Integrating Materials Management with Financial Accounting in SAP

Faisal Mahboob currently works in the UK as a freelance consultant in SAP MM/SRM. He has over 8 years of experience in SAP both on the technical and functional side of MM, and has been involved in numerous projects. Over the years, he has worked with almost every industry sector and every kind of work related to SAP MM, be it implementation, support, upgrade, or global roll-out.

Preface
Overview of SAP ERP
The Building Blocks of SAP ERP
Integration of Materials Management in SAP ERP
Analysis and Resources for Materials Management
Business Processes
Technical Aspects of SAP ERP
Summary
Overview of the Materials Management and Financials Relationship
Elements of Materials Management
Elements of Financial Accounting
Elements of Controlling
Relationship between the Elements of Materials Management and Financial Accounting and Controlling
Reporting
Troubleshooting Techniques
Summary
Basics of Configuration and the Processes in Procurement
General Settings
Enterprise Structure
Processes in Procurement
Master Data
Documents in Procurement
Summary
Procurement of Stock and Consumable Materials
Procurement of Stock Material
Procurement of Consumable Materials
Procurement of External Services
Subcontracting
Summary
Conditions, Price Determination, and the Basics of Material Price Changes
Conditions and Price Determination
Basics of Material Price Changes
Summary
Balance Sheet Valuation
Lowest Value Determination
LIFO Valuation
FIFO Valuation
Summary
Material Price Change
Value Changes in Inventory Management
Value Changes in Logistics Invoice Verification
Value Changes Resulting from Cash Discounts
Revaluation
Posting to a Previous Period
Several Accounting Documents during LIV
Closing Previous Period for Posting
Summary
Accounts Payable Invoice from Materials Management
Logistics Invoice Verification
Incoming Invoice
Invoice Verification Online
Invoice Parking
Prepayment
Invoice Verification in the Background
Account Determination
Purchase Account Management
Direct Posting
Posting Taxes
Cash Discount
Summary
Variances and Blocking of Invoices
Invoice with Variances
Invoice Blocking
Invoice Release
Delivery Costs
Total-Based Differences
Invoices for Purchase Orders with Account Assignment
Entering Invoices in a Foreign Currency
Summary
Additional Functionalities in LIV
Valuation and Account Determination
Automatic Settlements
Messages in Logistics Invoice Verification
Credit Memos, Returns, and Reversals
GR/IR Clearing Account
Summary
Conclusion
Lessons Learned
Additional Resources
Appendices
Optimizing the Integration between Materials Management and Financial Accounting
Commonly Used Abbreviations
References
Useful Links
The Author
Index