fico material santhosh[1].kaparthi
TRANSCRIPT
Mr.K.Santhosh KumarSAP FICO Consultant
FICO Overview
FI
APAP
ARARAMGLGL
CON Specia
lLedger
Mr.K.Santhosh KumarSAP FICO Consultant
How to enter into System:
Double click on SAP Logon on desktop
Click on Log on
Client : 800
User : SAPUSER
Password : india123
Language : EN (English)
Enter
Note: SAP Package was developed in 41 languages
Note: If you don't enter language, Default language is English
Home screen of SAP is SAP Easy Access
SAP Package was developed in screen wise. Each screen has its own name
that is called Transaction code (Tcode)
Menu bar, Name bar and Application tool bar will be changed screen to
screen.
Standard tool bar is same in every screen, but based on the screen
requirement some buttons are active and some buttons are disabled.
SAP has given two screens
1. End user screen (SAP Easy Access)
2. Consultant screen (Tcode: SPRO)
Mr.K.Santhosh KumarSAP FICO Consultant
1. Define Company (Group Company)
Definition: Company is an independent organizational unit, which is
registered under commercial law. Under company, we can generate
consolidated financial statements. Financial statements mean profit and loss
account and balance sheet.
Ex: TATA Group, Birla Group, Reliance Group etc.
Path: SPRO - SAP Reference IMG- Enterprise Structure- Definition- Financial
Accounting - Define Company (Tcode: OX15)
Execute
Click on New Entries (F5)
Company :
Company name :
Street :
Postal code :
City :
Country : IN (India)
Language key : EN (English)
Currency : INR (Indian Rupees)
Save (Ctrl+S) and enter
Mr.K.Santhosh KumarSAP FICO Consultant
2. Define Company Code
Definition: Company code is an independent organizational unit, which is
registered under Companies Act, 1956. Under company code, we can
generate Financial Statements. Financial statements mean profit and loss
account and balance sheet.
Ex: TATA Motors, TATA Steel, TATA Chemicals, TATA Power etc.
Path: SPRO- SAP Reference IMG- Enterprise Structure- Definition- Financial
Accounting- Edit, copy, Delete, check Company Code (Tcode:OX02)
Execute
Double click on Edit Company Code Data
Click on New Entries (F5)
Company Code :
Company Name :
City :
0Country : IN (India)
Currency : INR (Indian rupees)
Language : EN (English)
Save (Ctrl+S)
Title : Company
Name :
Street :
House number :
Postal code :
City :
Mr.K.Santhosh KumarSAP FICO Consultant
Country : IN (India)
Enter and enter
3. Define Business Area
Definition: Business area nothing but branch. Under business area, we can
generate Branch Financial statements. Financial statements mean profit and
loss account and balance sheet. Branch Financial statements will be useful
for internal reporting.
Path: SPRO - SAP Reference IMG- Enterprise Structure- Definition- Financial
Accounting- Define Business Area (Tcode: OX03)
Execute
Click on New Entries (F5)
Business Area Description
______ Hyderabad Branch
______ Mumbai Branch
______ Bangalore Branch
______ Chennai Branch
Save and enter
4. Assign Company Code to Company
Path: SPRO- SAP Reference IMG- Enterprise Structure- Assignment- Financial
Accounting - Assign Company Code to Company (Tcode: OX16)
Execute
Go to position button
Company Code :
Enter
Company :
Mr.K.Santhosh KumarSAP FICO Consultant
Save and enter
5. Define Fiscal Year Variant
Definition: Fiscal year means financial year. It consists of 12 months and 4
Special periods. Special periods mean Adjustment accounts after closing the
financial year. System can't understand other than calendar year. For Ex:
2009-2010. We need to convert to one year. 9 months will come under 2009
year (April to Dec) and 3 months will come under 2010 (Jan to March). 3
months of 2010 to 2009, this is called year shift.
Path: SPRO- SAP Reference IMG-Financial Accounting (New) - Financial
Accounting Global Settings (New) – Ledgers- Fiscal Year and Posting Periods-
Maintain Fiscal Year Variant (Maintain Shortened Fisc. Year) (Tcode: OB29)
Execute
Click on New Entries (F5)
FV :
Description : April to March
Number of posting periods : 12
No. of special periods : 4
Enter
Select SK
Double click on Periods
Click on New Entries (F5)
Month Day Period Year shift
4 30 1 0
5 31 2 0
6 30 3 0
7 31 4 0
8 31 5 0
Mr.K.Santhosh KumarSAP FICO Consultant
9 30 6 0
10 31 7 0
11 30 8 0
12 31 9 0
1 31 10 -1
2 28 11 -1
3 31 12 -1
Double click on Period texts
Click on New Entries (F5)
Lang Period Txt Text
EN 1 APR April
EN 2 MAY May
EN 3 JUN June
EN 4 JUL July
EN 5 AUG August
EN 6 SEP September
EN 7 OCT October
EN 8 NOV November
EN 9 DEC December
EN 10 JAN January
EN 11 FEB February
EN 12 MAR March
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
6. Assign Company Code to a Fiscal Year Variant
Path: Same path (Tcode: OB37)
Execute
Go to Position button
Ignore warning messages
Company Code :
Enter
Fiscal year variant :
Save
Ignore warning messages
Enter
7. Define Variants for Open Posting Periods
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Ledgers- Fiscal Year and Posting Periods-
Posting Periods- Define Variants for Open Posting Periods (Tcode: OBBO)
Execute
Click on New Entries (F5)
Variant :
Name : Variant for
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
8. Assign Variants to Company Code
Path: Same path (Tcode: OBBP)
Execute
Go to Position button
Company Code :
Enter
Variant :
Save and enter
9. Open and Close Posting Periods
Path: Same path (Tcode: OB52)
Execute
Click on New Entries (F5)
Var. :
A : +
From per.1 : 1
Year :
To period : 12
Year :
Save and enter
10. Define Document Types
Mr.K.Santhosh KumarSAP FICO Consultant
Definition: Document type means to differentiate business transactions.
Business transactions are Customer invoice, Vendor Invoice, Customer
incoming payment, Vendor outgoing payments, General posting, etc.
Document type controls Number ranges and account types.
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Document- Define Document Types -
Define Document Types for Entry View (Tcode:OBA7)
Execute
Go to Position button
Document type : SA
Enter
Select SA
Click on Details (Ctrl+Shift+F2)
Click on Number range information
Company Code :
Note: Display Interval- It shows what intervals we created
Status button- we can see, how many numbers we used
Change intervals- Create new interval and Change existing intervals
Click on Change Interval
Click on Insert Interval (Shift+F1)
No : 01
Year : 2009
From number : 0100000000
To Number : 0199999999
Enter
Save and enter
Note: Number ranges can’t be transferred to production client
11. Define Field Status Variants
Mr.K.Santhosh KumarSAP FICO Consultant
Definition: Field status variant controls transactional data. Field status
variant consists of Field status groups. Field status groups consist of Fields.
Field status variant assigned to company code.
At the time entry the system gives 70 fields
Ex: Quantity, Business area, value date
You can make any field as
1. Suppress field – Field will not be visible.
2. Required field – To enter the values.
3. Optional field – Choice to enter or not enter.
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Ledgers- Fields - Define Field Status
Variants (Tcode:OBC4)
Execute
Select 0001
Click on Copy as (F6)
Replace 0001 to ______
Enter
Click on Copy All
Enter
Save and enter
Select ______
Double click on field status Groups
Double click on G001
Double click on General data
Observe fields and don’t disturb the fields
12. Assign Company Code to Field Status Variants
Path: Same path (Tcode: OBC5)
Mr.K.Santhosh KumarSAP FICO Consultant
Execute
Go to position button
Company Code : ______
Enter
Fld.stat.var. ______
Save and enter
13. Edit Chart of Accounts List
Definition: Chart of Accounts means list of G/L Accounts.
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New) - Master Data- - G/L Accounts - Preparations- Edit
Chart of Accounts List (Tcode:OB13)
Execute
Click on New Entries (F5)
Chart of accounts : ______
Description : Chart of Accounts for
Maint.language : EN English
Length of G/L Account number : 6
Save and enter
14. Assign Company Code to Chart of Accounts
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - General
Ledger Accounting- G/L Accounts- Master Data- Preparations- Assign
Company Code to Chart of Accounts (Tcode:OB13)
Mr.K.Santhosh KumarSAP FICO Consultant
Execute
Go to position button
Company Code :
Enter
Chrt/Accts :
Save and enter
15. Define Account Group
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New)- Master Data- G/L Accounts- Preparations- Define
Account Group (Tcode: OBD4)
Execute
Click on New Entries (F5)
Chrt/Accts Acct Group Name from acct to Account
______ LIAB Liabilities 100000 199999
______ ASST Assets 200000 299999
______ INCO Incomes 300000 399999
______ EXPN Expenses 400000 499999
Save and enter
16. Define Retained Earnings Account
Definition: It is a bridge to flow the profit or loss to the balance sheet.
Path: Same path (Tcode: OB53)
Mr.K.Santhosh KumarSAP FICO Consultant
Execute
Chart of accounts :______
Enter
P&L statmt acct type : X
Account : 100100
Save
It gives the Message, Account 100100 not created in chart of Accounts ______
Ignore warning messages
Enter
17. Define Tolerance Groups for G/L Accounts
Definition: Tolerance Groups means authorizations to post transactions.
Mr.K.Santhosh KumarSAP FICO Consultant
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General Ledger
Accounting (New)- Business Transactions- Open Item Clearing- Clearing
Differences- Define Tolerance Groups for G/L Accounts (Tcode:OBA0)
Execute
Click on New Entries (F5)
Company Code :______
Save and enter
18. Define Tolerance Groups for Employees
Path: Same path (Tcode: OBA4)
Execute
Click on New Entries (F5)
Execute
Company Code : ______
Amount per document : 99999999
Amount per open item account item : 99999999
Cash discount per line item:3
Save and enter
19. Creation of G/L Master Records
Path: Accounting - Financial Accounting - General Ledger - Master Records -
G/L Accounts - Individual Processing - FS00 - Centrally (Tcode:FS00)
Double click on FS00 - Centrally
Mr.K.Santhosh KumarSAP FICO Consultant
19.1. Share Capital A/C
G/L Account : 100000
Company Code :______
Click on Create
Go to Type/Description Tab
Account Group : LIAB Liabilities
Select Balance Sheet Account
Short Text : Share Capital A/C
G/L Acct Long Text : Share Capital Account
Go to Control Data Tab
Select Only Balances in local crcy
Select Line item display
Sort Key : 001
Go to Create/bank/interest Tab
Field Status Group : G001
Save
19.2. Bank Account
G/L Account : 290100
Company Code : ______
Click on Create
Go to Type/Description Tab
Mr.K.Santhosh KumarSAP FICO Consultant
Account Group : ASST Assets
Select Balance Sheet Account
Short Text : Bank A/C
G/L Acct Long Text : Bank Account
Go to Control Data Tab
Select Only Balances in local crcy
Select Line item display
Sort Key : 001
Go to Create/bank/interest Tab
Field Status Group : G005
Save
Posting key controls whether it is debit or credit, account types and fields
Note: In general ledger component, Posting keys are,
Posting Key 40: Debit
Posting key 50: Credit
20. General Posting
Path: Accounting - Financial Accounting - General Ledger - Posting - F-02 -
General Posting (Tcode: F-02)
Double click on F-02 - General Posting
Enter header data (Type SA)
Mr.K.Santhosh KumarSAP FICO Consultant
PstKy : 40
Account : 290100 (Bank A/C)
Enter
Amount : 25000
Business Area : TCSH
Value Date :
PstKy : 50
Account : 100000 (Share Capital A/C)
Enter
Amount : *
Click on More
Business area : TCSH
Enter
Go to Menu bar
Document - Simulate
Save
20.1. Document Display
Path: Accounting - Financial Accounting - General Ledger - Document - FB03
- Display (Tcode: FB03)
Double click on FB03 - Display
Click on Document list (Shift+F8)
Mr.K.Santhosh KumarSAP FICO Consultant
Company Code :______
Document type :SA
Execute (F8)
Double click on document no.
20.2. Display ledger balances
Path: Accounting - Financial Accounting - General Ledger - Account - FS10N -
Display Balances (Tcode: FS10N)
Double click on FS10N - Display Balances
G/L Account : 290100
Company Code : ______
Fiscal year : 2009
Execute (F8)
21. Hold Documents
If you don't have time to verify document or any hesitations with Document,
discuss with senior and confirm it is called Hold document.
21.1. Create Hold Document (Tcode:F-02)
Enter header data (Type SA)
Mr.K.Santhosh KumarSAP FICO Consultant
PstKy : 40 (Debit)
Account : 290100 (Bank A/C)
Enter
Amount : 25000
Business Area : TCSH
Value date :
PstKy : 50 (Credit)
Account : 100000 (Share Capital A/C)
Enter
Amount :*
Click on More
Business area : TCSH
Enter
Go to Menu bar
Document - Hold
Temporary Document number : Venkat
Enter
21.2. Post held Documents (Tcode:F-02)
Click on Held Document (F5)
Temporary Document number : Venkat
User : SAPUSER
Enter
Save
22. Parking document
Mr.K.Santhosh KumarSAP FICO Consultant
Definition: If you don't have authorization to post the document, just park the
document before your superior.
22.1. Creation of Park Document (Tcode:F-02)
Enter header data (Type SA)
PstKy : 40
Account : 290100 (Bank A/C)
Enter
Amount : 30000
Value date :
PstKy : 50
Account : 100000
Enter
Amount :*
Go to Menu bar
Document – Park
22.2. Post/Delete/Change parked documents
Path: Accounting - Financial Accounting - General Ledger - Document -
Parked Documents - FBV0 - Post/Delete (Tcode: FBV0)
Double click on FBV0 - Post/Delete
22.2.1. Post Parked Documents
Company Code :
Doc.Number :
Fiscal year :
Mr.K.Santhosh KumarSAP FICO Consultant
Enter
Save
22.2.2. Delete parked Documents
Company Code :
Doc.Number :
Fiscal year :
Enter
Go to Menu bar
Document – Delete
22.2.3. Change parked Documents
Company Code :
Doc.Number :
Fiscal year :
Enter
Double click on Line item
Amount : 24000
Save
22.2.4. Again park document before his superior
Company Code :
Doc.Number :
Fiscal year :
Enter
Go to Menu bar
Document - Park Document
23. Account Assignment Model
Definition: This is a template to post the documents
Mr.K.Santhosh KumarSAP FICO Consultant
23.1. Create Account Assignment Model
Path: Accounting - Financial Accounting - General Ledger - Posting -
Reference Documents - FKMT - Account Assignment Model (Tcode: FKMT)
Double click on FKMT - Account Assignment Model
Acct assignment model :
Click on Create (F5)
Currency : INR
Click on Line items (Shift+F8)
PK CoCd Account BusA
40 ______ 290100 _______
50 ______ 100000 _______
Save
23.2. Post with Account Assignment Model (Tcode:F-02)
Path: Accounting - Financial Accounting - General Ledger - Posting - F-02 -
General Posting (Tcode: F-02)
Enter Header Data (Type SA)
Click on Acct Model (F7)
Acct assignment model : Venkat
Enter
Amount : 25000
Save
24. Fast Data Entry (Tcode:F-02)
Mr.K.Santhosh KumarSAP FICO Consultant
Path: Accounting - Financial Accounting - General Ledger - Posting - F-02 -
General Posting (Tcode: F-02)
Double click on F-02 - General Posting (Tcode: F-02)
Enter Header data (Type SA)
Click on Fast Data Entry (Shift+F8)
PK Account Amount BusA
40 290100 25000 TCSH
50 100000 * TCSH
Enter
Save
25. Sample documents
25.1. Maintain number ranges for Sample documents
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Document- Document Number Ranges-
Documents in Entry View- Define Document Number Ranges for Entry View
(Tcode: FBN1)
Execute
Company Code :
Click on change interval
Click on Insert interval (Shift+F1)
No : X2
Year : 2009
From Number : 0002000000
To Number : 0002999999
Enter
Mr.K.Santhosh KumarSAP FICO Consultant
Save and enter
25.2. Create Sample documents
Path: Accounting - Financial Accounting - General Ledger - Posting -
Reference Documents - F-01 - Sample Document (Tcode:F-01)
Enter header data (Type AB)
Double click on F-01 - Sample Document
PstKy : 40
Account : 290100
Enter
Amount : 30000
Business area :
PstKy : 50
Account : 100000
Enter
Amount : *
Click on More
Business area : TCSH
Enter
Save
25.3. Post Sample documents (Tcode: F-02)
Enter header data
Click on Post with reference (Shift+F9)
Document number : 2000000
Company code :______
Enter and enter
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
26. Recurring Documents
Definition: Recurring documents means regular transactions.
26.1. Maintain number ranges for recurring document
(Tcode: FBN1)
Company Code :______
Click on change interval
Click on Insert interval (Shift+F1)
No : X1
Year : 2009
From Number : 0001000000
To Number : 0001999999
Enter
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
26.2. Create Recurring documents
Path: Accounting - Financial Accounting - General Ledger - Posting -
Reference Documents - FBD1 - Recurring Document (Tcode: FBD1)
Company Code :
First run on :
Last run on :
Interval in months :1
Document type : SA
PstKy : 40
Account : 290100
Enter
Amount : 25000
PstKy : 50
Account : 100000
Enter
Amount : *
Save
Mr.K.Santhosh KumarSAP FICO Consultant
26.3. Post recurring documents
Path: Accounting - Financial Accounting - General Ledger - Periodic
Processing - Recurring Entries - F.14 - Execute (Tcode: F.14)
Company Code :
Document number : 1000000
Settlement period :
Batch input session name : Venkat
Execute (F8)
Go to Menu bar
System - services - Batch Input - sessions
Select Venkat
Click on process (F8)
Select display errors
Select Extended log
Enter
Click on Exit Batch input
Mr.K.Santhosh KumarSAP FICO Consultant
27. Balance Interest Calculation
27.1. Define Interest Calculation Types
Path: SPRO- SAP Reference IMG- Financial Accounting(New)- General Ledger
Accounting(New)- Business Transactions- Bank Account Interest Calculation-
Interest Calculation Global Settings- Define Interest Calculation Types
(Tcode:OB46)
Execute
Click on New Entries (F5)
Int ID :
Name : 10% Interest
Int calc.type : S Balance Interest Calcula
Save and enter
27.2. Prepare Account Balance Interest Calculation
Path: Same path (Tcode: OBAA)
Execute
Mr.K.Santhosh KumarSAP FICO Consultant
Click on New Entries (F5)
Int.calc.Indicator :
Interest calc.freq. : 1
Calendar type : G
Select Balance plus int
Save and enter
27.3. Define Reference Interest Rates
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - General
Ledger Accounting (New) - Business Transactions- Bank Account Interest
Calculation- Interest Calculation- Define Reference Interest Rates
(Tcode: OBAC)
Execute
Click on New Entries (F5)
Ref.int.rate :
Long Text : 10% Interest
Description : 10% Interest
Date from :
Currency : INR
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
27.4. Define Time-Dependent Terms
Path: Same path (Tcode: OB81)
Execute
Click on New Entries (F5)
Int.calc.indicator :
Currency key : INR
Eff.from :
Sequential number : 1
Term : Credit interest: balance interest
calc.
Ref.interest rate : IM_USD_1
Save and enter
Click on Next Entry (F8)
Int.calc.indicator :
Currency key : INR
Eff.from :
Sequential number : 2
Term : Debit interest: balance interest
calc.
Mr.K.Santhosh KumarSAP FICO Consultant
Ref.interest rate : IM_USD_1
Save and enter
27.5. Enter Interest Values
Path: same path (Tcode: OB83)
Execute
Click on New Entries (F5)
Reference :
Valid from :
Int.rate : 10
Save and enter
27.6. Creation of G/L Accounts (Tcode:FS00)
27.6.1. Interest Expense A/C
G/L Account : 400080
Company Code :
Click on Create
Go to Type/Description Tab
Account Group : EXPN Expense
Select P&L statement acct
Short Text : Interest Paid A/C
Mr.K.Santhosh KumarSAP FICO Consultant
G/L Acct Long Text : Interest Paid Account
Go to Control data Tab
Select only balances in local crcy
Select Line item display
Sort Key : 001
Go to Create/Bank/Interest Tab
Field status group : G001
Save
27.6.2. Loan Account
G/L Account : 100500
Company Code :
Click on Create
Go to Type/Description Tab
Account Group : LIAB Liabilities
Select Balance sheet Account
Short Text : Loan A/C
G/L Acct Long Text : Loan Account
Go to Control data Tab
Select only balances in local currency
Select Line item display
Sort Key : 001
Go to Create/Bank/Interest Tab
Field status group : G001
Interest Indicator : SK
Save
Mr.K.Santhosh KumarSAP FICO Consultant
27.7. Assign G/L Accounts
Path: SPRO- SAP Reference IMG- Financial Accounting(New)- General Ledger
Accounting(New)- Business Transactions- Bank Account Interest Calculation-
Interest Posting- Prepare G/L Account Balance Interest Calculation
(Tcode:OBV4)
Execute
Click on Accounts (F7)
Chart of accts :
Enter
Acct symbol Currency G/L acct
0002 INR 400080
2000 INR 100500
Save and enter
27.8. Post Loan Taken from bank (Tcode:F-02)
Enter Header data (Type SA)
PstKy : 40
Account : 290100 (Bank A/C)
Enter
Amount : 100000
PstKy : 50
Account : 100500 (Loan A/C)
Mr.K.Santhosh KumarSAP FICO Consultant
Enter
Amount :*
Go to Menu bar
Document - simulate
Save
27.9. Interest calculation
Path: Accounting - Financial Accounting - General Ledger - Periodic
Processing - Interest Calculation - F.52 - Balance Interest Calculation
(Tcode: F.52)
Chart of accounts :
G/L Account : 100500 (Loan Account)
Company Code :
Calculation period :_________ __________
Select post interest settlement
Select post also if Val. date in past
Select update master record
Session name : Venkat
Execute
Go to Menu bar
System - services- batch input - sessions
Select Venkat
Click on process (F8)
Select display errors
Select Extended log
Enter
Click on Exit batch input
Mr.K.Santhosh KumarSAP FICO Consultant
27.10. Document display (Tcode: FB03)
27.11. Display ledger (Tcode: FS10N
27.12. Define Reasons for Reversal
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General Ledger
Accounting (New)- Business Transactions- Adjustment Posting/Reversal-
Define Reasons for Reversal
Execute
Click on New Entries (F5)
Reason :
Name : Wrong Entry posted
Select Alt.pos.dt
Save (Ctrl+S) and enter
28. Reversal of Documents
Path: Accounting - Financial Accounting - General Ledger - Document -
Reverse - FB08 - Individual Reversal (Tcode: FB03)
Document number : 100000000
Company Code :
Fiscal year : 2009
Reversal reason :
Save
28.1. Document display (Tcode: FB03)
Mr.K.Santhosh KumarSAP FICO Consultant
29. Report Layout and Sort filter Command (Tcode: FS10N)
29.1. Report Layout
G/L Account : 290100
Company code :
Fiscal year :
Execute (F8)
Double click on Amount
Click on Change Layout (Ctrl+F8)
Select Posting date
Select Posting key
Click on Show Selected fields
Enter
29.2. Sort filter Commands
G/L Account : 290100
Company code :
Fiscal year :
Execute (F8)
Double click on Amount
Click on Doc.Date
Click on Set Filter (Ctrl+Shift+F2)
Document date :
Enter
System will display only __________ Date transactions
Mr.K.Santhosh KumarSAP FICO Consultant
30. Open items processing
Entries:
a. Posting out standing Expenses
Rent A/C
To O/S Expenses A/C
b. Clearing out Standing Expenses
O/S Expense A/C
To Bank A/C
30.1. Create Outstanding Expenses G/L A/C (Tcode: FS00)
G/L Account : 190600
Company Code :
Click on Create
Go to Type/Description Tab
Account group : LIAB Liabilities
Select Balance Sheet Account
Short Text : O/S Expenses A/C
G/L Acct Long Text : Out Standing Expense A/C
Go to Control Data Tab
Select only balances in local crcy
Select Open Item Management
Select Line item display
Sort key : 001
Go to Create/Bank/Interest Tab
Field Status group : G001
Save
Mr.K.Santhosh KumarSAP FICO Consultant
30.2. Post out standing expenses (Tcode: F-02)
Enter Header (Type SA)
PstKy : 40
Account : 400090 (Expense A/C)
Enter
Amount : 25000
Click on More
Business area :
PstKy : 50
Account : 190600 (Out Standing Expense A/C)
Enter
Amount : *
Click on More
Business area :
Go to Menu Bar
Document - simulate
Save
30.3.Report
Path: Accounting- Financial Accounting- General Ledger- Account- FBL3N -
Display/Change Line Items (Tcode: FBL3N)
G/L Account : 190600 (Out Standing Expense A/C)
Company code :
Select Open items
Execute
Mr.K.Santhosh KumarSAP FICO Consultant
30.4.Clear Out standing expense
Path: Same path (Tcode: F-07)
Account : 190600
Company code :
Select None
Click on Process open items (Shift+F4)
Click on Document Overview (Shift+F2)
PstKy : 50
Account : 290100 (Bank A/C)
Enter
Amount : 25000
Click on More
Business area :
Enter
Click on Process open items (Shift+F4)
Go to Menu bar
Document – simulate
Save
30.5. Report (Tcode: FBL3N)
G/L account : 190600 (Out Standing Expenses A/C)
Company code :
Select cleared items
Execute (F8)
31. Prepaid Expenses
Entries:
a. Posting of prepaid Expenses
Prepaid Expense A/C
To Bank A/C
b. Clearing of prepaid Expenses
Mr.K.Santhosh KumarSAP FICO Consultant
Rent A/C
To Prepaid expenses A/C
31.1. Create prepaid Expense G/L Account (Tcode: FS00)
G/L Account : 290400
Company code :
Click on create
Go to Type/Description Tab
Account Group : ASST Assets
Select Balance sheet Account
Short text : Prepaid Ex. A/C
G/L Acct Long Text : Prepaid expense Account
Go to Control data Tab
Select only balances in local crcy
Select open item management
Select line item display
Sort key : 001
Go to Create/Bank/Interest Tab
Field status group : G001
Save
31.2. Post prepaid expenses (Tcode: F-02)
Enter header data (Type SA)
PstKy : 40
Account : 290400 (Prepaid Expenses A/C)
Enter
Amount : 25000
Click on More
Business Area :
Enter
PstKy : 50
Account : 290100 (Bank A/C)
Mr.K.Santhosh KumarSAP FICO Consultant
Enter
Amount : *
Click on More
Business area :
Enter
Go to Menu bar
Document – Simulate
Save
31.3. Report (Tcode: FBL3N)
G/L Account : 290400 (Prepaid Expense A/C)
Company code :
Select Open items
Execute (F8)
31.4. Clear prepaid expense (Tcode: F-03)
Path: Accounting- Financial Accounting- General Ledger- Account- F-03 –
Clear (Tcode: F-03)
Account : 290400 (Prepaid Expense A/C)
Company code :
Select None
Click on Process Open Items (Shift+F4)
Click on Document overview (Shift+F2)
PstKy : 40
Account : 400090 (Rent A/C)
Enter
Amount : 25000
Click on process open items (Shift+F4)
Go to Menu bar
Document – Simulate
Save
31.5. Report (Tcode: FBL3N)
Mr.K.Santhosh KumarSAP FICO Consultant
G/L Account : 290400 (Prepaid Expense A/C)
Company code :
Select Cleared items
Execute (F8)
Postings:
Foreign currency postings:
1. Check exchange rate types;
Bank buying – Export – G TypeBank Setting – Imports/Expenditure – B TypeAverage Rate: Used by MM/SD People – M Type
Path: SPRO General settings Currencies Check exchange rate types.
Select position buttonExchange rate type: BEnter
Define transaction ratios for currency transaction
Path: SPRO General settings Currencies Define translation ratio for currency translation.
This defines the conversion factory between two currencies.
USD 1 : INR 1 Japanese year 100 : INR 1 Europe 1 : INR 1
Once we follow one conversion factory, follow continuously the same for all the year.This is at client level
Path: SPRO SAP Net weaver- General settings Currencies Define translation ratio for currency translation.
Ignore the message select “yes” buttonSelect new entries buttonExchange rate type from to valid (from) ratio (from) ratio (to)G (Bank buying) USD INR 01.04.2010 1 1B (Bank selling) USD INR 01.04.2010 1 1
Mr.K.Santhosh KumarSAP FICO Consultant
M (Average rate) USD INR 01.04.2010 1 1Save (or) (ctrl + s)Save in your request
Enter exchange rates:
Path: SPRO General settings Currencies Enter exchange rates
Select new entries button
Exchange rate type: G (Bank buying)
Valid date: 25-07-2006
From Currency: USD
To select: INR
Direct quotation: 44/-
Enter
Exchange rate type: Select B
Valid date: 25-07-2006
From currency: USD
To currency: INR
Direct quotation: 46/-
Exchange rate type: M
Valid from: 25-07-2006From currency: USD
To currency: INR
Direct quotation: 45/-
SaveSave in your request
You can enter each type for each day only Path for forex rates at user level
Mr.K.Santhosh KumarSAP FICO Consultant
Accounting Financial Accounting General Ledger Environment Current settings Events translation rates (S_BCE_68000174)
When the rate is not given:
It takes the rates from forex table
It takes the latest date rate
To enter default exchange rate
Type based on document type
G/L Posting – SA b (Bank selling)
Purchase invoice posting G (Bank buying)(If we don’t specify it takes ‘M’ type by default. ‘M Average rate’
To enter default exchange rate type ‘B’ (Bank selling) for document type – ‘SA’
(Use the transaction code (OBA7).
Select position button
Give the document type ‘SA’
Enter
Select document type ‘SA’.
Select details button
Under default values exchange rate type for foreign currency documents
Enter B
Select save button (or) (ctrl + s)
Postings
When the rate is not given When the rate is given
Mr.K.Santhosh KumarSAP FICO Consultant
Save in your request
Foreign Currency Posting (F-02)
Document date 02-08-2006
Type: SA
Company code: AML
Currency: USD
Posting key: 40
Give account No. 400100 (Salaries account)
Enter
Give the amount 1000$
Business area: AMH
Text: Salary payment
Enter
Posting key: 50
Account No. 200100 (Cash account)
Enter
Amount: ‘*’
Business area: AMH
Text: ‘+’
Document Simulate
To view in INR Select display currency button.
Select save button (or) (ctrl + s).
When the rate is given at the time of posting
Mr.K.Santhosh KumarSAP FICO Consultant
Use the transaction code (F-02)
Give the document date: 02-08-2006
Type: SA
Company code: AML
Currency: USD
Give the rate: 48/-
Posting key: 40
Account: 400100 (Salaries Account)
Enter
It gives message
Exchange rate: 48$ deviate the increase 4.38%
Ignore message and Enter
Give the amount: 1000$
Business area: AMH
Text: Salary payment
Press: Enter
Posting key: 50
Give the account no: 200100 (Cash account)
Enter
Amount: *.
Business area: AMH
Text: +Documents Simulate & save.
Mr.K.Santhosh KumarSAP FICO Consultant
Accounts payables:
Mr.K.Santhosh KumarSAP FICO Consultant
This component will deal with vendors, Terms and conditions, Invoices,
outgoing payments, Advance to vendors, Etc. Vendors are subsidiary
ledgers. AP component integrates with General ledger component.
Define Account Groups
Definition: It controls fields in master record and number range intervals.
Path: SPRO- Financial Accounting(New)- Accounts Receivable and Accounts
Payable- Vendor Accounts- Master Data- Preparations for Creating Vendor
Master Data- Define Account Groups with Screen Layout (Vendors)
(Tcode:OBD3)
Execute
Click on New Entries (F5)
Account Group :
Name : Dom.Vendors
Save and enter
Create Number Ranges for Vendor Accounts
Mr.K.Santhosh KumarSAP FICO Consultant
Path: Same path (Tcode: XKN1)
Execute
Click on Change interval
Click on Insert interval (shift+S)
No :
From Number :
To Number :
Enter
Save and enter
Assign Number Ranges to Vendor Account Groups
Path: same path (Tcode: OBAS)
Execute
Go to Position button
Account group :
Enter
Number range :
Save and enter
Define Tolerances (Vendors)
Mr.K.Santhosh KumarSAP FICO Consultant
Path: SPRO- Financial Accounting(New)- Accounts Receivable and Accounts
Payable- Business Transactions- Outgoing Payments- Manual Outgoing
Payments- Define Tolerances (Vendors) (Tcode:OBA3)
Execute
Click on New Entries (F5)
Company code :
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
Maintain Number ranges 19, 15, 17 for KR, KZ, KA document types respectively (KR: Vendor Invoice, KZ: Vendor payment, KA: Vendor Document)
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New) - Document- Document Number Ranges-
Documents in Entry View- Define Document Number Ranges for Entry View
(Tcode:FBN1)
Execute
Company Code :
Click on change interval
Click on Insert interval (Shift+F1)
No : 19
Year : 2009
From number : 1900000000
To Number : 1999999999
Enter
Click on Insert interval (Shift+F1)
No : 15
Year : 2009
From number : 1500000000
To Number : 1599999999
Enter
Click on Insert interval (Shift+F1)
No : 17
Year : 2009
From number : 1700000000
To Number : 1799999999
Enter
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
Create Vendor Reconciliation Account (Tcode: FS00)
G/L Account : 190100
Company Code :
Click on create
Go to Type/Description Tab
Account Group : LIAB Liabilities
Select Balance sheet Account
Short Text : Dom. Vendors A/C
G/L Acct Long Text : Domestic Vendors Account
Go to Control data Tab
Recon. Account for Acct type : K Vendors
Select Line item display
Sort Key : 012 (Vendor Number)
Go to Create/Bank/Interest tab
Field Status Group : G067
Save
Mr.K.Santhosh KumarSAP FICO Consultant
Create Vendor Master Record
Path: Accounting - Financial Accounting - Accounts Payable - Master Records
- FK01 - Create (Tcode: FK01)
Company Code :
Account Group :
Enter
Title : Company
Name : OMC
Search Term : Hyderabad
Street :
House number :
Postal code : 500020
City : Hyderabad
Country : IN
Enter, enter and enter
Recon. Account : 190100
Sort Key : 012
Cash mgmnt group : A1
Enter
Pay terms : 0001 (Immediately)
Save
Mr.K.Santhosh KumarSAP FICO Consultant
Create Service G/L Master Record (Tcode: FS00)
G/L Account : 400100
Company Code :
Click on create
Go to Type/Description Tab
Account Group : EXPN Expense
Select P&L Statement acct
Short Text : Service A/C
G/L Acct Long Text : Service Account
Go to Control Data Tab
Select only balances in local crcy
Select Line item display
Sort Key : 001
Go to Create/bank/interest Tab
Field status group : G001
Save
Mr.K.Santhosh KumarSAP FICO Consultant
Enter Vendor Invoice
Path: Accounting - Financial Accounting - Accounts Payable - Document Entry
- F-43 - Invoice - General (Tcode: F-43)
Enter header data (Type KR)
PstKy : 31 (Credit)
Account : __________ (Vendor Number)
Enter
Amount : 25000
Business Area :
PstKy : 40 (Debit)
Account : 400100 (Service G/L)
Enter
Amount :*
Click on More
Business Area :
Enter
Go to menu bar
Document - simulate
Save
Mr.K.Santhosh KumarSAP FICO Consultant
Vendor Line item report
Path: Accounting - Financial Accounting - Accounts Payable - Account - FBL1N
- Display/Change Line Items (Tcode: FBL1N)
Vendor Account :
Company Code :
Select open items
Execute (F8)
Mr.K.Santhosh KumarSAP FICO Consultant
Outgoing payments
Path: Accounting - Financial Accounting - Accounts Payable - Document Entry
- Outgoing Payment - F-53 - Post (Tcode: F-53)
Enter Header Data (Type KZ)
Account : 290100 (Bank A/C)
Amount : 25000
Account :__________ (Vendor Number)
Enter
Note: Select Invoice amount against which invoice we are paying, Deselect
Remaining invoices. Select means Blue color and Deselect means block
color.
Note: Amount entered and Assigned amount should be same
See Report (Tcode: FBL1N)
Partial payments (Tcode: F-53)
Enter header data (Type KZ)
Account 290100 (Bank A/C)
Amount 10000
Account : _________ (Vendor Number)
Enter
Go to Partial pmt Tab
Payment amount : 10000
Save
See Report (Tcode: FBL1N)
Mr.K.Santhosh KumarSAP FICO Consultant
Residual items (Tcode:F-53)
Definition: In Residual items, system will re determine terms of payments.
Enter header data (Type KZ)
Account : 290100
Amount : 5000
Account :
Enter
Go to Res.items Tab
Residual items : 30000-
Enter
Go to Menu bar
Document - simulate
Double click on blue color line item
Text : Being Residual items
Payment terms : 0002
One time go back
Save
See Report (Tcode: FBL1N)
Automation of Bank Charges and Cash discount
Creation of Bank Charges G/L Account (Tcode: FS00)
Mr.K.Santhosh KumarSAP FICO Consultant
G/L Account : 400020
Company Code :
Click on create
Go to Type/Description Tab
Account Group : EXPN Expenses
Select P&L statement acct
Short Text : Bank Charges A/C
G/L Acct Long Text : Bank Charges Account
Go to Control data Tab
Select only balances in local crcy
Select Line item display
Sort Key : 001
Go to Create/bank/Interest Tab
Field status group : G001
Save
15. Creation of Cash Discount Taken G/L Account (Tcode: FS00)
Mr.K.Santhosh KumarSAP FICO Consultant
G/L Account : 300010
Company Code :
Click on create
Go to Type/Description Tab
Account Group : INCO Incomes
Select P&L statement acct
Short Text : Cash Dis.Taken A/C
G/L Acct Long Text : Cash Discount Taken Account
Go to Control data Tab
Select only balances in local crcy
Select Line item display
Sort Key : 001
Go to Create/bank/Interest Tab
Field status group : G001
Save
Creation Accounts for Cash Discount Taken
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Business Transactions- Outgoing
Payments- Outgoing Payments Global Settings- Define Accounts for Cash
Discount Taken
(Tcode: OBXU)
Execute
Chart of Accounts :
Enter
Save
Account : 300010
Mr.K.Santhosh KumarSAP FICO Consultant
Save and enter
Define Accounts for Bank Charges (Vendors)
Path: Same path (Tcode: OBXK)
Execute
Double click on Bank Charges BSP
Chart of Accounts :
Enter
Account : 400020
Save and enter
Outgoing payment to vendor with bank charges and cash discount (Tcode: F-53)
Enter header data (Type KZ)
Account : 290100
Amount :
Bank charges :
Account : 400000
Enter
Cash Discnt : 500
Go to Menu bar
Document - Simulate
Mr.K.Santhosh KumarSAP FICO Consultant
Save
Down payments (Advance To vendors)
Create Advance to Vendor G/L Account (Tcode: FS00)
G/L Account : 290200
Company Code :
Click on create
Go to Type/Description Tab
Account Group : ASST Assets
Select Balance Sheet Account
Short Text : Adv. to Vendors A/C
G/L Acct Long Text : Advance to Vendors Account
Go to Control Data Tab
Recon. account for acct type : K Vendors
Select Line item Display
Sort Key : 012
Go to Create/Bank/Interest Tab
Field Status Group : G067
Save
Assign Adv. to Vendor Account
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Business Transactions- Down Payment
Made- Define Alternative Reconciliation Account for Down Payments (Tcode:
OBYR)
Execute
Double click on
Mr.K.Santhosh KumarSAP FICO Consultant
K A Dwn pmt Down payment on current assets
Chart of Accounts :
Enter
Recon.acct : 190100
Special G/L Account : 290200
Save and enter
Scenario 1
Advance to Vendor :Rs 100000
Service :Rs 100000
Advance to Vendor
Path: Accounting - Financial Accounting - Accounts Payable - Document Entry
- Down Payment - F-48 - Down Payment (Tcode:F-48)
Enter header data (Type KZ)
Account :
Special G/L Ind. : A
Mr.K.Santhosh KumarSAP FICO Consultant
Account : 290100
Amount : 100000
Enter
Amount :*
Go to Menu bar
Document - simulate
Save
See Report (Tcode: FBL1N)
Service Invoice (Tcode: F-43)
Enter Header data (Type KR)
PstKy : 31
Account :
Enter
Amount : 100000
PstKy : 40
Account : 400100
Mr.K.Santhosh KumarSAP FICO Consultant
Enter
Amount :*
Go to Menu bar
Document - simulate
Save
See Report (Tcode: FBL1N)
Clearing advance against Invoice
Path: Accounting - Financial Accounting - Accounts Payable - Document Entry
- Other - F-51 - With Clearing (Tcode: F-51)
Enter header data (Type AB)
Select transfer posting with clearing
Choose open items (F6)
Company Code :
Account :
special G/L Ind. : A
Enter
Save
See Report (Tcode: FBL1N)
Scenario 2
Advance to Vendor :Rs 100000
Invoice : Rs 50000
Advance to vendor (Tcode:F-48): Rs100000
Path: Accounting - Financial Accounting - Accounts Payable - Document Entry
- Down Payment - F-48 - Down Payment (Tcode:F-48)
Mr.K.Santhosh KumarSAP FICO Consultant
Enter header data (Type KZ)
Account :
Special G/L Ind. : A
Account : 290100
Amount : 100000
Enter
Amount :*
Go to Menu bar
Document - simulate
Save
See Report (Tcode: FBL1N)
Invoice (Tcode:F-43): Rs50000
Enter Header data (Type KR)
PstKy : 31
Account :
Enter
Amount : 50000
PstKy : 40
Account : 400100
Enter
Amount :*
Go to Menu bar
Document - simulate
Save
See Report (Tcode: FBL1N)
Transfer posting
Mr.K.Santhosh KumarSAP FICO Consultant
Path: Accounting - Financial Accounting - Accounts Payable - Document Entry
- Down Payment - F-54 - Clearing (Tcode:F-54)
Enter header data (Type KA)
Account :
Keep blank invoice Field
Text : Being Transfer posting
Enter
Transfer posting : 50000
Save
Clear Advance against Invoice (Tcode: F-51)
Enter header data (Type AB)
Select transfer posting with clearing
Choose open items (F6)
Company Code :
Account :
Enter
Save
See Report (Tcode: FBL1N)
Scenario 3
Advance To Vendor : Rs 100000
Invoice : Rs 150000
Advance to Vendor (Tcode: F-48): Rs100000
Path: Accounting - Financial Accounting - Accounts Payable - Document Entry
- Down Payment - F-48 - Down Payment (Tcode:F-48)
Mr.K.Santhosh KumarSAP FICO Consultant
Enter header data (Type KZ)
Account :
Special G/L Ind. : A
Account : 290100
Amount : 100000
Enter
Amount :*
Go to Menu bar
Document - simulate
Save
See Report (Tcode: FBL1N)
Invoice (Tcode: F-43): Rs150000
Enter Header data (Type KR)
PstKy : 31
Account :
Enter
Amount : 150000
PstKy : 40
Account : 400100
Enter
Amount :*
Go to Menu bar
Document - simulate
Save
See Report (Tcode: FBL1N)
Mr.K.Santhosh KumarSAP FICO Consultant
Transfer posting (Tcode: F-54): Rs100000
Path: Accounting - Financial Accounting - Accounts Payable - Document Entry
- Down Payment - F-54 - Clearing (Tcode:F-54)
Enter header data (Type KA)
Account :
Keep blank invoice Field
Text : Being Transfer posting
Enter
Transfer posting : 100000
Save
Outgoing payment (Tcode: F-53): Rs 50000
Automatic payment program (APP)
Creation of House Banks
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Bank
Accounting - Bank Accounts - Define House Banks (Tcode: FI12)
Execute
Company Code :
Mr.K.Santhosh KumarSAP FICO Consultant
Enter
Click on New Entries (F5)
House Bank :
Bank Country : IN
Bank Key : 123456
Click on create
Bank name : ICICI Bank
Street : Ameerpet
City : Hyderabad
Bank Branch : Ameerpet Branch
Enter
Double click on bank Accounts
Click on New Entries (F5)
Account ID : ICICC
Description : ICICI Current Account
Bank Account : 1234567
G/L : 290100
Currency : INR
Save and enter
Maintain Check Leaves
Path: Accounting - Financial Accounting - Accounts Payable - Periodic
Processing - F110 - Payments (Tcode: F110)
Go to Menu bar
Environment - Check Information - Number ranges
Paying company Code :
House bank :
Account ID :
Click on Change (Shift+F5)
Mr.K.Santhosh KumarSAP FICO Consultant
Click on Create (Shift+F5)
Lot Number : 1
Check number : 100100
To : 100199
Short Info. : ______ Bank Check lots
Purchasing date :
Enter
Save
3. Set up Payment Methods per Country for Payment Transactions
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Accounts
Receivable and Accounts Payable- Business Transactions- Outgoing
Payments- Automatic Outgoing Payments- Payment Method/Bank Selection
for Payment Program- Set Up Payment Methods per Country for Payment
Transactions
Execute
Click on New Entries (F5)
Country : IN
Pymt Method : C
Description : Check
Select Outgoing payments
Select Check
Select Allowed for Personnel payments
Select Street, P.O.box or P.O.box postcode
Document type for payment : ZP
Clearing document type : ZV
Payment medium program : RFFOUS_C
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
4. Set up Payment Methods per Company Code for Payment
Transactions
Path: Same path
Execute
Click on New entries (F5)
Paying co. code :
Pymt Method : C
Minimum amount : 100
Maximum amount : 99999999
Go to Form data
Form for the payment medium : F110_IN_CHECK
Drawer on the form : On _______ bank
Save and enter
5. Set Up Paying Company Codes for Payment Transactions
Path: Same path
Execute
Click on New Entries (F5)
Paying co. code :
Minimum amount for incoming payment : 100
Minimum amount for outgoing paymen : 100
Click on forms
Form for the payment advice : F110_IN_AVIS
Click on Sender details
Text ID : ST
Letter header : F_0001_HEADER
Footer : F_0001_FOOTER
Sender : F_0001_SENDER
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
6. Set Up All Company Codes for Payment Transactions
Path: Same path
Execute
Click on New entries (F5)
Paying company code :
Sp. G/L transactions to be paid : A
Save and enter
7. Set Up Bank Determination for Payment Transactions
Path: Same path
Execute
Go to position button
Paying co.code :
Enter
Select _______
Double click on ranking order
Click on New Entries (F5)
PM : C
Crcy : INR
Rank order : 1
House BK : ICICI
Double click on Bank Accounts
Click on New Entries (F5)
House bank : ICICI
Pay.method : C
Currency : INR
Mr.K.Santhosh KumarSAP FICO Consultant
Account ID : ICICC
Bank Subaccount : 290100
Double click on Available amounts
Click on New entries (F5)
House bank : ICICI
Account ID : ICICC
Days : 999
Currency : INR
Available for outgoing payments : 99999999
Save and enter
8. Maintain number ranges 20 for Document type ZP (Tcode: FBN1)
Company Code :
Click on change interval
Click on Insert interval (Shift+F1)
No : 20
Year : 2009
From number : 2000000000
To Number : 2099999999
Enter
Save and enter
9. Maintain Term of payments, Payment method and house bank in
vendor master record (Tcode: FK02)
Vendor :
Company Code :
Select payment transactions
Enter
Payt Terms : 0001
Mr.K.Santhosh KumarSAP FICO Consultant
Payment methods : C
House bank :
Save
10. Run Automatic payment program
Path: Accounting - Financial Accounting - Accounts Payable - Periodic
Processing - F110 - Payments (Tcode: F110)
Run Date :
Identification :
Go to Parameter tab
Company Codes :
Pmt meths : C
Next p/date :
Vendor :
Save
Go to Status Tab
Observe Status is Parameters have been entered
Go to Additional log tab
Select Due date check
Select payment selection in all cases
Select line items of the payment documents
Vendor :
Save
Go to Status Tab
Click on proposal (Shift+F1)
Select Start Immediately
Enter
Keep on enter until Status is Payment proposal has been created
Click on Edit proposal (Shift+F4)
Mr.K.Santhosh KumarSAP FICO Consultant
Enter
Go to printout/data medium Tab
RFFOUS_C :
Click on Maintain variants (F5)
Select For all Selection screens
Enter
Programs run date :
Identification feature :
Paying Company Code :
House bank :
Account Id :
Check lot number :
Select Print checks
Select Print payment advice notes
Select Print payment summary
Printer : LP01
Printer : LP01
Printer : LP01
Select Print immediately
Select Print immediately
Select Print immediately
Keep blank Number of sample printouts field
One time go back
Enter
Meaning : variant for ______
Save
One time go back
Save
Go to Status Tab
Click on Pmnt run (F7)
Select start immediately
Mr.K.Santhosh KumarSAP FICO Consultant
Select Create payment medium
Enter
Keep on Enter until Status is Payment run has been carried out and Posting
orders: ___ generated, _____ completed
Go to menu bar
System- Services - output control
Execute (F8)
Select spool no.
Click on Display Contents (F6)
Accounts Receivables:
AR deals with customers, terms and conditions with customers, customer
invoice, customer incoming payments, Advance from customers and item
interest calculation.
1. Define Account Groups with Screen Layout (Customers)
Path: SPRO- Financial Accounting- Accounts Receivable and Accounts
Payable- Customer Accounts- Master Data- Preparations for Creating
Customer Master Data- Define Account Groups with Screen Layout
(Customers) (Tcode:OBD2)
Execute
Click on New Entries (F5)
Account Group :
Name :Domestic Customers
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
2. Create Number Ranges for Customer Accounts
Path: Same path (Tcode:XDN1)
Execute
Click on change interval
Click on Insert Interval (Shift+F1)
No :
From number :
To Number :
Enter
Save and enter
3. Assign Number Ranges to Customer Account Groups
Path: Same path (Tcode: OBAR)
Execute
Go to position button
Account Group :
Enter
Number range :
Save and enter
4. Creation of Reconciliation G/L Master record (Tcode:FS00)
G/L Account : 290300
Company Code :
Click on create
Go to Type/Description Tab
Account Group : ASST Assets
Mr.K.Santhosh KumarSAP FICO Consultant
Select balance sheet Account
Short Text : Dom.Customers A/C
G/L Acct Long Text : Domestic Customers A/C
Go to Control data Tab
Recon.Acct for Account type : D Customers
Select line item display
Sort Key : 031
Go to Create/Bank/Interest Tab
Field status Group : G067
Save
5. Creation of customer master Record
Path: Accounting - Financial Accounting - Accounts Receivable - Master
Records - FD01 - Create (Tcode: FD01)
Account Group :______ Domestic Customers
Company Code :
Enter
Mr.K.Santhosh KumarSAP FICO Consultant
Title : Company
Name :
Street : Begumpet
House Number : 590
Postal code :
City : Hyderabad
Country : IN
Click on Company Code Data (Ctrl+F2)
Recon.Account :290300
Sort key : 031
Save
6. Creation of Service Revenue A/C (Tcode:FS00)
G/L Account : 300100
Company Code :
Click on Create
Go to Type/Description Tab
Account Group : INCO Incomes
Select P&L statement acct
Short Text :Ser.Revenue A/C
Mr.K.Santhosh KumarSAP FICO Consultant
G/L Acct Long Text : Service Revenue Account
Go to control data Tab
Select Only Balances in local crcy
Select Line item display
Sort Key : 001
Go to Create/Bank/Interest Tab
Field status group : G001
Save
7. Maintain number ranges 18, 14 and 16 for DR, DZ and DA
Respectively (Tcode: FBN1)
Company Code :
Click on Change Interval
click on Insert Interval (Shift+F1)
No : 18
Year :
From number : 1800000000
To Number : 1899999999
Enter
Click on Insert Interval (Shift+F1)
No : 14
Year :
From number : 1400000000
To Number : 1499999999
Enter
click on Insert Interval (Shift+F1)
No : 16
Year :
From number : 1600000000
To Number : 1699999999
Mr.K.Santhosh KumarSAP FICO Consultant
Enter
Save and enter
8. Create Customer Invoice
Path: Accounting - Financial Accounting - Accounts Receivable - Document
Entry - F-22 - Invoice - General (Tcode:F-22)
Enter header Data (Type DR)
PstKy : 01 (Debit)
Account :__________ (Customer Number)
Enter
Amount : 25000
PstKy : 50 (Credit)
Account : 300100 (Service Revenue A/C)
Enter
Amount :*
Go to Menu bar
Document - simulate
Save
9. Customer Line items
Path: Accounting - Financial Accounting - Accounts Receivable - Account -
FBL5N - Display/Change Line Items (Tcode: FBL5N)
Customer Account :
Company Code :
Select open items
Execute (F8)
Mr.K.Santhosh KumarSAP FICO Consultant
10. Incoming payments
Path: Accounting - Financial Accounting - Accounts Receivable - Document
Entry - F-28 - Incoming Payments (Tcode:F-28)
Enter header data (Type DZ)
Account : 290100 (Bank A/C)
Amount : 25000
Account :________ (Customer A/C)
Enter
Go to Menu bar
Document - simulate
Save
See Report (Tcode: FBL5N)
11. Partial payments (Tcode:F-28)
Enter header data (Type DZ)
Account : 290100 (Bank A/C)
Amount : 5000
Account :___________ (Customer A/C)
Enter
Go to partial pmt Tab
Payment amount : 5000
Go to Menu bar
Document - simulate
Save
Mr.K.Santhosh KumarSAP FICO Consultant
See Report (Tcode: FBL5N)
12. Residual items (Tcode:F-28)
Definition: In Residual items, system will re determine terms of payments.
Enter header data (Type DZ)
Account : 290100 (Bank A/C)
Amount : 10000
Account :____________ (Customer A/C)
Enter
Go to Res.items Tab
Residual items : 10000 (Remaining amount to be paid)
Go to menu bar
Document - simulate
See Report (Tcode: FBL5N)
13. Automation of Bank Charges and Cash discount given
13.1 Creation of Cash Discount Given A/C (Tcode: FS00)
G/L Account : 400030
Company Code :
Click on Create
Go to Type/Description Tab
Account Group : EXPN Expenses
Select P&L Statement Acct
Short Text : Cash Dis. Given A/C
G/L Acct Long Text : Cash Discount Given Account
Go to Control Data Tab
Select only balances in local crcy
Select line items tab
Mr.K.Santhosh KumarSAP FICO Consultant
Sort Key : 001
Go to Create/Bank/Interest Tab
Field status Group : G001
Save
13.2 Assign Cash Discount Given A/C
Path: SPRO- Financial Accounting- Accounts Receivable and Accounts
Payable- Business Transactions- Incoming Payments- Incoming Payments
Global Settings- Define Accounts for Cash Discount Granted (Tcode: OBXI)
Execute
Chart of Accounts :
Enter
Save
Account : 400030
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
14. Incoming payment with bank Charges and Cash discount given
(Tcode:F-28)
Enter header data (Type DZ)
Account : 290100 (Bank A/C)
Amount : 9700
Bank Charges : 100
Account :__________( Customer A/C)
Enter
Cash discnt : 200
Go to Menu bar
Document - simulate
Save
15. Advance from customers
15.1. Create Advance from Customers G/L Master Record (Tcode:
FS00)
G/L Account : 190200
Company Code :
Click on Create
Go to Type/Description Tab
Account Group : LIAB Liabilities
Select Balance Sheet Account
Short Text : Adv.From Customer A/C
G/L Acct Long Text : Advance from Customers A/C
Go to Control data Tab
Mr.K.Santhosh KumarSAP FICO Consultant
Recon.Account for Acct type : D Customers
Select Line item display
Sort Key :031
Go to Create/Bank/interest Tab
Field status Group : G067
Save
15.2. Assign Advance from Customers Account
Path: SPRO- Financial Accounting- Accounts Receivable and Accounts
Payable- Business Transactions- Down Payment Received- Define
Reconciliation Accounts for Customer Down Payments (Tcode: OBXR)
Execute
Double click on
D A Dwn pmt Down payment
Chart of Accounts :
Enter
Recon.acct : 290300
Special G/L account : 190200
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
16. Scenario 1
Advance From Customer : 100000
Customer Invoice : 100000
16.1. Advance from Customer
Path: Accounting - Financial Accounting - Accounts Receivable - Document
Entry -Down Payment - F-29 - Down Payment (Tcode: F-29)
Enter header data (Type DZ)
Account :__________ (Customer number)
Special G/L Ind : A
Account : 290100 (Bank A/C)
Amount : 100000
Enter
Amount :*
Save
See Report (Tcode: FBL5N)
16.2. Create Customer Invoice (Tcode:F-22)
Enter Header data (Type DR)
PstKy : 01
Account :
Enter
Amount : 100000
PstKy : 50
Account : 300100
Enter
Amount :*
Mr.K.Santhosh KumarSAP FICO Consultant
Go to Menu bar
Document - simulate
Save
See Report (Tcode: FBL5N)
16.3. Clear Down payment against Invoice
Path: Accounting - Financial Accounting - Accounts Receivable - Document
Entry - Other - F-30 - Transfer with Clearing (Tcode: F-30)
Enter header data (Type DA)
Select Transfer posting with clearing
Click on Choose open items (F6)
Company code :
Account :
Special G/L Ind : A
Click on process open items (Shift+F4)
Save
17. Scenario 2
Advance from customer : 100000
Customer Invoice : 50000
17.1. Create Advance from customer (Tcode: F-29)
17.2. Customer Invoice (Tcode: F-22)
17.3. Transfer posting
Path: Accounting - Financial Accounting - Accounts Receivable - Document
Entry - Down Payment - F-39 - Clearing (Tcode: F-39)
Mr.K.Santhosh KumarSAP FICO Consultant
Enter header data (Type DA)
Account :________ (Customer number)
Keep blank Invoice ref. field
Enter
Transfer posting : 50000
Go to Menu bar
Document - simulate
Save
17.4. Clear Invoice against Down payment (Tcode: F-30)
Enter header data (Type DA)
Select Transfer posting with clearing
Click on Choose open items (F6)
Company code :
Account :
Click on process open items (Shift+F4)
Save
18. Scenario 3
Advance from customer : 100000
Customer Invoice : 150000
18.1. Advance from customer (Tcode: F-29): Rs100000
18.2. Customer Invoice (Tcode: F-22): Rs150000
Mr.K.Santhosh KumarSAP FICO Consultant
18.3. Transfer posting (Tcode: F-39): Rs100000
18.4. Reciept of Remaining amount (Tcode: F-28): Rs50000
19. Item Interest Calculation
Definition: System will calculate interest on Customer overdue invoices.
System will calculate interest each invoice wise, which is called item interest
calculation.
19.1. Define Interest Calculation Types (Tcode: OB46)
Path: SPRO - SAP Reference IMG- Financial Accounting- Accounts Receivable
and Accounts Payable- Business Transactions- Interest Calculation- Interest
Calculation Global Settings- Define Interest Calculation Types (Tcode:OB46)
Execute
Click on New Entries (F5)
Int ID :
Name : Item interest
Int calc.type : P (Item Interest Calculation)
Save and enter
19.2. Prepare Item Interest Calculation
Path: Same path
Execute
Click on New Entries (F5)
Mr.K.Santhosh KumarSAP FICO Consultant
Interest Ind. :
Ref.Date : 2 (Document date)
Calendar type : G
Select calculate interest on items before due date
Select only calculate interest on debit items
Select post interest
Save and enter
19.3. Define Reference Interest Rates
Definition: Reference interest rate nothing but interest rate
Path: SPRO- SAP Reference IMG- Financial Accounting- Accounts Receivable
and Accounts Payable- Business Transactions- Interest Calculation- Interest
Calculation- Define Reference Interest Rates (Tcode: OBAC)
Execute
Click on New Entries (F5)
Ref.int.rate :
Long text : 10% Interest
Description : 10% Interest
Date from :
Currency : INR
Save and enter
19.4. Define Time-Based Terms
Mr.K.Santhosh KumarSAP FICO Consultant
Path: same path (Tcode: OB81)
Execute
Click on New entries (F5)
Int.Calc.Indicator :
Currency Key : INR
Eff.From :
Sequential number : 1
Term : Debit interest: arrears interest calc.
Ref. interest rate : IM_USD_1
Save and enter
19.5. Enter Interest Values
Path: Same path (Tcode:OB83)
Execute
Click on New Entries (F5)
Reference :
Valid from :
Int.Rate :10
Save and enter
19.6. Create Interest Income G/L Master Record (Tcode: FS00)
G/L Account : 300020
Company Code :
Click on Create
Go to Type/Description Tab
Account Group : INCO Incomes
Mr.K.Santhosh KumarSAP FICO Consultant
Select P&L Statement acct
Short text : Interest Income
G/L Acct Long Text : Interest Income
Go to Control Data Tab
Select only balances in local crcy
Select line item display
Sort Key : 001
Go to Create/Bank/Interest Tab
Field status group : G001
Save
19.7. Assign Interest income and masking
Path: SPRO- SAP Reference IMG- Financial Accounting- Accounts Receivable
and Accounts Payable- Business Transactions- Interest Calculation- Interest
Posting- A/R: Calculation of Interest on Arrears (Tcode:OBV1)
Execute
Click on Accounts (F7)
Chart of accounts :
Enter
Acct symbol Currency G/L Acct
0003 INR 300020
1000 INR ++++++++
Save and enter
19.8. Maintain Reference Interest rate in customer master record
(Tcode: FD02)
Mr.K.Santhosh KumarSAP FICO Consultant
Customer :
Company Code :
Enter
Click on Company Code data (Ctrl+F2)
Interest Indic. :
Save
19.9. Post customer invoice with one month back date (Tcode:F-22)
19.10. Calculate item interest
Path: Accounting - Financial Accounting - Accounts Receivable - Periodic
Processing - Interest Calculation - Item Interest Calculation - FINT - Item
Interest Calculation (Tcode: FINT)
Customer Account : 1 9999999999
Company code :
Interest Indicator :
Select Test Run
Execute (F8)
Observe whether interest calculated properly or not
One time go back
Deselect Text run
Execute
Enter
19.11. Customer line item report (Tcode: FBL5N)
Observe customer is updated with interest or not
Mr.K.Santhosh KumarSAP FICO Consultant
19.12. Display document (Tcode: FB03)
20. Dunning procedure
Definition: If the business partners may fail behind on payments you can
send them a payment reminder or a dunning notice to remind them of their
outstanding debts
20.1. Define Dunning procedure
Definition: The Dunning procedure controls how dunning carried out by the
system. We can define as many dunning procedures as we like.
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Business Transactions- Dunning- Dunning
Procedure- Define Dunning Procedures (Tcode: FBMP)
Execute
Click on New procedure (F9)
Dunn.Procedure :
Name : Dunning procedure for _______
Dunning interval in days : 5
No. of dunning levels : 5
Select Standard transaction dunning
Ref. Dunning procedure for Texts :
Click on Dunning levels (F5)
Ignore warning messages
1 2 3 4 5
Calculate interest - - - - -
Always dun - - - - -
Print all items - - - - -
Click on Charges (F6)
Currency : INR
Enter
Dunn.Level Dunn.charges
1 300
Mr.K.Santhosh KumarSAP FICO Consultant
2 400
3 500
4 600
5 1000
Click on minimum amounts (F7)
Currency : INR
Enter
Dun Minimum amounts
1 10000
2 20000
3 30000
4 40000
5 50000
Click on Dunning Texts (F8)
Company code :
Select Customer
Enter
Click on New Company code (F9)
Company code :
Enter
Select Dunning by dunning area
Select Separate notice per dunning level
Save and enter
Click on Dunning Texts
Click on Dunning form
Click on Language EN Active original language
Dun Form
1 F150_BE_DUNN_01
2 F150_BE_DUNN_01
3 F150_BE_DUNN_01
4 F150_BE_DUNN_01
Mr.K.Santhosh KumarSAP FICO Consultant
5 F150_BE_DUNN_01
One time go back
Save and enter
20.2. Assign dunning to customer master (Tcode: FD02/ XD02)
Customer :
Company code :
Enter
Click on company code data (Ctrl+F2)
Go to Correspondence Tab
Dunn.Procedure :
Save
20.3. Run the Dunning procedure
Path: Accounting- Financial Accounting- Accounts Receivable- Periodic
Processing- F150 – Dunning (Tcode: F150)
Run Date :
Identification :
Go to Parameter Tab
Dunning date :
Docmnts posted up to :
Company code :
Customers : 1 9999999999
Save
Go to Status Tab
Status is Parameters were maintained
Click on Schedule (F7)
Select Start Immediately
Click on Schedule (F5)
Keep enter until status is Dun. Selection is complete
Click on dunning list (Shift+F6)
Enter
Mr.K.Santhosh KumarSAP FICO Consultant
One time go back
Click on Dunning print out (F6)
Enter
Keep on enter until status is dun.Printout is complete
Click on Dunn.history (Shift+F9)
Account type : D
Company code :
Customer : 1 9999999999
Execute (F8)
Select ______
Click on Display dunning notice (Shift+F4)
Click on Print preview
We can see Dunning notice 1
Three times go back
Click on Indiv.Dunn.notice
Company code :
Customer :
Click on Print out (F6)
Click on yes
Go to Menu bar
System – Services – Output Control
Select spool number
Credit Memo to vendors:
Path: Accounting- Financial Accounting- Accounts Payable- Document Entry-
F-41 - Credit Memo – General (Tcode: F-41)
Enter header data (Type KG)
PstKy : 21 (Debit)
Account : __________ (vendor Account)
Mr.K.Santhosh KumarSAP FICO Consultant
Enter
Amount : 20000
PstKy : 50 (Credit)
Account : 400100 (Service Account)
Enter
Amount : *
Go to Menu bar
Document – Simulate
Save
Mr.K.Santhosh KumarSAP FICO Consultant
Miscellaneous Concepts in Accounts payables and Accounts
Receivables
Define Industries
Definition: You can group together your vendors or Customers by industry.
The industry field is located in the general area of the vendor master record
and Customer Master Record. You specify what industry a business partner
belongs to by entering an industry key in its master record. You can use this
information for evaluations, for example, to create a vendor list and
customer list according to industry.
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Accounts
Receivable and Accounts Payable- Vendor Accounts- Master Data-
Preparations for Creating Vendor Master Data- Define Industries
(Tcode:OB44)
Execute
Click on New Entries (F5)
Indus. Description
_____ Steel Industry
_____ IT Industry
_____ Manufacturing Indust
Save and enter
Assign Industry in Vendor Master Record (Tcode:FK02) and
Customer Master Record (Tcode:FD02)
1.1.1. Assign Industry in Vendor Master Record (Tcode: FK02)
Vendor :
Mr.K.Santhosh KumarSAP FICO Consultant
Company code :
Select Control
Enter
Industry :
Save
Assign Industry in Customer Master Record (Tcode:FD02)
Customer :
Company Code :
Enter
Go to Control data Tab
Industry :
Save
Vendor and Customer Evaluation list (Tcode: FBL1N)
Vendor Evaluation List (Tcode: FBL1N)
Click on Dynamic selections (Shift+F4)
Industry :
Execute (F8)
Customer Evaluation list (Tcode:FBL5N)
Click on Dynamic selections (Shift+F4)
Industry :
Execute (F8)
Mr.K.Santhosh KumarSAP FICO Consultant
Define Accounting Clerks
Definition: you define the names of the accounting clerks under a name
identification code. You enter the identification code in the vendor master
records and customer master records which the accounting clerk supervises.
You can use this information for evaluations and for correspondence.
Path: Same path (Tcode: OB05)
Execute
Click on New Entries (F5)
Company Code :
Clerk :
Name of accounting clerk : Venkat
Office User : Accountant
Save and enter
2.1. Assign accounting clerk in Vendor Master Record (Tcode: FK02)
Vendor :
Company code :
Select Correspondence
Enter
Acctg Clerk :
Save
Mr.K.Santhosh KumarSAP FICO Consultant
2.2. Assign Accounting Clerk in Customer Master Record (Tcode:
FD02)
Customer :
Company Code :
Enter
Click on Company code Data (Ctrl+F2)
Go to Correspondence Tab
Acctg clerk :
Save
2.2.1. Vendor Line item report (Tcode: FBL1N)
Click on Dynamic Selections (Shift+F4)
Accounting clerk :
Execute (F8)
2.2.2. Customer Line Item Report (Tcode: FBL5N)
Click on Dynamic Selections (Shift+F4)
Accounting clerk :
Execute (F8)
Define Screen layout per Company Code (Customers)
Mr.K.Santhosh KumarSAP FICO Consultant
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Accounts
Receivable and Accounts Payable- Customer Accounts- Master Data-
Preparations for Creating Customer Master Data- Define Screen Layout per
Company Code (Customers) (Tcode:OB21)
Execute
Click on New Entries (F5)
Company code :
Select _____
Click on Edit field status (F2)
Double click on Account management
Select Head office field is suppress
Save
3.1. Creation of Customer Master Record (Tcode: FD01)
We can’t see head office field in master record of respective Company Code
4. Define Screen Layout per Company Code (Vendors)
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Accounts
Receivable and Accounts Payable- Vendor Accounts- Master Data-
Preparations for Creating Vendor Master Data- Preparations for Creating
Vendor Master Data- Define Screen Layout per Company Code (Vendors)
(Tcode:OB24)
Execute
Mr.K.Santhosh KumarSAP FICO Consultant
Click on New Entries (F5)
Company code :
Select _____
Click on Edit field status (F2)
Double click on Account management
Select Head office field is suppress
Save
4.1. Creation of Vendor Master Record (Tcode: FK01)
We can’t see head office field in master record of respective Company Code
5. Define Screen Layout per Activity (Vendors)
Path: SPRO – SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Vendor Accounts- Master Data-
Preparations for Creating Vendor Master Data- Define Screen Layout per
Activity (Vendors) (Tcode:OB23)
Execute
Double click on Change Vendor (Accounting)
Double click on Company Code Data
Double click on Account management
Select Sort Key Display
Save
5.1. Change Vendor Master Record (Tcode: FK02)
We can’t Change Sort key field in vendor master record, which is display
mode
Mr.K.Santhosh KumarSAP FICO Consultant
6. Define Screen Layout per Activity (Customers)
Path: SPRO- SAP Reference IMG- Financial Accounting- Accounts Receivable
and Accounts Payable- Customer Accounts- Master Data- Preparations for
Creating Customer Master Data- Define Screen Layout per Activity
(Customers) (Tcode: OB20)
Execute
Double click on Change Customer (Accounting)
Double click on Company Code Data
Double click on Account management
Select Sort Key Display
Save
6.1. Change Customer Master Record (Tcode: FD02)
We can’t Change Sort key field in customer master record, which is display
mode
7. Assign G/L Account for down payment request
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Business Transactions- Down Payment
Made- Define Alternative Reconciliation Account for Down Payments (Tcode:
OBYR)
Execute
Double click on K F Pmt req Down payment request
Chart of accounts :
Enter
Recon.Acct : 190100
Mr.K.Santhosh KumarSAP FICO Consultant
Special G/L Account : 290200
Save and enter
7.1. Create Down payment request
Path: Accounting- Financial Accounting- Accounts Payable- Document Entry-
Down Payment- F-47 – Request
Enter header data (Type KA)
Account :
Trg.sp.G/L ind. : A
Enter
Amount : 25000
Due on :
Save
Down payment request number :
7.2. Vendor line item report (Tcode: FBL1N)
Vendor Account :
Company Code :
Select open items
Select noted items
Execute (F8)
7.3. Down payment Against Request (Tcode: F-48)
Enter header data (Type KZ)
Account :
Special G/L ind : A
Mr.K.Santhosh KumarSAP FICO Consultant
Account : 290100
Amount :
Click on request (F6)
Select Request number
Click on Create down payments (Shift+F1)
Save
8. Define Reason codes
Definition: Reason codes will be useful for outgoing payment differences
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Business Transactions- Outgoing
Payments- Manual Outgoing Payments- Overpayment/Underpayment- Define
Reason Codes (Manual Outgoing Payments) (Tcode: OBBE)
Execute
Company code :
Enter
Click on New Entries (F5)
RCD : R1
Short text : Payment differences
Long text : Payment differences
Save and enter
8.1. Create Payment difference G/L Account (Tcode: FS00)
G/L Account : 400095
Company code :
Click on create
Go to Type/Description Tab
Account Group : EXPN Expenses
Select P&L statement acct
Short Text : Payment diff. A/C
G/L Acct Long Text : Payment Difference Account
Go to Control data tab
Select only balances in local crcy
Mr.K.Santhosh KumarSAP FICO Consultant
Select line item display
Sort Key : 001
Go to Create/Bank/Interest Tab
Field status group : G001
Save
8.1.1 Assign payment difference account:
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Business Transactions- Outgoing
Payments- Manual Outgoing Payments- Overpayment/Under payment-
Define Accounts for payment differences (Manual Outgoing Payments)
Execute
Chart of Accounts :
Transactions : ZDI
Select Reason code :
Excute
Reason code Account
10 400095
Save and enter
8.2. Post payment differences (Tcode: F-53)
Enter Header data (Type KZ)
Account : 290100 (Bank A/C)
Amount : 49999
Account :
Enter
Reason code : R1
Click on Charge off diff. (F7)
PstKy : 50
Account : 400040 (Payment diff. A/C)
Mr.K.Santhosh KumarSAP FICO Consultant
Enter
Amount : 1
Click on Process open items (Shift+F4)
Go to Menu bar
Document – Simulate
Save
9. Correspondence
Definition: Correspondence nothing but notice or statements
Path: Accounting- Financial Accounting- Accounts Payable- Account-
Correspondence- FB12 – Request (Tcode: FB12)
Company Code :
Enter
Double click on SAP06 Account statements
Vendor :
Enter
Postings from :
Posting to :
Enter
9.1. See Account statement
Path: same path (Tcode: F.64)
Company code :
Execute (F8)
Double click on Vendor number
Ignore warning messages
Enter
Bill discounting: 2 types.
1. Fund based limits:
Cash credits Local sales Bank over draft Packing creditsBill discounting Export sales order
Mr.K.Santhosh KumarSAP FICO Consultant
2. Non fund based limits:
Bank guarantee (B/G)Letter of Credit (L/C)
Example:
30 days creditAML Discount with SBI J. K. Synthetics Liability is unclear (Contingent liability)It should shown in schedule VI – balance sheet as notes to be accounts
Bill discount entries normal package & SAP:
Normal A/C:a. Sales Customer A/C Dr
To sales A/C
b. Bill of exchange payment:No Entry
c. Bill discounting Bank current A/C Dr Interest A/C Dr To Bank bill discountd) Report to view customer wise, Bill wise due data wise and bank wise out standing available in SAP
e) Contingent liability Bank bill discount A/C Dr
To Customer A/C
SAP: a)Customer A/C Dr Sundry Debtors A/C Dr
To Sales A/C
b) Customer special G/L (W) A/C Dr (Bill of Exchange)To Customer with clearing A/C (Sundry Debtors)
Bank A/C Dr Interest A/C Dr
To Bank Bill discount A/C
Mr.K.Santhosh KumarSAP FICO Consultant
The above 2 entries together Bank Bill Discount Dr (with clearing) To customer special (w) with clearing
(Sundry Debtors bill of exchange)
Presentation to balance sheet (in SAP)
Sundry Debtors = Sundry DebtorsSundry Debtors Bill of exchange – Debit | Net zero.Bank Bill Discounting – Credit |
Customization:
1. Creation of 2 G/L Accounts:
a) Sundry Debtors Bill of exchange – Under current assets loans and advances. b) SBI Bill discounting: - Under secured Loans
Path: use the transaction code: (FS00)
Give the G/L Account No: 200111 (Current Assets, Loans & Advances)
Company code: AML
Select with template button
Give the G/L A/C No: 200110 (Sundry Debtors)
Company code: AML
Enter
Change short text to Sundry Debtors (B/E)
Change G/L long text: Sundry Debtors (Bills of exchange)
Other fields are same
Save (or) (Ctrl + s)
2) G/L Account No: 100301Company code: AMLSelect with template button
Mr.K.Santhosh KumarSAP FICO Consultant
Select G/L Account No: 100300 (SBI Rupee term loan)Company Code: AMLEnter
Change the short text and G/L Account long text to SBI Bill discountingSelect control data tabSelect open item management check box
Select create/bank/interest tab
Select post automatically only check box
Save
c) Link between Sundry Debtors and Sundry debtors Bill of exchange:
Path: SPRO Financial Accounting Bank Accounting Business transactions Bill of exchange transactions Bill of exchange receivable Post bill of exchange receivable define alternative reconciliation account for bills of exchange receivable (Transactions Code OBYN)
Double click on bill of exchange receivable/wGive the chart of accounts: AML
Enter
Reconciliation A/C 200110
Special G/L A/C 200111
Save
Save in your request
d) Link for Sundry Debtors Bank Current Account and Bank Bill discounting A/C:
Path: SPRO Financial Accounting Bank Accounting Business transactions Bill of exchange transactions Bills of exchange receivable Present bill of exchange receivable at bank define bank sub accounts (Transaction Code OBYK)
Select new entries button
Give the chart of accounts: AML
Mr.K.Santhosh KumarSAP FICO Consultant
Bank A/C: 200105 (SBI Current Account)
Usage: Select discounting
Special G/L Integrator: W
Customer’s reconciliation Account: 200110
Sub sub account for Liability: 100302 (SBI Bill discount)
Save
Save in your request
Sales posting: (F-22)
Document date: 30.08.2006
Type: DR
Company Code: AML
Posting key: 01
Accounts: 6200001
Enter
Amount: 9999
Business area: AMH
Payment Terms: set NT 30 – Net 30
Text: Sales posting
Enter
Ignore the warning message, press enter
Posting key: 50
Account No: 300000 (Sales Account)
Mr.K.Santhosh KumarSAP FICO Consultant
Enter
Amount: ‘*’
Business area: AMH
Text: ‘+’
Document Simulate and save
Bill exchange payment:
Path: Accounting Financial Accounting account receivable document entry bill of exchange Payment (F-36)
Document date: 30.08.2006
Type: DZ
Company code: AML
Posting key: 09 (special G/L Debit)
Give the customer A/C: 6200001
Special G/L Indicator: WEnter
Give the amount: 9999
Business Area: AMH
Text: bill of exchange payment
Due on: 29.09.2006
Planned usage: Select, discounting
Domicile: SBI
Mr.K.Santhosh KumarSAP FICO Consultant
Central bank location: Main branch, Hyderabad
Select choose open items button
Select process open items button
Double click on receivable amount: 9999
Save
Note down document no: 500003
Bill of exchange discounting:
Same path: (F-33)
Give the document date: 30.08.2006Type: DACompany code: AMLGive the bank account: 200105 (SBI Current assets)Business area: AMHAmount: 9000Text: SBI Bill discountingPosting key: 40Give the account No: 400400 (Interest A/C)EnterAmount: 999Business area: AMHText: ‘+’Press select bill of exchange buttonGive the document No: 500003Document Simulate and save
Report to view customers wise, bill wise, due date wise, and bank wise out standings:
Path: Accounting Financial accounting Accounts receivable Periodic processing Bill of Exchange processing Korea Bill of exchange management (S _ ALR _ 87012213)
Give the chart of Accounts: AML
Mr.K.Santhosh KumarSAP FICO Consultant
G/L Account No: 200111
Company Code: AML
Special G/L Indicator: W
Usage: Select D (Discounting)
Select discounted/collected radio button
Execute
Select current lay out button
Keep the fieldsDue date, document No, customer, received from document date
Domicile, amount in local currency
Select copy button, select save lay out button
Select lay out name: AML
Description: AML lay out Select save
Reverse contingent liability:
Path: Accounting Financial accounting Accounts receivable document entry Bill of Exchange reverse contingent liability (F-20)
Document date& posting: 27.09.2006
Type: DA
Company code: AML
Currency: INR
G/L Account No: 200111 (Sundry Debtors bill of exchange)
Mr.K.Santhosh KumarSAP FICO Consultant
Usage: Select discounting
Due by date: 30.09.2006
Customer: 6200001
Select edit line items button
Ignore warning messages: Press enter
Select drop down button for currency field+ is set item to active++ set items in block to active- set items not inactive-- set items in blocks to inactiveSelect + set items to activeSaveFrom the menu select document display.If bill is dishonored: If bill is dishonored your contingent liability becomes actual liability
Pass the all the entries previous and pass entries (F-22)
01 Customer A/C Dr50 SBI Current A/C
Credit Memo to vendors:
Path: Accounting- Financial Accounting- Accounts Payable- Document Entry-
F-41 - Credit Memo – General (Tcode: F-41)
Enter header data (Type KG)
PstKy : 21 (Debit)
Account : __________ (vendor Account)
Enter
Amount : 20000
PstKy : 50 (Credit)
Account : 400100 (Service Account)
Enter
Mr.K.Santhosh KumarSAP FICO Consultant
Amount : *
Go to Menu bar
Document – Simulate
Save
Credit Memo to Customer
Path: Accounting- Financial Accounting- Accounts Receivable- Document
Entry- F-27 - Credit Memo – General (Tcode: F-27)
Enter header data (Type DG)
PstKy : 11 (Credit)
Account : ___________ (Customer account)
Enter
Amount : 20000
PstKy : 40 (Debit)
Account : 300100 (Service Revenue Account)
Enter
Amount : *
Go to Menu bar
Document – Simulate
Save
Withholding Tax:
Withholding Tax nothing but TDS (Tax Deduct at Source)
Withholding tax is an income tax which is deducted at the source of the
revenue. The party that is subject to tax does not remit the withholding tax
to the Tax authorities himself.
Check withholding Tax countries
Mr.K.Santhosh KumarSAP FICO Consultant
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Basic Settings- Check Withholding Tax Countries
Execute
Click on New Entries (F5)
Cty : IN
WCty : IN
Description : India
Save and enter
Define Withholding Tax Keys
Definition: If national tax authorities use official withholding tax keys to
identify the different with holding tax types
Ex: Salaries, Contractors, Interest on deposits, Professional and technical
services, Commission and brokerage etc
Path: same path
Execute
Country Key : IN
Enter
Click on New Entries (F5)
Off. Key Name
192 TDS on Salaries
193 TDS on Interest on securities
194A TDS on interest other than securities
194C TDS on payments to contractors
194H TDS on Commission and brokerage
194I TDS on rent
194J TDS on prof & Tech Services
Save and enter
Define Reasons for exemption
Definition: we define reasons for exemption from withholding tax.
Path: same path
Mr.K.Santhosh KumarSAP FICO Consultant
Execute
Country key : IN
Click on New Entries (F5)
Exempt. resn : ZE
Text : Exempt from withholding tax
Save and enter
Maintain Types of Recipient
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Financial
Accounting Global Settings (New)- Withholding Tax- Withholding Tax- Basic
Settings- Maintain Types of Recipient (Tcode: OB97)
Execute
Click on New Entries (F5)
Cty Rec.ty Description
IN ____ Company
IN ____ Other than Company
Save and enter
Define Withholding Tax Type for Invoice Posting
Definition: withholding tax code only controls the percentage rate of the
withholding tax
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Calculation- Withholding Tax Type- Define Withholding Tax Type for
Invoice Posting
Execute
Country key : IN
Enter
Click on New Entries (F5)
Withhld tax type : _____ Withholding tax type for Invoice
posting
Select Gross amount
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
Define Withholding Tax Type for Payment Posting
Path: Same path
Execute
Country key : IN
Enter
Click on New Entries (F5)
Withhld tax type : ____ Withholding tax type for payment
posting
Select Gross amount
Select W/tax pmnts
Save and enter
Check Recipient Types
Definition: This is required to categorize vendor
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Financial
Accounting Global Settings (New) - Withholding Tax- Extended Withholding
Tax- Basic Settings- Check Recipient Types
Execute
Country key : IN
Enter
Wth.t.typeRec.ty Name
___ CO Company
___ CO Company
___ OT Other
___ OT Other
Save and enter
Define business places
Definition: Business places are the location where tax is deducted. A
company has various offices at head office, regional offices etc. Tax can be
deducted at any these places. Withholding tax tracking is thus done based
on business place.
Mr.K.Santhosh KumarSAP FICO Consultant
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Basic Settings- India- Define Business Places
Execute
Click on New Entries (F5)
Company code :
Sect. Code :
Name1 : Head office
Enter
Name : Head office
Street : Ameerpet
House number : 234
Postal code : 123456
City : Hyderabad
Country : IN
Enter
Save and enter
Withholding tax codes
Definition: the withholding tax codes determines the withholding tax
percentage
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Calculation- Withholding Tax Codes- Define Withholding Tax Codes
Execute
Country key : IN
Enter
Click on New Entries (F5)
Withhld tax type :
W/tax code :
Mr.K.Santhosh KumarSAP FICO Consultant
Off. W/Tax Key : 194C
Description : 194C 2% TDS on contractors
Percentage subject to tax : 100
Post.indic : 1
With/tax rate : 2
Save and enter
Assign withholding tax types to Company codes
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Company Code- Assign Withholding Tax Types to Company Codes
Execute
Click on New Entries (F5)
Company code :
Withhld tax type :
Recipient type : CO
Select with/tax agent
W/tax obligated frm : 01.04.2009
Oblig.to w/tax until : 31.03.2010
Select Subject to tax
Select Self-withhldg tax
Save and enter
Activate Extended Withholding Tax
Path: Same path
Execute
Go to position button
Company code :
Enter
Select Ext.w/tax
Save and enter
Creation of TDS on Contractors A/C (Tcode: FS00)
G/L Account : 190300
Mr.K.Santhosh KumarSAP FICO Consultant
Company code :
Click on create
Go to Type/Description Tab
Account Group : LIAB Liabilities
Select Balance sheet account
Short Text : TDS on Contr. A/C
G/L Acct Long Text : TDS on Contractors Account
Go to Control data Tab
Select only balances in local crcy
Select Line item display
Sort Key : 001
Go to Create/Bank/Interest Tab
Field status group : G001
Save
Define Accounts for Withholding Tax to be Paid Over
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Postings- Accounts for Withholding Tax- Define Accounts for Withholding
Tax to be Paid Over
Execute
Chart of accounts :
Enter
Select withholding tax code
Select withholding tax type
Save
Withholding tax type :
Withholding tax code : I1
Account : 190300
Save and enter
Change Vendor Master Record (Tcode: FK02)
Mr.K.Santhosh KumarSAP FICO Consultant
Vendor :
Company Code :
Select withholding tax
Enter
WH Tax Country : IN
With. T. type :
W/Tax Code : I1
Select liable
Rec.ty : Co
Save
Ignore warning messages
Vendor Invoice (Tcode: F-43)
Enter Header data (Type KR)
PstKy : 31 (Credit)
Account : _____________ (Vendor Number)
Enter
Amount : 100000
Sectn : HO
PstKy : 40 (Debit)
Account : 400100 (Service A/C)
Enter and enter
Amount :*
Go to Menu bar
Document – Simulate
Save
Mr.K.Santhosh KumarSAP FICO Consultant
Asset Accounting:
Asset Accounting Component supports Monitoring of Assets or tracking of
assets. This Component supports Purchase of asset, Sale of asset, Profit on
sale of asset, loss on sale of asset, Scrapping of asset, depreciation on asset
etc.
1. Maintain Chart of Depreciaton
Definition: Chart of depreciation means list of depreciation areas.
Depreciation Area means one set of book keeping.
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Asset
Accounting- Organizational Structures- Copy Reference Chart of
Depreciation/Depreciation Areas (Tcode:OAP1)
Execute
Double click on Copy Reference Chart of Depreciation
Click on Copy org.object (F6)
From chart of dep. : 0DE
To chart of dep. :
Enter, Enter, Enter and enter
Mr.K.Santhosh KumarSAP FICO Consultant
One time go back
Double click on Specify Description of Chart of Depreciation
Go to position button
Chart of Dep. :
Enter
Description : Chart of Depreciation for
Save and enter
One time go back
Double click on Copy/Delete Depreciation Areas
Chart of Dep. :
Enter
Select 2,3,10,15,20,30,31,32,41 and 51 (Select all depreciation areas except
1)
Click on Delete (Shift+F2)
Save and enter and enter
2. Assign Input Tax Indicator for Non-Taxable Acquisitions
Path: SPRO- Financial Accounting (New) - Asset Accounting- Integration with
the General Ledger- Assign Input Tax Indicator for Non-Taxable Acquisitions
Execute
Go to Position button
Company Code :
Enter
Input Tax : V0
Output Tax : A0
Save and enter
3. Assign Chart of Depreciation to Company Code
Mr.K.Santhosh KumarSAP FICO Consultant
Path: SPRO- Financial Accounting (New) - Asset Accounting- Organizational
Structures- Assign Chart of Depreciation to Company Code (Tcode:OAB1)
Execute
Go to position button
Company code :
Enter
Chrt Dep :
Save and enter
4. Specify Account Determination
Definition: Account Determination is a bridge to flow the asset values to
General ledger accounting (This is integration point between General ledger
and Asset accounting)
Path: SPRO- Financial Accounting (New) - Asset Accounting- Organizational
Structures- Asset Classes- Specify Account Determination
Execute
Click on New Entries (F5)
Acct.determ. Name of account determination
_____ Buildings
_____ Machinery
_____ Computers
Save and enter
5. Create Screen Layout Rules
Definition: Screen layout controls Fields in Asset Master record.
Mr.K.Santhosh KumarSAP FICO Consultant
Path: Same path
Execute
Select 1010, 2000 and 3000
Click on copy as (F6)
_____ Buildings
_____ Computers
_____ General machines
Save and enter
6. Define Number Range Interval
Path: Same path
Company Code :
Click on change interval
Click on Insert interval (Shift+F1)
No : 01
From number : 100000
To number : 199999
Enter
Click on Insert interval (Shift+F1)
No : 02
From number : 200000
To number : 299999
Enter
Click on Insert interval (Shift+F1)
No : 03
From number : 300000
To number : 399999
Enter
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
7. Define Asset Classes
Definition: Asset class means which are having same characteristic features.
Path: same path
Execute
Click on New entries (F5)
Asset Class : _____ Buildings
Short Text : Buildings
Account determ. :
Scr.layout rule :
Number range : 01
Save and enter
8. Determine Depreciation Areas in the Asset Class
Path: SPRO- Financial Accounting- Asset Accounting- Valuation- Determine
Depreciation Areas in the Asset Class
Execute
ChDep :
Enter
Go to position button
Asset Class :
Enter
Select _______
Double click on Depreciation Areas
Screen layout : 2000
Deselect Area deact.
Mr.K.Santhosh KumarSAP FICO Consultant
Save and enter
9. Maintain Depreciation Key
Definition: Depreciation keys nothing but Depreciation rate.
Path: SPRO- Financial Accounting- Asset Accounting- Depreciation- Valuation
Methods- Depreciation Key- Maintain Depreciation Key
Execute
Click on Select All (F7)
Click on Activate (Ctrl+F3)
Enter
Save and enter
10. Create G/L Master records (FS00)
10.1. Building A/C
G/L Account : 200100
Company Code :
Click on Create
Go to Type/Description Tab
Account group : ASST Assets
Select Balance sheet Account
Short Text : Buildings A/C
G/L Acct Long Text : Buidlings Account
Go to Control data Tab
Recon acct for Account type : A Assets
Select line item display
Mr.K.Santhosh KumarSAP FICO Consultant
Sort Key : 018 (Asset Number)
Go to Create/bank/interest Tab
Field status group : G007
Save
10.2. Sale of Asset
G/L Account : 300030
Company Code :
Click on Create
Go to Type/Description Tab
Account group : INCO Incomes
Select P&L Statement Acct
Short Text : Sale of Asset A/C
G/L Acct Long Text : Sale of Asset Account
Go to Control data Tab
Select only balances in local crcy
Select line item display
Sort Key : 001
Go to Create/bank/interest Tab
Field status group : G007
Save
10.3. Profit on sale of Asset
G/L Account : 300040
Company Code :
Click on Create
Go to Type/Description Tab
Account group : INCO Incomes
Select P&L Statement Acct
Mr.K.Santhosh KumarSAP FICO Consultant
Short Text : Pr.Sale of Asset A/C
G/L Acct Long Text : Profit on Sale of Asset Account
Go to Control data Tab
Select only balances in local crcy
Select line item display
Sort Key : 001
Go to Create/bank/interest Tab
Field status group : G007
Save
10.4. Loss on Sale of Asset
G/L Account : 400040
Company Code :
Click on Create
Go to Type/Description Tab
Account group : EXPN Expenses
Select P&L Statement Acct
Short Text : LS.Sale of Asset A/C
G/L Acct Long Text : Loss on Sale of Asset Account
Go to Control data Tab
Select Only balances in local crcy
Select line item display
Sort Key : 001
Go to Create/bank/interest Tab
Field status group : G007
Save
10.5. Scrap on Assets
G/L Account : 400050
Mr.K.Santhosh KumarSAP FICO Consultant
Company Code :
Click on Create
Go to Type/Description Tab
Account group : EXPN Expenses
Select P&L Statement Acct
Short Text : Scrap on Asset A/C
G/L Acct Long Text : Scrap on Asset Account
Go to Control data Tab
Select only balances in local crcy
Select line item display
Sort Key : 001
Go to Create/bank/interest Tab
Field status group : G007
Save
10.6. Depreciation A/C
G/L Account : 400060
Company Code :
Click on Create
Go to Type/Description Tab
Account group : EXPN Expenses
Select P&L Statement Acct
Short Text : Depreciation A/C
G/L Acct Long Text : Depreciation Account
Go to Control data Tab
Select Only balances in local crcy
Select line item display
Sort Key : 001
Go to Create/bank/interest Tab
Field status group : G007
Save
Mr.K.Santhosh KumarSAP FICO Consultant
10.7. Acc.Dep Account
G/L Account : 110000
Company Code :
Click on Create
Go to Type/Description Tab
Account group : LIAB Liabilities
Select Balance sheet Account
Short Text : Acc.Dep A/C
G/L Acct Long Text : Accumulated Depreciation Account
Go to Control data Tab
Recon.account for acct type : A Assets
Select line item display
Sort Key : 001
Go to Create/bank/interest Tab
Field status group : G007
Save
11. Assign G/L Accounts
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Asset
Accounting- Integration with the General Ledger- Assign G/L Accounts
Execute
ChDep :
Enter
Select Chrt/Accts
Double click on Account determination
Go to position button
Account Determ. :
Enter
Mr.K.Santhosh KumarSAP FICO Consultant
Select _____
Double click on Balance sheet accounts
Acquisition:Acquis. and production costs : 200100
Loss made on asset retirement w/o reven. : 400050
Clearing acct. revenue from asset sale : 300030
Gain from asset sale : 300040
Loss from asset sale : 400040
Double click on Depreciation
Acc.dep. accnt.for ordinary depreciation : 110000
Expense account for ordinary depreciat. : 400060
Save and enter and enter
12. Maintain Number ranges for Depreciation posting (Tcode: FBN1)
Company code :
Click on change interval
Click on Insert Interval (Shift+F1)
No : 04
Year :
From Number : 0400000000
To Number : 0499999999
Enter
Save and enter
13. Screen layout Rule
Definition: Screen layout rule controls fields in Asset Master Record
Path: SPRO- Financial Accounting (New) - Asset Accounting- Master Data-
Screen Layout- Define Screen Layout for Asset Master Data
Execute
Mr.K.Santhosh KumarSAP FICO Consultant
Double click on Define Screen Layout for Asset Master Data
Go to Position button
Screen layout :
Enter
Select _____
Double click on Logical Field groups
Select 3 Time dependent data
Double click on Field Group rules
Select Cost center optional
Save and enter
14. Creation of Asset Master Record
Path: Accounting- Financial Accounting- Fixed Assets- Asset- Create- AS01-
Asset (Tcode: AS01)
Asset Class :
Company Code :
Enter
Go to General data Tab
Description : Building/Ameerpet
Capitalized on :
Go to Deprec.Areas Tab
DKey : DG20
Useful life : 50
Odep.start : 12.01.2010
Save
15. Purchase of Asset
Mr.K.Santhosh KumarSAP FICO Consultant
15.1. With Bank (Tcode: F-02)
Enter Header data (Type SA)
PstKy : 70
Account : ______-__ (Asset Number)
TType : 100
Enter
Amount : 10000000
PstKy : 50
Account : 290100 (Bank A/C)
Enter
Amount : *
Go to Menu bar
Document - simulate
Save
15.2. With Vendor
path: Accounting - Financial Accounting - Fixed Assets - Posting - Acquisition
- External Acquisition - F-90 - With Vendor (Tcode:F-90)
Enter header data (Type KR)
PstKy : 31
Account : __________ (Vendor Number)
Enter
Amount : 20000000
PstKy : 70
Account :
TType : 100
Enter
Amount :*
Mr.K.Santhosh KumarSAP FICO Consultant
Go to Menu bar
Document - simulate
Save
16. Sale of asset
16.1. With Bank (Tcode: F-02)
Enter Header data (Type SA)
PstKy : 40
Account : 290100
Enter
Amount :
PstKy : 50
Account : 300030
Enter
Amount : *
Select Asset Retirement
Go to Menu bar
Document - simulate
Asset Number :
Select Complete retirement
Enter
Save
Mr.K.Santhosh KumarSAP FICO Consultant
16.2. With Customer
Path: Accounting - Financial Accounting - Fixed Assets - Posting - Retirement
- Retirement w/Revenue - F-92 - With Customer (Tcode:F-92)
Enter Header data (Type DR)
PstKy :
Account :
Enter
Amount :
PstKy :
Account :
Enter
Amount :*
Select Asset retirement
Go to Menu Bar
Document - simulate
Asset number :
Sub number :
Asset value date :
Select Complete Retirement
Enter
Save
Mr.K.Santhosh KumarSAP FICO Consultant
17. Takeover of existing assets (Tcode: AS91)
Asset Class :
Company Code :
Enter
Description :
Capitalized on : 01.01.2000
Go to Deprec.Areas Tab
DKey : DG20
Use life : 30
Click on Takeover values (Shift+F8)
Cum.acquis.val. 2000000
Accm.ord.deprec : 500000
Enter
Save and enter
18.Scrap on asset:
Path: Accounting - Financial Accounting - Fixed Assets - Posting - Retirement
– ABAVN-Asset retirement by scrapping (Tcode: ABAVN)
Execute
Click on change company code
Company code : Scrap on asset a\c Dr.
Asset : Accumulate depreciation a\c Dr.
Go to transation data tab To Asset a\c
Document date :
Asset value date :
Mr.K.Santhosh KumarSAP FICO Consultant
Click on simulate
Save and enter
19.Asset transfer
19.1 Asset transfer with in company code: (Business area to
business area)
Path: Accounting - Financial Accounting - Fixed Assets - Posting - Transfer –
ABUMN-Transfer with in company code (Tcode:ABUMN)
excute
Asset : (Giver area asset number)
Goto transaction data tab
Document date :
Asset value date :
Select Existing asset : (Receiver area asset number)
19.2Asset transfer for Inter company code:
Path : Same path (Tcode: ABT1N)
Company code : (Giver company code)
Asset : (Giver area asset number)
Go to transaction data tab
Company code : (Receiver company code)
Existing asset : (Receiver area asset number)
Note : you can go to Assign G/L Accounts and you can give to
receiver company clearing account number(FS00) in giver Assign
G/L Accounts.
And you can give to giver company clearing account number(FS00)
in receiver Assign G/L Accounts
Mr.K.Santhosh KumarSAP FICO Consultant
17. Depreciation run
Path: Accounting - Financial Accounting - Fixed Assets - Periodic Processing -
Depreciation Run - AFAB - Execute (Tcode: AFAB)
Company Code :
Mr.K.Santhosh KumarSAP FICO Consultant
Fiscal year :
Posting period : 1
Select Test run
Select Error analysis
Execute
Note: If there is any errors, Click on Error list (F7)
One time go back
Deselect Test run
Go to menu bar
Program - Execute in background
Output device : LP01
Number copies : 1
Enter
Click on Immediate
Save (Ctrl+S)
Go to Menu bar
System -services - output Control
Execute (F8)
Select Spool no.
Display contents (F6)
18. Document display (Tcode: FB03)
Click on Document list (Shift+F8)
Company Code :
Document type : AF
Execute
Mr.K.Santhosh KumarSAP FICO Consultant
19. Asset explorer
Path: Accounting- Financial Accounting- Fixed Assets- Asset- AW01N - Asset
Explorer (Tcode: AW01N)
Company code :
Asset : _________ ____
Enter
MM Integration
1. Define plant
Definition: Plant is an operational area.
Path: SPRO- SAP Reference IMG- Enterprise Structure- Definition- Logistics -
General- Define copy, delete, check plant (Tcode: OX10)
Mr.K.Santhosh KumarSAP FICO Consultant
Execute
Double click on Copy, delete, check plant
Click on copy org.object (F6)
From plant : 1000
To plant :
Enter, Enter, enter and enter
One time go back
Double click on Define Plant
Go to position button
Plant :
Enter
Select ______
Click on Detail (Ctrl+Shift+F2)
Name1 : Bollaram Plant
Click on Address (Shift+F5)
Name : Bollaram Plant
Street : Bollaram
House number : 1-234
Postal code : 123456
City : Hyderabad
Country : IN
Enter
Save and enter
2. Maintain storage location
Definition: A storage location is the place where stock is physically kept
within a plant.
Path: SPRO- SAP Reference IMG- Enterprise Structure- Definition- Materials
Management- Maintain storage location (Tcode: OX09)
Mr.K.Santhosh KumarSAP FICO Consultant
Execute
Plant :
Enter
Click on Select all (F7)
Click on Delete (Shift+F2)
Enter
Click on New Entries (F5)
SLoc Description
_____ Raw Material
_____ Semi Finished
_____ Finished Goods
Save and enter
3. Maintain purchasing organization
Definition: the purchasing organization is responsible for all purchasing
activities (including the processing of requests for quotations and purchase
orders.
Path: Same path (Tcode: OX08)
Execute
Click on New Entries (F5)
Purch.Organization :
purch.Org.Descr. : Pur. Org for ______
Save and Enter
4. Assign plant to company code
Mr.K.Santhosh KumarSAP FICO Consultant
Path: SPRO- SAP Reference IMG- Enterprise Structure- Assignment- Logistics -
General- Assign plant to company code (Tcode:OX18)
Execute
Click on New Entries (F5)
CoCd :
Plnt :
Save and enter
5. Assign purchasing organization to company code
Path: SPRO- SAP Reference IMG- Enterprise Structure- Assignment- Materials
Management- Assign purchasing organization to company code
(Tcode:OX01)
Execute
Go to Position button
Purchasing Org. :
Enter
CoCd :
Save and enter
6. Assign purchasing organization to plant
Path: same path (Tcode: OX17)
Execute
Click on New Entries (F5)
POrg. :
Plant :
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
7. Define Attributes of Material Types
Definition: Whenever you create a material master record, you must assign it
to a material type.
Path: SPRO- SAP Reference IMG- Logistics General- Material Master- Basic
Settings- Material Types- Define Attributes of Material Types (Tcode: OMS2)
Execute
Go to Position button
Material type : ROH
Enter
Select ROH
Double click on Quantity/Value updating
Go to position button
Valuation Area :
Material type : ROH
Select Qty updating
Select Value update
Save and enter
8. Maintain Company Codes for Materials Management
Path: SPRO - SAP Reference IMG- Logistics General- Material Master- Basic
Settings- Maintain Company Codes for Materials Management (Tcode: OMSY)
Execute
Mr.K.Santhosh KumarSAP FICO Consultant
Go to Position button
Company code :
Enter
Year :
Period :
Select ABp
Save and enter
9. Set Tolerance Limits for Price Variance
Path: SPRO- SAP Reference IMG- Materials Management- Purchasing-
Purchase Order- Set Tolerance Limits for Price Variance (Tcode: OMEU)
Execute
Select
CoCd TlKy
0001 PE
0001 SE
Click on Copy as (F6)
Company code :
Enter
Company Code :
Enter
Save and enter
10. Set Tolerance Limits
Path: SPRO- SAP Reference IMG- Materials Management- Inventory
Management and Physical Inventory- Goods Receipt- Set Tolerance Limits
(Tcode: OMC0)
Execute
Mr.K.Santhosh KumarSAP FICO Consultant
Select
CoCd TlKy
0005 B1
0005 B2
Click on Copy as (F6)
Company code :
Enter
Company Code :
Enter
Save and enter
11. Maintain Default Values for Tax Codes
Path: SPRO- SAP Reference IMG- Materials Management- Logistics Invoice
Verification- Incoming Invoice- Maintain Default Values for Tax Codes
(Tcode:OMR2)
Execute
Click on New Entries (F5)
Company Code :
Save and enter
12. Edit PO Supplement Text in Invoice Verification
Path: Same path (Tcode: OMR8)
Execute
Click on order Text: general
Click on New Entries (F5)
CoCd :
Select PO Text
Mr.K.Santhosh KumarSAP FICO Consultant
Save and enter
Two Time go back
Click on notifiable order text types
Click on New Entries (F5)
CoCd ID
_____ F03
_____ F07
Save and enter
13. Set Tolerance Limits
Path: SPRO- Materials Management- Logistics Invoice Verification- Invoice
Block- Set Tolerance Limits (Tcode: OMR6)
Execute
Select
CoCd TlKy
0005 AN
0005 AP
0005 BD
0005 BR
Mr.K.Santhosh KumarSAP FICO Consultant
0005 BW
0005 DQ
0005 KW
0005 LA
0005 LD
0005 PP
0005 PS
0005 ST
0005 VP
Click on Copy As (F6)
Company Code :
Enter
Company Code :
Enter
Company Code :
Enter
Company Code :
Enter
Company Code :
Enter
Company Code :
Enter
Company Code :
Enter
Company Code :
Enter
Company Code :
Enter
Company Code :
Enter
Company Code :
Mr.K.Santhosh KumarSAP FICO Consultant
Enter
Company Code :
Enter
Company Code :
Enter
Save and enter
14. Define Valuation Control
Definition: we can group together valuation areas by activating the
valuation grouping code.
Path: SPRO- Materials Management- Valuation and Account Assignment-
Account Determination- Account Determination Without Wizard- Define
Valuation Control (Tcode: OMWM)
Execute
Select valuation grouping active
Save and enter
15. Group Together Valuation Areas
Path: Same path (Tcode: OMWD)
Execute
Go to Position button
Valuation area :
Enter
Mr.K.Santhosh KumarSAP FICO Consultant
Val.Grpg.code :0001
Save and enter
16. Define Valuation Classes
Definition: you define which valuation classes are allowed for a material
type. The valuation class is a group of materials with the same account
determination. If a transaction is to be posted to different accounts
depending on the valuation class, create an account determination for each
valuation class in the step Create automatic postings.
Path: Same path (Tcode: OMSK)
Execute
Click on Valuation class
Valcl ARef
3000 0001
3001 0001
3002 0001
3003 0001
Save and enter
One time go back
Click on Material type/Account category reference
Go to position button
Material type : ROH
ARef : 0001
Save and enter
17. Create G/L Master Records (Tcode: FS00)
17.1. Raw Material A/C
Mr.K.Santhosh KumarSAP FICO Consultant
G/L Account : 290500
Company Code :
Click on create
Go to Type/description Tab
Account Group : ASST Assets
Select Balance sheet Account
Short Text : Raw Material A/C
G/L Acct Long Text : Raw Material Account
Go to Control data Tab
Select only balances in local crcy
Select line item display
Sort Key : 001
Go to Create/Bank/Interest Tab
Field Status Group : G006
Select post automatically only
Save
17.2. GR/IR Clearing A/C
G/L Account : 190500
Company Code :
Click on Create
Go to Type/description Tab
Account Group : LIAB Liabilities
Select Balance sheet Account
Short Text : GR/IR Clearing A/C
G/L Acct Long Text : GR/IR clearing Account
Go to Control data Tab
Select only balances in local crcy
Mr.K.Santhosh KumarSAP FICO Consultant
Tax Category : *
Select Posting without tax allowed
Select line item display
Sort Key : 001
Go to Create/Bank/Interest Tab
Field Status Group : G001
Save
For MM Integration, Tax procedure and Tax Codes required
18. Tax procedure
Definition: Tax procedure will be developed country wise. Tax procedure is
assigned to country
18.1 Check Calculation Procedure
Path: SPRO- Financial Accounting- Financial Accounting Global Settings- Tax
on Sales/Purchases- Basic Settings- Check Calculation Procedure (Tcode:
OBYZ)
Execute
Double click on Define Procedures
Click on New Entries (F5)
Procedure :
Description :
Enter
Select _____
Double click on Control data
Click on New Entries (F5)
Step CType Fro To AcctKey
Mr.K.Santhosh KumarSAP FICO Consultant
100 BASB
110 MWVS 100 100 VST
120 MWAS 100 100 MWS
Save and enter
18.2 Assign Country to Calculation Procedure
Path: Same path (Tcode: OBBG)
Execute
Go to position button
Country : IN
Enter
Proc. :
Save and enter
18.3. Define Tax Codes for Sales and Purchases
Definition: Tax Codes nothing but tax rates
Path: SPRO- Financial Accounting- Financial Accounting Global Settings- Tax
on Sales/Purchases- Calculation- Define Tax Codes for Sales and Purchases
(Tcode: FTXP)
Execute
Country : IN
Enter
Tax Code :
Tax Code : 4% Input Tax
Tax Type : V (Input Tax)
Enter
Input Tax VST 4.000 110 100 MWVS
Mr.K.Santhosh KumarSAP FICO Consultant
Save
Tax Code : M4
Tax Code : 4% Output Tax
Tax Type : A (Output Tax)
Enter
Output Tax MWS 4.000 120 100 MWAS
Save
18.4. Creation of G/L Master Records (Tcode: FS00)
18.4.1. Input Tax A/C
G/L Account : 290400
Company Code :
Click on Create
Go to Type/Description Tab
Account Group : ASST Assets
Select Balance sheet Account
Short Text : Input Tax A/C
G/L Acct Long Text : Input Tax Account
Go to Control data tab
Select only balances in local crcy
Select line item display
Sort Key : 001
Mr.K.Santhosh KumarSAP FICO Consultant
Go to Create/bank/interest Tab
Field status group : G001
Save
18.4.2. Output Tax A/C
G/L Account : 190400
Company Code :
Click on Create
Go to Type/Description Tab
Account Group : LIAB Liabilities
Select Balance sheet Account
Short Text : Output Tax A/C
G/L Acct Long Text : Output Tax Account
Go to Control data tab
Select only balances in local crcy
Select line item display
Sort Key : 001
Go to Create/bank/interest Tab
Field status group : G001
Save
18.5. Define Tax Accounts
Path: SPRO- Financial Accounting- Financial Accounting Global Settings- Tax
on Sales/Purchases- Posting- Define Tax Accounts (Tcode: OB40)
Execute
Double click on Input Tax VST
Chart of accounts :
Enter
Select Tax code
Mr.K.Santhosh KumarSAP FICO Consultant
Save
Tax code :
Account : 290400
Save and enter
One time go back
Double click on Output Tax MWS
Select Tax code
Save
Tax Code :
Account : 190400
Save and enter
18.6. Maintain Tax Category * and Select posting without Tax
allowed in Service account and Service Revenue A/C G/L Master
Records in control data Tab. (Tcode:FS00)
19. Configure Automatic Postings
Path: SPRO- SAP Reference IMG- Materials Management- Valuation and
Account Assignment- Account Determination- Account Determination
Without Wizard- Configure Automatic Postings (Tcode: OMWB)
Execute
Click on Cancel (F12)
Click on Account Assignment (Shift+F4)
Double click on Inventory posting BSX
Chart of Accounts :
Enter
Select Valuation Modif.
Select Valuation
Save
Mr.K.Santhosh KumarSAP FICO Consultant
Valuation modif. : 0001 (Valuation Grouping Code)
Valuation class : 3000
Account : 290500 (Raw Material Account)
Save and enter
One time go back
Double click on GR/IR clearing account WRX
Save
Account : 190500
Save and enter
20. Create Material Master Record
Path: Logistics - Materials Management - Material Master - Material - Create
(General) - MM01 - Immediately (Tcode:MM01)
Material :
Industry Sector : C Chemical industry
Material type : ROH Raw Material
Enter
Select Basic Data 1
Select purchasing
Select General Plant Data / Storage 1
Select Accounting 1
Plant :
Stor.location :
Enter
Material :
Base Unit of measure :
Material Group : 0001
Enter
Purchasing Group : 004
Mr.K.Santhosh KumarSAP FICO Consultant
Enter and enter
Valuation Class : 3000
Price Control : V
Moving price :
Save
21. Vendor Master Record
Path: Accounting- Financial Accounting - Accounts Payable - Master Records -
Maintain Centrally - XK01 - Create (Tcode: XK01)
Vendor :
Company Code :
Purchasing organization :
Account Group : 0001
Enter
Title : Company
Name :
Search Term :
Street :
House number :
Postal code :
City : Hyderabad
Country : IN
Enter, enter and enter
Recon. Account : 190100
Sort key : 012
Cash mgmnt group : A1
Mr.K.Santhosh KumarSAP FICO Consultant
Enter, enter and enter
Order currency : INR
Terms of payments : 0001
Inco terms : EXW
Select GR-based Inv.verif.
Purchasing group : 004
Planned deliv.time : 1
Save
22. Procure to process (P2P)
22.1. Purchase Requisition
Path: Logistics - Materials Management - Purchasing - Purchase Requisition -
ME51N - Create (Tcode: ME51N)
Go to Items
Material :
Quantity :
Delivery Date :
Material Group : 004
Plant :
Stor.Loc. :
Click on Check (Ctrl+Shift+F3)
Save
Requisition number :
22.2. Request for Quotation (RFQ)
Path: Logistics - Materials Management - Purchasing - RFQ/Quotation -
Request for Quotation - ME41 - Create (Tcode: ME41)
Mr.K.Santhosh KumarSAP FICO Consultant
RFQ Type : AN
Language key : EN
RFQ Date :
Quotation deadline :
Purchasing organization :
Purchasing group : 004
Plant :
Storage Location :
Material group :
Req.Tracking number : Venkat
Enter
Coll.no :100
Enter
Material :
RFQ Quantity :
Deliv.time :
Enter
Click on Vendor Address (F7)
Vendor :
Enter
Save
22.3. Maintain Quotation
Path: Logistics - Materials Management - Purchasing - RFQ/Quotation -
Quotation - ME47 - Maintain (Tcode: ME47)
RFQ :
Enter
Net price :
Mr.K.Santhosh KumarSAP FICO Consultant
Save
22.4. Price Comparison
Path: Same path (Tcode: ME49)
Purchasing organization :
Collecting RFQ :
Execute (F8)
22.5. Purchase order
Path: Logistics - Materials Management - Purchasing - Purchase Order -
Create - ME21N - Vendor/Supplying Plant Known (Tcode: ME21N)
Click on Selection variant
Choose Request for quotations
Plant :
Storage location :
Material group :
Purchasing organization :
Purchasing group : 004
Company Code :
Keep blank Vendor Field
Execute (F8)
22.5.1. Pick and drop method
Mr.K.Santhosh KumarSAP FICO Consultant
Hold left click on mouse to shopping cart.
22.5.2. Adopt purc.Document
Select Purch.Doc.
Click on Adopt
Go to Item details
Go to Invoice Tab
Tax Code : R4
Click on Check (Ctrl+Shift+F3)
Save
PO Number :
22.6. Maintain number ranges 50 and 51 for Document types
WE (Goods Receipt) and RE (Invoice Verification) (Tcode: FBN1)
22.7. Goods Receipt
Path: Logistics - Materials Management - Inventory Management - Goods
Movement - MIGO - Goods Movement (MIGO) (Tcode: MIGO)
A01 Goods Receipt R01 purchase order:
Enter
Select Item OK
Click on check (F7)
Click on post (Shift+F11)
A04 Display
Enter
Go to Header data
Mr.K.Santhosh KumarSAP FICO Consultant
Go to Doc.Info Tab
Click on FI Documents
22.8. Invoice Verification
Path: Logistics - Materials Management - Logistics Invoice Verification -
Document Entry - MIRO - Enter Invoice (Tcode: MIRO)
Invoice date :
Purchase order/Scheduling agreement: 4500017174
Enter
Select calculate Tax
Copy Balance Field amount to amount field
Click on Simulate (Ctrl+Shift+F7)
Click on post or save
22.9. Report (Tcode: FBL1N)
22.9. Outgoing payments (Tcode: F-53)
Mr.K.Santhosh KumarSAP FICO Consultant
SD Integration
1. Define sales organization
Definition: Sales organization nothing but sales department.
Legally, a sales organization is included in exactly one company code. You
can assign one or more plants to one sales organization. The sales
organization has an address.
Path: SPRO- SAP Reference IMG- Enterprise Structure- Definition- Sales and
Distribution- Define, copy, delete, check sales organization (Tcode: OVX5)
Execute
Double click on Copy, delete, check sales organization
Click on copy org.object (F6)
From sales org. : 1000
To sales org. :
Enter, enter, enter and enter
One time go back
Double click on Define Sales Organization
Go to position button
Sales org. :
Enter
Select
Mr.K.Santhosh KumarSAP FICO Consultant
Click on Details (Ctrl+Shift+F2)
Sales organization : Hyderabad
Click on Address (Shift+F5)
Name : Hyderabad
Street : Ameerpet
House number : 1-234
Postal code : 123456
City : Hyderabad
Country : IN
Region : AP
Language : EN English
Enter, enter and enter
Save and enter
2. Define Shipping point
Definition: The shipping point is the top level in the organization for shipping.
A shipping point can be allocated to several plants. A shipping point can be
divided into several loading points.
Path: SPRO- SAP Reference IMG- Enterprise Structure- Definition- Logistics
Execution- Define, copy, delete, check shipping point (Tcode: OVXD)
Execute
Double click on Copy, delete, check shipping point
Click on Copy org.object (F6)
From shipping point : 1000
To Shipping point :
Enter, enter, enter and enter
One time go back
Double click on Define shipping point
Mr.K.Santhosh KumarSAP FICO Consultant
Go to position button
Shipping point :
Enter
Select ______
Click on Details (Ctrl+Shift+F2)
Click on address (Shift+F5)
Name : Shipping point for
Street : Ameerpet
House number : 234
Postal code : 123456
City : Hyderabad
Country : IN
Transportation zone : 0000000001
Enter
Save and enter
3. Assign sales organization to company code
Path: SPRO- SAP Reference IMG- Enterprise Structure- Assignment- Sales and
Distribution- Assign sales organization to company code (Tcode: OVX3)
Execute
Go to position button
Sales org. :
Enter
CoCd :
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
4. Assign Shipping Points
Path: SPRO- SAP Reference IMG- Logistics Execution- Shipping- Basic
Shipping Functions- Shipping Point and Goods Receiving Point
Determination- Assign Shipping Points (Tcode: OVL2)
Execute
Shift+F7
Shipping cond. : 01
Loading group : 0001
Plant :
Enter
PrShP :
Save and enter
5. Creation of G/L Master Records (Tcode: FS00)
5.1. Cost of Goods Sold A/C
G/L Account : 400070
Company Code :
Click on Create
Go to Type/Description Tab
Account Group : EXPN Expense
Select P&L statement Acct
Short Text : COGS A/C
G/L Acct Long Text : Cost of Goods Sold A/C
Go to Control data Tab
Select only balances in local crcy
Select line item display
Mr.K.Santhosh KumarSAP FICO Consultant
Sort Key : 001
Go to create/Bank/Interest Tab
Field status group : G003
Save
5.2. Finished Goods A/C
G/L Account : 290600
Company Code :
Click on create
Go to Type/description Tab
Account Group : ASST Assets
Select Balance sheet Account
Short Text : Finished Goods A/C
G/L Acct Long Text : Finished Goods Account
Go to Control data Tab
Select only balances in local crcy
Select line item display
Sort Key : 001
Go to Create/Bank/Interest Tab
Field Status Group : G006
Select post automatically only
Save
5.3. Sales Account
G/L Account : 300100
Company Code :
Click on Create
Go to Type/Description Tab
Account Group : INCO Incomes
Mr.K.Santhosh KumarSAP FICO Consultant
Select P&L statement Acct
Short Text : Sales A/C
G/L Acct Long Text : Sales Account
Go to Control data Tab
Select only balances in local crcy
Tax Category :*
Select posting without tax allowed
Select line item display
Sort Key : 001
Go to create/Bank/Interest Tab
Field status group : G029
Save
6. Integration of COGS A/C and Finished goods Account (Tcode:
OMWB)
Click on Cancel (F12)
Click on Account Assignment (Shift+F4)
Double click on Offsetting entry for inventory posting GBB
Chart of Accounts :
Enter
Select General modification
Select valuation modif.
Select valuation class
Save
valuation modif. : 0001
General modification : VAX
Valuation class : 7920
Account : 400070
valuation modif. : 0001
General modification : BSA
Mr.K.Santhosh KumarSAP FICO Consultant
Valuation class : 7920
Account : 400070
Save and enter
One time go back
Double click on Inventory posting BSX
Valuation modif. : 0001
Valuation class : 7920
Account : 290600
Save and enter
7. Assign Sales G/L Account
Path: SPRO- SAP Reference IMG- Sales and Distribution- Basic Functions-
Account Assignment/Costing- Revenue Account Determination- Assign G/L
Accounts
(Tcode: VKOA)
Execute
Double click on Cust.Grp/MaterialGrp/AcctKey
Click on New Entries (F5)
App : V
CndTy. : KOFI
ChAc. :
SOrg. :
AAG : 01
AAG : 03
ActKy : ERL
Account : 300100
Save and enter
Mr.K.Santhosh KumarSAP FICO Consultant
8. Maintain number ranges for 49 (Tcode: FBN1)
Company code :
Click on change interval
Click on Insert Interval (Shift+F1)
No : 49
Year : 2009
From Number : 4900000000
To Number : 4999999999
Enter
Save and enter
9. Create Material master record (Tcode: MM01)
Material :
Industry Sector : C Chemical Industry
Material type : FERT Finished Goods
Enter
Select
Basic Data 1
Sales: Sales Org. Data 1
Sales: Sales Org. Data 2
Sales: General/Plant Data
General Plant Data / Storage 1
Accounting 1
Enter
Plant :
Stor.Location :
Sales org. :
Mr.K.Santhosh KumarSAP FICO Consultant
Distr.Channel :10
Enter
Material :
Base Unit of measure : TO
Material Group : 0001
Division : 00
Gross Weight : 10000
Net Weight : 10000
Enter
Delivering Plant :
T : 1
Click on conditions
Scal Quantity Amount
1 100000
10 95000
100 90000
One time go back
Enter
Acct assignment grp : 03
Enter
Trans.Grp : 0001
Loading Grp : 0001
Enter and enter
Valuation Class : 7920
Price Control : S (Standard price)
Standard price : 100000
Save
Mr.K.Santhosh KumarSAP FICO Consultant
10. Create Customer Master Records
Path: Accounting - Financial Accounting - Accounts Receivable - Master
Records - Maintain Centrally - XD01 - Create (Tcode: XD01)
Account Group : 0001
Customer :
Company Code :
Sales organization :
Distribution channel : 10
Division : 00
Enter
Title : Company
Name :
Search Term :
Street :
House Number :
Postal code :
City :
Country : IN
Region : 01
Transportation Zone : 0000000001
Click on Company Code Data (Ctrl+F2)
Recon.Account : 290300
Sort Key : 031
Click on Sales area data (Ctrl+F3)
Go to Shipping Tab
Delivery priority : 01
Shipping conditions : 01
Delivering plant :
Go to Billing documents tab
Mr.K.Santhosh KumarSAP FICO Consultant
Incoterms : EXW
Terms of payments : 0001
Acct assgmt group : 01
Tax classification : 1
Save
11. Initial Stock posting
Path: Logistics - Materials Management - Inventory Management - Goods
Movement - Goods Receipt - MB1C - Other (Tcode: MB1C)
Movement type : 561
Plant :
Storage Location :
Enter
Material :
Quantity :
Enter
Save
Go to Menu bar
Other Goods Receipts- Display
Enter
Click on Accounting Document (F7)
11.1. Maintain Condition Records
Path: Logistics- Sales and Distribution- Master Data- Conditions- Select Using
Condition Type- VK11 – Create (Tcode: VK11)
Condition type : MWST (Output Tax)
Enter
Select Domestic Taxes
Enter
Country : IN
Mr.K.Santhosh KumarSAP FICO Consultant
T : 1 (This is maintained in Customer Master)
T : 1 (This is maintained in Material master)
Tax code : M4
Save
12. Creation of Sales order
Path: Logistics - Sales and Distribution - Sales - Order - VA01 - Create (Tcode:
VA01)
Order type : OR
Sales organization :
Distribution Chennel : 10
Division : 00
Enter
Sold to party :_________ (Customer Number)
PO Number : 10
Go to Sales Tab
Material :
Order Quantity : 10
Enter
Double click on Material
Go to Conditions Tab
Save
Sales order N
13. Goods Issue to customer
Path: Logistics - Sales and Distribution - Shipping and Transportation -
Outbound Delivery - Create - Single Document - VL01N - With Reference to
Sales Order
(Tcode: VL01N)
Mr.K.Santhosh KumarSAP FICO Consultant
Shipping point :
Selection Date :
Order :
Enter
Go to Picking Tab
SLoc :
Picked Qty : 10
Enter
Click on post goods issue (Shift+F8)
Go to Menu bar
Outbound delivery - Display
Outbound Delivery :
Enter
Go to Menu bar
Environment - Document Flow
Select GD Goods Issue:Delivy
Click on Display Document (F8)
Click on Accounting Documents (F7)
Delivery Document No: 80015175
14. Customer invoice
Path: Logistics - Sales and Distribution - Billing - Billing Document - VF01 -
Create (Tcode: VF01)
Document :
Enter
Save
Mr.K.Santhosh KumarSAP FICO Consultant
Go to Menu bar
Billing Document - Display
Billing Document number :
Click on Accounting (F6)
Period end and year end process
1. Financial statements version
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New)- Master Data- G/L Accounts- Define Financial
Statement Versions (Tcode: OB58)
Execute
Click on New Entries (F5)
Fin.Stmt.version :
Name : Financial Statements
Mr.K.Santhosh KumarSAP FICO Consultant
Maint.Language : EN (English)
Select Item keys auto.
Chart of accounts :
Save and enter
Click on Fin. statement Items (Shift+F8)
Click on create items (F5)
Liabilities
Assets
Incomes
Expenses
Enter
Select Liabilities
Click on Assign Accounts (F6)
From Acct To Account D C
100000 199999 - -
Enter
Select Assets
Click on Assign Accounts (F6)
From Acct to Account D C
200000 299999 - -
Enter
Select Incomes
Click on Assign Accounts (F6)
From Acct To Account D C
300000 399999 - -
Enter
Select Expense
Click on Assign Accounts (F6)
From Acct To Account D C
400000 499999 - -
Enter
Mr.K.Santhosh KumarSAP FICO Consultant
Save and enter
1.1. Financial Statements Report
Path: Information Systems- Accounting- Financial Accounting- General
Ledger- F.01 - Balance Sheet (Tcode: F.01)
Controlling Area:
Controlling area nothing but costing or Cost Accounting
1. Maintain Controlling Area
Path: SPRO- SAP Reference IMG- Controlling- General Controlling- Organization- Maintain Controlling Area (Tcode: OKKP)Execute
Double click on Maintain Controlling AreaClick on New Entries (F5)Controlling Area : Click on CO Area=Code
Mr.K.Santhosh KumarSAP FICO Consultant
Company Code : EnterCoCd->CO Area : Controlling area same as company
CodeCCtr Std. Hierarchy : Document type : SASave and enter and enterDouble click on Assignment of Company Code(S)Click on New Entries (F5)CoCd : SaveDouble click on Activate components/Control indicatorsClick on New Entries (F5)Fiscal Year : Cost Centers : 1 component activeSelect AA: Activity typeOrder management : 1 component activeCommit. Management : 1 component activeSelect Profit center AcctgSelect projectsSelect Sales ordersSelect Cost objectSelect W.Commit.MgtSelect VariancesSave and enter
2. Maintain Number Ranges for Controlling Documents
Path: Same path (Tcode: KANK)Execute
Click on Copy (F7)From..... : 0001To..... : Enter and enter
3. Maintain Versions
Definition: Versions enable you to have independent sets of planning and actual data
Path: Same path (Tcode: OKEQ)Execute
Mr.K.Santhosh KumarSAP FICO Consultant
Select 0 Plan/actual versionDouble click on Settings for Profit Center AccountingControlling area : EnterClick on New entries (F5)Year : Select online transferSelect Line itemsExRateType : MSave and EnterTwo times go backSelect 0 Plan/actual versionDouble click on Controlling Area settingsSelect 0 Plan/Act - VersionDouble click on Settings for Each fiscal yearClick on New Entries (F5)Fiscal year : Select Copying allowedExchange rate type : MSave
4. Maintain Standard Hierarchy
Path: Accounting - Controlling - Cost Center Accounting - Master Data - Standard Hierarchy - OKEON - Change (Tcode: OKEON)
Controlling area :EnterGroup Name : Hierarchy for EnterSelect ______Click on CreateChoose Lower-level GroupGroup Name : 100000 IndiaEnterSelect 100000
Mr.K.Santhosh KumarSAP FICO Consultant
Click on CreateChoose Lower-Level GroupGroup Name : 110000 MumbaiEnterSelect 110000Click on CreateChoose Lower-Level GroupGroup Name : 111000 LalabaghEnterSelect 110000Click on CreateChoose Lower-Level GroupGroup Name : 112000 Andheri EastEnterSelect 111000Click on CreateChoose Lower-Level GroupGroup Name : 111100 BuildingEnterSelect 111100Click on CreateChoose Lower Level GroupGroup Name : 111110 Floor1EnterSelect 111100Click on CreateChoose Lower Level GroupGroup Name : 111120 Floor2EnterSelect 112000Click on CreateChoose Lower-Level GroupGroup Name : 112100 BuildingEnterSelect 112100Click on CreateChoose Lower-Level GroupGroup Name : 112110 Floor1Enter
5. Create Cost Center
Definition: Wherever Cost Incurs is called cost centers.
Path: Accounting - Controlling - Cost Center Accounting - Master Data - Cost Center - Individual Processing - KS01 - Create (Tcode:KS01)
Mr.K.Santhosh KumarSAP FICO Consultant
Cost Center : 111111Valid From : EnterName : FICO ClassDescription : FICO ClassPerson Responsible : VenkataraoCost Center Category : 1Hierarchy Area : 111110 Currency : INRSaveIgnore warning message
6. Creation of Cost Element
Definition: Cost element is a bridge to flow cost to the cost center
6.1. Through G/L Master (Tcode:FS00)
G/L Account : 400010Company Code : Click on Edit Cost Element (F8)Valid From : EnterCElem category : 1Save
6.2. Through Path
Path: Accounting - Controlling - Cost Element Accounting - Master Data - Cost Element - Individual Processing - KA01 - Create Primary (Tcode:KA01)
Mr.K.Santhosh KumarSAP FICO Consultant
Double click on KA01 - Create Primary Cost Element : 400020Valid From : 01.04.2009EnterCElem Category : 1Save
7. Change Field Status Group G001 to G004 in G/L Master records of Expense G/L's (Tcode:FS00)
8. Postings to Cost centers (Tcode:F-02)
Enter Header data (Type SA)PstKy : 40Account : 400010EnterAmount : 25000Cost Center : 111115PstKy : 50Account : 290100EnterAmount : *Go to Menu barDocument - SimulateSaveCost Center line item report
Path: Accounting - Controlling - Cost Center Accounting - Information System - Reports for Cost Center Accounting - Line items - KSB1 - Cost Centers: Actual Line Items (Tcode:KSB1)
Cost Center : 111115Execute (F8)
9. Planning
Maintain planning profile
Definition: Planning profile is a facilitator to plan the cost elements and revenue elements
Path: SPRO- SAP Reference IMG- Controlling- Cost Center Accounting- Planning- Manual Planning- Define User Defined Planner Profiles (Tcode:KP34)Execute
Mr.K.Santhosh KumarSAP FICO Consultant
Click on New Entries (F5)Profile : Description : Planning of Revenue and cost
elementsEnterSelect Double click on general controllingClick on New Entries (F5)Planning area : Cost ctrs: Cost element/activity
inputsSelect Cost ctrs: Cost element/activity inputsDouble click on Layouts for controllingClick on New Entries (F5)Layout : 1-103Save
Set planner profile
Path: Accounting - Controlling - Cost Center Accounting - Planning - KP04 - Set Planner Profile (Tcode: KP04)
Planner profile : EnterPlanning of cost elements and revenue elements
Path: Accounting - Controlling - Cost Center Accounting - Planning - Cost and Activity Inputs - KP06 - Change (Tcode:KP06)
Version : 0From period : 1To Period : 12Fiscal Year : Group : Cost elements : 400010Click on Overview screen (F5)Total plan costs : 100000Click on next combination (Ctrl+F2)Total plant costs : 120000EtcSave
Mr.K.Santhosh KumarSAP FICO Consultant
Report
Path: Accounting - Controlling - Cost Center Accounting - Information System - Reports for Cost Center Accounting - Plan/Actual Comparisons - S_ALR_87013611 - Cost Centers: Actual/Plan/Variance (Tcode:S_ALR_87013611)
Controlling area : Fiscal year : 2009From period : 1To period : 12Plan version : 0Cost center group : Execute (F8)
10. Budgets
Maintain Budgets
Path: Accounting - Controlling - Cost Center Accounting - Planning - Cost Center Budgets - KPZ2 - Change (Tcode:KPZ2)
Profile : COST00Cost Center Group : EnterCost center INR111111 FICO Class 10,000.00111112 MM Class 20,000.00Save
Report
Path: Accounting - Controlling - Cost Center Accounting - Information System - Reports for Cost Center Accounting - More Reports - S_ALR_87013648 - Range: Actual/Budget/Commitments (Tcode:S_ALR_87013648)
Controlling area : Fiscal year : 2009Cost center group : Execute (F8)
Mr.K.Santhosh KumarSAP FICO Consultant
11. Reposting of line items
Definition: If cost center provides services to other cost centers. Service cost center costs will be distributed to other service receiver cost center.
Path: Accounting - Controlling - Cost Center Accounting - Actual Postings - Manual Reposting of Costs - KB11N - Enter (Tcode: KB11N)
CCtr(Old) Cost Elem Amount CCtr(New)111111 400010 10000 111112111111 400010 5000 111113111111 400010 3000 111114EnterSave
Cost Center report (Tcode: KSB1)
12. Distribution of costs
Definition: Distribution of costs of service cost center to other Receiver cost center
Create distribution cycle
Path: Accounting - Controlling - Cost Center Accounting - Period-End Closing - Current Settings - S_ALR_87005757 - Define Distribution (Tcode:S_ALR_87005757)
Cycle : Start date : 01.01.2010EnterText : DistributionClick on Attach Segment (Shift+F8)Segment name : _______ Distribution of FICO classGo to Segment header TabReceiver rule : 3 Fixed percentagesGo to Senders/Receivers tabSenderCost Center : 111111Cost Element : 400000 499999ReceiverCost Center : 111112 111114Go to Receiver Tracing factor tabCost Ctr Percent111112 20
Mr.K.Santhosh KumarSAP FICO Consultant
111113 30111114 50Save and enterOne time go backSave and enterOne time go backSave and enter
Run distribution cycle
Path: Accounting - Controlling - Cost Center Accounting - Period-End Closing - Single Functions - Allocations - KSV5 - Distribution (Tcode:KSV5)
Period : 10Fiscal year : 2009Select Test RunSelect Detail listCycle : Execute (F8)Click on Sender (Shift+F4)Observe Sender values (Should be in Minus)One time go backClick on Receiver (Shift+F5)Observe Receiver values (Should be in Plus)Two Time go backEnterDeselect Test runExecute (F8)
13. Assessment
Definition: In Assessment, system will distribute accumulated amounts of Sender Cost center to Receiver cost center.In Distribution, system will distribute each cost element amount of Sender cost center to receiver cost center.
Create assessment cost element
Path: Accounting - Controlling - Cost Element Accounting - Master Data - Cost Element - Individual Processing - KA06 - Create Secondary (Tcode:KA06)
Controlling area : EnterCost element : AssessmentValid from : 01.04.2009Enter
Mr.K.Santhosh KumarSAP FICO Consultant
Name : AssessmentDescription : Assessment cost elementCElem category : 42Save
Create Assessment Cycle
Path: Accounting - Controlling - Cost Center Accounting - Period-End Closing - Current Settings - S_ALR_87005742 - Define Assessment (Tcode:S_ALR_87005742)
Cycle : Start date : EnterText : AssessmentClick on attach segment (Shift+F8)Segment name : ______ Assessment of FICOGo to Segment Header TabAssessment cEle : AssessmentReceiver Rule : 3 Fixed percentagesGo to Sender/Receivers TabSenderCost center : 111111Cost Element : 400000 499999ReceiverCost center : 111112 111114Go to Receiver Tracing factor TabCost Ctr Percent111112 30111113 25111114 45Save and enterOne time go backSave and enterOne time go backSave and enter
Run assessment cycle
Path: Accounting - Controlling - Cost Center Accounting - Period-End Closing - Single Functions - Allocations - KSU5 - Assessment (Tcode:KSU5)
Period : Fiscal year : Select Test Run
Mr.K.Santhosh KumarSAP FICO Consultant
Select Details listCycle : Start date : Execute (F8)Click on Sender (Shift+F4)Observe valuesOne time go backClick on Receivers (Shift+F5)Observe valuesTwo times go backDeselect Test runExecute (F8)
Profit Center Accounting
Revenue : XXXXXCost : XXXX
________Profit XXXX
________
1. Maintain Controlling Area Settings
Path: SPRO- SAP Reference IMG- Controlling- Profit Center Accounting- Basic Settings- Controlling Area Settings- Maintain Controlling Area Settings (Tcode:0KE5)Execute
Standard Hierarchy : Select Elim.of int.business Vol.PCtr Local Currency Type : 20Select Store Transaction currencySave and enter
Note: Whenever you enter into system, we should do set controlling area (Tcode: OKKS)
2. Define Standard Hierarchy
Path: SPRO- SAP Reference IMG- Controlling- Profit Center Accounting- Master Data- Profit Center- Define Standard Hierarchy (Tcode: KCH4)Execute
Mr.K.Santhosh KumarSAP FICO Consultant
______ : Standard Hierarchy for Save and enter
3. Copy Cost Center Groups
Path: SPRO- SAP Reference IMG- Controlling- Profit Center Accounting- Master Data- Profit Center- Copy Cost Center Groups (Tcode: 2KEU)Execute
Cost Center Group : Select Copy Standard HierarchyExecute (F8)Save
4. Create Dummy Profit Center
Path: SPRO- SAP Reference IMG- Controlling- Profit Center Accounting- Master Data- Profit Center- Create Dummy Profit Center (Tcode: KE59)Execute
Double click on EC-PCA: Create Dummy Profit CenterDummy profit center : DUMMY_USHAEnterClick on Basic data (F5)Name : Dummy profit CenterDescription : Dummy profit CenterProfit Center Group : Save
5. Set Control Parameters for Actual Data
Path: SPRO- SAP Reference IMG- Controlling- Profit Center Accounting- Basic Settings- Controlling Area Settings- Activate Direct Postings- Set Control Parameters for Actual Data (Tcode: 1KEF)Execute
Click on New Entries (F5)From Year : Select Line itemsSelect online transferSave
6. Create Revenue Elements (Tcode: KA01)
Definition: It is a bridge to flow revenues to profit centerCost Element : 300100
Mr.K.Santhosh KumarSAP FICO Consultant
Valid From : EnterCElem Category : 11 RevenuesSave
7. Copy Cost Centers
Path: SPRO- SAP Reference IMG- Controlling- Profit Center Accounting- Master Data- Profit Center- Copy Cost Centers (Tcode: 2KEV)Execute
Cost Center Group : Execute (F8)
8. Create profit center
Path: Accounting - Controlling - Profit Center Accounting - Master Data - Profit Center - Individual Processing - KE51 - Create (Tcode: KE51)
Profit Center : 111115EnterName : HR ClassLong text : HR ClassPerson Response. : VenkataProfit Ctr Group : 111110Click on Activate (Shift+F1)
9. Assign Profit Centers in Cost Centers (Tcode: KS02)Cost Center : 11111EnterProfit Center : 11111SaveIgnore Warning messages
10. Postings (Tcode: F-02)
Enter Header data (Type SA)PstKy : 40Account : 400010
Mr.K.Santhosh KumarSAP FICO Consultant
EnterAmount : 25000Cost Center : 111111PstKy : 50Account : 290100EnterAmount : *Save
Document display (Tcode: FB03)
Document number : 100000027Company Code : EnterGo to Menu barEnvironment- Document Environment- Accounting Documents
11. Change field status group G001 to G029 in revenue G/L Accounts (Tcode:FS00)
G/L Account : 300100Company Code : Click on ChangeGo to Create/Bank/Interest TabField Status Group : G029Save
12. Post Revenues to profit centers (Tcode:F-02)
Enter Header data (Type SA)PstKy : 40Account : 290100EnterAmount : 35000PstKy : 50Account : 300100EnterAmount : *Profit Center : 111111Save
Mr.K.Santhosh KumarSAP FICO Consultant
Profit Center Line item report
Path: Accounting - Controlling - Profit Center Accounting - Information System - Reports for Profit Center Accounting - Line Item Reports - KE5Z - Profit Center: Actual Line Items (Tcode: KE5Z)
Record type : 0Version : 0Controlling area : Company Code : Posting period : 10Fiscal year : 2009Profit center : 111111Execute (F8)
Mr.K.Santhosh KumarSAP FICO Consultant
Internal orders
Definition: Internal order is tool to gather the costs. At period end,
we need to close the order.
Note: Set controlling area (Tcode: OKKS)
Controlling area :
Enter
1. Create internal Settlement Cost Element (Tcode: KA06)
Cost Element : Settlement
Valid From :
Enter
Name : Settlement
Description : Settlement cost element
CElem category : 21
Save
2. Maintain Allocation Structures
During settlement, costs incurred under the primary and secondary cost
elements by a sender are allocated to one or more receivers. When you
settle by cost element, you settle using the appropriate original cost
element.
Mr.K.Santhosh KumarSAP FICO Consultant
Path: SPRO- SAP Reference IMG- Controlling- Internal Orders- Actual Postings-
Settlement- Maintain Allocation Structures (Tcode:OKO6)
Execute
Select A1 Co allocation structure
Double click on assignments
Select 025 Settlements
Double click on Source
From Cost El . : 400000
To cost elem. : 499999
Double click on Settlement cost elements
Click on New Entries (F5)
Receiver Cat. : CTR
Settlement cost elem. : Settlement
Save and enter
3. Create internal order
Path: Accounting- Controlling - Internal Orders - Master Data - Special
Functions - Order - KO01 - Create (Tcode:KO01)
Order type : 150
Enter
Controlling area :
Enter
Click on Settelement rule (Shift+F5)
Cat Setle Rec. Percent
CTR 111112 MM Class 30.00
CTR 111113 SD Class 20.00
CTR 111114 ABAP Class 50.00
Save
Ignore warning messages
Mr.K.Santhosh KumarSAP FICO Consultant
Order number :
Note: Order should be Release mode. In create mode, we can’t post
costs to internal order.
4. Change internal order (Tcode: KO02)
Order :
Enter
Goto Control data Tab
click on release
Save
Ignore warning messages
5. Posting to Internal order (Tcode: F-02)
Enter header data (Type SA)
PstKy : 40
Account : 400010
Enter
Amount : 100000
Order :
PstKy : 50
Account : 290100
Enter
Amount :*
Go to Menu bar
Document - simulate
Save
Mr.K.Santhosh KumarSAP FICO Consultant
6. Internal order report
Path: Accounting - Controlling - Internal Orders - Information System -
Reports for Internal Orders - Line Items - KOB1 - Orders: Actual Line Items
(Tcode:KOB1)
Order :
Execute (F8)
7. Planning
Path: Accounting - Controlling - Internal Orders - Planning - Cost and Activity
Inputs - KPF6 - Change (Tcode: KPF6)
Version : 0
From period : 1
To period : 12
Fiscal year : 2009
Order :
Cost element : 400000
To : 499999
Click on Overview screen (F5)
Cost element Total Plan Costs
400010 Rent A/C 200,000.00
400020 Bank Charges A/C 50,000.00
400030 Cash Dis. Given A/C 75,000.00
400040 LS.Sale of Asset A/C 105,000.00
400050 Scrap on Asset A/C 125,000.00
400060 Depreciation A/C 35,000.00
Mr.K.Santhosh KumarSAP FICO Consultant
400100 Service A/C 100,000.00
Save
8. Internal order comparison report (Variance report)
Path: Accounting - Controlling - Internal Orders - Information System -
Reports for Internal Orders - Plan/Actual Comparisons - S_ALR_87012993 -
Orders: Actual/Plan/Variance (Tcode:S_ALR_87012993)
Controlling area :
Fiscal year :
From period : 1
To period : 12
Plan version : 0
Value (S) :
Execute (F8)
9. Internal order budgets
Path: Accounting -Controlling - Internal Orders - Budgeting - Original Budget - KO22 - Change
(Tcode: KO22)
Order :
Enter
Overall : 300000
2009 :300000
Save
Mr.K.Santhosh KumarSAP FICO Consultant
10. Internal order Budget report
Path: Accounting - Controlling - Internal Orders - Information System - Reports for Internal
Orders - More Reports - S_ALR_87013019 - List: Budget/Actual/Commitments
(Tcode:S_ALR_87013019)
Controlling area :
Value(S) :
Execute (F8)
11. Change Internal order (Tcode: KO02)
Order :
Enter
Go to Control data Tab
Click on Tech.Comple
Save
12. Maintain Number ranges for Internal order settlement document
Path: SPRO - SAP Reference IMG- Controlling- Internal Orders- Actual Postings- Settlement-
Maintain Number Ranges for Settlement Documents (Tcode:KO8N)
Execute
Click on Maintain groups (F6)
Select Standard Accounting document
Double click on
Click on Element/Group (F5)
Mr.K.Santhosh KumarSAP FICO Consultant
Save and enter
13. Settlement of internal order
Path: Accounting - Controlling - Internal Orders - Period-End Closing - Single Functions -
Settlement - KO88 - Individual Processing (Tcode:KO88)
Order :
Settlement period :
Fiscal year :
Select Test run
Execute
Click on Details list (Ctrl+Shift+F3)
Two time go back
Deselect Test run
Execute
14. Close Internal order (Tcode: KO02)
Order :
Enter
Go to control data Tab
Click on close
Save
Hence:
Internal order creation: We can’t post documents to internal order
Internal order release: We can post documents to internal order and settlement the order
Technically Complete: We can post documents and Settle the order
Internal order close: We can’t post documents to internal orders
Mr.K.Santhosh KumarSAP FICO Consultant
Profitability analysis
______________________
Definition: Profitability analysis is a reporting tool, We can develop reports in
this tool
1. Maintain Operating Concern
Path: SPRO- SAP Reference IMG- Controlling- Profitability Analysis-
Structures- Define Operating Concern- Maintain Operating Concern
(Tcode: KEA0)
Execute
Operating concern :
Click on Create (F5)
Description : Operating concern for _____
Select Costing-Based
Go to Attributes Tab
Operating concern currency : INR
Select Company Code Currency
Fiscal year variant :
Go to Data Structure Tab
Save
Click on Create data structure
Select LAND1 Country
Click on Transfer fields
Go to value fields tab
Select VV010 Revenue
Select VV140 Cost of Goods sold
Mr.K.Santhosh KumarSAP FICO Consultant
Click on Transfer fields
Click on Activate (Ctrl+F3)
Save (Ctrl+S)
One time go back
Click on Yes
Enter
Note: Status should be Green Color
2. Assign controlling area to operating concern
Path: SPRO - SAP Reference IMG- Enterprise Structure- Assignment-
Controlling- Assign controlling area to operating concern (Tcode: KEKK)
Execute
Go to position button
CO Area :
Enter
OpCo :
Save and enter
3. Activate Profitability Analysis
Mr.K.Santhosh KumarSAP FICO Consultant
Path: SPRO- SAP Reference IMG- Controlling- Profitability Analysis- Flows of
Actual Values- Activate Profitability Analysis (Tcode: KEKE)
Execute
Go to Position button
CO Area :
Enter
Active Status : 2
Save and enter and enter
4. Assign Value Fields
Path: SPRO- SAP Reference IMG- Controlling- Profitability Analysis- Flows of
Actual Values- Transfer of Billing Documents- Assign Value Fields
(Tcode: KE41)
Execute
Double click on Maintain Assignment of SD Conditions to CO-PA Value Fields
Operating Concern :
Enter
Click on New Entries (F5)
CTyp Val.fld
PR00 VV010
VPRS VV140
Save and enter
5. Assign G/L Accounts (Tcode: OBYC)
Mr.K.Santhosh KumarSAP FICO Consultant
Double click on Offsetting entry for inventory posting GBB
Chart of accounts :
Enter
Valuation modif. : 0001
General modification : VAY
Valuation class : 7920
Account : 400070
Save and enter
6. Create Cost elements For COGS A/C (Tcode: KA01)
7. Change Material master record (Tcode: MM02)
Material :
Enter
Select Sales: General/Plant Data
Enter
Plant :
Sales org. :
Distr.Chennel : 10
Enter
Profit Center : DUMMY_______
Save
8. Creation of Sales order (Tcode: VA01)
9. Goods Issue (Tcode: VL01N)
Mr.K.Santhosh KumarSAP FICO Consultant
10. Billing (Tcode: VF01)
11. Define key figure schemes
Definition: Key figure schemes are defined for information system
Path: SPRO- SAP Reference IMG- Controlling- Profitability Analysis-
Information System- Report Components- Define Key Figure Schemes
(Tcode: KER1)
Execute
Click on New Entries (F5)
Key Figure scheme :
Medium-length text : Key figure Schemes
Double click on Elements of key figure schemes
Click on New entries (F5)
Element number : 1000
Quantity/Value : VV Value field
Mr.K.Santhosh KumarSAP FICO Consultant
Short Text : Revenue
Medium-Length text : Revenue
Long Text : Revenue
Click on Basic Formula
+- : +
Element : 9001
Enter
Click on Next Entry (F8)
Element number : 2000
Quantity/Value : VV Value field
Short Text : COGS
Medium-Length text : Cost of Goods Sold
Long Text : Cost of Goods Sold
Click on Basic Formula
+- : +
Element : 9002
Enter
Click on Next Entry (F8)
Element number : 3000
Short Text : Profit
Medium-Length text : Profit
Long Text : Profit
Click on Basic Formula
+- Element
+ 9001
- 9002
Enter
One time go back
Save and enter
12. Define Report
Mr.K.Santhosh KumarSAP FICO Consultant
Path: Accounting - Controlling - Profitability Analysis - Information System -
Define Report - KE31 - Create Profitability Report (Tcode: KE31)
Report :
Enter and enter
Go to Characteristics Tab
Select Country, Customer, Distribution channels, Division, Plant, Product,
and Profit Center etc.
Click on Add Char.
Go to Key Figures Tab
Key figure scheme :
Select Revenue, Cost of Goods sold and profit
Save and enter
13. Execute Report
Path: Accounting - Controlling - Profitability Analysis - Information System -
KE30 - Execute Report (Tcode: KE30)
Select Report
Execute (F8)
Period From :
Period to :
Plan/Act.Indicator : 0
Execute (F8)
Enter and enter
New General Ledger Accounting
1. Define Ledgers for General Ledger Accounting
Mr.K.Santhosh KumarSAP FICO Consultant
Definition: you define the ledgers that you use in General Ledger Accounting. The ledgers are based on a totals table. SAP recommends using the delivered standard totals table FAGLFLEXT.
Leading ledger:
The leading ledger is based on the same accounting principle as that of the consolidated financial statement. It is integrated with all subsidiary ledgers and is updated in all company codes. You must designate one ledger as the leading ledger.In each company code, the leading ledger automatically receives the settings that apply to that company code: the currencies, the fiscal year variant, and the variant of the posting periods.
Non-leading ledger:
The non-leading ledgers are parallel ledgers to the leading ledger. They can be based for example on local accounting principles such as German Commercial Code.You must activate a non-leading ledger by company code.For each ledger that you create, a ledger group of the same name is automatically created.
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial Accounting Global Settings (New)- Ledgers- Ledger- Define Ledgers for General Ledger AccountingExecute
Ld : L7Ledger Name : USA GAAPTotals table : FAGLFLEXTEnterSave and enter
2. Creation of Zero balance A/C (Tcode:FS00)
G/L Account : 400095Company code : Click on CreateGo to Type/description Tab
Mr.K.Santhosh KumarSAP FICO Consultant
Account Group : EXPN ExpensesSelect P&L Statement acctShort Text : Zero Balance A/CG/L Acct Long Text : Zero Balance AccountGo to Control data TabSelect only balances in local crcySelect line item displaySort key : 001Go to Create/bank/interest TabField status group : G001Save
3. Define Account Determination for Real-Time Integration
Path: SPRO – SAP Reference IMG- Financial Accounting (New)- Financial Accounting Global Settings (New)- Ledgers- Real-Time Integration of Controlling with Financial Accounting- Account Determination for Real-Time Integration- Define Account Determination for Real-Time IntegrationExecute
Controlling Area : Click on change account determinationSaveAccount : 400095Save and enter
4. Define Variants for Real-Time Integration
Path: SPRO – SAP Reference IMG- Financial Accounting (New)- Financial Accounting Global Settings (New)- Ledgers- Real-Time Integration of Controlling with Financial Accounting- Define Variants for Real-Time IntegrationExecute
Click on New Entries (F5)Var.for R-T Integ. : Select R.-Time integ:ActiveDocument type : ABSelect Cross business areaSave
5. Assign Variants for Real-Time Integration to Company Codes
Path: Same pathExecute
Mr.K.Santhosh KumarSAP FICO Consultant
Click on New Entries (F5)Company code : Variant for Real-Time integration :Save and enter
6. Classify G/L Accounts for Document Splitting
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General Ledger Accounting (New)- Business Transactions- Document Splitting- Classify G/L Accounts for Document SplittingExecuteChart of Accounts : EnterAcct from Account to Cat290100 290100 04000400010 400090 20000400095 400095 01001Save and enter
7. Define Zero – Balance Clearing Account
Path: Same pathExecuteSelect 000Double click on AccountsChart of accounts : EnterClick on New Entries (F5)G/L Account : 400095Save
8. Activate Document Splitting
Path: same pathExecuteSelect Document SplittingSave and enter
9. Activate Assign Business areas in Cost Centers (Tcode: KS02)10. Cost Center : 11111911. Valid from : 01.04.200912. Enter13. Name : New G/L 114. Description : New G/L 1
Mr.K.Santhosh KumarSAP FICO Consultant
15. Person Responsible : Basha16. Cost Center category : 117. Hierarchy Area : 11111018. Business area : KIRH19. Currency : INR20. Profit center : 11111121. Save22.23. Cost Center : 111111024. Valid from : 01.04.200925. Enter26. Name : New G/L 227. Description : New G/L 228. Person Responsible : Venkat29. Cost Center category : 130. Hierarchy Area : 11111031. Business area : KIRM32. Currency : INR33. Profit center : 11111134. Save
Period end and year end process
1. Save and enter Financial Statement Version
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General Ledger Accounting (New)- Master Data- G/L Accounts- Define Financial Statement Versions (Tcode: OB58)Execute
Click on New Entries (F5)
Fin.Stmt.version :
Name : Financial Statements
Maint.Language : EN (English)
Select Item keys auto.
Chart of accounts :
Save and enter
Click on Fin.statement Items (Shift+F8)
Click on create items (F5)
Liabilities
Assets
Incomes
Mr.K.Santhosh KumarSAP FICO Consultant
Expenses
Enter
Select Liabilities
Click on Assign Accounts (F6)
From Acct To Account D C
100000 199999 - -
Enter
Select Assets
Click on Assign Accounts (F6)
From Acct To Account D C
200000 299999 - -
Enter
Select Incomes
Click on Assign Accounts (F6)
From Acct To Account D C
300000 399999 - -
Enter
Select Expense
Click on Assign Accounts (F6)
From Acct To Account D C
400000 499999 - -
Enter
Save and enter
2. Postings to cost centers (Tcode: F-02)Enter header data (Type SA)PstKy : 40Account : 400100EnterAmount : 50000Cost center : 111119PstKy : 50Account : 290100
Mr.K.Santhosh KumarSAP FICO Consultant
EnterAmount : *Click on moreBusiness area : KIRHSave
3. Financial statements (Tcode: F.01)Chart of accounts : KIRNCompany code : KIRNBusiness area : KIRHFinancial statement version : KIRNExecute
4. Reposting of costs from 111119 Cost center to 1111110 cost center (Tcode: KB11N)CCtr : 111119Cost Elem. : 400100Amount : 10000CCtr : 1111110Save
5. Financial statement version (Tcode: F.01)
6. Parallel Books of Accounts
16.1. Maintain currencies for non leading ledgersPath: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial Accounting Global Settings (New)- Ledgers- Ledger- Define and Activate Non-Leading LedgersExecuteLedger : L9EnterClick on New Entries (F5)CoCd : KIRNSave and enter
16.3. Define Document Types for Entry View in a LedgerPath: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial Accounting Global Settings (New)- Document- Document Types- Define Document Types for Entry View in a LedgerExecute
16.2. Postings to non leading ledger
Mr.K.Santhosh KumarSAP FICO Consultant
Path: Accounting - Financial Accounting - General Ledger - Posting - FB01L - Enter General Posting for Ledger Group (Tcode: FB01L)Enter header data (Type SA)Ledger Group : L8 (Non leading ledger)PstKy : 40Account : 290100Enter Amount : 25000Click on MoreBusiness area : KIRMPstKy : 50Account : 100000EnterAmount : *Click on MoreBusiness area : KIRMSave
17.Financial statements (Tcode: F.01)Chart of accounts : KIRNCompany code : KIRNBusiness area : KIRHFinancial statement version : KIRNExecute
18.Maintain Plan Periods: Path: Accounting - Financial Accounting new - General Ledger new- planning – define plan periods (Tcode: GCP5)Click on new entriesVar From Year To Year1100 1 2009 12 2010
Enter and save
19.Balance sheet and P&L a/c Statement Structure:Carry Forward Process: Path: Accounting - Financial Accounting new - General Ledger new- periodic processing- closing- carry forward-FAGLGVTR-Balance carry forward(new)Ledger : OLCompany code : 1100Carry forward to fiscal year : 2010Deselect test runSelect balance is retain earning accountexcute
Mr.K.Santhosh KumarSAP FICO Consultant
1.2. Create Profit and loss account (Tcode: FS00)
G/L Account : 100100
Company code :
Click on create
Go to Type/description Tab
Account Group : LIAB Liabilities
Select Balance sheet account
Short text : Profit and loss A/C
G/L Acct Long Text : Profit and loss account
Go to control data tab
Select only balances in local crcy
Select Line item display
Sort key : 001
Go to Create/Bank/interest Tab
Field status group : G001
Save
1.3. Open New Year (Tcode: OB52)
Go to Position button
Pstg Per.Var. :
Enter
Enter New Year
Save and enter
1.4. Carry ford Balances to next year
Path: Accounting- Financial Accounting- General Ledger- Periodic Processing-
Closing- Carry Forward- FAGLGVTR - Balance Carry forward (New) (Tcode:
FAGLGVTR)
Ledger : 0L
Company code :
Carry forward to fiscal year : 2010
Deselect Test run
Mr.K.Santhosh KumarSAP FICO Consultant
Select Balances in Retain. earng.acct
Execute (F8)
1.3. Financial Statements Report
Path: Information Systems- Accounting- Financial Accounting- General
Ledger- F.01 - Balance Sheet (Tcode: F.01)
Chart of accounts :
Company code :
Financial statement version :
Reporting year :
Reporting periods : 1
Execute
Foreign Currency Valuation
1. Check Exchange rate types
Path: SPRO- SAP Reference IMG- SAP NetWeaver- General Settings-
Currencies- Check Exchange Rate Types (Tcode: OB07)
Execute
Note: M: Average Rate, G: Bank Buying Rate and B: Bank Selling Rate.
Click on New Entries (F5)
ExRt Usage
______ Average Rate Select Inv.
______ Bank Buying rate Select Inv.
______ Bank Selling rate Select Inv.
Save and enter
Note:
Direct quot.:- One unit of foreign currency equal to how many local currency
units.
Indirect quot.:- One unit of local currency equal to how many foreign
currency units.
2. Enter Exchange Rates
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Path: same path (Tcode: OB08)
Execute
Click on New Entries (F5)
ExRt Valid From From Dir.quot. To
_____ ___________ USD ____ INR
_____ ___________ USD ____ INR
_____ ___________ USD ____ INR
Enter and enter
Save
3. Maintain Exchange rates in document types (Tcode: OBA7)
Go to position button
Document type : SA
Enter
Double click on SA
Ex.rate type for forgn crncy docs:
Save and enter
4. Exchange Difference Accounts
4.1. Create G/L master Records (Tcode: FS00)
4.1.1. Exchange Loss A/C
G/L Account : 400085
Company Code :
Click on Create
Go to Type/description Tab
Account Group : EXPN Expense
Select P&L Statement acct
Short Text : Exchange Loss A/C
G/L Acct Long Text : Exchange Loss Account
Go to Control data Tab
Select only balances in local crcy
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Select line item display
Sort Key : 001
Go to Create/Bank/Interest Tab
Field status Group : G001
Save
4.1.2. Exchange Gain A/C
G/L Account : 300050
Company Code :
Click on Create
Go to Type/description Tab
Account Group : INCO Incomes
Select P&L Statement acct
Short Text : Exchange Gain A/C
G/L Acct Long Text : Exchange Gain Account
Go to Control data Tab
Select only balances in local crcy
Select line item display
Sort Key : 001
Go to Create/Bank/Interest Tab
Field status Group : G001
Save
4.2. Determine Accounts for Exchange
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General Ledger
Accounting (New) - Business Transactions- Open Item Clearing- Define
Accounts for Exchange Rate Differences (Tcode: OB09)
Execute
Chart of Accounts :
Enter
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Click on New entries (F5)
G/L Account : 190100 (Vendor Recon. A/C)
Currency : USD
Currency type : 10
Loss : 400085
Gain : 300050
Save
5. General posting with Dollars (Tcode: F-02)
Enter header data (Type SA and Currency USD)
PstKy : 40 (Debit)
Account :
Enter
Amount : 1000
PstKy : 50 (Credit)
Account :
Enter
Amount :*
Go to Menu bar
Document - simulate
Click on Display currency (F8)
Observe Amounts
Save
Posting keys controls
1. Creation of posting keys
Definition: Posting key controls fields in transactional data and posting key
decides whether it is debit or credit. It controls account types.
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Financial
Accounting Global Settings (New) - Document - Define Posting Keys
(Tcode: OB41)
Execute
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Click on create (F6)
Posting key :
Name of posting key : Debit
Select Debit
Select G/L Account
Save and enter
Legacy System Migration Workbench (Tcode: LSMW)
Project : GLS
Subproject : GLS
Object : GLS
Click on create (Shift+F1)
Description : Uploading GLS
Enter
Description : Uploading GLS
Enter
Description : Uploading GLS
Enter
Execute (F8)
Select Maintain Object Attributes
Execute (Ctrl+F8)
Note: If Screen is display mode, click on Display->Change (Shift+F1)
Select Batch Input Recording
Recording : Venkat
Go to Menu bar
Go to - Recordings overview
Click on create recording (Ctrl+F1)
Recording : Venkat
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Description : Uploading GLS
Enter
Transaction code : FS00
Enter
Note: We should not use mouse, until recording complete
G/L Account : 290300
Company code : RELP
Click on create
Go to Type/Description tab
Account Group : ASST Assets
Select Balance sheet Account
Short Text : Bank Account
G/L Acct Long Text : Bank Account
Go to Control data Tab (Ctrl+F11)
Account Currency: INR
Select Balances in local crcy
Select Line item display
Sort key : 001
Go to Create/Bank/Interest Tab (Ctrl+F11)
Field Status Group : G001
Save
Click on Default all (Ctrl+F2)
Save
Go to Menu Bar
System - List - save - local file
Select Spread sheet
Save on desktop
Open Excel sheet which is saved on desktop
Delete Up to H column
Note: We should keep the items, which we entered in G/L Master data
Delete repeated rows
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Select only data cells and copy
Keep cursor in "A1" cell and Right click on - paste special
Choose values and transpose
Enter
Note: Change the sort key column (field name "ZUAWA") Select Entire
column and right click on mouse-choose format cells
Go to Number tab-Double click on text
Enter G/L Accounts which are going to be uploading
Delete 1 & 3 rows
Select the data cells in spread sheet and copied into note pad
Press the Back space
Save note pad on desktop
Go to SAP Create Recording screen
Two times go back
Save
One time go back
Select Maintain Source Structures
Execute (Ctrl+F8)
Note: If Screen is display mode, click on Display->Change (Shift+F1)
Click on create a structure (Ctrl+F4)
Source Structure : Venkat1
Description : Upload GLS
Enter
Save
One time go back
Select Maintain Source Fields
Execute (Ctrl+F8)
Note: If Screen is display mode, click on Display->Change (Shift+F1)
Go to Menu bar
Source fields - Copy fields
Select From data file (Field Name in 1. line)
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Number of fields : 9999
Max.record length : 99999
Enter and enter
Choose the note pad from desk top
Save
One time Go Back
Select Maintain Structure Relations
Execute (Ctrl+F8)
Note: If Screen is display mode, Click on Display->Change (Shift+F1)
Save
One time Go Back
Select Maintain Field Mapping and Conversion Rules
Execute (Ctrl+f8)
Note: If Screen is display mode, Click on Display->Change (Shift+F1)
Go to Menu bar
Extras - Auto field mapping
Select No confirmation
Enter and enter
Save
One time Go Back
Skip Maintain Fixed Values, Translations, User-Defined Routines step
Select Specify Files
Execute (Ctrl+F8)
Note: If Screen is display mode, click on Display->Change (Shift+F1)
Select Legacy data
Click on Add Entry (Ctrl+f2)
Give path of note pad
Name : Venkat
Select Tabulator
Select Field names at start of files
Enter
Mr.K.Santhosh KumarSAP FICO Consultant
Save
One time Go Back
Select Assign Files
Execute (Ctrl+F8)
Note: If Screen is display mode, click on Display->Change (Shift+F1)
Save
One time Go Back
Select Read Data
Execute (Ctrl+F8)
Execute
Two times Go Back
Select Display Read Data
Execute (Ctrl+F8)
Enter
One time Go Back
Select Convert Data
Execute (Ctrl+f8)
Execute
Two times Go Back
Select Display Converted Data
Execute
Enter
One time Go Back
Select Create Batch Input Session
Execute (Ctrl+F8)
Execute
Enter
Select Run Batch Input Session
Execute (Ctrl+F8)
Select GLS
Click on process (F8)
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Select Display Errors only
Select Extended log
Enter
Click on Exit batch input
Validations:
Path: SPRO- Financial Accounting- Financial Accounting Global Settings-
Document- Line Item- Define Validations for Posting (Tcode:OB28)
Execute
Click on New Entries (F5)
CoCd :
CallPnt :1
Validation : Venkat
Double click on Venkat
Click on Yes
Select Venkat
Click on Step (Ctrl+Shift+F5)
Click on Prerequisite
Double click on Accounting Document Header
Click on Find
Search Term : User name
Enter
Double click on User name
Click on =
Click on constant
User name : SAPUSER
Enter
Click on Check
Double click on Accounting Document Header
Click on find
Search term : Document date
Enter
Mr.K.Santhosh KumarSAP FICO Consultant
Double click on Document date
Click on =
Click on find
Search term : posting date
Double click on posting date
Click on message
Message number : 002
Save
1. Explain ‘ASAP Roadmap’ Phases.
Project preparation is the first and initial phase of the ASAP roadmap
where you are just starting the project. You will perform activities such
as preparation of the initial scope, high-level timelines and plans,
project charters, identification of project team members, project kick-
off, etc.
Business blueprint is the second phase in the implementation where
you will try, identify, and document business requirements and goals
to prepare the foundation for future stages of the project. Ideally, you
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will organize ‘business requirement gathering’ workshops with the
various business/functional users of the company, lead them through
the discussion with structured business functionality questionnaires,
understand their existing business processes, and identify and
document their requirements in the wake of this new implementation.
A ‘sign-off’ at the end of the phase ensures an agreement to move
forward outlining the scope of the project. It is understood that
whatever is explicitly stated in the business blueprint document is the
only scope; no implied scope will be considered for system
configuration in the next phase.
Realization is the third phase where the implementing team breaks
down the business processes identified in the second phase and
configures the SAP settings. Initially, you will do a Baseline
Configuration, test the system functionality and if necessary make
changes to the baseline configuration, and close the phase with Final
Configuration, signaling that all the business processes have been
captured and configured in the system.
Final Preparation is the penultimate phase in the project. This phase
also serves to all crucial open issues. A ‘go-live check’ is also
conducted to analyze whether the system has been properly
configured. This phase is marked by the following activities:
End-to-testing of the configured system (User Acceptance Test—
UAT)
Training of the end users (Usually follows the concept ‘Train-the-
Trainer’)
System management activities (creation of users, user profiles,
allocation of roles to profiles, etc.)
Cut-over (data migration activities)
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An ‘internal help desk’ should be staffed and supported mainly by
employees of the enterprise. Setting up a help desk involves, among
other things, installing office and technical equipment and defining
OSS users. Problems that cannot be solved by this internal help desk
are forwarded to SAP via the SAPNet/OSS system.
On successful completion of this phase, you are ready to run your
business in your production system.
Go-Live and Support is the final and fifth phase of the project where
the configured system is declared ‘live’ for day-to-day business use.
Users make productive (live) business transactions in the system and
all the issues cropping up in the wake of going live are supported and
resolved by a support team immediately.
2. Explain ‘ASAP BPML.’
‘ASAP BPMLs (Business Process Master Lists)’ are MS-Excel
Sheets generated by the ASAP Q&A Database for facilitating
configuration and testing of the system, and development of end-user
documentation. These lists become the central repository from which
you build the individual master lists to manage the initial configuration,
final configuration, final end-user integration testing, and any other
end-user procedures including the documentation.
3. What are ‘BPPs’ in ASAP?
‘ASAP BPP (Business Process and Procedures)’ are templates
that typically walk you through a transaction in SAP and help you
document them. The templates are replete with Best Practices or
Standard Procedures for completing a particular transaction, which you
can customize for end-user training. You will assign ASAP BPPS to the
ASAP BPML.
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4. Within FI, from Which FI-GL Gets Simultaneous Postings.
Accounts Receivable (FI-AR)
Accounts Payable (FI-AP)
Asset Accounting (FI-AA)
5. Name Three Distinct Characteristics of FI-GL.
Multi-currency capability
Flexible real-time reporting
Real-time transaction entries
6. What do you mean by ‘Organizational Units’ in SAP?
The ‘Organizational Units’ in SAP are the elements or structures
representing business functions, and are used in reporting. For
example, Client (across the various modules) Company Code (FI),
Controlling Area (CO), Plant (logistics), Sales Organization (SD),
Purchasing Organization (MM), Employee Group (HR), etc.
7. What are the Important ‘Organizational Units’ in FI?
1. Company
2. Company Code
3. Business area
8. What is a ‘Company’?
A ‘Company’ in SAP is represented by a 5-character alphanumeric
code and usually represents the enterprise or the group company. A
Company can include one or more Company Codes. The creation of a
Company, in SAP, is optional.
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9. What is a ‘Company Code,’ and how is this different from a
‘Company’?
A ‘Company Code’ in SAP is the smallest organizational unit for which
you can draw individual Financial Statements (Balance Sheet and Profit
& Loss Account) for your external statutory reporting. It is denoted by a
4-character alphanumeric code. The creation of a Company Code is
mandatory; you need to have at least one Company Code defined in
the system, for implementing FI.
10. What are the Important ‘Global Settings’ for a Company
Code?
General data:
Company Code
Company Name
City
Address
Currency
Country
Language
Global data:
Chart of Accounts
Credit Control Area
Fiscal Year Variant
Field Status Variant
Posting Period Variant
11. Can you assign more than One ‘Company Code’ to a
‘Company’?
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All the Company Codes within a Company should use the same Chart
of Accounts and the same Financial Year, though they all can have
different Local Currencies.
12. What is a ‘Business Area’?
‘Business Areas’ correspond to specific business segments of a
company, and may cut across different Company Codes (for example,
product lines). They can also represent different responsibility areas
(for example, branch units). The Business Areas are optional in SAP.
The financial statements drawn per business area are for internal
reporting purposes. You need to put a check in the check box in the
configuration for the company for which you want to enable business
area financial statements. When transactions are posted in FI, you
have the option of assigning the same to a Business Area so that the
values are properly captured for internal financial statements.
13. Can You Attach a ‘Business Area’ to a Transaction?
Yes. The Business Area can also be derived from other account
assignments; for example, cost center. But to do this, you need to
define the Business Area in the master record of that particular cost
center.
14. What is a ‘Chart of Accounts’?
A ‘Chart of Accounts’ is the list of GL accounts used in one or more
Company Codes. All the GL accounts in a chart of accounts will have an
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account number, account name, and some control information. The
control information decides how the GL account can be created.
15. What are all the Major Components of a ‘Chart of
Accounts’?
A ‘Chart of Accounts’ includes the following components:
Chart of account key
Name
Maintenance language
The GL Account Number
Controlling integration
Group chart of accounts (consolidation)
Block indicator
16. What is an ‘Operating Chart of Accounts’?
This chart is used for day-to-day postings and is also known as an
‘Operative’ or ‘Standard’ chart of accounts. Both FI and CO use a
chart of accounts. It is mandatory that the chart of accounts be
assigned to a Company Code.
17. How does ‘Group Chart of Accounts’ Differ from
‘Operating Chart of Accounts’?
The ‘Group Chart of Accounts,’ also known as the Corporate Chart
of Accounts, is used for consolidating all Company Codes (with a
dissimilar Operative Chart of Accounts) falling under a Company. This
is the ‘universe’ of all-inclusive GL accounts from where the Operative
Chart of Accounts is derived. A Company Code is not mandatory.
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18. What is a ‘Country Chart of Accounts’? Why do you need
this?
This chart of accounts, also known as an Alternate Chart of
Accounts, contains the GL accounts necessary to meet the specific
statutory/legal requirements of a company from which a Company
Code operates. The assignment of this chart of accounts to a Company
Code is also optional. It is possible that both the operative and the
country chart of accounts are one and the same. In this case, you will
not need two different charts of accounts.
In cases where the operative and country chart of accounts are
different, a link needs to be established by entering the GL account
number from the ‘Country Chart of Accounts’ in the GL master record
(under the Company Code section) of the ‘Operative Chart of Accounts’
in the field ‘Alternate Account Number.’
19. Can one ‘Chart of Accounts’ be Assigned to Several
Company Codes?
Yes. One chart of accounts can be assigned to several Company Codes.
However, the reverse is not possible; i.e., you will not be able assign
more than one chart of accounts to a single Company Code.
20. What is a ‘Fiscal Year’ and ‘Fiscal Year Variant’?
A ‘fiscal year’ is the accounting period, which normally spreads over 12
months. Financial statements are drawn for a fiscal year. The fiscal
year, in SAP, is defined as a ‘Fiscal Year Variant.’ All Calendar Year
Fiscal Year Variants, in standard SAP, are denoted usually as K1, K2,
etc.
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The fiscal year may or may not correspond to the calendar year. In the
standard SAP system, the Non-Calendar Fiscal Year Variants are
denoted V1, V2, etc.
It is also possible that the fiscal year may be shorter than 12 months,
and this is called a ‘Shortened Fiscal Year’.
21. What is a ‘Posting Period’?
A fiscal year, in SAP, is divided into various ‘Posting Periods,’ with a
start and end date defined for each of these periods. Any document
posting is possible only when the ‘posting periods’ are in place in the
system. Normally there will be 12 posting periods. A posting period
consists of a month and year.
22. How does the System identify a ‘Posting Period’?
Based on the posting date entered into the system while posting a
document, the system automatically determines the period by looking
at the document date and the year. However, for this to occur you
should have properly defined the fiscal year variant.
23. What Happens when You Post to Year 2006 when you are
in 2007?
First of all, to post a document relating to a previous year, say 2006
when you are in 2007, the relevant posting period should be ‘open’ in
the system. When such a posting is done, the system makes some
adjustments in the background:
One: the carry-forward balances of the current year, already done, are
updated in case the posting affects balance sheet items.
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Two: if the posting is going to affect the Profit & Loss accounts, then
the system adjusts the carried forward profit or loss balances to the
Retained Earnings account(s).
24. What do you mean by ‘Opening/Closing’ Posting Periods?
Postings in SAP are controlled by the ‘opening’ or ‘closing’ of posting
periods. Normally, the current posting period is open for document
posting and all other periods are closed. At the end of the period
(month), this posting period is closed and the new one is opened for
postings. This way it provides better control.
It is, however, possible to keep all the periods or select periods open.
25. What is a ‘Posting Period Variant’?
A ‘Posting Period Variant’ is useful in ‘opening/closing’ posting
periods across many Company Codes at one time. You define a posting
period variant and assign it to various Company Codes. Since the
posting period variant is cross-Company Code, the opening and closing
of the posting period is made simple. Instead of opening and closing
individually for different Company Codes, you just need to open or
close the posting period variant.
26. Can You Selectively ‘Open’ and ‘Close’ accounts?
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Yes. It is possible to selectively control the ‘opening’ and ‘closing’ for
various types of accounts. Usually, a ‘+’ is mentioned in the top-most
entry indicating that all the account types are allowed for posting.
Now, for the GL(S) accounts, you will need to specify the period which
needs to be opened. This ensures that all the account types are open
for the current period, indicated by ‘+,’ and only the GL accounts are
open for the previous period.
Select account types can also be opened or closed for a specific period;
select accounts within an account type can also be opened or closed.
27. Why is it not Possible to Post to a Customer A/C in a
Previously Closed ‘Period’?
When you want to selectively ‘close’ or ‘open’ the posting period of
some accounts (account range), there will be no problem with that if
you are doing it for GL accounts. But, if it is a sub ledger account (such
as the customer), it has to be achieved via opening or closing the
account interval of the ‘reconciliation account’ of that account type.
28. Can You Open a ‘Posting Period’ only for a Particular
User?
Yes. SAP allows you to open or close the posting period only for specific
users. This can be achieved by maintaining an authorization group
at the document header level.
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29. What is a ‘Special Period’? When do you Use it?
Besides the normal posting periods, SAP allows for defining a
maximum four more posting periods, which are known as ‘Special
Periods’ as these are used for year-end closing activities. This is
achieved by dividing the last posting period into more than one
(maximum four) period. However, all the postings in these special
periods should fall within the last posting period.
The special periods cannot be determined automatically by the system
based on the posting date of the document. The special period needs
to be manually entered into the ‘posting period’ field in the document
header.
30. What is the Maximum Number of ‘Posting Periods’ in
SAP?
Under GL accounting, you can have a maximum of 16 posting periods
(12 regular plus 4 Special Periods).
31. What is known as ‘Year Shift/Displacement’ in a Fiscal
Year?
When the fiscal year is not the same as the calendar year, we need to
define a ‘displacement factor’ for each of the posting periods to
correctly identify the number of posting periods.
For example, consider the fiscal year variant V3. The fiscal year starts
on April 1st and ends on March 31st of the next calendar year so the
displacement factor or year shift from April to December is ‘0,’ and for
January to March, it will be ‘−1’. By defining it this way, the system is
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able to recognize the correct posting period. A posting made on
January 25th, 2006 will then be interpreted as the 10th posting period in
fiscal year 2005.
32. What is a ‘Year-dependent’ Fiscal Year?
A calendar year fiscal variant, when defined as ‘year-dependent,’ is
relevant and valid only for that year.
33. What Precautions should you take while defining a
‘Shortened Fiscal Year’?
Note that the ‘Shortened Fiscal Year’ is always year-dependent. This
has to be followed or preceded by a full fiscal year (12 months). Both
the shortened and the full fiscal year, in this case, have to be defined
using a single fiscal year variant.
34. Tell me more about a ‘Shortened Fiscal Year.’
As mentioned already, a ‘Shortened Fiscal Year’ is one containing
less than 12 months. This kind of fiscal year is required when you are
in the process of setting up a company, or when you switch over one
fiscal year (e.g., calendar year) to another type of fiscal year (non-
calendar).
35. How do you open a new ‘Fiscal Year’ in the System?
You do not need to ‘open’ the new fiscal year as a separate activity.
Once you make a posting into the new fiscal year, the new fiscal year
is automatically opened. Or, the new fiscal year is automatically
opened when you run the ‘balance carry-forward’ program.
However, you need to have (1) the relevant posting period already
open in the new fiscal year, (2) completed the document number range
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assignment if you are following a year-dependent number range
assignment, and (3) defined a new fiscal year variant if you follow the
year-dependent fiscal year variant.
36. How do you ‘Carry-Forward’ Account Balances?
If you have already posted into the new fiscal year, you do not need to
‘carry-forward’ the balances manually. But you can use the various
‘carry-forward’ programs supplied by SAP for this task.
37. Can You Explain how ‘Carry-Forward’ Happens in SAP?
Sure. For all the Balance Sheet items, the balances of these accounts
are just carried forward to the new fiscal year, along with account
assignments if any. This also true for customer and vendor accounts.
In the case of Profit & Loss accounts, the system carries forward the
profit or loss (in the local currency) to the Retained Earnings account,
and the balances of these accounts are set to ‘0.’ No additional
account assignments are transferred.
38. Is there a Prerequisite for ‘Carry-Forward’ Activity?
Yes, for Profit & Loss accounts, you should have defined the Retained
Earnings account in the system. Additionally, you should have also
specified the ‘Profit & Loss Account Type’ in the master record of
each of these for Profit & Loss accounts.
There are no such requirements for GL accounts, customer and vendor
accounts.
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39. How many ‘Retained Earnings’ A/C can be defined?
You can define as many ‘Retained Earnings Accounts’ as you need.
But normally, companies use only one retained earnings account.
Remember, to define more than one, you should use the profit & loss
account type.
40. Can you have Multiple ‘Retained Earnings’ A/C?
Normally it is sufficient if you use one ‘retained earnings’ account.
However, if you are configuring for a multinational company where the
legal requirements require treating some of the tax provisions
differently from other countries, then you will need more than one
retained earnings account.
41. What is a ‘Local Currency’?
When you define a Company Code, you also need to mention in which
currency you will be maintaining the accounts/ledgers in financial
accounting. This currency is called the ‘Local Currency.’ This is also
known as ‘Company Code Currency.’
42. What is an ‘Account Currency’?
When defining the GL accounts in the system, you are required to
define a currency in which an account will be maintained, and this is
called the ‘Account Currency.’ This is defined in the ‘Company Code’
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area of the GL master record, and is used for postings and account
balance display.
43. What are all the Prerequisites for Posting in a ‘Foreign
Currency’?
The following are the prerequisites you need to consider before posting
in a foreign currency:
Local currency already defined for the Company Code (in the global
parameters)
Foreign currency defined in the currency code Table
Exchange rate defined for the foreign currency and the local currency
Translation Ratio maintained for the local and foreign currency
44. How are ‘Exchange Rates’ Maintained in SAP?
An ‘Exchange Rate’ is defined for each pair of currencies, and for
each ‘exchange rate type’ defined in the system. The exchange rate is
defined at the document header level.
45. What is an ‘Exchange Rate Type’? List some of them.
The ‘Exchange Rate Type’ is defined according to various purposes
such as valuation, translation, planning, conversion, etc. The
commonly used exchange rate types include:
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46. What is known as the ‘Translation Factor’?
The relation between a pair of currencies per ‘exchange rate type’ is
known as the ‘Translation Factor.’ For example, the translation
factor is 1 when you define the exchange rate for the currencies USD
and INR:
47. How is ‘Master Data’ different from ‘Transaction Data’?
There are three kinds of data residing in any SAP system:
Table Data
Transaction Data
Master Data
Table Data refers to the customized information for a particular
Client. This includes data such as payment terms, discounts, pricing,
tolerance limits, etc., which you do not normally change on a day-to-
day basis.
Transaction Data is the day-to-day recording of business information
such as purchase orders, sales returns, invoices, payments, collections,
etc. This includes both system-generated data (tax, discount, etc.,
automatically calculated by the system during document posting) as
well as user-generated data.
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Master Data is the control information required to decide how
transaction data gets posted into various accounts (such as customers,
vendors, GL, etc.). The master data is usually shared across modules
(for example, customer master records are common both to FI and SD
in SAP) obviating the need for defining it in various application areas.
The master data remains in the system for fairly a long period.
48. Can You Post an A/C Document if the ‘Credit’ is not Equal
to the ‘Debit’?
In general, unless the ‘debits’ equal the ‘credits’ in a document, you
will not be able to post the document. However, the system allows you
to post some of the documents, even if this not true, which includes
the following:
Noted items: this will contain only a debit or credit. Since there is no
updating of accounting entries, the system will allow you to go ahead
with the posting of these items.
General Ledger Accounting
1. What is a ‘Document’ in SAP?
SAP is based on the ‘document principle’ meaning that a document
is created out of every business transaction in the system. The
Document is the result of a posting in accounting in SAP, and is the
connecting link between various business operations. There are two
types of documents:
Original Documents: these documents relate to the origin of
business transactions such as invoices, receipts, statement of
accounts from bank, etc.
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Processing Documents: These include ‘accounting documents’
generated from postings in the system, ‘reference documents,’
‘sample documents,’ etc. The processing documents other than
the accounting ones are also known as ‘special documents’ and
they aid in the simplification of document entry in the system.
Every document consists of:
A Document Header
Two or more Line Items
Before attempting to enter a document, call up the relevant document
entry function as the system provides a variety of ready-made
document entry templates suited to different transactions such as
regular GL entry, customer invoice posting, etc. The details entered in
a document can be simulated and displayed before the document is
actually posted in the system. You may also choose to ‘park’ the
document and post it later.
2. What is a ‘Document Header’?
The ‘Document Header’ contains information that is valid for the
whole document such as:
Document Date
Document Type (Control Information)
Document Number
Posting Date
Posting Period
Company Code
Besides the above, the document header also has information
(editable, later on) such as (a) trading partner, (b) document header
text, (c) reference, (d) cross-Company Code number, etc.
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3. What is a ‘Document Type’?
SAP comes delivered with a number of ‘Document Types,’ which are
used in various postings. The document type helps to classify an
accounting transaction within the system, and is used to control the
entire transaction and determine the account types a particular
document type can post to. For example, the document type ‘AB’
allows you to post to all the accounts, whereas type ‘DZ’ allows you to
post only the customer payments. Every document type is assigned a
number range.
4. How is ‘Account Type’ Connected to ‘Document Type’?
The ‘Document Type’ is characterized by a 2-character code such as
AA, DG, etc., whereas an ‘Account Type’ is denoted by a 1-character
code such as A, D, etc., specifying which accounts a particular
document can be posted to. The common account types include:
A Assets
D Customer (Debtor)
K Vendor (Creditor)
M Materials
S GL
5. Explain the Various ‘Reference Methods.’
SAP recommends ‘Reference Methods’ as a ‘document entry tool’ to
facilitate faster and easier document entry into the system, when you
are required to enter the same data time and again. Besides making
the document entry process less time-consuming, this also helps in
error-free document entry.
The various Reference Methods used in SAP include:
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Reference Documents
Account Assignment Models
Sample Documents
6. What is the ‘Document Change Rule’?
The functionality ‘Document Change Rules’ configured in the
system maintains the information relating to ‘what fields can be
changed?’ and ‘under what circumstances?.’ As you are already aware,
SAP’s document principle does not allow changing the ‘relevant’
fields once a document is posted; any changes can only be achieved
through ‘Reversal’ or additional postings. Fields such as company
code, business area, account number, posting key, amount, currency,
etc., can never be changed once the document is posted. However,
SAP allows changing some of the fields in the line items such as
payment method, payment block, house bank, dunning level, dunning
block, etc. These can be changed document by document or by using
‘mass change’ for a number of documents in a single step.
The changes to ‘master data’ are tracked and stored per user for an
‘audit trail.’
7. Differentiate between ‘Account Assignment Model,’ ‘Recurring
Entries,’ and ‘Sample Document,’
‘Account Assignment Model’ is a ‘reference method’ used in
document entry when the same distribution of amounts to several
Company Codes, cost centers, accounts, etc., is frequently used.
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Instead of manually distributing the amount among accounts or
Company Codes, you may use equivalence numbers for distributing
both the credit and debit amounts. A cross-Company Code account
assignment model can also be created.
The account assignment model may contain any number of GL
accounts. The GL account items need not be complete. The model can
be used across several Company Codes, and can even include
Company Codes from non-SAP systems.
You can use the account assignment model while ‘parking’ a
document (but you cannot use a ‘reference document’ for
‘parking’).
The use of account assignment models is limited to GL accounts.
Unlike a ‘Sample Document,’ an account assignment model may be
incomplete and can be completed during document entry by adding or
deleting or changing the data already saved in the model.
The ‘Recurring Entry’ original document is used by the system as a
‘reference document’ for enabling posting of periodically recurring
postings such as loan repayments, insurance premium payments, rent,
etc. Since this document is not an accounting document, the account
balances are not affected. In a recurring entry original document, you
will not be able to change the (a) posting key, (b) account, and (c)
amount. The recurring entry documents are defined with a special
number range (X1). Unlike an account assignment model, these
documents cannot be used for cross-Company Code postings.
The recurring entry document does not update transaction figures,
per se, but acts only as a reference and as the basis for creating
accounting documents. The SAP program SAPF120 creates the
accounting documents from the recurring entry original document.
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There are two ways to set the exact date when this document should
be posted to:
Posting frequency: enter the day of the month and the period
(in months) between two postings.
Scheduled run: configure the ‘run schedule’ specifying the
calendar days on which the program should post these
documents.
A Sample Document is like a template, which is created and stored
so that the information contained therein can be easily copied into new
documents and posted in the system. But once a sample document is
created note that you will not be able to change the ‘line items’
already contained in that document; all you can do is change the
amounts in that sample document. But you can overcome this by
defining a new sample document that can contain other line items or
you may add new line items to the FI document, which is created by
copying from the original sample document.
Sample documents have separate number ranges (X2).
8. What is a ‘Line Item’?
The ‘Line Items’ contain information relating to account number,
amount, debit/ credit, tax code, amount, etc. SAP allows a maximum of
999 line items in a single document. Besides the one entered by you
during an document entry, the system may also create its own line
items called ‘system generated line items,’ such as tax deductions,
etc. Irrespective of the number of line items entered, ensure that the
total of these is always zero (that is, total debits should equal total
credits). Otherwise, the system will not allow you to post the
document.
9. What is a ‘Posting Key’?
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A ‘Posting Key’ in SAP is a 2-digit alphanumeric key that controls the
entry of line items. SAP comes with many posting keys for meeting the
different business transaction requirements: 40 (GL debit), 50 (GL
credit), 01 (customer invoice), 11 (customer credit memo), 21 (vendor
credit memo), 31 (vendor payment), etc.
The posting key determines:
What account can be posted to
Which side of the account (debit or credit) to be posted to, and
What ‘layout’ screen needs to be used for that particular
transaction?
It is a normal practice not to change any of the default posting keys in
the system, as you would very rarely require additional posting keys.
10. Differentiate between the ‘Parking’ and the ‘Holding’ of
Documents.
The ‘Parking of a Document’ in SAP is one of the two preliminary
postings (the other being the ‘Holding’ of documents) in the system
and refers to the storing of incomplete documents in the system.
These documents can later be called on for completion and posting.
While ‘parking’ a document, the system does not carry out the
mandatory ‘validity checking.’ The system does not also carry out any
automatic postings (such as creating tax line items) or ‘balance
checks.’ As a result, the transaction figures (account balances) are not
updated. This is true in the case of all financial transactions except in
the area of TR-CM (Cash management) where ‘parked’ documents
will update the transactions.
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The parking of documents can be used to ‘park’ data relating to
customers, vendors, or assets (acquisition only). When a cross-
Company Code document is ‘parked,’ only one document is created in
the initial Company Code; when this ‘parked’ document is posted all
other documents relevant for all other Company Codes will also be
created. However, it is to be noted that substitution functionality
cannot be used with document ‘parking,’ as substitution is activated
only on transaction processing.
The added advantage is that a document ‘parked’ by an accounting
clerk can be called on for completion by someone else. The ‘parked’
documents can be displayed individually or as a list from where the
required document can be selected for completion and posting. The
number of the ‘parked’ document is transferred to the posted
document. The original ‘parked’ document, if necessary, can be
displayed even after it has been posted to.
During a transaction when you do not have a piece of required
information, you can ‘Hold the Document’ and complete it later. As
in the case of ‘parked’ documents, here also the document does not
update the transaction figures.
The essential difference between these two types of preliminary
postings can be summarized as follows:
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Open table as
spreadsheet
Attribute
‘Park’
document
‘Hold’ document
View the
document in
‘Account
Display’?
Yes No
Changes to the
document?
Any user can
access, view,
and/change
the document
No other user, except
the creator, will be
able to access, view,
and/change the
document
Document
number?
System
assigned
Manually entered by
the user
Use of data in
the document
for evaluation
purposes?
Possible Not possible
11. Explain ‘Reversal of Documents’ in SAP.
If you need to change some of the accounting information relating to
an already posted document, you can only achieve this by
‘Reversing’ the original document and posting a new one with the
correct information. However, reversal is possible only when:
The origin of the document is in FI (not through SD or MM, etc.)
The information such as business area, cost center, etc., is still
valid (that you have not deleted these business objects)
The original document has no cleared items
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The document relates only to the line items of
customer/vendor/GL
While reversing, the system automatically selects the appropriate
document type for the reversal, and defaults the relevant posting keys.
(Remember that the document type for the reversal document would
have already been configured when the document type was defined in
the configuration.) Also note that if you do not specify the posting date
for the reversal document, the system defaults to the posting date of
the original document.
12. What is ‘Fast Entry’?
Instead of the regular document entry screens, SAP provides ‘Fast
Entry’ screens for facilitating a quick way of entering repetitive line
items in a transaction. For achieving this, you need to define a Fast
Entry Screen Layout, which will specify what fields you will require
for data entry, and in what order. You may configure these fast entry
screen layouts for GL account line items, credit memos, and
customer/vendor invoices. Each of these fast entry screen layouts will
be denoted by a 5-character screen variant in the system. Fast entry
screens are used in complex (general) postings.
SAP’s enjoy postings are also meant for similar data entry screens,
but the difference is that in the case of ‘fast entry’ you will start from
scratch when identifying the fields, positioning them in the line item,
etc., whereas in enjoy postings, the system comes with all the fields
activated and you will select the fields that you do not want to be
made available for data entry.
13. How do you Create ‘GL Account Master Data’?
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‘GL Account Master Data’ can be created using any one of the
following methods:
Manually
Creating with reference
Through Data Transfer Workbench
Copying from existing GL accounts
The Manual Creation of GL account master records is both laborious
and time consuming. You will resort to this only when you can’t create
master records using any of the other methods listed above.
You will follow the second method, Creating With Reference, when
you are already in SAP and have an existing Company Code (Reference
Company Code) from which you can copy these records to a new
Company Code (Target Company Code). You will be able to do this by
accessing the Menu: ‘General Ledger Accounting>GL Accounts>Master
Data>GL Account Creation> Create GL Accounts with Reference.’
While doing this, you can copy the ‘account assignments’ as well
ensuring that the integration of GL with other applications is intact.
SAP facilitates so that you can (i) limit the number of GL records thus
copied to the target Company Code, (if) create new records if
necessary, and (iii) change the account number/name.
When your GL accounts are in a non-SAP system and you feel that
these accounts will meet your requirements you will then use the
‘Data Transfer Workbench’ of SAP to transfer these records into
SAP, and change them to suit the SAP environment. Since this will not
have ‘Account Assignment’ logic as defined in SAP, you need to be
careful when defining these assignments.
You will resort to the last option of Copying from Existing GL
Accounts only when you feel that there is a Chart of Accounts in the
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system that meets your requirements 100%. Otherwise, follow the
second method described above.
14. Is it Possible to Change an Existing B/S GL A/C to the P&L
Type?
Technically, you will be able to change all the fields, except the
account number, of a GL account in the Chart of Accounts area.
However, in this particular instance when you change the ‘GL account
type’ from ‘B/S’ to ‘P&L,’ make sure that you again run the ‘balance
carry-forward’ program after saving the changes so that the system
corrects the account balances suitably.
15. What is an ‘Account Group’?
The ‘Account Group’ (or GL Account Group), a 4-character
alphanumeric key, controls how the GL account master records are
created in the system. This helps to ‘group’ GL accounts according to
the ‘functional areas’ to which they must belong. Account group is
mandatory for creating a master record. The same account groups can
be used by more than one more Company Code if they all use the
same Chart of Accounts. Each GL account is assigned to only one
account group.
The Account Group determines:
The number interval that is to be used while creating the
master record.
The screen layout that is to be used while creating the master
record in the Company Code area.
While defining the account groups in the system, you also need to
define the corresponding field status for each of these groups.
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Otherwise, you will not be able to see any fields as all these would be
hidden by default.
SAP comes delivered with a number of ‘account groups’ such as:
SAKO (GL accounts general)
MAT. (Materials Management accounts)
FIN. (Liquid Funds accounts)
In most situations, you will not require additional groups other than the
ones already available in the standard system. However, if you need to
create a new one, it is easier to copy an existing one and make
modifications to it instead of creating one from scratch.
16. Describe ‘Number Range Interval.’
A ‘Number Range’ refers to a number interval defined in the system so
that when documents are posted, the system assigns a number from
this range. You will define different number ranges for different
document types. Each document in SAP is uniquely identified by the
combination of (a) document number, (b) company code, and (c) fiscal
year.
The number range for a document type can be defined:
Per fiscal year or
Until a fiscal year in future.
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If defined to last only one fiscal year, then the number range needs to
be defined every year. When number ranges are defined every year,
the system starts from the first number in the range for that particular
year, which helps to prevent reaching the upper limit too fast.
If you specify the fiscal year as ‘9999,’ then the document number
range is valid forever (well, almost!) and you do not have to do this
exercise of maintaining number ranges every fiscal year. But every
year the system starts from the last number used up in the previous
year and if a small number range is defined for a document type, you
could easily run out of the number range fast.
The document numbers can either be:
Internally assigned by the system or
Externally input when the same is created.
The number ranges can be defined in such a way that the system
generates the number automatically when a document is created. This
is known as ‘internal number assignment.’ Under this, the system
stores the ‘last number’ used for a document in the ‘Current Number’
field and will bring up the next number when another document is
created.
If ‘external numbering’ is used, the user needs to input a document
number every time a document is created in the system. Since the
user supplies the number every time, the subsequent numbering may
not be sequential. Unlike an internal numbering, the system does not
store the ‘last number’ in the ‘Current Number’ field.
The numbers in a number range can either be numeric or
alphanumeric. If numbers are numeric, the system will prefix the
number with the required zeros to make the number length uniform at
10 digits. If you are using alphanumeric numbering, then the number is
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padded with zeros from the right. If you are following ‘year-specific’
numbering, it is better not to mix numeric and alphanumeric
numbering for a particular document type in various fiscal years.
The system creates a minimum of one document when a transaction is
created/completed. SAP recommends ‘filing’ original documents (under
the number of the processing document (the document generated in
SAP)). The best practice is to enter the (external) number of the
‘original document’ in the ‘Reference’ field of the document created in
the SAP system. For easy cross-reference, the SAP document number
thus created needs to be noted on the ‘original document.’
The following are the activities you need to complete for configuring
the number ranges properly in the system:
Defining the number ranges
Copying the number ranges to Company Code(s)
Copying the number ranges to fiscal year(s)
17. What is a ‘Screen Layout’?
The ‘account group’ determines which ‘Screen Layout’ should be
used while creating a GL account master record. For each of the
account groups, you can define different screen layouts, which
essentially determine the ‘Field Status’ of a field.
The field status refers to whether the field is:
Suppressed (field is invisible, hidden from display)
Required (display on, entry mandatory)
Optional (display on, entry not mandatory)
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All the above three are shown as ‘radio buttons’ against each of the
fields in the screen layout, and you should select any one to set the
status to that field; by default all the fields are ‘suppressed.’
There are two levels of controls of field status:
Field status at the account group level
Field status at the activity (create/change/display) level (i.e., at
the transaction level).
You may also have the field status defined for posting keys (40-debit
and 50-credit for the GL account postings). Also remember to define
the field status for ‘reconciliation accounts’ as you will not be able to
define any such status in the sub ledger accounts (for example,
customer or vendor).
SAP has built-in rules, called link rules, to link these two levels and to
decide the final status of a field in the ‘screen layout.’ The link rules
also help to overcome the field-status setting differences arising out of
different settings at the Client level (field status for posting keys) and
the Company Code level (field status settings at the account group
level).
18. What is a ‘Field Status Group’?
The ‘field status’ of an individual field or a group of fields is marked in
a ‘Field Status Group,’ which is then assigned to individual GL
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account master records. You may attach field status groups to a field
status variant so that the ‘field status groups’ are used in various
Company Codes.
The Field Status Variant is named similar to the Company Code. For
example, if your Company Code is 1000, the field status variant is also
named 1000, and it is assigned to the Company Code.
19. What do You mean by ‘Balances in Local Currency’ Only?
When you create GL account master records, it is necessary to decide
whether you want an account to have the transactions updated only in
local currency. You will set this indicator accordingly in the ‘Company
Code area’ of the master record. Make sure to set this indicator for
clearing accounts such as:
Cash discount clearing accounts
GR/IR clearing accounts
Note that you need to set this indicator ‘on’ for all the ‘clearing
accounts’ where you use the local currency to clear the line items in
various currencies so that the transactions are posted without posting
any exchange rate difference that otherwise might arise.
Example: Consider an invoice for USD 1,000, which on that day
translates into an amount of INR 45,000 with an exchange rate of I
USD=INR 45. Imagine that when the goods are received, the exchange
rate was 1 USD=INR 44.
If the indicator is set, the system ignores the exchange rate as if
the line items have been maintained only in the local currency
(INR), and the items are cleared.
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If the indicator is NOT set, the system makes a posting for the
‘exchange rate difference’ (INR 1, 000) before clearing the two
line items.
20. What is ‘Line Item Display’?
To display line items of an account, you need to set the indicator ‘Line
Item Display’ to ‘on’ in that account’s master record. This is
mandatory for customer and vendor accounts. The line items can be
displayed using the classical display or the SAP List Viewer (ALV). You
can also use several ‘display variants’ to display various fields when
you feel that the Standard Variant is not meeting your requirements.
21. Tell me the two uses of ‘Blocking’ an Account.
You may use ‘Blocking’ to:
Block an account from further postings.
Block the creation of the account itself (at the Company Code
level or Chart of Accounts area).
Accounts Payables
1. Explain the ‘Account Payables’ Submodule.
‘Accounts Payables,’ a submodule under Financial Accounting (FI),
takes care of vendor-related transactions as the module is tightly
integrated with the purchasing transactions arising from the
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‘Procurement Cycle.’ The module helps in processing outgoing
payments either manually or automatically through the ‘Automatic
Payment Program.’ It also helps in ‘Vendor Evaluations.’
1.15.1 What Documents Result from ‘Procurement Processes’?
In Materials Management (MM):
PR: Purchase Requisition (manual or automatic using MRP)
PO: Purchase Order
In Financial Accounting (FI):
Invoice Verification
Vendor Payment (manual or automatic)
Both MM and FI areas:
Goods Receipt
You may also group these documents into (1) Order documents, (2) GR
(Goods Receipt) documents, and (3) IR (Invoice Receipt) documents.
While GR/IR documents can be displayed both in MM and FI views, the
order documents can only be viewed in MM view.
2. Describe a ‘Purchase Cycle.’
A ‘Purchase Cycle or Procurement Cycle’ encompasses all
activities including purchase requisition, purchase order, goods
movement, goods receipt, invoicing, invoice verification, payment to
vendors, and ends with the updating of vendor account balances.
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3. What is a ‘Purchase Requisition’ (PR)?
A ‘Purchase Requisition,’ PR, is the document that outlines a
company’s purchasing needs of a material/service from vendor(s). A
PR, typically an internal document that can be created automatically or
manually, identifies the demand for a product and authorizes the
purchasing department to procure it. In the automatic creation of a PR,
this is done as a result of MRP (Material Requirements Planning).
The PR, after identifying the vendor, is processed further to result in a
RFQ (Request for Quotation) or directly to a Purchase Order
(PO).
4. What is a ‘Request for Quotation’ (RFQ)?
A ‘RFQ (Request for Quotation),’ which can be created directly or
with reference to another RFQ or a PR or an Outline Agreement, is
actually an invitation to vendor(s) to submit a ‘quotation’ for supplying
a material or service. The RFQ will contain the terms and conditions for
supply. You may send the RFQ to single or multiple vendors, and you
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can monitor it by sending reminders to those who have not responded
to the RFQ.
5. What is an ‘Outline Agreement’?
An ‘Outline Agreement,’ a declaration binding both the buyer and
seller, is the buyer’s intention to purchase a material/service with
certain terms and conditions agreed to by both parties. The essential
difference between the ‘outline agreement’ and ‘quotation’ is that the
outline agreement does not contain details such as delivery schedule
or quantities. Outline agreements can be contracts or scheduling
agreements.
6. What is a ‘Contract’?
A ‘Contract,’ also referred to as a ‘Blanket Order,’ is a long-term
legal agreement between the buyer and the seller for procurement of
materials or services over a period of time. The contract, created
directly or with reference to a PR/RFQ or another contract, is valid for a
certain period of time with start and end dates clearly mentioned.
There are two types of contracts: Quantity Contracts and Value
Contracts.
7. What is a ‘Quotation?
A ‘Quotation’ contains information relating to the price and other
conditions for supply of a material or a service by a vendor, and is the
vendor’s willingness to supply the same based on those conditions.
You will be able to compare the data from quotations using a Price
Comparison List and will help in identifying the most reasonable
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vendor for supply of that item(s). After you receive the quotations, you
will typically enter the quotation data (pricing/delivery) in RFQ. The
SAP system can easily be configured to automatically print
‘Rejections’ for vendors whose quotation are not selected.
8. What is a ‘Purchase Order’ (PO)?
A ‘Purchase Order’ (PO) is a legal contract between a vendor and a
buyer concerning the material/service to be purchased/procured on
certain terms and conditions. The order mentions, among other things,
the quantity to be purchased, price per unit, delivery related
conditions, payment/pricing information, etc.
A PO can be created:
Directly or
With reference to a PR/RFQ/contract or another PO. Remember,
all items on a PO should relate to the same Company Code.
9. What is a ‘PO History’?
The ‘Purchase Order History’ (PO History) lists all the transactions
for all the items in a PO such as the GR/IR document numbers.
10. Will the FI Document be Created with the Purchase Order
(PO)?
No. There will not be any document created on the FI side during
creation of a PO. However, there can be a document for posting a
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‘commitment’ to a Cost Center in CO. (The offsetting entry is posted at
the time of GR.)
11. Explain FI-MM Integration.
FI-MM Integration is based on the following:
Movement Types
Valuation Class
Transaction Keys
Material Type
The Movement Type is the ‘classification key’ indicating the type of
material movement (for example, goods receipt, goods issue, physical
stock transfer). The movement type enables the system to find pre-
defined posting rules determining how the accounts in FI (stock and
consumption accounts) are to be posted and how the stock fields in the
material master record are to be updated.
The Valuation Class refers to the assignment of a material to a group
of GL accounts. Along with other factors, the valuation class
determines the GL accounts that are updated as a result of a valuation-
relevant transaction or event, such as a goods movement. The
valuation class makes it possible to:
Post the stock values of materials of the same material type to
different GL accounts.
Post the stock values of materials of different material types to
the same GL account.
The Transaction Key (also known as the ‘Event Key or Process
Key’) allows users to differentiate between various transactions and
events (such as physical inventory transactions and goods
movements) that occur within the area of inventory management. The
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transaction/event type controls the filing/storage of documents and the
assignment of document numbers.
The Material Type groups together materials with the same basic
attributes, for example, raw materials, semi-finished products, or
finished products. When creating a material master record, you must
assign the material to a material type. The material type determines:
Whether the material is intended for a specific purpose, for
example, as a Configurable Material or Process Material.
Whether the material number can be assigned internally or
externally.
The Number Range from which the material number is drawn.
Which screens appear and in what sequence.
Which user department data you may enter.
What Procurement Type the material has; that is, whether it is
manufactured in-house or procured externally, or both.
Together with the plant, the material type determines the material’s
inventory management requirement, that is:
Whether changes in quantity are updated in the material master
record.
Whether changes in value are also updated in the stock accounts
in financial accounting.
12. What Happens, in SAP, when You Post a ‘Goods Receipt’?
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When you post a ‘Goods Receipt’ (GR), the stock account is debited
(stock quantity increases) and the credit goes to the GR/IR Clearing
Account, which is the intermediate processing account, before you
actually process the vendor invoice or payments to the vendor:
Debit: Inventory Account
Credit: GR/IR Clearing Account
During this:
A material document is created,
An accounting document to update the relevant GL account is
created,
PO order history is updated, and finally
The system enables you to print the GR slip.
13. Explain ‘Invoice Verification’ (IV) in SAP.
‘Invoice Verification’ involves:
Validating the accuracy of the invoices (quantity, value, etc.).
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Checking for ‘blocked’ invoices (which vary to a great extent
from that of the PO).
Matching of invoices received from vendors with that of the
Purchase Order/ Goods Receipt. At this point in time, the PO
History is updated for the corresponding PO Line Item(s) of the
matched invoice.
Passing of matched invoices to the FI module. The system posts
the following entries:
1. Debit: GR/IR Clearing Account
2. Credit: Vendor a/c (Accounts Payable open line item)
3. Credit: GL Reconciliation Account
The different scenarios in invoice verification include:
GR-based Invoice Verification indicator is not set in the PO detail
screen: Although this setting enables you to post the invoice
referenced to a PO prior to making a GR, the system will block
the invoice for payment (this kind of posting results in a
Quantity Variance as there has not been a GR).
GR-based Invoice Verification indicator is set in the PO detail
screen: When the PO number is referenced the system brings up
all the unmatched items of GR in the selection screen. You will
not be able to post the invoice for its full value, unless the PO
has been fully received.
14. Explain ‘Automatic Payment Program.’
The ‘Automatic Payment Program’ in SAP helps to process payment
transactions both with customers and vendors. AR/AP/TR/Bank
Accounting uses the payment program.
The ‘automatic payment program’ helps in determining:
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What is to be paid? To do this, you specify rules according to
which the open items to be paid are selected and grouped for
payment.
When is payment to be carried out? The due date of the
open items determines when payment is carried out. However,
you can specify the payment deadline in more detail via
configuration.
To whom the payment is made? You specify the payee (the
vendor or the alternate payee as the case may be).
How the payment is made? You determine rules that are used
to select a payment method.
From where the payment is made? You determine rules that
are used to select a bank and a bank account for the payment.
15. Explain ‘Automatic Payment Program’ Configuration.
Before you are ready to run the ‘Automatic Payment Program,’ the
following should have been defined/configured in the system:
House Bank and the corresponding bank accounts.
Payment Methods to be used for the Company Code. SAP
comes with predefined payment methods, both for AR and AP.
The following payment methods are available for you to select
from depending on the requirements:
1. Accounts Payable
Check (S)/Transfer/Bill of exchange
2. Accounts Receivable
Bank collection/Bank direct debit/Refund by check/Refund by
bank transfer/BE payment request
Bank Chain defined, if necessary. Bank chains are used to make
payment via more than one bank, for example, via the
correspondence banks of the house bank, the recipient bank, or
the intermediary banks. You can define up to three banks.
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Payment Forms defined. SAP delivers standard forms, which
can be modified, or new forms can be created for use.
You may do most of the configurations by using the Transaction Code
FBZP and branching to individual sections thereon. Or you may use
the following Transaction Codes for individually doing it:
(Sending) Company Code specifications
Sending the Company Code—if Company Code ‘A’ is making payments
on behalf of ‘B,’ then ‘B’ is the Sending Company Code. Otherwise, the
sending Company Code is considered the paying Company Code (both
are one and the same).
Paying Company Code specifications
Minimum amounts for incoming and outgoing payments.
Forms for payment advice and EDI.
Bill of exchange parameters
Payment Methods/Country and Bank determination
Payment Methods/Country
Payment Method for outgoing/incoming?
Payment Method classification
Master data requirements
Posting details—document types
Payment medium details—Print programs
Permitted currencies (leave blank to allow all currencies)
Bank Determination
Ranking Order
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Per Payment Method:
Which bank should be used first, second, etc.
Currency
Bill of Exchange
Bank accounts
Available amounts
Per House Bank and Payment Method combination:
Offset a/c for sub ledger posting
Available funds in each bank
Clearing accounts for Bill of Exchange
Value date
Charge
Payment methods per Company Code
For each Payment Method and Company Code you need to define:
Minimum/maximum payment amounts
Whether payment abroad or in foreign currency is allowed
Payment Media
Bank optimization
House Bank
1.15.2 16. How do you execute an ‘Automatic Payment Program’?
The following are the series of events happening in the system when
you try to execute an ‘Automatic Payment Program’:
Maintain Payment Parameters
To start with, you need to maintain the parameters required such as
date of execution of ‘payment run,’ ‘payment run identifier,’ etc. Once
this is done, you need to specify the ‘posting date’ of these payments,
the ‘document date’ up to which the program should consider the
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items, the paying Company Code, payment methods to be considered,
the ‘next posting date,’ is there certain accounts which need to be
excluded from the run, etc. The payment run then needs to be
scheduled either immediately or at a specified time/date.
Payment Proposal
The system creates a ‘payment proposal’ based on the payment
parameters maintained in (1) above. The system selects the eligible
Open Items based on the following sequence:
Due date is determined via the Base Line Date and the Terms of
Payment for each of the line items.
Program calculates the Cash Discount Period and due date for the
Net Payment.
Grace Periods are then added to this due date.
Which Special GL accounts are to be included, based on what you
have already maintained as the parameters in (1) above?
The system will determine whether to include an item during the
current run or for the future one based on the specifications you made
in (1).
Blocking an item.
The payment proposal can be displayed for further processing; the
‘log’ can be checked to see the system messages, and the exception
list can be generated for further evaluation.
Payment Proposal
With the payment proposal available, you can now edit the proposal to:
Change House Bank, from what was maintained earlier
Change Payment Method, if necessary
Change Payment Due Date to relax or restrict certain open items
Block/Unblock line items
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Payment Run
After the payment proposal has been edited, you can run the
Payment Program that creates the payment documents and
prepares the data for printing the forms or creating the tape or disk.
Before printing the forms, check the logs to determine that the
payment program run was successful.
Print Run
Payment Medium Programs use the data prepared by the payment
program to create forms (payment advice, EDI accompanying sheet,
etc.) or files for the data media. The data created by the payment
program is stored in the following tables:
You need to define Variants for print programs, which need to be
defined:
Per Payment Method per country->assign a Print Program
To run the Print Program->at least one Variant per Print Program per
Payment Method
17. Can You Pay a Vendor in a Currency Other than
the Invoice Currency?
With release 4.5A, you can pay a vendor in a currency that is different
from that of the transaction/invoice currency. This is achieved by
entering the required currency code directly in the open item. Prior to
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this release, to pay in a different currency, you had to manually
process the payment.
18. What is a ‘Payment Block’?
A ‘Payment Block’ prevents you from paying an open item of a
vendor. The payment block is entered in the ‘Payment Block’ field in
a vendor master record or directly in the open line item.
Use the payment ‘Block Indicators’ to define the ‘Payment Block
Reasons.’ You may use the SAP delivered payment block indicators
(A, B, I, R, etc.) or create your own. An indicator such as ‘*’ is used
when you want to skip the particular account, and a blank indicator
indicates that the account/item is free for payment. However, for each
of these ‘block indicators,’ you need to configure whether changes
would be allowed while processing the payment proposal. Then, it is
also possible to block a payment or release a blocked one while
processing the ‘Payment Proposal.’
You may also propose a ‘payment block indicator’ while defining Terms
of Payment.
19. How do You Release ‘Blocked Invoices for
Payments’?
The system will block an invoice if it comes across with an item with
a ‘Blocking Reason.’ The blocking reason may be due to variances or
inspection-related issues. When the system blocks an invoice for
payment, the ‘payment block’ field is checked by the system.
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You will use an ‘Invoice Release Transaction’ to select the blocked
invoices for processing further. The ‘release’ of blocked invoices for
payments can be handled either manually or automatically.
20. What is a ‘Credit Memo’?
A ‘Credit Memo’ is issued by a vendor who has earlier supplied you
some services or materials. The occasion is necessitated when the
delivered goods are damaged or you have returned some of the goods
back to the vendor. The system treats both the invoices and the credit
memo in the same way, except that the postings are done with the
opposite sign.
If the credit memo is for the entire invoiced quantity, the system
generates the credit memo automatically. However, if the credit memo
relates to a portion of the invoiced quantity, you need to process it
manually in the system.
21. What are ‘Special GL Transactions’?
‘Special GL Transactions’ are not directly posted to the GL
(Reconciliation Accounts) though these are related to sub ledger
accounts such as AR/AP. The transactions to these accounts are shown
separately in the balance sheet. There are specific posting
keys/indicators defined in the system to regulate the postings to these
items. You need to specify a Special GL Indicator (such as a F-Down
Payment Request, A-Down Payment) for processing such a transaction.
And the system will make use of the specially defined posting keys (09-
customer debit, 19-customer credit, 29-vendor debit, and 39-vendor
credit) for posting these special GL transactions.
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There are three types of Special GL transactions:
Free Offsetting Entries (Down Payment)
Statistical Postings (Guarantee)
Noted Items (Down Payment Request)
General Controlling
Explain ‘Controlling (CO)’ in SAP.
SAP calls managerial accounting ‘Controlling’ and the module is
commonly known as ‘CO.’ The CO module is, thus, primarily oriented
towards managing and reporting cost/revenue and is mainly used in
‘internal’ decision-making. As with any other module, this module also has
configuration set-up and application functionality.
The controlling module focuses on internal users and helps management by
providing reports on cost centers, profit centers, contribution margins and
profitability, etc.
What are the Important ‘Organizational Elements of CO’?
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The important organizational structure of controlling includes:
Operating Concern (the top-most reporting level for profitability
analysis and sales and marketing controlling).
Controlling Area (central organization in ‘controlling,’ structuring
internal accounting operations).
Cost Centers (lower-most organizational units where costs are
incurred and transferred).
What is a ‘Controlling Area’? How is it Related to a Company Code?
A ‘Controlling Area’ is the central organizational structure in ‘controlling’
(CO) and is used in cost accounting. The controlling area, as in the case of a
Company Code, is a self-contained cost accounting entity for internal
reporting purposes. The controlling area is assigned to one or more Company
Codes to ensure that the necessary transactions, posted in FI, are
transferred to controlling for cost accounting processing.
One controlling area can be assigned one or more Company Codes.
One chart of accounts can be assigned to one or more controlling
areas.
One or more controlling areas can be assigned to an operating
concern.
One Client can have one or more controlling areas.
Outline ‘Company Code—Controlling Area’ Assignments.
There are two types of assignments possible between the Company Code
and a controlling area:
One-to-one: Here, one Company Code corresponds to one controlling
area.
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Many-to-one: More than one Company Code is assigned to a single
controlling area.
1.15.3 292. Explain the Different Types of ‘Controlling Area/Company
Code’ assignments.
Open table as
spreadsheet
Controlling
area-Company
Code
assignment
1:1 assignment 1: many assignments (cross-
Company Code cost
accounting)
Chart of
accounts
The chart of
accounts should be
the same between
the controlling area
and the Company
Code.
The ‘operative chart of accounts’
of the Company Codes, and the
controlling area should be the
same.
Fiscal year
variant (special
and posting
periods)
The number of special periods may be different
between the Company Code and the controlling area,
but the number of posting periods should be the same.
Also, the period limits of posting periods should be
identical.
Controlling area
currency
Same as the
Company Code
currency.
You may use the same currency
as that of the Company Code.
You may also use another
currency in controlling
Object currency Additional
currency, besides
You can choose any object
currency if all the assigned
Mr.K.Santhosh KumarSAP FICO Consultant
Open table as
spreadsheet
Controlling
area-Company
Code
assignment
1:1 assignment 1: many assignments (cross-
Company Code cost
accounting)
the controlling area
currency, can be
used for each
account
assignment objects
in CO.
Company Codes have the same
currency that are the same as
the controlling area currency.
Otherwise, the system
automatically assigns the
Company Code currency to the
account assignment object as an
object currency.
Transaction currency
Documents are posted in CO in the transaction currency.
Allocations Cross-Company Code cost allocation in CO is not possible.
Cross-Company Code allocation in CO is possible.
What are the ‘Components of Controlling’?
There are three major submodules in CO and each of these submodules has
many components as detailed below:
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Figure 74: Controlling Module’s Components
Cost Element Accounting
Cost Controlling
Cost Center Accounting
Internal Orders
Activity-Based Costing
Product Cost Controlling
Profitability Analysis
Profit Center Accounting
Why do You Need ‘Cost Element Accounting’?
‘Cost Element Accounting’ (CO-OM-CEL) helps you to classify
costs/revenues posted to CO. It also provides you the ability to reconcile the
costs between FI and CO. CO-OM-CEL provides the structure for assignment
of CO data in the form of cost/revenue carriers called cost elements or
revenue elements.
Explain ‘Cost Center Accounting.’
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‘Cost Center Accounting’ deals with the difficult task of managing
‘overheads’ within your organization. Since overhead costs are something
that you cannot directly associate with a product or service, which can be
difficult to control, cost center accounting provides you with the necessary
tools to achieve this.
What is ‘Activity-Based Costing’?
‘Activity-Based Costing,’ popularly known as ABC, helps you to view
overhead costs from the point of business processes. The result is you will be
able to optimize costs for the entire business process. As a single business
process, activity-based costing will cut across several cost centers and will
give you an enhanced view of the costs incurred.
What is ‘Product Cost Controlling’ (CO-PC)?
‘Product Cost Controlling’ (CO-PC) deals with estimating the costs to
produce a product/service. CO-PC is divided into two major areas:
i. Cost of materials
ii. Cost of processing
With CO-PC, you can calculate:
a. Cost of goods manufactured (COGM)
b. Cost of goods sold (COGS)
CO-PC is tightly integrated with Production Planning (PP) and Materials
Management (MM), in addition to FI. The functionality helps to:
Calculate Standard Costs of manufactured goods
Calculate the Work-in-Progress (WIP)
Calculate the Variances, at period-end
Finalize settlement of product costs
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Note that CO-PC deals only with production costs as it deals only with the
production.
What is ‘Profitability Analysis’ (CO-PA)?
‘Profitability Analysis’ (CO-PA) helps you determine how profitable
(denoted by the ‘contribution margin’) your market segments are. The
analysis is on the external side of the market. You will be able to define what
segments, such as customer, product, geography, sales organization, etc., of
the market are required for analyzing ‘operating results/profits.’ With multi-
dimensional ‘drill-down’ capability, you have all the flexibility you need for
reporting.
How is ‘Profit Center Accounting’ (EC-PCA) Different from CO-PA?
Unlike CO-PA where the focus is on external market segments’ profitability,
‘Profit Center Accounting’ (EC-PCA) focuses on profitability of internal
areas (profit centers) of the enterprise. Profit center accounting is used to
draw internal balance sheets and profit & loss statements. You may use EC-
PCA in place of business area accounting.
Open table as
spreadsheet Attribute
Profitability
Analysis (CO-PA)
Profit Center
Accounting (EC-PCA)
Focus External market
segments
Internal responsibility
centers
Reporting Any point of time During period-end
Margin reporting Profit & Loss statements
Accounting Cost of sales Period-based
Both CO-PA and EC-PCA serve different purposes, and are not mutually
exclusive. You may need them both in your organization.
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Explain ‘Integration of CO’ with its Components and Other SAP
Modules.
The CO module is integrated with FI, AA, SD, MM, PP, and HR:
FI is the main source of data for CO. All expenses, posted in FI, flow to
CO through the ‘primary cost elements’ to the appropriate ‘cost centers.’
Similarly, postings in Asset Accounting (such as depreciations) are also
passed on to CO.
Revenue postings in FI would result in postings in CO-PA and also in
EC-PCA.
The SD, MM, and PP modules have many integration points in CO.
Goods issue (GI) to a controlling object or goods receipt (GR) from a
‘production order’ are some examples of integration. These modules are
tightly integrated as consumption activities, cost of goods issued,
overhead charges, material costs, etc., which are passed on to production
objects such as PP production order or sales order. The WIP (Work-in-
Progress) and the variances, at period ends, are settled to CO-PA, CO-
PCA, and also to FI. Revenues are directly posted when you generate
billing documents in SD, if the sales order is a cost object item.
The HR module generates various types of costs to be posted in CO.
Planned HR costs can also be passed on for CO planning.
The following table illustrates how the various components of CO are integrated:
CO-
OM
Overhead Cost Controlling
External costs can be posted to cost centers/internal orders from
other SAP modules.
Cost centers can then allocate costs to other cost centers, orders,
and business processes in Activity-Based Costing (ABC).
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Internal orders can settle costs to cost centers, other internal
orders, and to business processes in ABC.
ABC, in turn, can pass on costs to cost centers and orders.
CO-
PC
Product Cost Controlling
Direct postings from FI to cost objects (such as production orders).
Costs from cost centers can be posted to the production orders as
overhead cost allocation.
Costs settled from internal orders can be passed on to production
orders.
CO-
PA
Statistical cost postings from all CO components
Cost assessments from cost centers/ABC.
Costs settled from internal orders.
Production variances from CO-PC.
Open table as spreadsheet
What is a ‘Cost Object’?
A ‘Cost Object,’ also known as a CO Account Assignment Object, in SAP
denotes a unit to which you can assign objects. It is something like a
repository in which you collect costs, and, if necessary, move the costs from
one object to another. All the components of CO have their own cost objects
such as cost centers, internal orders, etc.
The cost objects decide the nature of postings as to whether they are real
postings or statistical postings. All the objects that are identified as statistical
postings are not considered cost objects (for example, profit centers).
Differentiate Between ‘Real’ and ‘Statistical Postings’ in CO.
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The CO account assignment objects decide the type of postings allowed.
They can be real or statistical postings.
‘Real Postings’ allow you to further allocate/settle those costs to any other
cost object in CO, either as ‘senders’ or as ‘receivers.’ The objects that are
allowed to have real postings include:
Cost Centers
Internal Orders (Real)
Projects (Real)
Networks
Profitability Segments
PP—Production Orders (make-to-order)
‘Statistical Postings,’ on the other hand, are only for information
purposes. You will not be able to further allocate/settle these statistical costs
to other cost objects. Examples of such objects include:
Statistical (Internal) Orders
Statistical Projects
Profit Centers
How do You Define ‘Number Ranges’ in CO?
You will be required to define, for each of the controlling areas, the ‘Number
Ranges’ for all transactions that will generate documents in CO. Once done
for a controlling area, you may copy from one controlling area to other
controlling areas when you have more than one such area.
To avoid too many documents, SAP recommends grouping multiple but
similar transactions, and then assigning number ranges to this group.
Further, you may create different number ranges for plan and actual data. As
in FI, the number ranges can be internal or external. The document
number ranges in CO are independent of fiscal years.
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How Does ‘Master Data’ Differ from ‘Transaction Data’ in CO?
The ‘Master Data’ remain unchanged over a long period, whereas
‘Transaction Data’ are short-term. The transaction data are assigned to
the master data.
Though you normally create the master data from transactions, note that
you will be able to create these records from the configuration side as well.
When you need to create a large number of master data, you may use the
‘collective processing’ option to create related master records in one step.
SAP puts master data in ‘groups’ for easy maintenance.
Figure 77: Master and Transaction Data in CO
In the case of master data of cost center/cost elements/activity types, once
they are created, you will not be able to change the date. SAP calls this
feature the ‘time dependency’ of master data. If necessary, you can
extend the ‘time’ by creating a new one and attaching it to the existing
objects. In the case of resources, the master data are time-dependent and
the system will allow you to delete these objects. Statistical Key Figures
(SKF) are not time-dependent; once defined they are available in the system
forever.
Cost Element Accounting
What is a ‘Cost Element’?
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‘Cost Elements’ represent the origin of costs. There are two types of cost
elements:
Primary Cost Elements
Secondary Cost Elements
What is a ‘Primary Cost Element’?
‘Primary Cost Elements’ represent the consumption of production factors
such as raw materials, human resources, utilities, etc. Primary cost elements
have their corresponding GL accounts in FI. All the expense/revenue
accounts in FI correspond to the primary cost elements in CO. Before you can
create the primary cost elements in CO, you first need to create them in FI as
GL accounts.
Note that SAP treats revenue elements also as primary cost elements in
CO processing. The only difference is that all the revenue elements are
identified with a negative sign while posting in CO. The revenue elements
correspond to the revenue accounts in FI and they fall under the cost
element category, category 01/11.
What is a ‘Secondary Cost Element’?
‘Secondary Cost Elements’ represent the consumption of production
factors provided internally by the enterprise itself, and are present only in
the CO. They are actually like cost carriers, and are used in allocations and
settlements in CO. While creating these elements, you need to mention the
cost element category, which can be any of the following:
Category 21, used in internal settlements
Category 42, used in assessments
Category 43, used in internal activity allocation
What is a ‘Cost Element Category’?
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All the cost elements need to be assigned to a ‘Cost Element Category,’ to
determine the transactions for which you can use the cost elements.
Example:
Category 01, known as the ‘general primary cost elements,’ is
used in standard primary postings from FI or MM into CO.
Category 22 is used to settle order/project costs, or cost object costs to
objects outside of CO (such as assets, materials, GL accounts, etc.).
How do you Automatically Create ‘Cost Elements’?
You will be able to create ‘cost elements’ automatically by specifying the
cost element, the cost element interval, and the cost element category for
the cost elements. All these are achieved by creating default settings. The
creation of cost elements is done in the background.
The primary cost elements can be created only when you have the
corresponding GL accounts in the chart of accounts of the Company Code.
Even though the GL account names are used as the names of the primary
cost elements thus created by the system, you have the option of changing
these names in CO. All the secondary cost elements are created in CO;
the name of these cost elements comes from the cost element category.
Cost Center Accounting
Define ‘Cost Center Accounting (CO-OM-CCA).’
‘Cost Center Accounting (CO-OM-CCA)’ helps you to track where costs
are incurred in your enterprise. All the costs, such as salary and wages, rent,
water charges, etc., incurred are either assigned or posted to a cost center.
What is a ‘Cost Center’?
A ‘Cost Center’ is an organizational element within a controlling area.
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You may define cost centers according to your specific needs; the most
common approach is to define a cost center for each of the bottom-most
organizational units that are supposed to manage their costs. So, typical cost
centers could be canteen, telephone, power, human resources, production,
etc.
There are other ways of designing cost centers; you may create cost centers
representing geographical requirements or responsibility areas or
activities/services produced, etc.
After defining individual cost centers, you will assign each one of the cost
centers to one of the cost center categories. All cost centers of a
controlling area are assigned to a standard hierarchy.
What is a ‘Cost Center Category’?
A ‘Cost Center Category’ is an indicator in the cost center master record
that identifies what kind of activities a particular cost center performs. SAP
comes delivered with default categories such as administration, production,
logistics, marketing, development, management, etc. If necessary, as in
other cases, you may create your own categories. The categorization is
useful for assigning certain standard characteristics to a group of cost
centers performing similar activities.
SAP also allows you to store special indicators (such as lock indicators)
for each of the cost center categories. These special indicators serve as
defaults when you create a new cost center.
What is a ‘Standard Hierarchy?
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A tree-like hierarchy structure grouping all the cost centers (of all the
Company Codes belonging to a single controlling area) so defined is known
as the ‘Standard Hierarchy’ in CO. This is the SAP method of grouping all
the cost centers in a controlling area, which helps in analyzing the cost
summary at the end of the nodes of the hierarchy (cost center or cost center
groups or at the top level). A cost center can be attached to any number of
cost center groups, but you cannot assign the same cost center more than
once within a cost center group.
The standard hierarchy helps in easy maintenance of the cost centers/cost
center groups for creation of new ones or changing existing ones. It supports
drag-drop functionality.
You may use alternate hierarchies to group cost centers according to your
internal reporting requirements. You can have any number of alternate
hierarchies but it is mandatory that you have one standard hierarchy. The
alternate hierarchy is also known as the master data group.
Explain Posting of Costs to ‘Cost Centers.’
When you create accounting transitions in FI/FI-AA/MM, you typically post to
one or more GL accounts. While doing so, provided you have already
configured in such a way, you also require the user to input the cost center
for that transaction, so that when the transaction is posted the values (costs)
flow not only to the GL but also to CO to the appropriate cost center. The
system will create two posting documents: one for FI and another for CO.
Additionally, you will also be able to post non-financial information such as
direct labor hours from HR or PP modules to cost centers in CO.
What is an ‘Activity Type’?
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‘Activity Type’ helps you do define the service/action (for example, human
labor, machine labor, repair hours, etc.) performed or provided by a cost
center. It forms the ‘basis’ for allocating costs to other cost centers or
internal orders, etc. You may assign an activity type to an operation so that
they are reflected in PP; a CO document is created with the costs of the
operation allocated from the cost center that produced the operation to a
production order, when the operation is completed in PP.
You may group activity types into activity type groups for easy
maintenance.
You need to arrive at the activity price, which needs to be attached to that
particular activity type for planning or recording the actual. The activity price
is calculated by dividing the total costs by the total planned/actual activity
quantity (hours, units, etc.).
It is not necessary that all the cost centers have activity types associated
with them. If there is no output from a cost center, then there will be no
activity type for that cost center.
Where do You Assign Activity Type in Cost Centers?
There is no direct assignment. You plan the output for a cost center first by
using Transaction KP26. Then, plan the value of that cost center with the
budget for a period in Transaction KP06. ‘Planned Activity
expenditure’/‘Planned Activity Quantity’ gives the ‘planned activity rate,’
which you can use to valuate your activity confirmations in manufacturing
orders. You can also define your activity prices on your own, but you have to
run the ‘price revaluation’ if you want to revaluate your actual activity prices.
Mr.K.Santhosh KumarSAP FICO Consultant
What is a ‘Resource’ in CO?
‘Resources’ are goods/services, consumed by CO objects such as cost
center/internal order/WBS element, which are supplied (internally or
externally) to an organization in order to produce business activities. The
resources are used only in planning and not for tracking the actual.
There are three types of resources:
Type B (used in base planning object)
Type M (refers to a material)
Type R (exists only in CO-OM)
What is a ‘Statistical Key Figure’ (SKF)?
The ‘Statistical Key Figure (SKF)’ is used as the basis (tracing factor)
for making allocations (assessments/distributions). They are the
statistical data such as number of employees, area in square meters, etc.
You will make use of a SKF when you are faced with a situation where it is
not possible to use any other conventional method or measure to arrive at
the share of costs to be allocated to cost centers.
Suppose that you are incurring a monthly expense of USD 5,000 in the cost
center cafeteria, the cost of which needs to be allocated to other cost
centers. You can achieve this by the SKF. Imagine that you want this to be
allocated based on the ‘number of employees’ working in each of the other
cost centers such as administrative office (50 employees) and the factory
(200 employees). You will now use the number of employees as the SKF for
allocating the costs. The following illustration helps you to understand how
SKF is used:
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In SKF allocation, you have the flexibility of using two different SKF
Categories; namely, Total value or Fixed value. You will use fixed values
in situations where the SKF does not change very often, as in the case of the
number of employees, area, etc. You will use total values in situations where
the value is expected to change every now and then, as in the case of power
use or water consumption and the like.
Explain the ‘Planning’ steps in CO-OM-CCA.
The three steps involved in planning in cost center accounting include:
Configuration required for planning
o Configure a Plan Version
o Create or Copy Plan Layouts
o Create Plan Profile
o Insert Plan Layouts into Plan Profile
Inputting the planned data
Completing the planning activity
What is a ‘Plan Version’?
A ‘Plan Version’ is a collection of planning data. The version controls
whether the user will maintain plan data or actual data or both. You may
create as many versions as you need, though SAP provides you with the
necessary versions in the standard system.
Each version has information stored in the system per fiscal year period. The
version ‘000’ is automatically created for a period horizon of five years, and
is normally the final version as this allows for storing actual information as
well. You will be using the data in version ‘000' for all the planned activity
price calculation. Once planning is completed, you need to ‘lock’ that version
so that no one will be able to modify the plan data.
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What is ‘Integrated Planning’ in CO-OM-CCA?
‘Integrated Planning’ helps you to transfer data from other SAP modules
such as PP, HR, FI-AA, etc. If you have planned data in these modules and
just transfer these into CO, without making any changes, then you do not
need plan again in cost center accounting. Before using integrated planning,
you need to activate the integration in the planning menu.
Note that integrated planning is possible only when there has been no data
planned on that version before activating the integrated planning.
Explain ‘Plan Layout.’
A ‘Plan Layout’ is nothing but a data entry screen or template that you use
to input plan data.
In most situations, it would be more than sufficient to use SAP supplied
planning layouts; however, you may create your own by copying one of the
existing layouts and altering it with the help of report painter. While
creating a custom layout, note that you have the flexibility to create up to
nine lead columns (giving the details the nature of the data associated with
the value columns), and any number of value columns (plan data such as
amount, unit, etc., corresponding to the lead column).
You also have the option of using MS-Excel spreadsheets as the data input
screen in lieu of the SAP plan layouts; but to achieve this you need to
activate the ‘integrating with Excel option’ while assigning the layout(s) to a
planner profile in IMG.
You need to define a plan layout for each of the three planning areas in CO,
namely:
i. Primary Cost and Activity Inputs
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ii. Activity Output/Prices
iii. Statistical Key Figures
Explain a ‘Plan Profile.’
A ‘Plan Profile’ (or Planning Profile) helps in controlling the whole process
of planning by logically grouping the various plan layouts together. It
determines the timeline for planning. You can have more than one planning
layout per plan profile.
Before you actually start inputting the data, you need to set the plan profile
so that the system knows what layout needs to be used for the planning
exercise.
How do You Copy ‘Plan Data’ from one period to another?
SAP allows you to copy planning data, created manually earlier, from one
fiscal year to the other or from one period to a different period within the
same fiscal year. You have the option of copying existing plan data to a
future period as new plan data or copying actual data from one period to
another as plan data.
What is the recommended Planning Sequence, in CO?
SAP recommends three steps in the planning. In all three steps, the planning
can be carried out manually or automatically. You may use assessment,
distribution, and indirect activity allocation or inputted costs for planning.
You can also have centralized planning (cost element planning for all the
cost centers) and decentralized planning (planning for individual cost
centers) in your organization.
What are the two options for entering Plan Data?
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SAP provides you with a choice of two options to enter your plan data. You
may use Form-based entry or Free entry.
In form-based entry, all you need to do is fill in the plan data in the rows
corresponding to the characteristic values (cost centers, cost element, etc.)
displayed on the screen. But, in free entry, you have the freedom of
inputting even the characteristic values.
What are ‘Distribution Keys’?
The SAP system uses ‘Distribution Keys’ to distribute planned values
across various periods. With the standard distribution keys supplied by SAP,
you will be able to achieve the type of distribution you need:
DK1 (equal distribution)
DK2 (distribution as done earlier)
DK5 (copy values to period where there is no value)
For example, if you have a planned annual value of 12,000, by using DK1
you will be able to distribute 1,000 each as the monthly values. If you had
plan values for last year which were something like 1,000 for January to June,
500 for July, 1,500 for August, and 1,000 each for September to December,
then by using DK2, you will be able to copy the same amounts to the next
fiscal year. DK5 will copy values to future periods only if there are no values
already available for those periods.
Differentiate ‘Activity-Dependent ‘and ‘Activity-Independent’ Costs.
As you might be aware of already, there are two types of costs; namely,
variable costs and fixed costs.
Variable Costs, such as material costs, factory labor, etc., are always
dependent on an activity, and will vary depending on the activity. The higher
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the activity the more will be the expenditure towards variable costs. In short,
these costs are directly proportional to the level of activity. In SAP CO, these
costs are known as ‘Activity-Dependent Costs.’
In contrast to the variable costs, ‘Activity-Independent Costs’ or fixed
costs do not usually vary with the level of activity. And you may need to
incur these costs irrespective of whether there is an activity. Costs such as
costs towards security, insurance premiums, etc., fall under the category of
fixed costs.
What is a ‘Mixed Cost’?
There are instances where you will come across a costing situation where the
costs cannot be strictly segregated into either fixed or variable costs. These
costs are known as semi-fixed costs or semi-variable costs or mixed
costs, because a portion of the total costs is fixed and the remaining portion
is a variable cost.
The classic example is the charges for electricity in a production
environment, where there is a basic minimum charge payable to the
electricity provider (or towards heating requirements of the buildings) which
remains fixed whether there is some production activity or not. When there
is production, you will use more electricity, which varies with the level of
production. Explain ‘Manual Primary Cost Planning.’
‘Manual Primary Cost Planning’ is used to plan for costs associated with
the external procurement of goods and services. You will plan both fixed and
variable costs, and also mixed costs, if necessary. You will plan costs such as
salaries, wages, etc., as activity-dependent costs; the costs towards security,
etc., will be planned as activity-independent costs.
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You need to note that planning fixed primary costs is not vastly different
from that of planning for variable primary costs. When you plan for the
variable primary costs you need to mention the activity type associated with
that. You may further break down this cost into fixed and variable
proportions. The ‘fixed primary costs’ or ‘activity-independent primary costs’
are planned using the primary cost elements on various cost centers, based
on the activity performed on a particular cost center.
You may use any of the following SAP supplied planning layouts:
1–101— Activity-independent or activity-dependent primary costs
1–103— Activity-independent costs
1–152— Activity-independent costs (on a quarterly basis)
1–153— Cost-element planning (two versions simultaneously)
1–154— Cost-element planning (previous year’s actual displayed in
the lead column)
1–156— Central planning (Cost element planning from Cost center
perspective)
1.15.4 331. Explain ‘Automatic Primary Cost Planning.’
SAP provides you with two ways of handling Primary Costs Planning;
namely:
Inputted Costs Calculation
Distribution
Inputted Costs Calculation is used to smooth one-time costs (bonus,
incentives, etc.) incurred by spreading them over a period of time though it
is posted on the FI side at the end of the year. You again have two methods
of processing these costs: (i) when there is no corresponding costs
equivalent on the FI side such as the inputted family labor or inputted rent,
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etc., and (ii) when there is a corresponding cost equivalent on the FI side
such as festival bonus, etc.
Distribution helps in planning primary costs from one cost center to the
other. The cost center from where the costs are distributed is known as the
sender (or pooled cost center or clearing cost center) and the other
cost centers to which the costs are distributed or where the costs are
received are known as receivers.
Note that you will be able to distribute planned/actual primary costs only.
Also note that the pooled cost center does not incur any of these costs but
acts only as the ‘clearing center’ for distribution to other cost centers. During
the process, you will use the SKF or the regular percentage method as the
distribution rule for achieving the distribution. The distribution cycle
helps to carry out the whole planning exercise.
Explain ‘Manual Secondary Cost Planning.’
‘Manual Secondary Cost Planning’ is required when you need to plan
consumption quantities of a sender cost center’s planned activity from the
point of view of the receiving cost center. The activity inputs may be planned
either as the activity-dependent costs (variable) or as activity-independent
costs (fixed).
The ‘activity-dependent primary cost planning’ is used only when you need
the services such as repair hours on a specified activity type. On the other
hand, you will use ‘activity-independent primary cost planning’ when you
need services such as maintenance hours, which are not restricted to a
particular activity.
The system uses the ‘planned calculated activity price’ for posting the
secondary cost. It is possible to carry out ‘manual secondary cost planning’
for activity types categorized as Category-1 (manual entry/manual
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allocation). Note that it is important that you perform reconciliation of
planned consumption of an activity at the receiver cost center to the volume
planned at the sender’s level; otherwise, you will get a warning message
when the system calculates the activity price.
Explain ‘Assessment’ in Secondary Cost Planning.
‘Assessment’ is one of the methods used in ‘automatic planning of
secondary costs’ in cost center accounting. You will typically use this method
when you need to allocate costs from one cost center to other cost centers.
The original costs, even if they are primary, from the cost center are grouped
and reclassified as secondary while allocating the same to other cost centers
(imagine that you are collecting primary costs such as postage, telephone,
courier expenses, fax charges, etc., into a cost center called 1000, now
group these costs for assessment using a secondary cost element to receiver
cost centers: 2000 and 3000).
You need to define an assessment rule (either ‘percentage’ or ‘SKFs’ or
‘fixed amounts’) for affecting assessment. You would have now noticed that
this is similar to the distribution used in ‘primary cost planning.’
So, why do you need an assessment? Assessment is required when you need
to allocate secondary costs, and when you do not need the details you would
otherwise get from distribution.
What is an ‘Allocation Structure’?
You need to define or use a secondary cost element, called the ‘assessment
cost element,’ while you carry out the ‘assessment’ in ‘automatic secondary
cost planning.’ Instead of defining individual assessment elements (for a
group of primary cost elements) in individual segments, every now and then,
you may define various assessment elements in an ‘Allocation Structure,’
and use them repeatedly.
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Explain ‘Segments’ and ‘Cycles.’
A ‘Segment’ is one processing unit required to complete an automated
allocation of distribution or assessment or reposting of planned/actual costs
in controlling in SAP. A segment is made up of (a) allocation characteristics—
to identify the sender/receiver, (b) values of the sender—plan/actual, type of
costs to be allocated, and (c) values of the receiver—the basis for allocation,
for example, the tracing factor such as SKF, percentages, etc.
When you combine multiple segments into a single process, then you call
that the ‘Cycle.’ A Cycle helps you to process various segments in a chain-
like fashion one after another. A Cycle consists of header data (valid for all
Segments in a Cycle) and one or more Segments, with summarized rules and
settings enabling allocation. The Segments within a ‘cycle’ can be processed
iteratively (one segment waits for the results of another) or non-iteratively
(all the segments are processed independently) or cumulatively (to take care
of variations in receiver Tracing Factors or sender amounts).
Typically, when you start the cycles you will start them in a ‘test’ mode to
see the allocations before actual postings. Technically, you can run the
cycles in ‘production’ mode at any point of time, but the system will carry
out the allocation postings only on the first day of a period. The utility of the
cycle lies in the fact that you can run these period after period.
What is ‘Iterative Processing’ of Cycles?
‘Iterative Processing’ is nothing but the repetitive processing of
sender/receiver relationships until the sender’s entire cost is transferred to
the receiver(s). During iterative processing, you will not be able to use ‘fixed
amounts’ as the ‘sender rules’; you will also not be able to define a
percentage to remain on the sender. You will be able to use both plan and
actual data while using the iteration.. What is ‘Splitting’? Explain the
‘Splitting Structure.’
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‘Splitting’ is a process used to assign ‘activity-independent’ plans/actual
costs, both primary and secondary, of a cost center to the individual activity
types within that cost center. But the important requirement is that you will
use this when there is no account assignment to the activity types.
You may either use the Splitting rules or the Equivalence number to
achieve this. When you split the costs from a cost center, the cost center
temporarily becomes more than one cost center for the purpose of allocation
but again becomes a single cost center when posting happens in the
subsequent period.
If you need to assign different cost elements or cost element groups to
activities in more than one way, then you need to define a ‘Splitting
Structure’ containing ‘splitting rules’ to determine the criteria of splitting
‘activity-independent’ costs to an activity type. If you have created the
splitting structure in customizing and assigned the same to a cost center,
then the system uses the splitting structure for cost apportioning; otherwise,
it will use the equivalence number.
The ‘splitting rules’ determine the amount or the proportion of costs to be
allocated to various activity types of a cost center and is based on the
consumption of these activity types. The costs thus allocated may be a fixed
sum, or a percentage, or it can even be based on the tracing factors or SKFs.
The ‘equivalence number’ is a basic method for splitting the costs when
you manually plan for each of the activity types. By this, you will plan all
activity-independent costs according to the equivalence numbers (the
default is 1).
What is an ‘Activity Price Calculation’?
You will be completing the planning process only when you perform the
‘Activity Price Calculation,’ which is based on planned activities and
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costs. By doing this you are valuating the planned secondary costs at
receiving cost centers. If you do not want to use activity price thus
calculated, you are free to use the political price for the activity type.
As you are aware, the activity price is used for planned/actual allocation and
is determined by using either the political price or the system-calculated
activity price.
How does the System Calculate the ‘Activity Price’?
The system calculates the ‘Activity Price,’ for each activity type and cost
center, by following the underlying rule:
Note that the system will continue to calculate the activity price even if you
have set the price indicator of an activity type to the ‘political price.’
You need to input the activity quantity, sender/receiver cost center and date
to enable the system to allocate the costs; the system will automatically
determine the allocation cost element and the activity price (either the
planned price or the actual price). The system multiplies the activity
consumed with that of the activity price to arrive at the allocated cost.
AS – IS Document
Mr.K.Santhosh KumarSAP FICO Consultant
(An ISO 9001:2000 Certified Company)
Revision History
Revisio
n
Numbe
r
Revision
date
Summary of Changes Updated
by
Changes
marked
Rev 1.0 18/09/2007 First Release for General
Review
N
Mr.K.Santhosh KumarSAP FICO Consultant
Reviewers: This document has been reviewed by
Name Title Signature
Mr. T Ramakrishna Accounts Manager - Venkat
Mr. M Rajeswara Rao Project Manager -
Approvals: This document requires the following approvals
Name/Signature Title Signature
Mr. P Srinivas Rao CEO - Venkat
Mr. S H Premanand Vice President (O) - Venkat
Distribution: This document has been distributed to
Name/Signature Title Signature
Mr.K.Santhosh KumarSAP FICO Consultant
Table Of Contents
1 INTRODUCTION................................................................4
1.1 Introduction................................................................4
1.2 Scope of the document................................................4
1.3 Terms and Definitions..................................................5
1.4 References..................................................................5
2 FINANCE FUNCTION OVERVIEW.........................................6
2.1 As Is Process:..............................................................6
3 GENERAL LEDGER BUSINESS PROCESS.............................10
3.1 As Is Process:............................................................10
4 ACCOUNTS RECEIVABLE BUSINESS PROCESS....................13
4.1 As Is Process:............................................................13
5 ACCOUNTS PAYABLE BUSINESS PROCESS........................16
5.1 As Is Process:............................................................16
6 ASSET MANAGEMENT BUSINESS PROCESS.......................19
6.1 As Is Process:............................................................19
7 REPORTING....................................................................23
7.1 As Is Process:............................................................23
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8 REFERENCE TO FIGURES.................................................24
9 SCOPE FOR IMPROVEMENT..............................................25
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2 1.....................Introduction
1.1 Introduction
Finance is a key area which helps in generating external reports,
according to the laws of the land, from the day-to-day financial activities
of Venkat and also takes care of judicious and cost effective accessibility
of Funds.
Costing (Controlling in SAP) is a key area for generating various MIS
internal reports from the day-to-day activities of the company. The data
from various modules is analyzed, assessed and redistributed using
statistical reasoning to conclude the cost of each
process/product/activity.
The primary goal of this document is to map the crucial business
processes in the Financial Business process, in the state as it is being
currently practised inside Venkat. Understanding of the key business
processes as they exist inside Venkat is a key pre-requisite for
formulating any new business process changes. The documented current
practices will serve as a benchmark and measure, against whom the
efficacy of new business processes shall be measured. In the context of
the above goal, for ‘As Is Business Process Mapping’ the objectives are:
1 Establish the overview of the currently established business processes
2 Understand the limitations of the current business processes
3 Understand the areas of improvement in current business processes
4 Understand the minimum requirements of the current business processes
which must be met by a new re-design.
5 Establish the current processes as a benchmark against which new
processes can be evaluated
1.2 Scope of the document
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Following items belong to the scope of the document
1 Financial Business Processes: The document includes all the processes
which deal with Accounting Process in Venkat. This includes General
Expenses, Receipts, Payments, Assets Management as well as Closing
of Books of Accounts
2 Corporate Office: The DRUCK Project Team had access to Corporate
Office of Venkat located in Jubilee Hills, Hyderabad. Consequently the
processes mapped out belong to this Office with various plants
(Bollaram & Kondapur) / Departments / Business Units
Following items do not belong to the scope of the document
1 Level of details: The business processes are documented at
sufficient details so as to meet the objectives of the document
(see above).
2 Sites: The document does not cover the Kolkata and Tirupati
manufacturing locations of Venkat
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1.3 Terms and Definitions
FI/
CO
Finance and
Controlling
Which takes care of all Financial Business
Processes, Internal and External Reporting
as well as decision making purpose
GLGeneral
Expenses
Process of General Expenses in line with
Accounting Principles
APAccounts
PayablesProcess of Payments to the Suppliers
ARAccounts
ReceivablesProcess of Receipts from the Customers
AAAsset
Accounting
Systematic Asset Management in
Accounting point of view
1.4 References
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1 Annual report (2005-06)
2 Annual report (2006-07)
3 Venkat Organogram
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Finance Function Overview
2.1 As Is Process
3 Organisation Structure: The Finance Dept. comprised of Finance
Manager, Accounts Officer & Accounts Executive. The Finance
Manager reports to the Top Management. Finance Manager is
assisted by Accounts Officers who looks after sales invoices,
stock journal entries, MIS and employee salaries. Accounts
Executive who looks after accounting of purchases, journal
entries and statutory compliances
4 Functions:
o The Finance Dept. deals with Accounting Process in Venkat.
This includes accounting of General Expenses, Receipts,
Payments, Asset Management, as well as Closing the Books
of Accounts
o Financial activities of Plants (Bollaram & Kondapur) /
Departments / Business Units are dealt in Corporate Office of
Venkat located at Jubilee Hills, Hyderabad
5 Accounting Package: The Finance Dept. performs the Accounting
Process in Tally Accounting Package. (Version:5.4)
6 Data Synchronization: Stock related quantity entries are made by
Stores Dept./Plants in tally accounting software in respect of
stocks received/issued. Currently data synchronization in tally
accounting software is not taking place between Plants and
Finance Dept. of Venkat. Periodically Finance Dept. receives the
hard copy of quantitative stock data, re-enters accounting
information into tally accounting software
7 Documents Flow: The financial documents which are forwarded
by the various Departments / Business Units will be processed in
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Finance Dept. Such documents will be forwarded to the Vice-
Chairman / Chairman for approval. Subsequently the documents
will be accounted in the books of accounts
8 Venkat has achieved a turnover of Rs. 30 Crores during the
financial year 2006-07. Venkat has ambitious growth plans in
near future
9 Banks & Mode of Payment: Venkat has got strategic banking
alliance with Canara Bank and HDFC Bank (Electronic-Bank
account). Payments towards expenses are made by Cheques and
Cash. Currently no electronic payments are involved, but
electronic deposits from various parties are accepted
10 Funds Management: Funds Management is being monitored by
the Finance Dept. at Corporate Office on daily basis by
performing the Bank Reconciliation in Accounting package
11 The Finance Dept is responsible to serve working capital
requirements & general expenses of Venkat with prior approval
of the Chairman
12 Imprest Cash: To facilitate regular expenses at plant and
department level, Venkat has the system of allotting imprest
cash (petty cash) to meet the miscellaneous expenditure.
Currently, in books of accounts imprest cash is maintained in the
name of person responsible for expenses
13 Sales Process: Sales process takes place through Centralised
Billing at Registered Office located at Bollaram, Hyderabad
14 Scrap Sale: There is no concept of scrap sale in Venkat. Since
Venkat deals with secure prints and any scrap arises should be
burnt/destroyed as per guidelines
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15 Customers: Finance Dept. is responsible for defining the Terms of
Payment with Customers. For accounting purposes Customers
are grouped based on business lines such as Sundry Debtors-
Banks, IPOs, Lotteries, and others. Recently Venkat has served
the external markets outside India with considerable amount of
export orders
16 Vendors: Finance Dept. is responsible for defining the Terms of
Payment with Vendors. For accounting purposes Vendors are
grouped into Sundry Creditors-Capital Goods, Chemicals,
Contractors, Inks, Packing materials, Paper, Services, Stores &
Others. Venkat have their band of vendors to import various
forms of material, inks, chemicals & spare parts for machinery
17 Production Process: Venkat possess ISO 9001:2000 Certification
confirming the Companies commitment to the cause of Quality
Management
o Materials are currently procured centrally for all plants by
Registered Office located at Bollaram, Hyderabad
o Design & Development process currently taking place at
Bollaram Plant, Hyderabad
o Labour force has blend of employees who are on payrolls of
Venkat and Contract Labourers (around 200 regular
employees & 150-300 contract labourers)
18 Approvals & Authorisations: Approval of Quotations, Invoices and
Expenses for acquiring Capital Assets are vested with Vice-
Chairman & Chairman. Such requisitions are from Vendors,
Customers & Strategic Business Units respectively
19 Asset Management: Venkat is equipped with state of art
technology for their operations. The asset base includes Plants,
Machinery (including imported) and other facilities. These assets
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are being maintained at cost less depreciation value. Finance
Dept. is adopting straight-line method of depreciation for
Accounting purposes
20 Internal Reporting: Finance Dept. prepares reports like Monthly
MIS, Funds Availability Statement, Bank Reconciliation
Statements, Age Analysis Statements of Customers that provide
useful information to support management decision process
21 Budgeting: Currently Venkat is not following Budgeting process
for their operations.
22 External Reporting: Finance Dept. at Venkat has an obligation to
prepare and submit the Financial Reports annually for the
compliance of statutory obligations
23 Statutory Payments: Finance Dept. process the various Statutory
obligations (like Income Tax, TDS, FBT, ESI, EPF, Sales Tax, VAT)
of Venkat. Such obligations are complied periodically to the
statutory bodies and payments are made accordingly
24 Cost Records: Currently Venkat is not maintaining any sort of
Cost records. Since the Central Government has not prescribed
for the maintenance of cost records under Sec 209 (1)(d) of the
Companies Act, 1956 for any of the products of the Venkat.
Central Excise Tax is not applicable to Venkat
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3 3 General Ledger Business
Process
3.1 As Is Process:
25 Functions: In Venkat, General Ledger Process involves the
Finance Dept. which deals with accounting and account closure
processes
26 Method of Accounting: Venkat adopts accounts compiled on
mercantile system of accounting on accrual basis
Revenue Accounting:
27 Revenue Accounting: Venkat generates operational revenues
through printing process, sale of paper (computer stationery)
and job works both in the form of indigenous and exports. Venkat
revenues includes other income like interest income
28 Bank Reconciliation Process: Funds Management is being monitored by
the Finance Dept. at Corporate Office on daily basis by performing the
Bank Reconciliation in Accounting package. Payments towards
expenses are made through Cheques and Cash
29 Other Income: In Venkat, ‘other income’ is the consolidated
transportation charges collected from various customers. This revenue
is set-off item against the transport charges paid to transport vendors
Expenses Accounting:
30 Employee related costs: Employee related costs infer Salaries to
employees on Venkat payrolls. HR Department of Venkat
performs the payroll process and forwards the relevant
documents to Finance Dept.. Subsequently Finance Dept.
verifies the documents in respect of statutory deductions made
towards PF, ESI, recovery of advances, other deductions from
individual employee entitlement. Finance Dept. pass necessary
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journal entries into accounting package and performs funds
availability check. Finance Dept. with prior approval of Chairman
prepares disbursement statement and forwards to bank for
payment transfer to individual employee bank accounts. CEO
Salary, Directors remuneration has been dealt separately from
Employees payroll system
31 Statutory Payments: Statutory payments like ESI, EPF, TDS, Service
tax, Sales tax and Professional tax are processed for payments by
Finance Dept. with prior approval of Chairman
32 Taxes on Sales: Venkat is liable to collect and pay tax on
domestic sales revenue. For Sales tax purposes Venkat sales
revenue has been categorised into:
o Receipts from Printing (Venkat paper used for printing): Taxable
o Job work Receipts (Paper supplied by Customer): Non-Taxable
Sales Tax / Works Contract Tax / VAT is applicable on Category
‘Receipts from Printing’:
1) With in the state: At 4% on Total Invoice Value (Composite
method)
2) Outside the state: on 60% of Invoice Value at
a) Govt Customers : 4%
b) Non-Govt Customers with ‘C’ Form : 3%
c) Non-Govt Customers without ‘C’ Form : 12.5%
33 Tax Deducted at Source (TDS): As per Income Tax Act, 1961 Venkat is liable to
deduct & pay to Income Tax Dept. Current applicable rates are:
Contractors 2.266%
Consultancy fee 11.33%
Mr.K.Santhosh KumarSAP FICO Consultant
Commission 11.33%
Rent (Companies) 22.66%
Rent (Individuals) 16.995%
Interest (Companies) 22.66%
Interest (Individuals) 11.33%
34 Imports: At Venkat currently there is no direct import of raw
materials instead procuring through indigenous agencies, who
are paid in local currency (INR)
35 Loans & Advances: For accounting purposes loans and advances
comprises of advance payments to vendors, advances to employees,
deposits (EMDs, Security Deposits), TDS and interest receivables
36 Recurring Expenses: Periodical payments like rent (based on
agreements), power, insurance & communication (telephone /
mobile / Fax / internet) are met by the Finance Dept with prior
approval of Chairman
37 Guarantees & EMDs: Finance Dept is responsible for tracking of EMDs
(Earnest Money Deposits), Security Deposits and Bank Guarantees on
regular basis and generates age wise reports for internal reporting
38 Discounts allowed: Finance Dept. does not identify discounts
allowed on sales to customers into accounts. Net sales after discount is
directly considered into accounts with prior approval of Chairman. Taxes
are computed on net sales
39 Bad Debts written-off: Finance Dept. writes off debts, which have
been identified as non recoverable by the Management
Mr.K.Santhosh KumarSAP FICO Consultant
40 Interest Expenses: For accounting purposes interest expense
includes interest on term loan, interest on working capital and others
41 Profit/Loss on sale of assets: Finance Dept. arrives the profit/loss on
assets transferred with prior approval of management and considers it into
accounts after necessary accounting treatment with respect to depreciation
charged on the asset
Period end closing:
42 Finance Dept. performs the period end activities in accounting after
meeting the recurring expenditure
43 Provisions: For accounting purpose provisions are provided for
o Salaries and Wages
o Gratuity
o Income tax
o Proposed dividend – if any – (year end process)
o Fringe Benefit Tax
o Provident Fund
o Expenses not booked (rent / electricity / communication cost
etc)
o Prepaid Expenses / Advances
44 Closing Stock: For accounting purpose, closing stocks of raw materials
are valued at cost and finished goods at cost or market value
whichever is lower. Inventory issues are valued at weighted average
method. Consumable Stores are charged off on purchase
45 Operational WIP: Currently operational WIP is not reflected in books of
accounts. But for valuation & reporting purposes valued at estimated
cost
46 Capital WIP: For accounting purpose, capital WIP is valued at estimated
cost with respect to capital projects
Mr.K.Santhosh KumarSAP FICO Consultant
47 Term Loan Interest: KL Hi -Tech has taken two term loans from ICICI
Bank for acquiring Vehicles. Loan repayments are being paid in the
form of Equal Monthly Instalments (which includes principal & interest
elements) through ECS on agreed dates as per loan repayment
schedule. The interest element is identified as per loan repayment
schedule documents and accounted accordingly
48 Reporting:
o Finance Dept. prepares reports like monthly profitability
statements, bank reconciliation statements, customer
balances vendor balances, Total payables periodically to the
Chairman
o Venkat is responsible to submit the Quarterly e-TDS report to
the income tax authorities in a prescribed format
For TDS on salaries (From-24)
For TDS other than salaries (Form-26).
Remittance Challan (for Bank payments)
Form 16 (to Employees)
Form 16A (to Vendors)
Mr.K.Santhosh KumarSAP FICO Consultant
4 4 Accounts Receivable
Business Process
4.1 As Is Process:
49 Organisation Structure: The Finance Dept. comprises of Finance
Manager and assisted by two Finance Executives. The Finance
Manager reports to the Top Management
50 Functions:
o Sales Order: Sales & Marketing department functions from
Regd. Office situated at Bollaram, Mumbai, Chennai and Delhi
prepare Sales Order against the Purchase Orders received
from various customers, with due authorisation from
chairman and forwards it to the Production Manager for
carrying out the production process
o Production, Delivery & Billing: Production orders are
processed only based on the purchase order received from
the customer. After execution of production Order at Plant
level Venkat delivers the stocks to respective customer
destinations. Venkat generates 6 copies of Delivery challans.
Acknowledged Delivery challan is verified before generating
the Sales invoice in Venkat. Sales Billing is carried out
centrally for all sales orders only from Regd. Office at
Bollaram
51 Document Flow: Sales department at Registered office sends one copy
of Invoice along with a copy of delivery challan to the customer as well
as to the Finance Dept. at Jubilee Hills for Accounting Purpose
52 Accounting:
Mr.K.Santhosh KumarSAP FICO Consultant
o Finance Dept. verifies the Sales Invoice in respect of Qty.,
Rate and Terms & Conditions and enters into Accounting
Package
o Venkat has grouped its customers into 4 types namely,
Customers-Bank, Customers-IPO’s, Customers-Lotteries and
Customers-Others for Accounting and reporting purposes
o Venkat also has customers situated outside India. Finance
Dept. is able to generate revenue statements for exports and
domestic business separately for statutory & internal
reporting purposes
o For reporting the revenues, Venkat has grouped sales into 1)
Job works 2) Sale of Paper and 3) Works Contract.
o Finance Dept. updates the customer account balances and
clears customer accounts by entering the incoming payments
from customers using Tally accounting software. Finance
Dept. also updates a manual register for cheque receipts and
simultaneously updates the same into Receipts and
Payments statement in Excel
53 Terms & Conditions: Venkat is maintaining different payment terms
based on the relationship and type of Customers. Terms like Advance
Payments, Payment against delivery and Payment after billing are
normally followed. However for Strategic customers like Govt., Banks,
and Major Industrial Groups, it is not possible to follow strict norms.
Discounts are allowed to certain customers on case-to-case basis
54 Banking & Mode of Payment receipt: Venkat has got strategic banking
alliance with Canara Bank and HDFC Bank (Electronic-Bank account). In
collection process Venkat using the services of some of their business
partners and associates located at various locations. Electronic
deposits from various parties are accepted
Mr.K.Santhosh KumarSAP FICO Consultant
55 Statutory Payments: Venkat has Service Tax Registration for the
purpose of Goods Transport Authority (GTA) and making payment of
service tax (GTA) on periodical basis. Venkat has obligation of paying
Works Contract Tax for the specific work orders executed. Separate
Accounts are being maintained for Works Contract Tax collected and
paid
56 Receivables: Finance Dept. is responsible for defining the terms of
payment with customers. For accounting purposes customers are
grouped based on business lines such as Sundry Debtors-Banks, IPOs,
Lotteries, and others. Finance Dept. with the help of Sales & Marketing
department manages the receivables
57 For delayed payments from customers, sales people visit the
customers in person for collection. Currently there is no system of
written correspondence (dunning) in the process of collections from
the customers
58 Reporting:
o Finance Dept. prepares reports like receivables, age-wise
analysis, customers balances, total receivables periodically
and reports to the Chairman
o Sales and Marketing Executives checks the credit position of
the customers and outstanding balances in consultation with
Finance Dept. and updates to chairman for further order
acceptance from the customers
o For Balance Sheet purpose, Finance Dept. is reporting
outstanding customers in two groups namely 1) Debts
outstanding more than 6 months and Other Debts
(Considered good)
Mr.K.Santhosh KumarSAP FICO Consultant
Finance Dept receives the multiple documents (Sales Invoice, Delivery Challan
from Marketing/Plants
START
ACCOUNTS RECEIVABLE BUSINESS PROCESS @ FINANCE DEPT. (Corporate Office)
Multiple Supporting
Docs
Accounting
Finance Dept confirms the documents received to the
respective Depts on case to case basis
`
Accounting in Tally
Doc Verification
Finance Dept. segregates the invoices & supporting
documents for prudence
Accounting the transaction in Tally Software by
Finance Dept
Finance Dept reconciles Bank & closes the Customer Accounts in Tally Software
`
Accounting in Tally
END
Telecommunication
Finance Dept. receives the Cheques from the
Customers on due date
CHEQUES
Finance Dept update the Funds Statement (in Excel)Funds
Flow Stmt
Finance Dept drops the Cheques into the Bank
$
BANK
Figure 4-1 Accounts Receivable Business Process
Mr.K.Santhosh KumarSAP FICO Consultant
5 5 Accounts Payable Business
Process
5.1 As Is Process:
59 Organisation Structure & Functions: Purchase Department and the
Finance Dept are involved in Accounts Payable Process of Venkat. The
Finance Dept. deals with accounting and payments process
60Documents Flow & Approvals:
o Purchase order is originated by the purchase department for
materials to meet the production requirement. Currently
materials are procured centrally for all plants by purchase
department located at Registered Office, Bollaram,
Hyderabad
o Vendor selection process happens in purchase department
with prior approval of Vice President and the CEO.
Subsequently Purchase Order will be released to the vendor
o Purchase department classifies vendor groups into the
following lines:
Material Vendors Service Vendors
Paper Subcontractor
Inks Transport
Chemicals Service providers
Packing Material
Stores & Others
Capital Goods
Mr.K.Santhosh KumarSAP FICO Consultant
o With reference to Material, Purchase Department verifies and
forwards the vendor invoice along with a copy of purchase
order to Finance Dept. with goods receipt note
o With reference to Services, the Plant In-charge certifies and
forwards the vendor invoice along with a copy of service
order to Finance Dept
61 Terms & Conditions: Based on category of vendors, Venkat is
maintaining different payment terms, terms of advance payments on
case to case basis. Finance Dept. is responsible for defining the Terms
of Payment to Vendors. Payment against delivery and payment after
billing are normally followed
62Accounting:
o Finance Dept. vouches the documents in respect of quantity,
rate and terms & conditions. This is to ensure that vendor
invoice to be in line with purchase/service order for prudence.
o Finance Dept. enter the vendor invoice in Accounting
package.
63Payment Process:
o On periodical basis Finance Dept. performs the age analysis
of vendors. On due date, Finance Dept. forwards the
documents for approval of the V.P./ Chairman for making
payments to vendors
o After approval of the V.P / Chairman, Finance Dept. performs
the Funds availability check through bank reconciliation in
Accounting package
o Finance Dept. prepares cheques for payment and forwards
them for authentication of the Chairman. Currently vendor
payments are made by cheques
Mr.K.Santhosh KumarSAP FICO Consultant
o Finance Dept. delivers the signed cheques to the vendors
o Statutory Payments: Vendor payments in respect of sub
contractors, service providers, transport vendors are made
after deducting TDS
64Reporting:
o Finance Dept. prepares reports like age-wise analysis, vendor
balances, total payables periodically to the Chairman
o For Accounting purpose, vendors groups into Sundry
Creditors-Capital Goods, Chemicals, Contractors, Inks,
Packing materials, Paper, Services, Stores & Others. VENKAT
have their band of vendors to import various forms of
materials, inks, chemicals & spare parts for machinery
Mr.K.Santhosh KumarSAP FICO Consultant
Finance Dept receives the multiple documents from
Purchase Dept./Plants
START
ACCOUNTS PAYABLE BUSINESS PROCESS @ FINANCE DEPT. (Corporate Office)
Multiple Supporting
Docs
Accounting
Finance Dept confirms the documents received to the
respective Depts on case to case basis
Finance Dept. place the supporting documents for approval of V.P/Chairman
Management
`
Accounting in Tally
Finance Dept performs the Funds availability check
Funds Availablity
Check
Doc Verification
Finance Dept. vouches supporting documents for
prudence
Accounting the transaction in Tally Software by
Finance Dept
Finance Dept closes the Accounts in Tally Software
`
Accounting in Tally
END
Telecommunication
Finance Dept releases cheques to Vendors after Chairman’s Authorisation
Accounts Payable
Figure 5-1 Accounts Payable Business Process
Mr.K.Santhosh KumarSAP FICO Consultant
6 6 Asset Management Business
Process
6.1 As Is Process:
65 Over View: Asset Accounting Covers the procurement, maintenance,
retirement and other related transactions involved in the life of Fixed
Assets in Venkat
66 At Venkat for acquiring any asset there must be an approval from top
management. Subsequently purchase department and Finance Dept.
act accordingly
67 As on 31.03.2007 Venkat has gross value of Fixed Assets of Rs.15.57
Crs. and its book value as on the date is Rs.4.42 Cr. Venkat has
categorized its total Fixed Assets broadly into Land, Buildings, Plant &
Machinery, Computers, Furniture & Fixtures, Vehicles, Office
Equipment and Other Assets categories based on their nature
68 Venkat is conducting periodical physical verification of Fixed Assets
located at various Plants, Corporate Office and Marketing Offices.
Venkat has not been practicing the revaluation of assets for any
purpose of accounting and valuation. Venkat is not maintaining the
asset inventory identification no. at individual asset level. Currently
Venkat is not maintaining Asset records based on location
69 Asset Acquisition Process:
o Decision Process: Top Management performs the decision
process for acquiring the Assets for the use of Venkat for the
purpose of expansion and or replacement of existing Assets.
Based on the management decision purchase department
identifies and selects the vendor in consultation with top
management and places order to the vendor for supply of
such Capital Assets
Mr.K.Santhosh KumarSAP FICO Consultant
o Advance Payment for Asset: Purchase Department forwards
the Purchase order copy to Finance Dept., which verifies and
processes the advance payment with prior permission from
Chairman. Finance Dept. maintains the vendor account in
Tally accounting software and updates with the advance
payment made to the vendor after due verification with PO
issued
o Asset Acquisition: Currently Assets are being procured from
Bollaram (Regd.) Office and Suppliers bills and Delivery
Challan is being forwarded to Finance Dept. at Jubilee Hills
Corporate Office. Asset Check will be checked by purchase
department in all respects at Regd. Office once the Asset
comes in. On receipt of bills from Purchase department,
Finance Dept. enters into Tally accounting software with due
verification with PO and Delivery challan and Updates the
Asset Ledger and supplier ledger
o Internal Asset Acquisition: Buildings of Venkat has been
procured internally and capitalized as the construction work
was completed. Currently there is no Capital Work In Process
at Venkat
o Payment/Final Payment Against Asset: As per the terms of
payment with the supplier, Finance Dept. processes the
payment to the vendors for supply of Assets also along with
the other regular vendor payments with prior permission from
chairman. Finance Dept. prepares the cheque and sends it to
the supplier after through check of funds availability and
updates the bank books and vendor ledger. Finance Dept.
also in parallel updates a manual register for cheque
payments and simultaneously updates the same into
Receipts and Payments file in Excel
Mr.K.Santhosh KumarSAP FICO Consultant
70 Depreciation: Venkat is adopting the Straight Line Method of
depreciation on Fixed Assets other than Land for recording the books
of accounts as per the Companies Act. For the purpose of computation
of Income Tax the Written Down Value Method is being followed. At the
end of financial year Finance Dept. enters the values into Tally
accounting Software for the purpose of closing books of accounts and
generating Year end Financial Statements
71 At present Venkat has categorized its Fixed Assets into 9 categories for reporting to
Registrar of Companies (ROC) and Income Tax authorities. The following rates of
Depreciation is applicable as per Indian Companies Act, 1956 and Indian Income Tax
Act,1961.
Sl.
No.Asset Category
Depreciation
% as per
Companies
Act
Depreciation %
as per Income
Tax Act
1 Land 0 0
2 Buildings 3.34 10
3Plant &
Machinery7.07 15
4 Computers 16.21 60
5Furniture &
fixtures6.33 10
6 Vehicles 11.30 15
7 Office Equipment 6.33 15
8Capital WIP-
Builidngs0 0
9 Other Assets 6.33 15
Mr.K.Santhosh KumarSAP FICO Consultant
1 Additional Depreciation: Additional Depreciation of 20% [Total 35%
(15+20)] is allowed as per Income Tax Act on additions to Plant &
Machinery, if the additions during the year are within first 6 months.
Elsewhere Additional Depreciation of 10% is allowed if the additions
during the year are during second 6 months of the financial year
2 Retirement: Asset retirement has been done on the basis of
management decision and due effect for depreciation provision and
accounting of profit/loss on sale is being accounted on asset
retirements
3 Reporting:
o Assets Register: Finance Dept. is separately maintaining
Fixed Assets Register as per Companies Act manually and
updating at the time of asset procurement and retirements
o Schedule VI format: Finance Dept. is responsible for
calculating depreciation, accounting and preparing Schedule
VI format for the purpose of Balance Sheet preparation at the
financial year closure. o
Mr.K.Santhosh KumarSAP FICO Consultant
Finance Dept receives the multiple documents from
Purchase Dept./Plants
START
ASSET MANAGEMENT BUSINESS PROCESS @ FINANCE DEPT. (Corporate Office)
Multiple Supporting
Docs
Accounting
Finance Dept. place the supporting documents for approval of V.P/Chairman
Management
`
Accounting in Tally
Finance Dept performs the Funds availability check Funds
Availablity Check
Doc Verification
Finance Dept. vouches supporting documents for
prudence
Finance Dept enters transaction & Capitalises the
Asset in Tally Software
Finance Dept closes the Accounts in Tally Software
`
Accounting in Tally
END
On Management Approval, Purchase Dept. procures the
Assets (Machinery)
Finance Dept releases cheques to Venors after
Chairman’s Authorisation
Accounts Payable
Figure 6-1 Asset Management Business Process
Mr.K.Santhosh KumarSAP FICO Consultant
7 7 Reporting
7.1 As Is Process:
74 Functions: Finance Dept. is responsible for maintenance of books of
accounts in accounting package and to prepare Financial Statements
75 Preparation of Trial Balance, Preparation of Profit & Loss Account
and Balance Sheet in Tally Accounting Package. Presenting the Profit
& Loss Account and Balance Sheet to V.P. for approval
76 Statutory Compliances: Venkat complies with statutory obligations
in respect of various Statutes. Accordingly prepares reports for the
same
Mr.K.Santhosh KumarSAP FICO Consultant
8 8 Reference to Figures
Figure 4-1 Accounts Receivable Business Process
Figure 5-1 Accounts Payable Business Process
Figure 6-1 Asset Management Business Process
Mr.K.Santhosh KumarSAP FICO Consultant
9 9 Scope for Improvement
77 Seamless integration across all the departments/functions with in
the organization is possible
78 Approval process can be streamlined. Authorization levels can be
defined as per Management hierarchy
79 Various MIS reports can be generated for effective and timely
Management decision making process
80 Costing system can be setup for recording the transactions and
better Cost analysis
81 Through put time required to close the books of accounts will be
reduced
82 Through integration automatic posting from SD at the time of
delivery, billing to Finance & Controlling is possible
83 Facilitation of automatic postings to Finance & Controlling
(Accounts & Costing) from Material Management at the time of
goods receipt, issue to production
84 One point of data entry eliminates duplication of data & chances of
human errors
85 Better control on valuation of raw materials, WIP and finished goods
86 Petty Cash (Cash Journal) accounts can be maintained with ease
87 Documents requiring approval can be parked before postings are
made in the Books of accounts
88 Calculation and posting of Interest on loans/deposits can be
automated
89 Online control of Credits to Customers by maintaining Credit
Control Area
Mr.K.Santhosh KumarSAP FICO Consultant
90 Automatic maintenance of payment terms for customers and
vendors
91 System automates Bank Reconciliation process with ease
92 Better Asset management is possible through online maintenance
of detailed asset register
93 Automatic periodic depreciation postings can be done
94 Asset values and depreciation can be maintained simultaneously to
serve different purposes like Companies Act, Income Tax Act, Cost
Accounting.
95 Real-time report on individual assets can be viewed
FINANCIAL ACCOUNTING
BUSINESS BLUEPRINT
Submitted to
VENKAT GLOBAL SOLUTIONS LIMITED
By
Ltd.
Version 1.0
Mr.K.Santhosh KumarSAP FICO Consultant
DOCUMENT APPROVALS
DOCUMENT INFORMATION
DOCUMENT HISTORY
Mr.K.Santhosh KumarSAP FICO Consultant
TABLE OF CONTENTS
TABLE OF CONTENTS.........................................................................322
1 EXECUTIVE SUMMARY.....................................................................325
1.1 Background...............................................................................325
1.2 Business Blueprint Overview.....................................................325
1.3 Financial Accounting.................................................................327
1.4 Implementation Scope..............................................................330
1.5 Module Integration....................................................................332
2 ORGANISATION STRUCTURE...........................................................334
2.1 Organizational Structures.........................................................334
2.2 Client.........................................................................................334
2.3 Company...................................................................................335
2.4 Credit Control area....................................................................335
2.5 Company Code..........................................................................336
2.6 Chart of Accounts......................................................................337
2.6 Cost Center...............................................................................337
2.7 Profit Center..............................................................................338
3 MASTER DATA.................................................................................339
3.1 General Ledger Master Data.....................................................339
3.2 Vendor Master Data..................................................................341
3.3 Customer Master Data..............................................................343
3.4 Asset Master Data.....................................................................344
4 BUSINESS PROCESSES....................................................................346
4.1 Basic Settings............................................................................346
4.2 General Ledger Accounting.......................................................352
4.3 Accounts Payable......................................................................358
4.4 Bank Accounting.......................................................................371
4.5 Accounts Receivable.................................................................375
4.6 Asset Accounting.......................................................................380
Mr.K.Santhosh KumarSAP FICO Consultant
4.7 Accounting of Taxes..................................................................385
4.8 New GL Accounting...................................................................386
5.0 MODULE INTEGRATION.................................................................391
5.1 Material Purchase accounting & Accounts Payable...................391
5.2 Material Valuation.....................................................................395
5.4 New GL Accounting...................................................................396
6 STANDARD INFORMATION SYSTEM.................................................398
Mr.K.Santhosh KumarSAP FICO Consultant
Mr.K.Santhosh KumarSAP FICO Consultant
10 1 EXECUTIVE SUMMARY
1.1 Background
Introduction:
VENKAT Global Solutions Limited (henceforth referred to as “1000”) has
started its operations in the year 2000 with a vision to be a globally
preferred business partner for the international players for innovative
outsourcing solutions company. Sooner in 2003 1000 has become a major
player in the insurance and telecom sectors. 1000 wishes to implement SAP
as its front end system for the organizational needs of the resource planning
and recording. 1000 has chosen Consulting as its implementing partner for
the Indian and global operations.
The SAP ECC 6.00 is being implemented taking into the global company
operations with the following application areas Modules
FICO Financial Accounting and Controlling
MM Materials Management
Financial Consolidation at the corporate level
1.2 Business Blueprint Overview
This document summarizes the findings of the consulting team and 1000
team with respect to SAP processes to be implemented in 1000.
Following activities were carried out during different phases of the project.
CSBP-Current State Business Process Mapping
GAP Analysis
Stakeholders Workshop
Mr.K.Santhosh KumarSAP FICO Consultant
The information was gathered through above activities carried out during
different phases of projects i.e. reviews of business processes with the
business process owners, business procedures AS-IS at the time of study,
template documentation and relevant reports
The purpose of Business Blueprint document is to prepare to move forward
with the implementation of SAP R/3 system in 1000. At the conclusion of the
blueprint, the consultants will determine the SAP functionality required to
run the 1000 business.
The Blueprint and its associated appendices present a summarized
perspective of all functional business processes that will be implemented. As
such, the Blueprint document will serve – from this point forward the dual
role of both official project scope as well as system acceptance criteria.
The body of this document describes the organizational structure, Master
Data, and R/3 functional process flows to be implemented at 1000.
Generally, requirements that can be met using standard R/3 functionality
through routine configuration tasks are not explicitly documented. However,
certain key requirements are explicitly identified and summarized to
highlight their importance to 1000 and to document the approach proposed
to meet the requirement.
One section of the document summarizes identified gaps between
requirement and the template. The project team has discussed this list with
agreement on the approach going forward. Acceptable approaches may
require:
Additional programming or technical effort
Mr.K.Santhosh KumarSAP FICO Consultant
Recognition and acceptance of procedural changes ("Workarounds")
using standard R/3 Additional resource commitment
Simply the recognition and acceptance of a limitation.
The Blueprint reiterates the R/3 organizational structures that have been
identified and will serve as the basis for the initial configuration activities. No
significant configuration and customization choices have been identified that
will prevent the future implementation of additional capabilities within the
R/3 environment.
The information gathered and documented in the Blueprint is sufficient for
the team to go forward into the Realization phase. However, it is critical that
both the and 1000 team agree on the scope of the project as presented in
this document. Acceptance - by both teams - is required to move the project
into the next phase.
1.3 Financial Accounting
1.3.1 Overview of the Financial Accounting setup
Purpose
The Financial Accounting (FI) module components address the requirements
of the financial accounting department of an organization. It provides the
following features:
Management and representation of accounting data: All business
transactions are recorded with an unbroken audit trail from the
financial statements to the individual documents.
Mr.K.Santhosh KumarSAP FICO Consultant
Open and integrated data flow: Data is available in real time within
Financial Accounting and Controlling area for internal reporting
purposes. Postings made in the sub ledgers always generate a
corresponding posting in the General Ledger.
All accounting-relevant transactions made in Material Management
(MM) are posted real-time to Financial Accounting (FI) by means of
automatic account determination. This data can also be passed on to
Controlling (CO). This ensures that logistical goods movements (such
as goods receipts and goods issues) are exactly reflected in the value-
based updates in accounting.
FINANCIAL ACCOUNTING (FI):
The Financial Accounting (FI) application component fulfils all the external
reporting requirements that must be met by the organization whether
national or international. The SAP FI application provides the following
features, which shall be used in 1000.
General Ledger:
The central task of G/L accounting is to provide a comprehensive picture for
external accounting and accounts. Recording all business transactions
(primary postings as well as settlements from internal accounting) in the R/3
system that is fully integrated with all the other operational areas of 1000
ensures that the accounting data is always complete and accurate.
Accounts Payable:
The Accounts Payable application component records and manages
accounting data for all vendors with respect to 1000 as a whole. It is also an
Mr.K.Santhosh KumarSAP FICO Consultant
integral part of the purchasing system: Deliveries and invoices are managed
according to vendors. The system automatically triggers postings in
response to the operative transactions in MM.
Accounts Receivable:
The Accounts Receivable application component records and manages
accounting data of all customers with respect to 1000. It is also an integral
part of revenue management. All postings in Accounts Receivable are also
recorded directly in the General Ledger. Different G/L accounts are updated
depending on the transactions involved (for example, receivables, down
payments).
Bank Accounting:
This component is used to handle accounting transactions that 1000
processes with its banks. It includes the management of bank master data;
cash management and the creation and processing of incoming and outgoing
payments.
Asset Accounting:
The Asset Accounting component is used for managing and supervising fixed
assets with the SAP R/3 System. In SAP R/3 Financial Accounting, it serves as
a subsidiary ledger to the FI General Ledger, providing detailed information
on transactions involving fixed assets with respect to 1000.
Country Version India
Most of the country-specific functions for India relate to Financials and
Materials Management. The main areas are as follows:
Service Tax.
Withholding tax (also known as tax deducted at source)
The above features are required in 1000 with respect to Excise duty,
Withholding tax (TDS in India).
Mr.K.Santhosh KumarSAP FICO Consultant
Withholding tax (TDS in India):
Country Version India uses the standard functions for calculating and
collecting withholding taxes. However, Withholding Tax come with additional
functions for tax remittance, journal vouchers, creating withholding tax
certificates, and preparing annual returns which will be useful to 1000.
The SAP System handles these using tax jurisdiction codes. 1000 can make
use of this component to define different CST / VAT required with respect to
the states 1000 is dealing with. For VAT input credit the calculation of ratio is
going to be manual process and it will be a formula based. Based on the
calculated ratio the input credit has to be availed.
Service tax transactions are posted using the Materials Management (MM).
The system calculates the excise duty in these components and creates the
appropriate line items in Financial Accounting (FI).
1.4 Implementation Scope
1.4.1 Geographical Coverage
The following units are within the scope of SAP Implementation at 1000:
Units in SAP Scope Locations
1000, India Bangalore - House
Bangalore - Chambers
Bangalore - STPI, Electronic
City
Bangalore - Center
Mumbai - Incenter, Andheri
Mr.K.Santhosh KumarSAP FICO Consultant
Mumbai - Infotech Park, Vashi
Mumbai - Vashi 2
Chennai - Nungambakkam
Chennai - Guindy
Hyderabad - Somajigudda
Hyderabad - Kukuttapalli
Hyderabad - Ashok Chambers
Mysore - Gokulam
Durgapur - Moven pick
1000, Manila Quezon City
Ortigas
1000, Canada Toronto
1000, USA New Jersey
1000, Mauritius Rose Hill, Mauritius
Affina, USA OPM, Peoria
Waterloo
St. Luis
El Paso
Affina, Canada Montreal
Source 1 VENKAT Inc. New Jersey
VENKAT Europe London
VENKAT France Paris
Pacific Horizon Port Luis, Mauritius
Customer Contact Center
Inc. Quezon City
C-Cubed NV,
Netherlands Antilles, Netherlands
C-Cubed BV,
Netherlands Antilles, Netherlands
1.4.2 Functional Scope
Mr.K.Santhosh KumarSAP FICO Consultant
In 1000, following are the implementation scope in SAP FI Module
General Ledger
Accounts Receivable
Accounts Payable
Banks
Cash Journal
Fixed Assets
1.5 Module Integration
In addition to financial application area, following application area integration
is required. Integration in SAP is the pivotal role and involves lot of updating
with other application areas. The basic concept of SAP integration is
document once entered should not be entered twice anywhere in other areas
of application. As FI application area is the important involving monetary
issues whether external or internal, all the documents in other application
areas pertaining to accounting document will be automatically updated in FI
area. The following is a partial list of some of the integrations: -
Materials Management (MM):
All accounting-relevant transactions with respect to the following will be
made automatically in FI.
Goods Receipt (GR) against the Purchase Order.
Finished Goods Receipt.
Valuation of material from time to time.
Invoice verification
Billing:
Mr.K.Santhosh KumarSAP FICO Consultant
All accounting-relevant transactions with respect to the following will be
made automatically in FI.
Billing document that will passed as a JV in the financial accounting
with each invoice as a line item for each customer.
Integration within financial accounting (with respect to FI and CO):
Every posting that is made in the sub ledgers generates a corresponding
posting to the assigned G/L accounts. This ensures that the sub ledgers are
always reconciled with the general ledger. Controlling (CO) and Financial
Accounting (FI) are independent components in the SAP system. The data
flow between the two components takes place on a regular basis.
Therefore, all the data relevant to cost flows automatically to Controlling
from Financial Accounting.
Mr.K.Santhosh KumarSAP FICO Consultant
2 ORGANISATION STRUCTURE
2.1 Organizational Structures
In the R/3 System the user can use several structures to represent the
organizational structure of the entity from the point of view of Financial
Accounting, Controlling, and Materials Management.
The organizational structures form a framework in which all business
transactions can be processed. An organizational structure consists of
several organizational levels, which are used by different functional groups
within an organization. The organizational levels relevant to Financial
Accounting (FI) are annexed herewith in Annexure1.
2.2 Client
The client is the highest hierarchical level in the SAP R/3 System.
Specifications that you have to make or data that you enter at this level are
valid for all company codes and for all other organizational structures, such
as purchase organization. Consequently, these specifications are to be
entered only once.
Central maintenance ensures standardized data. For example, Customer’s
addresses are stored at client level so that all company codes can access
this central data. Different functional areas also use this data like the
Customer’s address used for sending out an order confirmation as well as for
printing a dunning notice (reminder letter).
Each client is a self-contained unit with separate master records and a
complete set of tables.
Mr.K.Santhosh KumarSAP FICO Consultant
A client key is used in all master records, which ensures that they are stored
per client. Each user must specify a client key when he or she logs on to the
system. By doing this, the user specifies the client in which he or she wishes
to work.
All entries are stored per client. Data processing and analysis are carried out
per client. For example, it is not possible to produce a report on customer
Accounts from different clients in one dunning notice run. Access
authorization is assigned per client. A user master record must be created
for each user in the client where he or she wishes to work.
2.3 Company
A Company represents a group of entities (one or more Company codes) in
SAP.
This entity is used for consolidation of accounts of multiple entities
(Company Codes).
All company codes within a company must use the same transaction Chart of
accounts and the same Fiscal Year breakdown.
However, the company code currencies can be different.
2.4 Credit Control area
Credit control area is an organizational unit that represents an area
responsible for granting and monitoring credit.
This organizational unit is either a single company code or, if credit control is
performed across several company codes, multiple company codes. Credit
information can be made available per customer within a credit control area.
2.5 Company Code
Mr.K.Santhosh KumarSAP FICO Consultant
A Company Code represents an independent legal accounting entity in SAP.
Balance Sheets and Profit/Loss statements required by law will be created at
the Company Code level. In other words, the organizational unit for which a
complete self contained set of accounts can be drawn up for external
reporting purpose.
The process of external reporting involves recording all relevant transactions
and generating all supporting documents required for financial statements.
The Company Codes pre fixed with a four digit numerical code:
Company Codes of 1000
1000 - 1000, India
1100 - 1000, Manila
1200 - 1000, Canada
1300 - 1000, USA
1400 - 1000, Mauritius
2100 - Affina, USA
2200 - Affina, Canada
2000 - Source 1 VENKAT
Inc.
2300 - VENKAT Europe
2400 - VENKAT France
3000 - Pacific Horizon
3100 - Customer Contact
Center Inc.
3200 - C-Cubed NV,
Netherlands
3300 - C-Cubed BV,
Mr.K.Santhosh KumarSAP FICO Consultant
Netherlands
1000, India will use Indian Rupee (INR) as the Company Code Currency.
2.6 Chart of Accounts
A Chart of Accounts is a classification consisting of a group of General Ledger
(G/L) accounts under a Client.
It provides a framework for the recording of values, in order
to ensure an orderly rendering of accounting data.
The chart of accounts contains the definitions of all G/L
accounts in an ordered form.
The definitions consist mainly of the account number, account
name, and the type of G/L account, that is, whether the
account is a P&L type account or a balance sheet type account.
One or more Chart of Accounts can be created for the same
Client.
A Chart of Accounts can be used by one or more Company
Codes.
Chart of Accounts “1000” will be used by 1000 as Operational
Chart of Accounts.
Chart of Accounts “1000” will be used by 1000 as Group Chart
of Accounts.
2.6 Cost Center
An organizational unit within a controlling area that represents a defined
location of cost incurrence.
The definition can be based on:
Mr.K.Santhosh KumarSAP FICO Consultant
Functional requirements
Allocation criteria
Physical location
Responsibility for costs
The cost center naming will be numerical up to 10 digits and the hierarchy
names as 1000STDHRCY
2.7 Profit Center
An organizational unit in Controlling / Accounting that reflects a
management-oriented structure of the organization for the purpose of
internal control.
Profit center will represent the organizational entity that will be used to
report P&L and other performance reports for a responsibility center.
Operating results for a profit center can be analyzed using either the cost of
sales approach or the period accounting approach.
The Profit center naming will be numerical up to 10 digits with the standard
named as 1000PCHRCY
Mr.K.Santhosh KumarSAP FICO Consultant
3 MASTER DATA
3.1 General Ledger Master Data
Transactions will be processed in the FI module using G/L accounts grouped
under Chart of Accounts.
1000 will use “1000” as Operational Chart of Accounts, to post the
daily transactions.
1000 will use “1000” as Group Chart of Accounts, to do Group
consolidation.
There are two segments in the General Ledger Master record:
Chart of Accounts Segment
Company Code segment
Chart of Accounts Segment In this segment, specifications that
apply to the entire G/L account master record are captured. These
include:
The G/L account number and G/L account name
Whether the account is a balance sheet account or an income
statement account
Data that controls the creation of a master record in a
company code, such as the account group.
Company Code Segment In this segment, the information which is
specific to a particular Company, is maintained in the Company code
segment of the General Ledger Master record.
This data controls how one enters and processes business transaction
data in the appropriate account as well as how the account is managed
Mr.K.Santhosh KumarSAP FICO Consultant
within a company code. The following are some of the specifications
which will be made for each G/L account:
Alternative Account Number
Currency: account currency
Reconciliation Account for Account Type - to specify the
control accounts for the sub ledgers
Open Item Management - will be maintained for accounts that
required open item management.
e.g.: Bank sub-accounts, GR/IR Clearing account, etc., are
maintained in Open Item Management.
Line Item Display - will be retained for accounts for which line
items are to be stored separately. Ex: Bank main accounts, all
expense accounts, all balance sheet accounts, excepting
accounts which are of the nature of reconciliation accounts.
The Operational COA & Group COA is still to be mapped with Legacy.
The following points have to be considered with respect to G/L accounts:
Master records for each Operational and Group G/L account will
be created and maintained by the Template Owners. The
Alternative GL account has to be created & maintained locally
The master record contains information and controlling
parameters which control the entry and processing of business
transactions in that G/L account
G/L accounts will also be used for posting transactions from
other modules of SAP
Mr.K.Santhosh KumarSAP FICO Consultant
3.2 Vendor Master Data
The vendor master contains the data of all vendors with which a
company conducts business. The Vendor master record contains the
information necessary for any contact with a certain vendor, in
particular for conducting business transactions.
The Vendor Master record is created and maintained by both the FI and
MM modules. The Information maintained in a record consists of
General data, Company code data and Purchase organization data.
The Material Suppliers, Freight service renders and Employees are
considered as Vendors.
Even the statutory organizations like Customs Commissioner are going
to be created as vendors. The Plants which are all created for Stock
movement will also be created as vendors.
The Account groups: The account group (Vendor account group)
determines:
The data that is relevant for the master record
A number range from which numbers are selected for the
master records
Several vendor groups will be designed and used based on the domestic
group/Import group/local group and based on other criteria.
Vendor Reconciliation Account
Vendor Reconciliation account is the G/L account for a group of vendors in FI-
AP module. The number of Vendor Reconciliation accounts will depend on
the grouping of the vendor in FI.
Mr.K.Santhosh KumarSAP FICO Consultant
When you post items to a subsidiary ledger, the system automatically posts
the same data to the general ledger. These reconciliation accounts ensure
that the difference balance of G/L accounts and subsidiary ledger is always
zero. This means that you can draw up balance sheets at any time without
having to transfer totals from the sub ledgers to the general ledger.
You have to specify a reconciliation account in every vendor master record
The Following are the reconciliation accounts used in 1000 SAP
implementation,
Vendor Recon Accounts Description
SUNDRY CREDITORS (SUPPLIERS & CONTRACTORS)
SUNDRY CREDITORS - CAPITAL
SUNDRY CREDITORS - PROJECT
SUNDRY CREDITORS - ADVT. & PUBLICITY
SUNDRY CREDITORS - EMPLOYEE BALANCES
SUNDRY CREDITORS - SERVICE COMMISSION PAYABLE A/C
With Holding Tax Codes (TDS).
TDS tax codes will be assigned to the individual vendors, wherever
applicable, for processing invoices/payment and relevant tax deductions.
Multiple Tax details can also be assigned to a Vendor. Relevant tax code will
be selected at the time of posting of the individual line item.
The TDS tax codes are given in detail in the Business process.
Vendor Payment terms
Payment terms will be defined in SAP and assigned to individual Vendors.
These payment terms will be defined by the process owners and finalized.
3.3 Customer Master Data
Mr.K.Santhosh KumarSAP FICO Consultant
All business transactions are posted to and managed by means of accounts.
You have to create a master record for each customer account that you
need. The master record contains data that controls how business
transactions are entered in the account and how posting data is processed.
In the master record, you can also store all the data that you need for
conducting business with the customer.
Customer master records are used by both the financial accounting
department (accounts receivable processing) in 1000.
For Ex:- ZCPD One-time customer Internal
Customer Reconciliation Account
Customer Reconciliation account is the G/L account for a group of customers
in FI-AR module.
The number of Customer Reconciliation accounts will depend on the
grouping of the customers in FI.
The following are the reconciliation accounts to be used by 1000 - SAP
implementation.
Customer Recon Account Description
SUNDRY DEBTORS - DOMESTIC
SUNDRY DEBTORS - EXPORTS
SUNDRY DEBTORS - AFFILIATED
INCENTIVES PAYABLE IN KIND
ADVANCE FROM CUSTOMERS
RETENTION MONEY-DEBTORS
3.4 Asset Master Data
Mr.K.Santhosh KumarSAP FICO Consultant
In order to make it easier for the user to create, maintain and evaluate
master data, varied individual information is structured according to its area
of use and the relevant functions in the system.
The asset master record consists of two main parts: General Master Data
& Data for Calculating Asset Values
a) General Master Data
This part of the master record contains concrete information about the fixed
asset.
The following field groups exist:
General information (description, quantity, etc)
Posting information (for example, capitalization date)
Time-dependent assignments (for example, cost center)
Information on the origins of the asset
Physical inventory data
Insurance data
b) Data for Calculating Asset Values
You can specify depreciation terms in the asset master record for each
depreciation area in the chart of depreciation. In order to make these
specifications, the master record contains an overview of the depreciation
areas. In addition, there is a detailed display available for each depreciation
area. If the depreciation areas that are not needed for a specific asset, it is
possible to deactivate these depreciation areas at the asset level.
Fixed assets can be structured or classified in the Asset Accounting
component using asset classes. The items in the balance sheet are generally
used to define these asset classes. Asset classes are defined for all clients
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and contain key control parameters, such as number assignment, account
determination, and screen layout. The following asset classes are defined in
the system:
The following are the asset classes identified for 1000 Implementation,
Asset Classes:
Land Land lease hold
Buildings – Corporate P&M equipment
Buildings- Factory Vehicles- cars & Motor cycles
Buildings-Non factory & Roads Furniture & Fittings
P&M E.D.P. (Computers) Office equipment
Electrical Machinery Asset under construction
Mr.K.Santhosh KumarSAP FICO Consultant
4 BUSINESS PROCESSES
4.1 Basic Settings
The purpose of this chapter is to document the global configuration settings
in Financial Accounting for the 1000 - SAP implementation. These settings
control the transaction entry and the dependant controls in SAP across all
the modules.
Parameter Settings: Posting of transactions in SAP require the following
settings
Currency
Fiscal Year in which the transaction is to be posted
Fiscal year variant for determining the posting periods
Document Types
Document Numbering
Document Posting Keys (debit/credit)
Posting Period Variant to determine the open and close
periods
Sales and Purchase Tax, Excise duty
Tax Deducted at Source (Extended Withholding Tax)
4.1.1 Currency
For each company code a currency must be specified. Accounts are
managed in the company code currency. All other currencies are indicated
as foreign. The system converts the amounts posted in a foreign currency
into this currency. The currency defined in the company code is known as
the local currency within SAP.
Mr.K.Santhosh KumarSAP FICO Consultant
1000 - SAP implementation will use Indian Rupee (INR) as their
Company Code Currency.
4.1.2 Fiscal Year and Fiscal Year Variant
To separate business transactions into different periods, a fiscal year with
posting periods has to be defined.
The fiscal year is defined as a variant which is assigned to the
company code.
Standard fiscal year variants are already defined in the SAP System
and can be used as templates.
The fiscal year variant contains the definition of posting periods and
special periods. Special periods are used for postings which are not
assigned to time periods, but to the process of year-end closing.
A fiscal year will consist of maximum of 12 posting periods and
maximum 4 special periods.
1000-1000, India has the fiscal year from April to March; therefore
variant – H3 will be used.
For Tax Accounting and for marinating books of accounts as per Indian
Accounting Practice, we need to use parallel ledger accounting using the
New GL Concept.
4.1.3 Document Types
The document type controls the document header and is used to
differentiate the business transactions to be posted, e.g. customer invoice,
vendor payments, etc.
Mr.K.Santhosh KumarSAP FICO Consultant
Document types are required in SAP to create and post financial
documents (e.g. Bank Payment Voucher, Receipt Voucher etc.).
Document types are defined at the client level and are therefore valid
for all company codes.
The standard system is delivered with document types which can be
used, changed, or copied.
Convergence system has defined the Document Types, which will be
adopted for 1000 – SAP implementation.
Document Number Range:
The document number range defines the allowable range in which a
document number must be positioned and cannot overlap.
The document number range has to be defined for the year in which it
is used.
The system stores the last used document number from the number
range in the field “current number” and takes the subsequent number
for the next document
Standard SAP allows a single Document Number range for each document
type only at the company code level.
4.1.4 Posting Key
Posting Key controls Debit or Credit account indicator for each line item.
The posting key also describes the type of transaction that is entered
in a line item and allowable account type, which will be entered for the
respective line item.
Mr.K.Santhosh KumarSAP FICO Consultant
SAP provides certain predefined posting keys. These predefined
posting keys will be used wherever applicable. For every posting key,
properties control the entry of the line item.
For each Posting Key, a reversal-posting key may be defined. The
reversal-posting key is used to reverse a document posted in financial
accounting.
Standard Account Types in SAP are as follows:
S - General Ledger
A - Assets
K - Vendors
D - Customers
M - Materials
4.1.5 Account Groups
Since a chart of accounts contains many different types of accounts, they
can be bundled into different “account groups”.
Account group is a logical grouping of accounts, which have got similar
properties and the same tasks within the General Ledger
The Account code of an account depends upon the number
range that is assigned to that Account group.
Mr.K.Santhosh KumarSAP FICO Consultant
The account group has to be entered in the chart of accounts-
segment and controls the appearance of the company code
segment of a G/L account.
We will be using the Account groups prescribed by the Convergence system.
4.1.6 Field Status Group
The field status group is a logical grouping of various field status
combinations. The field status influences the appearance and creation of an
account's master data.
Sl.No. Field Status Function
1 Suppressed No Display
2 Display Can be viewed, but not changed
s(even in change mode)
3 Required Entry is mandatory
4 Optional Entry can be made if required
For 1000 - 1000, Field status variant – 1000 will be assigned to
Company code
4.1.7 Extended Withholding Tax (TDS)
As SAP standard system allow defining two different tax types in withholding
tax namely one for invoice posting and one for payment posting, the
customer requirement can be achieved with SAP standard functionality.
The tax collected will be deposited in a separate GL accounts and can be
made automatic assignment, so at the time of posting automatically tax
account will be updated.
Mr.K.Santhosh KumarSAP FICO Consultant
All the withholding settings can be done by using Country India version so
that the requisite forms will be automatically updated and available for
printing.
In the 1000 implementation the following Section of Income tax will be
covered in Extended Withholding Tax of SAP:
Section Description
194A Interest paid, other than Interest on securities
194C Payment to contractors
194I Rent
194J Prof/Technical services
195 Payment to foreign nationals
194H Brokerage & commission
192 Salary to a resident / non-resident
206C Tax Collected at Source
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4.2 General Ledger Accounting
General ledger is a comprehensive financial management solution that
dramatically enhances financials controls, data collection, information access
and financial reporting through the organization. General ledger is the
central repository of all the accounting information of the organization. Most
of the transactions will be handled in respective sub-ledgers and
subsequently consolidated and posted to General Ledger. However the
module shall provide specific functions of passing journal entries (Manual,
Provisional, Recurring and Reversal Journals) and posting them, which will be
purely rectification and provisional in nature.
4.2.1 Purpose
The central task of G/L accounting is to provide a comprehensive picture for
external accounting and accounts. Recording all business transactions
(primary postings as well as settlements from internal accounting) in a
software system that is fully integrated with all the other operational areas of
a company ensures that the accounting data is always complete and
accurate.
4.2.2 Features to 1000
The SAP FI General Ledger has the following features:
Automatic and simultaneous posting of all sub-ledger items in
the appropriate general ledger accounts (reconciliation
accounts)
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Simultaneous updating of general ledger and cost accounting
areas
Real-time evaluation of and reporting on current accounting
data, in the form of account displays, financial statements with
different financial statement versions and additional analyses.
Essentially, the general ledger serves as a complete record of all business
transactions of. Actual individual transactions can be checked at any time in
real-time processing by displaying the original documents, line items, and
transaction figures at various levels such as:
Account information
Journals
Totals / transaction figures
Balance sheet / profit and loss evaluations
Parked documents
An incomplete document may be parked and then posted at a later date; this
may be done by the same or a different user.
Generally the documents are parked when the user is waiting for an approval
from his superior. Subsequently the user can book the same as a G/L
document.
One advantage of parking is that you can evaluate the data in documents
online for reporting purposes from the moment they are parked, rather than
having to wait until they have been completed and posted.
A list of parked documents can be generated in the SAP for the
benefit of the supervisor/manager. The document can then be
checked and corrected by the user.
Mr.K.Santhosh KumarSAP FICO Consultant
This document can then be posted in the General ledger.
Parked documents can be modified or deleted before post.
The Information of the sub-ledger cannot be captured from the expenditure
GL account. This analysis cannot be done on a list basis, but to identify in a
particular transaction which is the sub-ledger account got affected. It can be
tracked through the document overview option.
4.2.2.1 GR / IR Clearing account:
A) Goods Receipt / Invoice Receipt account treatment (GR / IR)
Since the GR/IR account needs to be split and differentiated by purchases of
stock, services and investments the following strategy will be used in order
to fulfill this requirement:
Valuation class will be used in order to allocate a specific GR/IR account for
purchases of stock.
The rest of the purchases (services, investments, etc) will use a different
GR/IR Clearing account by not fulfilling the field with any valuation class.
In order to split the investment from the other transactions, FI
substitutions will be used. As a first approach, the idea is to recognize the
investment transactions by the assignment of the WBS elements within the
goods receipt. Further investigations, within the realization phase, will be
done in order to finish describing this process.
This account will also be set up with the purchase order sort key for
matching purposes and within its master records, it will be set up as
automatic posting only.
4.2.2.2 Recurring Entries
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For postings that recur on a regular basis, such as payments for rent, legal
fees, and property taxes, the recurring entry program can be used to have
the necessary documents generated automatically.
The recurring business transactions must be stored in the system
as recurring entry original documents.
Each recurring entry original document contains the date of the
first and last posting, the frequency at which posting should
be made, and the date of the next planned posting.
The recurring entry program must be started at regular intervals
within a specified period. The program selects all recurring
entry original documents in which the date of the next posting
falls within the specified period, and then generates a batch
input session.
When the session is processed, an FI document that corresponds
to the original document is posted, and the date of the next
posting is changed accordingly in the recurring entry original
document.
1000 will use this option for booking expenses for Monthly
rentals.
4.2.2.4 Document Reversals
It is possible for a user to make an input error. As a result, the document
created will contain incorrect information. In order to provide an audit of the
correction, the user must first reverse the document in error, and then
capture the document correctly.
The system provides a function to reverse G/L, A/R and A/P
documents both individually or in mass.
Mr.K.Santhosh KumarSAP FICO Consultant
When reversing a document, a reversal reason code must be
entered to explain the reversal. The reason code also controls
if the reversal date is allowed to be different from the original
posting date.
Documents with cleared items cannot be reversed. The
document must first be reset.
Any open document can be reversed, except the cross module
documents like Sale Invoice, Vendor Invoice posted with
reference to Purchase order.
We can reset and reverse the documents those got cleared.
However, it needs to be noted that reversal of any document
will effect the allocation cycles in case if these processes are
completed. It will be required to re-run all these cycles once
again after reversing the document.
4.2.2.5 Closing Procedures
The closing operations are to be performed on a monthly or quarterly or
yearly basis which will be discussed in detail in the Operational Manual.
Some of the Closing Procedures are explained below:
Foreign Currency Valuation for Open Items
Accruals and Reversal of provisions
Closing & opening of posting periods
Balance carried forward
GR/R regrouping
4.2.2.6.1 Foreign Currency Valuation for Open Items
This process performs the revaluation of all foreign currency open items,
primarily in customer and vendor accounts, using the month end rate.
This process (program SAPF100) carries out foreign currency valuation for
accounts managed on an open item basis. Valuation takes place according to
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the single valuation principle. This means that individual open item on the
key date only are taken into consideration for the valuation.
SAP selects open items for customers, vendors, and G/L accounts posted in
foreign currencies.
Based on the exchange rate on the key date, exchange rate difference is
calculated automatically and valuation document is posted.
The balance of the foreign currency balance sheet accounts, i.e., the balance
of the G/L account managed in a foreign currency forms the basis of the
valuation. The exchange rate profit or loss from the valuation is posted to a
separate expense or revenue account for exchange rate differences.
4.2.2.6.2 Closing of Open Periods (Monthly and Yearly)
1000 can open and close these posting periods using the posting period
variant 1000.
Usually, only the current posting period is open for posting, all other posting
periods are\ closed.
At the end of this posting period, the period is closed, and the next posting
period is opened.
Special periods can be open for closing postings during the period-end
closing.
4.2.2.6.3 Closing the Fiscal year for asset accounting
The program blocks the current fiscal year to further posting to assets.
4.2.2.6.4 Balance Carried Forward
Account balances are carried forwarded from one fiscal year to the next
fiscal year by using the standard SAP carry forward program after the
accounts are finalized.
Mr.K.Santhosh KumarSAP FICO Consultant
The balance sheet accounts are carried forward onto themselves. The
income statement accounts are carried forward into retained earnings
accounts.
4.3 Accounts Payable
Accounts payable module streamlines the procure-to-pay process while
providing financial controls and information. It supports booking of invoices,
matching of invoices against purchase orders and approval of invoices. It
facilitates recording of debit memos as well as payments. It helps monitor
supplier invoices and creates supplier balance overviews.
The employee related functionality, which covers employee advances,
recoveries and reimbursements, is included within the Accounts Payable
module.
4.3.1 Purpose
The Accounts Payable application component records and administers
accounting data for all vendors. It is also an integral part of the purchasing
system: Deliveries and invoices are managed according to vendors. The
system automatically makes postings in response to the operative
transactions. In the same way, the system supplies the Cash Management
application component with figures from invoices in order to optimize
liquidity planning.
4.3.2 Master Data
Vendor Master Data
4.3.3 Features to 1000 - SAP Implementation.
In 1000 business:
Mr.K.Santhosh KumarSAP FICO Consultant
Payables are paid with the automatic and manual payment
program.
Dunning notices can be created for outstanding payable.
Postings made in Accounts Payable are simultaneously recorded
in the General Ledger where different G/L accounts are
updated based on the transaction involved (For e.g.: Payables
and down payments)
Balance confirmations, account statements, and other forms of
reports to suit your requirements in business correspondence
with vendors.
4.3.4 Business Process
4.3.4.1 Vendor Down payment
Advance payments will be made according to the terms of payments with
the vendor.
The advance payments made to the vendor will be tracked as distinct from
the normal payments made to the vendor. The posting for down payments
will be carried out to a G/L account other than the standard General Ledger
account for the vendor called as special G/L account.
The following types of Advances to vendors will be tracked separately using
special GL indicator.
Vendor Recon Accounts Description
PAYABLES - RECOVERIES FROM EMPLYOEES
SECURITY DEPOSIT FROM STOCKISTS / CONSINGNMENT AGE
SECURITY DEPOSIT FROM SUPPLIERS
ADVANCE TO STAFF - LTA
ADVANCE TO STAFF - T.A
ADVANCE TO STAFF - MEDICLAIM
Mr.K.Santhosh KumarSAP FICO Consultant
ADVANCE TO STAFF - HOUSE RENT ADVANCE
ADVANCE TO STAFF - OTHERS
ADVANCE TO STAFF - IMPREST
ADVANCE TO STAFF - HOUSING LOAN
ADVANCE TO STAFF - FURNITURE LOAN
ADVANCE TO STAFF - VEHICLES LOAN
ADVANCE TO STAFF - MARRIAGE LOAN
ADVANCE TO STAFF - EDUCATION LOAN
Down payment request and Payment of Advance
A Down Payment request is raised by the authorized person requesting for
payment. Based on the request, a down payment may be released to the
particular vendor and request item is cleared. Down payment request is a
noted item in special General Ledger account which will not be displayed in
the Balance Sheet.
The accounting entry for making the down payment will be:
Vendor account (Spl. G/L: Down Payment) Dr
Bank –Check Outward A/c Cr
4.3.4.2 Vendor Invoice verification.
Vendor invoices will be processed based on the invoices received from the
vendors. In invoice verification, vendor invoices are compared with the
purchase order and the goods receipt, and are checked for the price and
quantity
When an invoice is entered with reference to a purchase order,
the system suggests data from the purchase order and the
goods receipts for the purchase order (for example, vendor,
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material, quantity still to be invoiced, terms of payment, and
so on).
The posting of the invoice completes the invoice verification
process. The system updates the purchase order history and
Financial Accounting initiates payment for the open invoice
items. Invoice Verification creates a link between Materials
Management and accounting document.
Vendor Invoice Processing is discussed under the following heads:
Domestic Purchases (Raw Material, Packing Material,
Consumables and Finished goods)
C&F Expenditure reimbursements
Imports
Service Vendor Invoices
Service Commission Agent bills
Invoice Verification of Domestic Purchases
Invoice verification will be performed by referring the PO with the vendor
invoice. On posting the document with the Vendor Invoice value, the
following entry is automatically generated.
GR/IR Clearing account Dr
Cenvat Clearing Account Dr
Vendor account Cr
Invoice Verification of Freight Vendor
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On receipt of the invoice from the freight vendor, invoice verification will be
done by referring the PO with the vendor invoice and the following entry is
automatically generated.
Freight clearing account Dr
Service Tax Clearing Account Dr
Freight Vendor account Cr
Freight Vendor will be assigned in the PO as a condition record, if the vendor
is different from the material vendor.
If freight charges are not part of PO, and then freight charges are booked by
the finance department using the FB60 transaction.
Invoice Verification for Imported Goods
Vendor Invoice verification in respect of imported goods is discussed as
under:
Invoice verification for Foreign vendor
Invoice verification for Custom vendor
Invoice verification for Freight / Clearing agent
Based on the Purchase order and the quantity as per the vendor delivery
note, a Goods Receipts (GR) will be raised in MM module. The following
accounting entry gets automatically passed in the Financial Accounts.
Invoice Verification for Foreign Vendor
On receipt of the vendor, Invoice verification will be done and the following
entry gets passed:
GR/IR Account Dr
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Cenvat Clearing a/c Cr
Vendor Account Cr
Whenever the import vendor invoice is getting entered, the order currency
has to be entered first before the goods receipt of imported item. The Invoice
verification for customs duty has to be completed.
Invoice Verification for Custom vendor
Customs Clearing Account Dr
Cenvat Clearing Account Dr
Vendor A/c (Customs Authority) Cr
Invoice Verification for Freight / Clearing Agent
Freight Clearing Account Dr
Vendor A/c (Freight / Clearing Agent) Cr
Invoice Verification for Clearing and Forwarding Agent -
Reimbursement
Dr. Warehouse handling Exp
Dr. Standardization Exp
Dr. C&F Service Charges
Dr. Secondary freight from Rail head to Godown Exp
Dr. Secondary freight from godown/railhead to customer exp
Dr. Service Tax input credit a/c (for service Tax claims)
Cr. Tax deducted at source - contractors a/c
Cr. Sundry Creditor a/c
Processing Of Service Vendors Invoice
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Vendor Invoices for Services will be processed at the respective locations
using service entry sheet in MM module. TDS will be calculated and
deducted.
The following entry will be passed on preparation of service entry sheet:
Expenses Account Dr
GR/IR Account Cr
Processing Of Service Vendors Invoice
In this scenario, whatever commission got accrued by the sale’s invoice, will
be credited. Service Dealer is entitled to a Service Commission for the sale
canvassed for Non Trade customers.
Commission is fixed on Quantity basis. i.e. Commission @ Rs. xx / pmt.
The Accrual A/c Dr
The With holding tax payable Dr
To Service commission agent A/c Cr
The following entry is passed, during Invoice Verification
GR/IR Account Dr
Vendor Account Cr
TDS Account Cr
Whenever there is price change, after the Invoice verification has been
completed for the PO,
GR/IR clearing accounts Dr
Inventory account Dr (With Price Difference)
To Vendor acct Cr
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To Stock variation acct (6111X) Cr
When the goods have been consumed, the entry will be similar, but the price
difference will not go to the inventory, instead it goes to the stock variation
account.
4.3.4.3 Clearing of Vendor invoice and advance.
The concept of authorizing the document entry can be achieved by the
standard SAP functionality creating and authorizing the payment request.
Payment request will be created by one person and authorized by another
person to keep the control. It is also possible to post invoices from FI (FB60)
without the necessity of purchase order. That can be used to fulfill the
requirement of postings like miscellaneous payments, employee related
payments, travel agent payments, hotel bills, school subsidy and consultancy
payments. We can also maintain the templates with the help of sample
document function (f-01).
The various taxes, which must be calculated, based on vendor transactions
are Excise duty, sales tax, entry tax, customs and TCS, and at the time of
vendor payment TDS and ST TDS will be calculated. Defining the different
tax types and codes will be done using COUNTRY INDIA VERSION and
different tax types and tax codes will be attached with the vendor master
record.
An information message will be flashed at the time of invoice booking that a
down payment exists for the particular vendor.
Settlement of down payments to the vendor account and clearing of Invoice
against Down Payment
Vendor A/c Dr
Vendor account (Spl. G/L: Down Payment) Cr
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Wherever, TDS is applicable, the TDS will be deducted at the time of down-
payment to the vendor and will be adjusted at the time of settlement of
advances. Using transaction code F-51.
4.3.4.4 Tax Deducted at Source (TDS) (Other than salaries)
TDS procedures will be implemented using withholding tax functionality of
standard SAP including CIN. The aspects related to TDS are discussed under
the following heads:
Location for TDS Processing
TDS processing, accounting will takes place in the respective regions and
Payments will be done at corporate office.
Information required to Process TDS Calculation
Vendor account will be assigned with one TDS code, if applicable. This TDS
code will be the default TDS code for all the transactions with the vendor. A
user can however, change the TDS code during the transaction entry. This is
provided to ensure correct deduction of tax in cases where more than one
TDS rate is applicable to the same vendor due to different nature of
transactions.
Time of Tax deduction
As per Income Tax Act, TDS is required to be deducted on accrual of
expenses or payment whichever is earlier. Accordingly, TDS has to be
deducted at the time of bill passing. In respect of Advances given to vendors,
TDS will be deducted while making payment. TDS will be deducted on a
transaction-to-transaction basis.
TDS will be deducted on all the transactions with a vendor once a TDS code
is defined in master record of such vendor.
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Each of these TDS codes will be defined separately for deduction at the time
of booking the expenses or at the time of payment.
Printing of TDS Certificates
TDS Certificates can be printed vendor wise at Corporate Office or location.
Once TDS certificate has been generated at corporate or location, system
will not allow to print TDS certificate, only duplicate copy can be printed.
System will provide for generation of Annual Return on a yearly basis.
Printing of Annual Return.
Classifying the Vendors for calculating with holding tax, whether Individual,
Company, Partnership firm, etc 01 & 02. Standard SAP has only two
classifications, Individual & Company. There is no separate classification as
Partnership firm.
4.3.4.5 Advances/Loans To Employees And Travel Expenses
Generally the Advances to Employees are tracked separately using the
Accounts Payable sub ledger. For this purpose employee will be created as a
vendor. The employee advances will be tracked separately with Special G/L
Indicators:
All the employee payments can be captured by using special GL accounts
and special GL indicators for each type of employee advances like travel
advance, medical advance etc., and all employees will be created as Vendors
accounts.
The Following are the Loans and advances provided to the employees -
1000_FSBP_13_01 & 1000_FSBP_14_01.
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ADVANCE TO STAFF – LTA
ADVANCE TO STAFF - T.A
ADVANCE TO STAFF – MEDICLAIM
ADVANCE TO STAFF - HOUSE RENT ADVANCE
ADVANCE TO STAFF – OTHERS
ADVANCE TO STAFF – IMPREST
ADVANCE TO STAFF - HOUSING LOAN
ADVANCE TO STAFF - FURNITURE LOAN
ADVANCE TO STAFF - VEHICLES LOAN
ADVANCE TO STAFF - MARRIAGE LOAN
ADVANCE TO STAFF - EDUCATION LOAN
4.3.4.5.1 Employee Travel and Advances
The travel plan of the employee has to be confirmed by the head of the
department.
Then only he will be eligible to avail advances for the travel. Once the travel
has been completed the employee has to submit the travel bills. The travel
bills will be adjusted towards the advances, after duly booking the
expenditure.
If there is any balance in the travel bill either the debit or credit. It will be
debited or credited to the employee. The Debits are recovered through their
salary. The recovery has to take place through the external payroll system.
And no salary related posting is allowed. The Entry has to be passed
separately to recover the amount from the employee.
4.3.4.5.2 Salary Accounting
The Accounting and processing of salaries are classified in two,
Salary to management Staff
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Salary to regular employees
The process of salary to management staff & regular employees is by
personnel department (external to the SAP). The detail of the salary of
individual is provided by the pay roll department of 1000. The details for
accounting the same are provided by the personnel department.
At the end of the month the salary is uploaded through a Batch data
program.
.
4.3.4.5.4 Employee Welfare Accounting
1000 maintains staff clubs. The Employee will contribute some amount from
their salary and company will contribute 2.5 times of the employee
contribution to these welfare clubs. As explained in 4.3.4.5.1 Employee travel
advances, it has to be passed separately.
Every month these expenditures are deducted in proportion, from the
employee salary.
Following are the expenditures, recovered from the employee salary every
month,
- Canteen expenditure
- Electricity charges for house.
When it exceeds the limits as per HR policies.
4.3.4.6 Vendor Payment
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By using the SAP standard functionality all the cheque payments can be
managed. The typical procedure under SAP with respect to cheque will be
a) Defining the cheque lots for each and every house bank of 1000
(assuming 1000 will have house bank number)
b) Entering the vendor invoice
c) Entering the vendor payment by clearing the open item created by
invoice.
d) Attach cheque to the payment document number generated in step (c)
e) Check the cheque register to see the cheque updating.
R/3 Business Blueprint for ACE
Vendor Payments can be manual or automatic. The general aspects related
to vendor payment are Terms of Payment, Method / Media of Payment,
manual payment & Automatic Payment.
4.3.4.6.1 Method/ Mode of Payment
The payment methods used in 1000 - SAP implementation are as follows:
C = Cheque
E = ECS
T = Bank Transfer
A = Cash
D = Demand Draft / Pay Order. (Needs to be created for 1000 -
SAP).
4.3.4.6.2 Automatic Payments
Automatic payments are configured to make vendor payments based on
payment terms. The due date wise / vendor invoice wise payment proposal
will be generated and this proposal can be edited to make the selective
payments.
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After the payment list has been finalized, the payment run will be executed
and accounting entry will be posted automatically. Payment Advice and
cheque will be printed through system.
4.3.4.6.3 Manual Payments
Manual Payments are those payments, where the user selects vendor and
invoices to be paid. This selection can be used for cheque printing or other
methods of payment (like Instruction to bank). Usually this procedure is
preferred where the number of selection/payments is less.
4.4 Bank Accounting
4.4.1 Maintenance of Bank Master
A House Bank is a combination of a Bank and a Branch. Account id is the
account number. A house bank can have multiple account IDs. Each house
bank and account ID combination will have one main General Ledger
account. Bank Account
Master Data will be maintained by the Finance Department centrally.
In 1000 - SAP Implementation, for Automatic Reconciliation purpose, the
following intermediate G/L accounts are created for each house bank and
account ID combination,
House Bank: 00
Cheques Out: 02
Transfers Out:03
Direct Debit Out : 04
Financial Operation : 06
Financial Cost : 07
Foreign Currency Variance : 08
Unpaid : 09
Cheques In : 10
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Transfers In
Entries are initially posted to the bank sub-account. From sub-account the
entries are automatically posted to the main account based on matching of
the entries with the bank statement.
The Following are the house banks ,
UTI Bank (AXIS Bank)
HDFC
Canara Bank
IndusInd Bank
HSBC Bank
LaSalle Bank
China Trust Bank
Union Bank of Philippines
4.4.3 Manual Bank Reconciliation
Where ever 1000 not able to receive the soft copy of bank statements, they
can use the Manual bank reconciliation statement. Using transaction code
FF67, we can post the reconciliation entries.
4.4.4 Cheque Management/ Cheque Printing cum Advice
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The function of cheque management will enable printing of cheque through
SAP. Cheque series will be defined for a combination of a Company code and
Bank Account. Cheque numbering will be sequential order.
Cheque series for automatic payment has to be in sequential order. Cheque
printing facility will be available for the bank account.
4.4.4.1 Clearing of Cheques Printed
It is also a way of reconciling the bank transactions. When ever the Cheque
is issued automatically from the system, it can be cleared from the Cheque
issued account (As part of reconciliation) to the bank main ledger account.
The user has to feed in the information manually about the clearing date of
the Cheque. So that system will pass the below entry
Cheque Issued A/c Dr
To Bank Main Ledger account.
4.4.5 Cash Journals (Cash Transactions )
By setting the cash balance at the beginning of the day, the cash journal
shows the cash balance at any time by adding the cash receipts and
deducting the cash payment. The cash journal also serves as a basis for
entries in the general ledger and thereby represents the "Cash" G/L account.
The cash journal is a single-screen transaction. This means that you can
enter, display, and change cash journal documents on one screen.
You have the following options:
Entering, saving, and posting cash journal entries
You can save cash journal entries locally in the cash journal. The system also
calculates the balances. The cash journal entries saved then posted to the
general ledger.
For a cash journal document, you can carry out CO account assignments,
and have taxes, including withholding taxes, calculated by the system with
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reference to business transactions, taking account of tax jurisdiction codes,
for example.
Displaying follow-on documents
You can also display the follow-on documents arising for the cash journal
entries posted.
Defining cash journal business transactions
As well as defining cash journal business transactions in Customizing, you
can also, if necessary, define a new business transaction while you are
making entries in the cash journal.
Printing the cash journal
You can print the entire cash journal entries posted in the time period
displayed. You select the print form in Customizing.
Printing receipts
You can print the cash journal entries saved. You select the print form in
Customizing.
Deleting cash journal entries saved
If you have the appropriate authorization, you can delete cash journal entries
that have been saved.
Displaying all cash journal documents that have been deleted
You can display all the cash journal documents that have been deleted within
a specific time period.
Changing the cash journal
You can change the cash journal and the company code while you are
processing entries.
As per 1000 requirement, following are the Cash Journal.
1) Corporate Office
2) RMO- Bangalore
3) RMO-Chennai
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4) RMO-Hyderabad
5) RMO-Cochin
As per 1000 requirement, following are the Cash Journal.
1). Corporate Office: Cash Transactions will mainly represent transactions
relating to Reimbursement of Staff Welfare Expenses, Petrol, Conveyance,
Medical Expenses, Travel Advances, Postage and Reimbursement of
Residential Telephone Expenses.
Cash Transactions will be recorded based on an authorized payment
document received by the Cashier. Separate Document Type will be used for
recording the Cash Transactions.
4.5 Accounts Receivable
The accounts receivable module handles processing of sales invoices and
credit memos. It helps monitor, sales invoices, track receivables and create
statement of accounts for each customer. It includes aging analysis, the
ability to create reminder letters and statements of account, which tell
customers about their open invoices.
4.5.1 Purpose
The Accounts Receivable application component records and administers
accounting data of all customers. It is also an integral part of sales
management.
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All postings in Accounts Receivable are also recorded directly in the General
Ledger.
Different G/L accounts are updated depending on the transaction involved
(for example, receivables, down payments, and bills of exchange).
The system contains a range of tools that you can use to monitor open
items, such as account analyses, due date lists, and a flexible dunning
program.
The correspondence of payment notices, balance confirmations, account
statements, and interest calculations.
4.5.2 Master Data
Customer Master Data
4.5.3 Features to 1000 - SAP Implementation
Serves as a complete record of business transactions with Customers.
Accounting of Receipts Manually and also automatic clearing of
payments.
When drawing up financial statements, the items in foreign currency
are revalued.
The credit memo can be entered in any of the currency, for which the
exchange rates are available. The credit memo details are stored in
the entered currency but the ledgers are posted in the local currency.
Simultaneous posting to appropriate general ledger accounts
(reconciliation accounts).Dunning, Balance confirmation etc
Range of tools that you can use to monitor open items, such as
account analyses, due date lists
4.5.4 Business Process
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4.5.4.1 Customer Down Payment
SAP gives a facility to work with customer down payments. If the customer
pays by cheque / Demand Draft as a down payment it can be captured in a
separate GL account ‘Advance from customers’ and can be adjusted against
the invoice.
The following are the Special GL indicator for the 1000 - SAP implementation,
Customer Recon Account Description
Group GL Operational GL Alternative GL
INCENTIVES PAYABLE IN KIND
ADVANCE FROM CUSTOMERS
RETENTION MONEY-DEBTORS
Customer Payment Terms
The Customers can be classified broadly as Trade Customer and Non Trade
customer.
For the Non trade customer the payment terms is immediately due.
For the Trade customers the payment terms are based on the qty taken by
the customer.
As mentioned in the CSBP document, it is not possible to provide
the cash discounts based on the quantity taken by the customer.
There is no solution in the convergence system as well as SAP
system.
4.5.4.2 Customer Incoming Payment
This function allows the AR user to record receipts, from customers in the
system and adjusts them against invoices and debit memos.
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In the case of receipts received against invoices, the user can enter the
invoices to be adjusted. Else, he can record the receipt as an “On Account”
receipt, and link to one or more invoices later Invoices, advances and debit
memos can be settled to the extent of the outstanding amount.
Invoices, advances and debit memos can be partially settled.
In case the receipt currency is not the local currency, the same is converted
into local currency for accounting purposes. The rates as on the value date
will be used for conversion. However, the receipt details are stored in the
entered currency; the balances are stored both in the document currency
and also in the ledger currency.
A receipt number is generated and the user can print the receipt. This can be
sent across to the customer, as an acknowledgement.
4.5.4.5 Clearing of Invoices and Advances.
Account clearing process is used to clear one or more open line items within
one account. On clearing open items, system will create a clearing
document. (E.g. vendor payment can be cleared against vendor invoice
posting). Clearing process may be manual or automatic.
The prerequisite for the clearing process of an account is that the account
should be created as open item management in the master.
While seeing the customer account all accounts based on document type will
be displayed, which will be cleared by selecting them. Here we can see the
credit notes given, overdue balances by sorting the fields and select line
items based on the sorting.
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4.5.4.7 Accounting of Debit/Credit Memo’s
The Debit memos are processed for Bank charges, sharing of cost for
Common expenditures. (Trade customers only).
The Credit memos are processed for the price differences, wrong billing,
excess billing in terms of price, whenever there is a retrospective
pricing effects.
4.5.4.8 Sales Realization – Provisions
Each Regional office is doing this provisional entry activity at the end of
the month.
They calculate the provisional value of the S&D expenditure, Primary
freight and Secondary freight
4.5.4.10 Correspondence with customer
The account statement and balance confirmations can be sent to customers
periodically.
Reminder notice can be sent to all customers whose payments are overdue.
This is possible by using the SAP standard functionality.
4.6 Asset Accounting
The Fixed Asset module is an integrated asset management solution for
additions, updating, tracking, depreciation and administrative purposes.
Assets are depreciated periodically to arrive at their current net value. Once
an asset is capitalized, it can be transferred between locations, cost centers.
Assets can be removed from the Assets Ledger by disposing them.
A subsidiary ledger accounting module in Financial Accounting
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The Fixed Assets Module will provide following functions:
New Asset addition
Add to an existing asset
Modify Asset details
Asset Transfer
Asset Disposal
Depreciation
4.6.1 Purpose
The Asset Accounting (FI-AA) component is used for managing and
supervising fixed assets with the SAP R/3 System. In SAP R/3 Financial
Accounting, it serves as a subsidiary ledger to the FI General Ledger,
providing detailed information on transactions involving fixed assets.
4.6.2 Master Data
Asset Master Data is in the process of preparation
4.6.3 Features of 1000 - SAP Implementation
Drill down for a particular asset to view the transaction history for that
asset.
Depreciation is run only once for each period. The system will record
the last period for which depreciation was run. The user can only run
the depreciation program for the next period.
Asset that is depreciated, the system automatically generates a journal
and posts it to the Fixed Asset sub ledger for the depreciation amount.
When posting the depreciation expense for an asset the cost centre of
the asset at the time of depreciation run is considered.
4.6.4 Business Process
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4.6.4.1 Asset Acquisition and capitalization of Asset under
construction
All Asset purchases would be routed through Materials Management in the
form of a Purchase order. The Accounts section will create the Asset Master
record before Purchase Order is raised through MM Module. Assets
purchased in 1000 in the nature of Office Equipment, Computer Equipment,
Furniture and Fixtures and Vehicles will be capitalized directly without
routing it through Capital Work in Progress (CWIP) to make it capitalized on a
stand alone basis.
R/3 Business Blueprint for ACE
Fixed Assets as per 1000 group
Main group master (two digits) is created based on the 1000 classification
with life and depreciation rates.
Sub group master (4 digits) is created based on the 1000 classification with
life and depreciation rates.
The Additions as per financial/Calendar year for the period will be circulated
to users for identifying them with 1000 grouping. The assets identified as
1000 will be updated with 1000 depreciation rate and for other assets
NORMAL rate will be applied. These additions will be directly uploaded to
1000 FAR at the month end from financial year FAR.
The deletions will be uploaded from Financial Year FAR to 1000 FAR at the
month end.
Depreciation calculation will be done based on the rates provided in the
1000 FAR.
Schedule of Fixed Assets will be generated at the month end. Schedule of
additions also will be generated.
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Reconciliation of Gross block will be done between 1000 FAR and Financial
FAR.
4.6.4.2 Asset Depreciation
Different depreciation rates are configured using different depreciation keys
and they will be attached with the asset masters at the time of creating an
asset master.
Depreciation as per the Companies Act will be handled by creating ’Book
Depreciation’,
SAP gives a functionality of Depreciation Forecast Report wherein one can
analyze the Depreciation of the Asset over a period of years.
The planned depreciation is posted to the general ledger at the time of the
monthly depreciation posting run. This posting run uses a batch input
session to post the planned depreciation for each posting level for each
individual asset as a lump sum amount.
The depreciation posting cycle is determined by entering the length of time
(in posting periods) between two depreciation-posting runs. This means that
a setting of 1 indicates monthly posting, 3 means quarterly posting, 6 means
semi-annual, and 12 means annual (for a fiscal year version with 12 posting
periods). When a depreciation-posting run is started, one has to enter the
period for which one wants it to be carried out.
For 1000 - SAP Implementation there would be monthly posting for Book
Depreciation.
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A batch input session will be run called ‘depreciation run’ for posting
depreciation using periodic execution functionality. The required posting
documents are created once this is run; this will be run as a background job
every period end to post the depreciation postings to the general ledger.
4.6.4.3 Capitalization of Asset under construction
Assets under construction:
For capitalized maintenance, the flow is different. We use CWIP for each
asset class as account assignment in purchase order requisition.
GL accounts used are different, because the work order is to be charged on a
cost GL account.
The following postings will be generated during PO receipt
Posting Key Account number Description Amount
40 20181XXXXX Fixed AUC transit acct
50 GR/IR
CWIP will accumulate all the costs of the WIP for each asset class and
subsequently based on the asset capitalization date the settlement can be
done to the asset concerned.
4.6.4.4 Asset Retirement and transfer
The asset retirement consists of any of the following:
Sale of asset with customer, without customer
Scrapping of an asset
Transferring of an asset
Posting revenue / loss on asset sale
Version 2.0
Mr.K.Santhosh KumarSAP FICO Consultant
The above mentioned items can be done by using SAP standard functionality.
Transfer of assets:
Asset transfer within a company code is made mainly for 2 reasons
a) Wrong Asset Class: In case, the asset was created under a wrong asset
class then a new asset has to be created in a New Asset Class and an “Intra
Company Transfer” will to be executed. During the Asset transfer, SAP
transfers Acquisition Value, Accumulated
Depreciation as of the day of the Transfer from the Old Asset to the New
Asset.
Depreciation will be prospectively calculated with the new rate.
However we can use the transaction for ‘unplanned depreciation transaction’
, to make a unplanned posting of previous depreciation.
b) Change in Location (Business Area): In case of a change in location
(Business Area) of the asset, the master record is to be changed.
4.6.4.5 Closing operation
A. The year-end closing program is used to close the fiscal year for one or
more company codes from an accounting perspective. Once the fiscal year is
closed, one can no longer post or change values within Asset accounting (for
example, by recalculating depreciation). The fiscal year that is closed is
always the year following the last closed fiscal year.
b. At the time of closing the period system performs the following checks.
The system found no errors during the calculation of depreciation (such as,
incorrectly defined calculation keys)
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The planned depreciation from the automatic posting area has been
completely posted to the general ledger.
All incomplete assets (master records) have been completed, since this
check does not make sense for assets under construction, we can prevent
this check from being made for assets under construction.
4.7 Accounting of Taxes
Tax Calculation Procedure TAXINN will be used for calculating the taxes on
sales and purchases. This tax procedure will be assigned to Country IN
(India).
Tax calculation procedure will list down condition types that will distinguish
between different tax types such as Basic Excise Duty, Additional Excise
Duty, Special Excise Duty, Sales Tax on Purchases, Excise Duty on stock
movement, State Tax on sales, VAT etc.
Account determination will be maintained in the tax codes for automatic
posting of tax amounts.
Tax Code & Tax Account Determination
The tax code is entered when the document is posted and it is the main link
to the tax calculation.
Tax codes will be created for the individual rates and it will be used in the
MM module for maintaining the input tax table. Similarly, tax codes will be
created for the individual rates which will be used in the SD module for
maintaining the output tax table. G/L accounts will be maintained for both
input and output taxes along with break up of the taxes like basic rate,
surcharge, additional and so on.
Mr.K.Santhosh KumarSAP FICO Consultant
4.8 New GL Accounting
The traditional general ledger accounting records all business transactions
and provides information for external accounting and accounts. From the
Latest version of SAP i.e. ECC 6.0 onwards SAP GL ledger accounting fulfills
the modern accounting also.
The New Ledger accounting contains the options like, Parallel accounting,
Integration of Legal and Management Reporting etc.
4.8.1 The Parallel accounting: Parallel enables you to perform valuations
and closing preparations for a company code according to the accounting
principles of the group as well as other accounting principles, such as local
accounting principles.
In parallel Ledger Accounting, you can use several ledgers and they are
broadly classified as Leading Legers and Non Leading Ledgers. This allows
you to produce financial statements according to different accounting
principles, for example. You create a ledger for each of the general ledgers
you need.
4.8.1.1 Leading Ledger:
The leading ledger is based on the same accounting principle as that of the
consolidated financial statements. In each company code, the leading ledger
receives exactly the same settings that apply to that company code: the
currencies, the fiscal year variant, and the variant of the posting periods. You
can define a second and third parallel currency for your leading ledger for
each company code.
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That means for the future consolidation purpose we can have the
Group currency as company code currency (INR) and as Second
currency as INR. So once the exchange rates are maintained, using
parallel currencies we can see the balances in the ledgers parallel.
Any how the Domain owners has to confirm this whether to have
Group currency as company code’s First Currency (EUR) and Second
Currency of the company code as Local currency (INR).
1000 and 1000 is going to have OL as the Leading Ledger.
4.8.1.2 Non-leading ledger:
The non-leading ledgers are parallel ledgers to the leading ledger. They can
be based on a local accounting principle, for example. You have to activate a
non-leading ledger for the individual company codes.
Non-leading ledgers can have different fiscal year variants and different
posting period variants per company code to the leading ledger of this
company code. The second and third currency of the non-leading ledger
must be a currency that is managed as second or third currency in the
respective company code. However, you do not have to have a second and
third currency in the parallel ledgers; these are optional.
Based on the group decision and domain owners decision on Second
and Third currency we may have one more non leading ledger for
consolidation.
4.8.2 Real-Time Integration of Controlling with Financial Accounting:
During allocations in Controlling, most of the postings created do not affect
Financial Accounting. These postings do not update any G/L account
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transaction figures; they are postings within Controlling. If, however, an
allocation in Controlling leads to a change in the functional area or any other
characteristic (such as Profit Center) that is relevant for evaluations in
Financial Accounting, a shift occurs between the affected items in the profit
and loss statement.
For this reason, this information has to be transferred to Financial
Accounting. This reconciliation between Controlling and Financial Accounting
takes place by means of real-time integration.
As a result of real-time integration, all Controlling documents that are
relevant for General Ledger Accounting are transferred from Controlling to
General Ledger Accounting in real time.
This means that Financial Accounting is always reconciled with Controlling.
A document is created in Financial Accounting for each posting in
Controlling. This means that the detailed information contained in the CO
documents is always available in reports in New General Ledger Accounting.
4.8.3.1 Document Splitting
The document splitting procedure is to split up line items for selected
dimensions (such as receivable lines by profit center) or to effect a zero
balance setting in the document for selected dimensions (such as segment).
This generates additional clearing lines in the document.
Examples of a Unique Business Process with Document Splitting
Example 1: Invoice
A vendor invoice is entered with the following items:
Posting Key Account Profit Center Amount
31 Payables 100.00-
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40 Expense 0001 40.00
40 Expense 0002 60.00
Document splitting then creates the following document in the general
ledger view:
Posting Key Account Profit Center Amount
31 Payables 0001 40.00-
31 Payables 0002 60.00-
40 Expense 0001 40.00
40 Expense 0002 60.00
Based on the profit centers the document can be splitt into different line
items. For posting to different ledgers itself apart from the Leading ledger,
we need to spit the document itself. And this splitting is possible only for the
FI transactions.
Mr.K.Santhosh KumarSAP FICO Consultant
5.0 MODULE INTEGRATION
5.1 Material Purchase accounting & Accounts Payable
Purchase Order will be raised in the MM module. Accounting of purchases will
be configured using account determination in MM module of SAP. The
determination will be made using following parameters:
Company Code
Valuation Class
Valuation Class is basically the broad classification of materials like Raw
Material, Semi-finished, Finished goods, Trading goods, etc. which are
assigned in the Material Master.
The valuation class determines the G/L accounts that are updated as a result
of a transaction or event, such as a goods movement. The Accounting entries
from MM Module are passed based on the type of transaction and the
valuation class.
The Details of Valuation class is included in the MM Blue print document.
For all stock accounting documents generated from MM, PP and SD, the
below mentioned
Document Types and Posting keys are automatically defaulted.
Document Types
RE - Invoice receipt - MM
WA - Goods issue
WE - Goods receipt
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Posting keys for inventory depending on the transaction
89 - Stock Dr
99 - Stock Cr
5.1.1 Good Receipt
Based on the Purchase order and the actual quantity received, a Goods
Receipts (GR) will be raised in MM module. The following accounting entry
gets automatically passed in the Financial Accounts
In 1000 - SAP project implementation, we will be activating the purchase
accounting. It is followed in the convergence system. As per the purchase
accounting concept, the goods receipt accounting will be as follows,
Goods receipt
Inventory account Dr
GR/IR clearing account Cr
Purchasing account (631X1) Dr
Stock variation acct (6111X) Cr
Purchase accounts can be updated in two ways:
At the receipt value
In this case the exact amount posted at goods receipt or at invoice receipt is
posted to the purchase account.
At the delivered (cost) value
In this case the exact amount posted at goods receipt to the GR/IR clearing
account is posted to the purchase account.
Goods receipt along with freight condition.
There are two accounting ways of managing the freight purchase:
To have a dedicated account for freight on purchase
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To include it in the purchase account
Ex1: With Dedicated freight account
Inventory account Dr
GR/IR clearing account Cr
Freight Account Dr
Purchasing account (631X1 ) Dr
Stock variation acct (6111X) Cr
Ex2: With Purchase account
Inventory account Dr
GR/IR clearing account Cr
Purchasing account (631X1) Dr
Purchasing account (631X1) Dr
Stock variation acct (6111X) Cr
Goods receipt
Inventory account Dr
GR/IR clearing account Cr
Purchasing account (631X1) Dr
Stock variation acct (6111X) Cr
Excise Posting
On receipt of the excise invoice cum gate pass, Excise Invoice will be created
in CIN module with reference to GRIR document. This will automatically post
accounting entries in the system.
Accounting entry:
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1. For Domestic procurement of Raw Material/Packing Material
CENVAT Input BED Dr
CENVAT Input ECS Dr
CENVAT clearing Cr
2. For Domestic procurement of Capital Goods / Spares and consumables
CENVAT Capital Account Dr (50%)
CENVAT On-hold Account Dr (50%)
CENVAT Clearing Account Cr
3. Subsequent financial year of procurement of Capital Goods / Spares and
consumables
CENVAT Account Dr. (50%)
CENVAT On-hold Cr. (50%)
4. For Import Procurement of Raw Material
CENVAT Account Dr.
Custom Clearing Cr.
5. Payment of excise duty in PLA Account (TR6C Challan)
PLA Account on Hold Dr.
Bank Account Cr.
PLA Account Dr.
PLA Account on Hold Cr.
Material Return to Vendor
There will be instances where material purchased from vendor may be
returned for various operations reasons.
Material return may originate from a Factory or Depot.
Material returned to Vendor will be recorded in SAP with reference to Goods
Receipt or Purchase Order in MM.
Excise invoice will be created in CIN with reference to the material return
document, where material is returned from a factory.
Mr.K.Santhosh KumarSAP FICO Consultant
The accounting entries will be:
Stock Returns
GR/IR Account Dr
Stock Account Cr
Excise Reversal Entry (In case of returns from Factory)
Cenvat Clearing Account Dr
Cenvat BED Account Cr
Cenvat ECS Account Cr
5.2 Material Valuation
Material Valuation will be at a plant level i.e. Stock-able materials will be
valuated at the plant level (depot/factory/loan license manufacturer).
Valuation of goods depends on the price control procedure set in the
material master record.
In the SAP System, material valuation can be carried out on the basis of
either of the following two methods: Moving Average Price, or Standard Price
Moving Average Price
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In the moving average price procedure (denoted as “V”), the system
valuates goods receipts with the purchase order price and goods issues with
the current moving average price.
The system automatically calculates the goods issues upon every goods
movement by dividing the total value by the total stock quantity
Standard Price
In the standard price procedure (price control “S”), the system carries out all
stock postings at a price defined in the material master. Variances are
posted to Price Difference account.
Material Valuation
The material valuation is influenced by the costing tool box.
5.4 New GL Accounting
To record all business transactions (primary postings as well as settlements
from internal accounting) in software system that is fully integrated with all
the other operational areas of a company ensures that the accounting data is
always complete and accurate.
Beyond fulfilling the legal requirements, General Ledger Accounting also
fulfills other requirements for modern accounting:
Parallel Accounting
General Ledger Accounting allows you to perform parallel accounting by
managing several parallel ledgers for different accounting principles.
Integration of Legal and Management Reporting
In General Ledger Accounting, you can perform internal management
reporting in parallel with legal reporting. For this purpose, the profit center
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accounting functions are integrated with General Ledger Accounting.
Furthermore, you can generate financial statements for any dimension (such
as profit center).
Segment Reporting
General Ledger Accounting supports the segment reports required by the
accounting principles IFRS (International Financial Reporting Standards) and
US GAAP (Generally Accepted Accounting Principles). For this purpose,
General Ledger Accounting contains the segment dimension.
Based on the above functionalities, the 1000 - SAP implementation
requirements have been mapped. We have made certain assumptions also,
and these assumptions have to be confirmed by the domain owners.
The following are the requirements mapped for the 1000 - SAP project,
Splitting of Document for different Fiscal Year
Splitting of Document for different Ledger currencies (Assume that
Group will have requirement)
Splitting of Document for Group Consolidation Assume that Group will
have requirement)
Splitting of Document for IFRS Reporting.
Mr.K.Santhosh KumarSAP FICO Consultant
6 STANDARD INFORMATION SYSTEM
Report Description Code
Trial Balance – Company Code wise, Business area wise, Consolidated
BA Trial Balance.
S_ALR_87012284
Balance Sheet as per companies act 1956 (Schedule VI) -
Company Code wise, Business area wise
F.01
Compact Document Journal S_ALR_87012289
GL Account Analysis FS10N
GL Account Balances and Totals S_ALR_87012301
GL Account Line Items S_ALR_87012282
List of GL Accounts S_ALR_87012328
Chart of Accounts F.10
Customer Sales S_ALR_87012186
Customer Due Date Analysis for Open Items S_ALR_87012168
Customer Balance Line item wise FBL5N
Customer List S_ALR_87012179
Vendor Due Date Analysis for Open Items S_ALR_87012078
Vendor balance line item wise FBL1N
Vendor List S_ALR_87012086
Check Register S_P99_41000101/FCHN
Asset balance by Asset Class S_ALR_87011964
Asset balance by Business area S_ALR_87011965
Asset balance by Cost center S_ALR_87011966
Asset balance by Plant S_ALR_87011967
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Assets wise Monthly, Quarterly, Half Yearly And Yearly and as
and
When required Report containing Gross value, Accumulated
Depreciation, Depreciation for the year, Net Value.
AR01
Depreciation Values AR03
Depreciation Simulation – forecast S_ALR_87012936
Asset History S_ALR_87012075
Year-end IT depreciation report for India J1IQ
Monthly TDS Due, TDS remitted, TDS certificated issued. J1INMIS
Display Plant Stock Availability MB53
Stock in transit CC MB5T
Purchase Orders by Vendor ME2L
Purchase Orders by Material ME2M
SC Stock Monitoring (Vendor) ME2O
Plant Anal. Selection: Stock MC.1
Plant Anal. Selection, Receipt/Issue MC.2
Analysis of Slow-Moving Items MC46