Step by Step

 

Fico configuration step-by-step Real-time

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Miscellaneous Define Countries | OY01 & OY07 Setting Country-Specific Checks | OY17 Create a New Currency | OY03 Set Decimal Places for Currencies | OY04 Check Exchange Rate Types | OB07 Ratios for Currency Translations | OBBS Enterprise Structure Define Company | OX15 Create Company Code | OX02 Assign Company Code to Company | OX16 Define Credit Control Area | OB45 Assign company code to credit control area | OB38 Maintain Controllin Controlling g Area | OX06 Assign Company Controlling Area | OX19 Define Functional Area | FM_FUNCTION Create Operating Concern | KEP8 Define Segment for Reporting | S_AL0_19000003 Define Sales Organization | OVX5 FI – Financial Accounting Global Settings Define Fiscal Year Variant | OB29 Assign Company Code to a Fiscal Year Variant | OB37 Define Posting Period Variant | OBBO Assign Posting Period Variant to Company Code | OBBP Activate Cost of Sales Accounting | S_ALR_87009606 Enter Global Parameters for Company Code | OBY6 Define Field Status Variants | OBC4  Assign Company Code to Field Status Variant | OBC5 Define Document Types for Entry View | OBA7 Define Document Number Ranges for Data Entry View | FBN1 Define Posting Keys | OB41 Document Change Rules, Document Header | S_ALR_87003720 Document Change Rules, Line Item | OB32 Define Tolerance Groups for Employees | OBA4 Assign User/Tolerance Groups | OB57 Change Message Control for Document Processing | OBA5 Assign Tax Codes for Non-Taxable Transactions | OBCL  Check Calculation Procedure | OBYZ Assign Country to Calculation Procedure | OBBG Define Tax Codes for Sales and Purchases | FTXP Activate New General Ledger Accounting | FAGL_ACTIVATION FAGL_ACTIVATION SM30_V_FAGL_T881 Define Ledgers for General Ledger Accounting | SM30_V_FAGL_T881 Define Currencies of Leading Ledger | OB22 Assign Scenarios and Customer Fields to Ledgers | S_ELN_06000019 S_ELN_06000018 00018 Display Scenarios for General Ledger Accounting | S_ELN_060 Define Ledger Group | S_AL0_19000001 Define Variants for Real-Time Integration | S_ELN_06000002

 

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Assign Variants for Real-Time Integration to Company Codes | S_ELN_06000003 Define Rules for Selecting CO Line Items | S_ELN_06000004 Define Account Determination for Real-Time Integration | OK17 Define Intercompany Clearing Accounts | OBYA S_AL0_19000016 00016 Define and Activate Non-Leading Ledgers | S_AL0_190 General Ledger Define Chart of Accounts | OB13 Assign Company Code to Chart of Accounts | OB62 Define Account Group | OBD4 Define Profit Center Standard Hierarchy in Controllin Controlling g Area | S_E38_98000135 Create Dummy Profit Center | KE59 Define Retained Earnings Account | OB53 Define Document Types for Enjoy Transaction | OBZO Define Financial Statement Versions | OB58 Define Document Splitting Characteristi Characteristics cs for General Ledger Accounting | S_AL0_19000071 Define Zero-Balance Clearing Account | S_ALR_87008933 S_ALR_87008933 Edit Constants for Nonassigned Processes | S_AL0_19000017 Activate Document Splitting | S_ELN_06000009 Define Document Splitting Method | S_PL0_86000049 Define Document Splitting Rule | S_PL0_86000050 Assign Document Splitting Method | S_AL0_19000075 Define Business Transaction Variants | S_AL0_96000709 Classify G/L Accounts for Document Splitting | S_ALR_87008943 Classify Document Types for Document Splitting | S_ALR_87008944 Define Valuation Methods | S_AL0_19000081 Define Valuation Areas | S_AL0_19000080 S_PL0_86000071 00071 Assign Valuation Areas and Accounting Principles | S_PL0_860 Prepare Automatic Postings for Foreign Currency Valuation | OBA1 Accounts Receivable and Accounts Payable Define Default Document Type and Posting Key | OBU1 Define Account Groups with Screen Layout (Vendors) | OBD3 Define Screen Layout per Company Code (Vendors) | OB24 Define Screen Layout per Activity (Vendors) | OB23 Create Number Ranges for Vendor Accounts | XKN1 Assign Number Ranges to Vendor Account Groups | OBAS Define Accounting Clerks | OB05 Define Sensitive Fields for Dual Control (Vendors) | S_ALR_87003179 Define Reconciliation Accounts for Customer Down Payments | OBXR Define Alternative Reconciliation Account for Down Payments | OBYR Define Tolerances (Vendors) | OBA3 Define Reason Codes (Manual Outgoing Payments) | S_ALR_87003271 Define Accounts for Payment Differences (Manual Outgoing Payment) | OBXL  Define Payment Block Reasons | OB27 Define Default Values for Payment Block | OBBC Set Up All Company Codes for Payment Transactions | S_ALR_87100687 Set Up Paying Company Codes for Payment Transactions | S_ALR_87100688 Set Up Payment Methods per Country for Payment Transactions | S_ALR_87100689

 

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Set Up Payment Methods per Company Code for Payment Transactions | S_ALR_87100690 Set Up Bank Determination for Payment Transactions | S_ALR_87100691 Check Search Fields for (Custom (Customer) er) Matchcodes | OBB2 Define Account Groups with Screen Layout (Customers) | OBD2 Define Screen Layout per Company Code (Customers) | OB21 Define Screen Layout per Activity (Customers) | OB20 Create Number Ranges for Customer Accounts | XDN1 Assign Number Ranges to Customer Account Groups | OBAR Enter Accounting Clerk Identification Code for Customers | OB05 Define Tolerances (Customers) | OBA3 Define Reason Codes | OBBE Define Risk Categories | OB01 Define Credit Representative Groups | OB02 Define Dunning Areas | OB61 Define Dunning Block Reasons | OB18 Define Dunning Procedures | FBMP Define Interest Calculation Types | OB46 Prepare Interest on Arrears Calculation | OB82 Prepare Item Interest Calculation | S_P6B_12000174 Define Reference Interest Rates | OBAC Define Time-Based Terms | OB81 Enter Interest Values | OB83 A/R: Calculation of Interest on Arrears | OBV1 Define Value Adjustment Key | S_ALR_87002693 Define Accounts AR Valuations | OBB0 Maintain Terms of Payment | OBB8 BANK Accounts Define House Banks | FI12 Create G/L Account for Cash Journal | FS01 Amount Limit – Cash Journal Define Document Types for Cash Journal Documents | OBA7 Define Number Range Intervals for Cash Journal Documents | FBCJC1 Set Up Cash Journal | FBCJC0 Create, Change, or Delete Business Transactions | FBCJC2 Make Global Settings for Electronic Bank Statement | FMLGD_H_ELKO Asset Accounting Copy Reference Chart of Depreciation/Depreciation Areas | S_ALR_87009194 Assign Chart of Depreciation to Company Code | OAOB Specify Number Assignment Across Company Codes | AO11 Specify Account Determination | S_ALR_87009195 Create Screen Layout Rules | S_ALR_87009209 S_ALR_87009044 09044 Define Screen Layout for Asset Master Data | S_ALR_870 Define Asset Number Range Intervals | AS08 Define Asset Classes | OAOA Define Depreciation Areas | OADB Specify Transfer of APC Values | OABC Specify Transfer of Depreciation Terms | OABD Determine Depreciatio Depreciation n Areas in the Asset Class | OAYZ Deactivate Asset Class for Chart of Depreciation | AM05 Define How Depreciation Areas Post to General Ledger | OADX

 

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Maintain Depreciation Key | AFAMA Define Base Methods | S_ALR_87015147 Define Declining-Balance Methods | AFAMD Define Multi-Level Methods | AFAMS Maintain Period Control Methods | AFAMP Change the Field Status Variant of the Asset G/L Accounts | S_ALR_870 S_ALR_87009121 09121 Activate Account Assignment Objects | S_AL0_96000020 Specify Account Assignment Types for Account Assignment Objects | ACSET Assign G/L Accounts | AO90 Set Up Areas for Parallel Valuation | S_PL0_86000183 Specify Document Type for Posting of Depreciation | AO71 Define Transaction Types for Acquisitions | AO73 Define Transaction Types for Retirements | AO74 Define Transaction Types for Transfers | AO76 Define History Sheet Groups | OAV9 Define History Sheet Versions | OA79 Define Validation Asset Accounting Master Data | OACV Define Substitutio Substitution n Asset Master Data | OACS Materials Management Maintain Default Values for Tax Codes | OMR2 Set Check for Duplicate Invoices | OMRDC Configure Automatic Postings | OMWB Sales and Distribution Define Automatic Credit Control | OVA8 Materials: Account Assignment Groups | OVK5 Customers: Account Assignment Groups | OVK8 Assign G/L Accounts | VKOA Payroll Define Symbolic Accounts Define Posting Characteristics of Wage Types Assign Accounts   CO – Management Accounting/Controlling Accounting/Controlling

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General Controllin Controlling g Activate Controlling Area Submodules | OKKP Maintain Number Ranges for Controlling Documents | KANK Maintain Versions | OKEQ Profit Center Accounting in CO Maintain Controllin Controlling g Area Settings | 0KE5 Cost Element Accounting Make Default Settings | OKB2 Create Batch Input Session | OKB3 Create Cost Elements | KA01 / KA06 Cost Center Accounting Define Cost Center Categories | OKA2 Internal Orders Define Order Types | KOT2 Maintain Number Ranges for Orders | KONK What is ‘Configuration’ in SAP?

 

‘Configuration’ is the process of maintaining settings (parameters) in the system to support specific/custo specific/customized mized business requirements. Remember SAP is an ‘allencompassing’ application which needs to be ‘configured’ to meet your specific requirements. 68. What is the ‘IMG’?  The ‘IMG (Implementation Guide)’ in SAP provides pr ovides you with the various configuration steps in a treelike structure for easy access with the nodes at the bottom representing the configuration objects. This is the central repository for customizing, providing a step-by-step guide for carrying out various activities. Besides the steps/activities, steps/activitie s, the IMG also contains explanations concerning the order in which you need to make the customizations. When you execute an activity from the IMG, you are indirectly changing the values (parameters) in the underlying table What are ‘User Parameters’? SAP provides a way of lessening your day-to-day data entry operations by facilitating default entries for fields, and bringing out the most suitable Display Variant for document display, document entry, open/line item processing, etc.  The user parameters, also known as ‘Editing  Options,’ are a boon as they save time and result in greater accuracy as data entry errors are  eliminated with the default values.

What do You mean by ‘Organizational Units’ in SAP?  The ‘Organizatio ar e the elements or structures representing ‘Organizational nal Units’ in SAP are 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.

What are the Important ‘Organizational ‘Organizational Units’ in FI? Company  Company Code

 

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.

What is a ‘Posting Key’? 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 1. What is SAP S – Systems A – Applications P – Products SAP, started in 1972 by five former IBM employees in Mannheim, Germany, states that it is the world's largest interenterprise software company and the world's fourth-largest independent software supplier, overall. SAP have a very high level of integration among its individual applications which guarantee consistency of data throughout the system and the company itself  2. 2. SAP History The 1970s: A Real-Time Vision In 1972, five former IBM employees launch a company called Systems, Applications, and Products in Data Processing in Mannheim, Germany. One year later, the first financial accounting complete, forming the basis for the continuous development of othersoftware softwareis components in what later came to be known as the "R/1 system. The 1980s: Rapid Growth The SAP R/2 system attains the high level of stability of the previous generation of programs. The 1990s: A New Approach to Software and Solutions SAP R/3 is unleashed on the market. By 1996, the company has earned 1,089 new SAP R/3 customers. At the end of the year, SAP R/3 has been installed in more than 9,000 systems worldwide. The 2000s: Innovation for the New Millennium With the Internet, the user becomes the focus of software applications. Currently, more than 12 million users work each day with SAP solutions. There are now 121,000 installations worldwide, more than 1,500 SAP partners, over 25 industry-specific business solutions, and more than 41,200 custo 3. ASAP Methodology 1. Project Preparation, in which the project team is identified and mobilized, the project standards are defined, and the project work environment is set up; 2. Blueprint, in which the business processes are defined and the business blueprint document is designed; 3. Realization, in which the system is configured, knowledge transfer occurs, extensive unit testing is completed, and data mappings and data requirements for migration are defined; 4. Final Preparation, in which final integration testing, stress testing, and conversion testing are conducted, and all end users are trained; and 5. Go-Live and Support, in which the data is migrated from the legacy systems, the new system is activated, and postimplementation support is provided. 4. Company Definition: The smallest organizational unit for which individual financial statements can be drawn up according to the relevant commercial law. A company can consist of one or more company codes. All company codes within a company must use the same transaction chart of accounts and the same fiscal year breakdown. The

 

5.

6.

7.

8. 9.

company code currencies can be different. A company has one local currency in which its transaction figures are recorded. Company Code Definition: The smallest organizational unit of Financial Accounting for which a complete self-contained set of accounts can be drawn up for purposes of external reporting. This includes recording of all relevant transactions and generating all supporting documents required for financial statements. The process of external reporting involves recording all relevant transactions and generating all supporting documents for financial statements such as balance sheets and profit and loss statements. Business area: are used to differentate transations that come form different lies of business in a company .big company which runs mulitipal business let us assume it had therr different like sals,marketing,manf. s als,marketing,manf. Functional Area Definition: The functional area is required to create a profit and loss account in Financial Accounting using cost-of-sales accounting. The following are examples of structure criteria: o Manufacture o Administration o Sales o Research and development Credit Controlling Area: fi is used to check the credit limit for the customer and it can use one or more company cods Fiscal Year: is nothing but a way of stor financial data .in sap for both quarterly and monthly data organization. there are 12 periods and 4 special periods

Fiscal year variant: Fiscal Year Variant consists 12 periods starting from April to March. 4 special periods can be maintained for closing purpose. ;:

Posting Periods: In every financial yearbooks are opened on 1 st April and closed on 31 st  March. Books are closed in every month and balances are carried forward to next month. So, Posting period variant is created. Posting Period Variant CSCL is used. 10. 4 Field Status Variant 11. Field Status Variant is copies from standard SAP with 47 field status groups. Field Status group defines the status of the fields while making posting to the GL accounts.

Tolerance Groups  Tolerance group for GL Account is created in each Company Code. In Tolerance groups the permissible amounts for accounts and for line items are specified With reference to the key, tolerances for the entry of documents and the granting of cash discounts can be determined for all employees of the group for payment settlement.

Document Types Every transaction is recorded in Journal at the first and separate journals are maintained for cash, sales daybook, sales returns, and purchase daybook, purchase returns. Standard SAP Document Types are used to classify the transactions.

 

Document number intervals are maintained for each document type. From this number interval, system picks and assigns a number to each transaction in SA.

Doc. Do c.ty typ pe

No.

No. Intervals

Range

From

De Desc scri ript ptio ion n

SA

GL account document

01

AA

Asset accounting document

01

AB

Reversed clearing

To

100000

199999

01

document DR

Customer invoice

18

200000

299999

KR

Vendor invoice

19

300000

399999

DZ

Incoming payment

14

400000

499999

KZ

Outgoing payment

15

500000

599999

DG

Customer memos

16

DA

Reversal/Clearing Doc. of

16

600000

699999

customers KG

Vendor memo

17

KA

Reversal/Clearing Doc.

17

700000

799999

04

800000

899999

Of vendor

AF

Depreciation posting

Number range Definition: Number which identifies the number range for the number assignment. The process by which numbers are allocated to business objects. There are two types of number assignment: o Internal number assignment occurs automatically in the R/3 System. o External number assignment is performed either by the user or an external system. Posting Keys Definition: The posting key describes the type of transaction which is entered in a line item. For every posting key, you specify properties which control the

 

entry of the line item or are noted in the line item itself. The most important properties which are derived from the posting key are: o The account type o The allocation to the debits or credits side o The possible or necessary specifications which are to be entered in the line item.

Account Type Definition: A key that specifies the accounting area to which an account belongs. Examples of account types are: o Asset accounts o Customer accounts o Vendor accounts o G/L accounts The account type is required in addition to the account number to identify an account, because the same account number can be used for each account type.

Posting Keys and Account Types Line Item Definition: The part of a document containing information on a single item.  This information includes the: o Amount o Account number o Whether the item is a debit or credit o Additional information depending on the transaction to be posted.

Chart of Account: 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 account number, account name, and some control information. The control information decides how the GL account can be created. 1.operative coa: gl accounts that use for posting in companu code for dailu activities and used in both financial accountinf and cost accouts 2.country coa: gl accounts need to meet the countrs legal requirements assigned to company code. 3.group coa: a list of all the gl accounts that are used by the entire company.

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   Curre Currency. ncy.’’  This is also known as ‘Company Code Currency.’

What is a ‘Parallel Currency’? When defining the currencies for a Company Code, it is possible to maintain, for each of these company company Codes, Codes, two more curr currencie encies  s   in addition to the ‘Local Currency.’   These two currencies are called the ‘Parallel Currencies,’ which can be the: Group Currency Hard Currency  Global Company Currency  Index-based Currency   To translate the values from one currency to the other, you will need to maintain an exchange  rate for each pair of the defined currencies in the system. When parallel

 

currencies are defined, the system maintains the accounting ledgers in these currencies as well, in addition to the local currency.

Account Groups •

Gen Genera erall ledger ledger accoun accounts ts are maint maintain ained ed under under various various head heads s like Capit Capital, al, Liabilities, Assets, Income, Expenditure, Creditors and Debtors ledger

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List o off General General Ledg Ledger er Accoun Accounts, ts, Accoun Accountt Grou Groups ps and and Docu Documen mentt Post Posting ing Sam Same e List List of G Gene eneral ral Ledg Ledger er Accoun Accounts ts is is use used d fo forr each each com compan pany. y. Acco Account unt group groups s and numb number er ran ranges ges to be be crea created ted b based ased on on the nature nature o off accoun accountt GL Accoun Accountt numb numbers ers sha shall ll be ext externa ernally lly ass assign igned. ed. Field status groups shall be created created for control controlling ling transa transaction ction process processing. ing. Reco Reconci ncilia liatio tion n account accounts s sha shall ll be identi identifie fied. d.

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Op Open en ite items ms a acco ccoun unts ts s sha hall ll b be e iden identi tifi fied ed.. Acco Account unts s where where line line item items s display display is is required required shal shalll be ide identi ntifie fied. d. Cos Costt elem element ents s for P&L P&L account accounts s shall shall be create created d in con contro trolli lling ng mod module. ule. GL a accou ccount nt is recogni recognized zed b by y de descri scripti ption on a and nd N Numb umber er Ra Range nge.. The ‘Acc ‘Accoun ountt Grou Groups’ ps’ for crea creation tion of GL Accoun Accounts: ts:

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The ‘Accoun ‘Accountt Group’ Group’ is is a summary of character characteristics istics that control the creation creation of master records. The following are the Account groups.

Assets:Fixed Assets, Investments, Current Assets, Loans & Advances. Liabilities:Share Capital, Reserves & surplus, Secured Loans, Unsecured Loans, Current Liabilities & Provisions; Number Ranges Definition: The number of the G/L account identifies the G/L  accounts. The number of this G/L account determines the lower account in a chart of  accounts. and upper limit of the G/L account interval.

Retained Earning Account: are used to carry forward the balabce from one ficial year to the next fiscal year you can assign a RE account to each P&L account assign

GL Master Records G/L Master record is maintained for each General Ledger account.Each G/L master record is recognized by a number and text GL master record consists of two segments chart of account segment and company code segment.

T Codes in General Ledger Accounting  1. To view posting documents - FB03  2. To view GL master record - FBL3N 3. To view GL master record Line items - FS10N

 

 4. To change Line Items of a document - FB09  5. To Change Document - FB02  6. To park GL Account Account - F F-65 -65  7. To view parking documents - FBV3  8. To Delete, Edit, Clear Parked Document - FBV0  9. Clear GL Account - F-03 10.Reverse GL Document - FB08 Financial statement version: is a reporting tool,which canbe used to getout the final accounts from sap such as balance sheet, profit and loss account. Exernal purpose using fsv. Hold document: G/L document or temporarily save the doc in the following conditions:   1.when gl doc is not complete 2. in –complete or in-correct information in the document.

Park document : option with limited authorization amount for posting. Accountant hs an authority to post doc to amount 2000. Now he has to feed a doc with an amount 5000 for which he docs not have the authority

Sample document : this is for onth end activities like ,salaries ,rent. Sample doc save the time. Open item management : at the end of the month we make the provision at the time of  payment we adjust the provision line payable amount it out-standing amount. Reversal document: when we post a wrong entry in sap we have to go for revesal or pass rectification entry .individual doc, mass reversal doc, accrual, cleard item.

One time-vendor : vendor with only a few transaction and there is no need to maintain their master records separately such cases .you can create on time vensor with G/L G/L information such as name, address, phone….etc.

Ap Vendor Account Groups Definition: The account group is a classifying feature within vendor master records. The account group determines: o the number interval for the account number of the vendor, o whether the number is assigned by the user or by the system, o which specifications are necessary and/or possible in the master record. Number Ranges for Vendor Account Groups Definition: Identifies a number range interval within an object or sub object. A unique number is assigned to each business partner master record. You can use this number to access the master record, or to refer to the business partner when processing business transactions. A number range can be valid for more than one account group. You can use the number range to assign different numbers to a head office and subsidiaries. The number for a business partner master record can be assigned in one of the following ways: Externally: You assign the

 

number. In this case, you define a number range that allows for alphanumerical number assignment. The system checks whether the number you enter is unique and within the number range defined by the account group. Internally: The system assigns a consecutive number automatically from a number range defined by the account group.

Vendor Tolerance Group:Freely definable group code for customers and vendors, or G/L accounts. Tolerance groups are unique within a company code. Each tolerance group contains settings that affect cash discount and payment difference processing.  These settings become effective during payment entry. Vendor Recon Account Definition: The reconciliation account ensures the integration of a Sub ledger account into the general ledger. When you post 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 posting

TERMS OF PAYMENTS Key for defining payment terms composed of cash discount percentages and payment periods. It is used in sales orders, purchase orders, and invoices. Terms of payment provide information for:

Sundry Creditors A 60 days credit limit is generally obtained for the Vendor payments.

Payment is done by cheques to Vendors. 9.2 Sundry Debtors Customer’s payments received by cheques only. On order the customers pay 30% of the invoice Amount in Advance.  

The company allows 30 days of credit limit for the remaining amount. If the invoice amount is paid completely in advance, the customer is eligible for 2%discount. Alternative Recon Account Definition: The reconciliation account in G/L accounting is the account which is updated parallel to the sub ledger account for normal postings (for example, invoice or payment). For special postings (for example, down payment or bill of exchange), this account is replaced by another account (for example, 'down payments received' instead of 'receivables'). The replacement takes place due to the special G/L indicator which you must specify for these types of postings.

Automatic Posting Definition: When you post special G/L transactions, the system generates automatic postings. To make automatic postings, the system requires specifications on the accounts to post to and the posting keys to use. This information is also already defined in the standard system. You need only make changes if you do not

 

use the standard chart of accounts or if you want to use other account numbers, posting keys or account determination rules. You must also decide which automatic postings you want to have carried out.

Automatic Payment Program  The payment program is designed so that both outgoing and incoming payments can be processed. These functions are supported for payment transactions with vendors and customers and between bank accounts. 1. set up all company codes 2. set up paying company codes 3. payment method per country  4. payment method pe country code 5. bank selection  is a money transaction from 5 characters House Bank number Definition:  you canhave of house bank available in the th e bank dictory alphanumeric code -each house bank in the system is associated with a country key .where the bank located unique country specific code is called bank key. -house bank you can maintain mor than on bank account each account is identifiably by an account id -account id you will also specify the bank account number max 18 characters - bank account number designed the house bank uou need to create a G/L account master record

Check Lots Definition: Checks supplied by a bank or a printing shop are usually divided into lots, since they may be written (issued) or printed at various different locations. In

the SAP System, a check number range represents a batch (lot) of numbered checks. In the Financial Accounting Configuration menu, you must define check lots (number ranges) that correspond to the actual check lots (in the printer, the safe, or your employees' desks). The print program uses this number range to link the check with the payment.

Vendor Payment Posting 1. Payment after Due date (F-53) 2. Payment before Due date (F-53) 3. Advance payment (F-48)

Important T Codes in Accounts Payable 1. Vendor Document Posting - F-43 2. Vendor Document Posting (One screen) - FB60  3. Vendor Credit Memo - F-41  4. Vendor Credit Memo 9One Screen) - FB65 5. Vendor Invoice Parking - FV60

 

6. Vendor Credit Memo Parking - FV65 7. Document Reversal - FB08 8. Clear Vendor Transactions - F-44 9. To view Vendor Document - FB03  10. To view Vendor master record Line items - FK10N 11. To view Vendor Master Records - FBL1N 12. Post Outgoing payment posting - F-53  13. Post Down payment Posting - F-48 14. Automatic payment Run - F110

Dunning Procedure  The dunning procedure determines how business partners can be dunned. It contains the number of dunning levels, dunning frequency, minimum amounts and dunning activities.

Dunning Level Dunning Level  in indi dicat cates es ho how w of ofte ten n an item item or an accou account nt ha has s been been dunn dunned ed and and describes the steps to be maintained for a dunning procedure. Dunning levels control the dunning process. Dunning Area is an organizational unit within a company code from which dunning is conduc con ducted ted.. The dunnin dunning g proc procedu edure re is con contro trolled lled and the dun dunnin ning g not notices ices are sent separately per dunning area. A dunning area can represent the following: Business Area Sales Organization Distribution Channel Division

11.2 Dunning Notices Weekly reminders are sent to customers with regard to overdue more than Rs.30000/-. Fortnightly reminders are sent to customers with regard to overdue less than Rs.30000/-Yearly once Balance confirmation statement is sent to vendors

Dunning charges will becharged.Interest notice send to the customers on overdue

Bill of Exchange Definition: Bills of exchange are handled as special G/L transactions in the SAP System. These transactions are thus maintained independently of other transactions in the subsidiary ledger and are posted to a special G/L account in the general ledger. This affords you an overview of bills of exchange receivable and bills of exchange payable at any stage. Transfer postings are not usually necessary to display these items on the balance sheet T Codes in Accounts Receivable  1. Customer Document Posting - F-22 2. Customer Document Posting (One screen) - FB70

 

3. Customer Credit Memo - F-27 4. Customer Credit Memo 9One Screen) - FB75  5. Customer Invoice Parking - FV70  6. Customer Credit Memo Parking - FV75  7. Document Reversal - FB08  8. Clear Customer Transactions - F-32 9. To view Customer Document - FB03 10. To view Customer master record Line items - FD10N 11. To view Customer Master Records - FBL5N 12. Post Incoming Receipt posting - F-28 13. Post Down payment Posting - F-29  14. Post Bill of Exchange - F-36  15. Post Bills Discounting - F-33  16. Post Reversal for Bills Discounting - F-20  17. Dunning Run - F150 Asset Accounting: company fixed assets right from acquisition to retirement/scrapping .all accounting transaction relating to depreciation insurance Chart of Depreciation Definition: The account group is a classifying feature within customer master records. The account group determines: o in which number range the customer account number should be; o whether the number is assigned by the user or by the system; o which specifications are necessary or possible in the master record. Depreciation Area :Depreciation area, which is managed in the system as a real depreciation area (not a derived depreciation area). Each depreciation area is set up to handle depreciation for a particular purpose (e.g. book depreciation, tax depreciation, group depreciation, cost-accounting depreciation, etc.) Screen Layout Rule Definition: Screen layout for maintaining asset master data. Using the screen layout rule, you can define: o which fields are - required - optional suppressed o the maintenance level in the asset hierarchy o which fields are copied, when creating an asset using another asset master record as a reference. You can define screen layout rules for general master data and for depreciation parameters within depreciation areas.

Number Range Interval Definition: Identifies a number range interval within an object or sub object. The Number Range Interval contains Two digit ID, From Number, To Number and Check box for External Numbering or Internal Numbering. Asset Classes Asset classes are used to structure fixed assets. Asset classes are applied to all

Company Codes. Asset classes provide default values for all asset master records For each asset class, control parameters and default values can be defined for depreciation calculation and other master data. Each asset master record must be assigned to one asset class.

 

Account Determination

 

GL accounts for acquisition, retirement, profit or loss on sale of assets, accumulated depreciation; depreciation and special reserve are specified in account determination.

Depreciation Posting Intervals: Depreciation posting runs, which result from changes to valuation due to year-end closing and take place after the end of the fiscal year, can be posted as unplanned depreciation posting runs in the special periods of the given fiscal year version.

Depreciation Posting Rules Definition: Monthly : Depreciation of fixed assets is posted in each Financial Accounting posting period. Bi-Monthly : Depreciation of fixed assets is posted in every second Financial Accounting posting period. The field is not ready for input if the number of Financial Accounting posting periods is not '12'. Quarterly : Depreciation of fixed assets is posted each quarter, that is in every third Financial Accounting posting period. The field is not ready for input if the number of Financial Accounting posting periods is not '12'. Semi-Annually : Depreciation of fixed asset is posted semi-annually, that is in every sixth Financial Accounting posting period. The field is not ready for entry if the number of Financial Accounting posting periods is not '12'. Annual : Depreciation for fixed assets is posted once a year. Base Method Definition: Base method of the depreciation key for calculating depreciation or imputed interest.

Declaiming balance Method Definition: Declining-balance method of the depreciation key for calculating depreciation or imputed interest. The multiplication factor is used in determining the depreciation percentage rate for declining-balance depreciation. The system multiplies the depreciation percentage rate resulting from the total useful life by  this factor. Multi level Method Definition: Multi-level method of the depreciation key for calculating depreciation or imputed interest. Period Control Method Definition: Period control method of the depreciation key for calculating depreciation or imputed interest.

Depreciation Key Definition: The depreciation key (valuation key) controls the valuation of the asset in the particular depreciation areas. The depreciation key consists of the following: o Calculation method for the automatic calculation of interest, ordinary  and special depreciation o Possibly a cutoff value key o Various control indicators Asset Master Definition: The asset master record contains all information relating to an asset that remains unchanged over a long period of time: Technical master data Organizational allocations (usually time-dependent) Depreciation terms The The system stores all the values and transaction data per each asset master record. You can differentiate between different types of assets in the FI-AA component. The structure of the master record is identical for all asset main numbers, asset sub-numbers and group assets. Therefore, the basic procedure for creating any of these objects is essentially the same.

 

T Codes in Asset Accounting 1. Asset Purchase Posting - F-90 2. Asset Transfer (Within Company Code) - ABUMN 3. Asset Transfer (Inter Company Asset Transfer) - ABT1N 4. Asset Retirement - F-92  5. Asset Scraping – ABAVN  6. Reverse the Document - AIST  7. Asset Master Creation - AS01 8. Sub-Asset Master Creation - AS11 9. Asset Group Creation - AS21 10. Sub-Asset Group Creation - AS24  11. Change Asset Master - AS02 12. Change Sub-Asset Master - AS22  13. Depreciation Run – AFAB  14. Recalculate Depreciation - AFAR 15. Asset Explore - AW01N  16. Upload Asset Balances – OASV

Integration with SD (VKOA)  The integration with SD happens through T Code- VKOA, a combination of  particulars of customer Account Assignment group, Material Account Assignment group and and Accou Account nt ke key y in an acces access s sequ sequen ence. ce. The The rel relat ated ed GL acco accoun unts ts are are assi assign gned ed to Condition types (The condition type denotes the discount offered on the net / gross price on sales), sales), The Acco Account unt assignm assignment ent group group (Th (The e cus custome tomerr account account assignm assignment ent group group denotes den otes the type of customer customer,, the materia materiall account account assignmen assignmentt denotes denotes the type type of  materi mat erial) al),, and Account Account keys keys - ERL ERL,, ERS, ERS, ERF ERF,, MWS (The accoun accountt key keys s den denotes otes the respective G/L accounts for the transactions involved in sales) map up the FI – SD integration.

 Integration with MM  The data integration happens through Account Determination Linkage of o f Account Key  with General Ledger Accounts by the following. 1. Movement Types:  The Posting and Updating of the stock fields in the Material Master. 2. Valuation Class:  The assignment of G/L Accounts use to determine the respective G/L Accounts, which is to be updated as result of goods movements.

3. Transaction / Events Key:  It differentiates various transactions such as goods movement that occurred in inventory.

 

4.Material Type: Each material should be assigned material type in material master record. Which in turn updates the changes made in quantity and values in stock account.

Tax Procedure: A calc calcul ulat atio ion n pr proce ocedu dure re is de defi fine ned d fo forr each each co coun untry try INDI INDIA, A, con conta tain inin ing g the the specifica specif icatio tions ns requir required ed to calcula calculate te and post post tax on sales/p sales/purch urchases ases.. Cal Calcula culatio tion n procedure contains tax types, which are called condition types in the procedure.  The defaults condition types when define ant taxon code. The type type (su (such ch system as in inpu put t or out outpu putt tax) tax) speci sp ecifi fies es the theyou base base am amou ount whic which h the thcondition e ta tax x is calculated and the account key that is used to post the tax. The specifications necessary  for calculating and posting tax have been defined for the condition type and account key.

Tax Codes  The tax code represents a tax category, which must be taken into consideration when making a tax return to the tax authorities. Tax codes are unique per country.The tax rate calculation rules and further features are stored in a table for each tax code.

LSMW  The Legacy System Migration Workbench (LSMW) is a tool recommended by SAP that you can use to transfer data once only or periodically from legacy systems into an R/3 System.  The LSM Workbench covers the following steps: (1) Read the legacy data from one or several files (e.g. spreadsheet tables, sequential files). (2) Convert the data from source format to target format. (3) Import the data using standard interfaces (Batch Input, Direct Input, BAPI, IDoc).  The Steps for LSMW are: Example: Customer Master upload: LSMW to Update Customer Master Records with Transaction Recording Call Legacy System Migration Workbench by entering transaction code LSMW. Every conversion task is grouped together as Project / Subproject / Object structure. Create a Project called LSMW_DEMO and a Subproject as CUSTOMERS and Object as CUST_REC

Step 1: Maintain Object attributes In this example, you will be updating the customer master records with the help of recording a transaction (XD02). Choose radio button Batch Input Recording and click on the recording overview icon to record the R/3 transaction. Enter the Recording name as XD02_REC, the description as Customer Master Updates Recording, and the transaction code as XD02.

 

Step 2. Maintain Source Structures Give a name and a description to the source structure.

Step 3. Maintain Source Fields In this step, you need to list what fields are present in the source structure. The easiest way is to click on ‘Table Maintenance’ icon to enter Fieldname, Type and Length for each field.

Step 4: Maintain Structure Relations Execute a step to ‘Maintain Structure Relations’. Since, there is only one Source and Target Structure, the relationship is defaulted automatically.

Step 5: Maintain field mapping and conversion rules Field RF02D-D0310 represents that you chose ‘Sales view’ for the customer Master screen accordingly its value should be set to X. Keep your cursor on field RF02D-D0310 and click on Constant rule icon to choose the constant value of ‘X’. If your source file already has the field value, you choose rule ‘Source Field’. Keep cursor on field ‘KUNNR’ and click on ‘Assign Source field’ icon to choose source field CUSTOMER from structure XD02S

Step 6: Maintain fixed values, translations, user-defined routines You can also maintain re-usable translations and user-defined routines, which can be used across conversion tasks. In this case, that step is not required.

Step 7: Specify files In this step, we define how the layout of the input file is. The input file is a Tab delimited with the first row as field names. It is present on my PC (local drive) as C:\XD02.txt.

Step 8: Assign files Execute step ‘Assign Files’ and the system automatically defaults the filename to the source structure.

Step 9: Read data In this step, LSMW reads the data from the source file (from your PC’s local drive). You have the option to read only selected rows and convert data values to Internal format.

Step 10: Display read data  This step is optional. If required, you can review the field field contents for the rows of data read.

Step 11: Convert data

 

 This is the step that actually converts the source data (in source format) to a target format. format. Based on the conversion rules defined, source fields are mapped to target fields.

Step 12: Display Converted data

Again this is an optional step to view how the source data is converted to internal SAP format.

Step 13: Create batch input session Once the source data is converted in an internal format, you can create a batch session to process updates.

Step 14: Run Batch Input Session You can execute the BDC session by Run Batch input session. Executing a batch input session is a standard SM35 transaction for managing BDC sessions. Once you have successfully executed the batch input session, the customer master records are updated in the system. You can confirm this by viewing the customer master records (XD03).

What is the ‘New FI-GL’ in FI in ECC?  The traditional or ‘Classic FI-GL accounting’  in FI has been focused on providing comprehensive external reporting by recording all business transactions in the system. However, to meet modern-day requirements, this has now been enhanced, called the ‘New FI-GL,’ and includes the following:

Parallel accounting: Maintaining several parallel ledgers to meet different accounting principles.

Integrated legal and management reporting: Unlike the traditional GL, the ‘New FI-GL’  enables you to perform internal management reporting along with legal reporting. So you are in a position to generate Financial Statements for any dimension (for example, profit center) in the business. Segment reporting: With the introduction of the Segment dimension, SAP now enables you  you to produce Segment Reports based on IFRS (International Financial Reporting Standards) and the GAPP (Generally Accepted Accounting Principles) accounting principles. Cost of sales accounting: It is now possible to perform cost of sales accounting in the ‘New FI-GL.’  However, the following functions are not yet supported in the ‘New FI-GL’:  Transfer Price SKF (Statistical Key Figure) Euro Translation AIS (Audit Information System) Archiving Data Retention Tool  The ‘New FI-GL’ needs to be activated in the the system before you start using the IMG Menu Path:>Financial Accounting (New)->Financial Accounting Global Settings (New)/General Ledger Accounting (New).

 

In the standard system, the tables from ‘classic general ledger accounting’ (GLT0)  are updated as well as the tables in ‘New FI-GL’ during the activation. This enables you to perform a ‘ledger comparison’ during the implementation of ‘New FI-GL’ to ensure that  your ‘new GL accounting’ has the correct settings and is working correctly. To compare ledgers, in Customizing choose Financial Accounting Global Settings (New)>Tools->Compare Ledgers. It is recommended that you ‘deactivate’ the update of tables for ‘classic GL accounting’ once you have established that ‘New FI-GL’ is working correctly. To do this, in Customizing choose Financial Accounting Global Settings (New)-> Tools->Deactivate ‘Update of Classic General Ledger.’

Update of Classic General Ledger.  

What are ‘Special GL Transactions’? ‘Special GL Transactions’ are not directly posted to the GL (Reconciliation Accounts) though these are related to subledger 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.  There are three types of Special GL transactions: Free Offsetting Entries (Down Payment) Statistical Postings (Guarantee) Noted Items (Down Payment Request

What is a ‘Lean Implementation’ in FI-AA? A ‘Lean Implementation’ is the scaled-down version of the regular FI-AA configuration in IMG, with minimal configuration required to enable asset accounting. This is suitable for small companies using the standard functionalities of asset accounting, and also in situations where the Asset Catalog is not that large

Explain ‘Asset Transfer’ in SAP.  There are two types of ‘Asset Transfers,’ namely: Inter-company asset transfer Intra-company asset transfer

Inter-company Asset Transfer is between Company Codes, resulting in the creation of Inter-company the new asset in the target Company Code (the receiving one). The transaction posts the values per the ‘posting method’ selected during the transfer. In doing so the system: Retires the asset in the source/sending Company Code by asset retirement. Posts acquisition in the new/target Company Code by asset acquisition, and creates the new asset in the target Company Code.

 

Posts inter-company profit/loss arising from the transfer. Updates FI-GL automatically 

Intra-company Asset Transfer is the transfer of an asset within the same Company Intra-company Code. This would be necessitated by: Change in the asset class or business area, etc. Settlement of an AuC to a new asset

What is a ‘Standard Hierarchy? 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.