INTEGRATION OF SAP MODULES

SAP MM and FI INTEGRATION
Process Flow in MM
Step 1 Generating purchase requisition( PP-MM involved)
Step 2 Making inquiries (MM)
Step 3 Raising purchase order (MM)
Step 4 Release of purchase order ( MM)
Step 5 Goods received from vendor ( MM and FI )
Entry will be Raw Material Inventory a/c Dr.
GR/IR clearing a/c Cr.
Step 6 Invoice verification and quality assurance (FI and MM)
Entry will be GR/IR clearing a/c Dr
Vendor a/c Cr
Step 7 Goods issued for consumption(MM, FI and PP)
Entry will be Raw material consumption a/c Dr
Raw material inventory account Cr
Step 8 Production receipt( FI, MM & PP)
Entry will be Finished
goods inventory a/c Dr
Change in stock Cr
Step 9 Finished goods delivered to customer(MM, SD & FI)
Entry will be Change in stock Dr
Finished goods inventory a/c Cr
Step 10 Raising invoice on customers( SD & FI)
Customers a/c Dr
Sales a/c Cr
Step 11 Receipt of payment from customers( Same as SD-FI integration)
CUSTOMIZATION STEPS
Main screen of FI-MM integration is OBYC Here we have to link the MM movement types to FI G/L accounts.
Assign Following G/L accounts to movement type according to valuation class. BSX- Raw material Inventory account GBB- Raw material consumption account WRX- GR/IR clearing account

1. In SAP you will always get integration with other modules. SD will interact with FI, MM will interact with SD :-
1a. Looking at MM and SD interaction first, take the scenario of a third party order process. This 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).
1b. 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.
2. ABAPers are there to essential do some bespoke development. Your integration, or interaction, with them would be when specifying the tables, fields, input fields, a simple process explanation, data mapping (if doing an interface from one system to another) etc. *-- Shahee
The link between SD and MM :-
1. When you create sales order in SD, all the details of the items are copied from Material master of MM.
2. MRP and availibility check related data is also taken from MM although you control this data in SD also.
3. While you create inbound/outbound delivery with reference to a sales order,the shipping point determination takes place with the help of the loading group, plant data, shipping conditions etc. This also refers to Material Master.
4. The material which you are entering in a sales order must be extended to the sales area of your sales order/customer otherwise you cannot transact with this material.
There are many such links between SD and MM.
Now the link between SD and FI :-
1. Whenever you create a delivery with reference to a sales order, goods movement takes place in the bacgground. eg. In case of standard sales order, you create an outbound goods delivery to the customer. Here movement 601 takes place. This movement is configured in MM. Also, this movement hits some G/L account in FI. Every such movement of good s hits some G/L account.
2. The accounts posting in FI is done with reference to the billing documents (invoice, debit note, credit note etc) created in SD. Thus this is a link between SD and FI
3. Tax determination: In case of a tax determination also, there is a direct link between SD and MM
SD Integration points with other modules
SD module is highly integrated with the other modules in SAP. Sales Order –
Integration Points Module
•Availability Check - MM
•Credit Check - FI
•Costing - CO/ MM
•Tax Determination - FI
•Transfer of Requirements - PP/ MM
Delivery & Goods Issue –
Integration Points Module
•Availability Check - MM
•Credit Check - FI
•Reduces stock - MM
•Reduces Inventory $ - FI/ CO
•Requirement Eliminated - PP/ MM
Billing -
Integration Points Module
•Debit A/R - FI/ CO
•Credit Revenue - FI/ CO
•Updates G/ L - FI/ CO
(Tax, discounts, surcharges, etc.)
•Milestone Billing - PS
Return Delivery & Credit Memo -
Integration Points Module
•Increases Inventory - MM
•Updates G/ L - FI
•Credit Memo - FI
•Adjustment to A/R - FI
•Reduces Revenue - FITips by: Subha
SD Transaction Code Flow:
Inquiry / Document type IN Tcode for creation VA11,VA12,VA13. tables VBAK,VBAP
Quotation / QT Tcode for creation VA21,VA22,VA23. tables VBAK,VBAP
Purchase Order PO Tcode for creation ME21,ME22,ME23. tables EKKO,EKPO.
Sales Order OR Tcode for creation VA01,VA02,VA03. tables VBAK,VBAP
Delivery LF Tcode for creation VL01,VL02,VL03. tables LIKP,LIPS
Billing MN Tcode for creation VF01,VF02,VF03. tables VBRK,VBRP
To create a sales order we need purchase order number and custmer number. Before that, to create a purchase order we need to have material no, vendor no.
To create vendor tcode is xk01(create), xk02(change) , xk03(display) Tables are lfa1.
To create custmer tcode is xd01, xd02, xd03. Table is kna1.
After creating sales order using this no we can create delivery note tcode is vl01.

Asset Management

Agencies must maintain asset master records for items
which are considered assets according to DF&A
accounting regulations.The regulations define capitalized
assets as any item over $2,500. This value includes
taxes, shipping, handling and any other cost associated to
the asset.
Items between $500.00 - $2,499.99 are considered low
value assets and are maintained as such. Controlled
items, such as, weapons, radios, cell phones, etc., that are
under $500.00 may also be maintained as low value
assets.
Assets may be purchased, donated, discovered items,
and/or capital projects (assets under construction).

PURCHASED ASSETS

The following are the processes recommended by
the AASIS Support Center for creation and
purchasing asset.
AS01 - Create Asset Master Record
ME51N - Create Purchase Requisition
ME54N - Requisition Approval
ME21N - Create Purchase Order
ME28 - Purchase Order Approval
MIGO - Goods Receipt
MIRO - Invoice Payment

DONATED ASSETS


Items that are donated (given charitably to a State
agency) and meet the criteria for assets must be
maintained in AASIS.

These items are considered a gift and should not be
posted as an expense to the receiving agency's
budget. Therefore, these assets are assigned to the
appropriate non budget relevant (NBR)* asset class.

DONATED ASSETS (cont.)

The agency will create the asset shell and send
an email to DFA/Office of Accounting requesting
that the value be posted. The request to
DFA/Office of Accounting must include the asset
number, capitalization date, and value.

Values should be determined by one of the
following methods:
1. fair market value
2. catalog price
3. value assigned by the donor
4. appraisal of historical item

DISCOVERED ASSET

An item is discovered and the initial accounting
treatment (for the original purchase or acquisition) is
unknown. The original accounting process was most
likely to expense the cost of the item. This means that
the acquisition has already posted against budget and
recording the item as an asset should not be budget
relevant in the current fiscal year. Therefore, these
assets are assigned to the asset class of non budget
relevant (NBR)*.
An asset must be created, value determined,
capitalization date determined. This information is then
emailed to DFA/Office of Accounting for value posting.

ASSET CLASS

The Asset Class:
is used to classify fixed assets
forms a template for the asset master record
establishes the connection between the asset
master record and the G/L postings.

ASSET CLASS - NBR

Asset classes with NBR after the description are
non budget relevant asset classes. This class is
selected for those items that have been acquired as
a gift or donation or for a discovered asset only.

These assets should not be posted as an expense
to the receiving agency's budget, therefore the
transaction is not budget-relevant.

NOTE: DO NOT USE THE NBR (NON-BUDGET
RELEVANT) ASSET CLASSES FOR ANYTHING
BUT DONATED, CONFISCATED OR
DISCOVERED ASSETS.

DEPRECIATION

There are two depreciation areas in AASIS. Both
depreciation areas are shown in the asset master
record:
• Depreciation area 01 - 100% depreciation in the
month of acquisition and is shown as capital
outlay for all assets
• Depreciation area 20 - Straight line depreciation
Depreciation of capitalized (area 20) items (see
note page) is posted each month based upon the
capitalization date and the recommended useful
life of the asset. The depreciation program is
currently run each month by the ASC.

The following asset classes do not depreciate in
Area 20:
• 1000 - Land
• 2100 - *Equip low value
• 3000 - Works of art
• 2101 - Equip low value collective
• 2300 - DIS DP equip low value
• 3020 - Low value works of art
• 8000 - Assets under Construction
*Equip low value fully depreciates in 01 and 20
during period of acquisition.


CAPITALIZATION DATE

The capitalization date is the value date of an asset.
The system determines the asset value date from
the first posting that results in the capitalization of
the asset.

For items that are discovered or donated this date
must be determined according to when the asset
was put into use. The date is entered when the
values are posted to the asset master record.

RECOMMENDED USEFUL LIFE

The recommended useful life is the reasonably
expected length of time for using the asset and applies
only to Depreciation area 20. Within this time period,
the asset should be completely written off. The actual
technical life of the asset can exceed this time period.

The DF&A Office of Accounting has determined that the
recommended useful life in the asset master record
class code description is the useful life that is to be
used.

ASSET UNDER CONSTRUCTION

An Asset under Construction (AuC) is an asset that is in the
process of being constructed, e.g., building, road, etc. It is a
temporary asset and will not be depreciated in area 20. It will
be distributed and settled when the construction has been
completed. Upon settlement, it will be capitalized and begin
depreciation.
At the beginning of the construction process, a WBS capital
project is set up to capture costs associated with the AuC. At
the end of the fiscal year or the completion of the project,
whichever comes first, the capital project is settled. The costs
associated with the project are then posted to the AuC. The
AuC is then distributed and settled to a capitalized asset
when the project is completed. This process is taught in
another AASIS class.

1. Create Asset Master Record:
Accounting> Financial Accounting> Fixed Assets>
Asset> Create> Asset
2. Change Asset Master Record:
Accounting> Financial Accounting> Fixed Assets>
Asset> Change> Asset
3. Display Asset Master Record:
Accounting> Financial Accounting> Fixed Assets>
Asset> Display> Asset
4. Block Asset:
Accounting> Financial Accounting> Fixed Assets>
Asset> Lock> Asset
5. Create Asset Sub-Number:
Accounting> Financial Accounting> Fixed Assets> Asset>
Create> Sub-Number> Asset
6. Asset Retirement by Scrapping
Accounting> Financial Accounting> Fixed Assets> Postings>
Retirement> Scrapping
7. Asset Explorer:
Accounting> Financial Accounting> Fixed Assets> Asset>
Asset Explorer
8. Asset Balances:
Accounting> Financial Accounting> Fixed Assets>
Environment> Worklist> Generate
9. Fixed Asset List:
Special Transactions and Reports>Financial Accounting>Fixed
Assets>Fixed Asset List