account key assignment in sap sd

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Revenue Account Determination in SAP SD: A Comprehensive Guide

Revenue Account Determination in SAP SD , is a crucial integration point between the SD and Financial modules. It ensures that when a billing document is created, the system accurately identifies and posts revenues, taxes, and sales deductions to the appropriate accounts. This process, deeply rooted in the condition technique of SAP, requires a collaborative effort between the SD and Finance teams. Here’s a step-by-step guide to understanding and implementing revenue account determination in SAP SD .

Table of Contents

Revenue Account Determination in SAP SD

Revenue Account Determination in SAP SD involves 6 configuration steps they are

• Check Master Data Relevant for Account Assignment
• Define Dependencies for Revenue Account Determination
• Access Sequence and Account Determination Types
• Define and Assign Account Determination Procedure
• Define and Assign Account Keys
• Assign G/L Accounts

Step 1: Master Data Relevance in Account Assignment

Path : SPRO -> Sales and Distribution -> Basic Functions -> Account assignment/Costing -> Revenue Account Determination -> Check Master Data Relevant for Account Assignment.

The first step involves checking the master data relevant for account assignment. This includes:

• Material Account Assignment Group : This groups materials to post related revenues into specific accounts. For instance, revenues from laptop sales might be posted to one account, while desktop sales go to another. This grouping is maintained in the Material Master ( MM03 ) under the Sales org data 2 view.

• Customer Account Assignment Group : Similar to materials, customers are grouped to direct revenues into designated accounts. This could differentiate between domestic and international customer revenues. This grouping is found in the Customer master ( VD03) under the Sales area view/Billing tab.

Step 2: Defining Dependencies

Path : SPRO -> Sales and Distribution -> Basic Functions -> Account assignment/Costing -> Revenue Account Determination -> Define dependencies of Revenue account determination.

The second step is about defining dependencies for revenue account determination. This involves creating field catalogs and condition tables , which are essential for setting up the account determination tables.

Step 3: Access Sequence and Account Determination Types

Path : SPRO -> Sales and Distribution -> Basic Functions -> Account assignment/Costing -> Revenue Account Determination -> Define Access Sequences And Account Determination Types.

This step focuses on setting up the access sequence for account determination and defining the account determination types. The access sequence dictates the order in which tables are accessed, while the account determination type functions like a condition type in the pricing procedure.

Detailed Configuration Steps

Step 4: account determination procedure.

Path : SPRO -> Sales and Distribution -> Basic Functions -> Account assignment/Costing -> Revenue Account Determination -> Define and Assign account determination procedure.

Step 5: Account Keys Definition and Assignment

Path : SPRO -> Sales and Distribution -> Basic Functions -> Account assignment/Costing -> Revenue Account Determination -> Define and Assign Account keys

Account keys play a pivotal role in account determination. They are linked to pricing condition types and are critical in linking the pricing procedure with the account key. Different pricing conditions have distinct account keys, like “ERS” for discounts, “ERL” for price, and “MWS” for taxes.

Step 6: Assigning G/L Accounts

Path : SPRO -> Sales and Distribution -> Basic Functions -> Account assignment/Costing -> Revenue Account Determination -> Assign G/L accounts.

The final step involves assigning General Ledger (G/L) accounts. This is akin to maintaining condition records for pricing condition types. The G/L account determination is a combination of the application, account determination condition type, chart of accounts, and account keys

Role of Account Keys in Pricing Procedure

Learn about role of account keys in pricing procedure here.

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• Role of Account Keys in SAP Pricing Procedure
• How to configure material determination in SAP?
• SAP SD Partner Determination: Configuration Guide
• Exploring SD Pricing in SAP -Detailed Explaination
• How Customer Account Groups in SAP SD are created | Saphanatutor.com

SAP SD FI Integration and Account Determination

SAP Sales & Distribution deals with sales to customers. So it a process where sales is made to customer against sales order and revenue is realized. That,s why SD is also called O2C (Order to Cash).

Table of Contents

1. Preparation for SD-FI Integration

We will create the sales order first . Then on the basis of sales order, we will create outbound delivery. At the time of goods issue to outbound delivery, system posts the respective amount to the corresponding GL account. This is SD-FI integration area.

1.1 Creation of Sales Order & Outbound Delivery

In the below post the process of sales order creation, Outbound delivery creation & subsequently PGI (Post Goods Issue) has been explained step by step.

2. SD-FI Integration starts From PGI of OBD

In the above post we have explained that since SD-FI configuration is still not done, so as soon as we tried to post goods issue to outbound delivery, system throws the below error.

2.1 Accounting entries at PGI

At the time of goods issue , stock is lessened by the quantity & value equal to the quantity & value of goods issue.

The offsetting entry is done on COGS (Cost of Goods Sold) account

As soon as we tried to post goods issue system throws the error due to absence of SD-FI integration configuration

2.1.1 First Error M8147 -Account determination for entry PPIN GBB not possible

This error is coming because of absence of configuration of inventory offsetting. We need to configure account determination of VAX key

VAX: for goods issues for sales orders without account assignment object (the account is not a cost element)

COGS account at the time of goods issue is determined based on this key.

For our car business GBB-VAX posting is done on GL 550200000 (PPIN-Cost of Goods Sold (Trade w/o Cost Element).

Please click HERE to check the creation of GL 550200000 step by step

Start OBYC and double click on GBB

3. Now try to post Goods Issue again

After GBB VAX configuration now try to post PGI again

3.1 Error NR751

3.1.1 Number Range 49 Maintenance for object RF_BELEG

Try PGI now

PGI is done successfully this time

Material document & accounting document is generated

3.2 FI Postings (SD-FI Integration OBD PGI Part)

System creates a material document to update the quantity in the Plant/SLOC. On the back of it, system generates an accounting document to post the values on the respective GL accounts.

3.2.1 Reminder -Check the FI document above in light of the Material Pricing

Check the material price i the material master “Accounting 1” view.

4. Account Determination in SD

Account determination in SD is also called revenue account determination

We have configured our own customized pricing procedure in the post below

The Ultimate SAP S4 HANA Sales Pricing Guide with FAQ

Account Keys (for example ERL, ERS, MWS etc. in the above screenshot) are assigned to the different conditions in the pricing procedures.

4.1 Account Assignment Groups for Materials

Account assignment groups are used to classify a material as a product, service, or equipment for the purpose of GL account differentiation.

SPRO –> IMG –> Sales and Distribution –> Basic Functions –> Account Assignment/Costing –> Revenue Account Determination –> Check Master Data Relevant For Account Assignment –> Define Account Assignment Groups for Materials

We have defined below account assignment groups for materials.

Account keys are assigned to the material master record on the material sales org 2 view.

4.2 Account Assignment Groups for Customers

Account assignment groups for customers are useful if we want to post let,s say domestic sales revenue into different account while international sales revenue should be posted into different account.

SPRO –> IMG –> Sales and Distribution –> Basic Functions –> Account Assignment/Costing –> Revenue Account Determination –> Check Master Data Relevant For Account Assignment –> Define Account Assignment Groups for Customers

4.3 Define Access Sequences and Account Determination Types

The Standard SAP has two condition types: KOFI (account determination) and KOFK (account determination with CO).

For our car business we will use the standard condition type KOFI, which uses the access sequence with the key KOFI.

The KOFI access sequence has five condition tables assigned to it

S PRO –> IMG –> Sales and Distribution –> Basic Functions –> Account Assignment/Costing –> Revenue Account Determination –> Define Access Sequences and Account Determination Types –> Define Access Sequences for Revenue Account Determination

S PRO –> IMG –> Sales and Distribution –> Basic Functions –> Account Assignment/Costing –> Revenue Account Determination –> Define Access Sequences and Account Determination Types –> Define Account Determination Types

We can now allocate our chosen access sequence KOFI to the relevant account determination type (condition type) of our pricing procedure.

4.4 Define & Assign Account Determination Procedures

Here we define account determination procedures and allocate them to the billing types.

In an account determination procedure, we define the sequence in which the system should read the account determination types (condition types).

S PRO –> IMG –> Sales and Distribution –> Basic Functions –> Account Assignment/Costing –> Revenue Account Determination –> Define And Assign Account Determination Procedures –> Define account determination procedure

S PRO –> IMG –> Sales and Distribution –> Basic Functions –> Account Assignment/Costing –> Revenue Account Determination –> Define And Assign Account Determination Procedures –> Assign Account Determination Procedure

Here we will assign our account determination procedure YPPIN0 to our customized billing type YF2

Please click HERE to check the configuration of our billing type “YF2”

4.5 Define And Assign Account Keys

We define account keys here and allocate them to the condition types in the pricing procedures. We have already defined and assigned account keys to our pricing procedure PPIN01

S PRO –> IMG –> Sales and Distribution –> Basic Functions –> Account Assignment/Costing –> Revenue Account Determination –> Define And Assign Account Keys –> Assign Account Keys

With the account keys, we group together similar accounts in financial accounting.

Using the account key, system finds the relevant GL account.

4.6 Assign G/L Accounts (VKOA)

Here based on the access sequence of tables for KOFI, we will select the table “001” Cust.Grp/MaterialGrp/AcctKey. Here we will assign all the relevant GL accounts.

Below are the components for GL assignment

S PRO –> IMG –> Sales and Distribution –> Basic Functions –> Account Assignment/Costing –> Revenue Account Determination –> Assign G/L Accounts

We have created GL account corresponding to the every key of our pricing determination.

Now assign all the three GL accounts to the respective keys

4.7 Assign G/L Accounts For Tax Posting

Here we first create the tax account for output tax and assign this to the respective key (MWS)

GL 222000000 – PPIN-Output Tax (MWS) will be used to post tax amount.

Please see HERE to see the step by step GL 222000000 account creation

Assign the GL for tax posting as per the below

SPRO –> IMG –> Financial Accounting Global Settings –> Tax on Sales/Purchases –> Posting –> Define Tax Accounts

4.8 Tax Accounts Keys MW1, MW2 & MW3

Since tax keys MW1, MW2 & MW3 are given in our output tax determination schema so system will post the tax amounts on the GL accounts corresponding to these three keys

We have given GL 222000000 for all the three tax keys

5. Create Billing

now the next part of the O2C cycle is to post the billing. At the time of billing system will post the respective values onto the determined & assigned GL accounts as per the revenue account determination procedure.

start VF01 and input our Outbound delivery number

Create the billing and click on

Billing Documents –> Release to Accounting

system throws the below error

5.1 Error KI235 -GL requires an account assignment relevant to cost accounting

system throws the below error.

To resolve this error we need to activate profit center accounting as well as cost center accounting for our controlling area.

5.1.1 Profit Center Accounting

First we need to set our controlling area PPIN to set up Profit Center Accounting.

Then we need to maintain the global settings for Profit Center Accounting in our controlling area PPIN.

5.1.1.1 Controlling Area setting for Profit Center Accounting

We will set our controlling area PPIN

SPRO –> IMG –> Controlling –> Profit Center Accounting –> Profit Center Accounting –> Set Controlling Area

5.1.1.2 Maintain Controlling Area setting

Maintain the PPIN controlling area setting as below

SPRO –> IMG –> Controlling –> Profit Center Accounting –> Controlling Area Settings–> Maintain Controlling Area Settings

5.1.2 Create Profit Center

Run KE51 and created profit center “SALES”

5.1.3 Cost Center Accounting

we need to first activate cost center accounting on our controlling area.

SPRO –> IMG –> Controlling –> Cost Center Accounting –> Activate Cost Center Accounting in Controlling Area

activate for our controlling area PPIN

5.3.1.1 Create Cost Center

Start KS01 and create cost center “Cost”

5.2 Error KI235 -Resolution (OKB9)

Since now we have created profit center & cost center so assign them to the respective cost element under OKB9 to resolve this error

6. Create Billing – Retry after Error Resolution

Start VF01 and input outbound delivery number and press enter

Billing document is successfully posted to accounting

6.1 Accounting Entries at Billing

Billing is now created and released to accounting

Display accounting document

SD-FI integration completes here.

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Further reading.

Configure SAP S4 HANA SD Output Tax in 6 Quick Steps

An Ultimate guide to Sales Order in SAP S4 HANA SD

Configure SAP S4 HANA Sales Documents in 10 Minutes

Setting Up Account Determination

After completing this lesson, you will be able to use the control options for account determination .

Account Determination Influencing Factors

The system automatically determines the financial accounts that are automatically posted with the goods movement.

When a goods movement is recorded, the system posts to the stock account of the material and to one or more offsetting accounts depending on the goods movement. This automatic account determination depends on various factors, such as the chart of accounts, the plant (or valuation area), but also on the material.

The following table roughly represents the account determination logic for goods movements with the determining factors.

It shows an example for a simple goods issue to a cost center.

Let's look at the influencing factors one by one.

The type of goods movement

Depending on whether you are posting a goods issue to a cost center or a goods receipt with reference to a purchase order, for example, different posting schemas result:

• A goods receipt with reference to a purchase order results in at least a debit posting to an inventory account, possibly another debit posting to a price difference account if the material is valuated at standard price, and a credit posting to a GR/IR clearing account that is cleared when the invoice is posted.
• A goods issue to a cost center results in at least one credit posting to an inventory account and one debit posting to a cost account.

The posting schema, that is the possible posting line types to be generated, is assigned to the movement type. You can view it in the movement type configuration.

Start the following interactive demo to learn more about the posting schema depending on the type of goods movement.

In the previous demo, we learned that when a goods issue is posted to a cost center, in addition to the stock account (transaction key BSX), an offsetting account is also updated, which is further specified by transaction key GBB plus account modification VBR. This explains columns 2 and 3 in the table above.

• The valuation area

The valuation area is a logical organizational unit that structures a company for the purpose of uniform and complete valuation of material stocks. In SAP S/4HANA Cloud Public Edition, each plant represents a valuation area. 

This means that you can basically control automatic account determination per plant.  You assign a valuation grouping code to each plant to group plants that should be treated the same for account determination. The valuation grouping code is an account determination key (see column 4 of the table above).

The following image shows the Group Together Valuation Areas configuration activity where you assign a valuation grouping code to plants. Here, you can see that valuation grouping code 0001 is assigned to all plants.

The product

The following video explains how account determination is affected by the valuation class in the material master record.

To learn how to create and assign valuation classes start the following interactive demo.

To learn how to create an account category reference and assign it to a material type, start the following interactive demo.

We have reviewed each of the following  factors that influence account determination:

• The movement type
• The material

Account Determination Configuration

Automatic account determination configuration activity.

Now that we have examined the factors that influence account determination, start the following demo to learn how you can define accounts for certain combinations of factors that the system can automatically determine for goods movements.

In practice, account determination for goods movements is a joint task of the logistics/supply chain and finance teams. An important contribution of the supply chain consultants is to understand the interrelationships and influencing factors so that the finance people can assign the correct accounts.

Log in to track your progress & complete quizzes

2491710 - Fields of the "Costing" and "Account assignment” part are grayed out when creating new class in OVZG

When user tries to creates new class in OVZG, the most fields of the "Costing" and "Account assignment” part are grayed out. So user cannot input anything to those fields during creation.

Environment

• Sales And Distribution (SD)
• SAP ERP Central Component
• SAP Enhancement package for SAP ERP
• SAP Enhancement package for SAP ERP, version for SAP HANA
• SAP S/4HANA

Results Analysis Key,SPRO, OVZG, costing, Account assignment, new class, new Entries, gray out, can not be changed, Requirements Classes, requirement class , KBA , SD-SLS , Sales , How To

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