Accounting entry posted due to FIMM integration

FIMM integration is done through transaction code OBYC. General ledger accounts are set as per the different parameters of valuation area, movement type and transaction type that is created with respect to the movement type.

Accounting entries are posted to Financial Module due to FIMM integration are below;

1. Accounting entry when PO is created:

—- No Accounting entries generated so nothing flows from MM module to FI module —–

2. Accounting entry When GR is posted

When goods received the inventory is gone up as a result there is an impact on the accounting. Following entry is generated and get posted from Material Management module to Financial Accounting Module

Inventory Account Dr (Transaction Key BSX in OBYC) XXXX
To GRIR account (T.Key WRX in T-code OBYC) XXXX

3. Accounting entry When Invoice is posted

When material received and the invoice reached the accounting team accounting team makes the following entry by nullifying the GR/IR Clearing account and recording the vendor account.

GRIR account Dr. XXXX
Vendor account Cr. XXXX

4. Accounting entry when Payment made to Vendor

As vendors get paid accounting entry get posted to Financial Module

Vendor A/c Dr XXXX
To Bank Clearing A/c Cr. XXXX

Points to know to understand the accounting entry and the integration: Movement Types, Assignment of Movement types to T-keys (T-code OMJJ), Value string (I also need some information on this), OMWN and OMWB transactions.

There is a close integration between FI & MM, actually document flows from MM to FI in the following areas such as,

1. Movement Types:

Used to enable the system to find the predefined posting rules determining how the accounts of financial accounting system are to be posted & to update the stock fields in the material master data.(Goods Receipt, Goods Issue, etc)

2. Valuation Class:

Assignment of material to grp of gl account, used to determine the gl accounts that are updated as a result of goods movement.

3. Transaction/Event key

There keys are used to control the storage or filing of documents & assignment of documents. Used to differentiate between various transactions such as goods movement that occurs in inventory.

4. Material Type:

Each material should assign material type in material master record used to update whether changes made in qty are updated in material master record & change in value also updated in stock account.

Leave a Reply

Your email address will not be published. Required fields are marked *