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NOTE:

1 Company code Link to N Number of Plants


1 Company code Link to N number of Purchase Organizations

1 Plant link to N number of Purchase Organizations


1 Purchase Organization Link to N number of Plants

1 Plant Link to 1 Company Code


1 Purchase Organization Link to 1 Company code.
Movement types:

101 - Goods receipt for Purchase Order


201 - Goods Issue to cost Center
261 - Goods Issue to Production
601 - Goods Issue for Delivery
561 - Initial Stock Uplaod
Account Category Reference:

Account category reference is the link between the valuation classes and
the material types. The account category reference is a combination of
valuation classes.

Business Case-1: How to use Account Category Reference

Based on requirement, business can have one material type, one account
category reference and one valuation class by assigning material type to account
category reference and then assigning account category reference to valuation
class. For example business can have one custom material type ZROM (Raw
Material) with custom account category reference (Z001) and new valuation
class (3005) for Raw Material(Raw material - inventory managed with quantity
and value)
During material creation with transaction code: MM01 with certain
material type manually or by any uploading tool, only one permitted valuation
class is defaulted for that material type by account category reference. So in
material creation process no chance of making any mistakes by users or by any
uploading tool.

Business Case-2: How to use Account Category Reference


Based on requirement, business can have one material type, one account
category reference and multiple valuation classes by assigning material type to
account category reference and then assigning account category to valuation
classes. For example business can have one custom material type ZROM (Raw
Material) with custom account category reference (Z001) and new valuation
classes i.e. (3005) for Raw Material, (3006) for Chemicals and (3007) for Filter
material (all materials are inventory manage with quantity and value)
During material creation with transaction code: MM01 with certain
material type manually or by any uploading tool, only permitted valuation
classes are defaulted for that material type by account category reference . Here,
there is a chance of entering wrong valuation class by user manually or through
upload file using a tool which needs to be validated.

Business can go for designing a custom transaction code where material can be
created through uploading file which can be verified by central material creation
officer.

Business Case-3: How to use Account Category Reference


Based on requirement, business can have multiple material types, one account
category reference and multiple valuation classes by assigning material types to
account category reference and then assigning account category reference to
valuation classes. For example business can have three custom material types
such as ZROM (Raw Material), ZCHE(Chemicals ) and ZFIL(Filter material ) with
one custom account category reference (Z001) and three new valuation classes
ie.. (3005) for Raw Material, (3006) for Chemicals and (3007) for Filter material
(all materials are inventory manage with quantity and value)
During manual material creation with transaction code: MM01 or material
creation by any uploading tool, only permitted valuation classes are defaulted for
that material type by account category reference. Here, entering correct
combination of material type for material and valuation class are expected
through manually or through upload file which needs to be validated.

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