Mabsquare technologies Surendra

Configuration Document
Finance

Wave Name Debriefing Session Knowledge Recipients

< Wave Name > <Session Name> Onsite Offshore
Client SME Date: Time & Start 1. Sai Kiran 1. Surendranath.L
Bharat Light & Power 04/05/2019 2. Lokesh

Audio Track Duration to Complete

N0 25/05/2019

Prepared By Table of Contents

1. Basic Settings & General Ledger
Surendranath.L 2. Accounts Payable
3. Accounts Receivable
4. Asset Accounting
5. Controlling
6. New General Ledger Accounting (Concept)
7. Document Splitting
8. Foreign Currency revaluation
9. GST & withholding Tax
10. BRS & EBS
11. FI-MM & FI-SD INTEGRATION
12. LSMW
13. Month End & Year End Activities
14. Tables & Reports
15. Financial Statement Version (FSV)

Record of Release

Versio Modified By Reviewed Authorized Modifications Status Duration to

n No. By By Date Completed

1.0 Surendranath.L Sai Kiran Lokesh 04/05/2019 Not Yet Started 25/05/2019
1.1
1.2
1.3
1.4

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TABLE OF CONTENTS

1. INTRODUCTION…………………………………………………………

1.1 Client
1.2 SAP Landscape
1.3 SAP R/3 Architecture

2. ASAP METHDOLOGY…………………………………………………..

2.1 Project Preparation

2.2 Business Blue Print
2.3 Realization
2.4 Final Preparation
2.5 Go Live & Support

3. CONFIGURATON STEPS FOR MODULE WISE……………………

4. FI-MM & FI-SD INTEGRATION

FI & CO Module

FI (Finance & Accounting)-- External Controlling------ (Internal)

Basic Settings Basics for Controlling
General Ledger Accounting Cost Centre Accounting
Accounts Payable Cost Element Accounting
Accounts Receivable Profit centre Accounting
Asset Accounting Internal Orders
FI-MM & FI-SD INTEGRATION Profitability Analysis
LSMW COPA
Month End & Year End Activities
Financial Statements
Tables & Reports

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Introduction about SAP:-

SAP – S YSTEM APPLICATION AND PRODUCTS

SAP is the German based European multinational software Corporation Company and SAP is the
world leader in Enterprise application in terms of software and related service revenue based on
market capitalization.
SAP is the world’s 3rd largest independent software manufacture company…
IN IBM 4 Ex Employees started in GAAP.

Founded = 1st April 1972

Head quarters = Germany & wall dorf
CEO = Bill MC dermott (21st May 2014)
Subsidiaries = Success factors, Concur Technologies, SAP Hybris.
Employees = 91000 & 130 Countries
Products = ERP & Digital core, Procurement & Net work, HR, finance, Analytics & Custom
Engagement.

ERP – ENTERPRISE RESOURCE PLANNING

 ERP is way to integrate the data and process of an origination in to one single system. ERP
will have many components including Hardware and software.
 Initially Implementation of ERP package was possible only for vary large MNC’S and
Manufacturing companies due to high cost involved.
 Integration is an important part to ERP’S.
 ERP’S Main goal is to integrate data and process from all areas of an organization.

Components:-
 Sales & marketing, Purchasing, logistics, Shop floor control, AP, AR, FA, AA.

ERP integrated all the function

Organization Function

Purchase Product Sales Finance

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Versions Using in Present Company:-

ECC 6.0 = Stands for ERP Central Component

EHP 7 = Stands for Enhancement Package

Various Types of ERP Packages:-

SAP, Oracle, Financials, People Soft, BAAN, J.D. Edwards.

1.1 What is Client #....???

Client is the highest organizational unit in SAP and generally we can create 1000 clients in SAP and its is
the 3 digital Numerical code in SAP.
And in SAP one client information we can’t seen For an Example (whenever you are working with
Development client we doesn’t have Access to see another client…) for that if you want see different
clients like Testing 200 / production 300 you need to get an access or approvals from the respective
departments.
What is client?
BLP Group is a Client Mabsquare
(BLP Industries Ltd) (Consulting Firm)
(BLP Steel Ltd)

To Purchase Sap Package from Sap India Bangalore and the Mabsquare technology Will
Customize (Mapping) as per BLP Requirement in SAP
BLP (Bharath Light & Power) Mabsquare
Project Manager Project manager
Core team accounts manager FI Consultant
Cost accountant CO Consultant
Purchase Manager MM Consultant
Sales Manager SD Consultant
It staff ABAP programmer
BASIS Administrator

BLP: Core Team As - Is Process What Is Requested from SAP

Mabsquare: To - Be Process What Should Be Done In SAP
In live environment we should have minimum 2 clients some companies they keep 3 clients
So whenever you are login in to the SAP System by default you can find… for an Example….

Ex:
100: Development Client
200: Testing/Quality Client
300: Production Client

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So what data generally Contains:-

1. Application Data – Generally contains Tables Information’s.

2. Master data & -- It contains Vendor Info (Address), Customer Info (Address),GL Accounts,
Asset master, Cost center & many More Things
3. Customizing Data – Like in SAP whatever the things you have done in IMG Screen.
4. Organizational data – Info of the Company, Info of the business Area, Info of the segments
5. Transactional data – Combination of Organizational data + master Data.

So in generally you can see every day accountants will post different types of transactions in SAP. So that
data will be stored in Tables.

So we are talking about the mapping condition/situations from Non SAP (Oracle) to SAP….
What you goanna map..?
 First you goanna map what is Organizational structure.
 Then you bring master data
 Then you also bring the existing transactional data and further more….
The configuration by Organization Data and Master Data should support transactional data posting OLTP.
(Online Transaction Posting)… 1st we ill configure Org data 2nd we will configure Master data & 3rd
based on 1& 2 we can use or post transaction data.

In SAP we can see there are Types / different clients will be there:

1. Sandbox Client –
 Generally Trail & error Basis so it is used for demo structure purpose. So whatever you
have done in Sandox client it doesn’t affect the system / other servers because it is trail &
server basis.
 So in the real time process we can use sandbox client.
2. Golden Client (Development) –
 It is the kind of development server; here implementers will do the real time
configuration as per the client requirement.
 If it is satisfied with configuration they will transport it to the quality server for testing
purpose.
 Suppose if not satisfied then we have to Re-do the configuration to meet their
requirement.
3. ABAP Client –
 Technical team
 Configuration and codes are developed in this client, Here its generates workbench
request.

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4. Quality Client--
 Generally whatever Customization & Configuration done in development so it will
transfer to the testing team. Like Unit testing, integration testing, regression testing. Etc.
5. Production client—
 After approved configuration / codes moves to the production client.

See in every stage there will one client, and we can create 1000 client in SAP and every stage we will find
the different client. And it’s completely depending upon the Landscape.

SAP SYSTEM LANDSCAPE

1.2 Overview:-
Landscape is like a server system or like a layout of the servers or some may even call it the
architecture of the server’s viz. SAP is divided into three different landscapes Development, Quality
and Production.
DEVELOPMENT QUALITY PRODUCTION

1. Development (DEV) is where the consultants do the customization as per the company's
requirement. It would have multiple clients for ex: 190- Sandbox, 100- Golden, and 180-
Unit Test.
Depend upon the TO- BE document, if we can do the customization is called development.
2. Quality is where the core team members and other members test the customization. Quality
may again have multiple clients for ex: 300- Integration Test, 700 to 710 Training.
3. Production is where the live data of the company is recorded. It may have something like a
200 Production.

Now whatever we do in the Sandbox doesn't affect the other servers or clients. Whenever we are
satisfied with our configuration and we can use it moving forward, we RE-DO it in the golden client

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(this is a very neat and clean client and we cannot use it for rough usage). As we re-do everything
that we thought was important and usable, we get a transport request pop up upon saving every time.
We save it under a transport request and give our description to it. Thus the configuration is
transported to the Unit Test client (180 in this example).
But in the Testing client we cannot even access SPRO (Display IMG) screen. It's a transaction only
client where you perform the unit test. Upon a satisfactory unit test, we can move the good
configuration to the next Server (DEV). The incorrect or unsatisfactory configuration is corrected in
Golden (may again as well be practiced in the sandbox prior to Golden) and accordingly transported
back to 180 (Unit Test) until the unit test affected by that particular configuration is satisfactory.
The Golden client remains the 'database' or we may rather call it the 'ultimate' reference client for the
entire good, complete and final configuration that is being used in the implementation.
These three are landscape of any Company. They organized their office in these three ways.
Developer develops their program in Development server and then transports it to test server. In
Testing server check/test the program and then transport it to Production Server. Later it will deploy
to client from production server.

1.3 SAP R/3 ARCHITECTURE:-

R/3 stands for real-time three tier architecture. This is the kind of architecture SAP R/3 system has.
R/3 means three layers are installed in Different system/server and they are connected with each
other.

R---- Real Time

3---- Tire Architecture

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1 Tire (Single Time) 2 Tire 3 Tire

The Software SAP was installed It is nothing but client server It is Called as PAD Like,,,,,,
architecture & multiple clients.
Standard Alone 1. Presentation Layer
System
2. Application Layer
Server
3. Data Base Layer
This was prepared by
mainframe

In this main frame have T-code Client 1 Client 2 Client 3

concept

1. Presentation Layer:- Software installation purpose (GUI) Graphical user interface.

2. Application Layer:- Like,,,,, Finance , Sales Application
3. Data base Layer:- Like,,,, Oracle, Microsoft etc….
ASAP METHODOLOGY (ROADMAP)
(ACCELERATED SAP METHODOLOGY)
ASAP means accelerated SAP. SAP means Systems Applications and Products in data processing.
Acceleration means speed up the project.
ASAP methodology tells about where to starts and how to ends.

Phases in ASAP Road Map:

1. Project Preparation-------------------------- Respective Prospective

2. Business Blue Print------------------------- Document Preparization
3. Realization------------------------------------ Customization & Approval
4. Finalization (Final Preparation)------------ Testing
5. Go – Live and Support

1. Project Preparation:-

This is first and initial phase of the project where we start project.
Activities in project preparation-
a) POC (Proof of concept): Implementation partner will give demonstration on SAP
system how SAP system will work as per client requirement.
Ex: Reliance group wants to implement SAP system. Reliance Company selected
MBS Company to implement SAP.
Reliance Company – Client
MBS Company – Implementation Partner

b) Project Charter: Project Charter consists of two teams (Reliance company team and
WIPRO company team). Model project charter as follows,

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Client Team (BLP) Implementation Partner Team

(MBS)
Project Director Project Director
Delivery Manager Delivery Manager
Project Manager Project Manager
Team Leader Team Leader
Senior Power User Senior Consultant
Power User Consultant
Junior Power User Junior Consultant

c) Kick off Meeting: This is initial meeting in the project implementation. This is a
interactive meeting between client team and implementation team

d) Scope of the project: What are the components clients wants to implement. For ex:

1. SAP FI (Finance)
2. SAP CO (Controlling)
3. SAP MM (Materials Management)
4. SAP SD (Selling and Distribution)
5. SAP PP (Production Planning)
6. SAP HR (Human Resource Management)
7. SAP Quality
8. SAP CRM (Customer Relations Management)
9. SAP SRM (Supply Relations Management)
10. SAP Basis (System Administrator)
11. SAP ABAP (Advanced Business Application Program) etc

e) Time lines of the Project: For each phase of the project, we maintain deadlines. For
ex: Project duration is 1 Year

Phases of SAP implementation Duration of Each Phase

Project Preparation 01.01.2011 – 31.03.2011 (3 Months)
Business Blue Print 01.04.2011 – 30.06.2011 (3 Months)
Realization 01.07.2011 – 31.10.2011 (4 Months)
Finalization 01.11.2011 – 30.11.2011 (1 Month)
Go – Live and Support 01.12.2011 – 31.12.2011 (1 Month)
Note: Project manager will prepare time lines of project and allocate work to his subordinates
as per time lines.

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In project Preparation first of all we need to understand the business process.

 So what is the business process
 What is the nature of the business
 Either it is industrial, Service, Manufacture.

f) SLA (Service Level Agreement):- It is the agreement between the client &
Consulting Company.
g) Case study:-
 Case study B/w Client & consultant.
 Client will give the case study
 If we understand the case study we have to make it the document & if we are
not understand we can raise a questionary form.
h) Signed off:-
At the end of the phase every steps document will be sent by our client, once we get
the signed off from the client side then we can go head the BBP.

2. Business Blue Print: [ AS-IS] + [TO-BE]

 Here in this stage total configuration will come

 This Blue print stage two types is there
1. AS – IS
2. TO – BE

a) AS-IS Document: (It is the accounting document)

 AS – IS means Current Business Process
 AS – IS document client will prepare or we will sit with client & we ill prepare
 Client employees will prepare AS – IS Document. AS-IS Document consists of
‘as it is of their existing business’. This document will be submitted to
implementation partner team
b) TO-BE Document: (It is the SAP Document)
 TO – BE means Future Business Process.
 Current SAP Business process we will explain & we will give
 This document will be prepared by implementation partner team based on AS-IS
document which is submitted by Client employees
In this TO-BE Document we have to maintain navigation path, T-Code & Business
process.
c) GAP Analysis Document: This document will be prepared by implementation partner
team based on AS-IS document and TO-BE document. GAP analysis document consists
of differences between AS-IS Document and TO-BE Document.
d) Questionnaires to ask in Blueprint:-
Some companies will prepare questionnaires & Some companies will not prepare
questionnaires.
e) What information will gather from/ through client….???
 What they are doing currently they are different types of departments like GL,
AR, AP.
 Suppose assume that they are using tally, how they are using tally first we need to
understand.

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 Like in tally how they are posting, responses if we get an idea means we already
know sap based on that we can explain them this is the procedure in sap & we
will prepare the document. Once the document is signed up/approved means we
will go further step.
 If they have any doubt they will not signed up again we have to explain & we
redo it.

3. Realization:

This is third phase of the project where we configure/develop/implement the business

requirements of the client in the SAP system. Project manager will allocate work to the
consultants.
Base line configuration:
 We can configure the business requirements and test the business requirements
 Depend upon the TO-BE Document we can do the customization in the sense of
implementation.
 It is the major scope of the TO-BE Document.
Final Configuration: If there is any modifications, we will modify the configuration and
finalize realization phase
4. Finalization / Final Preparation:

 What you can done in the final configuration as per the customization we have to do test
here.
 End to End testing the business requirements
 Unit testing: Testing with each module wise like FI, MM, SD , CO
 Individual testing: If we have any sub module wise like GL, AP, AR AA Etc...
 Integration Testing: Integrate B/w two sub module people like FI-MM & FI- SD.
 User Training: Training to end users (client employees). Generally we follow
 Data migration from existing system to SAP system

5. Go – Live and Support:

This is fifth and last phase in the project where we give system to client. Client employees
will enter data into SAP system. We maintain internal help desk to give support to client
employees, if they have any problems while posting data in SAP system

WHAT IS CUT OVER ACTIVITIES:-

 We can transfer a data from old system to new system
 Like Non SAP to SAP
 We can transfer a data; Legacy system will be migrated in to SAP system.
 In Cutover activities we can transfer day to day transactions like,,, GL Masters, Customer
Masters, Vendor Masters, & Material masters.
 In FI Cutover activities are uploaded in to the Master data / Transactional data through
LSMW or BDC.
Once we have done Cut over activities we have in to the RICEFW:
R- Reports

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I – Interface
C- Conversion
E- Enhancement
F- Forms
W- Workflow
 Depends upon the client requirement we will complete
 If we are not getting any proper reports in SAP standards we have to take ABAP Help we
need the RICEFW.

ROADMAP

Depends upon the Roadmap we have to do the Implementation & Customization in our servers.
a) Implementation Project
b) Support project
c) Rollout project
d) Up gradation project

a) Implementation Project:
 Once we can do the as per the client requirement if we complete all the customization
is called Implementation
 As per TO-BE you can do the customization than once we can done in to the testing
than you can complete Implementation Project.
b) Support Project:
 If you can get any error while posting or while doing any transactions then we will
co-ordinate support team for resolving the issue…
 In support we have SLA base, Priority (P1 P2 P3 P4) and Tickets (Incident
management , service request, change request )
c) Rollout Project:
 Client and business is the same than you to do the rollout from USA –IND, USA –
ME etc.
 As per the country specification like tax something we have to do in rollout.
d) Up gradation Project:
 Version changes like Old version to new versions( 6.0 ECC) to (6.5 EHP)
e) Mergers & Acquisitions
f) Conversions: like if u want to do conversion from one platform to another platform Non
SAP to SAP.

TRANSPORT REQUEST:-

Transport request is nothing but change request

After making changes in configuration, click on save button.

Then system will give a popup to save you customization in request

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 Click on create button and give Deception like Creation of company in BLP

How to release transport request from development to quality Client:

Go to T-code SE10 or SE09

How to import task from development to Quality

Go to T-Code SCC1

a. Select client
b. Enter Transport request number
c. And tick TR
d. Select start immediately on top
e. Select Yes

USER ID DISPLAY
T-Code is SU01

How to UN Lock Locked Screens

T-Code is SM12

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Short Cut Keys:-

/n – back
/o – Create a new session
/i – Kill that session
/nex – Exit from SAP

How to Activate T-Codes:-

Go to SPRO—Select Additional Info on top—Display Key—IMG Activity

How to Use T- Codes in SAP

One user can work in number of sessions at a time (Window)

How to Logon in SAP:-

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SAP has given two screens

1. End user screen (SAP Easy Access)
2. Consultant screen (T- Code: SPRO) SPRO- SAP Project Reference Object
1. End user screen (SAP Easy Access)

2. Consultant screen (T- Code: SPRO) SPRO- SAP Project Reference Object

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Creation of Project in BLP (Bharath Light & Power)

Over view of Organizational Structure for BLP Client:-

 Describe the organization structure and how it relates to financial accounting module.
 Define each organization unit in the structure related to the financial A/cing module.
Client

Operating Concern

Controlling Area 1 Controlling Area 2

Company

Company Code 1 Company Code 2

Business Area 1 Business Area 2

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ENTERPRISE STRUCTURE:-

1. How Define a Company for BLP Client….?????

Definition of Company….
The company is the organizational unit & the company represents the group, it contains up to 6
characters and it is the alpha numeric.
The definition of the company is optional and the company is having N number of company
codes.
The company has several types of local currencies where we can derive separate financial
statements i.e., Profit and Loss Accounts & Balance Sheet.
All of the company codes within a company must use the same chart of accounts and fiscal year.

In SAP for Creation of the Company is Mandatory or not….???

Ans,, No it’s not a Mandatory

CONFIGURATION

1.1 Define Company

T-Cod = OX15
Table = T880

Navigation Path
SPRO---IMG---Enterprise Structure—Definition—Financial Accounting---Define Company

Click on New Entries & fill the details as per the client requirement & save it.

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Once clicked on saved system will ask customizing request from the request click on create
button and give the description.

1.2 Define Company Code

Company Code is the smallest organizational unit in the financial accounting for which a
complete set of books of accounts are maintained for external reporting purpose.
All the transactions must be posted and creation for legal individual financial statements like
Balance sheet and Profit & Loss Account.
Company Code is Mandatory and it’s require up to 4 characteristics.
Every company must have some requirements for external reporting purpose, therefore it is
required to create or define the company code for different countries and Assign them to
respective Company ID for consolidation purpose.
T-Code = OX02
Table = T880
Navigation Path
SPRO—IMG—Enterprise Structure—Definition—Financial Accounting—Edit, Copy,
Delete, Check Company Code.
Click on New Entries & fill the details as per the client requirement & save it.

Once Saved system will ask other details to fill Like Address, Mail Id, Contact num, Region etc.

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1.3 Assign Company Code to Company

Meaning of Assignment
It means establishing the link between organizational units like assigning the company to
company codes, assigning the FM area & assigning the credit controlling area etc…
T-Code = OX16
Table = T001

Once u go to screen click on below position and type your Company code and give your company
name and Save it.

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1.4 Define Business Area

 Business Area in SAP is an organizational unit, within accounting that can be classified as
geographical wise or product wise as per the company requirement.
 Under the business area you can generate the financial statements of Balance Sheet & Profit
and Loss Account for internal or external reporting purpose.
 You can maintain business areas in separate areas of operations within an organization as per
the client requirement like Bangalore, Hyderabad, Kolkata etc
 For assigning the business area is not a mandatory.
 If we maintain consolidated Business Area in SAP then we need to assign.

T-Code = OX03
Click on the New Entries button and create Business areas as per your client requirement.

1.5 Define Functional Area

 Functional areas in financial accounting are used to define the expenses in a company
according to individual function units wise.
 The most common functional areas are…
 Manufacturing
 Production
 Marketing
 Administration
 Sales & Distribution
T-Code = FM_FUNCTION & Earlier it was OKBD

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1.6 Activate Cost of Sales Accounting for Preparation

Navigation Path
SPRO—IMG—FA—FAGS—Company Code—Cost of Sale Accounting—select Activate
COSA

Once you open the screen click on POSTION button on below and activate which you’re
maintaining Company/ Company Code.

1.7 Define Credit Control Area

 The credit controlling Area in SAP FI is used to check the credit limit for the customers.
 The Credit Controlling Area are used One or More Company Codes.
T-Code = OB45

For this screen Click on New Entries and update the details as per the requirement & Save it.

1.8 Assign Company Code to Credit Control Area

T-Code = OB38

Go to below click on Position Button & select which you created CCRA and enter it & Save it.

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1.9 Define Fiscal Year Variant

 FYV it contains the number of posting periods in fiscal year and number of special periods.
 It allows maximum of 16 posting periods in each fiscal year.
 It consists of
 12 regular posting periods (April to March Financial year)
 4 Special periods (we can rectify the errors which can be used for Audit/ Tax
purpose)
 Indian companies follow 12 posting periods (April- March) with 4 special periods – V3
 US companies follow 12 posting periods (JAN - DEC) with 4 special periods – K4
 Some other companies follow posting periods from July – June or October – September with
4 special periods.
Why do we need to have a 4 special periods…???
This 4 special periods used for
 Closing activities
 Posting any adjustment entries recommended by the auditors.
 Preparations of the statements.
Types
Calendar Year (JAN – DEC) Indian Financial Year
We will not create posting periods
Non Calendar Year (Indian Financial Year)

Year Dependent Year Independent

NO of Years carry NO of Years not

forward carry forward

Short End Fiscal Year:-

 It is having complete 12 months
 Less than 12 months is Short End fiscal year like…(JAN-DEC) & (April-
March)
Difference between Calendar year & Non Calendar Year….

Calendar Year Non Calendar Year

1. It fallows the standard Structure 1. It will not fallows the standard structure.
2. Here we will not configure because its default 2. Here we can Prepare / we will configure.
SAP as taken place. 3. There is no Limit
3. Every month like 31, 28, 30 days as per the
standard calendar 12 months 12 periods.
4. There is a Limit

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T-Code = OB29
Go to new Entries / Copy and enter the details as per the below

Please observe the above screen, once you select Fiscal Variant (FV) line and double click
Periods in left side.
Please observe the below period column screen because in the above FV screen we have given
(B3 0r V3) April - March FY as per the requirement.

Once you have done and save it.

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2.0 Assign Company Code to Fiscal Year Variant

T-Code = OB37
Once the screen opens 1st select position button and 2nd give the Company code and give FYV
which you created and press Enter and Save it.

2.1 Define Posting Period Variant

 Posting period variant is used to control which accounting period is open for postings.
 Posting period we will used mainly in month end activities.
 It is used for opening & closing posting period in the fiscal year for posting purpose.
 Usually the current posting period is open and all other periods are closed during the month
end.
 The following activities are involved
 Define posting period variant
 Assign Posting period Variant to the company code
 Open & close posting periods.

T- Code = OBBO
Click on New Entries and give the Variant & Name as per the requirement & save it.

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Question:-
1. If I paid salaries on February 4th for the month of January. I want to see January month
salaries this the posting occurs on Feb 4th for the Jan month salaries, where I will see…???
Ans: the occurrence date is January the Entry/ Posting date is February. Obviously it will come
in the February month.
2. If I want to generate a report how much salaries I paid in the month of January is 0 or
the amount which I posted in February can I show in Jan month salary…???
Ans: Whenever the Entry date/ posting date is triggered as February, this balance whatever it is
shown in the ledger balance February only.
So when you want to see January salaries which are posted in February. Then February month
only will be sowing it.
3. What is the advantage of keeping periods will open…???
Ans: See open in the sense most of the company pay last day of the month, in order to see the
balance in the ledger book (FS10N).
After this posting midnight @ 12pm Support Consultant / Authorize person he changes the
period 1 to 2 Like…(he close the January month & he February month.)

2.2 Assign Posting Period Variant to Company Code

T- Code = OBBP
Here please follow the below screen shot

2.3 Open and Closing Posting Period

 This posting periods can be maintained as per the account type and the year which
is to be open and which is to closed.
 It is used to control which accounting period is to be open for posting and ensure that
closed periods are remain balanced and reconciled.

T- Code = OB52
 Once you open Click on New Entries and give the details as per the requirement & Save
it.
 As per the below If you select (+) option in Accounting type no need to maintain again
any accounting type like (A – Asset), (D- Customer), (K- Vendor), (M- material), (S-
GL Accounts), & (V- Contract Accounts).
 For this Accounting types we will use for posting purpose in GL AP AR etc

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 Suppose if u have maintain particular Accounting Type like D- Customer then you have
to use only Customer posting only and we cannot use other posting until to select other
Accounting types.

(To open the Normal posting periods)

From period 1 = 01 (April) year = 2019
To period = 12 year = 2019
(To open special periods)
From period 2 = 13 year = 2020
To period = 16 year = 2020

2.4 Define Field Status Variant

 Field status variant is used to define the fields are used for inputs like Cost center,
Profit center etc which are entry fields & Hidden fields.
1. So what is the use of variant and the logical behind using the variant?
Field status variant is the tool which is provided by SAP to assign the same set of properties
for more than one object.
Example: we define fiscal year variant and can be assigned to more than one company code.
If field status variant is assigned to more than one company code same set of screen field will be
displayed while posting those company fields.

2. Difference between Field Status Variant and Field Status Group….????

 Field status variant will have Field Status groups, Field status group is maintained the GL
account, and FSG decided the status of the fields while posting the GL.
 All the Field Status groups are clubbed to a field status variant.
 The FSG is assigned to each GL account in Company code level.
FSG is mandatory field in GL creation and you can use this field to define which fields are
displayed when post the business transaction to create a GL account.

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The filed may have some of the following status:-

Suppress: - The field is hidden in screen or we cannot edit
Optional: - You can keep it blank or fill it.
Require: - You have to fill it.
Display: - You cannot fill any thing here.

T-Code for create FS = OBC4

Please follow the below screen step by step
1. Select the field status variant 1000 and select copy button.

2. After changing the name of variant and description just pres enter button it will display an
small information window. Now we have to click on “Copy all.

3. Once if you select Copy all button system will display another information button just pres
enter or continue button.

4. Once you press Enter and select FStV button and Double click Field status group button.

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5. Once you press FSG button and please see the below some of the list of groups appear.

6. Select & double click G001 FSG Button here u will find (Suppress, Option & Require)

Double click on the field status group “G001”

Double click “General data”
Select “Required entry” option against “Text” field. Click on Save

Double click on field status group “G001”

Double click “additional account assignments”
Select “Required entry” option against “Business area” field Click on Save

Double click on field status group “G005”

Double click on “General data”
Select “Required Entry” option against “text” field click save

Double click on field status group “G005”

Double click “additional account assignments”
Select “required entry” option against “Business area” field Click on Save

Double click on field status group “G005”

Double click on “payment Transactions”
Select “Required entry” option against “value date” Click on Saves

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7. Once you have done changes & click on save button.

2.5 Assign Company Code to Field Status Variant

T- Code = OBC5
Once you go to screen enter your FSV and Save it.

CHART OF ACCOUNTS
 The combination of all the GL accounts is called COA
 It is a list of GL Accounts / Group of GL accounts
 For the future for preparing of Balance sheet, P&L Accounts, Trail Balance COA useful.
Under the COA certain parameters are there….
 Length of GL Accounts like (1-10) 1 is minimum & 10 is maximum.
 Language of GL – English
 Controlling Integration
Types of COA:-
Operating COA:-
 Individual transactions
 Whatever you are going to do in organization / Business point of view
everything will come under COA.
 Like whenever you post the transaction COA require.
 Like you post the Executive report, Master data Creation, everything 1 st
point require COA.
 Like you can take the balance report, line item report, Master report 1st thing
require COA. That’s y everything we are going to create under COA directly or
may be indirectly.

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Group COA:-
 For the consolidation purpose we will use group COA
 They help in generating reports at the corporate.
 In which situation we need the GCOA…???
GCOA required for material ledger, Group reporting & intercompany
transactions.
Country Specific COA:-
 CSCOA rarely we are using.
 It is the list of GL Accounts used to meet the country specific legal requirements.
 In India same COA same fiscal year
 In US same COA different fiscal year

2.6 Define Chart of Accounts:

T-Code: OB13
Database Table: T004, T004T

Chart of Accounts Organisation structure.

Client

Operating COA

Comp Code 1 Comp Code 2 Comp Code 3

Once you go to screen click on New Entries button and fill the details as per the requirement and
save it.
If it is require to create GCOA you can create it.

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2.7 Assign Company code to COA.

T-Code: OB62
Database Table: T001
Once screen will open click on to button and enter Company Code and
against to your company code assign your chart of accounts as follow:

Click on save button to save the activity and go back to SPRO screen.

2.8 Define Account Groups:-

T-Code: OBD4
Database Table: T077S, T077Z
 Basically we are creating for master records
 The Account group relates to GL master not for Financial Statements.
 It is the list of GL Accounts will be segregated in to Accounts groups like…
 Liabilities
 Assets
 Income / Revenues &
 Expenses
 The Account Group controls the fields in the general ledger master record and
Number ranges for general ledger master record.
 We can create N number of account groups in SAP system.
 We are going to define 4 digit code is technical purpose. And for each group you
are going to create 1 number range, for this number range is master data like
(100000-199999) within this range we can create.


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Once you Enter on T-Code so will take you to screen here click on it will take to following
screen.
Please find the below number ranges from 100000 to 199999 within this no range we are going to
create Gl master like liabilities, Assets, Income & expenses.

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2.9 Define Retain Earnings:-

T-Code: OB53
 It means it is used to carry forward the balance from one fiscal year to next fiscal
year.
 It will come under Year End Activities
Example:
In Balance Sheet this year closing balance is 1000 & we are going to carry forward the Balance
in next year as a opening balance to the same year.
Instead of transferring directly P&L we will transfer retaining account.
Once you enter T-Code so will ask for Chart of accounts as follow:

In this screen enter your chart of accounts and pres enter or continue button. It will display the
following screen as follow:
1st Give P&L Statement Colum is X
2nd Give Account Colum is 101000 and press enter. If you get any warning message ignore and
enter twice and save it.

Now click save button it will display following warning message.

Now just pres enter button twice and Save it.

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3.0 Document Types & Number Ranges:-

Document Type:- T- Code (OBA7)
Document types we distinguish between Original Document (Accounting Doc) & IT Document
(Processing Document)
Original Document (Accounting Doc) are receipts, invoices, checks, or bank statements.
IT Document (Processing Document) are sample documents, recurring documents & Accounting
Document
Definition: Document type means to differentiate business transactions. Business transactions are
Customer invoice, Vendor Invoice, Customer incoming payment, Vendor outgoing payments, General
posting, Depreciation posting, Goods Receipt, Goods Issue etc. For every business transaction, we
maintain document type. For every document type, we maintain document number ranges. Document
type controls Number ranges and account types.
Ex:
Sl.No Document Description Number From number To number
type range

1 SA General posting 01 0100000000 0199999999

2 KR Vendor Invoice 19 1900000000 1999999999

3 KZ Vendor out going payment 15 1500000000 1599999999

4 KA Vendor Document 17 1700000000 1799999999

5 KG Vendor Credit memo 17 1700000000 1799999999

6 DR Customer invoice 18 1800000000 1899999999

7 DZ Customer incoming payment 14 1400000000 1499999999

8 DA Customer Document 16 1600000000 1699999999

9 DG Customer Credit Memo 16 1600000000 1699999999

10 AF Depreciation 04 0400000000 0499999999

The Document Consists of Two Types are:-

 Document Header
The document header is a part of the document that contains information that applies to the entire
document, such as the document date, posting date, posting period, document number& Document
type.
 Document Line Item
The document line item is a part of the document that contains information on an item. This includes
the amount, an account number, whether the item is a debit or credit, and additional information
depending on the transaction to be posted. A document line item can also contain additional account
assignments (for example, profit center, cost center) and an explanatory text.
You can display a document in two different views in General Ledger Accounting:
 Entry View

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In the entry view, a document contains the document line items originally entered or transferred from
the original component.
 General Ledger View
In the general ledger view, a document contains the document line items originally entered or
transferred from the original component, split line items generated by document splitting, or
additionally generated clearing items. Documents in the general ledger view always apply to a specific
ledger.
You can display the posted documents in the entry view and in the general ledger view. For more
information, see Document Display.
 The Document types are defined at the client level and therefore valid for all company code
 The Document type classifies the accounting documents. It is stored in the document
header.
3.4 Define Document Type for Entry View:-
T-Code OBA7 Data base Table: T003, T003T
Once Enter the T-Code or Go to Path so will take you to screen as follow

1st click on button

2nd enter Document type

3rd once if you enter the document type system will take you to screen and double click SA

4th Once you double click SA Document type system will take you screen and follow as marked items &
save it.

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Number Ranges:- T- Code (FBN1)

 The Number ranges for Document types are defined at Company Code Level.
 In number ranges maximum we give 10 Numbers
Once you go to Document type screen in OBA7 from there double click Number ranges information
button as like below.

Once you double click Number ranges information system will take you on screen as below and
here give your Company Code & Double Click change Intervals button as below and give Number
range and Save it.

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3.5 Tolerance Groups:-

1. Tolerance groups for GL accounts:

Based on the requirements of accounting department we define different tolerance groups and we
assign them in the respective GL account master records. Based on the limits specified in those
tolerance limits, the differences in that GL account is automatically transferred to profit and loss
account. The limits are applied at account level not for the every transaction level in that gl account.
A tolerance group can be assigned in any number of GL account master records. But a gl account
master record can be assigned with only one tolerance group. The upper limits can be specified
either for the debit difference or for credit difference separately.

2. Tolerance groups for GL accounts:

For the employees of the accounting dept. we define the upper limits for posting procedures. The
following are the posting procedures.

1. The amount of a document an employee can post into gl accounts, vendor

accounts, customer accounts and asset accounts
2. The amount of the open item he can deal with
3. The percentage of cash discount he can offer or post
4. The amount of payment difference he can accept.

Configuration

1. Tolerance Group for GL Accounts: - T- Code is OBA0 Database Table : T043S

Once you enter the T-Code so will take you to screen here click on it will take to
following screen.

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Click on save button to save the activity and go back to SPRO screen.

2. Tolerance Group for Employees: - T- Code is OBA4 Database Table : T043T

Once you enter the T-Code so will take you to screen here click on it will take to
following screen.

Maintain above parameters and save

Click on save button to save the activity and go back to SPRO screen.

3. Tolerance Group for GL Accounts: - T- Code is OBA3 Database Table : T043G, T043GT

Click on (IMG Activity),/ T-code so will take you to screen here click on it will take to
following screen.

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Click on save button to save the activity and go back to SPRO screen.

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4. Global Parameters: - T- Code OBY6

Click on (IMG Activity),/ T-code so will take you to screen here click on &
Give Your and select you Company code it will take to following screen
and fill up the details as below.
Select “Business area financial statements”
Select “propose fiscal year”
Select “define default value date”
Select “negative postings allowed”

Click on save button to save the activity and go back to SPRO screen.

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3.6 Assign Country to Calculation Procedure

Definition: We calculate taxes as per country legal requirement. Tax procedure will be assigned to
country. Calculation procedures containing the necessary specifications for the calculation and
posting of taxes on sales/purchases have already been defined in the standard SAP system for
certain countries. We discuss tax procedure in later discussions [SAP MM (Materials Management)
and SAP SD (Selling and Distribution) Integration].

T- Code OBBG
Once you enter the T-Code so will take you to screen here click on it will take
to following screen.
Enter the Company code & Give Proc column & Save it.

3.7 Deactivate Document splitting

Explanation: We discuss document splitting in controlling area. If you are not inactivate document
splitting, following error message will come while posting transactions “There is no item category
assigned to account”
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General Ledger Accounting (New)- Business
Transactions- Document Splitting- Activate Document Splitting

Once you go to path so will take to following screen & double click on deactivation button.

Once you double click on deactivation button it will take you on another screen & click on Position
button & give your Company Code and click on Inactive button as the below screen.

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Interview Questions of Basic Settings:-

1) What do you know client in SAP and Types explain…?
2) Explain the System Landscape in SAP….???
3) What do you know about R3 Architecture…??
4) Explain the ASAP methodology & its phase how it will work….?
5) What is cut over activities & explain RICEFW….??
6) What is transport request & what is the purpose…???
7) What is Company & why we have to create it….????
8) What is company code & why it’s mandatory…???
9) Explain your company organizational structure…??
10) What is business area….???
11) What is chart of accounts & types explain…???
12) What is fiscal year variant…??? & explain calendar & non calendar year variant…???
13) Explain difference between field status variant & field status group….??
14) What is posting period variant…???
15) Why we need to create open & close posting period variant…??
16) What is document type & number ranges…??
17) What is retained earnings…? Can we use multiple retain earnings account & what is the
impact..???
18) What is tolerance group…???

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