FI -sd integration | SCN
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6 Replies Latest reply: 20 Feb, 2008 6:59 AM by Rakesh Singh Chauhan
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tulsi jiddimani
19 Feb, 2008 11:04 AM
FI -sd integration
This question has been Answered.
Dear all,
Can you plz explain me in detail regarding FI- SD integration
Regards,
Tulsi
Correct Answer
by Allabaqsh Patil on Feb 19, 2008 11:32 AM
Hi Tulsi,
Account Determination is an important integration between SD & FICO modules. whenever a sale
takes place, the system automatically posts the various prices and discounts and freights to the
respective GL accounts through the account keys.
The account key is assigned to the respective GL account. Also in the pricing procedure we have a
column called as account key(second last column). There we assign the account key. For eg., in Std
SAP for basic price we have acct key ERL, for discounts ERS, for Output tax MWS, for freight ERF,
etc. These account keys are basically defined by the FICO consultant and then the SD consultant
assigns the respective account keys against the respective condition type in the pricing procedure.
The customer group is nothing but the grouping of various customers like wholesaler, retailer,
subsidairies, etc. This is basically useful while maintaining pricing like for X group basic price is
10Rs, for Y group it is 15Rs. like that. Similarly material group is a grouping of materials like Ball
pens, ink pens, gell pens, etc.
When you create the condition table and select these fields and save it and when you assign this
table to your access sequence, the system searches for the condition record according to this key
combination. For that you have to maintain the condition record in VK11.
Now you are done with pricing. you create the sales order. delivery and invoice. Now for the system
to generate an accounting document when you save the invoice in VF01 you have to maintain the
account determination correctly otherwise the system will give an error - "error in account
determination."
For doing account determination you have to go to :
IMG-sales & distribution-basic functions-account assignmentcosting-revenue account determination.
In this you first have to maintain the customer account assignment group and material account
assignment group. This group for the customer means for which customer whether domestic or
foreign etc. For material whether finished, semi finished, raw material, etc. You can also maintain as
per name of the division.
This account assignment group you have to assign in customer master as well as material master.
In customer master (XD01) -sales area data- billing you have customer acct asst group, make an
entry here. In material master (MM01)-sales:sales org.2 you have account asst group, make a
proper entry here also.
Note: Regarding condition types KOFI & KOFK
KOFK: KOFK is used when ever we are posting the document where a cost is involved that can be
checked via the Requirment class in the Sales order in the Procurment step. In the requirements
class there is "E" in account assignment category & hence you have to use KOFK.
KOFI: If there is no "E" in the account assignment category then use KOFI.
Now in the above IMG path only you have access sequence, condition type, procedure. maintain
everything and assign properly the procedure to the billing document type.
Define the account keys & assign them properly in the pricing procedure.
Now go to transaction code VKOA. You will see 5 tables. first is customer group/material group/acct
key. When you double click on this it will show as following:
http://scn.sap.com/thread/747848
11-10-2015
FI -sd integration | SCN
Page 2 of 6
Application, condition type, chart of accounts, sales org., customer acct asst group, material acct
asst group, acct key, G/L acct, provision acct. depending upon your customer type and material type
you have to maintain all the columns and the respective G/L accounts. The first table is for more
specific assignments & the other tables are for general assignments.
Now whenever you make a sales order, delivery and invoice and when you save the incoice the
system will automatically post the price, discount, tax, freight to the respective G/L accounts. This
will make an accounting document which will show the exact value of price, discount, tax, freight for
that particular transaction.
Apart from this when you do PGI in the delivery the system updates various G/L accounts related to
inventory.
Also as far as profitability analysis is concerned it is an important integration between SD & FICO
basically known as "profitability analysis - CO-PA".
I hope I have answered your Query. Please reward valuable points if solution found useful.
Regards,
Allabaqsh G. Patil
Edited by: allabaqsh patil on Feb 19, 2008 3:59 PM
Helpful Answers by J Yap, Rajesh Banka, VijayaSateeshKumar Kandula, Sadhu
Kishore, Rakesh Singh Chauhan
24547 Views
Average User Rating
(2 ratings)
J Yap 19 Feb, 2008 11:23 AM (in response to tulsi jiddimani)
Helpful Answer Re: FI -sd integration
hello, friend.
we will limit the discussion to the general integration points...
1. if CO-PA is active, your material usually has profit center assigned. this is required in sales order
processing
2. when you post goods issue, SD integrates with FI and inventory valuation is changed. costs of
sales are also recorded.
3. when you do billing and post the same to accounting, you post revenue, costs, discounts,
surcharges, taxes, etc. to the proper GL accounts.
4. account assignment groups for customers and materials are SD settings that influence FI as well.
regards.
Like (0)
Allabaqsh Patil 19 Feb, 2008 11:32 AM (in response to tulsi jiddimani)
Correct Answer Re: FI -sd integration
Hi Tulsi,
Account Determination is an important integration between SD & FICO modules. whenever a sale
takes place, the system automatically posts the various prices and discounts and freights to the
respective GL accounts through the account keys.
The account key is assigned to the respective GL account. Also in the pricing procedure we have a
column called as account key(second last column). There we assign the account key. For eg., in Std
SAP for basic price we have acct key ERL, for discounts ERS, for Output tax MWS, for freight ERF,
etc. These account keys are basically defined by the FICO consultant and then the SD consultant
assigns the respective account keys against the respective condition type in the pricing procedure.
The customer group is nothing but the grouping of various customers like wholesaler, retailer,
subsidairies, etc. This is basically useful while maintaining pricing like for X group basic price is 10Rs,
for Y group it is 15Rs. like that. Similarly material group is a grouping of materials like Ball pens, ink
pens, gell pens, etc.
When you create the condition table and select these fields and save it and when you assign this table
to your access sequence, the system searches for the condition record according to this key
combination. For that you have to maintain the condition record in VK11.
Now you are done with pricing. you create the sales order. delivery and invoice. Now for the system to
generate an accounting document when you save the invoice in VF01 you have to maintain the
account determination correctly otherwise the system will give an error - "error in account
determination."
For doing account determination you have to go to :
IMG-sales & distribution-basic functions-account assignmentcosting-revenue account determination.
http://scn.sap.com/thread/747848
11-10-2015
FI -sd integration | SCN
Page 3 of 6
In this you first have to maintain the customer account assignment group and material account
assignment group. This group for the customer means for which customer whether domestic or foreign
etc. For material whether finished, semi finished, raw material, etc. You can also maintain as per name
of the division.
This account assignment group you have to assign in customer master as well as material master. In
customer master (XD01) -sales area data- billing you have customer acct asst group, make an entry
here. In material master (MM01)-sales:sales org.2 you have account asst group, make a proper entry
here also.
Note: Regarding condition types KOFI & KOFK
KOFK: KOFK is used when ever we are posting the document where a cost is involved that can be
checked via the Requirment class in the Sales order in the Procurment step. In the requirements class
there is "E" in account assignment category & hence you have to use KOFK.
KOFI: If there is no "E" in the account assignment category then use KOFI.
Now in the above IMG path only you have access sequence, condition type, procedure. maintain
everything and assign properly the procedure to the billing document type.
Define the account keys & assign them properly in the pricing procedure.
Now go to transaction code VKOA. You will see 5 tables. first is customer group/material group/acct
key. When you double click on this it will show as following:
Application, condition type, chart of accounts, sales org., customer acct asst group, material acct asst
group, acct key, G/L acct, provision acct. depending upon your customer type and material type you
have to maintain all the columns and the respective G/L accounts. The first table is for more specific
assignments & the other tables are for general assignments.
Now whenever you make a sales order, delivery and invoice and when you save the incoice the
system will automatically post the price, discount, tax, freight to the respective G/L accounts. This will
make an accounting document which will show the exact value of price, discount, tax, freight for that
particular transaction.
Apart from this when you do PGI in the delivery the system updates various G/L accounts related to
inventory.
Also as far as profitability analysis is concerned it is an important integration between SD & FICO
basically known as "profitability analysis - CO-PA".
I hope I have answered your Query. Please reward valuable points if solution found useful.
Regards,
Allabaqsh G. Patil
Edited by: allabaqsh patil on Feb 19, 2008 3:59 PM
Like (4)
Rajesh Banka 19 Feb, 2008 8:00 PM (in response to tulsi jiddimani)
Helpful Answer Re: FI -sd integration
Now the link between SD and FI :1. Whenever you create a delivery with reference to a sales order, goods movement takes place in the
bacgground. eg. In case of standard sales order, you create an outbound goods delivery to the
customer.
Here movement 601 takes place. This movement is configured in MM. Also, this movement hits some
G/L account in FI. Every such movement of good s hits some G/L account.
2. The accounts posting in FI is done with reference to the billing documents (invoice, debit note, credit
note etc) created in SD. Thus this is a link between SD and FI
3. Tax determination: In case of a tax determination also, there is a direct link between SD and MM
SD Integration points with other modules
SD module is highly integrated with the other modules in SAP.
Sales Order –
Integration Points
•Availability Check
•Credit Check
•Costing
Module
MM
FI
CO/ MM
-
•Tax Determination
FI
•Transfer of Requirements
PP/ MM
Delivery & Goods Issue –
Integration Points
•Availability Check
-
Module
MM
•Credit Check
FI
•Reduces stock
MM
•Reduces Inventory $
FI/ CO
•Requirement Eliminated
PP/ MM
Billing Integration Points
Module
http://scn.sap.com/thread/747848
11-10-2015
FI -sd integration | SCN
•Debit A/R
•Credit Revenue
•Updates G/ L
Page 4 of 6
-
FI/ CO
FI/ CO
FI/ CO
(Tax, discounts, surcharges, etc.)
•Milestone Billing
PS
Return Delivery & Credit Memo Integration Points
Module
•Increases Inventory
MM
•Updates G/ L
FI
•Credit Memo
•Adjustment to A/R
•Reduces Revenue
-
FI
FI
FI
Accounting Entries:
1. Sales Order Created
-No Entry2. PGI done (Goods issue)
Cost of Goods Sold Dr (Configured in OBYC GBB T-Key)
To Inventory Account
3. Billing document released to Accounting
Customer Account Dr.
To Sales Revenue Account (ERL T-key in Pricing procedure)
Note : The GL account is assigned to this ERL in VKOA
4. Payment Received
Bank Clearing A/c Dr
Customer A/c Cr.
Points to Know : Good to understand the pricing procedure and how the different transaction keys are
used like ERL, ERS etc.
Regards,
Rajesh Banka
Reward points if helpful.
Like (4)
VijayaSateeshKumar Kandula 19 Feb, 2008 10:37 PM (in response to tulsi jiddimani)
Helpful Answer Re: FI -sd integration
Hi Tulsi,
SD & FI are related when you do
1) Post goods issue
Accounts are hit based on your settings of the movement type and the G/L accounts in transactions
OMJJ and OBYC.
The valuation class which you put in the material master is also helpful in determining the G/L accounts
for posting along with your above transactions.
The accounting entries will be
COGS DEBIT
Inventory CREDIT
2) Post your invoice to accounting
Based on your settings in the transaction VKOA,your billing document will be posted to accounting.
The accounting entries generally are:
REVENUE Credit
Customer account Debit
SD & MM are related in following cases
1) When a sales order triggers the Purchase requistion.
This can be done either in the third party scenario in sales or sales order can trigger PR through
planned order as well.
Link Between SAP SD, MM & FI
1. In SAP you will always get integration with other modules. SD will interact with FI, MM will interact
with SD :1a. Looking at MM and SD interaction first, take the scenario of a third party order process. This
process uses a purchase order (which is sent to your vendor). Also invoice verification is used further
along the process to check that the invoice you send to your customer is the same material and
quantity as that which the vendor sends to you (but obviously shipped
directly to your customer).
1b. Billing is an SD function. But SAP needs to know, when processing a customer's payment, to which
GL account the payment has to be processed. For instance payment of a UK based material would be
placed in a different GL account to that of a non-UK based material. Furthermore, a UK based
http://scn.sap.com/thread/747848
11-10-2015
FI -sd integration | SCN
Page 5 of 6
customer may have a different GL account to that of an Export customer. This is configured in Account
Determination.
2. ABAPers are there to essential do some bespoke development. Your integration, or interaction, with
them would be when specifying the tables, fields, input fields, a simple process explanation, data
mapping (if doing an interface from one system to another) etc.
Please Reward If Really Helpful,
Thanks and Regards,
Sateesh.Kandula
Like (2)
Sadhu Kishore 20 Feb, 2008 2:36 AM (in response to tulsi jiddimani)
Helpful Answer Re: FI -sd integration
hi,
FI-SD Integration:
Rev AC determination
1. Sales Order Created
-No Entry2. PGI done (Goods issue)
Cost of Goods Sold Dr (Configured in OBYC GBB T-Key)
To Inventory Account
3. Billing document released to Accounting
Customer Account Dr.
To Sales Revenue Account (ERL T-key in Pricing procedure)
Note : The GL account is assigned to this ERL in VKOA
4. Payment Received
Bank Clearing A/c Dr
Customer A/c Cr.
Credit Management
If you implement both SD and FI-AR, Credit Management provides the following facilities:
You can define automatic credit limit checks according to a range of criteria and in line with your
company’s requirements
You can also define at what point the system carries out these checks (order, delivery, goods issue,
and so on).
The credit representative is automatically alerted to a customer’s critical credit situation as soon as
order processing starts.
The relevant employees can be automatically notified of critical credit situations via internal mail.
Your credit representatives are able to check a customer’s credit situation quickly and reliably, and, in
line with the appropriate credit policy, to decide whether the customer should be granted credit.
Using Credit Management you can work in distributed systems. A distributed system is one with central
financial accounting and non-central sales and distribution on several sales and distribution computers.
COPA
Mapping of SD conditions to CO-PA value fields (transaction KE4I) is the first bridge between the SD
and CO-PA modules.
regards
sadhu kishore
Like (2)
Rakesh Singh Chauhan 20 Feb, 2008 6:59 AM (in response to tulsi jiddimani)
Helpful Answer Re: FI -sd integration
Dear Tulsi,
Now the link between SD and FI :1. Whenever you create a delivery with reference to a sales order, goods movement takes place in the
bacgground. eg. In case of standard sales order, you create an outbound goods delivery to the
customer.
Here movement 601 takes place. This movement is configured in MM. Also, this movement hits some
G/L account in FI. Every such movement of good s hits some G/L account.
http://scn.sap.com/thread/747848
11-10-2015
FI -sd integration | SCN
Page 6 of 6
2. The accounts posting in FI is done with reference to the billing documents (invoice, debit note, credit
note etc) created in SD. Thus this is a link between SD and FI
3. Tax determination: In case of a tax determination also, there is a direct link between SD and MM
SD Integration points with other modules
SD module is highly integrated with the other modules in SAP.
Sales Order –
Integration Points
•Availability Check
•Credit Check
-
Module
MM
FI
•Costing
CO/ MM
•Tax Determination
FI
•Transfer of Requirements
PP/ MM
Delivery & Goods Issue –
Integration Points
Module
•Availability Check
MM
•Credit Check
FI
•Reduces stock
MM
•Reduces Inventory $
FI/ CO
•Requirement Eliminated
PP/ MM
Billing Integration Points
Module
•Debit A/R
FI/ CO
•Credit Revenue
FI/ CO
•Updates G/ L
FI/ CO
(Tax, discounts, surcharges, etc.)
•Milestone Billing
PS
Return Delivery & Credit Memo Integration Points
Module
•Increases Inventory
MM
•Updates G/ L
FI
•Credit Memo
FI
•Adjustment to A/R
FI
•Reduces Revenue
FI
Do let me know in case of any queries.
Hope this helps you.
Regards,
Rakesh
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