AAG of material

[former_member223456]

Hi Gurus

Please explain me the concept and usage of account assignment of material and Account assignment group of customer.

I have read the definition but did not get the clear idea.

Thank You

[former_member1190345 · Accepted solution]

Hi Brajesh,

The concept is pretty simple and straightforward.

When the bill is created an accounting document is generated which basically records the bill values ( Revenue Generated) according to the G/L accounts assigned in the G/L account determination.

Basically from a business point of view the management would generally want to see the revenue generated for various permutations and combinations of material and customer. For example if the management wants to see how much revenue was generated for Finished goods for a retailer they could see the same by making the following assignment in G/L account determination:

Application: V

Account Determination type: KOFI

Chart of accounts: INT

Sales Org: XXX

AAG Cust: 01 Retailers/02 Whole sellers etc. it could also be Domestic customers or Exporters , depends on how the management needs it

AAG Mat: 01 FG /02 Trading Goods etc.

Account Key: ERL

G/L Account: 123456

Which means that by changing the AAG Cust and AAG Mat you can record the revenue in a separate account and whenever required you can pull out a report based on these accounts.

You also have to note that the above combination is used only for table no. 1 under the access sequence KOFI, .but if your business needs to use only material for revenue generation recording then you could go in for table no. 003 which is same as above but does not have AAG Cust.

Hope this helps,

J Nagesh

[Former Member]

Hi

AAG of material & AAG of customer are used in combination with account keys defined in system to post or determine sales revenue or deductions to respective G/L accounts.

AAG of material is maintaind in Material master---Sales org2 view e.g. Fert Revenue, Scrap Revenue

Group of materials with the same accounting requirements.

AAG of Customer is maintaind in Customer master in Sales Area tab -

---

Billing . e.g. Domestic customer , Export Customer

e.g

If you maintain combination in VKOA as

1)applicationV, Chart of account-- 1000, AAG Cust. DOMESTIC, AAG Material Fert Revenue , Acount Key ERL (Revenue) , G/L Account XYZ,

then your Sales revenue for respective FERT material will go to G/l Account XYZ

2)applicationV, Chart of account-- 1000, AAG Cust. EXPORT, AAG Material Fert Revenue , Acount Key ERL (Revenue) , G/L Account ABC,

then your Sales revenue for same FERT material will go to G/l Account ABC, as your customer is Export

This will diffrentiate your Domestic Revenue & Export Revenue of same Material.

Like this you can maintain various combinations to diffrentiate your heads according to clients requirement.

Regards

Mandar

[Former Member]

hi,

AAG of MATERIAL: integration field to post the sales values of different material types to respective G/L Accounts.

AAG of Customer : integration field to post the sales values are psoted respective G/L Accounts.

regars,

balajia