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MM-FI Integration in SAP R/3

Like SD and MM integration as highlighted before, SAP also cover some of the integration area related to Material Management and Financial Accounting components of SAP R/3. Under this article, some of the important steps related MM-FI Integration have been highlighted. This complete integration is covered in SPRO under the node Valuation and Account Assignment (Account Determination & Automatic Postings).

MM-FI Account Determination & Automatic Postings

As you know each and every goods movements (goods receipt, issue, consumption etc.) have its impact on quantity and valuation stock of materials moved in or out or consumed. To track this movement in terms of quantity and value youv need to post these movements in different General Ledger accounts of the company. In standard SAP these postings are available automatically in Invoice Verification and Inventory Management for all transactions which are relevant to Material Management and Financial & Cost Accounting. For posting these transactions to appropriate accounts you need to create some General Ledger accounts (Stock account, Consumption account, GR/IR clearing account etc.) in Financial Accounting with assignment to the following so as when posting the goods movement, the user need not to enter a G/L account manually, instead SAP R/3 System should automatically finds these accounts to which these postings needs to be made using the following data:

  • Chart of accounts of the company code
  • Valuation grouping code for the valuation area
  • Transaction/event key (internal processing key)
  • Account grouping (for offsetting entries, consignment liabilities, and price differences)
  • Valuation class of material or (in case of split valuation) the valuation type
  • Account Category Reference
  • Movement Types
  • Account Groupings for Movement Types
  • Different G/L Accounts Assigned to Different Transaction Keys & Account Grouping
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