account assignment concept

[former_member223456]

Please explaing me what the word account assignment means and what do we mean by account assignment groups?I want to know the concept behind it.

[Former Member · Accepted solution]

Hi sir,

The concept is very simple:

All transactions relevent to business have automatic posting or acconuting entries, in order to keep track of Income and expenditure.

Once we group these accounting entries in to a similar group of G/Ls, it is account assignment group i.e. Domestic Revenues, Cost of Goods sold etc.

Reagrds

DSR

[former_member223456]

thank you

[former_member223456]

answers with simple exampeles will be greatly appreciated.

Thank You

[Former Member]

Dear Brajesh,

Through account assignment group only account determination will be possible.

Account determination :-Application +condition type + chart of accounts + sales org + account assignment group of customer + account assignment group of material + account key + accurval

account assignment group is used to group smiler transactions in to one group and assign those to particular GL.

For ex: in material master we group all materials as trading goods or Performances

like that account assignment group of customer,here we group all domestic customers as domestic revenues and foreign customers as foreign revenues.

Hope you got an idea

Regards

Ram

[former_member223456]

Thanks for replies. From above answers I understood that account assignment group is basically group of G/L account with similar transactions.Please correct me if wrong.Also please give another example.

[jignesh_mehta3]

No. Your understand is not correct.

Account Assignment Group is used to group togather similar Transactions which are to be posted to a Single GL Account.

E.g. -

1. All Domestic Sales are to be posted to GL Account - Domestic Sales. Thus all Domestic Customers as assigned same Account Assignment Group.

2. All Export Sales are to be posted to GL Account - Export Sales. Thus all Export Customers as assigned same Account Assignment Group.

Hope this clarifies,

Thanks,

Jignesh Mehta

[former_member223456]

Does it mean all the revenues,and expenses(dicount ,frieght ect.) related to marticfular customer or material will go to 1 particular g/l account.

[jignesh_mehta3]

No. All values go to differnt Accounts.

Check any Accounting Entry of a Sales Invoice & you will come to know.

But the key here is that, every type of value belongs to a particular category, e.g. Sales Revenues, Freight, Discount, etc.

Account assignment Group in Customer / Material master, makes sure that Domestic Revenues go to particlar GL Account.

LIkewike all Freight values are posted to GL Account for Freight & so on.

Hope this clarifies,

Thanks,

Jignesh Mehta

[former_member223456]

Does it mean revenues from one particular customer/material goes to one particular type of account.

[Former Member]

Hi,

It doesnt mean that the revenue for a particular customer/ Material will be posted in a particular G/L account, because this way thousands of G/L accounts will have to be maintained.

You check in Material master & Customer Master. You will find no. of customer & material with same account assignment group assigned to them.

e.g.- for all Finished Goods - 03

For all domestic customers its 01

Hence all the domestic revenues for Finished goods will be posted in one particular G/L account.

Discounts & Charges (Freight) will be posted in separate G/L account.

The tax deductions will be posted in separate G/L accounts as per the Account keys specified in Pricing Procedure control data.

Hope it helps

Regards,

Ashish