A warm welcome to the Integration of SAP FICO with HR, MM, SD & other SAP modules course by Uplatz.

Uplatz provides this course on SAPFICOintegration with HR, MM, SD modules. This course will help you understand the inter-related processes across FIand HR, MM, SD and how they talk to each other. This training on SAPFIintegration with HR,MM, SD, and other SAPmodules will help you become a successful SAPConsultant in FI, HCM, MM, SD, and logistics areas.

SAP FICOand SAP HCM Integration

SAP HCM is basically Integrated with FICO through the Cost Center , GL account , Vendor Account etc. For integration, link the symbolic accounts (from HR) to GL accounts. Symbolic accounts are the point of integration between FI and HR. Every wage type have to assign the Symbolic account. The symbolic account will decide to which type of account (Expense Account, Balance sheet Account, Customer, Vendor) the postings will made in Finance. For every wage type you will have to assign the Symbolic account. The symbolic account will decide to which type of account (Expense Account, Balance sheet Account, Customer, Vendor) the postings will be made in Finance. In the Wage types Posting, you will define whether account will be debited or credited. For each Symbolic account you will have to assign the GL account to which the postings in FI has to be made. Symbolic Account act as a carrier between FI & HR.

SAPFICOmodule integrates well with SAPHR, SAPMM, SAPSD, and other SAPmodules.

Activities in the HR System

1. Define Employee Grouping Account Determination IMG -> Payroll -> Reporting for Posting Payroll Results to Accounting -> Activities in the HR System -> Employee Grouping and Symbolic Accounts -> Define Employee Grouping Account Determination

2. Define Symbolic Accounts IMG -> Payroll -> Reporting for Posting Payroll Results to Accounting -> Activities in the HR System -> Employee Grouping and Symbolic Accounts -> Define Symbolic Accounts

3.Define Posting Characteristics of Wage Types IMG -> Payroll -> Reporting for Posting Payroll Results to Accounting -> Activities in the HR System -> Maintaining Wage Types -> Define Posting Characteristics of Wage Types

4.Maintain Posting Date for Payroll Periods IMG -> Payroll -> Reporting for Posting Payroll Results to Accounting -> Activities in the HR System -> Maintain Posting Date for Payroll Periods

Activities in the AC System

5.Assign balance sheet account & assign Expense Accounts IMG -> Payroll -> Reporting for Posting Payroll Results to Accounting -> Activities in the AC System -> Assigning Accounts -> Assign Balance Sheet Accounts

IMG -> Payroll India -> Reporting for Posting Payroll Results to Accounting -> Activities in the AC System -> Assigning Accounts -> Assign Expense Accounts

6. Assign Technical Accounts IMG -> Payroll -> Reporting for Posting Payroll Results to Accounting -> Activities in the AC System -> Assigning Accounts -> Assign Technical Accounts

7. Assign Vendor Accounts IMG -> Payroll -> Reporting for Posting Payroll Results to Accounting -> Activities in the AC System -> Assigning Accounts -> Assign Vendor Accounts

8. Check Customizing for Account Determination IMG -> Payroll -> Reporting for Posting Payroll Results to Accounting -> Check Customizing for Account Determination

SAPFICOand SAPMMIntegration

SAP MM FI integration is one of the advanced topics in SAP configuration. It is important to configure automatic postings in Financial Accounting and even more important to thoroughly test this configuration to make sure that postings are made to the correct G/L accounts.

MM module is responsible for managing materials and inventory in SAP. However, value of the inventory must be reflected on financial accounts of a company. Stock of materials that a company has is its asset and it is a legal requirement to mention it on various financial reports. SAP ERP is able to automatically calculate value the company’s stock and keep financial accounts up-to-date thanks to the integration between MM and FI modules.

How does SAP know which accounts to use for different materials? This is controlled by a number of parameters. Let’s see what happens when a goods movement is done in MM. SAP will automatically determine the following parameters:

1. Chart of Accounts

2. Valuation Grouping Code

3. Transaction/Event Key

4. Account Grouping

5. Valuation Class

Valuation area

Stock of a material owned by a company is an asset to the company. Valuation area defines the organization level at which materials are valuated.

SAP has provided two options for valuation.

1. Valuation at plant level: All materials are valuated at plant level.

2. Valuation at company code level: All materials in all plants of a company are valuated at company code level.

This setting is defined in t-code OX14.

MM-FI Integration process

When we do material posting for a valuated material, below flow happens.

1. Movement type and other attributes like special stock indicator, movement indicator etc. are determined based on business transaction like goods receipt for PO, production order etc.(OMWN). This is defined by standard SAP.

2. Transaction key/event and account modifier is identified based on movement type and other standard attributes in step 1 (OMWN)

3. Valuation grouping code activation is checked from OMWM

4. If active, for the given valuation area, valuation grouping code is identified from OMWD

5. For the identified transaction or event, check if valuation grouping code is active or not in OBYC (Click the rules button for the transaction key)

6. Valuation class is determined from material master.

7. Based on the above identified attributes, select the G/L account from OBYC.

If system can’t find any account for the found attributes, stock posting can’t be done and system through clear error stating for which combination of attributes, G/L account is missing. Such errors are mostly seen during go live/while posting to new materials due to missing G/L account maintenance or due to incorrect valuation class in material master data.

Now you know the process, here is the short cut to find out G/L.

Account determination details are stored in table T030. If you want to know based on what details XXX account is determined, simply give that G/L in T030 table in field KONTS. This gives the possible combination of entries where this G/L is assigned.

SAPFICOand SAPSDIntegration

Automatic generation of accounting document due to sales activity is referred as SD FI integration.

An order 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).

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.

The Sales and Distribution module is part of the SAP logistics Modules and it addresses all the process of order-to-cash cycle. The S&D process starts from sales enquiry from customers to delivery, billing and incoming payment.

Below are the steps involved in SDprocess and how they related to FI:

1. The SD process starts with the pre-sales activities. Meaning the first contact with the customer, involving the processes of receiving customer Inquiries and sending quotations to Customers.

2. If the Customer decides to send a Purchase Order, then the next step in the sales process is to raise a Sales Order.

3. The next step after the sale order is the delivery of goods to the Customer. This is the integration trigger point between the relevant SAP modules of SD, MM and FI.

4. The billing process follows the delivery of goods to customers. The billing process impacts the SAP modules of SD and FI.

5. The final step in the order-to-cash cycle is the receipt of the incoming payment from the customer and the clearing of the customer open item.

When goods are dispatched, finance document as shown below is posted automatically. Question is how system determines the GL account and amount to post the accounting document?

Since goods are moved hence material document is created. Corresponding finance document gets created as a result of MM-FI integration. GL account for inventory account is picked from OBYC setting (transaction key BSX). GL account for COGS is picked from OBYC setting (transaction key GBB and account modifier VAX).

Inventory & COGS is always valued at standard cost of the material.

Amount calculated = Quantity * standard cost of material per unit.

When billing document is released to accounting, accounting document gets posted automatically. Question is how system determines GL account and amount to post accounting document?

Price determination procedure or pricing procedure

Price determination procedure is basically combination of multiple condition type. Condition type represents different prices that are put together (addition or subtraction) to arrive at net sales price.

Net price = Base price –Discount + surcharge + tax

Each of these prices “Base price, Discount, Surcharge, Tax etc. is created as condition type in sap.

Once pricing procedure is selected, list of all condition types involved is known. Now for each condition type system has to determine the condition value. Each condition type is linked to an access sequence. Access sequence is basically sequence in which condition tables are to be accessed to search for condition record (Condition records are maintained in condition table).

As per sequence maintained in access sequence, system starts with table 1. If condition record is found then system picks the condition value and stops searching any further. If condition record is not found in table 1 then system starts searching for table 2. If condition record is found then system picks the condition value and stops searching any further, if not found in table 2 then system starts searching in table 3. If no condition record is found in all the tables, system issues message no record found. Condition type gets zero value. Similarly value for each & every condition type is determined. System calculates (addition & subtraction of condition values) to arrive at net sales price. This net price is basically the price which is charged to customer. Hence GL account for account receivable is debited with this net price.