SAP MM -- Movement Types and Account determination made easy by flow diagram
What is Movement Type ?
SAP has given an important role to this three digit movement type key for posting activities of materials and services into books of accounts and generating material documents. With out so called movement type managing inventory is not possible. Movement type describes the type of stock posting in inventory. It represents whether the posting in stock is against goods receipt or goods issue etc.
Major functions of movement type are :
1.Movement type is a three digit number which
links material movement to account determination.
2.This updates the quantity and value to
the material master record.
3.This allows to control certain field
selection.
4.It can
generate PO in background.
5.It can extend material master record to
new storage location.
6.It can propose a new batch number.
7.It will also control many more function
for QM, PP, and WM modules.
Point 1: Know how Movement Type determines the G L Account
Below diagram shows you how movement type determines GL account
I have used following data while GR with MIGO process
Example 1:
Material : 45000042 with standard price maintained as 100 EUR
PO : 4500017548 with vendor 100380 @ 200 EUR price as shown below
MIGO posted
Check the FI document
Click on "Doc.Info" 
>> Click on 
>>
>> Click on >>
Double click on Accounting Documents >>
the transaction event key are hit to BSX, WRX and PRD
You can see from the above flow diagram the valuation string WE01 fetched by following parameters
1. Material - is not a special stock so the spacial stock place is blank
2. Material Type of the material 45000042 is quantity and value update type showing diagram itself. this can be checked in OMS2. So the quantity and Value update place is given X and X .
3. MIGO done with respective to PO. So reference Document indicator is B
4. PO is not created with any account assignment category, so system will take consumption indicator as No Consumption as blank.
from this it can find valuation string WE01 as shown above.
which is containing
1. BSX key for stock debit account.
System approaching this BSX key to the exact account is through valuation Class assigned in material master. System filters the BSX key maintained in the respective chart of account(COA) having link with plant >> Company code>> COA with the valuation class in OBYC confutation setup
Double click on BSX
But if seen from Table --T030
give below values
COA-INT
Transaction Key is BSX
Valuation class is 3000 from material master record
Valuation grouping code kept blank as I have not assigned to my plant.
execute
You can check below system found only one possible account for posting. There are 2 accounts in below record, one for debit and other is for credit. Here system receiving goods so it will select Debit account.
In above case I have shown redpoint for the valuation grouping code " Val.Grpg.code" and Account modifier "Acct.modif" in the selection screen kept blank.
the reason is Valuation grouping code is not maintained for my plant ABC1.
and the second account modifier is not relevant for BSX.
This we can also check by automatic account assignment simulation :
From ABC1 plant fetching company code ABC1 and fetching INT chart of account with is assigned to company code.
And also from plant ABC1 to Valuation area ABC1 to Valuation grouping code as it is blank.
similarly from material to material type from material type to Valuation class and Value update.
similarly
2. WRX Key assigned with
3. PRD Key assigned with
Showing example 2
result
since material is maintained with moving average price "V" in material master record, it has hit only BSX and WRX.
I will post determining with GL account with account modifier in next blog post.
Thank you for reading.
I have video on these all topics on you tube please watch
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Thanks Venkat for such a detailed, exhaustive and educative content. I seriously share my appreciation and please consider this comment as an message of encouragement for your sills.
ReplyDeleteHello Sir,
ReplyDeleteI frequently watch your videos which are very informative and have a clear explanation.
I would like to take this opportunity to ask you a question regarding Invoice Plan Scenario. I would really appreciate it if you could take some time to provide your valuable inputs.
I'm currently working for a project where the requirement from the client is they have a rental scenario where they rent machinery from suppliers. The supplier will charge a fixed monthly rental fee for 8 hours per day for example monthly USD 1000 if used for 8 hours everyday. If the machine is used for more than 8 hours per day, there is an overtime fee of 5 USD per hour. So the supplier sums up all the overtime for the month and adds it in his monthly invoice. For example monthly rental = 1000 USD + overtime = 250 = Total rental = 1250.
So, I suggested using Framework Order and activation of invoice plan where the same PO will be used and GR will not be done every month but invoices can be posted till the duration of the rental period. The main problem arises when we need to add the overtime amount which varies every month based on usage.
To solve this, I tried this approach - for the fixed amount I tried to remove the invoice block from the invoice plan and post the invoice manually. Once the invoice document is generated, I plan to use a new condition type in the invoice to add the overtime amount and post the document.
The problem arises when I try to post the next invoice. When I remove the invoice block and proceed to MIRO to post the document manually, the system doesn't pick/recognize that there is an amount to be posted. I would like to know if this is because of the additional value posted? Am I doing something wrong or is there a better solution to this requirement. Any inputs would be really valuable.
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Regards,
Madhu
Fantastic work !
ReplyDelete