account assignment category in sap fico

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What is Account assignment in SAP FICO ?

Updated Apr 01, 2023

Account assignment is a critical aspect of financial accounting and management in any organization. It refers to the process of allocating financial transactions to specific cost or profit centers, projects, or business processes. By properly assigning financial transactions to the appropriate account, organizations can accurately track their expenses, revenues, and profitability. This information can then be used to make informed decisions about resource allocation, cost control, and overall financial management. 

In SAP FICO, account assignment is a core module that offers various types of account assignment options, including cost center accounting, profit-center accounting, internal order accounting, and WBS element accounting. These options provide organizations with greater visibility into their financial performance, enabling them to optimize their operations and drive greater value for their stakeholders.

Types of  Account Assignment 

There are several types of account assignments in SAP FICO, including:

• Cost center accounting 
• Profit center accounting
• Internal order accounting
• WBS element accounting

i) Cost center accounting 

Cost center accounting is the process of tracking and analyzing costs associated with each department, function, or unit of an organization. SAP FICO provides a module that allows organizations to create and manage cost centers, allocate expenses, and generate reports to track performance.

By tracking expenses at a granular level, organizations can make informed decisions about resource allocation, identify areas of inefficiency, and make changes to improve overall performance, reducing costs and increasing efficiency.

ii) Profit center accounting

Profit center accounting is a process that allows organizations to track revenues and expenses at a granular level, providing insights into the profitability of individual business units, product lines, or geographic regions. By allocating revenues and expenses to specific profit centers, organizations can generate reports that help identify areas of high profitability or inefficiency.

SAP FICO provides a comprehensive profit center accounting module that enables organizations to create and manage profit centers, allocate revenues and expenses, and generate reports to analyze profitability. This information can be used to make informed decisions about product lines, investments, and resource allocation, enabling organizations to optimize their profitability and drive growth.

iii) Internal order accounting 

Internal order accounting is a process that allows organizations to track and control expenses associated with a specific project, event, or business process. By assigning costs to a specific internal order, organizations can monitor actual expenses versus budgeted expenses, and ensure that resources are allocated efficiently.

iv) WBS element accounting

WBS (Work Breakdown Structure) element accounting is a process that allows organizations to track and control expenses associated with a specific project or work breakdown structure. It involves breaking down large projects into smaller, manageable tasks or work packages, each of which is assigned a WBS element.

Expenses are then allocated to each WBS element to track actual versus planned expenses and ensure that resources are allocated efficiently.

Advantages of  Account Assignment 

The advantages of account assignment in SAP FICO include:

Better visibility: Account assignment allows organizations to track expenses and revenues at a granular level, providing better visibility into financial performance.

Resource allocation: By tracking expenses and revenues, organizations can make informed decisions about resource allocation, ensuring that resources are allocated efficiently.

Cost control: By identifying areas of inefficiency or waste, organizations can make changes to control costs and improve profitability.

Accurate reporting: Account assignment provides accurate reporting and analytics, enabling organizations to make informed decisions about their financial performance.

Compliance: Account assignment helps organizations comply with regulatory requirements and accounting standards.

How to Define Account Assignment?

Please follow the steps below to define the account assignment:

Execute t-code OKB9 in the SAP command field as shown in the image below.

On Change View "Default account assignment": Overview you will see the list of default account assignments.

Next, click the  New Entries button to create a new account assignment.

In the next window, enter the following fields:

• Cost Ctr 

Now click on the Save button to save the new account assignment.

Now in order to post a test document to check that the account assignment works, execute t-code FB50 in the SAP command field.

On the next popup enter Company Code as shown below.

Now on the next window, click Tree On button.

Next, select the Screen Variant in the next window and click Tree Off button.

In the next window, enter the following fields according to your requirements:

To make the document assignment, click the Post button.

The account assignment is now defined and can be used for tracking expenses and revenues at a granular level in SAP FICO.

• 04 Dec 2013 7:51 am rekha Account assignment is used in Sap Fico if you frequently use the same broad account assignments, such as a distribution of amounts to several company codes, accounts, or cost centers, you can use the account assignment model method to save input time and avoid input errors. The use of account assignment models is limited to G/L account items. T-code OK17 is used in the account assignment. If you have CO-FI real-time integration active you need this account assignment.

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Cross-Functional Customizing in SAP S/4HANA MM: Account Determination Configuration

Various transactions in materials management (MM) are relevant for accounting, such as goods receipts, goods issues, and invoice receipts.

In such cases, the system always creates an accounting document and posts the amount in the appropriate general ledger accounts.

General ledger accounts are automatically determined with the help of automatic account determination settings. Consider, for example, a manufacturing enterprise that stores stock materials purchased from vendors. Whenever a material is received in a storage location with reference to a PO, the company wants its system to automatically determine and update the stock general ledger account. Similarly, whenever an invoice is posted, the system should automatically determine the vendor general ledger account and post the liability.

The SAP S/4HANA system provides automatic general ledger account posting via the automatic account determination process. When posting a goods receipt against a PO, the system creates an accounting document (along with the material document), and general ledger account postings are made. The system determines which general ledger accounts should be debited and credited based on configuration settings you’ve maintained for automatic account determination.

Essential Terms

Before discussing these configuration settings, let’s define a few essential terms:

Valuation Class

A valuation class is used to determine the general ledger account for the materials stock account. In automatic account determination, valuation classes must be created and then assigned to material types. While creating material master records, selecting the appropriate valuation class under the Accounting 1 tab is required. The valuation class list in the material master record will depend on the material type. For example, in a standard SAP system, material type ROH (raw material) has three valuation classes: 3000, 3001, and 3002.

Transaction Key

Transaction keys are used to determine accounts or posting keys for line items that are automatically created by the system. They’re defined in the system and can’t be changed.

Now that you have an understanding of the key terms in automatic account determination and understand how it can work in your business, we’ll move on to describe the configuration steps and business processes involved.

Configuration with the Automatic Account Determination Wizard

Automatic account determination can be configured either with or without the automatic account determination wizard, a tool provided by SAP to help you manage the automatic account determination functionality. To configure automatic account determination using the wizard, follow the configuration menu path SAP IMG > Materials Management > Valuation and Account Assignment > Account Determination > Account Determination Wizard .

The wizard will ask you a number of questions and, based on your answers, finds the correct settings and saves them in the corresponding SAP tables. Except for a few restrictions (as documented in the wizard), the wizard will perform the following steps:

• Defines valuation control
• Groups valuation areas
• Defines valuation classes
• Defines account grouping for movement types
• Manages purchase accounts
• Configures automatic postings

We’ll explain how to set up automatic account determination without the wizard because this manual and step-by-step approach to account determination will help you understand how to work with the wizard. Further, using account determination without the wizard enables the creation of more complex configurations. Once you’ve gained the concepts and the fundamentals behind account determination, you can use the automatic account determination’s wizard tool to quickly setup account determination processes in SAP systems.

Configuration without the Automatic Account Determination Wizard

We’ll now follow a step-by-step approach to setting up account determination in an SAP system. We’ll cover the necessary configuration steps involved, followed by steps for assigning the configured objects in the master data. Business processes involving account determination and that use the master data are covered next. We’ll also cover the accounting entries that occur as the result of a stock posting.

Let’s walk through the required steps next:

Define a Valuation Control

In account determination, you can group together valuation areas by activating the valuation grouping code (also known as the valuation modifier ), which makes configuring automatic postings much easier. A valuation grouping code can be made active or inactive by choosing the respective radio button.

To define a valuation control, follow the configuration menu path SAP IMG > Materials Management > Valuation and Account Assignment > Account Determination > Account Determination without Wizard > Define Valuation Control .

By default, the valuation grouping code is active in the standard SAP system.

Assign Valuation Grouping Codes to Valuation Areas

The valuation grouping code makes setting up automatic account determination easier. Within the chart of accounts, assign the same valuation grouping codes to the valuation areas you want assigned to that account. As shown in the figure below, valuation grouping code 0001 has been assigned to valuation area 1100 and company code 1100. If another valuation area also uses the same set of general ledger accounts as valuation area 0001, then assign valuation grouping code 0001 to that valuation area.

To assign valuation grouping codes to valuation areas, follow the configuration menu path SAP IMG > Materials Management > Valuation and Account Assignment > Account Determination > Account Determination without Wizard > Group Together Valuation Areas .

Define Valuation Classes

In this step, you’ll define the valuation classes allowed for each material type. Then, you’ll assign the account category reference to the material type. As shown in the second figure below, account category references 0001 and 0002 have been defined, and for each account category reference, one or more valuation classes can be assigned. Account category reference 0001 has been assigned to material type ROH, and valuation classes 3000, 3001, and 3002 have been assigned to account category reference 0001. Consequently, valuation classes 3000, 3001, and 3002 have been assigned to material type ROH. While creating the material master record for material type ROH, select any of these valuation classes. Similarly, for material type HALB, select valuation classes 7900 or 7901.

In this section, through an example, we’ll create the new valuation class 3004 and cover all the associated configuration settings required to ensure a working end-to-end business process.

To define which valuation classes are allowed for a material type, use Transaction OMSK or follow the configuration menu path SAP IMG > Materials Management > Valuation and Account Assignment > Account Determination > Account Determination without Wizard > Define Valuation Classes . On the screen that appears, you’ll see three options: Account Category Reference , Valuation Class , and Material Type/Account Category Reference . Follow these steps:

• Click on Account Category Reference and, if needed, create an account category reference, as shown here:

• Click on Valuation Class , shown below, and then click on the New Entries Create a new valuation class ( ValCl ) 3004 (with Description Raw Materials- Steel ) and assign the valuation class to account category reference ( ARef ) 0001 . 2

• Click on Account Category Reference and maintain a mapping between the material types and account references. For material type ( MType ) ROH , assign the account reference ( ARef ) 0001 , as shown here:

Define an Account Grouping for Movement Types

Now, assign an account grouping to movement types. The account grouping is a finer subdivision of the transaction/event keys for account determination. For example, during a goods movement, the offsetting entry for the inventory posting (Transaction GBB) can be made to different accounts, depending on the movement type. The account grouping is provided for the following transactions:

• Transaction GBB (Offsetting Entry for Inventory Posting)
• Transaction PRD (Price Differences)
• Transaction KON (Consignment Liabilities)

The account grouping in the standard system is only active for Transaction GBB. To define account groupings for movement types, follow the configuration menu path SAP IMG > Materials Management > Valuation and Account Assignment > Account Determination > Account Determination without Wizard > Define Account Grouping for Movement Types . Define the account grouping code, the movement type, and the transaction/event key combination, as shown in the next figure.

Note: Value strings group together the various transactions used in account determination. For example, the value string WE01 can be seen by following the configuration menu path SAP IMG > Materials Management > Valuation and Account Assignment > Account Determination > Account Determination Without Wizard > Define Account Grouping for Movement Types . On this screen, if you double-click on any entries that contain WE01, a list of transactions along with their descriptions will appear. The transactions that appear in the value string are hard coded in the system, so you should never try to change them.

Configure Automatic Postings

In this step, enter the system settings for inventory management and invoice verification transactions that result in automatic posting to general ledger accounts. A transaction/event key is a key to differentiate account determination by business transaction. For example, we must differentiate general ledger account posted by goods receipt transaction and posted by invoice receipt transaction.

You don’t need to define these transaction keys; they are determined automatically from the transaction of the movement type (inventory management) or from the transaction of invoice verification. All you need to do is assign the relevant general ledger account to each posting transaction.

To assign general ledger accounts to transaction/event keys, use Transaction OMWB or follow the menu path SAP IMG > Materials Management > Valuation and Account Assignment > Account Determination > Account Determination without Wizard > Configure Automatic Posting . Click on Cancel , as shown below.

To assign a general ledger account, on the screen shown above, click on Account Assignment (not shown). A list of transaction keys will appear; double click on the key for which setting the general ledger accounts is required. Next, define the valuation grouping code (also known as the valuation modifier ), valuation class, and general ledger account, as shown below. Then, check the settings function by using the simulation function.

Use Transaction BSX for inventory posting and for assigning general ledgers. In the popup window that appears, enter the Chart of Accounts 1100 , and the screen shown below will appear.

This figure shows the Transaction BSX screen for posting inventory. Click New Entries and enter the newly created Valuation Class 3004 and assign the Account 11020101 .

Go back to the screen shown when utilizing Transaction OMWB, and this time, use Transaction WRX (for the goods receipt/invoice receipt [GR/IR] clearing account) and maintain the general ledger account of the newly created Valuation class 3004 . Similarly, repeat the same steps for Transaction PRD (for price difference account).

Let’s now look at the business processes and the associated master data setup and transactions, not only to check that the newly created valuation class 3004 works correctly, but also that the associated general ledger accounts are correct.

Master Data Setup

Access the screen shown below via Transaction MM01. Under the Accounting 1 tab of the material master 157 , assign the newly created Valuation Class 3004 .

Now, let’s discuss the account determination for the general ledger as it relates to goods receipt and goods issue postings. Post a good receipt of the material 157 with reference to a PO via Transaction MIGO. Then, display the goods receipt document and go to the Doc. info tab. Click on the FI Documents button, which will display a list of financial documents created for the goods receipt document. Select Accounting document to see the details of that accounting document.

As shown below, you’ll see the general ledger account postings, which are determined based on the automatic account determination configuration. General ledger account 11020201 (inventory raw material stock account) is debited, and GR/IR account 22010202 is credited.

In this blog post, we covered the account determination process that is useful to those running materials management with SAP .

Editor’s note : This post has been adapted from a section of the book Materials Management with SAP S/4HANA: Business Processes and Configuration by Jawad Akhtar and Martin Murray.

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Display sap mm-fi automatic account assignment.

by John Jordan

Table of Contents

Introduction, display obyc accounts with se16n, more information.

You use configuration Transaction OBYC to assign SAP General Ledger (GL) accounts in Financial Accounting (FI) to movement types in Materials Management (MM), also known as SAP MM-FI Automatic Account Determination or Assignment.

End users do not typically have the authorization to run configuration Transaction OBYC. 

You can easily display automatic account assignments as follows:

View table T030, which stores OBYC configuration settings, with Transaction SE16N.

Type in Table T030 and press Enter to display the selection screen shown in Figure 1.

Figure 1 : Table T030 Selection Screen To Display SAP MM-FI Configuration Settings

You restrict the table entries displayed on the subsequent results screen by making entries in the Selection Criteria section. To display G/L accounts posted during goods issues (GI) to production orders, make the following entries:

• Chart of Accounts : Restrict your selection by your chart of accounts, INT in this example
• Transaction : You display inventory movements with Transaction  GBB
• Valuation Grouping Code : A group of company codes (set up with transaction OMWD)
• Account modifier : VBR for GI to production orders
• Valuation Class : You assign a valuation class in the Costing 2 view 

Click the execute icon to display the screen shown in Figure 2.

Figure 2 : Table T030 Entries Display SAP MM-FI Configuration Settings

This screen displays the G/L Accounts posted during goods issues to production orders.

For more information on entries in table T030, follow IMG menu path: 

Materials Management • Valuation and Account Assignment • Account Determination • Account Determination Without Wizard • Configure Automatic Postings

Figure 3 displays the menu path.

Figure 3 : Configure Automatic Postings Menu Path

Click the paper and glasses icon to the left of Configure Automatic Postings at the bottom to display standard SAP documentation on setting up automatic postings.

Activity Type

An activity type identifies activities provided by a cost center to manufacturing orders. The secondary cost element associated with an activity type identifies the activity costs on cost center and detailed reports

Alternative Hierarchy

While there can only be one cost center standard hierarchy, you can create as many alternative hierarchies as you like. You create an alternative hierarchy by creating cost center groups

Automatic Account Assignment

Automatic account assignment allows you to enter a default cost center per cost element within a plant with Transaction OKB9.

Condition Type

A condition type is a key that identifies a condition. The condition type indicates, for example, whether the system applies a price, a discount, a surcharge, or some other pricing, such as freight costs and sales taxes.

Cost Center Accounting

A cost center is a function within an organization that does not directly add to profit but still costs money to operate, such as the accounting, HR, or IT departments. The main use of a cost center is to track actual expenses for comparison to the budget.

Cost Estimate

A cost estimate calculates the plan cost to manufacture a product or purchase a component. It determines material costs by multiplying BOM quantities by the standard price, labor costs by multiplying operation standard quantities by plan activity price, and overhead values by costing sheet configuration.

Cost Object

An SAP Cost object such as a cost center or internal order describes where the cost occurs. A cost element or account describes what the cost is.

Costing Lot Size

The costing lot size in the Costing 1 view determines the quantity cost estimate calculations are based on. The costing lot size should be set as close as possible to actual purchase and production quantities to reduce lot size variance.

Goods Issue

A goods issue is the movement (removal) of goods or materials from inventory to manufacturing or to a customer. When goods are issued, it reduces the number of stock in the warehouse.

Goods Receipt

It is a goods movement that is used to post goods received from external vendors or from in-plant production. All goods receipts result in an increase of stock in the warehouse.

Internal Order

An internal order monitors costs and revenue of an organization for short- to medium-term jobs. You can carry out planning at a cost element and detailed level, and you can carry out budgeting at an overall level with availability control.

Production Variance

Production variance is a type of variance calculation based on the difference between net actual costs debited to the order and target costs based on the preliminary cost estimate and quantity delivered to inventory. You calculate production variance with target cost version 1.

Profit Center

A profit center receives postings made in parallel to cost centers and other master data such as orders. Profit Center Accounting (PCA) is a separate ledger that enables reporting from a profit center point of view. You normally create profit centers based on areas in a company that generate revenue and have a responsible manager assigned.

If PCA is active, you will receive a warning message if you do not specify a profit center, and all unassigned postings are made to a dummy profit center. You activate profit center accounting with configuration Transaction OKKP, which maintains the controlling area.

Purchasing Info Record

A purchasing info record stores all of the information relevant to the procurement of a material from a vendor. It contains the Purchase Price field, which the standard cost estimate searches for when determining the purchase price.

Scheduling Agreement

A scheduling agreement is a longer-term purchase arrangement with a vendor covering the supply of materials according to predetermined conditions. These apply for a predefined period and a total purchase quantity.

Standard Hierarchy

A standard hierarchy represents your company structure. A standard hierarchy is guaranteed to contain all cost centers or profit centers because a mandatory field in cost and profit center master data is a standard hierarchy node.

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Standard Price

The standard price in the Costing 2 view determines the inventory valuation price if price control is set at standard (S). The standard price is updated when a standard cost estimate is released. You normally value manufactured goods at the standard price.

You can apply surcharges to material prices and activity prices in order to take into account increases or decreases in item prices over time when calculating the lifecycle costs for a project.

Target Costs

Target costs are plan costs adjusted by the delivered quantity. For example, if the quantity delivered to inventory is 50% of the plan quantity, target costs are calculated as 50% of the plan costs.

Material Master

A material master contains all of the information required to manage a material. Information is stored in views, and each view corresponds to a department or area of business responsibility. Views conveniently group information together for users in different departments, for example, sales and purchasing.

Origin Group

An origin group separately identifies materials assigned to the same cost element, allowing them to be assigned to separate cost components. The origin group can also determine the calculation base for overhead in costing sheets.

Price Control

The Price control field in the Costing 2 view determines whether inventory is valuated at standard or moving average price.

The price unit is the number of units to which the price refers. You can increase the accuracy of the price by increasing the price unit. To determine the unit price, divide the price by the price unit.

Process Order

Process orders are used for the production of materials or provide services in a certain quantity and on a certain date. They allow resource planning, process order management control, and account assignment and order settlement rules to be specified.

Procurement Alternative

A procurement alternative represents one of a number of different ways of procuring a material. You can control the level of detail in which the procurement alternatives are represented through the controlling level. Depending on the processing category, there are single-level and multilevel procurement alternatives. For example, a purchase order is single-level procurement, while production is multilevel procurement.

Production Order

A production order is used for discrete manufacturing. A BOM and routing are copied from master data to the order. A sequence of operations is supplied by the routing, which describes how to carry out work-steps. An operation can refer to a work center at which it is to be performed. An operation contains planned activities required to carry out the operation. Costs are based on the material components and activity price multiplied by a standard value.

Product Drilldown Reports

Product drilldown reports allow you to slice and dice data based on characteristics such as product group, material, plant, cost component, and period. Product drilldown reports are based on predefined summarization levels and are relatively simple to setup and run.

Production variance is a type of variance calculation based on the difference between net actual costs debited to the order and target costs based on the preliminary cost estimate and quantity delivered to inventory. You calculate production variance with target cost version 1. Production variances are for information only and are not relevant for settlement.

Production Version

A production version determines which alternative BOM is used together with which task list/master recipe to produce a material or create a master production schedule. For one material, you can have several production versions for various validity periods and lot-size ranges.

Purchase Price Variance

When raw materials are valued at the standard price, a purchase price variance will post during goods receipt if the goods receipt or invoice price is different from the material standard price.

Profitability Analysis

Costing-based profitability analysis enables you to evaluate market segments, which can be classified according to products, customers, orders (or any combination of these), or strategic business units, such as sales organizations or business areas concerning your company’s profit or contribution margin.

SAP Profit Center is a management-oriented organizational unit used for internal controlling purposes. Segmenting a company into profit centers allows us to analyze and delegate responsibility to decentralized units.

A purchasing info record stores all the information relevant to the procurement of a material from a vendor. It contains the Purchase Price field, which the standard cost estimate searches for when determining the purchase price.

Raw Materials

Raw materials are always procured externally and then processed. A material master record of this type contains purchasing data but not sales.

A routing is a list of tasks containing standard activity times required to perform operations to build an assembly. Routings, together with planned activity prices, provide cost estimates with the information necessary to calculate labor and activity costs of products.

Sales and Operations Planning

Sales and operations planning (SOP) allows you to enter a sales plan, convert it to a production plan, and transfer the plan to long-term planning.

S&OP is slowly being replaced by SAP Integrated Business Planning for Supply Chain (SAP IBP), which supports all S&OP features. S&OP is intended as a bridge or interim solution, which allows you a smooth transition from SAP ERP to on-premise SAP S/4HANA and SAP IBP. See SAP Note 2268064 for details.

SAP Fiori is a web-based interface that can be used in place of the SAP GUI. SAP Fiori apps access the Universal Journal directly, taking advantage of additional fields like the work center and operation for improved variance reporting.

Work in process (WIP) and variances are transferred to Financial Accounting, Profit Center Accounting (PCA), and Profitability Analysis (CO-PA) during settlement. Variance categories can also be transferred to value fields in CO-PA.

Settlement Profile

A settlement profile contains the parameters necessary to create a settlement rule for manufacturing orders and product cost collectors and is contained in the order type.

Settlement Rule

A settlement rule determines which portions of a sender’s costs are allocated to which receivers. A settlement rule is contained in a manufacturing order or product cost collector header data.

You need setup time to prepare equipment and machinery for the production of assemblies, and that preparation is generally the same regardless of the quantity produced. Setup time spread over a smaller production quantity increases the unit cost.

Simultaneous Costing

The process of recording actual costs for cost objects, such as manufacturing orders and product cost collectors in cost object controlling, is called simultaneous costing. Costs typically include goods issues, receipts to and from an order, activity confirmations, and external service costs.

Source Cost Element

Source cost elements identify costs that debit objects, such as manufacturing orders and product cost collectors.

Source List

A source list is a list of available sources of supply for a material, which indicates the periods during which procurement is possible. Usually, a source list is a list of quotations for a material from different vendors.

You can specify a preferred vendor by selecting a fixed source of supply indicator. If you do not select this indicator for any source, a cost estimate will choose the lowest cost source as the cost of the component. You can also indicate which sources are relevant to MRP.

The standard price in the Costing 2 view determines the inventory valuation price when price control is set at standard (S). The standard price is updated when a standard cost estimate is released. You normally value manufactured goods at the standard price.

Subcontracting

You supply component parts to an external vendor who manufactures the complete assembly. The vendor has previously supplied a quotation, which is entered in a purchasing info record with a category of subcontracting.

Tracing Factor

Tracing factors determine the cost portions received by each receiver from senders during periodic allocations, such as assessments and distributions.

Universal Journal

The efficiency and speed of the SAP HANA in-memory database allowed the introduction of the Universal Journal single line-item tables ACDOCA (actual) and ACDOCP (plan). The Universal Journal allows all postings from the previous financial and controlling components to be combined in single items. The many benefits include the development of real-time accounting. In this book, we discuss both period-end and event-based processing.

Valuation Class

The valuation class in the Costing 2 view determines which general ledger accounts are updated as a result of inventory movement or settlement.

Valuation Date

The valuation date determines which material and activity prices are selected when you create a cost estimate. Purchasing info records can contain different vendor-quoted prices for different dates. Different plan activity rates can be entered per fiscal period.

Valuation Grouping Code

The valuation grouping code allows you to assign the same general ledger account assignments across several plants with Transaction OMWD to minimize your work. The grouping code can represent one or a group of plants.

Valuation Type

You use valuation types in the split valuation process, which enables the same material in a plant to have different valuations based on criteria such as batch. You assign valuation types to each valuation category, which specify the individual characteristics that exist for that valuation category. For example, you can valuate stocks of a material produced in-house separately from stocks of the same material purchased externally from vendors. You then select procurement type as the valuation category and internal and external as the valuation types.

Valuation Variant

The valuation variant is a costing variant component that allows different search strategies for materials, activity types, subcontracting, and external processing. For example, the search strategy for purchased and raw materials typically searches first for a price from the purchasing info record.

Valuation Variant for Scrap and WIP

This valuation variant allows a choice of cost estimates to valuate scrap and WIP in a WIP at target scenario. If the structure of a routing is changed after a costing run, WIP can still be valued with the valuation variant for scrap and WIP resulting in a more accurate WIP valuation.

Valuation View

In the context of multiple valuation and transfer prices, you can define the following views: – Legal valuation view – Group valuation view – Profit center valuation view

Work Center

Operations are carried out at work centers representing; for example, machines, production lines, or employees. Work center master data contains a mandatory cost center field. A work center can only be linked to one cost center, while a cost center can be linked to many work centers.

Work in Process

Work in process (WIP) represents production costs of incomplete assemblies. For balance sheet accounts to accurately reflect company assets at period end, WIP costs are moved temporarily to WIP balance sheet and profit and loss accounts. WIP is canceled during period-end processing following delivery of assemblies to inventory.

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3016084 - Only 2 Account Assignment categories available in Flexible Workflow - SAP S/4HANA & SAP Fiori.

When creating a new flexible workflow(for Purchase Order/Purchase Requisition) with account assignment category as a start condition, it is possible to choose from: Cost Center(K) or Project(P). Other account assignment cateogories are not available like "Q" or "X", for example.

Environment

•  SAP FIORI 
•  SAP FIORI for S/4HANA
•  SAP S/4HANA All versions

fiori, MMFIOSTD, WS00800173, BADI, manage workflow app, conditions, 1909, 1809 , KBA , MM-PUR-GF-WOF , Workflow , MM-FIO-PUR-REL , Fiori UI for Purchasing Approval , Problem

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Defining General Ledger (G/L) Accounts and Cost Elements

After completing this lesson, you will be able to:

• Define a G/L account

Chart of Account

Each G/L is set up according to a chart of accounts. The chart of accounts contains the definitions of all G/L accounts. The definitions consist of the account number, the account name, and the type of G/L account (e.g. balance sheet, non operating expenses/revenues, primary costs/revenues, secondary costs or cash accounts).

Assignment of Company Codes to Chart of Accounts

A chart of accounts can be used by multiple company codes so that the general ledgers of these company codes have an identical structure.

General Ledger Account and Cost Element

The two segments of the G/L master record from a Financial Accounting perspective are as follows:

The chart of accounts segment contains a description of the account, the account type that classifies how the account can be used in FI and/or CO and, the account group that controls the company code segment fields, and the consolidation account number.

The company code segment contains values specific to how the company code will manage that account.

Account Groups

Accounts with the same account group normally have similar business functions. You can, for example, have an account group for:

Cash accounts

Expense accounts

Revenue accounts

Other balance sheet accounts

The account groups are assigned number ranges. You can control which account numbers are permissible for cash accounts, expense accounts, and so on, through the number ranges.

Account groups also control the appearance of the company code segment of G/L accounts. Account groups control:

The fields that are required for data entry

The fields that are optional for data entry

The fields that are display only.

The fields that do not show up at all in the company code segment

Reconciliation Accounts

Expenditures versus costs.

In the economical theory, there are two approaches for values:

In the first approach, the values in Financial Accounting and Management Accounting are the same:

Controlling provides additional reporting opportunities by separating the FI documents along additional characteristics, such as segments, profit centers, projects, stored in a coding block. The results may be P&L statements and balance sheets per segment, per profit center or per project.

In the second approach (most used in central Europe), Management Accounting is based on cost and revenues. Costs are only those expenditures, which are as follows:

Related to the business of the company

Exactly assigned to periods (source specific)

For example, a gift to a welfare organization is an expenditure, but not a cost, because it is not the business of the company to make gifts.

Expenditures, which do not meet the definition of costs, are only reflected in Financials, and not in Management Accounting. They are called neutral expenditures.

SAP provides the opportunity to realize each of the theories. In SAP S/4HANA revenues, expenditures, and cost are represented by financial accounts and separated by the Account Type of the accounts. Based on the account type, the accounts used in CO are also called cost elements.

Account Types

The controlling area-specific data is only needed for Secondary Costs and Primary Costs or Revenue accounts. In the controlling area-specific data, you assign a Cost Element category. This category determines which account can be used for which business transaction in CO.

Create a Primary Cost Account

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