FI-MM INTEGRATION

Content:

o Overview on integration
o Procure to pay cycle
o Configuration overview
overview:
Most of the manufacturing business logic is stands for 3 things BUY-MAKE-SALE
It means an organization buy a raw material/product from a vendor, then he makes from this raw
material/product to finished material/product, then he sale the finished material/product to a customer.
In that 3 part the 3 module are integrate each other.
—>When the organization buy a raw material/product then its coming into warehouse stock, which is
goes to MM modules. And because of the organization has buy something from a vendor, he has to
pay for this to the vendor, which id goes to FI modules.
—>When the organization make the raw material to finished material, at that time the organization
needs a subcontractor vendor, who will make the subcontracting process. Then process from raw
material to finished material, it goes to MM module. And the organization has to pay the subcontracting
vendor, this will goes to FI module.
—>When the organization sale the finished material to customer, They have to proceed the sales
process (Like as sales order, delivery, billing etc.), its goes to SD modules. At the time finish goods
stock is decreased from warehouse, which is goes to MM module. We sale the finished material to
customer, so customer will pay for this finish material, the payment terms goes to FI modules.
procure to pay process:

Procure to pay process also known as purchasing processor p2p cycle

 No accounting document is
generated when po is created
purchase Purchase Goods receipt
requisition order Dr stock BSX
MIGO
ME51N ME21N CR grir clg account WRX

Invoice receipt
Dr grir clg
MIRO
Cr vendor

payment Dr vendor
F110 Cr Bank

After vendor payment bank statement is received from bank is loaded Dr Bank clg a/c
into sap. (bank reconciliation process) Cr Main bank
 Configuration overview:

Account determination:
1. group together valuation area: valuation area is assigned to cocd (omwd)
2.valuation class: it is a main integration point of fi&mm.it means how the material is posted in respective of GL’s when the
material movement transactions will be occurred (Omsk)
3.automatic configuration:(obyc) we assign GL’s with the combination valuation class &account modifier