Whats is the line Item ? line item is nothing but ..business transaction posted in a document.

how many chart of accounts in company code single chart of accounts to company code List the Basic 24 Steps for FI configuration. 1. define company (ox15) 2. define company code (ox02) 3. define business area (ox03) 4. define funtional area 5. assign company code to company (ox16) 6. define fiscal year variant (ob29) 7. assign fiscal year to company code (ob37) 8. define posting period variant (obbo) 9. define opening & closing posting period variant (ob52) 10. assign company code to posting perid variant (obbp) 11. define chart of accounts (ob13) 12. assign company code to chart of account (ob62) 13. define account group (obd4) 14. define retained earnings account (ob53) 15. define document types (oba7) 16. create number ranges (xdn1) 17. define posting keys (ob41) 18. define field status variant (obc4) 19. assign field status veriant to comapny code (obc5) 20. define tax procedure (obq3) 21. assign tax procedure to company code (obbg) 22. define tolerance group for g/l accounts (oba0) 23. define tolerance group for employees (oba4) What is the difference between Asset Accounting and Assets Class? We define asset class in asset acounting. The asset class is the main criterion for classifying assets. Every asset must be assigned to only one asset class. Whenever you create an asset master you need to mention the asset class for which you are creating the required asset. What is the meaning of Account determination in Asset Accounting? The account determination key defines the accounts in Financial Accounting that should be posted during asset transactions, where we are using country chart of accounts? how the values of sd,pc, om,ps,fi ect. flows into copa?? pls tell the work flow in fico? how to enrty in Dunny run entry in Sap fi/co? What is the full form of miro?? What is the full form of migo?which department will prepare this?? Error in SAP When I posting in F-02, F-22, Balancing field segment in the line item 001 not filled? What is the purpose of 0 (zero)tax code?? what is the use of UTILIZATION DETERMINATION IN CIN? give some important tables related to sap fico.Ex:-GL/AP/AR/AA/CO?

How can we create a tax code in SAP? Transaction: FTXP This area gives you a step by step explanation on how to create a tax code in SAP. Later on these tax codes must be used in the creation of condition tables such as for MWST. - Go to transaction code FTXP and select the country for which you need to create a tax code. This country is automatically linked to the Tax Procedure which has been set up in the menu path [IMG - Financial accounting - Financial accounting global settings - tax on sales/purchases - basic settings - Assign country to calculation procedure]. - Enter in the field tax code. This must be a 2-digit alphanumeric code i.e. A5, 55, BB, etc.. Before SAP 4.5 (I believe) you could use other special characters such as @, ? etc But this is no longer applicable. See OSS note 212806. SAP will ask you to complete other additional fields such as:
y y y y

Description of the tax code: please give a clear description. Define the tax type: define whether the tax code is relevant for input or output tax. Indicator which determines that an error message should be issued if the tax amount is not correct. It is recommended to flag this. Eu code: One of the most forgotten parameter. If you do not set this parameter at 1? then all transactions with this code will be not picked up in the ESL listing of that specific country. This code 1? represents all the Sales from one EU country to another EU country. The target tax code fields are used in case of deferred taxes. This is applicable for example in France. The VAT needs to be paid for example not when the invoice is issued but when the customer pays the VAT. There are here again special programs available in SAP for deferred taxes. Reporting country: this field needs to be completed when you are using the plants abroad functionality. This means that when you as a German company have a Belgian VAT number and you have sales in Belgium (+ you need to submit a VAT return in Belgium) , then of course these invoices need to be booked in SAP with a Belgian tax code.

- Further in the menu you can also allocate the amount where this specific tax code is used to a certain tax account. The tax type fields such as Base Amount, Input tax, Output Tax can be determined via the calculation procedures. Calculation procedures are defined in the IMG at [Financial accounting - Financial accounting global settings - tax on sales/purchases - basic settings - Assign country to calculation procedure]. Here you will need to define also the calculation levels. For example the Output tax is level 125 and the output tax will be calculated on the basis of the base amount. Therefore you put for the output tax in the field from level 100. The level of Base amount is 100. You do the same for the others. - Account Keys.
y y y y

NVV: The non deductible VAT is automatically added to the expenses account NAV: Indicate for this key a separate account for the non deductible VAT ESA: Output tax in case of Acquisition of EU goods ESE: Input tax in case Acquisition of EU goods Last but not least you also need to complete the tax rate field.

- Tax Percentage & GL Account assignment Tax percentage can be maintained in two ways & that depends upon the Tax procedure that has been followed i.e. if tax procedure is formula based then percentage can be maintained in FTXP only, where as if the procedure is condition based then percentage has to be maintained under the identified condition type. Once done GL accounts has to be assigned under OB40 for automatic posting of tax amounts SAP FI Functional Consultant Responsibilities What is the meaning of SAP FICO Functional and SAP FICO Technical? SAP FICO Functional means functional knowledge, by which one can proceed in terms of functional process with FICO area as well as FICO configuration knowledge. Whereas SAP FICO Technical consultant may be an ABAPER, who have short of knowledge of FICO configuration and functional knowledge as well and can proceed for technical jobs e.g. reports development, client requirement, system modification etc. To become a Pure Hard Core FI functional consultant Q: Can via T.Code FBL1N by selecting vendor with plant reference in selection using search help field group. Plant is not a field for finance or in sap it is FI module - this is for PP and MM module, In case required, please define that as FI object for FI reports - like BA and so on. Configure the plant as a BA and in all FI places you can capture BA in line items of vendors. Spent little time on going through various standard reports of SAP which are very rich in itself for each report it has options of all fields of master data , all fields of FI document means around in my opinion around 400+ options to select. Hence we should first get an idea of fields in masters and documents and how they are updated. To become a good consultant.... Every report of SAP standard is a gem - but we always look for FAST FOOD without understanding the quality of how standard is the solutions.. Spent time in understanding - there are lot of chapters available for reading . Suggestions ... Understand the Finance function first upto closing of books and management reportings done in a practical way. Go to sap img screen - you will find all options are there... If you go reverse way , sitting inside the car and asking - anyone can help me in understanding what is the wheel in front of driver used and how to use it?? All the best - take it in the right spirit for a successful future Which tcode to edit the design of the report in ke30? Why when execute the report in ke30, no variant and all report not able to run despite parameter entered? In COPA, before creating report, you have to define forms. For forms check this t.codes:

KE34 - Define Forms for Profitability Reports KE94 - Define Forms for Reports Based on Line Items Reports check this t.codes. KE31 - Create Profitability Report KE91 - Create Report Based on Line Items KE32 - Change Report

In KE30 Profitability analysis reports, how do I include CoCode as selection parameter in GRMARG001C & GRMARG004B These are custom reports created in your Op Co. Option 1. Call the form using KE35 and check if the Company Code is assigned to any of the columns or rows by double-clicking these. If it has been assigned and if there is a Fixed Value, rather than a Variable, you may then have to change that to a variable. The Company Code will then appear on your selection screen by default. Option 2. Call KE35 and check if the Company Code has been assigned in the General Selections screen. chances are it is not. In which case, include it from the list of Characteristics to your right. Provide a variable value, so the system prompts for an entry while running the report. Option 3. Call up the report using KE32 and check if the Company Code characteristic appears under "Variables". Make sure that small box next to it is checked (Entry at Execution). This should bring up the field during report run. In KE96 pick the form that relates to your report. Then EDIT- Gen. Data Selection- . Move the Characteristic you want to the left in the selected characteristics.

Where to find the transparent tables where those data(s) are stored in tcode KE30 PA transparent tables are in the following; xxxx = operating concern Table COEP CE1xxxx = actual line items table COEJ CE2xxxx = plan line items tables COSP COSS CE3xxxx = segment level CE4xxxx = Profitability segment.

Check individual data for KE30 KE24 - Display Actual Line Items FI Errors and Probable Solutions These are some of the issue for which probable solutions are given, hope they are helpful : Scenario 1: I have configured FBZP, Fi12 for house bank. But when I am doing payment run in F110 I am getting following error: Company codes X1YZ/X1YZ do not appear in proposal 05/03/2006 REMI2. Diagnosis No data exists for the specified paying company code X1YZ and the specified sending company code X1YZ in payment proposal 05/03/2006 REMI2. System response The payment proposal cannot be edited. Procedure Check the flow trace and payment proposal list in order to determine why the specified company codes are not contained in the proposal Solution : * Thats generic error for payment run, check whether there are any due items as on date (tcode fbl1n). You can also change the baseline date there and rerun it. if you still get same error.. Check the proposal log, you will find the reason. * Try to see first whether any open items exist. By using FBL1N. Scenario 2: How to make the payment through automatic payment program, through F-110 .What are the prerequisites? Solution : For Down payments to be paid using APP we have create a Down Payment request F-47. Scenario 3: While doing APP, after, " the payment proposal has been created message " if edit proposal is selected, I am getting the error as "Company code ABC/ABC do no appear in the proposal " Solution : This type of error comes when your Payment proposal doesn't have any items to process. Check the parameters and ensure invoices are due as on run date. Scenario 4 : While posting customer invoice (FB70) why system asks for G/L account? As per accounting rules customer is debited and Customer reconciliation a/c is credited that

ends double entry book keeping rule. Why one more G/L account on top of Recon a/c, which is posted automatically? Solution : * Entry gets posted to Customer a/c through reconciliation account. You have to give a GL a/c for revenue. Your entry would be Customer (Reconciliation a/c) To Revenue Cr

Dr

* Reconciliation is a fictious entry so you cannot consider as an entry to be entered by the user. This rule is derived from the fact that 'we cannot enter/post directly to RECON account'. That is why system needs a GL account to make the account balance as zero. Manual entry could be: Customer a/c Dr To Domestic Sales a/c (Sales invoiced posted) Recon entry is automatically made once you post this entry since you have configured your RECON in the IMG. Scenario 5 : I am unable to figure out how to attach my GL Accounts to my company code [copied chart of accounts, have my own company code, assigned my company code to the chart of accounts]. Solution : You can attach the GL Accounts by just filling the details in the company code segment of the GL A/c. Hence you can use that gl a/c for your co code. But that would be individually creating the accounts. Right?? How about creating all accounts at one shot. Create in FS00 Scenario 6 : Difference between Standard Hierarchy and Alternate Hierarchy. Solution : Standard Hierarchy is basic structure of company but alternative hierarchy is just for reporting or temporary usage. Scenario 7: I have created depreciation keys (diminishing balance) and assigned to asset classes respectively. But at the time of asset master creation the system ask for Useful Life of the asset while my understanding is that in diminishing balance method there is useful life, just percentage is defined. Solution : Useful life is required for depreciation change. Normally a company with WDV depreciation may want to write off its assets which have crossed their useful life in 2 or 3 installments. This is achieved by depreciation change, where after useful life, a new method takes over.

Scenario 8 : I have some conceptual problem in Internal Order. Solution : Internal order can only take a statistical posting & cost centre shall take a true posting when the relevant internal order is defined as statistical I/O IN T. code KO01(CONTROL DATA ) tab. So while making a posting in FB50 and assigning both I/O & COST CENTRE as relevant cost object in the transaction you shall get the stated status of these 2 cost object. Scenario 9 : In fb50, in the details tab, only if I tick 'calculate tax' will the tax get calculated. Our user wants this to happen always (by default), i.e. he does not want to tick this for each transaction. Is there any setup to be done for the tax to get calculated always? Solution : Even now you are not clear. T_Code FB50 is used for posting GL account only. I fail to understand how you can calculate tax which is generally from purchase / vendor or Sales / Customer oriented through FB50. In case of local distribution, if we forget to pay taxes on certain items and we need to pass tax entries, then such a case is needed. This can be achieved thru default parameter id for that particular user through transaction code SU3. In SU3, in Parameters Tab put "XTX" in Parameter ID column and in Parameter Value column put "X". Scenario 10 : We have an issue here where by the system is calculating the tax for an invoice with a wrong tax base amount. How do i change the tax base amount? I get the tax rates from VERTEX and they are showing right. Where does the system pull this tax base amount for an Invoice and how can I change it. Solution : Kindly check this: spro - financial accounting - f.a global setting - with holding setting - extended with holding setting -- calculation -- with holding tax type . Check your withholding tax type, go in it and check the setting. Inventory Accounting Entries All the Inventory transactions will look for the valuation class and the corresponding G.L. Accounts and post the values in the G.L accounts. For Example: during Goods Receipt Stock Account - Dr G/R I/R Account - Cr Freight Clearing account - Cr Other expenses payable - Cr During Invoice Verification

G/R I/R Account - Dr Vendor - Cr When the Goods are issued to the Production Order the following transactions takes place: Consumption of Raw Materials - Dr Stock A/c - Cr When the Goods are received from the Production Order the following transactions takes place: Inventory A/c - Dr Cost of Goods Produced - Cr Price difference - Dr/Cr (depending on the difference between standard cost and actual cost) When the Goods are dispatched to customer through delivery the following transactions takes place: Cost of Goods Sold - Dr Inventory A/c - Cr When the Goods are issued to a Cost Center or charged off against expenses the following transactions takes place: Repairs and Maintenance - Dr Inventory A/c - Cr When the Goods are stock transferred from one plant to another, the following transactions takes place: Stock A/c - Dr (Receiving location) Stock A/c - Cr (Sending location) Price difference - Dr/Cr (due to any difference between the standard costs between the two locations) When the stocks are revalued, the following transactions takes place: Stock A/c - Dr/Cr Inventory Revaluation A/c - Cr / Dr When the Work in Progress is calculated the following transaction takes place: Work in Progress A/c - Dr Change WIP A/c - Cr Physical verification /shortages and excesses : Shortages/excesses on authorizations shall be adjusted using the physical inventory count transaction. Sales and Distribution Accounting Entries

INVOICE GENERATION Invoices will be generated at the Smelters and stock points. The accounting entries for the sale of goods despatched will flow from the Sales invoice generated in SAP Sales and Distribution module. The following entries shall be passed Customer Account Dr Revenue Cr Excise Duty Payable Cr Sales Tax Payable (local or central) Cr Note: As mentioned above in the FI document, which is created in the background, the SD invoice number shall be captured. However as per the current accounting procedure the accounting entry passed is as follows :Customer Account Dr Revenue Cr Excise Duty Billed Cr Sales Tax Payable (local or central) Cr Excise duty paid a/c Dr Excise duty payable a/c

Cr

EXPORT SALES There have been very few export transactions in the past. SAP system will be designed to handle export business. Exports are mainly from the mines and will be handled at the mines, however the documentation part will be taken care at the Head Office. The accounting entry is: Customer Account Dr Revenue (Exports) Cr The realisation of export sales will be directly credited to the bank. The accounting entries will be as follow: Bank Dr Customer Cr Exchange Fluctuation Dr/ Cr The accounting entries will be: Rebates/Discounts Dr Customer

Cr

DEBIT MEMOS Debit Memos shall be issued in case of price difference, sale tax difference and interest on usance period and overdue payments. The accounting entries for two possible scenarios are as follows: Price Undercharged: Customer Account Dr. Revenue Cr. Sales tax payable Cr. Sales tax undercharged Customer Account Dr. Sales tax adjustment Cr. Interest on delayed payments/usance period and other charges Customer Account Dr. Interest Others Cr.

In case of HZL a complete retirement or a partial retirement of asset is done. The system uses the asset retirement date to determine the amount to be charged off for each depreciation area. The existing accounting policy is to provide depreciation for the full quarter in which the asset is sold/discarded, recommended that the depreciation be provided from the date of acquisition on prorata basis . Accounting entry for sale of Asset to customers: Customer Account Dr Asset Sale Cr Accumulated Depreciation Dr Loss on Sale (if applicable) Dr Asset Sale account Dr Asset account Cr Profit on sale (if applicable) Cr Note: In case of any Sales Tax /Excise duty applicable for this transaction, SAP will calculate the Sales Tax/Excise Duty based on the Tax Code selected the entry is posted to the GL Account (Sales Tax Payable) Accounting entry for sale without a customer: Accumulated Depreciation Dr Loss on Sale (if applicable) Dr Asset Sale account Dr Asset account Cr Profit on sale (if applicable) Cr Accounting entry for scrap Accumulated Depreciation Dr Loss on Sale of Assets Dr Asset account

Cr

SALE OF SCRAP The sale of scrap (non-stock) shall be mapped as a direct manual FI entry. The customer will be created as a FI customer. No Logistics module will be involved in the process. A FI Invoice will be prepared for the sale of scrap with the following entries: Customer Dr Sale of Scrap Cr Excise Duty Payable Cr ADVANCES FROM CUSTOMERS Advances are received from the customers against delivery. These advances will be recorded in a special general ledger account. The accounting entry for the same will be: Bank Account Dr Advance Customer Payments Cr These advances will be later on adjusted against the invoices raised on the customers. Advances can be adjusted against more than one invoice at the time of clearing of the invoices against advances. Adjustment of Advances Customer Account Advance Customer Payments Dr

Cr

A financial document would be created for each Bank Guarantee received and this document number will be referred to in the Sales Order which would then monitor the value and the validity of the of the Bank Guarantee instrument wise while doing the billing.The letter of credit /Bank guarantee given will be recorded as a noted item. Accounting Entry for Goods receipt Stock/Inventory account GR/IR account Freight clearing account

Dr Cr Cr

Accounting Entry on invoice verification of supplier GR/IR Dr Vendor account Cr Accounting Entry on invoice verification of freight vendor Freight clearing account Dr Freight Vendor account Cr GOODS RECEIPT Based on the Purchase order and the Quantity actually received Goods Receipts (GR) will be done. Based on the GR done the following accounting entry will be passed in the Financial Accounts RM/PM Stock Account Dr GR/IR Account Cr Freight Clearing Account Cr EXCISE INVOICE VERIFICATION On receipt of the excise invoice cum gate pass the following entry will be passed RG 23 A / RG 23 C Part 2 Account Dr Cenvat Clearing Account Cr Vendor Invoice Verification Accounting Entries VENDOR INVOICE VERIFICATION The detail process related to invoice verification is documented in Materials Management Document. On receipt of vendor bill the following entry will be passed: GR/IR Account DR Freight Clearing Account DR Cenvat Clearing Account DR Vendor Account CR Invoice Verification for Foreign Vendor On receipt of vendor bill the following entry will be passed: GR/IR Account Vendor Account DR CR

Invoice Verification for Custom vendor On receipt of Vendor bill the follo wing entry will be passed:

1) RG 23A/RG 23C Part 2 A/c (CVD) A/c DR Cenvat Clearing A/c CR 2) G/R I/R A/c DR Cenvat Clearing A/c DR Vendor A/c CR 3) Cost of Material A/c DR Vendor A/c (Customs) CR Invoice Verification for Freight / Clearing Agent Cost of Material A/c DR Vendor A/c (Clearing Agent) CR Invoice Verification for Octroi Expenses Cost of Material DR Vendor A/c (Octroi) CR TDS (Work Contract Tax) for Service Orders shall be calculated and deducted accordingly. The following entry will be passed on bill passing: Expenses Account DR Vendor Account CR TDS Account CR The material shall be returned to the vendor using the Return to vendor movement type in SAP Creating a Return PO These transactions will be processed in the MM module. The accounting entries will be : Returns after GRN GR/IR A/c Dr Stock A/c Cr The accounting in respect of debit / credit memos for FI vendors, the process will be similar to that of invoice processing. The accounting entries will be: On issue of debit note Vendor Account DR Expenses Account CR In respect of import vendor - capital goods exchange differences are to be accounted manually through a Journal Voucher for capitalization. Exchange rate differences will be accounted at HO. An example of the accounting entry in this case shall be: Invoice entry @ 40 INR: 1 USD Asset / Expense A/c DR 100 Vendor A/c CR 100 Payment Entry @ 41 INR: 1 USD Vendor A/c DR 100 Bank A/c CR 110 Exchange rate loss Capital A/c DR

10

Asset A/c DR 10 Exchange rate loss Capital A/c

CR 10

A new G/L account shall be created for the special G/L transactions. The accounting entry for making the down payment shall be: Advance to supplier account Debit Bank A/c Credit When the invoice is booked the following entry is passed GR/IR account Debit Vendor account Credit Clearing of Invoice against Down Payment Vendor A/c Debit Vendor down payment account Credit Wherever, TDS is applicable, the TDS will be deducted at the time of down-payment to the vendor. Down Payment for Capital (tangible) Assets Down payment to vendors for capital acquisitions is to be reported separately in the Balance Sheet under the head Capital Work in Progress. Hence down payment for capital goods would be tracked through a separate special general ledger indicator. The procedure to be followed is: Definition of alternative reconciliation accounts for Accounts Payable for posting down payments made for Capital assets Clearing the down payment in Accounts Payable with the closing invoice. A new G/L account shall be created for the special G/L transactions. The accounting entry for making the down payment shall be: Vendor Advance for Capital Goods Account Debit Bank A/c Credit When the invoice is booked the following entry is passed Asset A/c / Asset WIP Debit Vendor A/c Credit Clearing of Invoice against Down Payment Vendor A/c Debit Vendor Advance for Capital Goods Account Credit The Following are the TDS Rates (to be confirmed with the recent changes) Particulars Tax Rate Surcharge Rate Total Contractors 194 C 2% 5% 2.10% Advertising 194 C 1% 5% 1.05% Prof. Fees 194 J 5% 5% 5.25% Rent Others 194 I 15% 5% 15.75% Rent Company 194 I 20% 5% 21% Commission 194H 5% 5% 5.25% Interest - Others 194 A 10% 5% 10.50% Interest Company 194 A 20% 5% 21% Special Concessional Tax Works Contract Tax

SECURITY DEPOSITS /EARNEST MONEY DEPOSIT RECEIVED FROM VENDORS Bank A/c DR Security Deposit Vendor CR EMD to give the age so as to enable the same to be transferred to unclaimed EMD account. PAYMENT OF TOUR ADVANCE DOMESTIC TOURS Employee Advances will be paid by the Accounts Department unit wise based on the requisition or recommendation of the respective departmental head. Employee Travel Advance A/c DR Cash / Bank Account CR Reversal Entry In Accounting Why do we pass reversal enteries? At times some incorrect documents might have been entered in the systems. If you have entered an incorrect document, you can reverse it. Note that R/3 can reverse a document only if the following conditions are met: - Contains no cleared items - Contains only vendor, customer, or G/L line items - Was posted within the FI system - Contains only valid values, such as business areas, cost centers, and tax codes Ordinarily, you post a reversing document in the same period you posted the original document. The period of the original document must be open to post a reversing document. If the period is not open, you can overwrite the posting date field with a date in an open period, such as the current period. Reversal can be done individually - FB08 or Mass F.80. If the document to be reveresed contain cleared items, then cleared item must be reset before the reversal of document. Below given is the recommended posting key to be used for particular transaction by SAP. If we use posting key according to this then standard reports set /given by SAP will come with accuracy. This is for information By: Abhijit 1-19 customer 20-39 Vendor 40 & 50 GL 70 debit Asset 75 credit Asset Posting key 21 22 24 25 Name Credit memo Reverse invoice Other receivables Outgoing payment Credit /Debit Account type Debit Vendor Debit Vendor Debit Vendor Debit Vendor

26 27 28 29 31 32 34 35 36 37 38 39 Posting key 01 02 03 04 05 06 07 08 09 11 12 13 14 15 16 17 18 19 Posting key 40 50

Payment difference Clearing Payment clearing Special G/L debit Invoice Reverse credit memo Other payables Incoming payment Payment difference Other clearing Payment clearing Special G/L credit Name Invoice Reverse credit memo Bank charges Other receivables Outgoing payment Payment difference Other clearing Payment clearing Special G/L debit Credit memo Reverse invoice Reverse charges Other payables Incoming payment Payment difference Other clearing Payment clearing Special G/L credit Name Debit entry Credit entry

Debit Debit Debit Debit

Vendor Vendor Vendor Vendor Credit Vendor Credit Vendor Credit Vendor Credit Vendor Credit Vendor Credit Vendor Credit Vendor Credit Vendor

Account type Debit Customer Debit Customer Debit Customer Debit Customer Debit Customer Debit Customer Debit Customer Debit Customer Debit Customer Credit Customer Credit Customer Credit Customer Credit Customer Credit Customer Credit Customer Credit Customer Credit Customer Credit Customer Credit /Debit Account type Debit G/L account Credit G/L account

Banking Transaction Financial Accounting Entries Settlement Of Tour Advances Domestic/Foreign 1) Settlement of advance will be done by the Accounts Department based on the Travel Expense Statement submitted by the employee, which is approved by the Concerned Department Head. 2) Expenses Account DR Cash/Bank Account DR (if, refund) Employee Advance Account Cash/Bank Sub ledger Account 3) Banking Operations - Maintenance Of Bank Master 4) A House Bank is a combination of a Bank and a Branch. Account id is the account number. A house bank can have multiple account IDs.. There could be a main account as also payable

CR CR (if, payable)

account, which will be defined as separate account ids. General Ledger accounts have to be created for each combination of a house bank and account ID. The bank master details are to be provided by HZL. 5) General Ledger accounts have to be created for each account ID in the house bank. Bank Account Master data will be maintained by the Finance Department centrally. 6) Each house bank and account ID combination shall have one main general ledger account and several sub accounts mainly based on broad transaction types. These sub accounts are necessary to facilitate automatic bank reconciliation process in R/3 system. Bank Accounting 7) The accounting entries will be generated automatically according to the posting rules attached to the Transaction type. The following accounting entry is passed by the system in respect of cheque deposit on account of collection from domestic customers. Bank cheque deposit account Customer account Debit Credit

8) In this case, a bank sub account is selected based on the transaction code entered by the user. The customer account is cleared i.e. invoice is cleared against the receipt. In respect of any other deposits, the relevant accounts to be credited will depend on the nature of transaction. 9) Payment against bills for collection. Based on the bank advices falling due on a particular day one payment advice is made debiting the vendors and crediting bank. Cheque Deposit - Customer Receipts 10) All cheques received from customers shall be accounted at the point of receipt. The entry posted shall be Bank Sub account Dr Customer Account

Cr

Cheque Deposit - Other Than Customer Receipts 11) All other receipts will be accounted through the Incoming Payment Transaction of the Accounts Receivables module. Cheque Bouncing Other Than Customer Receipts 12) Based on the information of cheque bounced from the Bank, the accounts Department will pass accounting entries for the cheque that have been bounced. The procedure to handle bouncing of a cheque has been discussed under the following 13) Reset the clearing document If the document has been cleared i.e. an open outstanding item has been cleared against an incoming receipt, then the clearing document has to be reset to its original status of open item. This process is known as reset of cleared document. 14) Reverse the entry passed for cheque deposited earlier Once the document has been reset it will be reversed. The following accounting entry will be passed. FI Customer DR Bank cheque deposit account CR

15) In case of cheques being damaged while printing, the concerned cheques no. has to be voided and the payment will be rerun. Bank Reconciliation 16) The Bank reconciliation process is based on the entries passed through the Bank sub account and main account. The process is dependent on the Bank Statement received from the Bank that will be entered into SAP. Accounting rules are to be defined for each transaction type and posting rule for posting accounting entries as per bank statement. Bank statements to be uploaded into SAP. 17) Bank Main account balance is the actual balance as per the bank statement whereas the Bank sub accounts denote the reconciliation items. These sub accounts show those entries, which will flow from the sub account which are not cleared in the bank statement. 18) Adding or subtracting the Bank sub accounts will help in preparing the Bank reconciliation statement. 19) The following scenarios would explain the reconciliation process: - Cheque received from customer - Cheque issued to vendors - Cheque received from Other than Customers - Direct Debits in Bank Statement - Direct Credits in Bank Statement - Fund Transfer between Bank Accounts Cheque Received From Customer 20) Accounting entry at the time of cheque deposit entry Bank Cheque deposit account Debit Customer Credit 21) Accounting entry after cheque has been cleared in the Bank statement Main Bank account Debit Bank Cheque deposit account Credit 22) The clearing criteria for updating the bank main account and bank sub account will be amount and document number which will be captured in the allocation field of the bank sub account. The items, which have not been cleared in the bank statement, will remain open in the bank sub account and will form part of the bank reconciliation statement. Cheque Issued To Vendors 23) Accounting entry at the time of cheque issue Vendor account Debit Bank cheque payment account Credit 24) Accounting entry after cheque has been presented in the Bank Bank cheque payment account Debit Main Bank account Credit 25) The clearing criteria used for updating vendor account and Bank cheque payment account will be amount and cheque number. The cheques presented to the bank and are cleared are transferred to the bank main account. The remaining cheque issued will form part of the bank reconciliation statement.

Direct Debit In Bank 26) Direct debit instructions will be given to the bank for example, LC payments or certain bank charges are directly debited in the Bank Statement. In this case accounting entry is passed only after the entry is passed in the bank statement. Vendor / Expense Account Debit Bank clearing account Credit Direct Credit In Bank 27) Customer receipts are sometimes directly credited in Bank. E.g. export receipts. In this scenario accounting entry is passed only at the time of bank statement entry. The following accounting entry is passed Bank clearing account Debit Customer account Credit Main Bank A/c Debit Bank Clearing A/c Credit Bank Fixed Deposits 28) HZL has a practice of converting any amount above Rs. 1 crore in its Main bank account, to a fixed deposit subject to a minimum of Rs. 1.01 crores. The FDR number can be filled in one of the fields available in the accounting document. Cheque Management / Cheque Printing Cum Advice 29) The function of cheque management will enable printing of cheque through SAP. Cheque series will be defined for a combination of a Company code and Bank Account. Cheque numbering will be sequential order. 30) Cheque series for automatic payment has to be in sequential order. Cheque printing facility will be available for the bank account. Cash Management / Liquidity Analysis 31) The day-to-day treasury process in a company includes a number of transactions. This includes determining the current liquidity using bank account balances (cash position), determining open receivables and liabilities (liquidity forecast), manually entering planned cash flows (payment advice notes), through to clearing bank accounts, that is, collecting multiple bank account balances on one target account. 32) The main objective is to ensure liquidity for all due payment obligations. It is also important to control and monitor effectively the incoming and outgoing cash flows. 33) This section shows you the overall liquidity status of your company by displaying together the cash position and the liquidity forecast. The cash position is used in Cash Management to show the value-date-dependent bank accounts and bank clearing accounts, as well as the planned cash flows (payment advice notes). The liquidity forecast comprises the incoming and outgoing cash flows, as well as the planned items on the sub-ledger accounts. The Steps For Interest Calculation of Bank What are the steps involved for the rate and calculation of bank interest without posting? By : Vicent

Yes, you can do that, but there is no report available for you to give that information. You can go for balance interest calculation. You can run the balance interest calculation and not process the batch input session. The posting happens only when you process the batch input session. This configuration allows you to charge interest on overdue customer accounts. Interest can be calculated by using the line items or overall account balances. SAP keep tracks of the date of the last interest run and stores it in the customer master record. First create an Interest Indicator. OB46 - Interest Settlement Calculation Type Int Calc. Type P - calculate interest based on line items. S - calculate interest based on account balances. Secornd, make it avaliable to the interest run program. OB82 - Interest Terms Third, determine the interest rate that will be used by the calculation. OBAC - Define Reference Interest Rates OB83 - Enter the Reference Interest Rates Value Fourth, assign the interest indicator to the reference interest rate. OB81 - Define Time Dependent Terms Finally, determine the how and to which accounts the interest program will post. OBV1 - Prepare Interest on Arrears Calculation
Explain what is bank sub account?

This represents the bank outgoing number from which payment has to be made. You have to enter here the number of outgoing account, so when you run APP this account is utilised for the payment if its house bank is used for payment.

It is the standard SAP design meant for Bank Reconciliation Process. Main Bank account is entered in the House Bank Master Data. Subaccount is entered in FBZP so when payment is made through APP then account entered here is credited. When person responsible processes the Bank Reconciliation then this account is debited and Main Account is credited. Sub accounts are mainly used in banking transactions. Let us take an example of Lockbox collections. In this scenario, Bank collects the cash from Customers and credits to the main Bank accounts. The accounts in the books will be: 1. To record the cash receipt: Bank Account Dr.

Bank Clearing Account Cr. (this is a sub account) 2. To post the credit to Customer account: Bank clearing Account Dr. Customer Account Cr. There may be instances where the Customers are not identified when posting, however the receipt of cash has to be posted. Hence, the first entry is posted to a clearing account and subsequently the amount is transferred to the Customer account. Ideally, the clearing account should have zero balance. Similarly, sub accounts can be used for Vendor payments.

Is There an Automatic Program for MMPV By : Sydnie McConnell The client I am working with has an outdated training client. The current posting period right now is November 2004. I have two questions: 1. Does anyone know of a shortcut to get the current posting period updated versus opening each month from Nov. '04 until today. 2. Is there an automatic program that can be set up to change to current period without having to go in manually every month to initiate MMPV. In IMG, you can go to Logistics - General => Material Master => Basic Settings => Maintain Company Codes for Materials Management. You can then enter the periods that you need to have open. As far as running something monthly, if you are working only in one general region of the world, you can run program RMMMPERI from SE38 at 00:01:00 on day 1 of each period. You'll need to create a selection variant with a variable to tell it which period to use. We run into problems with MMPV/RMMMPERI, and have to actually manually schedule it each month. I run it three times - one to open the periods for our Asian plants (at 09:00:00 my time, on the last day of my month), one to open periods for our European plants (at 16:00:00 my time, on the last day of my month), and one to open periods for our US plants (at 00:01:00 my time, on the first day of my month). I've not been able to schedule recurring jobs for the Asian and European plants, because I can't figure out a way to set up a recurrence for the last day of the month. I can do it on day 1, or day 28, or something specific like that, but since the last day of the month can fall on day 28, 30, or 31, I'm not able to do that. What is "Real Time" Integration? What is "real time integration" advantage of SAP? What is the Config for Integration entry? How these entries get formulated in backend?

Real time integration is nothing but the data posting to all the affected areas instantly when an activity is performed. For E.g. When you do a FI-SD integration, when a PGI is posted, the following entry is affected : 1. Cost of Goods Sold Dr To Inventory Account Cr 100 100

Here the Cost of Goods Sold is an FI entry and Inventory Account related to MM but both of them gets affected immediately when you post a PGI in SD. The updation of these entries when PGI is done is called Real Time Integration. The affect is shown in all FI, MM and SD modules once you save the entry. The configuration for the below entry is done in OBYC 1. Cost of Goods Sold Dr 100 (T-Key GBB) To Inventory Account Cr 100 (T-Key BSX) The automatic entries are posted to inventory accounts through T-keys to which GL accounts are assigned. These T-keys are assigned to movement types in MM. Please refer to T-code OMWN and OMWB for proper understanding. Unplanned and Plan Delivery Costs In Stock and G/L Account 1) If I maintain freight in condition FRA1 or FRA2 or in info record, then subsequently if I choose planned delivery cost in miro, it will show, correct? Ans: Yes. Planned delivery cost --- Maintain FRA1 and FRA2 in PO Details with same or different vendor. Select Goods receipt/service +planned delivery 2) Planned delivery cost in miro only show freight? What about other cost? Ans: If you want to see other costs, then choose Goods items+planned delivery costs 3) What is unplanned delivery cost and where to define? Ans: In MIRO, after entering PO as a reference, choose delivery tab in header and enter any unplanned delivery costs amount in the field Unplanned dely costs. You can customize to post the unplanned dely costs to separate G/L Account or stock account. Enter MIRO --Header details ----Enter unplanned delivery cost. --Planned delivery costs, if you want to capture for different vendor in PO than go to - Conditions in item level, select the delivery condition to be captured and go to condition detail wherein you can mention different vendor to capture delivery cost,,

In MIRO Transaction Select Delivery tab. If you are posting the Delivery costs & Other costs as Unplanned delivery cost. Unplanned delivery costs are posted in a separate line. You must enter a specific tax code for the posting. Maintain in MIRO ---Transaction Enter unplanned delivery cost. While doing MIRO, in the header ( details tab ) there is a field for Unplanned delivery cost ( Unpl. Del. Csts ). Here you can enter extra delivery charges that are not in the conditions on the Purchase Order. --Unplanned delivery costs are delivery costs that were not specified in the purchase order and are only entered when you enter the invoice. They are posted in exactly the same manner as subsequent debits/credits. For a material subject to moving average price control, unplanned delivery costs are posted to the stock account, provided that there is sufficient stock coverage. For a material subject to standard price control, unplanned delivery costs are posted to a price difference account. Unplanned delivery costs were not agreed on in the purchase order and are not entered until the invoice is received. You can enter the unplanned delivery costs in the invoice document alongside the costs incurred. You can post unplanned delivery costs as follows: Distribute them prorated to calculated invoice items Post them to separate G/L accounts You can use the Business Add-In MRM_UDC_DISTRIBUTE to define your own rules for distributing unplanned delivery costs. For more information, see the documentation for the Business Add-In You want to distribute unplanned delivery costs prorated when you post the document. (Incoming Invoice-- Posting Unplanned Delivery Costs). You want to post unplanned delivery costs to a separate G/L account. - Incoming Invoice Maintain Default Values for Tax Codes. Planned costs are costs which are entered directly in the PO. Planned delivery costs are agreed upon with the vendor, a carrier, or a customs office before the purchase order is created. You enter them in the purchase order. Planned delivery costs can be differentiated as follows:
y

Origin of Costs

y y y y y y

Freight charges Customs charges Calculation of Costs Fixed amount, irrespective of delivered quantity Quantity-dependent amount Percentage of value of the goods

Difference Between Open Item And Open Item Management What is the difference between open item and open item management? Open item: open item is an item which has to be cleared with another line item. Open item management: how you want to manage all the open item in particular GL A/C. Open item management is the setting which allows the setting to maintain the open items for the particular GL account. Use of open item : Processing open items involves choosing and then activating the open items. Processing is the last step before posting a clearing document. When posting clearing documents, the system takes tolerances into account. Tolerances are acceptable payment differences. When the line item(s) you enter and the open item(s) you process have been cleared, you can post a clearing document. For example, if you enter a vendor payment for $1000, you must choose and process vendor open items that equal $1000. If your system permits a 1% tolerance, then you can clear open items with a value from $990 to $1010. When you process open items, you can: - Activate or deactivate open items - Activate or deactivate cash discount - Maintain cash discount amounts - Enter partial payments or residual items Activate the open items to be cleared. To process open items, on the screen for selecting open items, choose Goto --> Open items. You can process open items using the following: - Menus or function keys - Commands - Mouse To clear open items with commands or with the mouse, you select and process an item in one step. Use of open item management

Defining "Open Item Management" If you set the "Open item management" indicator in the master record for an account, the line items in this account is marked as open or cleared. The balance of an account with open item management is equal to the balance of the open items. General ledger accounts are kept with open item management if you need to check whether there is an offsetting posting for a given business transaction. You should use open item management for bank clearing accounts, clearing accounts for goods receipt/invoice receipt, and salary clearing accounts. Bank accounts, however, do not use open item management. If you subsequently define open item management for a G/L account, this entry only applies to the items which are posted afterwards. At the date of the change, the account must display a zero balance. Also, when canceling this indicator, the balance must be zero. You therefore have to clear the remaining open items before making the change in the master record. Open item Take an example of misc. purchases. When you purchase from vendor you pass the following entry. Dr. Material / Expenses A/c. Cr. Vendor account (if it is credit purchase) Now the vendor account is showing credit balance till you make payment to the vendor. This in SAP they call is open item. While making payment Dr. Vendor account Cr. Cash / Bank account If once you make the payment to vendor, while making the payment to the vendor, you need to link the payment with lying open item of above purchase. System automatically changes the status of above open item (red colour ball) to cleared item (green colour ball) in the vendor account. Various Steps To Configure Dunning What is dunning program? Dunning is nothing but payment or collection remainder. The SAP Financial Accounting component is delivered with the dunning procedure and all further specifications for dunning. Check whether you can use the predefined settings or whether you have to make changes. Assign the required dunning procedures and areas (if used) required to your business partners.

The most important thing that differentiates the dunning levels is the dunning texts. The dunning text defines the urgency of the dunning notice. The other things can be the dunning charges, minimum & maximum amounts etc. Maximum no. of dunning levels is 9 levels. How to Configure Dunning? The dunning wizard enables you to create and send letters to customers that have not paid their debts within a given time range and to remind them of their overdue payments. In addition, the dunning wizard keeps track of a customers "payment behavior" in the database to deliver this important information to appropriate organizations. The dunning wizard considers the following transactions and documents: 1. Open A/R invoices (including partially paid and partially credited) 2. A/R credit memos 3. Manual journal entries with at least one row posted to a customer 4. Opening and closing balance transactions 5. Incoming payments To access the wizard, choose Sales A/R Dunning Wizard . To run the Dunning Wizard, you have defined the dunning levels and the dunning terms as follows: 1. You have defined the dunning levels by choosing Administration > Setup Business Partners > Dunning Levels. 2. You have defined dunning terms in Administration > Setup> Business Partners > Dunning Terms. The dunning terms are based on dunning levels, and contain parameters and values required for the dunning process run. 3. You have defined the default dunning terms in Administration > General Settings > BP tab > Default Cust. Dunning Terms . You have defined dunning terms for customers. (Choose Business Partners Business Partner Master Data Payment Terms tab Dunning Term field.) You have used the following options to exclude any relevant A/R invoices from the dunning process: - To exclude a specific invoice, display it before you run the wizard. On the Logistic stab, select Block Dunning Letters. You can deselect the option later to include the invoice in the future dunning process.

- To exclude all invoices created for a specific customer from the dunning process, display the Business Partner Master Data record for that customer. On the Accounting tab, select Block Dunning Letters. Process: You choose Sales A/R > Dunning Wizard and follow the steps listed below. In each step you choose Next to proceed to the next step of the Dunning Wizard, choose Back to return to the previous step, or choose Cancel to cancel the Dunning Wizard creation Step 1: Wizard Options. You select whether to run a new Dunning Wizard or to load a saved one. Step 2: General Parameters. In this window, you modify a name of the default Dunning Wizard and choose a dunning level. Step 3: Business Partners Selection Criteria. You choose a range of customer codes for the Dunning Wizard. Step 4: Document Parameters. In this window, you enter the range of the posting dates to include in the Dunning Wizard. In addition, select the relevant document types. Step 5: Recommendation Report. In this window, you enter a new due date and select invoices that are included in the Dunning Wizard for each customer. Step 6: Processing. In this window, you select one of the following options to process the Dunning Wizard: - Save Selection Parameters and Exit - Save Recommendation Report as Draft and Exit - Print Dunning Letter and Exit Result: If you print dunning letters, SAP Business One creates the dunning letters and saves the dunning run. In addition, the dunning level and the last date of the dunning letter are updated for invoices included in the dunning run. When a dunning letter is created for a customer, the business partner master data record is updated. On the Accounting tab, the Dunning Date field displays the date on which the dunning letters were created for the last time. To view the history of dunning letters and the list of all invoices, choose Business Partners > Business Partners Reports > Dunning History Report

Question:

What is the difference between dunning clerk and accounting clerk? Answer: This is usually referred to depict the responsibility. Accounting clerk you will find in G/L account master in FS00 who is assigned responsibility to maintain and clear this account, he/she has track every movement in the account. Dunning clerk is the clerk who is responsible to dun the particular customer and send notices. Dunning Clerk is responsible for running the process of Dunning. The name of Dunning Clerk is printed on Dunning Notice whereas the Accounting Clerk is responsible for running the Automatic payment run program and his name can be printed in foot notes of Payment cheques etc.

When Can They Be The Same There can be scenario when both dunning and accounting clerk are same. In some organization, the Accounting Clerk and Dunning Clerk may be same but in system, there must be two separate persons but you can assign same IDs and name.

Configuration You can configure the Dunning clerk in the same place where you had configured the Accounting Clerk. Both the field names are BUSAB, but Accounting Clerk is maintained in table KNB1 and the Dunning Clerk from KNB5. Master table for the both is T001S. Set the baseline date=Invoice date Through payment terms, you can set the baseline date=Invoice date. The payment term is entered in the Vendor Master Record and it will be defaulted in MIRO. If payment term in Purchase Order is different from the Vendor Master Data, it will have preference over the Vendor Master Data. Different Between Posting, Clear and Payment

Posting occurs with many different types of documents. It indicates that all sides of the FI entry are in balance. Posting actually writes the document to the G/L. Payment on the other hand is the actual issuing of a check. Payments can also be processed in accounts receivable. In that case, you are posting (updating your books to reflect) the receipt of a check from a customer and the deposit of said check in the bank. Accounts payable is processing the money your company owes to a vendor for goods and services received. Account Payable is a liability on the balance sheet. Accounts receivable is collecting the money that other companies/customers owe you. It is an asset on the balance sheet. SAP is integrated. In most instances, there isn't a "link." The transaction directly updates the tables involved. There is a semi-severance between FI/Payment to allow checks to be issued even if there's a minor imbalance in the FI side of the posting. Asset depreciation and physical inventory are some example that don't update FI (CO/FM) as soon as the document is saved. Modules that appear in more than one place is caused by SAP trying to be flexible in where it places things on its menu, so that different users/companies find it easy to locate a given transaction within the confines of the module they work in. This has become more pronounced since the change to role based authorization management. That's why you can reach Create a requisition from 4 different pathways, why Project Systems is in both Logistics and FI, and why Travel Management is in both HR and FI. In some organizations, travel authorization and tracking is an HR function, in some it is an FI function. Difference between Clear and Payments Apart from processing open items, what is the difference between: 1. Accounting-->FA-->AR-->Document entry-->Incoming payment > F-28 and 2. Accounting-->FA-->AR-->Account-->Clear F-32 and the difference between F-53 and F44 in AP. When you post a transaction, you will get a Accounting document. If you are creating a payment document through F-53 or F-58 without linking the Accounting document, than we have to create a link between the accounting document and payment document and that can be done through F-32 (for GL) and F-44 (for AP). An good example is when we make down payment, a payment document is created. If we post the invoice, an accounting document is created. To clear this payment document and accounting document, F-44 is used. - F-28 will be used to make trasactions for income payments. Eg: If you receive from a customer by using above T code will be passed necessary entries. - F-32 will used used for clear the Customer line items. - F-53 will be used for making payments to vendors. - F-44 will be used for clearing the Vendor Line items.

Setting Up Manual & Automatic Payment Program I am doing a project in my institute. we are facing a problem in running a automatic payment program. Suppose I have a balance of Rs 100000 in my bank account and today I am running a Automatic payment run. Total payment of the run are Rs 150000. So when I run Automatic payment run it is not giving any error message. What to do with this problem. In my point of view we have to create validation. And link between bank account and payment method. If the balance is less than the automatic payment amount the run should be stopped . The Automatic Payment Program does not check the Balance of your Bank Account.(GL A/c. Bal.) What it does check is the min & max amounts that you have maintained in your customisation. In FBZP Transaction (type in easy access screen), you have to maintain the config for your automatic payment runs. In Bank determination (in FBZP), you have to fill in the available amounts for each Bank. This is the maximum amount up to which payments will be generated by the Auto. Pay. Run. So if you want to ensure that on any single day the payment run does not pay more than bank balance, you have to update on a daily basis available balance to match with your bank balance . In SPRO you can find the customisation for A P Run, but FBZP is the old transaction for the same thing. Plus it lets you do all the related customisation, in one place. As far as I know, there is no direct way of linking your GL account balance to the A P Run. - Uma *-

I am creating a new company code 'A', in which the paying company code will be 'B' and the sending company code will be 'A'. Now I have to configure for both manual and automated payments. Couple of questions on that: 1. For cross-company payments what do I have to do different in the configuration settings. 2. In manual outgoing payments, My user has a list of reason codes ( for overpayment/underpayment) defined for an old company code, it's not allowing me to copy that into my new company code. How can I do that. In Customizing Maintain Payment Program : Transaction code FBZP 1) define your company code'A" & "B" both in section tab (All Company code) 2) Define Paying company Code for example "A" paying company

3) Payment Method in country in tab Country IN (India) - Name of Country - Payment Method "C" is for Cheque "D" for Demand Draft etc 4) Payment Method in Company code - for example "A" is paying company define payment method in same section 5) In Bank Determination Section - define Ranking Order, Bank Accounts, Available Amount, Value Date, Expences/ Charges 6) Define House Bank : HB Name , Account ID Bank Account Text, While runing APP (F110) user should select paying Co Code "A" in maintain variant, AUTOMATIC PAYMENT PROGRAM 1. Creation of House Bank: SPRO-Reference IMG-Financial Accounting-Bank Accounting Bank Accounts Define House Banks FI12 2. Creation of Cheques issue account in assets side with sort key 001 and FSV is G005 and assign house bank and bank account no. 3. Creation of Cheque lots: SPRO-Reference IMG- Financial Accounting AR/AP Business Transactions Outgoing payments automatic outgoing payments payment media cheque management Define no ranges for cheque management FCHI 4. Giving mini and max amounts to payment: SPRO-Reference IMG-Financial Accounting AP/AR-Business Transactions Outgoing payments automatic outgoing payments program payment methods/bank selection for payments program set up all company codes for payment transaction T042 5. Set up paying company code for payment transaction: SPRO-Reference IMG Financial Accounting AP/AR Business Transactions Outgoing payments automatic outgoing payments program payment method/Bank Selection for payment transactions set up paying company codes for payment transactions 042B 6. Set up payment methods per country for payment transactions: SPRO Reference IMG Financial Accounting AP/AR Business Transactions Outgoing payments automatic outgoing payments payment methods/bank selection for payment program TO42ZL 7. Set up payment methods per company code for payment transactions: SPRO Reference IMG Financial Accounting AP/AR Business Transactions Outgoing payments Automatic outgoing payments Payment method/bank selection for payment program set up payment methods per company code for payment transactions T042E 8. Set up bank determination for payment transactions: SPRO Reference IMG Financial Accounting AP/AR Business Transactions Outgoing payments automatic outgoing payments payment method/bank selection for payment program set up bank determination for payment transactions BA NKDET

9. Assign payment method to vendor Master record: SAP menu Financial Accounting AP Master Records Change FK02 10. Automatic payment program running: Sap Menu Financial Accounting Accounts Payable Periodic processing Payments F110 11. Running the app program: First give the parameters. Company code and payment method and next date. It means the next date the running the program. And go to additional log in that we need to select due date check, payment selection in all cases, line items of the payment documents and save it. Click on the schedule proposal, next payment run in the last it has to display one generated and one completed. Next go to new session click on systems services and reporting in that give RFFOUS_C Then give the run rate, identification methods, company code, house bank, bank id, check lot no, and save it and then execute it. And come back f110 and give that identification in printout and save it. FI Questions about GR/IR 1. How do we post the FI transactions after doing MIGO? Does the Migo generate FI postings or do we manually do the posting. If we do it manually what is the T.Code to do it. 2. How do we reverse an Invoice? We go to miro and enter a credit memo. How do we post the reversal entry? In SAP, the moment you save the MIGO transaction, it automatically generates FI document. It will create following entry:Raw Material Stock A/c Dr To GR/IR Clearing A/c In MIGO transaction itself, you can post Excise by choosing Capture and Post Excise Invoice. The FI document will be as follows: RG23A Basic Excise Duty A/c Dr RG23A Education Cess A/c Dr To CENVAT Clearing A/c After doing MIGO, you execute MIRO. In this transaction also, SAP will generate FI document automatically. The entry will be as follows:GR/IR Clearing A/c Dr CENVAT Clearing A/c Dr VAT Setoff A/c Dr To AP-Vendor A/c Reversion of entry of material purchase can be in entered on rejection of material partially or wholly. In this case, you will have to raise a debit note on the vendor. But before raising debit note, you have to first ensure that the Invoice verification of the material (to be rejected) is complete at the time of purchase. Purchase documents cannot be reversed directly like pure financial document entry. To reverse the material document,

following procedure should be followed. 1) Create Return Delivery (MIGO) 2) Reverse the Excise Duty Posted (J1IS) 3) Raise the debit Note. (MIRO) Cancel Invoice In MR8M

* -- Rajesh Birari

While cancelling invoice in mr8m, I'm getting a message that FI documents to be cancelled manually. What does this means? If the cancellation / reversal of MIRO invoice is done through MR8M, only the MM invoice / documents gets reversed but the FI document will not be reversed or cancelled. We have to follow the following procedure. 1. Goto T.Code MIRO 2. Select Credit Memo in the transaction field. 3. Fill up all the details in the fields for the invoice to be reversed. 4. Give the P.O. no 5. Select the line item to be reversed. 6. Simulate and save. The impact will be as CR - GR/IR clearing a/c DR - Vendor a/c By this procedure, the purchase order history in P.O. will also get updated and there is no requirement of any manual clearing. Only in the Vendor a/c, the DR. and CR should be knock off. How to configure Automatic Clearing of GR/IR? by: Narasimham Follow the following steps: Define Adjustment accounts for GR/IR Clearing Path: IMG-F/A-G/L/A-Business Transactions-Closing-Regrouping-Define adjustment accounts for GR/IR clearing Double Click on BNG Transaction Key System will ask you chart of accounts update it. Again update the following Reconciliation account: Enter the GL code i.e. GR/IR clearing account (Goods Receipt/Invoice receipt) Adjustment account: Enter the GL code i.e. GR/IR correction account Targ. Acct : Enter the GL code GR/IR Invoiced but goods not yet received Again Double click on GNB Transaction Key

System will ask you chart of accounts update it. Update the following: Reconciliation account: Enter the GL code i.e. GR/IR clearing account (Goods Receipt/Invoice receipt) Adjustment account: Enter the GL code i.e. GR/IR correction account Targ. Acct : Enter the GL code GR/IR Shipped not invoiced Do the above steps. The goods receipt/invoice receipt (GR/IR) clearing account is a provision account, and is posted to whenever you receive goods that have not been invoiced yet or whenever you receive invoices for goods that have not been delivered yet. In this activity you define the numbers of the adjustment and target accounts for the automatic postings for the GR/IR clearing account. Transfer postings have to be made at the balance sheet date to reflect the goods invoiced but not delivered and the goods delivered but not invoiced. Transaction code F.19 analyzes the GR/IR clearing account and posts adjustments entries for outstanding amounts to adjustment accounts. It makes the offsetting entry to the account for goods delivered but not invoiced or to the account for goods invoiced but not delivered (target account). Explain what is recurring entry & sample doc from basic point of end. Sample Document : It is a special type of reference document. It does not update transaction figures. Data from this document is used to create default entries on the accounting document entry screen. Recurring Entry : A periodically recurring posting made by the recurring entry program on the basis of recurring entry original documents Recurring Entry Document : A document containing the fixed data for every recurring posting (for example -> posting key, -> account, -> amount. These 3 never change). You set up recurring entry documents for business transactions that occur on a regular basis, such as rental payments and insurance premiums. It does not update transaction figures. To store, system used number range "X1"

Cross Co-Code transaction cannot be posted with recurring entry program. Recurring Entry Program For postings that recur on a regular basis, such as payments for rent, interest, legal fees, property taxes, you can use the "Recurring Entry Program" to have the necessary documents generated automatically. (1) Create Recurring Entry Original document

It containsThe date of the first & last posting The frequency at which the posting should be made, The date of the next planned posting (2) The Recurring Entry Program must be run at regular intervals within a specified period. The program selects all recurring entry original documents in which the date of the next posting falls within the specified period, and then generates a Batch Input Session (3) When the Session is processed, an FI original document is posted. The date of the next posting is changed accordingly in the "Recurring Entry Original Doc" You can create recurring entries and execute at month end by using these t.codes.. - FBD1 - Create - FBD2 - Change - FBD3 - Display - F.56 - Deleting Recurring entries - F.15 - Executing for a period - F.14 - Posting doc from recurring doc - SM35 - Execute ur session Residual Clearing full amount is cleared for the remaining amount system will generate one more line item as open item (or) due item. 1st POST BELOW INVOICE: PstKy 31 Account ****** (WELL) & press enter Amount 45,000/- Business Area 830B, Payt terms 0001 Text Goods purchased PstKy 40 Account 401000 (Material Purchased) & press enter Amount * Business Area 830B (Under MORE button you will find it) Text + & press enter. Select menu item DOCUMENT > SIMULATE & POST. OUTGOING PAYMENT (using Reason Code): Accounting > Financial Accounting > Accounts Payable > Document Entry > Outgoing Payment > Post (or) F-53 Residual payment Document Date **/**/**** Document Type KZ Company Code 8301 Currency/Rate INR Account 211000 (ABN Bank A/C) Business Area 830B Amount 43,000/-, Text Part payment, Account ****** (WELL) And enter & select RESIDUAL tab and double click in the RESIDUAL ITEMS column and select DR (Discount Received) reason code. Go to menu item DOCUMENT > SIMULATE & press POST button. An example: While processing thru F-58, First enter the payable amount.

Next Go To Process open items. Go to Res. Items tab and double click on the Residual items.

FI Document: List of Update Terminations To analyze the FI update error posting, make use of report RFVBER00, FI Document: list of update termination. Execute the report with transaction code SA38 or SE38. Difference between Withholding Taxes and Extended Taxes What is the difference between Withholding Taxes and Extended Withholding Taxes? Please read this for the same. I have mentioned prominant difference between the two.

Withholding Tax Classic Withholding Tax (All release) Extended Withholding Tax (from release 4) Difference between the two S.No Individual Function Extended 1 Withholding Tax on Outgoing payment 2 TDS on Incoming payment 3 TDS at the time of Invoice 4 TDS on partial payment Yes 5 No. of withholding tax from each document Several 6 TDS basis - Net amount -Gross amount -Tax amount x 7 Rounding rule 8 Cash discount consideration 9 Accumulation 10 Minimum/Maximum amt and exemption Yes 11 Certification Numbering 12 Calculation Formula SAP FI Tips by : Kapil Withholding tax is calculated and posted to the appropriate withholding tax accounts at different stages, depending on the legal requirements in each country. As a rule, withholding tax is posted at the same time that the payment is posted, in other words the outgoing payment (Accounts Payable) or incoming payment (Accounts Receivable), is reduced by the withholding tax amount. In certain countries, such as Brazil, the Philippines, and Spain, withholding tax can or must be posted when the invoice is posted. This means that the amount receivable or payable is reduced by the withholding tax amount. Extended withholding tax supports both concepts. The key concept in extended withholding tax is the distinction between withholding tax type and withholding tax code. While withholding tax types represent basic calculation rules, specific features of these rules - in particular the percentage rate are represented by the withholding tax code. You can define any number of withholding tax codes for a given withholding tax type. If a particular transaction requires more than one kind of withholding tax, this is covered in the SAP System by defining more than one withholding tax type. When entering a line item, you can enter withholding tax data for each of these withholding tax types. SAP FI Tips by : Rahul Gupta Classic Yes Yes Yes Yes

Max 1 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes

How To Configure Withholding Tax? Steps for extended withholding tax : 1. Check withholding tax countries 2. Define Ex. Withholding tax types for invoice postings 3. Define Ex. Withholding tax codes 4. Formula for Ex. Withholding tax calculation 5. Assign Ex. Withholding tax types to Company code 6. Activate Ex. Withholding tax 8. Create a G/L a/C for Ex. Withholding tax 9. Define A/C for Ex. Withholding tax (DBWW) 10. Make changes in Vendor master (XK02) 11. Maintain Company Code Settings: Path: IMG -> Logistic -> General -> Taxes on goods movement -> India -> Maintain company code settings 12. Activate country version for specific fiscal year position Path: IMG -> FA -> -> FAGS -> Taxes on sales purchases -> Basic Setting -> India -> Activate country specific for fiscal year position What is Central Value-added Tax and how it is configured? What is CENVAT (Central Value-added Tax) and how it is configured? Before I am going to explain what is cenvat, you have to under stand the Indian tax Central Excise Duty (BED). It is called as basic excise duty. Every manufacturer is liable to pay the excise duty in various kinds namely Basic Excise Duty, Special Excise Duty, Additional Excise Duty etc., Just think over a product which is reached to a end user, how many manufacturing activities are done. So to reduce the tax burden of the end user, the Govt. of India introduce the MODVAT scheme which is now called CENVAT scheme. Based on this, if any manufacturer purchased a material, which is duty paid, and if it is used for his further manufacturing activity, he can avail this as credit in his book based on the Central Excise Invoice. At the time of selling his manufactured goods, he is liable to pay the excise duty. He can adjust the credit which he has taken into his book and pay the rest. For example: CENVAT availed at the time purchased various goods CENVAT payable for his product at the time sales He will pay only Rs.5000 through cash deposit in PLA. Rs.20,000 Rs.25,000 (EXcise duty alone)

This customizing are in SAP CIN Module. If you are having the CIN CD, go through. Good Explanation. In addition to this. The CENVAT means, Tax on Value Addition on the goods manufactured according to Central Excise & Customs Act Difinition. Here the value addition means the Additional Services/Activities etc. which converts the Input in to Output, and the output is newly recognised as per the this act as Exciseble goods. Like this the discussion is goes on for definition. In 4.7 SAP version, there is no CIN version seperately, it is available with Standard SAP it self. I hope Mr. Anil Gurjar's query is completely answered.

Entering Invoice Receitps for PO The Invoice Verification component is part of the Materials Management (MM) system. It provides the link between the MM component and the Financial Accounting, Controlling, and Asset Accounting components. Invoice Verification in Materials Management serves the following purposes: - It completes the materials procurement process - which starts with the purchase requisition, continues with purchasing and goods receipt and ends with the invoice receipt - It allows invoices that do not originate in materials procurement (for example, services, expenses, course costs, etc.) to be processed - It allows credit memos to be processed, either as invoice cancellations or discounts Invoice Verification does not handle the payment or the analysis of invoices. The information required for these processes is passed on to other departments. Invoice Verification tasks include: - Entering invoices and credit memos that have been received - Checking the accuracy of invoices with respect to contents, prices, and arithmetic - Executing the account postings resulting from an invoice - Updating certain data in the SAP system, for example, open items and material prices - Checking invoices that were blocked because they varied too greatly from the purchase order An example on how to enter an Invoice Receipts :Transaction code MRHR - MM Invoice Verification and Material Valuation
First Screen

Document date : Date of PO

Company code :

Document type : There are two standard document types in the standard system: RE - The invoice is posted gross RN - The invoice is posted net Posting date : Date of open period Currency :

Purchase Order : PO Number

Amount : Enter the gross invoice amount Enter and then click Simulate button

Tax code

Click Adjustment on/off button Click Edit -> New item -> G/L Account a) Enter the G/L Account Number and click whether Debit or Credit b) Enter the Amount and Cost Center Repeat Step a) and b) if you have additional G/L Account Number There must be no Variance and Balance must always be ZERO before you can save the entries. Using 1099 MISC Reporting In order to use 1099 MISC reporting is something that needs to be configured or set up in the vendor master records? I am trying to run the report and I don't get anything.

To flag a vendor in SAP as a 1099 vendor, two fields need to be populated. 1. On the Control screen of the vendor master, populate either "Tax Code 1" field with his social security number if his social security number is his tax id. or "Tax Code 2" field with his corporate tax id. if he has been issued a corporate tax id. Input either of the two in their correct format i.e. social security as xxx-xx-xxxx or corporate id as xx-xxxxxxx. 2. On the Accounting Info. screen, populate the "W.tax code" field under the "Withholding Tax" box with the value "07" if it is a US vendor or "42" if it is a foreign vendor. These are the two fields that specify a vendor as being a 1099 vendor. Any posts done before this changes were implemented will not show on 1099. You will need to run program RFWT0020 to flag 1099 items retroactively. ...and/or you can change the "Document Change rules" for BSEG-QSSHB and BESG-QSSKZ for account type "K" so that you can change the Withholding tax code after the line item has been cleared (i.e. after entering the required information in the vendor master record as the user above has recommended) (Refer to OSS Note: 363650). But if you use MIRO to post invoices, you might want to look at Note 482245 too... In SAP v40b, the new 1099 report is RFW1099M. It is a neat report since it merges all the three reports that are listed in the AP info system under the withholding tax.

In my system the witholding tax code field shows only one option Y (back-Up Witholding) instead of 7 and 42. ALso it gives me message "Extended witholding tax functionality is not active". Do I miss some settings on the global level, or I just need to update the vendor master records?

We are on 40b. If you do not have any w.tax code, you can create them in Tcode OBC7. But I have seen standard w.tax code on this screen provided by SAP. Pl. note that you may only be able to see the w.tax code on the vendor master if you are in change mode. For some unknown reason, when you are in display mode, SAP tells you that there are no w.tax codes. The first report in 4.0b gives all the correct 1099 vendor numbers as well as the error list of incorrect vendor numbers. The second report gives all the 1099 line items by vendor posted during the year. The third report lets you print the actual form for IRS/vendors and also lets you send the file electronically to IRS.

You mentioned running RFWT0020 - what exactly does this do? I have the same problem that our A/P staff did not update some vendors with the appropriate 1099 data. Now we are getting the data needed - I usually have someone in our IT dept. create a spool manually for those vendors. Will the program above update our vendors' transactions with 1099 info (assuming the vendor master has been updated)? Yes. This report flags all the past vendor line items as 1099 items retroactively. FYI, we're on 4.0b. One thing that is peculiar about this report is that on the selection screen, you need to put 00000000 to zzzzzzzzz in the vendor number field otherwise it does not flag any records (at least that's what it did with our records). What is financial archiving? Where it is used? Why? Where is it configured in IMG? There are both technical and legal reasons for archiving Financial Accounting data. Archiving: 1) Reduces storage and runtime problems caused by the constant growth of transaction data. 2) Makes master data easier to manage and to keep up to date. 3) Enables data to be accessed at a later date. You can archive data no longer required in the online system using certain standard functions. This data is then stored in archive files and deleted from the online system. For legal and commercial reasons, it is important that you are able to access archived data files online again, and the reloading function allows you to do this. Data must meet certain conditions before it can be archived. Some of these controls are already defined in the system, for instance the fact that you cannot archive documents that contain open items. Certain other controls are user-defined. Every archiving function can be accessed from archive management (SARA). To reach archive management, choose: Tools --> Administration --> Archiving or from the Accounting --> Financial Accounting --> General Ledger, Accounts Receivable, Accounts Payable or Banks menus --> Periodic processing Archiving <Archiving object> .

When you access archive management from these menus, the archiving object is defaulted by the system in the field Object name. Otherwise you must enter the name of the archiving object manually.
Where is the link between the two (Material Document & Accounting Document)? How to list those material documents only, for which accounting documents are generated?

Resolution: You need to create a simple query using SQ01 The following are the steps on how to do it: STEP 1 SAP query way to extract your information. Create an infoset SQ02 with a single table MKPF. (include key fields in the field group) STEP 2 From Extras Create an additional field called zawkey (like bkpf-belnr) which will concatenate the MM document number MKPF-MBLNR and MKPF_MJAHR. The sequencing shall be number 1. You may use this code below and paste also (this needs authorization as well) data: zzawkey like bkpf-awkey. clear: zawkey, zzawkey. concatenate mkpf-mblnr mkpf-mjahr into zzawkey. zawkey = zzawkey. Add another field called ACCDOCNO (accounting document number) with sequencing number 2 with following code. data: zaccdocno like bkpf-belnr.. clear: zaccdocno, accdocno. select belnr from bkpf into zaccdocno where bukrs = ccode and GJAHR = MKPF-MJAHR and awkey = zawkey. . endselect. accdocno = zaccdocno. Step 3

Include the additional fields into the field group. STEP 4 Click on the selection tab and create a parameter called ccode with a description Company Code and against LIKE BKPF-BUKRS Extras OBLIGATORY STEP 5 Click on the selection tab and create a selection criteria pdate with a description Posting Date for the field MKPF-BUDAT Extras OBLIGATORY STEP 6 Save, Generate and assign the infoset to a user group. STEP 7 Create a SQ01 query under the user group with all the fields in the infoset and Execute. Enter a company code and one date of a working day where you expect material transactions. The result will be all the material documents and their corresponding accounting documents, if available. If you want to see only those material document that do not have corresponding accounting document, then while you are in the selection screen say accounting document number is not equal to blank. SAP Controlling FAQ CONTROLLING Controlling: Controlling provides you with information for management decision-making. If facilitates co-ordination, monitoring and optimization of all process in an organization. Features of Controlling: Cost Center Accounting, Activity Based Accounting, Internal Orders, Product Costing, & Profitability Analysis. Controlling Area: Organization unit that represents a closed system Used for accounting purposes. You can assign one or more company codes to one controlling area. If you assign more than one company code to one controlling area, then you need to note the following.

1) Consistent Chart of a/cs (Treat each cost element in all company codes in same way). 2) The Operative fiscal year variants in the company codes must match the fiscal year variant in controlling area. 3) You should execute period end closing in controlling for all company codes at same time. 4) The system only post reconciliation posting across company codes without taxes, which means that it cannot automatically create invoice. 5) Maintain controlling area - OKKP . 6) Maintain no. ranges for controlling documents - KANK 7) Maintain versions - OKEQ COST ELEMENT ACCOUNTING Cost Elements: Cost Elements Describe the origin of costs. Cost element classifies the organization valuated consumption of production factors within a controlling area. Primary Cost Elements: These arise through the consumption of productions factors that are sourced externally. Primary cost elements are used for direct posting and must be accompanied in GL a/cs in FI. T-code : KA02 : The categories are follows 1) General primary cost element, 03 - Imputed cost element percentage method 4 - Imputed cost element, target = Actual Method, 11- Revenue elements, & 12 - sales deductions. Secondary Cost Elements: Cost elements arise through the consumption of production factors that are provided internally i.e., by enterprise itself. Secondary cost elements are used strictly for internal controlling posting like assessments and settlements. T-code - ka06 Category: 12 - internal settlements, 31 - Result analyses, 41 - overheads, 42 - assessments etc. Cost Element Group - kah1 COST CENTERS Cost Centers: Organizational Unit within a controlling area that represents a defined location of cost incurrence. The definition can be based on 1) Functional Requirement, 2) Allocation criteria, 3) Physical location and 4) Responsibilities for cost. Change Cost center hierarchy - OKEON Creation of Cost Center - KS01 Distribution: Was created to transfer primary costs from a sender cost center to receiving controlling objects. Distribution is primary cost elements. Define Distribution - KSV1 Execute - KSV5 Assessment: Was created to transfer primary and secondary costs from a sender cost center to receiving controlling objects. During assessment, the original cost elements are summarized into assessment cost elements (secondary cost element, category=42). Define Assessment - KSU1 Execute Assessment - KSU5

Activity Types: Categorizes productions and services activities provided by a cost center to the organization and used for allocating costs for internal activities to the originates of the costs. Creation of Allocation Cost elements - KA06 Creating/Maintaining the Activity types - KL01 Statistical key figures: Are used as the basis (tracing factor) on which to make allocations (assessments & distributions) and to analyze structural key figures. Cost Component Split In FICO Can someone brief what is cost component split? What config is to be done? In addition to standard iteration, price calculation enables you to calculate prices as a cost component split. This means that the output price of an activity type can be split into a maximum of 40 cost components. These cost components represent either: Individual cost components (such as wages, salaries, or operating supplies) or the costs of complete cost centers (such as energy or maintenance cost centers). The cost component split enables you to analyze which cost components are contained in the output prices of the activity types. You can then control cost elements, cost element groups, and also entire cost centers in cost component splits. The corresponding cost center costs and the costs of the cost centers providing the activity are channeled into this cost component split. For example, if you have assigned the salary cost element to component 1 (salaries), then the system displays the salaries (for example, for a production cost center) in this cost component. If a plant maintenance cost center provides services to the production center, then the salaries for the plant maintenance cost center are assigned to this cost component. Cost center splitting apportions activity independent costs to the activity types of the cost center. It does this by multiplying the total of the activity independent costs by the equivalence number of the activity type, and then dividing by the sum of the equivalence numbers. So if there are two activities, one with equivalence number 1 and the second activity has an eqivalence number of 2, then 1/3 of the activity independent costs will be apportioned to activity one, and 2/3 will be apportioned to activity two. Activity independent costs are always fixed, so any variable costs will need to be planned as activity dependent costs. Planned cost center splitting happens automatically when calculating the activity price. You can view what costs will be apportioned during activity price calculation by clicking on the Splitting menu item. I've ran cost splitting against one cost centre. For this cost centre I know the planned activity rate (per hour) and the planned quantity (in hours) but the target cost calculated for the activity is slightly different to the result of these two multiplied together. Is this calculation correct please? Planned act. qty in period @ planned act. rate for period = target costs

If you have only one Activity for the cost center, then you do not need to run splitting. Just run activity price calculation. Splitting is required only if you are allocating the same costs to 2 or more activities. The calculation is generally right. The other thing to check will be rounding of the time (mins/hours) and value. Activity Types
y y

The activity type classifies the specific activities that are provided by one or more cost centers within a company. If a cost center provides activities for other cost centers, orders, processes, and so on, then this means that its resources are being used. The costs of these resources need to be allocated to the receivers of the activity. Activity types serve as tracing factors for this cost allocation. In an internal activity allocation, the quantity of the activity, such as the number of repair hours, is entered into the R/3 System. The system calculates the associated cost based on the activity price and generates a debit to the receiver and a credit to the sender for both the quantity and costs. Internal activity is allocated using secondary cost elements , which are stored in the master data of the activity types as default values. You can restrict the use of the activity type to certain types of cost centers by entering the allowed cost center categories in the activity type master record. You can enter up to eight allowed cost center categories, or leave the assignments "unrestricted" by entering an asterisk (*). The activity type category is used to determine whether, and how and activity type is entered and allocated. For example, you can allow some activities to be allocated directly, but specify for others that they are either not allocated, or allocated indirectly only.

To enable internal activity allocation, you need to specify which cost centers provide which activity types at what price. You do this in the R/3 System by planning the activity output/prices for a cost center. Cost center/activity output planning functions here in the same way as an additional master record. For direct activity allocation, you enter the quantity of the activity to be allocated manually. To enable both costs and activity to be allocated, the R/3 System has to valuate the activity quantity allocated at the price specified by the sender for this activity type. For a direct activity allocation, the plan price for the combination "cost center/activity type" is used for this calculation. You can enter the planned price either manually, or have it calculated by the system automatically within planning. If you want to set the price manually, you need to set the price indicator to 3 (manual). You can use this procedure if your price calculation is not complex, for example where the prices required for your rates are determined within your organization and do not depend on internally produced activities, or where the rate depends on the prices of external suppliers and not on the costs of the cost center. Automatic calculation of plan prices is covered in course AC412. Statistical Key Figures
y

Statistical key figures such as number of employees or length of phone calls, are statistical values that describe cost centers, profit centers, and overhead orders. They

y y y y

y y y

can also describe a value for a particular activity provided by a cost center, such as the number of employees who make repairs at the transport cost center (an activitydependent statistical key figure). You can post both plan and actual statistical key figures. You can use statistical key figures as the tracing factor for periodic transactions such as distribution or assessment, and for key figure analysis. You define statistical key figures as a fixed value or as a totals value: The fixed value (such as "employees") is carried over from the period in which it is entered to all subsequent periods of the same fiscal year. You need enter a new posting only if the value changes. The fiscal year total is the average of the period totals. You post the totals value (for example "telephone calls") only to the period in which it was entered. For totals values, the fiscal year total is the total of all period values. You can transfer statistical key figures from the Logistical Information System (LIS) by assigning a key figure from the LIS to a statistical key figure in Cost Center Accounting. Explain the followings: 1. When we issue materials to production, following entry is happening: Raw material consumption a/c. Dr. Raw material stock a/c. Cr. 2. When we receive the FG from the production, Finished Good stock Dr. Cost of Production Cr. In fact, the raw material issues for production is part of Cost of Production only. Then where that is reflected in SAP. At the time of FG receipt only, Cost of Production a/c is coming into picture. By Ravi : Lets assume you are in a scenario where std cost = actual cost.. A. Say, RM cost is 100, labor cost is 30.. So your FG cost is 130. B. When you issue RM, Cons a/c is Dr and Inventory a/c is Cr for 100 Labor cost is debited to prod order via a secondary cost element. This does not result in a FI entry. C. Now, when you do GR, entry is FG Inventory a/c is Dr for 130 and cost of production is credit for 130 again. This cost of prod is nothing but your sum total of RM inventory cost and labor cost.... The accounting logic here is, you have consumed one inventory (Charged to P&L) and made another inventory.... When you consumed (RM), it is charged to P&L... So, now that you have made another inventory (FG), the charged made to P&L is reversed and again the inventory is Debited... The charge reversal is done using another P&L account which is Cost of Prod a/c instead of individual RM consumption a/c.

The idea is to show in P&L, RM consumption separately and at the same time reduce the charge and bring back the inventory consumed in its processed form (FG)... Thats why, RM consumption, Cost of prod a.c, COGS a/c all are mapped to the same group in Financial Statement version in FI and are reported together. Question: I had run a cost estimate for a material and marked and released it for the current period. But the material underwent a few master data changes and I wish to perform the Cost run again with the same costing variant for the material in the same period. The system is not permitting me to do this and gives me a message "CK 171 Material xxxx in plant xxxx has a released cost estimate". How can I perform the cost run for the material in this case? What changes are required before I can execute the cost run with the same costing variant? Answer: There are how you can try to re-run the release cost estimate: Reverse the cost estimate with CKR1.. Select "Current cost estimate", enter Plant/Mat No and execute. Re-run from CK11N once reversed. or Use transaction CKR1 to delete the Standard Cost created. In Control Parameters , using " Current Std Cost Estimate Tab". and execute. After that run CK40N / CK11N again and mark and release the material. Notes: 1. You can cancel the cost estimation through CKR1 and recreate cost estimation through CK11N. 2. But system won't allow you to release the cost twice in the same period through CK24. That's the standard behavior of system. 3. You need to change the price manually through MR21 (this is not recommended but it is a work around).
What is the purpose of KALC and why we use this during month end?

This is used when a controlling area is assigned to more than one company codes and when there are intercompany posting in controlling. KALC will then create the intercompany postings in FI. In short, KALC is for reconciliation between FI and CO. Reconciliation Ledger Example 1

When you need to drill back from the FI G/L to find which cost center was Posted to on an expense account, the reconciliation ledger is accessed. The need to have a CO to FI reconciliation process is a result of cross company Code, crossbusiness area, or cross functional area activity that may occur in the CO module. Order settlement or confirmation, cost center assessment, or other internal CO movement may initiate these postings. When costs moved internally within CO, the FI G/L is not updated because of CO use of secondary Cost elements to facilitate the postings. The first two steps in reconciliation ledger configuration are to activate the Ledger within the controlling area and assign a document type. If you have an Existing controlling area that does not have the reconciliation ledger activated, Activate the reconciliation ledger. Path: Controlling -> Overhead Cost Controlling -> Cost and Revenue Element -> Accounting -> Reconciliation Ledger -> Activate Reconciliation Ledger (KALA) Reconciliation Ledger Example 2 A good receipt posting of Rs.100 has occurred on internal order 1, which is Assigned to company code 1. One hundred percent of the value of internal order No.1 is settled to internal order 2, which is assigned to company code 2. A Settlement Cost element is used for the settlement posting. When an order Settlement is run, internal order 1 is credited with Rs.100 and internal order 2 is debited with Rs.100. The balances of internal order 1 and internal order 2 are 0 and Rs.100, respectively. However, the balances of company code 1 and 2 remain as they were prior to settlement. The reason: settlement activity Was internal to CO. No FI update occurred. To place the FI company codes back in balance, the CO-FI reconciliation posting transaction should be run. The resulting FI postings would credit Company code 1 for Rs.100 and debit company code 2 for Rs.100. The internal CO activity will now have been accounted for in FI and company codes are now in balance. Difference Between Primary and Secondary Cost Element Explain the difference between primary and secondary cost element? With an example. Primary cost elements are like materail costs, personnel costs, energy costs... where a corresponding GL account exists in FI..to allow costs to flow... Secondary cost elements are like production costs, material overheads, production overheads, they can be created and administered in only CO. These are used in internal cost allocation, overhead calculation, settlement transactions., it does not flow to FI...

General - Cost Element ---------------------------------Basically, cost element are carriers of costs. Primary Cost Element -------------------------------When cost element carriers cost between FI and CO they are called Primary, the link is established GL A/c = Cost element(Primary). A question may arise as to whether all GL accounts are cost element, it again depends upon the business requirement, where COPA is active then revenue account (GL) are also cost elements, where COPA is not active then revenue account (GL) should not be made as an cost element. Example.... Again cost of goods sold particularly in VAX (make to stock) is not an cost element, where the same COGS in VAY (make to order) is a cost element. Price Difference account should not be made as cost element. Entry while booking expenses Travel Expenses A/c - with Cost Centre Dr. Rs.YY (will be a GL A/c and cost element) - entries flows to CO thru FI To Cash A/c Cr. Rs.YY Secondary Cost Element ------------------------------------When cost element carries cost with in CO, then they are called secondary cost element. Example.... - Take Product Costing --------------------------------------------------On manufacture of the goods the cost of the above product (production order) is arrived at accumulating material cost + operational cost + overheads (%), additive cost if any. The cost of operation is accumulated in cost centre be it production / production service / service cost centres, while booking FI entries. Those operational cost has to be allocated to production order based on operational activities carried on and its cost involved in it. Those operation activities in CO are termed as activity types and has to link the same in KP26 with rates and cost centre (ie., sender cost centre and receiver production order). In order to find the production order cost, the allocation of cost from sender cost centre to production order for the operational activities carried on and its cost associated with it, have to be loaded, hence in CO the cost centre allocate that portion of operational cost to production order, and this cost is carried by a cost element (since there are no FI involvement and entries are flowing within CO by crediting sender cost centre and debiting receiver production order a cost element has to be created.... say "Operational Cost - Activity" the entry will be Operational Cost - Activity (Production Order) Dr Rs.XX To Operational Cost - Activity (Cost Centre) Cr Rs.XX The entries are with in CO. And the cost element created is secondary since it does not has an link with GL Account in FI correspondingly. In CO the production order and cost centre are co object including but not limited to.

Requires an Assignment to a CO Object The first time Account 820290 was only created in FI as a primary expense. After that this account was created in CO too as a secondary expense and any posting will appear an error: Account 820290 requires an assignment to a CO object Question : How to correct this account back to FI only and not to appear in co? Note : Account 820290 requires an assignment to a CO object Message no. KI 235 Diagnosis You have not defined a CO account assignment for an account that is relevant to cost accounting. System Response Account 820290 is defined as a cost element. This means that you must always specify a CO account assignment. Procedure Enter one of the following CO account assignments Order Cost center / cost center/ activity type Sales order item (for a project or cost relevant) Project / WBS element Cost object (Process manufacturing) Network/ Network activities Business process Profitability segment Real estate object The posting row affected is 000, account 820290.

First, if G/L account was created in FI, you can only create primary cost element in CO. Secondary cost element can only be created if no account exists in FI. Second, if you created the primary or secondary cost element in CO, you have to assign CO account assignment. You can delete cost element in CO (KO04) if dependent objects found. Third, when you create cost element in CO, documents would be also created in Cost center accounting and Profit center accounting when posing in FI. If no cost element exists in CO, no related documents would be created in CCA and PCA. How does one Deactivate a Cost Center How does one Deactivate a Cost Center?

I can find a tcode to Activate an Inactive one but how do I deactivate a CC. Or is it so simple I cannot see it... Marios Go to KS02- Change Cost Center. Go to the Control Tab. Tick on the checkbox for desired transaction activity you want to lock. Any postings made against the cost center under locked activity/ies will not be allowed. Tiongco, Jezel D. Thank you, I knew I could block the postings but I want to somehow make the Cost Center Look Inactive. To explain: In transaction OKEON (Change Standard Hierarchy) I have Green Dots for Active CC's. The legend (attached) says a Red Dot is for Inactive CC's. How do you do that? Marios Hi Marios, If you want to change the status to inactive, the only optioin as far as my knowledge is concerned is to change the validity period. when you double click the cost centre, details of cost centre will be displayed at the bottom by T code OKEON and you will find the status of cost centre there, just right of that you will find button to change the validity period, change the period to some future date then it turns to inactive status. Kittu Excellent! It works. Thank you very much. I had changed the Validity Period before but I set it to start right where the previous time horizon ended so looking in the future this was always active. What is Production Order Settlement? Settlement is nothing but offsetting the costs to the FI portion. CO objects carry costs, which needs to be re-assignd to the G/L accounts where it comes from. CO never generates any data, it only tracks the same onto some objects which are analysed for definite purpose of tracking the resources which are debits in FI as costs in G/L). In simple words, the flow is like following 1. Direct Costs are incurred ( like material consuption ) in form of issues to prod orders. These are captured in G/L. Whenever you issue, consumption account is debited. But are also debited to prod order as

Consumption...Dr Inventory.......Cr 2. Indirect costs are incurred in form of debits to Cost centers in G/Ls. These are actually to be allocated & absorbed in Products via Prod Orders. So it is allocated to prod orders via diff media like costing sheet or Indirect activity allocations. Here again Prod order is debited with some amount. When the costs are incurred these should be transffered futher when the order is closed or deliverd to stock. So whenever you deliver the order, the follwing entry is generatedInventory....Dr Cost of Prod /Mfg Variance.....Cr If your Fin Goods' predetermined cost are same as that of actual costs incurred, there will no price difference account affected. But when your plan cost ( target cost ) & actual costs are differnet, the difference is OFFSET or SETTELLED to price diff accout asCost of Prod / Mfg Var....Dr Price diff acc..........Cr Note that Price diff accont is not created as COST ELEMENT. If actual cost is less than target cost, entry would be reverse. Populating Transaction Type during Order Settlement You have an internal order that you want to settle to a balance sheet account. This accounts field status makes the transaction type (BSEG-BEWAR) required. During settlement you receive error message F5 808 stating that this field is status initial but the field is required. This field is not available to you in the settlement rule definition. Is it possible that this field is suppressed? You could not locate a means to display or require it if so. You attempted to resolve this using a substitution that would popluate the transaction type field. However, during execution you did not hit the breakpoint you put into the user exit. How to overcome this issue? You can change the requirement of the field in the "Field Status" of the account (Financial Accounting -> General Ledger Accounting -> Business Transaction -> G/L Account Posting -> Carry Out and Check Documents Settings -> Maintain Field Status Variants) or In transaction OB41 where you define posting keys and its "Field status". Both "Field Status" are maybe differents, but if in one of them the field is like "required entry" you have to change it. But if you are posting a fixed asset account, you will need this field completed because it defines the movement you are making. Difference between Cost Centers and Internal Orders

Would any one please tell me that 1. What is the basic difference between Cost Centers and Internal orders? 2. I understand that their functionality is same like assessments, distribution etc. then why there are divided into Cost Centers and Internal orders? 3. How the data flows from Cost Centers and Internal Orders? ie is it first into Internal orders then to Cost Centers or Vice versa? or else the data is maintained independently? 4. Does settlement means running the Assessment cycle and distibuting the costs to various cost centers from an internal order? 5. How you determine the cost of an Order or cost for an order? ie how an Cost in Order is determined? A cost center as you will know is for fixed reporting for a long time span as part of your company structure (cost center usually = department or work center). An internal order is used to accumulate cost for a specific project or task for a specific time period. An internal order is therefore used for a short period with a specific deadline. Your internal order will usually settle to cost centers (and not visa versa) according to the settlement rule in the order setup. An internal order can therefore be used to group all the expenses incurred to plan and hold a conference over a 3 month period. The order can be settled on a monthly basis to cost centers. When the conference is finished the order can be settled finally. The cost of the conference will then be spread over 2 or more cost centers, but can be viewed in total on the internal order when needed.

It is important to understand the difference between a settlement and an assessment cycle. An assessment cycle distributes costs from one cost center to various other cost centers. You cannot assess from a cost center to an internal order nor visa versa. Assessment cycles are only between cost centers. Settlements are used for orders. In the setup of each order is a "settlement rule". In this settlement rule you tell the system to which cost centers the cost in the order must be settled. Typically, you will execute the following procedure at month-ends: 1. Settle all orders - this will settle all costs on orders to cost centers. 2. Run assessment cycles - Now that you have al costs against cost centers from your orders, you can start distributing costs between cost centers with assessments. Costs are posted to an order. When you process a purchase order you post to the internal order and not to a cost center. The same applies to journals in FI. You will post the costs to the order and not to a cost center. You will then settle the order on month-ends to post to the relevant cost centers. It is very important to settle these orders otherwise FI and CO will not balance on your system. Internal orders can also be used as "statistical" orders. This is also specified in the setup of the order. You do not have to settle statistical orders. When posting costs, you will post to the cost center and the order simultaneously. Both have to be specified when posting journals or purchase orders against statistical orders.

Simple Overview of Product Costing SAP Product Costing deals with Plan Costing + Actual Costing of Finish products or Services. CO comprises Product Costing + cost accounting integrated with FI. It uses Integrated Cost Accounting. Product costing also has 2 phases depending on the Mfg Scenarios. If you are a normal mfg comp, making goods to stock & sale, you have to first do planning of the costs of products initilally as a STD COST of a product. This is used in many phases in SAP CO acounting. In simple terms, you cost a product by different methods depending on different LIFE CYCLE phases of product. These are Development of new product. Growth stage by modifying it. Mature stage (mass prod). Decline Retirement of that product from Mfg+Mktng) The whole CO process starts with this PLANNED costs of products & ends with totalling the STD Costs for Actual Production. This is a simple Std cost Accounting system, in which the end result is calculating Variance bet Planned & Actual & analysing those for further corrective actions. Product costing is well integrated to FI, but only where overhead cost accounting is used. Otherwise normally it used only for settlement. All these actual costs of Prod are finally settled/offset to FI or Profitability segments. SAP CO is a very vast & complicated module of all. It needs deep understanding of the subject. This give you an overview glimpse of SAP CO.