Enterprise Structure

A COMPLETE GUIDE
TO

ENTERISE STRUCTURE
INCLUDES
DEFINATIONS, CUSTOMIZATION STEPS, TRANSACTION CODES
Enterprise Structure

INTRODUCTION TO SAP

SAP was founded in 1972 in Walldorf, Germany. It stands for Systems, Applications and
Products in Data Processing. Over the years, it has grown and evolved to become the world
premier provider of client/server business solutions for which it is so well known today. The
SAP R/3 enterprise application suite for open client/server systems has established a new
standard for providing business information management solutions.

The main advantage of using SAP as your company ERP system is that SAP has a very high
level of integration among its individual applications, which guarantee consistency of data
throughout the system and the company itself.

In a standard SAP project system, it is divided into three environments, Development, Quality
Assurance and Production.

SAP is table drive customization software. It allows businesses to make rapid changes in their
business requirements with a common set of programs. User-exits are provided for business to
add in additional source code. Tools such as screen variants are provided to let you set fields
attributes whether to hide, display and make them mandatory fields.

SAP R/3 Financial Accounting system is designed for automated management and external
reporting of general ledger, accounts receivable, accounts payable and other sub-ledger accounts
with a user defined chart of accounts. As entries are made relating to sales production and
payments journal entries are automatically posted. This connection means that the "books" are
designed to reflect the real situation.

R/3 Financial Accounting gives you the ability to centrally track financial accounting data within
an international framework of multiple companies, languages, currencies and charts of accounts.
The fully integrated SAP finance accounting systems offers a comprehensive range of
capabilities with open, integrated data flow and user-friendly handling for the external accounts.
Every company needs Accounting to provide information to shareholders, creditors, employees,
and general public. SAP Accounting application consists of the following components, which
are, Accounting, Controlling, and Treasury. Accounting is integrated with Logistics and Human
Resources components. SAP provides Pre configured systems for various industries with specific
charts of accounts. SAP supports multilingual approach, flexible currency handling, and country-
specific functions for taxes, reporting, and payment transactions.

SAP Accounting System offers you a complete set of applications:

Financial Accounting (FI) includes
General Ledger Accounting
Consolidation
Accounts Payable
Accounts Receivable
Asset Accounting
Special Ledgers

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INDEX
1.1. DEFINATIONS .................................................................................................................. 4
1.2. Company: ............................................................................................................................ 4
1.3. Company Code: .................................................................................................................. 4
1.4. Fiscal Year: ......................................................................................................................... 4
1.5. Account Groups .................................................................................................................. 4
1.6. Chart of Account................................................................................................................. 4
1.7. Normal posting period: ....................................................................................................... 4
1.8. Special posting period:........................................................................................................ 5
1.9. Posting Period Variant: ....................................................................................................... 5
1.10. Fiscal Year: ..................................................................................................................... 5
1.11. Fiscal Year Variant: ........................................................................................................ 5
1.12. Document Number:......................................................................................................... 5
1.13. Field Status Variant: ....................................................................................................... 5
1.14. Tolerance Groups for Employees: .................................................................................. 6
2. CUSTOMIZTION................................................................................................................... 6
2.1. Define Company: ................................................................................................................ 6
2.2. Define Company Code:....................................................................................................... 7
2.3. Assignment of Co. Code to Company: ............................................................................... 8
2.4. Maintain Fiscal Year Variant.............................................................................................. 9
2.5. Assign Co. Code to Fiscal Year Variant ........................................................................... 10
2.6. Define Variants for Open Close Posting Periods.............................................................. 10
2.7. Open & Close Posting Periods.......................................................................................... 11
2.8. Assign Posting Period Variants to Company Code .......................................................... 12
2.9. Document Number Ranges ............................................................................................... 13
2.10. Defining Document Types ............................................................................................ 14
2.11. Defining Maximum Exchange Rate Difference per Company Code ........................... 16
2.12. Maintain Field Status Variants...................................................................................... 16
2.13. Assign FSV to Company Code ..................................................................................... 17
2.14. Define Tolerance Groups for Employees ..................................................................... 18
2.15. Edit Chart of Account ................................................................................................... 20
2.16. Assign Co Code to Chart Of Account........................................................................... 22
2.17. Define A/c Group.......................................................................................................... 23
2.18. Define Retained Earnings A/c ...................................................................................... 24
2.19. Enter Global Parameters ............................................................................................... 25
2.20. Maintain Controlling Area ............................................................................................ 26
2.21. Assign company code to controlling area ..................................................................... 28
2.22. Activates components / control indicator. .................................................................... 28
2.23. Maintain Number Ranges for Controlling Documents ................................................. 30
2.24. Maintain Versions ......................................................................................................... 30
2.25. Create Cost Elements .................................................................................................... 32

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1. DEFINATIONS

1.1. Company:
Company represents a smallest organizational unit for which individual financial
statements can be drawn up according to the relevant commercial law. A company can
consist of one or more company codes. All company codes within a company must use
the same transaction chart of accounts and the same fiscal year breakdown. The
company code currencies, on the other hand, can be different. A company has one local
currency in which its transaction figures are recorded

1.2. Company Code:

In SAP , company code represents, a stand-alone legal entity that prepares its financial
statement. It is central entity in FI , all transaction in FI will be posted to one company
code. A company may be assigned to more then one company code

1.3. Fiscal Year:

Fiscal year represents period of time within which transaction will be posted. It consists
of number of normal posting periods and special periods that are followed in the
Accounting year of the Company and to prepare the Balance Sheet and Profit and Loss
account for reporting.

1.4. Account Groups

Classification of GL accounts , with respect to certain criteria and function. Account
groups controls number range and field status of the GL Accounts.

1.5. Chart of Account

A classification scheme consisting of a group of general ledger (G/L) accounts. A chart
of accounts provides a framework for the recording of values, in order to ensure an
orderly rendering of accounting data. The G/L accounts they contain are used by one or
more company codes.
For each G/L account, the chart of accounts contains the account number, the account
name and other, technical information.

1.6. Normal posting period:

It represents period in the fiscal year. Normally this re[resents a particular month

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1.7. Special posting period:

Special posting periods represents part of normal posting, used for special purpose to
track the closing entries

1.8. Posting Period Variant:

It is variant, that controls, which posting period(s) are open for posting for each company
code. Normally we are defining one posting period variant for one company code. If one
posting period variant was attached to more then one company code, these company’s
behave in the same way for open and close posting period.

1.9. Fiscal Year:

Fiscal year represents time frame of accounting period. Generally one fiscal year consists
of 12 months. Under special circumstances a fiscal year may consists of period lesser
then 12 months

1.10. Fiscal Year Variant:

Fiscal year variant is a variant, may be used in more then one company code, holding
data for fiscal year.

1.11. Document Number:

The document number is the key the SAP R/3 system to access the accounting document
posted in the system. The document number is unique per Company Code and Fiscal
Year. When entering an accounting document, via Document Type system will assign the
Document number.

1.12. Field Status Variant:

We group several field status groups into one field status variant. Assign a company code
to a FSV. This allows we to work with the same FSG in any no of co codes. A FSG
determines the screen layout for doc entry. Fields can have the following statuses.
Optional / Required / Suppressed entry. Enter the FSG in the master record of the GL a/c.
When a doc is entered, the definitions stored for the group are effective. The FSG
determines which fields are ready for input, required and hidden. Bear in mind that
additional assignments [i.e. cost centers or orders] are only possible if data can be entered
in the corresponding fields.

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1.13. Tolerance Groups for Employees:

Tolerance limit for employees represents the monetary limit within which the employees
attached to such group may carry out a transaction. In tolerance limits we limits
transaction for employees which determine (1) The maximum document amount the
employee is authorize to post (2) The maximum amount a employee can enter as a line
item in a customer or vendor account, (3) The maximum cash discount percentage the
employee can grant in a line item, (4) the maximum acceptable tolerance for payment
difference for employees. This is a mandatory step, other wise we can’t post the
transaction

2. CUSTOMIZTION
The Configuration Guide describes how to set up the configuration manually, without the
support of any consultant and institution.

2.1. Define Company:

T Code SPRO
Path IMG → IMG-Enterprise Structure →Definition→ Financial Accounting →
Define Company
Purpose: In this step, we will define Company for our enterprise structure. Company
represent to a group of company.

Customization: To carry out the activity, choose one of the above navigation options:
ƒ Click on New Entries Push Button

ƒ We will taken to a screen, update the screen as given below

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ƒ We have updated the screen with the above data.

ƒ Choose Save to save the data.

Customisation Results:
We have created a group of company called “SURYA GROUP OF INDUSTRIES. In our
next step we will create a company below the group company, which is a separate entity
for external reporting purpose.

2.2. Define Company Code:

T Code SPRO
Path IMG →Enterprise Structure → Definition → Financial Accounting →
Define, copy, delete, check company code

Purpose: In this step, we will create company code 9999 – SURYA INFOTECH LTD. and
other master data for company.

Customization: To carry out the activity, choose one of the above navigation options:

• We will be taken to following popup screen

• Double click on Edit Company Code Data

• Click on New Entries Push Button, we will be taken to following screen, where we
will maintain various fields for company code master

We have updated the following screen as given below

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• Click on Address Push Button or Press Shift+F5 or Enter to input the address details
of the Company Code 9999

We will maintain following screen as given below.

• Choose Enter to copy the data.

• Choose Save to save the data.

Customisation Results:
We have maintained various master data for our company code 9999- SURYA
INFOTECH PVT LTD.

2.3. Assignment of Co. Code to Company:

T Code SPRO

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Path IMG→Enterprise Structure → Assignment → Financial Accounting →

Assign company code to company

Purpose: In this step, we will assign company code to company. Please note N number of
company code may be assigned to a company.

Customization: To carry out the activity, choose one of the above navigation options:

• Select Position Button, Enter Company Code “9999”

• Press Enter, we will taken to company code “9999”

• Key “99999” against company code 9999

• Choose Save to save the data.

Customisation Results:
We have assigned company 99999 to company code 9999

2.4. Maintain Fiscal Year Variant

T Code OB29
Path IMG → Financial Accounting → Financial Accounting Global Setting →
Fiscal Year → Maintain Fiscal Year Variant (Maintain short end Fisc.
year)

Purpose: In this step, we will create / copy Fiscal Year Variant (FYV) for our company
code (See… for definitions). In our company 9999, we will use SAP provided standard
fiscal year variant.

Customization: To carry out the activity, choose one of the above navigation options:

• For the Company Code 9999, Fiscal Year, V3 – April - March, 4 special periods is
being used, which is already defined in the standard SAP R/3 System. Review the
SAP standard fiscal year V3.
•

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• Choose Save to save the data.

Customisation Results:
Since we are using SAP Standard fiscal year variant V3, which is already defined. V3
posting period is a year independent variant contains 12 normal posting period and 4
special posting periods.

2.5. Assign Co. Code to Fiscal Year Variant

T Code OB37
Path IMG → Financial Accounting → Financial Accounting Global Setting →
Fiscal Year → Assign Co Code to Fiscal Year Variant

Purpose: In this step, we will assign Fiscal year variant created at step 2.4 to our
company code 9999

Customization: To carry out the activity, choose one of the above navigation options:

• Click on Position button,

• Key Company code ID 9999, we will be taken to company code

• Key Fiscal Year Variant (FYV) V3 against company code 9999

• Choose Save to save the data.

Customisation Results:
In this step we have assigned Fiscal Year Variant V3 to our company code 9999.

2.6. Define Variants for Open Close Posting Periods

T Code OBBO
Path IMG → Financial Accounting → Financial Accounting Global Setting →

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Document → Posting Periods → Define variants for Open Close Posting

Periods

Purpose: In this step, we define variant for open close posting periods. By using the
posting period variant, the posting to the periods and General Ledger Accounts can be
controlled by opening or closing the periods.

Customization: To carry out the activity, choose one of the above navigation options

• Click on New Entries and make the following entries.

• Choose Save to save the data.

Customisation Results:
In this step we have created posting period variant 9999 for our company code 9999-
SURYA INFOTECH LTD. In our next step we will maintain various parameters for open
close period variants.

2.7. Open & Close Posting Periods

T Code OB52
Path IMG → Financial Accounting → Financial Accounting Global Setting →
Document → Assign posting period variants to company code.

Purpose: In this step, we define what are periods and what are accounts open for posting

Customization: To carry out the activity, choose one of the above navigation options

• Click on New Entries make the following entries.

In this step we have defined, how the PPV will control the open & close posting period.

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Here C represents, type of account allowed, the options are

+ Allowed for all business transaction, this is required row, posting period further
will be controlled by
A Means transaction type for assets posting
D Means transaction type for customer posting
K Means transaction type for vendor posting
M Means transaction type for material posting
S Means transaction type for general ledger

• Choose Save to save the data or press Ctrl+S.

Customisation Results:
You have maintained the allowable posting periods for the Variant – 9999. In the above
table we have maintained, all types posting will be allowed for fiscal year 2005 and for
all posting periods

2.8. Assign Posting Period Variants to Company Code

T Code OBBP
Path IMG → Financial Accounting → Financial Accounting Global Setting →
Document → Open & Closing Posting period

Purpose: In this step, we will assign posting period variant created to our company code.

Customization: To carry out the activity, choose one of the above navigation options

• Click on Position button and

• Key company code 9999, we will be taken to company code 9999

• Key PPV ID 9999 against company code 9999

• Choose Save to save the data or press Ctrl+S.

Customisation Results:

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You have assigned posting period variant 9999 to our company code. A posting period
variant may be assigned to more then one company code, in such all company code
using single PPV will have same open & closing posting periods.

2.9. Document Number Ranges

T Code FBN1
Path IMG → Financial Accounting → Financial Accounting Global Setting →
Document → Define Document Number Ranges → Overview

Purpose: In this activity we will create number ranges for document. For each number
range specify (1) a number interval for which document numbers are selected. (2) The
type of number assignment (internal or external). Assign one or more document type to a
number range

Customization: To carry out the activity, choose one of the above navigation options

• On the Numbers Ranges for Accounting Documents screen, enter the Company Code
9999 and select the Change Intervals push button.

• Click on to maintain number range

• Maintain the number range interval for one interval 00

ƒ Click + button as shown above to insert the value, other number range we will be
maintain as when required.

• Choose Save to save the data or press Ctrl+S.

Customisation Results:
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We have created one number range for our company code 9999 for the fiscal year 2005.
Similarly we will maintain other number range whenever it is required.

2.10. Defining Document Types

T Code OBA7
Path IMG → Financial Accounting → Financial Accounting Global Setting →
Document → Document Header → Overview

Purpose: Document types differentiate business transactions and control document

filing. Document numbers are chosen from this number range key specified in Document
Type. Number range Key contains the Number Series. Document Type also controls the
accounting area that can be posted by using the Document Type.

Customization: To carry out the activity, choose one of the above navigation options:

• Since we have decided to use standard document type provided by SAP, we don’t
required any kind of customization here. These are the standards document types
used by SAP

Document Type Document Type Description No Range Account Type

Key
AA Asset posting 01 ADKMS
AB Accounting document 01 ADKMS
AF Dep. postings 03 AS
AN Net asset posting 01 AKMS
DA Customer document 16 DS
DG Customer credit memo 16 DS
DR Customer invoice 18 ADMS
DZ Customer payment 14 DS
EU Euro rounding diff. 02 ADKMS
EX External number 02 DKS
KA Vendor document 17 AKMS
KG Vendor credit memo 17 AKMS
KN Net vendors 01 ASK
KP Account maintenance 48 ASM
KR Vendor invoice 19 AKMS
KZ Vendor payment 15 KS
RV Billing doc.transfer 00 ADS
SA G/L account document 01 ADKSM
SB G/L account posting 12 S
SK Cash document 13 S
SU Adjustment document 01 S
UE Data transfer 04 ADKMS

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ZP Payment posting 20 ADKMS

ZR Bank reconciliation 20 DKS
ZS Payment by check 05 DKS
ZV Payment clearing 20 ADKMS

• To have an overview of document type, select document type SA

Double click on , we will take to following details screen where we will see,
the various parameters maintained by document type.

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• Choose Save to save the data or press Ctrl+S.

Customisation Results:
Since we are using SAP’s standard document, hence we don’t required much
customization.

2.11. Defining Maximum Exchange Rate Difference per Company Code

Transaction Code SPRO or OB64
IMG Menu Financial Accounting → Financial Accounting global settings
→ Document → Document Header → Maximum Exchange
rate difference → Define Maximum Exchange Rate Difference
Per Company Code

Purpose: In this activity you can define the maximum difference between exchange rates
for postings in foreign currency transactions.

Customization: To carry out the activity, choose one of the above navigation options:

• Select position button and

• Key company code 9999, we will be taken to company code row 9999.

• Key maximum exchange rate for company code 9999.

ƒ Choose Save to save the data or press Ctrl+S.

Customisation Results:
In the above customization steps, we have maintained that there will be maximum 10 %
exchange variance will be allowed between data enter at the type of entry and rate
exchange stored at the system.

2.12. Maintain Field Status Variants

T Code OBC4
Path IMG → Financial Accounting → Financial Accounting Global Setting →
Line item→ Control →Define Fields Status Variants

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Purpose: In this step we will maintain the Field Status Variant (FSV) for company code
9999. (See definition………. for it’s meaning). In this step we will copy the standard
field status group given by SAP 0001 to our FSV 999.

Customization: To carry out the activity, choose one of the above navigation options:

ƒ Select

ƒ Click on icon from screen.

ƒ Change as follows

ƒ Press Enter, to copy the field status group from 0001 to 9999.

ƒ Select from the pop up windows, Once again enter

ƒ Choose Save to save the data or press Ctrl+S.

Customisation Results:

In the above customization steps, we have copied FSV from the SAP standard 0001.

2.13. Assign FSV to Company Code

T Code OBC5
Path IMG → Financial Accounting → Financial Accounting Global Setting →
Line item→ Control → Assign FSV to company code

Purpose: Establishing relationship between FSV and company codes.

Customization: To carry out the activity, choose one of the above navigation options:

ƒ Double click on and

ƒ Key Company code 9999, we will be taken to company code row 9999

ƒ Key field Status variant 9999 against company code 9999

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ƒ Choose Save to save the data or press Ctrl+S.

Customisation Results:
In the above customization steps, we have assigned Field status variant 9999 to company
code 9999.

2.14. Define Tolerance Groups for Employees

T Code OBA4
Path IMG → Financial Accounting → Financial Accounting Global Setting →
Line item→ Define Tolerance groups for employees

Purpose: In this step, we will customize the tolerance group for employees. This will
help us making / limiting the document posting authorization control.

Customization: To carry out the activity, choose one of the above navigation options:

ƒ Click on New Entries, to maintain to new tolerance group for our company code 9999

ƒ Maintain the fields as shown below.

ƒ Choose Save to save the data or press Ctrl+S.

Customisation Results:

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In the above customization steps, we have maintained a tolerance group and set the limit
for document total Rs.1000000000 and individual line item total to Rs.1000000.00.
Beside this two limit for document entry we have set at best 10% cash discount per line
may be allowed for this tolerance group. In this customization step we have also defined
permitted payment difference will be Rs.10000.00 or 5 % of the line item, which ever is
lower. Out of the aforesaid payment difference Rs.5000.00 may be adjusted towards cash
discount.

The above screen has following fields and meaning there of are appended below.

Fields Descriptions
Group Tolerance group Key: With this reference key, tolerances for the
entry of documents and the granting of cash discounts can be
determined for all employees of the group for payment
settlement.
Company code Company code ID, for which we are determining the tolerance
key.
Currency The currency key, to which this will be applicable
Upper limits for posting procedures
Amount per Maximum amount posted per document: Maximum permitted
document posting amount per document for this user group. The posting
amount is the total of all debit items or, similarly, the total of all
credit items.
Amount per open Maximum posting amount per line item: Maximum posting
item account amount permitted per customer or vendor item for this
items User group.
Cash discount per Maximum Cash discount percentage rate: Maximum cash
line item discount percentage rate, which may be assigned by an
employee of the user group.
Permitted payment differences
Revenue / Maximum Payment Difference for Revenue: Payment
Amount differences to our advantage are allowed up to the amount
entered here. The amount
always refers to the local currency. Payment differences up to
the amount entered here are posted automatically by the system
as increasing the profit. The system creates line items to show
this.
Revenue / Percent Maximum Allowable Revenues from Payment Differences:
Differences when settling payments are accepted and posted
automatically by the system up to the percentage rate entered
here. The percentage rate is only valid if the difference is posted
as a gain. The percentage rate is used for the maximum of the

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debit and credit totals of the items to be cleared.

Revenue / Cash Maximum Discount Adjust. For Gain from Payment Differences
discount When clearing payments, any payment differences up to the
amount specified here are corrected with the cash discount
posting as long as the cash discount amount is large enough for
the adjustment. The value you specify here is used for
differences that represent a gain.
Expenses / Maximum Payment Difference for Expense
Amount Payment differences to our disadvantage are allowed up to the
amount entered here. The amount always refers to the local
currency. Payment differences up to the amount entered here are
posted automatically by the system as reducing the profit.
Expenses / Maximum Expense Permitted from Payment Differences:
Percent Differences when settling payments are accepted and posted
automatically by the system up to the percentage rate entered
here. The percentage rate is only valid if the difference is posted
as an expense. The percentage rate is used for the maximum
from the debit and the credit total of the items to be cleared.
In addition to the percentage rate, you also enter an amount in
the Expense field. The lower limit is valid. If you only want to
use absolute amounts or percentage specifications, you must
enter the maximum value in every other field.
Expenses / Cash Maximum Discount Adjust. For Loss from Payment Differences
discount When clearing payments, any payment differences up to the
amount specified here are corrected with the cash discount
posting as long as the cash discount amount is large enough for
the adjustment. The value you specify here is used for
differences that represent a loss.

2.15. Edit Chart of Account

T Code OB13
Path IMG → Financial Accounting →General Ledger Accounting →G L
Accounts → Master Records → Preparation → Edit Chart of account list.

Purpose: In this activity overview the chart of account list and if needed create new chart
of account. The chart of account is maintained at client level may be used by more then
one company code. In this step maintain following fields for a newly created COA.

Customization: To carry out the activity, choose one of the above navigation options:

ƒ Click on New Entries, we will be taken to new screen

ƒ Maintain the following fields as given below.

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ƒ Choose Save to save the data or press Ctrl+S.

Customisation Results:

In the above customization steps, we have defined our company code chart of account
9999 and set the length of Gl account to 10. We have also decided cost element for
controlling area will be created manually.

The above screen has following fields and meaning there of are appended below.

Fields Descriptions
Chart of accts Chart of account ID
Description Description of the chart of account
General Specifications
Maint. Language Language key in which the chart account will be maintained.
Length of G/L Here we will define, what will be GL number range length.
Account number Maximum number range of GL will be 10
Integration
Controlling Here we will select values how FI is integrated to controlling.
Integration We have two option here how we will creating cost element

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st
In the 1 option, we will create cost element manually
nd
In the 2 option, system will create cost element automatically
Consolidation
Group chart of You can enter a group account number as additional information
accts in the G/L accounts of the chart of accounts you are using. The
system checks whether the group account number exists in the
corporate chart of accounts.
Status
Blocked Indicator, which blocks the chart of accounts from being
released i.e., no G/L accounts can be created for this chart of
accounts in the company codes.

2.16. Assign Co Code to Chart Of Account

T Code OB62
Path IMG → Financial Accounting →General Ledger Accounting →G L
Accounts → Master Records →Preparation → Assign Co Code to Chart of
Account.

Purpose: Assigning COA to Company code. A chart of account may be assigned to more
then one company code. In a single Co. Code three chart of account may be assigned (1) -
> Operating chart of account (2) -> Country Chart of Account (3) -> Group Chart of
Account.

Customization: To carry out the activity, choose one of the above navigation options:

ƒ Click on

ƒ Key Company code ID 9999,

ƒ Press Enter, we will be taken to company code 9999,

ƒ Key 9999 in the field chart/accts, as shown below

ƒ Choose Save to save the data or press Ctrl+S.

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Customisation Results:
In the above customization steps, we have assigned chart of account 9999 to our
company code 9999. Beside this we can also assign country chart of account here

2.17. Define A/c Group

T Code OBD4
Path IMG → Financial Accounting →General Ledger Accounting →G L
Accounts → Master Records →Preparation → Define Account Group

Purpose: Here define various account groups for balance sheet and profit &
Loss Account. Account Group controls various parameters line (1) Number range of
general ledgers (2) Field Status of accounts, (3) Short variant etc.

Customization: To carry out the activity, choose one of the above navigation options:

ƒ Click on New Entries, we will be taken to a blank screen, where we will add one
by one account group.

ƒ Choose Save to save the data or press Ctrl+S.

Customisation Results:

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In the above customization steps, we have added various account groups for our chart of
account 9999 and we have also defined number ranges for accounts groups.

2.18. Define Retained Earnings A/c

T Code OB53
Path IMG → Financial Accounting → General Ledger Accounting →G L
Accounts → Master Records →Preparation → Define Retained Earning
Account.

Purpose: Here define retained earning account, which will carry balance of income &
expenditure account to next year. If we have defined more then one retained account,
then in general ledger master have to define retained earning account to which a
particular GL pertains

Customization: To carry out the activity, choose one of the above navigation options:

ƒ Key Chart of Account 9999 in the dialog box, as shown below

ƒ Press Enter, we will taken to a screen where we have to key retained earning
account

ƒ Key the data as, given below

ƒ Choose Save to save the data or press Ctrl+S. it will give a message that above
GL account were not created. Ignore this message press Enter

Customisation Results:

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In the above customization steps, we have defined two retained earning account no.
For our company code 9999.

2.19. Enter Global Parameters

T Code OBY6
Path IMG → Financial Accounting Global Settings → Company Code → Enter
Global Parameters.

Purpose: In this activity, we can make various global specifications for the company
code. In addition, we can look at the most important specifications of the company code
at any time in the overview. This includes, among other things, the chart of accounts and
the fiscal year variant.

Customization: To carry out the activity, choose one of the above navigation options:

ƒ Click on Position button

ƒ Enter Company Code ….. 9999, Enter

ƒ Double click on

We will taken to the following screen, This screen describes what has been
assigned previously for the company code 9999. It is the central nerves of the
company code.

ƒ Check the check box , which will required in our future

transaction for depreciation and reversal of document

ƒ Check the check box . By checking this box, we are asking

the system to calculate tax on sale or purchase, after reducing the cash discount
amount from the invoice amount.

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ƒ Choose Save to save the data or press Ctrl+S.

Customisation Results:
In the above customization steps, we have
1. Allowed negative posting in the company code
2. Also defined tax will be calculated after considering cash discount.

2.20. Maintain Controlling Area

T Code OKKP
Path IMG → Controlling → General Controlling → Organization→ Maintain
Controlling Area.

Purpose: In this activity, we will maintain various parameters for out controlling area

Customization: To carry out the activity, choose one of the above navigation options:

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ƒ Double Click on Maintain Controlling Area. We will be taken to following screen

where we will maintain various values for controlling area.

ƒ Click on New Entries

ƒ Maintain the following values for the controlling area configuration.

ƒ Choose Save to save the data or press Ctrl+S.

Customisation Results:
In the above customization steps, we have maintained following values for our
controlling area.

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- We have defined controlling area as same as company code. It means the

relation between controlling area and company code is 1:1. Alternatively a
controlling area may be assigned to more then one company code.
- We have also mentioned ID of standard hierarchy.

2.21. Assign company code to controlling area

Purpose: In this activity, we will assign company code to controlling area.

Customization:

ƒ Double click on “ Assignment of company code(s)

ƒ Click on

ƒ Select company code 9999 from the dropdown box as shown below.

ƒ Choose Save to save the data or press Ctrl+S.

Customisation Results:
In the above customization steps, we have assigned company code to controlling area
9999

2.22. Activates components / control indicator.

Purpose: In this activity, we will assign company code to controlling area.

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Customization:

ƒ Double click on “Activate Components / control indicators”

ƒ Click on New Entries. We will be taken to following screen, where we will maintain
& activate various components of controlling area.

ƒ Choose Save to save the data or press Ctrl+S.

Customisation Results:
In the above customization steps, we have activated following components for controlling
area.

- Cost Center Accounting

- Activity type Accounting

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- Order Management
- Profit center Accounting

2.23. Maintain Number Ranges for Controlling Documents

T Code KANK
Path IMG → Controlling → General Controlling → Organization → Maintain
number ranges for controlling documents.

Purpose In this IMG activity we will create number ranges for business transactions in
Controlling or change existing settings.
For every posting in CO the R/3 System generates a numbered document. The document
numbers are unique to each controlling area, since each number is assigned only once

Customization: To carry out the activity, choose one of the above navigation options:

ƒ Select icon ,

ƒ Enter from controlling 1000 to controlling 9999

ƒ Press Enter

ƒ Choose Save to save the data or press Ctrl+S.

Customisation Results:
In the above customization steps, we have copied document number range from
controlling area 1000 to company code 9999

2.24. Maintain Versions

T Code OKEQ
Path IMG → Controlling → General Controlling → Organization → Maintain
Versions.
Purpose We will use versions to create independent data groupings in planning and in
actual.
In planning, versions display alternative plan scenarios based on different planning
assumptions. For example, we can illustrate varying employment markets, price and
wage increases, or sales programs in different versions with differing parameters.

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Customization: To carry out the activity, choose one of the above navigation options:

ƒ Select

ƒ Click on setting in controlling

ƒ Key controlling area 9999

ƒ Enter , we will be taken to following screen , where version is maintained

ƒ Choose Save to save the data or press Ctrl+S.

Customisation Results:

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In the above customization steps, we have maintained version 0 for our

controlling area , which will hold planning and actual data

2.25. Create Cost Elements

T Code KA01, KA06
Path IMG → Controlling → Cost Element Accounting→ Master Data→ Cost
Element → Create Cost Element.
Purpose: In this activity, we will create primary and secondary cost element. Cost
element is being used for posting transaction between various cost object and from FI to
Co. For creation of primary cost element, this step is not required, if we had enable
automatic creation of cost element in T Code OB13 ( see step no. 2.15) . In this step we
will enable automatic creation of cost element at chart of account level

Customization:

ƒ Execute T Code OB13

ƒ Click on position button

ƒ Enter chart of account 9999

ƒ Double click on 9999

ƒ Change it to “Automatic creation of cost elements

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Customisation Results:
In the above customization steps, we have changed the setting we have made previous in
chart of account, to enable for creation of cost element automatically.

3. USER MANUAL
FI Enterprise structure, is a completely FI consultants area. There is no activity for end user
point of view.

4. IMPORTTANT TRANSACTION CODE

T Code Description
SPRO IMG →Enterprise Structure → Definition → Financial Accounting → Define,
copy, delete, check company code
SPRO IMG→Enterprise Structure → Assignment → Financial Accounting → Assign
company code to company
OB29 IMG → Financial Accounting → Financial Accounting Global Setting → Fiscal
Year → Maintain Fiscal Year Variant (Maintain short end Fisc. year)
OB37 IMG → Financial Accounting → Financial Accounting Global Setting → Fiscal
Year → Assign Co Code to Fiscal Year Variant
OBBO IMG → Financial Accounting → Financial Accounting Global Setting →
Document → Posting Periods → Define variants for Open Close Posting Periods
OB52 IMG → Financial Accounting → Financial Accounting Global Setting →
Document → Assign posting period variants to company code.
OBBP IMG → Financial Accounting → Financial Accounting Global Setting →
Document → Open & Closing Posting period
FBN1 IMG → Financial Accounting → Financial Accounting Global Setting →
Document → Define Document Number Ranges → Overview
OBA7 IMG → Financial Accounting → Financial Accounting Global Setting →
Document → Document Header → Overview
OB64 Financial Accounting → Financial Accounting global settings → Document →
Document Header → Maximum Exchange rate difference → Define Maximum
Exchange Rate Difference Per Company Code
OBC4 IMG → Financial Accounting → Financial Accounting Global Setting → Line
item→ Control →Define Fields Status Variants
OBC5 IMG → Financial Accounting → Financial Accounting Global Setting → Line
item→ Control → Assign FSV to company code
OBA4 IMG → Financial Accounting → Financial Accounting Global Setting → Line
item→ Define Tolerance groups for employees

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OB13 IMG → Financial Accounting →General Ledger Accounting →G L Accounts →

Master Records → Preparation → Edit Chart of account list.
OB62 IMG → Financial Accounting →General Ledger Accounting →G L Accounts →
Master Records →Preparation → Assign Co Code to Chart of Account.
OBD4 IMG → Financial Accounting →General Ledger Accounting →G L Accounts →
Master Records →Preparation → Define Account Group
OB53 IMG → Financial Accounting → General Ledger Accounting →G L Accounts →
Master Records →Preparation → Define Retained Earning Account.
OBY6 IMG → Financial Accounting Global Settings → Company Code → Enter Global
Parameters.
OKKP IMG → Controlling → General Controlling → Organization→ Maintain
Controlling Area.
KANK IMG → Controlling → General Controlling → Organization → Maintain number
ranges for controlling documents.
OKEQ IMG → Controlling → General Controlling → Organization → Maintain
Versions.
KA06 IMG → Controlling → Cost Element Accounting→ Master Data→ Cost Element
KA01 → Create Cost Element

With this we have configured our Enterprise structure for the company code 9999-SURYA
INFOTECH LTD.

In our next documents we will carry out the configuration of.

1. General Ledger Accounting

a. Cash Journal
b. House Bank configuration
c. Interest calculation
d. Bank Reconcliation
2. Accounts Receivable
a. Account Groups
b. Interest calculation
c. Dunning
d. Bills of Exchange
e. Foreign Currency Transaction
f. Down Payment
g. Provision for Bad Debts
3. Accounts Payables:
a. Account Groups
b. Automatic Payment program

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c. Spl GL Transaction
4. Assets Accounting :
a. Assets Class
b. Depreciation
c. Acquisition
d. Retirement

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