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Account Determination in SAP S/4HANA

Account Determination in SAP S/4HANA

A comprehensive guide to understanding and configuring account determination for Materials Management

What is Account Determination?

Account Determination is the process by which SAP automatically identifies the appropriate General Ledger (GL) accounts to be posted during various business transactions in Materials Management.

Instead of users manually entering GL accounts in each transaction, SAP uses predefined rules based on organizational structures, master data, and business processes to automatically determine the correct accounts.

Why is Account Determination Important?

Accuracy

Reduces manual errors in financial postings

Efficiency

Streamlines transaction processing without manual account entry

Consistency

Ensures uniform accounting across the organization

Key Influencing Factors

Organizational Structure

Company Code, Plant, Chart of Accounts, Valuation Area, Valuation Group

Master Data

Material, Material Group, Valuation Class, Vendor

Business Process

Movement Type, Transaction Key, Account Modifier/Group

Important Configuration Node

The OBYC configuration (IMG: MM → Valuation & Account Assignment → Account Determination without Wizard) is where most account determination settings are maintained.

Basic Financial Flow in Procurement

1. Purchase Order

No financial posting occurs

Budget commitment only

2. Goods Receipt

Inventory Account Debit
GR/IR Clearing Account Credit

3. Invoice Receipt

GR/IR Clearing Account Debit
Vendor (Reconciliation Acct) Credit

Transaction Keys Used:

  • BSX: Used for inventory account determination
  • WRX: Used for GR/IR clearing account determination
  • GBB: Used for consumption accounts (when material is directly consumed)

Key Components of Account Determination

Chart of Accounts

The Chart of Accounts is a structured index of all GL accounts organized in a hierarchical manner. It defines:

  • The structure of GL accounts
  • Account groupings (assets, liabilities, etc.)
  • Numbering ranges for accounts
  • Rules for account creation

Important Note:

In account determination, the Chart of Accounts (e.g., YCOA) must be specified in the OBYC configuration as it defines where to find the GL accounts.

Hierarchy Structure:

Chart of Accounts → Company Code
Chart of Accounts → Account Groups
Account Groups → GL Accounts

Account Determination Process Flow

1. Transaction Execution

Org Structure Data

Plant, Company Code

Master Data

Material, Material Group

Process Data

Movement Type, Transaction

2. Determine Key Parameters

Chart of Accounts

From Company Code

Transaction Key

From Movement Type

Valuation Group

From Plant

Account Modifier

From Business Process

Valuation Class

From Material/Group

3. OBYC Table Lookup

Chart of Acct. Trans. Key Val. Group Acct. Modifier Val. Class GL Account
YCOA BSX 001 - 3000 131000
YCOA WRX - - - 211200
YCOA GBB 001 VBR 3000 400000

4. Financial Document Posting

Account Amount
131000 (Inventory) 100.00 DR
211200 (GR/IR) 100.00 CR

Transaction: Goods Receipt

Movement Type: 101

Material: Raw Material (Val. Class 3000)

Plant: Plant 1 (Val. Group 001)

Important Note on OBYC Configuration

There are several important behaviors to understand when configuring OBYC:

  • Each transaction key (BSX, WRX, GBB, etc.) has its own set of rules that can be activated
  • Changing the rules (e.g., adding valuation modifier) will clear all existing entries in the table
  • Always export existing entries before changing rules
  • Different transaction keys may use different parameters by default
  • The account modifier is primarily used with GBB (consumption) and PRD (price difference)

Common Transaction Keys

Transaction keys are hardcoded in SAP and automatically determined based on the business process. Here are the most commonly used transaction keys:

Transaction Key Description Used For Common Scenarios
BSX Inventory Posting Determines inventory GL accounts GR for stock materials (101)
WRX GR/IR Clearing Determines GR/IR clearing account GR against PO (101)
GBB Consumption Posting Determines consumption accounts GI to cost center (201), GI to production (261)
PRD Price Difference Determines price difference account Invoice with price difference, price changes (MR21)
BSV Sales Posting Determines COGS accounts GI for delivery/sales (601)
UMB Revaluation Determines accounts for revaluation Material revaluation
FR1/FR2 Freight Postings Determines accounts for freight Freight settlement

GBB + Account Modifier Combinations

GBB is typically used with an account modifier to determine the appropriate consumption account:

  • GBB + VBR: Consumption to cost center
  • GBB + AUF: Consumption to production order
  • GBB + BSA: Consumption to asset
  • GBB + KOA: Consumption to internal order
  • GBB + PEK: Consumption to project
  • GBB + VKW: Consumption to sales order
  • GBB + RES: Standard cost estimate with account determination

How to Find Which Transaction Key is Used

To identify which transaction key is used in a specific scenario:

  1. Perform the transaction (e.g., goods receipt)
  2. Display the material document
  3. Go to "Document Info" → "FI Documents"
  4. View the accounting document
  5. The transaction key will be displayed with each line item

Account Determination Examples

Goods Receipt Example

Scenario:

A company receives 10 units of raw material with a PO price of $10 per unit, totaling $100.

Transaction Data:

  • Transaction: MIGO (Goods Receipt)
  • Movement Type: 101 (GR for PO)
  • Material: Raw Material (Valuation Class: 3000)
  • Plant: Plant 1 (Valuation Group: 001)
  • Quantity: 10 units
  • Value: $100

Account Determination Process:

  1. System identifies Chart of Accounts (YCOA) from Plant's Company Code
  2. Business process (GR against PO) determines Transaction Keys:
    • BSX (for inventory posting)
    • WRX (for GR/IR clearing)
  3. System gets Valuation Group (001) from Plant
  4. System gets Valuation Class (3000) from Material Master
  5. System looks up GL accounts in OBYC configuration:
    • For BSX + Val. Class 3000 → Inventory Account 131000
    • For WRX → GR/IR Account 211200

Resulting Financial Document:

Account Description Debit Credit Transaction Key
131000 Raw Material Inventory $100.00 BSX
211200 GR/IR Clearing $100.00 WRX

Important Configuration Notes

When configuring account determination for your business requirements:

  • Always test account determination thoroughly in a non-production environment
  • Document all custom configurations, especially any changes to account modifiers
  • Coordinate with Finance team to ensure GL accounts are correctly setup and extended to all company codes
  • Be careful when modifying OBYC rules as changing rules can delete existing entries
  • Back up OBYC settings before making changes to avoid loss of configurations

Account Determination is a complex topic in SAP S/4HANA. This guide covers the key concepts but actual implementation may vary based on specific business requirements.

© 2025 SAP Account Determination Knowledge Guide

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