What is Automatic Account Determination?

Where is Automatic Account Determination Used?

Usage of Automatic Account Determination.

Influencing Factors Determine the Accounts of the Accounting Document.

Valuation Area.

Automatic postings as function of Valuation Area. Valuation level is the plant. G/L accounts on a plant-
dependent basis.

Material.

Automatic postings as a function of the material and the relevant material type for which the
transaction is recorded. BSX GBB

Business Process.

Automatic postings dependent on the specific transaction or event that leads to an update in the
accounting system. BSX/WRX; BSX/UMB; BSX/GBB stock account, expense account

Movement Type

When you record various goods movements in the SAP System, you stipulate which business process
you wish to post by specifying the movement type (MvT).

Determination of G/L accounts.

Organizational Level.2.( Chart of Accounts, Valuation Grouping Code)

Material.2.( quantity- and/or value-based updating, valuation class)
Business Transaction. - Movement type - differentiation between the various goods movements.

Movement type symbolizes the concrete business transaction.

The specifications for postings to accounts in FI (for example, stock accounts, consumption accounts) ñ
the posting rule (also known as the value string)

The specifications for updating stock and value fields in the material master record .

Influence of Company Code and Valuation Area.

Levels for Account Determination.
 Chart of Accounts. - account determination process separately
 Valuation Area.- account determination for individual transactions
Valuation type - split valuation account determination dependent on the movement type.
 The assignment of G/L account numbers (account determination) always depends on the chart of
accounts.
G/L account number assignment can be defined as a function of the valuation area.

If a material is subject to split valuation, you can valuate different stocks of the same material
differently and also manage them in different accounts.

ChartofAccounts. 3 Types.

The chart of accounts is a list of all G/L accounts that are jointly used by one or more company codes.

A Chart of accounts must be assigned to each company code.

One Chart of accounts can be used by multiple company codes.

Chart of accounts forms part of the key in the table for automatic account determination.

Must assign the individual G/L accounts for automatic account determination separately for each chart
of accounts.

Operative, Country-specific chart of accounts, group chart of accounts. Three types.

Valuation Area.

The valuation area is an organizational unit within Logistics that subdivides a company for the purpose
of uniform and complete valuation of material stocks.
Mention about 2 levels.

Valuation grouping code.

Differentiation for the G/L account within a chart of accounts based on valuation areas.

To minimize the necessary effort involved, valuation areas with the same account number assignment
can be grouped together. This is done through the valuation grouping code.

 Activation of valuation grouping code – Show.

If valuation grouping code is activated then a valuation grouping code must be assigned to a valuation
area.

Automatic account determination must be defined separately for each valuation grouping code .

Valuation grouping codes are either used for fine differentiation within a chart of accounts or
correspond exactly to a chart of accounts.

Automatic account determination is to be set up

independently of the valuation grouping code deactivate the valuation grouping code.

OR
 Only for individual transactions. - adjust the rules accordingly for individual transactions

Valuation area.

Two variants of the valuation area.

Valuation Level: Company Code. = Valuation Area

If the valuation area has been fixed at company code level, G/L accounts cannot be assigned differentiated by plant .

Deactivate the valuation grouping code.

Company codes + Same chart of accounts treated identically.

Activate the valuation grouping code.

Company codes + Same chart of accounts + Same valuation grouping code treated identically for
Account Determination.
Company codes + Same chart of accounts + different valuation grouping code .Account determination
can be based on valuation grouping code.

Valuation Level: Plant

Deactivate the valuation grouping code

The plants that (indirectly) use the same chart of accounts INT would be treated
identically in terms of account assignment.

Activate the valuation grouping code

 Must assign a valuation grouping code to all plants

Same code to the plants of the same chart of accounts INT that are to be treated identically in terms of
account assignment.

Different valuation grouping codes for the plants of the same chart of accounts, then assign different
G/L accounts for the same business processes in these plants .

Influence of Material and Material Type.

Material Type, Valuation Class, Account category reference.

The valuation class is a key used to group together materials with the same account determination.

Account category reference

Valuation class + Account category reference – Many Valuation Class to same Account category
reference.

Material Type + Account category reference – One Material type one account category reference

So the material created with certain material type has fixed Valuation Class defined. The Valuation Class
is used as one of the parameter in G/L account determination.

Influence of Business Processes and Account Determination.

Generalized posting records + transaction = Value String.

Transaction Event/ Key - The transaction keys are used to determine accounts or posting keys for line
items, which are created automatically by the system.

The transaction keys are pre-defined in the system and cannot be changed by the user.

Movement type in inventory management + value string (posting rule)  Transaction Key
Transaction Invoice Verification + value string (posting rule)  Transaction Key

Determination of the Value String for Goods Movements.

The value string assigned to a specific transaction is determined automatically.

It depends partly on manually entered parameters and partly on parameters derived internally by the
system.
The value string contains the maximum possible posting transactions for a certain transaction.

Which of these posting transactions lead to G/L postings in individual cases is decided by the program
and cannot be defined in Customizing .

Example of Value Strings (1): WE01- goods receipts for standard purchase orders KDM,BSX,WRX,UMB
Example of Value Strings (2): WA14 - free-of-charge delivery
Example of Value Strings (3): WA01- other goods receipts.

The transaction/event keys BSV, FRL, and FRN are used only in connection with the item category
subcontracting.

Rules - Using rules, you can specify whether the assignment of the G/L accounts for a transaction
involving automatic account determination depends on:

 The valuation grouping code.

 The account grouping code (not possible for every posting key).
 The valuation class.

Posting Keys.
  . The account type (vendor/creditor, customer/debtor, asset, material, or G/L account)
 . Debit or credit posting
 . The layout of the entry screens

Account Grouping Code

********************************************************************************
Posting transaction Offsetting Entry for Inventory Posting. This offsetting entry can be used for
Different transactions and events example - goods issue, scrapping, physical inventory.
Assigned to different accounts expense/revenue from inventory differences, scrapping, consumption
account
Subdivide the transaction according to a further key.
Account modification code or modifier. - These are the other names

Key for G/L account determination that enables differentiation of GL account assignment for offsetting
Entry for Inventory Posting.
***********************************************************************************
In the standard system, the account grouping code is active only for the transaction/event key GBB (offsetting
entry for inventory posting) in the MM area.
BSX - Inventory posting, GBB - Offsetting entry for inventory posting.

Account Grouping Code is used for Offsetting entry for inventory posting.

Value strings + Transaction/Event Key + Account Grouping Code.

Value strings contain keys for the posting transactions that can lead to G/L account updates in the case
of an FI-relevant posting. These value strings are predefined by SAP. Cannot change value strings or the
transactions they comprise in Customizing.

Certain posting transactions can be differentiated on a transaction-specific basis by the use of an

account grouping code.

The account grouping code cannot be changed in the case of invoice verification transactions .

In the case of inventory management transactions, the account grouping (or modification) code can be
changed dependent on the movement type and other indicators (such as the special stock indicator )

Show example for the account grouping code

BSX/GBB is same but account determination is done through account grouping code
Summary of Influencing Factors for Account Determination – Draw the figure.

System parameters (influencing factors) taken into account when setting up automatic
account determination are

 Chart of accounts of the company code

 Valuation grouping code of the plant or company code

 Valuation class of the material

 Transaction/event key from the value string, possibly with account grouping code

Simulation of Account Assignment. - Show

Accounts for Delivery Costs.

Show the pricing Schema

 The transaction/event keys (account keys) for delivery cost postings come not from the value string but
from the calculation schema for purchasing.
Account key – Transaction/ Event key for freight purchase account.
Account key - accruals / provisions - Transaction/ Event key for account determination of delivery cost.( during MIRO)

Default Account in Purchasing

The transaction/event key GBB and the account grouping code (account modification) of the account assignment category are
used for automatic determination of the default account in purchasing documents.

 Account grouping code is used in Account assignment category that is used in Purchase Order and the same Account grouping
code is used with GBB in OBYC.

In the case of items with account assignment with a material master record, the valuation class from the accounting view is
used with the above in OBYC.

Tax Accounts

Tax determination procedure - OBYZ

Tax determination procedure to the country in which your company code is located- OBBG
This tax determination procedure contains different condition types for calculating the tax amounts and transaction
keys for the different tax accounts

By specifying the country (and thus with reference to the tax determination procedure), you define your tax code.
You assign the tax rate to a condition type and thus to an account key. FTXP.
When assigning G/L accounts for the tax postings (that is, tax accounts), you can specify rules to set the dependency
on the tax code