Account Assignment

Revenue Account Determination:
Configuration:
- Check Master data relevant for Account Assignment
For Material and Customer – Define account assignment Groups and assign it to customer master and Material Master.
- Define access Seq. Standard KOFI and KOFK
KOFI – 1. Cust Ac Grp + Mat Ac Grp + Acc Key
2. Cust Ac Grp + Ac Key
3. Mat ac Grp + ac Key
4. Acc Key
5. General (Sales Organization)
- Define Condition Type KOFI and KOFK
- Define account Determination Procedure (Based on condition technique)
- Assign account Determination Procedure to billing Type
B1 – KOFI00
- Define and assign Account Keys to condition types in Pricing Procedures.
- Assign GL account – standard based on
Appl + Condi. Type + chart of acc + Sales Org + Cust Ac Grp + Mat Ac Grp + Acc Key àGL Ac
Ex: V + KOFI + INT + RCSO + 01 + 01 + ERL à 3455

What is Acc Key?
Account helps the system to determine the GL account to post the revenue. We have predefined Acc Keys as below:
ERL – Sales Revenue
ERS – Sales Deduction
ERF – Freight Revenue
EVV – Cash clearing
ERB – Rebate Sales Deduction
ERU – Rebate accruals
MWS – Tax on Sales/Purchase
EXD – Excise

Revenue Recognition:
Configuration:
- Set Revenue Recognition for Item categories.
Select Item category and go to Details: we have to fill three field as below:
Revenue Recognition: Space – Revenue recognition at time of Invoice creation, A – According to the accrual period, B – based on business transaction like good receipt for delivery relavant item or posting of sales order for item not relevant for delivery, D – accordance with the accrual period of the item.
Acc Period Start date : the accrual start date determines the start date of the period in which the revenue should be recognized. It can be proposed based on contract start date, based billing plan start date,
Revenue Distribution type: controls the distribution of revenue among the posting periods in the revenue lines in the time related revenue recognition. Space – revenue distributed evenly across all period and correction value entered in first open posting period. A – as above but correction value also entered evenly among all posting period, B – distributed to posting period according to the invoice plan and correction value to first open posting period, C – as B but correction value distributed evenly to all posting periods.

- Maintain account Determination.
o Assign GL account for revenue and differed revenue. (Like normal Ac determination)
o Assign account for unbilled receivables
Appli + Chart of Ac + Reconciliation Ac à account for non billed receivables.

Reconciliation Account Determination:
(Uses condition Techniques)
Configuration:
- Maintain Access Seq. Standard KOAB Table 8(Sales org+DC) Table 4(General)
- Maintain condition type KOAB
- Maintain Procedure KOFIAB
- Assign Procedure to billing document
Billing document type à KOFIAB
- Assign GL Ac(Based on above access seq.)
Appli + condty + chart of ac + SO + DC à GL account

Cash Account Determination:
For Cash Sales. In normal sales customer account is debited but here as it is cash sales, cash account will be debited. Uses condition techniques.
Configuration:
- Maintain access Sequence CASH Tables: 9(SO+DC+DIV) 4 (General)
- Maintain Condition Type CASH
- Maintain ac Determination Procedure KOFIAC
- Assign Ac Determination Procedure
Billing doc Type à KOFIAC
- Assign GL account
Appli + contype + Chart of ac + SO + DC + DIV à GL A/c
Here Application will be VC – Cash settlement
VC + CASH + INT + RCSO + CR + CD à3344(Cash Ac)

Business Area Account Assignment:
Configuration:
- Define rules by Sales Area. Assign any of below three to sales area
0001 – Based on Plant and division(T134G)
0002 – Based on Sales area (TVTA)
0003 – Based on SO + DS + Item DIV
- Assign business Area to Plant and Division.
If you select 0001 in above than provide following details
Plant + division à Business Area
- Assign business area by Sales Area
If you select 0002 above, than provide following details
SO + DS + DIV à Business Area

Assign Cost Center:
Allocate cost center to specific business transaction or order reason like
Sales Area + Order Reason à Cost center

Assign dunning area
Assign dunning area to individual sales area. This dunning area is than transferred to billing document. Dunning area allows you to use different dunning procedure within company code. All dunning letters issued separately for each dunning area.
Dunning area either entered manually in the document items or determined from assignment of dunning area to sales area which we define here.

SO + DS + DIV à Dunning Area