SAP MM- Procurement cycle with Master data's in Materials Management

person icon Ramakrishna Manyam

SAP MM- Procurement cycle with Master data's in Materials Management

SAP MM- Procurement cycle with Master data's in Materials Management

updated on icon Updated on Dec, 2023

language icon Language - English

person icon Ramakrishna Manyam

architecture icon SAP MM,Procurement cycle

Lectures -6

Duration -8.5 hours


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Course Description

SAP MM- Procurement cycle with Master data's in Materials Management

Accounting Entries Effect in Procurement Cycle Concepts- SAP MM&FI:

 As we studied in previous post regarding accounting determination, here we are discussing how the accounting determination is going to work based on the settings you done and which are all the GL accounts its getting hitting based on which scenario and why is the reason behind that.


We have N number of activities in procurement cycle and one of the main thing is Inventory and to know the spend, goods inbound and outbound will take place in plant, we need to depend on reports in SAP and even the reports we will be taken on -which accounting entry for which type of movement or else goods inside and outside will be calculated full based on accounting entries.

While we are defining account determination, we have something called modifiers, many things were surrounded to modifiers.

Each entry in procurement where stock and price are involving then automatically accounting entries will come into picture.

We are doing many activities in Inventory by ordering stock from vendor, Normal order from vendor, Consumables, Subcontracting, Pipeline, Consignment, Physical Inventory, Stock movements like STO/Inter and Intra, return PO, service PO.

Here we will study which accounting entry will affect on what scenario and the reason.


1.Standard PO Order-


This is the normal order where we use to procure from vendor and vendor mainly materials like Raw-materials and finished goods, which are physically used for production purpose.

Once the vendor delivers the goods to plant, based on invoice we need to make a payment to the vendor and APAY will release the payment – Here from which GL account the payment should release.

Because we cannot use some other GL account for these types of materials, as per the company its already predefined in OBYC like which GL account should hit for which type of orders-----these settings are predefined by SAP.

While paying amount to the vendor few accounts will hit automatically with the help of transaction event key.

If anything like stock is getting crediting to plant or withdrawal of stock from plant will reduce or increase the quantity, in those cases BSX will hit automatically.

And for clearing the invoice always WRX will hit and from this vendor account will get paid automatically.

SAP MM- Procurement cycle with Master data's in Materials Management


Check out the detailed breakdown of what’s inside the course

SAP MM- Procurement cycle with Master data's in Materials Management
6 Lectures
  • play icon Class-1a-procurement-cycle-class-4 57:01 57:01
  • play icon Class-2a-material-master-explanation-2nd-clas 01:17:18 01:17:18
  • play icon Class5a-material-typenumber-rangesfield-selection 01:46:12 01:46:12
  • play icon Class-6-vendor-master-and-pir-full-configuration 01:53:17 01:53:17
  • play icon Class-7-purchase-requisition-and-source-list 01:14:57 01:14:57
  • play icon Class-8-purchase-order-and-quota-arrangement 01:34:12 01:34:12

Instructor Details

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Ramakrishna Manyam

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