Movement Type in sap

When a goods movement in the system, we must enter a movement type to differentiate between the various goods movements. A movement type is a three-digit identification key for a goods movement.

In this step, we can change the setting of existing movement types

When you enter a goods movement, you must always enter the movement type. The movement type has important control functions in Inventory Management. It is essential for updating the quantity fields updating the stock and consumption accounts selection of the fields used for entering documents printing goods receipt/issue slips


How to create movement types? What are the steps involved? When will you recommend a new movement type?
Companies may request a new movement type to differentiate between the inventory posting transaction. For example, 551 scrap movement type. Some company may request to have it as 551 for Internal Scrap and Z51 for External Scrap.

Copy, Change Movement Types

Assuming I want to create another movement type Z01.
Transaction OMJJ
Select the standard movement type 201
Click copy, then overwrite the 201 with Z01
Click the Enter button, then click Copy all
Select the new movement type Z01
On the left hand column screen, click Reversal/follow-on movement
Fill in the reversal movement type

For the rest of the options, you can leave it alone or change it depending on your requirement

Movement Type and GL Account Determination

Any report to show which account with what movement type? As we have too many movement type with different account, we want to download it from system and check.

In transaction OMWB (it require to input material no.), go to the simulation mode, then in menu Simulation --> Go to Report. There, you can give the plants, valuation classes and movement types and execute the report. Then you can download it to excel and analyze.

or

In the initial screen input the plant, material number and movement type and then go to simulation --> report. It will take you to simulation of automatic account assignments : Inventory Management which is independent of materials and there you can get the desired report.

Account no. with movement type

Different materials will use different accounts during movement. This is defined by the Valuation Class the material is assigned to. Also, movement definition also differs with the type of movement, i.e., a consumption on a production order has a different movement than a consumption on a sales order. These movements are therefore linked to Transaction/Event Keys, which are the accounting reflection of the movement.

Call transaction OMWN, Account Grouping for Movement Types. This table will provide you with the Transaction/Event Keys for the movement. Withine a movement type, these will differ based on the movement, consumption type, etc. The tables behind this are T156X and T156W.

With this Transaction Key information, read the table T030 (OBYC) using the Val Class and the Chart of Accounts to get the GL Accounts.


How to find out how G/L account is determined with respect to movement type for various material types?

G/L a/c is decided not only by Movement type, but also material master/plant/type of transaction(transaction key). Movement type in OMJJ is contains transaction key / Account modifier which is the link for GL a/c.


In material master we maintain valuation class. Hence when we do let us say GR for Purchase order(101), the G/L account is decided as below:


Let us say movement type 101

Account modifier = space

Check in OBYC

As you are aware for any transaction there will be +ve and -V entry in GL a/c

Which a/c has to be -ve and which has to be + is decided by posting key depending on transaction. Hence When we do GR...Stock a/c will be +, GR/IR will be -Ve and any price difference(if price control is -S) will be posted to price difference account.

Inventory posting is done through BSX

Price difference will goto PRD

GR/IR will goto WRX

In OBYC, check the transaction BSX, for a given Chart of A/c, for a given valuation modifier(it is nothing but plant grouping) and valuation class, you can see the G/L account. This data is available in table T030


You can see the posting key for debit and cr. That means when we do 101, then Stock will be credited and that posting key is used, if you do reverse GR-102, then same stock a/c will get debited with that posting key


For the transaction PRD, you will get addition to the above, one more column General modifier, this is nothing but the account modifier in OMJJ for that movement type, i.e. Same transaction i.e. GR, if i define a different account modifier, I can change the G/L account so that new movement type PRD (variance) can be collected at different G/L account.


Like that WRX, in which it is maintained at client level no a/c modifier, no valuation class etc...that means GR/IR account determination will not depend on movement type/material/plant etc.

Difference Between EDI and IDOC

EDI is nothing but Electronic data interchange. SAP will support EDI through Intermediate documents (IDOCS).

EDI (Electronic Document interchange) - EDI is the electronic exchange of business documents between the computer systems of business partners, using a standard format over a communication network. 

EDI is also called paperless exchange. 

Advantages: 
Reduced Data entry errors
Reduced processing time
Availabilty of data in electonic form
Reduced paperwork
Reduced Cost
Reduced inventories and better planning
Standard means of communications
Better business process

EDI has two process
1. Outbound process
2. Inbound process

OP: 

1.Application document is created.
2.IDOC is generated
3.IDoc is transferred from SAP to Operating system layer
4.Idoc is converted into EDI standards
5.Edi document is transmitted to the business partner
6.The Edi Subsystem report status to SAP

IP: 

1.EDI transmission received
2.EDI document is converted into an IDOC
3.IDOC is transferred to the SAP layer
4.The application document is created
5.The application document can be viewed.
 

IDOC: 

IDOC is a container that can be used to exchange data between any two process.
Each iDoc is assigned a unique number for tracking and future reference.
iDoc Consist of several segments,and segments contain several fields.
iDoc contains the following three type of records...
1.One Control Record.
2.One or many Data Record
3.One or many Status record.

PORT:
Port is used in the outbound process to determine the name of the EDI subsystem program,the directory path where the idoc file will be created at the operating system level,the idoc file names and the rfc desinations.

RFC Destination: 

Used to define the characteristics of communication links to a remote system on which a functions needs to be executed.

Partner Profile: 

Partner profile specified the various componets used in an outbound process ( Partner number,IDoc type,message type,Port,Process code),the mode in which it communicates with the subsystem(batch or immediate) and the person to be notified in case of errors.

Message Control 

Used in pricing,account determination,material determination,and output determination.The message control component enables you to encapsulate business rules with out having to write abap programs.

Process: 

Setup RFC destinations SM59
Port Destinations WE21
Partner Profile WE20
Message control NACE
Purchase Order ME21
Check IDOCs WE02,WE05 

What is Electronic Data Interchange(EDI)

What is EDI

EDI stands for “Electronic Data Interchange.” The practice involves using computer technology to exchange information – or data – electronically between two organizations, called “Trading Partners.” Technically, EDI is a set of standards that define common formats for the information so it can be exchanged in this way.

Processes that used to be completed manually with paper have been replaced with an invisible, electronic flow of formatted data.  EDI has replaced paper forms of many documents, including invoices, bills of lading, advance shipping notifications, student transcripts, healthcare claims and many others.

Many businesses, government agencies and other organizations use EDI every day in the regular course of business. That’s because EDI makes doing business together a more automated and efficient process. Plus, digital technology can help ensure greater information security compared to paper documents.

How EDI Works – the Process

For the most part, EDI-based transactions are really the same as their manual, paper counterparts. The difference is that the EDI transactions are sent and received electronically, as packets of data formatted according to EDI standards.

There are effectively three major processes involved in the exchange of EDI data: mapping, translation and communications.

• Mapping involves transforming an EDI document into another format (such as XML, a flat file, a delimited file, etc.) or vice versa. Mapping is essential for proper system integration.
• Translation is the process of accepting inbound EDI data, or preparing an outbound file for transmission.
• Communications refers to the transmission of the EDI transaction. This can be done indirectly, through an external clearinghouse or VAN (“Value Added Network”) or direct via AS2 using EDI software, a web-based EDI tool or outsourcing with an EDI service provider.

Why You Need EDI – the Benefits

For many companies, EDI is really not a choice. It may be a requirement of doing business with larger organizations, including big retailers, manufacturers and government agencies.

Once you are communicating via EDI, the door is open to maximizing its value to your business. By integrating your EDI workflow with your back-end business or accounting system, you can streamline the entire process of how information flows through your organization. The benefits can be tremendous, including:

• Lower costs – By reducing the manual keying of data, handling of documents and other processes, you can potentially reduce the costs of labor and paper, and reduce errors (and their associated costs).
• Higher efficiency – Sending and receiving EDI data happens in seconds, and the information can be acted on immediately. This means time savings for you and your trading partners.
• Improved accuracy – You can reduce errors by using EDI because manual and duplicate entry is eliminated. Everything flows untouched, leaving a trail for easy future tracking.
• More supply chain visibility – With EDI, product sales data, product inventory status, demand forecasts and other metrics can be shared with suppliers and their suppliers. This allows for better inventory management and supports just-in-time delivery.
• Enhanced security – Thanks to numerous communications protocols addressing encryption and other security issues, critical business or personal data may be exchanged with higher levels of security via EDI than by any other means.
• Greater management information – Because EDI data is electronic data, you have a source of information to guide management decisions or to mine for further analysis.