account assignment models

Account assignment templates in SAP Business One

The implementation of account assignment templates in SAP Business One improves the way organisations manage their financial accounting. These powerful tools provide a pre-defined method for allocating postings to the appropriate accounts. As a result, the process of financial transactions is not only accelerated, but accuracy is also significantly improved. In addition, the use of these templates enables improved clarity and control over financial processes, allowing organisations to operate in a more efficient and targeted manner.

What are account assignment models?

Account assignment templates in SAP Business One, in short, are templates that serve to both simplify and standardise the posting of similar business transactions. In particular, they contain information on relevant G/L or business partner accounts, tax codes and the distribution of transaction amounts as percentage values. This enables consistent and efficient accounting. The use of these templates ensures that recurring postings are not only recorded correctly in accordance with tax regulations, but also with the company's internal guidelines, which ultimately contributes to financial integrity and compliance.

Creation of account assignment templates in SAP Business One

The creation of an account assignment template in SAP Business One begins in the module finance where you open the window for account assignment templates and switch to entry mode. After entering a code and a description for the template, you define the relevant accounts with the percentages and tax codes.

For hospitality expenses, for example, a G/L account with 70% is created for tax-deductible operating expenses. In addition, a further account with 30% has been created for the non-deductible portion. The input tax is recognised uniformly with the indicator V2 for 19%, as the deduction restriction does not affect the input tax. The account assignment template deliberately leaves out the contra account open in order to ensure flexibility in the reimbursement of expenses.

Definition of account assignment templates in SAP Business One

Go to account assignment template  under  finance  ?  account assignment template :

Editing the fields for debit and credit in per cent

To create a booking scheme, follow these steps:, the following steps are required to apply a posting scheme in the journal entry window:, select template type, specify template, to use a booking scheme, please note the following points:, edit debit and credit fields, reset template, press 'add' for the journal entry, application in sap business one.

An account assignment template is used when creating a journal entry in the Financial Accounting module. After selecting the account assignment template, the posting lines are automatically filled in with the predefined accounts, percentages and tax codes. This actually simplifies the entry of complex postings considerably and minimises sources of error.

Flexibility for deviating business transactions

An account assignment template in SAP Business One not only offers efficiency and Standardisation . It also provides the necessary flexibility to be able to react to deviating business transactions. By resetting the template, users can adjust the percentage distribution and thus fulfil individual posting requirements.

The implementation of account assignment templates can save a considerable amount of time in your accounting routine. This is especially true for frequently recurring accounting transactions, where the use of such templates is particularly effective. A striking application example of this is the management of the cash book.

By creating specific account assignment templates with memorable names for each type of transaction in the cashbook - be it deposits or withdrawals - the posting process can be simplified considerably. In typical small to medium sized businesses, it is common for cashbook transactions to be repetitive, so a selection of around 30 to 40 different templates is sufficient to cover the majority of these postings.

For the remaining transactions that fall outside this repetitive pattern, it is advisable to carry out classic journal entries. The time savings realised in this way when processing cash book transactions can therefore be considerable.

Read about…

Production planning overview in sap erp, defining enterprise structure in sap erp, material master overview in sap erp, everything to know about purchase requisition, everything to know about purchase order processing, usage of quality inspections in sap and other erp systems, understanding cash journal process in sap, finance organizational structure in sap, everything you must know on asset accounting, erp cloud analytics – benefits and challenges, account assignment model…overview, faqs and valuation.

Account Assignment Model is a reference method used in document entry when the same distribution of amounts to several Company Codes, cost centers, accounts, etc., is frequently used. Instead of manually distributing the amount among accounts or Company Codes, you may use equivalence numbers for distributing both the credit and debit amounts. A cross-Company Code account assignment model can also be created.

The account assignment model may contain any number of GL accounts. The GL account items  need not be complete. The model can be used across several Company Codes, and can even include Company Codes from non-SAP systems.

Remember, The use of account assignment models is limited to GL accounts.

Valuation and Account Assignment

The valuation in SAP can be at the plant level or the company code level. If you define valuation at the plant level then you can have different prices for the same material in the various plants. If you keep it at the company code level you can have only price across all plants.

Valuation also involves the Price Control .Each material is assigned to a material type in Materials Management and every material is valuated either in Moving Average Price or Standard Price in SAP. These are the two types of price control available.

Frequently Asked Questions on Account Assignment Model

1.    The level at which valuation should take place should be determined early in the project.  Once the level is set, it cannot be changed.

True or False

2.    Which is not an example of Valuation Class?

(a) Finished Products (b) High priced labor (c) Raw Materials (d) Semi-Finished Products

3.    The _________ results in the creation of an invoice sent to the customer.

Billing Document

4.    List three prerequisites for configuring automatic assignments

•    Maintain the Chart of Accounts •    Assign Plants to a Company Code. •    Maintain the necessary Material Types.

5.    _________ is the level at which material valuations are carried out.  It corresponds to either a single plant or all plants within a company code.

Valuation Area

6.    The valuation class allows the user to group together materials with similar properties so they can be managed under the same stock account.

7.    The billing document results in the creation of an invoice sent to the customer.   This is a major integration point between the Production Planning Module and the Financial Accounting Module?

False. The billing document results in the creation of an invoice sent to the customer.  However, this is a major integration point between the Sales and Distribution and the Financial Accounting Module.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Featured Posts

• ABAP Keywords (1)
• ABAP Programs (46)
• Articles (1)
• ASAP Methodology (1)
• Business One (1)
• Configuration (6)
• Controlling (CO) (14)
• Customer Relationship Management (CRM) (8)
• Customizing (2)
• Datawarehouse (1)
• Finance (FI) (188)
• Fun Corner (4)
• Industry Solutions (IS) (1)
• Installation (3)
• Integration (4)
• Master Data Management(MDM) (1)
• Material Management (34)
• Migration (1)
• Netweaver (3)
• Plant Maintenance (4)
• Production Planning (PP) (14)
• Project Systems (PS) (2)
• Quality Management (7)
• Sales and Distribution (SD) (77)
• SAP General (255)
• SAP News (3)
• Security (1)
• Supply Chain Management (SCM) (3)
• Tips & Tricks (13)
• Transactions (1)
• Warehouse Management (WM) (13)
• Web Dynpro (6)
• Workflow (5)
• DMCA Information & Copyright
• ERP Database
• Privacy Policy
• SAP Books Store
• Search Results

ABAP (3) ABAP Programs (13) ALV (2) ALV reports (1) Contorlling (1) ERP (1) ERP process (1) FAQs (1) Industry Solutions (IS) (1) News (1) Sales and Distribution (SD) (1) SAP Basis (1) SAP FI (1) SAP Fun (1) SAP General (1) SAP News (1) SAP Tips (2) Tips (1) Tips & Tricks (1) Tips and Tricks (1) Workflow (1)

Account Assignment Model in SAP: FKMT

Account Assignment Model

SAP Menu Path: Accounting –> Financial Accounting –>  Accounts Receivable  –> Document Entry –> Reference Documents –> Account Assignment Model Transaction Code: FKMT

On the “Account Assignment Model: Initial screen, enter the following details.

• Enter Account assignment model reference name
• Click on create icon to create account assignment model

• What is SAP FICO?
• SAP FICO Training Tutorials for Beginners
• SAP FICO Define Account Group
• SAP FICO Reverse Clearing Document
• Foreign Currency Valuation Configuration
• SAP FICO User Exit for Vendor Master
• FICO Vendor Account Group Table
• SAP FICO Withholding Tax
• SAP FICO Dunning Area
• SAP FICO Cash Management Group
• Assessment Cycle vs Profit Center
• SAP FICO Asset Accounting
• SAP FICO Posting Key for Bank
• SAP FICO Document Type
• SAP FICO Document Number Ranges
• SAP FICO Parked Workflow Configuration
• SAP FICO Classic GL vs New GL
• SAP FICO GL Account for Cash Journal
• SAP FICO Accounts Receivable Process Cycle
• SAP FICO Accounts Receivable Configuration
• GR/IR Accounting Entries and Journal Entries
• SAP FICO Chart of Accounts
• SAP FICO Transaction Codes
• SAP AS11 Create Asset Sub-Number
• SAP Business Area and Profit Center
• SAP Inconsistent Withholding Tax Info
• SAP Active vs Passive Document Splitting
• Reverse MIRO Document in SAP
• SAP FICO Scope and Opportunity
• FICO Certification Cost in India
• SAP FICO Interview Questions
• SAP FICO Tree Menu

What is Account assignment in SAP FICO ?

Updated Apr 01, 2023

Account assignment is a critical aspect of financial accounting and management in any organization. It refers to the process of allocating financial transactions to specific cost or profit centers, projects, or business processes. By properly assigning financial transactions to the appropriate account, organizations can accurately track their expenses, revenues, and profitability. This information can then be used to make informed decisions about resource allocation, cost control, and overall financial management. 

In SAP FICO, account assignment is a core module that offers various types of account assignment options, including cost center accounting, profit-center accounting, internal order accounting, and WBS element accounting. These options provide organizations with greater visibility into their financial performance, enabling them to optimize their operations and drive greater value for their stakeholders.

Types of  Account Assignment 

There are several types of account assignments in SAP FICO, including:

• Cost center accounting 
• Profit center accounting
• Internal order accounting
• WBS element accounting

i) Cost center accounting 

Cost center accounting is the process of tracking and analyzing costs associated with each department, function, or unit of an organization. SAP FICO provides a module that allows organizations to create and manage cost centers, allocate expenses, and generate reports to track performance.

By tracking expenses at a granular level, organizations can make informed decisions about resource allocation, identify areas of inefficiency, and make changes to improve overall performance, reducing costs and increasing efficiency.

ii) Profit center accounting

Profit center accounting is a process that allows organizations to track revenues and expenses at a granular level, providing insights into the profitability of individual business units, product lines, or geographic regions. By allocating revenues and expenses to specific profit centers, organizations can generate reports that help identify areas of high profitability or inefficiency.

SAP FICO provides a comprehensive profit center accounting module that enables organizations to create and manage profit centers, allocate revenues and expenses, and generate reports to analyze profitability. This information can be used to make informed decisions about product lines, investments, and resource allocation, enabling organizations to optimize their profitability and drive growth.

iii) Internal order accounting 

Internal order accounting is a process that allows organizations to track and control expenses associated with a specific project, event, or business process. By assigning costs to a specific internal order, organizations can monitor actual expenses versus budgeted expenses, and ensure that resources are allocated efficiently.

iv) WBS element accounting

WBS (Work Breakdown Structure) element accounting is a process that allows organizations to track and control expenses associated with a specific project or work breakdown structure. It involves breaking down large projects into smaller, manageable tasks or work packages, each of which is assigned a WBS element.

Expenses are then allocated to each WBS element to track actual versus planned expenses and ensure that resources are allocated efficiently.

Advantages of  Account Assignment 

The advantages of account assignment in SAP FICO include:

Better visibility: Account assignment allows organizations to track expenses and revenues at a granular level, providing better visibility into financial performance.

Resource allocation: By tracking expenses and revenues, organizations can make informed decisions about resource allocation, ensuring that resources are allocated efficiently.

Cost control: By identifying areas of inefficiency or waste, organizations can make changes to control costs and improve profitability.

Accurate reporting: Account assignment provides accurate reporting and analytics, enabling organizations to make informed decisions about their financial performance.

Compliance: Account assignment helps organizations comply with regulatory requirements and accounting standards.

How to Define Account Assignment?

Please follow the steps below to define the account assignment:

Execute t-code OKB9 in the SAP command field as shown in the image below.

On Change View "Default account assignment": Overview you will see the list of default account assignments.

Next, click the  New Entries button to create a new account assignment.

In the next window, enter the following fields:

• Cost Ctr 

Now click on the Save button to save the new account assignment.

Now in order to post a test document to check that the account assignment works, execute t-code FB50 in the SAP command field.

On the next popup enter Company Code as shown below.

Now on the next window, click Tree On button.

Next, select the Screen Variant in the next window and click Tree Off button.

In the next window, enter the following fields according to your requirements:

To make the document assignment, click the Post button.

The account assignment is now defined and can be used for tracking expenses and revenues at a granular level in SAP FICO.

• 04 Dec 2013 7:51 am rekha Account assignment is used in Sap Fico if you frequently use the same broad account assignments, such as a distribution of amounts to several company codes, accounts, or cost centers, you can use the account assignment model method to save input time and avoid input errors. The use of account assignment models is limited to G/L account items. T-code OK17 is used in the account assignment. If you have CO-FI real-time integration active you need this account assignment.

• FINANCIAL SERVICES HOME

Search form

• News & Events

Introduction of a new manual journal entry transaction – FV50

Duke Finance is excited to announce a new SAP transaction for creating manual journal entries. The new transaction, FV50 – Park GL Account Document, offers improved transaction mechanics, increasing the ease and efficiency of processing journal entries. FV50 will replace SAP transaction F-65 – Park Document.

Additionally, account assignment templates will replace account assignment models used by many in the Duke community to assist with manual journal entries. Like models, account assignment templates provide processing efficiencies for those users who create routine manual journal entries.

The designated transition window for users to move to FV50 will run between May and August 2023. During this window, Duke Finance is offering overview sessions focusing on the following:

• Specific details on the FV50 transaction, including a demonstration.
• Guidance on journal entry functionality that is not changing, including using ZF104 for JV uploads, transaction ZF418 for managing cost transfers for federally sponsored projects, workflow routing and approval, and other reports helpful to managing journal entries.
• Details on the online resources and training material that will be available to assist with the transition.

As of September 1, 2023, Duke will remove the current manual journal entry transaction – F-65 – Park Document – SAP journal entry transaction and all users will be required to utilize transaction FV50 for processing of manual journal entries.

To prepare for the transition:

• May 25, 10:00 am – 11:30 am
• June 15, 10:00 am – 11:30 am
• July 19, 2:30 pm – 4:00 pm
• August 22, 10:00 am – 11:30 am
• If you currently use account assignment models, Duke Finance will assist in creating account assignment models as account assignment templates. Submit the name of the account assignment models that must be created as templates via this survey by July 31, 2023.

Thank you for your support during this transition. If you have questions regarding the new transaction, please contact Accounting Systems Administration at [email protected] .  If you have questions regarding the overview sessions or training, please contact the Office of Education for Research Administration and Finance at [email protected] .