1. SAPwww.consult4scm.blogspot.com1 Account assignment category

2. SAPwww.consult4scm.blogspot.com2 Account assignment category Specifies weather accounting for an item to be effected via an auxiliary account (such as cost center). We can use account assignment category in Purchase requisition and not in Purchase order. Allowed in purchase order for item category B (Limit orders-blanket PO) and D (external service orders).

3. SAPwww.consult4scm.blogspot.com3 Accounting assignment categories Defined in standard SAP R/3 system with their codes: Assets A Cost center K Projects P Production order F Sales order C Unknown U Auxiliary x

4. SAPwww.consult4scm.blogspot.com4 Account assignment category Can be created by T code OME9. Multiple account assignment is possible for a purchase order, here GR will be automatically converted as non valuated.

5. SAPwww.consult4scm.blogspot.com5 Cost center Cost center is an organizational unit within a controlling area that represents a defined location of cost incurrence. The definition can be based on functional requirement, allocation criteria, physical location, or responsibility for costs.

6. SAPwww.consult4scm.blogspot.com6 Procurement process Stock material With material master record Account assignment possible Account assignment from master records GR mandatory Qty, value and consumption updated in stock account Moving average price adjusted Price pulled up from master records

7. SAPwww.consult4scm.blogspot.com7 Procurement process Consumption material With or without master records Account assignment mandatory Manual entry of account assignment GR optional Qty and consumption update Posted in consumption account No value updating Price must be entered manually for items with out master records

8. SAPwww.consult4scm.blogspot.com8 Configure mandatory requirements KA01- Create cost element KS01- Create cost center Configuration to be done by FI CO

9. SAPwww.consult4scm.blogspot.com9 The account assignment category determines which account assignment data such as cost center, account number and so on is necessary for the item.