mm-fi integration sap mm-fi integration step by step notes
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MM-FI Integration
SAP mm-fi INTEGRATIONsTEP BY Step
Notes Ashraf
Corporate & Online Trainer
Material Management Concept: Material Management is one of the important module in SAP. These module supports the Procurement and Inventory Function occurring in day to day business operations. This module contains many aspects such as Purchasing, Good Receiving, Material Storage,
MM-FI Integration
Consumption based Planning and Inventory MM Module is tightly integrated with other modules of SAP R/3 like Financial Accounting, Controlling, Sales and Distribution, Quality Management, Plant Maintenance, Production Planning and Warehouse Management It supports all phases of Material Mgmt like Material Planning and Control, Purchasing, Good Receiving, Inventory Mgmt and Invoice verification
MM Organization Structure
Company Code
Plant 1 Plant 2 Plant 3 Plant 4
Storage Location
Purchase Groups
MM-FI Integration
Purchasing Organization: It is an MM Org unit, used to categories inventory transactions according to its nature. Multiple Plants can be assigned to one Purchasing Org. Plant: It is a physical location where the Production Activity and Procurement transactions are performed. In SAP Plant can be Production Unit, Sales Office or a Corporate Office. Note: All Inventory transactions must be Posted at Plant Level Automatic Posting of Inventory Valuation Transactions in Fin. Accounting depends on Assignment of Company Code to Plant This Assignment can be 1 : 1 or 1 : N ratio (Company Code Vs Plant) Note: One Plant Cannot be Assigned to Multiple Company Codes Storage Location: The Place where the Stock are kept. These Locations are maintained under Plant Importance Parameters of MM – FI Integration are Company Code and Plant Assignment Valuation Level Moment Type Material Master Transaction Keys or Event Keys Valuation Sting Valuation Grouping Code or Valuation Modifier Account Modifier or General Modifier Valuation Class Posting Keys Sub Module of MM Material Planning Purchasing Inventory Mgmt Vendor Valuation Invoice Verification Statutory Requirement Procurement To Payment ( P To P Cycle ) All Inventory Managed transaction are posted from MM Module and due to Integration settings, the valuation will hit Financial Accounting in the form of Journal Entries Purchase Requisition Purchase Order Goods Received → Inventory A/c Dr To GR/IR Clearing A/c Invoice Receipt → GR/IR Clearing A/c Dr To Vendor A/c Outgoing Payment → Vendor A/c Dr To Cash / Bank A/c Procurement of Goods or Assets or Services (Procurement Process P 2 P Cycle )
Goods Receipt Accounting Entry Invoice Verification Accounting Entry
Inventory Account Dr GR/IR Clearing A/c Dr
To GR/IR Clearing A/c To Vendor A/c
Vendor Payment Accounting Entry Material consumption against cost centers production order Accounting Entry
Vendor Account Dr Consumption A/c Dr
To Cash/Bank A/c Inventory A/c
MM-FI Integration
Finished Goods Received From Production Dept. Accounting Entry
Inventory Finished Goods A/c Dr
To Change in Stock A/c or
To Increase/Decrease A/c or
To Factory Production Output A/c
Delivering the Finished Goods To Customer Movement Type Goods movement in Logistic is tracked through movement type. This must be provided against each inventory transaction
List of Movement Type 101 - Good Received with Reference to Purchase Order 102 - Reversal of Movement Type 101 (Cancellation of Good Received) 122 - Return Delivery of the Supplier 201 - Goods Issued to Cost Center for Consumption 241 - Goods Issued to the Assets 261 - Goods Issued Against Production Order 309 - Transfer of Posting from Material to Material 311 - Transfer Posting from Storage Location to another Location 545 - Receipt of Product from Sub-Contractor 554 - Scrapping of Goods 561 - Initial Entry of Stock Balances (Opening Stock) 601 - Goods Issued for Delivery 651 - Good Return from Customer 701 - Inventory Differences Unrestricted Stock Note: Based on Movement Type system will control the transaction keys. Inventory GL Accounts are maintained against transaction keys Material Types: It is used to classify the materials based on material nature and attributes The Material Master must be created with ref. to material type Each Material Type Control No. Range of Material Master (Internal/External) Field Status of Material Master, Views, and Screens Settings It Controls Controlling and Accounting information List of Material Types: ROH - Raw Material FERT - Finished Goods VERP - Packing Material ERSA - Spare Parts DIEN - Services HALB - Semi Finished Goods PIPE - Pipe Line Products HAWA - Traded Goods Note: Against Material Type, we must maintain quantity update and value update (Material Type Attribute) for each Plant and Valuation Area. On setting of this indicator system will updates all quantity movements and value of material in a Material Master Material Master: It is Important Logistic Master Data and consists of all the imp or Key Properties relevant to other modules. It is maintained with multiple views relevant to MM, SD, PP, PM, WH, FI and CO It indicates Material Master is central component used for Integration between all others module
MM-FI Integration
Plant Or Valuation Area: Plant is Logistic Org unit which is used to track or maintain all inventory transactions All the stocks or Material Master must be maintained at Plant Level Each Plant must be assigned to a Company Code Valuation Area: Material can be valuated at Plant Level or at Company Code Level The Level at which the Materials are valuated into Financial Accounting is called as Valuation Area or Valuation Level Valuation Level at Company Code: The Material Price must be equal across all the Plants of a Company Code
Valuation At Plant Level Material Prices are maintained at Plant Level and Price can be differentiated
It is advisable to maintain material valuation at Plant Level Price Indicators: The Price indicators of Material Master Place a vital/imp Role in Material Valuation Below are Price Indicator available for Valuate inventory S- Standard Price V- Moving Average Price Standard Price: The nature of material prices which are Fixed or not Fluctuated frequently are managed with Price indicator ‘S’ and also the in-house manufacturing materials for which the Price is under control also managed with Standard Price The standard price is maintained in material master. All the material/goods movements must be evaluated with the standard price maintained in material master Any price difference will be posted to Price Difference Account
The Production Department produced 10 more quantity at 12/- Actual Cost. The material is valuated at Rs.10/- and difference of Rs.2/- will be posted to Price difference account or Production Variance Account List of Transaction Keys:- Moving Average Price: This indicator is maintained for materials for the Prices which are much fluctuated and not under the control of Organization.
Description Price Indicator
Standard Price Actual Price Quantity Value Difference
Material XYZ X 10 5 50
Material XYZ X 12 5 60 10
MM-FI Integration
Ex: - External Procured Materials, Services, Traded goods. System will always calculate a New Price at each Goods Movement Material Valuation is done at New Price
Transaction Keys: The inventory GL A/c are mapped to Transactions Keys with the Combination of Chart of Acc (COA), Valuation Grouping Code, Valuation Modifier or Account Modifier and Valuation Class
Based on the Valuation Sting of the movement type system will automatically hit the respective transaction keys. This code is used to maintain same GL Accounts across all the Plants or to differentiate inventory GL Accounts at Plant Level
COA Plant CoCd Val Grouping Code
1 10 T100 A
1 20 T100 A
1 30 T100 B – Different Chart of Account
The Valuation grouping code maintained with above combination COA, Plant, CoCd Valuation Grouping Code
Trans Key COA Valuation Group GL Accounts
BSX T100 A 200100
BSX T225 B - Error 200110
The Valuation Grouping Code maintained with above combination COA, Plant, CoCd, Val Grouping code Valuation Modifier or Account Modifier: This Valuation modifier or Account Modifier are used to differentiate Offsetting inventory GL Account. These modifiers are used along with Transaction Keys like GBB – (Offsetting Inventory Account) and PRD – (Price Differences)
Valuation Grouping Codes:
FR1 Freight Cleaning Account
FR2 Freight Provisions Account
GBB Offsetting Entry for Inventory Posting
KON Consignment Payable
PRD Cost (Price) Differences
UMB Gain/Loss From Inventory Revaluation
WRX GR/IR Clearing Account
MM-FI Integration
List of Account Modifier or General Modifier:
SL MODIF DESCRIPTION
1 AUF Production Receipt from Production Order with Account Assignment
2 AUA Production Receipt from Production Order without Account Assignment
3 BSA Initial Stock upload or Opening Stock Balances of Inventory
4 INV Expenses or Incomes form Inventory Differences
5 VAX Goods Deliver to Customer without Account Assignment
6 VAY Goods Deliver to Customer with Account Assignment
7 VBR Inventory Consumption
8 VNG Scrapping
Valuation Class: It is used to differentiate Inventory GL Accounts based on Material nature Valuation class is assigned to the material master under Accounting view. Note: The Valuation Class is maintained with reference to Material Type Material Master also created with Reference Material Type While assignment of Valuation Class to the material master, system validates material types of Material Master and valuation class. If any mismatch will cause error
Note: All Inventory and goods movements will be posted by logistic users with Movement Type The respective transactions keys area associated with movement type Against transaction keys inventory GL Accounts are maintained with the Combination of COA, Val Grouping Code, Account Modifier or General Modifier and Valuation Class
Trans Key Chart of Acc Val Grp code Account Modifier Gl Accounts Remarks
BSX 1 A 200100
GBB 1 A VBR 400000 Consumption
GBB 1 A VAX / VAY 400010 Delivery
GBB 1 A AUA / AUF 300200
GBB 1 A VNG 400020
SL GL Acc No Text
1 Finished Goods 220000
2 Semi Finished Goods 221200
3 Raw Material Inventory 221000
4 Packing Material Inventory 221100
5 Raw Material Consumption 400000
6 Cost of Goods Sold 400010
7 Factory Output Production 300200
Trans Chart of Acc
Val rp Code
Account Modifier
Valuation Inventory GL Account
Account Descript
BSX 1 A - 1000 221000 Raw Material
BSX 1 A - 2000 220000 Finished Goods
BSX 1 A - 3000 221200 Semi Finished Goods
GBB 1 A VBR 1000 400000 Raw Material Consumption
GBB 1 A VBR 3000 400001 SFG consumption
WRX 1 - - - 100900 GR/IR Clearing Acc
MM-FI Integration
Configuration Steps for MM – FI Integration
Steps Description T-Code Table Name
Define Plant OX10
SPRO > Enterprise structure > Definition > Logistic general > Define copy, delete check plant
Define Location
SPRO > Enterprise structure > Definition > Logistic general > Define Location
Define Division OVXB
SPRO > Enterprise structure > Definition > Logistic general >Define copy, Delete, check division
Maintain Storage Location OX09 VC_T001L
SPRO > Enterprise structure > Definition > materials management > Maintain storage location
Maintain Purchasing Organization OX08 V_T024E
SPRO > Enterprise structure > Definition > materials management > Maintain Purchase Organization
Assign Plant To Company Code OX18
SPRO > Enterprise structure > Assignment > logistics General > Assign plant to company code
Assign Business Area To Plant/valuation Area and Division OMJ7
SPRO > Enterprise structure > Assignment > logistics General > plant /valuation area–Division
Assign Purchasing Organization To Company Code OX01 V_T024E
SPRO > Enterprise structure > Assignment > Materials management > Assign purchasing organization to company code
Assign Purchasing Organization To Plant OX17 W_T024W
SPRO > Enterprise structure > Assignment > Materials management > Assign Purchase Organization to Plant
Create Purchasing Groups OME4 V_024
SPRO > Materials management > Purchasing > Create purchasing groups.
Define Material Group OMSF V023
SPRO > Logistic General > Material Master > Settings for Key Fields > Define Material groups
Maintain Company Code For Material Management OMSY V_001_MARV
SPRO > Logistic General > Material master - Basic settings > Maintain company code for materials management
Define Attributes Of Material Types OMS2 MTART
SPRO > Logistic General > Material master-Basic settings > Material type-Define attributes of material types
Set Tolerance Limits For Price Variance For Purchase Order OMEU VV_169G_PS
SPRO > Material management > Purchasing > Purchase Order > Set Tolerance Limits for Price Variance
Plant parameters 159L V_159L
SPRO > Materials management > Inventories management & Physical inventory > Plant parameters
Set Tolerance Limits for Goods Receipt OMC0 V_169G
SPRO > Materials management > Inventories Management and Physical Inventory > Goods Receipt - Set Tolerance Limits
Maintain Default Values For Tax Codes OMR2 V_169V_ST
MM-FI Integration
Steps Description T-Code Table Name
SPRO > Materials management > Logistics invoice verification > Incoming invoice> maintain default values for tax codes
Set Tolerance Units for Invoice Verification OMR6 V_169G
SPRO > Materials Management > Logistics Invoice Verification > Invoice Block > Set Tolerance Limits
Define Automatic Status Change OMRV V_169P_K
SPRO > Materials management > Logistics invoice Verification > Invoice verification in back ground > Define automatic status change
Group together valuation areas OMWD V_001K_K
SPRO > Material management > Valuation and account assignment > Account determination > Account determination without wizard > Define Valuation Classes
Define valuation classes OMSK V025
SPRO > Material management > Valuation and account assignment > Account determination > Account determination without wizard > Define Valuation Classes
Assignment of Accounts for Automatic Postings (MM to FI Integration ) OBYC T100BSX
SPRO > Material Management > Valuation and Account Assignment > Account Determination > Account Determination without wizard > Configure Automatic Postings
Creation of Raw Material Master MM01
Logistics > Materials management > Material master-material-Create(General) > Immediately
Document Types and No. Ranges OBA7
WE - Goods Receipt (FBN1) - No. Range 50
WA - Goods Issue (FBN1) - No. Range 49
RE - Goods Invoice Receipt (FBN1) - No. Range 51
To Open Material Periods MMP
Logistics > Materials management > Material Master > Other-Close period
Creation of Vendor Master KX01
Purchase order creation ME21N
Goods receipt MIGO
Logistics > Material management > Inventory management > Goods movement > Goods receipt - for purchase order > PO number known
View Accounting Document MIGO
View Relation Document
Environment > Doc Envir > Relationship Browser
To View GL Line Items FBL3N
To View Material Documents MB03
To View Stock Overview MMB3
Sap Menu > Logistic > Inv Management > Environment > Stock > Stock overview
To View Stock Register MB5B
Logistics > Materials management > Inventory management >Environment > Stock for posting date
Invoice Verification (Invoice Received) MIRO
Logistics > Materials management > Logistics-Invoice verification > Document entry-> Enter invoice
MM-FI Integration
Step 01 - Define Plants T-Code 0X10 Path: SPRO → Enterprise structure → Definition → Logistic general → Define copy, delete check plant → Double click on Define Plant → New Entries button
Plant T100
Name T100 - Tata Plant - Hyd
Factory calendar 01
Save
Country IN
Enter
Save
Step 02 - Define Location T-Code 0X10 Path: SPRO → Enterprise structure → Definition → Logistic general → Define Location → New Entries button
Plant T100
Name T100 - Tata Plant - Hyd
Factory calendar 01
Save
Country IN
Enter
Save
Step 03 - Define Division: T Code OVXB TSPA Path :SPRO → Enterprise structure → Definition → Logistic general →Define copy, Delete, check division → Define Division → New Entries button
Note : Division is organizational unit of SD, which is used to track sales or profits from Salable Materials or services Division are used to identity or track business area against logistic transactions Step 04 - Maintain Storage Location T Code OX09 – T001L Path :SPRO → Enterprise structure → Definition → Materials Management → Maintain Storage Location
Give the plant T100 Enter
Select New Entries
Sloc Description
T100 Raw Material
T101 Finished Goods
T102 Semi Finished Goods
T103 Packing Material
T104 Other Material
Save Step 05 - Maintain Purchasing Organization T Code OX08 – T024E Path :SPRO → Enterprise structure → Definition → Materials Management → Maintain Purchase Organization → New Entries button
Purchase organization Description
T100 T100-Hyd Pur Org
T101 T100-Bom Pur Org
Step 06 - Assign Plant To Company Code: T code is OX18 Path :SPRO → Enterprise structure → Assignment → logistics General → Assign plant to company code → New Entries button
CoCd Plant Name of the Plant Status
T100 T100 T100-Plant Hyd T100-Tata Company
T100 T101 T100-Plant Bom T100-Tata Company
Save
Division Name
T1 T100 – Tata Hyd Division
T2 T100 – Tata Bom Division
Save
MM-FI Integration
Step 07 - Assign Business Area To Plant/valuation Area and Division – T Code OMJ7 Path: SPRO → Enterprise Structure → Assignment → Logistics General → Plant /Valuation Area–Division → Select plant /valuation area – Division button → New Entries button
Plant Division Name BusA Description
T100 T1 T100-Hyd T101 T100-Hyd Bus Area
T101 T2 T100-Bom T102 T100-Bom Bus Area
Save Step 08 - Assign Purchasing Organization To Company Code T .Code OX01 – T024E Path : SPRO → Enterprise Structure → Assignment → Materials Management → Assign Purchasing Organization To Company Code → Position → Purchase org :T100
Porg Des CoCd Company Name Status
T100 T100-Hyd Pur Org T100 T100-Tata Company
T101 T00-Bom Pur Org T100 T100-Tata Company
Save
Step 09 – Assign Purchasing Organization To Plant: T Code OX17 – T024W Path : SPRO → Enterprise structure → Assignment → Materials management → Assign Purchase Organization to Plant → New Entries button
Porg Description Plant Name1 Status
T100 T100-Hyd Pur Org T100
T101 T00-Bom Pur Org T101
Save Step 10 - Create Purchasing Groups T .Code – OME4 Path : SPRO → Materials management → Purchasing → Create purchasing groups → New Entries
Purchasing group Desc Pur Grp TelNo Fax Tel
T10 T100-Pur-Hyd 123456689
T11 T100-Pur-Bom 654825325
Save
Step 11 - Define Material Groups: ( OMSF) Path : SPRO-Logistic General → Material Master → Settings for Key Fields → Define Material groups → New Entries button
Material group Material Group Desc AGrp Desc1 Desc2
T100FG T100-Finished Goods
T100HB T100-Semi Finished Goods
T100RH T100-Raw Material
T100VP T100-Packing Material
T101 Key Boards
T102 Mouses
T103 CPU Cabinet
T104 Monitors
Save
Step 12 - Company Code For Material Management : T Code OMSY Path :SPRO → Logistic General →Material master - Basic settings → Maintain company code for materials management → Select Position
Cocd Comp Name Year Per FYr MP FYr LM ABp DBp
T100 T100-Tata 2019 12 2019 11 2018 12 X
Note : This period enter carefully, if you once enter it is not modified Select check box Allow Back Period Posting Save Ignore the warning message press enter Note: In some cases, if we are unable to do changes for the period, delete the Plant (OX18) assignment and then you can do above step. Once done this step, reassign the plant to company code in OX18
MM-FI Integration
Step 13 - Define Attributes Of Material Types: T-Code OMS2 Path :SPRO → Logistic General → Material master-Basic settings → Material type → Define attributes of material types → Select position button
This step is use to Activate the Quantity value update in the material master against the accounting view Select Material Type ROH Double Click on Folder Quantity/Value Update and Select Qty Upd and Value Update check box → Position
Valuation Area T100
Material Type
Enter
Save Select Arrow Maintain the same settings for below material types
Select Material Type HALB – Semi Finished Good Products
Select Material Type FERT – Finished Products
Select Material Type VERP – Packing Material
Valuation Material Qty Upd Val Update Pipe Mand Pipe Allowd
T100 ROH X X
T100 VERP X X
T100 HALB X X
T100 FERT X X
Save Select Mtype :VERP
Click on to add Costing View to the Material Ledger
Select Costing (To Activate The View)
Save
Step 14 - Set Tolerance Limits For Price Variance For Purchase Order T-Code: OMEU (T. Code is not Working) Path: SPRO → Material management → Purchasing → Purchase Order → Set Tolerance Limits for Price Variance Select TIKY : PE & SE for company code 1000 Against CoCd 1000 → Select the Tolerance Keys PE & SE Copy As → and Change CoCd Press Enter → SE → Cash Discount → CoCd
Cocd Company Name TlKy Description
T100 T100-Tata PE Price Variance: Purchasing
T100 T100-Tata SE Max Cash Disc. Deduction(Purchasing)
MM-FI Integration
Save Note: System will cross check the Price Variances and Cash Discounts of Purchase Order to Purchase Requisition Error Message Generate in case of violation of Tolerances If you want to fix some Tolerance Limit to PE and SE
Select PE and Click on Detail Button
Cocd Company Name TlKy Description
T100 T100-Tata PE Price Variance: Purchasing
Select
Cocd Company Name TlKy Description
T100 T100-Tata PE Price Variance: Purchasing
Step 15 - Plant parameters: T Code 159L (Tr Not Working) Path: SPRO → Materials Management → Inventories management & Physical inventory → Plant parameters → New Entries → Plant : T100 and Select the values as per image down
Save
MM-FI Integration
Step 16 - Tolerance Limits for Goods Receipt T Code : OMC0 This step is used to check PO Price and Qty with Goods Received Quantities. Path: SPRO → Materials management → Inventories Management and Physical Inventory → Goods Receipt → Set Tolerance Limits Select tolerance key B1, B2, VP for company code 1000 Select copy as button and change to CoCd : T100
CoCd Company Name TlKey Deception
T100 Tata Company B1 Order Price Qty Variance (GR)/E-Msg
T100 Tata Company B2 Order Price Qty Variance (GR)/W-Msg
T100 Tata Company VP Moving Average Price Variance
Note : If you want to see the details inside this table values Select B1/B2/VP and Click on Details Button – It will give the default values, you can change accordingly Step 17 - Maintain Default Values For Tax Codes T Code OMR2 Path: SPRO → Materials Management → Logistics Invoice Verification-Incoming Invoice→ Maintain Default Values For Tax Codes → Select New Entries Button
Company code T100 Tata Company
Tax Code V0 (Exempted Input Tax)
Default Value Unplanned delivery costs
Tax Code V0 (Exempted Input Tax)
Save
Msg Default valued Unplanned Delivery Cost
Step 18 - Set Tolerance Units for Invoice Verification T.Code OMR6 – V_169G Path: SPRO → Materials Management → Logistics Invoice Verification → Invoice Block → Set Tolerance Limits Select tolerance key BD, PP, ST & VP for company code 1000 ➔ Click on Copy As and Change CoCd to : T100
Cocd Company Name TlKy Description
T100 T100-Tata Company BD Form small differences automatically
T100 T100-Tata Company PP Price variance
T100 T100-Tata Company ST Date variance (value x days)
T100 T100-Tata Company VP Moving average price variance
Save
MM-FI Integration
Step 19 - Define Automatic Status Change T.Code OMRV While Posting of Invoice Recd, system validates the status of the invoice in the background as verified as Correct or Completed. System automatically set the invoice status to complete if purchase order quantity is received and invoice was generated Path: SPRO → Materials management → Logistics invoice Verification → Invoice verification in back ground → Define automatic status change → New Entries
CoCd Company Name Corrections
T100 T100 – Tata Company X
Save
Save Step 20 - Group Together Valuation Areas: T-Code OMWD Path SPRO → Material Management → Valuation And Account Assignment → Account Determination → Account Determination Without Wizard → Group Together Valuation Areas → Position : T100
Val Area CoCd Company Name Chrts/Accts Val.Grpg Code
T100 T100 T100-Tata Company T100 T100
Save
Step 20 - Define Valuation Classes: T-Code OMSK – V025 Valuation class allows us to customize account determination according to a particular material. It is used for assignment of a material to a group of GL Accounts. This value class can be classified as 1. Material belongs to same type but accounting in different GL Accounts 2. Material belongs to different type but accounting may in single GL Accounts This is achieved by assigning different valuation classes in material master records on Accounting 1 tab Path SPRO → Material Management → Valuation And Account Assignment → Account Determination → Account Determination Without Wizard → Define Valuation Classes → D.Click on Account Category Reference → Select ARef 0001 / 0004 / 0008 / 0009 and Click Copy As Button and Change Accordingly
ARef Description
T100 Reference For Raw Materials
T101 Ref. For Finished Products
T102 Ref. For Semi-Finished Products
T103 Reference For Packaging
T104 Reference For Services
Save
Select Button Click on Material Type/Account Category Reference Click on Position : ROH
Save and Do for Other Materials like Below
Mtype Material Type Desc ARef Description
ROH Raw Material T100 Ref for Raw Material
FERT Finished Product T101 Ref for Finished Product
HALB Semi-Finished Product T102 Ref for Semi Finished Product
VERP Packing Material T103 Ref for Packing Material
Save Select Button
MM-FI Integration
Note: SAP Delivered Standard Valuation Classes Like Select Valuation Classes as per below details and Click on Copy As Button and Change Accordingly
3000 - Raw Material T100 – Raw Material
7920 - Finished Products T101 – Finished Goods
7900 - Semi Finished Products T102 – Semi Finished Goods
8520 - Packing Material T103 – Packing Material
3040 - Spare Parts T104 – Services
3100 - Trading Goods T105 – Trading Goods
Save
Select and Double Click on Valuation Class Button → New Entries
ValClass ARef Description Description
T100 T100 Reference For Raw Materials Reference For Raw Materials
T101 T101 Ref. For Finished Products Ref. For Finished Products
T102 T102 Ref. For Semi Finished Products Ref. For Semi Finished Products
T103 T103 Reference For Packaging Reference For Packaging
T104 T104 Reference For Services Reference For Services
Save
Step 21 – Define MRP Controllers – OMD0
The MRP controller is a person or a group of persons responsible for monitoring material availability. You can use the number entered here, for example, to select the planning results per MRP controller
Path: SPRO → Production → Material Requirement Planning → Master Data → Define MRP Controllers → New Entries
Save
Step 22 – Define Schedule Margin Keys – OPJZ
Path: SPRO → Production → Shop Floor Controls → Operations → Scheduling → Define Scheduling Margin Keys → → Select 0001/1000 and Click on Copy As Button and Change Accordingly
Plant Name Key Open Float After Float Before Release Period
T100 T100-Hyd Plant 000
T100 T100-Hyd Plant 001 10 1 2 5
Save
Step 23 - Account Determination : - Configure Automatic Postings Assignment of Accounts for Automatic Postings (MM to FI Integration ) (T Code is OBYC) We do configurations relevant to transactions in Inventory Management (for example, goods movements ) and in Invoice Verification (for example, invoice receipt for automatic postings to G/L accounts in Financial Accounting and Cost Accounting).
Plant Name 1 MRP Cont MRP Controller Name
T100 T100-Hyd Plant MRP T100-MRP Controller
MM-FI Integration
Path: SPRO → Material Management → Valuation and Account Assignment → Account Determination → Account Determination without wizard → Configure Automatic Postings - OMWB Note: System prompts Valuation Area screen, if we go through by path
Click on Cancel Button
Click on Account Assignment Button
Double Click on Transaction Key - BSX - Inventory Posting
Give Chart of Account - T100
Select Valuation Modifier Check Box - X
Select Valuation Class - X
Save
Enter the Following Values as stated below
Valuation Method
Valuation Class
GL Account
T100 T100 221000 – Raw Material
T100 T101 220000 – Finished Goods
T100 T102 221200 – Semi Finished Goods
T100 T103 221100 – Packing Material
T100 T104
Save
Note: If you don’t give Valuation Modifier then you will get above error as Account Determination for entry T100 BSX T100 ____ not possible Select Button
Double Click on Transaction Key WRX – GR/IR Clearing Account
Please Don’t Select any of the item
Save Posting Rules
Give Account Assignment as 120000 – GR/IR Clearing Acc
Save
Note : Same GR/IR Clearing Account can be used across all the materials Invoice Process in 3 Way Match: While processing of invoices system checks the invoice Quantity and Prices with PO and Good Received Qty
P.Order Quantity Price Total
PO 100 10 1000
1 Goods Received 90 Inv Recd 1000
2 Invoice Received 100 12 1200
In these case also Invoice Blocked for Payment If the match is successful then invoice can be paid if there is a difference, then invoice is blocked for payment
MM-FI Integration
Step 24 - Creation of GL masters FS00 GL Acc Number
Acct Group
GL Acc Name BS PL
Recn Acc
OB LC
LID
Sort Key
Field Stat
Tax Code
Open ITMg
Post Auto
120000 Liab GR/IR Clearing BS LIAB X X 001 G045 * X
400050 Exp Material Scrapping PL X 001 G006
100400 Liab Good Received But Invoice Not Received
BS Liab X X 001 G001 X
221000 Assets Raw Material Inventory BS Asset X X 001 G006 * X X
220000 Assets Finished Goods Invtry BS Asset X X 001 G006 * X X
221200 Assets Semi Finished Inventry BS Asset X X 001 G006 * X X
221100 Assets Packing Material Invent BS Asset X X 001 G006 * X X
221300 Assets Invoiced Received But Goods Not Received
BS Asset X X 001 G001
Step 25 - Document Types and No. Ranges (OBA7) WE :Goods Receipt (FBN1) No Range : 50 Interval : WA :Goods Issue No Range : 49 Interval : RE : Gross Invoice Receipt No Range : 51 Interval : Step 26 - To Open Material Periods: (T Code MMPV) Path : Logistics → Materials management → Material Master → Other-Close period
From company code T100
Give the period 12
Fiscal year 2019
Select check and close period radio button
Execute
Note : If you have given the period as 01 in Maintain Company Code for Material Management then you need to open and close all the 05 periods T.Code MMPV
From company code T100 T100 T100 T100 T100 T100 T100 T100 T100
Give the period 01 02 03 04 05 06 07 08 09
Fiscal year 2019 2019 2019 2019 2019 2019 2019 2019 2019
Select check and close period radio button
X X X X X X X X X
Execute
From company code T100 T100 T100
Give the period 10 11 12
Fiscal year 2019 2019 2019
Select check and close period radio button
X X X
Execute
No Year From To
50 2014 500000 50500
No Year From To
49 2014 490000 40500
No Year From To
51 2014 510000 51500
MM-FI Integration
Current Valuation in MM01: Step 27 - Creation of Raw Material Master T Code MM01 Path: Logistics → Materials Management → Material Master → Material → Create (General) → MM01-Immediately
Material <Automatic Number Assignment >
Industry sector Mechanical Engr (From List)
Material type Raw Material
Select Views Basic Data1,2, Purchasing, General Plant, Data/ Storage1/ Accounting1 / 2, Costing1 / MRP1 / MRP2 / MRP3
Press Enter OK Button
Select organization levels button
Give the plant T100
Storage location T100
Press Enter
General Basic Data 1
Give the description Monitors 19”
Basic unit of measurement PC
Material Group T100RH
Division T1 (Hyd Paint Division)
Dimension/EANs
Gross Weight
Weight Unit
Net Weight
Select Purchasing Tab
Purchasing group T10
Material Group T100RH (Raw Material)
Select Purchase Order Text
Give Text Purchase of Monitor 19"
Select MRP1 Tab
MRP Type PD ()
MRP Controller MRP
Lot Sixe EX - Lot-for-lot order quantity
Select MRP2 Tab
Proc Type F (External Procurement)
Plant Delivery Time 1 Day
Scheduling Key 000
Select MRP3 Tab
Period Indicator P Fiscal Year Variant : V3
Availability Check KP
Select MRP4 Tab
Selection Method
Individual/Coll 1 – Individual Reqmnt
Select Accounting One Tab
Valuation class T100 - Raw Material
Price control V (Moving Avg Price) Price Unit : 1
Moving price 5000 Standard Price :
Select Accounting Two Tab
Select Costing One Tab
Basic Unit of Measure PC
Select X X With Qty Structure X Material Margin
Profit Center 3000
MM-FI Integration
Costing Lot Size 1
Select Costing Two Tab
Save
Msg:- Material 60000010 Create Create More Materials by Same Process Msg:- Material 60000011 Create Step 28 – View Material List Path: Main Menu → Logistics → Material Management → Material Master → Other – MM60 – Material List
Material
Plant T100
Execute
Step 29 - Creation of Vendor Master T.Code XK01
Vendor
CoCd T100
Purchase Org T100
Acct Group T100 Press Enter
Title – Company Name AAA Enterprise
Country In
Region 01
Reconciliation Account 100700 (Domestic Payable)
Click 4 Times Next Screen
Sort Key 001
Click Next Screen
Payment Term 0001
Credit Memo Term 0001
Check Double Invoice – X
Under Purchasing Data
Order Currency – INR Term of Payment – 0001
Control Data
Select Check Box X GR-Based Invoice Verification
Save
MM-FI Integration
Step 30 - Purchase order creation T.Code ME21N Path : Logistics → Material management → Purchasing → Purchase Order-Create → ME21N - Vendor/supplying Plant Known
Vendor 1502
Purchase Group T10
Company Code T100
Standard PO Vendor 1512 Doc. Date 04.03.2020
Item Material Text PO Qty
OUn C Del Date Net Price
Curr Per OPU Matl Group
Plant Stor Loc
60000010 Monitors 19”
10 PC D 04.03.2020 5,300 INR 1 PC Raw Mat
T100 T100
Save
Click on Check – No message issued during check → Save
Step 31 - Goods Receipt Against Purchase Order : T.Code MIGO Path: Logistics → Material Management → Inventory Management → Goods Movement → Goods Receipt → For Purchase Order → MIGO_GR - GR for Purchase Order (MIGO) or /N MIGO
Goods Received Purchase Order 4500022396 Plant T100 Execute
The details of Purchase Order Copied to goods receipt transactions based on Copy Control Settings maintained by MM Consultant Against Material Linen item Select “OK” button check Box and also click on Detail Data Select “Where” Tab Movement Type 101 Unrestricted stock type means the material Purchase can be used or Consumed against transfer Cost Centers, Sales Order Or Production Orders etc.
Click on - Check Button Msg - Document OK Click on Post Button
Once the Document are posted Note the Material Document no
MM-FI Integration
Step 32 - View Accounting Document – MIGO From The Above Screen
Click on Display Material Document 5000001340 2020 Click Execute
The System will show the flowing screen
Click on Doc Info – Button Then Click on - FI Document Button
Note : In this view we are unable to see the purchasing document no. In such a case, you need to make changes in layout scree. Select Screen Layout and Add Purchasing Document to the left side and Save. Now the system will display Purchasing Document Ref Number as below
The Profit Center is extracted from Material Master and Business area is extracted from Division and Plant Step 33 - View Relation Document – FB03 /N FB03
Document Number 50003
Company Code T100
Fiscal Year 2019
Enter
From Menu Environment → Doc Envir → Relationship Browser
Accounting Doc 500000 – Select and Click on Display Button
Material Doc 50003 – Select and Click on Display Button
MM-FI Integration
Step 34: To View GL Line Items FBL3N
G/L Account 221000
Company Code T100
Select Open Item
Click on Execute
Step 35: To View Material Documents – MB03
Material Doc No 500001340
Mat Doc Year 2020
Press Enter
Step 36: To View Stock Overview MMBE Sap Menu → Logistic → Material Management → Inventory Management → Environment → Stock → MMBE – Stock Overview
Material 60000010
Plant T100
Storage Location T100
Execute
Note In Case of Error Error Msg: No Material Found or Activated
Goto MM02
Select Views Plant and Storage Location
Click Org. Level
Give Plant T100
Storage Location T100 Enter
→ Material → Change → Activate This will activate the material list Step 37: To View Stock Ledger MB5B Path : Logistics → Materials management → Inventory management → Environment → Stock → MB5B – Stock for Posting Date
Material Number 60000010 To
Company Code T100 To
Plant T100
Storage Location T100
MM-FI Integration
Step 38: Invoice Received Against Purchase Order (Transaction code is MIRO) Path: Logistics → Materials Management → Logistics-Invoice Verification → Document Entry → MIRO-Enter Invoice
Transaction Invoice
Diff. Posting
Tab Basic Data
Invoice Date 04.03.2020
Posting Date 04.03.2020
Amount 53,000
Text Invoice Received
Down : Select Tab PO Reference
Item Amount Qty Ord Status
Status Purchase Order
Item PO Text
1 53000 10 PC OK 104500022396 10 Monitor 19”
Select Tab: Payment
Payt Term 0001
Payment Method A
House Bank 2000 / Acc-2
Similarly Give Other Details- If Required in Tab – Details / Tax / Contracts / Note etc → Click on Document Simulate Button → Check and Post → Msg : Document no. 5105609472 Created Note: In Case of Error for Tax Code as we have not given here, we are not getting any error. In future if we use Tax Code such as V1 → Goto OB40 : Select VST Transaction
Chart of Accounts T100
Save
Select Accounts
Assign GL Account 400501 as Tax on Purchase/Sales Account
Save
Repeat the Same Process For Invoice Recd for Qty 50 Msg: Document No. 5105609473 Created Step 39: To View Accounting Document Menu → Invoice Document → Display → Follow Documents
Note: Here I am getting 2 Debits line item, because I have received items in two times. Step 40: Updating Initial Balances Path: Logistics → Materials Management → Inventory Management → Goods Movement → Goods Received → MB1C – Other
Document Date 04.03.2020 Posting Date 04.03.2020
Material Slip
Defaults for Document Items
Movement Type 561 Special Stock
Plant T100 Reason for Movement
MM-FI Integration
Storage Location T100
GR/GI Slip
X Indiv.Slip w.Inspect.Text Press Enter
Item Material Qty UnE Sloc Plant
01 50065565 10 EA T100 T100
02 50065576 10 PC T100 T100
03 60000000 10 KG T100 T100
04 60000001 10 PC T100 T100
05 60000000 10 KG T100 T100
06 60000011 10 EA T100 T100
07 60000300 10 EA T100 T100
Save Msg: Document 4900004120 Posted
Click on Accounting Document Button Click on From Menu – Document → Print Preview
GR/IR Clearing Account: This Account is a Temporary or Clearing GL Account used to identify GR & IR transactions against Purchase Order During GR/IR system will Post Transactions to GR/IR Clearing Account 1. To identify any mismatch of Qty and Prices between GR and Invoice Received 2. To meet Fin. Reporting (Periodically) of Goods Received But Not Yet Invoiced and Invoiced But Not Yet Goods Received. By Classifying the values of GR & IR – Clearing Account Step 41 - Testing of GR/IR - Reclassification During month end to meet Financial Reporting Business must execute GR/IR Reclassification transactions. Note: For Reclassification, we must use GR/IR Adjustment Account without Disturbing GR/IR Clearing Account During Reclassification System copies items of GR/IR – Clearing Account to GR/IR Clearing Adj Account and then Reclassifies. The Reclassification must be reversed in the following month
MM-FI Integration
Step 42 - Maintain Automatic Account GR/IR – Classification Account - FBKP SPRO → Img → FA (N) → AR/AP → Bus Transaction → Posting with Alternative Reconciliation Account → Other Special G/L Transactions → Define Alternative Reconciliation Account for Customers → Select Automatic Posting ➔ D. Click on Goods/Issue Recd Clearing
D .Click on BNG Invoiced But Not Yet Delivered
Give Chart of Accounts T100
Give the Accounts as per below details
Recon Acc Adjustment Target Acct
120000 120010 221300
Save
GO Back
D .Click on GNB Goods Delivered But Not Yet Invoiced
Give Chart of Accounts T100
Give the Accounts as per below details
Recon Acc Adjustment Target Acct
120000 120010 100400
Testing Of Complete Cycle Step 01 - Create a New Purchase Order – ME21N
Create One More Purchase Order
MM-FI Integration
Step 02 - Recording of Goods Received – MIGO
Step 03 – Invoice Received – MIRO4
Step 04 – To View GL Balances – FBL3N
GL Account 120000
Company Code T100
Select Open Items
Execute
MM-FI Integration
Step 43 - Setup Auto Clearing Account Of Line Items – F.13 As per periodic activity Business Users must execute Auto Clearing Transactions against GL Accounts. Customers and Vendors to Set Off or Knock Off Debit with Credits, which are matching with Assignment Filed and Open Item Status set to Clear Status Path – Accounting → F A → GL → Periodic Processing → Automatic Clearing → F.13 Without Specification of Clearing Currency
CoCd T100
Fiscal Year 2019
X – Select G/L Accounts GL A/c – 120000
X – GR/IR Accounts Special Process
X – Test Run
Execute
Auto Clearing Status Updated Will Appear
Go Back and Remove X – Test Run
Execute Again
Error Msg – This program run is a Production Run Just Press Enter
Msg Document No 1019 Posted
Step 44 – View Clearing Document – FB03
Document No 1019 Company Code T100 Press Enter
MM-FI Integration
Note: If we have not received the any invoice, then that line item will be shown under Open Line Items Step 45 – Analyze or Reclassify GR/IR Account Path – Accounting → F A → GL → Periodic Processing → Closing → Reclassify → GR/IR Clearing → F.19 – GR/IR Clearing
GL Account 120000
CoCd T100
X GR/IR Clearing
Execute
Click on Postings Button
It is used to bypass
40 120010 GR/IR – Adjustment Account 265,000
50 100400 Good Recd But Inv Not Recd 265,000
It will appear In Balance Sheet
Liabilities Amount Assets Amount
Goods Recd But Inv Not Recd 26,000 Raw Materials 26,000 Account Assignment Category: It is used to bypass inventory GL Account with other GL Accounts and Cost objects necessary for an item Ex. Purchase of Stationary through Purchase Order without material master Purchase of Material used against Fixed Asset, Production Order Projects etc. on using of Account Assignment category System Post to the respective GL Accounts and Cost objects instead of hitting to inventory accounts. Note: When ever you Assign Account Assign Category → It will not hit to BSX inventory Testing Scenario - Purchase of Stationary through Purchase Order Step 01 – Create Purchase Order - ME21N
Vendor 1502
Purchase Group T10
Company Code T100
Standard PO Vendor 1512 Doc. Date 04.03.2020
Acct Asst
Material Text PO Qty
OUn
C Del Date Net Price
Curr Per OPU Matl Group
Plant Stor Loc
K Stationary 500 EA D 04.03.2020 5 INR 1 PC T100FG T100 T100
CCtr
From Down - Click on Account Assignment Tab
GL Account 421001 - Stationary Business Area T101
CO Area T100
Cost Center 2100 Profit Center 3000
Save Msg: Standard PO Created under the number 4500022399 Step 02 - Goods Received – MIGO
Good Receipt Purchase Order
4500022399 Plant T100 FR GR goods Receipt
101
Press Enter
Go Down TO The Page
MM-FI Integration
Select X - Item OK
Check
Post
Msg Material Document 5000001350 Posted
Select
Display Material Document 5000001350 2020 Click Execute
Click on Doc Info
Click on FI Document
Select Accounting Document
Go Back and Click on Controlling Document
Step 03 – Invoice Received – MIRO
Go Back and Change the Amount to Rs.2600
Select Data Tab Amount 2600
Select Detail Tab Unpl Del. Csts 100
Simulate
Post: Document No.5105609484 Created .
MM-FI Integration
View Document From Menu → Invoice Document → Display → Follow-On Documents → Select Accounting Document
Note : When invoice is receiving with difference of account, adjust the amount in Unplanned Delivery Cost