Automate FI Postings by Integration with RE-FX Through Account Determination

  • by Siva Prasad Ramachendruni, Senior Consultant
  • March 12, 2009
Account determination in RE-FX improves productivity by automating customer invoicing and increasing the flow of information by executing a periodic posting run. See how to automate your FI postings by integrating FI and Flexible Real Estate Management (RE-FX) through automatic account determination.
Key Concept

Flexible Real Estate Management (RE-FX) is used for management of real estate, space management, lease-in, and the control of business processes relevant to real estate. You create a real estate contract with a customer specifying all terms and condition amounts. When you execute the periodic posting program in RE-FX, the system automatically posts FI documents updating the customer account and income GL account through account determination.

Imagine your company has leased commercial spaces to tenants and invoices them on a yearly basis. You have implemented Flexible Real Estate Management (RE-FX) and managed the payment terms and conditions within it. You are required to invoice the customers on due dates by posting the FI document periodically, updating the customer account and revenue GL account. With these two components running separately, data can become inconsistent and requires more effort to maintain them both. I’ll show you how to integrate RE-FX with the accounting modules (FI and CO) so that these postings are automated.

All the master data in RE-FX (e.g., business entity, building, and rental objects) falls under a company code that you create in FI. Automatic account determination is the process whereby the system finds the relevant GL accounts to be posted. The system debits the customer account specified in the real estate contract and credits the income account. These settings are mandatory, and without them you cannot execute the periodic postings for real estate contracts.

In RE-FX, the flow of accounting happens through condition type. You assign the condition type to a flow type, which you then link to reference flow types for three different scenarios: 1) condition amount is increased retroactively, 2) condition amount is reduced retroactively, and 3) object transfer postings. You then assign the flow type and reference flow types to account symbols that in turn are assigned to the GL. I’ll show you how to do all of this with examples from an SAP ERP Central Component (SAP ECC) 6.0 system. You can also do this in R/3 4.7, though the menu path and screens may look slightly different.

Siva Prasad Ramachendruni

Siva Prasad Ramachendruni is a senior consultant (SAP Financials) working for a multinational corporation in the IT sector with 12 years of functional and SAP experience. He helps companies streamline business processes and gain efficiency through effective cost management. He is an Indian Cost and Management Accountant and has a master’s degree in financial management.

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