FI MM Integration in SAP

FI-MM integration in SAP is the most important integration that every financial consultant must aware of . In Material Management, accounting documents are created for the movement type which in turn needs to be reflected in financial accounting module for recording into the companies financial statement. To have these documents in real time to FI we need FI-MM integration in SAP.

To carry on FI-MM Integration in SAP, in MM Module, valuation areas are maintained at plant level to value the inventory at that level. Various movement types are created in MM module by considering the nature of transaction. Each and every movement type in MM module has a link to the transaction type created by SAP.

FI MM Integration in SAP

The movement type in MM defines the way accounts in FI are to be posted. So we need to do FI-MM integration in such a way that SAP can easily recognize the general ledger accounts from such movement types

FI-MM integration is done through transaction code OBYC. Or else you can do FI MM integration in SAP by using following path; 

SPRO > Material Management > Valuation and Account Assignment > Account Determination > Account Determination without wizard > Configure Automatic Postings

In OBYC, transaction types are defined with a link to the movement type.

To these transaction types we assign GL accounts by double clicking on it.

These GL accounts are derived when the specific movement types are used in Material Management module under a plant.

In OBYC following transaction type are defined for FI-MM Integration in SAP

  • AKO – Expense/revenue from consumption of consignment material
  • AUM – Expenditure/income from transfer posting
  • BO1 – Provisions for subsequent (end-of-period rebate) settlement
  • BO2 – Income from subsequent settlement
  • BO3 – Income from subsequent settlement after actual settlement
  • BSD – Supplementary entry for stock
  • BSV – Change in stock
  • BSX – All stock postings to Stock Accounts due to Goods receipts & goods issues in Inventory Management.
  • COC – Revaluation of “other” consumptions
  • DIF – Small differences, Materials Management
  • EIN – Purchase account
  • EKG – Purchase offsetting account
  • FRE – Freight purchase account
  • FR1 – Freight clearing
  • FR2 – Provision for freight charges
  • FR3 – Customs duty clearing,
  • FR4 – Provision for customs duty
  • FRL – External service
  • FRN – External service, delivery costs
  • GBB – Offsetting entry for stock posting
  • KBS – Purchase order with account assignment
  • KDM – Exchange rate differences in the case of open items
  • KDR – Differences due to exchange rate rounding, Materials Management
  • KON – Consignment liabilities
  • KTR – Offsetting entry for price differences in cost object hierarchies
  • PRD – Price differences
  • RUE – Provision for delivery costs
  • TXO – Taxes in case of transfer posting GI/GR
  • UMB – Revenue/expense from revaluation
  • UMD – Expenditure/income from revaluation
  • UPF – Unplanned delivery costs
  • VST – Input tax, Purchasing
  • WGI – Goods issue, revaluation (inflation)
  • WGR – Goods receipt, revaluation (inflation)
  • WRX – GR/IR clearing

FI accounting entries for Goods Received in Material Management

With the FI-MM integration following financial accounting entries are created for transaction goods received;

  1. Creation of Purchase Requisition – No FI Accounting documents created
  2. Enquiry, quotation and price comparison – No FI Accounting documents created
  3. Purchase Order Creation – No FI Accounting documents created
  4. Purchase Order Release Procedure – No FI Accounting documents created
  5. Goods Receipt – FI Accounting Documents Created

To update inventory, a material document is created in Material Management and a Financial Accounting document is created in FI (due to FI MM integration) with the following entry;

Accounting entry created at this stage of goods received:

Inventory Raw Material A/c Dr (Transaction Key Used: BSX)

To GR/IR Clearing A/c (Transaction Key Used: WRX)

  1. Invoice Verification –  FI Accounting Documents Created

When the invoice verification is done in Material Management it creates a FI document with the following entry;

GR/IR Clearing A/c Dr (Transaction key used: WRX)

To Vendor A/c (Vendor get selected from PO)

Note: FI-MM integrations are stored in table T030. You can see this table by using transaction code se16.

Relevant T Codes for FI-MM integration

  • To define valuation control in MM Module: OMVVM
  • Group together valuation areas: OMVVD
  • Define Valuation Class: OMSK
  • Define Account Grouping for Movement Type: OMVVN

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