What does the account assignment type control in SAP S/4HANA?

The account assignment type in SAP S/4HANA plays a crucial role in how transactions are processed within the system, particularly in relation to procurement and financial accounting. It governs the framework for how costs are allocated in the financial system, which in turn reflects on budget tracking and financial reporting.

By determining the allowed position types, the account assignment type stipulates which kinds of procurement documents and positions can be created and how they are controlled within the organizational structure. This includes controlling whether the transaction should be charged to a cost center, an internal order, or other account assignment objects.

Moreover, the account assignment type also dictates the determination of account assignment objects. It specifies the relevant account assignment objects that can be used for specific purchases or expenses, ensuring that all transactions are properly categorized and assigned within the financial and operational landscape of the organization.

Incorporating both allowed position types and the determination of account assignment objects, the account assignment type provides a comprehensive structure that ensures effective financial management and accountability throughout the procurement process. Therefore, understanding its dual role is essential for effective resource management and reporting in SAP S/4HANA.