6 Replies Latest reply: Feb 20, 2008 6:59 AM by Rakesh Singh Chauhan RSS

FI -sd integration

tulsi jiddimani
Currently Being Moderated

Dear all,

Can you plz explain me in detail regarding FI- SD integration

 

 

Regards,

Tulsi

  • Re: FI -sd integration
    J Yap
    Currently Being Moderated

    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.

  • Re: FI -sd integration
    Allabaqsh Patil
    Currently Being Moderated

    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:

    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

  • Re: FI -sd integration
    Rajesh Banka
    Currently Being Moderated

    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                      Module

    •Availability Check             -       MM

    •Credit Check                   -       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

     

    Accounting Entries:

    1. Sales Order Created 

            -No Entry-

     

      2. 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.

  • Re: FI -sd integration
    VijayaSateeshKumar Kandula
    Currently Being Moderated

    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 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

  • Re: FI -sd integration
    Sadhu Kishore
    Currently Being Moderated

    hi,

     

    FI-SD Integration:

     

    Rev AC determination

     

      1. Sales Order Created 

     

            -No Entry-

     

      2. 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

  • Re: FI -sd integration
    Rakesh Singh Chauhan
    Currently Being Moderated

    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.

     

    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                      Module

    •Availability Check             -       MM

    •Credit Check                   -       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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