Automating Postings Between FI and MM in SAP FICO

In SAP FICO, automating postings between Financial Accounting (FI) and Materials Management (MM) is essential for ensuring smooth integration between the procurement process and financial transactions. This integration allows for automatic accounting entries when goods are received, invoices are processed, or materials are consumed. In this article, we will guide you through the process of automating postings between FI and MM step by step, along with examples to ensure a clear understanding.

Step 1: Understand the Integration Points Between FI and MM

Before configuring the automation of postings, it is essential to understand the main integration points between the FI and MM modules:

• Goods Receipt (GR): When goods are received in the system, an automatic accounting entry is generated in FI for inventory and inventory-related expenses.
• Invoice Receipt (IR): When an invoice is posted in MM, the system creates a corresponding FI entry to update the accounts payable.
• Material Consumption: If materials are consumed (e.g., for internal use), the system will post relevant entries to FI for inventory and expenses.

Step 2: Configure Automatic Postings in MM

The first step to automating postings is to configure the settings in the Materials Management module. In MM, we define how the system automatically posts transactions to FI when goods are received or invoices are posted. To configure automatic postings in MM:

• Go to transaction OMJJ to configure the automatic account determination for goods movements.
• Select the Movement Type (e.g., "101" for goods receipt). This movement type determines the type of goods movement, such as receiving stock from a vendor.
• Click on Account Determination and specify the G/L accounts that should be automatically posted for each movement type. These accounts typically include inventory accounts, expense accounts, and stock-in-transit accounts.
• Click Save to confirm the configuration.

Example: For movement type "101," you might define the following accounts:

• Inventory Account: 120000
• GR/IR Account: 200000

Step 3: Configure Automatic Postings for Invoice Receipts

To automate postings when invoices are received and posted in MM, you need to configure the invoice verification process to automatically generate the corresponding FI entries. To set up automatic postings for invoice receipts:

• Go to transaction OMJH to configure automatic account determination for invoice receipts.
• Choose the Invoice Receipt Account for the vendor transactions, such as accounts payable or GR/IR clearing accounts.
• In the Automatic Postings section, assign the G/L accounts for the vendor and GR/IR clearing accounts that should be updated during the invoice receipt process.
• Click Save to complete the configuration.

Example: For the invoice receipt process, you might define:

• Accounts Payable: 300000
• GR/IR Clearing Account: 200000

Step 4: Define Posting Keys for FI-MM Integration

In order to automate the posting process between FI and MM, posting keys must be defined for the different types of transactions. Posting keys specify the type of transaction (e.g., debit or credit) and the account involved in the posting. To configure posting keys:

• Go to transaction OB41 to define posting keys.
• In the Posting Key section, define the posting keys for the transactions, such as "31" for goods receipt and "33" for invoice receipt.
• Specify whether the posting key is for debit or credit entries and which accounts will be affected.
• Click Save to confirm the configuration.

Example: You might define posting keys like:

• 31: Debit – Goods Receipt (Inventory account)
• 33: Credit – Accounts Payable (Vendor account)

Step 5: Configure the GR/IR Clearing Account

The GR/IR (Goods Receipt/Invoice Receipt) clearing account plays a crucial role in reconciling the differences between goods receipts and invoice receipts. When an invoice is posted, the system automatically clears the GR/IR account, but if there is a mismatch, it remains open. To configure the GR/IR clearing account:

• Go to transaction OMWJ to set up the GR/IR clearing account.
• In the Account Determination section, specify the G/L account used for the GR/IR clearing.
• Ensure that the account is correctly mapped to both the goods receipt and invoice receipt processes.
• Click Save to confirm the settings.

Example: For the GR/IR clearing process, you can assign account "200000" as the GR/IR clearing account to ensure proper reconciliation between goods receipts and invoice receipts.

Step 6: Automating Postings for Stock Movements and Invoice Verifications

Once the configuration is done, you can automate postings for stock movements and invoice verifications by following these steps:

• Go to transaction MIRO to post an invoice receipt.
• Enter the necessary invoice details, such as the vendor, invoice amount, and goods receipt reference.
• Click Save to post the invoice. The system will automatically generate the FI postings for the invoice receipt, such as accounts payable and GR/IR clearing.

Example: When posting an invoice for a goods receipt, the system will automatically post:

• Credit to Accounts Payable (Vendor Account)
• Debit to GR/IR Clearing Account

Step 7: Monitor and Review Automated Postings

After automating the postings, it is important to monitor and review the entries to ensure that the FI and MM integration is functioning correctly. You can use various reports to review the posted transactions.

• Go to transaction FBL1N to review vendor accounts and their respective postings.
• Use transaction MB03 to view material documents and review the associated accounting entries.
• Check the GR/IR clearing account for any unmatched transactions using transaction MB5S.

Example: Running the report for vendor accounts with transaction FBL1N will allow you to review the open and cleared invoices, while MB03 will show the material document and the related FI postings.

Step 8: Troubleshooting and Adjustments

If the automated postings between FI and MM are not working as expected, you may need to troubleshoot and make adjustments to the configuration. Common issues include incorrect account assignments, posting key mismatches, or GR/IR clearing discrepancies. To resolve these issues:

• Review the account determination settings in OMJJ and OMJH.
• Ensure that the correct G/L accounts are assigned to the relevant movements and invoice receipts.
• Check for any open items in the GR/IR clearing account using MB5S.

Example: If the GR/IR clearing account is not being cleared, check the invoice receipt and goods receipt postings to ensure they match in terms of quantities and amounts.

Conclusion

Automating postings between FI and MM in SAP FICO streamlines the procurement and financial accounting process, reducing manual intervention and ensuring accurate and timely financial reporting. By following the steps outlined in this article, you can configure the system to automatically generate the necessary accounting entries for goods receipts, invoice receipts, and material consumption. Regular monitoring and troubleshooting will help maintain the integration and ensure smooth operations between the two modules.