Account Determination SAP MM

 In SAP MM, procurement process involves the cost of goods and services that needs to be paid to the vendor by an organization. The cost being paid must be posted in an organization necessarily in a correct general ledger (G/L) account. It is quite impossible to recollect and feed the correct G/L account every time during procurement. To avoid this inconvenience, the SAP system can be configured so that the system will automatically determine the correct G/L account that needs to be posted. G/L account is posted when goods receipt is done as well as during clearing the invoice verification. Account determination deals with the following terms−

• Define Valuation Control
• Group together Valuation Areas
• Define Valuation Classes
• Configure Automatic Posting

Define Valuation Control

Valuation areas can be grouped together and can be assigned to one grouping code, if they belong to the same G/L account. For example, different plants under one company code can be assigned the same valuation grouping code and vice versa. Before this, valuation grouping code must be activated and this can be done by following the steps given below.

Path to Activate Valuation Grouping Code

IMG ⇒ Materials Management ⇒ Valuation and Account Assignment ⇒ Account Determination ⇒ Account Determination without Wizard ⇒ Define Valuation Control

TCode: OMWM

Step 1 − On the Display IMG screen, select Define Valuation Control by following the above path.

Step 2 − Select Valuation grouping code. Click on Save. Valuation grouping code is now activated.

Group Together Valuation Areas

In valuation grouping, valuation area and valuation grouping code are assigned to the company code. This can be done by following the below steps.

Path to Define Valuation Area and Valuation Grouping Code

IMG ⇒ Materials Management ⇒ Valuation and Account Assignment ⇒ Account Determination ⇒ Account Determination without Wizard ⇒ Group Together Valuation Areas

TCode: OMWD

Step 1 − On the Display IMG screen, select Group Together Valuation Areas by following the above path.

Step 2 − Here you can define a valuation area with grouping code, and assign them to a company code. Click on Save. Valuation area and valuation grouping code are now defined for a company code.

Define Valuation Classes

Valuation class categorizes the G/L account on the basis of material type. For example, raw material will have different G/L account than the finished material, as the costs will be different in both the cases. Account reference is also maintained along with the valuation class. Account reference and valuation class can be defined by following the steps given below.

Path to Define Account Reference and Valuation Class

IMG ⇒ Materials Management ⇒ Valuation and Account Assignment ⇒ Account Determination ⇒ Account Determination without Wizard ⇒ Define Valuation Classes

TCode: OMSK

Step 1 − On the Display IMG screen, select Define Valuation Classes by following the above path.

Step 2 − Click the Account Category Reference button.

Step 3 − Click New Entries.

Step 4 − Provide the name of ARef (Account reference) along with its description.

Step 5 − Now go to same screen and click Valuation Class.

Step 6 − Click New Entries.

Step 7 − Provide the name of valuation class, ARef (Account reference), and description of valuation class.

Step 8 − Now go to the same screen and click Material Type/Account Category Reference.

Step 9 − Here you can map material type with ARef (Account reference). Click on Save. G/L account can now be posted for different material types.

Configure Automatic Posting

G/L account is automatically determined for each of the transactions. It happens so because automatic postings are configured in the SAP system. Automatic posting can be configured by following the steps given below.

Path to Configure Automatic Posting

IMG ⇒ Materials Management ⇒ Valuation and Account Assignment ⇒ Account Determination ⇒ Account Determination without Wizard ⇒ Configure Automatic Postings

TCode: OMWB

Step 1 − On the Display IMG screen, select Configure Automatic Postings by following the above path.

Step 2 − Click Account Assignment.

Step 3 − Here you can maintain the transaction for which automatic account determination is there. Click on Save. Automatic posting for transactions is now configured.

Material type Configuration

 Material Master: Material Type configuration

When creating a material, you need to specify the material type.

The Material type is the highest level of categorization of material masters.
Material Types defined in configuration and below is a summary of main areas that material type influence:

• Number range of material master and if it is internal (system allocated) or external (user allocate number)
  
• Which fields in material are mandatory / read only / optional
  
• User departments (Views in material)
  
• Purchase Orders allowed
  
• Valid valuation classes
  
• Quantity and Value update (does it update stock qty and value)
  
• Is it a pipeline material or not

Standard SAP Material Types include:

ABF - Waste
CH00 - CH Contract Handling
CONT - Kanban Container
COUP - Coupons
DIEN - Service
ERSA - Spare Parts
FERT - Finished Product
FGTR - Beverages
FHMI - Production Resource/Tool
FOOD - Foods (excl. perishables)
FRIP - Perishables
HALB - Semifinished Product
HAWA - Trading Goods
HERS - Manufacturer Part
HIBE - Operating supplies
IBAU - Maintenance assemblies
INTR - Intra materials
KMAT - Configurable materials
LEER - Empties
LEIH - Returnable packaging
LGUT - Empties (retail)
MODE - Apparel (seasonal)
NLAG - Non-stock materials
NOF1 - Nonfoods
PIPE - Pipeline materials
PLAN - Trading goods (planned)
PROC - Process materials
PROD - Product groups
ROH - Raw materials
UNBW - Nonvaluated materials
VERP - Packaging
VKHM - Additionals
VOLL - Full products
WERB - Product catalogs
WERT - Value-only materials
WETT - Competitor products

The main configuration of material type is in transaction OMS2
IMG: Logistics > Material Master > Basic Settings > Material Type > Define Attributes (OMS2)

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Some settings can be done per plant

For number range configuration, the transaction is:
IMG: Logistics > Material Master > Basic Settings > Material Type > Define Number range (MMNR)

First create a Group

Then link the material type to it

This is the main settings of material type. 

Defining Organization Structure

 An organization structure can be defined as the framework of a company that describes the entire structure and functioning of the company. Organization structures are split into different levels and each level is placed according to a hierarchy. These levels have direct or indirect relationship with one another. The various levels in a standard organization are as follows −

• Company
• Company code
• Plant
• Storage location
• Purchasing organization
• Purchasing group

All the Definitions in SAP are given through the Display IMG screen as shown below −

Path to reach Definition

IMG ⇒ Enterprise Structure ⇒ Definition

Create Company

Company is the topmost organizational unit after client, which incorporates individual financial accounting statements of several company codes. A company can have many company codes. In SAP, it is optional to create a company. The following steps will take you through the procedure of creating company.

Path to Create Company

IMG ⇒ Enterprise Structure ⇒ Definition ⇒ Financial Accounting ⇒ Define Company

TCode: OX15

Step 1 − On the Display IMG screen, select Define Company execute icon by following the above path.

Step 2 − Click the New Entries icon.

Step 3 − Fill in all the necessary details such as name of the company, address of the company with street number, city, country, and postal code.

Step 4 − Click the Save icon after filling the required information. A new company will be created.

Create Company Code

A Company Code is the smallest organizational unit after company, for which the standalone financial accounting's profit and loss statements can be withdrawn. Many company codes can be assigned to one company. The following steps depict how to create a company code.

Path to create Company Code

IMG ⇒ Enterprise Structure ⇒ Definition ⇒ Financial Accounting ⇒ Edit, Copy, Delete, Check Company Code

TCode: OX02

Step 1 − On the Display IMG screen, select Edit, Copy, Delete, Check Company Code execute icon, by following the above path.

Step 2 − Click the New Entries button.

Step 3 − Fill in all the necessary details like Company code, company name along with city, country, currency, language.

Step 4 − Click the Save icon after filling the required information. A new company code will be created.

Create Plant

A Plant is an organizational unit within a company where activities take place. A plant will produce goods and make goods available for the company. The following steps will take you through the procedure of creating a plant −

Path to create Plant

IMG ⇒ Enterprise Structure ⇒ Definition ⇒ Logistic General ⇒ Define, Copy, Delete check plant

TCode: OX10

Step 1 − On the Display IMG screen, select Define, Copy, Delete check plant execute icon, by following the above path.

Select Define Plant icon to create a new plant.

Step 2 − Click the New Entries icon.

Step 3 − Fill in all necessary details like plant name along with detailed information like Language, House no., city, country, region, postal code.

Step 4 − Click the Save icon after filling the required information. A new plant will be created.

Create Storage Location

A Storage Location is an organizational unit, which actually differentiates between the different material stocks in a Plant. Storage location is a place where stock is kept physically. A plant can consist of multiple storage locations. All data is stored at a storage location level for a particular storage location. Follow the steps given below to create a Storage Location −

Path to Create Storage Location

IMG ⇒ Enterprise Structure ⇒ Definition ⇒ Materials Management ⇒ Maintain Storage Location

TCode: OX09

Step 1 − On the Display IMG screen, select Maintain Storage Location execute icon, by following the above path.

Step 2 − Enter the name of the plant for which you want to create the storage location.

Step 3 − Click the New Entries icon.

Step 4 − Enter the name of the storage location along with its description. Click the Save icon after filling the required information. A new Storage Location will be created.

Create Purchasing Organization

A Purchasing Organization is an organizational unit under Company or Plant that is responsible for procurement activities according to requirements. It is responsible for external procurement. A purchasing organization can be specific to a plant or a company. Following the steps given below to create a Purchasing Organization −

Path to Create Purchasing Organization

IMG ⇒ Enterprise Structure ⇒ Definition ⇒ Materials Management ⇒ Maintain Purchasing Organization

TCode: OX08

Step 1 − On the Display IMG screen, select Maintain Purchasing Organization execute icon, by following the above path.

Step 2 − Click the New Entries icon.

Step 3 − Enter the name of the purchasing organization along with its description.

Step 4 − Click the Save icon after filling the required information. A new Purchasing Organization will be created.

Create Purchasing Group

A Purchasing Group is an organizational unit that is responsible for the everyday procurement activities within an organization. The steps given below depict how to create a Purchasing Group −

Path to Create Purchasing Group

IMG ⇒ Materials Management ⇒ Purchasing ⇒ Create Purchasing Group

TCode: OME4

Step 1 − On the Display IMG screen, select Maintain Purchasing Group execute icon, by following the above path.

Step 2 − Click the New Entries icon.

Step 3 − Enter the name of the purchasing group along with its description.

Step 4 − Click the Save icon after filling the required information. A new Purchasing Group will be created.

Regards

SAP-MM4U

Configuration of Release Strategy for PO

Release Procedure with classification, This procedure is applicable to PR, PO, Contract and scheduling agreements. Item by Item and Header level releases can be configured. For PR – both item by item and Header level release can be configured. For external purchasing documents – Release is possible only at Header level.

Preparation of required objects for Release Strategy in SAP

Before we start configuring release strategy in SAP, we need to define the combination of parameters to trigger the release. This triggering criterion can be a combination of Document type and Purchasing organization along with value depending on which the number of release codes are assigned when the document is created. In SAP we have a run time structure with name CEKKO (Communication Release Strategy Determination Purch. Document) which provides all the possible list of fields using which a release strategy can be configured. To view all this fields of the structure you can use transaction code SE12.

Configuration of Release Strategy for Purchase Order

SPRO Menu Path: SPRO: Material Management -> Purchasing -> Purchase Order -> Release Procedure for Purchase Orders -> Edit Characteristic

Transaction code: CT04

we need follow the same steps except the below points:

• When you mentioned the Structure name CEKKO and field GNETW for purchase order net value, system will ask for the currency since this field is related to numbers and net value of purchase order. Please mention USD as a currency for the characteristic.
• If you have multiple criteria for different range of values, the same has to be provided in Values tab with a Multiple Value radio button tick in Basic data.
• Since there will be intervals in the purchase order values, you have to configure the characteristic to allow the values in intervals. For the same please tick the check box “Interval Values allowed” in Value assignment block in Basic data tab.

• Creating Class for Purchase order Release

  Once we have all the characteristics ready with us, we need to group them into a class. Please see the below procedure to create the class.

  SPRO Menu Path: SPRO: Material Management -> Purchasing -> Purchase Order -> Release Procedure for Purchase Orders -> Edit Class

  Transaction code: CL02.

  In main screen of CL02 transaction, provide appropriate Class Name and click on Create button. Make sure that the class type must be 032.

Define Release Strategy for Purchase Order

After the class is ready, the next is to configure the elements required in release strategy. Following elements are required.

• Release Groups
• Release Codes
• Release Indicator
• Release Strategies
• Workflow

Configure Release Codes

Use following SPRO path for configuring these elements of release strategy.

SPRO: Materials Management -> Purchasing -> Purchase Order -> Release Procedure for Purchase Orders -> Define Release Procedure for Purchase Orders.

Configure Release Indicator

Use following SPRO path for configuring these elements of release strategy.

SPRO: Materials Management -> Purchasing -> Purchase Order -> Release Procedure for Purchase Orders -> Define Release Procedure for Purchase Orders.

Configure Release Strategies

Use following SPRO path for configuring these elements of release strategy.

SPRO: Materials Management -> Purchasing -> Purchase Order -> Release Procedure for Purchase Orders -> Define Release Procedure for Purchase Orders.

Configure Workflow

Use following SPRO path for configuring workflow for the above configured release strategy.

SPRO: Materials Management -> Purchasing -> Purchase Order -> Release Procedure for Purchase Orders -> Define Release Procedure for Purchase Orders.

When you click on this option, system will give sub options to proceed further. Please select Workflow. Keep the cursor on Workflow and click on Choose button.

Regards

SAP-MM4U

SAP MM Errors and Solutions

 Error – 1

While Creating PR/PO System Generating Below Error.

Account Assignment Mandatory for Material 44067 Solution

 If we are procuring materials for direct consumption, enter one option here.

 If don’t want to enter, follow below steps to continue without error.

o Go to T Code – OMS2

o Select your material by clicking position.

o Select your material line.

o Double click on Quantity/Value Updation at left side.

o Click on position

o Enter valuation area (means Plant).

o Select Quantity & Value updation boxed – Save. 

Error – 2

While Creating Quotation System Generating Below Error.

No Currency Assigned to Vendor (Maintain Master Record) Solution

 Go to T Code XK02/MK02 to change vendor.

 Enter Vendor Number Range.

 Enter Company Code/Purchase Organization code

 Select Purchasing Data which is under Purchasing Organization

 Enter

 Select Order Currency & Terms of Payments, Save.

Error – 3

While Creating PO System Generating Below Error.

Tax Code V0 in Procedure ZTAXIN is invalid Solution

 Go to T Code OBBG

 Click on Position & Give Country Code IN

 Remove ZTAXIN in field

 Enter TAXINN in field & Save

Error – 4

While Creating Info Record System Generating Below Error.

Purchasing Organization SP01 not responsible for Plant PS01 Solution

 SPRO – IMG – Enterprise Structure – Assignment – Materials Management – Assign Purchase Organization to Plant

 Give Purchase Organization SP01 & Plant PS01, enter & save. 

Error – 5

While Creating PO System Generating Below Error.

Customization for NSEF j_1iindcus missing in table Solution

 Copy error code j_1iindcus

 Go to T Code SM31

 Enter error code in Table/view box

 Click on Maintain – go back

 Select the line & click on Copy As icon

 Enter your own company code

 Enter & Save it

Error – 6

While Creating PO System Generating Below Error.

Error in Net Price Calculation, item 000020 (please correct) Solution

 Go to T Code M/06

 Click on Positon and give PB00

 Double click on PB00 and remove Gross price & make it blank Error – 7

While Creating Material Master, while giving plants & storage location getting below error.

Company Code is not setup for materials management Solution

 Setup company code for materials.

 Go to T Code – OMSY

 Click on Position & Enter your company code.

 Check Allow Background (ABP)

 Save Error – 7

While Creating Goods Receipt getting below error.

Account Determination for entry INT EIN 3000 not possible Solution

 Go to T Code OMWD

 Enter Company Code

 Maintain Valuation Group Code 0001 & save.

Error – 8

Company code not assigned to country or country to the calculation procedure Solution

 SPRO->Financial Accounting ->General settings in financial accounting-> Tax on sales and Purchases-> Basic settings->Assign country to calculation procedure

 Click Position

 Enter Country = IN, and enter TAXUS against IN and save it. (In case if you have already your calculation procedure you can assign the same). 

Error – 9

While Creating Goods Receipt getting below error.

Posting Only Possible in Periods 2016/04 & 2016/03 Solution

 If Posting Dates in MMRV T Code & Posting Dates in MIGO T Code Screen is not same, then above error will trigger.

 We have to open current month posting periods to post goods movements in MMPV T Code.

 Go to T Code MMPV

 Give from & to company codes (same company codes).

 Give period which one we need to open, give every month & year in a sequence.

 1

o Period – 5 (month)

o Fscal Year – 2016 (year)

 2

o Period – 6 (month)

o Fscal Year – 2016 (year)

 Like above examples we need to do this till the current period (month, year)

 Execute & Enter

Error – 10

While Creating Goods Receipt getting below error. Account Determination for Entry INT EIN 0001 – 3002 not possible. Solution

 Go to T Code OBYC

 Double click on Transaction – EIN (Description – Account Description)

 Give Chart of Accounts – INT

 Click/Select any valuation class line

 Click on Copy As icon

 Change your valuation class & enter

 Save

Note – Same Process for this type of Errors with Error Transaction Codes. 

Error – 11

While Creating Goods Receipt getting below error.

Cannot Maintain/System not taking Net Price in GR Solution

 Go to T Code M/06

 Click on Position give PB00, enter

 Double click on PB00, & make below changes

 Make Condition Class – B (Prices)

 Make Calculation Type – C (Quantity)

 Make Condition Category – H (Basic Price)

 Activate Header Conditions in below on Manual Entries Tab

 Remove Pricing Procedure (RM0002) under Master Data Tab

 Save

0001

3002

379998

Error – 12

While Creating Cost Center getting below error.

Controlling Area VJCI does not have a standard hierarchy (please assign one) Solution

 Go to T Code OKKP

 Give your Code and double click on it

 Maintain H1 on CCTR STD Hierarchy field box

 Save

 Error – 13

While Creating Goods Receipt getting below error.

Date of Manufacturing not visible in Batch Tab Solution

 Go to T Code OMJX

 Go to Date of Manufacture field and make Required Field Active.

 Next go to T Code OMJ5, search your plant by selecting position.

 If plant not listed, then add plant

o SPRO --- IMG --- Materials Management --- Inventory Management & Physical Inventory --- Plant Parameters --- Enter --- Select 1st line --- Click on Copy as Icon --- Give your plant --- Enter & Save.

 Next go to T Code OMJ5, Click Plant

o Click on Position & Give your plant

o Activate BBO/Prod 

o Save.

 Go back – Click Movement Type

o Click on Position, give 561, if no value give 1

o Save

Error – 14

SAP ABAP Runtime Error Solution

 Go to T Code ST22

 Click on the Days (or) Date to Display Errors.

 After clicking that system will display errors list, if all errors are same then double click on one line.

 Click on Error Analysis on left side of screen which are under Runtime error – ABAP Developer View.

 Check and then go to T Code OX10

 Click on position and give your plant.

 Double click on plant.

o Go to Detailed Information & enter 01 in Factory Calendar Field.

o Enter & Save.

 Go to T Code SCAL

 Click on Factory Calendar and click on Either Display or Edit Icon.

 Double click on 01 & check dates and save. 

Error – 15

While giving Controlling Area by Cost Center getting below error.

Controlling Indicators (or) Controlling - RJOM1 Not Exists Solution

 Go to T Code OKKP

 Click on Position and give Controlling Area Code.

 Select your Controlling Area Line.

 On left side double click on Activate Components/ Control Indicators.

 Then go to Activate Components Field

o Select Cost Center = Component Active.

 Save

Error – 16

COIN Error

Controlling Document Number Assignment Not Possible Solution

 Go to T Code KANK

 Click on Copy As icon.

 Give Details, From = 1000 & To = Your Controlling Area Code.

 Then click on Intervals

o If it displays No Interval For Object/Sub object RX_BELEG 1501.

 Then give your Controlling Area Code in CO Area field.

 Click on Maintain Groups.

 Click on Crate Icon.

 Give Group Name (Ex – CO Number Range).

 Give From & To Numbers & Save it.

 Go back & click Ctrl + F & enter COIN.

 Then Single Click on COIN

 Click on Element/ Group

 Double click on CO Number Range & Save.

Pricing procedure Steps and Details in SAP MM

 What is Pricing procedure?

The main concept of pricing procedure is combination of different type charges, like Gross price, freight, discount, surcharges etc etc.

We use pricing procedure to determine these all conditions into one procedure, where we can find the sub-total for net amount.

To understand pricing procedure, we have to be comfortable about these below things :

1. Condition Table

2. Access Sequence

3. Condition Type

4. Condition Record.

5. Schema Group

6. Calculation Schema

7. Schema Determination

1. Condition Table

It’s a table where system saves the all fields with the combination for individual condition record. Suppose if I use Plant as condition table, then the condition record will be created for plant only.

We can use many fields in one condition tables.

2. Access Sequence

The main concept of Access sequence is, it searches condition record for condition type from condition table.

One access sequence can contain one or multiple condition tables.

Suppose we maintain 4 condition tables in one access sequence. Then when a condition type will search for condition record via this access sequence, the access sequence will allow to search only these 4 condition tables.

3. Condition Type

In simple term, condition type is used for different type of charges. Like gross price, discount, freight, rebate etc etc.

Suppose we purchase a material for price 10, we get a discount of price 2. Then the price 10 will be going to a condition type and the price 2 will be going to another condition type.

4. Condition Record

Condition record contains the record which is maintained against condition table with regards to condition type.

It can be fetched via access sequence and condition type.

Suppose we maintain a condition record against condition table (vendor) with regards to condition type. Then whenever the vendor used this condition type, the condition record will be fetched.

 5. Schema Group

It’s assigned to our vendor and Purchase Organization, It helps the vendor and purchase organization to choose pricing procedure.

One schema group will be assigned to vendor and one schema group will be assigned to Purchase organization. With this combination, system will fetch the pricing procedure.

 6. Calculation Schema

Here we maintain sequence for the pricing calculation, like gross price, discount, rebate, surcharges etc. Here we maintain the calculation for all condition types and group together all required condition types for our pricing procedure.

 7. Schema Determination

Here we maintain the pricing procedure for purchasing document. We maintain calculation schema combination of per each vendor – schema group and each purchase organization – schema group.

CONFIGURATIONS:

Step 1 : Maintain Condition Table

 T-code M/03 or Path SPRO-IMG-MM-Purchasing-Conditions-Define Price Determination Process-Maintain Condition Table-Create condition table.

The initial screen will be appear for create condition table.

Step 2 : Maintain Access Sequence

 T-code M/07 or path SPRO-IMG-MM-Purchasing-Conditions-Define Price Determination Process-Define Access Sequences.

Step 3 : Maintain Condition Type

T-code M/06 or path SPRO-IMG-MM-Purchasing-Conditions-Define Price Determination Process-Define Condition Types-Define Condition Type

Step 4 : Maintain Calculation Schema

T-code M/08 or path SPRO-IMG-MM-Purchasing-Conditions-Define Price Determination Process-Define Calculation Schema. This is very very important part in pricing procedure.

Step 5 : Maintain Schema Group for Vendor

T-code OMFN or path SPRO-IMG-MM-Purchasing-Conditions-Define Price Determination Process-Define Schema Group-Schema Groups: Vendor

Step 6 : Maintain Schema Groups for Purchasing Organizations

T-code OMFM or path SPRO-IMG-MM-Purchasing-Conditions-Define Price Determination Process-Define Schema Group-Schema Groups for Purchasing Organizations

Step 7 : Assign Schema Group to Purchasing Organization

T-code OMFP or path SPRO-IMG-MM-Purchasing-Conditions-Define Price Determination Process-Define Schema Group-Assignment of Schema Group to Purchasing Organization

Step 8 : Maintain Schema Determination

T-code OMFO or path SPRO-IMG-MM-Purchasing-Conditions-Define Price Determination Process-Define Schema Determination-Determine Calculation Schema for Standard Purchase Orders

Step 8 : Assign Schema group to Vendor

When you are going to create a vendor from XK01 in purchasing data you will find “Schema Group, Vendor”

Regards

SAP-MM4U