MM-FI INTEGRATION

In the accounting view of Material master amongst other values we have a

Valuation Class field. This Valuation class is the vital link which ensures that
Accounting documents are posted automatically. Every material will have a
valuation class field. Examples of Valuation Class could be Finished Goods,Semi
Finished goods, Raw Material etc.
In transaction MM03, type in the material number and click on accounting 1 view
here the valuation class will be displayed.
All Material movements in MM happen with respect to a Movement Type.
For eg
Goods receipt is defined with movement type - 101
Goods issue to production order is defined with movement type 261
Scrapping of goods is defined with movement type 551
Goods delivered to the customer with movement type 601
Initial upload of stock is defined with movement type 561
The combination of valuation class and the movement type helps in determining the
GL accounts.
FI - INTEGRATION WITH MATERIAL MANAGEMENTS
MM ORGANISATIONAL STRUCTURE
Cross plant Purchasing Organization

Company Code - 1000

Purchase Org

2000

Cross plant Purchasing Organization - 1000

Plant

ABCD - 1100
0001

0002

1200

1300

0002

Plant- Specific Purchase Organization

Company Code - 1000

Purchase Org

2000

Plant Specific Purchasing Organiz - 1000

Plant

ABCD - 1100
0001

0002

1200
0002

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MM-FI INTEGRATION

Cross Company Code Purchasing Organization

Company Code - 1000

Purchase Org

2000

Cross Company Code Purchase Organ - 1000

Plant

ABCD - 1100
0001

0002

1200
0002

MM MATERIAL MOVEMENT FLOWS

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MM-FI INTEGRATION

MM
MM
Purchase
Requisition
PR

Quotation

Purchase Order
PR

PurchQuotation
Agreement
Purch
Enquiry

Starts with
Receipts

Procurement
Cycle

Goods Receipts
Invoice
GR / IR

MM

GL, AP
Update
FI
Outgoing Payment

Invoice Verification
MM
FI

FI

MM Flows
Raw-material Purchase enquiry Purchase quotation Purchase Order GR Goods Receipt (Raw-material) IR - Invoice receipt Goods (Raw-material) issue
for Consumption to Production department Goods (Finished) received from
production department

MM journal entries

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1- When Purchase enquiry
No FI entry
2- When Purchase quotation
No FI entry
3- When purchase order
No FI entry
4- When goods received
Inventory of Raw-material Account Dr
To GR / IR Clearing Account
5- When invoice received
GR / IR Clearing Account Dr
To Vendor Account
6- When Goods issued for consumption
Raw-material consumption account Dr
To Inventory of Raw-material account
7- When Goods received form production
Inventory of finished goods account Dr
To Increase / Decrease stock account
Movement Types
Specifying a key for the types of goods movements. Each goods movement is
allocated to a movement type in this system. For each material movement the
system determines the rules for updating stocks, qualities and the stock values in
the relevant accounts.
Standard movement types
101
102
201
202
261
262
521
522
561

Material receive against the purchase order / production

Reverse of 101 or Purchase order
Issue to cost centre
Reversal of 201
Issue to orders
Reversal of 261
Material received without production order
Reversal of 521
When posting opening stock

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562 Reversal of 561
601 When goods delivered
602 Reversal of 601
Transaction keys
These transaction keys are used to determine accounts or posting key for line items
which are created automatically by the screen. These transaction keys are defined
in this system and cannot be changed by the user.
BSX Inventory postings (every inventory accounts we assign BSX key)
WRX For GR / IR Accounts
PRD Price difference accounts / production order differences
GBB Offsetting entries for inventory posting
Offsetting entries for inventory posting
VBR Raw-material Consumption account
VNG Scraping
BSA Opening stock taken
AUF Production receive against production order
ZOF Production receive without production order
VAY Delivery where sales accounts is a reverse accounts
AVA Production order difference
VAX Delivery where sales accounts not a revenue accounts
Valuation Classes
Valuation classes is nothing but sub-classify of the material
1- Raw-material
Local material
Imported material
Inter unit material
2- Stocks
Imported, Local
3- Finished Goods
Own goods
Other goods (Imported goods)
Valuation Area
Valuation area is nothing but Plant
Valuation grouping / Valuation modify / Valuation modification tools

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It is nothing but combination of Company code + Plant + Chart of Accounts
Movements type
Similar to Accounts group is material type
ROH Raw-Material
FERT Finished goods
FRSA Storage and spares
VERP Packing material
HAWA Trade groups
DIEN Services
MM Integration Steps
Define Plant (OX10)
Path: Spro Img Enterprise structure Definition Logistics general Define,
Copy, Check plant
Double click on Define plant
Check on new entries
Plant TAPL (Any code)
Name Plant in Hyderabad
Factory calendar 01
Click on address field
Country IN (Give complete address)
Click on Save
Define, Copy, Delete, Check the Division (OVXB)
Path: Same
Double click on define division
Click on new entries
Division
Name
ST
Steel
Press enter key and Save
Come back
Note: You can create any division like Marketing, Purchasing etc
Maintain Storage location (OX09)
Path: Spro Img Enterprise structure Definition Material managements
Maintain storage location
Plant TAPL
(Tick mark)
Click on new entries
Storage location
Description
HYD
Hydrabad

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Press enter key and Save
Comeback wise
Maintain Purchase Organization (OX08)
Path: Same
Click on new entries
Purchase Organization
Purchase Organization Description
TAPO
Raw-material Purchase organization
Press enter key and Save
Come back wise
Assign Plant to Company code (OX18)
Path: Spro Img Enterprise structure Assignments Logistics-general
Assign plant to company code
Click on new entries
Company code
Plant
TAST
TAPL
Press enter key and Save.
Comeback wise
Assign Business area to Plant / Valuation area / Division (OMJ7)
Click on plant/ valuation area/ Division
Click on new entries
Plant
Division
Business area
TAPL
ST
TAHY
Press enter key and Save
Comeback three times
Assign Purchase organization to company code (OX01)
Path: Spro Img Enterprise structure Assignments Material managements
Assign purchase organization to company code
Click on position
Purchase organization TAPO
(tick mark)
Company code TAST
Press enter key and Save
Comeback wise
Assign Purchase organization to plant (OX17)
Path: Same
Click on new entries
Purchase organization
TAPO

Plant
TAPL

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Press enter key and Save
Come back
Creation of Material Group (OMSF)
Path: Spro Img Logistics-general Material masters Settings for key fields
Define material group (OMSF)
Click on new entries
Material group
Material group description
CHM
Chemicals
Press enter key and Save
Comeback wise
Not: Just like you can create any number of groups
Creation of Purchase group (OME4)
Path: Spro Img Material managements Purchasing Create purchase group
Click on new entries
Purchasing group
Description of purchasing group
RAM
Raw-material purchasing group
Press enter key and Save
Come back wise
Maintain Company code for material managements (OMSY)
Path: Spro Img Logistics-general Material masters Basic settings
Maintain company code for material managements
Click on position
Company code TAST
Year
Period
ABP (Allow back date period)
2009
1
Tick mark
Press enter key and Save
Note: Here we can open two period at a time
Define Attributes of Material types (OMS2)
Path: Same as up to basic settings Material types Define attributes of material
type
Click on position
Material type ROH
(Tick mark)
Now select ROH Material type
Double click on Qualities/ values updating folder
Click on position
Valuation area TAPL (Plant Code)
(Tick mark)
Quantity updating
Value updating
Tick mark
Tick mark

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Press enter key and Save
Double click on material types folder
Click on position
Material type FERT
(Tick mark)
Select your material type FERT
Double click on Quantities/ Value updating folder
Click on position
Valuation area TAPL
(Plant code) (Tick mark)
Quantity updating
Value updating
Tick mark
Tick mark
Press enter key and Save
Come back wise
Note: Just like you can give attribution for whatever material type you are using in
the company
Set tolerance limit for Purchase order (OMEU)
Path: Spro Img Material managements Purchasing Purchase order Set
tolerance limit for price variance
Select PE, SE tolerance key from 0001 Company code
Click on copy as field (F9)
Change the company code in to TAST
Press enter key
Again change the company code in to TAST
Press enter key and Save.
Come back wise.
Set tolerance limit for Goods receipts (OMC0)
Path: Spro Img Material managements Inventory managements and physical
inventory Goods receipts Set tolerance limit
Select B1, B2, VP tolerance key from 0005 Company code
Click on copy as field (F9)
Change the company code in to TAST
Press enter key
Again change the company code in to TAST
Press enter key
Again change the company code in to TAST
Press enter key and Save.
Come back wise.
Plant Parameters
Path: Same as up to Inventory managements and Physical inventory Plant
parameters
Select 1000 plant
Click on copy as field
Change the plant in to TAPL

(Plant in Hyderabad)

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Press enter key and Save
Comeback wise
Set tolerance limit for Invoice verification (OMR6)
Path: Spro Img Material Managements Logistics invoice verification Invoice
block Set tolerance limit
Select BD and ST Tolerance key from 0005 Company code
Click on copy as
Change the company code in to TAST
Press enter key
Again change the company code to TAST
Press enter key and Save
Come back wise
Define automatic status change (OMRV)
Path: Same as up to Logistics invoice verification Invoice verification in
background Define automatic status change
Click on new entries
Company code - TAST
Press enter key and Save
Comeback wise
Assign tax procedure to country (OBBG)
Path: Spro IMg Financial Accounting new Financial accounting global settings
Tax on sales and Purchase Basic settings Assign country to calculation
procedures
Click on Position
Country IN (Tick mark)
Procedures TAXPRO
Maintain default value for tax code (OMR2)
Path: Spro Img Material managements Logistic-invoice verification
Incoming invoice Maintain default value for tax code
Click on new entries
Company code TAST
Default domestics
Tax code
Press enter key and Save
Come back wise

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Note: If you have different tax code put tax code column nil so that while material
purchase you can select any tax code otherwise you cannot change tax code
according to the transaction
GL Account creation
Go to FS00 Create the following GL Accounts
12345-

Inventory of Raw-material account - Assets

Inventory finished goods accounts Assets
GR / IR Account Liabilities
Increase or Decrease stock Accounts Incomes
Raw-material Consumption Account Expenses

Go to FS00
1- GL Accounts Inventory of Raw-material Accounts
Company code TAST
Click on create field
Account group Assets
Select balance sheet accounts
Short text Inventory of Raw-material Account
Long text Inventory of Raw-material Account
Click on control data tab
Select only balance in local currency
Select line item display
Sort key 001
Click on create/ bank / interest tab
Field status group G006 (Material Accounting)
Select post automatically
Press enter key and Save.
2- Just like Create the Inventory of finished goods accounts
3- GL Accounts GR / IR Accounts
Company code TAST
Click on create field
Account group Liabilities
Select balance sheet accounts
Short text GR / IR Account
Long text GR / IR Account
Click on control data tab
Select only balance in local currency
Select open item managements
Select line item display
Tax category - *
Select posting without tax allowed
Sort key 001
Click on create/ bank / interest tab
Field status group G045 (Goods / Invoice receive clearing)

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Press enter key and Save.
4- GL Accounts Increase / decrease of stock Accounts
Company code TAST
Click on create field
Account group Incomes
Select profit and loss accounts
Short text Increase or decrease of stock Account
Long text Increase or decrease of stock Account
Click on control data tab
Select line item display
Sort key 001
Click on create/ bank / interest tab
Field status group G030 (Chang in stock Account)
Press enter key and Save.
5- GL Accounts Raw-material consumption Accounts
Company code TAST
Click on create field
Account group Expenses
Select profit and loss item
Short text Raw-material consumption Accounts
Long text Raw-material consumption Accounts
Click on control data tab
Select line item display
Sort key 001
Click on create/ bank / interest tab
Field status group G003 (Material consumption account)
Press enter key and Save
Update this account to CO
Group together valuation area (OMWD)
Path: Spro Img Material managements Valuation and account assignments
Account determination Account determination without wizard Group together
valuation area
Click on position
Valuation area TAPL (Plant code)
(Tick mark)
Valuation grouping code X
(Any code)
Press enter key and Save
Comeback wise.
Define valuation class (OMSK)
Path: Same
Click on valuation class tab
3000 Raw-material
7920 Finished Goods

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Come back wise.
Configure automatic Postings (OMWB)
Path: Same
Click on cancel tab
Click on account assignments tab
1- Double click on BSX Transaction key (Inventory posting)
Chart of account CHAC (Tick mark)
Select valuation modify
Select valuation class
Click on save
Valuation modify Valuation class
Accounts
X
3000
Inventory of Raw-material Accounts
X
7920
Inventory of Finished goods accounts
Press enter key and save.
Comeback wise
2- Double click on WRX transaction key (GR/IR Accounts)
Select valuation modify
Select valuation class
Click on save
Valuation modify Valuation class
Accounts
X
3000
GR / IR Accounts
Press enter key and Save
3- Double click on GBB transaction key (Offsetting entries for inventory post)
Select General modification
Select Valuation modify
Select Valuation class
Click on save
Valuation modify General modify
Valuation class
Accounts
X
VBR
3000
Raw-material consumption a/c
X
AUF
7920
Increase / Decrease stock a/c
X
ZOF
7920
Increase / Decrease stock a/c
X
VAY
7920
Increase / Decrease stock a/c
X
VAX
7920
Increase / Decrease stock a/c
Press enter key and Save
Comeback three times
Documents types number ranges settings (OBA7)
1- WA - Goods issued
2- WE - Goods receive
3- RE - Invoice posting (Purchase)
Go to OBA7 for documents

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1- Click on position
Documents type WA
(Tick mark)
Double click on WA Documents type
Click on number range info tab
Company code TAST
Click on change intervals tab
Click on insert intervals tab
No
Year
From number
To number
49
2009
500001
600000
Press enter key and Save
Just like define number range for WE, RE documents type
Vendor master data creation (XK01)
Path: Sap easy access Accounting Financial accounting Accounts payable
Master records Maintain centrally Create
Company code TAST
Purchase organization TAPO
Press enter key
Fill address and Name fields
Press three times enter key
Reconciliation accounts Sundry Creditors
Sort key 012
Cash management A1
Press enter key
Payment term - 0001
Tolerance - TAMV
Press three times enter key
Order currency INR
Terms of Payments 0001
Select GR Based invoice verification
Press enter key and Save
Open Material periods (MMPV)
Path: Sap easy access Logistics Material managements Material masters
Other Close period
From Company code TAST
Period 1 (Give current period)
Fiscal year 2009
Press F8 for execute
Comeback wise

To Company code TAST

Note
Before Creating a material Go to MMPV check which is the current open period
activated in the system. If it is showing the previous period (suppose period 01 is
activated) you cannot post any transaction in current period (Suppose current

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period is 05). In order to change this Go to MMPV Give the next
Period column and Select the Check and close period radio botton
and press F8 for execute. Come back again
Give the next Period 03 in the Period column and Select the Check
radio botton
and press F8 for execute. Come back again
Give the next Period 04 in the Period column and Select the Check
radio botton
and press F8 for execute. Come back again
Give the next Period 05 in the Period column and Select the Check
radio botton
and press F8 for execute. Come back again

Period 02 in the
and close period
and close period
and close period

Material Creation (MM01)

Path: Sap easy access Logistics Material managements Material masters
Material Create (General) Immediate
Material MAT01 (Give your material name)
Industry specter M
Material type ROH - Raw-material
Click on select view(s) tab
Select Basic data1, Accounting, Purchasing
Click on organizational level tab
Plant TAPL
Storage location HYD
Press enter key
Material Raw-material
Base unit of measures KG
Material group ST
Gross weight 1000
Weight unit G
(Grams)
Net weight 1000
Click on Purchase tab
Purchase group RAM
Click on Accounting tab
Valuation class 3000
Price control V
Moving price 100
Press enter key and Save
Postings
Creation of purchase order (ME21N)
Path: Sap easy access Logistics Material managements Purchasing
Purchase order Create Vendor / supplying plant known (ME21N)
Vendor Vendor Account
Documents date 01-05-2009

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MM-FI INTEGRATION
Click on header tab
Click on Organizational tab
Purchase organization TAPO
Purchase Group - RAM
Company code TAST
Item
Material
Po quantity Net price
01 (any)
MAT01
100
100
Press enter key and Save
Click on Save
Note the purchase order number 4500017134

Currency
INR

Plant
TAPL

When Goods received (MIGO)

When Goods received The FI entry will be
Inventory of Raw-material Account Dr
To GR / IR Clearing Account
Path: Sap easy access Logistics Material managements Inventory
managements Goods movements Goods receipts For purchase order
Purchase order number known
Purchase order 4500017134
Press enter key
Click on Quantity tab
Quantity in delivery note 100
Select Item OK
Click on Where tab
Storage location HYD
Press enter key and Save
Note the documents number 5000011896
Go to FBL3N and check the concerned GL Accounts
Note: The posting will be done like this
Inventory of Raw-material Account Dr 10000 (100 * 100)
To GR / IR Clearing Account
- 10000
Display of Goods received documents (MB03)
Path: Sap easy access Logistics Material managements Inventory
managements Material documents Display
Material documents 5000011896
Year 2009
Press enter key
Click on Accounting documents tab
When invoice is received (MIRO)
The FI entry will be when invoice received

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MM-FI INTEGRATION

GR / IR Clearing Account Dr
To Vendor Account
Path: Sap easy access Logistics Material managements Logistics invoice
verification Documents entry Enter invoice (MIRO)
Invoice date 01-05-2009
Posing date 01-05-2009
Amount 10000
Activate Tax
Select Tax key A1
Text Invoice posting
Purchasing order / scheduling agreem 4500017134
Press enter key
Click on Payments tab
Base line date Give current date
Press enter key and Save
Go to FBL3N check the concerned GL
GR / IR Clearing account - 1000
Vendors
- 10441.2
Input tax
- 400
Surcharge
- 40
Edu-cess
- 1.2
Display of Invoice documents
Go to invoice documents on menu bar Display
Click on follow-on documents tab
When Raw-material send to Production Department for Processing (MB1A)
While sending Raw-material to production department for the processing the FI
entry will be
Raw-material consumption account Dr
To Inventory of Raw-material account
Path: Sap easy access Logistics Material Managements Inventory
managements Goods movements Goods issue
Documents date Give Current date
Posting date Give current date
Movement type 201 (Issued to cost centre)
Plant TAPL
Storage location HYP
Press enter key
Business area TAHY
Cost centre Dep A
Material
Quantity
MAT01
100

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Press enter key and Save
Note the documents number 4900035012
Display of Goods issued documents
Go to goods issue in Menubar Select display
Material Documents number 4900035012
Year 2009
Press enter key
Click on Accounting documents tab
Double click on Accounting documents
Documents display
Go to Goods receipts in menu bar Display
Press enter key
Click on Accounting documents tab
Double click on Accounting documents
Come back wise
Display of Material Ledger
Path: Sap easy access Logistics Material managements Inventory
managements Environments Stocks Stocks for posting date
Material number MAT01
Company code TAST
Plant TAPL
Press F8 for execute
Come back wise.

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