In SAP, the FI module refers to the financial statement and payment process, while the SD module refers to the sale to customer process. When we sell finished goods to a customer, the consumer is responsible for payment. We post the Sales Invoice document from the Sales & Distribution module into the FI module in this process. This method is known as SAP FI SD integration in SAP.
The SAP Sales and Distribution module is responsible for entire Sales Management solutions, which covers the following steps:-
It is also integrated with Material Management( MM), in addition to the FI & CO modules.
The following accounting entries are related to the Sales Process:-
cost of Goods Sold (COGS) – Debit (Dr)
Finished Stock – Credit (Cr)
Note: COGS must be moved to Profitability Analysis and Profit Center Accounting.
The following are the accounting entries for billing:
1. Customer – Debit (Dr)
Sales – Credit (Cr)
It could also be one of the following:-
2. Customer Account – Debit (Dr)
Revenue Account – Credit (Cr)
The customer account would be selected from Customer Master Data, which is maintained in the SD module, according to the SD module. We'll also need to set up the income account and check for any discounts or surcharges.
The Account Assignment Group is the key field here. We need it to determine the G/L criteria. We also put materials that have the same account assignment together. This is done so that we can post to the same G/L accounts.
The relevant field in this instance is the Account assignment group. This is also one of the factors for determining the G/L account. Customers with the same account assignment group are also grouped together in Customer Master and posted to the same G/L accounts.
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The valid condition types for pricing calculation and the order in which they should be processed are defined by pricing processes.
TCode-V/08 can be used to set up the price procedure.
Account key is the essential field here. It's also one of the factors for determining the GL account. We choose the appropriate G/L account to post based on the account key.
Condition records are used to specify aspects such as customers, material, and so on for each condition type in the pricing procedure. These variables are prone to change. In addition, the price for various combinations of these parameters is included in these condition records.
Transaction Code – VK13.
The G/L accounts must be present to complete the setting for account determination.
The Account determination, which is done with some settings, is the most important component of SAP FI SD connectivity.
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SAP FI SD Integration Transaction Code – VKOA
Display Accounting Document – Code FB03
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General Ledger – GL # 1010 (SALES) is automatically posted from the Billing document here (sales and Distribution Module). The relevant billing document could also be found under the Environment menu tab.
In SAP FICO interviews, this is one of the most often asked questions. In implementation/support/rollout projects, FICO consultants must have an understanding of FI-SD integration. In implementation/support/rollout projects, FICO consultants must have an understanding of FI-SD integration.
Since it's linked to SAP FI MM integration, FI-SD integration is equally crucial. In order to finish and properly integrate the FICO setup into the SAP system.
How does SAP S/4HANA's FI SD Integration work?
The SAP S/4HANA technology follows the same process cycle for finance and sales integration. In other words, the SAP S/4 HANA Finance integration method remains unchanged. For the integration, you must follow the same processes as for the Account determination described above.
S/4HANA Finance and Controlling undergo modifications with each new version of SAP's software. However, fundamental principles and procedures remain the same. SAP FI MM and FI SD integration are also possible.
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In this blog, we have explored the SAP SD FI integration topics of accounting entries like the material master, condition records. We also have learned how to determine the accounting process in SAP SD FI integration and the significance of learning in detail.
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