SAP- Integration topics(MM with PP & QM) configuration

SAP- Integration topics(MM with PP & QM) configuration

Accounting Entries Effect in Procurement Cycle Concepts - SAP MM&FI:

 As we studied in the previous post regarding accounting determination, here we are discussing how the accounting determination is going to work based on the settings you have done and which GL accounts it's getting hitting based on which scenario and why is the reason behind that.

Concept:

We have N number of activities in the procurement cycle and one of the main things is Inventory to know the spend, goods inbound and outbound will take place in the plant, we need to depend on reports in SAP and even the reports we will be taken on -which accounting entry for which type of movement or else goods inside and outside will be calculated full based on accounting entries.

While we are defining account determination, we have something called modifiers, many things were surrounded by modifiers.

For each entry in procurement where stock and price are involved then automatically accounting entries will come into the picture.

We are doing many activities in Inventory by ordering stock from vendors, Normal orders from vendors, Consumables, Subcontracting, Pipeline, Consignment, Physical Inventory, Stock movements like STO/Inter and Intra, return PO, and service PO.

Here we will study which accounting entry will affect what scenario and the reason.

1. Standard PO Order

This is the normal order that we use to procure from vendor and vendor mainly materials like raw materials and finished goods, which are physically used for production purposes.

Once the vendor delivers the goods to the plant, based on the invoice we need to make a payment to the vendor and APAY will release the payment – Here from which GL account the payment should be released.

Because we cannot use some other GL account for these types of materials, as per the company it's already predefined in OBYC like which GL account should hit for which type of orders-----these settings are predefined by SAP.

While paying an amount to the vendor few accounts will hit automatically with the help of the transaction event key.

If anything like a stock is getting credited to the plant or withdrawal of stock from the plant will reduce or increase the quantity, in those cases, BSX will hit automatically.

For clearing the invoice always WRX will hit and from this vendor account will get paid automatically.