Q)Plz tell me the inter-relation between SD,MM and FICO module. How they integrated in SAP. How they interact with other modules.Which fields are important for this purpose.?

A) FI MM settings are maintained in transaction code OBYC. Within these

there are various transaction keys to be maintained like BSX, WRX,

GBB, PRD etc. In each of these transaction keys you specify the GL

accounts which gets automatically passed at the time of entry.

Few examples could be: BSX- Stands for Inventory Posting Debit

GBB-Standsfor Goods Issue/Scrapping/delivery

of goods etc

PRD- Stands for Price Differences

FI-MM Integration is based on the following:

§         Movement Types

§         Valuation Class

§         Transaction Keys

§         Material Type

The Movement Type is the ‘classification key’ indicating the type of material movement (for example, goods receipt, goods issue, physical stock transfer). The movement type enables the system to find pre-defined posting rules determining how the accounts in FI (stock and consumption accounts) are to be posted and how the stock fields in the material master record are to be updated.

The Valuation Class refers to the assignment of a material to a group of GL accounts. Along with other factors, the valuation class determines the GL accounts that are updated as a result of a valuation-relevant transaction or event, such as a goods movement. The valuation class makes it possible to:

§         Post the stock values of materials of the same material type to different GL accounts.

§         Post the stock values of materials of different material types to the same GL account.

The Transaction Key (also known as the ‘Event Key or Process Key’) allows users to differentiate between various transactions and events (such as physical inventory transactions and goods movements) that occur within the area of inventory management. The transaction/event type controls the filing/storage of documents and the assignment of document numbers.

The Material Type groups together materials with the same basic attributes, for example, raw materials, semi-finished products, or finished products. When creating a material master record, you must assign the material to a material type. The material type determines:

§         Whether the material is intended for a specific purpose, for example, as a Configurable Material or Process Material.

§         Whether the material number can be assigned internally or externally.

§         The Number Range from which the material number is drawn.

§         Which screens appear and in what sequence.

§         Which user department data you may enter.

§         What Procurement Type the material has; that is, whether it is manufactured in-house or procured externally, or both.

Together with the plant, the material type determines the material’s inventory management requirement, that is:

§         Whether changes in quantity are updated in the material master record.

Whether changes in value are also updated in the stock accounts in financial accounting.

FI-SD Integration

The FI-SD account determination happens through an access sequence.

The system goes about finding accounts from more specific criteria to

less specific criteria.

This is the sequence it would follow:

1) It will first access and look for the combination of Customer

accounts assignment grp/ Material account assignment grp/

Account key.

2) If it does not find the accounts for the first combination it will look for Customer account assignment grp and account key combination.

3) Furthermore, if it does not find accounts for the first 2 criteria’s

then it will look for Material account assignment grp/Account key.

4) If it does not find accounts for the all earlier criteria’s then finally it will look for Account key and assign the GL code.

Thus posting of Sales Invoices into FI are effected on the basis of a

combination of Sales organization, Account type, or Customer and

Material Account assignment groups and following are the options

available.

a. Customer AAG/Material AAG/Account type

b. Material AAG/Account type

c. Customer AAG/Account type

For each of this option you can define a Gl account. Thus the system

uses this gl account to automatically pass the entries.