Configuring Automatic Account Determination

Slide 2 What is Automatic Account Determination? There are many FI transactions that are posted automatically Goods receipt Goods withdrawal (issue) Variances (production / etc…) Account determination is configured via the IMG

Slide 3 Valuation Control To perform automatic posting, valuation control must be enabled from the IMG Materials Management  Valuation and Account Assignment  Account Determination  Account Determination without Wizard  Define Valuation Control

Slide 4 Valuation Grouping Code

Slide 5 Valuation Class It’s the assignment of a material to a group of G / L accounts It’s used to determine which accounts are updated for a particular type of transaction (goods movement for example) Prerequisites Material types must have been defined COA must be created

Slide 6 Managing Valuation Classes It’s a three-step process Create account category references, if necessary Create valuation classes and assign them to account categories Assign account category to material type

Slide 7 Managing Valuation Classes

Slide 8 Managing Valuation Classes Account categories exist for reference We always create a valuation class by referencing an account category

Slide 9 Managing Valuation Classes Create valuation classes and assign them to account groups

Slide 10 Managing Valuation Classes Assign material types to account categories

Slide 11 Automatic Account Determination (1) It’s a stepwise hierarchical process that the systems figures out how to automatically post a transaction to a GL account

Slide 12 Automatic Account Determination (2) By company code COA Automatic account determination must be defined individually for each chart of accounts The systems determines the COA based on the company code or plant By valuation grouping code or valuation area Use to apply different valuation rules to different company codes By transaction key (these are predefined)

Slide 13 Automatic Account Determination (3) By account group We will not get into this By valuation class

Slide 14 Account Determination (Implementing) Create a valuation grouping code and assign it to a company and valuation area Establish automatic postings

Slide 15 Configure Automatic Postings (1) Accounts are organized by transaction types Always based on a COA

Slide 16 Configure Automatic Postings (2) Associate a valuation class (and group) with a G / L account

Slide 17 Configure Automatic Postings

Slide 18 What’s happening here? BSX (Inventory Posting) contained the inventory valuation classes and the inventory (asset) account GBB contains the corresponding expense accounts for the offsetting entry WRX goods receipt

Slide 19 Transaction Keys These are different than a transaction code and determine what is “happening” to the material Received from vendor Goods issued from warehouse There are hundreds of these

Slide 20 Configure Cost / Price Difference These are the price variance expense / revenue accounts

Slide 21 The GR / IR Account It’s Transaction Key WRX Set the GR / IR account to the Raw materials Semi-finished goods And finished goods valuation classes

Slide 22 Price Changes Telling the system whether a price change in the previous period should be “carried over” to the current period Set for the entire company code

Slide 23 Tax Defaults for Invoice Verification