Unit 5: Valuation and Account Assignment

Lesson 1 · Describing Automatic Account Determination

Key concepts

Many logistics transactions change the value of stock or create liabilities: a goods receipt raises inventory value, a goods issue to a production order moves value from stock into consumption, an invoice creates a payable. For each such event SAP S/4HANA writes an accounting document in parallel to the material document. Users posting in MIGO or MIRO never type a G/L account for the stock, GR/IR or price-difference lines; the system derives them from Customizing tables. This mechanism is called automatic account determination. Its central table is maintained in the IMG activity Configure Automatic Postings (transaction OMWB, with the account assignment table itself reachable via OBYC).

Automatic account determination covers three MM areas: Inventory Management (goods movements, including those triggered by production or sales), Logistics Invoice Verification, and material valuation (for example price changes with MR21).

Worked example: GR and invoice for a standard-price material

Assume a PO for 10 pieces at EUR 12 each, while the material is valuated at a standard price (price control S) of EUR 10.

Note the special case: the supplier line is the only one not determined by MM account determination; it uses the reconciliation account stored in the business partner (supplier role, company code level). Whether a line is a debit or credit, and against which account type (supplier, asset, G/L…), is controlled by the FI posting key.

A single MM transaction is therefore a bundle of several posting transactions. A GR against a PO, for example, combines the stock posting (BSX) and the GR/IR clearing posting (WRX), and possibly PRD.

Influencing factors

Examples from the lesson: the same material issued to a production order in two plants can hit different stock and expense accounts (if the plant is the valuation level); two materials of different material types in one plant can hit different stock accounts; and a GR versus a price change produce entirely different posting patterns (a price change revaluates existing stock against a revaluation gain/loss account).

In invoice verification for a moving-average-price material, a price variance normally adjusts the stock value. Only if the invoiced quantity is no longer (or only partly) in stock – the system checks stock coverage – is the uncovered part posted to a price difference account.

Process flow

Configuration (IMG)

Lesson 2 · Determining the Relevance of Company Codes and Valuation Areas

Key concepts

Three organizational and valuation levels govern which accounts the system can find: the chart of accounts, the valuation area (via the valuation grouping code) and, for split-valuated materials, the valuation type.

Chart of accounts

The chart of accounts lists all G/L accounts shared by one or more company codes, with number, name and control data. Because account 13100000 can mean something completely different in another chart of accounts, the account determination table always has the chart of accounts as its leading key, and you must maintain account determination separately for each chart of accounts. A company code has exactly one operative chart of accounts; additionally a country-specific chart (legal requirements) and a group chart (consolidation) may exist. The chart of accounts is used by both FI and Controlling.

Valuation area and valuation level

The valuation area is the logistics unit in which material stocks are valuated uniformly. It is either the company code or the plant, chosen once per client (OX14, Define Valuation Level). If the plant is the valuation level, each plant is a valuation area with the same key. The decision must be made before materials and stock postings exist; changing it later in a productive system is practically impossible because all inventory data would have to be converted. SAP recommends plant level, and it is required if you use Production Planning or product cost estimates.

Valuation grouping code

To avoid maintaining identical entries for many valuation areas, valuation areas that should share the same accounts receive the same valuation grouping code. Activating the valuation grouping code makes account determination dependent on the valuation area; once active, every valuation area must have a code.

Configuration (IMG)

1. Define the valuation level (client-wide) with OX14.
2. Check the chart of accounts assignment to each company code (FI: OB62).
3. Activate the valuation grouping code and assign a code to each valuation area with OMWD.
4. Maintain accounts per valuation grouping code in OBYC.

Lesson 3 · Creating Valuation Classes and Account Category References

Key concepts

To post different materials to different stock (and consumption) accounts, account determination needs a material-related key. This is the valuation class, entered in the Accounting 1 view of the material master at valuation-area level (or per valuation type in split valuation). Materials with the same valuation class are treated identically by account determination. A transaction key only reacts to the valuation class if the rules for that key include the valuation class as a dependency.

Which valuation classes a user may enter depends on the material type. The connector is the account category reference (ACR):

Example: ACR 0001 (raw materials) allows valuation classes 3000–3003 and is assigned to material types ROH, COMP and CONT. A ROH material can therefore carry any of those four classes, but not a valuation class of the trading-goods ACR.

Design options

Options 2 and 3 can be combined. A typical reason for option 3 is distinguishing purchased and in-house-produced materials of the same type.

System / configuration steps

1. Define account category references and valuation classes, and assign valuation classes to the ACR (OMSK).
2. Assign the ACR to each material type (also in OMSK; material types themselves in OMS2).
3. Make sure the valuation class is a rule for the relevant keys (BSX, GBB, PRD…) and maintain the accounts in OBYC.
4. Enter the valuation class in the material master (MM01/MM02, Accounting 1 view).

Lesson 4 · Setting Up Account Determination for Specific Transactions

Account determination wizard

The wizard guides you through the Customizing in the right sequence by asking questions and branching into the relevant tables, with hints and recommendations. It covers: checking company codes, plants and material types; choosing the material types to use; purchase account management (needed only in some countries such as France, Belgium, Spain); grouping valuation areas; defining rules for stock and other postings; defining valuation classes; assigning stock accounts; and assigning all other G/L accounts per business transaction.

Value strings and transaction/event keys

SAP predefines the posting logic for every value-relevant MM transaction. Instead of real accounts, each transaction is assigned a value string (posting rule) – a list of the maximum possible transaction/event keys (e.g. BSX, WRX, PRD, GBB). The value string is found automatically from the movement type plus internal indicators (Inventory Management) or from the LIV transaction. At posting time, the program decides which keys in the string actually produce lines. Your only job is to assign G/L accounts per key. Value strings and their key lists can be displayed in Inventory Management Customizing but not changed or extended.

Important transaction/event keys

Value string WA14 explained

• Moving average price (V): receipt valuated at zero, so a material document only, no FI document.
• Standard price (S): stock is debited at standard price (BSX), revenue booked as price difference (PRD).
• Standard price, posting in the previous period with a standard price different from the current period: two FI documents. The previous-period document contains BSX + PRD; the current-period adjustment document contains a second BSX line against UMB. This is why BSX appears twice in the string.

Rules, accounts and posting keys

For each key you first define the rules: which factors the account depends on – valuation modifier (valuation grouping code), general modification (account grouping code, not available for every key) and valuation class. A separate indicator decides whether debit and credit postings use different accounts (useful for expense/revenue keys such as PRD). For BSX in chart of accounts YCOA, typical rules are valuation grouping code + valuation class, and an account must exist for every combination that can occur. Each key also has posting keys for debit and credit (e.g. 89/99 for stock, 86/96 for GR/IR); the posting key controls account type, debit/credit and screen layout.

Simulation

Because Inventory Management (unlike LIV) offers no simulation in the application, Customizing provides one inside Configure Automatic Postings. You choose input mode (material number or valuation class), application area (Inventory Management movements or Invoice Verification transactions; not purchasing or payments), plant and movement type. The result lists all keys of the value string with the factors used and the account found; it can check whether the accounts exist in the chart of accounts and compare with the field selection of the movement type (Check Screen Layout). Keys irrelevant to your company code (e.g. EIN, EKG) are still shown. An entry “-e-” means the rule is not active for that key.

System steps

1. Start OMWB (Configure Automatic Postings) and choose Simulation to test, or G/L Accounts to maintain.
2. Maintain the account table per key with OBYC: enter chart of accounts, set Rules, Posting Key, then accounts per VG/AG/VClass.
3. Check G/L account masters exist (FS00).

Lesson 5 · Subdividing a Transaction with the Account Grouping Code

Key concepts

Value string WA01 serves many goods issues and other receipts. Its key GBB (offsetting entry for inventory posting) would by default hit one account for all of them, but a GI to a cost center, a scrapping, a sample, an inventory difference or an initial stock entry belong to different expense or income accounts. The account grouping code (also called general modification or account modifier) subdivides a key: you activate “general modification” as a rule for the key and then maintain accounts per code.

For goods movements the account grouping code is assigned to the movement type, optionally dependent on further indicators such as special stock indicator, value/quantity update, movement indicator and consumption indicator (OMWN). In the standard it is active for GBB and some others; you can extend it, e.g. for price differences. It cannot be used for invoice verification transactions.

Example from the lesson: PRD with codes PRA (price difference at GI/other movements) and BSA can use separate debit/credit accounts; GBB with VBR and valuation class 3000 hits consumption account 51100000. The same movement type (e.g. 261) can get one code for withdrawals from own stock and another for consignment withdrawals, so consignment consumption lands in a separate cost element.

A GBB entry with blank valuation class is never used for goods movements; it serves only as the default account for account-assigned purchasing items without a valuation class (see Lesson 6).

Summary of influencing factors

Configuration (IMG)

Lesson 6 · Adjusting Account Determination for Special Cases

Default account in purchasing documents

When a requisition or PO item carries an account assignment (cost center K, order F, etc.), the system proposes a G/L account. It uses key GBB with the account grouping code of the account assignment category (e.g. VBR for K) plus a valuation class:

New account assignment categories can be given their own account grouping codes (except A asset and U unknown) to get different default accounts. Valuation classes for material groups are assigned under Purchasing › Material Master › Entry Aid for Items Without a Material Master. The parameter ID SAK is not supported for the G/L account field by default (a modification would be needed). In the G/L account master (FS00) you can store a default account assignment object such as a cost center.

Planned delivery costs

Freight, customs etc. known at PO time are entered as delivery-cost condition types (e.g. FRA1 percentage, FRB1 absolute, FRC1 per quantity). At GR they are posted to a separate clearing or provision account, which is cleared when the delivery-cost invoice arrives. The keys come not from the value string but from the account key in the calculation schema (pricing procedure), e.g. FR1 freight clearing, FR3 customs, ZB1 customs duty. New keys can be defined (Define Transaction/Event Keys) and then assigned in the schema and in OBYC.

Unplanned delivery costs

Costs first appearing on the invoice (e.g. packing) are entered in the invoice header in MIRO. Customizing decides per company code whether they are distributed among the invoice items (default) or posted to a separate G/L account via key UPF.

Tax accounts

FI assigns a tax calculation procedure to each country (e.g. TAXD). The procedure contains condition types with account keys, such as VST for input tax. Tax codes are maintained per country with reference to this procedure, giving the rate per condition type (FTXP). Tax G/L accounts are assigned per key, optionally dependent on the tax code, in OB40.

Configuration (IMG)

Lesson 7 · Adjusting Settings for Split Valuation

Key concepts

Split valuation lets you valuate partial stocks of one material differently inside one valuation area, e.g. by origin, procurement type (external vs. in-house) or quality, and post them to different accounts. Benefit: one material number. Cost: more effort, since every goods movement must specify the partial stock.

Each valuation type has its own account category reference, so the valuation class is chosen per valuation type, and account determination uses the valuation class of the valuation type, not of the header. Default valuation types can be set per category for purchasing and for production (proposed in POs/production orders). If the PO carries a valuation type, the GR must use it; if not, it must be entered at GR.

Locally (per valuation area) you may change only the default values for external/in-house procurement and the account category reference; you cannot create or exclude a valuation type for a single plant. Assigning a category to a plant automatically allows all its active valuation types.

The Determine valuation type automatically indicator on a category (standard X) creates a valuation record automatically at the first GR of a new type; this is meant for batch-specific valuation (each batch = valuation type). If batch management is independent of split valuation, do not set it; several batches can then share a valuation type (visible in the batch master).

Process flow (configuration)

System steps

1. Activate split valuation client-wide with OMWM (it does not force split valuation on any material).
2. Configure categories, types and local definitions with OMWC.
3. In MM01/MM02 enter the valuation category on the Accounting 1 view (price control V), then create the Accounting data for each valuation type.
4. In MIGO, specify the valuation type (or batch) for every movement.

Unit summary & exam focus

T-codes in this unit

Self-check questions

1. Which account in a supplier invoice posting is not found by MM automatic account determination?
   Answer

   The supplier (vendor) line: it uses the reconciliation account from the business partner's company-code data.
2. What must be true for G/L accounts to differ between two plants of the same company code?
   Answer

   Valuation level must be the plant, the valuation grouping code must be active, and the two plants must have different valuation grouping codes.
3. What object do you assign to a material type to control the permitted valuation classes?
   Answer

   The account category reference. One ACR per material type; each valuation class belongs to exactly one ACR.
4. Can you create your own value string for a new movement type?
   Answer

   No. Value strings are SAP-defined and fixed; a new movement type inherits the value string of the movement type it was copied from. You only assign accounts to the keys.
5. Why does BSX appear twice in value string WA14?
   Answer

   For a standard-price material posted into the previous period when the standard price changed, a second document revaluates the quantity in the current period (second BSX against UMB).
6. Which key, together with which code, determines the default G/L account for an item with account assignment category K?
   Answer

   GBB with the account grouping code of the account assignment category (standard VBR), plus the valuation class of the material or material group (or blank).
7. Where are transaction keys for planned delivery costs assigned?
   Answer

   In the calculation schema (pricing procedure) as account keys per condition type, e.g. FR1.
8. What price control is required at valuation-area level for a split-valuated material?
   Answer

   Moving average price V. Individual valuation types can use S or V.