SAP MM5 topics · study guide

Valuation & automatic account determination

Where logistics meets the general ledger: price control, Material Ledger, OBYC and the GR/IR clearing account.

ScopeUnderstanding this guide is what lets an MM consultant talk confidently with Finance.
01

Material valuation & price control

Each material is valued per valuation area (normally the plant) with a price control: S standard price (variances go to price-difference accounts) or V moving average price (variances update the price where stock covers it).

  • Finished and semi-finished goods normally use S; purchased materials often V (or S with Material Ledger).
  • Valuation class (Accounting 1 view) links the material to G/L accounts; the account category reference restricts allowed classes per material type.
  • MR21 changes price; MR22 debits/credits the stock value.
T-codes & apps
MM02 (Accounting 1)MR21MR22CKM3NOMSK
02

Material Ledger in SAP S/4HANA

The Material Ledger is mandatory in S/4HANA for inventory valuation and supports multiple currencies and valuations in parallel. Actual costing (periodic actual price) is optional and activated separately.

  • Inventory values are kept in up to three currencies per company code.
  • CKM3N shows the material price analysis by period.
  • Actual costing runs through the costing cockpit (CKMLCP) at period end.
T-codes & apps
CKM3NCKMLCPCKMLQS
03

Split valuation

Split valuation values partial stocks of one material separately — by origin (domestic/import), procurement type (in-house/external) or quality/batch. Each valuation type has its own price and accounting data.

  • Activate split valuation globally, then define valuation categories and types (OMWC).
  • The material's valuation category is set in Accounting 1; each valuation type gets its own accounting view.
  • Goods movements must specify the valuation type (or batch, if batch = valuation type).
T-codes & apps
OMWCMM01MIGO
04

Automatic account determination (OBYC)

Goods movements and invoices find G/L accounts through transaction/event keys: chart of accounts + valuation grouping code + transaction key + account modifier + valuation class → G/L account.

  • BSX inventory, WRX GR/IR clearing, PRD price differences, GBB offsetting entries (modifiers VBR, VAX, VAY, VNG, VQP, ZOB…), UMB revaluation, KDM exchange-rate differences, FRL/FR1 freight.
  • Movement types link to keys via value string (OMWN, OMJJ).
  • Simulate with MIGO 'Check' / OMWB simulation before go-live.
T-codes & apps
OBYCOMWBOMWDOMWN
Configuration
IMG › Materials Management › Valuation and Account Assignment › Account Determination › Account Determination Without Wizard
From the field: Run OMWB simulation for every material type × movement type combination in your test plan. It catches missing GBB modifiers before users do.
05

GR/IR clearing & reconciliation

The GR/IR clearing account (key WRX) is credited at GR and debited at IR for the same PO item. Differences remain when quantities or prices differ or documents are missing; they must be analysed and cleared before period close.

  • MR11 maintains GR/IR (writes off small differences, closes items).
  • F.13 / F13E automatically clear matching items; F.19 / FAGLF101 regroups balances for the balance sheet.
  • S/4HANA Fiori app 'Monitor GR/IR Account Reconciliation' supports analysis and responsibility assignment.
T-codes & apps
MR11MB5SF.13FAGLF101Fiori: Monitor GR/IR Account Reconciliation
Put it into practice

Follow one GR into Finance

A PO for 100 units at ₹50 (moving average price) is received. Write the accounting entry at GR and at IR when the invoice says ₹52, for stock fully on hand and for stock already consumed.

Check yourself

Interview-style questions

Which transaction key posts the inventory account?

BSX. WRX posts GR/IR clearing and PRD posts price differences.

What links a material to its G/L accounts?

Its valuation class, together with the valuation grouping code (valuation area) and the transaction key.

Is the Material Ledger optional in S/4HANA?

No for valuation — it is mandatory. Actual costing on top of it is optional.