1

SAF FI Frequently Asked Questions 2

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.
 2

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 Basis, ABAP Programming and Other IMG Stuff
http://www.sap-img.com
All the site contents are Copyright © www.sap-img.com and the content authors. All rights reserved.
All product names are trademarks of their respective companies. The site www.sap-img.com is in no way affiliated
with SAP AG.
Every effort is made to ensure the content integrity. Information used on this site is at your own risk.
The content on this site may not be reproduced or redistributed without the express written permission of
www.sap-img.com or the content authors.

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?
 3

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
 4

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
 5

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 be an alpha
numeric. *-- Shaannthi S.
Financial Questions
http://www.sap-img.com
All the site contents are Copyright © www.sap-img.com and the content authors. All rights reserved.
All product names are trademarks of their respective companies. The site www.sap-img.com is in no way affiliated
with SAP AG.
Every effort is made to ensure the content integrity. Information used on this site is at your own risk.
The content on this site may not be reproduced or redistributed without the express written permission of
www.sap-img.com or the content authors.

SAF FI Frequently Asked Questions 1

1. Whether any FI doccument will be created during PO(Purchase order)? If please
 6

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
 7

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
 8

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.
All the site contents are Copyright © www.sap-img.com and the content authors. All rights reserved.
All product names are trademarks of their respective companies. The site www.sap-img.com is in no way
affiliated with SAP AG.
Every effort is made to ensure the content integrity. Information used on this site is at your own risk.
The content on this site may not be reproduced or redistributed without the express written permission of

1. A chart of accounts ( Multi Choice)

A. can be allocated to multiple company code

B. can be defined as the group chart of accounts

C. only contains definitions for G/L accounts

D. can only allocated to one company code.

2. A client. ( Single Choice)

A. may only contain a single chart of accounts

B. may contain multiple charts of accounts

C. may only use one currency type

D. may only have one controlling area

3. Identify the correct statement(s) relating to how the main

business processes are integrated in the SAP R/3 System. ( Multi
Choice)

A. A purchase requisition is a documented request to purchase

goods or services. In SAP it can be created manually or
automatically.
 9

B. A goods receipt is the recording of the movement of materials

into the warehouse. In SAP, a financial document which updates the
inventory account and an accrued liability account is created

C. The Invoice receipt and verification process compares the

vendor invoice with the purchase order and goods receipt. However,
the corresponding financial transaction must be entered through the
financial module of R/3.

D. In SAP, payment processing reduces the liability to a vendor

and a company¡¯s cash balance, records discounts taken and
disburses
payment.

E. A customer delivery is the transfer of the ownership of

goods. A customer delivery includes, creation of a delivery
document, picking the goods for shipment; physically transferring the
goods to the customer and financially recording the goods issue.

4. Identify the correct statement(s) regarding organizational

elements within the R/3 System. ( Multi Choice)

A. The Sales area combines the sales organization, distribution

channel, and division.

B. The Purchasing Organization is responsible for the purchasing

for the only one plant.

C. A plant is a location in which inventory quantities and values

are stored or manufactured.

D. A Controlling area can comprise several company codes using

different chart of accounts but must operate in the same currency.

E. A profit center is used to generate income statements and

operating profit statements.

5. Identify the correct statements. ( Multi Choice)

A. All areas of an organization that are to be integrated into

 10

the R/3 Production system should be included under one client.

B. The term ¡°client dependent¡± refers to tables or data that

relate only to the client which was accessed during the log on
process.

C. Due to the integrated nature of SAP, there are certain core

organization element that cut across the modules. Client and company
code are two of these core elements.

D. To determine the number of clients required, the focus is

placed on data access and sharing strategies.

6. Which of the following statements is true ? ( Single Choice)

A. A Company code can belong to more than one controlling area.

B. A plant must be allocated to a company code

C. A controlling area and a company code must have the same local
currency.

D. A business area and a company code are assigned to each other

in the corporate structure IMG

7. Identify the correct statements relating to the

Implementation Guide( Multi Choice)

A. When creating a project in the IMG, the application areas and

countries are selected from the Enterprise IMG

B. The number of implementation activities can be reduced by

creating Project IMG views, such as a view for ¡°mandatory
activities¡±

C. The Project IMG must include all customizing activities for all
R/3 applications.

D. The SAP Reference IMG is generated for the application modules

to be implemented in a company and for the different countries
 11

E. Customizing transactions can be accessed from the SAP

Reference IMG, Project IMG and the Project views.

8. What characteristics do roles have in the Workplace? ( Multi

Choice)

A. Roles describe business processes in a company

B. Roles contain a collection of activities that a user who is

assigned to this role can execute

C. Roles represent a range of executable functions in a company

that users can assign themselves to

D. The authorizations required to execute the assigned functions

are automatically linked to roles

E. Roles contain MiniApps

9. What content elements of the mySAP.com Workplace are provided?

(Multy)

A. The Workplace contains role-based navigation options for

R/3 transactions, reports, and other links to various systems.

B. The Workplace is a completely personalizable working

environment.

C. The Workplace contains role-specific information and role-

based access to the Marketplace.

D. The Workplace is used exclusively as a LaunchPad for

Employee Self Service with information for employees.

E. The Workplace contains personal Favorites.

10. What are MiniApps?(Multy)

A. MiniApps are small applications that are started automatically

when the Workplace is called.
 12

B. Miniapps are small applications that can be called from the

Workplace.

C. MiniApps are small applications that communicate continuously

with the implemented SAP products

D. MiniApps are Java Applets that are loaded from the Workplace
to the user client.

E. MiniApps are role-specific applications that can contain more

activity options.

Click here to buy SAP FICO Interview, Questions and Answers from
Amazon

Link to Post - Back to Top Logged

« Last Edit: Dec 27, 2007, 11:53am by SP »

http://feeds.feedburner.com/ManagementAccountant
SAP Books - US

SAP Books - UK
D

SP Re: SAP
Administrator
FICO
member is offline
Certification
Questions
« Reply #1 on Oct
18, 2003, 6:19am
»

Answers:
No Guts, No Glory

1-A
2-B
Joined: Oct 2002 3 - A, B, D
Gender: Male 4 - A, C, D, E
Posts: 74 5 - A, B
Location: United Kingdom 6-B
7- do not know
8-
 13

11. What system tool allows you to add graphics, re-arrange fields,
add pushbuttons and change input fields into radio buttons?(Single)

A. GuiXT
B. GuiCapture

C. SAPGui

D. SAPShow

E. Profile Generator

12. Which of the following can you add to a Favorites list?(Multy)

A. Files

B. Transactions

C. Web address

D. Reports

E. User menus

13. What does SAP call the new asset value display transaction?
(Single)

A. Item Explorer

B. Accounts Explorer

C. Accounts Viewer

D. Asset Viewer

E. Asset Explorer

14. Which of the following statements about year-end closing are

correct?(Multy)

A. You carry out year-end closing before the fiscal year change.
 14

B. During year-end closing, the program checks if the year-end

closing can be carried out.

C. Once the year-end closing was successfully completed, the system

automatically changes certain entries in Customizing (closed fiscal
year)

D. You cannot create and post to new fixed assets until The year-
end closing is successfully completed

E. You can only conduct year-end closing on June 30 or December 31

of each year.

15. What steps have to be completed before you can generate asset
classes form G/L accounts? (Multy)

A. Account selection

B. Account determinations

C. Number range intervals

D. Screen layout variants

E. Asset classes

16. For each depreciation area you need to specify whether you want to
(Multy)

A. post depreciation at periodic intervals to the general ledger

B. post asset values at periodic intervals

C. automatically post values online

D. use index classes

E. post to business areas

17. Please click on the button next to the correct answer.(Multy)

 15

A. The business area can run across many company codes, i.e.
all company

codes can post in all business areas.

B. A company code may belong to more than One Controlling Area.

C. Each company codes uses exactly one chart of accounts and one
chart of

depreciation.

D. Business areas are used to create internal balance sheets and

income

statements.

18. The time of the first acquisition posting to the asset sets the
following fields

in the master of asset(Multy)

A. the depreciation start date per depreciation area

B. the cost enter to be hit through depreciation

C. the date of capitalization

D. the depreciation key

19. Usually one Chart of Depreciation is defined for each country.

At which level is the chart of Depreciation created?(Single)

A. at Company Code level

B. at Client level.

C. at Chart of accounts level.

D. at Business area level.

 16

E. at System level.

20. What are the functions asset class?(Multy)

A. Asset number assignment.

B. Cost Center determination.

C. Screen layout

D. Account allocation

E. Definition of default value.

21. Which of the following statements about asset data transfer from
a previous

system are correct?(Multy)

A. Transferring asset data ¡®during the fiscal year¡¯ is only

possible on july 1 of

the given year.

B. When you transfer asset data ¡®during the fiscal year¡¯, the
system

automatically determines replacement values and insurable values

using batch input.

C. During the asset transfer, you can enter either the APC or
the net book value.

D. During the asset transfer, you can specify the order in

which the depreciation are apper.
 17

E. When you transfer asset data ¡®during the fiscal year¡¯,you

must enter the last depreciation posting period from your previous
system in the SAP R/3 System.

22. Intergration with MM: An asset purchase order is created in

Purchasing. The goods receipt is posted on a value basis. Invoice
verification then posts the invoice.

What is the name of the auxiliary account used for all of these
transactions?(Single)

A. MM/FI clearing account.

B. GR/IR clearing account.

C. Asset purchasing clearing account.

D. Asset acquisition clearing account.

E. Vendor asset acquisition clearing account

23. What additional functions do asset classes offer?(Multy)

A. Specify required entry fields for asset master data

B. Enter default values for asset master data
C. Enter default values entries for depreciation area
D. Enter allowed entries for user fields
E. Define allowed company codes

24. Which of the following statements about manual depreciation (for

example unplanned depreciation in FI-AA) area true?(Multy)

A. You cannot post manual depreciation in FI-AA.

B. Manual depreciation is posted immediately after entry(real

time).

C. Manual depreciation is initially shown as a planned value after

entry and only posted when the depreciation posting report is run.
 18

D. Manual depreciation usually only applies to depreciation

areas which you choose when you enter the document.

E. After entering manual depreciation in FI-AA., you also need to

enter it manually in FI/CO.

25 .Which correspondence extracts all items in the chosen period from

a customer¡¯s account displays the balance carried forward balance and
a closing balance of the account ?(Single)

A. Payment advice

B. Payment notice

C. Account statement

D. Dunning notice

26. Which of the Following statements about automatic payment are

correct ? (Multy)

A. In automatic payment procedures, all incoming invoices as of the

second dunning level are paid automatically

B. Direct debiting or bank collection can be used in automatic

payment procedures to clear customer invoices

C. Open items posted to G/L accounts can be cleared using the

payment program

D. Special G/L transactions(down payment)can be posted using the

payment program

E. The payment program can pay vendor invoices using wire transfers
and checks
 19

27. Imagine the following scenario:A company wants to execute a

payment run on a daily basis and process several company codes at the
same time. If the amount exceeds US$ 1000, the vendors are to be paid
by bank transfer, amounts less than US$ 1000 are to be paid by check.
The customer has two house banks and wants all checks to be processed
by bank A and all¡¦ (Multy) ¹®Á¦¹Ì¿Ï¼º

A You store variants for print programs within customizing. Here you
can specify that the information is to be output to a data carrier

B. You specify, per house bank, whether payments are to be made

by check only or also by transfer

C. You specify the payment method from within the application,in

the master record

D. The payment proposal of the automatic payment program can

only be displayed

E. You can precisely schedule the print program from within the
application

28. According th which criteria does the payment program determine

and select open items (Single)

A. posting date and baseline date

B. document date and posting date

C. baseline date and payment terms

D. posting date and cash discount periods

E. posting date and payment terms

 20

29. Which of the following statements are true with regard to the
customizing setting for banks in the automatic payment run ? (Multy)

A. The sequence of the banks for processing outgoing payments is

selected randomly

B. You can only determine one payment method per house bank

C. You can select several payment methods per country

D. You can specify by bank and method the anticipated number of days
before the bank account is debited

E. You can determine the banks to be used for payments according to

postal code

30. Which of the following factors does the systems take into account
in a payment run ?(Multy)

A. Fiscal year variant

B. Payment method specifications in the IMG

C. Specifications in the vendor master records

D. Information in the documents(incoming invoices)

E. Specifications made when maintaining the payment run parameters

www.sap-img.com or the content authors.

 21

31. Which of the following statements are correct ?(Multy)

A. When creating a House bank, you do not need to specify the

country.

B. The payments program can use a different House bank for each
different payment method

C. A House bank account can be defined in more than one currency

D. House bank master data must be created in advance, before

assigning the House bank to a payment method in the payment program
configuration

E. A house bank can be assigned to a business area within the

payment program configuration

32. When entering a document using a foreign currency, which date is

used to determine the exchange rate if the translation date is not
entered ?(Single)

A. Posting date

B. Document date

C. Entry date

D. Baseline date

33. where are posting periods defined?(Multy)

A. Posting period variant.

B. Fiscal year variant.

C. Field status variant.

D. Closing period variant.

 22

34. which of the following statements supports the reversal of a

document?(Multy)

A. The original document contains no cleared line items.

B. Documents originating in other modules should be corrected there

to allow the changes to flow naturally through to financial
accounting.

C. If a reversal date is not specified, the system reverses the

document using the posting date of the document to be reversed.

D. A new document number is created for the reversal document.

35. Choose the correct statements regarding recurring documents.

(Multy)

A. When creating a recurring document, the valid time period must be

defined.

B. The posting date is determined by either the run date or the run
schedule.

C. Field values can be changed in recurring document.

D. After running the recurring document posting, the next run date
cannot be displayed.

E. The original recurring document can be deleted from the batch

input menu.

36. In manual bank statement customizing, you must (Multy)

A. Define an internal activity

 23

B. Define a posting rule

C. Define a posting type

D. Define a currency

E. Define an account symbol

37. Which of the following statements about manual planning are

correct?(Multy)

A. The planning type determines which bank accounts the plan amount
to be inputted to.

B. The expiration date shows how long the payment advice is included
in planning.

C. The payment advices for editing can be changed, archived, or

reactivated.

D. Archived payment advices are included in planning till the value

date.

E. The retention periods are determined by the bank account name.

 24

38. Bank accounts should be controlled as follows when Cash

Management is in use:(Multy)

A. Open items are managed for both the main bank account and the
bank clearing account.

B. Both the main bank account and the bank clearing account
permit line item displays.

C. The main bank account and the bank clearing account use the
same sort key.

D. The value date in the field status string for both the main
bank account and the bank clearing account must accept entry.

E. The cash-relevance flag in the master records for both the

main bank account and the bank clearing account must be set.

39. Which of the following statements about creating customer master

records are correct? (Multy)

A. An account group always gets assigned to a customer.

B. The company code is always a required entry.

C. The account number may be assigned by the user externally.

D. Information on each screen may be defined in configuration as

mandatory, suppressed or optional, depending upon the account group.

E. Information on each screen may be defined in configuration as

mandatory, suppressed or optional, depending upon the company code.

40. Which of the following statements are correct? (Multy)

A. A customer master is divided by client level and company code

level.

B. In case of one-time customer you have to enter the customer¡¯s

address in the document itself.

C. Address, control data, and reconciliation account are included in

 25

the client level of the customer.

D. The most efficient way to create master records is to work with

the external number range not internal number range.

41. Which of the following statements are correct? (Multy)

A. If a customer is also a vendor, the system can include

outstanding Accounts Receivable invoice items in payment program.

B. If a customer is also a vendor, the system can include

outstanding Accounts Payable invoice items when you clear incoming
payment receipts for the customer.

C. The reconciliation account defined on the customer master

record is an account used to reconcile CO transactions back to FI.

D. All customer belonging to the same account group must be

assigned to the same reconciliation account.

E. The alternative payer is used to transfer outstanding

receivable item to the alternative payer¡¯s account.

42. Bulk change of line item - this function allows you to change a
whole group of line items simultaneously, instead of having to change
individual items in the documents. What data can you change using
this function?(Multy)

A. The reconciliation account

B. The company code

C. The payment terms and payment block

D. The house bank and payment method

43. Which of the following order types are internal orders?(Multy)

A. Result analysis orders for posting accrual costs in CO.

B. Capital investment orders for creating assets.

C. Maintenance orders.
 26

D. Sales orders for make-to-order function

E. CO production orders.

44.Which of the following statements are correct regarding Internal

Orders?(Single)

A. Planning transactions are allowed under any status.

B. Once an order has been released, only closing entries can be

made.

C. Transactions can be allowed or disallowed depending in the

order status.

D. Additional order status categories can be created in the

order master.

45.Which of the following statements is true about CO production

orders?(Multy)

A. It is an internal order used to control production from a

cost accounting point of view.

B. Bills of materials and routings are required.

C. It is not possible to post goods movements to and from the

order.

D. You can post primary costs from Financial Accounting to the

order.

E. You can post secondary costs from overhead calculation to

the order.

46.Which statements are true regarding direct and indirect activity

allocations? (Multy)

A. If both the amount of the activity used by the receiver and

 27

the total output activity quantity of the sender can be measured,

then indirect activity allocation is used.

B. If the amount of activity consumed by the receiver is not

measured, then indirect activity allocation is used.

C. Manual activity input planning cannot be performed if actual

activities are allocated indirectly.

D. If direct activity allocation is used, the total output

activity quantity is determined by summing all of the activity
quantities allocated.

47. The primary cost element is one type of master data in

Controlling. Before you can create a new primary cost element,
certain prerequisites need to be fulfilled.

Which of the following conditions must be fulfilled BEFORE you can

create primary cost elements?(Multy)

A. The controlling area must be defined.

B. The cost center must be defined.

C. The G/L account must be defined.

D. The plant must be in the system.

E. The business areas have been defined.

48. What is the difference between distribution and assessments?

(Multy)

A. Distribution can be made for both planned and actual figures;

assessments cannot.

B. Distributions can be made using statistical key figures;

assessments cannot.

C. Distributions are used when the original cost information is

necessary on the receiver; assessments are used when this information
is not necessary on the receiver.
 28

D. Distributions are made using the original primary cost

elements; assessments are made using secondary cost elements

What is APC?
APC stands for Acquisition and Production costs. Acquisition means any asset
which you may acquire/ purchase externally. It includes invoice price and
other related exp. Associated with it like customs, octroi, freight which you
add and arrive at total cost of acquisition for capitalisation of the asset.For
ex Say a computer. The total cost which you incurr for the acquisition of the
computer including installation will be your APC
Production cost means any asset which is created internally within the
organisation. This is normally created by means of AUC and you go on
adding cost to the AUC as and when you incurr exp. for the same.For ex. say
addition to the office building. Therefore APC incudes any external
acquisition or internal construction of exp. which needs to be capitalised.
In OADB under 01 deprn area Acquisition & prod Cost tick is activated. *--
Marazban D. Dalal
This is umapathy, I have intereview tomorrow, if anybody have
taken interview with any company, kindly let me know what the
questions they will be asking, how will be the interview. How the
questions will be on configuration, implementation side and other
questions plz.. share with me.
Pl. prepare yourself on the following broad lines:
Implementation exp.:
Brief about the project you did: w.r.t. the main activity of the client, How
many plants they had, What modules were implemented, Who were the
implementers, What’s the implementation team size, How many were in your
module team, What’s your role in the project with respect to the activities
you partook in the project, The Enterprise Structure with regard to the no. of
Company Codes, any Business Areas or Profit Centers defined, Cost Centers
defined, What’s the period of the project, When did they Go-Live?, Any issues
you’d solved during ‘Support’ phase?
Questions on conceptual understanding:
a) SAP R/3 definition and 3-Tier Architecture
b) ‘Real time integration’ advantage of SAP
c) ASAP methodology
d) Solution Manager
e) Client / Company / Company Code / Business Area
f) Business Area vs Profit Center Approach
g) How effective will be the Financial Statements generated through
Business Areas
h) With Holding Taxes vs Extended WHT
i) Field Status Concepts (G/L master fields controlled through Account
 29

Group and Document entry through Field Status Group set in the G/L master)

j) Special G/L transactions

k) Open item management
l) Reconciliation Accounts
m) Subsidiary Ledgers
n) Sort key
o) Negative Postings Allowed
p) Special periods
q) Only balances in local currency
r) Important Posting keys for G/L, A/R, A/P, AA, Stock Entries
s) Assessment vs Distribution
t) Org. Structure for FI
u) Org. Structure for CO
v) Product Costing: How the values flow in the system
Configuration:
a) Extended With Holding Taxes configuration steps – right from creation
of WH Tax Types, Codes to Annual Return
b) FI-MM Integration (OBYC configuration with particular reference to Off-
Setting entries)
c) FI-SD integration
d) Down Payments transactions
e) Interest – Balances / Arrears
f) Asset Accounting: Asset Class, Main Asset, Sub-Asset, Group Asset,
Dep. Areas, Dep. Key, Transaction No.s (100- External acquisition, 210 –
Retirement with Revenue, etc.), Imp. Transaction Codes.
General questions:
a) Educational Background
b) What influenced you to go in for SAP career?
c) Functional Career
d) Present earnings vs Expected pay
e) Inclination to relocate
1. How can be or in what way baseline date is important in
Automatic Payment Program run?
The Baseline date is used to calculate the due date by taking into account
the payment terms. On the APP, the baseline date helps to pick the relevant
invoices for payment. During the APP run when invoices are pulled into the
run, the system checks the ‘Next Payment Date’ before picking the invoices
to be paid.
2. Please tell me the procurement cycle how it works?
Procurement cycle – a sales order is placed on a requirement made by a
customer, after which it is passed on to create a purchase order (this could
either happen based on the requirements on the SO, or a planned SO). the
 30

value flow gets passed on to FI at the time of goods movement. In the case
of SD, the impact on FI happens only at the time of billing.
3. Difference between Depreciation ,Accumulated Depreciation and
APC?
What is APC?
Depreciation – a decrease in the value of an asset due to wear and tear
Accumulated Depreciation – the total amount of depreciation calculated on a
particular asset.
APC – refers to Asset transactions other than depreciation
4. What is GR/IR?What journal entries we should pass for this?
The GR/IR – the goods receipt/Invoice Receipt account is used to post to
whenever goods that are not yet invoiced have been received or when
invoices arrive b4 the the delivery of goods.
During the time between the invoice being created and delivery of goods,
there can be a timing difference, in order to accommodate this timing
difference, a GR/IR account is maintained temporarily to record the flow .
5. What are the accounting entries take place in MM and SD?
Value from MM to FI is defined in OBYC…. on the material master the flow of
values are assigned on the Costing, acctg, etc tabs where the system helps
to post the necessary stock values into the appropriate GL accounts. helps to
determine, the GL accounts updated when there is a movement of goods.
SD-FI - VKOA
6. Can we assign one Controlling area to two different Company
Codes (but the company codes having different
fiscal years/different currencies
Company code should have same financial year, may have different
currencies.
You can assign 2 or more company codes to one controlling area as long as
the chart of accounts are same. Furthermore, if you have different fiscal year
variant in the company code, then make sure that the number of period
remain the same.
7. While posting transaction, can we give cost centre / production
order at time.
Yes it is posiiable , but in such situation cost centre will be real and
production order is stastical.
If you assign both cost center and Prd Order then since Prod. Order are real
co object, Cost center entry would be statistical.
8. Which Master data uploads will be done?
 31

The question is not very clear. If you are talking about CO Master data. Then
Cost center need to be uploaded. You can use Data Transfer Workbench or
write abap for it.
9. Can we run Payment Programe giving ( Hdfc vendor detailes )
City bank in Payment run programe?
Yes can be possible , this can resolved through ranking order and bank
optimization in FBZP.
You use use further selection in proposal paramater, if you would like to filter
the open item based on the city
10. What does document header control?
Field status.
11. After entering a document can you delete the entry? Can you
change the document?
Which fields’ can/not is changed?
Document header cannont be changed, after posting the document you
cannot change. only if you want to change the document the reseversal
entry.
12. What is a special GL transaction?
The transaction other than A/P and A/R is called the special g/l transaction for
ex: Bills of exchange, Interest payable , aqusition
13. How do you reverse cleared documents?
By doing reversal posting.
14. What is base line date? Why is that used? Can this be changed?
For paymentterms it is used. base line date is the due date.
15. How many statistical objects can be selected in when you post
an FI document?
Where CCtr, PCtr, OM are active?

GENERAL LEDGER

Information Systems

1. Structured Account Balances (Balance Sheet & P&L Account in FS Version

Format)

S_ALR_87012279
2. GL Account Balances (Totals & Balances ) S_ALR_87012301
3. GL Line Items S_ALR_87012282
4. Statements for GL Accounts, Customers & Vendors S_ALR_87012332
5. Document Journal S_ALR_87012287
6. Compact Document Journal S_ALR_87012289
7. Line Item Journal S_ALR_87012291
8. Display of Changed Documents S_ALR_87012293
 32

9. Invoice Numbers assigned Twice S_ALR_87012341

10. Gaps in Document Number Assignments S_ALR_87012342
11. Posting Totals Document Type wise S_ALR_87012344
12. Recurring Entry Documents S_ALR_87012346

Master Data

13. Chart of Accounts S_AL:R_87012326

14. GL Account List S_AL:R_87012328
15. Display Changes to GL Accounts S_ALR_87012308
16. Financial Statement Version FSE2

CASH & BANK REPORTS

1. Check Information List FCH6

2. Check Register FCHN
3. Check Number Ranges S_P99_41000102

TAX REPORTS & REGISTERS

1. List of Internally generated Excise Invoices J1I7

2. Capital Goods Transfer of Credit

J2I8
3. List of GRs without Excise Invoice J1IGR

4. List of SubContract Challans J1IFR

5. CENVAT Register J2I9

(Monthly Return under Rule 57AE of the Central excise Rules from
which Monthly Return under Rule 7 of the CENVAT Credit Rules 2001)

6. Registers : RG 23A/C Part I &II , RG1, PLA J1I5,J2I5,J2I6

ACCOUNTS RECEIVABLE

Information Systems

1. Bill Holdings (Bill of Exchange Receivable List with ALV facility)

S-ALR_87009987
2. Customer Balances in Local Currency S_ALR_87012172
3. Customer Line Items S_ALR_87012197
4. Due Dates Analysis for Open Items S_ALR_87012168
5. List of Customer Open Items S_ALR_87012173
6. Customer Evaluation with Open Item Sorted List S_ALR_87012176
7. Customer Payment History S_ALR_87012177
8. Customer Open Item Analysis (Overdue Items Balance) S_ALR_87012178
9. List of Customer Cleared Line Items S_ALR_87012198
10.List of Down Payments open at key date S_ALR_87012199
11. Debit & Credit Notes Register – Monthly S_ALR_87012287
12. Customer wise Sales
S_ALR_87012186

ACCOUNTS PAYABLE

(Note : Similar Reports available for A/R are available for A/P also)
 33

1. Vendor Balances S_ALR_87012082

2. Vendor Debit/Credit Memo Register S_ALR_87012287
Is there a Report displaying Master data, that is a list of vendors showing name, address,
payment
method, etc ( everything about vendor). Is their any report like that and what's the table
name to display
all vendor master data too.
Go to this menu:
Financial Accounting -> Accounts Payable -> Information System -> Reports for AP accounting
-> Master Data.
How to get Report of Withholding Tax along with Vendor Name. What is the T-Code or
Path for this report?
You can get the withholding tax report for vendor by using these t.codes:
S_P00_07000134 - Generic Withholding Tax Reporting
S_PL0_09000447 - Withholding tax report for the vendor
Which reports we can use for the receivables to be checked on daily basis?
Go to SAP Easy Access main menu.
Go To Accounting -> FI Acc -> customer(receivables) -> information system -> reports .
Here you can get all the standard reports for receivables.
All the Inventory transactions will look for the valuation class and
the corresponding G.L. Accounts and post
the values in the G.L accounts.

For Example: during Goods Receipt

Stock Account - Dr
G/R I/R Account - Cr
Freight Clearing account - Cr
Other expenses payable - Cr

During Invoice Verification

G/R I/R Account - Dr
Vendor - Cr
When the Goods are issued to the Production Order the following
transactions takes place:
Consumption of Raw Materials - Dr
Stock A/c - Cr
When the Goods are received from the Production Order the
following transactions takes place:
Inventory A/c - Dr
Cost of Goods Produced - Cr
Price difference - Dr/Cr
(depending on the difference between standard cost and actual cost)
 34

When the Goods are dispatched to customer through delivery the

following transactions takes place:
Cost of Goods Sold - Dr
Inventory A/c - Cr
When the Goods are issued to a Cost Center or charged off against
expenses the following transactions takes place:
Repairs and Maintenance - Dr
Inventory A/c - Cr
When the Goods are stock transferred from one plant to another,
the following transactions takes place:
Stock A/c - Dr (Receiving location)
Stock A/c - Cr (Sending location)
Price difference - Dr/Cr
(due to any difference between the standard costs between the two
locations)
When the stocks are revalued, the following transactions takes
place:
Stock A/c - Dr/Cr
Inventory Revaluation A/c - Cr / Dr
When the Work in Progress is calculated the following transaction
takes place:
Work in Progress A/c - Dr
Change WIP A/c - Cr
Physical verification /shortages and excesses : Shortages/excesses
on authorizations shall be adjusted using the physical inventory
count transaction.
*-- Shashikanth Teegala - [email protected]
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
 35

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.
 36

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
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.
 37

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 -->

 38

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
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:
 39

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
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.
 40

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
What is Hold and Parking of Document?
Hold Document: It is for short term and is used when tranaction Dr or Cr is uncertained and
generally its is used for external purpose. eg: Advance from potential customer
Parking Document: Its is for longer period generally used for internal purpose. eg: Advance
made for employes.
What is the main purpose of this document. Why we are using this one to in FI? How it is
useful?
Parking documents is used when we need to get any clarification regarding some account.
We can temporarily park or store this document till we get it cleared or approved.
Then we can post it.
Remember.... parking does not update the accounts....... it just stores the document..... whereas
posting will update the accounts....( for example.... the reducing/increasing of the account
balances).
The TC for Parking Documents is F-02 -> enter the required details ->go to the menu (at top )
->Document-> Park.
To post a parked document : FBV0-> go to the menu Document-> Post.
Other TCs used pertaining to Parking of Documents are :
FV50 : Post / Delete : Single Screen Transaction
FBV2 : Change
FBV3 : Display
FBV4 : Change Header
FBV5 : Display Changes
FBV6 : Refuse
SAP FI Tips by : Viji Balakrishnan

F-63 Park Document - Only transfer amounts in document curr. in invoice

In F-63, there is a checkbox "Only transfer amnts in document curr. invoice", may I know
what is the purpose of this checkbox & under what circumstances we will use this
checkbox.
"Only transfer amounts in document curr. in invoice"
If we sets this indicator it translates the doc. currency into local currency at the time of parked
document.
 41

If we not set this indicator it translates the doc. currency into local currency when posting of
document.
Eg: We are parking a document with doc. currency in USD @40- the next day we are posted that
document then it is @42- the system takes the exchange rate from the header which was
specified in the parked document @40- only. If we not set this indicator it will take at the time of
posting of document @42
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,
 42

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 R/S O/S R/o R S O
FSG S/R S/O o/r R S O
Result e SD RD NP NP NP
R = required
s = suppressed
e = error
SD = Suppressed dominates
Rd = required dominates
np = no problem.
Tips by : Gangadhar, Jagadeesan
Difference between Cost Centers and Internal Orders
Would any one please tell me that
1. What is the basic difference between Cost Centers and Internal orders?
2. I understand that their functionality is same like assessments, distribution etc. then why
there are divided into Cost Centers and Internal orders?
3. How the data flows from Cost Centers and Internal Orders? ie is it first into Internal
orders then to Cost Centers or Vice versa? or else the data is maintained independently?
4. Does settlement means running the Assessment cycle and distibuting the costs to various
cost centers from an internal order?
5. How you determine the cost of an Order or cost for an order? ie how an Cost in Order is
determined?
A cost center as you will know is for fixed reporting for a long time span as part of your
company structure (cost center usually = department or work center).
 43

An internal order is used to accumulate cost for a specific project or task for a specific time
period. An internal order is therefore used for a short period with a specific deadline.
Your internal order will usually settle to cost centers (and not visa versa) according to the
settlement rule in the order setup.
An internal order can therefore be used to group all the expenses incurred to plan and hold a
conference over a 3 month period. The order can be settled on a monthly basis to cost centers.
When the conference is finished the order can be settled finally. The cost of the conference will
then be spread over 2 or more cost centers, but can be viewed in total on the internal order when
needed.

It is important to understand the difference between a settlement and an assessment cycle. An

assessment cycle distributes costs from one cost center to various other cost centers. You cannot
assess from a cost center to an internal order nor visa versa. Assessment cycles are only between
cost centers.
Settlements are used for orders. In the setup of each order is a "settlement rule". In this
settlement rule you tell the system to which cost centers the cost in the order must be settled.
Typically, you will execute the following procedure at month-ends:
1. Settle all orders - this will settle all costs on orders to cost centers.
2. Run assessment cycles - Now that you have al costs against cost centers from your orders, you
can start distributing costs between cost centers with assessments.
Costs are posted to an order. When you process a purchase order you post to the internal order
and not to a cost center. The same applies to journals in FI. You will post the costs to the order
and not to a cost center. You will then settle the order on month-ends to post to the relevant cost
centers. It is very important to settle these orders otherwise FI and CO will not
balance on your system.
Internal orders can also be used as "statistical" orders. This is also specified in the setup of the
order. You do not have to settle statistical orders. When posting costs, you will post to the cost
center and the order simultaneously. Both have to be specified when posting journals or purchase
orders against statistical orders.
Get help for your SAP FI/CO problems
Do you have a SAP FI/CO Question?
Difference Between Primary and Secondary Cost Element
Explain the difference between primary and secondary cost element? With an example.
Primary cost elements are like materail costs, personnel costs, energy costs... where a
corresponding GL account exists in FI..to allow costs to flow...
Secondary cost elements are like production costs, material overheads, production overheads,
they can be created and administered in only CO. These are used in internal cost allocation,
overhead calculation, settlement transactions., it does not flow to FI...
General - Cost Element
----------------------------------
Basically, cost element are carriers of costs.
 44

Primary Cost Element

--------------------------------
When cost element carriers cost between FI and CO they are called Primary, the link is
established GL A/c = Cost element(Primary). A question may arise as to whether all GL
accounts are cost element, it again depends upon the business requirement, where COPA is
active then revenue account (GL) are also cost elements, where COPA is not active then revenue
account (GL) should not be made as an cost element.
Example....
Again cost of goods sold particularly in VAX (make to stock) is not an cost element, where the
same COGS in VAY (make to order) is a cost element. Price Difference account should not be
made as cost element.
Entry while booking expenses
Travel Expenses A/c - with Cost Centre Dr. Rs.YY
(will be a GL A/c and cost element) - entries flows to CO thru FI
To Cash A/c Cr. Rs.YY
Secondary Cost Element
-------------------------------------
When cost element carries cost with in CO, then they are called secondary cost element.
Example.... - Take Product Costing
---------------------------------------------------
On manufacture of the goods the cost of the above product (production order) is arrived at
accumulating material cost + operational cost + overheads (%), additive cost if any.
The cost of operation is accumulated in cost centre be it production / production service / service
cost centres, while booking FI entries.
Those operational cost has to be allocated to production order based on operational activities
carried on and its cost involved in it. Those operation activities in CO are termed as activity
types and has to link the same in KP26 with rates and cost centre (ie., sender cost centre and
receiver production order).
In order to find the production order cost, the allocation of cost from sender cost centre to
production order for the operational activities carried on and its cost associated with it, have to
be loaded, hence in CO the cost centre allocate that portion of operational cost to production
order, and this cost is carried by a cost element (since there are no FI involvement and entries are
flowing within CO by crediting sender cost centre and debiting receiver production order a cost
element has to be created.... say "Operational Cost - Activity" the entry will be
Operational Cost - Activity (Production Order) Dr Rs.XX
To Operational Cost - Activity (Cost Centre) Cr Rs.XX
The entries are with in CO. And the cost element created is secondary since it does not has an
link with GL Account in FI correspondingly.
In CO the production order and cost centre are co object including but not limited to.
Tips by N.Sathish Kumar
SAP Controlling FAQ
CONTROLLING
 45

Controlling: Controlling provides you with information for management decision-making. If

facilitates co-ordination, monitoring and optimization of all process in an organization.
Features of Controlling: Cost Center Accounting, Activity Based Accounting, Internal Orders,
Product Costing, & Profitability Analysis.
Controlling Area: Organization unit that represents a closed system Used for accounting
purposes.
You can assign one or more company codes to one controlling area.
If you assign more than one company code to one controlling area, then you need to note the
following.
1) Consistent Chart of a/c’s (Treat each cost element in all company codes in same way).
2) The Operative fiscal year variants in the company codes must match the fiscal year variant in
controlling area.
3) You should execute period end closing in controlling for all company codes at same time.
4) The system only post reconciliation posting across company codes without taxes, which
means that it cannot automatically create invoice.
5) Maintain controlling area - OKKP .
6) Maintain no. ranges for controlling documents - KANK
7) Maintain versions - OKEQ
COST ELEMENT ACCOUNTING
Cost Elements: Cost Elements Describe the origin of costs. Cost element classifies the
organization valuated consumption of production factors within a controlling area.
Primary Cost Elements: These arise through the consumption of productions factors that are
sourced externally. Primary cost elements are used for direct posting and must be accompanied
in GL a/c’s in FI.
T-code : KA02 : The categories are follows 1) General primary cost element, 03 - Imputed cost
element percentage method 4 - Imputed cost element, target = Actual Method, 11- Revenue
elements, & 12 - sales deductions.
Secondary Cost Elements: Cost elements arise through the consumption of production factor’s
that are provided internally i.e., by enterprise itself. Secondary cost elements are used strictly for
internal controlling posting like assessments and settlements. T-code - ka06
Category: 12 - internal settlements, 31 - Result analyses, 41 - overhead’s, 42 - assessments etc.
Cost Element Group - kah1
COST CENTER’S
Cost Center’s: Organizational Unit within a controlling area that represents a defined location of
cost incurrence. The definition can be based on 1) Functional Requirement, 2) Allocation
criteria, 3) Physical location and 4) Responsibilities for cost.
Change Cost center hierarchy - OKEON
Creation of Cost Center - KS01
Distribution: Was created to transfer primary costs from a sender cost center to receiving
controlling objects. Distribution is primary cost elements.
Define Distribution - KSV1
Execute “” - KSV5
 46

Assessment: Was created to transfer primary and secondary costs from a sender cost center to
receiving controlling objects.
During assessment, the original cost elements are summarized into assessment cost elements
(secondary cost element, category=42).
Define Assessment - KSU1
Execute Assessment - KSU5
Activity Types: Categorizes productions and services activities provided by a cost center to the
organization and used for allocating costs for internal activities to the originates of the costs.
Creation of Allocation Cost elements - KA06
Creating/Maintaining the Activity types - KL01
Statistical key figures: Are used as the basis (tracing factor) on which to make allocations
(assessments & distributions) and to analyze structural key figures.
Setting Up Manual & Automatic Payment Program
I am doing a project in my institute. we are facing a problem in running a automatic
payment program. Suppose I have a balance of Rs 100000 in my bank account and today I
am running a Automatic payment run. Total payment of the run are Rs 150000. So when
I run Automatic payment run it is not giving any error message. What to do with this
problem.
In my point of view we have to create validation. And link between bank account and
payment method. If the balance is less than the automatic payment amount the run should
be stopped .
The Automatic Payment Program does not check the Balance of your Bank Account.(GL A/c.
Bal.)
What it does check is the min & max amounts that you have maintained in your customisation.
In FBZP Transaction (type in easy access screen), you have to maintain the config for your
automatic payment runs.
In Bank determination (in FBZP), you have to fill in the available amounts for each Bank. This
is the maximum amount up to which payments will be generated by the Auto. Pay. Run.
So if you want to ensure that on any single day the payment run does not pay more than bank
balance, you have to update on a daily basis available balance to match with your bank balance .
In SPRO you can find the customisation for A P Run, but FBZP is the old transaction for the
same thing. Plus it lets you do all the related customisation, in one place.
As far as I know, there is no direct way of linking your GL account balance to the A P Run. *--
Uma

I am creating a new company code 'A', in which the paying company code will be 'B' and
the sending company code will be 'A'. Now I have to configure for both manual and
automated payments.
Couple of questions on that:
1. For cross-company payments what do I have to do different in the configuration
settings.
 47

2. In manual outgoing payments, My user has a list of reason codes ( for

overpayment/underpayment) defined for an old company code, it's not allowing me to copy
that into my new company code. How can I do that.
In Customizing Maintain Payment Program : Transaction code FBZP
1) define your company code'A" & "B" both in section tab (All Company code)

2) Define Paying company Code for example "A" paying company

3) Payment Method in country in tab

Country IN (India) - Name of Country - Payment Method "C" is for Cheque "D" for Demand
Draft etc

4) Payment Method in Company code - for example "A" is paying company define payment
method in same section

5) In Bank Determination Section - define Ranking Order, Bank Accounts, Available Amount,
Value Date, Expences/ Charges

6) Define House Bank : HB Name , Account ID Bank Account Text,

While runing APP (F110) user should select paying Co Code "A" in maintain variant, *--
Rajat
SAP FI Functional Consultant Responsibilities
What is the meaning of SAP FICO Functional and SAP FICO Technical?
SAP FICO Functional means functional knowledge, by which one can proceed in terms of
functional process with FICO area as well as FICO configuration knowledge.
Whereas SAP FICO Technical consultant may be an ABAPER, who have short of knowledge of
FICO configuration and functional knowledge as well and can proceed for technical jobs e.g.
reports development, client requirement, system modification etc.
To become a Pure Hard Core FI functional consultant
Q: Can via T.Code FBL1N by selecting vendor with plant reference in selection using
search help field group.
Plant is not a field for finance or in sap it is FI module - this is for PP and MM module, In case
required, please define that as FI object for FI reports - like BA and so on. Configure the plant as
a BA and in all FI places you can capture BA in line items of vendors.
Spent little time on going through various standard reports of SAP which are very rich in itself -
for each report it has options of all fields of master data , all fields of FI document means around
in my opinion around 400+ options to select. Hence we should first get an idea of fields in
masters and documents and how they are updated.
To become a good consultant.... Every report of SAP standard is a gem - but we always look
for FAST FOOD without understanding the quality of how standard is the solutions..
Spent time in understanding - there are lot of chapters available for reading . Suggestions ...
Understand the Finance function first upto closing of books and management reportings done in
 48

a practical way. Go to sap img screen - you will find all options are there... If you go reverse way
, sitting inside the car and asking - anyone can help me in understanding what is the wheel in
front of driver used and how to use it??
All the best - take it in the right spirit for a successful future
Tips by : Murali
Reasons For Archiving Financial Accounting Data
What is financial archiving? Where it is used? Why? Where is it configured in IMG?
There are both technical and legal reasons for archiving Financial Accounting data.
Archiving:
1) Reduces storage and runtime problems caused by the constant growth of transaction data.
2) Makes master data easier to manage and to keep up to date.
3) Enables data to be accessed at a later date.
You can archive data no longer required in the online system using certain standard functions.
This data is then stored in archive files and deleted from the online system. For legal and
commercial reasons, it is important that you are able to access archived data files online again,
and the reloading function allows you to do this.
Data must meet certain conditions before it can be archived. Some of these controls are already
defined in the system, for instance the fact that you cannot archive documents that contain open
items. Certain other controls are user-defined.
Every archiving function can be accessed from archive management (SARA).
To reach archive management, choose:
Tools --> Administration --> Archiving or from the Accounting --> Financial Accounting -->
General Ledger, Accounts
Receivable, Accounts Payable or Banks menus --> Periodic processing Archiving <Archiving
object> .
When you access archive management from these menus, the archiving object is defaulted by the
system in the field Object name. Otherwise you must enter the name of the archiving object
manually.
Tips by : *-- Dhaval
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)
 49

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.
Hope this clears.
Jacob Joseph
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].
 50

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.
I hope this clears.
Jacob Joseph
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.
Kotni Ravi Kumar
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
Yerra Rao
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
Sabarinathan Swaminathan
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.
Hope this clears,
Jacob Joseph
Thanks for the explanation its good thanks
Sabarinathan Swaminathan
 51

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.
Fastest way to create a SAP Company Code
SAP recommends that you used EC01 to copy an existing company code to a new one.
This has the advantage that you also copy the existing company code-specific parameters.
If necessary, you can then change certain data in the relevant application.
This is much less time-consuming than creating a new company code.
---------------
Meaning and Creation of Company codes
Which is the best method to create a company code.
- copy an existing company code or copying from country templates.
What is the process involved in copying from a country template.

For configuring SAP, generally three steps are required

1) create company name and address
2) creation of company code
3) currency and country setting
4) Assign company code to company
In same organisation i.e. in one company more than two company codes are maintaing, then its
better to copy from other company code from ec01, later on you can customised/change specific
settings according to client requirements.
If your want seperate setting in your own company code, that time its better to configure by
creation rather than copy
In above that is your choice and need for reqirement.
Otherwise you can upload certain data by creating company code.
Rama Krishna

Now my doubt is What is the Difference between Company and Company Code?
Company is the smallest organizational unit for which individual financial statement can be
drawn according to the relevant commercial law.
Company code is the smallest organizational unit for which complete, self-contained set of
accounts can be drawn up for external reporting purposes
 52

Shyam

Company - A company is a legal entity or a organisation which is to carry out a business and
under a company you have lot of sub companies.
For Example
Tata is a company
TCS,Tata Power,Tata Steel, is a company code under a company TATA
Under Company code you have business area associated with it where the business areas may be
scattered in different parts of the world where you can have reporting done for different business
area or you can also call it as Profit Centre.
Sakote Sanjay

A company is the Group of company and company code is the all the companies for which u
want seperate books of accounts. Company codes are assigned to company for consolidation
purpose.
example :- reliance is the company
and RIL,Reliance infocomm,Reliance Petrochem etc are the company codes.
All these co.codes are assigned to reliance company for consolidation purpose.
Gagan

Along with that technical difference is COMPANY cosists of 6 digit alphanumeric key where as
COMPANY CODE cosists of 4 digit alphanumeric key.
Mahesh

Company means group company for example : Tata Group

Company code means one of the company of its group ex:
Tata Chemicals, TCS, Tata Steels etc.
Kris
What is Valuation Area and Valuation Class
What is Valuation Area? How is it linked with Valuation Class? What is the significance of
Valuation Area?
Valuation areas are nothing but the level at which you want to valuate your materials. SAP
provides two levels of valuation Plant level and company code level.
For example:
Valuation at plant level: Suppose you have two plants one in Hissar and one in Andhra Pradesh,
Then of course you would like to valuate the rawmaterials at plant level as because you have got
transportation cost and taxes etc to account for.
Valuation at company code level:Here you valuate all your material in same way.
In One client valuation areas can either be set to plant level or company code level. Once you
have made this setting this cant be changed
 53

Valuation classes are linked to valuation class in Tcode OBYC

If your valuation area is at plant level then in OBYC you will find a coloumn for Valuation
modifier you can provide your plant there.
For example:
Valuation Mod Valuation class Account
plant 1 3000 200130
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
 54

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) Dr
To Revenue Cr
* 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.
 55

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 check the setting.
Tips by : Viji
SAP Chart of Account
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.
 56

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.
Tips by : Gaurav