SAP Account determination MM-FI by Odaiah Pelley

SAP Account determination MM-FI by Odaiah Pelley

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Fundamentals of MM-FI Account
Determination

Several colleagues have asked questions about integration between Materials
Management (MM) and Financial Accounting (FI) module:
- How do postings from MM flow into FI?
- How do we find out what occurs behind-the-scenes?
- How do we identify which movement types are pointing to a specific GL
Account?
- Is there a way by which we can change the posting to a different General Ledger
(GL) Account?
- How does one create a new movement type and assign it to a specific GL
Account?
Many SAP practitioners – IT and business alike – are in similar situation and do not
know where to start on MM-FI data flow and reconciliation. This blog is an
attempt to clarify the fundamentals of MM-FI account determination.
Configuration transaction OBYC forms the core of SAP’s integration between the
MM, FI, and Controlling (CO) modules in a traditional SAP ERP system
Transaction keys (1) are used to determine general ledger accounts used by the
system. Account modifier is used to differentiate account determinations,
depending on the procedure. [Transaction and account modifiers can be seen as a
logical grouping similar types of transactions]. The transaction-account modifier,
along with the valuation class, drives the accounting entries. Transaction keys are
predefined in the SAP system and cannot be changed.

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Figure 1: OBYC setup for BSX – Inventory posting
Many of you may have seen an accounting entry at the time of the purchase of
raw material as a debit to inventory and credit GR/IR. The configuration setup of
transaction BSX (inventory posting) is responsible for the inventory posting (see
Figure 1), and WRX (GR/IR clearing account) is responsible for GR/IR posting.
When movement type 101 is used to record the goods receipt of raw material
(valuation class 3000) for a purchase order, the system looks up the GL Account
for transaction BSX and WRX for valuation class 3000 and records it in the
accounting document.

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Figure 2: OBYC setup for GBB-VBR – Consumption to Order
Similarly, when raw material is consumed using movement type 261, the system
looks up transaction GBB (offsetting entry for inventory posting) for account
modifier VBR (consumption for internal goods issues), and that reflects the GL
Account in the accounting document (see Figure 2)
Figure 3 provides a summary of few important movement types and accounting
entries. Business process is listed in the column furthest to the left, with
movement type in the next column, and the debit and credit posting in the
subsequent columns.
There is a column for transaction and account modifiers; as we noted earlier,
these are SAP’s terms for logically grouping similar types of transactions. The
transaction account modifier, along with the valuation class, drives the accounting
entries.
The OBYC MM-FI account determination configuration is set up at the time of
original implementation, and once set up, these accounts are derived behind the
scenes. You’ll want to test the setup before going live to ensure that the correct
accounts are being hit for the respective transactions. You can change this
configuration after go-live, but the revised setup needs to be thoroughly tested.
Otherwise, we may run the risk of impacting regular operations.

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Figure 3: Summary of select movement types and accounting entries
Key take-aways:
 Transaction-account modifier and valuation class drive the accounting entries
 Transaction key: determines general ledger accounts for posting
 Account modifier: differentiates account determination based on procedure
 OBYC MM-FI Account determination setup is stored in underlying table T030
 OMJJ Movement Type setup is stored in underlying table T156X
 Combine these two tables (via SQ00 query, or simply on Excel)
 The account modifier links the Movement Type to the Accounting entries
I hope this write-up was useful and explained the fundamentals to the readers.
(1) - The transaction key in MM-FI account determination is not the same as
transaction code. A transaction code is an alphanumeric code that represents a
particular task in SAP. It allows users to access tasks directly without having to use
menu paths.