Account Determination – FI – MM integration on Fiori App

This series of articles Accounting determination on Fiori is divided into three parts, 1.      Financial Accounting (FI-GL Integration)

2.      Material Management (FI-MM Integration)

3.      Sales and Distribution (FI-SD Integration)

Here we go through the integration FI with MM steps on Fiori App.

  1. FI Integration with MM:

I have explained FI-MM integration in my webpage

Material Management is the Costing unit for Org, they spent money so each and every activity which spent money should be captured by the Finance People.

Material Type:

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

ROH: Raw materials are always procured externally and then processed. Since raw materials cannot be sold, a material master record of this material type contains no sales data.

HALB: Semifinished products can be procured externally (sub-contracting) as well as manufactured in-house. They are then processed by the company. A material master record of this material type can contain both purchasing and work scheduling data.

FERT: Finished products are produced by the company itself. Since they cannot be ordered by Purchasing, a material master record of this material type does not contain purchasing data.

Selent Material Management to do OBYC accounting determination on Fiori app.

Transaction key:

Used to control the storage or filing of documents & assignment of documents.Used to differentiate b/w various transactions such as goods movement that occur in inventory.

BSX – Stock Posting / Inventory Posting

PRD – Price difference

GBB – Offsetting entry for stock posting

WRX – GR/IR Clearing

FRI – Freight Clearing

When GR is posted :

When you receive Goods you CAN NOT make the following entry

Inventory A/c Dr

To Vendor A/c

because, some of the goods you have received may be damaged or may not be upto the mark or for any other reason goods may reject, so before posting it to Vendor A/c we keep it in separate place till we verify the goods. And the actual entry will be:

Inventory A/c Dr (Transaction Key BSX @ OBYC)

To GR/IR A/c (Transaction Key WRX @ OBYC)

Here the goods received is Debited to inventory and Credited to a temporary A/c i.e., GR/IR a/c

When IR is posted

Here you will post the invoice after you are satisfied with the goods received, the entry will be

GR/IR A/c Dr

To Vendor A/c

Now the goods are moved from GR/IR A/c and Vendor is Credited. Now you got the final entry of Goods to Vendor Account i.e.

Inventory A/c Dr

To Vendor A/c

i.e., Inventory A/c was Debited and Vendor A/c was Credit and GR/IR A/c is Dr and also Credited hence its balance became ‘Zero’, and it has to be Zero always.


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