Section: Valuation and Account Assignment

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TAMM30 4.0B

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Valuation and Account Assignment: Contents

Unit 1

Valuation and Account Assignment

Unit 2

Introduction to Material Valuation

Unit 3

Material Price Changes

Unit 4

Special Inventory Management Features

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Valuation and Account Assignment: Contents

Account determination
Other

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Valuation and Account Assignment: Objectives

After working through this unit, you will be able to:
List the organizational levels that are important for

material valuation
Name the influencing factors and their grouping

characteristics upon which the settings for automatic

postings depend
Outline the basic process of account determination
Configure the account determination facility for certain

MM transactions yourself
Use the simulation function

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Documents
Material
document
49000107
Posting a
goods issue

11

Changing the
valuation price
for a material

22

Accounting
document
4900022313

Item PK Acct no. Amount

001 99
300000
10.00002 81
400000
10.00

Accounting
document
480000079

Item PK Acct no. Amount

001 89
300000 525.00
002 93
282000 525.00-

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Various transactions and events in MM are relevant for Accounting. These transactions and events must
be recorded in an accounting document that contains the postings made to the G/L accounts in Financial
Accounting.
As far as possible, the system should derive the G/L account numbers that are referred to in a document
of this type automatically.

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Automatic Account Determination

Goods receipt
Goods issue

Account
maintenance
MM transactions
Debit/credit
material

Transfer posting

Incoming
invoice
$ 29.00

Invoice

Price change

$ 25.00
R

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MM transactions and events for which you can configure the automatic posting facility occur within the
areas of Inventory Management, Invoice Verification and Material Valuation.

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Levels for Valuation in MM

GKR

Chart of accounts

Company code

Valuation area

Plant

0001
0001

001
001

Plant
Plant
Plant
Plant

0002
0002

Plant
Plant
Plant
Plant

0001

0010

0001

0002

0008

0001

0002

0008

Valuation type

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You assign a company code to a chart of accounts using Customizing for FI.
In transactions within the MM application the valuation area is hidden. In Customizing, you can choose
whether the valuation area is the same as the company code or the plant.
You must make this setting before creating materials and before entering individual transactions or
events within MM Inventory Management.
If a material is subject to split valuation, you can valuate partial stocks of this material at different
prices and manage them using separate accounts.

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Grouping of Organizational Levels

Case 1: Valuation area = Company code
Valuation
grouping
code

Company
code

0001

1000
2000

Chart of
accounts

GKR

0002
3000
0003

4000

IKR

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The valuation area is the level at which materials are valuated.

This currently corresponds either to a certain plant or to all plants belonging to a company code.
For each company code, you define the chart of accounts to be used.
The valuation grouping code is a tool that enables you to assign G/L accounts with a minimum of effort.
You assign valuation areas that are to be treated in the same way in terms of account assignment to the
same valuation grouping code. Valuation grouping codes either allow precise differentiation within a
chart of accounts or correspond to a single chart of accounts.
When you make the basic settings for Valuation, you can define whether the valuation grouping code is
active or not.

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Grouping of Organizational Levels

Case 2: Valuation area = Plant
Valuation
grouping
code

0001

0002

Plant

Company
code

1000

1000

2000

2000

2100

3000

Chart of
accounts

GKR

3000
0003

4000

4000

IKR
R

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Grouping of Materials
Option 1
ROH
Mat. 1

Option 2

Acct 1

Mat. 2
HIBE
Mat. 3
Mat. 4
FERT
Mat. 5
Mat. 6

ROH

ROH

Mat. 1
Mat. 2

Acct 2

Option 3

Mat. 1
Acct 1

Mat. 2

Acct 1
Acct 2

HIBE
Mat. 3
Mat. 4

Acct 3

FERT
Mat. 5

Acct 3

Mat. 6
R

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You can configure the G/L account determination for all materials belonging to a material type or even
for several material types.
However, you can also define that the system should determine different G/L accounts for different
materials belonging to a single material type.
You can also combine options two and three, that is:
Group several material types
Assign different G/L accounts to different materials within this group

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Material Type Valuation Class

Material type

Account category
reference

Valuation class

FERT
HALB
HAWA
.
.
.
ROH 1

0001

7900

0002

3000
3010
3020
3030
3040

0003

ROH 2

3100
0004

ROH 3
...

3200

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The account category reference is the grouping term for account determination on the basis of the
material type.
You can assign several valuation classes to an account category reference.
You assign each material type to an account category reference.
When you maintain the accounting data for a material of this material type, you can choose one of the
valuation classes defined for the corresponding account category reference.
The system determines the G/L account for this material according to the settings for this valuation
class.
If a material is subject to split valuation, the system determines the account using the valuation class for
the valuation type record (see later).

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Valuation Class
Material
Material A
A
Valuation
class

Material
Material B
B

1000

Valuation
class

??

Account determination

2000

G/L account for

valuation class
1000

G/L account for

valuation class
2000

300010
300010

300020
300020

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The account determined for a posting transaction (such as a stock posting) depends on the valuation
class. If two materials are assigned different valuation classes, their stock values can be managed on
different stock accounts.

The valuation class is stored in the material master (MBEW table).

If a material is subject to split valuation, the system uses the valuation class of the valuation type record.

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Account Determination Process

Inventory
Management

Invoice
Verification
Transaction

Material

BSX

300000

Posting string
for values

Transaction/event

PRD

G/L account no.

281000

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A posting record indicates the G/L accounts affected in a business transaction that is relevant for
Accounting. The debit entries are always shown first.
In the R/3 System, posting transactions are defined for each transaction or event in Materials
Management that is relevant for Accounting. Since individual R/3 customers use different charts of
accounts, general posting records are assigned to each transaction or event in a so-called value string.
Instead of definite G/L account numbers, this contains transaction/event keys for the relevant posting
transaction.
You define the assignment of value strings to goods movements and the breakdown of the value string
into transaction or event keys in Customizing for Inventory Management and Physical Inventory.
In Customizing, you specify G/L accounts for the various posting transactions.

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Account Assignment Settings: Rules and

Posting Keys
1

Transaction

Rule

Chart of account

Parameters on which
account assignment
depends

Posting key for debit/

credit posting

Transaction

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You can configure account determination for MM transactions in the Customizing menu of
valuation/account assignment or financial accounting.
You can define rules to determine whether

general account groupings

valuation grouping codes or

valuation classes

are taken into consideration in account assignment. You can also configure the system so that you can
enter different accounts for debit and credit postings.

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Assigning G/L Account Numbers

Trans./event(key)
Rules:
Influencing factor relevant?

Chart of accounts

Valuation
grouping
code

Account
grouping

Valuation
class

G/L account
(debit/credit)
R

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You can use the rules to define whether the configuration of automatic postings for a posting transaction
depends on the:
Valuation grouping code
Account grouping (not possible for every transaction/event key)
Valuation class
You use another rule to define for each posting transaction whether different G/L accounts can be
assigned for debit and credit postings (meaningless for stock accounts).
In addition, you assign the posting keys for each posting transaction.

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Influencing Factors: Summary

Organizational
structure

Company code

Chart of accounts

Plant/
Valuation area

Valuation
grouping
code

Accounting data for

valuation area
Material

Valuation class

Material type
Value/quantity
update
Value string

Business
transaction

Goods movement/
invoice verification

Trans./event key
Account grouping
R

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The settings for automatic postings depend on the following system parameters:
Chart of accounts for the company code
Valuation grouping code for the plant or company code
Valuation class for the material
Transaction/event key from the value string possibly with account grouping

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Simulation

Selection of:

Plant
Material/
Valuation class
Movement type/
Transaction

Possible posting lines

and account numbers
displayed

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You can use the simulation function to check your account number assignments. However, this does not
eliminate the need for test postings.
The simulation function generates a lists of the posting lines that are possible in the case of a specific
transaction or event, together with the account numbers assigned. It also shows the parameters on which
the account determination process is based.
You can define which parameters should be specified during simulation.
There is an analysis function that shows the transactions or events for which a certain G/L account
number is used.

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Account Determination Wizard

Assign
stock accounts

Company codes,
plants, material types
set up?
Maintain
valuation classes

Use purchasing
account?

Dependencies from
the valuation class
(rules)?

Dependencies
from DEBIT/CREDIT
(rules)?

Select business
transaction or event

Assign
G/L accounts
Chart of
accounts?

Group
valuation areas
R

Save/Exit?

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The wizard provides you with the necessary support to set up the accounts for your postings in
Materials Management quickly and easily.
Using the account determination wizard, you can make the system settings for automatic posting quickly
by answering the wizards questions. You can call up additional information by selecting About
Recommendations and About R/3 Significance. Depending on the answers you give, the system calls
up the relevant Customizing tables.
With the exception of a few restrictions (that are explained in the wizard), you can use the wizard to call
up the following functions:
Display or maintain company codes, plants and material types (prerequisite)
Select the material types to be used
Configure purchase account management (only required for certain countries, such as France,
Belgium and Spain)
Grouping valuation areas
Define rules for stock postings and other postings
Define valuation classes
Assign stock accounts
Assign the other G/L accounts depending on the business transaction involved.

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Valuation and Account Assignment: Summary

For MM transactions and events relevant for

Accounting, you have to define which G/L

accounts are updated in the FI component. You
can make this G/L account number assignment
depending on the chart of accounts, company
code/plant, material and transaction/event.
To reduce the effort involved in making the

necessary settings, you can group these

influencing factors.

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