Purchase Order Account Assignment Category for SAP MM

What is a Purchase Order Account Assignment Category?

In SAP Materials Management (SAP MM), the Account Assignment Category (AAC) plays a critical role when a purchase order (PO) is meant for direct consumption rather than stock. This configuration determines which cost object—such as a cost center, internal order, project, or sales order—will be charged when the invoice or goods receipt is posted. AAC defines:
  • Which accounts will be affected during invoice or goods receipt.
  • What account assignment data you must provide during PO creation.

When is Account Assignment Category Used in a Purchase Order?

While a standard purchase order (PO) doesn't require an AAC, it's mandatory in cases like:
  • Direct posting to Cost Center (K)
  • Direct posting to Asset (A)
  • Purchase for projects or sales orders
AAC appears under Item Overview during PO creation in Transaction ME21N.

Configuration Path for AAC in SAP

To configure Account Assignment Categories:

SPRO ➝ Materials Management ➝ Purchasing ➝ Account Assignment ➝ Maintain Account Assignment Categories

Activities:

  1. Review attributes of existing Account Assignment Categories.
  2. Customize or create new AACs as per your organization’s needs.
Click on New Entries to define additional categories as required by your business.

Automatic Account Determination in AAC POs

For automatic account determination in an account-assigned PO for a non-stock material, follow these essential configuration steps:

1. Set Valuation Class in Material Master

  • Go to the Material Master – Accounting View
  • Assign the correct Valuation Class based on material type and cost object.

2. Maintain Valuation Grouping Code in OMWD

  • For each Plant, define the Valuation Grouping Code
  • Ensures consistency in account determination

G/L Account Determination via OBYC

Navigate to Transaction OBYC to assign General Ledger (G/L) accounts.

BSX (Inventory Posting) Configuration

  • Enter: 
    • Valuation Grouping Code
    • Valuation Class
    • G/L Account

GBB (Offsetting Entry) Configuration

  • Enter: 
    • Valuation Grouping Code
    • General Modifier: VBR (for consumption)
    • Valuation Class
    • G/L Account

Benefits of Proper AAC Configuration

  • Enhanced cost tracking and transparency
  • Streamlined financial reporting
  • Ensures accurate posting to correct cost objects
  • Supports internal control compliance

Frequently Asked Questions (FAQs)

1. What is the purpose of Account Assignment Category in SAP MM?

AAC helps determine which cost object should be charged when a PO is created for direct consumption, ensuring accurate financial postings.

2. Where do I find AAC in a Purchase Order?

You can locate AAC in Transaction ME21N, under the Item Overview section of the PO.

3. What are common AACs used in SAP?

Common categories include:
  • K – Cost Center
  • A – Asset
  • P – Project
  • F – Order (Internal/Production)

4. Is AAC required for all POs?

No, it is only required when the PO is not for stock but directly consumed, such as services, assets, or consumable materials.

5. Can I create custom AACs in SAP?

Yes, you can configure custom AACs via SPRO to match your organization's procurement and accounting needs.

6. What is the impact of incorrect AAC usage?

Misuse can lead to wrong account postings, audit issues, and cost misallocations.

Conclusion

Understanding and configuring the Purchase Order Account Assignment Category is vital for accurate cost allocation and seamless procurement-to-pay processes in SAP. From configuration in SPRO to G/L account mapping in OBYC, every step plays a crucial role in ensuring financial data integrity. By leveraging AAC correctly, organizations can enhance operational efficiency and maintain robust financial control.

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