Page 115 -

Key Concepts 97

above example, the account assignment object is the cost center. Companies
also use the purchasing process to acquire assets, such as cars, and to obtain
materials needed to support processes such as production, fulfi llment,
and enterprise asset management and projects such as constructing a new
factory. The specifi c accounting data needed are determined by the account
assignment category. The typical account assignment categories are
described below along with the accounting data — specifi cally, the account
assignment object to be charged and the general ledger account number — that
are required for each category. The letters in parentheses are the codes used
in SAP ERP.

1. Asset (A). A company uses this category when it acquires a fi xed
asset, such as a car or land. Recall from Chapter 3 that the value of
fi xed assets is tracked in separate subledger accounts with corre-
sponding asset master records. When assets are purchased using a
purchase order (see Chapter 3 for other ways of acquiring assets),
the account assignment object to be included in the purchase order
is the asset master record.

2. Order (F). Companies use this category when they purchase mate-
rials for different types of orders. An example of an order is a
production order that will be used to produce another material.
When a company purchases materials for an order, it must include
the order number (the account assignment object) and a general
ledger account number in the purchase order.

3. Cost Center (K). When a company purchases materials (e.g.,
supplies) for consumption, then the purchase order must include
both the cost center to be charged (the account assignment object)
and the appropriate general ledger expense account number (e.g.,
supplies expense).

4. Sales Order (C). When the purchase is associated with a specifi c
sales order (which is part of the fulfi llment process), then the
sales order number and a general ledger account number must be
provided.
5. Project (P). When the purchase is related to a project, then the
project number and a general ledger account number must be
specifi ed.
Note that in several of these categories a general ledger account is neces-
sary. The system can be confi gured to automatically determine the appropriate
account via account determination procedures. It is not always necessary for
the user to provide these data.
Figure 4-10 shows the relationship between stock and consumable materi-
als and account assignment categories. It shows the several scenarios related to
purchasing – purchase of stock material, purchase of consumable material (with
and without material master), and purchase of stock material for consumption.
The left side of the fi gure shows that for stock material, account assignment is
automatic and is based on data (valuation class) in the required material mas-
ter. These data determine which accounts (e.g., which stock account) will be
used during the procurement process.

31/01/11 7:35 PM
CH004.indd 97 31/01/11 7:35 PM
CH004.indd 97