We can see the valuation class for individual material from t-code MM03. The valuation class (in accounting 1 view) is most important for automatic account posting purpose. Like as material type, material group, purchasing information, sale and distribution information etc etc. In material master, we stored all information for a certain material. We have a material master data in our procurement process. Lets discuss about how the accounting entry are posted and how you can do the configuration. When we do a movement for a material, if the movement is account effect-able, then it will post a account entry in FI. In this part, we learn about MM-FI integration points. We sale the finished material to customer, so customer will pay for this finish material, the payment terms goes to FI modules. At the time finish goods stock is decreased from warehouse, which is goes to MM 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. And the organization has to pay the subcontracting vendor, this will goes to FI module. Then process from raw material to finished material, it goes to MM module.
>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. 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 buy a raw material/product then its coming into warehouse stock, which is goes to MM modules.
In that 3 part the 3 module are integrate each other. 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.
Most of the manufacturing business logic is stands for 3 things BUY-MAKE-SALE We know MM modules means procure to pay process, FI module means financial statement and payment process, SD module means sale to customer process. Here in my blog you can get the knowledge for integration between MM-FI, MM-SD and SD-FI. As we are in MM module, we should know about the integration point. These two modules FI and SD is very much integrated with MM modules.
MM stands for Material Management, FI standard for Financial Accounting, SD stands for Sales and Distribution. As we know about the module MM, FI and SD in SAP ERP.
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