Payment Terms

Payment term is a part of accounts receivable component that helps you keep track of your receivables more effectively.

They play a vital role in identifying the exact receivable amounts as on a particular date

Background
Any business operates as you very well know on revenue. The revenue  is what helps any business grow and prosper exponentially. Inability to grow revenue hampers business. This must be true, but apart from revenue, there is one more thing that is as important as revenue for any business, COLLECTION. It means, it is not just important to sell any product, but also to recover money from the customer.

The business, everyday, lures its customers by throwing many offers / schemes for buying more and more, but if the money is not collected against this sale, then the business may face a big cash crunch. Hence, it becomes utmost important to get money from customers in time and Payment terms help us in this matter.

Click here to know more.

Field Status in Customer Master Data

Field status plays a very vital role in customer master data.

The Field Status is divided into following  statuses

Suppressed
Mandatory
Display
Optional

The statuses are maintained at following levels

Company Code
Account Group
Activity


All the fields are verified by the system based on the above and the combination is evaluated and accordingly decides about the field.

For more information on Field Status click HERE

Tags#

Field Status in Customer Master, SAP Field Status in Accounts Receivable

Customer Account Group

Account Group in Accounts Receivable component of Finance Module plays important role as far as Customer Masters are concerned.

Background
Each master record has a unique number assigned to it. This number is needed identify the customer and also to call up the master record or to post transactions. This number plays very important role and has lot of significance.


Importance
Now when we have understood the importance of customer numbering, we must also accept the fact that in practical scenario the business can have multiple types of customers. For e.g. Domestic Customers, Export Customers etc. With the different nature of customers, it becomes important to provide different number range for both the customers. 

Use
The Account Groups are used to determine:

• Interval for the account numbers
• Whether the number is assigned internally by the system or externally by the user (type of number assignment)
• Whether it is a one-time account
• Which fields will be displayed, editable, suppressed or mandatory while creating/changing Customer Master Data

The configuration for Customer Account Group is divided into:

• Definition
• Number Range Maintenance
• Assignment of Number Range

Definition

IMG PathFinancial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Master Data > Preparations for Creating Customer Master Data > Define Account Groups with Screen Layout (Customers)

Fields in the Account Group

Account Group
This is 4 digit code that identifies the account group

Meaning
Description of the account group, for e.g. Domestic Customer, Export Customer

One Time Account
Select this option if you want all the masters under this account group to be treated as one time accounts

Field Status
This portion contains three parts viz. General Data, Company Code Data and Sales Data. The field status can be maintained for all the fields relevant for the account group here.


Number Range Maintenance
IMG PathFinancial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Master Data > Preparations for Creating Customer Master Data > Create Number Ranges for Customer Accounts


In this configuration, we maintain the various number ranges required for the customer master data as per the account groups to be created. 

This table contains:
Range Number
From Number
To Number
Number Status


Assignment of Number Range
IMG PathFinancial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Master Data > Preparations for Creating Customer Master Data > Assign Number Ranges to Customer Account Groups

In this configuration, we assign the Number Range to Customer Account Group.

 
Note:

The separate numbering of  will not just help in identifying the type of customer looking at the number, but also helps in many reports where we can enter ranges for executing report.

Tags#
SAP Number range in Customer Master, Customer Account Group Number Range, Assign number range to customer account group

FI-MM Integration (OBYC) - Part II

So we are back, as promised in the last post, we will go through the majorly used transactions in MM-FI Integration

Once again just for your information, Transaction Code: OBYC

Given below  is the information of some important Transactions in MM-FI Integration

Transaction	G/L Type	Remarks
BSV	P&L	Changes in stocks are posted in Inventory Management at the time goods receipts are recorded or subsequent adjustments made with regard to subcontract orders.
BSX	B/S	This transaction is used for all postings to stock accounts. Such postings are effected, for example: -        In inventory management in the case of goods receipts to own stock and goods issues from own stock -        In invoice verification, if price differences occur in connection with incoming invoices for materials valuated at moving average price and there is adequate stock coverage -        In order settlement, if the order is assigned to a material with moving average price and the actual costs at the time of settlement vary from the actual costs at the time of goods receipt Take care to ensure that: -        A stock account is not used for any transaction other than BSX -        Postings are not made to the account manually -        The account is not changed in the productive system before all stock has been booked out of it Otherwise differences would arise between the total stock value of the material master records and the balance on the stock account.
EIN/EKG/ FRE	P&L	These transactions are used only if Purchase Account Management is active in the company code.
FR1/FR2/ FR3/FR4	P&L	Freight clearing (FR1), provision for freight charges (FR2), customs duty clearing (FR3), provision for customs duty (FR4) These transactions are used to post delivery costs (incidental procurement costs) in the case of goods receipts against purchase orders and incoming invoices. Which transaction is used for which delivery costs depends on the condition types defined in the purchase order. You can also enter your own transactions for delivery costs in condition types.
FRL	P&L	This transaction is used to record the charges levied by the vendor for the subcontracting related to the material. Note: The G/L account assigned here should not be created as Cost Element
PRD	P&L	Price Differences Price differences arise for materials valuated at standard price in the case of all movements and invoices with a value that differs from the standard price. Examples: goods receipts against purchase orders (if the PO price differs from the standard priced), goods issues in respect of which an external amount is entered, invoices (if the invoice price differs from the PO price and the standard price). Price differences can also arise in the case of materials with moving average price if there is not enough stock to cover the invoiced quantity. In the case of goods movements in the negative range, the moving average price is not changed. Instead, any price differences arising are posted to a price difference account. Depending on the settings for the posting rules for transaction/event key PRD, it is possible to work with or without account modification. If you use account modification, the following modifications are available in the standard system: None For goods and invoice receipts against purchase orders PRF For goods receipts against production orders and order settlement (Variance) PRA For goods issues and other movements PRU For transfer postings (price differences in the case of external amounts)
UMB	P&L	Revenue/expense from revaluation This transaction/event key is used both in Inventory Management and in Invoice Verification if the standard price of a material has been changed and a movement or an invoice is posted to the previous period (at the previous price).
WRX	B/S	GR/IR clearing Postings to the GR/IR clearing account occur in the case of goods and invoice receipts against purchase orders. Balances in local currency only indicator for the GR/IR clearing account must be set in order to enable the open items to be cleared.

Here I have purposely left the Transaction GBB which contains multiple account modifiers and requires a separate post to explain the same properly.

Tags#

OBYC, MM-FI Integration, Account Modifier in OBYC, Valuation Modifier in G/L Account determination in MM, Material Management General Ledger Integration, Transactions in OBYC

OBYC-BSV, OBYC-BSX, OBYC-EIN EKG, OBYC- FR1 FR2, OBYC-FRL, OBYC-PRD, Production Order Variance G/L, Automatic G/L Account determination for Material Management (MM), OBYC-Revaluation, 

FI-MM Integration (OBYC) - Part I

Definition

When we speak about SAP, we must also talk about integration as we all are familiar with the integrated nature of SAP. Hence, today we will discuss about the integration of Material Management (MM) with Finance (FI) module.

In order to understand the integration, we first need to find answers for some questions:

What are automatic postings in MM-FI Integration?

Postings are made to G/L accounts automatically in the case of Invoice Verification and Inventory Management transactions relevant to Financial and Cost Accounting.

Example: Posting lines are created in the following accounts in the case of a goods issue for a cost center:

o   Stock account
o   Consumption account

How does the system find the relevant accounts?

When entering the goods movement, the user does not have to enter a G/L account, since the ERP system automatically finds the accounts to which postings are to be made using the following data:

o   Chart of accounts of the company code

If the user enters a company code or a plant when entering a transaction, the ERP system determines the chart of accounts which is valid for the company code. You must define the automatic account determination individually for each chart of accounts.

o   Valuation grouping code of the valuation area

If the automatic account determination within a chart of accounts is to run differently for certain company codes or plants (valuation areas), assign different valuation grouping codes to these valuation areas. You must define the automatic account determination individually for every valuation grouping code within a chart of accounts. It applies to all valuation areas which are assigned to this valuation grouping code. If the user enters a company code or a plant when entering a transaction, the system determines the valuation area and the valuation grouping code.

o   Transaction/event key (internal processing key)

Posting transactions are predefined for those inventory management and invoice verification transactions relevant to accounting. Posting records, which are generalized in the value string, are assigned to each relevant movement type in inventory management and each transaction in invoice verification. These contain keys for the relevant posting transaction (for example, inventory posting and consumption posting) instead of actual G/L account numbers. You do not have to define these transaction keys, they are determined automatically from the transaction (invoice verification) or the movement type (inventory management). All you have to do is assign the relevant G/L account to each posting transaction.

o   Account grouping (for offsetting entries, consignment liabilities, and price diff.)

Since the posting transaction "Offsetting entry for inventory posting" is used for different transactions (for example, goods issue, scrapping, physical inventory), which are assigned to different accounts (for example, consumption account, scrapping, expense/income from inventory differences), it is necessary to divide the posting transaction according to a further key: account grouping code.

An account grouping is assigned to each movement type in inventory management which uses the posting transaction "Offsetting entry for inventory posting". Under the posting transaction "Offsetting entry for inventory posting", you must assign G/L accounts for every account grouping, that is, assign G/L accounts. If you wish to post price differences to different price difference accounts in the case of goods receipts for purchase orders, goods receipts for orders, or other movements, you can define different account grouping codes for the transaction key. Using the account grouping, you can also have different accounts for consignment liabilities and pipeline liabilities.

o   Valuation class of material

The valuation class allows you to define automatic account determination that is dependent on the material. for example: you post a goods receipt of a raw material to a different stock account than if the goods receipt were for trading goods, even though the user enters the same transaction for both materials. You can achieve this by assigning different valuation classes to the materials and by assigning different G/L accounts to the posting transaction for every valuation class. If you do not want to differentiate according to valuation classes you do not have to maintain a valuation class for a transaction.

Background

As said above, we all know that SAP is highly integrated and creates all the financial documents automatically. In order to automate the financial posting related to Material Management, it becomes very important to map the G/L Accounts to appropriate transactions. The G/L account mapping in this case has to cater a lot of transactions, please keep reading for complete information.

Transaction Code for this integration is OBYC

IMG Path: Materials Management > Valuation and Account Assignment > Account Determination > Account Determination Without Wizard > Configure Automatic Postings

Once you type this code and press enter or use the IMG Path, system will navigate you to the screen which contains a list of Transactions. Before going ahead with individual transactions, lets understand first three radio buttons available in every transaction.

Posting key Button

This button contains the Posting Key that will be used to Debit/Credit the account when that particular transaction is executed.

Rules Button 

This button contains some important options, Valuation Modifier and Valuation Class.

Valuation Modifier
Select this radio button to enable assignment of different G/L accounts for different plants by activating the field Valuation Modifier for Account assignment.

Valuation ClassSelect this radio button to enable assignment of different G/L accounts for different valuation classes by activating the field Valuation Class for Account assignment. In case of transactions like freight where one G/L account is to be assigned to all valuation classes, do not activate this radio button. This will save your time of assigning same G/L account too all the valuation classes.

Select the appropriate option as per your requirement and proceed further.

Accounts Button

This is the button where all the G/L accounts are to be assigned for FI-MM Integration. This button contains, the options to enter G/L accounts based on the radio buttons selection under Rules button.

Note: activation/deactivation of any of the above options has to be done very very carefully. In case of transactions where G/L accounts are already assigned, activation/deactivation of these resets the assigned G/L accounts. Hence, if any such thing is to be done, first note down the already assigned G/L accounts.

Once all the above is done, we will discuss about the mostly use transactions in this integration in the next post.

Please keep in touch..................

Tags#
OBYC, FI-MM Integration, Accounts Button in OBYC, Rules button in OBYC, Posting Key Button in OBYC, G/L Account in OBYC, G/L Account in MM-FI Integration