SAP FI/CO (Finance and Controlling) Notes Version: SAP 6.0 ECC ECC: Enterprise Central Component

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SAP FI/CO (Finance and Controlling) Notes

Version: SAP 6.0 ECC
ECC: Enterprise Central Component
SAP FI (Finance): SAP FI supports for external reporting as per their country legal
requirement and prescribed by accounting standards. Accounting standards are,
1. Indian GAAP (General Accepted Accounting Principles)
2. IFRS (International Financial Reporting Standards)
3. IAS (International Accounting Standards)
4. US GAAP
5. UK GAAP etc
Under SAP FI, we can generate financial statements. Financial statements consist of
Profit and Loss Account, Balance Sheet and Cash Flow Statement
Coverage of SAP FI:

1. General Ledger Accounting
2. Account Payables
3. Accounts Receivables
4. Asset Accounting
5. Bank Accounting
6. Taxes (CIN: Country India Version)
a. Excise Duty
b. Central Sales Tax (CST)
c. Local Sales Tax (LST)
d. Value Added Tax (VAT)
e. Service Tax
f. Tax Deduct at Source (TDS) (Extended Withholding Tax)
7. Integrations
a. SAP MM (Materials Management)
b. SAP SD (Selling and Distribution)
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SAP CO (Controlling): Controlling nothing costing/management accounting. SAP CO

supports for internal reporting as per client requirement. Under SAP CO, we can generate
contribution margin reports, contract margin reports, budgeting, planning and variance
reports
Coverage of SAP CO:

1. Cost Elements
2. Overheads Management
a. Cost Centers
b. Internal Orders
3. Profitability Management
a. Profit Center Accounting
b. Profitability Analysis
4. Product Costing
a. Product Cost Planning
b. Cost Object Controlling (Actual Cost of the Product)
c. Variance (Difference between Actual cost of the product and product cost
planning)
d. SAP PP Integration (Production Planning)
5. New General Ledger Concepts
a. Document Splitting
b. Segment Reporting (As per IFRS)
c. Ledger Groups (Parallel Books of Accounts)
d. CO-FI Integration
ASAP Methodology (Road Map)

ASAP: Accelerated SAP
ASAP means accelerated SAP. SAP means Systems, Applications and Products in data
processing. Acceleration means speed up the project
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Phases in ASAP Road Map:

1. Project Preparation
2. Business Blue Print
3. Realization
4. Finalization
5. Go – Live and Support
Project Preparation:
This is first and initial phase of the project where we start project.
Activities in project preparation-
1. POC (Proof of concept): Implementation partner will give demonstration on SAP
system how SAP system will work as per client requirement. Ex: Reliance group
wants to implement SAP system. Reliance Company selected WIPRO Company
to implement SAP.
Reliance Company – Client
WIPRO Company – Implementation Partner
2. Project Charter: Project Charter consists of two teams (Reliance company team
and WIPRO company team). Model project charter as follows,
Client Team (Reliance) Implementation Partner Team (WIPRO)
Project Director Project Director
Delivery Manager Delivery Manager
Project Manager Project Manager
Team Leader Team Leader
Senior Power User Senior Consultant
Power User Consultant
Junior Power User Junior Consultant
3. Kick off Meeting: This is initial meeting in the project implementation. This is a
interactive meeting between client team and implementation team
4. Scope of the project: What are the components clients wants to implement. For
ex:
a. SAP FI (Finance)
b. SAP CO (Controlling)
c. SAP MM (Materials Management)
d. SAP SD (Selling and Distribution)
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e. SAP PP (Production Planning)

f. SAP HR (Human Resource Management)
g. SAP Quality
h. SAP CRM (Customer Relations Management)
i. SAP SRM (Supply Relations Management)
j. SAP Basis (System Administrator)
k. SAP ABAP (Advanced Business Application Program) etc
5. Time lines of the Project: For each phase of the project, we maintain deadlines.
For ex: Project duration is 1 Year
Phases of SAP implementation Duration of Each Phase
Project Preparation 01.01.2011 – 31.03.2011 (3 Months)
Business Blue Print 01.04.2011 – 30.06.2011 (3 Months)
Realization 01.07.2011 – 31.10.2011 (4 Months)
Finalization 01.11.2011 – 30.11.2011 (1 Month)
Go – Live and Support 01.12.2011 – 31.12.2011 (1 Month)
Note: Project manager will prepare time lines of project and allocate work to his
subordinates as per time lines
6. AS-IS Document: Client employees will prepare AS – IS Document. AS-IS
Document consists of ‘as it is of their existing business’. This document will be
submitted to implementation partner team
7. TO-BE Document: This document will be prepared by implementation partner
team based on AS-IS document which is submitted by Client employees
8. GAP Analysis Document: This document will be prepared by implementation
partner team based on AS-IS document and TO-BE document. GAP analysis
document consists of differences between AS-IS Document and TO-BE
Document
Business Blue Print:

This is second phase of the project where we gather business requirements of the client
by conducting workshops and lead them by Questionnaires. We document all business
requirements and take sign off on the document from the client. This is to ensure that
move forward to next phase
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Realization:
This is third phase of the project where we configure/develop/implement the business
requirements of the client in the SAP system. Project manager will allocate work to the
consultants.
Base line configuration: We can configure the business requirements and test the business
requirements
Final Configuration: If there is any modifications, modify configuration and finalize
realization phase
Finalization:
This is fourth phase and penultimate phase in the project. Activities in finalization phase
 End to testing the business requirements
 Training to end users (client employees). Generally we follow
‘Train-the-Trainer’ concept
 System settings (Ex: Outlook configuration, MS Office, Printers, Scanners, some
other third party tools)
 Go – Live check
 Data migration from existing system to SAP system
Go – Live and Support:

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

Double click on SAP Logon on desktop
Click on Log on
Client 800
User SAPUSER
Password india123
Language EN (English)
Enter
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Note: Home screen/Initial screen of SAP is SAP Easy Access

Note: SAP Package was developed in 41 languages
Note: If you don't enter language, Default language is English
Client: Client is an organizational unit. Server can be divided into clients. Each client
consists of separate database and separate tables.
Ex:
100: Development Client
200: Testing/Quality Client
300: Production Client
User: User is an authorization to enter into SAP system and to process transactions in
SAP system. Ex: SAPUSER
SAP Package was developed in screen wise. Each screen has its own name that is called
Transaction code (Tcode)
Every screen consists of

Menu bar
Standard tool bar
Name bar
Application tool bar
Work area
Status bar
Menu bar, Name bar and Application tool bar will be changed screen to screen.
Standard tool bar is same in every screen, but based on the screen requirement some
buttons are active and some buttons are disabled
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Work area: We process transactions in work area by using menu bar, standard tool bar
and application tool bar
Status bar: System will update status of the transaction

Red Color Message: Error Message (We can’t process transactions)
Yellow Color Message: Warning Message (We can ignore warning message and
process transactions)
Green Color Message: Information Message
SAP has given two screens

1. End user screen (SAP Easy Access)
2. Consultant screen (Tcode: SPRO)
SPRO- SAP Project Reference Object
Enterprise Structure
1. Define Company (Group Company)
Definition: Company is an independent organizational unit, which is registered under
commercial law. Under company, we can generate consolidated financial statements.
Financial statements consist of profit and loss account and balance sheet. Consolidation
means clubbing of all sisters concerns/subsidiary companies financial statements
Ex: TATA Group, Birla Group, Reliance Group etc.
Path: SPRO - SAP Reference IMG- Enterprise Structure- Definition- Financial
Accounting - Define Company (Tcode: OX15)
Execute
Click on New Entries (F5)
Company
Company name
Street
PO Box
Postal code
City
Country
Language Key
Currency
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Save (Ctrl+S)
Prompt for customizing request dialog box will come
Click on create request (F8)
Short Description : Define Company
Enter and enter
Note:
Customizing Request: For every development, we need to create one customizing request.
These requests will be useful for transportation of developments from one server to other
server or one client to other client
2. Define Company code (Sister concern/subsidiary company)

Definition: Company code is an independent organizational unit, which is registered
under Companies Act, 1956. Under company code, we can generate financial statements.
Financial statements consist of profit and loss account and balance sheet. Company codes
are assigned to company (Group Company)
Ex: Reliance Power Ltd, Reliance Communication Ltd, Reliance Chemicals Ltd,
Reliance Insurance Ltd, Reliance Industries Ltd, Reliance Media Ltd, Reliance Retail
Ltd, Reliance Infrastructure Ltd, etc
Path: SPRO- SAP Reference IMG- Enterprise Structure- Definition- Financial
Accounting- Edit, Copy, Delete, Check Company Code
(Tcode: OX02)
Execute
Double click on Edit Company Code Data
Company Code
Company Name
City
Country
Currency
Language
Save (Ctrl+S)
Title
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Name
Search Term
Street
House number
Postal code
City
Country
Enter
Click on Create request (F8)
Short Description : Define Company Code
Enter and enter
3. Define Business Area

Definition: Business area nothing but branch. Under business area, we can generate
branch financial statements. Financial statements consist of profit and loss account and
balance sheet. Branch financial statements will be useful for internal reporting (branch
performance)
Path: SPRO- SAP Reference IMG- Enterprise Structure- Definition- Financial
Accounting- Define Business Area (Tcode: OX03)
Execute
Business Area Description
Save (Ctrl+S)
Click on Create Request (F8)
Short Description : Define Business Area
Enter and enter
4. Assign company code to company
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Definition: All company codes (sister concerns/subsidiary companies) are assigned to

company (Group company)
Path: SPRO- SAP Reference IMG- Enterprise Structure- Assignment- Financial
Accounting- Assign company code to company (Tcode: OX16)
Execute
Click on position button
Company code
Enter
Company
Save (Ctrl+S)
Short Description : Assign company code to company
Enter and enter
5. Define Fiscal Year Variant

Definition: Fiscal year nothing but financial year. Every company has to maintain
financial year as per their country legal requirement. Fiscal year consists of 12 normal
months and 4 special periods. Special periods will be useful for adjustment of accounts
after closing financial year. System can understand calendar year (January to December).
System can not understand other than calendar year (April to March, July to June and
October to September). We need to explain to the system
For Ex: 2011 – 2012 (April to March)
In 2011, 9 months (April to December) will come and in 2012, 3 months (January to
March) will come
If you convert 3 months of 2012 to 2011, we can say financial year 2011. We put against
each month of 2012 (-1)
Otherwise
If you convert 9 months of 2011 to 2012, we can say financial year 2012. We put against
each month of 2011 (+1)
This concept is called ‘Year Shift’
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If you do business less than one year, we can say shortened financial year. Life time of
the company it will come once (In establishing year)
Important Notes:
Year Shift
Special periods
Shortened financial year
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial Accounting
Global Settings (New)- Ledgers- Fiscal Year and Posting Periods- Maintain Fiscal Year
Variant (Maintain Shortened Fisc. Year) (Tcode: OB29)
Execute
FV (Fiscal Year Variant)
Description April to March
Number of posting periods 12
No. of Special periods 4
Enter
Select Variant
Double click on Periods Folder
Month Day Period Year Shift
4 30 1 0
5 31 2 0
6 30 3 0
7 31 4 0
8 31 5 0
9 30 6 0
10 31 7 0
11 30 8 0
12 31 9 0
1 31 10 -1
2 28 11 -1
3 31 12 -1
Double click on Period Texts Folder
Language Period Txt Text
EN 1 APR April
EN 2 MAY May
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EN 3 JUN June
EN 4 JUL July
EN 5 AUG August
EN 6 SEP September
EN 7 OCT October
EN 8 NOV November
EN 9 DEC December
EN 10 JAN January
EN 11 FEB February
EN 12 MAR March
Save (Ctrl+S)
Short Description : Define Fiscal Year Variant
Enter and enter
6. Assign company code to fiscal year variant

Path: Same path (Tcode: OB37)
Execute
System will through following warning message: ‘No postings are possible without fiscal
year variant’
Ignore warning message
Keep on enter until company code dialog box will come
Company code
Enter
Fiscal year variant
Save (Ctrl+S)
Short Description : Assign company code to fiscal year variant
Enter and enter
Note:
Variant nothing but variable. Variant can be used anywhere if it is necessary
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One variant can be assigned to all company codes, which are having same financial year
Create following financial years

January to December (Calendar year)
July to June
October to September
7. Define posting period variant

Definition: In posting period variant, we can open and close posting periods and year. We
can post transactions in respective opened posting periods
Global Settings (New)- Ledgers- Fiscal Year and Posting Periods- Posting Periods-
Define Variants for Open Posting Periods (Tcode: OBBO)
Execute
Variant
Name
Save (Ctrl+S)
Short Description : Define variants for open posting periods
Enter and enter
8. Assign Variants to Company Code

Assign variants to company code (Tcode: OBBP)
Execute
Click on Position button
Company Code
Enter
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Variant
Save (Ctrl+S)
Short Description : Assign variants to company code
Enter and enter
Note:
One variant can be assigned to more than one company code also which are having same
financial years
9. Open and Close Posting Periods

Open and Close Posting Periods (Tcode: OB52)
Execute
Var. A From To From Year To Year
Acct Account Per.1 period
Save (Ctrl+S)
Short Description : Open and close posting periods
Enter and enter
Note:
A (Account type): In SAP system, account types as follows
+ = Valid for all account types
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A = Assets
D = Customers
K = Vendors
M = Materials
S = G/L Accounts
V = Contract Accounts
Always better to open and close posting periods for all account types (+ = Valid for all
account types)
10. Define Document Types

Definition: Document type means to differentiate business transactions. Business
transactions are Customer invoice, Vendor Invoice, Customer incoming payment, Vendor
outgoing payments, General posting, Depreciation posting, Goods Receipt, Goods Issue
etc. For every business transaction, we maintain document type. For every document
type, we maintain document number ranges. Document type controls Number ranges and
account types.
Ex:
Sl.No Document Description Number From number To number
type range
1 SA General posting 01 0100000000 0199999999
2 KR Vendor Invoice 19 1900000000 1999999999
3 KZ Vendor out going payment 15 1500000000 1599999999
4 KA Vendor Document 17 1700000000 1799999999
5 KG Vendor Credit memo 17 1700000000 1799999999
6 DR Customer invoice 18 1800000000 1899999999
7 DZ Customer incoming payment 14 1400000000 1499999999
8 DA Customer Document 16 1600000000 1699999999
9 DG Customer Credit Memo 16 1600000000 1699999999
10 AF Depreciation 04 0400000000 0499999999
Global Settings (New)- Document- Define Document Types - Define Document Types for
Entry View (Tcode:OBA7)
Execute
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Document type : SA (G/L Account Document)

Enter
Select SA
Click on Details (Ctrl+Shift+F2)
Observe number range 01 in SA document type
Click on Number range information
Company Code
Note:
Display Interval: It shows what are the intervals we created
Status button: we can see, how many numbers we used against interval
Change intervals: Create new interval or Change existing intervals
Click on Change Interval
Click on Insert Interval (Shift+F1)
No 01
Year
From number 0100000000
To Number 0199999999
Enter
Save (Ctrl+S) and enter
Note:
Current number: System will update recently posted document number as current
number
Ext (Externally): If you select this indicator, we need to give document numbers
externally (manually) while posting transactions. If you don’t set this indicator, system
will allocate document numbers internally (Automatically)
Note:
We maintain document numbers every year
11. Define Field Status Variants

Definition: Field status variant controls transactional data. Field status variant consists of
Field status groups. Field status groups consist of Fields. Against each field, we can
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select either ‘suppress entry’, ‘optional entry’ or ‘required entry’. Field status variant
assigned to company code. Field status group is assigned to General ledger master record
At the time of entry the system gives 70 fields
Ex: Quantity, Business area, value date, text etc
You can make any field as
1. Suppress field – Field will not be visible.
2. Required field – To enter the values.
3. Optional field – Choice to enter or not enter.
Global Settings (New)- Ledgers- Fields - Define Field Status Variants (Tcode:OBC4)
Execute
Select 0001
Click on Copy as (F6)
Replace 0001 to _________
Enter
Click on Copy All
Enter
Save and enter
Select Variant
Double click on field status Groups
Double click on G005
Double click on Payment transactions
Select value date as optional mode
Save (Ctrl+S)
Note: Value date nothing but check clearing date
12. Assign Company Code to Field Status Variants

Global Settings (New)- Ledgers- Fields - Assign Company Code to Field Status Variants
(Tcode: OBC5)
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Execute
Company Code
Enter
Fld.stat.var
Save and enter
Note:
Field status variant can be assigned to more than one company code
13. Edit Chart of Accounts List

Definition: Chart of Accounts means list of G/L Accounts. Ex: Expenses, Incomes,
Liabilities and Assets
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General Ledger
Accounting (New) - Master Data- - G/L Accounts - Preparations- Edit Chart of Accounts
List (Tcode:OB13)
Execute
Chart of accounts
Description
Maint.language EN English
Length of G/L Account number 6
Save and enter
Note:
Maint.language, Language in which the chart of accounts is created.
All accounts have a description in this language. Master data can only be displayed or
maintained in this language. If you carry out functions with the account, the account
name can be displayed both in the maintenance language and in the available alternative
languages.
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Length of G/L account number, for every general ledger we need to allocate one unique
number. If you maintain length of G/L account number 6, we can allocate 6 digits
number to our general ledgers. We can maintain maximum 10 digit number in SAP
system
Blocked, If you set this indicator you can’t create general ledger master records in our
chart of accounts
14. Define Account Group

Definition: List of G/L Accounts will be segregated into account groups. Ex: Liabilities,
Assets, Incomes and Expenses. Account Group controls fields in the general ledger
master record and number ranges for general ledger master record. We can create ‘N’
number of account groups in SAP system
Accounting (New)- Master Data- G/L Accounts- Preparations- Define Account Group
(Tcode: OBD4)
Execute
Chrt/Accts Acct Group Name From acct To Account
LIAB Liabilities 100000 199999
ASST Assets 200000 299999
INCO Incomes 300000 399999
EXPN Expenses 400000 499999
15. Define Retained Earnings Account

Definition: Retained Earnings Account is a bridge to flow the profit or loss to the balance
sheet.
Accounting (New)- Master Data- G/L Accounts- Preparations- Define Retained
Earnings Account (Tcode: OB53)
Execute
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Chart of accounts
Enter
P&L statmt acct type X
Account 100100
Save (Ctrl+S)
It gives the Message, Account 100100 not created in chart of Accounts
Ignore warning messages
Enter
16. Assign Company Code to Chart of Accounts

Path: SPRO- SAP Reference IMG- Financial Accounting - General Ledger Accounting-
G/L Accounts- Master Data- Preparations- Assign Company Code to Chart of Accounts
(Tcode:OB13)
Execute
Company Code
Enter
Chrt/Accts
Save and enter
17. Define Tolerance Groups for G/L Accounts

Definition: For G/L account clearing, tolerance groups define the limits within which
differences are accepted and automatically posted to predefined
accounts. The groups defined here can be assigned in the general ledger
account master record.
Accounting (New)- Business Transactions- Open Item Clearing- Clearing Differences-
Define Tolerance Groups for G/L Accounts (Tcode:OBA0)
Execute
Company Code
Debit posting 5 Percentage 1
Credit posting 5 Percentage 1
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Save and enter
18. Define Tolerance Groups for Employees

Definition: SAP system is high secured system. We can give authorizations to each
employee or group of employees
Define Tolerance Groups for Employees (Tcode: OBA4)
Execute
Company Code
Upper limits for posting procedures
Amount per document 99999999
Amount per open item account item 99999999
Cash discount per line item 3
Permitted payment differences
Amount Percent
Revenue 5 1
Expenses 5 1
19. Assign Country to Calculation Procedure

Definition: We calculate taxes as per country legal requirement. Tax procedure will be
assigned to country. Calculation procedures containing the necessary specifications for
the calculation and posting of taxes on sales/purchases have already been defined in the
standard SAP system for certain countries. We discuss tax procedure in later discussions
[SAP MM (Materials Management) and SAP SD (Selling and Distribution) Integration ]
Global Settings (New)- Tax on Sales/Purchases- Basic Settings- Assign Country to
Calculation Procedure (Tcode: OBBG)
Execute
Country IN (India)
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Enter
Proc TAXD
20. Deactivate Document splitting

Explanation: We discuss document splitting in controlling area. If you activate document
splitting, following error message will come while posting transactions “There is no item
category assigned to account”
Accounting (New)- Business Transactions- Document Splitting- Activate Document
Splitting
Execute
Double click on Deactivation per company code folder
Go to position button
Company code
Enter
Select Inactive
G/L Master Records

Definition:
G/L account master records contain the data that is always needed by the General Ledger
to determine the account's function. The G/L account master records control the posting
of accounting transactions to G/L accounts and the processing of the posting data
Structure of G/L Master Record:
G/L account master records are divided into two areas so that company codes with the
same chart of accounts can use the same G/L accounts
 Chart of accounts area
The chart of accounts area contains the data that is valid for all company codes, such as
the account number.
 Company code specific area
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The company code specific area contains data that may vary from one company code to
another, such as the currency in which the account may be posted.
Creation of G/L Master Record

Path: Accounting - Financial Accounting - General Ledger - Master Records - G/L
Accounts - Individual Processing - FS00 - Centrally (Tcode:FS00)
Double click on FS00 - Centrally
1. Share Capital A/C
G/L Account 100000
Company Code
Click on Create
Go to Type/Description Tab
Account Group LIAB Liabilities
Select Balance Sheet Account
Short Text Share Capital A/C
G/L Acct Long Text Share Capital Account
Go to Control Data Tab
Account Currency INR (Indian Rupees)
Select Only Balances in local crcy
Select Line item display
Sort Key 001 (Posting Date)
Go to Create/bank/interest Tab
Field Status Group G001
Save
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2. Bank Account
G/L Account 290100
Company Code
Click on Create
Account Group ASST Assets
Short Text Bank A/C
G/L Acct Long Text Bank Account
Sort Key 001
Select Relevant to cash flow
Save
3. Rent A/C
G/L Account 400010
Company Code
Click on Create
Account Group EXPN Expenses
Select P&L Statement Acct
Short Text Rent A/C
G/L Acct Long Text Rent Account
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Save
4. Interest Income A/C

G/L Account 300010
Company Code
Click on Create
Account Group INCO Incomes
Short Text Interest Income A/C
G/L Acct Long Text Interest Income Account
Sort Key 001
Save
Notes:
Account Currency: The account currency indicates the currency in which this account is
held. If a currency other than the company code currency is specified, users can only post
items in that currency to this account. If the company code currency is specified, users
can post items in any currency to this account.
Only balances in local crcy: Only balances in local crcy indicate that balances are
updated only in local currency when users post items to this account. Local currency
nothing but company code currency
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Line item display: If you set this indicator, we can see ledger balances each line item wise
and balance. If you don’t set this indicator, we can see ledger balances “only balance
amount”.
Sort Key: Based on sort key, we can sort data in the ledger. For ex: posting date is the
sort key that is assigned in general ledger. We can see ledger balances each posting date
wise
Posting Key
Definition: In this activity you define posting keys. Users specify a posting key before
entering a line item. The posting key controls how the line item is entered and processed.
For each posting key, you define among other things:
 which side of an account can be posted to (Debit or Credit),
 which type of account can be posted to (Customers, Vendors, G/L Account,
Assets or Material), and
 Which fields the system display on the entry screens and whether an entry must
be made (field status)?
Global Settings (New)- Document- Define Posting Keys
(Tcode: OB41)
Execute
Double click on 40 posting key and observe parameters in posting key
SAP has given following standard posting keys

Posting key in General Ledger Component
Posting keys in Accounts Payables
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Posting keys in Accounts Receivables
Posting Keys in Asset Accounting
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General Posting
1. General posting
Path: Accounting - Financial Accounting - General Ledger - Posting - FB50 - Enter G/L
Account Document (Tcode: FB50)
Double click on FB50 - Enter G/L Account Document
Click on Company code (F7)
Company code
Enter
Document date
G/L acct D/C Amount in doc. Curr Value date

290100 S Debit 25000 11.10.2011
100000 H Credit 25000
Post (Ctrl+S)
Go to Menu bar
Document – Display
We can see entry
Note:
Document Date: The document date is the date on which the original document was
issued
Posting Date: Date which is used when entering the document in Financial Accounting
or Controlling
Currency: In which currency you are posting document in the System that currency is
called Document currency
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Reference: The reference document number can contain the document number of the
customer/vendor. However it may contain a different value. The reference document
number is used as a search criterion when displaying or changing documents. In
correspondence, the reference document number is sometimes printed in place of the
document number. Enter the number specified by the business partner. If the document
was created in-house and you do not know the business partner document number, you
can copy the document number into the reference number field by entering "*".
Doc.Header Text: The document header text contains explanations or notes which apply
to the document as a whole, that is, not only for certain line items
Cross company code number: In cross-company code document entry, several documents
are created in different company codes. A common transaction number indicates that the
documents belong together logically. The transaction number can be assigned by the
system or manually. The system creates the number from the document number,
company code and fiscal year. Ex:
Document number 0000004711
Company code 0003
Fiscal year 11
The automatically created document number reads 0000004711000311
Exchange Rate: Exchange rate used for the translation between foreign currency and
local currency
Translation date: Translation date for determining the exchange rate which is to be used
for translation. The exchange rates are stored in the system
2. Document Display
Path: Accounting - Financial Accounting - General Ledger - Document - FB03 - Display
(Tcode: FB03)
Double click on FB03 - Display
Click on Document list (Shift+F8)
Company Code
Document type SA (G/L Account Document)
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Execute (F8)
Double click on document no.
3. Display ledger balances

Path: Accounting - Financial Accounting - General Ledger - Account - FS10N - Display
Balances (Tcode: FS10N)
Double click on FS10N - Display Balances
G/L Account
Company Code
Fiscal year
Execute (F8)
We can see balance carry forward to this year and each period wise, debit, credit, balance
and cumulative balance
Foreign Currency
1. Maintain Exchange Rates
Path: Accounting- Financial Accounting- General Ledger- Environment- Current
Settings- S_BCE_68000174 - Enter Translation Rates
(Tcode: S_BCE_68000174 or OB08)
Double click on S_BCE_68000174 - Enter Translation Rates
ExRt Valid from From Dir.Quot. To
M 03.11.2011 USD 45 INR
M 03.11.2011 EUR 75 INR
M 03.11.2011 AUD 40 INR
M 03.11.2011 GBP 80 INR
2. Post with foreign currency

Company code
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Enter
Document date
Currency USD (USA Dollar)
Go to Details tab
Observe Exchange rate which is proposed by System

290100 S Debit 1000
100000 H Credit 1000
Post (Ctrl+S)
Go to Menu bar
Click on Display currency (We can see document in document currency and local
currency)
Note:
Document currency: In which currency we are posting document. Ex: USD
Local currency: Local currency nothing but company code currency which is maintained
in company code creation. Ex: INR
Hold Documents
Definition: When you are entering data, you may be interrupted, or you may not have all
the data you need for entering a document.
In this case, you can temporarily save the data you have entered, and then continue with
the document entry at a later time. If you want the system to hold a document, it does not
have to be complete. Account balances are not updated and the document data is not
available for evaluation. A document number is not assigned.
1. Create Hold Document (Tcode: FB50)

Company code
Enter
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Document date
290100 S Debit 25000 11.10.2011
100000 H Credit 25000
Click on Hold (F5)
Temporary Document number
Enter
2. If get following message while creating held document “Held documents must be
converted: read long text” (Tcode: SE38)
Program RFTMPBLU
Execute (F8)
Execute (F8)
Note:
RFTMPBLU is a standard program for held documents. We need to activate this
program, and then only we can create held documents. This type of error will not come in
real time
3. Post held Documents (Tcode: FB50)

Company code
Enter
Click on Tree on (Shift+F1)
Now opens tree pane
Open Held documents
Choose held document (which document you want to post)
Click on Item not checked (Red color Cross Button before line item)
Information dialog box will come
“No errors exist for this item”
Enter
Post (Ctrl+S)
Click on Refresh tree (Shift+F7)
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Parking Documents
Definition: You can use document parking to enter and store (park) incomplete
documents in the SAP System without carrying out extensive entry checks.
Parked documents can be completed, checked, and then posted at a later date - if
necessary by a different accounting clerk.
When documents are parked, data (for example, transaction figures) is not updated.
Data from parked documents can however be used for evaluations by the system. For
example, amounts from parked invoices can be used for the advance return for tax on
sales and purchases. Using payment requests, parked invoices can be paid punctually and
without loss of discount.
1. Create three parked documents

Path: Accounting- Financial Accounting- General Ledger- Posting- FV50 - Edit or Park
G/L Document (Tcode: FV50)
Click on Company Code (F7)
Company code
Enter
Document date
G/L Acct D/C Amount in doc. Curr Value date
290100 S Debit 25000 12.10.2011
100000 H Credit *
Post (Ctrl+S)
2. Post/Delete parked documents

Path: Accounting- Financial Accounting- General Ledger- Posting- FV50 - Edit or Park
G/L Document (Tcode: FV50)
Company code
Enter
Document date
Now opens Tree Pane
Open Parked documents tree
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Choose parked document (which parked document you want to post)

If you want to post parked document
Go to Menu bar
Document – Post
If you want to delete parked document
Go to Menu bar
Document – Delete parked document
Click on Yes
If you want to park document to his superior
Go to Menu bar
Document – Park
Screen Variants
Screen variant is used to post transactions while posting transactions, what are the fields
user is entering. Based on client requirement we can develop our own fields
1. Create Screen Variant
Go to Menu bar
Edit – Screen Variant – Create Screen Variant
Transaction Code FB50
Go to Screen Variants Tab
Screen Variant
Program SAPLFSKB
Screen 0100
Click on Create (F5)
Document date
Post (Ctrl+S)
Enter
Select all fields invisible except following fields
Status
G/L Acct
D/C
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Amount in Doc. Curr

Value date
Text
Business Area
Click on Exit and Save
Save (Ctrl+S)
Click on Local Object (F7)
2. Add Screen Variant (Tcode: FB50)

Now opens tree pane
Choose screen variant for items
Mouse right click
Screen Variants – Add Screen Variant
Variant
Enter
Choose your variant and post transactions
Reference Documents
Account Assignment Models

Account assignment models are templates to post transactions.
1. Create Account Assignment Models (Tcode: FB50)
Company code
Enter
Document date 13.10.2011
G/L Acct D/C Amount in doc. Curr
290100 S Debit 25000
100000 H Credit *
Go to Menu bar
Edit – Acct Assignment Templates – Save Account Assignment Template
Acct asst temp
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Enter
2. Post with Account Assignment Models (Tcode: FB50)

Now opens tree pane
Open Account Assignment Templates Tree
Choose your template and post transactions
Sample Documents
Sample documents also templates like account assignment models. Following are
differences between sample documents and account assignment models
 Sample documents are year dependent but account assignment models are used
life time of the company
 We can not sample documents without amount but we can create account
assignment models without amounts also
 We can give sample documents numbers internally or externally but Account
assignment models only externally
1. Maintain number ranges for Sample documents
Global Settings (New)- Document- Document Number Ranges- Documents in Entry
View- Define Document Number Ranges for Entry View (Tcode: FBN1)
Execute
Company Code
Click on change interval
Click on Insert interval (Shift+F1)
No X2
Year
From Number 0002000000
Enter
Save and enter
2. Create Sample document
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Path: Accounting - Financial Accounting - General Ledger - Posting - Reference

Documents - F-01 - Sample Document (Tcode:F-01)
Double click on F-01 - Sample Document
Document Date Type Company Code
Posting Date Period Currency/Rate
PstKy 40 (Debit)
Account
Enter
Amount 30000
PstKy 50 (Credit)
Account
Enter
Amount *
Post (Ctrl+S)
3. Post with Sample documents (Tcode: FB50)

Company code
Enter
Document date
Go to Menu bar
Goto – post with reference
Document number
Company code
Fiscal year
Enter and enter
Post (Ctrl+S)
Enter
Recurring Documents
Definition: Recurring documents means regular transactions. We post every month in a
fixed date and with fixed amount (same amount). Ex: Rent, Insurance Premiums, Bank
Installments etc
1. Maintain number ranges for recurring document
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(Tcode: FBN1)
Company Code
No X1
Year
Enter
2. Create Recurring documents

Path: Accounting - Financial Accounting - General Ledger - Posting - Reference
Documents - FBD1 - Recurring Document (Tcode: FBD1)
Company Code
First run on
Last run on
Interval in months
Document type SA (G/L Account document)
PstKy 40 (Debit)
Account 400010 (Rent A/C)
Enter
Amount 25000
PstKy 50 (Credit)
Account 290100 (Bank A/C)
Enter
Amount *
Save (Ctrl+S)
3. Post recurring documents

Path: Accounting - Financial Accounting - General Ledger - Periodic Processing -
Recurring Entries - F.14 - Execute (Tcode: F.14)
Company Code :
From To
Document number 1 9999999999
From To
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Settlement period
Batch input session name

Execute (F8)
Go to Menu bar
System - services - Batch Input - sessions
Select Session
Click on process (F8)
Select display errors
Enter
Click on Exit Batch input
4. Document Display (Tcode: FB03)
Balance Interest Calculation

Scenario:
Loan taken from SBI Bank 1000000
Interest on Loan 15%
Rs Formulae
01.04.2011 Loan Taken from bank 1000000.00
30.04.2011 Interest on loan 12328.77 (1000000X15%X30/365)
01.05.2011 Loan balance 1012328.77
31.05.2011 Interest on loan 12896.79 (1012328.77X15%X31/365)
01.06.2011 Loan balance 1025225.56
01.06.2011 Repayment of Loan 200000.00
01.06.2011 Loan balance 825225.56
30.06.2011 Interest on loan 10174.01 (825225.56X15%X30/365)
01.07.2011 Loan balance 835399.57
1. Define Interest Calculation Types

Path: SPRO- SAP Reference IMG- Financial Accounting(New)- General Ledger
Accounting(New)- Business Transactions- Bank Account Interest Calculation- Interest
Calculation Global Settings- Define Interest Calculation Types (Tcode:OB46)
Execute
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Int ID
Name Balance Interest
Int calc.type S Balance Interest Calculation
2. Prepare Account Balance Interest Calculation

Definition: We maintain parameters for interest calculation indicator; how you want
calculate interest on loan
Path: Same path (Tcode: OBAA)
Execute
Int.calc.Indicator
Interest calc.freq 1
Calendar type G
Select Balance plus int
Save and enter
3. Define Reference Interest Rates

Definition: Reference Interest Rate nothing but interest Rate
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - General Ledger
Accounting (New) - Business Transactions- Bank Account Interest Calculation- Interest
Calculation- Define Reference Interest Rates
(Tcode: OBAC)
Execute
Ref.int.rate
Long Text
Description
Date from
Currency INR
Click on Next Entry (F8)
Ref.int.rate
Long Text
Description
Date from
Currency INR
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4. Define Time-Dependent Terms

Calculation- Define Time-Dependent Terms
(Tcode: OB81)
Execute
Int.calc.indicator
Currency key INR
Eff.from
Sequential number 1
Term Credit interest: balance interest calc.
Ref.interest rate
Int.calc.indicator
Currency key INR
Eff.from
Sequential number 2
Term Debit interest: balance interest calc.
Ref.interest rate
Save and enter
5. Enter Interest Values

Calculation- Enter Interest Values (Tcode: OB83)
Execute
Reference Valid from Int.Rate
6. Creation of G/L Accounts (Tcode:FS00)
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a. Interest Expense A/C

G/L Account 400080
Company Code
Click on Create
Account Group EXPN Expense
Select P&L statement acct
Short Text Interest Expenses A/C
G/L Acct Long Text Interest Expenses Account
Go to Control data Tab
Select only balances in local crcy
Sort Key 001
Go to Create/Bank/Interest Tab
Field status group G001
Save
b. SBI Term Loan Account
G/L Account 100500
Company Code
Click on Create
Select Balance sheet Account
Short Text SBI Term Loan A/C
G/L Acct Long Text SBI Term Loan Account
Sort Key 001
Interest Indicator
Save (Ctrl+S)
7. Assign G/L Accounts
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Path: SPRO- SAP Reference IMG- Financial Accounting(New)- General Ledger

Accounting(New)- Business Transactions- Bank Account Interest Calculation- Interest
Posting- Prepare G/L Account Balance Interest Calculation (Tcode:OBV2)
Execute
Click on Accounts (F7)
Chart of accts :
Enter
Acct symbol Currency G/L acct
0002 INR 400080
2000 INR 100500
8. Post Loan Taken from bank

Company code
Enter
Document date
Posting Date
G/L acct D/C Amount in doc. Curr

290100 (Bank A/C) S Debit 1000000
100500 (SBI Term Loan A/C H Credit 1000000
Post (Ctrl+S)
9. Interest calculation
Path: Accounting - Financial Accounting - General Ledger - Periodic Processing -
Interest Calculation - F.52 - Balance Interest Calculation
(Tcode: F.52)
Chart of accounts
G/L Account 100500 (Loan Account)
Company Code
Calculation period
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Select post interest settlement

Select update master record
Session name Venkat
Execute (F8)
Go to Menu bar
System - services- batch input - sessions
Select Venkat
Click on process (F8)
Enter
Click on Exit batch input
17. Document display (Tcode: FB03)
18. Display ledger (Tcode: FS10N)
Reversal of Documents
Definition: If you have entered an incorrect document, you can reverse it, thereby also
clearing 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
Note: Once we post documents in SAP, we can’t edit amounts. Reverse the document and
post correct document. We have to know wrongly posted document number, and then
only we can reverse the document
1. Define Reasons for Reversal
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Accounting (New)- Business Transactions- Adjustment Posting/Reversal- Define Reasons
for Reversal
Execute
Reason
Name Wrongly posted document
Select Neg.posting
Note:
Negative posting: Indicator that "Negative postings" are to be generated for a reversal
with the specified reversal reason. Negative postings reduce the transaction figures again.
Negative postings must also be allowed for the company code of the document to be
reversed. If a company code does not generally use any negative postings, the indicator
set here is ignored.
Alternative posting date: Indicator as to whether you are allowed to specify an alternative
posting date for the relevant reversal reason. When you use the reversal reason, the
system checks that reversal is not carried out using an alternative posting date and
therefore possibly in a later posting period or in a later fiscal year. If you want to use
negative postings during reversal but only if the reversal is posted in the same period, you
can define two reversal reasons:
1st reason: No alternative date allowed, generate negative posting
2nd reason: Alternative date allowed, do not generate negative posting
2. Permit Negative Posting

Accounting (New)- Business Transactions- Adjustment Posting/Reversal- Permit
Negative Posting
Execute
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Company code
Select Negative posting permitted
3. Reversal of Documents
Path: Accounting - Financial Accounting - General Ledger - Document - Reverse - FB08
- Individual Reversal (Tcode: FB08)
Document number
Company Code
Fiscal year
Reversal reason
Post (Ctrl+S)

Document number
Company code
Fiscal year
Enter
Observe entry
Click on Reversal document (Shift+F1)
We can see which document we reversed
5. Mass Reversals
Path: Accounting - Financial Accounting - General Ledger - Document - Reverse - F.80
- Mass Reversal (Tcode: F.80)
Company code
Document number From To
Fiscal year
Reason for reversal
Deselect Test Run
Execute (F8)
Report Layout and Sort filter Command
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1. Report Layout (Tcode: FS10N)

G/L Account
Company code
Fiscal year
Execute (F8)
Double click on Amount
Click on Change Layout (Ctrl+F8)
Select Posting date
Select Posting key
Click on Show Selected fields
Enter
2. Sort filter Commands (Tcode: FS10N)

G/L Account
Company code
Fiscal year
Execute (F8)
Double click on Amount
Click on Doc.Date
Click on Set Filter (Ctrl+Shift+F2)
Document date :
Enter
Open Item Management

Outstanding expenses:
Definition: Expenses incurred but not paid. Ex: Outstanding salaries, Outstanding rent etc
Entries:
a. Posting outstanding Expenses
Rent A/C
To O/S Expenses A/C
b. Clearing outstanding Expenses
O/S Expense A/C
To Bank A/C
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1. Create Outstanding Expenses G/L A/C (Tcode: FS00)

G/L Account 190600
Company Code
Click on Create
Account group LIAB Liabilities
Short Text O/S Expenses A/C
G/L Acct Long Text Out Standing Expense A/C
Select Open Item Management
Sort key 001
Field Status group G001
Save
2. Post Outstanding expenses (Tcode: FB50)

Company code
Enter
Document date

400010 S Debit 25000
190600 H Credit 25000
Post (Ctrl+S)
3. Report
Path: Accounting- Financial Accounting- General Ledger- Account- FBL3N -
Display/Change Line Items (Tcode: FBL3N)
G/L Account 190600 (Out Standing Expense A/C)
Company code
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Select Open items

Execute (F8)
4. Payment against Out standing expense

Path: Same path (Tcode: F-03)
Account 190600 (Outstanding Expense A/C)
Company code
Click on Process open items (Shift+F4)
Select O/S Expense against which outstanding expenses you are making payment (Blue
color means selection and block color means deselecting. Double click on Blue color
means deselecting and double click on block color means selection)
Click on Document Overview (Shift+F2)
PstKy 50 (Credit)
Enter
Amount 25000
Go to Menu bar
Document – simulate
Post (Ctrl+S)
5. Report (Tcode: FBL3N)

G/L account 190600 (Out Standing Expenses A/C)
Company code
Select cleared items
Execute (F8)
Prepaid Expenses
Definition: Expenses paid in advance. Ex: Advance Salary, Prepaid Rent, Prepaid
Electricity, prepaid telephone bill etc
Entries:
a. Posting of prepaid Expenses
Prepaid Expense A/C
To Bank A/C
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b. Booking of expenses against prepaid Expenses

Rent A/C
To Prepaid expenses A/C
1. Create prepaid Expense G/L Account (Tcode: FS00)

G/L Account 290600
Company code
Click on create
Short text Prepaid Ex. A/C
G/L Acct Long Text Prepaid expense Account
Select open item management
Select line item display
Sort key 001
Save
2. Post prepaid expenses (Tcode: FB50)

Company code
Enter
Document date

290600 S Debit 25000
290100 H Credit 25000
Post (Ctrl+S)
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G/L Account 290600 (Prepaid Expense A/C)

Company code
Select Open items
Execute (F8)
4. Clear prepaid expense (Tcode: F-03)

Path: Accounting- Financial Accounting- General Ledger- Account- F-03 – Clear (Tcode:
F-03)
Account 290600 (Prepaid Expense A/C)
Company code
Select None
Click on Process Open Items (Shift+F4)
Click on Document overview (Shift+F2)
PstKy 40 (Debit)
Account 400090 (Rent A/C)
Enter
Amount 25000
Click on process open items (Shift+F4)
Go to Menu bar
Document – Simulate
Save

G/L Account 290600 (Prepaid Expense A/C)
Company code
Select Cleared items
Execute (F8)
Foreign Currency Valuation
1. Define Valuation method
Definition: In this activity, we define valuation methods for the open items. Valuation
method is a grouping of specifications together which we need for the balance and
individual valuation
Accounting (New)- Periodic Processing- Valuate- Define Valuation Methods
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Execute
Valuation method
Description
Select always evaluate
Document type SA
Select balance Val
ExchRate Type for Debit Bal M
ExchRate Type for CreditBal M
Select determine Exch.Rate type from Acct Bal
Save and enter
Always evaluate: If you select this procedure, revaluations are also taken into
consideration
Exchange rate types: Exchange rates nothing but currency rate symbols
B: Bank selling rate 46 (Per USD)
G: Bank buying rate 44 (Per USD)
M: Average rate (46+44)/2= 45 (Per USD)
2. Define Valuation Areas

Path: Same path
Execute
Valuation
Valuation method
Crcy type 10 company code currency
Save and enter
Note:
Valuation: Valuation is a unique code to valuate foreign currency.
3. Check Assignment of Accounting Principle to Ledger Group

Path: same path
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Execute
Accounting principle GAAP (General Accepted Accounting
Principle)
Target ledger group 0L (Leading ledger)
Save and enter
4. Assign Valuation Areas and Accounting Principles

Path: Same path
Execute
Valuation area
Acc.principle GAAP
Save and enter
5. Creation of General ledger master records (Tcode: FS00)

a. Exchange loss A/C
G/L Account 400090
Company code
Click on Create
Go to Type/description Tab
Account group EXPN Expenses
Short text Exchange Loss A/C
G/L Acct Long Text Exchange Loss A/C
Go to control data tab
Sort key 001 (Posting date)
Go to create/bank/interest tab
Save
b. Exchange Gain A/C
G/L Account 300090
Company code
Click on Create
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Go to Type/description Tab
Account group INCO Incomes
Short text Exchange Gain A/C
G/L Acct Long Text Exchange Gain A/C
Save
c. Valuation Loss A/C

G/L account 400095
Company code
Click on with template
G/L Account 400090
Company code
Enter
Go to type/description tab
Short text Valuation Loss A/C
G/L Acct Long Text Valuation Loss A/C
Save
d. Valuation Gain A/C

G/L account 300095
Company code
Click on with template
G/L Account 300090
Company code
Enter
Go to type/description tab
Short text Valuation Gain A/C
G/L Acct Long Text Valuation Gain A/C
Save
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e. Valuation Adj A/C

G/L Account 190140
Company code
Click on create
Go to type/description Tab
Select balance sheet account
Short text Valuation Adj A/C
G/L Acct Long Text Valuation Adjustment account
Save
a. Loan from BOA A/C
G/L Account 190900
Company code
Click on create
Go to type/description Tab
Short text Loan from BOA A/C
G/L Acct Long Text Loan from Bank of America account
Account Currency USD
Save
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Accounting (New)- Periodic Processing- Valuate- Foreign Currency Valuation- Prepare
Automatic Postings for Foreign Currency Valuation (Tcode: OBA1)
Execute
Double click on Exchange Rate Dif.: Open Items/GL Acct KDF
Chart of accounts
Enter
G/L Account 190900 (Loan from BOA A/C)
Loss 400090 (Exchange Loss A/C)
Gain 300090 (Exchange Gain A/C)
Val.Loss 1 400095 (Valuation Loss A/C)
Val.Gain 1 300095 (Valuation Gain A/C)
Bal.sheet adj. 1 190140 (Valuation adj A/C)
Save and enter
7. Maintain translation rates

Path: Accounting- Financial Accounting- General Ledger- Environment- Current
Settings- S_BCE_68000174 - Enter Translation Rates (Tcode: S_BCE_68000174)
ExRt Valid from From Dir.Quot. To
M USD 45 INR
8. Loan Taken from BOA

Company code
Enter
Document date

290100 (Bank A/C) S Debit 25000 11.10.2011
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190900 (BOA A/C) H Credit 25000

Post (Ctrl+S)
Go to Menu bar
We can see entry
9. Foreign currency valuation

Path: Accounting- Financial Accounting- General Ledger- Periodic Processing- Closing-
Valuate- FAGL_FC_VAL - Foreign Currency Valuation (New) (Tcode:
FAGL_FC_VAL)
Company code
Valuation key date
Valuation area
Go to Posting Tab
Batch input session name
Go to open items Tab
Select Valuate G/L Accounts open items
G/L Account 190900 (Loan from BOA A/C)
Execute (F8)
Go to menu bar
System- Services- Batch input- sessions
Select Session
Click on Process (F8)
Select extended log
Enter
Click on exit batch input (F12)
Intercompany transactions
1. Creation General ledger master record in two company codes (Tcode: FS00)
G/L Account 190101
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Company code
Click on create
Goto type/description tab
Short text
G/L Account Long Text
Go to Control data tab
Save
G/L Account 190101

Company code
Click on create
Goto type/description tab
Account groupLIAB Liabilities
Short text
G/L Account Long Text
Go to Control data tab
Goto create/bank/interest tab
Save
2. Prepare Cross-Company Code Transactions
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Accounting (New)- Business Transactions- Prepare Cross-Company Code Transactions
(Tcode: OBYA)
Execute
Company code 1
Company code 2
Enter
Posted in 1001
Cleared against 2601
Debit posting key 40 (Debit) Credit posting key 50 (Credit)
Account debit 190101 Account credit 190101
Posted in
Cleared against
Debit posting key 40 (Debit) Credit posting key 50 (Credit)
Account debit 190101 Account credit 190101
3. Intercompany Posting
Company code
Enter
Document date
G/L acct D/C Amount in doc. Curr Company Code

290100 S Debit 25000
290100 H Credit 25000
Post (Ctrl+S)
Go to Menu bar
We can see entry
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Accounts payables
Accounts payable module streamlines “Procure – To – Pay (P2P)” process while
providing financial control and information. It supports booking of invoices, matching
invoices against purchase orders and approval of invoices. It facilitates recording of
debit/credit memos as well as payments. It helps monitor supplier invoices and creates
supplier balance overviews.
This component will deal with vendors, Terms and conditions, Invoices, outgoing
payments, Advance to vendors, Etc. Vendors are subsidiary ledgers. AP component
integrates with General ledger component.
Purpose of Accounts Payables:

The Accounts payable application component records and administers accounting data
for all vendors. It is also an integral part of the purchasing system. Deliveries and
invoices are managed according to vendors. The system automatically makes postings in
response to the operative transactions.
Features of Accounts Payables:

 Payables are paid with the automatic and manual payment program
 Postings made in accounts payables are simultaneously recorded in the general
ledger where different G/L Accounts are updated based on the transaction
involved. Ex: Payables and advances to vendors
 Balance confirmations, account statements, and other forms of reports to suit your
requirement in business correspondence with vendors
Business Process:
1. Vendor invoice verification
Vendor invoices will be processed based on the invoices received from the vendors. In
invoice verification, vendor invoices are compared with the purchase order and the goods
receipt and are checked for the price and quantity
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 When an invoice is entered with reference to a purchase order, the system

suggests data from the purchase order and the goods receipts for the purchase
order. Ex: Vendor, Material, Quantity still to be invoiced, Terms of payment and
so on
 The posting of the invoice completes the invoice verification process. The system
updates the purchase order history and financial accounting initiate’s payment for
the open invoice items. Invoice verification creates a link between materials
management and accounting document
2. Vendor Down Payments (Advance to vendors)

Advance payments will be made according to the terms of payments with the vendor. The
advance payments made to the vendor will be tracked as distinct from the normal
payments made to the vendor. The posting for down payments will be carried out to a
G/L account other than the standard general ledger account for the vendor called as
“Special G/L Account”
3. Clearing of vendor invoice and advance

The concept of authorizing the document entry can be achieved by the standard SAP
functionality creating and authorizing the payment request. Payment request will be
created by one person and authorized by another person to keep the control.
4. Vendor payments
By using the SAP standard functionality all the cheque payments can be managed. The
typical procedure under SAP with respect to cheque will be,
 Defining Cheque lots for each and every house bank
 Entering vendor invoice
 Entering the vendor payment by clearing the open item created by invoice
 Attach cheque to the payment document number generated
 Check the cheque register to see the cheque updating
Vendor payments can be manual or automatic. The general aspects related to vendor
payment are,
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 Terms of payment
 Method/Mode of payment
 Manual payment
 Automatic payment
Method/Mode of payment:
The payment methods used in SAP system are as follows,
 C= Cheque
 E= ECS (Electronic Clearing System)
 T= Bank Transfer
 A= Cash
 D= Demand Draft/Pay Order (needs to be created in SAP system)
Manual Payments:
Manual payments are those payments, where the user selects vendor and invoices to be
paid. This selection can be used for cheque printing or other methods of payment (like
instruction to bank). Usually this procedure is preferred where the numbers of
selection/payments are less
Automatic Payments:
Automatic payments are configured to make vendor payments based on terms of
payments. The due date wise/vendor invoice wise payment proposal will be generated
and this proposal can be edited to make the selective payments.
After the payment list has been finalized, the payment run will be executed and
accounting entry will be posted automatically. Payment advice and cheque will be printed
through system
1 Define Account Groups

Definition: Account group means list of vendors will be segregated into different account
groups. For ex: Domestic vendors and foreign vendors or South vendors, North Vendors,
East Vendors and West vendors etc. It controls fields in master record and number range
intervals.
Path: SPRO- SAP Reference IMG- Financial Accounting(New)- Accounts Receivable
and Accounts Payable- Vendor Accounts- Master Data- Preparations for Creating
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Vendor Master Data- Define Account Groups with Screen Layout (Vendors)
(Tcode:OBD3)
Execute
Account Group
Name Dom. Vendors
Save and enter
Note: Data in vendor master record controls how transaction data is posted and processed
for a vendor. The vendor master record also contains all the data you require to do
business with your vendors. Vendor Master Record will be segregated into three
segments
a. General data
b. Company code data
c. Purchasing data
a. General data
This is data that applies to every company code and every purchasing
organization in your company. The general area includes, for example, the
vendor’s name, address, language, and telephone number.
b. Company code data
This is data that is specific to an individual company code. Company code data
includes, for example, the reconciliation account number and payment terms.
c. Purchasing organization data
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This is data relevant to the purchasing organization of your company. For

example, requests for quotations, purchase orders, and invoice verifications are
stored in this section. You need the Materials Management (MM) application
component in order to enter this data and print purchase orders.
2 Create Number Ranges for Vendor

Accounts
Definition: For every vendor we need to allocate one unique number. These number
ranges are assigned account group. Vendor number ranges are client level. For ex: Client
800
Path: Same path (Tcode: XKN1)
Execute
Click on Change interval
Click on Insert interval (shift+F1)
No
From Number
To Number
Enter
Save and enter
3 Assign Number Ranges to Vendor

Account Groups
Path: same path (Tcode: OBAS)
Execute
Account group
Enter
Number range
Save and enter
Note: One number range can be assigned to more than one account group. Other wise for
every account group, we can assign one number range
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4 Define Tolerances (Vendors)

In this step, you specify the tolerances for vendors. These tolerances are used for dealing
with differences in payment and residual items which can occur during payment
settlement. Specify the tolerances under one or more tolerance groups. Allocate a
tolerance group to each vendor via the master record. For each tolerance group, specify
the following:
 Tolerances up to which differences in payment are posted automatically to
expense or revenue accounts when clearing open items
 The handling of the terms of payment for residual items, if they are to be posted
during clearing
Path: SPRO- SAP Reference IMG- Financial Accounting(New)- Accounts Receivable
and Accounts Payable- Business Transactions- Outgoing Payments- Manual Outgoing
Payments- Define Tolerances (Vendors) (Tcode:OBA3)
Execute
Company code
Save and enter
Note:
Grace Days due date, Number of days by which the payment deadlines may be exceeded
when manual payments are made. In the payment entry facilities, the grace days are
added to the payment deadlines. This means that the system will accept cash discount
deductions and net payments even after the original deadline. If the days in arrears are
displayed during open item processing, the system reduces them by the number of grace
days.
Cash Discount Terms Displayed, during payment settlement, the items are displayed with
the cash discount terms specified here.
Arrears Base Date, from arrears base date system will calculate terms of payments.
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Permitted payment difference for automatic write-off (function code AD), Payment
differences to our advantage are permitted up to the amount specified here. The local
currency is INR. In the field Revenue you have entered 30 INR and in the field Percent,
1. For incoming payments of up to 3000 INR, you accept an overpayment up to a
maximum of 1 percent. This means that depending on the amount of the incoming
payment, amounts from 0 to a maximum of 30 INR are tolerated. For incoming payments
over 3000 INR, you accept an overpayment up to a maximum of 30 INR.
Residual Items, residual means remaining amount (Payment difference). System will
create new line item for remaining amount and clear entire invoice
a. Payment term from invoice, Indicator that the terms of payment are to be transferred
from the original item for residual items. In this case, the amount qualifying for cash
discount is set in such a way that the relationship between the amount qualifying for cash
discount and the line item amount of the original item is also given in the residual item.
b. Fixed payment term, terms of payment key which is to be transferred to the line item
when posting residual items. You only need to specify terms of payment key here if the
terms are not to be transferred from the original document
5 Maintain Number ranges 19, 15, 17

for KR, KZ, KA document types
respectively (KR: Vendor Invoice,
KZ: Vendor payment, KA: Vendor
Document)
Global Settings (New) - Document- Document Number Ranges- Documents in Entry
View- Define Document Number Ranges for Entry View (Tcode: FBN1)
Execute
Company Code
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No 19
Year
Enter
No 15
Year
Enter
No 17
Year
Enter
Save and enter
1. Create Sundry Creditors A/C (Tcode: FS00)

G/L Account 190100
Company Code
Click on create
Short Text Sundry Creditors A/C
G/L Acct Long Text Sundry Creditors Account
Recon.account for Acct type K Vendors
Sort Key 012 (Vendor Number)
Go to Create/Bank/Interest tab
Save (Ctrl+S)
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Note:
Recon. Account for acct type: An entry in this field characterizes the G/L account as a
reconciliation account. The reconciliation account ensures the integration of a sub ledger
account into the general ledger.
Ex: G/L account 190100 is defined as a reconciliation account. In the vendor account
4711, the G/L account 190100 is determined as a reconciliation account. In this way, all
postings to vendor account 4711 are also posted automatically to the G/L account
190100. The G/L account itself is not designed for direct posting. In this way,
reconciliation between sub ledger and general ledger is always guaranteed.
6 Create Vendor Master Record

Definition: Business transactions are posted to accounts and managed using those
accounts. You must create a master record for each account that you require. The master
record controls how business transactions are recorded and processed by the system
Specifications you make in master records are used:
 As default values when you post items to the account. For example, the terms of
payment you specify in the master record are defaulted for document entry.
 For processing business transactions. For instance, bank details and the payment
methods (check or bank transfer, for example) are required for automatic
payments.
 For working with master records. You can prevent certain users from accessing an
account by setting up authorization groups.
Path: Accounting - Financial Accounting - Accounts Payable - Master Records - FK01 -
Create (Tcode: FK01)
Company Code
Account Group
Enter
Title Company
Name
Search Term
Street
House number
Postal code
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City
Country IN (India)
Enter, enter and enter
Recon.account 190100
Sort Key 012
Cash mgmnt group A1
Enter
Payt terms
Save
7 Create Service G/L

Master Record (Tcode:
FS00)
G/L Account 400100
Company Code
Click on create
Go to Type/Descripition Tab
Account Group EXPN Expense
Select P&L Statement acct
Short Text Service A/C
G/L Acct Long Text Service Account
Sort Key 001
Save
8 Define Terms of payments

Definition: In the step Maintain terms of payment, you can define rules with which the
system can determine the required terms of payment automatically. The rules are stored
under a four-character key. You assign the terms of payment specified to the vendors in
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the master record via the key. The key and the terms determined with it are proposed
when entering a document to the vendor account
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts Receivable
and Accounts Payable- Business Transactions- Incoming Invoices/Credit Memos-
Maintain Terms of Payment (Tcode: OBB8)
Execute
Payt Terms :
Own Explanation : Terms of payment for ______
Term Percentage No. of days
1 2 10
2 1 20
3 30
Day Limit:
Day of the month up until which the corresponding terms are valid.
Ex:
The following terms of payment require you to enter a day limit:
 Documents with an invoice date on or before the 15th of the month are payable on
the last day of the next month
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 Documents with an invoice date after the 15th of the month are payable on the
15th of the month after the next month.
Account type:
You can use the same key for the terms of payment for both customers and vendors who
have the same payment terms. SAP recommends, however, that you use different terms
of payment keys for customers and vendors and limit the permitted account type
correspondingly within the terms of payment. This, for example, then has an advantage if
the sales department of your company changes a payment term for a customer. You can
then adapt the accompanying customer terms of payment key without vendors being
affected by the same terms of payment.
Baseline date calculation section:

Baseline date will be useful for calculation of terms of payment.
Fixed Date: Calendar day with which the system overwrites the day of the
baseline date for payment of the line item.
Additional months: Number of months which the system adds to the calendar
month of the baseline date for payment.
Pmnt block/Pmnt method default section:

Block Key: Default value for the payment blocking key. By using block key, we
can stop payment against that invoice
Payment Method: The payment method determines how payments are to be made,
e.g. by check, bank transfer or bill of exchange.
1) Define Terms of Payment for Installment Payments

Definition: In this step you can determine whether an invoice amount is to be divided into
partial amounts with different due dates. For these terms of holdback/retainage payment,
you must determine the amount of the holdback/retainage in percent and the terms of
payment for each holdback/retainage payment. If you then post an invoice with terms of
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holdback/retainage payment, the system generates the corresponding number of line

items due to your specifications for the holdback/retainage.
a. Define Terms of Payment for each Installment Payments
and Accounts Payable- Business Transactions- Incoming Invoices/Credit Memos-
Maintain Terms of Payment (Tcode: OBB8)
Execute
Payt Terms
Own Explanation
Term Percentage No. of days

1 2 10
2 1 20
3 30
Payt Terms
Own Explanation
Select Installment Payment
b. Define Terms of Payment for Installment Payments

Path: Same path (Tcode: OBB9)
Execute
Terms of paymen Inst Percent Pmnt term
1 50.000
2 25.000
3 25.000
Note: Terms of payment key will be assigned in vendor/customer master records or
transactions
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Vendor Invoice
Path: Accounting - Financial Accounting - Accounts Payable - Document Entry - FB60 –
Invoice (Tcode: FB60)
Company code
Enter
Vendor
Invoice Date
Amount

400100 S Debit *
Post (Ctrl+S)
Go to Menu bar
We can see document
Notes to Vendor invoice:
Payment Tab:
Base line date: During document entry for open item accounts, the date may be defaulted.
For this, terms of payment key must have been specified in the customer's/vendor's
master record for which a default value is requested in the document. The proposed date
can be overwritten.
If the cash discount rates (and days) have not been entered, the baseline date for payment
is the same as the due date.
Discount: This is absolute cash discount agreed against this invoice
Discount Base: Part of the invoiced amount for which cash discount is granted. For Ex:
Invoice amount – 35000 and Discount base amount – 30000. System will calculate terms
payments on discount base amount (30000).
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Fixed: the first or second cash discount term can be taken advantage of irrespective of
whether the corresponding period has elapsed or not. We can prevent lost cash discounts
with this indicator
Payment Method: Payment method with which this item is to be paid. Ex: Cheque
Method, Bank Transfer etc.
If you enter a payment method, then only this payment method can be used in automatic
payment transactions. If you do not enter a payment method, then one of the payment
methods which were allowed in the master record is selected in the payment program
according to specified rules.
For document entry or document changes, you only enter a payment method if you want
to switch off the automatic payment method selection of the payment program.
Payment Block: By using payment block, we can stop payment against this invoice
Invoice Reference: For line items which are related to another line item, this field
contains the number of the partner document. In the standard system the field is used for:
Credit memos which refer to a particular invoice item
Subsequent invoices for an invoice item
Partial payments for an invoice item
Partial clearings of down payments.
Vendor Line item report

Path: Accounting - Financial Accounting - Accounts Payable - Account - FBL1N -
Vendor Account
Company Code
Select open items
Execute (F8)
We can see list of pending invoices
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Outgoing payments
By using the standard SAP functionality all the cheque/cash payments can be managed.
Vendor payments can be manual or automatic
1. Standard Payment
Definition: Standard payment means full payment against invoice net (after deducting
cash discounts)
Path: Accounting - Financial Accounting - Accounts Payable - Document Entry -
Outgoing Payment - F-53 - Post (Tcode: F-53)
Document Date Type KZ Company Code
Bank Data Section
Amount
Open Item Selection Section
Account
Enter
Note: Select Invoice against which invoice you are making payment, Deselect Remaining
invoices. Select means Blue color and Deselect means block color.
Note: Amount entered and Assigned amount should be same
9 Vendor Line item report

Vendor Account
Company Code
Select Cleared Items
Execute (F8)
We can see list of cleared invoices
10 Partial payments
Partial payment means part of the invoice payment. For ex:
Invoice amount – 50000
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Outgoing payment – 10000

Bank Data Section
Amount 10000
Account
Enter
Go to partial payment Tab
Note: Select Invoice against which invoice you are making partial payment, Deselect
Remaining invoices. Select means Blue color and Deselect means block color.
Against invoice, enter payment amount (How much amount you are making partial
payment)
Go to Menu bar
Post (Ctrl+S)
11 Vendor Line item report

Vendor Account
Company Code
Select Open Items
Execute (F8)
Note: System will show you invoice amount and partial payment as open items until
entire invoice cleared
12 Residual items
Definition: In Residual items, system will re determine terms of payments.
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Bank Data Section
Amount 10000
Account
Enter
Go to Residual Items Tab
Note: Select Invoice against which invoice you are making residual payment, Deselect
Remaining invoices. Select means Blue color and Deselect means block color.
Against invoice, enter remaining payment amount (put after amount -). Go to Go to Menu
bar
Double click on Blue Color line item
Days/percent
Text Being Residual items
One time go back
Post (Ctrl+S)
Automation of Bank Charges and Cash discount
1. Creation of Bank Charges G/L Account (Tcode: FS00)
G/L Account 400020
Company Code
Click on create
Short Text Bank Charges A/C
G/L Acct Long Text Bank Charges Account
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Sort Key 001

Go to Create/bank/Interest Tab
Save
2. Creation of Cash Discount Taken G/L Account (Tcode:
FS00)
G/L Account 300010
Company Code
Click on create
Short Text Cash Dis.Taken A/C
G/L Acct Long Text Cash Discount Taken Account
Sort Key 001
Save
3. Creation Accounts for Cash Discount Taken

and Accounts Payable- Business Transactions- Outgoing Payments- Outgoing Payments
Global Settings- Define Accounts for Cash Discount Taken
(Tcode: OBXU)
Execute
Chart of Accounts
Enter
Save
Account 300010
Save and enter
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Note: Through SKE transaction system will post cash discounts automatically by account
300010
4. Define Accounts for Bank Charges (Vendors)

Path: Same path (Tcode: OBXK)
Execute
Double click on Bank Charges BSP
Chart of Accounts
Enter
Account 400020
Save and enter
Note: Through BSP transaction system will post bank charges automatically by account
400020
5. Outgoing payment to vendor with bank charges and cash discount (Tcode: F-
53)
Scenario:
Invoice amount 35000
Cash discount 500
Bank Charges 100
Entry: Dr Cr
Vendor A/C 35000
Bank Charges 100
To Bank A/C 34600
To Discount 500

Bank Data Section
Amount
Bank Charges
Account
Enter
Go to Standard Tab
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Cash discount
Against invoice, enter Cash discount amount.
Goto Menu bar
Post (Ctrl+S)
Down payments (Advance To vendors)
1. Create Advance to Vendor G/L Account (Tcode: FS00)

G/L Account 290200
Company Cod
Click on create
Short Text Adv. to Vendors A/C
G/L Acct Long Text Advance to Vendors Account
Recon. account for acct type K Vendors
Select Line item Display
Sort Key 012
Save
2. Assign Adv. to Vendor Account

and Accounts Payable- Business Transactions- Down Payment Made- Define Alternative
Reconciliation Account for Down Payments (Tcode: OBYR)
Execute
Double click on
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K A Dwn pmt Down payment on current assets

Chart of Accounts
Enter
Recon.acct 190100 (Dom. Vendors A/C)
Special G/L Account 290200 (Advance to Vendors A/C)
Save and enter
Note: Reconciliation account is assigned in vendor master records. Against reconciliation
account, we assign advance to vendors account. When ever we give advance to vendors,
system automatically posted to advance to vendors account
Scenario 1
Advance to Vendor : Rs 100000
Service : Rs 100000
1. Advance to Vendor
Path: Accounting - Financial Accounting - Accounts Payable - Document Entry - Down
Payment - F-48 - Down Payment (Tcode:F-48)
Vendor Section
Account
Special G/L Ind. A
Bank Section
Amount 100000
Enter
Amount
Go to Menu bar
Document - simulate
Save
2. Vendor line item Report (Tcode: FBL1N)

Vendor
Company code
Select open items
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Select Special G/L Transactions

Execute (F8)
3. Service Invoice (Tcode: FB60)

Company code
Enter
Vendor
Invoice date
Amount 100000

400100 S Debit 100000
Post (Ctrl+S)

Vendor
Company code
Select open items
Select normal items
Select Special G/L transactions
Execute
5. Clearing advance against Invoice

Path: Accounting- Financial Accounting- Accounts Payable- Account- F-44 – Clear
(Tcode: F-44)
Account
Company code
Special G/L ind. A
Select Normal OI
Select invoice and advance (Against which invoice you want to settle which advance)
Observe Amount entered and Assigned should be Zero
Go to Menu bar
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Post (Ctrl+S)

Vendor
Company code
Select normal items
Execute
Go to Menu bar
Environment – Clearing transactions
We can see invoices settled against advances
Scenario 2
Advance to Vendor : Rs 100000
Invoice : Rs 50000
1. Advance to vendor (Tcode:F-48): Rs100000
Payment - F-48 - Down Payment (Tcode: F-48)
Vendor Section
Account
Special G/L Ind. A
Bank Section
Amount 100000
Enter
Amount *
Go to Menu bar
Document - simulate
Save
2. Invoice (Tcode: FB60): Rs50000
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Company code
Enter
Vendor
Invoice date
Amount 50000
400100 S Debit 50000
Post (Ctrl+S)
See Report (Tcode: FBL1N)
3. Transfer of Advance
Payment - F-54 - Clearing (Tcode: F-54)
Vendor Section
Account
Keep blank invoice Field
Text Being Transfer posting
Enter
Transfer posting 50000
Save
4. Settle transfer Advance against Invoice (Tcode: F-44)

Path: Accounting- Financial Accounting- Accounts Payable- Account- F-44 – Clear
(Tcode: F-44)
Account
Company code
Select Normal OI
Select invoice and Transfer advance (Against which invoice you want to settle which
advance)
Observe Amount entered and Assigned should be Zero
Go to Menu bar
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Post (Ctrl+S)
Scenario 3
Advance To Vendor : Rs 100000
Invoice : Rs 150000
1. Advance to Vendor (Tcode: F-48): Rs100000

Account
Special G/L Ind. A
Amount 100000
Enter
Amount *
Go to Menu bar
Document - simulate
Save
2. Invoice (Tcode: FB60): Rs50000

Company code
Enter
Vendor
Invoice date
Amount 150000
400100 S Debit 150000
Post (Ctrl+S)
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3. Transfer posting (Tcode: F-54): Rs100000

Payment - F-54 - Clearing (Tcode: F-54)
Enter header data (Type KA)
Account
Keep blank invoice Field
Text Being Transfer posting
Enter
Save
4. Outgoing payment (Tcode: F-53): Rs 50000

Document Date 12.10.2011 Type KZ Company Code 4301
Posting Date 12.10.2011 Period 7 Currency/Rate INR
Bank Data Section
Amount 50000
Account
Enter
Note: Select Invoice and transferred advance against which invoice you want to settle
transfer advance and outgoing payment (50000), Deselect Remaining invoices. Select
means Blue color and Deselect means block color.
Go to menu bar
Post (Ctrl+S)
Entries for Accounts Payables Advance Scenarios

Scenario 1
Advance 100000
Invoice 100000
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1 F-48 Advance to Vendor Dr Cr

Advance to Vendor A/C 100000
To Bank A/C 100000
2 FB60 Invoice
Service A/C 100000
To Vendor A/C 100000
3 F-44 Settlement of Advance against invoice
Vendor A/C 100000
To Advance to Vendor A/C 100000
Scenario 2
Advance 100000
Invoice 50000
1 F-48 Advance to Vendor

To Bank A/C 100000
2 FB60 Invoice
Service A/C 50000
To Vendor A/C 50000
3 F-54 Transfer posting of Advance
Vendor A/C 50000
Clearing of transfer advance against
4 F-44 invoice
No Entry
Scenario 3
Advance 100000
Invoice 150000
1 F-48 Advance to Vendor

To Bank A/C 100000
2 FB60 Invoice
Service A/C 150000
To Vendor A/C 150000
3 F-54 Transfer posting of Advance
Vendor A/C 100000
4 F-53 Outgoing payment
Vendor A/C 50000
To Bank A/C 50000
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Credit memo to vendor:

Definition: Credit memo is issued to vendor for service defects or material return
(Purchase returns)
Path: Accounting- Financial Accounting- Accounts Payable- Document Entry- FB65 -
Credit Memo (Tcode: FB65)
Vendor
Document date
Amount
Go to Payment Tab
Invoice Reference
400100 H Credit *
Post (Ctrl+S)
Entry:
Vendor A/C
To Service A/C
Down Payment Request

Definition: The Concept of authorizing the document entry can be achieved by the
standard SAP functionality for creating and authorizing the payment request. Payment
request will be created by one person and authorized by another person to keep control
1. Assign G/L Account for down payment request
and Accounts Payable- Business Transactions- Down Payment Made- Define Alternative
Reconciliation Account for Down Payments
(Tcode: OBYR)
Execute
Double click on K F Pmt req Down payment request
Chart of account :
Enter
Recon. Acct Special G/L account
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190100 (Dom. Vendors A/C) 290200 (Advance to Vendors A/C)

2. Enter Down Payment request

Path: Accounting- Financial Accounting- Accounts Payable- Document Entry- Down
Payment- F-47 – Request (Tcode: F-47)
Document Date Type KA Company Code
Account 4000000 (Vendor Number)

Trg.sp.G/L Ind. A
Enter
Amount 100000
Due on
Post (Ctrl+S)
Down Payment Request number:
3. Vendor Line Item Report (Tcode: FBL1N)

Vendor
Company code
Select Open items
Select Noted Items
Execute (F8)
4. Payment against down payment request

Vendor Section
Account
Special G/L Ind A
Bank Section
Amount 100000
Click on Request (F6)
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Select Request number against which request you are sending advance to vendor
Click on Create Down Payment (Shift+F1)
Post (Ctrl+S)

Vendor
Company code
Select Noted Items
Execute (F8)
Screen Layout per company code (Vendors)

Account Group controls fields in the vendor master record. Account groups are client
level. Any company code can use these account groups with in the client. But we can
maintain fields at company code level also
1. Define Screen layout per company code (Vendors)

Vendor Master Data- Define Screen Layout per Company Code (Vendors) (Tcode:
OB24)
Execute
Company code
Enter
Select Company code
Click on Edit Field Status (F2)
Double click on Account management
Select Head Office Field as Suppress
Save (Ctrl+S)
2. Create Vendor Master Record (Tcode: FK01)
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System will not show you head office field while creating vendor master record in your
company code
Screen Layout per Activity (Vendors)

Activities in vendor master records are creation, change and display vendor master
records. For each activity, we can maintain field controls (Suppress, Required, Optional
and Display). For ex: system should not allow changing some critical fields even we are
in change mode
1. Define Screen Layout per Activity (Vendors)
Vendor Master Data- Define Screen Layout per Activity (Vendors) (Tcode: OB23)
Execute
Double click on Change Vendor (Accounting)
Double click on Company code data
Select Reconciliation account as display mode
2. Change Vendor Master Record (Tcode: FK02)

Vendor
Company Code
Company code data section
Select Accounting Info
Enter
Observe reconciliation account as display mode. We can not edit reconciliation account
Head Office Vs Branch Office

Scenario: Wipro is our vendor. Wipro Company has some branches. Branches and head
office will provide service to us but we make payment to head office
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Wipro Head Office

Bangalore
Wipro Branch Office Wipro Branch Office Wipro Branch Office

Hyderabad Chennai Delhi
1. Create two vendor master records

Company Code
Account Group
Enter
Title Company
Name
Search Term
Street
House number
Postal code
City
Country IN
Sort Key 012
Cash mgmnt group A1
Enter
Payt terms 0001 (Payable Immediately Due Net)
Save (Ctrl+S)
Vendor Head office number :
Company Code
Account Group
Enter
Title Company
Name
Search Term
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Street
House number
Postal code
City
Country IN
Head Office 4300005
Sort Key 012
Cash mgmnt group A1
Enter
Save (Ctrl+S)
Vendor Branch Office number :
2. Postings in Branch (Tcode: FB60)

Company code
Enter
Vendor
Invoice Date
Amount
Enter
400100 S Debit *
Post (Ctrl+S)

Vendor
Company code
Select Open items
Execute (F8)
Enter
4. Outgoing payment for Head Office (Tcode: F-53)

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Bank Data Section

Amount 25000
Account
Enter
Go to Menu bar
Post (Ctrl+S)
Inter Company Transactions

1. Vendor invoice posting
Company code
Enter
Vendor
Invoice Date
Amount
G/L Acct D/C Amount in doc. Curr Company Code

400100 S Debit *
Post (Ctrl+S)
Go to Menu bar
We can see document
2. Outgoing payment
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Bank Data Section
Amount
Account
Enter

G/L Account
Company code
Select open items
Execute (F8)
4. Intercompany clearing
a. Incoming payment
Path: Accounting- Financial Accounting- General Ledger- Posting- F-06 - Incoming
Payments (Tcode: F-06)
Document Date Type SA Company Code

Amount
Account
Enter
Go to Menu bar
Save
b. Report (Tcode: FBL3N)
G/L Account
Company code
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Execute (F8)
c. Outgoing payment
Document Date Type SA Company Code

Amount
Account
Enter
Go to Menu bar
Save
Accounts Receivables:
AR deals with customers, terms and conditions with customers, customer invoice,
customer incoming payments, advance from customers and item interest calculation and
dunning (remainder letters)
Features of Accounts receivable component:
1. Serves as a complete record of business transactions with customers
2. Accounting of receipts manually and also automatic clearing of payments.
3. When drawing up financial statements, the items in foreign currency are revalued
4. The credit memo can be entered in any of the currency, for which the exchange
rates are available. The credit memo details are stored in the entered currency but
the ledgers are posted in the local currency (Company code currency)
5. Simultaneous posting to appropriate general ledger accounts, Dunning
(Remainder letters), balance confirmation etc.
6. Range of tools that you can use to monitor open items, such as account analysis,
due date list etc
Business Process
1. Customer down payments (Advance from customers)
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SAP gives a facility to work with customer down payments. If the customer pays by
check/Demand draft as a down payment, it can be captured in a separate G/L Account
(Advance from customer account) and can be adjusted against invoice.
2. Customer incoming payment
a. This function allows the AR user to record receipts from customers in the
system and adjusts them against invoices and debit memos.
b. In the case of receipts received against invoices, the user can enter the
invoices to be adjusted. User can record the receipt as an “on account”
receipt, and link to one or more invoices later invoices, advances and debit
memos can be settled to the extent of the outstanding amount
c. Invoices, advances and debit memos can be partially settled.
d. In case the receipt currency is not the local currency, the same is converted
into local currency (Company code currency) for accounting purposes.
The rates as on the value date will be used for conversion. However, the
receipt details are stored in the entered currency; the balances are stored
both in the document currency and also in the ledger currency
e. Receipt number is generated and the user can print the receipt. This can be
sent across to the customer, as an acknowledgement.
3. Clearing of invoices and advances
a. Account clearing process is used to clear one or more open line items with
in one account. On clearing open items, system will create a clearing
document. Ex: customer can be cleared against vendor invoice posting).
Clearing process may be manual or automatic.
4. Accounting of Debit/Credit Memo’s
a. The debit memos are processed for bank charges, sharing of cost for
common expenditures.
b. The credit memos are processed for the price differences, wrong billing,
excess billing in terms of prices, whenever there is a retrospective pricing
effects
5. Sales Realization – Provisions
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a. Each regional office is doing this provisional entry activity at the end of
the month
b. They calculate the provisional value of the Selling and distribution
expenses, primary freight and secondary freight.
6. Correspondence with customer
The Account statement and balance confirmations can be sent to customers periodically.
Reminder notice can be sent to all customers whose payments are overdue. This is
possible by using the SAP standard functionality.
1. Define Account Groups with Screen Layout (Customers)

Definition: Account group means list of customers will be segregated into
different account groups. For ex: Domestic customers and foreign
customers or South customers, North customers, East Customers and
West Customers etc. It controls fields in master record and number range
intervals
Path: SPRO- Financial Accounting- Accounts Receivable and Accounts
Payable- Customer Accounts- Master Data- Preparations for Creating
Customer Master Data- Define Account Groups with Screen Layout
(Customers) (Tcode: OBD2)
Execute
Account Group
Name Domestic Customers
Save and enter
2. Create Number Ranges for Customer Accounts

Path: Same path (Tcode: XDN1)
Execute
No
From number
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To Number
Enter
Save and enter
3. Assign Number Ranges to Customer Account Groups

Path: Same path (Tcode: OBAR)
Execute
Account Group
Enter
Number range
Save and enter
4. Define Tolerances (Customers)

and Accounts Payable- Business Transactions- Incoming Payments- Manual Incoming
Payments- Define Tolerances (Customers)
Company code
5. Create sundry debtors (Tcode:FS00)

G/L Account 290300
Company Code
Click on create
Select balance sheet Account
Short Text Sundry Debtors A/C
G/L Acct Long Text Sundry Debtors A/C
Recon.Acct for Account type D Customers
Sort Key 031
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Field status Group G067
Save
6. Creation of customer master Record

Path: Accounting - Financial Accounting - Accounts Receivable – Master
Records - FD01 - Create (Tcode: FD01)
Account Group
Company Code
Enter
Title
Name
Street
House Number
Postal code
City
Country IN (India)
Click on Company Code Data (Ctrl+F2)
Recon.Account 290300 (Sundry Debtors A/C)
Sort key 031
Save
7. Creation of Service Revenue A/C (Tcode:FS00)

G/L Account 300100
Company Code
Click on Create
Short Text Ser.Revenue A/C
G/L Acct Long Text Service Revenue Account
Go to control data Tab
Sort Key 001
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Save
8. Maintain number ranges 18, 14 and 16 for DR, DZ and DA Respectively

(Tcode: FBN1)
Company Code
No 18
Year
Enter
No 14
Year
Enter
No 16
Year
Enter
Save and enter
9. Post Customer Invoice

Path: Accounting - Financial Accounting - Accounts Receivable – Document
Entry- FB70 – Invoice (Tcode: FB70)
Company code
Enter
Customer
Invoice Date
Posting Date
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G/L Acct
D/C
Amount doc. Curr
Post (Ctrl+S)
10. Customer Line items

Path: Accounting - Financial Accounting - Accounts Receivable - Account - FBL5N -
Customer Account
Company Code
Select open items
Execute (F8)
11. Customer Credit Memo

Path: Accounting- Financial Accounting- Accounts Receivable- Document
Entry- FB75 - Credit Memo (Tcode: FB75)
Company code
Enter
Customer
Invoice Date
Posting Date
G/L Acct
D/C
Amount doc. Curr
Post (Ctrl+S)
Incoming payments
1. Standard incoming payment
Path: Accounting - Financial Accounting - Accounts Receivable –
Document Entry - F-28 - Incoming Payments (Tcode: F-28)
Document Date Type DZ Company code
Posting Date Period Currency
Bank Data Section
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Amount 25000
Account
Enter
Select Invoice against which invoice you are receiving payment from
Customer. Amount entered and assigned amount should be same
Note: Selection means blue color and deselection means block color.
Double click on block color is selection and double click on blue color is
deselection
Post (Ctrl+S)
2. Customer Line items

Path: Accounting - Financial Accounting - Accounts Receivable - Account –
FBL5N - Display/Change Line Items (Tcode: FBL5N)
Customer Account
Company Code
Execute (F8)
3. Partial payments (Tcode:F-28)

Bank Data Section
Amount 25000
Account
Enter
Go to partial pmt Tab
Payment amount 5000
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deselection
Post (Ctrl+S)
4. Residual items (Tcode:F-28)

Definition: In Residual items, system will re determine terms of
payments. Customer unable to make payments, we can discuss with
customer and give new terms of payments for remaining payment
Bank Data Section
Amount
Account
Enter
Go to Residual Items Tab
Residual Payment
deselection
Post (Ctrl+S)
Automation of Bank Charges and Cash discount given

1 Creation of Cash Discount Given A/C (Tcode: FS00)
G/L Account 400030
Company Code
Click on Create
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Short Text Cash Dis. Given A/C
G/L Acct Long Text Cash Discount Given Account
Select line items tab
Sort Key 001
Save
2 Creation of Bank Charges G/L Account (Tcode: FS00)
G/L Account 400020
Company Code
Click on create
Short Text Bank Charges A/C
G/L Acct Long Text Bank Charges Account
Sort Key 001
Save
3 Assign Cash Discount Given A/C

Path: SPRO- Financial Accounting- Accounts Receivable and Accounts Payable-
Business Transactions- Incoming Payments- Incoming Payments Global Settings- Define
Accounts for Cash Discount Granted (Tcode: OBXI)
Execute
Chart of Accounts
Enter
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Save
Account 400030 (Cash Dis. Given A/C)
Save and enter
4 Define Accounts for Bank Charges (Customers)

Path: Same path (Tcode: OBXK)
Execute
Double click on Bank Charges BSP
Chart of Accounts
Enter
Account 400020 (Bank Charges A/C)
Save and enter
5 Incoming payment with bank Charges and Cash discount given (Tcode:F-28)
Bank Data Section
Amount 25000
Account
Enter
Cash Discount
deselection
Post (Ctrl+S)
Advance from customers

1 Create Advance from Customers G/L Master Record (Tcode: FS00)
G/L Account 190200
Company Code
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Click on Create
Short Text Adv.From Customer A/C
G/L Acct Long Text Advance from Customers A/C
Recon.Account for Acct type D Customers
Sort Key 031
Go to Create/Bank/interest Tab
Save
2 Assign Advance from Customers Account

Path: SPRO- Financial Accounting- Accounts Receivable and Accounts Payable-
Business Transactions- Down Payment Received- Define Reconciliation Accounts for
Customer Down Payments (Tcode: OBXR)
Execute
Double click on
D A Dwn pmt Down payment
Chart of Accounts
Enter
Recon.acct 290300 (Sundry Debtors A/C)
Special G/L account 190200 (Adv. from customers A/C)
Save and enter
Scenario 1
Advance From Customer : 100000
Customer Invoice : 100000
1 Advance from Customer
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Path: Accounting - Financial Accounting - Accounts Receivable - Document Entry

-Down Payment - F-29 - Down Payment (Tcode: F-29)
Customer
Account
Special G/L Ind A
Amount 100000
Enter
Amount *
Save
2 Customer Line items

Customer Account
Company Code
Select open items
Execute (F8)
3 Create Customer Invoice (Tcode:F-22)

Company code
Enter
Customer
Invoice Date
Posting Date
G/L Acct
D/C
Amount doc. Curr
Post (Ctrl+S)
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4 Clear Down payment against Invoice

Path: Accounting - Financial Accounting - Accounts Receivable – Account- F-32 – Clear
(Tcode: F-32)
Account
Company code
Special G/L ind A
Select Invoice and advance amount (Against which invoice you want settle which
advance). Observe amount entered and assigned amount should be zero.
Go to Menu bar
Save (Ctrl+S)
Scenario 2
Advance from customer : 100000
1 Create Advance from customer (Tcode: F-29)

2 Customer Invoice (Tcode: FB70)
3 Transfer posting
Path: Accounting - Financial Accounting - Accounts Receivable - Document Entry -
Down Payment - F-39 - Clearing (Tcode: F-39)
Document Date Type DA Company code
Account
Keep blank Invoice ref. field
Enter
Go to Menu bar
Document - simulate
Save
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4 Clear Invoice against Down payment

Path: Accounting - Financial Accounting - Accounts Receivable – Account- F-32 – Clear
(Tcode: F-32)
Account
Company code
Select Invoice and transfer advance amount (Against which invoice you want settle
which transfer advance). Observe amount entered and assigned amount should be zero.
Go to Menu bar
Save (Ctrl+S)
Scenario 3
Advance from customer : 100000
1 Advance from customer (Tcode: F-29): Rs100000
2 Customer Invoice (Tcode: FB70): Rs150000
3 Transfer posting (Tcode: F-39): Rs100000
4 Reciept of Remaining amount (Tcode: F-28): Rs50000
Item Interest Calculation

Definition: System will calculate interest on Customer overdue invoices. System will
calculate interest each invoice wise, which is called item interest calculation.
Ex:
Item Interest Calculation
Customer 3600000 (Matrix Ltd)
Terms of payment 0001 Immediately due net
Interest on late payment 15%
Late Interest
Invoice Date Amount Aug Sept Oct days Interest rounding
01.08.2011 35000 30 30 12 72 1035.61644 1035.62
15.08.2011 45000 16 30 12 58 1072.60274 1072.6
05.09.2011 10000 25 12 37 152.054795 152.05
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25.09.2011 5000 5 12 17 34.9315068 34.93

02.10.2011 60000 10 10 246.575342 246.58
12.10.2011 155000 2541.78
Interest on late
payment 2541.78
12.10.2011 Balance 157541.78
1. Define Interest Calculation Types

Path: SPRO - SAP Reference IMG- Financial Accounting- Accounts Receivable and
Accounts Payable- Business Transactions- Interest Calculation- Interest Calculation
Global Settings- Define Interest Calculation Types (Tcode:OB46)
Execute
Int ID
Name Item interest
Int calc.type P (Item Interest Calculation)
Save and enter
2. Prepare Item Interest Calculation

Path: Path: SPRO - SAP Reference IMG- Financial Accounting- Accounts Receivable
and Accounts Payable- Business Transactions- Interest Calculation- Interest Calculation
Global Settings- Prepare Item Interest Calculation
Execute
Interest Ind.
Select No Cleared Items
Ref.Date 2 (Document date)
Calendar type G
Select only calculate interest on debit items
Select post interest
Save and enter
3. Define Reference Interest Rates

Definition: Reference interest rate nothing but interest rate
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Path: SPRO- SAP Reference IMG- Financial Accounting- Accounts Receivable and
Accounts Payable- Business Transactions- Interest Calculation- Interest Calculation-
Define Reference Interest Rates (Tcode: OBAC)
Execute
Ref.int.rate
Long text
Description
Date from
Currency INR
Save and enter
4. Define Time-Based Terms

Path: same path (Tcode: OB81)
Execute
Click on New entries (F5)
Int.Calc.Indicator
Currency Key INR
Eff.From
Sequential number 1
Term Debit interest: arrears interest calc.
Ref. interest rate
Save and enter
5. Enter Interest Values

Path: Same path (Tcode: OB83)
Execute
Reference Valid from Int.Rate
Save and enter
6. Create Interest Income G/L Master Record (Tcode: FS00)

G/L Account 300020
Company Code
Click on Create
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Select P&L Statement acct
Short text Interest Income A/C
G/L Acct Long Text Interest Income A/C
Sort Key 001
Save
7. Assign Interest income and masking

Path: SPRO- SAP Reference IMG- Financial Accounting- Accounts Receivable and
Accounts Payable- Business Transactions- Interest Calculation- Interest Posting- A/R:
Calculation of Interest on Arrears (Tcode:OBV1)
Execute
Click on Accounts (F7)
Chart of accounts
Enter
Acct symbol Currency G/L Acct
0003 INR 300020
1000 INR ++++++++ (Masking)
Save and enter
8. Assign Interest Calculation Indicator in customer master record (Tcode:

FD02)
Customer
Company Code
Enter
Click on Company Code data (Ctrl+F2)
Interest Indic.
Save
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9. Post customer invoice with one month back date (Tcode: F-22)
10. Calculate item interest

Path: Accounting - Financial Accounting - Accounts Receivable - Periodic Processing -
Interest Calculation - Item Interest Calculation - FINT - Item Interest Calculation
(Tcode: FINT)
Customer Account From To
Company code
Interest Indicator
Select Test Run
Execute (F8)
Observe whether interest calculated properly or not
One time go back
Deselect Text run
Execute (F8)
Enter
11. Customer line item report

Customer Account
Company Code
Select open items
Execute (F8)
Observe customer is updated with interest or not
12. Display document

Path: Accounting- Financial Accounting- Accounts Receivable- Document- FB03 –
Display (Tcode: FB03)
Document number
Company code
Fiscal year
Enter
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Screen Layout Per Company code (Customers)

Account Group controls fields in the vendor master record. Account groups are client
level. Any company code can use these account groups with in the client. But we can
maintain fields at company code level also
1. Define Screen Layout Per Company code (Customers)
and Accounts Payable- Customer Accounts- Master Data- Preparations for Creating
Customer Master Data- Define Screen Layout per Company Code (Customers) (Tcode:
OB21)
Execute
Company code
Enter
Select company code
Click on Edit Field Status (F2)
Select Head office field suppress
2. Create Customer Master Record (Tcode: FD01)

System will not show you head office field while creating vendor master record in your
company code
Screen Layout per Activity (Customers)

Activities in customer master records are creation, change and display customer master
records. For each activity, we can maintain field controls (Suppress, Required, Optional
and Display). For ex: system should not allow changing some critical fields even we are
in change mode
1. Define Screen Layout per Activity (Customers)
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and Accounts Payable- Customer Accounts- Master Data- Preparations for Creating
Customer Master Data- Define Screen Layout per Activity (Customers) (Tcode: OB20)
Execute
Double click on Change Customer (Accounting)
Double click on Company code data
Double click on Account Management
Select Reconciliation account as display mode
2. Change customer master record (Tcode: FD02)

Customer
Company code
Enter
Click on Company code data (Ctrl+F2)
Go to Account management Tab
Observe reconciliation account field as display mode
Head Office Vs Branch Office

Scenario: Wipro is our vendor. Wipro Company has some branches. Branches and head
office will provide service to us but we make payment to head office
Wipro Head Office

Bangalore
Wipro Branch Office Wipro Branch Office Wipro Branch Office

Hyderabad Chennai Delhi
1. Create two customer master records

Path: Accounting - Financial Accounting - Accounts Receivable – Master
Records - FD01 - Create (Tcode: FD01)
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Account Group
Company Code
Enter
Title
Name
Street
House Number
Postal code
City
Country IN (India)
Sort key 031
Save
Head office number:
Account Group
Company Code
Enter
Title
Name
Street
House Number
Postal code
City
Country IN (India)
Head Office
Sort key 031
Save
Branch Office number:
2. Postings in Branch
Company code
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Enter
Customer
Invoice Date
Posting Date
G/L Acct
D/C
Amount doc. Curr
Post (Ctrl+S)
3. Head office/Branch Report

Customer Account
Company Code
Select open items
Execute (F8)
4. Incoming Payment
Path: Accounting - Financial Accounting - Accounts Receivable –
Document Entry - F-28 - Incoming Payments (Tcode: F-28)
Bank Data Section
Amount 25000
Account
Enter
deselection
Post (Ctrl+S)
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Dunning procedure
Definition: If the business partners may fail behind on payments you can send them a
payment reminder or a dunning notice to remind them of their outstanding debts
1. Define Dunning procedure
Definition: The Dunning procedure controls how dunning carried out by the system. We
can define as many dunning procedures as we like.
and Accounts Payable- Business Transactions- Dunning- Dunning Procedure- Define
Dunning Procedures (Tcode: FBMP)
Execute
Click on New procedure (F9)
Dunn.Procedure
Name
Dunning interval in days
No. of dunning levels
Select Standard transaction dunning
Ref. Dunning procedure for Texts
Click on Dunning levels (F5)
1 2 3 4 5
Calculate interest - - - - -
Always dun - - - - -
Print all items - - - - -
Click on Charges (F6)
Currency INR
Enter
Dunn.Level Dunn.charges
1 10
2 20
3 30
4 40
5 50
Click on minimum amounts (F7)
Currency INR
Enter
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Dun Minimum amounts

1 10000
2 20000
3 30000
4 40000
5 50000
Click on Dunning Texts (F8)
Company code
Select Customer
Enter
Click on New Company code (F9)
Company code
Enter
Select Dunning by dunning area
Select Separate notice per dunning level
Save and enter
Click on Dunning Texts
Company code
Select Customer
Enter
Dun Form
1 F150_BE_DUNN_01
2 F150_BE_DUNN_01
3 F150_BE_DUNN_01
4 F150_BE_DUNN_01
5 F150_BE_DUNN_01
One time go back
Save and enter
20.2. Assign dunning to customer master (Tcode: FD02/ XD02)

Customer
Company code
Enter
Click on company code data (Ctrl+F2)
Go to Correspondence Tab
Dunn.Procedure
Save
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20.3. Run the Dunning procedure

Path: Accounting- Financial Accounting- Accounts Receivable- Periodic Processing-
F150 – Dunning (Tcode: F150)
Run Date
Identification
Go to Parameter Tab
Dunning date
Docmnts posted up to
Company code
Customers From To
Save
Go to Status Tab
Status is Parameters were maintained
Click on Schedule (F7)
Select Start Immediately
Click on Schedule (F5)
Keep enter until status is Dun. Selection is complete
Click on dunning list (Shift+F6)
Enter
One time go back
Click on Dunning print out (F6)
Enter
Keep on enter until status is dun.Printout is complete
Click on Dunn.history (Shift+F9)
Account type D (Customers)
Company code
Customer From To
Execute (F8)
Select ______
Click on Display dunning notice (Shift+F4)
Click on Print preview
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We can see Dunning notice 1

Three times go back
Click on Indiv.Dunn.notice
Company code
Customer
Click on Print out (F6)
Click on yes
Go to Menu bar
System – Services – Output Control
Select spool number
BANK ACCOUNTING
1. Creation of House Banks
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Bank Accounting -
Bank Accounts - Define House Banks (Tcode: FI12)
Execute
Company Code
Enter
House Bank
Bank Country IN (India)
Bank Key
Click on create
Bank name
Street
City
Bank Branch
Enter
Double click on bank Accounts folder
Account ID
Description
Bank Account
G/L 290100 (Bank A/C)
Currency INR (Indian Rupees)
Save and enter
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Notes:
Bank Key: you specify the bank key under which bank data from the respective country is
stored
SWIFT Code: SWIFT Code will be useful for international payments. SWIFT Code
identifies a bank throughout the world
Bank Group: Bank Group serves to classify banks in such a way that payment
transactions within a group are processed as quickly as possible (bank chain
optimization).
Post Bank Acct: If you set the indicator the account to be treated as a post office bank
current account. This field is used in Germany and Switzerland
2. Maintain Check Leaves

and Accounts Payable- Business Transactions- Outgoing Payments- Automatic Outgoing
Payments- Payment Media- Check Management- Define Number Ranges for Checks
(Tcode: FCHI)
Execute
Paying company Code
House bank
Account ID
Click on Change (Shift+F5)
Click on Create (Shift+F5)
Lot Number 1
Check number 100101
To 100200
Short Info Bank Check lots
Purchasing date
Enter
Save
3. Select Relevant to cash flow in bank account (Tcode: FS00)

G/L Account 290100
Company code
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Click on Change
Select Relevant to Cash flow
Save (Ctrl+S)
Note: this indicator determines the G/L Account is a cash flow account. The following
Accounts typically define as cash flow account
 Bank Account
 Account for bank charges
 Cheque clearing account
 Clearing account for incoming payment
Note: We have to know payment document number then only we can issue cheque
4. Define Void Reason Codes

You define void reason codes for prenumbered checks.
The use of prenumbered checks is listed by using the check management program. You
must mark check forms as voided if they were made invalid by mistake, if they were
stolen or if they were made void due to other reasons. To do this, specify the reason for
voiding by using a ratio.
Payments- Payment Media- Check Management- Define Void Reason Codes (Tcode:
FCHV)
Execute
Reason
Void Reason Code Check Stolen
Check Issue process and Check Register
1. Check Issue to supplier
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Prerequisites: Select ‘Relevant to cash flow’ in bank general ledger master record. We
have to know payment document number, then only we can issue check to supplier
Path: Accounting- Financial Accounting- Accounts Payable- Environment- Check
Information- Create- FCH5 - Manual Checks (Tcode: FCH5)
Payment document no.
Paying company code
Fiscal Year
House Bank
Account ID
Check number
Enter
Post (Ctrl+S)
2. Check Register Report

Path: Accounting- Financial Accounting - Accounts Payable - Environment - Check
Information - Display - FCHN - Check Register (Tcode: FCHN)
Paying company code
House bank
Account ID
Execute (F8)
We can see list of checks issued against payments
3. Void unused checks

Information – Void - FCH3 - Unused Checks (Tcode: FCH3)
Paying company code
House Bank
Account ID
Check number from
Void reason code
Click on Void (Shift+F5)
See Report (Tcode: FCHN)
4. Void Issued Checks
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Information – Void - FCH9 - Issued Checks (Tcode: FCH9)
Paying company code
House Bank
Account ID
Check number
Void reason code
Click on Void (Shift+F5)
5. Cancel Payment
Information – Void - FCH8 - Cancel Payment (Tcode: FCH8)
Paying company code
House bank
Account ID
Check Number
Void Reason code
Reversal Reason
Click on Cancel Payment (Shift+F5)
See Report (Tcode: FB03)
Automatic Payment Program (APP)

Vendor payments can be manual or automatic. The general aspects related to vendor
payments are terms of payments, method/media of payment, manual and automatic
payment
The payment methods are as follows,
 C = Cheque
 E = ECS (Electronic Clearing System)
 T = Bank Transfer
 A = Cash
 D = Demand Draft/Pay Order (Needs to be created in SAP)
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Automatic payments are configured to make vendor payments based on payment terms.
The due date wise/vendor invoice wise payment proposal will be generated and this
proposal can be edited to make the selective payments.
After the payment list has been finalized, the payment run will be executed and
accounting entry will be posted automatically. Payment advice and cheque will be printed
through system
Configuration for APP:
1. Set up Payment Methods per Country for Payment Transactions
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Accounts Receivable
Payments- Payment Method/Bank Selection for Payment Program- Set Up Payment
Methods per Country for Payment Transactions
Execute
Country IN (India)
Pymt Method C
Description Check
Select Outgoing payments
Select Check
Select Allowed for Personnel payments
Select Street, P.O.box or P.O.box pst.code
Document type for payment ZP
Clearing document type ZV
Payment medium program RFFOUS_C
Note: Payment methods will be created at country level
2. Set up Payment Methods per Company Code for Payment Transactions

Path: Same path
Execute
Paying co.code
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Pymt Method C
Minimum amount 100
Maximum amount 99999999
Select Foreign Business partner allowed
Select foreign currency allowed
Select Cust/vendor bank abroad allowed
Go to Form data
Form for the payment medium F110_IN_CHECK
Drawer on the form
Save and enter
Note:
Single payment for marked item: This indicator Causes open items which contain this
payment method to be paid individually. All items, for which the payment method so
indicated is entered explicitly, are paid individually. If the payment method is not
specified explicitly but is instead selected by the payment program, several items can be
paid together.
Payment per due date: Indicator which specifies that only items that are due on the same
day will be paid with a single payment.
3. Set up Paying Company Codes for Payment Transactions

Path: Same path
Execute
Paying co.code
Minimum amount for incoming payment 100
Minimum amount for outgoing paymen 100
Click on forms
Form for the payment advice F110_IN_AVIS
Click on Sender details
Text ID ST
Letter header F_0001_HEADER
Footer F_0001_FOOTER
Sender F_0001_SENDER
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Save and enter
4. Set up All Company Codes for Payment Transactions

Path: Same path
Execute
Company code
Paying company code
Vendor
Sp. G/L transactions to be paid A
Save and enter
Note: Sp. G/L transactions to be paid, all open vendor items that have been entered with
one of the specified special G/L indicators are included in the payment. Advances will be
adjusted against invoice. System will generate check for remaining balance amount
5. Set up Bank Determination for Payment Transactions

Path: Same path
Execute
Paying co.code
Enter
Select Paying company code
Double click on ranking order
PM C
Crcy INR
Rank order 1
House BK
Double click on Bank Accounts
House bank
Pay. method C
Currency INR
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Account ID
Bank Sub account 290100
Double click on Available amounts
House bank
Account ID
Days 999
Currency INR
Available for outgoing payments 99999999
Save and enter
Note:
Days: The specified amounts are only planned for payments where the value date on the
bank account is expected within the number of days given here. Using the value dates,
you can plan amounts on a time scale. As a rule, you only need this if you have bill of
exchange payments to be posted before their due date. In all other cases, you can enter
999 and then the value dates will not be taken into consideration.
Available for outgoing payments:

The amount planned here is available for outgoing payments. The amount is only used
for payments with which the bank debit entry is expected during the number of days
displayed
6. Maintain number ranges 20 for Document type ZP (Tcode: FBN1)

Company Code
No 20
Year
Enter
Save and enter
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7. Maintain Term of payments, Payment method and house bank in vendor

master record (Tcode: FK02)
Vendor
Company Code
Company code data
Select payment transactions
Enter
Payt Terms
Payment methods C
House bank
Save
8. Manual Check Printing

Path: Accounting- Financial Accounting- Accounts Payable- Document Entry- Outgoing
Payment- F-58 - Post + Print Forms (Tcode: F-58)
Company Code
Payment method C
House Bank
Check lot number 1
Printer for forms LP01
Select print immediately
Click on Enter Payments (Shift+F1)
Bank posting details
Amount 25000
Payee
Vendor 4000000
Select invoice against which invoice you are giving check
Go to Menu bar
Post (Ctrl+S)
Go to Menu bar
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System – Services – Output control

Execute (F8)
Select spool number
Click on Display Content (F6)
We can see check
9. Run Automatic payment program

Path: Accounting - Financial Accounting - Accounts Payable - Periodic Processing -
F110 - Payments (Tcode: F110)
Run Date
Identification
Go to Parameter tab
Company Codes
Pmt meths C
Next p/date
Vendor 1 9999999999
Save
Go to Status Tab
Observe Status is “Parameters have been entered”
Go to Additional log tab
Select Due date check
Select payment selection in all cases
Select line items of the payment documents
Vendor 1 9999999999
Save
Go to Status Tab
Click on proposal (Shift+F1)
Select Start Immediately
Enter
Keep on enter until Status is “Payment proposal has been created”
Click on Edit proposal (Shift+F4)
Enter
Go to printout/data medium Tab
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RFFOUS_C
Click on Maintain variants (F5)
Select For all Selection screens
Enter
Programs run date
Identification feature
Paying Company Code
House bank
Account Id
Check lot number
Select Print checks
Select Print payment advice notes
Select Print payment summary
Printer LP01
Printer LP01
Printer LP01
Select Print immediately
Keep blank Number of sample printouts field
One time go back
Enter
Meaning
Save
One time go back
Save
Go to Status Tab
Click on Pmnt run (F7)
Select start immediately
Select Create payment medium
Enter
Keep on Enter until Status is Payment run has been carried out and Posting orders: ___
generated, _____ completed
Go to menu bar
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System- Services - output control

Execute (F8)
Select spool no.
Click on Display Contents (F6)
Alternative payee
We make payments to alternative payee on behalf supplier or service provider. Check
will be generated in the name of alternative payee. The Alternative payee concept is
applicable to Automatic Payment Program (APP)
1. Create two vendor master records

Company Code
Account Group
Enter
Title
Name
Search Term
Street
House number
Postal code
City
Country IN (India)
Sort Key 012
Cash mgmnt group A1
Enter
Payment Methods C (Check)
House bank
Save (Ctrl+S)
Company Code
Account Group
Enter
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Title Company
Name
Search Term
Street
House number
Postal code
City
Country IN (India)
Enter and enter
Alternative payee
Click on permitted payee
Payee
Click on Copy and close (Shift+F1)
Sort Key 012
Cash mgmnt group A1
Enter
Save (Ctrl+S)
2. Post Invoice (Tcode: FB60)

Company code
Enter
Vendor
Invoice Date
Amount

400100 S Debit *
Post (Ctrl+S)
Go to Menu bar
We can see document
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3. Run Automatic Payment Program (APP) (Tcode: F110)

Observe whether system is generating check in the name of alternative payee which is
assigned in vendor master record as alternative payee
Checks Deposit
1. Create two G/L master records (Tcode: FS00)
Check Deposit A/C
G/L Account 290110
Company code
Click on Create
Select Balance sheet account
Short Text Checks Deposit A/C
G/L Acct Long Text Checks Deposit A/C
Select Open item management
Save (Ctrl+S)
Checks Issue A/C

G/L Account 290120
Company code
Click on Create
Short Text Checks Issue A/C
G/L Acct Long Text Checks Issue A/C
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Select Open item management
Save (Ctrl+S)
2. Define Posting Keys and Posting Rules for Check Deposit

Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank Accounting-
Business Transactions- Check Deposit- Define Posting Keys and Posting Rules for Check
Deposit
Execute
Chart of Accounts
Enter
Account Text
Main Bank
Check Deposits
Check Issue
Double click on Assign Accounts to Account Symbol Folder
Act Symbol Acct Mod. Currency G/L acct
* INR 290100
* INR 290110
* INR 290120
Save (Ctrl+S)
Double click on Keys for Posting Rules
Posting Rule Text
Check Deposit
Check Issue
Save (Ctrl+S)
Double click on Define Posting Rules
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Posting Rule
Posting area
Posting key 40 (Debit)
Acct symbol
Document type DZ
Posting Type 8 (Clear cred.subl.acct)
Save (Ctrl+S)
3. Create and Assign Business Transactions

Business Transactions- Check Deposit- Create and Assign Business Transactions
Execute
Tran
+- +
Post. Rule
Text Incoming Check Deposit
Save and enter
4. Define Variant for Check Deposit

Business Transactions- Check Deposit- Define Variants for Check Deposit
Execute
Variant
Name Check Deposit Variant
No. of Line items 1
Enter
Lgth 14
Double click on 10-digit check number
Output Lgth 06
Click on Page down
Double click Customer number (sel.)
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Output Lgth 10
Enter
Double click on Invoice reference (sel.)
Output Lgth 10
Enter
Double click on Invoiced amount (sel.)
Output Lgth 15
Enter
Double click on Value date (sel.)
Output Lgth 10
Enter
Save
Short Description Check deposit variant
Enter and enter
Select Variant
Click on Activate
5. Enter Check deposit

Path: Accounting- Financial Accounting- Banks- Incomings- Check Deposit- FF68 -
Manual Entry (Tcode: FF68)
Double click on FF68 - Manual Entry
Start variant
Processing type 4 (Further Processing Online)
Enter
Bank key
Bank Account
Currency INR
Group 1234
User name SAPUSER
Entry date
Transaction
Posting date
Value date
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Currency
Enter
Amount
Check
Customer
Inv.Ref.
Amount
Value date
Save (Ctrl+S)
Go to menu bar
Check Deposit Transaction – Post – Individual List
Bank Reconciliation Statement (BRS)

BRS means difference between bank pass book and cash book. Ex: Cheque deposit but
not cleared, Cheque issue but not paid, Bank Charges, Interest income etc. We do
reconciliation day wise, weekly, monthly, quarterly, yearly etc. System will post
differences automatically
1. Define Posting Keys and Posting Rules for Manual Bank Statement
Business Transactions- Payment Transactions- Manual Bank Statement- Define Posting
Keys and Posting Rules for Manual Bank Statement
Execute
Chart of Accounts
Enter
Account Text
Bank Account
Check Deposit
Check Issue
Bank Charges
Interest Income
Interest Expense
Double click on Assign accounts to account symbol folder
Act Symbol Currency G/L Account
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INR 290100 (Bank A/C)

INR 290110 (Check Deposit A/C)
INR 290120 (Check Issue A/C)
INR 400020 (Bank Charges A/C)
INR 300020 (Interest Income A/C)
INR 400080 (Interest Expense A/C)
Save (Ctrl+S)
Double click on Create keys for posting rules folder
Posting rule Text
Check Deposit
Check Issue
Bank Charges
Interest Income
Interest Expense
Save (Ctrl+S)
Double click on posting rules folder
Posting rule
Posting area 1 (Bank Accounting)
Debit Credit
Posting Key 40 (Debit) Posting key 50
Acct Symbol Acct Symbol
Document type SA
Posting type 1 (Post G/L Account)
Posting rule
Debit Credit
Posting Key 40 (Debit) Posting key 50 (Credit)
Document type SA
Posting rule
Debit Credit
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Document type SA
Posting rule
Debit Credit
Document type SA
Posting rule
Debit Credit
Document type SA
2. Create and Assign Business Transactions

Business Transactions- Payment Transactions- Manual Bank Statement- Create and
Assign Business Transactions
Execute
Tran +- Post. Rule Text
+ Check Deposit
- Check Issue
- Bank Charges
+ Interest Income
- Interest Expense
3. Manual Bank Statement
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Path: Accounting- Financial Accounting- Banks- Incomings- Bank Statement- FF67 -

Manual Entry (Tcode: FF67)
Scenario:
1 Opening balance 0
2 Checks deposit 50000
3 Interest Income 3000
4 Bank Charges -600
5 Checks Issued -30000
6 Interest Expenses -1000
Closing Balance 21400
Bank Account
Currency
Statement Number
Statement Date
Opening Balance
Closing Balance
Enter
Tran Value date Amount
50000
3000
600-
30000-
1000-
Enter
Observe “Amount Entered” and “Bank Statement” amounts are same
Save (Ctrl+S)
Go to Menu bar
Bank Statement - Post - Individual statement
Observe processing statistics
Bills of Exchange
Bill of exchange is a negotiable instrument which can be transferable as per Negotiable
Instrument Act. Process sequence as follows,
 Post customer invoice
Customer A/C
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To Service Revenue A/C

 Draw bill on customer
Bills Receivable A/C
To Customer A/C
 Discount bill with banker
Bank A/C
Bank Charges A/C
To Bills Discount A/C
 Reverse Contingent Liability
Bills Discount A/C
To Bills Receivable A/C
1. Creation of General Ledger Master Records (Tcode: FS00)
Bills Receivables A/C
G/L Account 290130
Company code
Click on Create
Short Text Bills Receivables A/C
G/L Acct Long Text Bills Receivables A/C
Recon. Account for acct type D Customers
Save (Ctrl+S)
Bills Discount Account
G/L Account 190130
Company code
Click on Create
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Short Text Bills Discount Account
A/C
G/L Acct Long Text Bills Discount Account
A/C
Select Post Automatically Only
Save (Ctrl+S)
Note:
Post Automatically Only: Indicates that this account can only be posted to by the system
using account determination tables
2. Define Alternative Reconcil.Acct for Bills/Exch.Receivable

Business Transactions- Bill of Exchange Transactions- Bill of Exchange Receivable-
Post Bill of Exchange Receivable- Define Alternative Reconcil.Acct for
Bills/Exch.Receivable (Tcode: OBYN)
Execute
Double click on
Acct type SGL Ind. Name Description
D (Customer) W B/e rec Bill of exchange receivable
Chart of Accounts
Enter
Recon. Acct Special G/L Account
290300 (Sundry Debtors A/C) 290130 (Bills Receivables A/C)
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Note:
Recon acct is assigned customer master records. Against reconciliation account we assign
bills receivable A/C. when ever we receive from customer; system automatically post to
bills receivable account
3. Define Accounts for Bill of Exchange Transactions

Post Bill of Exchange Receivable- Define Accounts for Bill of Exchange Transactions
(Tcode: OBYH)
Execute
Double click on Bank Discount Charges BDS
Chart of Accts
Enter
Account 400020 (Bank Charges A/C)
Note:
Through BDS transaction system will post bank charges automatically by account
400020
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4. Define Bank Sub Accounts

Present Bill of Exchange Receivable at Bank- Define Bank Subaccounts (Tcode: OBYK)
Execute
ChAc Bank Acct Usage SGL in Customer Bank Sub Acct for
Recon. Act Liab
290100 D Discounting W 290300 190130 (Bills
(Sundry Discount A/C)
Debtors
A/C)
Bills Receivable Process:

1. Draw bill on customer
Path: Accounting- Financial Accounting- Accounts Receivable- Document Entry- Bill of
Exchange- F-36 – Payment (Tcode: F-36)
Document Date Type DZ Company Code
Posting Date Period Currency/Rate INR
Select Incoming payment
PstKy 09 (Special G/L Debit)
Account
SGL Ind W (Bills Receivables)
Enter
Amount 100000
Due on
Click on process open items (Shift+F4)
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Select invoice against which invoice you are drawing bill on customer and remaining
invoices deselect
Observe amount entered and assigned should be same
Go to Menu bar
Post (Crl+S)
2. Discounting Bills with Bank

Document Date Type DA Company Code
Usage D Discounting
Bank Account 290100 (Bank A/C)
Amount
Bank Charges
Click on Select Bill of Exch. (Shift+F7)
Doc. Number
Enter
Go to Menu bar
Save (Ctrl+S)
3. Reverse Contingent Liability

Document Date Type DA Company Code
G/L Account 290130 (Bills Receivable A/C)

Usage D Discounting
Due by
Ignore Warning Message
Save (Ctrl+S)
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Cash Journal
The cash journal is a subledger of Bank Accounting. It is used to manage a company's
cash transactions. The system automatically calculates and displays the opening and
closing balances, and the receipts and payments totals. You can run several cash journals
for each company code. You can also carry out postings to G/L accounts, as well as
vendor and customer accounts.
Note:
You should run a separate cash journal for each currency
Cash Journal nothing but Petty Cash Account
1. Create General Ledger Master Records (Tcode: FS00)

Petty Cash Account
G/L Account 290140
Company code
Click on Create
Short Text Petty Cash A/C
G/L Acct Long Text Petty Cash Account
Select Only Balances in Local Crcy
Select Line Item Display
Select post automatically only
Select Relevant to Cash Flow
Save (Ctrl+S)
Cash Transfer from Bank A/C

G/L Account 290150
Company code
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Click on Create
Short Text Cash Tr from Bank A/C
G/L Acct Long Text Cash Transfer from Bank Account
Save (Ctrl+S)
Cash Transfer to Bank A/C

G/L Account 290160
Company code 4001
Click on Create
Short Text Cash Tr to Bank A/C
G/L Acct Long Text Cash Transfer to Bank Account
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Save (Ctrl+S)
Office Supplies A/C

G/L Account 400110
Company code 4001
Click on Create
Select P&L Statement Account
Short Text Office Supplies A/C
G/L Acct Long Text Office Supplies Account
Save (Ctrl+S)
Cash Sales A/C

G/L Account 300110
Company code 4001
Click on Create
Select P&L Statement Account
Short Text Cash Sales A/C
G/L Acct Long Text Cash Sales Account
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Save (Ctrl+S)
2. Amount Limit
Use
You use these functions to define limit values for the FI cash journal; where these limits
are reached and exceeded, the user is prompted (in an information dialog box) to run
certain activities. The check is always performed in the first local currency of the
company code.
In the countries of the European Union, these functions are used to draw attention to the
legal requirement for identifying the payer (money laundering law)
Activities
Company code:
You do not have to enter a company code. The entry is then valid for all company codes
within a client that use the currency specified as the first local currency.
Currency:
Each amount must be specified by the classification of the currency. If you specify a
company code, the currency of the company code is entered in the currency field and you
cannot change this.
Date and amount:
The amount limits are defined time-dependent ("Valid From").
Business Transactions- Cash Journal- Amount Limit
Execute
CoCd
Crcy INR (Indian Rupees)
Valid from
Amount 20000
3. Define number range intervals for cash journal documents
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Business Transactions- Cash Journal- Define Number Range Intervals for Cash Journal
Documents
Execute
CoCd
No From Number To Number
01 1 9999999999
Enter
4. Set Up Cash Journal

Business Transactions- Cash Journal- Set Up Cash Journal
Execute
Company Code
CJ Number
G/L Account 290140 (Petty Cash A/C)
Currency INR (Indian Rupees)
D D D D D D
AB KZ KZ DZ DZ
Cash Journal Name

Save (Ctrl+S) and Enter
5. Create, Change, Delete Business Transactions

Business Transactions- Cash Journal- Create, Change, Delete Business Transactions
(Tcode: FBCJC2)
Execute
Company Code Bus. G/L Cash Journal business Trans
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Tran. Account
Type
C 290150 CASH TRANSFER FROM BANK
B 290160 CASH TRANSFER TO BANK
D PAYMENT FROM CUSTOMER
K PAYMENT TO VENDORS
E 400110 OFFICE SUPPLIES
R 300110 PETTY CASH SALES
6. Set Up Print Parameters for Cash Journal

Business Transactions- Cash Journal- Set Up Print Parameters for Cash Journal
Execute
CoCd
Cash Jour. Print Program RFCASH20
Corr. SAP18 (Cash Document)
7. Petty Cash Postings

Path: Accounting- Financial Accounting- General Ledger- Posting- FBCJ - Cash
Journal Posting (Tcode: FBCJ)
Click on Change Cash Journal (Shift+F5)
Company Code
Cash Journal
Enter
Go to Cash Receipt Tab
Business Transaction Amount Customer Vendor
CASH TRANSFER FROM BANK 5000
PETTY CASH SALES 1000
PAYMENT FROM CUSTOMER 500 4000000
Click on Post (F6)
Go to Cash Payments Tab
Business Transaction Amount Customer Vendor
CASH TRANSFER TO BANK 600
OFFICE SUPPLIES 1000
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PAYMENT TO VENDORS 300 4000000

Click on Post (F6)
Extended Withholding Tax

Withholding Tax nothing but TDS (Tax Deduct at Source)
Withholding tax is an income tax which is deducted at the source of the revenue. The
party that is subject to tax does not remit the withholding tax to the Tax authorities
himself.
As SAP system allow defining two different tax types in withholding tax namely one
for invoice posting and one for payment posting. Client requirement can be achieved with
SAP standard functionality
The tax collected will be deposited in a separate GL accounts and can be made
automatic assignment, so at the time of posting automatically tax account will be updated
All the withholding settings can be done by using Country India Version (CIN) so that
the requisite forms will be automatically updated and available for printing
The following section of Income Tax will be covered in extended withholding tax of SAP
Section Description
192 TDS on Salaries
193 TDS on Interest on securities
194A TDS on interest other than securities
194C TDS on payments to contractors
194H TDS on Commission and brokerage
194I TDS on rent
194J TDS on prof & Tech Services
195 Payment to foreign nationals
206C Tax Collected at source
The Aspects related to TDS are discussed under the following heads:
1. Location for TDS Processing
TDS processing, accounting will takes place in the respective regions and payments will
be done at corporate office
2. Information required to process TDS calculation
Vendor account will be assigned with one TDS code, if applicable. TDS code nothing but
TDS rate. This TDS code will be the default TDS code for all the transactions with the
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vendor. A user can however, change the TDS code during the transaction entry. This is
provided to ensure correct deduction of tax in cases where more than one TDS rate is
applicable to the same vendor due to different nature of transactions
3. Time of Tax Deduction
As per Income Tax Act, TDS is required to be deducted on accrual of expenses or
payment whichever is earlier. Accordingly, TDS has to be deducted at the time of bill
passing. In respect of advances given to vendors, TDS will be deducted while making
payment. TDS will be deducted on a transaction-to-transaction basis
TDS will be deducted on all the transactions with a vendor once a TDS code is defined in
master record of such vendor
Each of these TDS codes will be defined separately for deduction at the time of booking
the expenses or at the time of payment
4. Printing of TDS Certificates
TDS certificates can be printed vendor wise at corporate office or location. Once TDS
certificate has been generated at corporate or location, system will not allow to print TDS
certificate, only duplicate copy can be printed. System will provide for generation of
annual return on yearly basis
5. Printing of Annual Return
Classify the vendors for calculating withholding tax, whether individual, company,
partnership firm, etc. Standard SAP has only two classifications, individual and company.
There is no separate classification as partnership
Configuration for Withholding Tax

1. Check withholding Tax countries
Global Settings (New)- Withholding Tax- Extended Withholding Tax- Basic Settings-
Check Withholding Tax Countries
Execute
Cty IN
WCty IN
Description India
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Save and enter
2. Define Withholding Tax Keys

Definition: If national tax authorities use official withholding tax keys to identify the
different with holding tax types
Ex: Salaries, Contractors, Interest on deposits, Professional and technical services,
Commission and brokerage etc
Path: same path
Execute
Country Key IN
Enter
Off. Key Name
192 TDS on Salaries
193 TDS on Interest on securities
194A TDS on interest other than securities
194C TDS on payments to contractors
194H TDS on Commission and brokerage
194I TDS on rent
194J TDS on prof & Tech Services
Save and enter
3. Define Reasons for exemption

Definition: you define reasons for exemption from withholding tax. You can enter this
indicator in the vendor master record or in the company code withholding tax master
record information.
Path: same path
Execute
Country key IN
Exempt. Resn
Text Exempt from withholding tax
Save and enter
4. Maintain Types of Recipient
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Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Financial Accounting
Global Settings (New)- Withholding Tax- Withholding Tax- Basic Settings- Maintain
Types of Recipient (Tcode: OB97)
Execute
Cty Rec.ty Description
IN Company
IN Other Than Company
Save and enter
5. Define Section Codes

Section codes are the location where tax is deducted. A company has various offices at
head office, regional offices etc. Tax can be deducted at any these places. Withholding
tax tracking is thus done based on section codes
India- Define Business Places
Execute
Company code
Section code
Name 1
Enter
Name
Street
House number
Postal code
City
Country IN (India)
Enter
Save and enter
6. Assign Factory Calendars to Business Places
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In this IMG activity, you effectively specify which days the tax offices that you work
with are open. The system uses this information when you post a vendor invoice, so that
it can allow for public holidays when it determines the tax due date.
This activity is optional. If you do not make any entries, the system still determines
the tax due date, but without reference to any factory calendar.
The factory calendar is assigned to determine the holidays and pre-pone the payment
of tax dues to the previous working day for determination of payment due date for the tax
liability. A common Factory Calendar IN has been defined and assigned to all the section
codes
Path: Same path
Execute
Company code
Section code
Factory Calendar ID 01 (Standard)
Rule - Day before
7. Define Withholding Tax Type for Invoice Posting

Definition: withholding tax code only controls the percentage rate of the withholding tax
Global Settings (New)- Withholding Tax- Extended Withholding Tax- Calculation-
Withholding Tax Type- Define Withholding Tax Type for Invoice Posting
Execute
Country key IN
Enter
Withhld tax type
Select Gross amount
Select Round w/tax amnt up
Select per year, starting with mnth :4
Withhld tax type
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Select Gross amount

Save (Ctrl+S)
Notes:
Gross amount: If you set this indicator, the system uses the gross amount as the base
amount for calculating the withholding tax.
Round w/tax amnt up: If you set this indicator, the withholding tax amount is always
rounded up. You must specify a rounding rule for each withholding tax type for which
withholding tax is to be calculated. This field is used in India
8. Define Withholding Tax Type for Payment Posting

Path: Same path
Execute
Country key IN
Enter
Withhld tax type
Select Gross amount
Withhld tax type
Select Gross amount
Save (Ctrl+S) and Enter
9. Check Recipient Types

Definition: This is required to categorize vendor
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Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Financial Accounting
Global Settings (New) - Withholding Tax- Extended Withholding Tax- Basic Settings-
Check Recipient Types
Execute
Country key : IN (India)
Enter
Wth.t.type Rec.ty Name
Company/Invoice
Company/Payment
Other than company/Invoice
Other than company/Payment
10. Maintain Tax Due Dates

Definition: In this activity, formula for calculation of tax due date is maintained. Since
for Income tax as well as other taxes 7th of the following month is the due date, the same
value is maintained for all tax types.
Path: Same path
Execute
Country Official withholding tax Recipient type No. days until tax
key due date
IN (India) 194C (TDS on payment to 777
contractors)
IN 194C (TDS on payment to 777
(India) contractors)
Note: Number of Days until Tax Due Date, Specifies how many days you have to remit
this tax, after you have posted it. If you have to remit the tax seven days from the month
end, enter 777.
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Otherwise, enter the number of days after which you have to remit the tax to the tax
office.
11. Withholding tax codes

Definition: the withholding tax codes determine the withholding tax percentage.
Withholding tax nothing but tax rate
Global Settings (New)- Withholding Tax- Extended Withholding Tax- Calculation-
Withholding Tax Codes- Define Withholding Tax Codes
Execute
Country key IN (India)
Enter
Withhld tax type
W/tax code
Off. W/Tax Key 194C
Description
Percentage subject to tax 100
Post.indic 1
With/tax rate
Withhld tax type
W/tax code
Off. W/Tax Key 194C
Description
Post.indic 1
With/tax rate
Withhld tax type
W/tax code
Off. W/Tax Key 194C
Description
Post.indic 1
With/tax rate
Withhld tax type
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W/tax code
Off. W/Tax Key 194C
Description
Post.indic 1
With/tax rate
Save and enter
12. Assign withholding tax types to Company codes

Global Settings (New)- Withholding Tax- Extended Withholding Tax- Company Code-
Assign Withholding Tax Types to Company Codes
Execute
Company code
Withhld tax type
Recipient type
Select with/tax agent
W/tax obligated frm
Oblig.to w/tax until
W/Tax number
Click on Next Entries (F8)

Company code
Withhld tax type
Recipient type
W/tax obligated frm
W/Tax number

Company code
Withhld tax type
Recipient type
W/tax obligated frm
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W/Tax number

Company code
Withhld tax type
Recipient type
W/tax obligated frm
W/Tax number
13. Activate Extended Withholding Tax

Path: Same path
Execute
Company code
Enter
Select Ext.w/tax
Save and enter
14. Creation of TDS on Contractors A/C (Tcode: FS00)

G/L Account 190300
Company code
Click on create
Short Text TDS on Contr. A/C
G/L Acct Long Text TDS on Contractors Account
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Sort Key 001

Save
15. Define Accounts for Withholding Tax to be Paid Over

Global Settings (New)- Withholding Tax- Extended Withholding Tax- Postings- Accounts
for Withholding Tax- Define Accounts for Withholding Tax to be Paid Over
Execute
Chart of accounts
Enter
Select withholding tax code
Select withholding tax type
Save
Withholding tax type Withholding Tax code Account
190300
190300
190300
190300
Save and enter
16. Specify Document Type (Accounts Payable)

Definition: In this activity, we specify the document type to be used for journal vouchers
for correction of withholding tax entry
Path: SPRO- Financial Accounting (New)- Financial Accounting Global Settings (New)-
Withholding Tax- Extended Withholding Tax- Posting- India- Remittance Challans-
Document Types- Specify Document Type (Accounts Payable)
Execute
CoCd 0
RC Doc Type SA
Save and enter
17. Define Business Places
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Path: SPRO- SAP Reference IMG- Cross Application Components- General Application
Functions- Nota fiscal- CNPJ Business Places- Define Business Places
Execute
Company code
Enter
Business place
Save (Ctrl+S)
Name
Street
House number
Postal code
City
Country IN (India)
Enter and enter
18. Assign section codes to business places
South Korea- Define Section Codes
Execute
Company code
Enter
Section code Business Place
19. Maintain number range groups to business places (Tcode: SM30)

Table/View J_1IEWTNUMGR
Click on Maintain
Company Code
Business Place
Off. W/Tax Key
Number group 001
Save
20. Maintain number range groups to Section code (Tcode: SM30)
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Table/View J_1IEWTNUMGR_1
Click on Maintain
Company Code
Section code
Off. W/Tax Key
Number group 001
Save and enter
21. Maintain Number Groups

Global Settings (New)- Withholding Tax- Extended Withholding Tax- Posting- India-
Remittance Challans- Maintain Number Groups
Execute
Company Section code Off. W/Tax Key Number grp
code
001
22. Assign Number Ranges to Number Groups

Path: Same path
Execute
Number group 001
IntNR 01
Save (Ctrl+S)
23. Maintain Number Ranges

Path: Same path
Execute
Click on Groups (F6)
Select Group without text
Click on Maintain (Shift+F5)
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Company code
Enter
Year
From number 100000
To number 199999
Enter
Save and enter
24. Maintain Number Groups and SAPscript Forms

Global Settings (New)- Withholding Tax- Extended Withholding Tax- Posting- India-
Withholding Tax Certificates for Vendors and Customers- Maintain Number Groups and
SAPscript Forms
Execute
Company Section code Off. W/Tax Key Form Number Grp
code
194C J_1IEWT_CERT 001
Save and enter
25. Assign Number Ranges to Number Groups

Path: Same path
Execute
Number group 001
IntNR 01
Save (Ctrl+S)
26. Maintain Number Ranges

Path: Same path
Execute
Click on Groups (F6)
Select Group without text
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Click on Maintain (Shift+F5)

Company code
Enter
Year
From number 200000
To number 299999
Enter
Save and enter
27. Maintain company code settings

Path: SPRO- SAP Reference IMG- Logistics General- Tax on Goods Movements- India-
Basic Settings- Maintain Company Code Settings
Execute
Company code
First month 4 April
Save and enter
28. Change Vendor Master Record (Tcode: FK02)

Vendor
Company Code
Select withholding tax
Enter
WH Tax Country IN
With. T. type W/Tax Code liable Rec.ty
Select
Select
Save (Ctrl+S)
29. Vendor Invoice (Tcode: FB60)

Company code
Enter
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Vendor
Invoice Date
Amount
Bus.Place/section
Go to withholding Tax tab
Company/invoice
Keep blank Company/Payment
S Debit *
Post (Ctrl+S)
Go to Menu bar
Document – display
We can see document
30. Create Remittance Challan

Path: Accounting- Financial Accounting- Accounts Payable- Withholding Tax- India-
Extended Withholding Tax- Remittance of Withholding Tax- J1INCHLN - Create
Remittance Challan (Tcode: J1INCHLN)
Company Code
Fiscal Year
Business Place/Section Code
Posting Dates
Section
Vendors
Recipient Types
Document Date
Posting Date
Bank Account
Execute (F8)
Select Document number
Enter
Select Document number which amount you are making payment to Income tax dept
Click on Document overview (Shift+F2)
Double click on line item
Amount *
Go to menu bar
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Post (Ctrl+S)
31. Enter Bank Challan

Path: Same path (Tcode: J1INBANK)
Company Code
Fiscal Year
Challan Clearing Number
Internal Challan Number
Internal Challan Date
Bank Challan Number
Bank Challan Date
Bank Key
Execute (F8)
32. TDS Certificate Print

Path: Accounting- Financial Accounting- Accounts Payable- Withholding Tax- India-
Extended Withholding Tax- Certificates- J1INCERT – Print (Tcode: J1INCERT)
Company Code
Fiscal Year
Business Place/Section Code
Section
Posting Dates
Bank Challan Numbers
Bank Challan Dates
Vendors
Certificate Date
Signatory
Designation
Place of Printing
Execute (F8)
Click on Print (Ctrl+P)
Go to Menu bar
System – Services – Output control
Execute (F8)
Select spool no
Click on Display content (F6)
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Asset Accounting (FI-AA)

The Fixed Assets Module is an integrated asset management solution for
additions, updating, tracking, depreciation and administrative purposes. Assets are
depreciated periodically to arrive at their current net value. Once an asset is capitalized, it
can be transferred between locations, cost centers. Assets can be removed from the assets
ledger by disposing them
Asset Accounting is a subsidiary ledger accounting module in financial
accounting
The fixed assets module will provide following functions:
 New Asset Addition
 Add to an existing asset
 Modify asset details
 Asset transfer
 Asset disposal
 Depreciation
Features of Asset Accounting:
 Drill down for a particular asset to view the transaction history for that asset
 Depreciation is run only once for each period. The system will record the last
period for which depreciation was run. The user can only run the depreciation
program for the next period
 Asset that is depreciated, the system automatically generates a journal and posts it
to the fixed asset sub ledger for the depreciation amount
 When posting the depreciation expense for an asset the cost center of the asset at
the time of depreciation run is considered
Business Process:
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1. Asset Acquisition and capitalization of asset under construction

All asset purchases would be routed through materials management in the form of a
purchase order. The accounts section will create the asset master record before purchase
order is raised through MM Module. Assets purchased in the nature of office equipment,
computer equipment, furniture and fixtures and vehicles will be capitalized directly
without routing it through Capital Work in Progress (CWIP) to make it capitalized on a
stand alone basis
2. Asset Depreciation
Different depreciation rates are configured using different depreciation keys and they
will be attached with the asset masters at the time of creating an asset master
Depreciation as per the Companies Act, 1956 will be handled by creating ‘Book
Depreciation’
SAP gives a functionality of depreciation forecast report where in one can analyze the
depreciation of the asset over a period of years
The planned depreciation is posted to the general ledger at the time of the monthly
depreciation posting run. This posting run uses a batch input session to post the planned
depreciation for each posting level for individual asset as a lump sum amount.
The depreciation posting cycle is determined by entering the length of time between
two depreciation posting runs. This means that a setting of 1 indicates monthly posting, 3
means quarterly posting, 6 means semi-annual, and 12 means annual. When a
depreciation posting run is started, one has to enter the period for which one wants it to
be carried out
3. Capitalization of Asset Under Construction (AUC)
For capitalized maintenance, the flow is different. We use CWIP for each asset class as
account assignment in purchase order requisition. CWIP will accumulate all the costs of
the WIP for each asset class and subsequently based on the capitalization date. The
settlement can be done at the asset concerned
4. Asset Retirement and Transfer
The asset retirement consists of any of the following
 Sale of asset with customer, without customer
 Scraping of an asset
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 Transfer of an asset
 Posting revenue/loss on asset sale
The above mentioned items can be done by using SAP standard functionality
5. Closing Operation
 The year end closing program is used the fiscal year for one or more
company codes from an accounting perspective. Once the fiscal year is
closed, one can no longer post or change values within asset accounting.
The fiscal year that is closed is always the year following the last closed
fiscal year
 At the time of closing the period system performs the following checks.
 The system found no errors during the calculation of depreciation
 The planned depreciation from the automatic posting area has been
completely posted to the general ledger
 All incomplete assets (master records) have been completed, since
this check does not make sense for asset under construction, we
can prevent this check from being made for assets under
construction
Asset Accounting Configuration:

1. Maintain Chart of Depreciation
Definition: Charts of depreciation are used in order to manage various legal requirements
for the depreciation and valuation of assets. These charts of depreciation are usually
country-specific and are defined independently of the other organizational units. A chart
of depreciation, for example, can be used for all the company codes in a given country.
Chart of depreciation means list of depreciation areas. Depreciation Area means one set
of book keeping.
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Asset Accounting-
Organizational Structures- Copy Reference Chart of Depreciation/Depreciation Areas
(Tcode:OAP1)
Execute
Double click on Copy Reference Chart of Depreciation
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Click on Copy org.object (F6)

From chart of dep. 1IN (Sample chart of depreciation: India)
To chart of dep.
Enter, Enter, Enter and enter
One time go back
Double click on Specify Description of Chart of Depreciation
Chart of Dep.
Enter
Description
Save and enter
One time go back
Double click on Copy/Delete Depreciation Areas
Chart of Dep.
Enter
Observe depreciation areas under our chart of depreciation
2. Assign Input Tax Indicator for Non-Taxable Acquisitions

In this step, you specify an input tax indicator per company code. The system then
uses this indicator when you post acquisitions that are not subject to tax, but which are
posted to accounts that are tax-relevant.
An acquisition of this type is an acquisition from in-house production. In the
Asset Accounting posting transaction for this acquisition, the input tax indicator is not
ready for input.
In each company code, enter a tax indicator for business transactions that are not
subject to taxes (for example, V0).
Path: SPRO- Financial Accounting (New) - Asset Accounting- Integration with the
General Ledger- Assign Input Tax Indicator for Non-Taxable Acquisitions
Execute
Company Code
Enter
Input Tax V0 (0% Tax on purchases)
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Output Tax A0 (0% Tax on Sale)

Save and enter
3. Assign Chart of Depreciation to Company Code

Definition: One chart of depreciation can be assigned to more than one company codes
which are located in same country
Path: SPRO- Financial Accounting (New) - Asset Accounting- Organizational
Structures- Assign Chart of Depreciation to Company Code (Tcode: OAB1)
Execute
Company code
Enter
Chrt Dep
Save and enter
4. Specify Account Determination

Definition: Account Determination is a bridge to flow the asset values to General ledger
accounting (This is integration point between General ledger and Asset accounting)
Path: SPRO- Financial Accounting (New) - Asset Accounting- Organizational
Structures- Asset Classes- Specify Account Determination
Execute
Acct.determ. Name of account determination
Save and enter
5. Create Screen Layout Rules

Definition: Screen layout controls Fields in Asset Master record.
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Path: Same path

Execute
Select 1010, 2000 and 3000
Click on copy as (F6)
Screen Layout Rule Name of screen layout rule
Save and enter
6. Define Number Range Interval

Path: Same path
Execute
Company Code
No 01
From number 100000
To number 199999
Enter
No 02
From number 200000
To number 299999
Enter
No 03
From number 300000
To number 399999
Enter
Save and enter
7. Define Asset Classes
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Definition: Asset class means which are having same characteristic features.
Path: same path
Execute
Asset Class
Short Text
Account determ
Scr.layout rule
Number range
Asset Class
Short Text
Account determ
Scr.layout rule
Number range
Asset Class
Short Text
Account determ
Scr.layout rule
Number range
Save and enter
8. Determine Depreciation Areas in the Asset Class

Path: SPRO- Financial Accounting- Asset Accounting- Valuation- Determine
Depreciation Areas in the Asset Class
Execute
ChDep
Enter
Asset Class
Enter
Select Asset Class
Double click on Depreciation Areas
Screen layout 2000
Deselect Area deact.
Save and enter
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9. Depreciation Key
Definition: Depreciation key nothing but depreciation rate
a. Define Base Methods
Definition: It is particularly important to enter a depreciation type and the depreciation
calculation method. Base method is assigned in depreciation key. Depreciation type
means whether it is Ordinary depreciation or special depreciation. Special depreciation
means other than ordinary depreciation purely income tax depreciation.
Depreciation method means how we calculate depreciation. For ex: Percentage
depreciation.
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Asset Accounting-
Depreciation- Valuation Methods- Depreciation Key- Calculation Methods- Define Base
Methods
Execute
Base method
Type of depreciation N Ord.depreciation
Dep.Method P Stated Percentage
Save
Enter and enter
b. Define Declining-Balance Methods

Definition: For each declining balance method, we maintain following specification,
A multiplication factor for determining the depreciation percentage rate,
An upper limit for the depreciation percentage rate and
A lower limit for the depreciation percentage rate
Multiplication factor means system multiplies the depreciation percentage rate resulting
from the total useful life by this factor.
Path: Same path
Execute
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Decl.-bal.
Description of the method
c. Define Multi-Level Methods

Definition: In multi level method, we can define validity period for a given percentage
rate. For ex: planned useful life is 30 Years.
Up to 5 years 20% Depreciation rate
Up to 10 years 15% Depreciation rate
Remaining life 10% Depreciation
Path: Same path
Execute
Multilev.meth.
Validity start 2 from ordinary depreciation start date
Double click on Levels
Acq.year 9999
Year 999
Per 12
Base Value 24 (Net Book Value)
Percent
Save and enter
d. Maintain Period Control Methods
Definition: Assign period control keys to the period control methods for:
o Acquisition transactions
o Subsequent acquisitions
o Retirements and transfers
o And so on
Path: same path
Execute
Prd.c.meth
Description
Acq 1 Pro rata at period start date
Add 1 Pro rata at period start date
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Ret 1 Pro rata at period start date

Trn 1 Pro rata at period start date
Save and enter
e. Maintain Depreciation Key

Definition: Depreciation key nothing but depreciation rate
Path: Same path
Execute
Dep. Key
Double click on Assignment of calculation methods
Dep type N Ord.depreciation
Phase 1 From the start of depreciation
Base method
Decl. - bal. method
Prd cont
Class 2 Declining - balance depreciation
Save and enter
4 times go back
Select 2901
Click on activate (Ctrl+F3)
Save (Ctrl+S)
10. Create G/L Master records (FS00)

a. Building A/C
G/L Account 200100
Company Code
Click on Create
Account group ASST Assets
Short Text Buildings A/C
G/L Acct Long Text Buildings Account
Recon acct for Account type A Assets
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Sort Key 018 (Asset Number)

Save
b. Sale of Asset
G/L Account 300030
Company Code
Click on Create
Short Text Sale of Asset A/C
G/L Acct Long Text Sale of Asset Account
Sort Key 001
Save
c. Profit on sale of Asset

G/L Account 300040
Company Code
Click on Create
Short Text Pr. Sale of Asset A/C
G/L Acct Long Text Profit on Sale of Asset Account
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Sort Key 001

Save
d. Loss on Sale of Asset

G/L Account 400040
Company Code
Click on Create
Short Text LS. Sale of Asset A/C
G/L Acct Long Text Loss on Sale of Asset Account
Select Only balances in local crcy
Sort Key 001
Save
e. Scrap on Assets
G/L Account 400050
Company Code
Click on Create
Short Text Scrap on Asset A/C
G/L Acct Long Text Scrap on Asset Account
Sort Key 001
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Save
f. Depreciation A/C
G/L Account 400060
Company Code
Click on Create
Short Text Depreciation A/C
G/L Acct Long Text Depreciation Account
Sort Key 001
Save
g. Acc.Dep Account
G/L Account 110000
Company Code
Click on Create
Short Text Acc.Dep A/C
G/L Acct Long Text Accumulated Depreciation Account
Recon.account for acct type A Assets
Sort Key 001
Save
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Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Asset Accounting-
Integration with the General Ledger- Assign G/L Accounts
Execute
ChDep
Enter
Select Chrt/Accts
Double click on Account determination
Account Determ.
Enter
Select Account determination
Double click on Balance sheet accounts
Acquisition:Acquis. and production costs 200100
Loss made on asset retirement w/o reven. 400050
Clearing acct. revenue from asset sale 300030
Gain from asset sale 300040
Loss from asset sale 400040
Double click on Depreciation
Acc.dep. accnt.for ordinary depreciation 110000
Expense account for ordinary depreciat. 400060
Save and enter and enter
12. Maintain Number ranges for Depreciation posting (Tcode: FBN1)

Company code
No 04
Year
Enter
Save and enter
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13. Define Screen layout Rule

Definition: Screen layout rule controls fields in Asset Master Record
Path: SPRO- Financial Accounting (New) - Asset Accounting- Master Data- Screen
Layout- Define Screen Layout for Asset Master Data
Execute
Double click on Define Screen Layout for Asset Master Data
Screen layout
Enter
Select Screen Layout
Double click on Logical Field groups
Select 3 Time dependent data
Double click on Field Group rules
Select Cost center optional
Save and enter
Notes:
Main number: If this indicator is set, the screen layout rule defines the asset main number
as the level for the field group.
This means that when a sub-number is created for the asset, the values for this field group
in the sub-number are supplied by the asset main number.
Sub number: If this indicator is set, the screen layout rule defines the sub-number as the
maintenance level for the corresponding field group.
Copy: If this indicator is set, the screen layout rule specifies that when you create an asset
using another asset as a reference, the specified field group is automatically supplied with
values from the reference asset.
14. Creation of Asset Master Record
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Definition: The "master data maintenance" component is used for recording the master
data of your fixed assets on an individual asset basis. A fixed asset is defined as an
individual economic good that it is recognized in the balance sheet at the time of closing,
and is in the long-term service of the enterprise.
Path: Accounting- Financial Accounting- Fixed Assets- Asset- Create- AS01-Asset
(Tcode: AS01)
Asset Class
Company Code
Enter
Go to General data Tab
Description
Capitalized on
Go to Deprec.Areas Tab
DKey
Useful life
Odep.start
Save (Ctrl+S)
15. Creation of Sub Asset

Path: Accounting- Financial Accounting- Fixed Assets- Asset- Create- Sub Number-
AS11 – Asset (Tcode: AS11)
Asset
Company Code
Number of similar sub assets 1
Enter
Go to General data Tab
Description
Capitalized on
DKey
Useful life
Odep.start
Save (Ctrl+S)
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Note:
Similar Assets: Number of similar assets that you want the system to create when you
save an asset master record. We can create 999 similar assets at a time
Sub Assets: This is the number which, together with the main asset number, uniquely
identifies a fixed asset in Asset Accounting.
Using the asset sub-number, you can:
 Provide for separate management of later acquisitions to assets.
 Represent complex fixed assets with their component parts.
In contrast to the main asset number, the asset sub-number must be numerical. We can
create 9999 sub assets under one main asset
The following graphic shows the most important depreciation terms in a depreciation
area:
16. Purchase of Asset

a. With Bank
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Path: Accounting- Financial Accounting- General Ledger- Posting- F-02 - General

Posting (Tcode: F-02)
Document date Type SA Company code
Posting date Period Currency
PstKy 70 (Asset Debit)

Account
TType 100 (External Asset Acquisition)
Enter
Amount
PstKy 50 (Credit)
Enter
Amount *
Go to Menu bar
Document - simulate
Save
b. With Vendor
path: Accounting - Financial Accounting - Fixed Assets - Posting - Acquisition - External
Acquisition - F-90 - With Vendor (Tcode:F-90)
Document date Type KR Company code
PstKy 31 (Vendor Credit)

Account
Enter
Amount 20000000
PstKy 70 (Asset Debit)
Account
TType 100 (External Asset Acquisition)
Enter
Amount *
Go to Menu bar
Document - simulate
Save
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17. Sale of asset
a. With Bank (Tcode: F-02)

Document date Type SA Company code
PstKy 40 (Debit)
Account 290100 (Bank Account)
Enter
Amount
PstKy 50 (Credit)
Account 300030 (Sale of Asset A/C)
Enter
Amount *
Select Asset Retirement
Go to Menu bar
Document - simulate
Asset Number
Sub number
Asset value date
Select Complete retirement
Enter
Save
b. With Customer
Path: Accounting - Financial Accounting - Fixed Assets - Posting - Retirement -
Retirement w/Revenue - F-92 - With Customer (Tcode:F-92)
Document date Type DR Company code
PstKy 01 (Customer Debit)

Account
Enter
Amount
PstKy 50 (Credit)
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Account 300030 (Sale of Asset A/C)

Enter
Amount *
Select Asset retirement
Go to Menu Bar
Document - simulate
Asset number
Sub number
Asset value date
Select Complete Retirement
Enter
Save
18. Scrap on Asset

Path: Accounting- Financial Accounting- Fixed Assets- Posting- Retirement- ABAVN -
Asset Retirement by Scrapping (Tcode: ABAVN)
Click on Change company code (F7)
Company code
Enter
Asset
Document date
Posting date
Asset value date
Click on Simulate (F9)
Post (Ctrl+S)
Entry:
Scrap on Asset A/C
To Asset A/C
19. Takeover of existing assets

Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Asset Accounting- Asset
Data Transfer- Manual Online Transfer- Create/Change/Display Legacy Asset (Tcode:
AS91)
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Execute
Double click on Create Legacy Asset
Asset Class
Company Code
Enter
Description
Capitalized on
DKey
Uselife
Click on Takeover values (Shift+F8)
Cum.acquis.val.
Accm.ord.deprec
Enter
Save and enter
20. Depreciation run

Path: Accounting - Financial Accounting - Fixed Assets - Periodic Processing -
Depreciation Run - AFAB - Execute (Tcode: AFAB)
Company Code
Fiscal year
Posting period 1
Select Test run
Execute (F8)
Note: If there is any errors, Click on Error list (F7)
One time go back
Deselect Test run
Go to menu bar
Program - Execute in background
Output device LP01
Enter
Click on Immediate
Save (Ctrl+S)
Go to Menu bar
System -services - output Control
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Execute (F8)
Select Spool no.
Display contents (F6)

Click on Document list (Shift+F8)
Company Code
Document type AF
Execute
19. Asset explorer

Path: Accounting- Financial Accounting- Fixed Assets- Asset- AW01N - Asset Explorer
(Tcode: AW01N)
Company code
Asset
Enter
Observe Planned Values, Posted Values and comparisons
Validations
1. Validation in Accounting Documents
In this activity, we define additional checks for accounting documents in the form of
validations for each of your company code. We can assign a validation for the document
header and one for the line items to each company code. The assigned validations are
valid both for manual entry of documents as well as for the automatic creation of
Documents.
Ex: We can use the validation for the following situation. We want to make sure that
postings to the expense account ‘Telephone Costs’ can only be posted to the services cost
center ‘Telephone’. We can carry out the checks needed for this by using the validation
Global Settings (New)- Tools- Validation/Substitution- Validation in Accounting
Documents (Tcode: OB28)
Execute
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Company code
CallPnt 1 (Document Header)
Validation
Double click on Validation
Click on ‘Yes’
Click on Insert Step (Ctrl+Shift+F5)
Click on Prerequisite
Double click on accounting document header
Go to menu bar
Settings – Technical names
Double click on BKPF-USNAM (User Name)
Click on “=”
Click on Constant
User Name SAPUSER
Enter
Click on “Check”
Double click on Accounting Document Header
Double click on BKPF-BLART (Document Type)
Click on “=”
Click on Constant
Document type SA (G/L Account Document)
Enter
Click on Message
Message number
Save (Ctrl+S)
Three times go back
Activtn level 1 (Active)
2. Posting (Tcode: FB50)

Company code
Enter
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Document date
Document type DR

290100 S Debit 25000 11.10.2011
100000 H Credit 25000
Post (Ctrl+S)
System will through error, because document type is not SA. System will allow only SA
Document type for SAPUSER
Authorizations
SAP system is a high secured system. We can maintain authorizations each employee
wise or Group of employees wise.
1. Maintain user
Path: Tools- Administration- User Maintenance- SU01 – Users (Tcode: SU01)
User V140130
Title MR.
Last Name Venkat
First name M
Academic Title MBA
Function Accountant
Department Accounts
Room number 3
Floor 2
Building 1
Telephone number
Extension 456
Mobil phone 9846412354
Fax
Extension 456
Email [email protected]
Go to Logon Data Tab
Initial password 123456
Repeat password 123456
Save
2. Role maintenance
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Path: Tools- Administration- User Maintenance- Role Administration- PFCG – Roles

(Tcode: PFCG)
Role Accountant
Click on Role
Save
Go to Menu Tab
Click on transactions
Transaction code
FB50
FS00
FB03
FS10N
F-01
FKMT
Enter
Click on Assign transactions (Shift+F7)
Save
Go to Authorizations Tab
Click on Expert mode for Profile generation
Company code
Business area
Enter
Note: We have to convert red color nodes and yellow color nodes should be in green
color.
If it is red color node, open tree structure, click on red color node and enter
If it is yellow color node, open tree structure, Click on yellow color mode
Click on Generate profile (Shift+F5)
Enter
Save
One time go back
Go to User Tab
User ID V140130
Enter
Click on user comparison
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Click on Complete comparison

Click on Yes
Save
3. Enter into SAP System

Double click on SAP Logon on Desktop
Click on Logon
Client 800
User V140130
Password 123456
Enter
New Password 1234567
Repeat password 1234567
Enter
4. Define Tolerance Groups for G/L Accounts

Define Tolerance Groups for Employees (Tcode: OBA4)
Execute
Group
Company code
Amount per document 25000
Amount per open item account item 25000
Cash discount per line item 3
Save and enter
5. Assign Users to Tolerance Groups

Path: same path (Tcode: OB57)
Execute
User name V140130
Tolerance Group
Save and enter
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LSMW (Legacy System Migration Workbench)

Through LSMW, we upload master records (General ledgers, Vendors, Customers,
Assets, Bank data, Cost centers, Cost elements, Profit centers etc)
Uploading Master data (Tcode: LSMW) (Legacy System Migration Workbench)
Project UPLOAD
Sub project GL
Object GLS
Click on Create (Shift+F1)
Description Uploading
Enter
Description GL
Enter
Description GL
Enter
Execute (F8)
Select Maintain Object Attributes
Execute (Ctrl+F8)
If it is display mode, Click on Display <-> Change (Ctrl+F1)
Select Batch Input Recording
Recording Venkat
Go to menu bar
Goto – Recordings Overview
Click on Create recording (Ctrl+F1)
Recording Venkat
Description GL Upload
Enter
Transaction code FS00
Enter
Note: We should not use mouse until recording completed
G/L Account
Company code
Click on Create
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Short Text
G/L Acct Long Text
Go to Control data (Ctrl+F11)
Account currency INR
Goto Create/Bank/Interest Tab (Ctrl+F11)
Field Status group G001
Save
Note: We can use mouse now
Click on Default all (Ctrl+F2)
Save
Go to menu bar
System- List- Save- Local file
Select Spread sheet
Enter
Directory: C:\Documents and Settings\eccadm\Desktop\
File name: GLS
Enter
Open excel sheet, which is saved on desk top (GLS)
Delete up to H column
Keep the following rows and delete remaining rows
290110 SAKNR G/L Account Number
2301 BUKRS Company Code
ASST KTOKS G/L Account Group
X XPLACCT P&L statement account
X XBILK Indicator: Account is a balance sheet account?
Cash A/C TXT20_ML G/L account short text
Cash Account TXT50_ML G/L Account Long Text
INR WAERS Account currency
X XSALH Indicator: Only Manage Balances in Local Currency
X XKRES Indicator: Can Line Items Be Displayed by Account?
001 ZUAWA Key for sorting according to assignment numbers
G001 FSTAG Field status group
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Copy the data

Go to A1 cell
Go to menu bar
Edit – Paste special
Select Values
Select Transpose
Enter
Enter General ledgers in excel sheet as per template
Delete 1st row and 3rd row
Convert K column (Sort key) into text format
Select K column and right mouse click and choose format cells
Double click on Text
Change 1 to 001 (sort key) in K Column
Open one note pad on desk top
Copy data in excel sheet to note pad which is saved on desktop
Go to create recording in SAP
Two Times go back
Save
One time go back
Select Maintain Source Structures
Execute (Ctrl+F8)
Click on Display <-> Change (Ctrl+F1)
Click on Create a structure (Ctrl+F4)
Source Structure Venkat1
Description GL Upload
Enter
Save
One time go back
Select Maintain Source Fields
Execute (Ctrl+F8)
Select Venkat1
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Go to Menu bar
Source fields – Copy fields
Select From Data File (Field name in 1. line)
Enter
Number of fields 9999
Max. Record Length 999999
Enter and enter
Give notepad path, which is saved on desktop
Save
One time go back
Select Maintain Structure Relations
Execute (Ctrl+F8)
Save
One time go back
Select Maintain Field Mapping and Conversion Rules
Execute (Ctrl+F8)
Go to menu bar
Extras – Auto field mapping
Select no confirmation
Enter and enter
Save
Select Specify Files
Execute (Ctrl+F8)
Select Legacy data
Click on Add a entry (Ctrl+F2)
File : C:\Documents and Settings\eccadm\Desktop\GLs.txt
Note: Give note pad path, which is saved on desktop
Name Venkat
Select Tabulator
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Select Field Names at start of file

Enter
Save
Select Assign Files
Execute (Ctrl+F8)
Save
One time go back
Select Read Data
Execute (Ctrl+F8)
Execute (F8)
Two times go back
Select Display Read Data
Execute (Ctrl+F8)
Enter
One time go back
Select Convert Data
Execute (Ctrl+F8)
Execute (F8)
Two times go back
Select Display Converted Data
Execute (Ctrl+F8)
Enter
One time go back
Select Create Batch Input Session
Execute (Ctrl+F8)
Execute (F8)
Enter
Select Run Batch Input Session
Execute (Ctrl+F8)
Select GLS
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Click on Process (F8)

Select Display errors only
Extended log
Enter
Click on Exit Batch Input (F12)
NBJKLB/ULG;UYFTG;7IORT;79RT7OU
203

SAP FI/CO (Finance and Controlling) Notes Version: SAP 6.0 ECC ECC: Enterprise Central Component

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SAP FI/CO (Finance and Controlling) Notes Version: SAP 6.0 ECC ECC: Enterprise Central Component

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SAP FI/CO (Finance and Controlling) Notes

Coverage of SAP FI:

SAP CO (Controlling): Controlling nothing costing/management accounting. SAP CO

Coverage of SAP CO:

ASAP Methodology (Road Map)

Phases in ASAP Road Map:

e. SAP PP (Production Planning)

Business Blue Print:

Go – Live and Support:

How to enter into System:

Note: Home screen/Initial screen of SAP is SAP Easy Access

Every screen consists of

Status bar: System will update status of the transaction

SAP has given two screens

2. Define Company code (Sister concern/subsidiary company)

3. Define Business Area

4. Assign company code to company

Definition: All company codes (sister concerns/subsidiary companies) are assigned to

5. Define Fiscal Year Variant

6. Assign company code to fiscal year variant

Create following financial years

7. Define posting period variant

8. Assign Variants to Company Code

9. Open and Close Posting Periods

10. Define Document Types

Document type : SA (G/L Account Document)

11. Define Field Status Variants

Note: Value date nothing but check clearing date

12. Assign Company Code to Field Status Variants

13. Edit Chart of Accounts List

14. Define Account Group

15. Define Retained Earnings Account

16. Assign Company Code to Chart of Accounts

17. Define Tolerance Groups for G/L Accounts

Save and enter

18. Define Tolerance Groups for Employees

19. Assign Country to Calculation Procedure

20. Deactivate Document splitting

G/L Master Records

Creation of G/L Master Record

Field Status Group G001

4. Interest Income A/C

SAP has given following standard posting keys

Posting keys in Accounts Payables

Posting keys in Accounts Receivables

Posting Keys in Asset Accounting

G/L acct D/C Amount in doc. Curr Value date

3. Display ledger balances

2. Post with foreign currency

G/L acct D/C Amount in doc. Curr Value date

1. Create Hold Document (Tcode: FB50)

3. Post held Documents (Tcode: FB50)

1. Create three parked documents

2. Post/Delete parked documents

Choose parked document (which parked document you want to post)

Amount in Doc. Curr

2. Add Screen Variant (Tcode: FB50)