It is complete Fi-MM integration config.
In material master, we stored all information for a certain material. Like as material type, material group, purchasing information, sale and distribution information etc etc.
The valuation class (in accounting 1 view) is most important for automatic account posting purpose.
Valuation class is used to group together several material with their same attributes, so that we can carry the same account determination for various material.
Every material has a valuation class, many materials can contain same valuation class. As we know the valuation class is link with material type via account category reference. Valuation class and Movement type is used for the G/L determination.
Movement type is used for all types of material movement. Suppose if you receive a material from a vendor, a movement is happens for the movement.
If we transfer a material from one location to another, a movement type is happens for the movement.
It means, whenever we do a off-setting entry, a movement type will be created for that. For various movement type SAP defines a G/L account for the material movement. The all account entry is done via automatic account posting tcode: OBYC