Understanding Multiple Account Assignment in SAP Purchase Orders

Introduction

In SAP Materials Management (MM), multiple account assignment provides flexibility in distributing the cost of goods or services across various cost objects. However, the system imposes restrictions, especially when dealing with blanket purchase orders (POs) and valuated goods receipts.

No Multiple Account Assignment for Blanket Purchase Orders

SAP Blanket PO Limitation

Since SAP release 4.6x, it is not possible to assign multiple accounts to a single blanket PO line item. This constraint affects items categorized under Item Category B (Blanket items). Users looking to distribute costs across multiple accounts must enter additional line items for each account assignment.

Potential Issues

This workaround, although functional, introduces operational risks:
  • Incorrect line item selection during approval can lead to misallocated funds.
  • Goods receipts (GRs) under the wrong line item can complicate tracking and reporting.
Proper training and process awareness are essential to minimize these errors.

Multiple Account Assignment in Standard Purchase Orders

Understanding GR-Non-Valuated Constraint

When utilizing multiple account assignment, SAP enforces the GR non-valuated indicator. This ensures no FI (Financial Accounting) document is generated during the goods receipt stage. Instead, accounting entries are only created during the invoice receipt (IR) process.

Key Considerations:

  • Valuated goods receipts are not allowed with multiple account assignment.
  • Disabling the GR indicator via standard configuration is not possible per line item.
  • GR indicator behavior is controlled in transaction OME9 based on account assignment categories.

Service PO Challenges: Invoicing and Account Reassignment

Real-World Business Scenario

In many organizations, users create POs for service purchases with a single account assignment category, often using requisition and PO release strategies. However, by the time the service invoice arrives, cost distribution requirements may change—necessitating allocation to multiple cost centers or internal orders.

Limitations and Available Workarounds

  • Invoice processing (MIRO) allows account assignment distribution, but only without referencing the PO.
  • GR screens do not support layout modifications for account reassignment.
  • Users must rely on PO modifications for accurate cost distribution—though this is often impractical post-service delivery.

Configuration Tips for Flexible Invoice Handling

To enable limited flexibility without violating SAP standard controls:
1. Transaction OME9: Enable IR changeability for the account assignment category, especially ‘K’ for services.
2. GR Non-Valuated Flag: Ensure it is selected in the PO to allow invoice-based accounting document creation.
3. Manual Adjustment During IR: Accounting data can be edited during invoice verification (LIV) for more granular cost assignment.

Multiple Account Assignment and Accounting Document Generation

Why Accounting Entries Are Skipped at GR Stage

When a PO line item uses multiple account assignments, SAP standard logic prevents the creation of an accounting document at the GR stage. This is due to the system’s inability to determine how to split valuation among multiple accounts at receipt. Instead:
  • Accounting postings are deferred until invoice receipt.
  • Users can split costs across cost centers, internal orders, or other objects at that point.

Example Use Case

A PO for 10 units of bearings:
  • 4 units charged to Cost Center A
  • 6 units to Cost Center B
Despite clear cost distribution, no FI document is created upon GR posting due to the multiple assignment setup.

Conclusion

Multiple account assignment in SAP Purchase Orders offers powerful cost distribution capabilities but comes with inherent limitations, particularly around blanket POs and valuated goods receipts. Understanding these constraints, training users, and leveraging invoice-level adjustments are essential for maintaining financial accuracy and process efficiency. Organizations must weigh the trade-offs and implement best practices accordingly.

Frequently Asked Questions (FAQs)

1. Can I use multiple account assignments in a blanket purchase order?

No, SAP does not support multiple account assignments for blanket PO line items. A separate line must be created for each assignment.

2. Why doesn't SAP create an accounting document at GR with multiple account assignments?

Because the GR must be non-valuated in such cases, the FI document is generated only during invoice processing.

3. Can I force the GR indicator to be enabled or disabled based on material?

No, the GR indicator's behavior is managed through account assignment categories in OME9, not at the material level.

4. How can I split service invoice costs across cost centers if the PO is already created?

You can manually update account assignment during invoice entry (MIRO), provided the IR changeability is enabled in configuration.

5. What is the workaround for changing account assignments after PO creation?

Update PO with new line items or manage account assignments manually during invoice processing, ensuring the GR non-valuated flag is set.

Related:

SAP Material Management Books
SAP MM Books - Certification, Interview Questions and Configuration

SAP Materials Management Tips
SAP MM Configuration Tips and Materials Management Discussion Forum

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