Integration FI with MM

Integration of SAPFI with MM is done at OBYC.

Let me elaborate... In MM you purchase goods and to which you pay, the purchasing process has the following steps:

Step1: First you send a Purchase Order to the Vendor.

Here there won't be any accounting entry as this is simply like telling the Vendor what goods you want, its quantity and the date of delivery etc.,

Step 2: You will receive the Goods to the Purchase Order.

When you receive Goods you CAN NOT make the following entry

Inventry A/c Dr

To Vendor A/c

because, some of the goods you have received may be damaged or may not be upto the mark or for any other reason goods may reject, so befor posting it to Vendor A/c we keep it in separate place till we verify the goods. And the actual entry will be

Inventry A/c Dr (Transaction Key
BSX @ OBYC)

To GR/IR A/c (Transaction
Key WRX @ OBYC)

Here the goods received is Debited to inventry and Credited to a temperary A/c i.e., GR/IR a/c

Step 3: You will post a Invoice to the Goods received.

Here you will post the invoice after you are satisfied with the goods received, the entry will be

GR/IR A/c Dr

To Vendor A/c

Now the goods are moved from GR/IR A/c and Vendor is Credited. Now you got the final entry of Goods to Vendor Account i.e,

Inventry A/c Dr

To Vendor A/c

i.e, Inventry A/c was Debited and Vendor A/c was Credit and GR/IR A/c is Dr and also Credited henced its balance became 'Zero', and it has to be Zero always.

Step 4: And make Payment to Vendor.

Vendor A/c Dr

To Bank Clearing A/c                                                                          *-- Faisal Khan

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SAP FICO Reference Books:
SAP Financial and Controlling Interview Questions, Certification and Configuration, Books

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