Revenue Account Determination

When billing data is transferred from SD to FI-AR (Financial Accounting –Accounts Receivables), G/L Accounts for posting sales revenue, sales deductions, freight, taxes,can be determined automatically

  • Different criteria can be set for account determination like
  • Chart of accounts
  • Sales organization
  • Account assignment group for payer
  • Account assignment group for material
  • Account key

Account assignment group of payer allows to do certain postings for a customer or group of customers to specific G/L accounts. like, Discounts offered to corporate and retail customers can be posted to different G/L accounts so that they can be tracked separately.

Account assignment group of material allows to do certain postings for a material or group of materials to specific G/L accounts. like, Sales revenue for bye-products need to be posted to G/L account different than for the main products so that revenues can be evaluated and reported differently.

Account keys are assigned to condition types in pricing procedure. Some of the standard account keys are ERL- Sales Revenue, ERS – Sales deduction & ERF – Freight Value.

Standard system has Account Determination procedure ‘KOFI00’available with following condition types:

  • KOFI –Without controlling
  • KOFK –With controlling

Account determination takes place during posting of billing document to Financial Accounting. Account determination procedure is assigned to billing type from where the revenue account determination is triggered.

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