FICO Business Blueprint

OF
Nishchay Group of Companies

1
SR NO. NAME
1 Introduction
2 Overview of finance setup
3 Company
4 Credit control area
5 Company code
6 Business area
7 Functional area
8 Consolidated business area
9 Fm area
10 Field status variant
11 Fiscal year variant
12 Posting period variant
13 Posting key
14 Document type
15 Document no. range
16 Charts of accounts
17 Accounts group
18 Vendor master data
19 Vendor list
20 Vendor tolerance group
21 Term of payment
22 Cash journal
23 Account receivable
24 Customer account group
25 Customer invoice
26 Incoming payment
27 Dunning
28 House bank master data
29 Automatic payment
30 Assets accounting
31 Asset master record
32 Asset sub number
33 Chart of depreciation
34 Depreciation key
35 Controlling
36 Profit center standard hiech.
37 Profit center
38 Cost center
39 Cost center hierarchy
40 GST
41 Create accounting key
42 Maintain tax percentage rate
43 Sap intergration
44 Financial statement version

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INTRODUCTION
The ‘FICO (financial accounting and controlling)’ module of SAP is the
back-bone, which records, collects, and processes financial
transactions or information on a real -time basis to provide the
necessary inputs for external (statutory) reporting. the module is
integrated with other modules (such as material management (MM),
sales &distribution (SD), human resources (HR), production planning
(PP), controlling (CO), etc.). the module FI has several sub-modules
that are tightly integrated.

Overview of the finance setup

The finance system document contains the business process details of
the finance module as of the document release date and also
describes briefly the maintenance required when there are changes in
organization structure, processes and master data.
The objective of this document is to provide base for configuration, if
any. It is recommended that not more than 2 key users be identified
as the application system administrators.
The following finance sub-modules will be implemented during this
implementation:
 Accounts payable
o Master data
o Posting documents
o Clearing
 Accounts receivable
o Master data
o Posting documents
o Clearing

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  Cash and bank
o Master data
o Posting documents
o Clearing
 Fixed assets
o Master data
o Posting transaction
o Depreciation
o Revaluation
o Information system

Client Information:

Company
A company is an organizational unit in accounting which represent a
business organization according to the requirements of commercial
law in a particular country. You store basic data for each company in
company definition. You only specify particular function when you
customize in financial accounting.
All company code for a company must work with the same operational
chart of accounts and fiscal year.
Define company transaction code: ox15

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SAP path: SPRO >enterprise structure >definition >financial
accounting> define company
Company Company name
NC01 Nishchay group of company

Credit control area:

The ‘credit control area’ in SAP helps administer credit management
function relating to customers. This organization unit is used both in
SD and FI-AR modules. By definition, you can have more than one
credit control area in a client, but each company code is assigned to
one credit control area. However, it is true that you can attach many
company codes to the same credit control area.
Like the company code, the credit control area in an SAP entity
through which you set and customer’s credit limit. There is one credit
control area per company code.
Define Credit Control Area Transaction Code: OB45

SAP Path: SPRO>ENTERPRISE STRUCTURE>DEFINITION >FINANCE

ACCOUNTING> DEFINE CREDIT CONTROL AREA>EXECUTE

Credit Control Area Description

NC01 Credit control area for Nishchay

Credit limit: 1,50,00,000.

Company code:

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A ‘company code< in SAP is smallest organizational unit for which you
can draw individual financial statements (Balance sheet and profit &
loss account) for your external statutory reporting, which are required
by law, are prepared at company code level. Is is denoted by a 4-
character alphanumeric code.
Further there is a business requirement to have a complete balance
sheet and profit and loss statement at company code level.
A ‘company’ in SAP is represented by a 4-character alphanumeric code
and usually represents the enterprise or the group company. A
company can include one or more company codes. The creation of a
company, in SAP, is optional
Define company code transaction code: ox02
SAP PATH :SPRO >enterprise structure > definition> FA>
edit,copy,delete,check company code
It is proposed to have company code as “NC00” for Nishchay group of
company
Company code Company name
NC01 Nishchay pvt. Ltd.

Business area:
Business area’ correspond to specific business segments of a
company, and may cut across different company code (for example,
product lines).they can also represent different responsibility areas
(for example, branch units). The business areas are optional in SAP
The business area is an organizational unit of financial accounting that
represents a separate area of operations or responsibility within an
organization and to which value change recorded in financial
accounting can be allocated.
Define business area Transaction Code: OX03
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SAP PATH: SPRO> enterprise structure> definition> FA> define
business area
Business area Description
NC01 CAR
NC02 BIKE

FUNCTIONAL AREA:
Function Areas in finance accounting are used to define the expenses
in a company according to individual function units. You can define a
Functional Area using the T-code (OKBD)
FUNCTIONAL area Functional area text
NCFA Manufacturing

Consolidation business areas:

Consolidation business areas are organizational units formed for a
fixed area of activity or responsibility within a group.
T-CODE: (OCC1)

CONSOLIDATION BUSINESS AREA DISCRIPTION

NCCB automobile

Financial management area (FM area):

Financial management area in SAP is an organizational unit that
organizes the company from aspect of cash management and funds
management. You can assign one or more company codes to a FM
area in SAP. The financial management area is taken from the
company when assign company code to an FM area in SAP.
T-CODE:(OF01)
FM AREA NGFM

Field Status Variant:

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Field Status Variant and Field Status Group are important controlling
feature of SAP. With the help of them we are able to control the fields
which will be required optional or suppressed during the transactions
in SAP(T-code : OBC4)
Assign Company code to field status variant(T-code : OBC5)

Field status variant Field status name

NC01 Field status for Nishchay

Fiscal Year Variant:

A Fiscal year is the period for which financial statements are
prepared. It generally consists of 12 months. A Fiscal year can contain
special periods that can be posted to for any year-end transactions
such as provisions, adjustments, etc. In SAP, fiscal year variant sets up
the fiscal year. Each company code is assigned a fiscal year variant.
Several Company codes can use the same fiscal year variant. The fiscal
year “V3” consisting of 12 Normal periods (from April to March) with
4 Special periods to manage year end entries, will be defined and
assigned to company code(T-code:OB29) (T-code:OB37) to Assign
Company code to a fiscal year.
Fiscal year variant Description
N3 Apr-march , 4 special periods
Posting Period Variant:
A Posting period is a period (either a month or a special posting period)
into which financial documents are posted. Multiple Company codes
can use the same posting period variant. Through a Posting Period
Variant, posting periods are opened and closed without referring
specifically to any Company code. Account Types, range of accounts,
authorization groups can be specified to control document postings in
a particular posting period. (T-code : OBBO)

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Assign Variant to company Code (T-code: OBBP)

Variant Name
NC01 Posting period for Nishchay

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

 A = Assets
 D = Customers

 K = Vendors

 M = Materials

 S = General Ledger Account

Asset Posting Keys

Posting Key Description Debit/Credit

70 Debit Asset Debit

75 Credit Asset Credit

DOCUMENT TYPE:
Document Type Key is used to distinguish between different business
transactions and to classify the accounting documents. It is also used
to determine the number range for documents and account types
such as asset, material, vendor, etc. for posting.
Common Document Type Keys are as follows −

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 Document Type Document Type Description

AA Asset Posting

AN Net Asset Posting

DR Customer Invoice

DZ Customer Payment

KA Vendor Document

KG Vendor Credit Memo

PATH: SPRO → SAP Reference IMG → Financial Accoun ng → Financial

Accounting Global Setting → Document → Document Header → Define
Document Types → Execute.

Document number range:

You can assign one or more document types to number range. The
number range is applicable to document type as mentioned in the
document posting and entry.
Path: SPRO → SAP Reference IMG → Financial Accoun ng → Financial
Accounting Global Setting → Document → Define Document Number Ranges →
Execute.

NO. YEAR FROM NUMBER TO NUMBER CURRENT NO. EXT

NC 2021 1 1000000 0

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Chart Of Accounts:
Chart of Accounts is an organized list of all general ledger accounts
used by one or more company codes. Multiple Company codes can
use the same Chart of Accounts. The Chart of Accounts shall be
maintained in English language.(T-code :OB13)

Chart of a/c Chart of a/c description

NC01 Charts of a/c for Nishchay

Account Groups:
The Account groups is a summary of accounts based on criteria that
effects how master records are created. The Account groups are
created to handle two things:(T-code:OBD4)
(a) The Number range.
(b) Field Status of the G/L Master Record

Chrt/account Account grp Name From acct To acct

NC01 CA Current assets 1000 2000

NC01 CL Current 2001 3000

liablities
NC01 DI Direct income 3001 4000

NC01 DE Direct 4001 5000

expenses
NC01 II Indirect 5001 6000
income
NC01 IE Indirect 6001 7000
expenses
NC01 T&D Taxes and 7001 8000
duties

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Vendor Master Data:
Each supplier would be creating as Vendor in the SAP System.
When creating a vendor account, an account group must be specified.
The account group determines. The interval for the account numbers
whether the number is assigned internally by the system or externally
by the user (type of number assignment).
Whether it is a one-time account, which fields are ready for input or
must be filled when creating and changing master records (field
status)

Vendor Master contains the folIowing segments:

1) General Data: It contains Name, Address and Search term,
Contact Person, Mail Id Telephone and Mobile Numbers
It also contains Vendor Is also a Customer, Vendor Bank Details,
Alternate Payee
2) Company Code Data: It contains Reconciliation Account to which
vendor transactions need to be posted or updated for trail balance
purpose. It also contains Payment method (e.g. Cash, Bank and
transfer) and payment terms, Withholding Tax retails.
3) Purchasing Data: It contains the currency to be used whenever
PO is raise on, Payment terms, whether PO is GR or IR based.

The information maintained in Vendor master would be copied

whenever business transactions are created or closed. (Example-
Currency, Payment terms and methods etc.)

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Define vendor master and Transaction Code: Fk01

SAP Path: -Go to Accounting -> Finance Accounting • Accounts

Payable -> Master Record -> Create

It is proposed to have the following Account Vendor Account Groups

for “Nishchay Group of Companies, Delhi” with Internal Number
Range.
Acct group Account groups From no. To no.
1000 Domestic 4001 4100
vendors
2000 International 4101 4200
vendors
3000 Other vendors 4201 4250

VENDOR LIST :
DOMESTIC VENDOR
VENDOR NO VENDOR NAME
400601 BALA JI PVT. LTD.
400602 BAJAJ PVT. LTD.
400603 TVS PVT. LTD
400604 TATA PVT. LTD
400605 GOOD YEAR PVT. LTD
400606 HYPERC
400607 MCLAREN PVT LTD.
400608 SUNOCO PVT LTD
400609 XTRAC INC. PVT LTD
400610 DALLARA PVT LTD
400611 KIRKEY RACING YABVICOTE
400612 WOODWARD MACHINE CORPORATION
400613 PWR NORTH America
400614 LONTUS PVT LTD

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 400615 THERMAL CONTROL PRODUCT
400616 FEBL PVT LTD
400617 AUTOZONE PVT LTD
400618 MAYLE PVT LTD
400619 VAICO PVT LTD
400620 DURALAST PVT LTD

INTERNATIONAL VENDOR
VENDOR NO. VENDOR NAME
400701 GKN PLC
400702 NTN CORPORATE
400703 TENNECO INC.
400704 IAC CORPORATE
400705 NSK GROUP OF COMPANY

ONE TIME VENDOR

vendor no. vendor name
400801 BHART YORGE LTD
400802 BOSCH PVT LTD
400803 SPARK MINDA CO.
400804 SAMVARDHANA MOTHERON GROUP
400805 AMTEK GROUP
400806 EXIDE GROUP
400807 FDEVAL MOGUL CORPORATION
400808 GABVIEL INDIA LTD
400809 JBM GROUP
400810 JMT AUTO LIMITED
400811 PCL GROUP
400812 SONA GROUP
400813 SUPARJIT GROUP
400814 WABCO INDIA LIMITED
400815 LEONI AG
400816 NEMAK GROUP
400817 DUPONT GROUP
400818 HONEY WELL PVT LTD
400819 TI AUTOMOBILES
400820 KSPG AG
400821 VIMAL JITH
400822 MS AUTO PARK
400823 GURU CAR DECOV
400824 SAE AUTO AIRCON
400825 NET COOL SERVICE CENTER

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 400826 WABCO INDIA LIMITED
400827 ENDURANCE LTD
400828 VARROCE LTD
400829 SUNDAGRAM CLAYTON LTD
400830 VECV GROUP

Vendor Tolerance Group

The tolerances are used for dealing with payment differences and
residual items that may arise when payment clearing is carried out. (T-
code: OBA3)

Payment Method
The payment method determines how payments are to be made,e.g.
by cheque,bank transfer or bill of exchange. Payment methods are
entered in the master records of vendors in order to specify how
payments are made.

Terms of Payment
The Terms of payment key can determine the following:
 The valid cash discount rate for an individual payment
and baseline date for the payment, or
 The terms of payment for installments payments.

Terms of payment can be attached to the vendor master

record. (T-code: OBB8)
Sr. no. Term of payment Text
1 Nc03 5 days 10%, 10 days
5%
2 Nc04 15 days 2%, 30 days
0%

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Cash Journal
This business process procedure is used to manage petty cash
transactions. Each physical cash float is represented by a cash journal
account, which is credit per currency. The intended purpose of the
cash journal is to record physical cash movement’ in/out of the float
keeping track of the closing balance, which should always equal to the
physical cash on hand. A single company code may have several cash
journals. The petty cash GL account is assigned to the Cash journal.
(T-code:FBCJCO)

Company CJCN GL Account Currency CJ Code Cash journal Name

NC01 100010 INR Petty cash for Nishchay

Account receivable:
The Accounts Receivable application component records and
controls all customers accounting data. Accounts Receivable is an
essential part of sales management. All postings in Accounts
Receivable are recorded directly in the General Ledger. Different G/L
accounts are updated based on the transaction like receivables,
down payments, bills of exchange, etc, involved.

Customer Account Group:

here are different types of customer account group that can be
created in Account Receivable in SAP FI.
PATH :
(TCODE- OBD2 )

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SPRO → SAP Reference IMG → Financial Accoun ng → AR and AP →
Customer Accounts → Master Data → Prepara ons for crea ng
customer master data → Define Account Groups with screen layout
(Customers) → Execute.

GROUP NAME FROM NO. TO NO.

NC01 DOMESTIC 4001 4200

CUSTOMER

NC02 INTERNATIONAL 4201 4400

CUSTOMER

NC03 ONE TIME 4401 4500

CUSTOMER

CREATE CUSTOMER MASTER

The master record contains data that controls how business
transactions are recorded and processed by the system. It also
includes all the information about a customer that you need to be able
to conduct business with him.
T-code (FD01)
PATH: Accounting → Finance Accoun ng → Accounts Receivable →
Master Records → Maintain Centrally → Create.
CUSTOMER INVOICE:
In this process, you post an open item for any customer. The
customer is to pay the invoice in cash. You then enter the payment in
the cash journal.

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T-code − FB70
Enter the following details: Customer ID of the customer to be
invoiced, invoice date, Amount for the invoice, Tax Applicable, and
tax indicator.
INCOMING PAYMENT:
When receive the payment from a customer then that payment is
the incoming payment. Once the customer has paid the billing
document, you post the incoming payment.
T-code − F-28

Dunning:
In SAP FICO, if a customer misses the payment for the outstanding
invoice by payment due date, you can generate a dunning
letter using SAP FICO and send it to the customer address to remind
him of the outstanding payment.
The dunning system enables to trace liable customers who have not
paid their open invoices within a given time span. It enables you to
handle the process from, for example, sending a reminder to
customers of their outstanding payments through referring such
customers to collections agencies.
Path : SPRO → SAP Reference IMG → Financial Accoun ng (New) →
AR and AP → Business Transac ons → Dunning → Basic Setting for
Dunning → Define Dunning Keys → Execute .

CODE(FPMP)

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 T-
DUNNING LEVEL DAYS IN ARREARS DUNNING CHARGES CO

1 1 100

2 8 150

3 15 200

4 22 250

House Bank Master Data:

Each Bank would be maintain as House Bank in SAP System Each
house bank in a company code is represented by a bank ID in the
SAP system and every account of a house bank by an account ID.
A House bank can have multiple accounts ID. (Accounts that are
maintained in the same bank would have one House Bank ID and
differentiated with individual Account ID)
House Bank and Account ID would have the following retails
1) Name of the Bank
2) Address of the Bank
3) Bank Account NUMBER

Automatic Payment:
Automatic Payment Program (APP) serves the purpose of posting
accounts payable like payment to a vendor based on vendor invoices
automatically.
APP is used to find out due/overdue invoices and to process a list of
customer and vendor invoices to make payments in one go. APP
cannot be used for all company codes from different countries.

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APP has the following categories −

 Setup all company codes

 Setup paying company codes
 Payment method per country
 Payment method per country code
 Bank Selection
 House Bank
Use the T-code FBZP to see all the following options.

Assets accounting:
Asset Accounting in SAP FICO can manage all your fixed assets,
irrespective of your industry and country.
SAP Asset Accounting process includes Acquisition, Asset
Capitalization, retirement, transfer, depreciation calculation and
posting of fixed assets.
Asset Classes Definition and Meaning
General Ledger Account Asset Master Asset classes are the most
important means of structuring fixed assets. Unlimited number of
asset classes may be defined in the system. Asset classes are used to
structure the assets according to the requirements of the
organization. Examples of Asset classes are Land, Building, Plant and
Machinery, etc. Each Asset Class will have a separate number range.
Asset Class will link the asset sub ledger to General Ledger Account.
Number Assignment The asset number uniquely identifies a fixed
asset. It always consists of the main asset number and the asset sub-
number. Each Asset Class will have a separate number range. There
are two ways of carrying out number assignment in the system:
 External number assignment
 Internal number assignment

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 In the case of external number assignment, the user explicitly
assigns an asset number to the asset. The system issues an error
message if a number is already assigned. In case of internal
assignment, upon saving the asset the next sequential number in the
relevant number range is assigned to the asset. The field status or
screen layout The asset master record in the asset accounting
contains a large number of fields because it is used for many
different purposes. To make it easier to maintain master data, screen
layout rules are defined and assigned to the asset class. Definitions at
KSL Asset classes such as Lease Hold Land, Free Hold Land, Building,
Plant & Machinery, Electrical Installation, Office Machinery,
Furniture, Vehicles, Intangible Assets, Leased Asset(Cars, Computers
& Software(intangibles). Internal number assignment will be defined
for all asset classes i.e., the assets will be managed with numbers
assigned by the system. For Statutory Reporting and Tax Reporting,
Individual assets of value less than Rs.5, 000 are considered as low
value assets and 100% depreciation is charged to those assets on the
date of capitalization.

Asset Master Record:

Asset Master Record contains all the existing, relevant information
about the fixed asset. The following are some of the important field
groups:
• General Data (Description, Quantity, etc.)
• Inventory
• Equipment Number
• Posting information (for example, capitalization date)
• Time-dependent assignments (for example, cost center, personnel
no.)
• Allocations (Evaluation Group 1 to 4 e.g. Location Department,
Section etc.)

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• Origin Data (Information regarding the vendor from whom the
asset has been acquired) or the internal order element from where
the settlement to the asset has happened.
• Insurance
• Depreciation Areas for managing different asset values under the
same asset master record.
• WDV & SL Methods of depreciation are available in addition to the
Shift 1, Shift 2, Shift 3 methods of depreciations.

Asset Sub-Number
Asset Sub- Number is used where an Asset consists of several
components. Asset sub-numbering allows the specification of a
number within a main asset number. Each sub-number could
represent a component of the main asset number or simply be used
for grouping purpose
Group Asset
The group assets group a number of assets for the calculation and
posting of depreciation. The Group Assets are assigned to the
individual assets in the specific Depreciation Area.
Chart of Depreciation
The chart of depreciation contains the defined depreciation areas. It
is predefined to contain the rules for the evaluation for assets. The
Chart of Depreciation is assigned to the Company Code. One company
code can be attached to only one chart of depreciation. The chart of
depreciation and the chart of accounts are completely independent of
one another.
Depreciation Area
Each depreciation area is set up to handle depreciation for a
particular purpose (e.g. book depreciation, tax depreciation, group
depreciation, etc.) Every depreciation area belongs to at least one

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chart of depreciation, and is managed independently from other
depreciation areas. However, we can define depreciation areas so that
it is possible to use one area to check the values of another area, or so
that one area can take over values from another area.

T code: – EC08

IMG Path: – SPRO >> SAP Reference IMG >> Financial Accounting >> Asset
Accounting >> Organization Structures >> Copy reference chart of depreciation
/ depreciation areas.

Depreciation Key
The depreciation key (valuation key) controls the valuation of the
asset in the particular depreciation areas. The depreciation key
consists of the following:

 Calculation method for the automatic calculation of interest,

ordinary and special depreciation

 Possibly a cut off value key

 Various control indicators

Sr. No. Depreciation Key Description

1 Calculation of depreciation in Straight Line Method
2 Calculation of depreciation in Written Down Value Method
3 For Asset Under Construction – 0 Value Depreciation
4 For unit-of-production depreciation

Residual Value: The residual Value of Leased assets (Cars-5% &

computers-1%) remaining assets Rs .1 is maintained for all assets for
Depreciation Area – 01.

Controlling:

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SAP Controlling (CO) is another important SAP module offered to an
organization. It supports coordination, monitoring, and optimization
of all the processes in an organization. SAP CO involves recording
both the consumption of production factors and the services
provided by an organization.
SAP CO includes managing and configuring master data that covers
cost and profit centers, internal orders, and other cost elements and
functional areas.
The main purpose of SAP controlling module is planning. It enables
you to determine variances by comparing actual data with plan data
and thus enables you to control business flows in your organization.
SAP CO Integration with Financial Accounting
Both SAP CO and SAP FI modules are independent components in a SAP system.
The data flow between these components takes place on a regular basis.
Data flows relevant to cost flows to Controlling from Financial Accounting. At
the same time, the system assigns the costs and revenues to different CO
account assignment objects, such as cost centers, business processes, projects
or orders.

Profit Center Standard Hierarchy:

SAP CO Profit Center standard hierarchy, known as tree
structure, that contains all the profit centers in a controlling area.
If you want to create/change the structure of a standard hierarchy, it
can be done at two places −

 In the Profit Center Accounting

 In Customizing for Profit Center Accounting
Use the T-code KCH1
PATH: Accounting → Controlling → Profit Center Accoun ng →
Master Data → Standard Hierarchy → Create.
PROFIT CENTER:

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SAP CO Profit Center is used for managing internal controlling. When
you divide your company into profit centers, it allows you to delegate
responsibility to decentralized units and treat them as separate
companies in a company. It also allows you to calculate key figures in
cost accounting like ROI, Cash flow, etc.
Profit Center is a part of Enterprise Controlling module and is
integrated with a new General Ledger Accounting.
Use the T-code KE51
PATH: Accounting → Controlling → Profit Center Accoun ng →
Master Data → Profit Center → Individual Processing → Create.
PROFIT CENTER PC_NISH
NAME NISH_PC
Long text NISH profit center
Department Production
Profit ctr. Group CASTD_NISH

Cost center;
A Cost Center is defined as a component in an organization that adds
to the cost and indirectly adds to the profit of the organization.
Examples include Marketing and Customer Service.
A company can classify a business unit in three ways −

 Profit center,
 Cost center, or
 Investment center.
The simple and straightforward division in an organization can be
classified as cost center because cost is easy to measure.
Cost Center Hierarchy:
The hierarchy of a cost center looks as follows −

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Create Cost Center:
To create a cost center, use the T-code KS01.
Cost center CC _Production
Valid from
Valid to 31.03.2022

ENTER

NAME Production_CC
Description Production Cost center

User responsible SAP user

Person responsible
Department production
Cost center catg. 1
Hierarchy area CCSTD_NC01
SAP FICO - Integration
SAP FI is commonly integrated with MM and SD component. SAP FI
Integration with other modules means how the system maps with
different modules and how the effect of those is passed into FI
Module.

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FI Integration with SD and MM
For SAP FI-MM, use the T-code OBYC
Example
In case of standard sales order, you create an outbound goods
delivery to the customer. Here movement 601 takes place. This
movement is configured in MM and movement of goods hit some G/L
account in FI.
Every such movement of goods hits General Ledger account in FI.
The accounts posting in FI is done with reference to the billing
documents like credit and debit note, invoice etc. created in SD and
hence this is link between SD and FI.
Tax determination: In case of a tax determination, there is a direct
link between SD and MM.
Movement Types
Material movements in MM is done with respect to a Movement
Type.

 Goods receipt – movement type 101

 Goods issue to production order – movement type 261
 Scrapping of goods – movement type 551
 Goods delivered to the customer – movement type 601
 Initial upload of stock – movement type 561
SAP allows us to use different G/L accounts for the various
movements for the same material by linking this movement type to a
transaction key and hence we can set G/L accounts as per movement
type.

GST(GOODS AND SERVICE TAX):

GST (Goods and Services Tax) is a comprehensive indirect tax on
manufacture, sale and consumption of goods and services
throughout India.

27
 Levied and collected at each stage of sale or purchase of good or
services based on the input tax credit method.
CREATE CONDITION TABLE
CREATE These
condition table combinations are provided for user
convenience, and you may design your own condition table based on
your company needs.

CREATE CONDITION TYPE

Transaction Code: OBQ1

Method: IMG > SAP Reference IMG > Financial Accounting > Financial
Accounting Global Settings > Tax on Sales /Purchases > Basic settings > Check
CALCULATION procedure >create.

Tax Type Condition Type Description

CGST NICG Input Central GST
SGST NISG Input State GST
IGST NIIG Input Integrated GST
CGST NOCG Output central GST
SGST NOSG Output State GST
IGST NOIG Output integrated GST

CREATE ACCOUNTING KEY

Transaction Code: OBCN

 Central GST
 Integrated GST
 State GST

Method: SPRO > IMG > Financial Accounting > Financial Accounting
Global Settings > Tax on sales/purchases > Basic settings > Check and
change settings for tax processing
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DEFINE TAX PROCEDURE

OBQ3 is the Transaction code. Add your GST condition types to the
TAXING Tax process.

Method: SPRO > IMG > Financial Accounting > Financial Accounting
Global Settings > Tax on Sales/Purchases > Basic Settings > Check
calculation procedure

ASSIGN GL TO ACCOUNT KEYS AND GL

Transaction Code: OB40

At the chart accounts level, assign GLs to transaction keys. For each
Tax code, separate GLs can be assigned.

ASSIGN TAX CALCULATION PROCEDURE TO COUNTRY (INDIA):

Transaction Code: OBBG

Method: IMG > Financial Accounting > Financial Accounting Global
Setting > Tax on Sales/Purchases > Basic Settings > Assign country to
calculation procedure.

MAINTAIN TAX PERCENTAGE RATES:

TAX RATES
CGST INPUT 9%
SGST INPUT 9%
IGST INPUT 18%
CGST OUTPUT 9%
SGST OUTPUT 9%
IGST OUTPUT 18%

Financial Statement Version:

General Ledger accounts can be used as per legal regulations to
generate the final statements. Financial statement versions are used
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to create the financial statements, to run account balance reports
and for General Ledger accounting planning.
You can also define multiple financial statement versions to generate
financial statements in different formats. Follow the steps given
below to create financial statement versions −
T-code (OB58)
PATH: SPRO → SAP Reference IMG → Financial Accoun ng →
General Ledger Accounting → Business Transac ons → Closing →
Document → Define Financial Statement Versions → Execute
Provide the following details −
 Enter the Fin. Stmt. Version.
 Enter the Description of the financial statement version.
 Maint. Language − Enter the language key in which you display
texts, enter texts, and print statement.
 Item Keys auto − It tells keys of financial statement items are
assigned manually or automatically when the financial
statement versions are defined.
 Charts of Accounts − All accounts from this chart of accounts
COA can be assigned when you define the financial statement.
If you do not specify a chart of accounts, accounts from several
charts of accounts can be assigned when you define the
financial statement.
 Group Account Number − Enter this Indicator that specifies that
the group account numbers should be assigned instead of the
account numbers when you define the financial statement
version.
 Fun. Area Parameter − This indicator is used to make it possible
to assign functional areas or accounts in the financial statement
version. Once the above fields are defined, you can click on the
save configuration and to generate change request number. To

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edit this Financial Statement version, click on Fin. Statement
items → you can maintain nodes in version.

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