How does automatic account determination work?

Question

Accepted Answer

Automatic account determination in SAP MM assigns GL accounts based on predefined rules during procurement processes.

It uses account assignment categories to determine the correct GL account.
For example, a stock material may use a different account than a non-stock material.
The valuation class of the material is crucial; it links to the GL account in the chart of accounts.
Transaction types, such as goods receipt or invoice receipt, trigger different account postings.
Customizing settings in the configuration allow for specific rules based on company requirements.

Accepted Answer

Automatic account determination is a configuration - driven process that links material movements to specific G/L account based on predefined criteria. SAP identifies the general ledger account to which postings are made for accounting - relevant transactions without user intervention....

Accepted Answer

Various transactions in MM are relevant for accounting such as goods receipt, good issue and invoice receipt. In such cases , the system always creates accounting documents and posts the amount in the appropriate general ledger GL accounts. GL accounts are automatically determined with the help of automatic account Determination settings.
It is depends on five factors
1. Chart of accounts 
2. Valuation grouping code
3. Valuation class
4. Transaction / event key
5. Account grouping code
chart of account is nothing but we are assigning chart of account to the company code. The transaction code is OB62.
and valuation grouping code is assigned to company code and plant depends on at what level material set up in the system. In material valuation grouping code is active then same GL account can be used in different plant and if it is not active the same GL account cannot be used in different plants.
third is Valuation class, in valuation class material type having account category reference and ACR having Valuation class and valuation class having GL account.
4th step is transaction / event key in that movement type having a value string and value string having transaction/ event key.
and final step is account grouping code. Transaction / event key having account grouping code

Accepted Answer

It is a concept of integration between MM & FI

Valuation Class will be acting like a bridge in integration

The valuation class will be assigned in accounting 1 view of material master

Valuation class will be assigned with different GL Accounts under different transaction Keys in OBYC

Accepted Answer

procurement process involves cost of goods and services that needs to be paid to vendor by an organization in SAP system some configuration for account determination is
done so that system will automatically determine the correct G/L account that needs to be posted. G/L account is posted when goods receipt is done as well as during clearing invoice verification. Account determination deals with the following terms which are as follows

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How does automatic account determination work?

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