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Author: rolandorh
I'm a Moslem and a happy father of 2. I live in Jakarta, Indonesia. My professional life is mostly as a consultant in infrastructure, ERP implementation, Business and IT Transformation. I have passion in programming (mainly 3D programming using C++) . Mostly my blog posts are about my personal notes on my work, my passions, my opinions about certain circumstances, and my principals in life.
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FI-PP integration takes place mainly at these stages
When you create and release the production order, the planned costs will be calculated from BOM and Routing/Master Recipe master data.-Co document will be generated for Planned postings
When you issue goods (Raw materials) to production (against Production order) the FI and CO entries will get generated – CO27
FI Entry-
Consumption A/C Db
To Inventory A/C Cr
CO primary cost postings will be triggered against the cost center.
When operations in routings are confirmed, the cost centers in the work centers will be charged with the activity costs. Here Secondary cost postings will be triggered in the production cost centers.
After final confirmation of the operations, the GRN will takes place against the production order, here also CO and FI documents will be generated – CO11
FI-Entry-
Finished Goods A/C Db
To cost of goods produced A/C
If the production order is not confirmed fully, we have to run WIP at the month end – KKAO
FI entry-
WIP A/C Db
To Change in WIP A/ c Cr
The above entry will be reversed at the time of settlement of production order
When the PO is technically completed, then settlement of PO takes place – K088
PP and CO integration is regarding Costing point of view, activity type mentioned in work center Costing tab. It captures the cost of the particular operation or activity.
Target costs are calculated using the planned costs for the cost center and the planned costs for the activity to be performed. The target costs are then compared with the actual costs for the period.
Variance: Difference between target cost and control cost that is analyzed in cost accounting. Target costs can be calculated on the basis of various costs such as standard costs or planned costs. Control costs can be the actual costs.
Closing order can be done in change mode of the production order or process order, it is for full and final settlement.
In nutshell, Production and CO integration starts with standard material cost where the material cost will be build from scratch i.e. with or with out qty structure.
Then it continues in production order where the production cost will be calculated planned and actual.
The difference between planned and actual is calculated as variance and is settled through production order to the receiver usually material or variance account.
KKS2 is variance calculation where before settlement, the variance in terms of qty, price etc. will be calculated. This step is required if you want to analyze the variance in terns of input/output qty/price variance etc.
If the order is closed, then the balance should be zero in production order (check in COO3 follow the menu path Goto–>cost –> balance)
Target cost is the planned cost * qty as per the BOM ratio.
Planed variable cost – variable cost is the cost which varies with the production usually the raw material cost.
SAP provides 5 ways to determine G/L account in SD modules. These are:
Cust.Grp/MaterialGrp/AcctKey
Cust.Grp/Account Key
Material Grp/Acct Key
General
Acct Key
The assigned G/L accounts are used to post the discount and revenue and any kind of surcharges.
To configure this, go to Path = SPRO-IMG-Sales and Distribution-Basic Functions-Account Assignment/Costing-Revenue Account Determination-Assign G/L Accounts
T-code = VKOA
You can see the below screen and you can also see the default table and description for above 5 ways.
First system checks the first table entry Cust.Grp/MaterialGrp/AcctKey. If any G/L maintained here then system will go to the transaction and the particular billing document, then system search the combination of customer group and material group. If system will find any G/L, then system will go through the G/L, if system doesn’t find the G/L, then it will search the next table.
Customer group is maintained in Customer master Data, Material Group is maintained in Material Master Data, Account key is maintained for condition type in pricing procedure.
Lets maintain One G/L account for material group and account key combination.
I have maintained the G/L for this combination. here AAG is the material grp.
Whenever system search the table and find the combination for transaction, then system will debit customer account and credit to this account (180033)
The account key determine that it is a revenue or discount or surcharges.
Press F4 on the Account Key field, you can see the all account keys.
The account keys are also maintained in calculation schema in Pricing procedure.
Path = SPRO-IMG-Sales and Distribution-Basic Functions-Pricing-Pricing Control-Define And Assign Pricing Procedures-Maintain pricing procedures
This defines the type of material e.g. : Raw material, Finished goods etc.
Material type is defined during material master data creation
Movement Type
This defines the type of material movement from one place to other. Movement type enables the system to find predefined posting rules determining how the stock and consumption accounts are to be posted. All possible goods movements are already defined by standard SAP. e.g. Movement type 101 refers goods receipt
Movement type is entered while posting stock movement related transactions. Most of the time, standard SAP automatically derives the movement type based on transaction code. e.g. If we go to MIGO, default movement type 101 is displayed by system.
Valuation Class
Valuation class is defined for the combination of plant and material (In Accounting 1 view of material master)
Valuation class allows posting of stock values of:
Materials of same material type to different G/L account (Different valuation class is assigned in different plants for the same material)
Materials of different material type to same G/L account (Same valuation class is assigned to materials of different material type)
Note: G/L accounts can be defined at valuation class level along with other parameters.
Valuation Grouping Code
Valuation grouping code combines the valuation areas having same business properties for the account determination. This reduces number of entries to be created for automatic account determination for the stock postings. e.g. : Valuation area 1 and 2 are required to be posted to same G/L account, these are grouped to valuation grouping code ABC and G/L is determined based on valuation grouping code and valuation class.
Before using valuation grouping code, it needs to be activated in OMWM.
Account modification/General modification
This key is used to determine different G/L account for the same kind of goods movement based on origin and target. e.g. : During Goods issue, offsetting G/L is determined from transaction key GBB. If business wants to post to different G/Ls for goods issue for cost centers (Movement type 201) and good issues to orders (Movement type 261) for the same material and plant, Account modifier can help here. To understand this better, let us go to t-code OMWN where we define the transaction key and account modification for the movement type.
Transaction key which we see in OBYC is determined based on the movement type. In below screenshot, you can see all parameters are same for movement type 201 and 261 except account modification.
Please read F1 help on different fields in this screen to know more about functionality of each field.
T-code OMWN
When material document is posted with these movement types, offsetting account is determined from transaction key GBB based on account modifier and valuation class.
From below screenshot, you can see that, different offsetting G/L account can be determined for the same transaction key and valuation class.
By Default, Standard SAP defines account modification keys for below transaction keys. User defined keys can also be defined and respective account determination settings can be maintained.
GBB (offsetting entry for inventory posting)
PRD (price differences)
KON (consignment liabilities)
Modifiers for GBB
For the transaction/event GBB (offsetting entry for inventory posting), the following account groupings have already been assigned to the relevant movement types:
AUF: for goods receipts for production orders with account assignment
BSA: for initial entries of stock balances
INV: for expense/revenue from inventory differences
VAX: for goods issues for sales orders without account assignment object
VAY: for goods issues for sales orders with account assignment object
VBO: for consumption from stock of material provided to vendor
VBR: for internal goods issues (e.g., for cost center)
VKA: for consumption for sales order without SD
VNG: for scrapping/destruction
VQP: for sampling
ZOB: for goods receipts without purchase orders
ZOF: for goods receipts without production orders
Modifiers for PRD
If you also activate account grouping for transaction/event PRD (price differences) when you make the settings for automatic postings, the following account groupings are already assigned to the relevant movement types in the standard:
none for goods receipts and invoice receipts for purchase orders
PRF: for goods receipts for production orders
PRA: for goods issues and other goods movements
How are the account determination attributes determined for each transaction key/event?
Did you observe different set of fields appears for different transaction keys in OBYC while maintaining G/L account? Yes. This is defined in Rules for the transaction key. e.g. : Select transaction key AUM in OBYC and click on “Rules” in toolbar.
If you go to G/L account maintenance for this key, you would see the same fields.
Quick snap of MM-FI Integration process
When we do material posting for a valuated material, below flow happens:
Movement type and other attributes like special stock indicator, movement indicator etc are determined based on business transaction like goods receipt for PO, production order etc.(OMWN). This is defined by standard SAP.
Transaction key/event and account modifier is identified based on movement type and other standard attributes in step 1 (OMWN)
Valuation grouping code activation is checked from OMWM
If active, for the given valuation area, valuation grouping code is identified from OMWD
For the identified transaction or event, check if valuation grouping code is active or not in OBYC (Click the rules button for the transaction key)
Valuation class is determined from material master.
Based on the above identified attributes, select the G/L account from OBYC.
If system can’t find any account for the found attributes, stock posting can’t be done and system through clear error stating for which combination of attributes, G/L account is missing. Such errors are mostly seen during go live/while posting to new materials due to missing G/L account maintenance or due to incorrect valuation class in material master data.
Now you know the process, here is the short cut to find out G/L.
Account determination details are stored in table T030. If you want to know based on what details XXX account is determined, simply give that G/L in T030 table in field KONTS. This gives the possible combination of entries where this G/L is assigned. We can further drill down based on the filtered entries.
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