

  1. b) Choose Goto -> Simulation.


The screen for entering simulation data appears.

  1. c) Depending on the valuation level, enter a plant or a company code on the screen.

  2. d) When you simulate Inventory Management transactions, goods movements are simulated. The system suggests the first movement type for simulation. If several movements are possible with this movement type, you can select a line.


When you simulate Invoice Verification transactions, a list appears on the screen of the possible transaction types. Select a line.

  1. e) Then choose Goto -> Account assignments.


A list appears of the posting lines which can be created by the selected transaction. For each posting line, the G/L account for the debit posting as well as the G/L account for the credit posting are displayed.

  1. f) From this screen, choose Goto -> Movement+to get a list of the posting lines for the next movement type or transaction type.


If you work with valuation classes, choose Goto -> Valuation class+ to receive the simulation for the next valuation class. This function is not possible when simulating with material numbers.

Choose Goto -> Check screen layout to compare the movement type with the G/L accounts determined by the system and make any necessary corrections.

Note

The simulation function does NOT obviate the need for a trial posting!

Further notes

The following list shows the individual transactions with examples of how they are used. The transaction/event key is specified in brackets.

  • Agency business: income (AG1)


This transaction can be used in agency business for income deriving from commission (e.g. del credere commission). The account key is used in the calculation schemas for agency business to determine the associated revenue accounts.

  • Agency business: turnover (AG2)


This transaction can be used in agency business if turnover (business volume) postings are activated in Customizing for the payment types. The account key is specified in Customizing for the billing type.

  • Agency business: expense (AG3)


This transaction can be used in agency business for commission expenses. The account key is used in the calculation schemas for agency business to determine the associated expense accounts.

  • Expense/revenue from consumption of consignment material (AKO)


This transaction is used in Inventory Management in the case of withdrawals from consignment stock or when consignment stock is transferred to own stock if the material is subject to standard price control and the consignment price differs from the standard price.

  • Expenditure/income from transfer posting (AUM)


This transaction is used for transfer postings from one material to another if the complete value of the issuing material cannot be posted to the value of the receiving material. This applies both to materials with standard price control and to materials with moving average price control. Price differences can arise for materials with moving average price if stock levels are negative and the stock value becomes unrealistic as a result of the posting. Transaction AUM can be used irrespective of whether the transfer posting involves a transfer between plants. The expenditure/income is added to the receiving material.

  • Provisions for subsequent (end-of-period rebate) settlement (BO1)


If you use the "subsequent settlement" function with regard to conditions (e.g. for period-end volume-based rebates), provisions for accrued income are set up when goods receipts are recorded against purchase orders if this is defined for the condition type.

  • Income from subsequent settlement (BO2)


The rebate income generated in the course of "subsequent settlement" (end-of-period rebate settlement) is posted via this transaction.

  • Income from subsequent settlement after actual settlement (BO3)


If a goods receipt occurs after settlement accounting has been effected for a rebate arrangement, no further provisions for accrued rebate income can be managed by the "subsequent settlement" facility. No postings should be made to the account normally used for such provisions. As an alternative, you can use this transaction to post provisions for accrued rebate income to a separate account in cases such as the one described.

  • Supplementary entry for stock (BSD)


This account is posted when closing entries are made for a cumulation run. This account is a supplementary account to the stock account; that is, the stock account is added to it to determine the stock value that was calculated via the cumulation. In the process, the various valuation areas (for example, commercial, tax), that are used in the balance sheet are taxed separately.

  • Change in stock (BSV)


Changes in stocks are posted in Inventory Management at the time goods receipts are recorded or subsequent adjustments made with regard to subcontract orders.

If the account assigned here is defined as a cost element, you must specify a preliminary account assignment for the account in the table of automatic account assignment specification (Customizing for Controlling) in order to be able to post goods receipts against subcontract orders. In the standard system, cost center SC-1 is defined for this purpose.

  • Stock posting (BSX)


This transaction is used for all postings to stock accounts. Such postings are effected, for example:



    • In inventory management in the case of goods receipts to own stock and goods issues from own stock







    • In invoice verification, if price differences occur in connection with incoming invoices for materials valuated at moving average price and there is adequate stock coverage







    • In order settlement, if the order is assigned to a material with moving average price and the actual costs at the time of settlement vary from the actual costs at the time of goods receipt




Because this transaction is dependent on the valuation class, it is possible to manage materials with different valuation classes in separate stock accounts.

Caution

Take care to ensure that:



    • A stock account is not used for any transaction other than BSX







    • Postings are not made to the account manually







    • The account is not changed in the productive system before all stock has been booked out of it




Otherwise differences would arise between the total stock value of the material master records and the balance on the stock account.

Account determination of valuated sales order stock and project stock

Note that for valuated sales order stock and project stock (special stock E and Q) and for the transaction/event keys BSX and GBB, you must maintain an account determination to avoid receiving warning messages when entering data (purchase order or transfer posting) for valuated stock.
During data entry, the system attempts to execute a provisional account determination for GBB for valuated stock. The system will only replace the provisional account determination for GBB with the correct account determination for the stock account (BSX), in the background, if you enter the data for valuated stock at a later point in time.

  • Revaluation of other consumption (COC)


This transaction/event key is required for the revaluation of consumption in Actual Costing/Material Ledger.

Revaluation of consumption valuates single-level consumption using the actual prices determined in the Actual Costing/Material Ledger application. This revaluation can either take place in the account where the original postings were made, or in a header account.

The header account is determined using the transaction/event key COC.

  • Del credere (DEL)


Transaction/event key for the payment/invoice list documents in Purchasing. The account key is needed in the calculation schema for payment/settlement processing to determine the associated revenue accounts.

  • Small differences, Materials Management (DIF)


This transaction is used in Invoice Verification if you define a tolerance for minor differences and the balance of an invoice does not exceed the tolerance.

  • Purchase account(EIN), purchase offsetting account (EKG), freight purchase account (FRE)


These transactions are used only if Purchase Account Management is active in the company code.

Note

Due to special legal requirements, this function was developed specially for certain countries (Belgium, Spain, Portugal, France, Italy, and Finland).

Before you use this function, check whether you need to use it in your country.

  • Freight clearing (FR1), provision for freight charges (FR2), customs duty clearing (FR3), provision for customs duty (FR4)


These transactions are used to post delivery costs (incidental procurement costs) in the case of goods receipts against purchase orders and incoming invoices. Which transaction is used for which delivery costs depends on the condition types defined in the purchase order.

You can also enter your own transactions for delivery costs in condition types.

  • External service (FRL)


The transaction is used for goods and invoice receipts in connection with subcontract orders.

If the account assigned here is defined as a cost element, you must specify a preliminary account assignment for the account in the table of automatic account assignment specification (Customizing for Controlling) in order to be able to post goods receipts against subcontract orders. In the standard system, cost center SC-1 is defined for this purpose.

  • External service, delivery costs (FRN)


This transaction is used for delivery costs (incidental costs of procurement) in connection with subcontract orders.

If the account assigned here is defined as a cost element, you must specify a preliminary account assignment for the account in the table of automatic account assignment specification (Customizing for Controlling) in order to be able to post goods receipts against subcontract orders. In the standard system, cost center SC-1 is defined for this purpose.

  • Offsetting entry for stock posting (GBB)


Offsetting entries for stock postings are used in Inventory Management. They are dependent on the account grouping to which each movement type is assigned. The following account groupings are defined in the standard system:



    • AUA: for order settlement







    • AUF: for goods receipts for orders (without account assignment)
      and for order settlement if AUA is not maintained







    • AUI: Subsequent adjustment of actual price from cost center directly
      to material (with account assignment)







    • BSA: for initial entry of stock balances







    • INV: for expenditure/income from inventory differences







    • VAX: for goods issues for sales orders without
      account assignment object (the account is not a cost element)







    • VAY: for goods issues for sales orders with
      account assignment object (account is a cost element)







    • VBO: for consumption from stock of material provided to vendor







    • VBR: for internal goods issues (for example, for cost center)







    • VKA: for sales order account assignment
      (for example, for individual purchase order)







    • VKP: for project account assignment (for example, for individual PO)







    • VNG: for scrapping/destruction







    • VQP: for sample withdrawals without account assignment







    • VQY: for sample withdrawals with account assignment







    • ZOB: for goods receipts without purchase orders (mvt type 501)







    • ZOF: for goods receipts without production orders
      (mvt types 521 and 531)




You can also define your own account groupings. If you intend to post goods issues for cost centers (mvt type 201) and goods issues for orders (mvt type 261) to separate consumption accounts, you can assign the account grouping ZZZ to movement type 201 and account grouping YYY to movement type 261.

Caution

If you use goods receipts without a purchase order in your system (movement type 501), you have to check to which accounts the account groupings are assigned ZOB

If you expect invoices for the goods receipts, and these invoices can only be posted in Accounting, you can enter a clearing account (similar to a GR/IR clearing account though without open item management), which is cleared in Accounting when you post the vendor invoice.

Note that the goods movement is valuated with the valuation price of the material if no external amount has been entered.

As no account assignment has been entered in the standard system, the assigned account is not defined as a cost element. If you assign a cost element, you have to enter an account assignment via the field selection or maintain an automatic account assignment for the cost element.

Account determination of valuated sales order stock and project stock

Note that for valuated sales order stock and project stock (special stock E and Q) and for the transaction/event keys BSX and GBB, you must maintain an account determination to avoid receiving warning messages when entering data (purchase order or transfer posting) for valuated stock.
During data entry, the system attempts to execute a provisional account determination for GBB for valuated stock. The system will only replace the provisional account determination for GBB with the correct account determination for the stock account (BSX), in the background, if you enter the data for valuated stock at a later point in time.

  • Purchase order with account assignment (KBS)


You cannot assign this transaction/event key to an account. It means that the account assignment is adopted from the purchase order and is used for the purpose of determining the posting keys for the goods receipt.

  • Exchange Rate Differences Materials Management(AVR) (KDG)


When you carry out a revaluation of single-level consumption in the material ledger for an alternative valuation run, the exchange rate difference accounts of the materials are credited with the exchange rate differences that are to be assigned to the consumption.

  • Exchange rate differences in the case of open items (KDM)


Exchange rate differences in the case of open items arise when an invoice relating to a purchase order is posted with a different exchange rate to that of the goods receipt and the material cannot be debited or credited due to standard price control or stock undercoverage/shortage.

  • Differences due to exchange rate rounding, Materials Management (KDR)


An exchange rate rounding difference can arise in the case of an invoice made out in a foreign currency. If a difference arises when the posting lines are translated into local currency (as a result of rounding), the system automatically generates a posting line for this rounding difference.

  • Exchange Rate Differences from Lower Levels (KDV)


This transaction/event key is no longer used.

In multi-level periodic settlement in the material ledger, some of the exchange rate differences that have been posted during the period in respect of the raw materials, semifinished products and cost centers performing the activity used in the manufacture of a semifinished or finished product are debited or credited to that semifinished or finished product.

  • Consignment liabilities (KON)


Consignment liabilities arise in the case of withdrawals from consignment stock or from a pipeline or when consignment stock is transferred to own stock.

Depending on the settings for the posting rules for the transaction/event key KON, it is possible to work with or without account modification. If you work with account modification, the following modifications are available in the standard system:



    • None for consignment liabilities







    • PIP for pipeline liabilities





  • Offsetting entry for price differences in cost object hierarchies (KTR)


The contra entry for price difference postings (transaction PRK) arising through settlement via material account determination is carried out with transaction KTR.

  • Accruals and deferrals account (material ledger) (LKW)


If the process of material price determination in the material ledger is not accompanied by revaluation of closing stock, the price and exchange rate differences that should actually be applied to the stock value are contra-posted to accounts with the transaction/event key LKW.

If, on the other hand, price determination in the material ledger is accompanied by revaluation of the closing stock, the price and exchange rate differences are posted to the stock account (i.e. the stock is revalued).

  • Price Difference from Exploded WIP (Lar.) (PRA)


If you use the WIP revaluation of the material ledger, the price variances of the exploded WIP stock of an activity type or a business process are posted to the price differences account with transaction/event key PRA.

  • Differences (AVR Price) (PRC)


In the alternative valuation run in the material ledger, some of the variances that accrue interest in the cost centers, are transfer posted to the semifinished or finished product.

  • Price differences (PRD)


Price differences arise for materials valuated at standard price in the case of all movements and invoices with a value that differs from the standard price. Examples: goods receipts against purchase orders (if the PO price differs from the standard pricedardpreis), goods issues in respect of which an external amount is entered, invoices (if the invoice price differs from the PO price and the standard price).

Price differences can also arise in the case of materials with moving average price if there is not enough stock to cover the invoiced quantity. In the case of goods movements in the negative range, the moving average price is not changed. Instead, any price differences arising are posted to a price difference account.

Depending on the settings for the posting rules for transaction/event key PRD, it is possible to work with or without account modification. If you use account modification, the following modifications are available in the standard system:



    • None for goods and invoice receipts against purchase orders







    • PRF for goods receipts against production orders and
      order settlement







    • PRA for goods issues and other movements







    • PRU for transfer postings (price differences in the case
      of external amounts)





  • Price Differences (Material Ledger, AVR) (PRG)


When you carry out a revaluation of single-level consumption in the material ledger during the alternative valuation run, the price difference accounts of the materials are credited with the price differences that are to be assigned to the consumption.

  • Price differences in cost object hierarchies (PRK)


In cost object hierarchies, price differences occur both for the assigned materials with standard price and for the accounts of the cost object hierarchy. In the course of settlement for cost object hierarchies after settlement via material account determination, the price differences are posted via the transaction PRK.

  • Price Difference from Exploded WIP (Mat.) (PRM)


If you use the WIP revaluation of the material ledger, the price and exchange rate differences of the exploded WIP stock of a material are posted to the price difference account with transaction/event key PRM.

  • Price differences, product cost collector (PRP)


During settlement accounting with regard to a product cost collector in repetitive manufacturing, price differences are posted with the transaction PRP in the case of the valuated sales order stock.

This transaction is currently used in the following instances only:

- Production cost collector in Release 4.0

- Product cost collector in IS Automotive Release 2.0 (product cost collector in connection with APO)

  • Offsetting entry: price differences, product cost collector (PRQ)


The offsetting (contra) entry to price difference postings (transaction PRP) in the course of settlement accounting with respect to a product cost collector in repetitive manufacturing in the case of the valuated sales order stock is carried out via transaction PRQ.

This transaction is currently used in the following instances only:

- Production cost collector in Release 4.0

- Product cost collector in IS Automotive Release 2.0 (product cost collector in connection with APO)

  • Price Differences from Lower Levels (PRV)


This transaction/event key is no longer used.

In multi-level periodic settlement in the material ledger, some of the price differences posted during the period in respect of the raw materials, semifinished products, and cost centers performing the activity used in a semifinished or finished product, are transfer posted to that semifinished or finished product.

  • Price differences for material ledger (PRY)


In the course of settlement in the material ledger, price differences from the material ledger are posted with the transaction PRY.

  • Expense and revenue from revaluation (retroactive pricing, RAP)


This transaction/event key is used in Invoice Verification within the framework of the revaluation of goods and services supplied for which settlement has already taken place. Any difference amounts determined are posted to the accounts assigned to the transaction/event key RAP (retroactive pricing) as expense or revenue.

At the time of the revaluation, the amounts determined or portions thereof) are posted neither to material stock accounts nor to price difference accounts. The full amount is always posted to the "Expense from Revaluation" or "Revenue from Revaluation" account. The offsetting (contra) entry is made to the relevant vendor account.

  • Invoice reductions in Logistics Invoice Verification (RKA)


This transaction/event key is used in Logistics Invoice Verification for the interim posting of price differences in the case of invoice reductions.

If a vendor invoice is reduced, two accounting documents are automatically created for the invoice document. With the first accounting document, the amount invoiced is posted in the vendor line. An additional line is generated on the invoice reduction account to partially offset this amount. With the second accounting document, the invoice reduction is posted in the form of a credit memo from the vendor. The offsetting entry to the vendor line is the invoice reduction account. Hence the invoice reduction account is always balanced off by two accounting documents within one transaction.

  • Provision for delivery costs (RUE)


Provisions are created for accrued delivery costs if a condition type for provisions is entered in the purchase order. They must be cleared manually at the time of invoice verification.

  • Taxes in case of transfer posting GI/GR (TXO)


This transaction/event key is only relevant to Brazil (nota fiscal).

  • Revenue/expense from revaluation (UMB)


This transaction/event key is used both in Inventory Management and in Invoice Verification if the standard price of a material has been changed and a movement or an invoice is posted to the previous period (at the previous price).

  • Expenditure/income from revaluation (UMD)


This account is the offsetting account for the BSD account. It is posted during the closing entries for the cumulation run of the material ledger and has to be defined for the same valuation areas.

  • Unplanned delivery costs (UPF)


Unplanned delivery costs are delivery costs (incidental procurement costs) that were not planned in a purchase order (e.g. freight, customs duty). In the SAP posting transaction in Logistics Invoice Verification, instead of distributing these unplanned delivery costs among all invoice items as hitherto, you have the option of posting them to a special account. A separate tax code can be used for this account.

  • Input tax, Purchasing (VST)


Transaction/event key for tax account determination within the "subsequent settlement" facility for debit-side settlement types. The key is needed in the settlement schema for tax conditions.

  • Inflation posting (WGB)


Transaction/event key that posts inflation postings to a different account, within the handling of inflation process for the period-end closing.

  • Goods issue, revaluation (inflation) (WGI)


This transaction/event key is used if already-posted goods issues have to be revaluated following the determination of a new market price within the framework of inflation handling.

  • Goods receipt, revaluation (inflation) (WGR)


This transaction/event key is used if already-effected transfer postings have to be revaluated following the determination of a new market price within the framework of inflation handling. This transaction is used for the receiving plant, whereas transaction WGI (goods receipt, revaluation (inflation)) is used for the plant at which the goods are issued.

  • WIP from Price Differences (Internal Activity) (WPA)


When you use the WIP revaluation of the material ledger, the price variances from the actual price calculation that are to be assigned to the WIP stock, an activity type or a business process are posted to the WIP account for activities.

  • WIP from Price Differences (Material) (WPM)


When you use the WIP revaluation of the material ledger, the price and exchange rate differences that are to be assigned to the WIP stock of a material are posted to the WIP account for material.

  • GR/IR clearing (WRX)


Postings to the GR/IR clearing account occur in the case of goods and invoice receipts against purchase orders.

Caution

You must set the Balances in local currency only indicator for the GR/IR clearing account  to enable the open items to be cleared. For more on this topic, see the field documentation.

  • GR/IR clearing for material ledger (WRY)


This transaction/event key is not used from Release 4.0 onwards.

Prior to 4.0, it was used for postings to the GR/IR clearing account if the material ledger was active. As of Release 4.0, the transaction is no longer necessary, since postings to the GR/IR account in parallel currencies are possible.

Customers who used the transaction WRY prior to Release 4.0 must make a transfer posting from the WRY account to the WRX account in order to ensure that the final balance on the WRY account is zero.

  • Activity Price Differences (PRL)


Price differences for activity types or business processes. During settlement in the material ledger, these price differences are posted from cost centers (Transaction/Account Modification GBB/AUI) to the material ledger (transaction PRL) and then further allocated to the receivers (finished products/WIP).

 

GL for Cost of good sold is picked up from OBYC. This is from FI-MM integration. Key is BSX. From here inventory GL account is picked up.

 

 

 

 

 

 

Inventory posting             BSX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0001      3000      13100000

 

 

Definition


Default value for the valuation class for valuated stocks of this material.

Use


The valuation class has the following functions:


  • Allows the stock values of materials of different material types to be posted to the same G/L account.



  • Determines together with other factors the G/L accounts updated for a valuation-relevant transaction (such as a goods movement).


 

 

GL for COGS is picked up from GBB Transaction key as shown below. General Modifier will be VAX

Offsetting entry for inventory posting      GBB

 

 

 

0001      VAX        3000      50100000            50100000

 

 

COGS Amount determination

Standard Price of Material is used to calculate the Amount.  Unit/Quantity will be multiplied by Standard Price and Amount is arrived.  From where does this Standard Price is derived? See below screenshot.

Note: I am not sure if there is another price which is considered for COGS. If you have any information, do share in comment section below.

 

 

 

 

 

 

 

Exercise

  • Identify few Billing documents with Accounting document posted

  • Begin the search from Billing document to VKOA.

  • Try few documents and your Basic FI-SD integration concept will be Clear.

  • Other table in VKOA are similar or with lesser value option.


Conclusion

Once you go through this blog, you will be able to understand the VKOA entries, SD flow and Finance flow. Post this, you will be able to drill down to accounting entries posted through this integration.

I hope you liked the document, and this is helpful to you.

 
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