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Re: Pls send me the configuraton of withholding tax. bec i have no idea of configuration of this. 1.Check W.Tax Countries Re: What is Global company 2. Define Official Withholding Tax Codes code? Have u worked on that? 3. Define Business Place (If more than one TAN No.) 4. Assign factory calendar to Business Place 5.Define W.Tax type for Invoice Posting and Payment Posting 6.Define W.Tax Code for Invoice Posting and Payment Posting 7.Check Recipient Types 8.Maintain Tax due dates 9. Maintain surcharge calculation method 10.Maintain Surcharge rates 11.Assign tax types to company code 12. Create GL Account - Withholding tax 13. Assignment of GL Account to Withhold tax 14. Maintain Document types for challan updatation 15.Maintain Number ranges group (SAP script forms) 16.Assign Number ranges to number group 17. Maintain number ranges 18. Assign TDS Number in Global Parameters 19. Assign Tax codes in Vendor Master Financial Accounting Global settings is the last step in thebasic settings configuration.Here You can see the the entire configuration of your company. Also some of the options like negative postings, business area financial statements,propose fiscal year, define default value date etc can be selected global company code is /noby6 .financial global parameter is the final step in basic 24 steps.in this step uill come 2 know breif deatails of the company likenegative posting ,proposd fical year,chart of accounts,bussiness area financial status etc. Comapany codes involved in document entry for external SAP system as sender orreceiver,they should have a global company code.this type of co. code must have a cross system code in addition to their local co. code

What is GR/IR account? Why do you maintain that? Explain the importance of GR/IR clearing account. Normally there will be time lag between recording of Goods received and Invoice received. To track the differences at any point of time, GR/IR Account will be helpful.

or Its an offsetting a/s, where u post when goods received and invoice not received and invoice received and goods not received.

What is house bank, bank key? Operating bank of client is called House bank. It contains deatils about bank like bank key, account id, account number , bank country and address of bank. BANK key is a registered number given by RBI (in India) to banks (corporate number) it is customised at country level House bank is the bank with which company maintain the bank account.all transaction ismake in this account.acao. can have a multiple housebank. Bank key It is the micr code through which the bank identify.this is the unique key provided by the Reserve bank.

After entering a document can you delete the entry? Can you change the document? Which fields Base line date & Once you post a document u cant delete the entry, but u can payment terms. change some of the fields are 1) Value date 2) Assignment number 3) Text But remember we cant change the amount once you posted. Where as in AR & AP we can change Discount base amount, Re: what are the prerequisites for chart of depreciation and how many chart of depreciation can assined what is a One company code is assigned only one chart of depreciation a/c type? but one chart of depreciation can be assigned to many company code. what r they? where we use it?where can we find it after that? KA – VENDOR Account type indicates that business transacation is related to which account type such as GL account(S),Vendor a/c(K),Customer a/c(D),Asset a/c(A) types and account types symbols. We can use this account type to post the document.In document header we use Document types such as GL account Document Types SA AB Vendor account Document types KR--- VENDOR INVOICE KZ -- VENDOR PAYAMENT DOCUMENT Customer account Document types DR--- CUSTOMER INVOICE DZ -- CUSTOMER PAYAMENT DA -- CUSTOMER DOCUMENT what is a a/c type?what r they?where we use it?where can we find it after that? Account types are used to deferanciate the documents it is useful to identify the type of documents account types are gl a/c(s) vendor(k) customer(d) asset(a) meterial(m) in each account type there are no of document types ex: account type document type 1) g/l a/c sa,ab 2) vendor kr,kz,ka 3) customer dr,dz,da 4) asset aa,af 5) meterial we,wr,re What is the difference between the functions of T-code F-22 and FB70? Kindly explain in detail window for GL to GL account entry. where as f-22 is a multiple screen transaction window for gl to any other account type entry.......

Re: what is the difference between Field Status Varient and Field Status Group. Please explain in Field Status Group are used to control the screen appearance for document posting. This is achieved through General Ledged Account by assigning field status group to General Ledger account or through posting key. For, this we need Field Status variant, which contains field status groups, and assign the field status variant to your company code. In the field status group we can manage the fields as Fields, which must have an entry, can be made required fields - Required Fields that can be entered, but are not required can be set to optional entry Optional Fields, which is not required, can be suppressed. The field status variant groups together several field status froups.Field status group specifies which fields are reqd. optional or suppressed.Field status variants are assigned to CoCodes, field status groups are assigned to field status variants.

What is the

difference between Withholding Taxes and Extended Withholding Taxes? Withholding tax is calculated and posted to the appropriate withholding tax accounts at different stages, depending on the legal requirements in each country. As a rule, withholding tax is posted at the same time that the payment is posted, in other words the outgoing payment (Accounts Payable) or incoming payment (Accounts Receivable), is reduced by the withholding tax amount. In certain countries, such as Brazil, the Philippines, and Spain, withholding tax can or must be posted when the invoice is posted. This means that the amount receivable or payable is reduced by the withholding tax amount. Extended withholding tax supports both concepts. The key concept in extended withholding tax is the distinction between withholding tax type and withholding tax code. While withholding tax types represent basic calculation rules, specific features of these rules in particular the percentage rate are represented by the withholding tax code. You can define any number of withholding tax codes for a given withholding tax type. If a particular transaction requires more than one kind of withholding tax, this is covered in the SAP System by defining more than one withholding tax type. When entering a line item, you can enter withholding tax data for each of these withholding tax types. How To Configure Withholding Tax? Steps for extended withholding tax : 1. Check withholding tax countries 2. Define Ex. Withholding tax types for invoice postings 3. Define Ex. Withholding tax codes 4. Formula for Ex. Withholding tax calculation 5. Assign Ex. Withholding tax types to Company code

6. Activate Ex. Withholding tax 8. Create a G/L a/C for Ex. Withholding tax 9. Define A/C for Ex. Withholding tax (DBWW) 10. Make changes in Vendor master (XK02) 11. Maintain Company Code Settings: Path: IMG -> Logistic -> General -> Taxes on goods movement -> India -> Maintain company code settings 12. Activate country version for specific fiscal year position Path: IMG -> FA -> -> FAGS -> Taxes on sales purchases -> Basic Setting -> India -> Activate country specific for fiscal year position

Why and When to use Business Area Can any body tell me why we want to use business area and where it is going to be used, as I know it helps in consolidation and still more? CG.Gopinath Business Areas in SAP are used to differentiate transactions originating from different points/lines/locations in business. Let me give some examples to elucidiate:A company (say, ABC) is a huge company and has a variety of businesses under it. Let us say that it typically operates in 3 different domains like machinery manufacturing, trading and assembling of machine parts. There are 2 options here now 1. Either create different company codes for the 3 business operations (which would be the easiest and require no creativity) or 2.) Create each of these business lines into business areas (the better option). The advantages of using the second option is: 1. You can use these business areas if other company codes require the same areas 2. The configuration is simpler as in case of company code, you would require to go through the entire configuration of creating Chart of Accounts, Fiscal Year variants, posting periods variants and so on. In the business area option, you just need to attach it to the company code and the rest of the details in Business area is attached by default from the company code you are using it in. 3. Using the options in controlling (EC-PCA, Enterprise Controlling, Profit Centre Accounting), you can even draw up Balance Sheets and PL statements for your business areas and hence this is used for management accounting in some companies (like HP, Dell, etc) when it wants to know the operating profits for different business areas/lines. The above was an example when the company wanted to separate entries according to the lines it operates in... the other case could be when it wants to find out profitability during its operations in

cities and differentiates these cities into Business Areas... Business Areas are not much relevant in FI but are much more relevant in CO. You have given a very good example for Business Area. I have questions. If I want the B/s and P&L Account for Business Area wise, I can take it. But, How about those transactions which are not assigned any business area during the document entry. Kotni Let me first be sure of what you are asking. Is it: 1) You want the B/S and P/L statements of transactions carried out in areas other than the business areas defined by you? or 2) You only want to view the transactions that were not carried out in any business area? Whatever were your doubts, let me clarify. If your doubt was the first one, then, in that case, the financial statements will not be available. There are reasons for the same. All transactions in FI pass through G/L accounts. The data in FI is then passed to CO through primary cost elements. According to the settings that you have configured for your controlling area and operating concern, the costs are distributed to the various cost centers (Cost Center Accounting & CO-PA). The costs are then apportioned to the various cost centers (which may or may not be a part of your business areas or may be independent cost centers). Now, with this data, financial statements of the business area are drawn up. For transactions not part of business area, they are transferred to independent cost centers (e.g. like Head Office Salaries, HR, etc) and hence, cannot be drawn up as a financial statement but just as line item displays in your reconciliation ledger (if you have activated it in the CO-OM-CEL {Cost Element Accounting}) [The answer to your second doubt, I hope]. Financial statements of Business areas are unbalanced because not always does the debit and credit entries of a transaction lie in the same business area/cost center; but for cost accounting purposes, they are reasonably sufficient. Thank you for the reply. I understand I need to give more clearly about my doubt. I want to configure FI and other modules and there is no CO or operating concern. But I want Balance sheet and Profit and Loss Account for each of the business area.As you aware, the business area can be defined above or below company code level. Is it possible to get what I want. In order to generate BS and P&L at business area level you should carry out the following: 1. You should have activated " Enable BA balance sheet" under enter global parametets in FA global settings.

2. You should do configuration under the transaction code "OBXM" 3. You also have run the transaction codes f.50 for P&L and 5.d & 5.e for Balance sheet readjustment. System automatically posts the taxes and reconciliation accounts of NIL BA transactions to BA and tally the trial balance of all B. areas Your explanations were excellent and precise, but I have a quick question why would one use business area against a profit center as business area data is never precise and getting a balance sheet report via business area is not recommended. Profit center would be better just a doubt please clarify Why would I use business area against a profit center?" is a very pertinent one and conceptually necessary. Let me explain to you what a profit center exactly means, both in SAP terminology and in management accounting. In management accounting, a profit center is an area or department from where the management wants to find out the return on investment or ROI, as the accountants know it. The concept in SAP is similar as it is used by management to find out the ROI. On the other hand, business areas are just segregation of business transaction origins. So, a certain business area can have more than one profit center within it. Both have their unique uses and both have their unique features. Using the above understanding, you can easily work out where you would use business centers and where you would use profit centers. Creating and Maintain SAP Business Area You can set up several business areas for each client so that the system can assign the postings made in all company codes defined in this client. To ensure consistency in document entry, you should give business areas the same name in all company codes. Goto transaction SM30 and specify the view V_TGSB To maintain to business area click the Maintain button.

Change in Company Code Currency You are a live site in China using company code currency as "RMB". The client would like to change the same to "JPY". How to achieve the same and the impact of the same? This will be a big task for you.

We did the same project before. What's your strategy? You`ll use the same client for the new currency, or you`ll have a brand new one. What we`ve done before was creating a brand new environtment. These were our strategies : 1. copied all the customization in a new client, no transactions and no master datas. so you`ll have the same settings with your live system. 2. created a new company code with the new currency, and copy all the customization. this step was to minimize our step in recustomization. 3. uploaded all the master datas...and started to do a new transaction. thats what we did. and fortunately our client was satisfied w our job:D The suggestion is don't do that in a live system or else you`ll have a big problem then.

How To Set Multiple Currencies For Company Code or GroupGo to OY01 Select your country key and double click on it. In that mention your hard currency key and index based currency keys. Then go to ob22 IMG Menu Path: Financial Accounting --> Financial Accounting Global Settings --> Company Code --> Parallel Currencies --> Define Additional Local Currencies Give currencies for 2nd and 3rd local currencies. Here you need to give 40 in the 2nd local currency and 50 for the 3rd local currency. Exch Rate type: M Source Curency : 1 Type of transalation: 2 SAVE Remarks: I am going through a decision process right now with my client regarding this configuration. When my client first came up on SAP 9 yrs. ago, they only had 1 currency. Since then they have made acquisitions and now have multiple company codes with different currencies. What I have found out is that once you set up a Company code for only one currency you cannot turn on Multiple/Parallel currencies in that company code. Fixed Assets are affected and so are all the AP & AR transactions. AR & AP can run into issues when it attempt to create and additional posting to the Group Currency because of Exchange Rate differences. In my opinion, I beieve it was a major mistake not to have turned on Additional Local Currencies from the beginning. What this does is allows you to establish a "Group Currency" in the FI Module. In table GLT0 you can see that there are columns way out to the right when you view postings via SE16 in columns titled AMOUNT. These are the group currency postings. You can then generate reports that pull this detail for consolidated reporting.

SAF FI Technical Interview Questions 1 1. Tell me about FI Organizational structure? Ans: Client | Operating Concern | Controlling area1 Controlling Area 2 | Co. Code 1 Co. Code 2 | Bus area 1 Bus area2 Bus Area3 Bus Area 4 2. How many Normal and Special periods will be there in fiscal year, why do u use special periods? Ans: 12 Normal posting period and 4 special periods are in the fiscal year which can be used for posting tax and audit adjustments to a closed fiscal year. 3.Where do you open and close periods? Ans: PPV is used to open and close the periods based on a/c types considering GL Accounts. Tr. Code. OB52. 4.What do you enter in Company code Global settings? Ans: 4 digit Alphanumeric key. Name of the company City Country Currency Language Address 5.What is document type, and what does it control? Examples. Ans: Document type is nothing vouchers containing line items. Several business transac! tions can be identified within a particular document type. It controls the document number ranges. It controls the Header part of document IT controls the line item level of the document Helps filing of physical document 6. What is posting key and what does it control? Ans: These are special classification keys. Two character numerical key it controls the entry of line items. Posting key determines Account type, Debit/credit posting, Field status of transaction.

7. What is field status group, what does it control? Ans: FSG is mandatory field in ! GL Creation. You use this field to define which fields are displayed when you post business transactions to a G/L account. A field may have one of the following statuses. - Suppressed - Display - Optional - Required 8. What is chart of account and how many charts of accounts can be assigned to a company? Ans: Chart of account is a list of all G/L accounts used by one or several company codes. For each G/L account, the chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a Company code. You have to assign a chart of accounts to each company code. This chart of accounts is the Operating chart of accounts and is used for the daily postings in this company code. You have the following options when using multiple company codes. You can use the same chart of accounts for all company codes If the company codes all have the same requirements for the chart of accounts set up, assign all of the individual company codes to the same chart of accounts. This could be the case if all company codes are in the same country. In addition to the operating chart of accounts, you can use two additional charts of accounts If the individual company codes need different charts of accounts, you can assign up to two charts of accounts in addition to the operating chart of accounts. This could be the case if company codes lie in multiple countries. The use of different charts of accounts has no effect on the balance sheet and profit and loss statement. When creating the balance sheet or the profit and loss statement, you can choose whether to balance the co! mpany codes which use different charts of accounts together or separately. 9. What does definition of a chart of account contains? Ans: chart of account key Name Maintenance language Length of the GL Account Number Controlling Integration Group chart of accounts (Consolidation) Block Indicator

10. Can one COA be assigned to several companies? Ans: yes. One COA can be assigned to several companies. 11) What is account group and what does it control? Ans: Account group determines which fields you can configure on the G/L master record. It is necessary to have at least two one for B/S and another one for P&L a/c. It controls the Number ranges of GL A/C. The status of fields of the master record of GL belongs to company code area. 12) What is reconciliation account; can you directly enter documents in that a/c? Ans: When you p! ost items to a subsidiary ledger, the system automatically posts the same data to the general ledger. Each subsidiary ledger has one or more reconciliation accounts in the general ledger. We can’t use reconciliation account for direct postings. 13) How do you control field status of GL master records and from where do you control! Ans: Field status variant is maintained all FSGs. 14) What are the segments of GL master record? Ans: - COA Segment A/C group Nature of account Short text GL a/c long text Trading partner Group Account Number - Company code segment Account currency Tax Reconciliation a/c for a/c type OIM,LID,FSG. 15) What does Field status group assigned to a GL master record controls? Ans: It controls the account assignments that are made to the account. Specifically the field status group controls whether postings to cost centers, internal orders, profitability segments and so on are required, not allowed (suppressed), or optional. 16) What is Country and operational chart of account? Why do you use group chart of account? Ans: Operational chart of account – Day to day activities It is mandatory. Country COA – It’s used for legal specific requirement of each country. It’s additional and optional. Group COA used for consolidation of Company codes. This is for group consolidation purpose.

17) What are all the segments in a Customer/Vendor master record? Ans: Segments in Customer Segments in Vendor General Data segment General data segment Company code segment Company code segment Sales area segment Purchasing organization Segment 18) What is open line item management? What do you mean by clearing open line items? Ans: Open item management is further reconciliation function. OIM allows you to display the open and cleared items and amounts in an account. OIM should be used if an offsetting entry is made for every line item posted in the account. The a/c is reconciled and cleared against another account. Ex. Salary clearing account and GR/IR Clearing account. 19) What is residual payment and part payment? Ans: Residual payment it clears original invoice with incoming amount and create new line item for remaining outstanding amount. Partial payment it leaves the original invoice amount and creates new line item for incoming amount. 20) What is internal and external number ranges? Ans: Internal Number Ranges: Doc. No will be provided by the system automatically in serial order allotting the next available progressive number. The number must be in numerical. External Number ranges: Doc. No will be given manually by the end user. System will not lock no automatically in this case. User can pick the number randomly. Number may Financial Questions

FI Errors and Probable Solutions These are some of the issue for which probable solutions are given, hope they are helpful : Scenario 1: I have configured FBZP, Fi12 for house bank. But when I am doing payment run in F110 I am getting following error: Company codes X1YZ/X1YZ do not appear in proposal 05/03/2006 REMI2. Diagnosis No data exists for the specified paying company code X1YZ and the specified sending company code X1YZ in payment proposal 05/03/2006 REMI2. System response The payment proposal cannot be edited. Procedure Check the flow trace and payment proposal list in order to determine why the specified company codes are not contained in the proposal

Solution : * That’s generic error for payment run, check whether there are any due items as on date (tcode fbl1n). You can also change the baseline date there and rerun it. if you still get same error.. Check the proposal log, you will find the reason. * Try to see first whether any open items exist. By using FBL1N. Scenario 2: How to make the payment through automatic payment program, through F-110 .What are the prerequisites? Solution : For Down payments to be paid using APP we have create a Down Payment request F-47. Scenario 3: While doing APP, after, " the payment proposal has been created message " if edit proposal is selected, I am getting the error as "Company code ABC/ABC do no appear in the proposal " Solution : This type of error comes when your Payment proposal doesn't have any items to process. Check the parameters and ensure invoices are due as on run date. Scenario 4 : While posting customer invoice (FB70) why system asks for G/L account? As per accounting rules customer is debited and Customer reconciliation a/c is credited that ends double entry book keeping rule. Why one more G/L account on top of Recon a/c, which is posted automatically? Solution : * Entry gets posted to Customer a/c through reconciliation account. You have to give a GL a/c for revenue. Your entry would be Customer (Reconciliation a/c) To Revenue Cr

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* Reconciliation is a fictious entry so you cannot consider as an entry to be entered by the user. This rule is derived from the fact that 'we cannot enter/post directly to RECON account'. That is why system needs a GL account to make the account balance as zero. Manual entry could be: Customer a/c Dr To Domestic Sales a/c (Sales invoiced posted)

Recon entry is automatically made once you post this entry since you have configured your RECON in the IMG. Scenario 5 : I am unable to figure out how to attach my GL Accounts to my company code [copied chart of accounts, have my own company code, assigned my company code to the chart of accounts]. Solution : You can attach the GL Accounts by just filling the details in the company code segment of the GL A/c. Hence you can use that gl a/c for your co code. But that would be individually creating the accounts. Right?? How about creating all accounts at one shot. Create in FS00 Scenario 6 : Difference between Standard Hierarchy and Alternate Hierarchy. Solution : Standard Hierarchy is basic structure of company but alternative hierarchy is just for reporting or temporary usage. Scenario 7: I have created depreciation keys (diminishing balance) and assigned to asset classes respectively. But at the time of asset master creation the system ask for Useful Life of the asset while my understanding is that in diminishing balance method there is useful life, just percentage is defined. Solution : Useful life is required for depreciation change. Normally a company with WDV depreciation may want to write off its assets which have crossed their useful life in 2 or 3 installments. This is achieved by depreciation change, where after useful life, a new method takes over. Scenario 8 : I have some conceptual problem in Internal Order. Solution : Internal order can only take a statistical posting & cost centre shall take a true posting when the relevant internal order is defined as statistical I/O IN T. code KO01(CONTROL DATA ) tab. So while making a posting in FB50 and assigning both I/O & COST CENTRE as relevant cost object in the transaction you shall get the stated status of these 2 cost object. Scenario 9 : In fb50, in the details tab, only if I tick 'calculate tax' will the tax get calculated. Our user wants this to happen always (by default), i.e. he does not want to tick this for each transaction. Is there any setup to be done for the tax to get calculated always?

Solution : Even now you are not clear. T_Code FB50 is used for posting GL account only. I fail to understand how you can calculate tax which is generally from purchase / vendor or Sales / Customer oriented through FB50. In case of local distribution, if we forget to pay taxes on certain items and we need to pass tax entries, then such a case is needed. This can be achieved thru default parameter id for that particular user through transaction code SU3. In SU3, in Parameters Tab put "XTX" in Parameter ID column and in Parameter Value column put "X". Scenario 10 : We have an issue here where by the system is calculating the tax for an invoice with a wrong tax base amount. How do i change the tax base amount? I get the tax rates from VERTEX and they are showing right. Where does the system pull this tax base amount for an Invoice and how can I change it. Solution : Kindly check this: spro - financial accounting - f.a global setting - with holding setting - extended with holding setting -- calculation -- with holding tax type . Check your withholding tax type, go in it and chec

SAF FI Frequently Asked Questions 1 1. Whether any FI doccument will be created during PO(Purchase order)? If please mention the entry also. 2. What factors differentiates from one dunning level and other dunning level? 3. APP There will be many banks in a house bank. If the payment should be maid from particular bank GL account. Where it is need to configured. 4. What are various types of servers in SAP R/3 5. Can anybody explain me FI-MM integartion.pl explain in detail i. movement types ii. account class iii. material types 6. Maximum no. of dunning levels are created? 7. In how many ways APP is configured 8. What is diff between AAM, Recurring entries, Sample doccument? Find here with the answers for your questions 1.Whether any FI document will be created during PO(Purchase order)?If pl mention the entry also?

Ans: There is no document that is created in FI side during PO. But in controlling there can be a commitment posting to a Cost Center. The offsetting entry is posted at the time of GR. 2.What factors differentiates from one dunning level and other dunning level Ans: The most important thing that differentiates the dunning levels are the dunning texts. The dunning text defines the urgency of the dunning notice. The other things can be the dunning charges, minimum & maximum amounts etc. 3.APP There will be many banks in a house bank. If the payment should be maid from particular bank GL account. Where it is configured. Ans: There can be several accounts in the same house bank. We should assign the GL accounts exclusively at the time of creating the Bank master data and the bank accounts. Accordingly we can do the bank determination in FBZP for the individual banks and the corresponding sub accounts. Tr code for Defining bank : FI12. 4.What are various types of servers in SAP R/3? Ans: The Typical SAP landscape looks something like figure 1.4 below: 5.can anybody explain me FI-MM integartion.pl explain in detail i. Movement types: 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 predefined posting rules determining how the accounts of the financial accounting system (stock and consumption accounts) are to be posted and how the stock fields in the material master record are to be updated. ii. Valuation class Assignment of a material to a group of G/L accounts Along with other factors, the valuation class determines the G/L 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 G/L accounts - Post the stock values of materials of different material types to the same G/L account iii. Transaction/Event Key Key allowing the user to differentiate between the various transactions and events (such as physical inventory transactions and goods movements) that occur within the field of inventory management. The transaction/event type controls the filing/storage of documents and the assignment of document numbers. iv. Material Type Groups together materials with the same basic attributes, for example, raw materials, semifinished products, or finished products. When creating a material master record, you must assign the material to a material type. The material type you choose 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 6.Maximum no. of dunning levels are created? Ans: 9 levels maximum. 7.In how many ways APP is configured? Tr Code: FBZP 8.What is diff between AAM,Recurring entries,Sample doccument? Account Assignment Model:

A reference for document entry that provides default values for posting business transactions. An account assignment model can contain any number of G/L account items and can be changed or supplemented at any time. In contrast to sample documents, the G/L account items for account assignment models may be incomplete. Recurring Entries: A periodically recurring posting made by the recurring entry program on the basis of recurring entry original documents. The procedure is comparable with a standing order by which banks are authorized to debit rent payments, payment contributions or loan repayments. Sample Documents: Special type of reference document. Data from this document is used to create default entries on the accounting document entry screen. Unlike an accounting document, a sample document does not update transaction figures but merely serves as a data source for an accounting document. Swarajya. 1. Where to assign activity type in cost centers? OR how to link cost centers & activity types? >> There is no direct assignment. You plan the output for a cost center first in kp26. Then you've to plan the value of that cost center which you budget for a period in kp06. Planned Activity expenditure / Planned Actvty qty gives yoa planned act rate which you can use to valuate your activity confirmations in mfg ordrs. You can also define your own prices,but you have to run the price revaluation if you want to revaluate your actual activity prices. 2. For stat. key figure what is the significance of sender & receiver cost elements & cost centers? >> Stat key fig are not real account assignments. In simple traditionl terms it is the base to allocate or define praportions with which the cost is allocated. SKFs are used to calculate the debit on a receiver object. These values can be used for assessing common costs which are used by all the other cost centers. 3. How SKF works .. Kindly give me T Codes Also. >> You create & plan SKF. Create using KK01 & PLAN the parameters of SKF in KP46 SAP Tips by: Dhiraj 1. Does any one know what is Software life cycle, it was a question asked in an interview.

2. In GL master we have a option "Balance in local currency" and "Account currency". What does it mean? 3. In movement type(MM), what is value & quantity string I know it updates values and quantities in GL with mix of valuvation class, transaction key modifier and GL A/c. But how does it work when doing a mvt type? 4. In FI when doing Special GL transaction what determines the fields statues of the screen and why do we have so many screens followed by it. Is it determined by Posting Keys? is it to determine Account type for which we are using the Special GL and debit and credit? Q: Software Life Cycle, Ans: it is nothing but Road Map - five phases like, Project Preparation, Blue print, Realisation, Final preparation and Go-live support. Q: In GL master we have a option "Balance in local currency" and "Account currency".What does it mean? Ans: Account currency is that the GL account in which currency do you want to maintain. if you decided that you want maintain in company code currency, you can post any currency in that account. If not, you want to maintain separate currency for that GL then exchange rate difference will come because the conversion rate. Balance in local currency - some GL account can't be maintain on open item basis and can't in foreign currency like clearing account and discount account etc., in such case you can assign this indicator to show the balance in local currency. Q. In movement type(MM), what is value & quantity string I know it updates values and quantities in GL with mix of valuvation class, transaction key modifier and GL A/c. But how does it work when doing a mvt type? Ans: Basically, the system does not know which GL has to be updated with what. here, we are giving a direction to the system to update the data. What you said is correct, the system will update the value and qty in the material master. You would have seen some more fields also, like Movement indicator, consumption, value string and transaction event key etc., While creating a PO, the system will take the Movement type as a base, with MT, it will identify the MI(movement indicator - used to define whether it is goods movement for production order, purchase order, delivery note etc), and it will identify the consumption,( like it is assets, or consumption or sales order) and it will identify the value string ( it is must to assigned to movement type, through allocation of value string to movement type, system will automatically

identify the GL ) and it will post the entry (dr/cr)in the GL based on the transaction and event key figure which is used to determine the debit and credit entry of a GL SAP Tips by: Elangovan 4. In Field Status Group there are options like Suppress, optional, Required, Display. So that it is followed by so many screens and it is determined by posting key. Its both debit (or) (Both) credit. SAP Tips by: Bharath

Questionnaire with Answers for SAP FI What is the difference between company and company code? A company is the organizational unit used in the legal consolidation module to roll up financial statements of several company codes. The Company Code is the smallest organizational ! unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting. How many chart of accounts can be attached to a company code? One or more Operative Chart of Accounts can be assigned to a company code. A COA must be aasigned to a company code. This COA is the operative COA and is used in both FI and CO. One Chart of Account can be assigned to many Company codes i.e., Multiple company codes can either share the same or have separate COA. But a company code (Country specific Company code or International Company code) can have a country specific COA also along with Operative COA. The link between the regular COA and the country COA appears in the alternate number field of the G/L master record. Eg: If a company's subdidiaries are located in both US & Mexico. We need to configure 2 Company codes - one for US and another for Mexico,for eg U100 and M100. The same way we create 2 COA's one for US & one for Mexico, USCA and MXCA. Mexico has different govt reporting requirements than the US so we will need to define a company code specific to Country Mexico and also create a country specific COA to be used, in addition to normal COA. In tcode OBY6(Comp Code Global Parameters) of CC M100 we define normal COA i.e.,USCA in Chart of Accounts field and MXCA in Country Chart/Accts field. What are substitutions and validations? What is the precedent? Validations are used to check settings and return a message if the prerequisite check condition is met. Substitutions are similar to validations; they actually replace and fill in field values behind the scenes without the user’s knowledge unlike validations that create on-screen msgs to the user. What is a controlling area? The Controlling Area is the central organizational unit within CO module. It is representative of a contained Cost Accounting envt where costs and revenues can be managed.

Define relationship between controlling area and company code? A controlling area may include one or more company codes which must use the same operative chart of accounts as the controlling area. A Controlling Area can contain multiple company code assignments but a single company code can be assigned to only one controlling area. What is a fiscal year variant? Fiscal Year is a period of 12 months and SAP provides 4 special periods to posting adjustment Entries. Fiscal year determines posting periods. Posting periods are used to assign business transactions. Fiscal year may be year dependent or year independent. What are special periods used for? The Special periods in a fiscal year variant can be used for things like posting audit or tax adjustments to a closed fiscal year. What do you mean by year dependent in fiscal year variants? Year Dependent: the financial year is same as calendar year. Starting from 1st Jan to 31st Dec (where posting periods and the calendar months are equal) Year Independent: the financial year is different from calendar year Starting from 1st April to 31st March (where the posting period months are not equal to calendar year months) What are shortened fiscal year? When are they used? Shortened Fiscal Year: a financial year, which has less than 12 periods. What are posting periods? The Posting period variant controls which posting periods, both normal and special, are open for each company code. It is possible to have a different posting period variant for each company code in the organization. The posting period is independent of the fiscal year variant. What are document types and what are they used for? Document type is the identifier of differentt account transactions like SA for G/L,AA for Asset Accounting etc.The doc. Types controls things like type of the account that can be posted to, the number range assigned to it, and required doc header fields. How are tolerance group for employees used? Tolerance group stores Posting amount defaults. Tolerance groups are assigned to User ID’s that ensures only authorized persons can make postings. What are posting keys? State the purpose of defining posting keys? Posting keys determine whether a line item entry is a debit or a credit as well as the possible field status for the transaction. Posting keys are SAP delivered. If u want changes like making additional fields optional on payment type posting keys then the best possible action is to copy the posting key that needs to be modified and then modify it. What are field status groups? Field status groups control the additional account assignments and other fields that can be posted at the line item level for a G/L account.

SAP Financial Tips by : Komal

Questions and Answers for SAP Financial Q1-What are adjustment postings and its use? Give t.codes and paths if possible? Answer: fb50,f-02 and others could be used for adjustments. These adjustments are to correct any financial representation that has already been booked into the accounts. Q2-Suppose I have purchased goods of 10 units(raw materials or semi-finished goods) worth Rs10000 from vendor A (suppose) and also made payment for the same. Now during the manufacturing process, it was observed that 3 units are defective, now my question is how do we deal with the defective units in SAP as I have already made payment for the 10 units(i.e Rs10000). Answer: If you have a GRN against these materials, then the same can be return delivered. An appropriate movement type needs to be configured for the same. As for the payment, raise a credit note on the vendor. * Using Debit Memo you can get the money for defective 3 units. *-- Gnan Eswari Q.3-We always copy company code or we can create manually also? If possible give reasons also. Answer: There are loads of tables that get copied over when copying co codes. This might be incomplete in a manual copy, and hence the manual route is not advisable. Q.4-In case of APP, when bank master data updated? Q.5-Suppose in 2004 I have depreciation key 'AB&in 2005 depreciation key I have changed to"CD". In what way my balances would be affected like balances of depreciation,accumulated depreciation,assets etc. Answer: The difference in the depreciation that is posted already, and what should be posted with historical effect will be posted in the current accounting period. Q.6 How many chart of accounts can be assigned to company code we can assign company code to chart of account through OB62? Now my question is in what way we can assign three types of chart of account to company code in one transaction code (I might be wrong plz correct me) Answer: Three, although the group and country chart of accounts are optional. The group chart of accounts is assigned to the operational chart of accounts, and the only mandatory CoA is the Operational CoA. Q.7 How many financial statement versions can be assigned to co.code?

Answer: As many FSVs as you want can be assigned to the co code i.e. 1:n as of Co Code: FSV.

I have created Company Code and all other configuration related to the CCode. Also in MM I have created purchase order, created vendor, material etc. I couldn't activate the PO due to the following error messages in red: 1. MAINTAIN TOLERANCE LIMITS FOR TOLERANCE KEY PE ACCOUNT ASSIGNMENT 2. CONTROL INDICATORS FOR CONTROLLING AREA DO NOT EXIST. I have assigned controlling area to company code and I could see the controlling area in existance via master file and gl verification. 1. MAINTAIN TOLERANCE LIMITS FOR TOLERANCE KEY PE ACCOUNT ASSIGNMENT ----> Please follow this link --> SPRO ---> MM---> Purchasing --> Purchase Order --> Set Tolerance limits for price variance --> Here you have to set for Tolerance keys PE and SE. Just copy them from std co. code. 2. CONTROL INDICATORS FOR CONTROLLING AREA DO NOT EXIST. ----> In Controlling --> General Controlling --> Maintain Controlling Area --> Maintain Controlling Area --> Activate Components/Control Indicators --> You need to check if you want to activate the order management/activity based costing/commitment management etc. Tips by : Shrikant Deshpande, Kishore

Integration of FICO with Other Modules What are the steps for integration of FICO with other modules SD, MM etc. ? Some basic information : FI-MM: The integration between FI-MM happens in T-code OBYC. 1. When PO is created : ---- No Entry ----2. When GR is posted Inventory Account dr (Transaction Key BSX in OBYC) To GRIR account (T.Key WRX in T-code OBYC) 3. When Invoice is posted

GRIR account Dr. Vendor account Cr. 4. Payment made to Vendor Vendor A/c Dr To Bank Clearing A/c Cr. Points to know : Movement Types, Assignment of Movement types to T-keys (T-code OMJJ), Value string (I also need some information on this) , OMWN and OMWB transactions. --There is a close integration b/w FI & MM, actually document flows from MM to FI in the following areas such as, 1. Movement Types: Used to enable the system to find the predefined posting rules determining how the accounts of financial accounting system are to be posted & to update the stock fields in the matrl master data.(Goods Receipt, Goods Issue, etc) 2. Valuation Class: Assignment of material to grp of gl account, used to determine the gl accounts that are updated as a result of goods movement. 3. Transaction/Event key: Used to control the storage or filing of documents & assignment of documents.Used to differeniate b/w various transactions such as goods movement tht occur in inventory. 4. Material Type: Each material should assign mtrl type in mtrl master record used to update whether changes made in qty are updated in material master record & change in value also updated in stock account. FI-SD Integration: The integration is done in T-code VKOA 1. Sales Order Created ---No Entry--2. PGI done (Goods issue)

Cost of Goods Sold Dr (Configured in OBYC GBB T-Key) To Inventory Account 3. Billing document released to Accounting Customer Account Dr. To Sales Revenue Account (ERL T-key in Pricing procedure) Note : The GL account is assigned to this ERL in VKOA 4. Payment Received Bank Clearing A/c Dr Customer A/c Cr. Points to Know : Good to understand the pricing procedure and how the different transaction keys are used like ERL, ERS etc. Tips by : Kishore, Balaji.C Through T.code Obyc, I configure the BSX Key for Inventory Material. Configure Valutiaon Class, and Valuation Modifier and Given G.L. Account Number and save. After configuration all these, what are step to configure because I have been Interviwed by this question and I don't know what are next step. Transaction code : OBYC (in easy access) In this transcation we have to specify GL account codes for material valuation created by MM consultants. The process in MM is here below: 1) Purchase Order : Tr code ME21N - here no integration required with FI 2) Goods Issue : Tr Code MIGO - here no integratinwith FI 3) Invoice Reciept - Tr Code MIRO - here when the invoice is recieved & MM process the transaction based on OBYC configuration system will generate FI document. System also generates Material document as well 4) Payment : Tr code F110 - Here also the the transcation affects FI FI-SD integation: This integration done using Tr Code VKOA. here we have to define GL account codes to Condition types. Process : 1) SD Raises Sales Order - No implication in FI 2) SD raises Delivery doc - No implication in FI 3) SD processes billing - no implication in FI

4) SD releases billing doc to FI - FI document gets generated (Tr Code VFX3) The theory of how MM activity triggers A/c posting is: Each movement type has quantity and value string, which decides what to update. Also each movement type has transaction event key (account modifier) which in turn depending upon valuation grouping code and valuation class decides which G/L account to post. The flow is as follows: Material type --> Account Category reference --> Valuation class -->Material. Movement type -->Transaction event key-->Account modifier. You have to do the configuration settings using Tr. code OBYC. Try with Tr.code OMBW to check which G/L accounts are being hit on Plant, Material and movement type. It defines the structure of G/L accounts. It is a list of G/L accounts used by one or more company codes. In that Chart of account you have to specify the length of G/L accounts. In SAP all the entries are document oriented. so from the balance sheet of any entry you can identify the root of an entry. so it's like a flow chart in computer terms. There are threee types of Chart of Account are there. 1.Operative Chart of Accounts 2.Group of Chart of Accounts 3.Country Chart of Accounts. 1.Operative Chart of Accounts is a Chart of Account you use for the company code. 2.For different chart of accounts(operative COA) for different company code, you can group the chart of account into one chart of account for internal reporting, but cross company code controlling is not possible, because of different chart of account for different company code. 3.For different country you can have different reporting system. so for different company code you can have different company code, but can have same Operative Chart of account, so cross company code controlling is possible. Tips by : Jayaraman What is the difference between standard chart of accounts and the operating chart of accounts? What is the difference between Corporate group chart of accounts, Operating chart of accounts and Group chart of accounts?

To summarise, here is the COA setup in SAP:1. Operative chart of account - It is the main chart of account assigned to each company code in OBY6. 2. Group chart of accounts - This is structured in accordance with requirements pertaining to Consolidation 3. Country-specific charts of accounts - These are structured in accordance with legal requirements of the country in question. Standard COA is a sample COAs provided by SAP. like INT, CAUS etc. You can use them as your operative COA or can create your own operative COA from these standard COA. Corporate Group COA is same as Group COA.

What is GL At Company Level and Chart of Accounts Please explain what is meant by general ledger at company code level and chart of accounts level? General Ledger has two segments i.e., 1. Chart of Accounts Data (T.Code= FSPO)and 2. Company Code Data (T.Code =FSSO) GL account master records are divided into two areas to that company code with the same chart of account can use the same GL account. The chart of account area contains the data valid for all company codes, such as Account Number. The Company code specific area contains data that may vary from one company code to another, such as the currency in which the account may be posted. Lets, suppose there are not segment both the segments are combined, at that time it will become difficult to copy the Company Code data because the fields may vary in company code. for example Currency, though you have same Chart of Account Data. Because, GL Accounts has two segments, it will be easy to copy Chart of Accounts data from A company code which matches your requirement and Company Code data of B Company code and you can create a separate chart of account in C company code. To copy Chart of account data and Company code data seperately, see Alternative method of creating GL Master in IMG screen. *-- Satish

Change Reconciliation Account of Customer Master

There is no problem to change the account number in the vendor or customer master data, that is : All Document Items that were created in the old account will be posted in the same old account when you have a payment posting, compensations, etc. All document created after the change will be posted in the new account as well as the payment postings, compensations and others. The system will separate the postings in accordance with the moment at the documents were created. You can do a test in the development client before you do the change in the production. For example :You can create a new reconciliation account because you want the G/L accounts to separate out sales. Just switched the setting in Customer Master and off you go. SAP will recognized the old account for the old postings and used the new account for any new postings. Here is the official SAP help on the subject:You should run balance sheet adjustment program after any reconciliation account change. The system performs any adjustments required due to the change of reconciliation accounts or G/L accounts. The items from the old reconciliation accounts are allocated to the new accounts. Since you cannot post to the reconciliation accounts directly, the postings are made to temporary adjustment accounts. These adjustment accounts should be displayed along with the relevant reconciliation account in the balance sheet. The postings are then reversed after the balance sheet has been created. The program for sorting the payables and receivables makes the necessary adjustments automatically. This means that you have to define the adjustment account numbers and the posting keys for these postings in the system. If you purchase and install the FI-LC Consolidation application and have bought up a previous customer or vendor (thus also taking on his/her payables and receivables), please refer to the note in the report documentation on changed reconciliation accounts. To define the account numbers, select the activity Define adjustment accounts for changed reconciliation accounts in the Accounts Receivable and Accounts Payable Implementation Guide. You should only run this program if your new reconciliation account is classified differently from the original in your FS. e.g.. AR to Intercompany accounts. It will just reclassify the

existing balance. The line items will not be transferred. If not then no need to run the program at all.

How to Configure FICO Reconciliation In Co, we create Recon accts to keep Fi gl in balance with CO. Not all transactions affect FI gls, best example of it is internal order settlements, they use secondary cost elements and does not affect your G/l accts. To update FI side of it we maintain recon accts. These are primarily for cross company, cross functional and cross business area transactions. The number of recon accts to be defined is dependant on various factors, like how your management wants to see the reports.. whether they want to classify the cost based on CO object class or by Co types etc.. However the basic config you got to follow is: 1. Activate Recon accts (if you have created CO area newly, it would be active). use T.code: KALA 2. Assignment of Recon document type to the Controlling area. T.code: OKKP 3. Creating clearing accts (that you want to us! e for reconciliation. During FI-Co recon.. inter company clearing accounts will be automatically credited or debited and now you need to create offset acct which will show up in P&l acct). Acct determination set up thru T.code: OBYA 4. Maintain accts for Automatic Recon posting. T.code OBYB 5. Assign Number ranges to Recon activity. Tcode OK13

*-- Radha Krishna

Without creating of reconciliation account, can you create vendor? What is the use of reconciliation? Customer and vendor accounts are sub ledger GL's. We will have to create two reconciliation GLs in viz. Reconciliation GL for Customer and Vendor in chart of accounts. After, while creating customer and vendor master records, we have to mention respective reconciliation GL in their company code segment details. This recon a/c will show you the net balances in GL for customer and vendor a/cs. Without creating Vendor you can still create individual GL for each customer and vendor , but then 1) Your list of GL's in chart of account will be very lengthy.

2) Duplication of work as SD/ MM people are also required to create their own list. 3) Cross company code consolidation will not be possible as the chart of accounts will be different. 4) Very difficult to keep track of individual customer/ vendor a/cs. 5) Not advisable even in real time accounting system i.e. manual book keeping. *-- Mahajan What is Reconciliation Ledger? The purpose of Recon Ledger is to display the summarized balances of cost ledger. It is a ledger used for summarized display of values that appear in more detailed form in the transaction form. It has the following functions: 1) Reconciles controlling with Financial accounting. a) The recon ledger provide the reports for monitoring the reco of CO with FI by accounts. b) It can identify & display value flows in Controlling across Company codes, functional area or business area boundaries. c) Value flows can be used in FI as a basis for summarized reco. postings. 2) Provides an overview of all costs incurred. Updation of Recon ledger can be done online or periodically. To update online, you need to activate the recon ledger. For periodical updation, proceed as follows : a) During month end, activate the recon ledger. (T Code-KALA) b) Do follow up postings. c) Deactivate the Recon ledger. (T Code-KALB). RECONCILIATION LEDGER EXAMPLE 1 When you need to drill back from the FI G/L to find which cost center was Posted to on an expense account, the reconciliation ledger is accessed. The need to have a CO to FI reconciliation process is a result of cross company Code, crossbusiness area, or cross functional area activity that may occur in the CO module. Order settlement or confirmation, cost center assessment, or other internal CO movement may initiate these postings. When costs moved internally within CO, the FI G/L is not updated because of CO use of secondary Cost elements to facilitate the postings. The first two steps in reconciliation ledger configuration are to activate the Ledger within the controlling area and assign a document type. If you have an Existing controlling area that does not have the reconciliation ledger activated. Activate the reconciliation ledger: Controlling -> Overhead Cost Controlling -> Cost and Revenue Element -> Accounting -> Reconciliation Ledger -> Activate Reconciliation Ledger (KALA) RECONCILIATION LEDGER EXAMPLE 2

A good receipt posting of Rs.100 has occurred on internal order 1, which is assigned to company code One hundred percent of the value of internal order No.1 is settled to internal order 2. Which is assigned to company code 2. A Settlement cost element is used for the settlement posting. When an order Settlement is run, internal order 1 is credited with Rs.100 and internal order 2 is debited with Rs.100. The balances of internal order 1 and internal order 2 are 0 and Rs.100, respectively. However, the balances of company code 1 and 2 remain as they were prior to settlement. The reason: settlement activity was internal to CO. No FI update occurred. To place the FI company codes back in balance, the CO-FI reconciliation posting transaction should be run. The resulting FI postings would credit company code 1 for Rs.100 and debit company code 2 for Rs.100. The internal CO activity will now have been accounted for in FI and company codes are now in balance

Configuration for Special Purpose Ledger SAP FI Question: Why do we use special purpose ledger? What are the configurations we need to make? We are using the Special Purpose Ledger for statutory reporting or mangement reporting purpose. It also help us in doing single entry, adjstment posting like income tax deperication. Steps for cofig. - Define Table Group Financial Accounting -> Special Purpose Ledger -> Basic Settings -> Tables -> Definition -> Define Table Group - Maintain Field Movement GCF2 IMG Menu Path : Financial Accounting -> Special Purpose Ledger -> Basic Settings -> Master Data -> Maintain Field Movements - Maintain Ledger for statutory ledger GCL2 IMG Menu Path : Financial Accounting -> Special Purpose Ledger -> Basic Settings -> Master Data -> Maintain Ledgers -> Copy Ledger Assign Co Code Assign Activities

- Define Versions GCW1 IMG Menu Path : Financial Accounting -> Special Purpose Ledger -> Periodic Processing -> Currency Translation -> Define Versions - Set Up Exchange Rate Type OC47 IMG Menu Path : Financial Accounting -> Special Purpose Ledger ® Periodic Processing -> Currency Translation -> Set Up Exchange Rate Type - Create Number ranges GC04 IMG Menu Path : Financial Accounting -> Special Purpose Ledger -> Actual Posting -> Number Ranges -> Maintain Local Number Ranges - Create Currency Translation document type GCBX IMG Menu Path : Financial Accounting -> Special Purpose Ledger -> Actual Posting -> Maintain Valid Document Type - Create Posting period variant GCP1 IMG Menu Path : Financial Accounting -> Special Purpose Ledger -> Actual Posting -> Posting Period -> Maintain Local Posting Period SAP Tips by: Rajiv Jain

Difference between Posting Key and Field Status Variant What is the use of Field Status Variant. Why it is required? What is the difference between "Posting Key Variant and Field Status Variant". Why both the things are required to define as both control the fields. What specific fields are controlled this fields. 'Posting Key Variant ' Controls- fields of Posting Key and 'Field Status Variant' controls fields of G/L Account.Fields of G/L Account which are controlled by FSV can see in T.Code OBC4 and Fields of Posting Keys in SPRO-FAGS-Document- Line Item. Both can controls common fields, then SAP applies 'SDRO' rule. SDRO rule. The fields can be Suppressed, Displayed, Required, Optional.

Posting is key controls - which type of accounts can be posted to - whether the line item is debit or credit - and the field status of the document line item Where as FSG (group into Field status Variant) controls only the the document line item for that account. There are only three field status options during document entry: - Suppressed - Required - Optional If both Posting key and FSV has the same field as Required and optional, system uses the link rules, takes the one which has the highest priority(in this case required). But in case of Master record Field status which is controlled by Account Group, there are 4 options of field status: - Suppressed - Display - Required - Optional Account group defines: a. length of gl account number b. no. ranges of the gl account numbers c. field status of the GL account master data in the company code segment.(which fields to appear when you create a gl account) (to control...double click on your GL account group in Screen transaction code OBD4) Posting key defines: a. whether the line item is a debit or credit b. to which type of account the amount should be posted to(ex: when you use posting key 40, you will be able to post to gl accounts. When you use Posting key 01, you will be only able to post to customer account. c. document screen layout during posting of a document. (which fields to appear in a document...double click on the posting key and select field status and make the entries as required /optional etc) Field status group defines: Document screen layout during posting of a document. (which fields to appear in a document...double click on the field status group and select fields and make the entries as required /optional etc) LOGIC: you assign field status variant to the company code, FSV is a bundle of field status groups.

ex: in FSG G001 you have made the text as required entry...you assigned the field status group g001 to cash account..so when you use cash account and try to post a document it will definitely prompt you to enter the text (text made as required.) Both FSG and PK control the same feilds in a document.There is no dominance between FSG and Posting keys..but we should know the allowed combinations.... If text is made required in PK and suppressed in FSG..the system will issue a error msg..Rules for PK...and FSG....is set incorrectly for SGTXT field. Permissable combinations: Pk FSG

R/S S/R

O/S R/o

R

S O

S/O o/r

R

S O

Result e SD RD NP NP NP s = suppressed e = error SD = Suppressed dominates Rd = required dominates np = no problem.

R = required

Various Postings To The GL Account Postings During various postings, the GL account postings will be taken place as follows: For Domestic Procurement of Raw Material During GR Material Stock Dr. GR/IR clearing During Excise Invoice Credit Cenvat Account Dr. Cenvat Clearing During Invoice Verification Cenvat Clearing Dr. GR/IR Clearing Dr. Vendor Payable

Cr. Cr.

Cr.

For Domestic proceurement of Capital Goods During GR Material Stock Dr. GR/IR clearing During Excise Invoice Credit Cenvat Account Dr. Cenvat On-hold Dr.

Cr. (50%) (50%)

Cenvat Clearing During Invoice Verification Cenvat Clearing GR/IR Clearing Vendor Payable

Cr. Dr. Dr. Cr

Subsequent of Capital Goods Cenvat Account Cenvat On-hold

Dr.

For Import Procurement of Raw Material During Customs Duty Clearing invoice Custom Clearing Dr. Custom Payable During GR Material Stock Dr. GR/IR clearing During Excise Invoice Credit Cenvat Account Dr. Custom Clearing During Invoice Verification GR/IR Clearing Dr. Vendor Payable

(50%) Cr. (50%)

Cr. Cr. Cr. Cr.

For Excise Duty Credit of Raw Material without PO Cenvat Account Cenvat Clearing

Dr. Cr.

For Excise Duty Reversal through Excise JV Cenvat Clearing Cenvat Account During Excise Invoice Creation Cenvat Suspense Account

Dr. Cr. Dr.

Cenvat payable

Cr.

For TR6C Challan PLA Account Dr. PLA on hold Account During Fortnightly Utilization Cenvat payable Cenvat Account

Cr.

Dr. Cr.

PLA Account

Cr.

What is Debit note and Credit note? Debit Memo - It is a sales document used in complaints processing to request a debit memo for a customer. If the prices calculated for the customer were too low, for example, calculated with the wrong scaled prices, you can create a debit memo request. The debit memo request can be blocked so that it can be checked. When it has been approved, you can remove the block. It is like a standard order. The system uses the debit memo request to create a debit memo. Credit Memo - A transaction that reduces Amounts Receivable from a customer is a credit memo. For eg. The customer could return damaged goods. A debit memo is a transaction that reduces Amounts Payable to a vendor because, you send damaged goods back to your vendor. Credit memo request is a sales document used in complaints processing to request a credit memo for a customer. If the price calculated for the customer is too high, for example, because the wrong scale prices were used or a discount was forgotten, you can create a credit memo request. The credit memo request is blocked for further processing so that it can be checked. If the request is approved, you can remove the block. The system uses the credit memo request to create a credit memo. As mentioned above, creating a credit or debit memo request enables you to create credit or debit memos based on a complaint. For this first create a sales document with the order type for a credit or debit memo request. You can create the debit or credit memo requests in the following ways: – Without reference to an order – With reference to an existing order Here you enter which order the complaint refers to. – With reference to an invoice Here you enter which invoice the complaint refers to. In all cases, you specify the value or quantity that should be in the credit or debit memo You can block the credit or debit memo request from being billed in Customizing. Go to Sales -> Sales Documents -> Sales document header -> Define sales document type and select the billing block field in the billing section. This request can later be reviewed along with similar ones, - if necessary, by another department. The request for a credit or debit memo can then be approved or rejected. To create Credit / Debit Memo request: - Use the same procedure that you use for Creating Sales Orders i.d T Code VA01 - Give Order Type as CR for Credit Memo and DR for Debit Memo reuest While creating the request you have to enter Customer Number, Reason for the request. and Material and its quantity. Once the credit or debit memo request is released you can create credit or debit memo. The credit memo request will be automatically blocked for checking

with Billing Block 08 (to check credit memo) & 09 (to check debit memo) for the sales order type “CR” . If it is not so you can customize the block for credit memo requests in Customizing for SD when you define the order type Sales and Distribution -> Sales -> Sales Documents -> Sales Document Header -> Define sales document types. The release of block is allowed to be removed only by the people who are authorized for it. If the amount is within acceptable limit the block is automatically released otherwise all the people assigned to this job receive a work item in their integrated inbox for release. If the complaint is not automatically blocked by the settings in Customizing, you can set a delivery or billing block manually. - Logistics -> Sales and distribution -> Sales. - Choose Order -> Change. - Enter the number of the sales document, or use a matchcode to search for it. - Choose Enter. - If all the items have been blocked, choose Select all. - If only some items should be blocked, select the corresponding items. - Choose Edit -> Fast change of... -> Delivery block or Billing block. - Enter the delivery or billing block for the header or individual items. - Choose Copy. - The system copies (or deletes) the delivery or billing block in all the selected items. - Save your document.

What is "Real Time" Integration? What is "real time integration" advantage of SAP? What is the Config for Integration entry? How these entries get formulated in backend? Real time integration is nothing but the data posting to all the affected areas instantly when an activity is performed. For E.g. When you do a FI-SD integration, when a PGI is posted, the following entry is affected : 1.

Cost of Goods Sold Dr To Inventory Account Cr

100 100

Here the Cost of Goods Sold is an FI entry and Inventory Account related to MM but both of them gets affected immediately when you post a PGI in SD. The updation of these entries when PGI is done is called Real Time Integration. The affect is shown in all FI, MM and SD modules once you save the entry. The configuration for the below entry is done in OBYC

1. Cost of Goods Sold Dr 100 (T-Key GBB) To Inventory Account Cr 100 (T-Key BSX) The automatic entries are posted to inventory accounts through T-keys to which GL accounts are assigned. These T-keys are assigned to movement types in MM. Please refer to T-code OMWN and OMWB for proper understanding.

Sample Account Assignment in G/L Account Where do we specify the sample account in FS00. I created a sample account for all expense accounts to use a particular field status group. Now I want to specify that sample account while creating g/l accounts. how do I do that? We define Sample account at OB15 and the path is SAP Ref: IMG\Financial Accounting\GLAccounting\GLAccounts\MasterRecords\Preparations\Additional Activities\Sample Accounts Step1: Maintain List of Rules types In this step you just create a code for your Sample Account Create a New Entry XXXX Sample account for Pleasecontact1 then save Step 2: Define Data Tranfer Rules FSK2 In this step you define the data tranfer rule i.e., whether it can be editable or only display etc after a Master recored is created with Sample Account. Selects the fields that you want to transfer (check boxes)and can be changed and can't be changed etc., then save. Step 3: Assign Company Code to Rule Type In this step you will assign your sample account to your company code. Just select your company and select your Sample account and assing then save. Step 4: Create Sample Account. FSM1 Now create Sample Account same as you create at FS00, then Save. Now Sample account is created. Now you can find Sample account field in FS00 (if you assign it company code it won't be displayed) enter Sample account no, and press enter all the fiels that you have selected in Step 2 will be copied (transferred) accrding the the rule (checkboxes) you have selected there.

At Tcode FS00 At FS00 you can see/Edit/Create a GL Master Record which is maintained by the Company Code. Where as Sample Account is not GL Master Record but it is a set of settings/rules which are easily available to create a GL Master Record (understand this point clearly) This sample account does not hold your transaction data nor you can edit or view at FS00. To use your Sample Account: 1. Go to FS00, give a GL account no (other than Sample account no ofcourse). Select create 2. Then check all fields, whether any field is filled like Currency, Open Item Management, etc *for your confirmation* (obviously every field is empty) 3. Now enter Sample Account no in Sample Account field and give Account Group. press Enter. U will get a message that "Data from changed Sample account was accepted", check data. 4. Now chek all fields again. Now u will find some fields filled with values which you have defined in Data Transfer Rules while creating Sample Account. This is the purpose of Sample account.

Configuration Steps For Preparation of GL A/C Explain the steps for the creation of GL Account. Check all the configuration steps for preparation of GL a/c: 1. Define company T.code ox15 (its is necessary for consolidation purpose) 2. Define Company code t.code ox02 3. Assign company code to company t.code ox16 4. Edit chart of account t.code ob13 5. Assign company code to chart of account t.code ob62 6. Maintain fiscal year variant t.code ob29 7. Assign company code to fiscal year variant t.code ob37 8. Define posting period variant t.code obbo 9. Open and close posting period t.code ob52 10. Assign posting period variant to company code t.code obbp 11. Define document type and number range t.code oba7

12. Define field status variant t.code obc4 13. Assign company code to field status variant Go to SPRO --> Financial accouting -> Global settings --> Select your company code and double click. You can see the field status

The Procedure For FI Bad Debt Configuration How do you configure bad debts in FI module? The procedure for Bad debt configuration:Define Methods: SPRO / Financial Accounting / Accounts Receivables & Payables / Business transactions / Closing / Valuate / Reserve for bad debts - OB04 - Double click define methods - Select New entries button Prov Period Months Percent1 M SAI 1 10 2 20 Save Creation of Bad Debts Account: FS00

Percent2 M 3 30

Percent3 M 4 100

Percent4

Co.code: XXXX - Select with template button G/L A/c:XXXXXX Co.Code : XXXX Account group: Administration - Select P & L Radio button Short text: Bad debts Long text: Bad debts - Select control tab button Current currency: INR - Select only local currency check box - Select line item check box, Sort key:001 Field status variant: G001 - Save Define Accounts for Reserve & Bad Debts: - OBXD SPRO / Financial Accounting / Accounts Receivables & Payables / Business transactions / Closing / Valuate / Define Accounts for Reserve & Bad debts Chart of Accounts: XXXX PROVISION METHOD XXX XXXXXX

DEBIT XXX

CREDIT XXX

Select rules tab button Accounts are determined based on - Select Debit/Credit check box 40/50 - Select provision method check box - Save

Special G/L Account: - FBKP Double click Special G/L Account Type Special G/L Special G/L Indicator D E Reserve Reserve for Bad debts Double click Reserve - Chart of Accounts: SAI (Enter) Account Assignment Reconciliation A/c:XXXXXX (SD)

Description

Spl.G/L-XXXXXX

Save

Receivable Transfer posting (Gross): - F103 Accounting / Financial Accounting / Accounts Receivable / Periodic processing / Closing / Value / Receivable transfer posting (Gross) Customer A/c:XXXXXX Provision method: XXXX Special G/L Indicator for Debit Rec: E (Reserve for bad debts) - Select create batch input session check box - Batch input session name: SAPF103 - Posting Key:09 Posting document: DA - F8 From the menu Select -> System -> Batch Input -> Session - Select batch input session: SAPF103 Select process - Select display errors only V - Select process button - Exit Batch input Reserve for bad debts (Gross): Customer A/c:XXXXXX Co.Code: XXXX G/L Account: XXXXXX Co.code: XXXX Accounts group: reserves and surplus - Select balance sheet option button Short text: Provision for Bad Debts Long text: Provision for bad debts A/c Currency: INR Rec.Accounts for account type: Customer - Select line item display check box Sort key: 031 Field status group: G067 - Save variant field there. Tell me about new G/L? Explain to me what is new G/L? General Ledger Accounting (FI-GL) (New)

The central task of G/L accounting is to provide a comprehensive picture of 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. 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 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. - Cost of Sales Accounting You can perform cost of sales accounting in General Ledger Accounting. For this purpose, General Ledger Accounting contains the Functional Area dimension. Features General Ledger Accounting comprises the following functions for entering and evaluating posting data: - Choice between group level or company level - Automatic and simultaneous posting of all subledger items in the appropriate general ledger accounts (reconciliation accounts) - Simultaneous updating of the parallel general ledgers and of the cost accounting areas - Real-time evaluation of and reporting on current posting data, in the form of account displays, financial statements with different balance sheet versions, and additional analyses.

In this way, General Ledger Accounting automatically serves as a complete record of all business transactions. It is the central and up-to-date component for reporting. Individual transactions can be checked at any time in real time by displaying the original documents, line items, and monthly debits and credits at various levels such as: - Account information - Journals - Totals/transaction figures - Balance sheet/profit and loss evaluations However, SAP still offers to choose between the New GL and the old Classic GL way of accounting. There are certain limitations in the new GL and clients are adopting to the new gl concept. What is the difference between open item and open item management? Open item: open item is an item which has to be cleared with another line item. Open item management: how you want to manage all the open item in particular GL A/C. Open item management is the setting which allows the setting to maintain the open items for the particular GL account. Use of open item : Processing open items involves choosing and then activating the open items. Processing is the last step before posting a clearing document. When posting clearing documents, the system takes tolerances into account. Tolerances are acceptable payment differences. When the line item(s) you enter and the open item(s) you process have been cleared, you can post a clearing document. For example, if you enter a vendor payment for $1000, you must choose and process vendor open items that equal $1000. If your system permits a 1% tolerance, then you can clear open items with a value from $990 to $1010. When you process open items, you can: - Activate or deactivate open items - Activate or deactivate cash discount - Maintain cash discount amounts - Enter partial payments or residual items Activate the open items to be cleared.

To process open items, on the screen for selecting open items, choose Goto --> Open items. You can process open items using the following: - Menus or function keys - Commands - Mouse To clear open items with commands or with the mouse, you select and process an item in one step. Use of open item management Defining "Open Item Management" If you set the "Open item management" indicator in the master record for an account, the line items in this account is marked as open or cleared. The balance of an account with open item management is equal to the balance of the open items. General ledger accounts are kept with open item management if you need to check whether there is an offsetting posting for a given business transaction. You should use open item management for bank clearing accounts, clearing accounts for goods receipt/invoice receipt, and salary clearing accounts. Bank accounts, however, do not use open item management. If you subsequently define open item management for a G/L account, this entry only applies to the items which are posted afterwards. At the date of the change, the account must display a zero balance. Also, when canceling this indicator, the balance must be zero. You therefore have to clear the remaining open items before making the change in the master record. Open item Take an example of misc. purchases. When you purchase from vendor you pass the following entry. Dr. Material / Expenses A/c. Cr. Vendor account (if it is credit purchase) Now the vendor account is showing credit balance till you make payment to the vendor. This in SAP they call is open item. While making payment

Dr. Vendor account Cr. Cash / Bank account If once you make the payment to vendor, while making the payment to the vendor, you need to link the payment with lying open item of above purchase. System automatically changes the status of above open item (red colour ball) to cleared item (green colour ball) in the vendor account. Where do u give a link between operating and country chart of accounts? We have to create country chart of accounts same as we create operating chart of accounts and we have to link between this two in ob62 then afeter we have creat gls at country coa level gls after that while creation of gl account in control tab you can find on field called alternative accout number there u need assign so that parallel posting will happen to both gls if you take report

in f.01 you can see gl,and alternative gl wise balances WHAT Z SPECIAL G/L TRANSACTIONS special g/l transaction are in which advance payments are involved.We use spl.g/l indicator for making any splg/l transacion. eg.for making adv.to vendor we use 'A' as sp.g/l indicator Hi, Special ledger Transactions are sub-ledger includes 1) Advances 2) Bills of Exchanges 3) Guarantees. eg: for Advance to vendor we use 'A' as sp.g/l indicator. eg: for Bill of exchange we use 'W' as sp.g/l indicator.