Automatic account determination:

 The SAP system determines the G/L account based on the following data:
● Organizational level
● Material or material type
● Business transaction

1. Organizational Level (i.e. Valuation area):

The system determines the following details from this specification:

● The company code to which the plant belongs and the chart of accounts for this company
code
● The valuation area to which the plant is assigned and a key that can be used for
differentiated account number assignment per valuation area

2. Material or Material type:

The system determines the following details from this specification:

● The material type of the material and the indicators showing whether quantity-based
and/or value-based updates have been defined for it
 We can define separate set of G/L accounts for each material type.
 ● The valuation class of the material, which you enter in the accounting data of the material
master record and which is responsible for determining respective G/L account.

3. Business Transaction :

Among other things, the system determines the following details from this data:
● The specifications for posting to FI accounts
● The specifications for updating stock and value fields in the material master record

 The following factors influence the choice of G/L:

1. Chart of accounts
You must set up the account determination process separately for each chart of accounts.

2. Valuation area
You can set up account determination for transactions (such as consumption postings)
dependent on the valuation area.

3. Valuation type
If you use split valuation for individual materials, you can also set up account
determination, depending on the valuation type.

 Valuation Grouping Code:

You can assign G/L accounts for automatic account determination, depending on the valuation area.
To minimize the effort involved in account determination, you can group the valuation areas with
the same G/L account number assignment. The grouping is done using a valuation grouping code.
This key is used to assign G/L account numbers.

By activating or deactivating valuation grouping codes, you can enable or disable the dependency of
account determination on the valuation area. If the valuation grouping code is activated, a code
must be assigned to each valuation area.

 If the valuation area is at plant level, the following options are available. (System behaves same
if valuation area is Company code)

● Deactivate the valuation grouping code:

The system treats the four plants (1000, 2000, 2100, and 2110) that use the same chart of
accounts, INT, identically in terms of account assignment.

● Activate the valuation grouping code:

Assign a valuation grouping code to all plants (1000, 2000, 2100, 2110, and 3000). Plants that
must be treated identically in terms of account assignment must have the same valuation
grouping code.

● If you use different valuation grouping codes for plants of the same chart of accounts, you
can assign different G/L accounts for the same business processes in these plants.
  Material Type and Account Determination
If the company has, for example, raw materials and trading goods as material types, you can post their
materials to different stock accounts at the time of goods receipt. Even if the material type is the same,
the posting can be made to different stock accounts, based on whether the materials are manufactured
or purchased.
 Grouping of Materials
You can set up a uniform account determination for all materials of a certain material type or even for
several material types (option 1). You can also specify that different G/L accounts are to be determined
for different materials of the same material type (option 3). Alternatively, you can group several material
types together and define the same G/L accounts for all materials within this group (option 2). Option 2
and 3 can also be mixed so that you can post the materials of a group to different G/L accounts.
  Valuation Classes
The system uses a valuation class to determine account assignment based on the material.
The valuation class is a key that the system uses to group together materials with the same account
determination.

 Grouping of Valuation Classes

 Material Type and Account Category Reference

As a result of this assignment, the same valuation classes for these material types are available.

 Material Type and Valuation Class

It is mandatory to assign each material type for which quantity-based and value-based Inventory
Management has been defined, to an account category reference.
 The permissible valuation classes depend on the material type. The system allows several
valuation classes for a certain material type.
Conversely, the system allows several material types for a certain valuation class.
  You can establish the relationship between valuation classes and material types with the aid
of the account category reference.

Realization: Example with Materials of the Same Material Type

The example in the figure illustrates the effects of allowing various valuation classes within one material
type on account determination. Different accounts are found for MAT1 and MAT2, although both
materials belong to the same material type, ROH (raw material).
That means that MAT1 and MAT2 must have different valuation classes.
Realization: Example with Materials of Different Material Types

In the example in the figure, there are two materials with different material types. The associated
accounts are different because different valuation classes are assigned to the two materials. Different
account category references are assigned to raw materials and spare parts, which also means that you
cannot use the same valuation class for both materials.

 Account Determination Wizard

The account determination wizard helps you to understand the sequence of Customizing settings for
account determination. If you work with the wizard, you can specify the system settings for automatic
account determination by answering a series of questions. You can call up further information for
recommendations and hints. Depending on your answers to the questions, the system accesses the
relevant Customizing tables.
  Value String

The system uses generalized posting records in a value string (posting rule) for each relevant movement
type in inventory management and each transaction in invoice verification. Instead of specific G/L
account numbers, this value string contains the keys for the relevant posting transactions (for example,
BSX for stock posting and PRD for price difference posting).

 Determination of the Value String for Goods Movements

You can see the assignments of value strings to goods movements and the breakdown of the value
strings into transaction event keys in Customizing for Inventory Management and Physical Inventory,
but you cannot change them.
You must assign the relevant G/L accounts to the corresponding posting transactions in Customizing for
valuation and account assignment.

The system automatically identifies the value string assigned to a specific transaction, depending on the
parameters you enter manually and parameters derived internally by the system.
The value string contains the maximum possible posting transactions for a transaction. For each
transaction, the program identifies which posting transactions lead to G/L postings.

Value Strings Example - WE01

The standard system assigns value string WE01 to GRs for standard POs (and corresponding reversals
and return deliveries) to items that have no account assignment. These GRs are of the category standard
or subcontracting for valuated material into the warehouse

Cases for Value Strings Example - WA14

The following are possible cases for value string WA14:
1. Free delivery of a material with price control V
The system does not generate an accounting document because it valuates the receipt at zero. The
system generates a material document, which leads to an increase in stock.
2. Free delivery of a material with price control S (and if the posting date lies in the previous period,
standard price in the posting period = standard price in the current period)
The system generates an accounting document containing a stock posting for the receipt at
standard price (transaction BSX) and a posting to a revenue account for price differences
(transaction PRD).
3. Free delivery of a material with price control S and a posting date in the previous period, where the
standard price differs from the standard price in the current period
The system generates accounting documents for the previous and current periods (adjustment
posting). Key BSX occurs twice because these accounting documents have the same stock posting
(transaction/event key BSX).
The accounting document for the previous period contains the receipt to the stock account at the
standard price of the previous period (transaction BSX) and the price difference posting (transaction
PRD) with the same amount.
 The accounting document of the current period is based on the variance between the standard
prices of the previous and current periods. The system carries out a price change for the quantity
posted retrospectively to the previous period. This accounting document (posting date = first day of
the current period) contains the stock adjustment posting (second transaction BSX) and a posting to
a Gain/Loss from revaluation account (transaction UMB).
Rules for Transaction keys can be defined at Chart of account level only.

 Simulation of Account Assignment

The simulation considers materials, valuation classes, plants and transactions in inventory management
or invoice verification.
You can choose between the following options:

 Input of material number or valuation class (input mode)

 Transaction in inventory management or invoice verification (application area)
When you call the simulation function, the system can check whether the accounts you have assigned
exist in the chart of accounts.
During the simulation, all transaction/event keys for the relevant value string are taken into account,
regardless of their significance to your company code (for example, EIN, EKG, and FRE).
Within the simulation for inventory management transactions, you can compare the settings for field
selection for the movement type you select and the assigned accounts (report RM07CUFA).

Account Grouping Code (AG Column)

Key for account determination that enables a differentiation for G/L account assignment for the offsetting
posting to the stock posting (transaction GBB), and possible further transactions.

 Depending on the movement type and special stock indicator, you can assign an account grouping (any
account grouping) for individual transactions, such as GBB and PRD.
An account grouping code enables you to assign G/L accounts by the transaction/ event key in account
determination. You can assign G/L accounts to individual transactions depending on the movement type
of a goods movement.
In the standard system, the account grouping code is active only for a few transactions/event keys such
as GBB (offsetting entry for inventory posting). However, you can also use account grouping for other
transactions in your company (for instance, for price differences).
For goods movements, you can assign the account grouping code to the posting transaction Offsetting
Entry for Inventory Posting, depending on the movement type and other indicators.

Assignment of G/L Accounts for Transaction GBB

The system does not use any entry with blank valuation class (fourth line in the table) for goods
movements. It uses this blank valuation class entry only as a default account for items with account
assignment in purchasing documents.

 Default Accounts According to Material Groups

The system uses the transaction/event key, GBB, and the account grouping code (account modification)
of the account assignment category to determine the default account.
In the case of items with account assignment in combination with a material master record, the system
uses the valuation class from the accounting view of the material master.

If the material master record does not contain a valuation class (for example, as is the case with
material type NLAG), the system uses the ‘ ‘ ( blank) valuation class.

In the case of items with account assignment without a material master record, the system uses the
valuation class of the material group or the ‘ ‘ ( blank) valuation class.

You can suggest an account for procurements without a material master, depending on the material
group. The system identifies the accounts by using the valuation class of the material group.
  Determination of Accounts for Delivery Costs
The transaction/event keys (account keys) for delivery cost postings come from the calculation schema
for purchasing and not from the value string. If required, you can define further account keys for new
condition types in Customizing for price determination and use them for additional clearing or provision
accounts.

 Determination of Accounts for Unplanned Delivery Costs

In Customizing for logistics invoice verification, you can define how these costs are to be handled. By
default, the costs are distributed among the invoice items.
However, you can define that the unplanned delivery costs are posted to a special G/L account. In this
case, you must assign a G/L account for transaction UPF in the account determination table.
In Customizing, go toMaterials Management → Logistics Invoice Verification → Incoming
Invoice → Configure How Unplanned Delivery Costs Are Posted.

 Tax Accounts and Other Transactions in Invoice Verification

In Customizing for Financial Accounting, a tax determination procedure is assigned to the country in
which your company code is located. This procedure provides various condition types for calculating the
tax amounts and transaction keys for tax accounts.
Example of a Tax Determination Procedure

Modifiers for GBB

For the transaction/event GBB (offsetting entry for inventory posting), the following account groupings have already
been assigned to the relevant movement types:

 AUF: for goods receipts for production orders with account assignment
 BSA: for initial entries of stock balances
 INV: for expense/revenue from inventory differences
 VAX: for goods issues for sales orders without account assignment object
 VAY: for goods issues for sales orders with account assignment object
 VBO: for consumption from stock of material provided to vendor
 VBR: for internal goods issues (e.g., for cost center)
 VKA: for consumption for sales order without SD
 VNG: for scrapping/destruction
 VQP: for sampling
 ZOB: for goods receipts without purchase orders
 ZOF: for goods receipts without production orders

Modifiers for PRD

If you also activate account grouping for transaction/event PRD (price differences) when you make the settings for
automatic postings, the following account groupings are already assigned to the relevant movement types in the
standard:

 none for goods receipts and invoice receipts for purchase orders
 PRF: for goods receipts for production orders
 PRA: for goods issues and other goods movements

Modifiers for KON

If you also activate account grouping for transaction/event KON (consignment liabilities) when you make the settings
for automatic postings, the following account groupings are already assigned to the relevant movement types in the
standard:
 none for consignment liabilities
 PIP: for pipeline liabilities