SAP FI-MM Integration Configuration steps

Define Plant

• A ‘Plant’ is an operating area or a branch or a location within a company. Each ‘Plant’ is assigned to a single ‘company code’. A ‘company code’ can have several ‘Plants’
• IMG Path: Enterprise Structure -Definition – Logistics general – Define, copy, delete, check plant

Define Storage Location

A storage location is the place where stock is physically kept within a plant. There may be one or more storage locations within a plant.

• IMG Path: Enterprise Structure -Definition – Materials Management – Maintain Storage Location
• Tcode: OX09

 

Maintain Purchase Organization

The purchasing organization is the highest level of aggregation (after the organizational unit “client”) for purchasing statistics.

IMG Path: Enterprise Structure – Definition – Materials Management – Maintain Purchasing Organization

 

Assign Plant to Company Code

A Plant needs to be assigned to one of the Company Codes, the relation is always one to one i.e. One Plant can be assigned to only one company code

However, before plant is assign to company code, we have to define Valuation Level. Materials are valued at valuation level.

Define Valuation Level: OX14

Assign Plant to Company Code

Path: Enterprise Structure -Assignment – Logistics general – Assign Plant to Company Code

 

Assign Purchase Organization to Company code

IMG Path: Enterprise Structure – Assignment – Material Management – Assign purchasing organization to company code

 

Assign Purchase Org to Plant

IMG Path: Enterprise Structure -Assignment – Logistics general – Assign purchasing organization to Plant

 

Purchasing Groups

Path: SPRO – Material Management – Purchasing – Create Purchasing Group

A Purchasing group refers to a people or a group of people who are dealing with specific material or a group of material

 

Define Attributes for Material Type

Material Type is a Logical grouping of materials that are similar in characteristics. Any material master record created in SAP ERP must be assigned to a material type.

IMG Path: Logistics – General – Material Master – Basic Settings- Material Types- Define Attributes of Material Types

Transaction Code: OMS2

Material Type	Description
ROH	Raw Material
FERT	FG Type
HALB	Semi FG type

 

Maintain Posting Period

This activity is done for making a Company Code relevant for Materials Management and to define the starting posting period

IMG Path: Logistics – General -Material Master – Basic Settings- Maintain Company Codes for Materials Management

Transaction Code: OMSY

 

Creation of Plant Parameters

Transaction code: OMI8

Copy from plant 1000 to our plant 01M1

 

Default values of Tax code for Invoice Verification

Path: SPRO -Materials Management – Logistic Invoice verification – Incoming Invoice – Maintain Default Tax code

 

GR Tolerance Group

In this step, we set the tolerance limits for goods receipts. When processing a goods receipt, the system checks each item to determine whether the goods receipt varies from the purchase order or the material master data. The different types of variances are defined by tolerance keys. For each tolerance key, tolerance limits can be set per

company code.

Path: SPRO -Material Management – Inventory Management – Good Receipt – Set Tolerance

Copy Tolerance B1, B2 and VP from company code 1000 to MK14

 

Set Tolerance limit for Price Variance

When processing a purchase order, the system checks whether the effective price of a PO item shows variances compared with the valuation price stored in the material master record. In addition, it checks whether the specified cash discount value is admissible.

Variances are allowed within the tolerance limits. If a variance exceeds a tolerance limit, the system issues a warning or error message. In SAP, the types of variance are represented by the tolerance keys.

Path: SPRO –Material Management – Purchasing – PO – Set Tolerance limit for price variance

Copy Tolerance limit PE, SE from company code 1000 to MK14

Set Tolerance limit for price difference between Invoice and Purchase order

IMG Path: Material Management – Logistic Invoice verification – Invoice block – Set Tolerance

Copy price variance PP and VP from company code 1000 to MK14

 

Define Automatic Status Change

Transaction Code: OMRV

Invoice verified in the background. If found correct, status automatically set to completed

Define Valuation Control

It defines if the valuation areas will be grouped by activating the valuation grouping code. In the standard SAP R/3 System, the valuation grouping code is set to active as default setting.

Transaction code: OMWM

IMG Path: Materials Management -> Valuation and Account Assignment -> Account Determination -> Account Determination without Wizard-> Define Valuation Control

 

Group Together Valuation area plant

Path: Material Management – Valuation and Account Assignment – Account Determination – Account Determination without wizard – Group together valuation area

Transaction Code: OMWD

In the standard SAP system, valuation is predefined at plant level. All plants are grouped together via valuation grouping code 0001. Assign SAP define valuation grouping 0001 to Plant 01M1

 

Define Valuation Classes

IMG Path: Materials Management -> Valuation and Account Assignment -> Account Determination -> Account Determination without Wizard->Define Valuation Classes.

Transaction Code: OMSK

Valuation Class / Acct Cat Reference	Description
Valuation Class	A grouping of Material
Account Category Reference	Grouping of Valuation Classes
Material Type	Logical Grouping of material with similar characteristic
Material Type and Account Category Reference assignment	Material Types are assigned to Account category Reference. This links Material types to valuation class and to GL accounts to which posting should happen

 

Account Category Reference

 

Valuation Class

Transaction Code: OMSK

 

Material Type and Account Category Reference

Transaction Code: OMSK

 

Change Movement Type

In this step we define or change Movement Types

When we enter a goods movement, we must always enter the movement type. The movement type has important control functions in Inventory Management. It is essential for

• Updating the quantity fields
• Updating the stock and consumption accounts
• Printing goods receipt/issue slips

IMG Path: Materials Management -Inventory Management and Physical Inventory – Movement Types – Copy, Change Movement Types

Transaction Code: OMJJ

We will use the default SAP movement types.

Movement Type	Allowed Transaction
101	Goods Receipt
261	GI for order

Creation of Various GL accounts for FI-MM Integration

Transaction Code: FS00

Description	GL Acct	Type	Line Itm.	Sort Key	FSG	Post Auto
RM Local	200108	BS/Cr. Liabilities	X	012	G006	X
GRIR Clearing Acct	100510	BS/Cr. Liabilities	X	012	G045	X
PO and Invoice Price Diff Acct	400203	PL/Mnf. Exp	X	001	G003	X
RM Consumption Local	400000	PL	X	001	G003	X
RM Consumption Import	400001	PL	X	001	G003	X
Tax Payable	100511	BS	X	001	G001	–

For detailed, step-by-step instructions on SAP Cost Center Accounting, Product Costing, Profit Center Accounting, Internal Orders, FI-MM Integration follow along with my video tutorial below

Configure Automatic Account Posting: FI-MM Integration

Transaction Code: OBYC

Transaction Key	Description	Valuation Class	Gen MODIF	GL Acct
BSX	Inventory Posting	01RM		200108
WRX	GRIR Clearing Account	01RM		100510
PRD	Price Diff Account	01RM		400203
GBB	Offsetting Entry for Inventory Posting	01RM	VBR	400001
BSX	Inventory Posting	01FG		200109

BSX

WRX

GBB

 

Extend Vendor Master to Purchase Organization

Transaction Code: XK01

However, before the above step Partner function must be created for Vendors

Steps	Path	Data
Define Partner Schemas	SPRO / Materials Management / Purchasing / Partner Determination / Partner Settings in Purchasing Documents / Define Partner Schemas	No Change. SAP standard
Define Settings for Vendor Master Records:	SPRO / Logistics – General / Business Partner / Vendors / Control / Define Account Groups and Field Selection (Vendor)	Partner schemas: IDE1
Assign Partner schemas to Vendor account groups	SPRO/ Mm / Purchasing / Partner determination / Partner Settings in Vendor Master Record- Assign Partner Schemas to Account Groups	Partner schemas: IDE1
Define Permissible Partner Roles per Account Group	SPRO-Materials Management-Purchasing-Partner Determination-Define Permissible Partner Roles per Account Group

 

Create Material

Transaction Code: MM01

Material	MK14RM01
Industry	MECHANICAL Eng.
Material Type	RM MK14
Views	Basic, Accounting 1, 2, Costing 1,2
Plant	01M1
Storage Location	RM
Unit of Measure	Kg
Material Group	00104
Purchase Group	MK1
MRP-1
MRP Type	ND
MRP – 2
Proc Type	F (External)
RM Storage Loc	RM
Planned Del Time	1
Accounting -1
Valuation Class	01RM
Price Control	V: Moving Average
Moving Price	200
Costing -1
With Qty Structure	X
Material Origin	X

Material MK14RM01 created

 

Create Purchase Order

Transaction Code: ME21N

Standard PO (SAP) created under the number 4500041321

 

Create Good Receipt

Transaction Code: MIGO

Close previous MM Period and Open current MM period: MMPV

Material document 5000003531 posted. Display Material Document: MB03

 

Automatic Posting for Tax account

Create Tax Payable GL account

Transaction code: FS00

Transaction code: OB40

Transaction Key: MWS

 

Create Purchase Order Invoice

Transaction code: MIRO

 

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