Configuring Automatic Account Determination

1. Configuring Automatic Account Determination

2. What is Automatic Account Determination? • There are many FI transactions that are posted automatically • Goods receipt • Goods withdrawal (issue) • Variances (production / etc…) • Account determination is configured via the IMG

3. Valuation Control • To perform automatic posting, valuation control must be enabled from the IMG • Materials Management Valuation and Account Assignment Account Determination Account Determination without Wizard Define Valuation Control

4. Valuation Grouping Code

5. Valuation Class • It’s the assignment of a material to a group of G / L accounts • It’s used to determine which accounts are updated for a particular type of transaction (goods movement for example) • Prerequisites • Material types must have been defined • COA must be created

6. Managing Valuation Classes • It’s a three-step process • Create account category references, if necessary • Create valuation classes and assign them to account categories • Assign account category to material type

7. Managing Valuation Classes

8. Managing Valuation Classes • Account categories exist for reference • We always create a valuation class by referencing an account category

9. Managing Valuation Classes • Create valuation classes and assign them to account groups

10. Managing Valuation Classes • Assign material types to account categories

11. Automatic Account Determination (1) • It’s a stepwise hierarchical process that the systems figures out how to automatically post a transaction to a GL account

12. Automatic Account Determination (2) • By company code COA • Automatic account determination must be defined individually for each chart of accounts • The systems determines the COA based on the company code or plant • By valuation grouping code or valuation area • Use to apply different valuation rules to different company codes • By transaction key (these are predefined)

13. Automatic Account Determination (3) • By account group • We will not get into this • By valuation class

14. Account Determination (Implementing) • Create a valuation grouping code and assign it to a company and valuation area • Establish automatic postings

15. Configure Automatic Postings (1) • Accounts are organized by transaction types • Always based on a COA

16. Configure Automatic Postings (2) • Associate a valuation class (and group) with a G / L account

17. Configure Automatic Postings

18. What’s happening here? • BSX (Inventory Posting) contained the inventory valuation classes and the inventory (asset) account • GBB contains the corresponding expense accounts for the offsetting entry • WRX goods receipt

19. Transaction Keys • These are different than a transaction code and determine what is “happening” to the material • Received from vendor • Goods issued from warehouse • There are hundreds of these

20. Configure Cost / Price Difference • These are the price variance expense / revenue accounts

21. The GR / IR Account • It’s Transaction Key WRX • Set the GR / IR account to the • Raw materials • Semi-finished goods • And finished goods valuation classes

22. Price Changes • Telling the system whether a price change in the previous period should be “carried over” to the current period • Set for the entire company code

23. Tax Defaults for Invoice Verification