sap fico- financial closing
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AC205Financial Closing
mySAP ERP Financials
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Instructor HandbookCourse Version: 2005 Q2Course Duration: 3 Day(s)Material Number: 50074719Owner: Declan O�Connor (D001023)
An SAP Compass course - use it to learn, reference it for work
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Copyright © 2005 SAP AG. All rights reserved.
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About This HandbookThis handbook is intended to complement the instructor-led presentation of thiscourse, and serve as a source of reference. It is not suitable for self-study.
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2005/Q2 © 2005 SAP AG. All rights reserved. iii
About This Handbook AC205
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iv © 2005 SAP AG. All rights reserved. 2005/Q2
ContentsCourse Overview ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
Course Goals.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viiCourse Objectives .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
Unit 1: Overview of the Closing Activities ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1Month-End and Year-End Closing Processes .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Unit 2: The Financial Statements ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9Financial Statement Versions .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Drilldown Reporting... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Unit 3: Fixed and Current Assets ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Fixed Assets.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Current Assets .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Unit 4: Receivables & Payables ... .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75Balance Confirmation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Foreign Currency Valuation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85Value Adjustments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100Regrouping ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Unit 5: Profit and Loss ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125Cost of Sales Accounting .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127Controlling .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .138Salary Expenses from HR ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149Accrual/Deferral Postings.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156The Accrual Engine... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172Manual Accruals ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180Posting Control and Account Determination .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189
Unit 6: Technical, Organizational, and Documentary Steps ..... . . . . . . . . . . . . . . . . . .205Technical Steps .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .207Organizational Steps ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .221Documentary Steps .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .236
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Contents AC205
Unit 7: Additional Material.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .247New General Ledger Accounting (New GL).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249General Tax Processing .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .259Tax Reporting in the USA... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .263Tax Reporting in Germany.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .293Tax Reporting in the European Union... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .301Reporting in Accordance with German Foreign Trade Regulations.. . . . . . . . . . . . . . . .306Consolidation... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .310
Appendix 1: Checklists ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .327
Appendix 2: Menu Paths ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .333
vi © 2005 SAP AG. All rights reserved. 2005/Q2
Course Overview
Target AudienceThis course is intended for the following audiences:
� Project team members responsible for individual account closing
Course PrerequisitesRequired Knowledge
� AC010 Financial Accounting and Reporting� AC200 General Ledger/Accounts Payable/Accounts Receivable Basic
Configuration� Experience in Financial Accounting
Course Duration DetailsUnit 1:Overview of the Closing ActivitiesMonth-End and Year-End Closing Processes 30 Minutes
Unit 2: The Financial StatementsFinancial Statement Versions 105 MinutesExercise 1: Creating Financial Statements 20 MinutesDrilldown Reporting 15 MinutesExercise 2: Drilldown Reporting 10 Minutes
Unit 3: Fixed and Current AssetsFixed Assets 60 MinutesExercise 3: Fixed Assets 15 MinutesCurrent Assets 60 MinutesExercise 4: Current Assets 20 Minutes
Unit 4: Receivables & PayablesBalance Confirmation 30 MinutesExercise 5: Balance Confirmation 10 MinutesForeign Currency Valuation 75 MinutesExercise 6: Foreign Currency Valuation 15 Minutes
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Course Overview AC205
Value Adjustments 75 MinutesExercise 7: Value Adjustments 15 MinutesRegrouping 30 MinutesExercise 8: Regrouping 10 Minutes
Unit 5: Profit and LossCost of Sales Accounting 30 MinutesExercise 9: Cost of Sales Accounting 10 MinutesControlling 30 MinutesExercise 10: Controlling 5 MinutesSalary Expenses from HR 15 MinutesExercise 11: Salary Expenses 5 MinutesAccrual/Deferral Postings 15 MinutesExercise 12: Accruals/Deferrals (Accrual/DeferralDocuments, Recurring Entry Documents) 10 Minutes
The Accrual Engine 15 MinutesManual Accruals 30 MinutesPosting Control and Account Determination 15 MinutesExercise 13: Accrual Engine, Manual Accruals 15 Minutes
Unit 6: Technical, Organizational, and Documentary StepsTechnical Steps 70 MinutesExercise 14: Technical Steps 20 MinutesOrganizational Steps 70 MinutesExercise 15: Organizational Steps 20 MinutesDocumentary Steps 70 MinutesExercise 16: Documentary Steps 10 Minutes
Unit 7: Additional MaterialNew General Ledger Accounting (New GL) 30 MinutesGeneral Tax Processing 15 MinutesTax Reporting in the USA 15 MinutesExercise 17: 1099/1042 Processing (USA) 10 MinutesTax Reporting in Germany 15 MinutesExercise 18: Germany: Tax Reporting 5 MinutesTax Reporting in the European Union 30 MinutesReporting in Accordance with German ForeignTrade Regulations 120 Minutes
Consolidation 30 Minutes
viii © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Course Overview
Course GoalsThis course will prepare you to:
� Outline the key SAP processes for individual account closing� Explain the order in which the technical and organizational closing activities
are carried out� Describe the flow of data from other SAP components and the effect this data
has on period-end closing in Financial Accounting� Use the Customizing options available for creating financial statements
Course ObjectivesAfter completing this course, you will be able to:
� Locate closing activities within Customizing� Identify, execute, and analyze programs and reports essential for individual
account closing
SAP Software Component InformationThe information in this course pertains to the following SAP Software Componentsand releases:
Course Preparations:
1. Check that the transaction data CATT has been executed for AC205.2. Create the required number of users as copies of user AC205-99 using
transaction ZUSR.3. Switch off the enqueue mechanism using report �ZSENQOFF".
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Unit 11 Overview of the Closing Activities
This unit provides a brief initial overview of the key processes involved in month-endand year-end closing. Inform the participants that AC205 focuses on FinancialAccounting activities (= Customizing) rather than topics from Asset Accounting,Material Management, Controlling, and Human Resources Management.
Unit OverviewThis unit provides an overview of the pre-closing activities for the month end andyear end.
Unit ObjectivesAfter completing this unit, you will be able to:
� Describe the integrated process of both month-end and year-end closing
Unit ContentsLesson: Month-End and Year-End Closing Processes ... . . . . . . . . . . . . . . . . . . . . . . . .2
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Unit 1: Overview of the Closing Activities AC205
Lesson:2
Month-End and Year-End Closing ProcessesLesson Duration: 30 Minutes
Lesson OverviewThis lesson provides an overview of the activities for pre-closing the month end andyear end.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Describe the integrated process of both month-end and year-end closing
For more information, see the Instructor Guide on SAPNet.
Business ExampleAs a member of the project team responsible for defining the financial closingprocess, you need to define the types and timing of closing activities that need to beperformed in the SAP system.
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AC205 Lesson: Month-End and Year-End Closing Processes
Figure 1: Month-End Closing Process
This slide provides an overview of the month-end closing process.
Pre-closing activities that begin in the old month include:
� Technical - Open new accounting period (FI),� FI - Enter accruals/deferrals, process recurring entries and bad debt expense in
AR, post depreciation and interest expenses in Asset Accounting� MM - Maintain GR/IR clearing account, post material revaluations� HR - Post payroll expenses� SD - Record goods issues for deliveries and invoice customers� Technical - Close old month in (MM), close sub-ledgers (FI), preliminary close
of G/L (FI)
Managerial closing activities include CO allocations and repostings, locking the oldaccounting period in CO, and re-opening the G/L for adjustment postings.
Closing activities for external purposes include:
� CO - Reconciliation posting to FI (for cross-organizational unit CO postings)� FI - Foreign currency valuations and financial statement adjustments� Technical - Final closing of the old period� FI/CO - Creation of external and internal reports
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Unit 1: Overview of the Closing Activities AC205
Figure 2: Year-End Closing Process
This slide provides an overview of the year-end closing process. These activities areperformed in addition to the regular month-end closing process for the final periodof the fiscal year.
Pre-closing activities that begin in the old month include:
� Technical - Open the first accounting period of the new fiscal year (FI),� MM - Perform physical inventory count (may be performed on up to a monthly
basis)� PP/CO - Update product cost estimates (may be performed more frequently)� MM - Lowest value determination and LIFO/FIFO valuation� AA - Asset valuations and investment support� FI - Balance confirmations for customers/vendors� Technical - Fiscal year change (AA) and balance carryforward (FI)
Closing activities for external purposes include:
� FI - GR/IR clearing account analysis, receivables and payables regrouping,reconciliation of prior year to new year, and other adjustment postings
� Technical - Final closing of the old period (AR/AP and GL)� FI/CO - Creation of external and internal reports
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AC205 Lesson: Month-End and Year-End Closing Processes
Facilitated Discussion
Business ExampleIn a project committee meeting, you want to present the main closing processes tothe individual project managers so that the subsequent cross-component procedurecan be agreed.
Discussion QuestionsUse the following questions to engage the participants in the discussion. Feel free touse your own additional questions.
What are the principle processes involved in month-end closing?
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Unit 1: Overview of the Closing Activities AC205
Lesson Summary
You should now be able to:� Describe the integrated process of both month-end and year-end closing
6 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Unit Summary
Unit SummaryYou should now be able to:� Describe the integrated process of both month-end and year-end closing
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Unit 27 The Financial Statements
This unit illustrates the key tools required for creating financial statements as well asdisplay and reporting options. It also describes how to create and change the structureof financial statements.
Unit OverviewThis unit introduces the key tools required for creating financial statements and profitand loss (P&L) statements.
Unit ObjectivesAfter completing this unit, you will be able to:
� Identify where in the system you execute the financial statement program� Describe the purpose of the financial statement version� Create, change, and display financial statement versions� Create financial statements using a drilldown report
Unit ContentsLesson: Financial Statement Versions ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Exercise 1: Creating Financial Statements .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Lesson: Drilldown Reporting ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Exercise 2: Drilldown Reporting ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
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Unit 2: The Financial Statements AC205
Lesson:8
Financial Statement VersionsLesson Duration: 105 Minutes
Lesson OverviewThis lesson introduces the financial statement version as a convenient means ofrepresenting the balance sheet and profit and loss statement. You will also beintroduced to the options provided by the standard program RFBILA00.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Identify where in the system you execute the financial statement program� Describe the purpose of the financial statement version� Create, change, and display financial statement versions
For more information, see the Instructor Guide on SAPNet.
Business ExampleThe project manager has asked your group to locate and document the area wherefinancial statement configuration takes place. You should display and change existingversions and then create a new version.
10 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Lesson: Financial Statement Versions
Figure 3: Financial Statement Versions Overview
SAP R/3 provides a standard report (RFBILA00) for creating financial statements.You can produce different outputs from this report program by specifying differentfinancial statement versions.
Financial statement versions are also used in the structured balance list, drilldownreporting, planning, and transferring data to consolidation.
You can define as many financial statement versions as you need to prepare reportsaccording to various criteria, for example, for tax authorities, for other external users,and for internal purposes.
The financial statement version enables you to configure the report format. Youdetermine the following:
� Which items are to be included and the sequence and hierarchy of these items� The text describing the items� The charts of accounts and the individual accounts relevant to the report� The totals to be displayed
You can use the selection parameters for RFBILA00 to make additional specifications,such as whether to create the report at the business area level, company code level,and so on.
The standard system is delivered with sample financial statement versions. You cancopy these and modify them to create your own versions.
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Unit 2: The Financial Statements AC205
New from Release 4.6C: As an alternative to the financial statements, you can useRFBILA00 to create a structured list of account balances.
Figure 4: Financial Statement Versions
You define a financial statement version in two steps:
� Enter it in the directory of financial statement versions� Define hierarchy levels and assign accounts
Each version must have the following �special items�
� Assets� Liabilities� Profit� Loss� Profit and loss results� Accounts not assigned� Notes to Financial Statement
The net profit or net loss and the profit and loss results are calculated using the samereport that you use to create the financial statement. In addition, the report lists theaccounts that were not assigned to an item in the financial statement version underthe item Non-assigned Accounts.
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AC205 Lesson: Financial Statement Versions
New to ERP 2004: Fixed items for the notes to the financial statement: A new fixeditem similar to the assets and liabilities items is now created for the notes to financialstatement item when you define the financial statement version. By reassigning thecorresponding accounts to this item you can ensure that these accounts are no longerincluded in the profit and loss result when you execute the financial statement report.
The net profit or net loss is only determined from accounts that are assigned to theassets and liabilities items. Accounts belonging to the items notes to financialstatement (see above) or not assigned are not taken into account when you determinethe net profit or loss, nor are they included in the profit and loss result. The profit andloss result is derived from the balance of all the other accounts.
Figure 5: The Balance Sheet Section of a Financial Statement Version
A financial statement version consists of a maximum of 20 hierarchy levels.
A) You assign items to each level. The system calculates a total/subtotal for each item,which is then displayed when the program is run.
B) Assign texts to each item.
C) Assign the accounts whose balance and account name are to be listed to the lowestlevels.
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Unit 2: The Financial Statements AC205
Figure 6: Texts
You can write additional texts for each item in a financial statement. You can write upto four lines of text at the beginning and/or the end of an item.
A graduated total is calculated, in addition to the control level method. It can becalled up from any point within the financial statement structure. You can outputgraduated totals in the profit and loss part of the structure in the standard systemusing this function.
Program RFBILA00 enables you to print the financial statements on a SAPSCRIPTform.
You generate the form by selecting a version in the directory of financial statementversions: Goto→ Generate Form→ One-Column Form.. Change the form accordingto your requirements. Activate the form. Enter the form on the selection screen forRFBILA00 (tab page: Output control).
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AC205 Lesson: Financial Statement Versions
Figure 7: Account Group Assignment According to Balance
You use account group assignment to determine in which cases the balance of aspecific account group is to appear in a specific financial statement item.
The following examples only apply for accounts with a fluctuating balance.
Example: Bank accounts
First example:
D CX
X If the joint balance of all accounts listed under this item is a debit balance, it willappear here.
Second example:
D CX
X If the joint balance of all accounts listed under this item is a credit balance, it willappear here.
The following example applies to most accounts:
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Unit 2: The Financial Statements AC205
Another example:
D CX X
The balance will always appear here irrespective of whether the balance of theaccounts is a debit or credit.
Example: Receivables accounts
Figure 8: The Profit and Loss Section of a Financial Statement Version
You maintain the profit and loss statement hierarchy in the same way as you maintainassets and liabilities in the balance sheet.
In the profit and loss statement area, you can use the graduated total function todisplay the result of business transactions (total of operating result and financialresult) as a total, for example.
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AC205 Lesson: Financial Statement Versions
15 Exercise 1: Creating Financial StatementsExercise Duration: 20 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Create financial statements� Customize the financial statement version
Business ExampleYour project manager has asked you to review the options for financial statementreporting in SAP R/3. You need to review the presentation provided by the standardbalance sheet/profit and loss program, RFBILA00 and the ability to customize thepresentation using different financial statement versions.
Task 1:Carry out the following task.
1. Create financial statements (report RFBILA00) for your company code AC##for the current period and fiscal year. Use the existing financial statementversion INT and the ALV tree control list output.
Task 2:Create your own financial statement version FS## by copying and modifying anexisting version.
1. Copy the financial statement version INT to create your own version FS## andadd as a description Financial Statement Version ##. Use the language of thecountry where the course is taking place as the maintenance language.
2. Check whether all the G/L accounts in your chart of accounts and company codehave been correctly assigned to the financial statement items in your financialstatement version.
3. Create your own profit and loss item 3063000, Employee Training and Educationunder the 'Staff costs' item.
4. Assign the account 476400, Training costs, to the new item 'Employee Trainingand Education'. The account will appear in this item whether it has a debit orcredit balance.
Continued on next page
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Unit 2: The Financial Statements AC205
5. Reassign your financial statement items under 'Staff costs' by moving yournew item 3063000 to the end.
Task 3:Carry out the following task.
1. Create financial statements (report RFBILA00) for company code AC## for thecurrent period to test your new financial statement version FS##. Also, create areport variant to simplify reporting in subsequent exercises. Assign the variantname VAR## and the description �CoCode AC## current period�.
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AC205 Lesson: Financial Statement Versions
Solution 1: Creating Financial StatementsTask 1:Carry out the following task.
1. Create financial statements (report RFBILA00) for your company code AC##for the current period and fiscal year. Use the existing financial statementversion INT and the ALV tree control list output.
a) Create the financial statements (RFBILA00)
Menu path for report:
Information Systems→ Accounting→ Financial Accounting→ GeneralLedger→ Balance Sheet
Enter the following data:
Company code: AC##
Tab page: Further selections
Financial statement version: INT
Reporting year: Current year
Reporting periods: From current period to current period
List output: ALV Tree Control
Execute the report.
Continued on next page
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Unit 2: The Financial Statements AC205
Task 2:Create your own financial statement version FS## by copying and modifying anexisting version.
1. Copy the financial statement version INT to create your own version FS## andadd as a description Financial Statement Version ##. Use the language of thecountry where the course is taking place as the maintenance language.
a) Create the financial statement version
Copy financial statement version INT.
Menu path to configure financial statement version:
Tools→ AcceleratedSAP→ Customizing→ Edit Project→ Goto→ SAPReference IMG→ Financial Accounting→ General Ledger Accounting→Business Transactions→ Closing→ Documenting→ Define FinancialStatement Versions
Mark the row for financial statement version INT.
Edit→ Copy As ...
Enter the name FS## and the description Financial Statement Version ## .
Choose Enter.
Save.
Double-click the financial version you have just created: FS## to checkthe maintenance language.
If necessary, change this to the language of the country in which thecourse is being held.
Save.
DO NOT EXIT THIS SCREEN
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AC205 Lesson: Financial Statement Versions
2. Check whether all the G/L accounts in your chart of accounts and company codehave been correctly assigned to the financial statement items in your financialstatement version.
a) Check the assignment of accounts
Choose Fin. Statement Items.
Choose Structure→ Check.
Enter your company code (AC##) and set only the NonassignedAccounts Fr.Chart of Accts From Company Code indicator.
Choose Enter.
Once you have finished viewing the unassigned accounts, choose Enter toclose the dialog box and continue with the next exercise.
DO NOT EXIT THIS SCREEN
3. Create your own profit and loss item 3063000, Employee Training and Educationunder the 'Staff costs' item.
a) Create profit and loss statement items
On the Change Financial Statement Version screen:
Drill down by clicking the folder to the left of the item �Profit and lossstatement�.
Place your cursor on the �Staff costs� item and choose Create Items.
Enter 3063000 as the item number and �Employee Training andEducation� as the description.
Choose Enter to add the new item to the structure.
DO NOT EXIT THIS SCREEN
Continued on next page
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Unit 2: The Financial Statements AC205
4. Assign the account 476400, Training costs, to the new item 'Employee Trainingand Education'. The account will appear in this item whether it has a debit orcredit balance.
a) Assign accounts
On the Change Financial Statement Version screen:
Place your cursor on the 'Employee Training and Education' item andchoose Assign Accounts.
Enter 476400 in the 'From act' column and set both the debit balance (D)and credit (C) balance indicators.
Choose Enter.
DO NOT EXIT THIS SCREEN
5. Reassign your financial statement items under 'Staff costs' by moving yournew item 3063000 to the end.
a) Reassign items
On the Change Financial Statement Version screen:
Place your cursor on item 3063000.
Choose Edit→ Select +/-
(Item is highlighted)
Place the cursor on the target item, 3062000.
Choose Edit→ Reassign +/-
Confirm the �Same Level� setting.
Choose Enter.
(Item is moved)
Save.
Continued on next page
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AC205 Lesson: Financial Statement Versions
Task 3:Carry out the following task.
1. Create financial statements (report RFBILA00) for company code AC## for thecurrent period to test your new financial statement version FS##. Also, create areport variant to simplify reporting in subsequent exercises. Assign the variantname VAR## and the description �CoCode AC## current period�.
a) Test financial statements (RFBILA00) and create variant
Menu path for report:
Information Systems→ Accounting→ Financial Accounting→ GeneralLedger→ Balance Sheet
Enter the following data:
Company code: AC##
Tab page: Further Selections
Financial Statement Version:FS##
Reporting year: Current year
Reporting Periods: From current period to current period
Select Goto→ Variant→ Save as Variant�
Enter the following data:
Variant name: VAR##
Description: CoCode AC## current period
Save.
Execute the report.
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Unit 2: The Financial Statements AC205
Lesson Summary
You should now be able to:� Identify where in the system you execute the financial statement program� Describe the purpose of the financial statement version� Create, change, and display financial statement versions
24 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Lesson: Drilldown Reporting
Lesson:23
Drilldown ReportingLesson Duration: 15 Minutes
Lesson OverviewThis lesson explains how to create a financial statement version using drilldownreporting.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Create financial statements using a drilldown report
For more information, see the Instructor Guide on SAPNet.
Business ExampleYour project manager wants you to check and document the report functions ofdrilldown reporting in addition to the financial statement version.
Figure 9: Drilldown Reporting
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Unit 2: The Financial Statements AC205
Drilldown reporting is a tool that enables you to analyze G/L account transactionfigures and financial statements. You can also carry out variance analyses such asplan/actual comparisons, fiscal year comparisons, and so on.
Drilldown reports make navigating through your data simple. You can move todifferent detail levels, or in different objects for analysis purposes, or change betweena drilldown view and a detailed view. Drilldown reporting also provides functionsfor processing lists, such as sorting, conditions (threshold values), ranking lists,and so on. You can also access SAP Graphics, SAPmail, and the Excel Listviewerfrom your report.
The menus and functions directly available in the drilldown report make it easy to usethe information system.
Characteristics and key figures form the basis of the drilldown report presentation.Characteristics define how your data can be classified or provide a time reference.Key figures include stored values or quantities and calculations based on these valuesand quantities. In G/L drilldown reports:
� Characteristics can include company, company code, business area, chart ofaccounts, financial statement item, currency, fiscal year, period, and so on
� Key figures can include total credit balance, total debit balance, balance sheetvalue, accumulated balance, balance carryforward, and so on.
Figure 10: Drilldown List and Detail List Reporting
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AC205 Lesson: Drilldown Reporting
Each report consists of a number of lists (depending on how many characteristics youselect and the number of values for those characteristics) that are divided into twocategories according to their content: Drilldown Lists and Detail List Reporting.
A drilldown list displays a selection of key figures in combination with at leastone characteristic (for example, balance sheet value for a fiscal year, the variancecalculation) for a number of drilldown characteristics (such as Assets/BusinessArea 0001, Assets/Business Area 8000, Assets/Business Area 9900). The keyfigures appear in the columns of a drilldown list. The lowest level of the drilldowncharacteristics appear in the rows of this list, while all other levels and their selectedvalues appear at the top of the report. In this example, we selected �Assets� for the�financial statement item� characteristic and then the �business area� characteristic,giving us a view of the total assets for each business area.
A detail list always shows all the key figure and characteristic combinations for asingle combination of drilldown characteristic values (for example, assets for businessarea 0001). The key figures appear in the rows of a detail list. All selected drilldowncharacteristics, including their selected values, appear at the top of the report in theorder chosen.
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AC205 Lesson: Drilldown Reporting
27 Exercise 2: Drilldown ReportingExercise Duration: 10 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Execute and navigate a drilldown report
Business ExampleThe cross-application drilldown reporting function can also be used to create financialstatements. You will run a delivered balance sheet/profit and loss report to explore thefeatures provided by this reporting tool.
Task:Create a new session.
1. Create financial statements using the Actual/Actual Comparison for Yeardrilldown report. Run the report for your company code AC## and the currentfiscal year. Use the financial statement version that you created (FS##). Withinthe output list of the report, drill down to the line items which make up theaccount �Salaries - base wages�.
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Unit 2: The Financial Statements AC205
Solution 2: Drilldown ReportingTask:Create a new session.
1. Create financial statements using the Actual/Actual Comparison for Yeardrilldown report. Run the report for your company code AC## and the currentfiscal year. Use the financial statement version that you created (FS##). Withinthe output list of the report, drill down to the line items which make up theaccount �Salaries - base wages�.
a) Call up drilldown report
Menu path to create a new session:
System→ Create Session
Menu path for the report: Accounting→ Financial Accounting→ GeneralLedger→ Information System→ General Ledger Reports→ BalanceSheet/Profit and Loss Statement/Cash Flow→ General Actual/ActualComparisons→ Actual/Actual Comparison for Year
Enter the following data:
Company Code: AC##
FIS Annual Rep.Struc: FS##
Fiscal Year: Current year
Execute the report.
Expand the profit and loss statement by clicking the '+' to the left of theProfit and Loss Statement row.
Continue to expand the following:
+ Staff costs
+ Wages and salaries
+ Salaries - base wages
+ Salaries - base wages
Salaries
Place the cursor on the selected row in the column for the current fiscal year.
Choose Goto→ Line items
Continued on next page
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AC205 Lesson: Drilldown Reporting
Check the line items for this account.
(Optional) Display the line items by double-clicking them. In the documentdisplay, choose the Document Overview icon to view the other line itemsfor this document.
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Unit 2: The Financial Statements AC205
Lesson Summary
You should now be able to:� Create financial statements using a drilldown report
32 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Unit Summary
Unit SummaryYou should now be able to:� Identify where in the system you execute the financial statement program� Describe the purpose of the financial statement version� Create, change, and display financial statement versions� Create financial statements using a drilldown report
2005/Q2 © 2005 SAP AG. All rights reserved. 33
Unit 333 Fixed and Current Assets
This unit highlights the effects of fixed assets (Asset Accounting) and current assets(Materials Management) on General Ledger Accounting.
Unit OverviewThis unit introduces the pre-closing activities in Asset Accounting and MaterialsManagementand, in particular, their effects on General Ledger Accounting.
Unit ObjectivesAfter completing this unit, you will be able to:
� Outline the impact of posting book and tax depreciation within Asset Accountingon periodic closing activities within General Ledger Accounting.
� Explain how the physical inventory procedure can lead to a G/L posting� Describe the monthly maintenance of the GR/IR clearing account in MM� Carry out the analysis of the GR/IR account for year-end closing� Identify the various year-end valuation methods for work in process and for
material that is procured internally and externally
Unit ContentsLesson: Fixed Assets ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Exercise 3: Fixed Assets ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Lesson: Current Assets ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Exercise 4: Current Assets.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
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Unit 3: Fixed and Current Assets AC205
Lesson:34
Fixed AssetsLesson Duration: 60 Minutes
Lesson OverviewThis lesson provides an overview of the closing activities in Asset Accounting.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Outline the impact of posting book and tax depreciation within Asset Accountingon periodic closing activities within General Ledger Accounting.
For more information, see the Instructor Guide on SAPNet.
Business ExampleAssets are displayed on the asset-side of the balance sheet and are grouped into fixedassets and current assets. Fixed assets include all objects that the company uses on apermanent basis. In Asset Accounting, objects are entered on a quantity and valuebasis. Any changes are also posted. For legal reporting purposes, some of theserecords have to be prepared or adjusted.
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AC205 Lesson: Fixed Assets
Figure 11: Overview: Asset Closing Operations
Year-end closing can be divided into two main categories:
� Legal requirements (preparations required by the tax authorities)
� Technical and organizational requirements (preparations that are technicallyrequired or needed to support the accounting organization)
With the fiscal year change program, the fiscal year change is carried out in the oldfiscal year, and carries forward the asset account balance to the new fiscal year.
At the beginning of the new fiscal year, a technical reconciliation is carried out, whichcompares the transaction figures in Asset Accounting with those in the relevant G/Laccounts.
The inventory is then carried out and the adjustments detected in the inventory areposted. The depreciation posting run posts the depreciation in the general ledger.
Since only one depreciation area can forward its APC values postings to the generalledger online, a special program has to be used to post the APC values postings inother relevant depreciation areas to the general ledger (periodic APC values posting).
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Unit 3: Fixed and Current Assets AC205
The asset history sheet can then be generated.
Hint: The closing processes may vary from country to country. You trainercan provide you with information on special procedures that may be requiredin your country.
Figure 12: Depreciation Posting Program
The depreciation position program RAPOST2000 can be used to record (if required)
� Ordinary (book and cost-accounting) depreciation� Tax special depreciation or the allocation and write off of reserves for special
depreciation on the basis of tax special depreciation� Unplanned depreciation (or other manually planned depreciation)� Imputed interest� APC revaluation below/above the accumulated depreciation.
Up to and including Release 4.6C, you have to use the old posting programRABUCH00 to create a batch input session containing the depreciation postingdocuments for the general ledger. This session has to be run in order to establishconsistency between Asset Accounting and the general ledger.
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AC205 Lesson: Fixed Assets
The program RAPOST2000 posts directly to the general ledger accounts andadditional account assignment objects. The test run checks all errors that may arise(such as locked cost centers) and displays these in an error list.
Postings can only be made to one real CO account assignment object. Additionalstatistical postings can be made to other objects.
Figure 13: Fiscal Year Change/Year-End Closing
The system understands fiscal year change as the creation of a new fiscal year for acompany code. With a fiscal year change, the asset values from the old fiscal year arecumulatively carried forward to the new fiscal year. From this point on, you can makeasset postings with a reference date in the new fiscal year. At the same time, however,you can continue to make postings to the old fiscal year.
You cannot change the fiscal year before the last period of the old fiscal year.
SAP provides you with a check report for year-end closing. It checks the following:
� Whether all the assets accrued in the fiscal year have been activated.� Whether the fiscal year change has been completed for all assets� Whether depreciation was fully posted� Whether errors exist (such as an incorrectly defined depreciation key for the
depreciation calculation)� Whether the asset balances from depreciation areas for periodic posting have
been posted in full to the general ledger.
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Unit 3: Fixed and Current Assets AC205
In addition, if the program finds no errors, it updates the last closed fiscal year foreach depreciation area. After you have run the program, you can no longer post intothe old year.
Figure 14: The Asset History Sheet
The asset history sheet is the most important and comprehensive report for closing.As in the case of balance sheets, the structure of the asset history sheet largelydepends on country-specific requirements. For this reason, different versions of assethistory sheets can be created.
Each version of an asset history sheet contains different history sheet groups, such as
� Book values at the beginning of the fiscal year� Acquisitions� Retirements� Repostings� Depreciation� Book values at the end of the fiscal year
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AC205 Lesson: Fixed Assets
39 Exercise 3: Fixed AssetsExercise Duration: 15 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Change the fiscal year in Asset Accounting in test mode� Post depreciation� Explain the year-end closing activities in Asset Accounting
Business ExampleIn preparation for year-end closing, you need to review the closing activities forAsset Accounting.
For month-end closing, you need to execute a depreciation posting run to recorddepreciation expenses for the current period and to post the results to the generalledger.
Task 1:Carry out the following task.
1. Execute the �Fiscal Year Change� program for your company code AC## INTEST MODE only. Check the documentation that is displayed.
Hint: If the �Limitation online� message appears, choose �Yes� tocontinue processing.
Task 2:Process an unplanned depreciation run for the current period in your company code.Check the effects of this closing process on your financial statements from the generalledger.
1. Use the report variant VAR## that you created earlier to check the financialstatements (RFBILA00) before posting depreciation. At this point in time, youwill see the asset acquisition value only.
Continued on next page
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Unit 3: Fixed and Current Assets AC205
2. In a second session, execute an unplanned depreciation posting run for yourcompany code AC## for the current period. Execute the update run (deselect theTest Run indicator). Use printer LP01.
Hint: Remember that you have to execute a depreciation posting run inthe background. Choose Immediate Processing.
3. Now take a look at the log and the documents for the depreciation run in yourcompany code AC## for the current period.
4. You use the Asset Explorer to check the depreciation (under Posted Values)for the depreciation areas 01 (book depreciation) and 20 (cost accountingdepreciation).
5. Return to your original session to recreate the financial statements. Now youwill see the depreciation posting in the balance sheet (accumulated depreciation)and in the P&L (ordinary depreciation).
Task 3:Answer the following questions about year-end closing activities in Asset Accounting.
1. Name the year-end activity that has to be performed within FI-AA in orderto be able to post to asset accounts in the new fiscal year. When should thisactivity be performed?
2. Name the checks that are performed before the previous year is closed with theyear-end closing program in Asset Accounting.
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AC205 Lesson: Fixed Assets
Solution 3: Fixed AssetsTask 1:Carry out the following task.
1. Execute the �Fiscal Year Change� program for your company code AC## INTEST MODE only. Check the documentation that is displayed.
Hint: If the �Limitation online� message appears, choose �Yes� tocontinue processing.
a) Carry out the fiscal year change in test mode
Menu path for fiscal year change:
Financial Accounting→ Fixed Assets→ Periodic Processing→ FiscalYear Change
Enter the following data:
Company code: AC##
New Fiscal Year: Current year + 1
Test Run: Set indicator
Execute the report.
Hint: If the �Limitation online� message appears, choose �Yes�to continue processing.
Once you have checked the report, return to the main menu.
Continued on next page
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Unit 3: Fixed and Current Assets AC205
Task 2:Process an unplanned depreciation run for the current period in your company code.Check the effects of this closing process on your financial statements from the generalledger.
1. Use the report variant VAR## that you created earlier to check the financialstatements (RFBILA00) before posting depreciation. At this point in time, youwill see the asset acquisition value only.
a) Call up the report (RFBILA00)
Menu path for report:
Information Systems→ Accounting→ Financial Accounting→ GeneralLedger→ Balance Sheet
Select a variant:
Goto→ Variants→ GetEnter VAR##.
Choose Execute to select the variant.
Execute the report.
After you have checked the report, return to the Balance Sheet/P+LStatement screen.
Continued on next page
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AC205 Lesson: Fixed Assets
2. In a second session, execute an unplanned depreciation posting run for yourcompany code AC## for the current period. Execute the update run (deselect theTest Run indicator). Use printer LP01.
Hint: Remember that you have to execute a depreciation posting run inthe background. Choose Immediate Processing.
a) Execute an unplanned depreciation posting run
Hint: Remember that you must execute a depreciation postingrun in the background.
Choose Immediate Processing.
Menu path to create a new session:
System � Create Session
Menu path for the depreciation program:
Accounting → Financial Accounting→ Fixed Assets → PeriodicProcessing→ Depreciation Run→ Execute
Enter the following data:
Company code: AC##
Fiscal Year: Current year
Posting Period: Current period
Select Unplanned Posting Run. Deselect the Test Run indicator.
Choose Program→ Execute in Background.
Enter LP01 as the output device.
Choose Enter.
Choose start time: Immediate.
Save.
Continued on next page
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Unit 3: Fixed and Current Assets AC205
3. Now take a look at the log and the documents for the depreciation run in yourcompany code AC## for the current period.
a) Menu path for the log:
Accounting → Financial Accounting → Fixed Assets→ PeriodicProcessing→ Depreciation Run→ Display Log
Enter the following data:
Company code: AC##Fiscal year: Current fiscal yearPosting period: Current period
Set the List Assets indicator.
When the assets have been listed, double-click on Document Number tobranch to the accounting document (documents in Accounting). Takea look at the accounting document and then go back to the main AssetAccounting menu.
4. You use the Asset Explorer to check the depreciation (under Posted Values)for the depreciation areas 01 (book depreciation) and 20 (cost accountingdepreciation).
a) Menu path for the Asset Explorer:
Accounting→ Financial Accounting→ Fixed Assets→ Asset→ AssetExplorer
Enter the following data:
Company code: AC##Asset: TACMACH##Fiscal year: Current fiscal year
For this asset, choose the depreciation area 01 book depreciation and go tothe Posted Values tab page to display the depreciation amounts. Repeat thisstep for depreciation area 20, cost accounting depreciation.
Continued on next page
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AC205 Lesson: Fixed Assets
5. Return to your original session to recreate the financial statements. Now youwill see the depreciation posting in the balance sheet (accumulated depreciation)and in the P&L (ordinary depreciation).
a) Create financial statements (RFBILA00)
Execute the report again from the Balance Sheet/P+L Statement screen.
Task 3:Answer the following questions about year-end closing activities in Asset Accounting.
1. Name the year-end activity that has to be performed within FI-AA in orderto be able to post to asset accounts in the new fiscal year. When should thisactivity be performed?
a) Questions on the year-end closing activities in Asset Accounting
Name the year-end activity that has to be performed within FI-AA in orderto be able to post to asset accounts in the new fiscal year. When shouldthis activity be performed?
The fiscal year change program displays fields for entering a newannual value for each asset. The earliest you can start this programis in the last posting period of the 'old' year.
2. Name the checks that are performed before the previous year is closed with theyear-end closing program in Asset Accounting.
a) The check report for year-end closing checks:
� Whether all the assets accrued in the fiscal year have been activated.� Whether the fiscal year change has been completed for all assets� Whether depreciation was fully posted� Whether errors exist (such as an incorrectly defined depreciation key
for the depreciation calculation)� Whether the asset balances from depreciation areas for periodic
posting have been posted in full to the general ledger.
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Unit 3: Fixed and Current Assets AC205
Lesson Summary
You should now be able to:� Outline the impact of posting book and tax depreciation within Asset Accounting
on periodic closing activities within General Ledger Accounting.
48 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Lesson: Current Assets
Lesson:47
Current AssetsLesson Duration: 60 Minutes
Lesson OverviewThis lesson provides an overview of the closing activities in Materials Management.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Explain how the physical inventory procedure can lead to a G/L posting� Describe the monthly maintenance of the GR/IR clearing account in MM� Carry out the analysis of the GR/IR account for year-end closing� Identify the various year-end valuation methods for work in process and for
material that is procured internally and externally
For more information, see the Instructor Guide on SAPNet.
Business ExampleCurrent assets include all objects that the company does not use on a long-term orpermanent basis. Instead, these assets are used for sales, consumption, or othershort-term activities. Stocks can be determined and valuated on the basis of aninitial entry of stock balances. You need to check that the SAP system can meetyour country-specific legal requirements.
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Unit 3: Fixed and Current Assets AC205
Figure 15: Physical Inventory Procedure
The physical inventory procedure determines the quantity of stocks to be displayed onthe balance sheet. SAP R/3 supports the following methods:
� Continuous inventory method: Stocks are counted throughout the entire fiscalyear. Every material has to be physically counted at least once during the courseof the year.
� Periodic inventory method: All stocks are physically counted on the balancesheet key date. Every material has to be counted on this date. During the count,the entire warehouse is blocked from any material movements.
� Cycle counting method: This also involves a physical inventory count. Thematerial stocks are counted at regular intervals during the fiscal year. Theinterval or cycle in which a material is counted depends on the cycle countingindicator set for the material.
The actual quantity counted within the course of a physical inventory is entered in thematerial master record as the new quantity for the material. The difference betweenthe quantity counted and the quantity recorded in the system is posted in MaterialsManagement.
If there is a reduction in stock, the following posting is made in Financial Accounting:
� (DR) �Expense from physical inventory differences�� (CR) �Stock value adjustment�
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AC205 Lesson: Current Assets
Figure 16: Three-Step Reconciliation (Standard Procedure)
The three-step reconciliation is the standard procedure for posting procurementtransactions in Financial Accounting. The procedure involves the following threesteps:
� Purchase order
This is carried out exclusively in MM. No data is posted in Financial Accounting.
� Goods receipt
To update the inventory, a material document is created in MM. At the sametime, a document is created in FI, which is used to post the value of the goods tothe material stock account or the consumption account (debit) and to the goodsreceipt/invoice receipt account (credit).
� Invoice receipt
The vendor invoice is posted in MM and a document is created in FI at the sametime. This FI document contains the invoice amount that is posted to the goodsreceipt/invoice receipt account (debit) and to the vendor account (credit).
The last two steps can be completed in reverse order, depending on the order in whichthe goods and the invoice are received.
The goods receipt/invoice receipt account ensures that goods were received for eachinvoice and vice versa.
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Unit 3: Fixed and Current Assets AC205
Figure 17: Maintain GR/IR Clearing Accounts
The GR/IR clearing account is maintained in Materials Management when thequantity of a material delivered and the quantity invoiced differ and no furthermaterials are expected.
We recommend maintaining the GR/IR clearing account on a monthly basis. Thismeans that purchase orders, and thus accounts too, can be adjusted as soon after theactual transactions as possible.
Closing activities in Financial Accounting also involve analyzing the GR/IR clearingaccount and ensuring that the balance is zero (goods delivered but not invoiced/goodsinvoiced but not delivered: RFWERE00).
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AC205 Lesson: Current Assets
Figure 18: GR/IR Analysis
The GR/IR clearing account records all the goods and invoices received. If the balanceof the GR/IR account is not zero on the balance sheet key date, this is because
� Goods were invoiced by the key date but have not yet been delivered or� Goods were delivered by the key date but have not yet been invoiced
The first case is an example of receivables from the vendor and the second of payablesto the vendor. Accordingly, the balance must be displayed separately on either theasset side or the liabilities side.
A special program analyzes the GR/IR account for this purpose and posts the balanceto either an �invoiced but not delivered� account or a �delivered but not invoiced�account. At the same time, the posting is reversed for the first day of the next period,since this transfer posting would produce incorrect results during the day-to-dayactivities.
An adjustment account is usually used to clear this entry. The GR/IR clearing accountand its adjustment account are contained in the appendix to the balance sheet.
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Unit 3: Fixed and Current Assets AC205
Figure 19: Stock Valuation
Three groups of stocks have to be valuated:
1. The raw materials, supplies, and consumables (RSC)
These stocks are usually procured externally and are, therefore, managed with amoving average price. On the balance sheet, the value for the RSC account iscalculated from the current moving average price and the stock quantity.
2. Work in process (WIP)
These stocks are usually produced internally and are therefore valuated with astandard price. The WIP value on the key date cannot be seen on the balancesheet unless additional steps are carried out.
3. Finished goods
If, however, the goods manufactured in-house have already been produced andposted to the warehouse, the value is calculated from the stock quantity and thestandard price of the goods.
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AC205 Lesson: Current Assets
Figure 20: Stock Valuation: RSC
Balance sheet valuation:
You can valuate stocks for the balance sheet in two ways: Lowest value determinationaccording to current market prices (RMNIWE00) and lowest value determinationaccording to rate of movement/range of coverage (RMNIWE10/20). You can use bothmethods separately (single-level procedure) or in combination (multi-level procedure).
Value determination:
You can determine market prices on the basis of goods receipts or invoice receipts, forexample. You can provide percentage devaluations for stocks that are not fast-movingor that have a large range of coverage.
Price update in the material master:
To document the results of the lowest value determination in the material master, youcan update the values determined in the price fields in the material master. You canalso provide a new standard price. In this case, you do not need to carry out the nextstep, �the revaluation of total�, since the valuation approach on the balance sheet iscalculated directly from the stock quantity and the (new) standard price.
Revaluation of total:
If the standard price is not updated in the material master, you usually have to postthe total manually. The program RMNIWE90 (Balance sheet value per account)provides the amount for posting the total. The posting record is: Expense from valueadjustment RSC to value adjustment RSC. The posting displays the value adjustmentin the P+L statement and adjusts the stock value on the balance sheet.
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Unit 3: Fixed and Current Assets AC205
Figure 21: Stock Valuation: WIP
A production order consists of six transactions. The first four transactions are partiallyconfirmed on the balance sheet key date. The production order is still in productionand the goods have not yet been posted to the warehouse.
WIP is calculated on the key date. This determines the WIP value that is to be used.
The settlement of the production order displays the value of the WIP on the balancesheet and, at the same time, posts the change in stock in the P+L statement.
After the balance sheet key date, the production order is finally confirmed and settled.This causes the WIP to be canceled (in the subsequent period, the key date posting isreversed). The balance sheet displays the value of the finished products and, at thesame time, the production order is credited.
You can calculate the WIP on the basis of either the actual costs incurred for the orderor the target costs for completed transactions (depending on the basis of the type ofproduction order). In the case of the actual costs method, the WIP value of an order isthe difference between the actual cost debit and the total credit for partial deliveries.With the target costs method, you calculate the WIP value by multiplying the quantityremaining after each transaction by the planned costs for this transaction. You usethe current standard cost estimate or the version-specific cost estimate (repetitivemanufacturing) to determine the planned costs. In both cases, you determine inCustomizing which cost apportionment is to be capitalized.
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AC205 Lesson: Current Assets
Figure 22: Stock Valuation: Finished Products/Inventory Costing
Costing run:
When costing a material with a quantity structure (CK11N), you use the costingvariant to determine whether the costing run refers to tax or book inventory costing.
Value determination/price update:
You specify in Customizing how the values are determined and where the costingresults are updated.
Raw materials, supplies, and consumables that are used in your finished products weregiven a new basis for valuation, due to the lowest value determination, for example.The costing run uses these new valuation bases and shows the change in the costedfinished product.
Revaluation of total:
If the standard price is not updated in the material master, you usually have to post thetotal manually. The costing run provides the amount for posting the total. The postingrecord is: Expense from value adjustment for finished products to value adjustmentfinished products. The posting shows the value adjustment in the P+L statement andadjusts the stock value on the balance sheet.
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AC205 Lesson: Current Assets
55 Exercise 4: Current AssetsExercise Duration: 20 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Execute the lowest value determination for a material and post the price
adjustment� Analyze the GR/IR clearing account� Describe the GR/IR clearing account analysis function
Business ExampleYou will also revalue materials at the end of the year using the lowest valuedetermination method. Check the effects in Materials Management and FinancialAccounting.
Your manager also wants to know what steps are required to bring the GR/IR clearingaccount balance to zero for year-end reporting. You should now carry out the analysis.
Task 1:Determine the lowest value for your material T-AC205-## and then revalue it.
1. Review the balance sheet/profit and loss statement (RFBILA00) for inventorybalances (raw materials) before posting the material revaluation from the lowestcost determination. Use the report variant VAR## that you created earlier.
2. In a second session, review the current material price and value for materialT-AC205-## in plant AC##. Make a note of the standard price of the material,the total stock (quantity), total value, and the previous price from the Accounting1 view of the material master record.
3. Create a purchase order for 100 pieces (pc) of raw material T-AC205-## at a costof EUR 8 for plant AC## from vendor T-F00A00. Use purchasing organizationPurchase Org AC##, purchasing group G. Oswald (030), and company codeAC##. Make a note of the purchase order number.
4. You receive the material from your purchase order into inventory for plantAC##. The movement type for this transaction is 101, and the storage locationfor your material T-AC205-## is 0001.
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Unit 3: Fixed and Current Assets AC205
5. Display the accounting document generated for the goods receipt in the previousstep. Note that the value of the material posted to the stock account is the goodsreceipt quantity multiplied by the current standard price of the material. Thedifference between the standard price and the purchase order price is postedto a price difference account.
6. Return to your original session to recreate the financial statements. The increasein stock from the goods receipt is reflected in the material stock account balance.
7. Determine the lowest value for your material T-AC205-## in your companycode AC##. Use today's date as the key date to determine the lowest value andthe receipt prices and order prices to determine the market prices. Make surethat receipts and purchase orders are in the selected posting time. You definethat the results are to be updated to the database by means of direct input. Thematerial master record is thus updated with the lowest standard or market priceand the material is revalued in the inventory (update prices).
8. Display the material stock value again (Accounting 1 view in the material masterrecord) for your material T-AC205-## in plant AC## in MM to see the resultof the revaluation. Make a note of the standard price of the material, the totalstock (quantity), total value, and the previous price.
Standard price: _____________________
Total stock: _____________________
Total value: _____________________
Previous price: _____________________
9. Return to your original session to recreate the financial statements. On thebalance sheet, the stock account for your material now reflects the currentvaluation. The difference between this value and the original value is displayedon the P&L statement in the �Loss from valuation of own materials� account.
Task 2:
Hint: To carry out this exercise, you need the result from exercise 1-4 (postgoods receipt).
1. The GR/IR clearing account has to be analyzed and its balance reduced to zeroon the balance sheet key date. First check the balance statement to find thebalance of the GR/IR clearing account (191100) .
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AC205 Lesson: Current Assets
2. Which program can you use to analyze your GR/IR clearing accounts and whatdo you have to do in Customizing to enable the program to operate properly?Check the entries in Customizing.
3. Execute the report for analyzing the GR/IR clearing account in your companycode AC##. Choose document type: General G/L accounts. Analyze account191100 using the end of the current month as the key date and the posting date.The reversal posting date is the end of the subsequent month. Create a batchinput session and then process it.
4. Return to the session with the financial statements (RFBILA00) to check howthe regrouped accounts are displayed on the balance sheet for the key date:�End of the current month�.
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Unit 3: Fixed and Current Assets AC205
Solution 4: Current AssetsTask 1:Determine the lowest value for your material T-AC205-## and then revalue it.
1. Review the balance sheet/profit and loss statement (RFBILA00) for inventorybalances (raw materials) before posting the material revaluation from the lowestcost determination. Use the report variant VAR## that you created earlier.
a) Lowest value determination for material T-AC205-##.
Check material stock accounts
Menu path for report:
Information Systems→ Accounting→ Financial Accounting→ GeneralLedger→ Balance Sheet
Select a variant:
Goto→ Variants→ Get
Enter VAR##.
Choose Execute to select the variant.
Execute the report.
Once you have checked the report, return to the Balance Sheet/P+LStatement screen.
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AC205 Lesson: Current Assets
2. In a second session, review the current material price and value for materialT-AC205-## in plant AC##. Make a note of the standard price of the material,the total stock (quantity), total value, and the previous price from the Accounting1 view of the material master record.
a) Check material price for material T-AC205-##
Menu path to create a new session:
System→ Create Session
Menu path to display material stock value:
Logistics→ Materials Management→ Material Master→ Material→Display→ Display Current
In the Material field, enter T-AC205-##.
Choose Enter.
Select the Accounting 1 view.
Choose Enter.
In the 'Plant' field, enter AC##.
Choose Enter.
Check the current values for the relevant fields.
Return to the main menu.
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Unit 3: Fixed and Current Assets AC205
3. Create a purchase order for 100 pieces (pc) of raw material T-AC205-## at a costof EUR 8 for plant AC## from vendor T-F00A00. Use purchasing organizationPurchase Org AC##, purchasing group G. Oswald (030), and company codeAC##. Make a note of the purchase order number.
a) Create purchase order
Menu path to create a purchase order:
Logistics→ Materials Management→ Purchasing→ Purchase Order→Create→ Vendor/Supplying Plant Known
Enter the following data:
Vendor: T-F00A00
Doc. Date: Today's date minus 4 weeks
Under Org.Data (icon: Header), enter the following data:
Purchasing Org.: AC##
Purch. Group: 030 (G. Oswald)
Company Code: AC## (training course company code ##)
Choose �Item Overview� (if this is not already open).
In the first line item, enter the following data:
Material: T-AC205-##
PO Quantity: 100
Deliv. Date: Today's date
Net Price: 8
Plnt: AC##
Save.
Make a note of the purchase order number.
Return to the main menu.
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AC205 Lesson: Current Assets
4. You receive the material from your purchase order into inventory for plantAC##. The movement type for this transaction is 101, and the storage locationfor your material T-AC205-## is 0001.
a) Post goods receipt
Menu path for goods receipt:
Logistics→ Materials Management→ Purchasing→ Purchase Order→Follow-on Functions→ Goods Receipt
Enter the following data:
Purchase Order: Your purchase order from the previous step
Enter
Enter the delivery note number LS##.
In the detail data area, choose theWhere tab page:
Storage Location: 0001
Choose Enter.
Choose �Item ok�.
Save.
Make a note of the document number.
DO NOT EXIT THIS SCREEN
Continued on next page
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Unit 3: Fixed and Current Assets AC205
5. Display the accounting document generated for the goods receipt in the previousstep. Note that the value of the material posted to the stock account is the goodsreceipt quantity multiplied by the current standard price of the material. Thedifference between the standard price and the purchase order price is postedto a price difference account.
a) Display accounting document
Goods receipt: Click on the input help for the Executable Action andchoose Display for the Goods Receipt.
'Display'. Enter the material document number that you noted (if this isnot proposed).
Choose Enter.
In the document header (icon: document header) click on Document Info
Choose Accounting Docs�
Choose Accounting Document.
Check the postings generated by the goods receipt
Return to the main menu.
6. Return to your original session to recreate the financial statements. The increasein stock from the goods receipt is reflected in the material stock account balance.
a) Create balance sheet to check the increase in stock as a result of thegoods receipt
From the Balance Sheet/P+L Statement screen (RFBILA00), execute thereport again. After you have checked the report, return to the BalanceSheet/P+L Statement screen.
7. Determine the lowest value for your material T-AC205-## in your companycode AC##. Use today's date as the key date to determine the lowest value andthe receipt prices and order prices to determine the market prices. Make surethat receipts and purchase orders are in the selected posting time. You define
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AC205 Lesson: Current Assets
that the results are to be updated to the database by means of direct input. Thematerial master record is thus updated with the lowest standard or market priceand the material is revalued in the inventory (update prices).
a) Menu path for lowest value determination:
Logistics→ Materials Management→ Valuation→ Balance SheetValuation→ Determination of Lowest Value→ Market Prices
Enter the following data:
Company Code: AC##
Key Date: Today's date
Material: T-AC205-##
Choose Market Price.
Deselect all the indicators except Receipt Prices and Order Prices. Checkthat your purchase order and goods receipt are in the selected posting time.
Choose Comparison Price and set the Current Market Price indicator.
Choose Enter.
Set the Database Update indicator.
Choose Change Material Prices.
Choose Direct Update and enter a posting date, if necessary.
Choose Enter.
Execute the program.
The system displays a list of the price changes. Return to the main menu.
8. Display the material stock value again (Accounting 1 view in the material masterrecord) for your material T-AC205-## in plant AC## in MM to see the resultof the revaluation. Make a note of the standard price of the material, the totalstock (quantity), total value, and the previous price.
Standard price: _____________________
Total stock: _____________________
Total value: _____________________
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Unit 3: Fixed and Current Assets AC205
Previous price: _____________________
a) Display material master for T-AC205-##
Menu path to display material stock value:
Logistics→ Materials Management→ Material Master→ Material→Display→ Display Current
In the Material field, enter T-AC205-##. Choose Enter. Select theAccounting 1 view.
Choose Enter.
In the Plant field, enter AC##.
Choose 'Enter'.
Check the current values for the relevant fields.
Standard price: _____________________
Total stock: _____________________
Total value: _____________________
Previous price: _____________________
9. Return to your original session to recreate the financial statements. On thebalance sheet, the stock account for your material now reflects the currentvaluation. The difference between this value and the original value is displayedon the P&L statement in the �Loss from valuation of own materials� account.
a) Create balance sheet
From the Balance Sheet/P+L Statement screen (RFBILA00), execute thereport again.
After you have checked the report, return to the Balance Sheet/P+LStatement screen.
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AC205 Lesson: Current Assets
Task 2:
Hint: To carry out this exercise, you need the result from exercise 1-4 (postgoods receipt).
1. The GR/IR clearing account has to be analyzed and its balance reduced to zeroon the balance sheet key date. First check the balance statement to find thebalance of the GR/IR clearing account (191100) .
a) Run RFBILA00 to check the balance of the GR/IR clearing account
Menu path for report:
Information Systems→ Accounting→ Financial Accounting→ GeneralLedger→ Balance Sheet. Choose the Variant:
Goto→ Variants→ Get
Enter VAR##.
Choose Execute to select the variant.
Execute the report. After you have checked the report, return to theBalance Sheet/P+L Statement screen.
2. Which program can you use to analyze your GR/IR clearing accounts and whatdo you have to do in Customizing to enable the program to operate properly?Check the entries in Customizing.
a) Program RFWERE00 analyses the GR/IR clearing account. In orderto post to the accounts �goods delivered but not invoiced� and �goodsinvoiced but not yet delivered�, you have to allocate these assignmentsin the IMG to the transaction keys BNG and GNB.
Menu path for account determination for GR/IR clearing adjustmentaccounts:
Tools→ Customizing→ IMG→ Edit Project→ Goto→ SAP ReferenceIMG→ Financial Accounting→ General Ledger Accounting→ BusinessTransactions→ Closing→ Reclassify→ Define Adjustment Accountsfor GR/IR Clearing
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Unit 3: Fixed and Current Assets AC205
3. Execute the report for analyzing the GR/IR clearing account in your companycode AC##. Choose document type: General G/L accounts. Analyze account191100 using the end of the current month as the key date and the posting date.The reversal posting date is the end of the subsequent month. Create a batchinput session and then process it.
a) Run report RFWERE00 for your company code AC##
Menu path for analysis of the GR/IR clearing account:
Accounting→ Financial Accounting→ General Ledger→ PeriodicProcessing→ Closing→ Reclassify→ GR/IR Clearing
Enter the following data:
G/L Account: 191100
Company Code: AC##
Tab page: Parameters
Key Date: End of current month
GR/IR Clearing: Set
Tab page: Postings
Creating Postings: Set
Name of batch input session: G##-WERE
Document Date: Current date
Document Type: SA
Posting Date: End of current month
Reversal Posting Date: End of current month + 1 day
Execute.
The system displays a list of all the accounts it analyzed.
Choose Postings to check which data is generated.
Menu path for processing the batch input session:
System→ Services→ Batch Input→ Sessions
Select the relevant session.
Execute.
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AC205 Lesson: Current Assets
4. Return to the session with the financial statements (RFBILA00) to check howthe regrouped accounts are displayed on the balance sheet for the key date:�End of the current month�.
a) Call up the balance sheet
From the Balance Sheet/P+L Statement screen (RFBILA00), execute thereport again.
Search for the balances for the accounts 191199 GR/IR Clearing(adjustment) and 191102 GR/IR: Delivery not yet invoiced.
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Unit 3: Fixed and Current Assets AC205
Lesson Summary
You should now be able to:� Explain how the physical inventory procedure can lead to a G/L posting� Describe the monthly maintenance of the GR/IR clearing account in MM� Carry out the analysis of the GR/IR account for year-end closing� Identify the various year-end valuation methods for work in process and for
material that is procured internally and externally
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AC205 Unit Summary
Unit SummaryYou should now be able to:� Outline the impact of posting book and tax depreciation within Asset Accounting
on periodic closing activities within General Ledger Accounting.� Explain how the physical inventory procedure can lead to a G/L posting� Describe the monthly maintenance of the GR/IR clearing account in MM� Carry out the analysis of the GR/IR account for year-end closing� Identify the various year-end valuation methods for work in process and for
material that is procured internally and externally
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Unit 471 Receivables & Payables
This unit introduces the topics of balance confirmation, foreign currency valuation,value adjustments, and explains how these are shown on the balance sheet.
Unit OverviewThis unit presents the key closing activities and configuration options in this area.
Unit ObjectivesAfter completing this unit, you will be able to:
� Create balance confirmations� Valuate foreign currency open items and balance sheet accounts� Explain how individual value adjustments are posted and describe flat-rate
individual value adjustments for doubtful receivables� Regroup receivables and payables
Unit ContentsLesson: Balance Confirmation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Exercise 5: Balance Confirmation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81Lesson: Foreign Currency Valuation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Exercise 6: Foreign Currency Valuation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93Lesson: Value Adjustments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100
Exercise 7: Value Adjustments .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103Lesson: Regrouping .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Exercise 8: Regrouping.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
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Unit 4: Receivables & Payables AC205
Lesson:72
Balance ConfirmationLesson Duration: 30 Minutes
Lesson OverviewThis lesson introduces the options available for configuring balance confirmations.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Create balance confirmations
For more information, see the Instructor Guide on SAPNet.
Business ExampleThe Accounting department wants to know what options are available for creatingbalance confirmations.
Figure 23: Overview: Customer Account Closing Activities
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AC205 Lesson: Balance Confirmation
At the beginning of the fiscal year, the balance carryforward program is run, carryingforward the balances of the customer accounts to the next fiscal year. The postingperiods of the old fiscal year are blocked and the special periods for closing postingsare opened. A technical reconciliation guarantees that the posting of documents istechnically problem-free.
The balances are then confirmed, the foreign currency documents valuated, the valuesadjusted, and the receivables regrouped.
Once complete, the special periods can be closed.
Balance confirmations are generated, foreign currencies valuated, and receivablesregrouped in the same way as in accounts payable accounting.
Hint: The closing processes may vary from country to country. Your trainercan provide you with information on special procedures that may be requiredin your country.
Figure 24: Balance Confirmations
The program for creating balance confirmations automatically creates balanceconfirmations (including reply slips) for a freely definable number of customers andvendors, as well as a reconciliation list and a results table. The balance confirmationsand reply slips are sent to the customers or vendors and the lists forwarded to a controlcenter. In IDES, this control center is the �internal audit� department.
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Unit 4: Receivables & Payables AC205
The customers or vendors check the balance information they receive and send theirreply to the control center. Here, the replies are compared with the reconciliation listand the results entered in the results table.
Figure 25: Customizing I : Balance Confirmations
Reports SAPF130D and SAPF130K create correspondence to and from yourcustomers and vendors to enable you to check the balance of receivables and payables.
You can choose from the following procedures:
� Balance Confirmation� Balance notification� Balance request
For each company code, the reports output a checklist and an error list. You use theseto check the receipt of balance confirmations. In the error list, the report logs theerrors that occurred during the evaluation.
You can also create a results list to evaluate the replies. For example, you wouldinclude the number of replies received and the total amount contained in the repliesreceived.
The system can print a selection coversheet for each report run.
Alternatively, you can use the reports to print reminders for overdue balanceconfirmations and inquiries. To do so, enter the customers concerned in addition tothe �old� issue date and �old� reply date on the selection screen.
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AC205 Lesson: Balance Confirmation
Figure 26: Customizing II : Balance Confirmations
See point 3:
You must specify at least one address to which balance confirmations should be sent.Enter an ID or leave the field blank. Depending on what you decide to enter here, thecorresponding ID has to be included in the selection criteria when the program is run.
Example:
If you want balance confirmations to be sent to the auditor, leave the ID field blank.For example, you can enter the address of the internal audit department for ID 0001for the same company code. This ID is entered in the selection criteria of the reportfor balances that the internal audit is interested in.
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AC205 Lesson: Balance Confirmation
77 Exercise 5: Balance ConfirmationExercise Duration: 10 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a balance confirmation for your customer
Business ExampleYou need to perform closing activities for payables and receivables. Forcounting/checking purposes, you create a balance confirmation to verify the accuracyof your customer account balance.
Task:Create a balance confirmation for your customer T-F00A00 in your company codeAC##.
1. Check the communication language in the customer master record. For customerT-F00A00 in company code AC##, change the communication language to thelanguage of the country where the course is being held on the Address tab page.This ensures that the balance confirmation is created in the appropriate language.
Caution: If the balance confirmation forms have not been set up inSAPScript in the course language, the output will default back toGerman.
2. Create a balance confirmation for your customer in your company code.
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Unit 4: Receivables & Payables AC205
Solution 5: Balance ConfirmationTask:Create a balance confirmation for your customer T-F00A00 in your company codeAC##.
1. Check the communication language in the customer master record. For customerT-F00A00 in company code AC##, change the communication language to thelanguage of the country where the course is being held on the Address tab page.This ensures that the balance confirmation is created in the appropriate language.
Caution: If the balance confirmation forms have not been set up inSAPScript in the course language, the output will default back toGerman.
a) Balance confirmation for your customer T-F00A00 in your company codeAC##.
Communication language for your customer.
Menu path to change the customer master record:
Accounting→ Financial Accounting→ Customers→ Master Records→ Change
Enter the following data:
Customer: T-F00A00
Company code: AC##
Tab page: Address
Scroll down to the Communication field group: Language field.
Change the language to the course language.
Save.
Return to the main menu.
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AC205 Lesson: Balance Confirmation
2. Create a balance confirmation for your customer in your company code.
a) Balance confirmation
Menu path to print balance confirmations:
Accounting→ Financial Accounting→ Customers→ Periodic Processing→ Closing→ Check/Count→ Balance Confirmation:Print
Enter the following data:
Customer: T-F00A00
Tab page: General Selections
Company code: AC##
Reconciliation Key Date: Today's date
Tab page: Further Selections
Individual Customers: X
Tab page: Output Control
Sort Var. for Correspondence: Sort by account number
Line Item Sorting: Document date, reference/doc.no.
Date of Issue: Today's date
Reply Date: Today's date + 7 days
Use printer LP01.
Printer for form set
Printer for check list
Printer for results table
Printer for error list
Printer for selections
Execute the program.
Scroll up or down to view the information on the displayed page. Pagedown to view the other report pages.
Return to the main menu.
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Unit 4: Receivables & Payables AC205
Lesson Summary
You should now be able to:� Create balance confirmations
84 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Lesson: Foreign Currency Valuation
Lesson:81
Foreign Currency ValuationLesson Duration: 75 Minutes
Lesson OverviewThis lesson describes the various methods of foreign currency valuation.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Valuate foreign currency open items and balance sheet accounts
For more information, see the Instructor Guide on SAPNet.
Business ExampleForeign currency open items and balance sheet accounts must be valuated on the basisof various business-related and legal criteria.
Figure 27: Foreign Currency Valuation (SAPF100)
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Unit 4: Receivables & Payables AC205
You carry out the foreign currency valuation before you create the financial statements.The valuation includes the following accounts and items:
� Foreign currency balance sheet accounts, that is, G/L accounts that you managein a foreign currency (the balances of the G/L accounts in foreign currencyare valuated)
� Open items (customers, vendors, G/L accounts) posted in foreign currency (theline items are valuated)
Report SAPF100 valuates open items in foreign currency as well as foreign currencybalance sheet accounts. This replaces the previous report RFSBEW00 from Release4.6B.
In order to carry out a foreign currency valuation, you have to make certain settings inCustomizing:
� Check your currency Customizing (for example, you must have defined theexchange rates)
� Define your valuation methods (for example, for the lowest value principle)� Define expense and revenue accounts for exchange rate differences from
the valuation. You must also specify balance sheet adjustment accounts forreceivables and payables accounts.
Figure 28: Foreign Currency Valuation
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AC205 Lesson: Foreign Currency Valuation
A foreign currency valuation is necessary if vendor accounts contain open items ina foreign currency. The amounts of these open items were translated into the localcurrency at the time they were entered using the current exchange rate (for example,USD 500 to EUR 600, the local currency).
The exchange rate is probably different at the time of closing, and open items need tobe valuated again. A program valuates the open items using the new exchange rateand enters the valuation difference (EUR 10 on the slide) in the valuated line items. Italso creates the valuation posting.
Expense from currency valuation to adjustment account for foreign currency(see slide)
A valuation cannot be made by a posting to the payables account, since reconciliationaccounts cannot be directly posted to. For this reason, the amount is posted to anadjustment account, which appears in the same line of the balance sheet as thereconciliation account.
A valuation method determines how the individual line items are valuated. This has tobe set up in conjunction with the country-specific valuation regulations. It defines,for example, whether the lowest value principle, the strict lowest value principle, or ageneral principle (also with revenue from the valuation) is to be used for valuation.
Figure 29: Valuation of Open Items Without Update (SAPF100)
The above accounts show the posting transactions when valuing items in foreigncurrency without updating the valuation difference in the document line item.
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In the period that the valuation is performed (as defined by the key date), a postingis made to adjust the overall receivables balance for the change in exchange rates.This posting is reversed in the next period, to bring the balances back to the originalposition. A subsequent valuation or the payment clearing is then based on the originalposting.
The adjustment posting is made on the key date as usual, and then reversed on thefollowing day. The user can however define another posting date.
Figure 30: Valuation of Open Items with Update (SAPF100)
The accounts above show the resulting posting transactions when you value openitems in foreign currency with an update of the valuation difference in the documentline item.
The �Balance sheet preparation valuation� indicator of the SAPF100 programdetermines whether or not open items will be updated.
If you value a line item, the SAP System stores the valuation difference in the lineitem. The system then uses this valuation during payment clearing or for subsequentvaluations.
Exchange rate differences that are not realized as valuation differences during paymentclearing are posted as an exchange rate translation (see example above). You specifyhow the exchange rate translation is posted for each company code. This is relevantonly in certain countries.
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AC205 Lesson: Foreign Currency Valuation
Figure 31: Summary: Valuation of Open Items
This slide provides an example of the valuation postings that would result as the valueof an open item changes from period to period, depending on whether the lowest valueprinciple or strict lowest value principle method is selected.
Figure 32: Customizing: Valuation Methods
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You can define different valuation methods for valuing foreign currency.
For each valuation method, you have to define the following:
� Parameters for the valuation procedure� Parameters for exchange rate determination
In SAP, the strict lowest value principle means that write-ups are not allowed.
You can use different rate types for determining the exchange rate.
Pushbutton �Balance Valuation�:
Only relevant when using strictest or lowest valuation principle. Example: Valuationof the open items of customer accounts. If you want to valuate credit items, you mustset this indicator. Otherwise, only debit items are valuated.
Minimum difference: Exchange rate differences can also arise for fixed or hedgedexchange rates as a result of rounding. If you specify an absolute amount, exchangerate differences up to this amount can be suppressed. The specification always refersto the smallest unit of currency.
Figure 33: Account Determination: Exchange Rate Differences (Open Items)
To carry out foreign currency valuations in accounts managed on an open item basis,you define account entries for: Valuated exchange rate gains and losses for eachreconciliation account in subledger accounts.
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AC205 Lesson: Foreign Currency Valuation
The system posts the account entries for realized exchange rate differences in foreigncurrency during the open item clearing.
Exchange rate differences that are not realized as valuation differences during paymentclearing are posted as an exchange rate translation. For each company code, you definewhether the translation should be posted. This is relevant only in certain countries.
Figure 34: Valuation of Foreign Currency Balance Sheet Accounts (SAPF100)
New from Release 4.6C: You can carry out a valuation of foreign currency balancesheet accounts using report SAPF100. On the �Selections� tab page, choose theforeign currency balance sheet accounts.
Depending on the valuation method used and the balance of the foreign currencybalance sheet account, you may end up devaluing or revaluing your accounts. You canexecute the valuation run with the same selection criteria as many times as you like.
If new transactions have been posted to the account since the last valuation run, theseare valuated during the current run.
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Figure 35: Account Determination: Exchange Rate Differences (Balance SheetAccounts in Foreign Currency)
Foreign currency accounts are valuated by balance.
Exchange rate differences in foreign currency balance sheet accounts are posted tovarious gains and losses accounts based on the �exchange rate difference key� thatyou enter in the G/L account master record.
You can define these keys in Customizing.
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AC205 Lesson: Foreign Currency Valuation
89 Exercise 6: Foreign Currency ValuationExercise Duration: 15 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Valuate your foreign currency open items for your customer
Business ExampleTo ensure correct local currency valuation, you need to revalue foreign currency openitems. You can choose between the with and without update valuation approaches.
Task:Valuate open items in foreign currency with update of the line item
Post an outgoing invoice in foreign currency to your customer T-F00A00, specifying ahigh exchange rate. Change the exchange rate so that the receivable in local currencyis worth more than when translated at the rate proposed by the system.
Example: GBP /61.0, System proposal: /71,00001;
Example: USD /0.81, System proposal: /0,99.
1. Review the balance sheet/profit and loss statement (RFBILA00) for �AccountsReceivable� before posting the foreign currency open item valuation. Use thereport variant VAR## that you created earlier.
2. In another session, execute the foreign currency valuation program first intest mode in order to see what the valuation difference is on the last day ofthe current period. Run the program for your company code AC##, valuationmethod DEMO, and customer T-F00A00.
Caution: Be sure to specify your company code.
3. Execute the foreign currency valuation program in an update run in order topost your valuation difference. Run the program for your company code AC##,valuation method DEMO, and customer T-F00A00. To make this a productionrun with update, select Bal. Sheet Preparation Valuatn.
Continued on next page
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4. Display the valuation difference that has been recorded to your foreign currencyopen item (currency GBP or USD).
Hint: If necessary, change the layout of the line item display so that youcan see the document currency.
5. Return to your original session to recreate the financial statements. On thebalance sheet, the foreign currency revaluation has been posted to the receivablesadjustment account, reducing the total receivables. The difference between thisvalue and the original value is reflected in the P&L statement in the �Expensefrom currency revaluation� account.
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AC205 Lesson: Foreign Currency Valuation
Solution 6: Foreign Currency ValuationTask:Valuate open items in foreign currency with update of the line item
Post an outgoing invoice in foreign currency to your customer T-F00A00, specifying ahigh exchange rate. Change the exchange rate so that the receivable in local currencyis worth more than when translated at the rate proposed by the system.
Example: GBP /61.0, System proposal: /71,00001;
Example: USD /0.81, System proposal: /0,99.
1. Review the balance sheet/profit and loss statement (RFBILA00) for �AccountsReceivable� before posting the foreign currency open item valuation. Use thereport variant VAR## that you created earlier.
a) Foreign currency valuation with update
Financial statements (RFBILA00)
Menu path for report:
Information Systems→ Accounting→ Financial Accounting→ GeneralLedger→ Balance Sheet
Select a variant:
Goto→ Variants→ Get
Enter VAR##.
Choose Execute to select the variant.
Execute the report.
Once you have checked the report, return to the Balance Sheet/P+LStatement screen.
2. In another session, execute the foreign currency valuation program first intest mode in order to see what the valuation difference is on the last day ofthe current period. Run the program for your company code AC##, valuationmethod DEMO, and customer T-F00A00.
Continued on next page
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Caution: Be sure to specify your company code.
a) Foreign currency valuation (test run)
Menu path to create a new session:
System→ Create Session
Menu path for valuation of open items in foreign currency:
Accounting→ Financial Accounting→ Customers→ Periodic Processing→ Closing→ Valuate→ Valuation of Open Items in Foreign Currency
Enter the following data:
Company Code: AC##
Evaluation Key Date: Last day of the current period
Valuation Method:DEMO
Open Items tab page:
Valuate customer open items: Select
Customer: T-F00A00
Execute the program.
Check the results.
Choose Postings to display the proposed postings.
Return to the selection criteria for the foreign currency valuation.
Continued on next page
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AC205 Lesson: Foreign Currency Valuation
3. Execute the foreign currency valuation program in an update run in order topost your valuation difference. Run the program for your company code AC##,valuation method DEMO, and customer T-F00A00. To make this a productionrun with update, select Bal. Sheet Preparation Valuatn.
a) Foreign currency valuation (update run)
Menu path for valuation of open items in foreign currency:
Accounting→ Financial Accounting→ Customers→ Periodic Processing→ Closing→ Valuate→ Valuation of Open Items in Foreign Currency
Enter the following data:
Company Code: AC##
Evaluation Key Date: Last day of the current period
Valuation Method: DEMO
Tab page: Postings
Bal. Sheet Preparation Valuatn: X
Creating Postings: X
Document Date Current date
Posting Date Last day of the currentperiod
Open Items tab page:
Valuate customer open items: Select
Customer: T-F00A00
Execute the program.
Return to the main menu.
Continued on next page
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Unit 4: Receivables & Payables AC205
4. Display the valuation difference that has been recorded to your foreign currencyopen item (currency GBP or USD).
Hint: If necessary, change the layout of the line item display so that youcan see the document currency.
a) Valuation difference
Menu path to display customer open items:
Accounting→ Financial Accounting→ Customers→ Account→Display/Change Line Items
Enter the following data:
Customer Account: T-F00A00
Company Code: AC##
Execute.
Menu path to change the layout (display variant):
Settings→ Display Variant→ Current
Select the document currency from the list on the right and accept thesettings. You then return to the line item display.
Double-click the open item with currency GBP or USD.
Choose More Data.
Note the Valuation Diff. field.
Return to your first session.
5. Return to your original session to recreate the financial statements. On thebalance sheet, the foreign currency revaluation has been posted to the receivablesadjustment account, reducing the total receivables. The difference between thisvalue and the original value is reflected in the P&L statement in the �Expensefrom currency revaluation� account.
a) Create financial statements (RFBILA00)
From the Balance Sheet (RFBILA00) screen, execute the report again.
After you have checked the report, return to the main menu.
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AC205 Lesson: Foreign Currency Valuation
Lesson Summary
You should now be able to:� Valuate foreign currency open items and balance sheet accounts
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Unit 4: Receivables & Payables AC205
Lesson:96
Value AdjustmentsLesson Duration: 75 Minutes
Lesson OverviewThis lesson introduces the types of individual value adjustment.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Explain how individual value adjustments are posted and describe flat-rateindividual value adjustments for doubtful receivables
For more information, see the Instructor Guide on SAPNet.
Business ExampleThe employees in Financial Accounting want you to show them the different optionsthat are available for posting value adjustments.
Figure 36: Value Adjustments
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AC205 Lesson: Value Adjustments
The following options are available for creating value adjustments for receivables:
1. You enter individual value adjustments (IVA) as a special G/L transaction E.2. You use the program SAPF107 �Additional valuations� to carry out a flat-rate
individual value adjustment.3. Once you have determined the amount of the value adjustment, you adjust the
flat-rate value by making a manual G/L account posting. The posting record is:Expense from flat-rate value adjustment to value adjustment.
Figure 37: Individual Value Adjustment for Doubtful Receivables
Doubtful receivables are written off as an individual value adjustment (IVA) duringyear-end closing. The special general ledger method is suitable for this proceduresince the transaction is entered in the customer account and is also posted to a specialG/L account, �Individual Value Adjustments for Receivables�.
Use the tax code that represents a tax rate of zero percent for the posting.
After you have ascertained that the debt is irrecoverable or that the receivable hasbeen paid, the individual value adjustment is reversed. If the debt is irrecoverable,the receivable is cleared from the customer account and the amount is posted to theaccount for depreciation of receivables. The sales tax is adjusted in the posting.
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Figure 38: Flat-Rate Individual Value Adjustment of Overdue Receivables
Since Release 4.5, you can carry out an automatic flat-rate individual value adjustmentfor overdue receivables: SAPF107.
In Accounts Receivable configuration, you define the debit rate percentage (bad debtexpense percentage) for a valuation adjustment key and an overdue time period indays. You must also set up the appropriate adjustment and bad debt expense accountsfor doubtful receivables in the account determination table.
You assign the valuation adjustment key to the master record of any customer accountthat you want to include in the flat-rate individual value adjustment posting.
Periodically, you carry out a valuation run to calculate the bad debt expense posting foroverdue items. The valuation run produces a valuation proposal that you can manuallychange, if desired. If you agree with the proposal, you can transfer the valuation to thegeneral ledger to generate the postings. The system then makes the adjustment postingfor the relevant key date and the reversal posting for the day after the key date.
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AC205 Lesson: Value Adjustments
99 Exercise 7: Value AdjustmentsExercise Duration: 15 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Execute a flat-rate individual value adjustment
Business ExampleTo ensure that your receivables are displayed correctly, you have to carry out anindividual value adjustment. You choose a flat-rate individual value adjustment.
Task:Test the flat-rate individual value adjustment.
1. The value adjustment uses a valuation key that has to be entered in the customermaster record. Enter the valuation key AB in the company code data for yourcustomer T-F00A00.
Accounting→ Financial Accounting→ Customers→ Master Records→Change
2. Post a 60-day overdue outgoing invoice in company code AC## for yourcustomer T-F00A00.
Accounting→ Financial Accounting→ Customers→ Document Entry→Invoice
3. Start program SAPF107 for your customer T-F00A00 with 'today' as the keydate. You can choose any ID. The key date is the end of the current month. Youchoose the flat-rate individual value adjustment for the valuation method.
Select the postings (Posting Date: End of current month, Reversal Posting Date:First of the subsequent month, Document Type: General G/L accounts).
Choose Selection Options. Choose your company code AC## and customerT-F00A00. Analyze the execution log. To do so, use the display pushbuttonand the valuation list.
Accounting→ Financial Accounting→ Customers→ Periodic Processing→Closing→ Valuate→ Further Valuations
Edit→ Parameters→ Maintain
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Planning the valuation run:
Edit→ Valuation Run→ Dispatch
Data Release pushbutton
Analyze the log:
Display pushbutton
Display the valuation list:
Return to the initial screen
Edit→ Valuation Run→ Value List
Accept the dialog box with the variant.
4. Post the valuation and search for the adjustment posting documents in the log.Make a note of the document numbers.
Valuation Run: Initial Screen.
Pushbutton: Forward
Make a note of the document numbers:
Edit→ Valuation Transfer→ Display Log
5. Display the valuation in the valuated line items.
Accounting → Financial Accounting → Customers → Account →Display/Change Line Items→ Environment→ Valuation→ Display Valuation
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AC205 Lesson: Value Adjustments
Solution 7: Value AdjustmentsTask:Test the flat-rate individual value adjustment.
1. The value adjustment uses a valuation key that has to be entered in the customermaster record. Enter the valuation key AB in the company code data for yourcustomer T-F00A00.
Accounting→ Financial Accounting→ Customers→ Master Records→Change
a) To test the flat-rate individual valuation adjustment, you will carry outspecific R/3 system activities.
The value adjustment uses a valuation key that has to be entered in thecustomer master record. Enter the valuation key AB in the company codedata for your customer T-F00A00.
Accounting→ Financial Accounting→ Customers→ Master Records→ Change
Field Name or Data Type ValuesCustomer Account T-F00A00Company Code AC##
Pushbutton Company Code Data:
Check/enter the valuation key:
Valuation key AB
Save your customer master record.
Confirm additional messages with data release.
2. Post a 60-day overdue outgoing invoice in company code AC## for yourcustomer T-F00A00.
Continued on next page
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Accounting→ Financial Accounting→ Customers→ Document Entry→Invoice
a) Post a 60-day overdue outgoing invoice in company code AC## for yourcustomer T-F00A00.
Accounting→ Financial Accounting→ Customers→ Document Entry→ Invoice
Field Name or Data Type ValuesCompany Code AC##Customer Account T-F00A00Invoice Date At least 60 days in the pastPosting Date At least 60 days in the pastAmount EUR 10000Calculate Tax Set indicatorG/L Acct 800200Amount in Doc.Curr. 10000
Post icon
3. Start program SAPF107 for your customer T-F00A00 with 'today' as the keydate. You can choose any ID. The key date is the end of the current month. Youchoose the flat-rate individual value adjustment for the valuation method.
Select the postings (Posting Date: End of current month, Reversal Posting Date:First of the subsequent month, Document Type: General G/L accounts).
Choose Selection Options. Choose your company code AC## and customerT-F00A00. Analyze the execution log. To do so, use the display pushbuttonand the valuation list.
Accounting→ Financial Accounting→ Customers→ Periodic Processing→Closing→ Valuate→ Further Valuations
Edit→ Parameters→ Maintain
Planning the valuation run:
Edit→ Valuation Run→ Dispatch
Data Release pushbutton
Analyze the log:Continued on next page
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AC205 Lesson: Value Adjustments
Display pushbutton
Display the valuation list:
Return to the initial screen
Edit→ Valuation Run→ Value List
Accept the dialog box with the variant.
a) Start program SAPF107 for your customer T-F00A00. Analyze theexecution log.
To do so, use the display pushbutton and the valuation list.
Accounting→ Financial Accounting→ Customers→ Periodic Processing→ Closing→ Valuate→ Further Valuations
Field Name or Data Type ValuesRun Date Today�s dateIdentification GR##
Choose Data Release.
Edit→ Parameters→ Maintain
Key Date End of the current monthVal. Method 3Postings XDocument Type SA
Selection Options pushbutton
Company Code AC##Customer Account T-F00A00
Execute icon
The previous screen appears. Icon:
Save. Schedule the valuation run:
Edit→ Valuation Run→ Dispatch
Continued on next page
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Start Immediat. X
Data Release pushbutton
Analyze the log:
Display Value List pushbutton:
Return to the initial screen
Edit→ Valuation Run→ Value List
Accept the dialog box with the variant.
4. Post the valuation and search for the adjustment posting documents in the log.Make a note of the document numbers.
Valuation Run: Initial Screen.
Pushbutton: Forward
Make a note of the document numbers:
Edit→ Valuation Transfer→ Display Log
a) Post the valuation and search for the adjustment posting documents inthe log.
Make a note of the document numbers.
Valuation Run: Initial Screen. D
Pushbutton: Forward
Start Immediat. X
Choose Data Release.
Make a note of the document numbers:
Edit→ Valuation Transfer→ Display Log
5. Display the valuation in the valuated line items.
Continued on next page
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AC205 Lesson: Value Adjustments
Accounting → Financial Accounting → Customers → Account →Display/Change Line Items→ Environment→ Valuation→ Display Valuation
a) Display the valuation in the valuated line items.
Accounting→ Financial Accounting→ Customers→ Account→Display/Change Line Items
Field Name or Data Type ValuesCustomer Account T-F00A00Company Code AC##
Execute pushbutton
Select the line item.
Environment→ Valuation→ Display Valuation
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Lesson Summary
You should now be able to:� Explain how individual value adjustments are posted and describe flat-rate
individual value adjustments for doubtful receivables
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AC205 Lesson: Regrouping
Lesson:107
RegroupingLesson Duration: 30 Minutes
Lesson OverviewThis lesson describes how receivables and payables are regrouped.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Regroup receivables and payables
For more information, see the Instructor Guide on SAPNet.
Business ExampleTo provide outsiders with a better overview of the company's liquidity situation, thereceivables and payables must be grouped in the balance sheet according to remaininglife.
Figure 39: Regrouping Payables
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Payables and receivables have to be listed separately in the balance sheet. Since it ispossible for some vendors to have a debit balance, these balances need to be changedto customer-like vendor accounts prior to creating the financial statements.
In some countries it is also a requirement that payables are grouped in the balancesheet according to their remaining life.
Both regroupings are carried out using a special program. At the same time, theseregroupings are removed for the first day of the next period, since regrouping are notnecessary for daily processing.
On the slide, you can see that the receivables with long remaining terms have to bereposted to different accounts to facilitate the creation of the financial statements.Additionally, vendors with a debit balance are regrouped. An adjustment account isused as the offsetting account here as well, since adjustments cannot be posted directlyto a reconciliation account.
Hint: The foreign currency valuation as well as the regrouping can becompleted in different ways to meet various legal requirements. The resultsare then posted to various accounts that are used by different financialstatement versions.
Hint: This program is also used if the reconciliation account for a vendorwas changed during the year.
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Figure 40: Regrouping Receivables and Payables (SAPF101)
Before you can create financial statements, you have to group your receivables andpayables according to remaining life so that they are correctly displayed in thefinancial statements. To do this, you have to make adjustment postings.
You can use repost SAPF101 to regroup and sort the receivables and payables; it hasthe following functions:
� It sorts receivables and payables according to remaining life and makes thetransfer postings required.
� It makes the required adjustment postings (for example, for changedreconciliation accounts).
� You can use report SAPF101 to determine where transfer postings are required.When you define the sort method in Customizing, you can �select� the caseswhere receivables and payables should be regrouped.
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Figure 41: Regrouping Customers with Credit Balances or Vendors with DebitBalances (SAP101)
The balance of an account determines whether the system displays it as a receivable orpayable.
Receivables and payables are displayed separately according to remaining life.
In order to have the system generate transfer postings when you start report SAPF101,you have to make the relevant selections for the sort methods used in Customizing.
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AC205 Lesson: Regrouping
Figure 42: Balancing for Affiliated Companies (SAPF101)
Scenario:Your company code has receivables from and payables to a business partnerthat:
� Is a customer as well as a vendor� Is an affiliated company (for example, another company code in your group)
Non-SAP system:
� In the general control data in the customer and vendor master data, define thesame company ID in the �Trading Partner� field.
� We recommend that you define an alternative reconciliation account in themaster data (receivables from, payables to affiliated companies).
In Customizing, you should assign the adjustment accounts based on these specialreconciliation accounts.
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Figure 43: Changed Reconciliation Account (SAPF101)
You can change the reconciliation account in the customer/vendor master recordduring a fiscal year.
The report for performing this change displays all the receivables at the balance sheetkey date using the new reconciliation account. The indicator concerned is in reportSAPF101 on the Other tab page.
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AC205 Lesson: Regrouping
113 Exercise 8: RegroupingExercise Duration: 10 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Regroup receivables
Business ExampleTo ensure that receivables are displayed correctly in the financial statements, you runthe regrouping program to split receivables according to remaining life.
Task:Regroup receivables with a maturity date greater than one year in the future.
1. Review the balance sheet/profit and loss statement (RFBILA00) for �AccountsReceivable� before regrouping. All receivables are currently shown as short-term(due within one year). Use the report variant VAR## that you created earlier.
2. In another session, display the open item for your customer T-F00A00 incompany code AC## that is due in two years . In the line item display, choosethe Terms of Payment display variant.
3. Process in production the program to regroup receivables and payables for yourcustomer T-F00A00 in your company code AC##. Enter the last day of theperiod as the key date for the financial statements, and use the standard SAPsort method.
The program then creates a batch input session with the regrouping postings.On the report selection screen, change the batch input session name toREGROUP## to make your session easier to identify.
Caution: Be sure to specify your company code.
Continued on next page
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4. Process your batch input session REGROUP## (errors only) to generate theposting to the General Ledger. Processing is complete when you receive themessage 'Batch input processing completed'.
Hint: If you forgot to change the name of your batch input session,the default name is the program name, SAPF101. To identify YOURsession, look for your user ID in the Created column.
5. Return to your original session to recreate the financial statements. Restrict thereporting period to the end of the current period. On the balance sheet, theAccounts Receivable Due In One Year item has been reduced by the creditposting to the adjustment account. The debit from this posting can be seen in the'Accounts Receivable Not Due Within One Year' section of the balance sheet.
6. (Optional) Now run the balance sheet/profit and loss statement for the nextperiod. Since the adjustment posting is automatically reversed on the key date+ 1, the balance sheet is returned to its original position when we run it forthe next period.
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AC205 Lesson: Regrouping
Solution 8: RegroupingTask:Regroup receivables with a maturity date greater than one year in the future.
1. Review the balance sheet/profit and loss statement (RFBILA00) for �AccountsReceivable� before regrouping. All receivables are currently shown as short-term(due within one year). Use the report variant VAR## that you created earlier.
a) Regroup receivables with a remaining term greater than one year in thefuture.
Call financial statement
Menu path for report:
Information Systems→ Accounting→ Financial Accounting→ GeneralLedger→ Balance Sheet. Choose the Variant: Goto→ Variants→ Get.
Enter VAR##.
Choose Execute to select the variant.
Execute the report.
After you have checked the report, return to the Balance Sheet/P+LStatement screen.
Continued on next page
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2. In another session, display the open item for your customer T-F00A00 incompany code AC## that is due in two years . In the line item display, choosethe Terms of Payment display variant.
a) Display due items from customer T-F00A00
Menu path to display customer open items:
Accounting→ Financial Accounting→ Customers→ Account→Display/Change Line Items
Enter the following data:
Customer Account: T-F00A00
Company Code: AC##
Execute.
Choose Settings→ Display Variant→ Choose.
Double-click the Terms of Payment variant.
Note the document with a payment date two years in the future. Return tothe main menu.
3. Process in production the program to regroup receivables and payables for yourcustomer T-F00A00 in your company code AC##. Enter the last day of theperiod as the key date for the financial statements, and use the standard SAPsort method.
The program then creates a batch input session with the regrouping postings.On the report selection screen, change the batch input session name toREGROUP## to make your session easier to identify.
Continued on next page
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AC205 Lesson: Regrouping
Caution: Be sure to specify your company code.
a) Regroup receivables
Menu path to regroup receivables:
Accounting→ Financial Accounting→ Customers→ Periodic Processing→ Closing→ Reclassify→ Reclassify Receivables/Payables
Enter the following data:
Company Code: AC##
Balance Sheet Key Date: Last day of the current period
Sort Method: SAP
Tab page: Postings
Generate Postings: X
Batch Input Session Name: REGROUP##
Choose the Selections tab.
Enter the following data:
Account Type: D (customer)
Customer: T-F00A00
Execute the program.
From the report screen, choose Postings to view the transactions that havebeen created. Return to the report.
On the report screen, choose Messages to view the batch input sessioninformation.
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Unit 4: Receivables & Payables AC205
4. Process your batch input session REGROUP## (errors only) to generate theposting to the General Ledger. Processing is complete when you receive themessage 'Batch input processing completed'.
Hint: If you forgot to change the name of your batch input session,the default name is the program name, SAPF101. To identify YOURsession, look for your user ID in the Created column.
a) Process batch input session
Menu path for batch input session:
System→ Services→ Batch Input→ Sessions. Select your session andchoose Process.
Select Display Errors Only and choose Process.
Choose Exit to confirm the �Batch input processing completed� message.
5. Return to your original session to recreate the financial statements. Restrict thereporting period to the end of the current period. On the balance sheet, theAccounts Receivable Due In One Year item has been reduced by the creditposting to the adjustment account. The debit from this posting can be seen in the'Accounts Receivable Not Due Within One Year' section of the balance sheet.
a) Call financial statement
From the Balance Sheet/P+L Statement screen (RFBILA00), execute thereport again.
Important: Choose the current period as the �to period� for the reportingperiods in the current reporting year.
After you have checked the report, return to the Balance Sheet/P+LStatement screen.
6. (Optional) Now run the balance sheet/profit and loss statement for the nextperiod. Since the adjustment posting is automatically reversed on the key date+ 1, the balance sheet is returned to its original position when we run it forthe next period.
a) (Optional) Create the financial statements for the next period.
On the Balance Sheet/P+L Statement screen, enter the following:
Reporting Periods: Current period + 1 to Current period + 1
Execute the report again.
After you have checked the results, return to the main menu.
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AC205 Lesson: Regrouping
Lesson Summary
You should now be able to:� Regroup receivables and payables
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Unit Summary AC205
Unit SummaryYou should now be able to:� Create balance confirmations� Valuate foreign currency open items and balance sheet accounts� Explain how individual value adjustments are posted and describe flat-rate
individual value adjustments for doubtful receivables� Regroup receivables and payables
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Unit 5121 Profit and Loss
This unit describes the basic processes in Controlling and Human ResourcesManagement and how these affect General Ledger Accounting, the focus of the unit.
Unit OverviewThis unit shows:
� The differences between cost of sales accounting and period accounting� The reconciliation postings between FI and CO� How salaries are calculated in HR, posted in FI, and displayed in year-end closing� The various accrual/deferral procedures
Unit ObjectivesAfter completing this unit, you will be able to:
� Compare cost of sales accounting and period accounting� Name the processes in Controlling that impact Financial Accounting� Explain how the reconciliation ledger is used to update financial accounting for
transactions that cross FI organizational units� Explain how salary expenses are posted to financial accounting� Describe the location of payroll data within the balance sheet� Describe the monthly procedure for calculating payroll data within the HR
module� Outline the automatic and/or manual posting of HR-relevant data� Post accruals and deferrals for period-end closing� Explain the advantage of using the accrual/deferral posting function� Describe the generic functions of the Accrual Engine
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Unit 5: Profit and Loss AC205
� State the advantages of using the Accrual Engine in comparison to normalaccrual procedures
� Activate an application component of the Accrual Engine for a company code� List the required closing activities for the Accrual Engine� Describe how the application component �Manual Accruals� works� Define subjects to be accrued as accrual objects� Describe the basic settings of the application component �Manual Accruals�� Define the posting control of an application component in the Accrual Engine� Configure the account determination of an application component in the Accrual
Engine using rules
Unit ContentsLesson: Cost of Sales Accounting.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127
Exercise 9: Cost of Sales Accounting ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133Lesson: Controlling .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .138
Exercise 10: Controlling ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141Lesson: Salary Expenses from HR... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149
Exercise 11: Salary Expenses .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153Lesson: Accrual/Deferral Postings ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156
Exercise 12: Accruals/Deferrals (Accrual/Deferral Documents, RecurringEntry Documents) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .161
Lesson: The Accrual Engine .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172Lesson: Manual Accruals ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180Lesson: Posting Control and Account Determination .. . . . . . . . . . . . . . . . . . . . . . . . .189
Exercise 13: Accrual Engine, Manual Accruals ... . . . . . . . . . . . . . . . . . . . . . . . . .195
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AC205 Lesson: Cost of Sales Accounting
Lesson:123
Cost of Sales AccountingLesson Duration: 30 Minutes
Lesson OverviewThis lesson describes cost of sales accounting and period accounting.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Compare cost of sales accounting and period accounting
For more information, see the Instructor Guide on SAPNet.
Business ExampleThe company's profit and loss statement is created using cost of sales accounting. Asa member of the project team, you are responsible for preparatory activities and mustensure that the information presented in the P&L statement is correct.
Figure 44: Period Accounting
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Unit 5: Profit and Loss AC205
The profit and loss statement can be created using two types of accounting:
� Period accounting� Cost of sales accounting
The operating result is the same regardless of the type of accounting used. The typeof accounting to be used
� Is stipulated by legal requirements or� Can be chosen by the company, where legal alternatives are offered. In this case,
the company considers business criteria (such as international comparability)when deciding which type of accounting to use.
In period accounting , the total result for a period and the total costs of this period aresummarized.
� The total result for a period is the sales revenue minus a reduction in theinventory level or plus an increase in the inventory level.
� The total costs of the period are grouped by expense type, in other words,you can just summarize the balances of similar expense accounts (such asdifferent accounts for personnel expense). This grouping shows how the costsare distributed to the various production factors.
Figure 45: Cost of Sales Accounting
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AC205 Lesson: Cost of Sales Accounting
In cost of sales accounting , the sales revenue for a period and the sales costs of theperiod are summarized.
� The sales revenue for the period is determined in the same way as in periodaccounting. Balance sheet changes are not considered.
� The sales costs of the period represent the expenses related to the sales. Theexpenses are not grouped by expense type as in period accounting. Instead, theyare grouped by function (such as production, sales, administration, researchand development).
The cost of goods manufactured is determined when the goods are issued. In periodaccounting, the posting is �GR/IR clearing account to balance sheet change�. Incost of sales accounting, the posting is �GR/IR clearing account to cost of goodsmanufactured�.
To assign the remaining costs to their origin, the SAP system requires an additionalcharacteristic: the functional area. Typical functional areas are sales and distribution,production, marketing, administration, research and development.
Figure 46: Cost of Sales Accounting and Functional Areas
The standard program for creating financial statements (RFBILA00) contains theprofit and loss statement using period accounting. This view is easy to achieve in theSAP system, as it represents a simple display of a G/L account or group of accountsfor a report line.
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Unit 5: Profit and Loss AC205
Cost of sales accounting requires the use of organizational units called functional areasto divide costs posted to the same expense account to separate report items. As youcan see from the slide, you can present the same type of expense in different sectionsof your profitability analysis. By grouping expenses by function (production, sales,administration), cost of sales accounting also defines the business transaction thateach individual expense in the company results from.
New for Release 4.6:
� Functional areas can be assigned directly to master data records, such as costcenters, internal orders, or G/L accounts.
� For objects where no functional area can be entered in the master data, youderive the functional area via a substitution rule.
Figure 47: Deriving the Functional Area
In cost of sales accounting, the coding block (that is, the list of account assignmentobjects) is extended to include a field for the functional area. This field is filled by
� Manual entries� Automatically entering the functional area using substitution rules� Automatically copying a functional area entered from the master record of the
P&L account� Automatically copying a functional area entered from the master record of the
CO object
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AC205 Lesson: Cost of Sales Accounting
The sequence above also indicates the priority of the derivation options. Manualentries have the highest priority. The system should be set, however, so that a manualentry is not normally required and the functional area is derived from the assignedCO object, the P&L account, or using substitution rules.
Figure 48: The Cost of Sales Ledger
To create the balance sheet in cost of sales accounting, the SAP system requirestransaction figures for each functional area. In the standard general ledger, however,transaction figures are maintained only for the organizational units company code andbusiness area. In this case, a cost of sales ledger must be used, in which transactionfigures are also maintained for each functional area.
A special balance sheet report can be used to access these transaction figures, and aprofit and loss statement can be created in cost of sales accounting.
If additional transaction figures are to be maintained using existing or new accountassignment fields, the Special Ledger component must be used to
� Extend the coding block� Maintain the additional transaction figures in a separate ledger. These can then be
evaluated using the Report Painter, Report Writer or Drilldown Reporting tools.
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AC205 Lesson: Cost of Sales Accounting
129 Exercise 9: Cost of Sales AccountingExercise Duration: 10 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a profit and loss statement using cost of sales accounting
Business ExampleThe reporting standards for your country require profit and loss reporting using thecost of sales accounting method. You have to create a profit and loss statement andan appropriate report using this method.
Task:Create a new session.
1. Using cost of sales accounting, create a profit and loss statement for yourcompany code AC## for the current fiscal year. To do this, use the report Profitand loss statement using cost of goods sold (German Trade Law). In the outputlist, navigate to the account Salaries and to the functional areas 0400 and 0300 tocheck that this account is in a different place in the report in each functional area.Close the session when you have finished viewing the report.
2. Create an incoming invoice for your vendor T-F00A00 with a raw materialsexpense (account 400000) to your cost center T-A20B## of EUR 10,000 (taxcode V0) with today's date as the posting date.
Execute the report again and check the result.
3. Which functional area was determined and how?
4. Close the session when you have finished viewing the report.
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Unit 5: Profit and Loss AC205
Solution 9: Cost of Sales AccountingTask:Create a new session.
1. Using cost of sales accounting, create a profit and loss statement for yourcompany code AC## for the current fiscal year. To do this, use the report Profitand loss statement using cost of goods sold (German Trade Law). In the output
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AC205 Lesson: Cost of Sales Accounting
list, navigate to the account Salaries and to the functional areas 0400 and 0300 tocheck that this account is in a different place in the report in each functional area.Close the session when you have finished viewing the report.
a) Profit and loss statement - cost of sales accounting method (GermanTrade Law)
Menu path to create a new session:
System→ Create Session
Menu path for the report:
Accounting→ Financial Accounting→ General Ledger→ InformationSystem→ General Ledger Reports→ Balance Sheet/Profit and LossStatement/Cash Flow→ General→ Actual/Actual Comparisons→ Profitand Loss Statement Using Cost of Goods Sold (German Trade Law).
Enter the following data:
Company Code: AC##
Fiscal Year: Current year
Execute the report.
Choose G/LA Account in the navigation area of the report.
Choose Selection of any characteristic value (magnifying glass to the rightof 'G/L Account') and scroll down to the Salaries - base wages account.
Double-click to select this account.
Click Functional Area in the navigation area of the report.
If functional area 0400 is not displayed, choose Next Char. Value (downarrow to the right of Functional Area) until you reach this functionalarea. Note that the salaries costs are displayed in the report line GeneralAdministration Costs.
In the functional area, scroll up or down until you reach 0300. Notethat the salaries costs for this functional area are displayed in the reportitem Sales Costs.
2. Create an incoming invoice for your vendor T-F00A00 with a raw materialsexpense (account 400000) to your cost center T-A20B## of EUR 10,000 (taxcode V0) with today's date as the posting date.
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Unit 5: Profit and Loss AC205
Execute the report again and check the result.
a) Use the same menu path for the report that you used in task 1 and enterthe same selection criteria.
Choose G/LA Account in the 'Navigation' area of the report.
Scroll down the selection list until you find the account raw materialsconsumption 1.
Click Functional Area in the navigation area of the report.
3. Which functional area was determined and how?
a) The functional area 0300 Sales was determined.
When you select the individual items for this balance and get to thedocument, choose the expense item. Click on the cost center and check thefunctional area 0300 that was derived from the cost center.
4. Close the session when you have finished viewing the report.
a) After you have checked the report, select System→ End Session.
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AC205 Lesson: Cost of Sales Accounting
Lesson Summary
You should now be able to:� Compare cost of sales accounting and period accounting
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Unit 5: Profit and Loss AC205
Lesson:134
ControllingLesson Duration: 30 Minutes
Lesson OverviewThis lesson introduces the processes in Controlling and explains how they effectFinancial Accounting.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Name the processes in Controlling that impact Financial Accounting� Explain how the reconciliation ledger is used to update financial accounting for
transactions that cross FI organizational units
For more information, see the Instructor Guide on SAPNet.
Business ExampleThe employees in Financial Accounting want you to show them how the department isintegrated in Controlling. The reconciliation ledger is of particular interest here, sincebusiness transactions in CO can span across several organizational units in FI.
Figure 49: Reconciliation Ledger
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AC205 Lesson: Controlling
In some cases, the general ledger should be updated for the postings described on theprevious pages as �internal to CO�. This is a requirement when the CO cost flowscross FI organizational units (company codes, business areas, and functional areas).
The reconciliation ledger stores all cost flows within controlling in a summarizedform. In the SAP System, the reconciliation ledger represents cost element accounting.
The reconciliation ledger compares the CO view of data to the FI view and enablesyou to automatically reconcile controlling with financial accounting.
Figure 50: Reconciliation Posting: Account Determination
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AC205 Lesson: Controlling
137 Exercise 10: ControllingExercise Duration: 5 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Settle an internal order to generate a cross-business area cost flow within
Controlling� Execute a reconciliation posting from CO to FI
Business ExampleYour company produces financial statements at business area level. In the Controllingapplication, internal orders are used to collect costs for internal services. When theservices are charged to the receiver (through the settlement function), these costsmay flow across business areas. Once closing is complete in CO, you execute areconciliation posting to transfer these cost flows to FI.
Task 1:Carry out the following task.
1. Check the financial statements (RFBILA00) to see the costs posted to yourinternal order (account 404000, Spare parts). Use the report variant VAR## youcreated earlier. The cost is currently charged to business area 1000.
Task 2:Settlement the order T-ACREP## and analyze the results.
1. In a second session, execute the report Orders: Actual/Plan/Variance to seethe costs for your order T-ACREP##.
2. Settle your order T-ACREP##, which belongs to business area 1000(Mechanical Engineering), to your Research and Development cost center, whichbelongs to business area 9900 (Corporate Services).
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Unit 5: Profit and Loss AC205
Task 3:Carry out the following task.
1. (Optional) Return to the first session and recreate the financial statements(RFBILA00) to see the costs for account 404000, Spare Parts. You will seethat the costs are still shown in FI under business area 1000 because the ordersettlement was internal to CO and did not generate an FI posting.
Task 4:Carry out the following task.
1. Execute the reconciliation posting for your company code AC## in the currentperiod. Run the program as an update run for all reconciliation postings andcreate a detail list of the transactions generated.
Task 5:Carry out the following task.
1. Return to the first session and recreate the financial statements (RFBILA00) tosee the costs for account 404000, Spare Parts. You will see that the costs arenow shown in FI under business area 9900, as a result of the reconciliationposting to FI.
Task 6:Carry out the following task.
1. Within cost center accounting, cross-cost center reposting was carried out forprimary costs because an employee moved from one cost center to anotherduring the period. Both cost centers belong to different business areas. InFinancial Accounting, you want to create business area-related profit and lossstatements that include all the relevant costs. Which R/3 function enables you toretransfer internal cost flows to Financial Accounting?
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AC205 Lesson: Controlling
Solution 10: ControllingTask 1:Carry out the following task.
1. Check the financial statements (RFBILA00) to see the costs posted to yourinternal order (account 404000, Spare parts). Use the report variant VAR## youcreated earlier. The cost is currently charged to business area 1000.
a) Call financial statement
Menu path for the report:
Information Systems→ Accounting→ Financial Accounting→ GeneralLedger→ Balance Sheet
Select a variant:
Goto→ Variants→ Get
Enter VAR##.
Choose Execute to select the variant.
Execute the report.
Once you have checked the report, return to the Balance Sheet/P+LStatement screen.
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Unit 5: Profit and Loss AC205
Task 2:Settlement the order T-ACREP## and analyze the results.
1. In a second session, execute the report Orders: Actual/Plan/Variance to seethe costs for your order T-ACREP##.
a) Settle order T-ACREP##
Execute the Order: Actual/Plan/Variance report
Menu path to create a new session:
System→ Create Session
Menu path for the report:
Accounting→ Controlling→ Internal Orders→ Information System→ Reports for Internal Orders→ Plan/Actual Comparisons→ Orders:Actual/Plan/Variance
Enter the following data:
Controlling Area: 1000
Fiscal Year: Current year
From Period: Current period
To Period: Current period
Plan Version: 0
Or Value(s): T-ACREP##
Execute the report.
Return to the main menu.
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AC205 Lesson: Controlling
2. Settle your order T-ACREP##, which belongs to business area 1000(Mechanical Engineering), to your Research and Development cost center, whichbelongs to business area 9900 (Corporate Services).
a) Settle order T-ACREP##
Menu path for settlement:
Accounting→ Controlling→ Internal Orders→ Period-End Closing→Single Functions→ Settlement→ Individual Processing
Enter the following data:
Order: T-ACREP##
Settlement Period: Current period
Posting Period: Current period
Fiscal year: Current year
Processing Type: Automatic
Test Run: Deselect
Execute the settlement.
Click on Detail Lists to view the settlement receiver.
Place the cursor on your order T-ACREP##.
Choose Accounting Documents to check that no FI document exists.
Return to the main menu.
Task 3:Carry out the following task.
1. (Optional) Return to the first session and recreate the financial statements(RFBILA00) to see the costs for account 404000, Spare Parts. You will seethat the costs are still shown in FI under business area 1000 because the ordersettlement was internal to CO and did not generate an FI posting.
a) (Optional) Recreate financial statements
From the Balance Sheet/P+L Statement screen, execute the report again.
After you have checked the report, return to the Balance Sheet/P+LStatement screen.
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Unit 5: Profit and Loss AC205
Task 4:Carry out the following task.
1. Execute the reconciliation posting for your company code AC## in the currentperiod. Run the program as an update run for all reconciliation postings andcreate a detail list of the transactions generated.
a) Make a reconciliation posting
Menu path for reconciliation postings:
Accounting→ Controlling→ Cost Element Accounting→ Actual Postings→ Reconciliation with FI
Enter the following data:
Choose �Company code� and enter AC##.
Period: Current period
Fiscal year: Current year
Execute all Reconcil. Postings: Select
Test Run: Deselect
Detail Lists: Set indicator
Execute the program.
Return to the main menu.
Task 5:Carry out the following task.
1. Return to the first session and recreate the financial statements (RFBILA00) tosee the costs for account 404000, Spare Parts. You will see that the costs arenow shown in FI under business area 9900, as a result of the reconciliationposting to FI.
a) Create financial statements
From the Balance Sheet/P+L Statement screen, execute the report again.
After you have checked the report, return to the Balance Sheet/P+LStatement screen.
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AC205 Lesson: Controlling
Task 6:Carry out the following task.
1. Within cost center accounting, cross-cost center reposting was carried out forprimary costs because an employee moved from one cost center to anotherduring the period. Both cost centers belong to different business areas. InFinancial Accounting, you want to create business area-related profit and lossstatements that include all the relevant costs. Which R/3 function enables you toretransfer internal cost flows to Financial Accounting?
a) The reconciliation ledger in SAP R/3 enables you to reconcile internalcross-organizational cost flows to Financial Accounting.
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Unit 5: Profit and Loss AC205
Lesson Summary
You should now be able to:� Name the processes in Controlling that impact Financial Accounting� Explain how the reconciliation ledger is used to update financial accounting for
transactions that cross FI organizational units
148 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Lesson: Salary Expenses from HR
Lesson:145
Salary Expenses from HRLesson Duration: 15 Minutes
Lesson OverviewThis lesson explains how salaries are calculated and posted, and how they are shownon the balance sheet.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Explain how salary expenses are posted to financial accounting� Describe the location of payroll data within the balance sheet� Describe the monthly procedure for calculating payroll data within the HR
module� Outline the automatic and/or manual posting of HR-relevant data
For more information, see the Instructor Guide on SAPNet.
Business ExampleThe employees in Financial Accounting want you to show them how their departmentis integrated in HR. They require a large amount of information when salaries areposted from HR.
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Unit 5: Profit and Loss AC205
Figure 51: Payroll Procedure and Subsequent Activities
Figure 52: Posting Payroll Results in Accounting
Payroll results are posted to Accounting via the FI/CO interface.
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AC205 Lesson: Salary Expenses from HR
The FI documents are linked to the original HR documents via the HR documentnumber. This can be defined in the document header of the FI document. Bydouble-clicking the HR document, you can display detailed information, including thewage types determined by the payroll run. This allows you to trace all FI postingsto Accounting back to Payroll.
Figure 53: Additional Subsequent Activities
� Payment transactions:
The data medium exchange program (DME) saves the employee payroll data toa disk that is sent to the respective bank. The contents of the disk (wages andsalary payments, employment tax, and social insurance contributions) are postedmanually to bank clearing accounts using a DME list.
� Payments to HR creditors:
In some countries (for example, the USA and Canada), payments to third partiesare made using the third-party remittance function. In this case, payables aretransferred to HR creditor accounts and paid automatically using the paymentprogram.
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AC205 Lesson: Salary Expenses from HR
149 Exercise 11: Salary ExpensesExercise Duration: 5 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Describe the effect of payroll processing on FI
Business ExampleYou need to review the integration between payroll and FI.
Task:Carry out the following task.
1. When the salary expense data was transferred to financial accounting the periodwas already closed. How does the system react?
2. Where in the FI document do you find the link to the HR document?
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Unit 5: Profit and Loss AC205
Solution 11: Salary ExpensesTask:Carry out the following task.
1. When the salary expense data was transferred to financial accounting the periodwas already closed. How does the system react?
a) When the salary expense data was transferred to financial accounting theperiod was already closed. How does the system react?
An error message is displayed for the HR document. The documenthas to be recreated in HR.
2. Where in the FI document do you find the link to the HR document?
a) Where in the FI document do you find the link to the HR document?
In the document header of the FI document you will find the logicalsystem in which the original HR document exists, as well as a referencekey to identify the HR document, the HR posting run number andthe reference activity HRPAY.
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AC205 Lesson: Salary Expenses from HR
Lesson Summary
You should now be able to:� Explain how salary expenses are posted to financial accounting� Describe the location of payroll data within the balance sheet� Describe the monthly procedure for calculating payroll data within the HR
module� Outline the automatic and/or manual posting of HR-relevant data
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Unit 5: Profit and Loss AC205
Lesson:152
Accrual/Deferral PostingsLesson Duration: 15 Minutes
Lesson OverviewThis lesson describes the various types of accrual and deferral postings.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Post accruals and deferrals for period-end closing� Explain the advantage of using the accrual/deferral posting function
For more information, see the Instructor Guide on SAPNet.
Business ExampleAs a member of the project team, your task is to ensure that the employees in thedepartment are familiar with the procedure for creating accrual/deferral postings.
Figure 54: Accrual/Deferral Postings
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AC205 Lesson: Accrual/Deferral Postings
To ensure that expenses are posted to the correct period, you can enter accrual/deferraldocuments, and then reverse them in a later step (collective processing). The reversaldate (indicator) in that document is then regarded as the posting date of the reversaldocument. If you need to enter accruals/deferrals often, you can use the recurringentry program.
Figure 55: Accrual/Deferral Posting: Warehouse Lease
The monthly rent is 500:
� Prepayment of rent on 12/01
Posting: Occupancy costs to bank 1500
� Accrual/deferral posting on 12/31
Accrued income on occupancy costs 1000
� Reversal posting on 01/01
Occupancy costs to accrued income 1000
When you enter the accrual/deferral document, you have to enter a reversal reason.The reason is noted in the document that is reversed. You can then see from this fieldwhy a particular document was reversed.
The reversal reason also defines whether:
� The reversal document can have a different posting date� The reversal document can be comprised of negative postings
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Unit 5: Profit and Loss AC205
Figure 56: Accrual/Deferral of Expenses and Revenue
Expenses and revenue posted in one period can often originate in other periods. Forthis reason, expenses and revenue have to be accrued/deferred, in other words, theyare distributed to the periods from which they resulted.
A distinction is made between
� Accruals
Triggering situation: Economically, expenses/revenue belong in the currentperiod and are only posted to a subsequent period once an invoice has beenreceived or issued.
� Deferrals
Triggering situation: Expenses/revenue were posted to the current period onreceipt/issue of an invoice but economically they belong, at least partially, ina future period.
Accruals and deferrals can be managed differently in FI.
The diagram shows an example of an invoice that is received in the 7th period and thatis also posted there. Since this invoice was created for goods that are used throughoutthe year, the expenses of 120 have to be distributed equally across all periods. Forthe first six periods, therefore, six accruals to the amount of 10 have to created. Anamount of 50 has to be distributed to the last five months after receipt of the invoice.
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Figure 57: Accruals
Accruals You have to create accruals when an expense or revenue is to be received inthe future, but is incurred or earned partly or completely in the current period. Therecurring entry program is suitable for posting accruals, since the exact same amount(here: 10) is posted to the same accounts in each period.
In each period, the posting record is �Expense to Other Payables (or Provisions). �
It is posted to the account
� Other payables: If you are certain about the reason and amount of the accrual� Provisions: If you are uncertain about the amount and/or reason of the accrual
and can only estimate it
In each period in which you carry out accruals, the credit balance on the account�Other Payables (or Provisions)� increases.
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157 Exercise 12: Accruals/Deferrals(Accrual/Deferral Documents, RecurringEntry Documents)Exercise Duration: 10 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Post accruals with accrual documents and recurring entry documents
Business ExampleYour company code AC## (## = your group number) made a quarterly rent repaymenton December 1 of the current year. Accrue the expense to the correct period usingaccrual/deferral documents and recurring entry documents.
Task 1:Accruals/deferrals with accrual/deferral documents
1. Create an expense account posting entry
Enter the rental costs for December, January, and February (account 470000,cost center T-A20A##) to the amount of EUR 1500 on the posting date 12/01 ofthe current year (tax code: 0% domestic input tax V0).
2. Enter payment (optional)
Enter the payment of this invoice using a manual outgoing payment from yourbank account at Deutsche Bank (113100)
3. Check profit and loss statement
Call up the profit and loss statement for your company code and check thesituation in the profit and loss statement for the expense account.
4. Enter accrual/deferral document
Enter an accrual/deferral document on 12/31 of the current year. Enter 01/01 ofthe subsequent year as the reversal date and the accrual/deferral as the reversalreason. Use 'G/L account document' (SA) as the document type and the accruedincome (98000) as the offsetting account. Enter a text for the item.
5. Check financial statements
Continued on next page
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Check the accrued income and the profit and loss statement once the expensehas been accrued.
6. Reverse the accrual/deferral document
Reverse the accrual/deferral document on 01/01 of the subsequent year.
Task 2:Accrual/deferral with recurring entry documents (optional)
1. Create an expense account posting entry
Establish the same initial situation again: Enter the rental costs for December,January, and February (account 470000, cost center T-A20A##) to the amountof EUR 1500 on the posting date 12/01 of the current year (tax code: No taxprocedure V0).
2. Enter payment (optional)
Enter the payment of this invoice using a manual outgoing payment from yourbank account at Deutsche Bank (113100)
3. Check profit and loss statement
Call up the profit and loss statement for your company code and check thesituation in the profit and loss statement for the expense account.
4. Repost the expense to the accruals and deferrals
Post the expense on 12/01 of the current year to the accrued income (98000).Enter 0% domestic input tax (V0) as the tax code each time and a text in theselection line. In the expense item, enter the cost center T-A20A##.
5. Create recurring entry original document
Create a recurring entry original document on the basis of which the monthlyexpense postings can be made on 01 of the three subsequent months. Usedocument type SA. Make a note of the document number.
6. Start the recurring entry program
Start the recurring entry program on 12/01 of the current year for your companycode. Use your group number as the name for your batch input session. Processthe batch input session to create an update document from the recurring entryoriginal document.
7. Check financial statements
Continued on next page
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Check the accrued income and the profit and loss statement once the expense hasbeen settled using the recurring entry program. If necessary, use the drilldownreport Actual/Actual Comparison for Year to see the line items in the accounts.
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Solution 12: Accruals/Deferrals(Accrual/Deferral Documents, RecurringEntry Documents)Task 1:Accruals/deferrals with accrual/deferral documents
1. Create an expense account posting entry
Enter the rental costs for December, January, and February (account 470000,cost center T-A20A##) to the amount of EUR 1500 on the posting date 12/01 ofthe current year (tax code: 0% domestic input tax V0).
a) Financial Accounting→ Vendors→ Document Entry→ Invoice
Field Name or Data Type ValuesVendor T-F00A00Document Date 01.12. current yearPosting Date 01.12. current yearAmount in Doc.Curr. 1500,--Calculate Tax Set indicatorTax Code V0 (0% domestic input tax)G/L Acct 470000Amount in Doc.Curr. 1500,--Cost Center T-A20A##
SAVE
2. Enter payment (optional)
Continued on next page
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Enter the payment of this invoice using a manual outgoing payment from yourbank account at Deutsche Bank (113100)
a) Financial Accounting→ Vendors→ Document Entry→ OutgoingPayment→ Post
Field Name or Data Type ValuesDocument Date 01.12. current yearPosting Date 01.12. current yearAccount 113100Amount in Doc.Curr. 1500,--Account T-F00A00Process Open Items Choose
Choose invoice
SAVE
3. Check profit and loss statement
Call up the profit and loss statement for your company code and check thesituation in the profit and loss statement for the expense account.
a) Check profit and loss statement
4. Enter accrual/deferral document
Continued on next page
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Enter an accrual/deferral document on 12/31 of the current year. Enter 01/01 ofthe subsequent year as the reversal date and the accrual/deferral as the reversalreason. Use 'G/L account document' (SA) as the document type and the accruedincome (98000) as the offsetting account. Enter a text for the item.
a) Financial Accounting→ General Ledger→ Periodic Processing→Closing→ Valuate→ Enter Accrual/Deferral Document
Field Name or Data Type ValuesDocument Date 31.12. current yearDocument Type SA (G/L account document)Posting Date 31.12. current yearReversal Reason 05 (Accrual)Amount in Doc.Curr. 01.01. subsequent yearPstKy 40Account 98000 (Accrued income)
RETURN
Field Name or Data Type ValuesAmount in Doc.Curr. 1000,--Tax Code V0 (0% domestic input tax)Text Any textPstKy 50Account 470000 (rent costs)
RETURN
Field Name or Data Type ValuesAmount in Doc.Curr. 1000,--Cost Center T-A20A##
SAVE
5. Check financial statements
Continued on next page
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Check the accrued income and the profit and loss statement once the expensehas been accrued.
a) Check financial statements
6. Reverse the accrual/deferral document
Reverse the accrual/deferral document on 01/01 of the subsequent year.
a) Financial Accounting→ General Ledger→ Periodic Processing→Closing→ Valuate→ Reverse Accrual/Deferral Document
Field Name or Data Type ValuesCompany Code AC##Reverse Posting Date 01.01. subsequent yearTest Run Deselect
Execute
Task 2:Accrual/deferral with recurring entry documents (optional)
1. Create an expense account posting entry
Establish the same initial situation again: Enter the rental costs for December,January, and February (account 470000, cost center T-A20A##) to the amountof EUR 1500 on the posting date 12/01 of the current year (tax code: No taxprocedure V0).
a) Create an expense posting entry, see Solution above to 1-1
2. Enter payment (optional)
Enter the payment of this invoice using a manual outgoing payment from yourbank account at Deutsche Bank (113100)
a) Enter payment (optional), see Solution above to 1-2
3. Check profit and loss statement
Call up the profit and loss statement for your company code and check thesituation in the profit and loss statement for the expense account.
a) Check profit and loss statement
4. Repost the expense to the accruals and deferrals
Continued on next page
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Post the expense on 12/01 of the current year to the accrued income (98000).Enter 0% domestic input tax (V0) as the tax code each time and a text in theselection line. In the expense item, enter the cost center T-A20A##.
a) Repost the expense to the accruals and deferrals
Financial Accounting→ General Ledger→ Posting→ Enter G/L AccountDocument
Field Name or Data Type ValuesCompany Code AC##Document Date 01.12. current yearPosting Date 01.12. current yearAccount 05 (Accrual)D/C 98000Amount in Doc.Curr. 1500,--Tax Code V0Text Any textAccount 470000D/C CreditAmount in Doc.Curr. 1500,--Tax Code V0Cost Center T-A20A##
5. Create recurring entry original document
Continued on next page
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Create a recurring entry original document on the basis of which the monthlyexpense postings can be made on 01 of the three subsequent months. Usedocument type SA. Make a note of the document number.
a) Create recurring entry original document
Financial Accounting→ General Ledger→ Posting→ ReferenceDocuments→ Recurring Document
Field Name or Data Type ValuesCompany Code AC##First Run On 01.12. current yearLast Run On 01.02. subsequent yearInterval in Months 1Run Date 1Document Type SA (G/L account document)Currency/Rate EURPstKy 40Account 470000
RETURN
Field Name or Data Type ValuesAmount in Doc.Curr. 500,--Tax Code V0Cost Center T-A20A##PstKy 50Account 98000Text Any text
Save
Make a note of the document number.
6. Start the recurring entry program
Continued on next page
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Start the recurring entry program on 12/01 of the current year for your companycode. Use your group number as the name for your batch input session. Processthe batch input session to create an update document from the recurring entryoriginal document.
a) Start the recurring entry program
Financial Accounting→ General Ledger→ Periodic Processing→Recurring Entries→ Execute
Field Name or Data Type ValuesCompany Code AC##Settlement Period 01.12. current yearBatch Input Session Name ##
Execute
System→ Services→ Batch Input→ Sessions
Select your session by clicking the field infront of the session name.
Process. Select �Display Errors Only� and choose Process.
7. Check financial statements
Check the accrued income and the profit and loss statement once the expense hasbeen settled using the recurring entry program. If necessary, use the drilldownreport Actual/Actual Comparison for Year to see the line items in the accounts.
a) Check financial statements
Financial Accounting→ General Ledger→ Information System→General Ledger Reports→ Balance Sheet/Profit and Loss Statement/CashFlow → General →Actual/Actual Comparisons → Actual/ActualComparison for Year
Field Name or Data Type ValuesCompany Code AC##
EXECUTE
Select the relevant account.
Goto - Line Items
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Lesson Summary
You should now be able to:� Post accruals and deferrals for period-end closing� Explain the advantage of using the accrual/deferral posting function
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Lesson:168
The Accrual EngineLesson Duration: 15 Minutes
Lesson OverviewThis lesson describes how the Accrual Engine works.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Describe the generic functions of the Accrual Engine� State the advantages of using the Accrual Engine in comparison to normal
accrual procedures� Activate an application component of the Accrual Engine for a company code� List the required closing activities for the Accrual Engine
For more information, see the Instructor Guide on SAPNet.
Business ExampleYou will learn about how the Accrual Engine works.
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AC205 Lesson: The Accrual Engine
Figure 58: Application Components of the Accrual Engine
The Accrual Engine is a generic tool for calculating and creating accrual postings.
As input it receives basic data that describes the subject matter to be accrued, forexample, data for a rental agreement. The Accrual Engine uses this data to calculatethe accruals and creates the related periodic postings.
Just like the motor of a machine, the Accrual Engine itself is not visible for the enduser. Instead, the user works with the application components of the Accrual Engine.The subjects to be accrued are entered there and are forwarded to the Accrual Engine.
SAP develops and delivers the application components of the Accrual Engine. Theycannot be developed by customers. The application component always refers to aspecial accruals scenario and provides an optimized user interface for this scenario.
The Accrual Engine is used amongst other things for:
� Manual Accruals in Financial Accounting� Provisions for Awards� Lease Accounting� Intellectual Property Management
Additional application components will be delivered in future extensions.
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Figure 59: Interaction with the Accrual Engine
The diagram shows the interaction between the Accrual Engine and the applicationcomponent.
The Accrual Engine stores two types of data:
� Basic Data
The basic data consists of a description of the subject to be accrued (accrualobject) and all other information required for carrying out the accruals. Basicdata is time-dependent.
� Accrual Engine Documents and Totals Records
All accruals postings create documents in the Accrual Engine (Accrual Enginedocuments) and update fiscal year-specific totals records. The Accrual Enginedocuments automatically create corresponding documents in FI. Various levelsof summarization are possible. If errors occur during the FI update, you cantrigger this again manually.
Usually, two main processes are triggered from the application component:
� Create/change basic data Depending on the Customizing settings, an openingposting may be made immediately.
� Periodic start of the accrual run or reversal of an accrual run
An Info system gives you direct access to totals records and documents in the AccrualEngine. You can also carry out accruals simulations.
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Figure 60: Advantages of the Accrual Engine
In comparison to standard methods of carrying out accruals, the Accrual Engine hasseveral advantages.
� The Accrual Engine calculates the accrual amounts automatically. You donot have to calculate the amounts manually and enter them as fixed values inrecurring entry documents.
� You can make periodic accruals postings automatically as performance-optimizedmass data processing using an accrual run. The delta amount of the cumulativeaccruals minus the accruals already carried out is posted. If the amount to beaccrued changes, the accruals amounts are adjusted automatically.
� You can simulate planned future accruals. Depending on how the applicationcomponent is configured you can also carry out complete simulation scenarios.
� The Accrual Engine supports parallel accounting with either different accountareas or parallel ledgers.
� An extensive Information System provides information about planned accrualsand accruals that have already been carried out.
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Figure 61: Activate the application component
To activate an application component of the Accrual Engine you have to carry outthe following Customizing activities:
� The application component must be assigned to the company codes that areto use it.
� The required accounting principles must be defined if this has not already beendone.
� The application component must be assigned to the required combination ofaccounting principle and company code.
� The current fiscal year must be open for the application component.
Figure 62: Closing Activities of the Accrual Engine
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The Accrual Engine requires only a small number of closing activities of a purelytechnical nature.
� Reconciliation: Accrual Engine/General Ledger
Here, Accrual Engine documents and General Ledger documents are reconciledwith one another to check whether the transfer to the General Ledger wascomplete and without errors.
� Balance carryforward
At the end of the fiscal year you have to carry forward the balances of theaccruals objects into the next fiscal year. This has nothing to do with the balancecarryforward in the General Ledger.
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Facilitated Discussion
Discussion QuestionsUse the following questions to engage the participants in the discussion. Feel free touse your own additional questions.
What are the advantages of the Accrual Engine?
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AC205 Lesson: The Accrual Engine
Lesson Summary
You should now be able to:� Describe the generic functions of the Accrual Engine� State the advantages of using the Accrual Engine in comparison to normal
accrual procedures� Activate an application component of the Accrual Engine for a company code� List the required closing activities for the Accrual Engine
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Lesson:174
Manual AccrualsLesson Duration: 30 Minutes
Lesson OverviewThis lesson describes the application component �Manual Accruals.�
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Describe how the application component �Manual Accruals� works� Define subjects to be accrued as accrual objects� Describe the basic settings of the application component �Manual Accruals�
For more information, see the Instructor Guide on SAPNet.
Business ExampleYou have been asked to make the basic settings of the application component �ManualAccruals�.
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AC205 Lesson: Manual Accruals
Figure 63: Manual Accruals with the Accrual Engine
In the application component �Manual Accruals�, you create the basic data manuallyvia a simple user interface.
The basic data is usually subject matter to be accrued based on different contracts,such as rental agreements, insurance contracts, and so on.
Hint: There are also two function modules that you can use to import accrualobjects from a database table via a batch job. These are:
ACAC_OBJECT_CREATE_EXT to create an accrual object
ACAC_OBJECT_MODIFY_EXT to change an accrual object. If it doesnot exist yet, it is created.
A report must be written to select the data, export it, and adjust it to the structure ofthe function modules. The function modules can then be called up to load the data intothe Accrual Engine. You can also transfer legacy data this way (for more informationread the IMG documentation).
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Figure 64: Deferrals
You have to create deferrals when an expense or revenue is posted in the currentperiod, but is incurred or earned partly or completely in the future.
The slide shows an example of a deferral where an expense invoice for � 120 isreceived at the start of the year and posted in the first period. However, the invoicecovers a contractual service that is used throughout the entire year (for example,insurance). The expense must therefore be distributed over all periods of the fiscalyear equally.
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Figure 65: Posting Deferrals
Following on from the example on the previous slide, the posting for the deferralsis as follows:
The invoice for � 120 arrives in Accounts Payable in the first period and is postedthere. The posting record is:
Expense to Vendor
Using an opening posting, the entire amount is transferred from the expense accountto an account for invoice deferral items (ARAP). The posting record is:
Prepayments and Accrued Income to Expense
During period-end closing, part of the amount is posted back to the prepaymentsand accrued income account from the expense account, that is the prepayments andaccrued income items is released. Posting record:
Expense to Prepayments and Accrued Income
If the contract is terminated prematurely, the entire residual amount is posted to anexpense account. Posting record:
Expense to Prepayments and Accrued Income
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Figure 66: Accruals
You have to create accruals when an expense or revenue is to be received in thefuture, but is incurred or earned partly or completely in the current period.
The slide shows an example of an accrual where an expense invoice for � 120 isreceived at the end of the year and posted in the last period. However, the invoicerefers to a service that is used during the entire year. The expense must therefore bedistributed over all periods of the fiscal year equally.
Figure 67: Posting Accruals
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The posting record for accruals is �Expense to Other Payables (or provisions)� ineach period. It is posted to the account
� Other payables: If you are certain about the reason and amount of the accrual� Provisions: If you are uncertain about the amount and/or reason of the accrual
and can only estimate it
In each period in which you carry out accruals, the credit balance on the account�Other Payables (or Provisions)� increases.
When the invoice is finally received, it is posted as
Other payables (or provisions) to vendor The other payables are thereby convertedinto real payables.
Figure 68: Definition of the Subject Matter to be Accrued
The subject to be accrued is defined as an accrual object. You make this definitionmanually in the application component �Manual Accruals�. Accrual objects in thisapplication component are identified uniquely for each company code using an accrualobject number from a defined number range.
The accrual objects are grouped in accrual object categories for manual accruals.These summarize the subject matter of similar accrual objects. For example, insurancecontracts (accrual objects) can be assigned to the accrual object category �Insurances�.
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You can use accrual object categories
� As a navigation level to find accrual objects more easily� To assign special customer-defined parameters that describe the accrual object in
more detail
Each accrual object can have several accrual items. An accruals item describeshow a related accruals type (usually costs or revenues) is accrued using a specificaccounting principle.
Figure 69: Accrual Calculation
The accrual is calculated for each accrual item, that each, for each combinationof accrual type and accounting principle specified. In addition to the amount to beaccrued and possibly also a quantity to be accrued, the accrual item contains anaccrual method.
A function module is defined for the accrual method, and this calculates the accruals.For the �Manual Accruals� area, several function modules are delivered. However,you can also develop your own function modules for the accruals.
The function modules delivered that you can also use for manual accruals begin withACE_DS_* and are listed on the slide.
You can also define derived accruals types. These accruals amounts are calculatedfrom the accrual amounts of other accrual types and not directly. However, derivedaccrual types are not particularly relevant for manual accruals and are more importantfor other application components.
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AC205 Lesson: Manual Accruals
Facilitated Discussion
Discussion QuestionsUse the following questions to engage the participants in the discussion. Feel free touse your own additional questions.
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Lesson Summary
You should now be able to:� Describe how the application component �Manual Accruals� works� Define subjects to be accrued as accrual objects� Describe the basic settings of the application component �Manual Accruals�
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AC205 Lesson: Posting Control and Account Determination
Lesson:181
Posting Control and Account DeterminationLesson Duration: 15 Minutes
Lesson OverviewThis lesson explains how to configure the posting control and account determinationfor the Accrual Engine.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Define the posting control of an application component in the Accrual Engine� Configure the account determination of an application component in the Accrual
Engine using rules
For more information, see the Instructor Guide on SAPNet.
Business ExampleThe employees in Financial Accounting want to show you the different postingoptions available with an application component.
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Figure 70: Posting Control
The posting control is defined for each
� Company code� Accounting principle� Accrual type
You define
� How frequently accruals are carried out (for each posting period, daily, monthly,quarterly, every six months, annually)
� The level of summarization for postings before the update to FI You can makethe following settings
� No summarization: A separate line item is created for each accruals item.� Summarization at accrual object level: A line item is created for each
accrual object.� Maximal summarization: The postings are summarized to the level of
different additional account assignments.
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AC205 Lesson: Posting Control and Account Determination
Figure 71: Account Determination Task
The purpose of account determination is to
� Determine the document type� Determine the debit account (here: target account)� Determine the credit account (here: start account)
For each accrual type, you define in Customizing which postings are to be madeautomatically and, therefore, for which postings account determination is required.
� None (the accruals are calculated in the Accrual Engine, but not posted)� Only the opening posting� Only periodic postings (useful, for example, for accruals)� All (opening posting, periodic accruals, and, if the accrual object is terminated
prematurely, a closing posting)
For parallel accounting, the Accrual Engine supports
� Parallel accounts� Parallel ledgers
For parallel accounts you must configure the account determination of the AccrualEngine accordingly, that is, the accounts must be found depending on the accountingprinciple.
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For the parallel ledger solution, you have to assign a special ledger for the accountingprinciple in Customizing for parallel accounting.
Figure 72: Derivation Rules
Accounts are determined using derivation rules. These rules consist of
� Conditions under which the derivation rule is executed (optional)� Determination of fields used in the derivation rule Here you define
� Source fields (derivation rule input) All fields filled from the AccrualEngine.
� Target fields (derivation rule output) All fields that must be filled forsuccessful account determination, or user-defined parameters that you canuse for sequential derivation rules.
� The rule entries themselves that derive the input for the target fields from thecontent of the source fields.
In the case of manual accruals (application component ACAC):
You define parameters as required in the Data Dictionary structureACAC_PARAMETERS. In the standard system, this table contains one parameteronly with the name �EXAMPLE�. You can create additional parameters byfilling the corresponding fields in this DDIC structure. Instead of using thisstructure directly, however, you make an entry in the INCLUDE structureCI_ACAC_PARAMETERS.The new fields must be customer-defined fields andstart with Y or Z. Once you have activated the changed INCLUDE structure, youcan assign the new parameter to one or more accrual object categories and maintainit in the corresponding accrual object.
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Figure 73: Account Determination Rules
The derivation rules are summarized in a set of rules. Depending on how thederivation rules are defined, they are processed either in parallel or sequentially.
� Parallel derivation rules are processed sequentially and determine independentresults.
� Sequential derivation rules must be created in the correct order, because theirresults are cumulative.
Figure 74: Parallel Derivation Rules
The order in which parallel derivation rules are created and processed is irrelevant,since their results are independent of one another. Examples are:
� Derivation rules for different accrual objects that can be differentiated by meansof user-defined parameters. In the conditions, the system queries the contentof the user-defined parameters (for example, Parameter = �Rents�?) and thederivation rule is only executed if the condition is fulfilled.
� Derivation rules for different elements of the accounting document, that is, onerule for the document type, other rules for the accounts.
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Figure 75: Sequential Derivation Rules
The order in which sequential derivation rules are created and processed isimportant. Examples are:
� Derivation rules for account determinations with different levels of detail, that is,the first derivation rule provides a very basic account determination, the seconda more detailed account determination for certain transactions, and the third avery detailed account determination for other transactions.
� Use of extended account determination. Using the extended accountdetermination you can summarize combinations of source fields with a derivationrule for characteristic combinations. In a second derivation rule, accountsymbols are determined from characteristic combinations. In a third derivationrule, the accounts are derived from the account symbols.
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AC205 Lesson: Posting Control and Account Determination
187 Exercise 13: Accrual Engine, ManualAccrualsExercise Duration: 15 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Accruals using the Accrual Engine
Business ExampleYour company code AC## (## = your group number) has taken insurance which costs6000 units of your house currency each year. The insurance amount for the currentyear was paid in full in the first month of the year.
Task:Post the accrual for the insurance amount with the Accrual Engine.
1. Create an accrual object for company code AC## (## = your group number).Choose the accrual object category Z_INSURANC. Enter Accrual forInsurance Contributions Warehouse ## (## = your group number) as theexplanatory text for your accrual. You take the responsibility for the accrualobject yourself.
Use your cost center T-A20A## for the account assignment (## = your groupnumber).
For a time-based accrual, it is important to know over which period an amount isto be distributed. This period extends over the current year.
Choose accrual type INSURA for your insurance contributions. The legalprinciple to be used for the financial statements is the local accounting principleLOGA. Your company has signed an insurance contract that costs 6,000 EURper year. You want to create accruals for this amount.
2. Choose 'Check and Simulate'. As the parameter for the simulation of theallocation posting, choose 01/01 of the current year. The period is to bedetermined from this key date. Look at the results of your simulation.
3. Save your accrual object.
Caution: Make a note of the number of your accrual object.Continued on next page
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Look at the accounting document. What is the entry in the document headertext? What is the text in the line item? From the accounting document, go toyour original document (= Accrual Engine document) which was created by theAccrual Engine.
4. Display the line items of the Accrual Engine in the information system of theAccrual Engine. First select only actual values for your company code and youraccrual object. Then select the simulated values for reporting key date 03.31 ofthe current year.
5. Execute an accrual/deferral run for the first posting period.
Start your periodic accrual/deferral run. Restrict the general selections to yourcompany code, accounting principles, accrual type, and accrual object number.As the key date for the accrual, choose 01.31 of the current year. First carryout a test run, and then an update run.
In the information system, display the totals and the line items of the AccrualEngine. Restrict the selection to your accrual object number.
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AC205 Lesson: Posting Control and Account Determination
Solution 13: Accrual Engine, ManualAccrualsTask:Post the accrual for the insurance amount with the Accrual Engine.
1. Create an accrual object for company code AC## (## = your group number).Choose the accrual object category Z_INSURANC. Enter Accrual forInsurance Contributions Warehouse ## (## = your group number) as theexplanatory text for your accrual. You take the responsibility for the accrualobject yourself.
Use your cost center T-A20A## for the account assignment (## = your groupnumber).
For a time-based accrual, it is important to know over which period an amount isto be distributed. This period extends over the current year.
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Unit 5: Profit and Loss AC205
Choose accrual type INSURA for your insurance contributions. The legalprinciple to be used for the financial statements is the local accounting principleLOGA. Your company has signed an insurance contract that costs 6,000 EURper year. You want to create accruals for this amount.
a) Application: Accounting→ Financial Accounting→ General Ledger→Periodic Processing→ Manual Accruals→ Create Accrual Objects
Field Name or Data Type ValuesCompany Code AC## (## = your group number)Accrual Object Cat. Z_INSURANCText Accrual of insurance contributions
for warehouse ##Person Responsible Your user ID
Additional Account Assignments:
Field Name or Data Type ValuesCost Center T-A20A## (## = your group
number)
Life:
Field Name or Data Type ValuesStart of Life 01.01. of current yearEnd of Life 31.12. of current year
Item Data: Add row
Field Name or Data Type ValuesAccrl Type INSURAAcc.Princ. LOGATotal Amt To Be Accd 6000Currency EUR
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AC205 Lesson: Posting Control and Account Determination
2. Choose 'Check and Simulate'. As the parameter for the simulation of theallocation posting, choose 01/01 of the current year. The period is to bedetermined from this key date. Look at the results of your simulation.
a) Accrual Object→ Check and Simulate Changes
Field Name or Data Type ValuesAccrual/Deferral Key Date 01.01. of current year
Result of the simulation:
Field Name or Data Type ValuesTab Page: Calculated Accruals
3. Save your accrual object.
Caution: Make a note of the number of your accrual object.
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Unit 5: Profit and Loss AC205
Look at the accounting document. What is the entry in the document headertext? What is the text in the line item? From the accounting document, go toyour original document (= Accrual Engine document) which was created by theAccrual Engine.
a) Accrual Object→ Save
Field Name or Data Type ValuesAccrual/Deferral Key Date 01.01. of current year
Caution: Make a note of the number of your accrual object.
Posting result:
Field Name or Data Type ValuesTab Page: Postings
Double-click
Select the accounting document. Extras→ Document Header
Field Name or Data Type ValuesDocument Header Text Accrual Engine: ACAC/I
Field Name or Data Type ValuesText (Items) Posting from Accrual Engine:
ACAC/Allocation
Environment→ Document Environment→ Original Document
Return to the display of the accrual object.
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AC205 Lesson: Posting Control and Account Determination
4. Display the line items of the Accrual Engine in the information system of theAccrual Engine. First select only actual values for your company code and youraccrual object. Then select the simulated values for reporting key date 03.31 ofthe current year.
a) Application: Accounting→ Financial Accounting→ General Ledger→ Periodic Processing→ Manual Accruals→ Information System→Display Posted Accruals→ Manual Accruals: Display Line Items in theAccrual Engine
Field Name or Data Type ValuesActual Values Only SelectCompany Code AC##Accrual Object Number Your accrual object number
Program→ Execute
Back
Field Name or Data Type ValuesSimulated Values SelectKey Date for Reporting 31.03. of current yearCompany Code AC##Accrual Object Number Your accrual object number
Program→ Execute
5. Execute an accrual/deferral run for the first posting period.
Start your periodic accrual/deferral run. Restrict the general selections to yourcompany code, accounting principles, accrual type, and accrual object number.As the key date for the accrual, choose 01.31 of the current year. First carryout a test run, and then an update run.
In the information system, display the totals and the line items of the AccrualEngine. Restrict the selection to your accrual object number.
a) Application: Accounting→ Financial Accounting→ General Ledger→Periodic Processing→ Manual Accruals→ Calculate and Post Accruals
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Unit 5: Profit and Loss AC205
Field Name or Data Type ValuesCompany Code AC##Accrual Object Number Your accrual object numberKey Date for Accruals 31.01. of current year
Application: Accounting→ Financial Accounting→ General Ledger→ Periodic Processing→ Manual Accruals→ Information System→Display Posted Accruals→ Manual Accruals: Display Line Items in theAccrual Engine
Field Name or Data Type ValuesActual Values Only SelectCompany Code AC##Accrual Object Cat. Z_INSURANCAccrual Object Number Your accrual object number
Program→ Execute
Back
Application: Accounting→ Financial Accounting→ General Ledger→ Periodic Processing→ Manual Accruals→ Information System→Display Posted Accruals→ Manual Accruals: Display Totals Values inthe Accrual Engine
Field Name or Data Type ValuesActual Values Only SelectCompany Code AC##Accrual Object Cat. Z_INSURANCAccrual Object Number Number of the accrual object
Program→ Execute
Back
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AC205 Lesson: Posting Control and Account Determination
Lesson Summary
You should now be able to:� Define the posting control of an application component in the Accrual Engine� Configure the account determination of an application component in the Accrual
Engine using rules
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Unit Summary AC205
Unit SummaryYou should now be able to:� Compare cost of sales accounting and period accounting� Name the processes in Controlling that impact Financial Accounting� Explain how the reconciliation ledger is used to update financial accounting for
transactions that cross FI organizational units� Explain how salary expenses are posted to financial accounting� Describe the location of payroll data within the balance sheet� Describe the monthly procedure for calculating payroll data within the HR
module� Outline the automatic and/or manual posting of HR-relevant data� Post accruals and deferrals for period-end closing� Explain the advantage of using the accrual/deferral posting function� Describe the generic functions of the Accrual Engine� State the advantages of using the Accrual Engine in comparison to normal
accrual procedures� Activate an application component of the Accrual Engine for a company code� List the required closing activities for the Accrual Engine� Describe how the application component �Manual Accruals� works� Define subjects to be accrued as accrual objects� Describe the basic settings of the application component �Manual Accruals�� Define the posting control of an application component in the Accrual Engine� Configure the account determination of an application component in the Accrual
Engine using rules
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Unit 6197 Technical, Organizational, and
Documentary Steps
This unit first illustrates the individual steps and then puts these into practice.
Unit OverviewThis unit provides an overview of the technical, organizational, and documentarysteps. In addition to learning how postings are displayed in the posting periodtable, the participants will learn about additional closing activities, such as balancecarryforwards, readjusting financial statements, and the Schedule Manager. At the endof the unit, the participants carry out some of these activities.
Unit ObjectivesAfter completing this unit, you will be able to:
� Explain how balances are carried forward� Explain the advantage of using the posting period tables� Maintain the posting periods table� Explain the procedure for carrying out adjustments to the financial statements
and the advantage of doing so� Specify where Customizing for adjustments is carried out� Explain the functions within the Schedule Manager� Explain the purpose of the balance audit trail
Unit ContentsLesson: Technical Steps .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .207
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Unit 6: Technical, Organizational, and Documentary Steps AC205
Exercise 14: Technical Steps .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .213Lesson: Organizational Steps .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .221
Exercise 15: Organizational Steps .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .227Lesson: Documentary Steps .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .236
Exercise 16: Documentary Steps ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .241
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AC205 Lesson: Technical Steps
Lesson:198
Technical StepsLesson Duration: 70 Minutes
Lesson OverviewThis lesson describes the balance carryforward functions and the posting period table.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Explain how balances are carried forward� Explain the advantage of using the posting period tables� Maintain the posting periods table
For more information, see the Instructor Guide on SAPNet.
Business ExampleAt the end of the period, the ledgers have to be closed and the balances carriedforward. You are responsible for the technical change of period in the company.
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Figure 76: Overview: General Ledger Closing Activities
At the beginning of the fiscal year, the balance carryforward program is run, carryingforward the balances of the G/L accounts to the next fiscal year.
The posting periods of the old fiscal year are blocked and the special periods forclosing postings are opened. A technical reconciliation between transaction figuresand documents guarantees that the posting of documents is technically problem-free.
Foreign currency documents are then valuated, accruals are carried out, and the GR/IRclearing accounts are analyzed, including regrouping of the balance.
If business area balance sheets are required, the business areas have to be adjusted.This subsequently involves ensuring that the balance of the business areas is zero.
Once complete, the special periods can be closed.
For documentation purposes, the balance audit trail is then carried out and the financialstatement created. Finally, messages are created for statutory reporting.
Hint: The closing processes may vary from country to country. Your trainercan provide you with information on special procedures that may be requiredin your country.
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AC205 Lesson: Technical Steps
Figure 77: Balance Carryforward
The system calculates the balance carried forward to the new fiscal year for eachbalance sheet account.
The balance of the P&L accounts is posted to the P&L carry-forward account. Newfrom Release 4.6C: You can display the balances of individual P&L accounts that arecarried forward to a specific retained earnings account. This enables you to understandhow the total balance of the retained earnings account is made up.
P&L accounts only:
� If you have accounts with different currencies, you can set the indicator in themaster record of the P&L carry-forward account to translate and summarize allthe currencies. �Only Balances in Local Currency�.
You can run the programs as often as you want.
You can even run this program in the old fiscal year, since the balance carried forwardto the new year is automatically updated for each posting. If you intend to carry outthe balance carryforward during the current fiscal year, SAP recommends runningthe program as late as possible.
You carry out the balance carryforward for accounts receivable and payable usingreport SAPF010.
If you use additional ledgers such as FI-SL, and/or parallel currencies, you have to runthe balance carryforward using program SAPFGVTR.
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Figure 78: Defining Posting Periods
The system uses the posting date that you specify during document entry to determineto which posting period the document is posted.
The posting periods for your company are defined by the fiscal year variant.
You can use the fiscal year variant to make the following system settings:
� Beginning and end of your fiscal year� Number of "normal" posting periods (01-16)� Number of special periods (remaining periods up to 16 after selection of
�normal� periods)� Posting period length
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AC205 Lesson: Technical Steps
Figure 79: Posting Period Control
The posting periods table is used to open and close posting periods. You can haveas many or as few posting periods open as you want.
The first column illustrated contains the posting period variant. This code isassigned to your company codes to allow you to open and close the posting periodsfor several companies at the same time.
The next column contains the account type. Account types include �+� for allaccounts, �A� for assets, �D� for customer accounts, �K� for vendor accounts, and �S�for G/L accounts. This allows you to control the open posting periods by account type.
Accounts are open for the periods specified in the table and closed for periods notspecified.
The line with account type �+� (valid for all accounts) determines the maximumlength of the open periods for an account type.
For example, in the second table, periods 13 to 16 in 1999, and periods 1 to 2 in2000 are open for all accounts.
In the additional lines with the individual account types (A, D, and so on), the numberof open periods for the accounts specified is restricted.
In the second table in the example, the first period of 2000 is closed for thesubledgers Asset Accounting and Accounts Receivable.
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In another column in the table (not shown), you can assign an authorization group tothe periods open in the �Period 1� interval. The authorization group has no effect onthe open periods in the period 2 interval. You can, therefore, define that postings ininterval 1 can only be made by a specific user group (accounting), but all users canpost in interval 2.
Figure 80: Technical Reconciliation
The report carries out an extended reconciliation in Financial Accounting. As part ofgeneral ledger month-end closing, the following consistency checks are performed:
1. Debit and credit transaction figures for customer accounts, vendor accounts,and G/L accounts (table GLT0) with the debit and credit totals of the posteddocuments (table BSEG) (previous function of the report SAPF070).
2. Debit and credit transaction figures for customer accounts, vendor accounts, andG/L accounts (table GLT0) with the debit and credit totals of the applicationindex (secondary index tables BSIS/BSAD, BSIK/BSAK, BSIS/BSAK).
The application indexes are used in the system for accounts with open itemmanagement or line item display.
All the results of the reconciliation are added to historical management. This enablesstatements to be made about the execution and accuracy of the reconciliation activitieson a time basis.
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AC205 Lesson: Technical Steps
205 Exercise 14: Technical StepsExercise Duration: 20 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a posting period variant� Open and close a period
Business ExampleAt the end of the period, you need to perform a preliminary close of financialaccounting prior to performing management closing activities. You then need tore-open the period for adjustment postings.
Task:Create a posting period variant to control your own company's posting periods only.Test this function by opening and closing the current period and using the postingfunction.
1. Create a new posting period variant, PV## and name it Group ## PostingPeriod Variant.
2. Assign your posting period variant PV## to your company code AC##.
3. You first want to make sure that you can close the current period and beginposting to the new period. The next posting periods should be open for allaccounts.
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4. Go to another session to post your transaction. First try to create a G/L accountposting using the current date to debit cash (account 113100) and credit ordinaryshare capital (account 70000). Post EUR 100000. After trying to post thisdocument, attempt the same posting on the first of the next period.
Hint: When you try to post in the current period, enter the documentdate (posting date will default to the current date) and then choose 'Enter'.You should receive a warning message that the posting period is notopen. If you do not, go back through the previous configuration steps.
For the 'new' posting period attempt, you will receive a couple ofwarning messages about the posting date and period. Choose 'Enter' toignore these messages and continue.
5. Return to your Customizing session and open the current period.
6. Return to your business transaction session and try to make a posting usingthe current date again.
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AC205 Lesson: Technical Steps
Solution 14: Technical StepsTask:Create a posting period variant to control your own company's posting periods only.Test this function by opening and closing the current period and using the postingfunction.
1. Create a new posting period variant, PV## and name it Group ## PostingPeriod Variant.
a) Posting periods
Create posting period variant
Menu path to create posting period variant:
Tools→ Customizing→ IMG→ Execute Project→ Goto→ SAPReference IMG→ Financial Accounting→ Financial Accounting GlobalSettings→ Document→ Posting Periods→ Define Variants for OpenPosting Periods
Choose 'New Entries'.
Enter the following data:
Variant: PV##
Name: Posting period variant group ##
Save.
Return to the Display IMG screen.
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2. Assign your posting period variant PV## to your company code AC##.
a) Assign posting period variant
Menu path for posting period variant/company code assignment:
Tools→ Customizing→ IMG→ Execute Project→ Goto→ SAPReference IMG→ Financial Accounting→ Financial Accounting GlobalSettings→ Document→ Posting Periods→ Assign Variants to CompanyCode
Scroll down to find your company code AC##.
In the 'Variant' column, enter the posting period variant PV## for yourcompany code.
Save.
Return to the 'Display IMG' screen.
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AC205 Lesson: Technical Steps
3. You first want to make sure that you can close the current period and beginposting to the new period. The next posting periods should be open for allaccounts.
a) Open and close posting periods
Menu path to control posting periods:
Tools→ Customizing→ IMG→ Execute Project→ Goto→ SAPReference IMG→ Financial Accounting→ Financial Accounting GlobalSettings→ Document→ Posting Periods→ Open and Close PostingPeriods
Choose New Entries.
Enter the following data:
Var.: PV##
A(ccount): Valid for all account types
From Acct: Leave blank
To Account: Leave blank
From Per.: Next period
Year: Current year (unless at end of year)
To Period: Next period
Year: Current year (unless at end of year)
Save.
4. Go to another session to post your transaction. First try to create a G/L accountposting using the current date to debit cash (account 113100) and credit ordinaryshare capital (account 70000). Post EUR 100000. After trying to post thisdocument, attempt the same posting on the first of the next period.
Hint: When you try to post in the current period, enter the documentdate (posting date will default to the current date) and then choose 'Enter'.You should receive a warning message that the posting period is notopen. If you do not, go back through the previous configuration steps.
For the 'new' posting period attempt, you will receive a couple ofwarning messages about the posting date and period. Choose 'Enter' toignore these messages and continue.
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a) Post general ledger
Menu path to create a new session:
System→ Create Session
Menu path for G/L account posting: Accounting→ Financial Accounting→ General Ledger→ Posting→ Enter G/L Account Document
Enter the following data:
Document Date: Current date
Posting Date: Current date
Choose 'Enter'.
After receiving the error message, correct the dates:
Document Date: First day of next period
Posting Date: First day of next period
Choose 'Enter'.
You will receive two warning messages.
Choose 'Enter' after each message is displayed to ignore them.
First row:
G/L Acct: 100000
D/C: Debit amount
Amount in Doc.Curr. 100000
Second row:
G/L Acct 70000
D/C: Credit
Amount in Doc.Curr.: 100000
Post your document.
Return to the main menu.
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AC205 Lesson: Technical Steps
5. Return to your Customizing session and open the current period.
a) Open current period
Menu path to control posting periods:
Tools→ Customizing→ IMG→ Execute Project→ Goto→ SAPReference IMG→ Financial Accounting→ Financial Accounting GlobalSettings→ Document→ Posting Periods→ Open and Close PostingPeriods
Scroll down to variant PV##.
Change the From Period and Year to the current period and year.
Save.
6. Return to your business transaction session and try to make a posting usingthe current date again.
a) New G/L account posting
Menu path for G/L account posting:
Accounting→ Financial Accounting→ General Ledger→ Posting→Enter G/L Account Document
Enter the following data:
Document Date: Current date
Posting Date: Current date
Choose 'Enter'.
First row:
G/L Acct 113100
D/C: Debit
Amount in Doc.Curr.: 100000
Second row:
G/L Acct 70000
D/C: Credit
Amount in Doc.Curr.: 100000
Post your document.
Return to the main menu.
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Lesson Summary
You should now be able to:� Explain how balances are carried forward� Explain the advantage of using the posting period tables� Maintain the posting periods table
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AC205 Lesson: Organizational Steps
Lesson:213
Organizational StepsLesson Duration: 70 Minutes
Lesson OverviewThis lesson introduces the instrument for adjusting financial statements and describesthe functions of the Schedule Manager.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Explain the procedure for carrying out adjustments to the financial statementsand the advantage of doing so
� Specify where Customizing for adjustments is carried out� Explain the functions within the Schedule Manager
For more information, see the Instructor Guide on SAPNet.
Business ExampleYour company creates financial statements at business area level. To do so, you willneed to use system functions to check the accuracy of accounting data and to verify itssecurity.
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Adjustments to Financial Statements
Figure 81: Adjustments to Financial Statements
The financial statement adjustment breaks the receivables, payables, and taxes downinto the additional account assignments �Business area� and �Profit Center�, whichare stored in the G/L account items. If an error occurs, you can carry out a reversal run.
The reversal posting is made if the adjustment item posted is cleared at the key date ofthe new run.
The profit and loss statement adjustment breaks down cash discount and exchangerate differences which accrue when customer and vendor invoices are paid accordingto the following additional account assignments from the cleared document's G/Laccount assignment:
� Business area� Partner business area (Consolidation)� Profit center� Partner profit center� Some of the CO objects� All of the fields you defined in the coding block.
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AC205 Lesson: Organizational Steps
Figure 82: Example: Balance Sheet Adjustment
This example is based on a tax rate of 16%.
Figure 83: Schedule Manager: Benefits
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The Schedule Manager facilitates period-end closing and reflects a cross-applicationaccess point for all tasks involved in the closing process. It includes all steps, fromdefining the structure of your closing process to scheduling the jobs and monitoringthe results.
It provides you with all the data relevant for period-end closing. All employees withthe appropriate authorization can find information on outstanding tasks, look at theobjects to be processed, and schedule additional tasks. They can see clearly when,for example, month-end closing must be completed and the previous period is to beclosed. You can use the Schedule Manager at any time to check when and whichactivities are to be executed, and with which result.
The Schedule Manager not only facilitates period-end closing, it is also useful inother components in SAP R/3. It assists with the definition, scheduling, executionand control of individual, periodic tasks, and complex processes that have to beexecuted regularly.
Figure 84: Schedule Manager: Scheduling
In the monitor, you can call up detailed information on the active or completed jobsand flows that were scheduled in the scheduler.
The Status field shows you immediately where errors occurred.
All messages that the system created during job execution are displayed in a clear list.
You can go from here to the spool list, job log, detail list, and basic list.
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AC205 Lesson: Organizational Steps
Once you have checked the results, you can change the system status and give a reasonfor the change. The system logs your manual changes.
Figure 85: Schedule Manager: Monitor
On the first screen of the Schedule Manager, you find the documentation which willhelp you through your first steps (if you do not need them anymore, you can switchthe user notes off).
The Schedule Manager enables you to do the following:
� Create a structured display of all tasks in task lists. The tasks can be executedperiodically and by more than one user. A task list provides you with thefollowing task types:
� Flows that can be executed in the background, which are defined once andexecuted periodically (compare with flow definition)
� Individual jobs that can be executed in the background� Programs or transactions that you wish to execute individually online� Notes as placeholders to describe tasks that you do not process in SAP R/3.
You can store detailed documentation on each task.
In the daily overview, you can get an overview of all the executed or scheduled tasksfor a day. The system logs the task execution, and provides you with information onthe planned and actual start time, as well as the current status of each task. You can gofrom the daily overview to the monitor to get detailed information on jobs or flows.
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Figure 86: Schedule Manager: Task List - Flow Definition
In the flow definition, you can group tasks that are to be executed in the background ina particular order.
You use the workflow to control these flow definitions.
You can structure subflows and include them in a flow definition.
Insert user decisions for checking purposes.
Use worklists to reduce the total runtime.
Use the task list to group individual tasks. If you need to run sequences of jobs, createa flow definition including all dependent work items.
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AC205 Lesson: Organizational Steps
219 Exercise 15: Organizational StepsExercise Duration: 20 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Adjust a business area� Schedule a task in the Schedule Manager
Business ExampleYour company creates financial statements at business area level. Before creatingthese financial statements, you must ensure that the total balance for each businessarea is zero. Since your company posts sales and purchases across several businessareas, your receivables and payables accounts need to be adjusted. For these periods,therefore, you adjust a business area to update payables.
Task 1:You post a vendor invoice to two different business areas that are to be debited with theexpenses. In this case, the payable and the tax portion is posted to a �blank� businessarea. You realize that the balance is not zero by running the financial statementprogram and then correct the data by executing the business area adjustment programs.
1. Create a vendor invoice for your company code AC##. The invoice is fromthe vendor T-F00A00. The gross amount (including 16% input tax, tax codeVN) is EUR 1,160 and the tax amount is EUR 160. Enter the current date asthe invoice and posting date.
Use the G/L account 476000 for both items and post EUR 600 and EUR 400respectively to two different cost centers, T-A20A## and T-A20B## (## = yourgroup number).
Save your posting.
2. Before adjusting the business area, run the financial statement (RFBILA00)using the report variant VAR## that you created earlier. Check the items foraccounts payable and services (account 160000) and office supplies (account476000). The payables balance is posted to a blank business area, while theexpense is split between two business areas.
3. In a second session, calculate the business area adjustment for your companycode AC##.
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4. Post the balance sheet adjustment on the last day of the current period for yourcompany code AC##. Generate a posting with document type SA and select alog of distributed documents.
Hint: If you receive a message about checking the document type;choose 'Enter' to continue processing.
5. Return to your report session and rerun the financial statement (RFBILA00)using the report variant VAR## that you created earlier. Check the items foraccounts payable from deliveries and services. The payables balance forthe blank business area is now zero (the transfer posting to account 160099results in a zero balance for account 160000). The original amount is now splitbetween the two business areas, in account 160099, to the same amount as theexpense postings.
Task 2:You can use the Schedule Manager to plan deadlines in the system.
Note: Your company wants to create the checklist previously used foryear-end closing activities in the system. You can use the Schedule Managerto do this. First, you have to maintain the task list in the FI closing area. Youalso carry out a test.
1. A task list has already been created in the Schedule Manager. Call up this tasklist (AC205##) and change it. In the existing "Documentation" folder, includethe report for creating balance sheets (RFBILA00) with variant VAR##.
2. Schedule this for testing immediately. Check the results via the monitor.
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AC205 Lesson: Organizational Steps
Solution 15: Organizational StepsTask 1:You post a vendor invoice to two different business areas that are to be debited with theexpenses. In this case, the payable and the tax portion is posted to a �blank� businessarea. You realize that the balance is not zero by running the financial statementprogram and then correct the data by executing the business area adjustment programs.
1. Create a vendor invoice for your company code AC##. The invoice is fromthe vendor T-F00A00. The gross amount (including 16% input tax, tax codeVN) is EUR 1,160 and the tax amount is EUR 160. Enter the current date asthe invoice and posting date.
Use the G/L account 476000 for both items and post EUR 600 and EUR 400respectively to two different cost centers, T-A20A## and T-A20B## (## = yourgroup number).
Continued on next page
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Save your posting.
a) Menu path:
SAP Easy Access→ Accounting→ Financial Accounting→ Vendors→Document Entry→ Invoice (FB60)
Entry header:
Vendor: T-F00A00Invoice Date: Today's datePosting Date: Today's dateAmount: EUR 1,160 (including 16% input
tax: Tax code VN)Tax Amount: 160
Item entries:
G/L Account: 476000Amount: 600
Cost Center: T-A20A## (## = your groupnumber)
G/L Account: 476000Amount: 400Cost Center: T-A20B## (## = your group
number)
Save your invoice.
Continued on next page
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AC205 Lesson: Organizational Steps
2. Before adjusting the business area, run the financial statement (RFBILA00)using the report variant VAR## that you created earlier. Check the items foraccounts payable and services (account 160000) and office supplies (account476000). The payables balance is posted to a blank business area, while theexpense is split between two business areas.
a) Adjustment postings
Calculate financial statement.
Menu path for the report:
Information Systems→ Accounting→ Financial Accounting→ GeneralLedger→ Balance Sheet
Select a variant:
Goto→ Variants→ Get
Enter VAR##.
Choose Execute to select the variant.
Execute the report.
Once you have checked the report, return to the Balance Sheet/P+LStatement screen.
3. In a second session, calculate the business area adjustment for your companycode AC##.
a) Calculate subsequent business area/profit center adjustment
Menu path to create a new session:
System→ Create Session
Menu path to calculate adjustment:
Accounting→ Financial Accounting→ General Ledger→ PeriodicProcessing→ Closing→ Reclassify→ Balance Sheet Adjustment→Calculate
Enter the your company code AC##.
Execute the calculation.
Review the output.
Return to the main menu.
Continued on next page
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4. Post the balance sheet adjustment on the last day of the current period for yourcompany code AC##. Generate a posting with document type SA and select alog of distributed documents.
Hint: If you receive a message about checking the document type;choose 'Enter' to continue processing.
a) Post adjustment
Menu path to post adjustment:
Accounting→ Financial Accounting→ General Ledger→ PeriodicProcessing→ Closing→ Reclassify→ Balance Sheet Adjustment→ Post
Enter the following data:
Company Code: AC##
Key Date: Last day of the current
period
Generate Postings: X
Document Type: SA
Posting Date: Last day of the current
period
Log of Distributed Documents: X
Execute the posting program.
Once you have checked the results, return to the main menu.
5. Return to your report session and rerun the financial statement (RFBILA00)using the report variant VAR## that you created earlier. Check the items foraccounts payable from deliveries and services. The payables balance forthe blank business area is now zero (the transfer posting to account 160099results in a zero balance for account 160000). The original amount is now splitbetween the two business areas, in account 160099, to the same amount as theexpense postings.
a) Recreate balance sheet
From the Balance Sheet/P+L Statement screen, execute the report again.
Continued on next page
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AC205 Lesson: Organizational Steps
Task 2:You can use the Schedule Manager to plan deadlines in the system.
Note: Your company wants to create the checklist previously used foryear-end closing activities in the system. You can use the Schedule Managerto do this. First, you have to maintain the task list in the FI closing area. Youalso carry out a test.
1. A task list has already been created in the Schedule Manager. Call up this tasklist (AC205##) and change it. In the existing "Documentation" folder, includethe report for creating balance sheets (RFBILA00) with variant VAR##.
a) Schedule Manager
Call up and change task list
Menu path for starting the Schedule Manager:
Accounting→ Financial Accounting→ General Ledger→ PeriodicProcessing→ Schedule Manager
Task List→ Other Task List:
Click on input help and choose the task list AC205-##.
Choose:
Change Task List.
You can now change the task list.
Place the cursor on the "Documentation" folder and click the right mousebutton.
Choose 'Create Task'.
Enter the following data:
Description: Financial statements
Task owner: Training
Program: RFBILA00
Variant: VAR##
Enter.
Save the task list.
Continued on next page
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2. Schedule this for testing immediately. Check the results via the monitor.
a) Schedule tasks
Choose: Schedule Tasks.
Place the cursor on your new entry, �Financial statements�, and clickthe right mouse button.
Choose: Schedule.
Choose Start Immediately.
You can see the scheduled report in the daily overview. Update the displayusing the �Refresh� icon. The status changes.
Choose �Monitor�. The system displays details of the report that wasstarted.
Choose �Spool� to display the result.
Return to the main menu.
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AC205 Lesson: Organizational Steps
Lesson Summary
You should now be able to:� Explain the procedure for carrying out adjustments to the financial statements
and the advantage of doing so� Specify where Customizing for adjustments is carried out� Explain the functions within the Schedule Manager
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Unit 6: Technical, Organizational, and Documentary Steps AC205
Lesson:228
Documentary StepsLesson Duration: 70 Minutes
Lesson OverviewThis lesson explains the function of the balance audit trail and how to create aflow-of-funds analysis.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Explain the purpose of the balance audit trail
For more information, see the Instructor Guide on SAPNet.
Business ExampleAccounting documents, by law, have to be stored for several years. The employees inFinancial Accounting want to be introduced to the balance audit trail.
Figure 87: Balance Audit Trail
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AC205 Lesson: Documentary Steps
Legislation generally stipulates that it must be possible to explain account balancesat any time for more than one fiscal year using the relevant document items. This ispossible while the relevant documents are still stored in the system.
Older documents, however, usually have to be archived and deleted from the databasein order to reduce the load on the system. If you then want to explain an accountbalance, you should start the balance audit trail before you archive any documents.This generates the compact journal for a period in the form of a list. The balance audittrail displays the balance at the beginning of a period and the changes to the accountto the period end.
Alternatively, you can periodically generate an extract for accumulated balance audittrail periodically and extract the balance list from here. Once a year, the cumulativecontent of this balance audit trail can then be optically archived or printed.
Figure 88: Types of Balance Audit Trails
Balance audit trail types are distinguished according to the way the posting datais displayed:
Historical Balance Audit TrailTransactions are arranged according to posting period and posting date.The historical balance audit trail is processed.
Report RFHABU00: General ledger from document file (without balance audit trail).The report documents G/L account postings in the form of a general ledger. Thedata displayed in the general ledger is taken both from the master record information
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in the G/L accounts and from the G/L account transactions. Report RFKLET01:Balance audit trail for historical balance audit trail. The historical balance audit trailis available for accounts receivable, accounts payable and general ledger accounts.The balance contains the documents and transaction figures of all accounts for thechosen time period. The accounts are arranged according to account type, companycode, account and business area. The relevant transactions are arranged on the basisof the posting period and posting date.
Open Item Balance Audit TrailOpen item turnover is output for each reconciliation account.Items are divided into open/cleared items for each special G/L indicator.The open item balance audit trail is processed.
Report RFKKBU00: Open item balance audit trail from document file (withoutbalance audit trail).
The report documents the transactions for customer, vendor and general ledgeraccounts that are managed as open items.
Report RFKLET01: Balance audit trail for open item balance audit trail.
Open item turnover is output for each reconciliation account. Items are divided intoopen/cleared items for each special G/L indicator.
Figure 89: Accumulated Balance Audit Trail
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AC205 Lesson: Documentary Steps
With the accumulated balance audit trail, a data set is extracted or updated from theoperational FI tables to create the account details. The data is written to databasetables.
� Create Balance
The required documents and transaction figures are read and written to thedatabase tables. Existing data is overwritten.
� Delete Balance
When the balance is deleted, the required data records are removed from thebalance. This can be very time-consuming. You should therefore consider thealternative of resetting the balance (parameter: reset tables) after taking therequired lists.
� Output
Space requirement for database tables. An entry of approximately 250 bytes inlength is written per document line.
However, this value depends on the database system.
You can use the alternative account number parameter to transfer the alternativeaccount number information to the balance.
Database Tables:
DSKOS G/L accounts master data/transaction figures, historical balance audit trail
DSKOP G/L accounts items, historical balance audit trail
DKKOS Subledger accounts master data/transaction figures, historical balance audittrail
DKKOP Subledger accounts items, historical balance audit trail
DKOKS Master data, open item balance audit trail
DKOKP Items, open item balance audit trail
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Figure 90: Output from the accumulated balance audit trail
Account Details from Historical Accumulated Balance Audit Trail
The report RFKLBU10 documents the transactions on customer, vendor and generalledger accounts in the classical sense (balance carry forward, periodic turnover, closingbalance). The data is taken from the balance of the historical balance audit trail.
In addition to general account data, the list contains the transaction data (individualitems) from the period you have selected.
The balance carry forward is derived from the transaction figures from the balanceaudit trail.
The monthly turnover for customer and vendor accounts is always derived from thedocuments.
You can choose whether the monthly turnover for G/L accounts is derived from thedocuments or the transaction figures (Select Option G/L Accounts Without Items).
At the end of the report the system outputs the statistics for the read data records.
Accounts Detailed Listing from Open Item Account Accumulated Balance AuditTrail
The report RFKKBU10 documents the transactions for customer, vendor and generalledger accounts that are managed as open items.
It processes the balance of the open item account accumulated balance audit trailthat was generated before.
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AC205 Lesson: Documentary Steps
233 Exercise 16: Documentary StepsExercise Duration: 10 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Execute reports that document the business transactions for the period
Business ExampleFor month-end closing, you want to document the transactions that make up theaccount balances in the G/L and list the documents that have been entered duringthe period.
Task 1:Check the output of the balance audit trail reports from the document file (currentdata).
1. Execute the General Ledger from the Document File report for your companycode AC## for the current fiscal year.
2. Execute the Open Item Account Balance Audit Trail From the Document Filereport for your company code AC## for the current fiscal year.
Task 2:In order to complete the documentation in Financial Accounting, you need to create a(chronological) overview of all of your documents for each fiscal year.
1. Create the compact document journal in the G/L and select all the documents foryour company code AC## for the current fiscal year.
2. According to which criteria is the list sorted?
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Solution 16: Documentary StepsTask 1:Check the output of the balance audit trail reports from the document file (currentdata).
1. Execute the General Ledger from the Document File report for your companycode AC## for the current fiscal year.
a) Check the output of the balance audit trail reports from the document file(current data).
Execute the General Ledger from the Document File for your companycode AC## for the current fiscal year.
Menu path for balance audit trail for all accounts (non-open item accounts):
Accounting→ Financial Accounting→ General Ledger→ PeriodicProcessing→ Closing→ Document→ Balance Audit Trail→ AllAccounts→ General Ledger from the Document File
Enter the following data:
Company Code: AC##
Fiscal Year: Current year
Execute the report.
Once you have checked the output, return to the main menu.
Continued on next page
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AC205 Lesson: Documentary Steps
2. Execute the Open Item Account Balance Audit Trail From the Document Filereport for your company code AC## for the current fiscal year.
a) Balance Audit Trail from the Document File
Menu path for balance audit trail for open item accounts:
Accounting→ Financial Accounting→ General Ledger→ PeriodicProcessing→ Closing→ Document→ Balance Audit Trail→ Open ItemAccounts→ Open Item Account Balance Audit Trail from the DocumentFile
Enter the following data:
Company Code: AC##
Fiscal Year: Current year
Execute the report.
Once you have checked the output, return to the main menu.
Task 2:In order to complete the documentation in Financial Accounting, you need to create a(chronological) overview of all of your documents for each fiscal year.
1. Create the compact document journal in the G/L and select all the documents foryour company code AC## for the current fiscal year.
a) Chronological documentation of the documents
Menu path for compact document journal:
Accounting→ Financial Accounting→ General Ledger→ InformationSystem→ General Ledger Reports→ Document→ General→ CompactDocument Journal→ Compact Document Journal
Enter the following data:
Company Code: AC##
Fiscal Year: Current year
Execute the report.
2. According to which criteria is the list sorted?
a) According to which criteria is the list sorted?
The list is sorted by document number.
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Lesson Summary
You should now be able to:� Explain the purpose of the balance audit trail
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AC205 Unit Summary
Unit SummaryYou should now be able to:� Explain how balances are carried forward� Explain the advantage of using the posting period tables� Maintain the posting periods table� Explain the procedure for carrying out adjustments to the financial statements
and the advantage of doing so� Specify where Customizing for adjustments is carried out� Explain the functions within the Schedule Manager� Explain the purpose of the balance audit trail
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Unit 7239 Additional Material
This unit contains additional materials.
Unit OverviewThis unit contains additional material that can be used for reference purposes. Thismaterial is not part of the standard course. For this reason, it might not be dealt withduring the course.
This unit describes the country-specific settings for Germany and the USA for the�Tax� and �Regulatory reporting� areas. The participants also obtain an overview ofthe preparatory activities for �consolidation�.
Unit ObjectivesAfter completing this unit, you will be able to:
� List the main advantages offered by new General Ledger Accounting� Locate the general Customizing settings for tax processing within the IMG.� Describe the 1099/1042 business process� Locate the Customizing settings for withholding tax codes and 1099/1042
outputs� Use withholding tax during invoicing and payment� Create a tax return� Create a return for tax on sales and purchases� Locate the Customizing settings for automatic posting to the tax payable account
during execution of the program RFUMSV00� Analyze data relevant to European tax reporting� Locate Customizing for tax reporting for the European Union.
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� Create an EC sales list according to European Union requirements� Perform reporting in accordance with the German foreign trade regulations.� Describe the preparations for consolidation in Financial Accounting
Unit ContentsLesson: New General Ledger Accounting (New GL) .. . . . . . . . . . . . . . . . . . . . . . . . .249Lesson: General Tax Processing .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .259Lesson: Tax Reporting in the USA.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .263
Exercise 17: 1099/1042 Processing (USA) ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .287Lesson: Tax Reporting in Germany... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .293
Exercise 18: Germany: Tax Reporting... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .297Lesson: Tax Reporting in the European Union.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .301Lesson: Reporting in Accordance with German Foreign Trade Regulations 306Lesson: Consolidation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .310
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AC205 Lesson: New General Ledger Accounting (New GL)
Lesson:241
New General Ledger Accounting (New GL)Lesson Duration: 30 Minutes
Lesson OverviewThe following slides provide a brief summary of the main advantages offered by newGeneral Ledger Accounting in mySAP ERP.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� List the main advantages offered by new General Ledger Accounting
Business Example
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New General Ledger Accounting (New GL)
Figure 91: New General Ledger Accounting (New GL)
SAP Note 756146 also provides an overview of the advantages presented by newGeneral Ledger Accounting.
If you would like to experience new General Ledger Accounting in an SAP trainingcourse, please attend AC210.
Note for customers currently using classic General Ledger Accounting: If youperceive the advantages outlined in the following slides as decisive for your enterprise,you can switch to new General Ledger Accounting in a follow-up project to theupgrade to mySAP ERP.
Planned �General Availability�: April 1,2005
New General Ledger Accounting is fully integrated with all subledgers (=> FI-AP,FI-AR, and FI-AA)!
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AC205 Lesson: New General Ledger Accounting (New GL)
Figure 92: Advantages of New General Ledger Accounting � Overview
The following slides describe the individual advantages in detail.
In a nutshell, new General Ledger Accounting comprises functions combining classicGeneral Ledger Accounting with the Special Purpose Ledger component.
Caution: In spite of all the innovations mentioned so far, the �user interfaces�for entering data or postings remain virtually identical to those of the previousrelease from the user�s point of view!
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Figure 93: Advantages in Detail � Extended Data Structure
The Functional Area field is now stored in General Ledger Accounting as well. Thismeans that you no longer have to activate the cost of sales ledger 0F to create a profitand loss statement for cost of sales accounting.
The Profit Center field (like the Partner Profit Center field) is also managed inGeneral Ledger Accounting. In this way, you can use General Ledger Accounting toperform management analyses.
With mySAP ERP Central Component, you can also use General Ledger Accountingto portray a lean version of management accounting (=> �CO light�). Cost centersand (primary) cost elements are now available as objects.
A new entity (characteristic / category) that is now available is the Segment field.With the addition of this new entity, you are now able to perform segment reporting.
In new General Ledger Accounting, the structure of the tables can be extendedflexibly with the addition of custom fields and the related totals for those fields.
Standard reports can be used for all of the above purposes.
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AC205 Lesson: New General Ledger Accounting (New GL)
Figure 94: Advantages in Detail � Document Splitting (Online Split) I
The appearance of the interface as well as the way users enter financials documentsremain exactly the same as in previous releases.
An input tax rate of 16 % is taken as the norm.
Currently, SAP supports derivation of the segment from the profit center. However,the profit center itself can be derived from a cost center, a CO order, or a project,for example.
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Figure 95: Advantages in Detail � Document Splitting (Online Split) II
It is necessary to activate document splitting to ensure that the characteristic Segment(or indeed any other entity) is split consistently. Uniform segmentation means that a�zero balance� is achieved for each document for the relevant entity.
The display clearly represents not only how the entity Segment is split but also how itis inherited to the vendor line items and tax line items of the document.
With the online split (and the inheritance), the period-end closing activities �BalanceSheet Adjustment� (=> SAPF180) and �Profit and Loss Adjustment� (=> SAPF181)are no longer required.
Caution: Document splitting can also be applied to �subsequent processes�,such as payments. Cash discount received or cash discount paid are distributedto the entities according to the amount of the original postings to the expenseaccount (in the case of an original vendor invoice).
Customer invoices in which the revenues are distributed across different entities aretreated in the same way as the vendor invoices referred to in the above note.
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AC205 Lesson: New General Ledger Accounting (New GL)
Figure 96: Advantages in Detail � Real-Time Integration CO -> FI
This slide demonstrates real-time integration of CO and FI using thecharacteristic/criterion Functional Area by way of example. However, you can alsoset up real-time integration for the criteria Company Code, Business Area, ProfitCenter, Segment, Fund, and Receivable. The selection is not an �either/or decision� -you can also activate real-time integration for all of these characteristics at once!
Special features of the Financial Accounting (FI) document (=> 2b.):
� Postings are made in real time (per document). There is no longer any need forreconciliation (=> [only] aggregated for each expense account/cost element)with the reconciliation ledger in Cost Element Accounting (transaction KALC).
� The FI document does not require clearing accounts. However, clearingaccounts are still required in mySAP ERP for cross-company code transactions!
� Users can access the FI document generated in real-time from the managementaccounting document (=> 2./2a.) and vice versa, thereby guaranteeingtransparency of the accounting documents!
The documents in real-time integration CO -> FI can be logged using a trace forsubsequent analysis.
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Figure 97: Advantages in Detail � Parallel Accounting
One of the ledgers in new General Ledger Accounting is designated as the �leadingledger�. The leading ledger is generally used to portray group accounting.
Other ledgers can also be used for parallel accounting in new General LedgerAccounting.
� This is the ledger approach in new General Ledger Accounting deliveredwith mySAP ERP.
�
Caution: These are not the same ledgers as those in the Special PurposeLedger component in Release R/3 Enterprise!
Nevertheless, it is still possible to portray parallel accounting using additionalaccounts (=> account approach). With the account approach, you only use oneledger in General Ledger Accounting, and that ledger is taken as the leading ledger.
As of mySAP ERP, the ledger approach (in new General Ledger Accounting) andthe account approach are generally given equal importance. For more information,see SAP Note 779251.
You can continue to use the display options from earlier releases - such as thespecial purpose ledger approach or the company code approach - provided that theseapproaches have already been set up prior to mySAP ERP. However, enhancements tosuch approaches are not included in mySAP ERP.
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AC205 Lesson: New General Ledger Accounting (New GL)
Facilitated Discussion
Discussion QuestionsUse the following questions to engage the participants in the discussion. Feel free touse your own additional questions.
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Lesson Summary
You should now be able to:� List the main advantages offered by new General Ledger Accounting
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AC205 Lesson: General Tax Processing
Lesson:249
General Tax ProcessingLesson Duration: 15 Minutes
Lesson OverviewThis lesson is only included in the standard course in specific countries. It explainsthe general Customizing settings required for processing tax.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Locate the general Customizing settings for tax processing within the IMG.
For more information, see the Instructor Guide on SAPNet.
Business ExampleYour company is a member of a multi-national group. Local requirements for taxreporting have to be fulfilled.
As a member of the FI project team, you have to check whether the standard taxreports in SAP R/3 meet the national requirements.
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Unit 7: Additional Material AC205
Figure 98: Taxes
The FI system is able to handle the tax requirements and procedures of many differentcountries.
Figure 99: Preconditions for Tax Processing
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AC205 Lesson: General Tax Processing
Facilitated Discussion
Discussion QuestionsUse the following questions to engage the participants in the discussion. Feel free touse your own additional questions.
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Unit 7: Additional Material AC205
Lesson Summary
You should now be able to:� Locate the general Customizing settings for tax processing within the IMG.
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AC205 Lesson: Tax Reporting in the USA
Lesson:252
Tax Reporting in the USALesson Duration: 15 Minutes
Lesson OverviewThis lesson describes the country-specific settings for tax reporting in the USA.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Describe the 1099/1042 business process� Locate the Customizing settings for withholding tax codes and 1099/1042
outputs� Use withholding tax during invoicing and payment� Create a tax return
For more information, see the Instructor Guide on SAPNet.
Business ExampleAs a member of the FI project team, you have to check whether the standard taxreports in SAP R/3 meet USA requirements.
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Unit 7: Additional Material AC205
Figure 100: 1099 Business Process
1099 withholding tax: Reporting of 1099 taxes involves income paid tonon-incorporated vendors or non-employees. The revenues are divided into elevencategories. Most companies use category 07 �Non-employee compensation�.
The majority of companies do not actually withhold tax from payments to 1099vendors; instead, these companies report the amount of payments made to 1099vendors to the IRS. If a company does deduct tax from a 1099 vendor (usually occurswhen a vendor does not provide a tax number), the company deducts 31% of theamount due to the vendor and later pays this amount directly to the IRS.
Hint: Any differences between the tax amount payable and the amountwithheld is handled directly between the 1099 vendor and the IRS.
1099 taxes have to be reported once a year (in January). The tax return can either be inwritten form, or in the form of a data file. The amounts that have to be reported tothe IRS are only amounts paid to the 1099 vendor between January 1 and December31 of the reporting year.
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AC205 Lesson: Tax Reporting in the USA
Figure 101: Vendor Master Record
A 1099 vendor is configured in two areas of the vendor master record: in the Controland the Accounting information areas.
The accounting information is used as the default for processing in the vendordocument.
Hint: No 1099 vendor may be set up as a one-time vendor, since one-timevendors are excluded from 1099 processing within SAP R/3.
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Unit 7: Additional Material AC205
Figure 102: Vendor Account Groups
In order to configure the 1099 vendor master record, you have to be able to enter taxcodes in the account group to which the vendor is assigned.
Hint: You should also ensure that the tax code fields have the required fieldlength. Tax code 1 should be 11 characters long and tax code 2 10 characterslong.
These parameters are set in the Global Settings section of the IMG.
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AC205 Lesson: Tax Reporting in the USA
Figure 103: Withholding Tax Code
Eleven basic 1099 withholding tax codes are provided with SAP R/3. Each codecorresponds to a tax category.
These eleven codes are not preconfigured to deduct and post actual withholdingamounts since the majority of companies do not withhold from 1099 vendors.
From Release 3.0D, in those cases in which your company does withhold incometaxes from 1099 vendors, use tax codes F0 through F9. These codes are not providedwith SAP R/3; you have to create them to correspond to the predefined codes 01through 10. Example: The last digit of tax code �F� corresponds to the last digit of theassociated predefined code (01 through 10). Tax code F1 corresponds to tax code 01and does the actual withholding (F2 code 02, and so on). Tax code �11� does not havea corresponding �F� code because it relates to state withholding taxes (covered later).
Hint: Only tax codes 01-11 and F1-F9 are hard coded into the 1099 programsRFKQSU20 and RFKQSU30.
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Figure 104: Field Status Groups/Posting Keys
For the withholding tax code fields to be available on the FI document, the field statusgroup of the reconciliation account to which the vendor is assigned must allow dataentry in the tax code fields (see slide).
If your company controls postings via posting keys, the fields for the two tax codesmust be enabled for entries (entries are optional). This is the case for all posting keysthat affect accounts payable (21, 25, 31, and so on).
Hint: You must also set the document entry screen variant to �2� whenconfiguring the company code basic settings.
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Figure 105: Document Change Rules
In the basic settings section of the IMG, you can customize/define rules for changingfields for withholding tax codes in documents.
The standard document change rules in the system allow you to change withholdingtax code fields for all documents before clearing. You can, however, change theserules so that you can change cleared invoices, as long as no part of the invoice amountis withheld when the cleared invoice is paid. On the �Document Change Rule� screen,you can set the �Field Modifiable� indicator and deselect the �Posting Not Closed�indicator in order to allow changes to be made to the withholding tax code field ofa cleared invoice for which no amount was withheld. This applies to both 1099 and1042 processing.
Hint: The posting screen has two withholding tax fields: The field for thewithholding tax code, and the field for the withholding tax base amount.
These rules DO NOT affect withholding tax codes used to post tax amounts (F1-F0);therefore, cleared documents cannot be changed. If the withholding tax code isconfigured such that tax amounts have to be posted and withholding tax informationhas to be changed before reporting, the document has to be reversed. For the majorityof companies that do not deduct tax (01-10), these change rules allow you to changethe fields for withholding tax codes after clearing.
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Figure 106: Vendor Invoice
The withholding tax code from the 1042 vendor master data is used as default in theline item during invoicing. This code can be overwritten at this time, if desired.
The �Withholding Tax Base� and �Withholding Tax Exempt� fields serve separatepurposes. The �Withholding Tax Base� field contains the amount of the line item tobe reported to the IRS. If this field is left blank during invoice posting, the invoiceamount is used as the default. The �Withholding Tax Exempt� field is the amount ofthe line item that you do NOT wish to be reported to the IRS (example: reimbursementof expenses).
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AC205 Lesson: Tax Reporting in the USA
Figure 107: Vendor Payment
The payment of a vendor invoice signifies receipt of income for the vendor; therefore,it is the payment document that is used for 1099 processing. If you post a manualpayment, you can display the withholding tax information for the invoice by choosing:Goto >> Withholding Tax screen.
Figure 108: 1099 Reporting
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There are three separate programs in SAP R/3 for 1099 vendor reporting. Allprograms allow for flexible selections of vendors and company codes. Each report isprogrammed to search first for withholding tax codes 01-11 and F0-F9 in the vendormaster record.
Hint: The name and address of the company (payer) and the TIN (tax IDnumber) for the form and tape are derived from the program parameters andNOT from company code master records.
Figure 109: 1099 State Withholding Tax
You can use RFKQSU30 to display the withholding tax for several states. Release 3.0requires manual calculation of tax amounts for the individual states. These must beentered with the 1099 code 11, as a credit memo.
In certain cases, companies need to report/withhold tax at state level. Each companycan agree with the tax authorities that the tax return at national and state level aresubmitted together. However, this is only possible in certain states (see currentpublications of the relevant tax authority). Unfortunately in many cases, there isno standard percentage rate for withholding tax in individual states (for example,California) and thus the deduction rate can vary from vendor to vendor.
Future releases of SAP R/3 should provide a more comprehensive state withholdingtax program.
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Figure 110: 1042 Business Process
Reporting of 1042 taxes involves amounts paid to foreign vendors or foreignnon-employees. These amounts are classified into 1 of approximately 20 categories(see IRS 1042 publication).
Companies are usually required to withhold/deduct tax from payments to 1042vendors. Companies usually (see current IRS publication for rates) withhold 31% ofthe payment made to this type of vendor. This withheld portion of the invoice amountis later paid over to the tax authorities. Any differences between the tax amountpayable and the amount withheld is handled directly between the 1042 vendor andthe IRS.
1042 taxes have to be reported once a year (in February). The tax return can either bein written form or in the form of a data file. The amounts that have to be reported tothe IRS are only amounts paid to the 1042 vendor between January 1 and December31 of the reporting year.
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Figure 111: Vendor Master Record
A 1042 vendor is configured in two areas of the vendor master record: in the Controland the Accounting information areas.
Hint: Only the withholding tax code and the exemption number are defaultedin the vendor document during processing. The withholding tax country,recipient type, and exemption authority are maintained in the vendor masterrecord and cannot be overwritten during document processing.
Hint: No 1042 vendor may be set up as a one-time vendor, since one-timevendors are excluded from 1042 processing within SAP R/3.
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Figure 112: Vendor Account Groups
To configure the 1042 vendor master record, the account group to which the vendor isassigned must allow data entry in the tax code fields (see slide).
Hint: You should also ensure that the tax code fields have the requiredfield length. Tax code 1 should be 11 characters long and tax code 2, 10characters long. These parameters are set in the Global Settings sectionof the IMG.
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Figure 113: Withholding Tax Code
1042 tax codes are not predefined in SAP R/3 and must be created by the user.
To create these codes (for example, code �42� for deduction and code �43� for exemptfrom deduction), enter the income type in the �Off.W.Tax Code� (official withholdingtax code) field. If withholding tax is to be deducted, you must set the �Posting WithPayment� and �Withholding Tax Formula� indicators.
Hint: No tax code indicators are hard coded in program RFKQSU40.
Hint: If several revenue types are required, you have to create separatewithholding tax codes for each revenue type.
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Figure 114: Field Status Groups/Posting Keys
For the withholding tax code fields to be available on the FI document, the field statusgroup of the reconciliation account to which the vendor is assigned must allow dataentry in the tax code fields (see slide).
If your company controls postings via posting keys, the fields for the two tax codemust be set for possible data entry (that is, have optional entry status). This is the casefor all posting keys that affect accounts payable (21, 25, 31, and so on).
Hint: You must also set the document entry screen variant to �2� whenconfiguring the company code basic settings.
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Figure 115: Document Change Rules
In the basic settings section of the IMG, you can customize/define rules for changingfields for withholding tax codes in documents.
These rules DO NOT affect withholding tax codes used to post tax amounts (F1-F0);therefore, cleared documents cannot be changed. If the withholding tax code isconfigured such that tax amounts have to be posted and withholding tax informationhas to be changed before reporting, the document has to be reversed.
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Figure 116: Withholding Tax Countries
A withholding tax country is the country of the foreign vendor's legal residence. Youenter the reporting country (US) in the left hand column and the withholding taxcountry in the middle column.
Hint: Withholding tax country IDs do not always correspond to ISO 9000standards; these country IDs are defined by the IRS. See IRS publication 1042for a complete list of countries and their correct IDs.
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Figure 117: Type of Recipient for Vendors
You need to ensure that correct recipient types exist for 1042 processing. These codesare entered (when applicable) in the vendor master record.
Hint: DO NOT define revenue types for withholding tax (table T059E),since revenue types for 1042 processing are not currently derived from thisconfiguration table.
1042 revenue types are defined within the withholding tax codes themselves.
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Figure 118: Withholding Tax Formulas
The six columns in this table are:
� 1. Country: Reporting Country (US)� 2. Currency: Tax currency� 3. Withholding Tax ID: Withholding tax code (42, 43)� 4. Withholding Tax Country Key: Country key of 1042 vendor.� 5. To Base Amount: Base amount up to which the withholding tax rate is valid� 6. Withholding Tax: Withholding tax rate that is used, together with the base
amount, to calculate the withholding tax amount.
Hint: If you withhold withholding tax, you have to enter a rate in column 6.If a withholding tax code (for example, 43) is exempt from deduction for aspecific reason, do not enter a rate in column 6 (leave blank).
Although certain vendors are exempt from actual deduction of income taxes (see the�Exemption Authorization� field in the vendor master), the company payer still has toreport amounts paid to the IRS (similar to a 1099 vendor), as well as the exemptionreason. This means that invoices from 1042 vendors that are subject to withholdingtax and those that are not are processed in the same way. The only difference is thatin the vendor master record of the vendor not subject to tax, a value is entered in the�Exemption Authority� field.
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Figure 119: Automatic Posting (Withholding Tax)
Here, you define the rules, posting keys, and G/L accounts for automatically postingthe tax withheld.
This configuration must be completed before you can automatically deduct and postwithholding tax from 1042 vendors
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Figure 120: Vendor Invoice
The withholding tax code from the 1042 vendor master data is used as default in theline item during invoicing. This code can be overwritten at this time, if desired.
The �Withholding Tax Base� and �Withholding Tax Exempt� fields serve differentpurposes. The �Withholding Tax Base� field contains the amount of the line item tobe reported to the IRS. If this field is left blank during invoice posting, the invoiceamount is used as the default. The �Withholding Tax Exempt� field is the amount ofthe line item that you do NOT wish to report to the IRS (example: reimbursementof expenses).
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Figure 121: Vendor Payment
The payment of a vendor invoice signifies receipt of income for the vendor; therefore,it is the payment document that is used for 1042 processing. If you post a manualpayment, you can display the withholding tax information for the invoice by choosing:Goto→ Withholding Tax Screen..
Figure 122: 1042 Reporting
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There are three separate programs in SAP R/3 for 1042 vendor reporting. Allprograms allow for flexible selections of vendors and company codes. Each report isprogrammed to search first for withholding tax codes 01-11 and F0-F9 in the vendormaster record.
Hint: The company (payer) name, address and tax ID (TIN information foreach vendor master record) for form and tape are derived from the companycode master records. The header record for tapes are derived from theprogram parameters. The name of the alternative payer the tax ID (TIN) arealso derived from program parameters.
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275 Exercise 17: 1099/1042 Processing (USA)Exercise Duration: 10 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Modify a vendor for 1099 processing� Post a business transaction subject to 1099 reporting� Identify the 1099 reports
Business ExampleOne of your company codes, 3000, is a US company. For year-end closing, you haveto process withholding tax information for 1099 vendors.
Task:Create a 1099 vendor invoice and generate the associated 1099 reports
1. Your vendor, TE-AC##, has not been established as a 1099 vendor. Before youcan make the posting, you have to enter 111-11-111 in the Tax Code - 1 field inthe vendor master record. You also have to enter 07 in the W. Tax Code field inthe vendor master record so that 1099 taxes can be processed for the vendor.
2. Enter an invoice for today's date for your vendor TE-AC## in company code3000. The expense amount is USD 5000, which will be charged to account476000 (Office supplies) and cost center 1000 (Corporate Services). Set theCalculate Tax indicator and enter I0 (A/P sales tax, exempt) as the tax code.
3. Post a manual payment document for your vendor invoice. The payment amountis USD 5000. The credit will be posted to cash account 113101 (Citibank -checks payable).
4. Now execute the required 1099 reports
Hint: You might have to scroll down the screen to review reportinformation.
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Solution 17: 1099/1042 Processing (USA)Task:Create a 1099 vendor invoice and generate the associated 1099 reports
1. Your vendor, TE-AC##, has not been established as a 1099 vendor. Before youcan make the posting, you have to enter 111-11-111 in the Tax Code - 1 field inthe vendor master record. You also have to enter 07 in the W. Tax Code field inthe vendor master record so that 1099 taxes can be processed for the vendor.
a) Create a 1099 vendor invoice and execute the associated 1099 reports
Change vendor master
Menu path to change vendor master record:
Accounting→ Financial Accounting→ Vendors→ Master Records→Change
Enter the following data:
Vendor: TE-AC##
Company Code: 3000
On the master record initial screen, set the Control indicator in the GeneralData section and the Accounting Info indicator in the Company CodeData section.
Choose 'Enter'.
In the Tax Number 1 field, enter 111-11-1111.
Choose 'Enter'.
In theW. Tax Code field, enter 07.
Save your changes to the vendor master record.
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2. Enter an invoice for today's date for your vendor TE-AC## in company code3000. The expense amount is USD 5000, which will be charged to account476000 (Office supplies) and cost center 1000 (Corporate Services). Set theCalculate Tax indicator and enter I0 (A/P sales tax, exempt) as the tax code.
a) Enter vendor invoice
Menu path for invoice entry:
Accounting→ Financial Accounting→ Vendors→ Document Entry→Invoice
The 'Enter Company Code' dialog box may appear automatically. If it doesnot, choose 'Change Leading Company Code'.
Enter 3000 in the 'Company Code' field.
Enter the following data:
Vendor: TE-AC##
Invoice Date: Today's date
Amount: 5000
Calculate Tax: X
Tax Code: I0 (A/P tax exempt)
Choose the 'Withholding Tax' tab page. Enter 5000 in theW. Tax Basefield.
In the first item line, enter the following data:
G/L Acct: 476000
D/C: Debit
Amount in Doc.Curr.: 5000
Cost Center: 1000
Post your document.
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3. Post a manual payment document for your vendor invoice. The payment amountis USD 5000. The credit will be posted to cash account 113101 (Citibank -checks payable).
a) Post manual payment document
Menu path for manual payment:
Accounting→ Financial Accounting→ Vendors→ Document Entry→Outgoing Payment→ Post
Enter the following data:
Document Date: Today's date
Company Code: 3000
'Bank Data' section:
Account: 113101
Amount: 5000
'Open Item Selection' section:
Account: TE-AC##
Choose Process Open Items at the top of the screen.
If all the open items are inactive when you call up the function, double-clickan open item to select it.
Post your payment document.
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4. Now execute the required 1099 reports
Hint: You might have to scroll down the screen to review reportinformation.
a) Now create the required 1099 reports
Menu Path for 1099 reports:
Accounting→ Financial Accounting→ Vendors→ Withholding Tax→USA
Double-click the report you want to view, for example, Postcard Printout of1099 Vendor Addresses for Tax Code Request.
Data required for the three 1099 reports:
Vendor Account: TE-AC##
Company Code: 3000
Clearing Date: 01/01/Current year
To: 12/31/Current year
Execute.
You might need to enter the following data to run your report:
Output Device: Provided by the instructor.
Print Immediately: X
Delete After Output: X
Choose 'Print Preview'.
Repeat steps for remaining reports.
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Lesson Summary
You should now be able to:� Describe the 1099/1042 business process� Locate the Customizing settings for withholding tax codes and 1099/1042
outputs� Use withholding tax during invoicing and payment� Create a tax return
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AC205 Lesson: Tax Reporting in Germany
Lesson:281
Tax Reporting in GermanyLesson Duration: 15 Minutes
Lesson OverviewThis lesson describes the country-specific settings for tax reporting in Germany.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Create a return for tax on sales and purchases� Locate the Customizing settings for automatic posting to the tax payable account
during execution of the program RFUMSV00
For more information, see the Instructor Guide on SAPNet.
Business ExampleAs a member of the FI project team, you have to check whether the standard taxreports in SAP R/3 meet the requirements in Germany.
Figure 123: Reporting
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A variety of reports are currently available to support the reporting procedure. Thesereports also meet the country-specific requirements. There is a list of country-specificreports for carrying out the tax return on tax on sales/purchases, support for EC saleslists, and additional reports for covering other legal reporting obligations (for example,in accordance with the German Foreign Trade Regulations).
Figure 124: Tax Return and Postings
Report RFUMSV00 creates the advance return for tax on sales and purchases, and, ifrequired, also creates a batch input session for the automatic transfer posting of taxpayable.
The report output can be displayed at line item level for each tax type (input andoutput tax).
When the system creates the batch input session for the automatic tax payable transferposting, it generates one document for each company code selected. For each taxaccount, this document contains one item for posting to the tax account and one itemfor posting to the tax payable account.
New from Release 4.6C: The tax payable transfer posting can be posted to a vendoraccount. For the chart of accounts used, assign the corresponding vendor account tothe transaction key �UMS�. In this case, the posting keys assigned to the transactionkey �UMS� must be defined for postings to vendor accounts.
You can configure the layout of the output lists to meet your requirements. You canuse the functions of the ABAP List Viewer to do this.
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Figure 125: Advance Return for Tax on Sales/Purchases (Germany)
If you want to generate a single tax return for multiple company codes, you cancombine the company codes into a tax on sales/purchases group. Tax amounts can beprinted on a form.
Each tax base amount group represents one item on the advance tax return form. Thetax balances of the tax base amounts are entered in this item.
If the amount for a specific combination is also required split into subtotals, carryforwards, and end totals, enter the additional groups involved here.
In addition, you can create your tax return for tax on sales/purchases in the form of aDTA file and then send it to the tax authorities (by e-mail, for example). The programprepares a summarized version of the tax data and can output it either in XML formator as a flat file.
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285 Exercise 18: Germany: Tax ReportingExercise Duration: 5 Minutes
Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a tax return for Germany
Business ExampleYour company code AC## is in Germany and is required to produce standard monthlyreporting for taxes.
Task:Carry out the following task.
1. As part of monthly reporting, you have to report the tax relevant data to the taxauthorities. Execute the Advance return for tax on sales/purchases report forGermany (RFUMSV00) for postings made during the current period and fiscalyear in your company code AC##. Specify posting parameters to create a batchinput session, TAX##, to post the transaction to the first day of the next periodand record a due date of the 10th of the next period. Use document type SA forthe posting. Process the resulting batch input session (foreground) to generatethe posting to the General Ledger. Processing is complete when you receive themessage 'Batch input processing completed'.
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Solution 18: Germany: Tax ReportingTask:Carry out the following task.
1. As part of monthly reporting, you have to report the tax relevant data to the taxauthorities. Execute the Advance return for tax on sales/purchases report forGermany (RFUMSV00) for postings made during the current period and fiscalyear in your company code AC##. Specify posting parameters to create a batchinput session, TAX##, to post the transaction to the first day of the next periodand record a due date of the 10th of the next period. Use document type SA for
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the posting. Process the resulting batch input session (foreground) to generatethe posting to the General Ledger. Processing is complete when you receive themessage 'Batch input processing completed'.
a) Create advance return for tax on sales and purchases
Menu path for general tax reporting:
Accounting→ Financial Accounting→ General Ledger→ Reporting→Tax Reports→ General→ Advance Return for Tax on Sales/Purchases→ Advance Return for Tax on Sales/Purchases
Enter the following data:
Company Code: AC##
Fiscal Year: Current year
Posting Date: First day of the current period
To: Last day of the current period
Choose:
Tax payable posting, and enter the following information:
Batch Input Session Required: X
Posting Document Type: SA
Posting Date: First day of next period
Due Date of the Tax Payable: Day 10 of next period
Session Name: TAX##
Execute the program.
Menu path for batch input session:
System→ Services→ Batch Input→ Sessions. Select your session andchoose Process.
Select Process/Foreground and click Process.
Press 'Enter' to move through the posting screens.
Choose Exit to confirm the �Batch input processing completed�message.
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Lesson Summary
You should now be able to:� Create a return for tax on sales and purchases� Locate the Customizing settings for automatic posting to the tax payable account
during execution of the program RFUMSV00
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AC205 Lesson: Tax Reporting in the European Union
Lesson:289
Tax Reporting in the European UnionLesson Duration: 30 Minutes
Lesson OverviewThis lesson describes the country-specific settings for tax reporting in the EU.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Analyze data relevant to European tax reporting� Locate Customizing for tax reporting for the European Union.� Create an EC sales list according to European Union requirements
For more information, see the Instructor Guide on SAPNet.
Business ExampleYour company has business relationships with companies in EU states. As a memberof the FI project team, you have to check whether the standard tax reports in SAPR/3 meet European Union requirements.
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Figure 126: Single European Market
Figure 127: Example: Acquisition Tax Code
The tax code serves as the account determination key for the document.
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Due to assignments in the calculation procedure, the system:
� Calculates the tax amount for you (if requested)� Checks tax amounts that were assigned manually� Creates tax posting items automatically.
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Facilitated Discussion
Discussion QuestionsUse the following questions to engage the participants in the discussion. Feel free touse your own additional questions.
Discuss how an EU triangular deal is mapped in SAP R/3.
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AC205 Lesson: Tax Reporting in the European Union
Lesson Summary
You should now be able to:� Analyze data relevant to European tax reporting� Locate Customizing for tax reporting for the European Union.� Create an EC sales list according to European Union requirements
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Lesson:292
Reporting in Accordance with German Foreign TradeRegulationsLesson Duration: 120 Minutes
Lesson OverviewZ1, Z4, Z5a notifications
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Perform reporting in accordance with the German foreign trade regulations.
For more information, see the Instructor Guide on SAPNet.
Business ExampleAs a member of the FI project team, you have to check whether the reports in SAPR/3 meet the requirements of the German foreign trade regulations.
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AC205 Lesson: Reporting in Accordance with German Foreign Trade Regulations
Figure 128: Foreign Trade
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Facilitated Discussion
Discussion QuestionsUse the following questions to engage the participants in the discussion. Feel free touse your own additional questions.
Discuss the ways in which data can be transferred to the state central bank.
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Lesson Summary
You should now be able to:� Perform reporting in accordance with the German foreign trade regulations.
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Lesson:294
ConsolidationLesson Duration: 30 Minutes
Lesson OverviewThis lesson provides an overview of the pre-closing activities in Financial Accountingfor group accounting.
Lesson ObjectivesAfter completing this lesson, you will be able to:
� Describe the preparations for consolidation in Financial Accounting
For more information, see the Instructor Guide on SAPNet.
Business ExampleAs a member of the FI project team, you have been asked to explain how groupaccounting is supported by SAP R/3.
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AC205 Lesson: Consolidation
Figure 129: Individual Financial Statement Data as a Basis for Consolidation
The individual financial statements of all associated companies forms the basis forconsolidation.
All the financial statements from a company are reported in the consolidation chartof accounts (similar to the group's standard chart of accounts). From a businessperspective, this results in a set of aggregated financial statements that comprise theindividual financial statements of all the companies in the group.
These aggregated financial statements contain a large number of itemized valuesthat are merely the result of an exchange of services within the group. These valuesmust not be included in the balance sheet, since an external third-party cannotform a realistic picture of the real financial strength and performance of the group.Comparisons cannot be made with other groups until all of the group-internal valueshave been eliminated.
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Example:
� Company A holds 100% of the shares in company B. EUR 800 was paid forthese shares.
� The current assets of company A are assessed in the individual financialstatements at EUR 500, EUR 100 of which can be attributed to deliveries of rawmaterials from company B.
� Company B reports a receivable to the amount of EUR 100 (for delivery of rawmaterials to company A). Company A, in return, reports a payable to the amountof EUR 100 for the purchase of raw materials from company B.
Figure 130: Elimination of IC Payables & Receivables
The economic unit concept, however, states that the consolidated balance sheet cannotinclude payables and receivables from companies within the same group. The balancesheet value in the individual financial statements is due to the legal independence ofthe internal trading partners. The consolidation activity 'Elimination of intercompanyunit payables and receivables' eliminates group-internal financial relationships (§303German Commerical Code).
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This activity includes the following:
� Down payments made, down payments received for purchase orders� Receivables from affiliated companies, payables to affiliated companies� Bills of exchange receivable, bills of exchange payable to affiliated companies� Prepayments and accrued income/accrued expenses and deferred income
In practice, the elimination of IC payables and receivables results in eliminationdifferences, which are due to different valuation approaches (real eliminationdifferences) or different posting periods (statistical elimination differences).
In the following example, the receivables of company B (for partner company A) areeliminated by the payables of company A (with partner company B).
Figure 131: Elimination of IC Profit and Loss in Current Assets
Assets that fully or partially involve deliveries or services provided by the companiesincluded in the consolidated financial statements have to be reported with the amountat which they would be reported if the internal trading partners were a single legallyindependent company. (§304 Para. 1 German Commercial Code) All intercompanyprofits/losses have to be adjusted.
The group production costs are calculated according to the reporting options pursuantto §255 Para. 2 of the German Commercial Code.
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Example:
� Company B supplies raw materials to company A. These raw materials arenot consumed on the balance sheet key date and are stored in company A'swarehouse. Company B produced the raw materials at EUR 80 and sold them topartner A at a profit of EUR 20.
� The raw materials, therefore, have to be adjusted to the cost of production ofEUR 80. In turn, the profit from the sale of the raw materials is adjusted atcompany B.
Figure 132: Consolidation of Investments
The aggregated financial statements include the assets, liabilities, adjusting entries,and entire equity capital of the parent company and all its subsidiaries.
For this reason, the aggregated balance sheet includes the company's interest in thesesubsidiaries as well as the assets of the subsidiaries. From the group's perspective, itsinterest in the subsidaries and the assets that represent this are the same thing. Thesubsidiary's assets and the parent company's interest in these subsidiaries are twosides of the same coin.
As part of the consolidation of investments, the parent company's interest has to beoffset against the subsidiaries' equity. Any differences between the interest and equityfirst have to be checked for hidden reserves and goodwill. (In general, the questionof whether the differential can be divided among individual complex fixed assetsmust be clarified).
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AC205 Lesson: Consolidation
Example:
� In our scenario, it is assumed that the differential cannot be divided amongindividual complex fixed assets. The goodwill is the price paid for the acquiredcustomer base, the motivated employees, the market position, and the propensityfor innovation of subsidiary B.
� The equity of subsidiary B to the amount of 300 is eliminated against parentcompany A's interest of 800. For parent company A, the differential is reportedas 500.
Figure 133: Consolidated Balance Sheet
The consolidation process results in the consolidated balance sheet.
The assets and liabilities of all the affiliated internal trading partners are summarizedin the consolidated balance sheet.
All the service and activities exchanged between the companies in the group areeliminated.
This enables external third-parties to compare the group with competitors from thesame industry. The group's real financial strength and performance can be derivedfrom the consolidated balance sheet, and is not obscured by the exchange of serviceswithin the group.
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Unit 7: Additional Material AC205
The SAP consolidation software eliminates the relevant transactions in a seriesof tasks. These tasks can be tailored to suit the customer's requirements. Theconsolidation process is carried out in a monitor that comprises all the tasks thathave to be carried out by the end user.
In SAP Consolidation, different accounting principles (U.S. GAAP, IAS, GermanCommercial Code) and management consolidation approaches can be modeled (forthe object profit center, for example).
You can use the flexible reporting function provided by the Business InformationWarehouse to evaluate your consolidated data.
Standard reports (balance sheet, income statement, asset history sheet) are alreadyincluded in the Business Content. These reports can be quickly adapted to thecustomer system.
Web Reporting in BW allows users to access reports from any system or locationusing the Internet Explorer.
Figure 134: SAP SEM Strategic Enterprise Management
The SEM database uses OLAP structures from the SAP Business InformationWarehouse. This can be the actual SEM system instance itself or a remote SAP BWthat, in addition to the SEM database, also contains additional data.
Multidimensional OLAP analyses using the Business Explorer include:
Microsoft Excel spreadsheets, including formatting, Web reports, free drilldowns,slice & dice
316 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Lesson: Consolidation
KPI reporting based on interpretation models includes:
� Measure Builder
Database with business-oriented tasks serves as the infrastructure for theSEM-CPM interpretation models.
� Measure Tree Display
Interpretation model that illustrates the impact of operative value drivers onthe KPIs with strategic significance.
� Balanced Scorecard (interpretation model)
Models strategies, implements them, and measures their effectiveness by linkingthem to the correct KPIs. The Balanced Scorecard is part of the ManagementSystem.
� Management Cockpit (interpretation model)
Provides an effective means of graphically presenting KPIs online and/or onwalls in conference rooms, thus increasing the efficiency of managementcommunication.
Figure 135: SAP SEM - Business Consolidation
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Unit 7: Additional Material AC205
Figure 136: Correlation Between Consolidation Areas, Data Basis, and DataStream
Data Model The data basis defines the consolidation data model, that is, thecharacteristics and key figures, as well as their role in consolidation. The consolidationarea can work with a subset of the characteristics and key figures that exist in thedata basis.
If additional characteristics (such as characteristics from a management consolidationperspective) are required after the initial creation of the data basis, they first haveto be created in the InfoCube.
Data Streams
The data streams identify where the consolidation data is stored.
There is exactly one RFC destination in BW that contains the consolidation masterand transaction data. If you do not specify an RFC destination, the system client inwhich the SEM system is located is the RFC destination.
318 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Lesson: Consolidation
Figure 137: Consolidation Monitor
The consolidation monitor provides a graphical overview of the consolidation unitsand/or consolidation groups and tasks.
This is the central working environment for
� Executing tasks (for collecting the overall reported data, standardizing thereported data, and consolidation processing)
� Monitoring the process of task processing for individual consolidation unitsand groups.
The consolidation monitor is structured in the form of a matrix. The standardorganizational unit and task hierarchies are arranged as follows:
� The consolidation monitor displays the organizational unit hierarchies in rows� The consolidation monitor displays the task hierarchies (with task groups and
tasks) in columns.
For each node in the organizational unit hierarchy, you can see the status of the taskgroups and the tasks.
A key (in the menu of the consolidation monitor) explains the meaning of the colorsand icons or text used.
2005/Q2 © 2005 SAP AG. All rights reserved. 319
Unit 7: Additional Material AC205
Figure 138: Intercompany Elimination
Eliminations are always posted in pairs. To enable the system to eliminate IC tradingpartner relations, therefore, you need to enter the relevant financial statement itemdata using trading partner account assignments.
The hierarchy information is taken into account with each posting. Only companiesin Europe are affiliated companies at consolidation group level. The Japanese groupsubsidiary is considered a third-party at "Europe" level. The data records of thereceivables/payables vis-à-vis the Japanese company are displayed at "Europe" grouplevel in reporting.
At �world� level, all companies in the group are affiliated companies. IC tradingpartner relations are only fully eliminated at this level. The receivables/payables ofthe European company vis-à-vis the Japanese company are also displayed at this level.
Examples of working with different hierarchies in a consolidation area:
� Regional structure of the group� Company A and companies B and C in a separate hierarchy
320 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Lesson: Consolidation
Figure 139: SAP Consolidation - Products and Strategy
Figure 140: SEM-BCS - Roadmap of New Releases
2005/Q2 © 2005 SAP AG. All rights reserved. 321
Unit 7: Additional Material AC205
Figure 141: Migration Options for EC-CS and FI-LC Customers
Figure 142: Links to SAPNet (alias: /SEM)
322 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Lesson: Consolidation
Facilitated Discussion
Discussion QuestionsUse the following questions to engage the participants in the discussion. Feel free touse your own additional questions.
2005/Q2 © 2005 SAP AG. All rights reserved. 323
Unit 7: Additional Material AC205
Lesson Summary
You should now be able to:� Describe the preparations for consolidation in Financial Accounting
324 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Unit Summary
Unit SummaryYou should now be able to:� List the main advantages offered by new General Ledger Accounting� Locate the general Customizing settings for tax processing within the IMG.� Describe the 1099/1042 business process� Locate the Customizing settings for withholding tax codes and 1099/1042
outputs� Use withholding tax during invoicing and payment� Create a tax return� Create a return for tax on sales and purchases� Locate the Customizing settings for automatic posting to the tax payable account
during execution of the program RFUMSV00� Analyze data relevant to European tax reporting� Locate Customizing for tax reporting for the European Union.� Create an EC sales list according to European Union requirements� Perform reporting in accordance with the German foreign trade regulations.� Describe the preparations for consolidation in Financial Accounting
2005/Q2 © 2005 SAP AG. All rights reserved. 325
Course Summary AC205
Course SummaryYou should now be able to:
� Locate closing activities within Customizing� Identify, execute, and analyze programs and reports essential for individual
account closing
326 © 2005 SAP AG. All rights reserved. 2005/Q2
Appendix 1Checklists
MONTH-END CLOSING ACTIVITIESPRE-CLOSING ACTIVITIESAREA PATH TASK MONTH NOTESHR #57 Payroll posting OldMM #12-13 Maintain GR/IR
clearing accountsOld Continuous
G/L #43-44 Accrual/deferralpostings
Old
FI #45 Recurring entries OldSD � Goods issues/invoices Old Check that all postings
for the period havebeen generated
FI #63 Open new period OldAA #5
48- Depreciationcalculation
- Interest
- AUC settlement
New Settle assets underconstruction (AUC)to assets in service
MM #14-15 Material valuations New As requiredMM #17 Close material ledger New
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Appendix 1: Checklists AC205
MM #18-19 Close material master New If postings arepermitted before theperiod end, closingcan be carried outbefore the period end
AR/AP #63 Close old period New After the closingentries in the G/L
FI #63 Temporarily close oldperiod
New After the closingentries in the G/L
The # symbol in front of the numbers in the �Path� column refers to the numberof the activity in the list of menu paths.
MONTH-END CLOSING ACTIVITIESMANAGERIAL CLOSINGAREA PATH TASK MONTH NOTESFI/CO -- Preliminary reporting NewCO #51 Cost centers:
- Imputed costs
- Distribution andassessment
- Indirect activityallocation
- Calculate actualactivity prices andupdate allocations
New
CO #47, 50 Internal orders
- Overheads
- Settlement
New Can settle severaltimes in a period
For externalsettlement to AAor FI, re-openappropriate G/Laccounts
328 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Appendix 1: Checklists
CO/PP #49 Production orders
- Overheads
- WIP calculation
- Variance calculation
- Settlement
New After cost centerand internal orderallocations asrequired
Re-open appropriateG/L accounts forsettlement
CO #52 Profitability analysis
- Cost center assessments
- Activity-based costingallocations
New
CO #53 Lock Controllingtransactions
New May lock each trans.type as completed orentire period
MONTH-ENDCLOSINGACTIVITIESEXTERNAL CLOSING
AREA PATH TASK MONTH NOTESFI #63 Re-open periods for
adjustmentsNew
FI/CO #54-55 CO/FI reconciliationpostings
New Cross-companycode, cross-businessarea, andcross-functional areaflows within CO areposted to FI
FI #39 Foreign currency openitem valuation
New
G/L #43 Foreign currency balancesheet account valuation
New
FI/ PCA #67-70 Balance sheet adjustment NewFI/CO-PA
#71 Profit and lossadjustment
New
FI #63 Final closing activities New
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Appendix 1: Checklists AC205
FI/CO #72
#2-4
#82
--
Final reporting:
- Compact documentjournal
- Financial statements
- Taxes onsales/purchases
- Internal report
New
FI #74-75 Balance audit trail New
Year-End Closing Activities
YEAR-END CLOSING ACTIVITIESPRE-CLOSING ACTIVITIESAREA PATH TASK MONTH NOTESFI #63 Open new fiscal year OldMM #25 Physical inventory
procedureOld Year-end or as
requiredCO/PP #15 Material valuation
from new material costestimates
Old Year-end or asrequired
AR/AP #29 Balance confirmations OldAA #8 Fiscal year change Old Cannot perform
prior to final postingperiod of old year
FI #64 Balance carryforward OldMM #19-24 Inventory valuations
- Lowest valuedetermination, LIFO,FIFO
New After closing thepostings in MM forthe fiscal year
330 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Appendix 1: Checklists
AA � - Valuations
- Capital investmentsubsidies
New After closing thepostings in AA forthe fiscal year
AA #9-10 Year-end closing New After AA fiscalyear changeand depreciationpostings completed
AR/AP #63 Close fiscal year New
YEAR-END CLOSING ACTIVITIESEXTERNAL CLOSINGAREA PATH TASK MONTH NOTESFI #26-27 Analyze GR/IR postings NewFI #40-41 Regroup
receivables/payablesNew
FI � General adjustments NewFI #63 Final fiscal year closing NewG/L � Account balances - old
fiscal year to new fiscalyear
New Reconcile carryforward balancesw/prior year finalbalances
FI/CO/AA #10 Final reporting:
Same as month-endclosing plus:
- Account balances(year-end)
- Asset history sheet
New
FI #76-79 Accumulated balanceaudit trail
New
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Appendix 2Menu Paths
Activity Menu Path Trans.Unit 2 � The Financial Statements
1. Define financial statementversions
IMG→ Financial Accounting→ General Ledger Accounting→ Business Transactions →Closing → Documenting →Define Financial StatementVersions
OB58
2. Create a balance sheet(RFBILA00) Information Systems →
Accounting → FinancialAccounting→ General Ledger→ Balance Sheet
or
Accounting → FinancialAccounting→ General Ledger→ Information System →General Ledger Reports →Balance Sheet/ Profit andLoss Statement/ Cash Flow→ General → Actual/ActualComparisons→ Balance Sheet/Profit and Loss Statement
F.01
S_ALR_87012284
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Appendix 2: Menu Paths AC205
Activity Menu Path Trans.3. Create a balance Sheetdrilldown report
Accounting → FinancialAccounting→ General Ledger→ Information System →General Ledger Reports →Balance Sheet/ Profit andLoss Statement/ Cash Flow→General→ ....
Various
Unit 3 � Fixed and Current Assets4. Execute depreciation run Accounting → Financial
Accounting → Fixed Assets→ Periodic Processing →Depreciation Run→ Execute
AFAB
5. Determine investment grant Accounting → FinancialAccounting → Fixed Assets→ Periodic Processing →Investment Grant
AR11N
6. Post revaluation Accounting → FinancialAccounting → Fixed Assets→ Periodic Processing →Revaluation for the BalanceSheet→ Post Revaluation
AR29
7. Fiscal year change (AA) Accounting → FinancialAccounting→ Fixed Assets→Periodic Processing→ FiscalYear Change
AJRW
8. Fiscal year change (AA) �account reconciliation
Accounting → FinancialAccounting → Fixed Assets→ Periodic Processing →Year-End Closing Run →Account Reconciliation
ABST2
9. Year-end closing (AA) Accounting → FinancialAccounting → Fixed Assets→ Periodic Processing →Year-End Closing→ Execute
AJAB
334 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Appendix 2: Menu Paths
Activity Menu Path Trans.10. Create asset history sheet Accounting → Financial
Accounting→ Fixed Assets→Information System→ Reportson Asset Accounting→ Notesto Financial Statements →International→ Asset HistorySheet
or
Accounting → FinancialAccounting→ Fixed Assets→Information System→ Reportson Asset Accounting→ Notes toFinancial Statements→ CountrySpecifics→ ...
S_ALR_87011990
Various
11. Create list of GR/IR accountbalances
Logistics → MaterialsManagement → InventoryManagement→ Environment→ Balances Display→ List ofGR/IR Balances
MB5S
12. Maintain GR/IR clearingaccounts
Logistics → MaterialsManagement → LogisticsInvoice Verification→ GR/IRAccount Maintenance →Maintain GR/IR ClearingAccount
MR11
13. Material valuations � pricechanges (manual)
Logistics → MaterialsManagement → Valuation→ Change in Material Price→Change Material Prices
MR21
14. Material valuations �debit/credit material
Logistics → MaterialsManagement → Valuation→ Change in Material Price→Debit/Credit Material
MR22
15. Product costing material priceupdate
Accounting → Controlling→ Product Cost Controlling→ Product Cost Planning→Material Costing → PriceUpdate
CK24
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Appendix 2: Menu Paths AC205
Activity Menu Path Trans.16. Material ledger closing Logistics → Materials
Management → Valuation→ Actual Costing/MaterialLedger → Periodic MaterialValuation→ Post Closing
CKMI
17. Close periods in MaterialsManagement
Logistics → MaterialsManagement → MaterialMaster → Other → ClosePeriod
MMPV
18. Materials managementclosing � control posting toprevious period
Logistics → MaterialsManagement → MaterialMaster → Other → AllowPosting to Previous Period
MMRV
19. Determine lowest value �market prices
Logistics → MaterialsManagement → Valuation→ Balance Sheet Valuation→Determination of Lowest Value→ Market Prices
MRN0
20. Determine lowest value �range of coverage
Logistics → MaterialsManagement → Valuation→ Balance Sheet Valuation→Determination of Lowest Value→ Range of Coverage (Days�Supply)
MRN1
21. Determine lowest value �movement rate
Logistics → MaterialsManagement → Valuation→ Balance Sheet Valuation→Determination of Lowest Value→ Movement Rate
MRN2
22. Determine lowest value �loss-free valuation
Logistics → MaterialsManagement → Valuation→ Balance Sheet Valuation→Determination of Lowest Value→ Loss-Free Valuation
MRN3
23. LIFO valuation Logistics → MaterialsManagement → Valuation→ Balance Sheet Valuation→LIFO Valuation
various
336 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Appendix 2: Menu Paths
Activity Menu Path Trans.24. FIFO valuation Logistics → Materials
Management → Valuation→ Balance Sheet Valuation→FIFO Valuation
Various
25. Process physical inventory Logistics → MaterialsManagement → PhysicalInventory→ �
Various
26. Analyze GR/IR clearingaccounts and display acquisitiontax
Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing→ Regroup→ GR/IRClearing
F.19
27. Define adjustment accountsfor GR/IR clearing
IMG→ Financial Accounting→ General Ledger Accounting→ Business Transactions →Closing → Regrouping →Define Adjustment Accounts forGR/IR Clearing
OBYP
Unit 4 � Receivables and Payables28. Print balance confirmation Accounting → Financial
Accounting → AccountsReceivable or Accounts Payable→ Periodic Processing →Closing → Check/Count →Balance Confirmation: Print
or
Accounting → FinancialAccounting → AccountsReceivable or Accounts Payable→ Periodic Processing→ PrintCorrespondence → BalanceConfirmation→ Print Letters
F.17
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Appendix 2: Menu Paths AC205
Activity Menu Path Trans.29. Configure balanceconfirmation
Accounting → FinancialAccounting → AccountsReceivable or Accounts Payable→ Periodic Processing →Closing→ Check/Count→ ...
or
Accounting → FinancialAccounting → AccountsReceivable or Accounts Payable→ Periodic Processing→ PrintCorrespondence → BalanceConfirmation→ ...
F.1B, F.1A
30. Post individual valueadjustment
Accounting → FinancialAccounting → AccountsReceivable→ Document Entry→ Internal Transfer Posting→Without Clearing
F-21
31. Define account determinationfor flat-rate individual valueadjustment
IMG→ Financial Accounting→ Accounts Receivable andAccounts Payable→ BusinessTransactions → Closing →Valuate→ Valuations→ DefineAccounts
OBB0
32. Configure flat-rate individualvalue adjustment
IMG→ Financial Accounting→ Accounts Receivable andAccounts Payable→ BusinessTransactions → Closing →Valuate→ Valuations ...
SPRO
33. Execute flat-rate individualvalue adjustment
Accounting → FinancialAccounting → AccountsReceivable → PeriodicProcessing → Closing →Valuate→ Further Valuations
F107
34. Write-off doubtful receivables Accounting → FinancialAccounting → AccountsReceivable→ Document Entry→ Other →Transfer WithClearing
F-30
338 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Appendix 2: Menu Paths
Activity Menu Path Trans.35. Customize exchange rates IMG → General Settings →
Currencies→ ..Various
36. Maintain exchange rates Accounting → FinancialAccounting→ General Ledger→ Environment → CurrentSettings → Enter TranslationRates
OB08
37. Define valuation methods IMG→ Financial Accounting→ General Ledger Accounting→ Business Transactions →Closing→ Valuating→ ForeignCurrency Valuation→ DefineValuation Methods
OB59
38. Valuate foreign currency openitems and balance sheet accounts
Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing→ Valuate→ ForeignCurrency Valuation
F.05
39. Account determination forexchange rate differences
IMG→ Financial Accounting→ General Ledger Accounting→ Business Transactions →Closing→ Valuating→ ForeignCurrency Valuation→ PrepareAutomatic Postings for ForeignCurrency Valuation
OBA1
40. Regroup receivables andpayables
Accounting → FinancialAccounting → AccountsReceivable or AccountsPayable→ Periodic Processing→ Closing → Regroup →Receivables/Payables
F101
41. Account determinationfor regrouping receivables andpayables
IMG→ Financial Accounting→ Accounts Receivable andAccounts Payable→ BusinessTransactions → Closing →Regroup→ ...
OBBV,OBBW,OBBX
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Appendix 2: Menu Paths AC205
Activity Menu Path Trans.42. Valuate foreign currencybalance sheet accounts (see 39)
Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing→ Valuate→ ForeignCurrency Valuation
43. Accrual/deferral postings Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing → Valuate → EnterAccrual/Deferral Doc.
FBS1
44. Post accrual/deferral reversal Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing→ Valuate→ ReverseAccrual/Deferral Document
F.81
45. Create posting documentsfrom recurring entry documents
Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Recurring Entries→ Execute
F.14
Unit 5 � Profit and Loss46. Execute a cost-of-sales profitand loss report
Accounting → FinancialAccounting→ General Ledger→ Information System →General Ledger Reports →Balance Sheet/ Profit andLoss Statement/ Cash Flow→General→ ....
Various
47. Capital investment projects �settle order to AUC
Accounting → InvestmentManagement→ Internal Orders→ Period-End Closing→ SingleFunctions→ Settlement→ ...
Various
48. Capital investment projects �settle AUC to asset in service
Accounting → InvestmentManagement→ Fixed Assets→Posting→ Capitalize Asset u.Const. → Settle
AIBU
340 © 2005 SAP AG. All rights reserved. 2005/Q2
AC205 Appendix 2: Menu Paths
Activity Menu Path Trans.49. PP/CO period-end closing Logistics → Production
→ Production Control →Period-End Closing → � orAccounting → Controlling→ Product Cost Controlling→ Cost Object Controlling→ Product Cost by Order→Period-End Closing→ SingleFunctions→ �
Various
50. Period-end closing forinternal orders
Accounting→ Controlling→Internal Orders→ Period-EndClosing→ Single Functions→...
Various
51. Period-end closing for costcenter accounting
Accounting→ Controlling→Cost Center Accounting →Period-End Closing→ SingleFunctions→ ...
Various
52. Profitability AnalysisPeriod-End Closing
Accounting → Controlling→ Profitability Analysis →Actual Postings→ Period-EndClosing→ Transfer Cost CenterCosts/Process Costs→�
KEU5,KEG5,CPAE
53. Lock Controlling transactions Accounting→ Controlling→Cost Center Accounting →Environment→ Period Lock→Change
OKP1
54. Reconciliation ledger Accounting→ Controlling→Cost Element Accounting→ Actual Postings →Reconciliation with FI
KALC
55. Reconciliation ledgerfollow-up postings
Accounting→ Controlling→Cost Element Accounting →Environment→ ReconciliationLedger→ Follow-Up Posting
KAL1
56. Configure the reconciliationledger
IMG → Controlling →Cost Element Accounting→ Reconciliation Ledger
Various
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Appendix 2: Menu Paths AC205
Activity Menu Path Trans.57. Post payroll information toaccounting
Human Resources→ Payroll→(country-specific)
PC00_M99_ CIPE
58. Configure payroll for postingto accounting
IMG → Payroll → Payroll:(country-specific)
Various
Unit 6 � Technical, Organizational, and Documentary Steps59. Define fiscal year variants IMG→ Financial Accounting
→ Financial Accounting GlobalSettings → Fiscal Year →Maintain Fiscal Year Variant(Maintain Shortened Fisc. Year)
OB29
60. Assign fiscal year variant toa company code
IMG→ Financial Accounting→ Financial Accounting GlobalSettings→ Fiscal Year→ AssignCompany Code to a Fiscal YearVariant
OB37
61. Define variants for openposting periods
IMG→ Financial Accounting→ Financial Accounting GlobalSettings→Document→ PostingPeriods→ Define Variants forOpen Posting Periods
OBBO
62. Assign posting period variantto company code
IMG→ Financial Accounting→ Financial Accounting GlobalSettings→Document→ PostingPeriods→ Assign Variants toCompany Code
OBBP
63. Open and close postingperiods
Accounting → FinancialAccounting→ General Ledger→ Environment → CurrentSettings → Open and ClosePosting Periods
OB52
64. Carry forward balance to newfiscal year
Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing→ Carrying Forward→ Balance Carry Forward
F.16
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AC205 Appendix 2: Menu Paths
Activity Menu Path Trans.65. Define retained earningsaccount
IMG→ Financial Accounting→ General Ledger Accounting→ Business Transactions →Closing→ Carrying Forward→ Define Retained EarningsAccount
OB53
66. Schedule Manager Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Schedule Manager
SCMA
67. Calculate subsequent businessarea/profit center adjustment
Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing→ Regroup→ BalanceSheet Adjustment→ Calculate
F.5D
68. Post subsequent businessarea/profit center adjustment
Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing→ Regroup→ BalanceSheet Adjustment→ Post
F.5E
69. Transfer B/S items to ProfitCenter Accounting
Accounting → EnterpriseControlling → Profit CenterAccounting → ActualPostings → Period-EndClosing → TransferringPayables/Receivables
1KEK
70. PCA balance carried forward Accounting → EnterpriseControlling → Profit CenterAccounting→ Actual Postings→ Period-End Closing →Balance Carryforward
2KES
71. Adjust profit and loss Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing→ Regroup→ Profitand Loss Adjustment
F.50
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Appendix 2: Menu Paths AC205
Activity Menu Path Trans.72. Create compact documentjournal (RFBELJ00)
Accounting → FinancialAccounting→ General Ledger→ Information System →General Ledger Reports →Document → General →Compact Document Journal
S_ALR_87012289
73. Create work files for balanceaudit trail
IMG→ Financial Accounting→ General Ledger Accounting→ Business Transactions →Closing → Documenting →Define Accumulated Work Filesfor Balance Audit Trail
OBBQ
74. Run monthly balance audittrail for open item accounts(RFKKBU00)
Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing → Document →Balance Audit Trail → OpenItem Accounts → Open ItemAccount Balance Audit TrailFrom the Document File
S_ALR_87012317
75. Run monthly balanceaudit trail for other accounts(RFHABU00N)
Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing → Document →Balance Audit Trail → AllAccounts → G/L From theDocument File
S_ALR_87100205
76. Create extract foraccumulated open item balanceaudit trail (RFKLET01)
Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing → Document →Balance Audit Trail → OpenItem Accounts→ From BalanceAudit Trail → Extract forAccumulated Open Item AccountBalance Audit Trail
S_ALR_87012318
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AC205 Appendix 2: Menu Paths
Activity Menu Path Trans.77. Run open item accountaccumulated audit trail(RFKKBU10)
Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing → Document →Balance Audit Trail → OpenItem Accounts→ From BalanceAudit Trail→ Accts DetailedListing From Open Item AccountAccumulated Audit Trail
S_ALR_87012319
78. Create extract foraccumulated balance audit trailfor other accounts (RFKLET01)
Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing → Document →Balance Audit Trail → AllAccounts → From BalanceAudit Trail → Extract for theAccumulated Historical BalanceAudit Trail
S_ALR_87012314
79. Run accumulated balanceaudit trail for other accounts(RFKLBU10)
Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing → Document →Balance Audit Trail → AllAccounts → From BalanceAudit Trail→ Account DetailsFrom Historical AccumulatedBalance Audit Trail
S_ALR_87012315
Unit 7 Additional Material80. Account determination fortaxes
IMG→ Financial Accounting→ Financial AccountingGlobal Settings → Tax onSales/Purchases→ Posting→Define Tax Accounts
OB40
81. Other tax configuration IMG→ Financial Accounting→ Financial AccountingGlobal Settings → Tax onSales/Purchases→ �
Various
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Appendix 2: Menu Paths AC205
Activity Menu Path Trans.82. Tax reporting Accounting → Financial
Accounting→ General Ledger→ Reporting→ Tax Reports→...
Various
83. Choose extract method forconsolidation
IMG→ Enterprise Controlling→ Consolidation→ Integration:Preparation for Consolidation→ Preparation in the SenderSystem → Preparation andActivation of Data Transfer→Activate Data Transfer
OCCI
84. Send data to consolidation(periodic extract)
Accounting → FinancialAccounting→ General Ledger→ Periodic Processing →Closing→ Report→ Send Datato Consolidation
or
Information Systems →Accounting → FinancialAccounting→ General Ledger→ Balance Sheet
GC44
F.01
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FeedbackSAP AG has made every effort in the preparation of this course to ensure the accuracyand completeness of the materials. If you have any corrections or suggestions forimprovement, please record them in the appropriate place in the course evaluation.
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