SD: Revenue account Determination- Condition Technique

[Former Member]

Dear Sir,

I did make a search before posting this question, but could'nt find a suitable answer.

I understand that the system uses condition tech. in revenue acc determination .i.e Chart of accounts+Sales Org+AAG(Cust)+AAG(MAT)+Acc Key+GL Acc

However, can you please help me in understanding how exactly it works (practically) after releasining it to accounts in VF02. How does it flow and how does it get triggered from pricing procedure?

We assign the KOFI100 in Billing type, what role does it has in Revenue acc det.

Rgs

Satish Pattabhi

[Former Member]

Hi

1.understand that the system uses condition tech. in revenue acc determination .i.e Chart of accounts+Sales Org+AAG(Cust)+AAG(MAT)+Acc Key+GL Acc

You are maintaining  the same in VKOA.here Account key and g/l plays the major role.

Account key you will be assigning against  to condition type  in pricing procedure.

Value of the same condition type in the invoice will be carried forwarded to accounting through account key and respective G/l which you have assigned in the VKOA.

2.We assign the KOFI100 in Billing type, what role does it has in Revenue acc det.

  KOFI100 is a procedure which will have condition types KOFI and KOFK.IF You check VKOA you an find these condition types.usually KOFI will be assigned for revenue accounts..

Raneesh

[former_member209023]

Hello Satish,

The Integration between FI-SD will be happened through Account determination.

It is at the time of billing when the Actual integration will reflect from SD to FI.

Once the billing is done the Invoice is automatically created in FI.(Doc.type is RV)

The billing will flow from SD-FI as RV document(Sales Invoice= DR document).

The Price will be picked through a condition technique which is defined in the pricing procedure by the SD consultants.

Access sequence will help to pick the most appropriate price depending upon the parameters.

Parameters here could be Material,Sales organisation,Customer etc...

Prices will be defined from Most specific to most general for various combination of parameters in the access sequence.

Data will hit appropriate GL Accounts which you mention in T.code:VKOA

Sales Process: The sales order forms the basis of the sales process. Once a customer has placed an order, a sales order must be created at the start of the process. The sales order is generated at the distribution chain level. The ordered items can be from different divisions. The sales order is a document in SD and does not cause any postings in Financial Accounting. When the sales order has been entered, the system carries out an availability check for the required delivery date.

On the day of shipping, an outbound delivery document is created. Billing for the delivery can only take place when the goods have been taken from the warehouse stock and posted as a goods issue.

The warehouse management function is used for picking . A transfer order has to be created, which generates the pick order. The requested goods are taken from the warehouse and prepared for delivery.

The goods to be delivered are posted as a goods issue . A goods issue document is created in MM, and an accounting document is created in FI so that the goods issue is posted to the correct G/L accounts.

The last stage in the sales process is billing. A billing document is created in SD, and a printed invoice is sent to the customer. At the same time, a document is created in FI so that the receivables and revenues can be posted to the correct accounts.

This is known in the IMG as "revenue account determination", but it covers a lot more than that (discounts, taxes etc).  This is what determines how the financial impact of your SD Billing document is posted into the FI General Ledger.

The integration is controlled both in SD and in FI.

In SD there is a awesome area of configuration called the pricing procedures.   The pricing procedure determines the final price quoted to the customer for a particular product.  This could be a complicated calculation taking into account the base price, any special prices or discounts that may apply to that scenario, taxes, freight charges etc.  These prices or charges are called 'condition types'.  This condition technique is used in a number of areas of SAP.

For now all we need to know is that each condition type is assigned to an account key (or in the case of rebates two account keys).  You can assign multiple condition types to the same account key. There are a number of account keys that are pre-defined in the system. For example:

     ERF freight revenues

     ERL revenues

     ERS sales deductions

     EVV cash settlement

     MWS sales tax

Now we start getting to the integration by mapping the account keys to GL accounts.  But it is not as simple as that. It can be as flexible (ie: as complex) as you want. Start off with the most simple approach.  Generally if one is using a good sales / revenue reporting tool (eg: CO-PA) then one does not need a lot of flexibility and variety in the GL accounts that are posted to.  The level of detail that you need in GL should be determined by your financial statement reporting requirements - you may end up with only one Revenue account - it is a good bet!

So, taking the simple approach we would ignore most of the configuration possibilities : procedures, access sequences, condition tables etc  (Yes it is that 'condition technique' kicking in again.  Once you have worked through it once in one area and encounter it in another then hopefully you will be comfortable in knowing that most of the standard configuration can be left as is. )  

We have to decide which access sequences we want to use (Five access sequences are defined in the standard SAP R/3 System). To keep it simple, let us assume we just use one - for example: the access sequence "chart of accounts/sales org./account keys".

The chart of accounts part is standard in all account determinations, so let us look at the rest.  This access sequence allows us to specify different GL accounts for different Sales Organizations. 

So if we had a billing document line item where the customer had some special deductions for one of the products he purchased, we could map accounts by Sales Organization.  To make it even simpler a document is within one Sales Organization so we have an overall mapping as follows:

SD Line Item      Condition type     SD Amount     Account Key     Sales Organization     GL Account

1      Sales deduction for being such a nice guy     $10     ERS     1000     800010 - Sales deductions for 1000

     Sales deduction for special promotion on particular product     $15     ERS         

     Base Revenue     $200     ERL          800000 - Revenue for Sales Org 1000

     Total for item 1     $175     

2     Base Revenue     $100     ERL     1000     800000 - Revenue for Sales Org 1000

     Total for item 2     $ 100     

Document Total     $ 275     

So the invoice that the customer gets (and that you can view in SD) will look something like:

Item (Note this is the SD Invoice line item)     Amount

Item 1:      $175

Item 2:      $100

Total owing , 30 days terms etc:      $275

The GL document posting that the system will make to FI will look something like this though:

FI Line Item      Debit / Credit      Account     Amount

1     Debit (PK=01)     Customer (AR Account)     $ 275

2     Credit (PK=50)     Revenue (GL Account)     -$ 300

3     Debit (PK=40)     Sales Deduction (GL Account)     $25

Balancing to 0 as all GL documents must....     $0

Note : There is no direct relation between an SD Line item and an FI Line Item - they are different things.

Please follow the below link 

http://help.sap.com/saphelp_470/helpdata/en/2d/bdd69dd9b411d199d80000e8a5bd28/frameset.htm

http://sapdocs.info/sap/sd-related-topics/revenue-account-determination-guide-in-sap-sd/

Best Regards,

Nagaraj B Patil

[Former Member]

Mr Patil, Thanks for your quick response.

From the above discussion i understand that the billing information flows from SD-FI as RV Doc and hits the respective GL acc.

If this is the case, what is the purpose of maintaining Pricing Proc (KOFI00), Access Seq(KOFI), Cond Types (KOFI)

And why should we maintain the KOFI00 in Billing Type. What is the use of this?

Am not getting clarity in this....am trying to understand how exactly it uses the condition tech. in Revenue acc det.(The Flow)

Rgs

Satish

[jpfriends079]

Nagaraj Patil

Moderator Remarks:

Content of your post is copied from following link:

http://scn.sap.com/thread/499201

Plagiarism is strictly prohibited in SCN. Kindly adhere the rules of engagement.

[former_member209023]

Dear Jyoti Prakash,

Thanks a lot for pointing out my slip; my apology for the same.

Being into consulting with hectic schedule no one has patience/time to type each word; Entire globe do copy from somewhere and post it here with cosmetic change to actual content.

Nagaraj B Patil

[Lakshmipathi]

no one has patience/time to type each word 
Entire globe do copy from somewhere and post it here with cosmetic change to actual content.

Does it mean that since the entire world is doing wrong, you can also do ?? .   Instead of copy pasting the entire documentation, henceforth, please provide the link and that too, if it is not a repetitive one or a basic query.   By doing so, members like you can reduce the load of Moderators' job.

G. Lakshmipathi