AUOTOMATIC ACCOUNT DETERMINATION OR

ASSIGNMENT

Whenever there is goods movement accounting documents/ financial

accounts updated automatically, so we do some settings in customization is
called automatic account assignment.
It works with three important factors: Chart of accounts
Material type
Valuation grouping code
Chart of accounts: - It is a group of accounts (GL Accounts), which is
assigned to our company code. One company code is assigned to one chart
of account but one chart of account can be maintained for n number of
company codes.
Valuation grouping code / valuation modification: - It is a 4-digit code,
which is assigned to company code along with valuation area (Plant)
Account category reference: - It is a 4-digit code that establishes
relationship between material types and valuation class. One account cat ref
assigned to n number of material type and valuation class
Transaction / Event key: - It is an internal processing key that facilitates
the automatic account determination for the various material and invoice
posting.
Use: - Key to determine the account in which a posting line is generated (at
least two transaction event keys are involved in each posting)
Value String: - It indicates the posting rule that always contain same
account assignment char to certain transaction / event key
Account Modifier: - It is a subdivision of transaction event key in which GL
account is linked during the process of automatic account determination.
Valuation class and material type is assigned to it
Steps: 1. Activate valuation Group code
2. Assign Valuation area to valuation grouping code
3. Create Account Cat Ref and valuation class
4. Assign valuation class to Account Cat Ref
5. Assign Account Cat Ref to Material type
6. Assign account grouping to movement types
7. Configure Automatic posting
Customize settings :SPRO IMG MM Valuation Class and Account Assignment Account
Determination Account determination without wizard
1. Define valuation control T Code OMWM
2. Group together valuation areas T Code OMWD
3. Define valuation class T Code OMSK
Account category reference
Valuation class
Material type / Account Cat Ref
4. Define Account grouping for movement type T Code OMWN
5. Configure automatic posting T Code OMWB
Transaction/ Event Keys

BSX - Stock Posting / Inventory Posting

PRD - Price difference
GBB - Offsetting entry for stock posting
WRX - GR/IR Clearing
FRI - Freight Clearing

SAP MM Automatic Account Determination

SAP MM Automatic Account Determination
There are many transactions in Material Management (MM) that relevant for
Accounting. These transactions must be recorded in accounting documents
that contain the postings made to the G/L accounts in Financial Accounting
(FI). The mostly used MM transactions that relevant for FI can be seen at
Accounting Journals of SAP Material Management (MM) Transactions.
For those transactions, as far as possible, the SAP R/3 System should
determine automatically the G/L account numbers that are involved in the
accounting journal. By doing so, we can minimize the inputs and error
possibilities made by MM end-users who perform the transactions as they
dont determine the G/L account numbers.
We can do this by Automatic Account Determination process in MM
configuration (T-code: SPRO). The automatic account determination process
must be done together with Accounting Department.
The influencing factors that determine how SAP choose the G/L account
numbers that are involved in the accounting journal for MM transactions are:
Chart of accounts of the company code
We must assign a chart of account to each company code. Several
company codes can use the same chart of accounts. This process must be
done in FICO configuration. You can learn how to configure FICO module in
its relation with MM module at SAP FICO minimal configuration for MM
posting.
SAP R/3 determines the chart of account affected by MM transaction from
the company code or plant entered by user when performs a transaction.
We must define the automatic account determination individually for each
chart of accounts.
Valuation grouping code of the valuation area
See Material Valuation to know more about valuation area.
The Valuation grouping code is a key to differentiate account
determination by valuation area within a chart of account.
Valuation grouping code is also called Valuation modification.
SAP screenshots of How to activate the valuation grouping code(T-code:
SPRO/OMWM):
SPRO menu:
IMG - Materials Management-Valuation and Account Assignment - Account
Determination - Account Determination Without Wizard-Define Valuation
Control.

A valuation grouping code consists of a group of valuation areas that can

have same account determination in a specific chart of account. It is a tool
that enables us to configure the automatic account determination with a
minimum of effort.
If we activate the valuation grouping code in configuration process, we
have to assign a valuation grouping code to each valuation area.
SAP Screenshots of How to define valuation grouping code (T-code:
SPRO/OMWD):
SPRO menu:
IMG - Materials Management-Valuation and Account Assignment - Account
Determination - Account Determination Without Wizard - Group Together
Valuation Areas.

By activating and using the valuation grouping code, we dont have to

configure account determination for each valuation area (that is a plant or
company code) if we dont want to differentiate it for each valuation area.
If we want the automatic account determination within a chart of accounts
runs differently for valuation areas, we can assign different valuation
grouping codes to these valuation areas.

We 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.
For example, if we want to differentiate the account determination for a
group of two plants with another group of other three plants in a company
code (where the valuation level is plant), we can assign a valuation
grouping code for the group of two plants and another valuation grouping
code for the group of other three plants. By doing so, we just have to
configure the account determination for the two valuation grouping codes,
no need for five valuation areas (plants).
SAP R/3 determines the valuation area and the valuation grouping code
affected by MM transaction from the company code or plant entered by
user when performs a transaction.
Valuation class of material
The valuation class is a key to differentiate account determination by
materials. For example, we can post a goods receipt of a raw material to a
different inventory account than if the goods receipt were for finishedproduct.
We can do this by assigning different valuation classes to the raw material
and finished-product and by assigning different G/L accounts to the
posting transaction for every valuation class. If we dont want to
differentiate account determination according to valuation classes we
dont have to maintain a valuation class for a transaction.
The valuation class must be entered in the accounting data view of
material master data for a valuated-material.
The allowed valuation classes for a material depend on its material type.
More than one valuation class can be allowed for a material type. More
than one material type can be allowed for a valuation class. The
relationship between valuation classes and material types is established
by the account category reference. The account category reference is a
compilation of valuation classes. A material type is assigned to only one
account category reference.

SAP screenshots of How to define valuation classes (T-code: SPRO/OMSK)

SPRO menu:
IMG - Materials Management-Valuation and Account Assignment - Account
Determination - Account Determination Without Wizard-Define Valuation
Classes.

Transaction/event key (internal processing key)

The Transaction/event key is a key to differentiate account determination

by business transaction. For example, we must differentiate G/L account
posted by goods receipt transaction and posted by invoice receipt
transaction.
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.
We do not have to define these transaction keys, they are determined
automatically from the transaction (invoice verification) or the movement
type (inventory management). All we have to do is assign the relevant G/L
account to each posting transaction.
You can see list of transaction key here.
Account grouping (only for transaction: offsetting entries, consignment
liabilities, and price differences)
Account grouping is a key that allows us to subdivide number assignments
for each transaction key in account determination.
Account grouping is also called general modification.
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", we
must assign G/L accounts for every account grouping, that is, assign G/L
accounts.
If we 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, we can define different account grouping codes for
the transaction key.
Using the account grouping, we can also have different accounts for
consignment liabilities and pipeline liabilities.
You can see list of account grouping here.
Configure Automatic Postings
Automatic Postings are postings made to G/L accounts automatically in the
case of Invoice Verification and Inventory Management transactions relevant
to Financial and Cost Accounting.

When entering the goods movement, the user does not have to enter a G/L
account, since the SAP R/3 System automatically finds the accounts to which
postings are to be made using the influence factors as explain above.
SAP Screenshots of how to configure automatic posting (T-code: SPRO/OBYC):
Posting made in the case of goods receipt (GR) to purchase order (PO):
GR/IR Clearing
Inventory account
Account
500
500
We need to update the BSX transaction key (Inventory posting) with the
GL code Inventory account.
SPRO menu:
IMG - Materials Management-Valuation and Account Assignment - Account
Determination - Account Determination Without Wizard - Configure
Automatic Posting.

Enter Chart of Account which we want to configure its account determination,

then enter the G/L account affected by the transaction as below:

We also need to update the WRX transaction key with the GL code GR/IR
Clearing account.

Enter Chart of Account which we want to configure its account determination,

and then enter the G/L account affected by the transaction as below:

posting made in the case of goods issue to cost center:

Material consumption
Inventory account
expense account
500
500
We have configured the inventory posting transaction in the previous section
(GR to PO).
Now, we have to configure transaction key GBB. GBB key is used for various
offsetting posting entries. Within GBB transaction there are various account
grouping (general modification). In this case we need to update general
modification VBR with the material consumption expense account.

Enter Chart of Account which we want to configure its account determination,

and then enter the G/L account affected by the transaction as below: