SAP FICO Tutorial

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SAP FI stands for Financial Accounting and it is one of important modules of
SAP ERP. It is used to store the financial data of an organization. SAP FI
helps to analyze the financial conditions of a company in the market. It can
integrate with other SAP modules like SAP SD, SAP PP, SAP MM, SAP SCM,
etc.

SAP Controlling (CO) is another important SAP module offered to an

organization. It supports coordination, monitoring, and optimization of all
the processes in an organization. SAP CO includes managing and
configuring master data that covers cost and profit centers, internal orders,
and other cost elements and functional areas.

This is an introductory tutorial that covers the basics of SAP FICO and how
to deal with its various modules and sub-modules.

Audience
This tutorial will be extremely useful for professionals who aspire to learn
the ropes of SAP FICO and implement it in practice. It is especially going to
help consultants who are mainly responsible for implementing Financial
Accounting and Cost Accounting with SAP ERP Financials.

Prerequisites
It is an elementary tutorial and you can easily understand the concepts
explained here with a basic knowledge of how a business deals its
Financials. However, it will help if you have some prior exposure to
accounting and how to deal with financial data.
 SAP FI - Overview
SAP FI stands for Financial Accounting and it is one of important modules of
SAP ERP. It is used to store the financial data of an organization. SAP FI
helps to analyze the financial conditions of a company in the market. It can
integrate with other SAP modules like SAP SD, SAP PP, SAP MM, SAP SCM,
etc.

SAP FI comprises of the following sub-components −

 Finance Accounting General Ledger.

 Finance Accounting Accounts Receivable and Payable.

 Finance Accounting Asset Accounting.

 Finance Accounting Bank Accounting.

 Finance Accounting Travel Management.

 Finance Accounting Fund Management.

 Finance Accounting Legal Consolidation.

Where Do We Use SAP FI?

SAP FI module enables you to manage financial accounting data within an
international framework of multiple companies, currencies, and languages.
SAP FI module mainly deals with the following financial components −

 Fixed asset

 Accrual

 Cash journal

 Accounts receivable and payable

 Inventory

 Tax accounting

 General ledger

 Fast close functions

 Financial statements
  Parallel valuations

 Master data governance

SAP FI consultants are mainly responsible for implementing Financial

Accounting and Cost Accounting with SAP ERP Financials.

SAP FI - Submodules
SAP FI has a collection of submodules, as depicted in the following
screenshot −

Finance Accounting - General Ledger

A General Ledger contains all the transaction details of a company. It acts
as the primary record to maintain all accounting details. Common general
ledger entries are customer transactions, purchases from vendors, and
internal company transactions.

Common T-codes that are used to maintain G/L accounting −

 F-06-post incomeing payment

 F-07-post outgoing payment

 FBCJ-cash journal t code

 FB50-posting journal vouchers

 FB02-change document
Finance Accounting - Accounts Receivable and
Payable (AR / AP)
It includes the details of amount that is paid by the customer and the
amount that is paid by company to the vendors. In other words, AP includes
all the vendor transactions and AR includes all the customer transactions.

Common SAP AR T-codes −

 FD11-customer account analysis

 FD10-customer account balance

 FRCA-settlement calender

 VD01-create customer

Common SAP AR Tables −

 KNA1-general data in customer master

 KNVV-customer master sales data

 BSIW

Common SAP AP T-codes −

 XK01-Create vendor account

 MK01-create vendor purchasing account

 MK02-change vendor purchasing

 FCHU-create reference for check

Common SAP AP Tables −

 LFA1-vendor master general section

 LFM2-vendor master record purchasing data

 LFBK-vendor master bank details

Finance Accounting Asset Accounting

Asset Accounting deals with all the fixed asset of the company and provides
all the transaction details about fixed assets. The asset accounting module
of Finance Accounting works closely with other modules like SAP MM, SAP
Plant Management, EWM, etc.

Common T-codes used for Asset Accounting −

 AT01

 AT03

 AUN0

 ASEM

Example − When a company purchases an item that can be considered as

an asset, the details will be passed to Asset accounting module from the
SAP MM module.

Finance Accounting Bank Accounting

It deals with all the transactions done through bank. It includes all the
incoming and outgoing transactions performed, balance management and
bank transaction master data.

You can create and process any type of bank transactions using the Bank
accounting component.

Common Bank Accounting module tables that are used for this are −

 LFBK

 BNKA

 KNBK

Common T-codes with bank accounting −

 FIBLAROP

 OBEBGEN

 FI13

 FF_6

 RVND
Finance Accounting Travel Management
This module is used to manage all the travel expenses of a company. It
involves all the travels request, their planning and expenses involved in all
the requested trips.

It helps an organization to manage travel expenses in an efficient manner,

as it provides integration with all the other modules of SAP.

Common Travel Management T-codes −

 PR05

 PRTS

 TRIP

 PR00

Common Travel Management tables −

 TA22B

 PTRV_HEAD

 FTPT_PLAN

 FTPT_ITEM

Finance Accounting Fund Management

This module is used to manage funds in a company. Fund Management
module interacts with other modules like Bank accounting, General Ledger
(G/L, SAP AR/AP, and SAP Material Management, etc. to get fund details.

It involves all the transactions for fund receiving, fund expenditure, and
future expenses. It helps a company to create budget forecasting and to
use the funds in a proper way.

Common tables that store Funds management data −

 FMFCTR

 FMIFIIT

 FMIT
Common SAP Funds Management T-codes −

 FM5I

 FMWA

 FMEQ

Finance Accounting Legal Consolidation

It helps an organization to treat its multiple units as a single company,
hence it enables to view all the details as a single financial statement for all
the companies under that group. An organization can get a clear idea of its
financial conditions as a single entity.

Common tables in FI Legal Consolidation module −

 FILCP

 MCDX

 GLT3

 T000K

Note − FI-Legal Consolidation module was supported in older versions of

SAP ERP implementation. This work is performed by SAP Business Process
Consolidation BPC and SEM-BCS now.
 SAP FI - Company Basics
A company is defined as the smallest unit for which financial statements can
be created in accordance with commercial legal regulations.

In SAP FI, a company can comprise of multiple codes, however it acts as a

single unit for which financial statements are available. All the company
codes must use the same chart of accounts list and fiscal year, however
each code can have a different local currency.

A chart of accounts list consists of all the chart of accounts that can be used
and each code must have one chart of account.

A fiscal year normally consists of twelve months’ time period where

company creates the financial statements.

SAP FI – Create Company

Login to SAP FICO
Use T-code SPRO → click on SAP Reference IMG → New window will open.
Expand SAP Customizing implementation guide → Enterprise Structure →
Definition → Finance Accounting → Define Company → click on Execute (see
the pointer in the screenshot).

A new window will open → click on New Entries → New Entries: Details of
added entry

You need to provide the following details to create a new company −

 Enter the company code to represents group of company.

 Enter the company name.

 Enter the full address-street, PO Box, postal code, city.

 Enter the Country.

 Enter the Language key.

 Enter the currency

The next step is to save the company details → CTRL+S or as shown in the
above screenshot.

SAP FI – Create Company Code

In SAP FI, a company can comprise of multiple codes, however it acts as a
single unit for which financial statements are available. Company code is
the smallest unit in an organization for which financial statements (profit-
loss statement, etc.) can be generated.

Create, edit, delete a company code

Let us discuss how to create, edit, and delete a company code. Take a look
at the following screenshot.
Expand Enterprise Structure as mentioned in the previous topic → Definition
→ Financial Accounting → Edit, Copy, Delete, check company code →
Execute using click on the watch image → New window will open → You can
create a new company code by selecting both the options.

Select Edit, Copy, Delete, and Check Company Code. It allows you to copy
all the configurations and tables automatically.

If you select Edit company code, you will get the following window → click
on New Entries and update the code details.
You can click on the Address button and update the following fields. Once
the Address field is updated, click the Save button.
 SAP FI - Define Business Area
Business Areas are used to differentiate transactions that come from
different lines of business in a company.

Example

There is a big company XYZ which runs multiple businesses. Let us assume
it has three different domains like manufacturing, marketing, and sales.

Now you have two options −

 First is to create different company codes.

 And the other better option is to create each of these business lines into the
business areas.

The benefits of using Business Areas in this case are as follows −

 You can use these business areas if other company codes require the same
areas.
 It is easy to configure if you use a Business Area, as you just need to attach to
the company code and the other details in that business area will get attached
automatically.
 By using Business Areas in controlling, you can create Profit and Loss statement,
Balance Sheet, etc. for business areas. Hence it is used for management
accounting in a few companies.

Note − Business areas are used more in Controlling as compared to

Finance Accounting.

How to create a new Business Area in SAP FI?

Expand Enterprise Structure as mentioned in the previous topic → Definition
→ Financial Accounting → Define Business Area → Execute → Go to New
Entries.
Enter the 4 digit Business Area code and save the configuration.
 SAP FI - Define Functional Area
Function Areas in finance accounting are used to define the expenses in a
company according to individual function units. The most common
Functional Areas are −

 Manufacturing

 Sales and Distribution

 Production

 Administration

How to Define a Functional area in SAP FI?

You can define a Functional Area using the T-code FM_FUNCTION (Earlier it
was OKBD, but this is obsolete). It will open a new window.

Click on Create Functional Area as shown below and a new window will
open.

Enter the following details −

 Name of Functional Area.

 Description

 Validity to and from date

 Expiration date and Authorization.

Once all the details are provided, click the Save button at the top. Once you
click Save, you will see a message at the bottom that a new functional area
has been created.

Functional Areas are used to create Profit and Loss statements using the
cost of sales accounting and they are also used to analyze the cost of sales
accounting. For this, you need to activate the cost of sales accounting as
follows −

Go to SPRO → SAP Reference IMG → Financial Accounting → FI Global

Settings → Company Code → Cost of Sales Accounting → Activate cost of
sales accounting for preparation.
 SAP FI - Define Credit Control

Credit Control in FI is used to check the credit limit for the customer and it
can use one or more codes. It is used for credit management in Application
components such as Account Receivable (AR) and Sales and Distribution.

The credit control area is determined in the following sequence −

 User exit

 Distribution channel

 Customer master

 Company code for the sales organization

How to define a Credit Control Area?

A Credit Control Area is defined in accordance with the areas of
responsibility for credit monitoring. Use the T-code SPRO → click SAP
Reference IMG. It will open a new window.

Expand SAP Customizing implementation guide → Enterprise Structure →

Definition → Finance Accounting → Define Credit Control Area → Execute.
Click Execute → New entries → Enter the below details → Save. Now you
have successfully configured the Credit Control Area.
Once you create the Credit Control Area, the next step is to assign a
company code to the credit control area.

Expand Enterprise structure → Assignment → Finance Accounting → Assign

company code to credit control area → Execute.

A new window will open → click Position → it will open another new window.
Enter the company code and click Continue.
 SAP FI - General Ledger
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The General Ledger is used to record all the business transactions in a

software system.

SAP FI – Chart of Accounts

The FI chart of accounts represents the list of GL accounts that are used to
meet the daily needs and the operating country’s legal requirement in a
company. The master chart of accounts must be assigned to each company
code.

Chart of accounts (COA) can be divided into the following types −

 Operating Chart of Accounts − It contains all the General Ledger accounts

that are used to meet the daily needs in a company. The operating chart of
accounts has to be assigned to a company code.
 Country Chart of Accounts − It contains a list of all General Ledger accounts
that are required to meet the operating country’s legal requirements. You can
also assign a company chart of account to the company code.
 Chart of Accounts Group − This COA group contains a list of all the G/L
accounts that are used by the entire company.

How to create a new Chart of Accounts?

You can create a new Chart of Accounts by using the T-code OB 13 or by
going to Finance Accounting → G/L accounts.

Type the T-code OB13 in SAP Easy Access and it will take you to the
following screen −
This window can also be opened by following the path −

T-code SPRO → SAP Reference IMG → Financial Accounting → General

Ledger Accounting → G/L accounts → master data → Preparations → Edit
Chart of Account Lists → Execute → New Entries to create a new charts of
account.

You can choose Controlling Integration as manual creation of cost elements

or automatic creation of cost elements. (Recommended to use manual
creation).
Group Chart of Accounts is used for report consolidation. Uncheck the
Blocked checkbox under the status tab and click the Save option.
 SAP FI - COA Group

You can create a SAP FI chart of accounts group as per your requirement.
To effectively manage and control a large number of G/L accounts, you
should use COA groups.

How to define Chart of Accounts Group?

There are two ways you can create a new COA group. The first method is to
use the T-code OBD4.

You can also reach to this screen by following the path −

T-code SPRO → SAP Reference IMG → Financial Accounting → General

Ledger Accounting → G/L Accounts → Preparations → Define Account Group
→ Execute → New window will open → New Entries.
Populate the following fields in the COA group: Chart of Account Key, Acct
Group, Name, From Acct. and To Account details.
 SAP FI - Retained Earnings Account

Retained Earnings Account is used to carry forward the balance from one fiscal year to the next fiscal year.
You can assign a Retained Earning Account to each P&L account in the chart of accounts (COA). To
automatically carry forward the balance to the next fiscal year, you can define P&L statements as per COA
and assign them to the retained earning accounts.

How to define Retained Earnings Account?

There are two ways to define a Retained Earnings Account. You can either use the T-code OB53 or by T-
code SPRO. Go to SAP Reference IMG → Financial Accounting → General Ledger Accounting → G/L
Accounts → Preparations → Define Retained Earnings Account → Execute.

Enter the Chart of Accounts to define the Retained Earning Account for COA and press Enter.
Provide the P&L Account statement account type and account → Press Enter and save the configuration.
 SAP FI - G/L Account
General Ledger (G/L) accounts are used to provide a picture of external
accounting and accounts and to record all the business transactions in a
SAP system. This software system is fully integrated with all the other
operational areas of a company and ensures that the accounting data is
always complete and accurate.

How to Create a New G / L Account?

You can use the T-code FS00 to centrally define a G/L account. Refer the
following screenshot.
You can also use the following path −

In SAP R/3, go to Accounting → Finance Accounting → General Ledger →

Master Records → G/L accounts → Individual Processing → Centrally.

In the field G/L Account, enter the account number of G/L account and the
company code key and click the Create icon as shown in the following
screenshot −
The next step is to enter the details in the Charts of Account.

Account Group
Account Group determines the group for which the G/L account must be
created, for example, Administrative Expenses, etc.

P&L Statement Acct

If the G/L account is to be used for P&L Statement Account, then select this
option, otherwise use Balance Sheet Account.
Under description, provide a short text or G/L account long text.

The next step is to click the Control Data and provide data for Account
Currency and other fields such as Balance in local currency, Exchange rate
difference key, Tax category, posting without tax allowed, Recon account
for acct type, alternative account number, Tolerance group, etc. as shown
in the following screenshot.
Click Create / bank interest and provide data in the following fields −
Once the details are entered, click the Save button to create a G/L account.

Posting to General Ledger

After you complete the payroll run, the next step is to add results to the GL
accounts and this includes cost centers. GL posting includes the following
steps −

 Groups together posting-relevant information from the payroll results.

 Creates summarized documents.

 Performs the relevant postings to appropriate GL accounts and cost centers.

How Posting is Evaluated?
Each employee’s payroll result contains different wage types that are
relevant to accounting −

 Wage types such as standard salary, bonuses, and overtime represent expenses
for the company, which are posted to a corresponding expense account.
 Wage types such as bank transfer, employment tax, employee’s contribution to
social insurance, etc. are the employer’s payables to the employee, the tax
office, etc. and are posted as credits to a corresponding payables or financial
account.
 In addition, there are wage types such as the employer’s health insurance
contribution, which represents an expense for the enterprise and, at the same
time, a payable to the social insurance agency. For this reason, such wage
types are posted to two accounts − once debited as an expense, and once
credited as a payable.

Other types of wage types also exist, for example, accruals, provisions, etc.
These wage types are usually posted to two accounts, once debited as an
expense and once credited as a provision.
 SAP FI - Block G/L Account

In SAP R/3, go to Accounting → Finance Accounting → General Ledger →

Master Records → G/L accounts → Individual Processing → Centrally.

In G/L Account, provide the account number of G/L account and the
company code key. Click the Block button as shown in the following
screenshot.

Once you click the Block button, you will get different blocking options such
as −

 Block in Chart of accounts.

o Blocked for creation
 o Blocked for Posting

o Blocked for Planning

 Block in Company Code

o Blocked in posting
 SAP FI - Deleting G/L Accounts
In SAP R/3, go to Accounting → Finance Accounting → General Ledger →
Master Records → G/L accounts → Individual Processing → Centrally.

In the G/L Account, provide the account number of G/L account and the
company code key. To delete a G/L account, click the Delete button as
shown below.

The next step is to select deletion options for the G/L account −

 Deletion flag COA

 Deletion flag in company code.

  Select the correct check box and click the Save configuration.

SAP FI – Modify a G/L Account

To modify a G/L account, click the Change option. Refer the following
screenshot.

The next step is to select the changed field −

Click the Save button to effect the changes.

 SAP FI - Financial Statement Version
General Ledger accounts can be used as per legal regulations to generate
the final statements. Financial statement versions are used to create the
financial statements, to run account balance reports and for General Ledger
accounting planning.

You can also define multiple financial statement versions to generate

financial statements in different formats. Follow the steps given below to
create financial statement versions −

T-code SPRO → SAP Reference IMG → Financial Accounting → General

Ledger Accounting → Business Transactions → Closing → Document →
Define Financial Statement Versions → Execute.
Click the button New Entries as shown below −

Provide the following details −

 Enter the Fin. Stmt. Version.

 Enter the Description of the financial statement version.

 Maint. Language − Enter the language key in which you display texts, enter
texts, and print statement.

 Item Keys auto − It tells keys of financial statement items are assigned
manually or automatically when the financial statement versions are defined.

 Charts of Accounts − All accounts from this chart of accounts COA can be
assigned when you define the financial statement. If you do not specify a chart
of accounts, accounts from several charts of accounts can be assigned when
you define the financial statement.

 Group Account Number − Enter this Indicator that specifies that the group
account numbers should be assigned instead of the account numbers when you
define the financial statement version.

 Fun. Area Parameter − This indicator is used to make it possible to assign

functional areas or accounts in the financial statement version. Once the above
fields are defined, you can click on the save configuration and to generate
change request number. To edit this Financial Statement version, click on Fin.
Statement items → you can maintain nodes in version.
 SAP FI - Journal Entry Posting
The use of Journal Entry (JE) posting in SAP FI is to take a batch, validate it
for consistency, and create FI documents and post those entries in various
line item accounts needed for subsequent business processing.

JE Posting is a process that, with a few exceptions, runs "behind the

scenes" and is the heart of Journal Entry. It receives journal entry data
(representing financial transactions) from the PRA modules (Valuation,
Revenue Distribution, etc.), and summarizes them in batches and posts
them to the PRA JE line item tables and to SAP FI.

Journal Entry Posting is the link between the journal entries coming from
PRA applications and the FI documents and JE line item table items that are
created.

How to post a journal Entry in SAP FI?

Use T-code FB50 → Provide the Company code.

Enter the document date as shown below −

The next step is to provide the following details −

 G/L Account − Enter the account to be credited.

 Short Text − Description of amount.
 Amount in Doc Currency − Enter the amount to be credited.

Similarly, for the Debit, provide data in the following fields −

Click the Save button and you will get the document number to be posted
for the company code.

SAP FI - Fiscal Year Variant

Fiscal year variant contains the number of posting periods in a fiscal year
and the number of special periods. You can define up to 16 posting periods
in a fiscal year in the controlling component CO.

You need to specify the fiscal year variant for each company code. When
you create a controlling area, you also need to specify the fiscal year
variant.

The fiscal year variants of the company code and controlling area may only
differ in the number of special periods used. You need to ensure that the
fiscal year variants match. In other words, they may not have a time
conflict.
How to create a Fiscal year variant?
Go to SPRO → SAP Reference IMG → Financial Accounting → Financial
Accounting Global Setting → Fiscal Years → Maintain Fiscal year variant →
Execute.

It will open the following window.

Click New Entries and it will open a new window as shown below.
Provide the following details −

 FV − Enter 2-digit Fiscal year.

 Description − Enter a description of the Fiscal year variant.
 Year Dependent − If the start and the end date of the fiscal year changes
between year, then check this box.
 Calendar Year − If the fiscal year is same as the calendar year Jan-Dec, then
check this option.
 Number of Postings − Enter the number of posting periods for a Fiscal year.
 Number of special postings − Enter the number of special posting periods for
a fiscal year.

The next step is to save the details. Enter the customizing request number
that a new fiscal year variant is created.

You can maintain the posting period by using the Period option under the
Fiscal year variant.
 SAP FI - Posting Period Variant

SAP FI Posting period variant is used to maintain accounting periods that

are open for posting and all closed period are balanced. This is used for
opening and closing period in the fiscal year for posting purpose.

You can assign these posting periods to one or more company codes.

How to create posting period variants in SAP FI?

Go to SPRO → SAP Reference IMG → Financial Accounting → Financial
Accounting Global Setting → Document → Posting Periods → Define Variant
for open Posting Periods → Execute.
It will open a new window. Now, click New Entries.

It will open another window, as shown below. Enter the 4-digit Posting
Period Variant and name of the field. Click the Save icon to save this
variant.
Open and Close Posting Periods
Go to SPRO → SAP Reference IMG → Financial Accounting → Financial
Accounting Global Setting → Document → Posting Periods → Open and
Close Posting Periods → Execute.

Click the button New Entries, as shown in the following screenshot.

Now, you need to provide the following details −

 Var. = Enter 4-digit Variant code.

 Select Account Type −

o +=Valid for all account type (masking)

o A = Asset

o D = Customers

o K = Vendors

o M = Materials

o S = General Ledger Account

 From Per.1 = Enter Starting Period

 Year = Enter Year

 To Period = Enter Ending Period

 Year = Enter Year

 From Period2 = Enter First Special Period

 Year = Enter Year

 To Period = Enter Period

 Year = Enter Year

  Authorization Group = It is used to open a period for particular users

Once all the details are provided, click the Save button to save the open
and closing posting periods.

SAP FI - Field Status Variant

Field Status Variant is used to define the fields which are used for input like
cost center, profit center, plant, etc., which are entry fields, and hidden
fields. Field status Variant is a tool which is provided by SAP to assign the
same set of properties to more than one object.

Example − We define fiscal year variant and it can be assigned to more

than one company code. If a field status variant is assigned to more than
one company code, the same set of screen field will be displayed while
posting those company fields.

Difference between field status variant and field

status group
Field status variant will have field status groups. Field status group is
maintained in GL account and it defines the fields while posting to the GL.
How to create Field Status Variant?
Go to SPRO → SAP Reference IMG → Financial Accounting → Financial
Accounting Global Setting → Document → Line Item → Controls → Define
Field Status Variant → Execute.

It will open a new window. Select field status variants 0001 by clicking the
box before 0001→ click the Copy icon as shown below.
It will open another window. Enter the new Field status variant code and
the name of field name variant for the company. The target key must be
different from the source key. Press the Enter Key and click the Copy All
option.

You will get a confirming message, something like: "Number of dependent

entries copied: 41". Click the Save button.
 SAP FI - Field Status Group
Field status group is assigned to GL account. Through field status group,
one can define a field as optional, suppressed, or mandatory. According to
the field status groups, respective fields will be displayed are mandatory or
suppressed when the postings are made to that GL account.

All these field status groups are clubbed to a field status variant and the
Field status variant is assigned to a company code. With this, field’s status
groups from fields status variant can only be assigned when a General
Ledger account is created for a company code.

 Suppress − The field is hidden on the screen.

 Optional − The field is available on the screen, you can keep it blank or fill it.

 Require − The field is available on the screen, and you have to fill it.

 Display − The field is available on the screen, but it's grayed out, you cannot fill
anything in here.
 SAP FI - Define Posting Keys
Posting Keys in SAP FI are used to determine Account types (A, D, K, M,
and S) and also the type of posting. It is 2-digit numerical key.

Different Account Types in SAP FI −

 A = Assets

 D = Customers

 K = Vendors

 M = Materials

 S = General Ledger Account

Asset Posting Keys

Posting Key Description Debit/Credit

70 Debit Asset Debit

75 Credit Asset Credit

Material Posting Keys

Posting Key Description Debit/Credit

89 Stock Inward Movement Material Debit

99 Stock outward Movement Material Credit

There are various Account type posting keys available in SAP FI.

How to create a SAP FI Posting Key?

Go to SPRO → SAP Reference IMG → Financial Accounting → Financial
Accounting Global Setting → Document → Line Item → Controls → Define
Posting Keys → Execute.

Click the Create icon.

Enter the 2-digit numeric code (Example ‘02’) and the name of the posting
key and press the Enter key.
Now you need to provide the following details −

 Debit/Credit Indicator − Select Debit or Credit.

 Account Type − Select the Appropriate account type.
 Other Attributes − Select other appropriate attributes.
 Reversal Posting Key − Update the reversal posting key.
The next step is to click the Save icon to successfully configure the posting
key.

SAP FI - Define Posting Keys

Posting Keys in SAP FI are used to determine Account types (A, D, K, M,
and S) and also the type of posting. It is 2-digit numerical key.

Different Account Types in SAP FI −

 A = Assets

 D = Customers

 K = Vendors

 M = Materials

 S = General Ledger Account

Asset Posting Keys

Posting Key Description Debit/Credit

70 Debit Asset Debit

75 Credit Asset Credit

Material Posting Keys
Posting Key Description Debit/Credit

89 Stock Inward Movement Material Debit

99 Stock outward Movement Material Credit

There are various Account type posting keys available in SAP FI.

How to create a SAP FI Posting Key?

Go to SPRO → SAP Reference IMG → Financial Accounting → Financial
Accounting Global Setting → Document → Line Item → Controls → Define
Posting Keys → Execute.

Click the Create icon.

Enter the 2-digit numeric code (Example ‘02’) and the name of the posting
key and press the Enter key.

Now you need to provide the following details −

 Debit/Credit Indicator − Select Debit or Credit.

 Account Type − Select the Appropriate account type.
 Other Attributes − Select other appropriate attributes.
 Reversal Posting Key − Update the reversal posting key.
The next step is to click the Save icon to successfully configure the posting
key.
 SAP FI - Define Document Type
Document Type Key is used to distinguish between different business
transactions and to classify the accounting documents. It is also used to
determine the number range for documents and account types such as
asset, material, vendor, etc. for posting.

Common Document Type Keys are as follows −

Document Type Document Type Description

AA Asset Posting

AN Net Asset Posting

DR Customer Invoice

DZ Customer Payment

KA Vendor Document

KG Vendor Credit Memo

How to define Document Type in SAP FI?

Go to SPRO → SAP Reference IMG → Financial Accounting → Financial
Accounting Global Setting → Document → Document Header → Define
Document Types → Execute.
It will open a new window. Click New Entries and provide the following
details −

 Document Type − Unique 2-digit code.

 Number Range − Number Range Code.
 Reverse Document Type − Reverse Document Type Key Code.
 Number Range Information − Number ranges are maintained for document
types.
 Account Types allowed − Asset, Customer, Material, Vendor, and G/L
Account.
 Control Data − Control data for document type.
Once you enter the above data, click the Save icon. Enter the description of
document and save. It will save the configuration of the document type.
 SAP FI - Document Number Ranges
You can assign one or more document types to number range. The number
range is applicable to document type as mentioned in the document posting
and entry.

How to define Document Number Ranges in

SAP FI?
You can define document number ranges in SAP FI in two way. You can
either use the T-code FBN1 or go to SPRO → SAP Reference IMG →
Financial Accounting → Financial Accounting Global Setting → Document →
Define Document Number Ranges → Execute.

A new window will open. Enter the company code and click Change
Intervals as shown below.
It will open another window. Click Insert Interval.

Enter the following details −

 No − Number range code.

 Year − Enter Year.
 From Number − From number.
 To Number − To Number.
 Current Number − (By default it will be 0).
 Ext − (Internal or External)
After providing all these details, click Save to save the changes.
 SAP FI - Post with Reference
To post a document with reference in SAP FI, use the T-code FB50. Click
the Goto tab and Post with reference, as shown in the following screenshot.

Enter the following details −

After providing the necessary details, click the Save button at the top to
post a new document.
 SAP FI - Hold a G/L Document Posting
You can also hold posting of a G/L document or temporarily save the
document in the following conditions −

 When G/L document is not complete.

 Incomplete/Incorrect Information in the document.

 To save the document at a later stage.

To hold a G/L document posting, you can use the T-code FB50, and enter
the following details &minua;

 Enter Document Date

 Enter G/L account to be credited

 Enter Credit Account

 Enter G/L account to be debited

 Enter Debit amount

The next step is to click the Hold (F5) button at the top → Enter the
temporary document number and click Hold document.
 SAP FI - Park a G/L Document Posting
SAP FI also provides an option with Limited Authorization Amount for
Posting.

Example
An Accountant has an authority to post documents to a maximum amount
$2000. Now he has to feed a document with an amount of $5000 for which
he does not have the authority.

SAP FI provides a Park Facility for the document which allows the user to
save the document but the amount is not posted in the G/L accounts.

This allows to review the document later reviewed by a higher authority

Personnel who has appropriate posting amount authorization. Once
approved, the document is posted in the G/L accounts.

How to park a G/L document posting?

To hold a G/L document posting, you can use the T-code FB50, and enter
the following details −

 Enter Document Date

 Enter G/L account to be credited

 Enter Credit Account

 Enter G/L account to be debited

 Enter Debit amount

The next step is to press the Hold (F5) button at the top → Enter the
temporary document number and click Park document.
 SAP FI - G/L Reporting
There are various G/L reports that can be generated in SAP FI. The most
common ones are −

 G/L Chart of Accounts List

 G/L Account Balances

 G/L Account List

 G/L Account Totals and Balances

G / L Chart of Accounts List

Use the T-code S_ALR_87012326 or in the SAP Easy access menu, go to
Accounting → Finance Accounting → General Ledger → Information System
→ General Ledger Reports → Master Data → Chart of Accounts.
A new window will open. Enter the Chart of Accounts key → Execute (F8).
This will open a list of all G/L Chart of Accounts with respect to the key
mentioned.
G / L Account Balances
Use the T-code S_ALR _87012277 or in the SAP easy access menu, go to
Accounting → Finance Accounting → General Ledger → Information System
→ General Ledger Reports → Account Balances → General → G/L Account
Balances → G/L Account Balances.
Enter the input parameters like company code to generate G/L Account
Balances report → Execute.

G / L Account List
Use the T-code S_ALR_87012328 or go to the path given below −

Accounting → Finance Accounting → General Ledger → Information System

→ General Ledger Reports → Master Data → G/L Account List → G/L
Account List.
Enter Input parameters such as Company Code, Chart of Accounts, etc. to
apply filter to G/L Account List → Execute.
G/L Account Totals and Balances
Use the T-code S_ALR_ 87012301 or go to the path shown in the following
screenshot.
Enter the report input parameters such as company code, COA, etc. and
click Execute. A report will be generated based on input parameters.
 SAP FI - Accounts Receivable
SAP FI Accounts Receivable component records and manages accounting
data of all customers. It is also an integral part of sales management.

All postings in Accounts Receivable are also recorded directly in the General
Ledger. Different G/L accounts are updated depending on the transaction
involved (for example, receivables, down payments, and bills of exchange).
The system contains a range of tools that you can use to monitor open
items such as account analyses, alarm reports, due date lists, and a flexible
dunning program.

The correspondence linked to these tools can be individually formulated to

suit your requirements. This is also the case for payment notices, balance
confirmations, account statements, and interest calculations. Incoming
payments can be assigned to due receivables using user-friendly screen
functions or by electronic means such as EDI.

The payment program can automatically carry out direct debiting and
down-payments.

We have a range of tools available for documenting the transactions that

occur in Accounts Receivable, including balance lists, journals, balance audit
trails, and other standard reports. When drawing up financial statements,
the items in foreign currency are revalued, customers who are also vendors
are listed, and the balances on the accounts are sorted by their remaining
life.

Accounts Receivable is not merely one of the branches of accounting that

forms the basis of adequate and orderly accounting. It also provides the
data required for effective credit management (as a result of its close
integration with the Sales and Distribution component) as well as important
information for the optimization of liquidity planning.
 SAP FI - Customer Master Data
In SAP FI, all business transactions are posted to and managed in accounts.
You must create a master record for each account that you require. The
master record contains data that controls how business transactions are
recorded and processed by the system. It also includes all the information
about a customer that you need to be able to conduct business with him.

Customer master data is used by both the accounts and sales department
in an organization. By maintaining customer master data centrally, it can be
accessed throughout your organization and avoid the need to enter the
same information twice. You can also avoid inconsistencies in master data
by maintaining it centrally.

Example − There is a change in address of one of your customers, so you

only have to enter this change once in the system, and your accounting and
sales departments will always have up-to-date information.

How to create a customer master data centrally

in SAP FI?
Use the T-code FD01 or go to Accounting → Finance Accounting →
Accounts Receivable → Master Records → Maintain Centrally → Create.
A new window will open. Enter the following details −

 Select an account group.

 Depending on the type of number assignment (internal or external) used for the
account group, you also enter an account number.
 If you wish to maintain the company code data or the sales data as well as the
general data, also enter −
o A company code for maintaining the FI data (accounting data).
o A sales area for maintaining sales data.
 To continue, choose Continue.
Once you click Continue, a new screen appears with customer data. Enter
the following customer data and click Save.

 Enter the name of the customer.

 Enter Search Term, for searching the customer Id.

 Enter Street/House Number.

 Enter Postal code/City.

 Enter Country/Region.
Click the Control Data tab and enter Corporate Group etc. if the customer
belongs to a corporate group.
Click the second option Company Code data and go to Account
Management.
Enter Recon. Account number from the list provided. Go to Payment
Transactions, enter terms of payment, tolerance group, etc.

Once you are done with all the details, click the Save icon at the top.
 SAP FI - Block a Customer
You can block a customer account in AR so that postings are no longer
made to that account. You have to block a customer account before
marking a customer master record for deletion.

Example
You would also block a customer that you use only as an alternative
dunning recipient, so that nobody can post to that customer by mistake.

In Sales and Distribution (SD) application component, you can set the
following blocks for a customer −

 Posting block

 Order block

 Delivery block

 Invoicing block

How to block a customer account centrally?

Go to Accounting → Finance Accounting → Accounts Receivable → Master
Records → Maintain Centrally → Block/Unblock.
The initial screen appears. On this screen, you can specify the areas that
you need to block by entering the company code, sales organization,
distribution channel, and division. If you do not specify the key for an area,
the corresponding block fields are not set.
Enter the customer's account number and the company code. If you wish,
you can also enter the sales organization, distribution channel, and division.

The Block/Unblock Customer: Details screen appears.

To block posting, select the company code of the displayed customer

master record, or select all the company codes by selecting the
corresponding field.

To block orders, deliveries, and invoices, select either the displayed sales
area or all the sales areas. Save your entries.

Press Enter and a new window will open. Select the checkbox Posting Block.
Once the selection is done, click the Save button at the top.
 SAP FI - Delete a Customer
You can archive customer master records that you no longer need. When
data is archived, it is extracted from the SAP database, deleted, and placed
in a file. You can then transfer this file to an archive system.

Go to Accounting → Finance Accounting → Accounts Receivable → Master

Records → Maintain Centrally → Set Deletion Indicator.

Select the customer id, company code, etc. to be deleted as shown below
and press the Enter key.
A new window will open. Select the Deletion flag as shown below −

After selecting the Deletion flag, click the save icon at the top.
 SAP FI - Customer Account Group
There are different types of customer account group that can be created in
Account Receivable in SAP FI.

Group Name

X001 Domestic Customers

X002 Export Customers

X003 One Time Customers

How to create a Customer Account Group?

Go to SPRO → SAP Reference IMG → Financial Accounting → AR and AP →
Customer Accounts → Master Data → Preparations for creating customer
master data → Define Account Groups with screen layout (Customers) →
Execute.
A new window will open. Click New Entries as shown in the following
screenshot.

It will open another new window. Enter the following details −

 Customer Account Group − Enter 4-digit account group.

 Name − Enter the name under General data field.
 Field Status − Click Company code data.

Once you select Field Status, a new window will open.

Select Account Management from the select group and click Reconciliation
account Req. Entry.
Once this is done, click the save icon at the top to save the configuration.
Similarly you can create X002, X003 for other customers.
 SAP FI - One-Time Customer Master
In SAP FI, one-time customer master record is required for those customers
who don’t want to maintain their records separately or don’t have frequent
transactions.

To create one-time customer master, use the T-code FD01.

In the next screen, select account group overview button as shown below.
Select the account group for which one-time customer property is checked
→ click the tick mark 
In the main window, enter the following details. Enter the Customer ID as
per the number range assigned to this customer account type or if it uses
internal number assignment, leave it blank and the company code in which
this account has to be created.

Once you click the tick mark, a new window will open.

Enter the following details −

  Enter the name for the one-time customer.

 Enter the search term.

 Enter the communication language.

Click the Company code data once the above values are defined. Next, go
to Account Management tab and enter Recon Account. Then, save the
customer account details.
 SAP FI - Post a Sales Invoice

In this process, you post an open item for any customer. The customer is to
pay the invoice in cash. You then enter the payment in the cash journal.

T-code − FB70

Enter the company code you want to post invoice to as shown below −

Enter the following details: Customer ID of the customer to be invoiced,

invoice date, Amount for the invoice, Tax Applicable, and tax indicator.
Enter the payment details like payment terms in Payment tab. Go to Details
tab and enter the item details.

Once all the details are entered, click the Save button to generate the
document number.
 SAP FI - Document Reversal
You can also reverse an incorrect document and can also clear the open
items. A document can only be reversed if −

 It contains no cleared items.

 It contains only customer, vendor, and G/L account items.

 It was posted with Financial Accounting.

 All entered values (such as business area, cost center, and tax code) are still
valid.

How to reverse a document in SAP FI?

Use the T-code: FB08

Enter the following details −

 Document number to be reversed.

 Company Code.

 Fiscal year of posting.

 Reversal Reason.

 Enter posting date and period.

If the document includes a payment check, use void reason checkbox.

You can also click on option display before reversal at the top to see a
preview of reversal document. If things are OK, go back to the previous
screen and click Save.
 SAP FI - Post Incoming Payment
Once the customer has paid the billing document, you post the incoming
payment.

T-code: F-28

A new window will open. Enter the following details −

 Document Date.

 Company Code.

 Payment Currency.

 Cash/Bank Account the Payment is to be posted.

 Payment Amount.

 Customer Id of the customer making the Payment.

To check the list of open invoices, click Process Open Items at the top −

Enter the assigned payment amount value to balance with the invoice
amount. At the end, save the details.
 SAP FI - Foreign Currency Invoice
You can post a vendor invoice in a foreign currency, so that you can process
a currency analysis. You should not post your invoice in MM but rather
directly in FI. This makes it easier to post backdated invoices.

How to post an invoice in Foreign Currency?

T-code: F-43

A new window will open. Enter the following details −

After providing all the required details, click the Save icon.
 SAP FI - Incoming Partial Payments
In SAP FI, you can also post partial payments from the customers. These
partial payments are posted as separate open items.

Customers can see clearly what all invoices have been issued to customers
and what payments he has made. But it keeps the multiple open items,
until the invoice is fully paid/ cleared.

Example − There is a customer with an outstanding amount of 1500 and

he makes a payment of 500 as partial payment, then there will be two
separate open items of 1500 Debit and 500 Credit in the FI system and no
clearing document will be created.

How to post a Partial payment?

T-code: F-28

 Document Date

 Company Code

 Payment Currency

 Cash/Bank Account the Payment is to be posted

 Payment Amount

 Customer Id of the customer making the Payment

 Process Open Items

Once you click on Process Open Items → Go to Partial Payment tab and
select the invoice for which partial payment is done and the amount.

Click the Save button to post the document.

SAP FI - Reset AR Cleared Items

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In SAP FI, this is used to reset the incorrect payment invoices. If a payment
is made to incorrect invoices, then it can be reset.

How to reset AR cleared items?

T-code: FBRA

Enter the following details: Clearing Document number, Company Code,

and Fiscal Year in the above window.

Click the Save icon at the top.

Once you click the Save icon, enter the reversal reason of customer
payment and posting date and click  . It will generate a Reversal
Document Number.
 SAP FI - Credit Control
In SAP FI, Credit Control is used to specify and control the customer credit
limits. A credit control area can include one or more company codes. It is
not possible to divide a company code into several credit control areas.

The benefits of defining a credit control area in SAP FI are as follows −

 The credit control area is used for credit management in AR and SD

components.
 You define a credit control area according to the areas of responsibility for credit
monitoring. For each credit control area, you enter a key, a name, and the
currency in which the credit limit is to be managed in the credit control area.
You select a four-character alphanumeric key. In the simplest case, each
company code corresponds to one credit control area. In this case, we
recommend that you use the same key for the credit control area as for the
company code.
 Credit control can include one or more company codes and to enable it to do
this, you must assign the respective credit control area to the company codes.
 If a customer is created in several company codes that are assigned to different
credit control areas, a separate credit limit is managed for the customer in each
of the different credit control areas.

How to define a Credit Control area for a

customer in SAP FI?
T-code: FD32

A new window will open. Enter the following details −

 Enter Customer Id for the Customer for which you want display the Credit Limits.

 Enter the Credit Control Area.

 Check Central data section and press Enter.

Maintain the credit limit data for customers in the above window. Individual
limit shouldn’t be greater than the total limit for a customer.

Once the details are updated, click the Save icon at the top.
 SAP FI - Accounts Payable
SAP FI Accounts Payable is used to manage and record accounting data for
all the vendors. All invoices and deliveries are managed as per vendor
requests. Payables are managed as per the payment program and all the
payments can be made using checks, transfer, electronic transfers, etc.

All the postings that are made in the Account Payable are also updated in
the General Ledger simultaneously and the system also maintains forecasts
and standard reports that can be used to keep track of all the open items.

 XK01 − Create vendor (centrally)

 XK02 − Change vendor (centrally)

 XK03 − Display vendor (centrally)

 XK04 − Vendor Changes (Centrally)

 XK05 − Block Vendor (Centrally)

 XK06 − Mark vendor for deletion (centrally)

 XK07 − Change vendor account group

 XK11 − Create Condition

 XK12 − Change Condition

 XK13 − Display Condition

 XK14 − Create with cond. ref. (cond. list)

 XK15 − Create Conditions (background job)

 XK99 − Mass maintenance, vendor master

 XKN1 − Display Number Ranges (Vendor)

 SAP FI - Create a Vendor
Vendor Master Records are used by both the Accounting component and the
Purchasing component. Before you create a vendor master record in
Accounting, you need to make sure that the master record is not already
created in Purchasing.

How to create vendor master data in SAP FI?

You can create a vendor master record by referencing an existing one. In
this case, the system copies certain data from the reference master record,
however the system does not transfer all the data.

If you have SAP Material Management configured, you can create a vendor
master record centrally. Here we will discuss how to create vendor master
record for a company code.

Go to Accounting → Finance Accounting → Accounts Payable → Master

Record → Create.
The following window will open. If you are using an external number
assignment, enter the vendor account number, otherwise the system will
assign once you click "Save the master record".

Press Enter after entering the Company code, Account group. It will open a
new window will open where you need to enter the following details −

 Name of the Vendor.

 Term for searching the Vendor Id.

 Street/House Number and Postal code 6 digit/City.

 Country/Region and click the Next screen button at the top.

A new window will open. Enter the Vendor control group details. If the
vendor is from a corporate group, enter the corporate group name.
Once you press Enter or click Next Screen, enter the bank account details
as shown below and click the Next Screen icon.

Next, enter the contact person details, name, telephone, description and go
to the next screen.

In the next screen, enter the Recon Account and cash management group
(domestic/Foreign, etc.)
Click the Next Screen icon and enter the payment transactions accounting
details.

Enter Payt terms (like pay immediately, pay after 14 days 3% cash, etc.).
 SAP FI - Create Vendor Account Group
Use the T-code: OBD3 or go to the path given below −

SPRO → SAP Reference IMG → Financial Accounting → AR and AP → Vendor

accounts → master data → preparation for creating vendor master data →
Define Account groups with screen layout (Vendors) → Execute.

Click the New Entries button.

It will open a new window. Enter the following details −

 Unique key as Account Group key.

 Description for the Account Group.

 Select box for creating Account Group for One Time Vendors.

 Select the Field Status.

Once you provide the above details, click Edit Field Status and a new
window will open. Select the fields you want to maintain in the field status.

After providing the required details, click the Save icon at the top.

Enter the customizing request number as shown below to create a new

vendor account group.
Once you are done with all the details, click the Save button at the top. You
will get a message that a vendor has been created in the given company
code.
 SAP FI - Block a Vendor
You can block a vendor account for posting. You have to block a vendor
master record before you can mark it for deletion. You would also block a
vendor that you use only as an alternative payment recipient, so that
nobody can post to it by mistake.

You can apply the following blocks −

 Posting a block for certain company codes or for all the company codes.

 Purchasing a block for certain purchasing organizations or for all the purchasing
organizations. This is of course only if you have purchased and installed the
purchasing application component.

Use the T-code FK05 or go to Accounting → Financial Accounting →

Accounts Payable → Master Records → Display Changes.
Enter the Company code and Vendor account as shown below and press
enter.

A new window will open. Check the block indicator for data to be blocked.
Once the selection is made, click the Save icon at the top.
 SAP FI - Delete a Vendor
Use the T-code FK06 or go to Accounting → Financial Accounting →
Accounts Payable → Master Records → Display Changes.

Enter the company code and the Vendor account and press Enter as shown
below.

A new window will open. Select the deletion flag and the deletion blocks and
click the Save button at the top.
 SAP FI - One-Time Vendor
In SAP FI, you can also create One-Time Vendor Master Record for the
Vendors with only a few transactions and there is no need to maintain their
master records separately. In such cases, you can create One-Time Vendor
with General Information such as Name, Address, Phone, etc.

Use the T-code FK01 or go to Accounting → Finance Accounting →

Accounts Payable → Master Record → Create.

It will open the following window. Select the account group and search for
the one-time vendor.
Enter the vendor id as per the number range assigned to the account group
and the company code in which you want to create this record and press
Enter.

A new window will open. Enter the following details −

 Name of the Vendor.

 Term for searching the Vendor Id.

  Street/House Number and Postal code 6 digit/City.

 Country/Region and click on Next screen button at top

In the next screen, enter the Vendor Control Group details. If a vendor is
from a corporate group, enter the corporate group name.
Now, enter the bank account details as shown below and click the Next
Screen button.

The next step is to enter the contact person details, name, telephone,
description and go to the next screen. In the next screen, enter the Recon
Account and cash management group (domestic/Foreign, etc.)
Click Next and enter the payment transactions accounting details. Enter
Payt terms (like pay immediately, pay after 14 days 3% cash, etc.).
Once you are done with all the details, click the Save button at the top. You
will get a message that a vendor has been created in the given company
code.
 SAP FI - Post Purchase Invoice
Use the T-code FB60 for an incoming invoice or go to Accounting →
Financial Accounting → Accounts Payable → Document Entry → Invoice.

Enter the company code you want to post this invoice to and press Enter. It
will open a new window. Enter the following details −

 Vendor ID of the vendor

 Invoice Date

 Amount for Invoice

 Tax Code for the Tax Applicable

 Tax Indicator "Calculate Tax"

Go to the Payment tab and enter the Payt terms like pay immediately, after
14 days, etc.

In Item details, enter the following details −

 Purchase Account

 Select Debit

 Amount for the Invoice

 Check Tax code

After entering these details, click Check the Status of the Document and
thereafter, click the Save button at the top.

SAP FI - Purchases Returns

Use the T-code FB65 or go to Accounting → Financial Accounting →
Accounts Payable → Document Entry → Credit memo.

Enter the company code as shown below −

In the next screen, enter the following details −

 Enter the vendor ID

 Enter the Document date

 Enter the amount to be credited

 Enter the tax code used in the original invoice

 Check the Calculate Tax check box

Go to Item details section and enter the following data −

 Enter the Purchase Account for the Original Invoice posted

 Enter the Amount to be debited and select credit

 Check the tax code

Once the details are entered, click the Save button at the top. You will get a
confirmation that a vendor credit memo is posted in the company code
0001.
SAP FI - Post Outgoing Vendor Payment
Use the T-code F-53 or go to Accounting → Financial Accounting → Account
Payable → Document Entry → Outgoing Payment → Post.

In the next screen, input the following details −

 Select the Document Date.

 Select the Company Code.

 Select the Payment Currency.

 Select the Cash/Bank Account in which Payment is to be credited and Payment

Amount.

 Select the Vendor Id of the receiving vendor.

Once you provide the above details, click Process Open Items.

Assign the payment amount to the appropriate invoice so as to balance the

payment with the invoice amount.

Click the Save button at the top to get the document number to be
generated.
 SAP FI - Foreign Currency Invoice
In SAP FI, you can post a vendor invoice in foreign currency so you can do
currency analysis. If you post in FI, you can directly post backdate invoices.

How to post a foreign currency vendor invoice?

Use the T-code F-43 or go to Accounting → Financial Accounting →
Accounts Payable → Document entry → Other → Invoice → General.

In the next window, enter the following details −

 Document Date

 Document Type

 Company Code

 Posting Date

 Currency

 PstKy

 Account (Vendor)
Press Enter and a new window will open. Input the amount, calculate tax,
Tax code, PstKey, Account (Revenue account) and press Enter.

The amount in local currency is displayed in the field. Click the Save button
at the top and note the document number.
 SAP FI - Withholding Tax in vendor
invoice
Use the T-code FB60 and enter the company code.

In the next screen, input the following details −

 Vendor ID of the Vendor to be Invoice and Invoice Date.

 Check Document Type as Vendor Invoice.

 Enter Amount for Invoice.

 Select Tax Code for the Tax Applicable.

 Select Tax Indicator "Calculate Tax".

 Purchase Account and Amount for the Invoice.

After completing the above fields, click Withholding tax.

 Tax Base Amount

 Tax Exempt Account

 Withholding Tax code

Click the Save icon and note down the document number to be generated.
 SAP FI - Outgoing Partial Payments
In SAP FI, you can also post outgoing partial payments for a vendor. Partial
payment from a vendor will open as an open item and no clearing document
will be generated.

How to post an outgoing partial payment?

Use the T-code F-53 or go to Accounting → Financial Accounting →
Accounts Payable → Document Entry → Outgoing Payment → Post.

In the next window, input the following details −

 Document Date
  Company Code

 Cash/Bank Account for the payment to be posted

 Payment Amount

 Vendor ID of the Vendor making the payment

The next step is to click Process Open Items. It will open a new window
wherein you need to take the following actions −

 Click on the Partial Payment Tab.

 Select and Activate the Invoice against which the partial payment has been
made.

 Enter Partial Amount.

Once the above details are supplied, click the Save icon. Note down the
document number that is generated.
 SAP FI - Reset AP Cleared Items
In SAP FI, you can clear a vendor payment if an incorrect payment is made
in Account Payables.

Example

You have an invoice # 23156 and this invoice will remain open till you
receive a payment for this invoice. When a payment is received, a new
document is created # 50000678, when you enter the receipt and this
document also becomes the clearing document.

Now, due to some error, if you have to reverse this payment document,
then you need to use the T-code FBRA. When you use this, the system will
first reset the documents as open items and then reverse the document
number.

How to reset AP cleared items?

Use the T-code FBRA.

In the next screen, enter the following details −

 Clearing document number

 Company Code

 Fiscal Year
Confirm the reset of the clearing document.
 SAP FI - Automatic Payment Run
Automatic Payment Program (APP) serves the purpose of posting accounts
payable like payment to a vendor based on vendor invoices automatically.

APP is used to find out due/overdue invoices and to process a list of

customer and vendor invoices to make payments in one go. APP cannot be
used for all company codes from different countries.

APP has the following categories −

 Setup all company codes

 Setup paying company codes

 Payment method per country

 Payment method per country code

 Bank Selection

 House Bank

Use the T-code FBZP to see all the following options.

Setup all Company Codes
Click the option All Company Code in the above screen. A new window will
open. Go to New Entries.

Enter the company code in the field Paying Company Code. Select the
checkboxes Pyt. Meth Suppl. and Max. Cash Discount as shown below −

Setup Paying Company Codes

Click Paying Company Codes and go to New Entries.
It will open a new window wherein you need to provide the following details
−

 Paying company code

 Min amount for incoming payment

 Min amount for outgoing payment

 Exchange rate differences, separate payment for each Ref.,Bill / Exch pymt.

Payment Method in Country

Click the option Payment Method in Country on the main window. Go to
New Entries as shown below.
In the next screen, input the following details −

 Enter Country name, Payment method and Description.

 Select payment method: Incoming/outgoing payment.

 Select payment method classification.

Payment Method in Company Code
Click the option Pmnt. Method in Company Code on the main window. Go to
New Entries as shown below −

In the next screen, enter the following details −

 Enter Paying Co Code and Pymt. Method.

  Enter minimum and maximum amount limits.

 Select Bank selection control option.

 Go to form data as shown below.

Update Form Data Type. Click the Search button and select the value.

Enter the field-drawer of the form and once all the details are supplied, click
the Save button.
Bank Determination
Click the option Bank Determination in the main window. Select Paying
Company Code and click the option Select Block as shown below and go to
Bank Account.
Click the button Ranking Order and go to New Entries as shown below −

Enter the new bank account details as shown below to create a bank
account.

House Banks
House Banks provide the details of the bank account which is used by a
company to make payments to its vendors and customers.

Click the option House Banks on the main screen and enter the company
code as shown below −
The next window will show a list of all house banks which the company is
using to make payments to its vendors and customers.
 SAP FI - Posting Rounding Differences
While clearing Financial Accounting documents that have been posted in a
foreign currency, you can post the rounding differences that arise to a
separate revenue/expense account. Earlier these differences were displayed
as exchange rate differences at the time of clearing.

Rounding differences can be posted to the General Ledger account as

Expense or Revenue.

How to post rounding difference in SAP FI?

Go to SPRO → SAP Reference IMG → Financial Accounting → AR and AP →
Business Transactions → Outgoing Payments → Outgoing Payment Global
settings → Define account for rounding differences → Execute.

Select Chart of Accounts and click  . Go to Posting Key.

In the next screen, enter the following details −

 Enter the G/L account to post rounding difference. Click Posting Key at the top

 Enter the Credit and Debit posting key and click the Save icon at the top

 Enter the request customizing number to save the configuration

 SAP FI - Month End Closing
In SAP FI, month-end closing involves activities in posting a closing period.
You can carry out the following activities as a part of month-end closing −

 Open and close posting periods.

 You close one or more posting periods in the past for posting, and permit
posting to be made to one or more current or future posting periods.

Use the T-code F.05 or FAGL_FC_VAL for new G/L accounts.

It will open a new window wherein you need to enter the following details −

 Company Code for which Foreign Currency Valuation is to be carried out.

 Evaluation Key Date.

 Valuation Method for Exchange Rate Consideration.

 Valuation in Currency Type.

You can filter out Valuation activity by entering the appropriate parameters
in the Tab Screens.

Click the Execute button  . It will open a list of all G/L accounts selected
for foreign currency valuation.
 SAP FI - Dunning
In SAP FI, if a customer misses the payment for the outstanding invoice by
payment due date, you can generate a dunning letter using SAP FI and
send it to the customer address to remind him of the outstanding payment.

Requirement
The dunning system enables to trace liable customers who have not paid
their open invoices within a given time span. It enables you to handle the
process from, for example, sending a reminder to customers of their
outstanding payments through referring such customers to collections
agencies.

The dunning system covers the following documents.

 Open A/R invoices, including invoices that are partially credited or partially paid.

 Invoices that include installments.

 A/R credit memos.

 Incoming payments that are not based on invoices.

How to Create Dunning Keys?

Go to SPRO → SAP Reference IMG → Financial Accounting (New) → AR and
AP → Business Transactions → Dunning → Basic Setting for Dunning →
Define Dunning Keys → Execute.
Define Block Reason for Dunning
Here you define the reason for dunning block reason under a key. It can be
defined for an item or for a customer master. Blocked item or customer
account are not considered for dunning reason.
 SAP FI - Exchange Rates
Exchange Rates are used to define a relationship between two currencies
and also to maintain exchange rates that are used to translate an amount
into another currency.

You define exchange rates in the system for the following purposes −

 Posting and Clearing − To translate amounts posted or cleared in foreign

currency, or to check a manually entered exchange rate during posting or
clearing.
 Exchange Rate Differences − To determine gains or losses from exchange
rate differences.
 Foreign Currency Valuation − To valuate open items in foreign currency and
foreign currency balance sheet accounts as part of the closing operations.

Go to SPRO → SAP Reference IMG → SAP Netweaver → General Settings →

Currencies → Enter Exchange Rates → Execute.
Exchange rates can be entered as direct or indirect quotations. In direct
quotation, we give multiple of base currency to foreign currency.

Example − 1 USD = 65 × 1 INR

For indirect quotation, it will be 1/65 USD = 1 INR.

How to create direct/indirect quotation in SAP

FI?

In the next window, enter the following details −

 Exchange Rate Type.

 Valid From date that is the start date from which the rates are applicable.

 First Currency.

 Quotation Rate.

 Second Currency.

After entering the details, click the Save button. Enter the request number
and click the tick mark.
 SAP FI - Tables in Module
FBAS Financial Accounting “Basis”

BKPF Accounting Document MANDT / BUKRS / BELNR /

Header GJAHR

BSEG Accounting Document MANDT / BUKRS / BELNR /

Segment GJAHR / BUZEI

BSIP Index for Vendor MANDT / BUKRS / LIFNR /

Validation of Double WAERS / BLDAT / XBLNR /
Documents WRBTR / BELNR / GJAHR / BUZEI

BVOR Inter Company Posting MANDT / BVORG / BUKRS /

Procedure GJAHR / BELNR

EBKPF Accounting Document MANDT / GLSBK / BELNR /

Header (docs from GJHAR / GLEBK
External Systems)

FRUN Run Date of a Program MANDT / PRGID

KLPA Customer / Vendor MANDT / NKULI / NBUKR /

Linking NKOAR / PNTYP / VKULI / VBUKR
/ VKOAR

KNB4 Customer Payment MANDT / KUNNR / BUKRS

History

KNB5 Customer Master MANDT / KUNNR / BUKRS /

Dunning Data MABER

KNBK Customer Master Bank MANDT / KUNNR / BANKS /

 Details BANKL / BANKN

KNC1 Customer Master MANDT / KUNNR / BUKRS /

Transaction Figures GJHAR

KNC3 Customer Master MANDT / KUNNR / BUKRS /

Special GL Transactions GJAHR / SHBKZ
Figures

LFB5 Vendor Master Dunning MANDT / LIFNR / BUKRS /

Data MABER

LFBK Vendor Master Bank MANDT / LIFNR / BANKS / BANKL

Details / BANKN

LFC1 Vendor Master MANDT / LIFNR / BUKRS / GJHAR

Transaction Figures

LFC3 Vendor Master Special MANDT / LIFNR / BUKRS / GJHAR

GL Transactions Figures / SHBKZ

VBKPF Document Header for MANDT / AUSBK / BUKRS /

Document Parking BELNR / GJHAR

FBASCORE Financial Accounting General Services “Basis”

KNB1 Customer Master MANDT / KUNNR / BUKRS

(Company Code)

LFA1 Vendor Master (General MANDT / LIFNR

Section)

LFB1 Vendor Master MANDT / LIFNR / BUKRS

(company Code
Section)
SKA1 G/L Account Master MANDT / KTOPL / SAKNR
(Chart of Accounts)

SKAT G/L Account Master MANDT / SPRAS / KTOPL /

(Chart of Accounts – SAKNR
Description)

MAHNS Accounts Blocked by MANDT / KOART / BUKRS /

Dunning Selection KONKO / MABER

MHNK Dunning Data (Account MANDT / LAUFD / LAUFI / KOART

Entries) / BUKRS / KUNNR / LIFNR /
CPDKY / SKNRZE / SMABER /
SMAHSK / BUSAB

FI-GL-GL (FBS) General Ledger Accounting: Basic Functions- G/L Accounts

SKAS G/L Account Master MANDT / SPRAS / KTOPL /

(Chart of Accounts – SAKNR / SCHLW
Key Word list)

SKB1 G/L Account Master MANDT / BUKRS / SAKNR

(Company Code)

FI-GL-GL (FBSC) General Ledger Accounting: Basic Functions - R/3

Customizing for G/L Accounts

FIGLREP Settings for G/L Posting MANDT

Reports

TSAKR Create G/L account with MANDT / BUKRS / SAKNR

reference

FI-GL-GL (FFE) General Ledger Accounting: Basic Functions - Fast Data

Entry
KOMU Account Assignment MANDT / KMNAM / KMZEI
Templates for G/L
Account items

FI-AR-AR (FBD) Accounts Receivable: Basic Functions - Customers

KNKA Customer Master Credit MANDT / KUNNR

Management : Central
Data

KNKK Customer Master Credit MANDT / KUNNR / KKBER

Management : Control
Area Data

KNKKF1 Credit Management : FI MANDT / LOGSYS / KUNNR /

Status data KKBER / REGUL

RFRR Accounting Data – A/R MANDT / RELID / SRTFD / SRTF2

and A/P Information
System

FI-BL-PT Bank Accounting: Payment Transactions – General Sections

(BFIBL_CHECK_D)

PAYR Payment Medium File MANDT / ZBUKR / HBKID /

HKTID / RZAWE / CHECT

PCEC Pre-numbered Check MANDT / ZBUKR / HBKID /

HKTID / STAPL

FI-BL-PT-AP(FMZA) Bank Accounting: Payment Transactions – Automatic

Payments

F111G Global Settings for MANDT

Payment Program for
Payment Requests
FDZA Cash Management Line MANDT / KEYNO
Items in Payment
Requests

PAYRQ Payment Requests MANDT / KEYNO

FI-AA-AA (AA) Asset Accounting: Basic Functions – Master Data

ANKA Asset Classes: General MANDT / ANLKL

Data

ANKP Asset Classes: Fld Cont MANDT / ANLKL / AFAPL

Dpndnt on Chart of
Depreciation

ANKT Asset Classes: MANDT / SPRAS / ANLKL

Description

ANKV Asset Classes: MANDT / ANLKL / VRSLFD

Insurance Types

ANLA Asset Master Record MANDT / BUKRS / ANLN1 /

Segment ANLN2

ANLB Depreciation Terms MANDT / BUKRS / ANLN1 /

ANLN2 / AFABE / BDATU

ANLT Asset Texts MANDT / SPRAS / BUKRS /

ANLN1 / ANLN2

ANLU Asset Master Record .INCLUDE / MANDT / BUKRS /

User Fields ANLN1 / ANLN2

ANLW Insurable Values (Year MANDT / BUKRS / ANLN1 /

Dependent) ANLN2 / VRSLFD / GJAHR
ANLX Asset Master Record MANDT / BUKRS / ANLN1 /
Segment ANLN2

ANLZ Time Dependent Asset MANDT / BUKRS / ANLN1 /

Allocations ANLN2 / BDATU

FI-AA-AA (AA2) Asset Accounting: Basic Functions – Master Data 2.0

ANAR Asset Types MANDT / ANLAR

ANAT Asset Type Text MANDT / SPRAS / ANLAR

FI-AA-AA (AB) Asset Accounting: Basic Functions – Asset Accounting

ANEK Document Header Asset MANDT / BUKRS / ANLN1 /

Posting ANLN2 / GJAHR / LNRAN

ANEP Asset Line Items MANDT / BUKRS / ANLN1 /

ANLN2 / GJAHR / LNRAN / AFABE

ANEV Asset Downpymt MANDT / BUKRS / ANLN1 /

Settlement ANLN2 / GJAHR / LNRANS

ANKB Asset Class: MANDT / ANLKL / AFAPL / AFABE

Depreciation Area / BDATU

ANLC Asset value Fields MANDT / BUKRS / ANLN1 /

ANLN2 / GJAHR / AFABE

ANLH Main Asset Number MANDT / BUKRS / ANLN1

ANLP Asset Periodic Values MANDT / BUKRS / GJAHR /

PERAF / AFBNR / ANLN1 / ANLN2
/ AFABER
FI-SL-VSR (GVAL) Special Purpose Ledger: Validation, Substitution and Rules

GB03 Validation / Substitution VALUSER

User

GB92 Substitutions MANDT / SUBSTID

GB93 Validation MANDT / VALID

SAP FI - AR Invoice Processes

In addition to invoicing processes delivered by SAP, you can define your
own invoicing processes. For each process, you can adjust the behavior of
the SAP invoicing program to your own requirements such that only the
required invoicing functions are run and under the consideration of your
individual settings for these functions. This flexibility is in addition to non-
modification enhancement which includes BAdIs, and events.

Invoicing processes are used as selection parameters for mass activities for
"Invoicing in Contract Accounts Receivable and Payable".

Number ranges for invoicing documents are defined dependent on the

invoicing processes.

Invoicing processes are a differentiation characteristic for the activation of

optional invoicing functions.

The individual process steps of "Invoicing in Contract Accounts Receivable

and Payable" are explained below.

Process Steps: Invoice Processes

Invoice processes involve the following steps −

 Data Selection − In data selection, the invoicing orders are selected for the
invoicing process. You define the selection criteria for the data selection for the
invoicing process.
 Creation of Invoicing Units − The invoicing orders selected are grouped into
invoicing units for each contract account. You can create several invoicing units
for each contract account. For each invoicing unit, "Invoicing in Contract
Accounts Receivable and Payable" creates one invoicing document. You define
the criteria for creating the invoicing units for the invoicing process.
 Processing of Billing Documents − The billing documents selected for an
invoicing unit are included in the invoicing document. The billing document
items are linked with the items of the invoicing document, and the derivations
required for the posting in "Contract Accounts Receivable and Payable" (FI-CA)
are performed.
 Performance of Additional Functions − In addition to processing billing
documents, in "Invoicing in Contract Accounts Receivable and Payable" , you
 can integrate further functions of FI-CA. For example, interest calculation,
creation of dunning proposals, or the calculation of charges and discounts. You
define which additional functions are performed for each invoicing process.
 Account Maintenance − Using the account maintenance integrated in
"Invoicing in Contract Accounts Receivable and Payable", you can perform
clearing between the posting documents entered in Invoicing and the open
items of the contract account posted before invoicing. You define the criteria for
clearing in the clearing control.
 Update − The invoicing document created for the invoicing unit and the posting
documents are written to the database. The invoicing orders processed are
deleted. As well as the invoicing unit, a correspondence container for invoice
printing and an extraction order for the update to BW are created.

SAP FI - AR Account Analysis

There are many types of reports that can be used for account analysis (A/R)
−

 Customer Line Item Analysis

  Balance Analysis

 Customer Evaluation Report

Customer Line item Analysis

T-code: FBL5N

Customer line item report will be generated based on the open items,
cleared items, and all items. It has options available to see transactions
based on type: i.e., special G/L, Noted items, Parked items and vendor
items.

Customer Balance
T-code: FD10N

This report will be generated as customer-wise / period-wise balances,

including debit and credit amount separately. It will also display the
balances related to special G/L under different form and gives the total.

Balances of open Sales Invoice, Debit note and Credit note is available
under separate columns in the same report. Users have the facility to
incorporate required fields by changing the report layout.

Customer Evaluations
T-code: F.30

This report helps in analyzing customer open transactions company-wise,

group-wise, Credit control, etc. Users can define open transactions criteria
based on due date, payment history, currency analysis, overdue items etc.

SAP T-codes to be used for Account Analysis in SAP FI −

 Customer line item display : FBL5N

 Customer Balance Display : FD10N

 Accounts Receivable info system : F.30

 SAP FI - AR Reporting
There are various reports that you can generate in Account Receivable.
Following are the common reports in SAP FI AR along with their T-
codes used to generate the report −
  Bill Holdings (Bill of Exchange Receivable List with ALV facility): S-
ALR_87009987

 Customer Balances in Local Currency: S_ALR_87012172

 Customer Line Items: S_ALR_87012197

 Due Dates Analysis for Open Items: S_ALR_87012168

 List of Customer Open Items: S_ALR_87012173

 Customer Evaluation with Open Item Sorted List: S_ALR_87012176

 Customer Payment History: S_ALR_87012177

 Customer Open Item Analysis (Overdue Items Balance): S_ALR_87012178

 List of Customer Cleared Line Items: S_ALR_87012198

 List of Down Payments open at key date: S_ALR_87012199

 Debit & Credit Notes Register u2013 Monthly: S_ALR_87012287

 Customer-wise Sales: S_ALR_87012186

SAP FI - AA Overview
The FI-Asset Accounting (FI-AA) component is used for managing the fixed
assets in FI system. In Financial Accounting, it serves as a subsidiary ledger
to the General Ledger, providing detailed information on transactions
involving fixed assets.
Integration with other components − As a result of the integration in
the SAP system, Asset Accounting (FI-AA) transfers data directly to and
from other SAP components.

Example
It is possible to post from the Materials Management (MM) component
directly to FI-AA. When an asset is purchased or produced in-house, you
can directly post the invoice receipt or goods receipt, or the withdrawal
from the warehouse, to assets in the "Asset Accounting" component.

At the same time, you can pass on depreciation and interest directly to the
"Financial Accounting" (FI) and "Controlling" (CO) components. From the
"Plant Maintenance" (PM) component, you can settle maintenance activities
that require capitalization to assets.

Components of Asset Accounting

The "Asset Accounting" component consists of the following parts −

 Traditional asset accounting

 Processing leased assets

 Preparation for consolidation

 Information System

Traditional asset accounting encompasses the entire lifetime of the asset

from purchase order or the initial acquisition through its retirement. The
system calculates, to a large extent automatically, the values for
depreciation, interest, insurance and other purposes between these two
points in time, and places this information at your disposal in varied from
using the Information System. There is a report for depreciation forecasting
and simulation of the development of asset values.

The system also offers special functions for leased assets, and assets under
construction. The system enables you to manage values in parallel
currencies using different types of valuation. These features simplify the
process of preparing for the consolidation of multinational group concerns.
The "Plant Maintenance" (PM) component offers functions for the technical
management of assets in the form of functional locations and as equipment.
The "Treasury" (TR) component offers special functions for managing
financial assets.

Create New Asset Classes

Use the T-code OAOA or go to SPRO → SAP Reference IMG → Financial
Accounting → Asset Accounting → Organizational Structure → Asset Classes
→ Define Asset Classes → Execute.

Click New Entries as shown in the following screenshot.

In the next screen, enter the following details −

 Asset class and Short Text

 Asset Type details

 Number Range from number assignment

 Select include asset under inventory

You can also select Asset under construction (AuC).

Click the Save icon to configure the asset class.

Click the Save icon to configure the asset class.

Click the Save icon to configure the asset class.

Click the Save icon to configure the asset class.

 SAP FI - AA Asset Explorer
This function shows all the values of a fixed asset, including APC values and
depreciation, in various forms and summarization levels. Planned values are
displayed as well as the values already posted. You use this function to
display and analyze asset values.

Components of Asset Explorer

Asset Explorer consists of the following components −

 Header − This is the field where you enter the company code and asset
number.
 Overview tree − Using overview tree, you can navigate between different
depreciation areas. Overview tree displays objects related to the asset.
 Tab − This is where you analyze plan values and posted values using different
parameters, and compare fiscal years and depreciation areas.

Note − The Asset Explorer uses ALV Grid Control for its table display. You
can use it to specify the contents of the columns.
Header
With the company code and main asset number, you can also enter the
asset sub-number. If you enter an asterisk (*) in the sub number field, the
Asset Explorer shows all transactions and depreciation of all sub numbers of
the asset main number. Use “This graphic” is explained in the
accompanying text and “This graphic” is explained in the accompanying text
icons to navigate to different fiscal years.

Overview Tree for Depreciation Areas

Choose the pushbutton above the overview tree, or “this graphic” is
explained in the accompanying text Display master data function, to reach
the display transaction for asset master data.

To navigate between depreciation areas in the overview tree, select the

depreciation area you want. Icons indicate the type of depreciation area.
This graphic is explained in the accompanying text icon indicates a real
depreciation area, and the “This graphic” is explained in the accompanying
text icon indicates a derived depreciation area.

Overview Tree for Related Objects

The system automatically searches for objects related to the asset, such as
cost center, equipment, G/L account, WBS element, and displays them in
an overview tree. From this overview tree, you can jump directly to the
display transaction of the given master data.

There are additional options if the asset was created or posted from a
purchase order. In that case, you can double click on the Purchase Orders
folder to go to a report that displays all Materials Management documents
that are linked to the asset.

When you enter an asterisk (*) for the sub-number in the Asset Explorer,
the search for related objects is deactivated. On the Planned Values, Posted
Values, and Comparisons tab pages, the system shows the total of all sub-
numbers for all fields. On the Parameters tab page, the individual
parameters are displayed only if they are the same for the main number
and all sub-numbers. If they are not all the same (for example, the main
asset and sub-numbers have different useful lives), then the field is shown
with an asterisk (*).

The Transactions subscreen shows all transactions for all the sub-numbers.
The display of planned/posted depreciation per period shows the total of all
sub-numbers for each period. When you jump to other Asset Accounting
reports, these are started without being limited to a sub-number. The
report then displays all sub-numbers.

Limitations of using an asterisk (*) for the sub-

number
Display of the depreciation trace (RATRACE0N) − The trace always
relates to a specific asset and it is not possible to add assets together. The
report is started for the asset that has the lowest sub-number.

Display of asset master record (AS03) − It is started for the first

existing asset.
 SAP FI - Cash Management
The Cash Management field in SAP FI is used to manage cash flows and to
ensure that you have sufficient liquidity to cover your payment obligations.

Integration with other SAP components

SAP FI Cash Management is a sub-component of Financial Supply Chain
Management. It can be integrated with a range of other SAP components.

Example − The liquidity forecast – in a medium- to long-term liquidity

trend – integrates expected incoming and outgoing payments in financial
accounting, purchase, and sales.

Features of Cash Management

SAP FI Cash Management Incomings area covers the following topics −

 Electronic and manual bank statements

 Electronic and manual check deposits

 Bill of exchange presentation

 Memo record

 Polling

 Payments

 Lockbox
Compare payment advices, "Interest calculation "and "Returned vendor
checks" are dealt with the Checks topic.

Cash concentration can be found in the Planning topic. Planning also deals
with the "payment program", "payment requests", "bill of exchange
presentation", "memo record "and "telephone list".

The tools topic covers the "distribution" to cash management systems.

The Information System topic deals among other things with the "Liquidity
forecast."

Further topics include: Payment advice journal, Compare and check "and
"Reconciliation with cash management.

In the Environment area, you will find functions for transferring market data
to the SAP system. Market data can be transferred using the file interface,
real-time data feed, or via a spreadsheet.
 SAP CO - Overview
SAP Controlling (CO) is another important SAP module offered to an
organization. It supports coordination, monitoring, and optimization of all
the processes in an organization. SAP CO involves recording both the
consumption of production factors and the services provided by an
organization.

SAP CO includes managing and configuring master data that covers cost
and profit centers, internal orders, and other cost elements and functional
areas.

The main purpose of SAP controlling module is planning. It enables you to

determine variances by comparing actual data with plan data and thus
enables you to control business flows in your organization.

SAP CO Integration with Financial Accounting

Both SAP CO and SAP FI modules are independent components in a SAP
system. The data flow between these components takes place on a regular
basis.

Data flows relevant to cost flows to Controlling from Financial Accounting.

At the same time, the system assigns the costs and revenues to different
CO account assignment objects, such as cost centers, business processes,
projects or orders.
 SAP CO - Submodules
The key submodules of SAP controlling system are listed below −

 Cost Element Accounting − Cost and Revenue Element Accounting provides

you with an overview of the costs and revenues that occur in an organization.
Most of the values are moved automatically from Financial Accounting to
Controlling. Cost and Revenue Element Accounting only calculates costs which
either do not have another expense or only one expense in Financial
Accounting.

 Cost Center Accounting − Cost Center Accounting is used for controlling

purposes within your organization.

 Activity-Based-Accounting − It is used to analyze cross-departmental

business processes.

 Internal Orders − Internal orders in SAP CO are used to collect and control
according to the job that incurred them. You can assign budgets for these jobs
that is system monitored to ensure that they are not exceeded from the set
budgets.

 Product Cost Controlling − It calculates the cost for manufacture a product,

or to provide a service. It allows you to calculate the price at which you can
profitably marketed it.

 Profitability Analysis − It is used to analyze the profit or loss of an

organization by individual market segments. Profitability Analysis provides a
 basis for decisionmaking. For example, it is used to determine price,
conditioning, customer, distribution channel, and market segment.

 Profit Center Accounting − It is used to evaluate profit or loss of individual,

independent areas within an organization. These areas are responsible for their
costs and revenues.

SAP CO - Cost Center

A Cost Center is defined as a component in an organization that adds to the

cost and indirectly adds to the profit of the organization. Examples include
Marketing and Customer Service.

A company can classify a business unit in three ways −

 Profit center,

 Cost center, or

 Investment center.

The simple and straightforward division in an organization can be classified

as cost center because cost is easy to measure.

Cost Center Hierarchy

The hierarchy of a cost center looks as follows
 SAP CO - Create Cost Center
To create a cost center, use the T-code KS01. It will open the following
window.

Enter the Controlling Area in the next screen and click the tick mark.
In the next window, enter the following details and click the Master Data.

 New cost center number.

 Validity dates of the new cost center.

You can also create a new cost center with a reference.

Once you click Master Data, a new window will open. Enter the following
details in the basic data tab −

 Enter the name of the new cost center.

 Enter a description for the new cost center.

 Enter the User and Person Responsible.

 Cost Center Category.

 Hierarchy area.

 Company Code.

 Profit Center.
Next, click the Control tab and select the correct indicator.

At the end, click the save icon at the top.

 SAP CO - Post to a Cost Center
To post to a cost center, use the T-code FB50. It will take you to the
following window.

In this window, you need to enter the following details −

 Document date

 Company code

 G/L Account for the Debit Entry which is to be posted to the Cost Center

 Debit Amount

 Cost Center in which the Amount is to be posted

 G/L Account for Credit Entry

 Credit Amount

Click the Save button at the top to post to this cost center.
 SAP CO - Internal Orders
SAP CO internal order monitors the parts of the costs and in a few cases, it
also monitors the revenues of the organization.

You can create an internal order to monitor the costs of a time-restricted

job or the costs for the production of activities. Internal orders can also be
used for the long-term monitoring of costs.

Investment cost related to fixed assets are monitored using Investment

orders.

Period-related accrual calculation between expenses in FI and the costing-

based costs debited in Cost Accounting are monitored using Accrual orders.

Costs and revenues incurred for activities for external partners or for
internal activities that do not form a part of the core business for your
organization are monitored using order with revenues.

How to create an Internal Order in SAP CO?

Use the T-code KO04 or go to Accounting → Controlling → Internal Orders
→ Master Data → Order Manager.
In the next screen, input the controlling area as shown below −

Click the Create button at the top to create a new internal order and enter
the order type.

In the next window, enter the following details −

 Company Code
  Business area

 Object Class of the Order

 Profit Center

 Cost Center responsible for the internal order

After entering the above details, click the Save button at the top to create
the internal order.
 SAP CO - Settlement of IO
An internal order is used as an interim collector of costs and is used for
planning, monitoring, and controlling the processes. When the job has been
completed, you settle the costs to one or more receivers like cost centers,
fixed assets, etc.

How to perform settlement of IO to Cost

Centers?
Use the T-code: KO02 or Go to Accounting → Controlling → Internal Orders
→ Master Data → Special Functions → Change.

A new window will open. Enter the Order number for which settlement is to
be done.
Click the Settlement rule button at the top −

Enter the following details −

 In Category column, enter 'CTR' for the cost center.

 In Settlement receiver Column, enter the Cost Center in which the Order is to be
settled.

 Enter the percentage amount which is to be settled.

 In Settlement type, enter 'PER' for periodic settlement.

Click the save button at the top to save the settlement rule and come back
to the main screen.

Enter the T-code KO88 and input the following details −

 Order for which the settlement rule is maintained.

 Period for settlement.

  Fiscal Year.

 Uncheck the Test Run.

 Click on the Execute Button to run the settlement.

A new window will open with a Settlement display message. Click the
Continue button to complete the processing.
 SAP CO - Profit Center
SAP CO Profit Center is used for managing internal controlling. When you
divide your company into profit centers, it allows you to delegate
responsibility to decentralized units and treat them as separate companies
in a company. It also allows you to calculate key figures in cost accounting
like ROI, Cash flow, etc.

Profit Center is a part of Enterprise Controlling module and is integrated

with a new General Ledger Accounting.

Key Features of SAP CO Profit Center

Profit Center Accounting is used to determine profit for internal areas of
responsibility. It lets you determine profits and losses using either period
accounting or the cost-of-sales approach.

It allows you to analyze fixed assets by profit center, thus using them as
investment centers. It allows to expand profit centers to investment
centers.

Why Do We Create Profit Center?

The main aim of creating a Profit Center in SAP CO is to analyze the cost of
a product line or a business unit.

You can also generate P&L accounts according to a Profit Center and also
generate balance sheets, however a Profit Center should only be used for
internal reporting purpose.

The key components of a profit center include – name of the profit center,
the controlling area under which it is assigned, time period, person
responsible for the profit center, standard hierarchy, etc.
How to Create a Profit Center?
Use the T-code KE51 or go to Accounting → Controlling → Profit Center
Accounting → Master Data → Profit Center → Individual Processing →
Create.

In the next screen, enter the controlling area in which the profit center is to
be created and click the tick mark.

In the next screen, enter the unique profit center ID and click Master Data.
A new window will open where you need to input the following details −

 Profit center name and a short description of the profit center.

 Person responsible for the profit center.

 Profit center group for which the profit center belongs to.

Click the Save icon at the top to create the profit center in inactive mode.
To activate the profit center, click the icon as shown in the following
screenshot.
How to Create a Profit Center Group?
Use the T-code KCH1 or go to Accounting → Controlling → Profit Center
Accounting → Master Data → Profit Center Group → Create.

Enter the Controlling Area in which the Profit Center is to be created.

Enter the Unique Profit Center Group Id as shown below and press Enter.

Enter the short description for the profit center group and click the Save
icon at the top.
 SAP CO - Postings to Profit Center
To post to a Profit Center, use the T-code FB50. It will take you to the
following window.

Enter the Document date and the Company code. Thereafter, provide input
data in the fields as shown in the following screenshot.

After entering the line items, select the debit line item and click the button
Detail Item button. Refer the following screenshot.
A new window will open. Enter the Profit Center and click the Save icon at
the top.
 SAP CO - Profit Center Standard
Hierarchy
SAP CO Profit Center standard hierarchy, known as tree structure, that
contains all the profit centers in a controlling area.

If you want to create/change the structure of a standard hierarchy, it can

be done at two places −

 In the Profit Center Accounting

 In Customizing for Profit Center Accounting

How to Create Profit Center Standard

Hierarchy?
Use the T-code KCH1 or go to Accounting → Controlling → Profit Center
Accounting → Master Data → Standard Hierarchy → Create.
In the next screen, enter the Controlling Area for which you want to create
a Standard hierarchy.

Enter the Profit Center Group and click Hierarchy at the top and enter the
sub-nodes of the Profit Center Standard Hierarchy.

Click the Lower level button to create a hierarchy. Click the Profit center to
assign a Profit Center group.
Click the Save button at the top and you will get a confirmation message.
 SAP CO - Assigning Cost to Profit
Centers
Go to SPRO → SAP Reference IMG → Controlling → Profit Center Accounting
→ Assignments of Account Assignment objects to Profit Center → Assign
Cost Centers → Execute.

Enter the Cost center to be assigned to the Profit center.

In the next screen, enter the profit center to which the cost center is
assigned and click the Save icon at the top.
 SAP CO - Assigning Materials to Profit
Center
Go to SPRO → SAP Reference IMG → Controlling → Profit Center Accounting
→ Assignments of Account Assignment objects to Profit Center → Material
→ Assign Material Masters → Execute.

A new window will open. Enter the material Id for which the profit center is
to be assigned and press Enter.

Select the view of the material master.

In the next window, enter the following details −

In the next window, enter the Profit Center and click the Save icon at the
top.
 SAP CO - Tables in Module
Important Tables in SAP CO

AUSP Characteristic Values MANDT / OBJEK / ATINN / ATZHL /

MAFID / KLART / ADZHL

CO-KBAS Overhead Cost Controlling

A132 Price per Cost Center MANDT / KAPPL / KSCHL / KOKRS /

VERSN / RESRC / KOSTL / DATBI

A136 Price per Controlling MANDT / KAPPL / KSCHL / KOKRS /

Area VERSN / RESRC / DATBI

A137 Price per Country / MANDT / KAPPL / KSCHL / KOKRS /

Region VERSN / RESRC / LAND1 / REGIO /
DATBI

COSC CO Objects: MANDT / OBJNR / SCTYP / VERSN /

Assignment of Original GJAHR
Costing Sheets

CSSK Cost Center / Cost MANDT / VERSN / KOKRS / GJAHR /

Element KOSTL / KSTAR

CSSL Cost Center / Activity MANDT / KOKRS / KOSTL / LSTAR /

Type GJAHR

KAPS CO Period Locks MANDT / KOKRS / GJAHR / VERSN /

VRGNG / PERBL

COKBASCORE Overhead Cost Controlling: General Services

CSKA Cost Elements (Data MANDT / KTOPL / KSTAR
Dependent on Chart of
Accounts)

CSKB Cost Elements (Data MANDT / KOKRS / KSTAR / DATBI

Dependent on
Controlling Area)

CSKS Cost Center Master MANDT / KOKRS / KOSTL / DATBI

Data

CSLA Activity Master MANDT / KOKRS / LSTAR / DATBI

CO-OM (KACC) Overhead Cost Controlling

COBK CO Object: Document MANDT / KOKRS / BELNR

Header

COEJ CO Object: Line Items MANDT / KOKRS / BELNR / BUZEI /

(by Fiscal Year) PERBL

COEJL CO Object: Line Items MANDT / KOKRS / BELNR / BUZEI /

for Activity Types (by PERBL
Fiscal Yr)

COEJR CO Object: Line Items MANDT / KOKRS / BELNR / BUZEI /

for SKF (by Fiscal Year) PERBL

COEJT CO Object: Line Items MANDT / KOKRS / BELNR / BUZEI /

for Prices (by Fiscal PERBL
Year)

COEP CO Object: Line Items MANDT / KOKRS / BELNR / BUZEI

(by Period)

COEPL CO Object: Line Items MANDT / KOKRS / BELNR / BUZEI

 for Activity Types (by
Period)

COEPR CO Object: Line Items MANDT / KOKRS / BELNR / BUZEI

for SKF (by Period)

COEPT CO Object: Line Items MANDT / KOKRS / BELNR / BUZEI

for Prices (by Period)

COKA CO Object: Control MANDT / OBJNR / GJAHR / KSTAR /

Data for Cost Elements HRKFT

COKL CO Object: Control MANDT / LEDNR / OBJNR / GJAHR /

Data for Activity Types VERSN

COKP CO Object: Control MANDT / LEDNR / OBJNR / GJAHR /

Data for Primary WRTTP / VERSN / KSTAR / HRKFT /
Planning VRGNG / VBUND / PARGB / BEKNZ /
TWAER

COKR CO Object: Control MANDT / LEDNR / OBJNR / GJAHR /

Data for Statistical Key WRTTP / VERSN / STAGR / HRKFT /
Figures VRGNG

COKS CO Object: Control MANDT / LEDNR / OBJNR / GJAHR /

Data for Secondary WRTTP / VERSN / KSTAR / HRKFT /
Planning VRGNG / PAROB / USPOB / BEKNZ /
TWAER

CO-OM-CEL Cost Element Accounting (Reconciliation Ledger)

(KKAL)

COFI01 Object Table for MANDT / OBJNR

Reconciliation Ledger
COFIT

COFI02 Transaction Dependent MANDT / OBJNR

Fields for Reconciliation
 Ledger

COFIP Single Plan Items for RCLNT / GL_SIRID

Reconciliation Ledger

COFIS Actual Line Items for RCLNT / GL_SIRID

Reconciliation Ledger

CO-OM-CCA Cost Center Accounting (Cost Accounting Planning)

A138 Price per Company MANDT / KAPPL / KSCHL / KOKRS /

Code VERSN / RESRC / BUKRS / GSBER /
DATBI

A139 Price per Profit Center MANDT / KAPPL / KSCHL / KOKRS /

VERSN / RESRC / PRCTR / DATBI

CO- Overhead Orders: Application Development R/3 Cost

OMOPA(KABR) Accounting Settlement

AUAA Settlement Document: MANDT / BELNR / LFDNR

Receiver Segment

AUAB Settlement Document: MANDT / BELNR / BUREG / LFDNR

Distribution Rules

AUAI Settlement Rules per MANDT / BELNR / LFDNR / AFABE

Depreciation Area

AUAK Document Header for MANDT / BELNR

Settlement

AUAO Document Segment: MANDT / BELNR / LFDNR

CO Objects to be
Settled
AUAV Document Segment: MANDT / BELNR / LFDNR
Transactions

COBRA Settlement Rule for MANDT / OBJNR

Order Settlement

COBRB Distribution Rules MANDT / OBJNR / BUREG / LFDNR

Settlement Rule Order
Settlement

CO-OM-OPA Overhead Orders: Cost Accounting Orders

(KAUF)

AUFK Order Master Data MANDT / AUFNR

AUFLAY0 Entity Table: Order MANDT / LAYOUT

Layouts

EC-PCA (KE1) Profit Center Accounting

CEPC Profit Center Master MANDT / PRCTR / DATBI / KOKRS

Data Table

CEPCT Texts for Profit Center MANDT / SPRAS / PRCTR / DATBI /

Master Data KOKRS

CEPC_BUKRS Assignment of Profit MANDT / KOKRS / PRCTR / BUKRS

Center to a Company
Code

GLPCA EC-PCA: Actual Line RCLNT / GL_SIRID

Items

GLPCC EC-PCA: Transaction MANDT / OBJNR

Attributes
GLPCO EC-PCA: Object Table MANDT / OBJNR
for Account Assignment
Element

GLPCP EC-PCA: Plan Line RCLNT / GL_SIRID

Items

EC-PCA BS PCA Basic Settings: Customizing for Profit Center

(KE1C) Accounting

A141 Dependent on Material MANDT / KAPPL / KSCHL / KOKRS /

and Receiver Profit WERKS / MATNR / PPRCTR / DATBI
Center

A142 Dependent on Material MANDT / KAPPL / KSCHL / WERKS /

MATNR / DATBI

A143 Dependent on Material MANDT / KAPPL / KSCHL / WERKS /

Group MATKL / DATBI

SAP CO - Product Costing

SAP CO Product Costing module is used to find the value of internal cost of
products. It is also used for profitability and management accounting for
production.

While configuring Product Costing, it involves two areas for setting −

 Product Cost Planning

 Cost Object Controlling

The basics of Product Costing is Cost Center Planning. The goal of cost
center planning is to plan total dollars and quantities in each Cost Center in
a Plant.

Product Costing − Overview

Use the T-code KP06 and enter the controlling area.

Cost Center dollars are planned by activity Type and cost element. You can
also enter the variable and fixed dollar amounts.

You can plan all costs in production cost centers where they will end up
through allocations, or you can plan costs where they are incurred and use
plan assessments and distributions to allocate.
To define cost center activity quantities, use the T-code KP26. You can also
manually enter an activity rate based on last year's actual values. Note that
if you enter an activity rate instead of using the system to calculate a rate,
you lose the opportunity to review actual vs. plan and see dollar and unit
variances. It is a best practice to plan activity quantities based on practical
installed capacity which accounts for downtime. If you plan at full capacity,
plan activity rates will be underestimated.

Example
Let's say we are using Product Costing to value our inventory in a cookie
baking shop. This will help us value our cookies (finished good), frosting
(semi-finished good), and baking items like eggs, milk, and sugar (raw
materials). In order to calculate costs, we need to come up with rates for
each activity, such as mixing baking items, oven baking, and cookie cooling.
Since a rate is a dollar per unit, we can either come up with a rate based on
previous year's actual rates, or enter our total costs and total units.

SAP CO - Profitability Analysis

SAP CO Profitability Analysis is used to analyze the market segments
classified as products, customers, sales area, business area, etc.

SAP CO Profitability Analysis (CO-PA) is used for the evaluation of Market

segments which is classified according to products, customers, and orders −

 or any combination of these.

 or Strategic business units such as sales organizations.

 or business areas, with reference to company's profit.

 or contribution margin.

There are two types of Profitability Analysis are supported −

  Costing-based Profitability Analysis − It is used to group the costs and
revenues as per the value fields. It is used to ensure that you access at all
times to a complete, short-term profitability report.
 Account-based Profitability Analysis − It is used to provide you with a
profitability report that is permanently reconciled with financial accounting. It is
mainly used for getting information related to sales, marketing, product
management and corporate planning departments to support internal
accounting and decision-making.

Key Components in SAP CO-PA

The key components in SAP CO-PA are as follows −

 Actual Posting − It allows you to transfer sales orders and billing documents
from the Sales and Distribution application component to CO-PA in real time.
You can also transfer costs from cost centers, orders and projects, as well as
costs and revenues from direct postings or settle costs from CO to profitability
segment.
 Information System − It allows you to analyze existing data from a
profitability standpoint using drilldown function in the reporting tool. It allows
you to navigate through a multidimensional data cube using different functions
like drilldown or switching hierarchies. The system displays data in either value
fields or accounts, depending on the currently active type of Profitability
Analysis and the type to which the report structure is assigned.
 Planning − This allows you to create a sales and profit plan. Whereas both
types of Profitability Analysis can receive actual data in parallel, there is no
common source of planning data. Consequently, you always plan either in
accounts (account-based CO-PA) or in value fields (costing-based CO-PA). The
manual planning function allows you to define planning screens for your
organization. With this you can display reference data in planning, calculate
formulas, create forecasts, and more. You can perform planning at any level of
detail.

Example
You can plan at a higher level, and have this data distributed top-down
automatically. In automatic planning, you can copy and revaluate actual or
planning data for a large number of profitability segments at once.
 SAP CO - Planning Methods
SAP CO Planning Method allows you to plan the profitability segments as
mentioned in the Planning packages.

To execute a planning method, you need to define it in a parameter set.

Each planning method is executed via parameter set. To create a parameter
set, you need to first define the Planning level. For parameter set to
execute, there should be at least one planning package exists at that level.

There are two different types of planning methods and they differ in the
way they allow you to enter and edit planning data for the profitability
segments.
Manual Type
Manual planning methods allows you to enter planning data and display
planning data in the profitability segments specified in the planning package
are listed individually for editing or display.

In parameter set, you mention how the profitability segments are to be

listed. When planning method is executed, processing of parameter set
occurs and you can directly check the results of your processing.

Automatic Type
With automatic planning methods like copy, top-down distribution and
delete, all profitability segments that are specified in the planning package
are processed.

You need to mention in the parameter set like- how these segments are to
be processed, when you execute the method, the system automatically
processes the segments without any need of manual action.

Results of the processing can be checked using a report in the information

system or by manual planning method display planning data.

SAP FI - Integration

SAP FI is commonly integrated with MM and SD component. SAP FI

Integration with other modules means how the system maps with different
modules and how the effect of those is passed into FI Module.

FI Integration with SD and MM

For SAP FI-MM, use the T-code OBYC
Whenever there is a delivery created with reference to a sales order, goods
movement takes place in the system.

Example
In case of standard sales order, you create an outbound goods delivery to
the customer. Here movement 601 takes place. This movement is
configured in MM and movement of goods hit some G/L account in FI.

Every such movement of goods hits General Ledger account in FI.

The accounts posting in FI is done with reference to the billing documents

like credit and debit note, invoice etc. created in SD and hence this is link
between SD and FI.

Tax determination: In case of a tax determination, there is a direct link

between SD and MM.
Movement Types
Material movements in MM is done with respect to a Movement Type.

 Goods receipt – movement type 101

 Goods issue to production order – movement type 261

 Scrapping of goods – movement type 551

 Goods delivered to the customer – movement type 601

 Initial upload of stock – movement type 561

SAP allows us to use different G/L accounts for the various movements for
the same material by linking this movement type to a transaction key and
hence we can set G/L accounts as per movement type.

SAP FICO Questions and Answers

SAP FICO Questions and Answers has been designed with a special
intention of helping students and professionals preparing for
variousCertification Exams and Job Interviews. This section provides a
useful collection of sample Interview Questions and Multiple Choice
Questions (MCQs) and their answers with appropriate explanations.
S Question/Answers Type
N

1 SAP FICO Interview Questions

This section provides a huge collection of SAP FICO Interview Questions with
their answers hidden in a box to challenge you to have a go at them before
discovering the correct answer.

2 SAP FICO Online Quiz

This section provides a great collection of SAP FICO Multiple Choice
Questions (MCQs) on a single page along with their correct answers and
explanation. If you select the right option, it turns green; else red.

3 SAP FICO Online Test

If you are preparing to appear for a Java and SAP FICO related certification
exam, then this section is a must for you. This section simulates a real
online test along with a given timer which challenges you to complete the
test within a given time-frame. Finally you can check your overall test score
and how you fared among millions of other candidates who attended this
online test.

4 SAP FICO Mock Test

This section provides various mock tests that you can download at your local
machine and solve offline. Every mock test is supplied with a mock test key
 to let you verify the final score and grade yourself.

Discuss SAP FICO

SAP FI stands for Financial Accounting and it is one of important modules of SAP ERP. It is
used to store the financial data of an organization. SAP FI helps to analyze the financial
conditions of a company in the market. It can integrate with other SAP modules like SAP SD,
SAP PP, SAP MM, SAP SCM, etc SAP Controlling (CO) is another important SAP module
offered to an organization. It supports coordination, monitoring, and optimization of all the
processes in an organization. SAP CO includes managing and configuring master data that
covers cost and profit centers, internal orders, and other cost elements and functional areas. This
is an introductory tutorial that covers the basics of SAP FICO and how to deal with its various
modules and sub-modules.