account assignment category for material in sap mm

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What is Account Assignment Category in SAP MM, How to configure?

This Blog Post will give the overview on what is Account Assignment Category in SAP MM and How to configure it within SAP system. I will explain configuration step by step in SAP configuration.

This article will guide you through step by step procedure and will give you the complete idea on usage of Account Assignment Category and Item Category.

Account Assignment Category:

It indicates what type of purchase the company is doing in Purchasing Documents, whether it is for consumption or anything relation to orders, projects etc. The nature of this also indicates which accounts it needs to be charged for when the incoming invoice and Goods Receipt are posted.

Depending on the requirements you can create customized ones as well. Select one line item and click on the icon (with the magnifying class). Or if you want to create one Hit the “New Entries” icon.

Certain configuration needs to be maintained for a particular account assignment category and the screen selection. Below image shows the configuration and screen selection..

The above screen will pop-up to maintain the configs. For now, lets consider K- Cost Center

So, for “K” only GL Account, Cost Center needs to be mandatory i.e. user need to specify the respective value for this and for rest can be maintained as optional/hidden/display.

In the detailed Information tab, we can see certain options

• assg.changeable (Account Assignment Changeable) – It indicates whether the specified Account Assignment category can be changed in Goods Receipt/Invoice Receipt or not.
• Consumption Posting – It specifies whether the goods that are procured are used for which purpose like for personal usage or for a project. Some options include Consumption, Asset, Unknown, Accounting via Project/ Sales Order
• For example , let say you need to buy 300 chairs for IT dept but HR dept also needs 200 chairs. So, you will create a purchase order for 500 chairs with Account Assignment Category ‘K’. If distribution is configured than you can split the qty in 300 – 200 and assign them to their respective GL Account/ Cost Center in Purchase Order. Since each department would be having it’s own Cost Center.
• Account Modification – IT indicates what GL account it will be posted through the Account Determination
• acct.assgt (Derive Account Assignment) – If this is configured for an account assignment category, then the GL account and Cost Center will be pulled automatically by the system. (Pre-requisite: In Acct Modification whatever value is maintained for that a corresponding GL account should be defined in Tcode OBYC) This can be used for both materials having MMR or without MMR.
• ID: AcctAssgt Scrn (Account Assignment Screen) – Defines whether it is a single or multiple account assignment.

After this we have certain checkboxes like Goods Receipt/ Invoice Receipt – Defines whether Goods Receipt will be relevant or not for the items created with this account assignment category.

After completing all the steps you can create the Purchase Orders using an Account Assignment Category.

So here we complete the configuration about the Account Assignment Categories.

Let’s move to what combination of Account Assignment and Item Category is allowed in Purchasing document.

It is a mapping between the Item Categories and Account Assignment that indicates what are the relevant and correct combination that can be used in purchasing document.

Okay, now you might be wondering what are item category?

Item categories are defined to provide additional control functions for the documents to meet the demands resulting from different business transactions.

Basically it has the same functions as of Account Assignment but with a different set of usage.

There are different Item categories configured in system. You can define/create them here

The above are some standard Item category defined by SAP, but always open to create a custom one as per the requirements.

Here I complete the detailed explanation of Account Assignment,  Item Category & it’s configuration in SAP MM.

Please do provide your valuable feedback on this post in comments section, this will help me in improving my content and share more knowledge with this community, also you can follow me for more content related to SAP!

Till then Happy learning!

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Nice thanks for sharing

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Hi Garvit, i guess new Item categories can't be created and only those provided by standard system to be used.

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Account Assignment Category in Material Management

Account Assignment Category used in Purchase Order, to categorize nature of procurement, which is procured  for direct Material or consumption.On the basis of account assignment category separate GL can be assign.

The account assignment category determines the following based on the account assignment data already configured/available in the SAP R/3 system:

• The nature of the account assignment
• Which accounts are to be charged when goods receipt is posted
• Which accounts are to be charged when the incoming invoice are posted
• Which account assignment data you must provide

An important Account Assignment Categories along with required account assignment data are highlighted below:

Production order —  PP module is configured with its all sub modules and production order is already available into the system.

Cost Center —  Relevant cost center with proper assignment is created into the SAP. In addition to the Cost Center, a G/L account number also needs to be available for the purpose.

Sales Order —  SD module is configured with its all sub modules and Sales order is already available into the system. In addition to the Sales Order, a G/L account number also needs to be available for the purpose.

• When entering an item on the item overview screen, specify the account assignment category for the item.
• Choose Item  ®  Account assignments.
• Enter the account assignment data that is dependent on the account assignment category.
• If additional information is available on a specific account assignment, the More field is displayed.
• If you wish to enter further items with the same account assignment data, choose Account assignment. On the account assignment data will then automatically be adopted in the next item.
• Branch to the item overview and repeat the process if necessary.
• Save the purchase order.
• How the net value of a PO item to be distributed is (apportioned) among the individual account assignment items?
• How are the costs to be apportioned if only a part of the ordered quantity has been delivered and invoiced?
• When entering an item, specify the account assignment category for the desired item on the item overview screen.
• To do so, choose Item  ®  Account assignments.
• Enter the account assignment data for the first account assignment item.
• In the item fields (upper part of this screen) enter the relevant data:
• For each account assignment item, enter either the quantity  or  the percentage of the total value to be charged to the relevant account assignment item.
• Repeat as necessary for other items.

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