SAP FICO SD & MM Integration

SAP FICO SD & MM Integration

FI and MM Integration

  • Valuation Area: Valuation area is the level at which you want to valuate your materials.
  • Valuation grouping code: Grouping of Valuation areas for the purpose of automatic account determination is called Valuation grouping code. In other words we group together one or more valuation areas that have same account determination attributes (In Flow chart shown below, valuation area 2100 and 2200 are grouped together as (VGC 0001) they have same account determination and Valuation areas 2300, 2400 and 2500 are grouped together (VGC 0002) as they have same account determination).
  • FI and MM Integration T Code: OBYC
  • First Set the Valuation Area. SAP provides two levels of valuation; Plant level and company code level.
  • Define the automatic account determination individually for every Valuation Grouping Code. It applies to all Valuation Areas which are assigned to Valuation grouping code.
  • Assign all the relevant G/L accounts to each pre-defined transaction keys/posting transaction.
  • Transaction keys are pre-defined in the system and they are determined automatically from the transaction (Invoice Verification) or Material movement type (Inventory Management).
  • When user enters company code or plant while entering a transaction, the system determines the valuation area and valuation grouping code.
  • In the Material Master, the Valuation Class allows to define the automatic account determination that is dependent on the Material.
  • The valuation class determines the G/L accounts that are updated as a result of a valuation-relevant transaction or event such as a goods movement.
  • The link between the valuation class and material group (type) will establish through the account category reference.
  • We will assign valuation class to account category reference and in turn account category reference is assigned to material group (type).
  • At the time of creation of material by using the material group (type), all the valuation classes are defaulted based on the account category reference. Since account category reference is assigned to material group.
  • Finally in OBYC T.Code we will give account determination for auto posting to GL Accounts to this valuation class.


FI and MM Integration Flow Chart





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