The concept of SAP MM-FI Integration.

SAP Material Management and SAP Finance (MM-FI) integrate to ensure that every procurement transaction is captured in the financial accounts. When you create a purchase order in SAP MM, financial postings in SAP FI are triggered resulting in automatic update in the account payable. Example, when you create a purchase order, commitments are generated in the financial accounts, and when the goods are received, the system automatically updates the accounts payable and inventory accounts in FI.

System will identify the movement type based on business transaction created.

Based on this movement type the system will automatically determines the transaction key and general modifier to posting the accounting documents.

System searches for combination that we already maintained in OBYC (valuation modifier, general modifier, valuation class and mapped GL account).

Terms to Note

Valuation class

Valuation class will help in automatic account determination, and it is updated in material master record.

Material master record under accounting “view1” tab can be found in the valuation class field.

Multiple material master can be assigned to one valuation class

Valuation modifier: A grouping of valuation areas is known as a valuation modifier.

Valuation area: This can be at either the plant level or company code. It is the level at which material is valued.

General Modifier: Only three transaction keys are having Account modifiers in standard SAP.

The transaction keys are GBB, PRD, KON.

Transaction/Event key: This is needed when you have to differentiate between various transactions such as goods movement that occur in inventory and control the storage or filing of documents & assignment of document

Movement Types: A function that allows the system to discover predefined posting rules determining how accounts in a financial accounting system should be posted and to update stock fields in a master data.