Valuation string in account determination

Question

Hi ,
Please explain me automatic  account determination considering the Valuation strings,
Please explain me how the different factors( like valuation class, material type etc)  comes in sequence in automatic account determination.
Regards, Deepika
Edited by: Deepika Pradhan on Dec 27, 2007 8:52 PM

Answer 1

Hello
All the Goods Receipt, Goods Issue movements and Invoice Postings are the events relevant to Accounting. These transactions or events effects the accounting and there is a need to post the value to certain GL Account.
Account Determination is a process to automatically identify the GL Account and post it when a relevant Transaction or events takes place.
The following is level for valuation and account determination in MM
Chart of accounts
Company code
Valuation area
Plant
Valuation type
A Chart of Account provides a framework for the recording of values to ensure an orderly rendering of accounting data This is used as a key for account determination, to enable a differentiation for the purposes of G/L account assignment. You must assign a chart of accounts to each company code.You must configure automatic account determination separately for each chart of accounts
The Valuation Area is the organizational level at which material is valuated. Plant and company code are two possible valuation areas in the R/3 System. When stock is valuated at plant level, a material in different plants can be valuated at different prices. When stock is valuated at company code level, the valuation price of a material is the same in all of a company's plants
Valuation Grouping code
By activating or deactivating the Valuation Grouping Codes, you can turn on or off the dependency of the Account determination function on the Valuation Area. You must configure automatic account determination separately for each valuation grouping code within a chart of accounts
Valuation Class
The Valuation Class is a key for grouping materials that have the same Account Determination
The relationship between Valuation class and Material Types is established by the Account Category reference. The Account Category reference is a compilation of valuation classes
A material type is assigned to only one account category reference
Account Category Reference
Account Category References link the valuation Classes with the material Types
The combination “Material Type-Account Category Reference-Valuation Class” determines the G/L accounts updated for a valuation relevant transaction
Business Transactions
In the R/3 System, posting transactions are defined for each transaction in Materials Management that is relevant for Accounting. General posting records are assigned to each transaction or event in a “value string”
Example of a transaction/ event is a goods mvt or an invoice receipt
Example of transaction/ event keys are BSX for stock posting & PRD for a price difference posting
Example of value strings are WE01 attached to transaction ‘GR’ for std. PO & WA01 assigned to various ‘GI’ & other goods receipts
Instead of definite G/L account numbers, this value string contains transaction keys for the relevant posting transaction. The first transaction key for a posting rule usually stands for the debit posting
The posting transactions for the transactions in Inventory Management and Invoice Verification that are relevant for accounting are fixed. Posting records are assigned to each relevant movement type in Inventory Management and to each transaction in Invoice Verification
The assignments of value strings to goods movements and the breakdown of the same into transaction keys can be seen in Customizing for Inventory Management and Physical Inventory, but they can not be changed
In Customizing for Valuation and Account Assignment, G/L accounts for the various posting transactions are mentioned
Regards