Revenue Account Determination - SAP SD

Revenue account determination is one critical integration point between Sales & Distribution and Financial Module.

Here on posting a billing document to account, based on this revenue account determination, system determines relevant G/L accounts for revenue posting. As like any other basic function configuration like pricing, its configuration also based on condition technique.

The condition technique is used in account determination in order to allocate the correct GL account and account key assigned in the pricing procedure against condition types carries the condition values from SD to FI.

IMG -> SD -> Basic Function -> Account Assignment -> Revenue account determination -> Check master data relevant for account assignment.

Through check master data relevant for account assignment, one has the opportunity to create account assignment grouping criteria. This grouping criteria provides the system with an extra variable in determining the required account number. For ex, by selecting check master data relevant for account assignment in materials: account assignment groups, one can specify whether a material should be classified as a trading item, service item, finished product etc. After the creation of these we should make sure they are assigned to the material master record. The same is true for customer account groups (domestic revenues, foreign revenues etc).

Step 1. Check Master Data Relevant For Account Assignment

SPRO Path	IMG - SD - Basic Function - Account Assignment - Account Assignment/Costing - Revenue Account Determination - Check Master Data relevant for Determination
TCode	OVK5

Here you set up field for maintaining option master data

1. Account assignment group for material

2. Account assignment group for customer

Based on these fields, account determination in respective sales document will take place.

As account determination follows the condition technique, it is understood that there may be a need to change the condition table that is used in the access sequence to find the correct condition record (that is, the correct account number).

Condition Table

IMG -> SD -> Basic Function -> Account Assignment -> Revenue account determination -> Define dependencies of revenue account determination (field catalogs, condition tables)

After ensuring your condition tables exist as required, ensure that the access sequence and condition types are maintained as required too.

Ideally we would be using the standard tables provided by SAP, if the combination required by the business doesn't match to the standard provided by SAP then we will be proceeding the custom table creation ranging from 501 - 999

Access Sequence and Condition type

IMG -> SD -> Basic fncs -> Account Assignment -> Revenue account determination >> Define access sequences and account determination types. [Account determination types = KOFI (5 condition tables - 1, 2, 3, 4, 5; KOFK]

In standard revenue determination, KOFI is used as account determination types/condition type. Based on your requirement and addition of new condition table in access sequence, you can create and assign new access sequence. As there may be have to shuffle the key combination (condition table) based on your requirement

Access sequence acts like a search strategy where condition tables will be maintained in the required sequence.

Access sequence need to be assigned to account determination types

Account Determination Procedure

Now, create the account determination procedure.

IMG -> SD -> Basic fncs -> Account Assignment >> Revenue account determination >> Define and assign account determination procedures [std = KOFI00 - KOFI, KOFK]

Assign Account determination type to account determination procedure

Then assign the account determination procedure to a billing type so that revenue accounts will be fetched during billing document posting.

The column described as "CaAc" represents the cash allocation key, which causes the system to post directly into a GL account for cash entry, rather than into a receivables account. [EVV-cash clearing]

Define Account Key

Account keys acts like a interface between SD and FI in pricing procedure and condition values from the pricing procedure will be passed onto accounting through this interface. Ideally we would be using the standard account keys and if required we can create our own Account Keys. Number of account keys will determine the accounts to which condition values to be posted.

ERL - sales revenues

ERS - sales deductions

ERF - freight revenue

ERB - rebate sales deductions [ERU - accruals]

MWS - taxes on sales/purchases

Finally, the assignment of the account key is the actual process of assigning the account key to each condition type (in the revenue account procedure), as done in the pricing procedure maintenance.

All that remains is the assignment of the GL accounts to the condition table, as specified in the access sequence.

Ideally, we would be using standard account keys provided by SAP if required we would be creating new account keys starting with Y* or Z*

Assignment of Account Keys to Condition Types

Assign G/L Accounts (T.Code - VKOA)

GL accounts need to be maintained in the above Combination.

Account Determination Analysis

During billing document, the system will try to match the above combination based on the document entry and try to fetch GL account. If the above combination is not met then system throws account determination error.

We can analysis the GL account determination through VF03, below is the screenshot for reference