Fi sd integration in sap

There are 3 types of FI integrations. Those are MM-FI integration, SD-FI integration and MM-SD integration. Here MM stands for material management, FI is for financial accounting and SD is sales and distribution. FI and SD modules are greatly integrated with MM modules.MM modules means the procure to payment process, FI module means the financial statement and the pay process and the SD means sales to the client process. Most often the logic in manufacturing refers to BUY, MAKE and SALE. That is when a company buy a raw material from a supplier, and then he raw material to a finished product or finished material to a product and next the product is delivered to the customer. So these 3 modules integrate together.

Firstly let’s look at what is Sales and what is distribution. Sale is a transaction which happens between two parties which are buyers and sellers. Here buyer will get the goods and whereas sellers sell the goods.

The distribution is the process of moving the product and service towards the customer finally the customer will receive his goods. And in the other direction the customers pays his payments. And the payment is received directly or indirectly by the supplier or buyer.

Let’s see what is SD in Sales and distribution? This is a component in Logistics area in SAP and it is sales and distribution function. This module helps the companies to deal with the customers in the business processes.

The processes include giving quotations to the customers, receiving orders through the telephone, internet or EDI, shipping the goods and finally delivering the goods to the hands of the consumer.

Some of the characteristics of SD module are there are mechanisms which are included in order to run or execute the processes in the business like selling, billing and shipping of products and services.

In this article we will focus on the part which is SD FI integration point. When we sell a finished material for a client, he should always pay for that. And what we do is sending a bill to the customer. So in that kind of a situation what happens is all the documents of billing related to the sales and distribution is passed or posted into the FI module. The billing process has two sides when focusing on the accounting side.

The two sides are customer account and the other one is the revenue account. As an example the customer account is debit and revenue account is considered as credit. For every SD module, the account of the customer is obtained from the master data of customer and then it is maintained in the SD module.

Let us now see how to do the configuration of revenue account and view if any surcharges and discounts are there in the account. To do that, we should access is through the access sequence. As we know this access sequence can be defined as a term used in General ledger accounts.

In SAP there exist five methods to include the G/L accounts in the sd modules. They are customer grp/ the material grp/ Account key, Custmer Grp/Account Key, Material Grp/Account Key, General and at last, Account Key. These G/L accounts are used state the discount and the revenue and also any surcharges associated.