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.

True or False

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?

True or False

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.