MM-FI INTEGRATION

In the accounting view of Material master amongst other values we have a Valuation Class field. This Valuation class is the vital link which ensures that Accounting documents are posted automatically. Every material will have a valuation class field. Examples of Valuation Class could be Finished Goods,Semi Finished goods, Raw Material etc.In transaction MM03, type in the material number and click on accounting 1 view – here the valuation class will be displayed.All Material movements in MM happen with respect to a Movement Type.For egGoods receipt is defined with movement type - 101Goods issue to production order is defined with movement type – 261Scrapping of goods is defined with movement type – 551Goods delivered to the customer with movement type – 601Initial upload of stock is defined with movement type – 561The combination of valuation class and the movement type helps in determining the GL accounts.

FI - INTEGRATION WITH MATERIAL MANAGEMENTS

MM – ORGANISATIONAL STRUCTURE

Cross plant Purchasing Organization

Plant- Specific Purchase Organization

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Company Code - 1000 2000

Cross plant Purchasing Organization - 1000

ABCD - 1100 1200 1300

0001 0002 0002

Purchase Org

Plant

Company Code - 1000 2000

Plant Specific Purchasing Organiz - 1000

ABCD - 1100 1200 1300

0001 0002 0002

Purchase Org

Plant

MM-FI INTEGRATION

Cross Company Code Purchasing Organization

MM – MATERIAL MOVEMENT FLOWS

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Company Code - 1000 2000

Cross Company Code Purchase Organ - 1000

ABCD - 1100 1200 1300

0001 0002 0002

Purchase Org

Plant

MM-FI INTEGRATION

MM Flows

Raw-material Purchase enquiry → Purchase quotation → Purchase Order → GR - Goods Receipt (Raw-material) → IR - Invoice receipt → Goods (Raw-material) issue for Consumption to Production department → Goods (Finished) received from production department

MM journal entries

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Purchase Purchase OrderRequisition PRPR

Starts with Goods Receipts Invoice Receipts

GR / IR

GL, APUpdate

Invoice VerificationOutgoing Payment

MM

FI

FIFI

MM

MM

MM

ProcurementCycle

Quotation

Purch- Quotation Agreement

Purch Enquiry

MM-FI INTEGRATION

1- When Purchase enquiry

No FI entry

2- When Purchase quotation

No FI entry

3- When purchase order

No FI entry

4- When goods received

Inventory of Raw-material Account DrTo GR / IR Clearing Account

5- When invoice received

GR / IR Clearing Account DrTo Vendor Account

6- When Goods issued for consumption

Raw-material consumption account DrTo Inventory of Raw-material account

7- When Goods received form production

Inventory of finished goods account DrTo Increase / Decrease stock account

Movement Types

Specifying a key for the types of goods movements. Each goods movement is allocated to a movement type in this system. For each material movement the system determines the rules for updating stocks, qualities and the stock values in the relevant accounts.

Standard movement types

101 – Material receive against the purchase order / production102 – Reverse of 101 or Purchase order201 – Issue to cost centre202 – Reversal of 201261 – Issue to orders262 – Reversal of 261521 – Material received without production order

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MM-FI INTEGRATION

522 – Reversal of 521561 – When posting opening stock562 – Reversal of 561601 – When goods delivered602 – Reversal of 601

Transaction keys

These transaction keys are used to determine accounts or posting key for line items which are created automatically by the screen. These transaction keys are defined in this system and cannot be changed by the user.

BSX – Inventory postings (every inventory accounts we assign BSX key)WRX – For GR / IR AccountsPRD – Price difference accounts / production order differencesGBB – Offsetting entries for inventory posting

Offsetting entries for inventory posting

VBR – Raw-material Consumption accountVNG – ScrapingBSA – Opening stock takenAUF – Production receive against production orderZOF – Production receive without production orderVAY – Delivery where sales accounts is a reverse accountsAVA – Production order differenceVAX – Delivery where sales accounts not a revenue accounts

Valuation Classes

Valuation classes is nothing but sub-classify of the material 1- Raw-material

Local materialImported materialInter unit material

2- Stocks

Imported, Local

3- Finished Goods

Own goodsOther goods (Imported goods)

Valuation Area

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MM-FI INTEGRATION

Valuation area is nothing but Plant

Valuation grouping / Valuation modify / Valuation modification tools

It is nothing but combination of Company code + Plant + Chart of Accounts

Movements type

Similar to Accounts group is material type

ROH – Raw-MaterialFERT – Finished goodsFRSA – Storage and sparesVERP – Packing materialHAWA – Trade groupsDIEN – Services

MM Integration Steps

Define Plant (OX10)

Path: Spro → Img → Enterprise structure → Definition → Logistics – general → Define, Copy, Check plant

Double click on Define plantCheck on new entriesPlant – TAPL (Any code)Name – Plant in HyderabadFactory calendar – 01Click on address field Country – IN (Give complete address)Click on Save

Define, Copy, Delete, Check the Division (OVXB)

Path: Same

Double click on define divisionClick on new entriesDivision Name ST SteelPress enter key and SaveCome backNote: You can create any division like Marketing, Purchasing etc

Maintain Storage location (OX09) Path: Spro → Img → Enterprise structure → Definition → Material managements → Maintain storage location

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MM-FI INTEGRATION

Plant – TAPL (Tick mark)Click on new entriesStorage location Description HYD HydrabadPress enter key and SaveComeback wise

Maintain Purchase Organization (OX08)

Path: Same

Click on new entries

Purchase Organization Purchase Organization Description TAPO Raw-material Purchase organizationPress enter key and SaveCome back wise

Assign Plant to Company code (OX18)

Path: Spro → Img → Enterprise structure → Assignments → Logistics-general → Assign plant to company code

Click on new entries

Company code Plant TAST TAPLPress enter key and Save.Comeback wiseAssign Business area to Plant / Valuation area / Division (OMJ7)

Click on plant/ valuation area/ DivisionClick on new entriesPlant Division Business area TAPL ST TAHYPress enter key and SaveComeback three timesAssign Purchase organization to company code (OX01)

Path: Spro → Img → Enterprise structure → Assignments → Material managements → Assign purchase organization to company codeClick on positionPurchase organization – TAPO (tick mark)Company code – TASTPress enter key and SaveComeback wise

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MM-FI INTEGRATION

Assign Purchase organization to plant (OX17)

Path: Same

Click on new entriesPurchase organization Plant TAPO TAPLPress enter key and SaveCome back

Creation of Material Group (OMSF)

Path: Spro → Img → Logistics-general → Material masters → Settings for key fields → Define material group (OMSF)

Click on new entriesMaterial group Material group description CHM ChemicalsPress enter key and SaveComeback wiseNot: Just like you can create any number of groups

Creation of Purchase group (OME4)

Path: Spro → Img → Material managements → Purchasing → Create purchase group

Click on new entriesPurchasing group Description of purchasing group RAM Raw-material purchasing groupPress enter key and SaveCome back wise

Maintain Company code for material managements (OMSY)

Path: Spro → Img → Logistics-general → Material masters → Basic settings → Maintain company code for material managements

Click on positionCompany code – TASTYear Period ABP (Allow back date period) 2009 1 Tick markPress enter key and SaveNote: Here we can open two period at a time

Define Attributes of Material types (OMS2)

Path: Same as up to basic settings → Material types → Define attributes of material type

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MM-FI INTEGRATION

Click on position Material type – ROH (Tick mark)Now select ROH Material typeDouble click on Qualities/ values updating folderClick on positionValuation area – TAPL (Plant Code) (Tick mark)Quantity updating Value updating Tick mark Tick markPress enter key and SaveDouble click on material types folderClick on positionMaterial type – FERT (Tick mark)Select your material type – FERTDouble click on Quantities/ Value updating folderClick on position Valuation area – TAPL (Plant code) (Tick mark)Quantity updating Value updating Tick mark Tick markPress enter key and SaveCome back wiseNote: Just like you can give attribution for whatever material type you are using in the company

Set tolerance limit for Purchase order (OMEU)

Path: Spro → Img → Material managements → Purchasing → Purchase order → Set tolerance limit for price variance

Select PE, SE tolerance key from 0001 Company codeClick on copy as field (F9)Change the company code in to TASTPress enter key Again change the company code in to TASTPress enter key and Save.Come back wise.Set tolerance limit for Goods receipts (OMC0)

Path: Spro → Img → Material managements → Inventory managements and physical inventory → Goods receipts → Set tolerance limit

Select B1, B2, VP tolerance key from 0005 Company codeClick on copy as field (F9)Change the company code in to TASTPress enter key Again change the company code in to TASTPress enter keyAgain change the company code in to TASTPress enter key and Save.Come back wise.

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MM-FI INTEGRATION

Plant Parameters

Path: Same as up to Inventory managements and Physical inventory → Plant parameters

Select 1000 plantClick on copy as fieldChange the plant in to TAPL (Plant in Hyderabad)Press enter key and SaveComeback wise

Set tolerance limit for Invoice verification (OMR6)

Path: Spro → Img → Material Managements → Logistics invoice verification → Invoice block → Set tolerance limit

Select BD and ST Tolerance key from 0005 Company codeClick on copy as Change the company code in to TASTPress enter keyAgain change the company code to TASTPress enter key and SaveCome back wise

Define automatic status change (OMRV)

Path: Same as up to Logistics invoice verification → Invoice verification in background → Define automatic status change

Click on new entriesCompany code - TASTPress enter key and SaveComeback wise

Assign tax procedure to country (OBBG)

Path: Spro → IMg → Financial Accounting new → Financial accounting global settings → Tax on sales and Purchase → Basic settings → Assign country to calculation procedures

Click on PositionCountry – IN (Tick mark)Procedures – TAXPRO

Maintain default value for tax code (OMR2)

Path: Spro → Img → Material managements → Logistic-invoice verification → Incoming invoice → Maintain default value for tax code

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MM-FI INTEGRATION

Click on new entriesCompany code – TASTDefault domesticsTax code – Press enter key and SaveCome back wise

Note: If you have different tax code put tax code column nil so that while material purchase you can select any tax code otherwise you cannot change tax code according to the transaction

GL Account creation

Go to FS00 Create the following GL Accounts

1- Inventory of Raw-material account - Assets2- Inventory finished goods accounts – Assets3- GR / IR Account – Liabilities4- Increase or Decrease stock Accounts – Incomes5- Raw-material Consumption Account – Expenses

Go to FS00

1- GL Accounts – Inventory of Raw-material Accounts Company code – TASTClick on create fieldAccount group – AssetsSelect balance sheet accountsShort text – Inventory of Raw-material AccountLong text – Inventory of Raw-material AccountClick on control data tabSelect only balance in local currency Select line item displaySort key – 001Click on create/ bank / interest tabField status group – G006 (Material Accounting)Select post automaticallyPress enter key and Save.

2- Just like Create the Inventory of finished goods accounts

3- GL Accounts –GR / IR Accounts Company code – TASTClick on create fieldAccount group – LiabilitiesSelect balance sheet accountsShort text – GR / IR AccountLong text – GR / IR AccountClick on control data tab

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MM-FI INTEGRATION

Select only balance in local currency Select open item managementsSelect line item displayTax category - *Select posting without tax allowedSort key – 001Click on create/ bank / interest tabField status group – G045 (Goods / Invoice receive clearing)Press enter key and Save.

4- GL Accounts – Increase / decrease of stock Accounts Company code – TASTClick on create fieldAccount group – IncomesSelect profit and loss accountsShort text – Increase or decrease of stock AccountLong text – Increase or decrease of stock AccountClick on control data tabSelect line item displaySort key – 001Click on create/ bank / interest tabField status group – G030 (Chang in stock Account)Press enter key and Save.

5- GL Accounts – Raw-material consumption Accounts Company code – TASTClick on create fieldAccount group – ExpensesSelect profit and loss itemShort text – Raw-material consumption AccountsLong text – Raw-material consumption AccountsClick on control data tabSelect line item displaySort key – 001Click on create/ bank / interest tabField status group – G003 (Material consumption account)Press enter key and SaveUpdate this account to CO

Group together valuation area (OMWD)

Path: Spro → Img → Material managements → Valuation and account assignments → Account determination → Account determination without wizard → Group together valuation area

Click on positionValuation area – TAPL (Plant code) (Tick mark)Valuation grouping code – X (Any code)Press enter key and Save

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MM-FI INTEGRATION

Comeback wise.

Define valuation class (OMSK)

Path: Same

Click on valuation class tab3000 – Raw-material7920 – Finished GoodsCome back wise.

Configure automatic Postings (OMWB)

Path: Same

Click on cancel tabClick on account assignments tab

1- Double click on BSX Transaction key (Inventory posting)Chart of account – CHAC (Tick mark)Select valuation modifySelect valuation classClick on saveValuation modify Valuation class Accounts

X 3000 Inventory of Raw-material AccountsX 7920 Inventory of Finished goods accounts

Press enter key and save.Comeback wise

2- Double click on WRX transaction key (GR/IR Accounts)Select valuation modifySelect valuation classClick on saveValuation modify Valuation class Accounts

X 3000 GR / IR AccountsPress enter key and Save

3- Double click on GBB transaction key (Offsetting entries for inventory post)Select General modificationSelect Valuation modifySelect Valuation classClick on saveValuation modify General modify Valuation class Accounts

X VBR 3000 Raw-material consumption a/c X AUF 7920 Increase / Decrease stock a/cX ZOF 7920 Increase / Decrease stock a/cX VAY 7920 Increase / Decrease stock a/cX VAX 7920 Increase / Decrease stock a/c

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MM-FI INTEGRATION

Press enter key and SaveComeback three times

Documents types number ranges settings (OBA7)

1- WA - Goods issued 2- WE - Goods receive 3- RE - Invoice posting (Purchase)

Go to OBA7 for documents 1- Click on positionDocuments type – WA (Tick mark)Double click on WA Documents typeClick on number range info tabCompany code – TASTClick on change intervals tabClick on insert intervals tabNo Year From number To number 49 2009 500001 600000Press enter key and Save

Just like define number range for WE, RE documents type

Vendor master data creation (XK01)

Path: Sap easy access → Accounting → Financial accounting → Accounts payable → Master records → Maintain centrally → Create

Company code – TASTPurchase organization – TAPOPress enter keyFill address and Name fieldsPress three times enter key Reconciliation accounts – Sundry CreditorsSort key – 012Cash management – A1Press enter key Payment term - 0001Tolerance - TAMVPress three times enter keyOrder currency – INRTerms of Payments – 0001Select GR Based invoice verificationPress enter key and Save

Open Material periods (MMPV)

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MM-FI INTEGRATION

Path: Sap easy access → Logistics → Material managements → Material masters → Other → Close period

From Company code – TAST To Company code – TASTPeriod – 1 (Give current period)Fiscal year – 2009Press F8 for executeComeback wise

NoteBefore Creating a material Go to MMPV check which is the current open period activated in the system. If it is showing the previous period (suppose period 01 is activated) you cannot post any transaction in current period (Suppose current period is 05). In order to change this Go to MMPV Give the next Period 02 in the Period column and Select the Check and close period radio bottonand press F8 for execute. Come back againGive the next Period 03 in the Period column and Select the Check and close period radio bottonand press F8 for execute. Come back againGive the next Period 04 in the Period column and Select the Check and close period radio bottonand press F8 for execute. Come back againGive the next Period 05 in the Period column and Select the Check and close period radio bottonand press F8 for execute. Come back again

Material Creation (MM01)

Path: Sap easy access → Logistics → Material managements → Material masters → Material → Create (General) → Immediate

Material – MAT01 (Give your material name)Industry specter – MMaterial type – ROH - Raw-materialClick on select view(s) tabSelect Basic data1, Accounting, PurchasingClick on organizational level tabPlant – TAPLStorage location – HYDPress enter keyMaterial – Raw-materialBase unit of measures – KGMaterial group – STGross weight – 1000Weight unit – G (Grams)Net weight – 1000Click on Purchase tabPurchase group – RAMClick on Accounting tabValuation class – 3000Price control – VMoving price – 100

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MM-FI INTEGRATION

Press enter key and Save

Postings

Creation of purchase order (ME21N)

Path: Sap easy access → Logistics → Material managements → Purchasing → Purchase order → Create → Vendor / supplying plant known (ME21N)

Vendor – Vendor AccountDocuments date – 01-05-2009Click on header tabClick on Organizational tab Purchase organization – TAPOPurchase Group - RAMCompany code – TASTItem Material Po quantity Net price Currency Plant 01 (any) MAT01 100 100 INR TAPLPress enter key and SaveClick on SaveNote the purchase order number – 4500017134

When Goods received (MIGO)

When Goods received The FI entry will be

Inventory of Raw-material Account DrTo GR / IR Clearing Account

Path: Sap easy access → Logistics → Material managements → Inventory managements → Goods movements → Goods receipts → For purchase order → Purchase order number known

Purchase order – 4500017134Press enter key Click on Quantity tabQuantity in delivery note – 100Select Item OKClick on Where tabStorage location – HYDPress enter key and SaveNote the documents number – 5000011896

Go to FBL3N and check the concerned GL AccountsNote: The posting will be done like this

Inventory of Raw-material Account Dr – 10000 (100 * 100)To GR / IR Clearing Account - 10000

Display of Goods received documents (MB03)

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MM-FI INTEGRATION

Path: Sap easy access → Logistics → Material managements → Inventory managements → Material documents → Display

Material documents – 5000011896Year – 2009Press enter keyClick on Accounting documents tab

When invoice is received (MIRO)

The FI entry will be when invoice received

GR / IR Clearing Account DrTo Vendor Account

Path: Sap easy access → Logistics → Material managements → Logistics invoice verification → Documents entry → Enter invoice (MIRO)

Invoice date – 01-05-2009 Posing date – 01-05-2009Amount – 10000 Activate TaxSelect Tax key – A1Text – Invoice posting Purchasing order / scheduling agreem – 4500017134Press enter keyClick on Payments tabBase line date – Give current datePress enter key and Save

Go to FBL3N check the concerned GL

GR / IR Clearing account- 1000Vendors - 10441.2Input tax - 400Surcharge - 40Edu-cess - 1.2

Display of Invoice documents

Go to invoice documents on menu bar → DisplayClick on follow-on documents tab

When Raw-material send to Production Department for Processing (MB1A)

While sending Raw-material to production department for the processing the FI entry will beRaw-material consumption account Dr

To Inventory of Raw-material account

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MM-FI INTEGRATION

Path: Sap easy access → Logistics → Material Managements → Inventory managements → Goods movements → Goods issue

Documents date – Give Current datePosting date – Give current dateMovement type – 201 (Issued to cost centre)Plant – TAPLStorage location – HYPPress enter keyBusiness area – TAHYCost centre – Dep AMaterial Quantity MAT01 100Press enter key and SaveNote the documents number – 4900035012

Display of Goods issued documents

Go to goods issue in Menubar → Select displayMaterial Documents number – 4900035012Year – 2009Press enter key Click on Accounting documents tabDouble click on Accounting documents

Documents display

Go to Goods receipts in menu bar → DisplayPress enter key Click on Accounting documents tabDouble click on Accounting documentsCome back wise

Display of Material Ledger

Path: Sap easy access → Logistics → Material managements → Inventory managements → Environments → Stocks → Stocks for posting date

Material number – MAT01Company code – TASTPlant – TAPLPress F8 for executeCome back wise.

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