What is Automatic Posting?

When you post documents in SAP, there are instances where the system also adds some more line items (such as tax, cash discount, gain/loss from foreign exchange transactions, etc.) besides the ones you have entered in the document. This helps to reduce your work as the system calculates these automatically. However, you need to define accounts you want the system to automatically post to; this will ensure that no manual posting is allowed to any of these accounts.

Automatic FI postings at Goods Receipt Following automatic postings are done in the system, when the Goods Receipt against Purchase Order are posted.

Raw Material posted to Inventory after posting of GRN

A Purchase Order is raised on Vendor for a raw material which is to be used for production of an in-house manufactured material, depending upon the requirement generated from MRP. When you post a GRN for raw material against Purchase Order, the material is placed in a storage location in the plant. The inventory of the received material is increased by first entry. The second entry will increase the clearing account by equivalent amount. An accounting document is also posted along with the GRN. The inventory of imported raw material & raw material procured from domestic vendor is kept separate.

The process flow is as below.

Purchase Order with account assignment A (Asset)

We use account assignment A to order a fixed asset item. A Fixed asset is a long lived asset which is not expected to be fully consumed within one year period or to be converted into cash within that period, such as: property, plant, equipment etc. For PO / PR with account assignment A, we need additional data to be entered as Asset Number. Asset number is a code to identify a single fixed asset. It must be generated first before we can create a PO or PR item with A as account assignment. Asset number is created in FI / CO module. Asset number is linked with a Fixed G/L Account in the company‟s balance sheet. The G/L account is a reconciliation account that means that it reconciles several asset numbers.

Purchase Order with account assignment K (Cost Center)

We use account assignment K (Cost Center) to order an expense item (material or service). An expense item in PO is an item that is expected to be fully consumed immediately after Goods Receipt is posted such as consumable material & services. With account assignment K, we need to determine following two additional data to be entered in the PO.

• General Ledger (G/L) Account Number: We have to determine the expense G/L account number that will be posted when we do Goods Receipt or Service Entry Sheet (if the GR Non-Valuated indicator was not set in the PO) or while Invoice booking (if GR Non-valuated indicator was set in PO).
• Cost Center: Cost center determines which department or group in the company that will be charged the expenses occurred when we do GR or Invoice

Purchase Order with account assignment as Q (Project)

Purchase Order with account assignment Q are raised for material required for a Project being / to be executed by the enterprise. For this account assignment, we need to define the additional data WBS (Work Breakdown Structure) to be entered in the detailed account assignment screen. The WBS element is the small element in which the material / service to be procured is planned & budgeted. We can procure following type of materials against the Project account assignment – Raw / Semi Finished material (to be inventoried), Traded Material. When we procure a raw material (to be inventoried)

Purchase Order with account assignment as E (Sale Order)

Purchase Orders with account assignment E (Sale Order) are raised for a material required for Sale Order either for in-house manufactured material or Traded Goods. Depending upon the scenario the item category will change (Blank for Standard procured material) or S (Traded material).

Inter-Company Billing – Automatic Posting To Vendor Account

Automatic Posting to Vendor Account using EDI where in both the companies exist in the same system. The Process requires Creating a Customer and Vendor for receiving and supplying… Next create a Port and then proceed to configure the Output Type and then define a logical address and finally create the partner profile for both Customer and Vendor.

Ofcourse you have to maintain the MM and FI customizing.