Subdividing a Transaction with the Account Grouping Code

The value string contains all transaction keys that are possible for a specific business process (such as a goods receipt or goods issue posting).

The value string WA01 for example is assigned to various goods issues and other goods receipts. The possible transaction keys are shown in the figure above. The transaction key GBB, for example, stands for offsetting entry to the stock account. However, this offsetting entry depends on whether, for example, a goods issue is posted for a cost center, a sample or a scrapping. To differentiate these movements in the automatic account determination process, you can use the account grouping code.

As an example, the system uses the transaction key Offsetting Entry for Inventory Posting (GBB) for different business processes such as goods issue, scrapping, or physical inventory. However, depending on the business process, different accounts should be used for posting (e.g. consumption account, expense due to scrapping, expense or income from inventory differences).

To achieve this, you must further break down the transaction key by adding an additional code: the account grouping code.

The account grouping code is also referred to as general modification. You can define own keys for account grouping. Some keys (such as VBR) are part of the SAP S/4HANA standard.

The following table shows examples of the influence of business transactions on account determination.

In the table above, the abbreviations stand for the following terms: 

• CAcct = Chart of accounts
• VG = Valuation grouping code
• AG = Account grouping code (general account modification code or modifier)
• VClass = Valuation class

An account grouping code enables you to assign G/L accounts by the transaction/event key in account determination. You can assign G/L accounts to individual transactions depending on the movement type of a goods movement.

In the standard system, the account grouping code is active only for a few transactions/event keys such as GBB (offsetting entry for inventory posting). However, you can also use account grouping for other transactions in your company (for instance, for price differences).

For goods movements, you can assign the account grouping code to the posting transaction Offsetting Entry for Inventory Posting, depending on the movement type and other indicators.

Transaction/Event Key and Account Grouping Code

Value strings contain the keys for the posting transactions (transaction keys) that can lead to G/L account updates in Financial Accounting (FI).

If you think a key is too unspecific, you can enable the general modification as a rule for that key. You can then use account grouping codes to further subdivide the account determination within the respective transaction key.

In the case of inventory management transactions, you can assign the account grouping (or modification) code, depending on the movement type and other indicators (such as the special stock indicator).

Hint

You cannot use the account grouping code for invoice verification transactions.

Realization – Example

The figure illustrates various standard account grouping codes that are assigned to movement types, regardless of further indicators.

However, you can assign different consumption accounts to the same movement type (for example, a goods issue for a production order). To distinguish them, you can use a different account grouping code for withdrawal from your own stocks than for withdrawals from consignment stock.