Integration FI with MM

Integration of SAPFI with MM is done at OBYC.

Let me elaborate... In MM you purchase goods and to which you pay, the purchasing
process has the following steps:
Step1: First you send a Purchase Order to the Vendor.
Here there won't be any accounting entry as this is simply like telling the Vendor what
goods you want, its quantity and the date of delivery etc.,
Step 2: You will receive the Goods to the Purchase Order.
When you receive Goods you CAN NOT make the following entry
Inventry A/c Dr
To Vendor A/c
because, some of the goods you have received may be damaged or may not be upto the
mark or for any other reason goods may reject, so befor posting it to Vendor A/c we keep
it in separate place till we verify the goods. And the actual entry will be
Inventry A/c Dr (Transaction Key
BSX @ OBYC)
To GR/IR A/c (Transaction
Key WRX @ OBYC)
Here the goods received is Debited to inventry and Credited to a temperary A/c i.e.,
GR/IR a/c
Step 3: You will post a Invoice to the Goods received.
Here you will post the invoice after you are satisfied with the goods received, the entry
will be
GR/IR A/c Dr
To Vendor A/c
Now the goods are moved from GR/IR A/c and Vendor is Credited. Now you got the final
entry of Goods to Vendor Account i.e,
Inventry A/c Dr

To Vendor A/c
i.e, Inventry A/c was Debited and Vendor A/c was Credit and GR/IR A/c is Dr and also
Credited henced its balance became 'Zero', and it has to be Zero always.
Step 4: And make Payment to Vendor.
Vendor A/c Dr
To Bank Clearing A/c

*-- Faisal Khan

Course Content
1

Introduction
1
2
3
4
5
6

Procure to Pay Process Overview

Org structure - Company Code
Org structure - Plant and Assignment
Org sturcture - Purchasing
MM Integration with other modules
Review

1
2
3
4
5
6
7
8
9

Material Master Views

Accounting View1
Accounting View2
Costing View1
Costing View2
Purchasing Views
Tax Classification
Material Ledger Views
Review

1
2
3
4
5
6
7

Vendor Master Central

Vendor Master Company Code
Vendor Master Purchasing
Vendor Bank Information
Vendor Master special fields
Vendor Master - Payment Terms Config
Review

1
2
3
4
5

Accounting Integration
Posting to Vendor Payable Account
Inventory Accounts
GR/IR Account Determination
Review

Material Master

Vendor Master

Account Determinations Procure

Account Determinations Other

1
2
3
4
5
6
7
8
5

Movement Type - Accounting Link

Price Difference Accounts
Inter-Plant Accounts
Purchase Accounting - Non US
GBB - Key for Offsetting entries
Consumption Accounts
Physical Inventory Accounts
Step by step config for account
determination
Review

Procurement
1
2
3
4
5
6
7
8

Purchasing Master Data

Purchase Order Process
Purchase Order - Accounting Integration
Goods Receipt - Accounting
Inventory Valuation for GR and related
reports
GR/IR Concept and related Reporting
Concept of InfoRecords
Review

7 Procurement - Miscellaneous
1
Procurement with Taxes
2
Account Assigned PO
3 Scheduling Agreement and Procurement
4
MM Pricing Procedure
5
Freight Conditions and Freight GR/IR
6
Discount Conditions
7
Reversal of GR
8 Other types of Procurement - Expense PO
9
Downpayment and PO ( Imports )
10
Review
Logistic Invoice Verification 8
Normal
1
Invoice Introduction
Accounting Entries for Invoice and GR/IR
2
clearing
3
Tolerances for Invoice
4
LIV - Background Verification
5
LIV - Online Verification
6
Overpayment and Underpayment
7
Vendor Balances - Report
8
GR/IR Clearing
9
Review
Logistic Invoice Verification 9
ERS
1
Evaluated Receipt Settlement
2
ERS Applicable conditions
3
Various options in ERS
4
User exits required in ERS

5
10

Review

Inventory Management
1
Inventory Valuation Concept
2
Price Control - Standard Cost
3
Price Control - Moving Average Cost
4
SAP Recommendations
5 Inventory Information used for Accounting
6 Reconciliation Inventory and GL Accounts
7
Other types of Inventory Movements
8 Go-live data loading into SAP for Inventory
9
Period Closing for Material
10
Review

11

12

13

14

Sub-contracting
1
2
3
4
5
6

Introduction to Subcontracting
Subcontract Info Records
Accounting Entries for Material Issue
Accounting Entries for Material Receipt
Invoice Verification - Accounting
Review

1
2
3
4

Introduction to Third Party Procurement

Accounting Entries for Material Issue
Invoice Verification - Accounting
Review

1
2
3
4

Introduction to Pipe-line Handling

Accounting Entries for Material
Invoice Verification - Accounting
Review

1
3
4

Introduction to Pipe-line Handling

Accounting Entries for Material
Consumption
Invoice Verification - Accounting
Review

1
2
3
4
5
6
7
8

Inventory Movements - Inter Plant

Inventory Movements - Intra-Pant
Single Step - Movement
Two Step - Movement
Inter Company AP / AR
ERS Applicability
EDI - Idoc Applicability
Review

Third Party Procurement

Pipe-line Handling

Consignment
2

15 Cross-Company Code / Plant

16

Balancesheet Valuation
1
Lowest Cost Principle
2 Configure SAP for Balance Sheet Valuation
3
Review Reports
4
Review

17

Vendor Payment

1
2
3
4
5

Vendor Balance - Open Items

Vendor Postings using FB60
Outgoing Payment F110
Vendor Correspondance
Vendor Cleared Items

1
2
3
4
5
6
7

Vendor Reports
Purchasing Reports
Inventory Reports
GR/IR Clearing
Tax Reports
Pament Reports
New Report requirement

18 Procurement to Pay Reports