Relevance of Account assignment group of Material in SD revenue postings

[Former Member]

Hi All,

We have a requirement to change the existing Account determination:

1) Currently the Revenue account determination is done without considering the account assignment group of

material

Rather it is based on the (sales organization) and account key (this account key is linked to the

Condition types of the pricing procedure).

What is the relevance and significance of using account assignment group of material for revenue account determination.

Is this linked to the valuation class?

Please help....

Thanks

Montee

[Former Member · Accepted solution]

Hi Monti,

I dont think so as Account assignment group for this material used for Grouping of materials with the same accounting requirements.It is Used by the system when creating an accounting document from a billing document to determine the revenue. It is only a indicator to determine G/l Account maintained for particular set of materials through VKOA.

Regards

Amit

[Former Member]

hello, friend.

account groups, both for materials and customers, allows further flexibility in account determination. it allows you more options in determining which GL accounts revenues, expenses and other items must be posted to, given a specific combination of assignment groups.

so if before you do account determination based only on condition types, now you can specify that transactions involving certain materials can be posted to a different GL account for example.

if you observe the access sequence in account determination, the priority for sequence would be from specific to general. this means that if you have several account determination schemes in VKOA, the system will give priority to account determination based on more factors (Application/Sales org/Chart of accounts/Cust Act grp/Material Act grp/Act key/GL), over another which is more general.

regards.

[Former Member]

Hello Friend,

When billing data is transferred from SD to FI-AR (Financial Accounting u2013Accounts Receivables), G/L Accounts for posting sales revenue, sales deductions, freight, taxes,can be determined automatically

Different criteria can be set for account determination like

Chart of accounts

Sales organization

Account assignment group for payer

Account assignment group for material

Account key

Account assignment group of payer allows to do certain postings for a customer or group of customers to specific G/L accounts. like, Discounts offered to corporate and retail customers can be posted to different G/L accounts so that they can be tracked separately.

Account assignment group of material allows to do certain postings for a material or group of materials to specific G/L accounts. like, Sales revenue for bye-products need to be posted to G/L account different than for the main products so that revenues can be evaluated and reported differently.

Account keys are assigned to condition types in pricing procedure. Some of the standard account keys are ERL- Sales Revenue, ERS - Sales deduction & ERF - Freight Value.

Standard system has Account Determination procedure u2018KOFI00u2019available with following condition types:

KOFI u2013Without controlling

KOFK u2013With controlling

Account determination takes place during posting of billing document to Financial Accounting. Account determination procedure is assigned to billing type from where the revenue account determination is triggered.

[Former Member]

Hi,

Material Account assignment group is not link with valuation class.....

Material account assignment group help to bifurcate revenue account like...Trading Material Sales, Finished Goods Material Sales and Other Material sales etc...

Thanks & Regards,

Ratish

[former_member204513]

Dear Montee,

Through material account assignment group you can segregate the sales revenues for different materials.

For example there are the different account assignment groups

00 Finished Products

01 Trading Goods

02 Services

03 Raw Material

04 Components

05 Stores & Spares

06 Scrap

I hope this will help you,

Regards,

Murali.