Register Login


Updated May 18, 2018


FI – MM (Material Management) integration:-

Today we will learn how the integration within FI MM, and SAP SD takes place.

How are Accounting entries posted automatically and how do we configure them?

There are certain simple things you need to understand to know how this integration happens.

First all Materials in SAP have a material master.

This material master has various views right from Basic views to Purchasing views, production, sales and distribution and accounting and controlling views.

We will not get into the detail of Material master at this stage but it would suffice for us to understand that Material Master is the heart of all 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.

You can go to transaction code mm03 put any material no and click on Accounting 1 view on which you will find the Valuation Class field.

Examples of Valuation Class could be Finished Goods,Semi Finished goods, Raw Material etc

The combination of this Valuation Class+ the Movement Type(which I have defined below) helps in determining the Gl accounts. Read this statement twice to understand how gl accounts are automatically updated

What is a Movement Type?

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

SAP helps us to have different gl accounts for the various movements for the same material by linking this movement type to a transaction key. So where do we do we go and fit in all the different Gl accounts which we require?

Read more on SAP FICO Tutorials

 Download attached file.

You must be Logged in to download this file