SAP FICO

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 Chapter 1

SAP Introduction

Introduced in the Year 1972 in Germany-Waldorf by 5 IBM Engineers Wellen reuther, Dietmaar Hopp, William hector
Plattner ,Tschira, Products were released in 1992 In India SAP was introduced in 1995

 SAP = Systems, Applications and Products in Data Processing (R = real time, 3 = 3 tier)
 German Based Company
 2nd Largest Independent Software Vendor in the World
 SAP: ERP Market Leader
 80% Fortune 500 Companies Use SAP
 Over 25000 Customers in 120+ Countries
 Over 12 million users

Package: It is a collection of executable programs, functions, and actions.

Ex: MS - Office, ATM, Railway Reservation, etc.

Language: It is a collection of executable statements/instructions to the system.

Ex: C, C++, Java, etc.

ERP: Enterprise Resource Planning

Ex: SAP, Oracle, People Soft, JD Edwards, BAAN, SIBEL, etc.

SAP is:

 Client/Server Technology
 Highly Customizable
 Based on Industry Specific Best Practices
 Multi-lingual: International
 Based on Open Standards
 Integrated Applications System: Modular in design

Technical Modules: ABAP: Advanced Business Application Programming.

ABAP Workbench. Advanced 4 th generation language.

ABAPERS: Upload the data from legacy system to R/3 system. BDC, LSMW.

Administration Modules:
BASIS: Creating user Id and passwords, client copy, server authorizations, screen permissions.

Functional Modules: FI/CO,HRM,SD,MM, PP, etc.

FICO : creation of company codes and assign to other functional consultants.
IMG tool used by function consultants.

New Dimensions: CRM, APO, SEM, SCM, etc.

Implementation Partner: Implementation partner is a person who implements SAP for our company.
Company Representative: Company representative is a person who knows very well about company and
came to explain about company to implementation partner.
Business partner: He is a person who purchases SAP software from IDES AG.
AS – IS Study: Understanding the business requirements of the client.

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SHOULD BE Study: How you map the requirements of the customer/client.

The SAP Graphical user Interface

SAP has also developed a user interface called the SAP graphical user interface (SAPGUI), which runs on
Windows 3.1/95/98/NT, Motif, OS/2 presentation manager, and Macintosh. All SAPGUIs look identical,
regardless of the operating system on which they are running. This interface varies according to the version
of SAP
or SAPGUI you are running; however, the difference in appearance is minimal. The appearance of the
screens and
means is configurable.

The Application Integration

SAP is an ―Enterprise Resource Planning‖ (ERP) software product capable of integrating multiple business
applications, with each application representing a specific business area. These applications update and
process
transactions in real time, thus allowing seemingly effortless integration and communication between areas of
a
business.

Customizing Tools
The cornerstone of SAP is its ability to be configured to meet the needs of your business. This is done by
customizing or adapting the system to your business requirements, which is the process of mapping SAP to
your
business process. Since SAP version 3, the ―Reference Implementation Guide‖ (IMG) for R/3 customizing
has
been available. Until this version, customizing had to be done in the menu paths of the system with
considerably
more hassle. This IMG screen is the backbone for SAP and the entries placed in it determine how the
system
functions. We will be using this screen extensively for the purpose of configuring the SD module.

R/3 Applications overview

R/3 applications are categorized into 3 core functional areas: Logistics, Financial, and Human Resources
of these three functional areas, there is a further subdivision into applications or modules. In addition to
these
applications, SAP creates ―Industry – Specific Solutions (ISs), which are, as the name defines, created tailor
– made
for a specific industry. A few examples of these would be:

IS – OIL = The SAP industry solution for oil companies.

IS – T = The SAP industry solution for Telecommunications.
IS – B = The SAP industry solution for Banks.
IS – Retail = The SAP industry solution for Retail.

In addition to these industry solutions of which there are currently 19, standard cross – application
components are available, such as the SAP business workflow. The following is a brief description and
overview of
a few of the major functional areas in SAP.

Financial Applications: This functional area contains the necessary information on profitability analysis,
general ledger accounts, and information on reporting using the ―Executive Information system (EIS). This
area containsthe following modules:

FI = Financial Accounting
CO = Controlling

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Transaction codes are the short path to s specific screen in SAP. They are found by selecting System:
Status. The SPRO transaction code is the shortcut for the business IMG. The standard menu path is always
described from the logistic screen (unless specifically stated from the IMG). Thus the menu path to get to the
IMG
from the Logistics screen is as follows:

ASAP Methodology-1996

Accelerated Systems Applications & Products

1. Project Preparation– Discussion

2. Business Blue Print– Decision
3. Realization– Implementation
4. Final Preparation– Testing (Unit & Quality)
5. Go Live & Support- Production

Phase 1: Project Preparation

In this phase of the ASAP Roadmap, decision-makers define clear project objectives and an efficient
decision-making process. A project charter is issued, an implementation strategy is outlined, and the
project team as well as its working environment are established.
The first step is for the project managers to set up the implementation project(s). They draw up a
rough draft of the project, appoint the project team and hold a kickoff meeting. The kickoff meeting is
critical, since at this time the project team and process owners become aware of the project charter
and objectives and are allocated their responsibilities, lasting throughout the project.
Initial Project Scope/Technical Requirements
As the reference point for initial project scope, and updates or changes to the R/3 implementation,
the project team can use the Enterprise Area Scope Document to compare the enterprise‘s
requirements with the business processes and functions offered by R/3. In this way the project
scope is roughly defined from a business and IT view. The former view concentrates on the
enterprise‘s business processes that are to be supported by IT; the latter focuses on the IT required,
down to the network and memory requirements.

Phase 2: Business Blueprint

In this phase youdocument and define the scope of your R/3 implementation and create the Business
Blueprint. The Business Blueprint is a detailed documentation of your company's requirements in WinWord
format. Application consultants and the Business Process Teams achieve a common understanding of how

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the enterprise intends to run its business within the R/3 System, by carrying out requirements-gathering
workshops.

During Phase 2, the project team completes R/3 Level 2 training; this is recommended as early as possible
and before the workshops start.

Elements of the Business Blueprint

The project team selects the processes that best fit your business from R/3's functional offering, using the
following tools:

 Accelerated SAP Implementation Assistant

 Question and Answer Database (Q&Adb)
 Business Process Master List (BPML)
 R/3 Structure Modeler

Phase 3: Realization

 The purpose of Phase 3 is to configure the R/3 System, in order to have an integrated and
documented solution which fulfills your business process requirements.
 In this phase, configuration of your system is carried out in two steps: Baseline and Final
Configuration. The Baseline configuration is designed to configure about 80% of your daily business
transactions and all of your master data, and organizational structure. The remaining configuration is
done in process-oriented cycles. The Business Blueprint is used as the guide for the system
configuration, done using the Implementation Guide, which will be described in detail in this chapter.
After this, data transfer programs, as well as interfaces, need to be tested.

 Business Process Master List (BPML)

The Business Process Master List (BPML) is initially created in Phase 2 as a report from the Q&Adb.
It is used to identify, plan, schedule, and monitor the configuration and testing of all R/3 business
scenarios and processes within the scope of an implementation. The Business Process Master List
is comprised of Excel worksheets that collectively facilitate the configuration and testing of R/3.

The Business Process Master List is a representation of the R/3 business processes and
transactions that are contained within the scope of the project. These are refined during the
Realization Phase into the project‘s applicable business scenarios and R/3 transactions. The Master
List is the central data repository that feeds all business process information to all subsequent
worksheets. It contains the baseline scope, the cycle plans (you can define up to four configuration
cycles), integration testing plans, and further templates.

 A business process procedure (BPP) is a filled-out template that provides the initial definition for
developing User Procedures and Case/Test Procedures. The results of the business definition
meetings held with the customer provide an input for the initial business process procedures.
Baseline configuration and testing
 From the BPML, it is possible to call up an R/3 System, provided you have installed a local GUI. In
this way, you can branch to the transaction you want to implement to see its functionality. Also, there
is an "outline" icon that allows you to expand and suppress the business process detail, at the

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 enterprise, scenario, case, business process, or BPP level, in order to best facilitate the work that
you‘re doing.
 You can also view linked documents, such as the BPP document or the CI template from the BPML.
Furthermore, when you need to add the same information to multiple cells in a column, you can use
the "Fill Cells of Child Records" icon. This copies the information in the current cell to all its
subordinate cells.
 Lastly, the Business Process Master List has a hypertext documentation linked to it, which guides
you through all creation and maintenance steps.

Quality Checks in the Realization Phase

At the end of Phase 3, the status of deliverables must be checked for completeness and accuracy. The
Project Manager performs this internal quality check, which should not be confused with the external,
independent Quality Assurance Audits after each phase.

The Quick Sizing Tool, or Quick Sizer helps you in reviewing the sizing you have determined in the Project
Preparation phase.

Some of the things validated are the configuration of the Baseline scope, the global settings made for the
R/3 System, and the organizational structure. Furthermore, it's necessary to confirm the creation of archiving
management, verify the existence of a finalized system, and ensure the creation of user documentation and
training materials. Lastly, the preparation for end user training needs to be gone through and approved

Phase 4: Final Preparation

The purpose of this phase is to complete the final preparation of the R/3 System for going live. This includes
testing, user training, system management and cutover activities, to finalize your readiness to go live. This
Final Preparation phase also serves to resolve all crucial open issues. On successful completion of this
phase, you are ready to run your business in your productive R/3 System.

In Phase 4, your end users go through comprehensive training. The last step will be to migrate data to your
new system. In particular a going-live check is carried out and an R/3 Help Desk set up.

CATT Test System

The Computer Aided Test Tool (CATT) can be used to automate test sequences for key business processes.
The results are logged in detail and then reviewed. CATT is also used for quality tests during release
changeovers and for simulating complete business processes.

System administration testing involves testing the activities of a System Administrator, such as managing job
scheduling, administering corrections and transports, reacting to R/3 System alerts and logs.

Phase 5: Go Live and Support

Now you are ready to go live with your productive system! Afterwards, the project team focuses on
supporting the end users, for which training may not be completed. It is also necessary to establish
procedures and measurements to review the benefits of your investment in R/3 on an ongoing basis. Key
SAP Services to support you in this phase include

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  The Online Service System (OSS)
 Remote Consulting
 EarlyWatch® Services

These services encompass a series of remote analyses of specific R/3 System settings, with
recommendations for improving system performance.

Post go-live activities during productive operation

The last phase of the implementation project is concerned with supporting and optimizing the operative R/3
System, both the technical infrastructure and load distribution as well as the business processes. Activities
such as the following are carried out:

 Production support facilities are defined, for example, checking system performance on a daily basis
 Validation of business processes and their configuration
 Follow-up training for users
 Signoffs, etc.

This phase can also include a series of follow-up projects for adding new application components or
automating and improving business processes, such as with SAP Business Workflow. The project manager
monitors the fulfillment of the enterprise goals and the return on investment.

During Phase 5, the first EarlyWatch® session should be held, where experts from SAP analyze the
system‘s technical infrastructure. The aim is to ensure that the system functions as smoothly as possible.
The purpose of SAP's EarlyWatch® Service is to improve the performance of your live R/3 System by
preventing system bottlenecks. The underlying concept of SAP EarlyWatch® Service is prevention: taking
appropriate action before a problem situation develops.

Regular analysis of live R/3 Systems by teams of experts ensures that potential problems can be recognized
and remedied at an early stage. This maintains system availability and performance at a high level. SAP
EarlyWatch® measures the server, database, applications, configuration and system load. The results are
recorded in a status report with recommendations for system tuning.

From early productive operation onwards, SAP EarlyWatch® provides regular performance and error
analyses by evaluating statistical data on the various system components.

System and Release Upgrade

As part of R/3 system maintenance, new releases of the software, including new and enhanced application
components and corrections, are shipped at regular intervals. You will normally need to verify or reconfigure
some of the settings in order to use them.

AcceleratedSAP offers two kinds of roadmaps for moving the software forward to new releases or versions.
One is the Continuous Change Roadmap, which provides ongoing support and assistance for the post go-
live phase, and is described below. The second is the Upgrade Roadmap, which you can use to plan and
carry out an upgrade to your R/3 System.

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Special Release IMGs specific to your system configuration are available. You can read the online
documentation for a new release directly from the IMG.

GAP ANALYSIS

Without knowing where you are, it is hard to decide where to go. A Gap Analysis report
assesses your current compliance to a given standard. Based upon a visit to your company we
will prepare a detailed report about areas that need attention and/or development and make
recommendations on actions to take to become compliant.

If you know that you would like assistance in your registration efforts do not go though this
added expense. Clients who select our Accelerated Registration Program do not need a Gap
Analysis since everything that is needed for registration is included in that program; ensuring
that any gaps are filled.

If you are unsure of your needs, or where you stand, we recommend that you do get an
outside opinion via a Gap Analysis. Do not wait for the Pre-Audit or a Registration Audit to find
out your approach is incomplete or incorrect. That is an expensive way to discover your
problems and moreover the Registrar can not consult and tell you what you can do to solve
any problems. All they can do is point the problems out.

A Gap Analysis report is not for everyone, but it can play an important role in your registration
effort to both guide your activities early on and give you assurance in your approach.

SAP Tickets - What Is That?

Handling tickets is called Issue Tracking system. The errors or bugs forwarded by the end user
to the support team are prioritized under three seviority High, Medium and Low. Each and
every seviority as got its time limits before that we have to fix the error.

The main job of the supporting consultant is to provide assistance on line to the customer or
the organisation where SAP is already implemented for which the person should be very strong
in the subject and the process which are implemented in SAP at the client side to
understand,to analyse,to actuate and to give the right solution in right time.This is the job of
the support consultant.

The issues or the tickets(problems) which are arised is taken care of on priority basis by the
support team consultants.

The work process in support projects are given below for your reference.

1. The customer or the end user logs a call through any tool or by mail (RADIX).

2. Each one of the support team is a part of support group.

3. Whenever a customer logs a call he /she has to mention to which work group (by name).

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4. Once the calls came to the work group the support consultant or the team need to send an
IR (Initial Response) to the user depending upon the priority of the calls.
(Top,High,Med,Low,None)

5. Then the error is fixed, debugged by the support consultant or the team. Then after testing
properly by generating TR(Transport Request through the basis admin)

6. Then it is informed to the end user/customer/super user about the changes which have
moved to the production server by CTS process.

These are the process. In summary, what I understand is that if any configuration or
customization is required to solve the issue, then the consultant have to work on DEV Client,
then the end user will test it in the QA client and after approval the BASIS consultant has to
transport it to the PRODUCTION client.

An example:

Tickets in SD can be considered as the problems which the end user or the employee in the
company face while working on R/3. Tickets usually occur during the implementation or after
theimplementation of the project. There can be numerous problem which can occur in the
production support and a person who is working in the support has to resolve those tickets in
the limited duration, every ticket has the particular deadline alert so your responsibility is to
finish it before that deadline.

To begin with , we should give "TICKET" to you for not knowing it.

Here is an eg of a ticket raise:

End user is not able to

1. Create Sales order for a customer from a New plant , since shipping point determination is
not happened . ( Without Shipping point the document becomes INCOMPLETE and he will not
be able to proceed further like DELIVERY, BILLING).

He raises a ticket and the priority is set in one of the below:

1. Low 2. Medium 3. High.

Now you need to solve this ticket. You would analyze the problem and identify that the SP
configuration has to be done for the new plant.

You would request a transport for DEV CLIENT to BASIS. You do the change and Request one
more Transport to BASIS for QA client. The End user will test the same by creating a sales
order for the new plant and approve it.

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 Finally, you request a transport to move the changes to PRODUCTION. Once the change is
deployed in production the TICKET is closed. What I have given is a small example. You would
get some real issues with severity HIGH in your day-day support.

Projects in SAP

 End to end implementation (1 full cycle )

 Support : Rectifying Errors(Tickets)
 Rollout :Country Reassignment(Assigning the Same project to a different country)
 Upgrade : One version to another
 Migration : One version to another

Server/Arctitecture/Technology

R/3- Real Time 3 Tier Architecture (Client Server Model)

◦ Presentation

◦ Application Logic

◦ Data Management

R/2 is mainframe system

R/3 is client server system

R/3 may be two or three tiered client server (3 tier is recommended)

Systems Landscape Method

 Dummy Version/Trail Box/Sand Box

 Development Server (Configuration & Implementation)– Create/Change/Delete
 Quality Server (Testing)- Display
 Live Server( Go Live)-- Production

Versions

 4.6
 4.7 EE (Enterprise Edition)
 5.0
 6.0 ECC (ERP Central Components)

Types of Implementations in SAP

Types of Implementations:

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 Big Bang Implementation Business One/Mini SAP

SAP Jobs

SAP

Consultant End-user

(Development and Quality) (Production)

Log on Procedure:

 Client : 800
 User id : .................. (case sensitive)
 Password : ............. ..... (case sensitive)

Client : In SAPclient is a unit within SAP system, which is indicatedwith 3 digit key consists of independent
master records and tables. there are almost 000 to 999 clients in sap, 000, 001 are the
standard/master/golden clients as it consists of default data. few clients are assigned for Education/Training
purpose.

Screens in SAP

 SAP Easy Access - Front end/ Client /End-user/ Execution/ Transaction flow

 SPRO - Back End/ Customizing/Consultant/ Configuration/ Settings

SPRO : Sap Project Referential Object.

Methods of data Entry

 Transaction Codes/ Commands /Short Codes- Its an Activity which help us navigate from one
screen to another screen

e.g., /n-Exit from the current session

/nex- Exit from SAP

 Navigation Path- Step Wise-Long Way

Demo/Training Version

 IDES- International demonstration Educational/evaluation System

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  IMG-Implementation Maintenance Guide

 Path for SPRO

 SAP Easy Access Tools Customizing IMG SPRO(Execute Project) SAP Reference IMG

Messages in SAP

 when the message is in GREEN, data is saved.

 when the message is in RED , data have to be rectified and
save
 when the message is in YELLOW , it’s a warning
ignore the message and hit enter till it disappears and save
 If the message is in BLUE , it indicates information, read and hit enter.

________________________________***________________________________

Chapter : 2

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 FI ORGANIZATIONAL STRUCTURE

CLIENT

Company

Company Code

Business Area/Credit Control Area

Command field Standard toolbar

Screen elements Titlebar
Application
Menu bar
toolbar

status bar

 Command field: Command field is for typing transaction codes

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  Menu bar: The menus shown here depends on which application you are working in.
 Standard tool bar: The icons in the system function bar are available on all R/3 screens. Any
icons that you cannot use on a particular screen are dimmed.
 Title bar; The title bar displays your current position and activity in the system.
 Application tool bar : The application tool bar shows you which function are available in the
current applications

ENTERPRISE STRUCTURE CONFIGURATION

Transaction codes in Basic settings

 Define countries OY01

 Define regions ovk2
 Define company ox15
 Define company code ox02
 Define Credit control area ob45
 Assign company code to credit control area 0b38
 Define business area ox03
 Assign company code to company ox16
 Maintain fiscal year variant ob29
 Assign company code to fiscal year variant ob37
 Define posting period variant obbo
 open and close posting periods ob52
 Assign company code to posting period variant obbp
 Define document type&number ranges oba7&fbn1
 Maintain field status variant obc4
 Assign company code to field status variant obc5
 Define chart of accounts ob13
 Assign company code to chart of accounts ob62
 Define account groups obd4
 Define retained earnings account ob53
 Define tolerance group for GLs oba0
 Define tolerance group for users oba4
 classify Gl accounts according document splitting _
 Enter global parameters oby6

1Set countries/ create countries/ define countries

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Menu Path: Spro Sap Ref img sap net weaver general settings set countries

Click on Img activity

Give country code : IN

Enter.
2. Insert regions

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Menu Path is same.

Click on position

Give country code : IN

Enter.

3.Define company

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Company is an independent unit for which you can draw independent financial statements according to
statutory requirements.

Path; Spro Sap ref img Enterprise structure Definition Fin accounting Define Company

Click on NEW ENTRIES.

Enter the Required data , enter and save , enter in Request for the second time.

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4.Edit, delete, check company code.

 A company code is an independent accounting entity( the smallest organizational unit for which
complete self contained set of accounts can be drawn up). It has unique four character key.

 The general ledger (GL) is kept at the company code level and is used to create the legally required
balance sheets and profit and loss statements ,defining company code is mandatory configuration

Path is same

Double click on Edit company code data.

Click on NEW ENTRIES.

Give the data, enter and save, once again enter and save.

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Give the data save , enter again.

5. Define Credit Control Areas

Credit control area is defined to grant credit limits to the customers. it is also defined with 4 character alpha
numeric key. it is a part of SD configuration.

Menu path is same

Spro : Sap ref Img Enterprise structure Definition Fin accounting Define Credit control area

Click onNEW ENTRIES give the data

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Enter and save.

7. Define Business Area

Business areas represent separate area of operations within an organization and can be used across
company codes. They are created for internal purposes. The use of business area is optional.

Path is same.

Click on NEW ENTRIES

Business area Description

Hyd business area for Hyderabad

save

ASSIGNMENTS

8. Assign Company Code To Company

Path: SPRO Sap img Enterprise structure Assignment fin accounting Assign company
code to company.

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Click on position

give Company code

enter

Assign the Company ID created enter and save.

9.Assign Companycode To Credit Control Area

Spro
Menu path: Sap ref img Enterprise structure Definition Fin accounting Assign
company code to Credit control area

Clik on Position

Givecompany codeenter

Assign thecredit control areacreated enter and save.

________________________________***________________________________

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 Chapter 3

FINANCIAL ACCOUNITNG GLOBAL SETTINGS

10.Maintain Fiscal Year Variant

The fiscal year variant contains the definition of posting periods and special periods . special periods are
used for postings that are not assigned to time periods. But to the business process of year end closing , in
total we define 16 periods. In SAP terminology we term financial year as fiscal year.

Path : Spro Sap ref img Fin accounting (New) Fin accounting global settings (New)
Ledgers Fiscal year and posting periods Maintain fiscal year variant.

Click on NEW ENTRIES

Save, Select fiscal year variant which u have created ,,,Double click on periods

Click on NEW ENTRIES.

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11.Assign Fiscal Year Variant To Company Code.

Path is same.

Give company code ,Enter.

Give fiscal year variant Save .

12.Define Posting Period Variant

Path: Spro Sap ref img Fin accounting Fin accounting global settings Document Posting
periods Define posting period variant.

NEW ENTRIES : Give any 4 character code and description enter and save,

13.Open And Close Posting Periods.

Path is same

Click on NEW ENTRIES

Enter data and save.

13.Assign Company Code To Posting Period Variant.

Path is same

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Click on position

Give company code ,Enter. assign the posting period variant created and save.

14. Define Document Types

Path : Spro Sap ref img Fin accounting Fin accounting global settings Document
Documentheader Document types Define document type

Click on POSITION
Give the document type as SA enter
Double click on SA ( G/l account document)

Click on number range information, Give the company code , click on intervals

Click on interval,

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Give the data enter and save.

15. Maintain Field Status Variant

Path : Spro Sap ref img Fin accounting Fin accounting global settings Document Line
items Controls Maintain field status variant.

Select 0001 row

Select copy as icon

Remove 0001 and give any 4 alpha numeric character field status variant, enter it gives a message click on
copy all, enter and save.

Select field status created , double click on field status group

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Double click on G001, double click on general data, select TEXT as required entry.

16. Assign Company Code To Field Status Variant.

Path is same.

Click on position

Give the company code

Assign field status variant created

Save

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 Chapter 4

GENERAL LEDGER ACCOUNTING SETTINGS

CHART OF ACCOUNTS

Definition

 The chart of accounts is a variant which contains the structure and the basic information about
general accounts.
 You define or edit the existing chart of accounts with a four character ID.
 The chart of accounts must be assigned to a company code.

Chart of accounts contains:

 chart of accounts key

 description
 maintain language
 length of GL account number
 manual creation of cost center elements
 group of chart of accounts
 block indicator.

Different types of chart of accounts:

 Group of chart of accounts
 Operative chart of accounts
 Country specific chart of accounts.

17.Edit Chart Of Accounts

Path : Spro Sap ref img Fin accounting General ledger accounting GL accounts Master data
Master data Preparations Edit chart of accounts.

Click on NEW ENTRIES

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Give the data enter and save.

18.Assign Chart Of Accounts To Company Code

Path is same: click on position , give company code,

assign chart of accounts created enter and save

19. Define Account Groups.

Here GL accounts are categorized according to group categories

Path is same till preparations select Define Account Groups

Click on NEW ENTRIES

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20.Define Retained Earnings Account:

Retained earnings account is created to carry forward balances from one financial year to another
or from one month to another month.

Path is same till Preparations select Define Retained Earnings Account

P & L statement Account

X 1000
enter save , enter once again.

21.Define Tolerance Group For G/L Accounts

Tolerance group means setting amount limits for a particular gl account.

Path : Spro Sap ref Img Fin accounting General ledger accounting Business transactions
Open item clearing Clearing differences define tolerance group for G/L accounts

Click on NEW ENTRIES

Enter the data and save.

22. Define Tolerance Group For Users (Employees)

Path is same.

Here we define tolerance limits for vendors and customers

Click on NEW ENTRIES

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Enter the data and save.

20. Classify G/L Accounts For Document Splitting

Path : Spro Sap ref img Fin accounting (new) Fin accounting global settings (new)
business transactions document splitting Classify G/l accounts for document splitting

Give Chart of accounts Enter

Click on New entries

Enter and save.

21.Enter Global Parameters

Path : Spro Sap ref Img Fin accounting Fin accounting global settings Company code
Enter global parameters

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Here, we can view few of the important basic settings created.
Click on position

Give company code, enter Double click on company code.

Check the given boxes.

Save.

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 CREATE A G/L ACCOUNT

 Centrally
 At chart of accounts
 At company code

GL accounts
Path : Accounting Fin accounting General ledger Master records Individual processing

Centrally TC: FS00

In chart of accounts TC : FSP0
In company code TC: FSS0

1. Creating 1 liability in FS00.

GL account 1000
Company code HCL1
Choose create icon or goto menu bar select GLaccount Create

.
Account group:____________
Select balance sheet ( if you are creating B/S account)

Give short text :___________

Long text: _____________

Select
Select only balance in local currency
Select line item display
Select open item management
Sort key 001 (press f4 for details)

Select
Give field status group ____
Enter and save.

2.Creating 1 asset in FS00

Give GL account 2000

Give company code_______

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Click on create icon
Account group _______
Select balance sheet ( if you are creating b/s accounts)

Give short text :_ __________

Long text: _____________

Select
Select only balance in local currency
Select line item display
Select open item management
Sort key 001 (press f4 for details)

Select
Give field status group ____
Enter and save.

3. Creating 1 expense account in FS00

Give GL account __________

Give company code_______
Click on create icon
Account group _______
Select profit and loss account ( if you are creating p/L accounts)

Give short text :_ __________

Long text: _____________

Select
Select only balance in local currency
Select line item display
Sort key 001 (press f4 for details)

Select
Give field status group ____Enter and save

4. Creating 1 income account.

Give GL account __________
Give company code_______

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Click on create icon
Account group _______
Select profit and loss account ( if you are creating p/L accounts)

Give short text :_ __________

Long text: _____________

Select
Select only balance in local currency
Select line item display
Sort key 001 (press f4 for details)

Select
Give field status group ____

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 Chapter 4

POSTING A TRANSACTION/ INVOICE:

End user part
In SAP in order to post GL Invoice apart from other important attributes, Posting keys have to be updated
the standard posting keys for debit is 40 and credit key is 50. the account key is S, document type is SA.

for example : 40 Rent paid a/c Dr 5000

50 To Bank a/c 5000
(Being rent paid )
TC: F-02

PATH : Sap easy access Accounting Financial accounting General ledger Posting General
ledger posting (F-02)

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ENTER

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Enter and save. Enter again.

 To display the GL document TC : FB03

 To display GL account Line item balances TC: FBL3N
 To display GL account balances TC: FS10N

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 Chapter 5
ACCOUNTING DOCUMENTS

 Hold Document:These documents are used for temporary entry purpose where we can held a document for 2
days. hold documents can be created , edited, deleted and executed. Program to convert held documents is
RFTMPBLU.

1. Create Hold Document : f-02

PATH : Sap easy access Accounting Financial accounting General ledger Posting General
ledger posting (F-02)

Enter ledger postings as usual

For example : 40 Rent paid a/c Dr 5000

50 To Bank a/c 5000
(Being rent paid )
Note: dont save the entry.

Select document on menubar, select Hold. Give Temporary number (any number) as the document saves
on that number temporarily.

2. Post Held Documents

TC: F-02

Update the header details ( date, period , type, company code, currency)
Select document on menubar and select Get held documents
Update temporary number given enter if required to save in the database save it or u can delete it.

3. Display documents

TC: FB03

Update the required fields enter

 Park documents: These are also used for temporary entry purpose. we can park a document for
maximum for 1 month, required to consider approval by higher authorities to post it in company code and
mostly parked higher amount documents only. the difference between hold and park document is
temporary document such number is not required in park documents.

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1. Create park document

TC: F-65

PATH : Sap easy access Accounting Financial accounting General ledger Posting General
ledger parking (f-65)

Enter ledger postings as usual save it

For example : 40 Bank a/c Dr 50000

50 To Sales a/c 50000
(Being Sales done )
2.Change park document: Here we change few of the fields only like amount, text , value date.
PATH : Sap easy access Accounting Financial accounting General ledger Document
parked documents Change (FBV2)
Update the fields ... hit enter

Make changes if any , enter and save.

2.Display Park Document:

PATH : Sap easy access Accounting Financial accounting General ledger Document
parked documents Display (FBV3)

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4.Display Changes:

PATH : Sap easy access Accounting Financial accounting General ledger Document
parked documents Display (FBV5)
Here we can view all changes made to a particular document. Update the required fields.

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 Fast data entry or Account Assignment Model:
TC: F-02

PATH : Sap easy access Accounting Financial accounting General ledger Posting General
ledger posting (f-02)
This is one of the accounting document where we can post compound entries(multiple entries in
one document) which are similar in nature for posting
update only header data
Hit fast data entry as shown below

Enter

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 double click on each blue line item and update the text until the last item ,, then we can save a document. This is time
consuming process so not advisable accounting document.

 Recurring or sample documents

In this document we record entries which are recurring in nature. in other words provisions which are recurring every
month. it is updated through a special document type X1. for example salaies, rent , bills etc... it is updated by a batch
input session.
1.Create document type X1
TC : OBA7
Click on position give document type = X1 enter

Double clik on x1,Clik on Number range Information

Give company code, click on change Intervals click on interval

update the intervals

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 Enter and save and hit enter again in Number range transport request.

2. Create recurring document

TC : FBD1
Menupath: Sap easy access Accounting Financial accounting General ledger posting
Reference document recurring document (fbd1)

Update first run on date : starting date and month of recurring expense

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Last run on : Ending date and month (usually it will be financial year i e (April to March )
interval in months : hit F4
Rundate : date to be updated for batch input (either 31 or 1 )
Post An Expense Invoice
for ex: 40 Rent paid a/c DR 5000
50 To Bank a/c 5000

3. Change Recurring document TC: FBD2

Menupath : : Sap easy access Accounting Financial accounting General ledger Document
Reference document recurring document change (fbd2)
Here we can edit particular fields only ( amount, value date, text fields )
update the fields (document number, company code, fiscal year)
hit enter

Double click on one of the blue line item ( rent paid )

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Edit the data if required enter and aND save.

4. Display Recurring document: TC : FBD3

Menu path : : Sap easy access Accounting Financial accounting General ledger Document
Reference document recurring document Display (FBD3)

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 enter .. Here
we can view the document .

5. List the recurring documents : TC : F.15

Menu path : Sap easy access Accounting Financial accounting General ledger Periodic
processing Recurring entries List (F.15)
Here all the recurring documents pertaining to the period updated will be listed for batch input

execute (F8)

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 6. Execute the Recurring documents TC : F.14
Sap easy access Accounting Financial accounting General ledger Periodic processing
Recurring entries Execute(F.14)

Execute F8 , A message is displayed " Session ABC is created "

Select System on menubar - sessions - batch input

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Select ABC session as shown click on process,

Click on process , select display errors only (radio button) Click on process again

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click on Exit Batch input.

7. View or Display the recurring document posting for the current month (TC : FB03)

Update document number, fiscal year, company code,...enter.

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We can view the document posted for the current month as 31.10.2016 Last date of the month

Chapter 6

OPEN ITEM MANAGEMENT

OPEN ITEM MANAGEMENT is an indicator which is set while you create a particular G/l master record like
liabilities assets if we check this indicator we can view open item, cleared items and all items of a particular
G/L accounts open item means amount which is outstanding to pay cleared item means amount which is
payed. All items means open

There are 3 types of payments :

1. Standard payment
2. Partial payment
3. Residual payment

Standard means clearing the total invoice amount at once

Partial means clearing the any half of the total invoice
Residual means clearing the remaining balance in the total invoice.

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 1. Create Salary Payable a/c (Outstanding liability): FS00

GL account
Company code
Choose create icon or goto menu bar select GLaccount Create

.
Account group:____________
Select balance sheet ( if you are creating B/S account)

Give short text :___________

Long text: _____________

Select
Select only balance in local currency
Select line item display
Select open item management
Sort key 001 (press f4 for details)

Select
Give field status group ____
Enter and save.

2. Post G/L invoice : F-02

EX : Salary paid A/c Dr 60000
To salary Payable A/c 60000
( Being salary payable on monthly basis )

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4. View the G/l line items :
Menu path : Sap easy access – Accounting - Financial accounting – G/L edger – Account – FBL3N - Enter

Company code :
G/L Account : Press f4 and select salary payable
Select All Items (open+cleared)
Click Execute f8
U can see the document posted shows status in red color . it indicated amount outstanding and balance in
local currency shows open balance (outstanding to pay)

5. Outgoing payment ( Standard ) :

Sap easy acess – financial accounting – General ledger – Posting – f-07 outgoing payment – Enter

Document date : Press f4 and select f2 Type : SA Company code : Cbr1

Period : 02 Currency : inr

BANK DATA:

Account : Bank
Amount : 60000
Value date : Press f4 and select f2
Text : Being total salary paid

OPEN ITEM MANAGEMENT :

Account : Press f4 Salary payable)

Enter
Click on Standard tab
See that not assigned is zero
Enter - Save

6. View the G/l line items :

Menu path : Sap easy access – Accounting - Financial accounting – G/L edger – Account – FBL3N - Enter

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Company code :
G/L Account : Press f4 and select salary payable
Select All Items (open+cleared)
Click Execute f8
The status shows in green color which indicated amt paid.Amount in local currency as 0.

7. Post an GL invoice to make Partial Payment : F-02

EX : Salary paid A/c Dr 60000
To salary Payable A/c 60000
( Being salary payable on monthly basis )

8. View the G/l line items :

Menu path : Sap easy access – Accounting - Financial accounting – G/L edger – Account – FBL3N - Enter

Company code :
G/L Account : Press f4 and select salary payable
Select All Items (open+cleared)
Click Execute f8

9. . Outgoing payment (Partial) :

Sap easy access – financial accounting – General ledger – Posting – f-07 outgoing payment – Enter

Document date : Press f4 and select f2 Type : SA Company code : Cbr1

Period : 02 Currency : inr

BANK DATA:

Account : Bank
Amount : 20000 (partial amount)
Value date : Press f4 and select f2
Text : Being partiall salary paid

OPEN ITEM MANAGEMENT :

Account :( Salary payable ) F4

Enter

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 Click on partial payment tab

Double click on payment amount

See that not assigned is zero

Double click on the blue line item (It requires text)

Text : Being partial Salary paid

ENTER - Save

10. View the G/l line items :

Menu path : Sap easy access – Accounting - Financial accounting – G/L edger – Account – FBL3N - Enter

Company code :
G/L Account : Press f4 and select salary payable
Select All Items (open+cleared)
Click Execute f8
11. Outgoing payments (Residual) : F-07
Document date : Press f4 and select f2 Type : SA Company code : Cbr1

Period : 02 Currency : inr

BANK DATA:

Account : Bank
Amount : 40000 (Remaining amount)
Value date : Press f4 and select f2
Text : Being remaining salary paid

OPEN ITEM MANAGEMENT :

Account :( Salary payable ) F4

Enter

Click on Residual payment tab

See that not assigned is zero

Save.

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11. View the G/l line items :
Company code :
G/L Account : Press f4 and select salary payable
Select All Items (open+cleared)
Click Execute f8

Chapter - 7

CURRENCIES

In SAP to convert from one currency to another currency we have to update conversion keys.
There are 3 conversion keys :

1.Average rate key

2. Bank Selling rate Key
3. Bank Buying ratekey

Currencies are configured T client level but not at Company code level.

Configuration steps:

1.Check Currency Codes

Menupath : Spro Sap Ref img Sap Net weaver General Settings Currencies Check Currency codes

Check for INR update. enter save.

ARCHANA.K Page 55
2. Define translation ratios for currency translation
Menupath : Spro Sap Ref img Sap Net weaver General Settings Currencies Define translation
ratios for currency translation
Click on yes

update exchange rates and other fields. enter and save.

3. Enter exchange rates

Menupath : Spro Sap Ref img Sap Net weaver General Settings Currencies Define translation
ratios for currency translation

click on New entries

update the fields enter and save.

4. Create Exchange rate gain a/c in FS00

5. Create Exchange rate loss a/c in FS00
6. Define accounts for exchange rate differences
7. Post Gl invoice with foreign currency
8. View the GL balances
9. Payment in local currency
10. View the GL balances

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 Chapter - 8
ACCOUNTS PAYABLE

Accounts Payable is one of the core sub module in SAP FI. It deals with vendors or suppliers data. It deals with
Purchases with suppliers It is also part of Material Management. There are 2 types of Transactions ;-
1. Normal Transactions: These transactions deals with purchases made and payments to the suppliers
(Standard, Partial, Residual )

2. Special Transactions : These transactions are not reflected in the related reports (ledger reports)
a) Down payments,
b) Advances paid etc in order to reflect in reports they have to be transferred to normal transactions .

We create vendors at 3 levels

1. Finance level (Company code data)

2. Material level ( Purchasing organization data)
3. Central Level ( Company code and purchasing data)

We usually create a vendor at central level.there are 3 types of vendors

1.Domestic vendor
2.Foreign or International vendor
3.One- time vendor.

Configuration steps:

 Define Account group with Screen Layout

Path: SPRO--> IMG--> F.A--> A/R's & A/P's--> Vendor Accounts-->Master Data-->Preparations for
Creating Vendor Master Data--> Define Account Groups with Screen Layout--> New Entries-->
Account Group, Name-->

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 Enter--> Double Click on Comp. Code Data--> Double Click on Account Mgmt--> Reconciliation
Account as Required Entry--> Enter & Save

 Create Number Ranges for Vendor Accounts

Path: Path Same till Preparations for creating Vendor Master Data--> Create Number Ranges for
Vendor Accounts-->Intervals--> Interval--> No, From No, To No

Enter & Save

 Assign Number Ranges to Vendor Account groups

Path: Path Same till Preparations for Creating Vendor Master Data--> Assign Number Ranges to
Vendor Account groups-->Position--> Account Group--> Give No Range No

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  Create Sundry Creditors in FS00
Reconciliation A/c-Vendors, Sort Key- 012, Field Status Group- G067

 Create Vendor Master Records

Path: SAP Easy Access--> Accounting--> FA--> A/P's-->Master Records--> Maintain Centrally-->
XK01-->A/c Group, Co. Code--> Enter

Enter the Data--> Enter & Save

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  Posting With Vendor- F-43
(Posting Keys are 31-Dr, 40-Cr)

Vendor A/c Dr
To Purchases/ Materials A/c

Path: SAP Easy Access--> A/cing--> FA-->A/P's--> Document Entry--> F-43

Enter and save

Error Message: In co. Code _____ the No Range 19 is missing for the Year 2012
Open a New Session--> FBN1--> Co. Code--> Intervals--> Interval--> No, Year, From No, To No-->
Enter & Save

 To View the Document

Path: SAP Easy Access--> Accounting--> FA--> A/P's--> Account-->
FK10N, FBL1N

 Outgoing Payment-- F-53

 Three Types of Payments-- Standard, Partial, Residual

Menu Path: SAP Easy Access--> A/cing--> FA--> A/P's-->Document Entry--> Outgoing Payment-->F-
53

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 Enter the Data-->Enter &Save

Error Message: In co. Code _____ the No Range 15 is missing for the Year 2012
Open a New Session--> FBN1--> Co. Code--> Intervals--> Interval--> No, Year, From No, To No-->
Enter & Save

Error Message: the Entry____ is missing in Table T043G

Open a New Session--> SM30--> Table/View--> Click on Maintain--> New Entries--> Give Co. Code
--> Enter & Save

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  Special Transactions
Advances or Down Payments

 Create Advance Paid/ Down payments in FS00

Reconciliation A/c- Customers, Sort Key- 012, Field Status Group- G067

 Define Alternative Reconciliation Account for Down Payments

Path: SPRO--> IMG-->FA--> A/R's& A/P's-->Business Transactions-->Down payment Made-->Define
Alternative Reconciliation Account for Down Payments

Double Click on Down Payments on Current Assets-->Chart of Accounts--> Enter-->

Reconciliation A/c-- Sundry Creditors, Spl G/L Account--> Advance Paid--> Enter & Save

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  Down Payment-- F-48
Path: SAP Easy Access--> A/cing--> FA--> A/P's--> Document Entry-->Down Payment--> F-48

Enter the Data--> Enter & Save

 Posting With Vendor- F-43

(Posting Keys are 31-Dr, 40-Cr)

Vendor A/c Dr
To Purchases/ Materials A/c
MenuPath: SAP Easy Access--> A/cing--> FA-->A/P's--> Document Entry--> F-43

Enter & Save

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  Transfer from Special to Normal--F-54
Path: SAP EASY Access--> A/cing-->FA--> A/P's--> Document Entry-->Down Payment-->F-54

Enter the data--> Enter & save

 Clearing the Document

Path: SAP EASY Access-->A/cing-->FA-->A/P's-->Account-->F-44

Enter the data-->Enter & Save

ARCHANA.K Page 64
 Chapter 9

ACCOUNTS RECIEVABLE:
Accounts Receivable is one of the core sub module in SAP FI. It deals with vendors or
customers data. It deals with sales data It is also part of Sales Distribution There are 2
types of Transactions ;-

1. Normal Transactions: These transactions deals with Sales made and payments
received from customers.
(Standard, Partial, Residual )

2. Special Transactions: These transactions are not reflected in the related reports
(ledger reports)
a) Down payments ,
b) Advances Received etc in order to reflect in reports they have to be transferred to
normal transactions.

We create vendors at 3 levels

1. Finance level (Company code data)

2. Sales level ( sales organization data)
3. Central Level ( Company code and Sales data)

We usually create a vendor at central level.there are 3 types of vendors

1.Domestic customer
2. Foreign or International vendor
3.One- time customer.

Configuration steps:

Define Account group with Screen Layout

Path: SPRO--> IMG--> F.A--> A/R's & A/P's--> Customer Accounts-->Master Data--
>Preparations for Creating Customer Master Data--> Define Account Groups with Screen
Layout--> New Entries--> Account Group, Name-->

ARCHANA.K Page 65
Enter--> Double Click on Comp. Code Data--> Double Click on Account Mgmt--> Reconciliation Account as
Required Entry--> Enter & Save

 Create Number Ranges for Customer Accounts

Path: Path Same till Preparations for creating Customer Master Data--> Create Number Ranges for
Customer Accounts-->Intervals--> Interval--> No, From No, To No

Enter & Save

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  Assign Number Ranges to Customer Account groups
Path: Path Same till Preparations for Creating Customer Master Data--> Assign Number Ranges to
Customer Account groups-->Position--> Account Group--> Give No Range No

Enter & Save

 Create Sundry Debtors in FS00
Reconciliation A/c- Customers, Sort Key- 031, Field Status Group- G067
 Create Customer Master Records
Path: SAP Easy Access--> Accounting--> FA--> A/R's-->Master Records--> Maintain Centrally-->
XD01-->A/c Group, Co. Code--> Enter

Enter the Data-->Enter & Save

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  Posting With Customer- F-22
(Posting Keys are 01-Dr, 50-Cr)
Path: SAP Easy Access--> A/cing--> FA-->A/R's--> Document Entry--> F-22

Enter the Data-->Enter & Save

Customer A/c Dr
To Sales A/c Cr
Error Message: In co. Code _____ the No Range 18 is missing for the Year 2012
Open a New Session--> FBN1--> Co. Code--> Intervals--> Interval--> No, Year, From No, To No-->
Enter & Save

 To View the Document

Path: SAP Easy Access--> A/cing--> FA--> A/R's--> Account-->
FD10N, FBL5N

 Incoming Payment-- F-28

Three Types of Payments-- Standard, Partial, Residual

Path: SAP Easy Access--> A/cing--> FA--> A/R's-->Document Entry-->F-28

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 Enter the Data--> Enter & Save

Error Message: In co. Code _____ the No Range 14 is missing for the Year

Open a New Session--> FBN1--> Co. Code--> Intervals--> Interval--> No, Year, From No, To No-->
Enter & Save

 Special Transactions in Accounts Receivable :

Advances or Down Payments

 Create Advance Received/ Down payments in FS00

Reconciliation A/c- Customers, Sort Key- 031, Field Status Group- G067

 Define Alternative Reconciliation Account for Down Payments

Path: SPRO--> IMG-->FA--> A/R's& A/P's-->Business Transactions-->Down payment Received--
>Define Reconciliation Account for Customer Down Payments-->

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 Double Click on Down payment--> Chart of A/c's-->Enter

Give Reconciliation A/c-- Sundry Debtors, SPL G/L A/c-- Advance Received--> Enter & Save

 Posting With Customer towards down payment received- F-22

(Posting Keys are 01-Dr, 50-Cr)
Path: SAP Easy Access--> A/cing--> FA-->A/R's--> Document Entry--> F-22

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 Enter the Data-->Enter & Save
Customer A/c Dr
To Sales A/c Cr
 Transfer from Special to Normal--F-39
Path: SAP EASY Access--> A/cing-->FA--> A/R's--> Document Entry-->Down Payment-->F-39

Enter the data--> Enter & save

 Clearing the Document

Path: SAP Easy Access-->A/cing-->FA-->A/P's-->Account-->F-32

 View the balances FBL5N

ARCHANA.K Page 71
 Chapter -10
DUNNING

Dunning means ―sending reminder notices to the liable customers after the due date
elapsed to make the payments”.
It is configured at company code level and dunning procedure have to be created and
assigned to customer master data.there are almost 9 dunning levels
1 to 7 : Normal or approach level
8 : Special level
9 : Legal level
Dunning charges are laid on customer for the expenses incurred to send notices etc..
Minimum amounts are collected from customers per each dunning level.

Configuration steps:

1. Define Dunning areas

Menu path : Spro - sap ref img - financial accounting - accounts receivable and accounts
payable - business transactions - Dunning - Basic settings for dunning - Define dunning
areas

Enter and twice and save.

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2. Define dunning procedures
Spro - sap ref img - financial accounting - accounts receivable and accounts payable -
business transactions - Dunning - dunning procedure - define dunning procedure

Enter twice and save

Click on Dunning levels

Click on Charges

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Enter , click on Minimum Amounts

Click on Dunning Texts, click on new company code,

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Check Dunning by dunning area and Seperate notice per dunning level of your Company Code
Click on Dunning Texts again

Update the above details go back and save.

Dunning procedure is saved.

2. Assign Dunning procedure to customer master data XKO2

Give company code , customer
Click on company code data tab

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Click on correspondence tab
Update dunn procedure created
Enter and save.

3. Post customer invoice F-22

4. View the Customer balances FBL5N

END USER PART

1. RUN DUNNING PROGRAM

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 Chapter -11
BANKING FUNCTIONS

There are two types of banking functions in SAP.

Manual Banking:
In manual banking, checks are manually created and are non sequential.

Configuration steps:
1. Define House banks
Menu path: Spro - sap ref img - financial accounting - bank accounting - define house banks
Click on New entries
Update the Bank details as below

Double click on Bank accounts, update the details given below

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Enter and save.

2. Create Chech Lots : FCHI

Click on change and and click on create

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Enter and save

3.Create Check Information : FCH5

Give Payment document number (cheCk in FBL1N based on KZ document type
Update the other fields as given below

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update city enter and save

4.Change Check information : FCH6

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5. Check Cancellation : FCH8

6. Cbeck Register FCHN

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 Automatic payment program (APP)
In automatic payments, the checks
are automatically generated and are
sequential.
In SAP, Cheques are spelled as
CHEK/CHECK and we work on
house banks which meeans a
company code consists of more than
3 banks maximum of 16 banks. each
bank is identified with branch Id or
keyand have to be assigned to
vendor master data.

Understanding the features..

 Indentifying the best practices to improve automatic
payments.
 Overview of configuration to enable APP
 Learn how the business transactions are integerated
with automated payments.
 Explore how SAP facilitates Automatic payments
through NEFT,RTGS.
 How to make mass payment transactions involving the
customers and vendors.
 How to adjust advance payments with the invoices

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 …
 SAP Automatic payment program involves configuration
in which company codes are integrated ..payment method
and bank details are configured sp that automatically in
payment run it picks up payment based on the bank …

 We can assign different payment methods to each country

and also the assign the same to vendor master data so that
the flow of data take s place.

 Each bank is idendified with bank branch id.. In this way

we can configure more than banks for each company code..

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 A. Bank selection or payment program selection.

(FBZP)
Configuration steps:

1.A Set up all company codes for payment transactions.

Here we configure all compny codes like paying
company code and sending company code
parameters .. Intialise the maximum discount,
special gl transactions to be paid...

Update the required fields like company code , paying company code and sending company code, check the
relavent fields

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Enter and save.
2.

Set up paying company code for

payment transactions

 Here we configure only paying company code

transactions which can be third party or central
company code where on behalf of company code does
the automatic payments…. Set up minimum incoming
and outgoing limit, set exchange rate differences if any
…..

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3.

Update the fields

like
paying company code, Minimum amt for incoming payment , Minimum outgoing payment
update the form data as F110_D_AVIS ENTER AND SAVE.

4.

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 Set up payment method per company

code for payment transactions.

 Here we configure paying company code details like

payment method . Maximum and minimum amount
limit, bank selection control, grouping of items, form
data ,, sender details etc

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2. Assign the payment method to vendor master data : XK02
Give company code and vendor (press F4)
Select payment transactions in company data tab
Update payment method as ―C‖

Enter and save.

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3. Create check lots for automatic payment positings : FCHI

4. Post a vendor invoice : F-43

Vendor a/c
To raw materialsa/c
___________________________________________________________________________________

END USER PART

1. Run the Automatic program

Transaction code : F110

Give company code and Identification feature (any 5 character alpha numeeric code)
click on Parameter tab
update the required fields

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Save Go back
Click on proposal tab
update the required fields

Hit enter till the status is “ Payment proposal has bee created”
Clik on propasal tab again
Select All accounting clerks
Double click on payment amount (grey line item)
Double click on payment amount (grey line item) again

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Click on reallocate
Update payment method, bank and account id, due date. Clik on √ enter save and go back

Click on payment run tab

Click on start immediately

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Hit enter till u get

Click on printout datamedium

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Click on maintain variants
Select all selection screens

Click on continue

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Update the above shown fields click on attributes

Give the meaning, check the box “only for background processing “
Save and go back and save again.

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 Hit enter.
2. VIEW OUTPUT OR SPOOL

Click on TYPE based on date (payment summary, Payment advice, Check)

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3. View the vendor Balance : FBL1N
Payment method is updated as” C “ it indicates automatic payment through Check.

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4. Check Register : FCHN

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 Chapter 12

CASH JOURNAL
Cash Journal in sap means petty cash book where the cashier maintains the petty cash on impressed
system with the minimum amount

Cash journal will not accept negative balances. It is maintained the client level and can be weekly, daily
and on monthly basis.

It is applicable to g/l accounts vendor masters and customers masters

Configuration steps:

1. Create g/l account for Cash journal :

Spro – sap reference img – financial accounting – bank accounting – business transactions – cash journal
– create g/l account for cash journal –

A/c group: Assets

Sht text : Cash journal
Long text : Cash journal a/c
Tick open item management
Tick line item display
Sort key : 001
Field status grp: G005
Tick post automatically only
Tick relevant to cash flow
Enter and save.

2. Define no range intervals for cash journal documents:

Spro – sap reference img – financial accounting – bank accounting – business transactions – cash
journal – define no range intervals for cash journal documents
give company code: click on intervals – click on interval
No From no To no
01 01 100

Enter - save

3. Set up Cash journal :

Spro – sap reference img – financial accounting – Bank accounting – Business transactions – cash
journal – set up cash journal – New entries
For example:(DT = document type)
Cocd CJN Crncy DT DT DT DT DT DT Cash Journal Name
cbr1 820 inr SA KR KZ DR DZ Cash journal for .......ENTER – Save

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 4. Create incoming cash a/c and outgoing cash a/c: FS00

A/c group: Incomes

Sht text : Incoming cash
Long text : Incoming cash a/c
Tick line item display
Sort key : 001
Field status grp: G005
Tick post automatically only
Enter and save.

5. Create Outgoing cash a/c

A/c group: expenses
Sht text : Outgoing cash
Long text : Outgoing cash a/c
Tick line item display
Sort key : 001
Field status grp: G005
Tick post automatically only
Enter and save.

6. Create change, delete business transaction :

Spro – sap reference img – financial accounting – bank accounting - business transactions – cash
journal – create change, delete, business transactions

New entries

Cocd BUSITRANS G/L ACCOUNT CASH JOURNAL BUSINESS

CBR1 R (F4) 3009 (f4) Incoming cash a/c

CBR1 E 4009 Outgoing cash a/c ENTER – Save

7. Set up print parameters for cash journal:

Spro – sap reference img – financial accounting – bank accounting – business transactions – cash
journal – Set up print parameters for cash journal
Select the row 0006,
Click on copy as (F6)
Remove the code and give your company code

ENTER – Save

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 END USER PART

1. Post cash journal:

Sap easy access – accounting – financial accounting – banks – incoming – bank statement

FBCJ cash journal

Click on change cash journal

Give your Company code:

Give CJN (press F4) ENTER

Click on Cash receipts tab

Business transaction Amount G/ L TEXT

Incoming A/c (F4) 5000 3009 ( incoming cash ) Being petty cash received
ENTER – Save tab
click on post

Click on Cash payment tab

Business transactions Amount G/L TEXT

Outgoing cash a/c 2300 4009 ( outgoing cash ) Being petty cash received
Enter –Save
click on post

select the row - select go to on Menu bar – click on follow on document (to view the journal
entry which is posted automatically)

2. View the GL balances: FBL3N

Give Company code:

Give GL (Cash journal a/c) :

Select All items

Execute F8

ARCHANA.K Page 100

 Chapter 13

TAXATION
In Sap Taxation plays a vital role which consist of input tax, output tax, additional taxes etc.

Input tax is a tax which is charged when you make purchases and it is identified with a default key
called ( V )

Output tax is a tax which is charged when you make sales and it is identified with ( A)

These tax codes have to be assigned to company code and non taxable transactions and Raw materials
or Purchases and Sales A/c

1. Check Calculation procedure :

Spro – sap reference img – financial accounting – financial accounting global setting – tax on
sales/purchases – Basic settings – check calculation procedure – click on img activity – double click
on define procedure –New entries
Procedure Description
Any 6char code Tax procedure

Enter – Save – select the row created – Double click on control data
New entries
ST C TYPE DESCRIPTION FROM TO ACCOUNT KEYS
1 BASB BASE AMOUNT
2 MWAS OUTPUT TAX 1 1 MWS
3 MWVs INPUT TAX 1 1 VST

Enter – save

2. Assign country to calculation procedure:

Spro – sap reference img – financial accounting – financial accounting global setting – tax on sales
purchases – basic settings – assign country to calculation procedure –
Click on img activity
Click on position
Give Country : IN
Enter
remove the code and give tax procedure created
Enter – save

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 3. Define Tax codes for sales and purchases:
Spro – sap reference img – financial accounting – financial accounting global setting – tax on sales /
purchases - basic settings – Define tax codes for sales and purchases

Country : IN
Tax code : A1 - Enter outputtax 5% (for example)
Tax type : A
Enter - output tax :5%
Place the cursor on input tax
click on De-active line Save

Remove tax code a1 and give V1 – Enter InputTax 5%

Tax type V
Enter – Input tax :5%
place the cursor on output tax

click on De-active line

Enter - save

4. Create vat payable a/c and vat receivable a/c:

A/c group: Liability

Sht text : Vat Payable
Long text : Vat Payable a/c
Tick Open item management
Tick line item display
Sort key : 001
Field status grp: G001
Tick post automatically only
Enter and save.

A/c group: Asset

Sht text : Vat Receivable
Long text : Vat Receivable a/c
Tick Open item management
Tick line item display
Sort key : 001
Field status grp: G001
Tick post automatically only
Enter and save.

ARCHANA.K Page 102

 5. Assign tax code for non taxable transactions:

Spro – sap reference img - financial accounting – financial accounting global setting –tax on sales /
purchases – posting – define tax codes for non taxable transactions
click on position
Give company code
Enter
INPUT TAX OUTPUT TAX

V1 A1 Enter - save - Enter again

6. Define tax accounts:

spro – sap reference img – financial accounting - financial accounting global setting – tax on sales/
purchases – posting – define tax accounts
double click on MWS( output tax )
chart of accounts
Enter
check the box Tax code – Enter – save
Tax code Account
A1 press f4 and select vat payable
Enter – save
Go back one step
double click on VST (input tax )
Check the boxtax code – Enter
Tax code Account
V1 press f4 and select Vat Receivable

Enter – save

7. Assign tax codes to raw materials and sales a/c : FS00

Give raw materials a/c number (F4):

Company code :
Click on change
Click on control data tab
Tax category : A1 (F4) Save

Give Sales a/c number (F4):

Company code :
Control data tab
Tax category : V1 (F4) Save

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1. Post a customer invoice : F
pstkey : 01 Account : customer

Enter

Amount : 48000 for example

Check the box calculate tax

Text : Being sales done and tax deducted

Pstkey : 50

Account : sales

Enter

Amount : *

Text : +

Enter – go to document on menu bar – select stimulate – double click on the blue line item-

Text : Being sales done and tax deducted

Enter - save

Overview of CIN and With Holding Taxes:

Cin means country India version . It deals with excise duty and education cess and also consist
of sales tax with holding taxes and excise registers.

1. Excise duty : It is a levy on a manufacturing product in india . It has 3 sub categories

 Basic excise duty ( BED)

 Additional excise duty (AED)
 Special excise duty (SED)

2. Sales tax : There are two types in sales tax

 VAT or LST ( local sales tax )
 LST
Ex : Suppose vendor manufactures a product X

Gross Price Delivery charges Packing charge Net price

100 Rs 10 Rs 5 Rs 115 Rs

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 Basic excise duty on net price = 11.5

Additional excise duty = 5.75

Total Price = 17. 25

Total price + Education price

17.5 + 0.5 = 17.75

Withhold tax or TDS:

Whenever we procure any service then TDS have to be paid to government

Ex : Employee salary

There are two types :

 Classic with holding tax

 Extended with holding tax

Excise Registers :
These are standard registers in India

INPUT MATERIAL

1. RG 23A – Part – 1
2. RG 23B - Part – 2
ASSET /CAPITAL GOAL

1. RG23C – 1
2. RG23C - 2
3. RGI – In house products ( Finished goods )
4. RG23D – Depo
5. PLA - Personal ledger a/c
6. RT12 - Monthly Return (ERI)

SAP CIN

MM Pricing Procedure FI tax procedure SD Tax procedure

It is used to calculate It is used to calculate it is used to calculate output

Input material price taxes, excise duty on material price

Input material only

ARCHANA.K Page 105

 Chapter 13

ASSET ACCOUNTING
1. In Sap, Asset accounting is one of the Module but a apart of it is included in SAP FI.

we have to copy SAP Asset accounting standards from SAP germany. there are almost 11
depreciation areas like Book depreciation , Investment depreciation, Cost cepreciation,Tax
depreciation etc...

we mostly work on Book Depreciation which means posting to accounts. Depreciation keys have
to be maintained which means rate + method

For ex: 15% + SLM.

2. There are 4 types of standard assets

a. Technical

b. Land

c. Furniture

d. AUC

(if u take AUC asset , asset should relate to any one of categories

3. To process asset interation in asset ac we require following ledgers

 Acquisition of asset

 Accumulated depreciation

 Depreciation

 Sale of asset

 Profit on sale of asset

 Loss on sale of asset

 Scrap

(after creating these ledgers ,, these have to be integrated with related asset type

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4. To calculate the value of asset we have 4 methods

1 Balancing method

2 Declining balancing method

3 Multi level method

4 Period control method

CONFIGURATION STEPS

1. Copy reference chart of depreciation

Menu path : spro - sap ref img - asset accounting - organisational structure - Copy reference chart
of depreciation

click on copy org object (F6)

Give From chart of depreciation 1DE (press f4)

To chart of depreciation your company code

enter and save.

Go back 1 step

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Double click on 2nd line

Click on position give chart of depreciation enter

Change the description enter and save,

Go back 1step

Double click on copy/delete chart of depreciation.

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 Give chart of depreciation, enter

Select all depreciation areas except Book depreciation 1

Click on delete.

Net book value : all values allowed

Acquisition value : all values allowed

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 Enter and save.
2.Step:
Assign tax codes for non taxable transactions

Click on position give company code, enter, give input tax V0, output tax A0 enter,
enter and save

3. Step

Menu path : spro - sap ref img - asset accounting - organisational structure - Assign chart of
depreciation to company code

Click on position give chart of depreciation, enter, assign chart of depreciation.enter and save .

Enter and save

ARCHANA.K Page 110
4. Step
Specify account determination

Menu path : spro - sap ref img - asset accounting - organisational structure - Asset classes - specify
account determination

Click on New entries

Give account determination and description.
Enter and save.

6.Step

Create screen layout rule.

Menu path : spro - sap ref img - asset accounting - organisational structure - Asset classes - Create
Screen layout rule

ARCHANA.K Page 111

 7.step
Define number range interval

Path is same

Give company code click on intervals , click on interval, give no 01, from number
1 to number 100 enter and save.

8.step

Define asset classes

Path is same.
Click on new entries,
Give Asset class, Description, Account determination , Screen layout rule, Number
range interval.(press F4)
enter and save.

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9. Step
Create 7 G/L accounts:

A . Machinery a/c
A/c group: Assets
Short text : Machinery
Long text: Machinery a/c
Recon.acct type: Assets
Tick line item display s
Sort key : 018
Field status group; G067
Enter and save.

B. Sale of an asset
A/c group: Incomes
Short text : Sale of an asset
Long text: Sale of an asset a/c
Tick line item display
Sort key : 001
Field status grp: G052
Enter and save.

C. Profit on asset
A/c group: Incomes
Sht text : Profit on asset
Long text: Profit on asset a/c
Tick line item display
Sort key : 001
Field status grp: G001
Enter and save.

D. Loss on asset:
A/c group: Expenses
Sht text : Loss on asset
Long text : Loss on asset a/c
Tick line item display
Sort key : 001
Field status grp: G001

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Enter and save.

E. Scrap a/c
A/c group: Expenses
Sht text : Scrap
Long text: Scrap a/c
Tick line item display
Sort key : 001
Field status grp: G001
Enter and save.

F. Depreciation a/c
A/c group: Liabilities
Sht text : Depreciation
Llong text: Depreciation a/c
Re con.acct type: assets
Tick line item display
Sort key : 018
Field status grp: G067
Enter and save.

G. Accumulated depreciation a/c

A/c group: Liabilities
Sht text : Accumulated Depreciation
Long text: Accumulated Depreciation a/c
Re con.acct type: Assets
Tick line item display
Sort key : 018
Field status grp: G067
Enter and save.

10. step:
Assign GL accounts

Give the chart of depreciation enter

Select chart of depreciation , double click on account determination, select account detemination click on
balance sheeta/cs

ARCHANA.K Page 114

Enter , double click on depreciation a/cs

give depreciation and acumulated depreciation accounts, enter and save.

11.step
Define maximum amount method

Menu path : spro - sap ref img -financial accounting - asset accounting - depreciation - valuation
methods - depreciation key - calculation methods - define maximum methods

Click on New entries

Give max amt method. (SLM)

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Enter save select method created double click on max amounts
New entries

Enter, enter save.

11.step

Define Multi level methods

Menu path is same

New entries

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Give details enter and save, Double click on levels.

Enter and save.

12.step

Maintain period control methods.

Menu path is same

New entries

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 Enter and save.

13.step

Set chart of depreciation:

Menu path: spro - sap ref img -financial accounting - asset accounting - valuation - Set chart of
depreciation
Give chart of depreciation enter.you will get a confirmation msg on status bar

14.step

Specify Max amt for low value assets:

Menu path: spro - sap ref img -financial accounting - asset accounting - valuation - Amoutn
specifications - Specify max amt for low value assets
Double click on 1st line
Select your asset class click on low value assset chek give value as 0.

enter and save.

ARCHANA.K Page 118

15.step

Specify Rounding of net book values.

Path is same.
Click on position, give company code. Select company code click on rounding
specifications

Check automatically calculated depreciation

Enter and save.

16.step

Specify Account assignment types for account assignment objects

Click on position

Give company code

Select company code click on depreciation areas select book depreciatrion click
onaccount assignment objects click on

New entries

ARCHANA.K Page 119

 enter and save.

17.step

Maintain Depreciation key

Menu path: spro - sap ref img -financial accounting - asset accounting - depreciation -
valuationmethods - depreciation key - Maintain depreciation key
New entries
Update the fields

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Enter ,
Double click on assignment of calculation methods

New entries

Enter go back 4 steps select depreciation key created click on activate.

Enter and save.

18.step

Determine Depreciation areas in the asset class

Click on position

give Asset class

Select asset class click on depreciation areas

ARCHANA.K Page 121

New entries

Enter and save.

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 ENDUSER AREA:

1. Create asset (AS01)

Give asset class, company code

Enter
Click on Time dependent tab
Give Business area
Click on Depreciation areas tab
Update depreciation key , useful life, period , ordianary depreciation
start date

enter and save

.
ARCHANA.K Page 123
2. Create sub asset (AS11)

3. Post with vendor (f-90)

Pst key : 31 A/c vendor TType : 100

Amount : ……… Text : being capital purchase made
Pst key : 70 A/c Asset (press F4) TType : 100
Amount: * Text : +
Enter and save.

ARCHANA.K Page 124

4. Transfer Asset

5. Sale of Asset / Asset Retirement

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6. Depreciation Run

ARCHANA.K Page 126

 INTEGRATION
FI-MM
FI-MM integration is how the G/L account will be updated when you are carrying an inventory-related
transaction. For convenience, you may divide the process into
three areas:
(1) Organization structure dependent,
(2) material master dependent,
(3) transaction dependent.

Account determination will be carried out depending upon these three factors.

Organization structure dependent:

■ Valuation level — It is an organization structure, which determines at which levelvaluation will be done
for material. Valuation can be done at plant level or company code level. Valuation must be at plant level if
you want to use the application component PP or Costing, or if the system is an SAP Retail system.
The decision you make is valid for the entire client. It is recommended that youset material valuation at
plant level.

■ Valuation area— T he valuation area is a component of valuation level. Supposeyou have created the
valuation level at the plant level and there are severalplants at the company code level; each plant is a
valuation area for the purposeof inventory.

■ Valuation grouping code — The valuation grouping code is a set of valuation areasthat are grouped
together for the purposes of accounting. Through the accountdetermination process, it will be related to
the COA. The valuation groupingcode makes it easier to set automatic account determination. Within the
COA,you assign the same valuation grouping code to the valuation areas you wantto assign to the same
account. Valuation grouping codes either refl ect a fi ne distinction within a COA or correspond to a COA.
Within a COA, you can usethe valuation grouping code.

Material master dependent:

■ Valuation class— This is the assignment of a material to a group of G/L accounts. Along with other
factors, the valuation class determines the G/L accounts that are updated as a result of valuation-relevant
transactions or events, such as a goods movement. The valuation class makes it possible to:

■ Post stock values of materials of the same material type to different G/L accounts

■ Post stock values of materials of different material types to the same G/L accountMaterial type —This
groups together materials with the same basic attributes,such as raw materials, semifi nished products, or fi nished
products. When creating a material master record, you must assign the material to a material type.
The material type you choose determines:
■ Whether the material is intended for a specifi c purpose, such as a confi gurable material or process
material

ARCHANA.K Page 127

■ Whether the material number can be assigned internally or externally
Account category reference — The account category reference is a combination of valuation classes. Exactly
one account category reference is assigned to a material type. The link between the valuation classes and
the material types is set up via the account category reference. In the standard system, an account
reference is created for each material type. The account category reference is in turn assigned to exactly
one valuation class. This means that each material
type has its own valuation class.

Transaction Dependent:

■ Movement types —This is a classifi cation key indicating the type of material movement (for example,
goods receipt, goods issue, or physical stock transfer). The movement type enables the system to fi nd
predefi ned posting rules determining how accounts of a fi nancial accounting system (stock and
consumption accounts) are to be posted and how the stock fi elds in the material master record are to be
updated.

■ Transaction/Event key— This is a key allowing the user to differentiate between the various transactions
and events (such as physical inventory transactions and goods movements) that occur within the fi eld of
inventory management. The transaction/event type controls the fi ling/storage of documents and the
assignment of document numbers. Some important transaction keys are BSX, GBB, and WRX.
Using the organization dependent, material master dependent, and transaction dependent areas, you
determine the inventory management requirements, which are:

■ Whether changes in quantity are updated in the material master record .

■ Whether changes in value are also updated in the stock accounts in fi nancial
accounting .

In a simple business scenario, you will pass the following accounting entries from the time of goods receipt until
payment to vendor.

1. Transaction code MIGO

Material Account debit
GR/IR Account credit

2.. Transaction code MIRO

GR/IR Account debit
Vendor Account credit

FI-MM integration mapping is stored in table T030. For a better understanding,

use transaction use transaction code SE16.

ARCHANA.K Page 128

ARCHANA.K Page 129
 Frequently asked Interview Questions:

1. What is „SAP'?
‗SAP‘ is an acronym for ‗Systeme, Anwendungen, Produkte der Dataenverarbeitung,‘ in German,
meaning „Systems, Applications, and Products in Data Processing.‟ Founded in 1972, SAP—
with its headquarters in Walldorf, Germany—is the global market leader in collaborative, interenterprise
business solutions (i.e., business software). SAP employs close to 40,000 employees
worldwide, with more than 100,000 installations in about 40,000 companies in 120 countries.
More than 12 million people use SAP on a daily basis. There are more than 20 industry-specific
‗Industry Solutions,‘ known commonly as ‗IS‘ (IS-Oil, IS-Retail, IS-Bank, etc.).

2. What is „SAP Business One‟?

‗SAP Business One‘ is the low-cost, easy-to-implement business management solution from SAP
for Small and Medium Enterprises (SME). Unlike regular ERP software from SAP, this solution
gives managers on-demand access to critical real-time information through ‗one single system‘
containing financial, customer relationship management, manufacturing, and management control
capabilities. As a result, the solution enables rapid employee productivity, while empowering
managers to make better business decisions to stay ahead of the competition. Equipped with a
user-friendly interface, SAP Business One serves as your central ERP hub with standard
interfaces to internal and external data sources, handheld computers, CRM applications, and
other leading analysis tools.

3. Explain the SAP R/3 „System Architecture.‟

SAP R/3 is based on a 3-tier Client-Server model, represented by the:
�Database Layer
�Application Layer
�Presentation Layer
In a 3-tier Client server model, all the above three layers run on three different machines.

The Database Layer consists of an RDBMS (Relational Database Management System), which
accepts the database requests from the Application Layer, and sends the data back to the
Application Layer, which in turn passes it on to the Presentation Layer.

The Application Layer or the server interprets the ABAP/4 programs, receiving the inputs from
them and providing the processed output to them.

The Presentation Server or ‗Presentation Layer‘ is what is installed on the typical workstation of
a user. This is nothing but the SAPGUI, which when started provides the user with the interface of
SAP R/3 menus. This interface accepts the inputs from the user, passes them on to the
Application Server, processes the inputs and sends back the output. If database processing is
required, the Application Server sends the details to the Database Layer, receives the data, and

4. What do You Mean by the „SAP R/3 System Landscape‟?

The „System Landscape,‟ in SAP, refers to a number of systems and their deployment within an
SAP installation. The various systems may be designated as Development, Test, and Production

5. Explain „Client-Dependent‟ and „Client-Independent‟ Tables.

There are certain tables, in SAP, which when changed will not affect similar tables in other Clients.
These are known as ‗Client-Dependent‘ tables. All Client-dependent tables have Mandt as their
first field.

ARCHANA.K Page 130

On the other hand, if a change made in one Client is reflected in another table across various
Clients, then such a table is called ‗Client-Independent.‘ In this case, the first field of the table will
not be ‗Mandt.‘ You need to be extra careful when changing the settings or content of these
tables as this will affect all the Clients.

6. What is an „RFC‟?
A „Remote Function Call (RFC)‟ is a call to a ‗function module‘ running in a system different
from the ‗calling-system.‘ The remote function can also be called from within the same s ystem (as
a ‗remote call‘), but usually the ‗calling-system‘ and the ‗called-system‘ will be in different systems.
An RFC helps to take care of the following communication:
�Communications between two independent SAP systems.
�Client-server communications between an external Client and an SAP system acting as
the server.
�Client-server communications between an SAP System acting as the Client and an
external server.

7. What is a „Match Code‟ in SAP?

Match Codes‟ (now known as Search Help with release 4.6) help to search and retrieve data
when the key of a record is not known. The technique involves (a) creating a „Match Code
Object‟ (now known as a „Search Help Object‟) and (b) specifying a „Match Code ID.‟ The
system helps you to access the match codes (search help) in the following ways:
�Keeping the cursor in the field, and then pressing „F4.‟
�Keeping the cursor in the field, clicking the ‗right‘ button on the mouse, and then selecting
‗possible entries.‘
�Keeping the cursor in the field, and then clicking on the ‗magnifying glass.‘

8. What is a „Transport‟?
A „Transport‟ in SAP is nothing but the transfer of R/3 System components from one system to
another. The components to be transported are specified in the object list of a transport request.
Each ‗transport‘ consists of an ‗export process‘ and an ‗import process‘:
�The export process reads objects from the source system and stores them in a data file
at the operating system level.
�The import process reads objects from the data file and writes them to the database of
the target system.

9. What is an „Authorization‟ in SAP?

An „Authorization‟ is the process of giving someone permission to do or have something. In
multi-user SAP systems, a SAP Basis Administrator defines for the system which users are
allowed access to the system and what privileges of use each user gets (such as access to
transactions, etc.).

10. Explain the „Client‟ concept of SAP.

A „Client‟ is the top-most organizational structure, which has its own set of master records. A
Client is denoted by a 3-character alphanumeric code in SAP, and is a mandatory element. The
settings made at the Client level, data maintained, etc., are available across all the Company
Codes. A Client should have at least one Company Code defined.
SAP comes delivered with Clients 001 and 002, which contain all the default settings. Usually,
copying from the default Clients creates additional and new Clients.

ARCHANA.K Page 131

Typically, in SAP, you will have different ‗types‘ of Clients; namely:
1. Development Client
2. Test Client
3. Production Client
In any implementation, you must have at least three types of Clients as mentioned above. There
are some companies where you will have more than three. These include:
�Development Client
2009 �1 �27 �����������
�Test Client
�Quality Assurance Client
�Training Client
�Production Client

A „Development Client‟ is also called a ‗sand box‘ Client and is sometimes known as a ‗play‘
Client. This is the logical place in the SAP system where you try out new configurations, write
new programs, etc. This is the place, as the name suggests, where you can ‗play‘ around before
finalizing a scenario for customization.
Once you are okay with the configuration or a new program, you will then move it manually
(transport) to the ‗Test Client‟ where you will carry out all the tests (both modular and integration).
The end-users are provided with the training using the ‗training‘ Client. Sometimes both the ‗test‘
and ‗training‘ Client are in a single ‗instance.‘ The ‗quality assurance‘ Client helps with necessary
quality checks before something is ready to be passed on to the ‗production‘ Client.
After satisfactory results, it will be transported (automatically) to the „Production Client‟ (also
called the „Golden Client‟). You will not be able to make any modifications, manually, to the
‗production‘ Client and the authorization is very limited because this Client is responsible for dayto-
day business transactions and any issues here will jeopardize all business operations, which is
why this is also called the „live‟ Client.
Do not confuse this term with the ‗Client‘ that denotes a customer in normal business parlance.

11. How do You Transport „LSMW‟ Data from One System to

Another?
There are two ways to do this:
1. Export/Import method. With this method, you have the flexibility of subprojects or
objects that need to be transported. Use the Menu Path ‗LSMW>Extras>Export project.‘
2. Transport request. With this method, you will not be able to select the objects, and the
project as a whole is transported. Use the Menu Path ‗LSMW>Extras >Create change

12. What is „Configuration‟ in SAP?

„Configuration‟ is the process of maintaining settings (parameters) in the system to support
specific/customized business requirements. Remember SAP is an ‗all-encompassing‘ application
which needs to be ‗configured‘ to meet your specific requirements

The „IMG (Implementation Guide)‟ in SAP provides you with the various configuration steps in a
tree-like structure for easy access with the nodes at the bottom representing the configuration
objects. This is the central repository for customizing, providing a step-by-step guide for carrying
out various activities. Besides the steps/activities, the IMG also contains explanations concerning
the order in which you need to make the customizations. When you execute an activity from the
IMG, you are indirectly changing the values (parameters) in the underlying table.

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13. Explain „Financial Accounting (FI)‟ in SAP.
The „FI (Financial Accounting)‟ module of SAP is the back-bone, which records, collects, and
processes financial transactions or information on a real-time basis to provide the necessary
inputs for external (statutory) reporting. The module is integrated with other modules (such as
Material Management (MM), Sales & Distribution (SD), Human Resources (HR), Production
Planning (PP), Controlling (CO), etc.). The module FI has several submodules.

14. Name the Submodules Within FI, from Which FI-GL Gets
Simultaneous Postings.
�Accounts Receivable (FI-AR)
�Accounts Payable (FI-AP)
�Asset Accounting (FI-AA)

15. Name Three Distinct Characteristics of FI-GL.

�Multi-currency capability
�Flexible real-time reporting
�Real-time transaction entries
Global and Enterprise Settings
Before getting into the questions, please look into the FI organization structure depicted below.
When moving through the questions, at any point in time if you need clarification on the
arrangement of the various organizational elements, do visit this page again. To be successful as
an FI/CO consultant you need to have a thorough grasp of this basic fundamental block in SAP
FI/CO.

16. What do You mean by „Organizational Units‟ in SAP?

The „Organizational Units‟ in SAP are the elements or structures representing business
functions, and are used in reporting. For example, Client (across the various modules) Company
Code (FI), Controlling Area (CO), Plant (logistics), Sales Organization (SD), Purchasing organisation MM

17. What are the Important „Organizational Units‟ in FI?

1. Company
2. Company Code

What is a „Company‟?
A „Company‟ in SAP is represented by a 5-character alphanumeric code and usually represents
the enterprise or the group company. A Company can include one or more Company C odes. The
creation of a Company, in SAP, is optional.

18. What is a „Company Code,‟ and how is this different from a

„Company‟?
A „Company Code‟ in SAP is the smallest organizational unit for which you can draw individual
Financial Statements (Balance Sheet and Profit & Loss Account) for your external statutory
reporting. It is denoted by a 4-character alphanumeric code. The creation of a Company Code is
mandatory; you need to have at least one Company Code defined in the system, for
implementing FI.

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19. What is a „Business Area‟?
„Business Areas‟ correspond to specific business segments of a company, and may cut across
different Company Codes (for example, product lines). They can also represent different
responsibility areas (for example, branch units). The Business Areas are optional in SAP

20. What is the „Credit Control Area‟ in SAP?

The „Credit Control Area‟ in SAP helps administer credit management functions relating to
customers. This organizational unit is used both in SD and FI-AR modules. By definition, you can
have more than one credit control area in a Client, but each Company Code is assigned to one
credit control area. However, it is true that you can attach many Company Codes to the same
credit control area.

21. What is a „Chart of Accounts‟?

A „Chart of Accounts‟ is the list of GL accounts used in one or more Company Codes. All the GL
accounts in a chart of accounts will have an account number, account name, and some control
information. The control information decides how the GL account can be created

22. What are all the Major Components of a „Chart of Accounts‟?

A „Chart of Accounts‟ includes the following components:
�Chart of account key
�Name
�Maintenance language
�The GL Account Number
�Controlling integration
�Group chart of accounts (consolidation)

23.What is an „Operating Chart of Accounts‟?

This chart is used for day-to-day postings and is also known as an „Operative‟ or „Standard‟
chart of accounts. Both FI and CO use a chart of accounts. It is mandatory that the chart ofaccounts be assigned
to a Company Code.

24. What is „ALE‟?

„ALE (Application Link Enabling)‟ is used to support the construction and operation of
distributed applications, through the exchange of data messages ensuring data consistency
across loosely coupled SAP applications, using both ‗synchronous‘ and ‗asynchronous‘
communications without the need for a central database.

25. What is an „RFC‟?

A „Remote Function Call (RFC)‟ is a call to a ‗function module‘ running in a system different
from the ‗calling-system.‘ The remote function can also be called from within the same system (as
a ‗remote call‘), but usually the ‗calling-system‘ and the ‗called-system‘ will be in different systems.

An RFC helps to take care of the following communication:

� Communications between two independent SAP systems.
� Client-server communications between an external Client and an SAP system acting as
the server.
� Client-server communications between an SAP System acting as the Client

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26. What is an „ABAP/4 Query‟?
„ABAP/4 Query‟ (also known as an SAP Query or Query) is a powerful tool used to generate
simple reports without any coding. Typically, an ABAP/4 query is created first by defining a User
Group and a Functional Group. The functional group can either be created with reference to a
‗logical‘ table or a database table. Once the functional group is defined, the user group is
assigned to the functional group. The last step is to create the query on the functional group that

27. What is a „Transport‟?

A „Transport‟ in SAP is nothing but the transfer of R/3 System components from one system to
another. The components to be transported are specified in the object list of a transport request.
Each ‗transport‘ consists of an ‗export process‘ and an ‗import process‘:
� The export process reads objects from the source system and stores them in a data file
at the operating system level.
The import process reads objects from the data file and writes them to

28. Explain the „Client‟ concept of SAP.

A „Client‟ is the top-most organizational structure, which has its own set of master records. A
Client is denoted by a 3-character alphanumeric code in SAP, and is a mandatory element. The
settings made at the Client level, data maintained, etc., are available across all the Company
Codes. A Client should have at least one Company Code defined.
SAP comes delivered with Clients 001 and 002, which contain all the default settings. Usually,
copying from the default Clients creates additional and new Clients.
Typically, in SAP, you will have different ‗types‘ of Clients; namely:
1. Development Client
2. Test Client
3. Production Client
In any implementation, you must have at least three types of Clients as mentioned above. There
are some companies where you will have more than three. These include:
� Development Client
A „Development Client‟ is also called a ‗sand box‘ Client and is sometimes known as a ‗play‘
Client. This is the logical place in the SAP system where you try out new configurations, write
new programs, etc. This is the place, as the name suggests, where you can ‗play‘ around before
finalizing a scenario for customization.

Once you are okay with the configuration or a new program, you will then move it manually
(transport) to the ‗Test Client‟ where you will carry out all the tests (both modular and integration).
The end-users are provided with the training using the ‗training‘ Client. Sometimes both the ‗test‘
and ‗training‘ Client are in a single ‗instance.‘ The ‗quality assurance‘ Client helps with necessary
quality checks before something is ready to be passed on to the ‗production‘ Client.

After satisfactory results, it will be transported (automatically) to the „Production Client‟ (also
called the „Golden Client‟). You will not be able to make any modifications, manually, to the
‗production‘ Client and the authorization is very limited because this Client is responsible for dayto-
day business transactions and any issues here will jeopardize all business operations, which is
why this is also called the „live‟ Client.
Do not confuse this term with the ‗Client‘ that denotes a customer in normal business

28. Explain „LSMW.‟

The „LSMW (Legacy System Migration Workbench)‟ is a free SAP-based tool that supports the
one-time or periodic transfers of data from non-SAP systems to SAP. The LSMW can be used in
conjunction with the Data Transfer Workbench. The LSMW assists in organizing your data

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migration project and guides you through the process by using a clear sequence of steps. The
most common conversion rules are predefined. Reusable conversion rules assure consistent data
conversion for different data objects.
The LSMW performs the following steps:
� Reads the legacy data from one or several files (such as spreadsheets or sequential files)
� Converts the data from source format to target format
� Imports the data using standard interfaces (Batch Input, Direct Input, BAPI, IDoc, etc.)

29. How do You Transport „LSMW‟ Data from One System to

Another?
There are two ways to do this:
1. Export/Import method. With this method, you have the flexibility of subprojects or
objects that need to be transported. Use the Menu Path ‗LSMW>Extras>Export project.‘

2. Transport request. With this method, you will not be able to select the objects, and theproject as a whole is
transported. Use the Menu Path ‗LSMW>Extras >Create change

30. What is „Configuration‟ in SAP?

„Configuration‟ is the process of maintaining settings (parameters) in the system to support
specific/customized business requirements. Remember SAP is an ‗all-encompassing‘ application
which needs to be ‗configured‘ to meet your specific requirements.

31. What is the „IMG‟?

The „IMG (Implementation Guide)‟ in SAP provides you with the various configuration steps in a
tree-like structure for easy access with the nodes at the bottom representing the configuration
objects. This is the central repository for customizing, providing a step-by-step guide for carrying
out various activities. Besides the steps/activities, the IMG also contai ns explanations concerning
the order in which you need to make the customizations. When you execute an activity from the
IMG, you are indirectly changing the values (parameters) in the underlying table.

32. Explain „Financial Accounting (FI)‟ in SAP.

The „FI (Financial Accounting)‟ module of SAP is the back-bone, which records, collects, and
processes financial transactions or information on a real-time basis to provide the necessary
inputs for external (statutory) reporting. The module is integrated with other modules (such as
Material Management (MM), Sales & Distribution (SD), Human Resources (HR), Production
Planning (PP), Controlling (CO), etc.). The module FI has several submodules that are tightly

33. What are the „Submodules‟ within FI?

� FI-AA Asset Accounting
Integrated with FI-GL, FI-AR, FI-AP, CO, MM, PP and PM, this module manages the
financial side (depreciation, insurance, etc.) of the assets throughout their entire lifecycle
starting with procurement of assets and ending with scrapping or sales.
� FI-AP Accounts Payable
Integrated with FI-GL, FI-AA, FI-TR and MM, this submodule manages vendor transactions
by linking with material management, asset accounting, travel management, etc. Notable is
the ‗payment program‘ for making payments to vendors.
� FI-AR Accounts Receivable
Integrated with FI-GL, FI-AA, FI-TR, MM and SD, this submodule manages customers and
receivables, and integrates with SD. It is well-known for credit management functionalities

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and the ‗dunning‘ program.
� FI-BL Bank Accounting
� FI-FM Funds Management
� FI-GL General Ledger Accounting
This submodule is integrated with all other submodules within FI and outside FI.
� FI-SL Special Purpose Ledger
This submodule is used to provide the summary information from multiple applications at a
level of detail that the user defines.
� FI-LC Legal Consolidations
This submodule helps in the central task of combining the financial operating results of the

34. Name the Submodules Within FI, from Which FI-GL Gets
Simultaneous Postings.
� Accounts Receivable (FI-AR)
� Accounts Payable (FI-AP)
� Asset Accounting (FI-AA)

35. Name Three Distinct Characteristics of FI-GL.

� Multi-currency capability
� Flexible real-time reporting
� Real-time transaction entries

36. Can You Assign more than One „Company Code‟ to a

„Company‟?

All the Company Codes within a Company should use the same Chart of Accounts and the same
Financial Year, though they all can have different Local Currencies.

37. What is the Maximum Number of „Posting Periods‟ in SAP?

Under GL accounting, you can have a maximum of 16 posting periods (12 regular plus 4 Special
Periods). However, you can have up to a maximum of 366 posting periods as is the case in "special purpose
ledgrs"

38. What is a „Year-dependent‟ Fiscal Year?

A calendar year fiscal variant, when defined as „year-dependent,‟ is relevant and valid only for the year

39. How many „Retained Earnings‟ A/C can be Defined?

You can define as many „Retained Earnings Accounts‟ as you need. But normally, companies
use only one retained earnings account. Remember, to define more than one, you should use thprofit & loss
account type

40. How do You Maintain „Currency‟ in SAP?

„Currency‟ (the legal means of payment in a country) in SAP is denoted by a 3-character
Currency Code, maintained per ISO standards. Example: USD (U.S. Dollars), INR (Indian
Rupee), GBP (Great Britain Pound), etc. Each currency code in the system will have a validity
defined

41..What is a „Local Currency‟?

When you define a Company Code, you also need to mention in which currency you will be

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maintaining the accounts/ledgers in financial accounting. This currency is called the „Local
Currency.‟ This is also known as „Company Code Currency

42. What is an „Account Currency‟?

When defining the GL accounts in the system, you are required to define a currency in which an
account will be maintained, and this is called the „Account Currency.‟ This is defined in the
‗Company Code‘ area of the GL master record, and is used for postings and account balancedisplay

43. How are „Exchange Rates‟ Maintained in SAP?

An „Exchange Rate‟ is defined for each pair of currencies, and for each ‗exchange rate type‘
defined in the system. The exchange rate is defined at the document head er level.

44. How is „Master Data‟ different from „Transaction Data‟?

There are three kinds of data residing in any SAP system:
1. Table Data
2. Transaction Data
3. Master Data

Table Data refers to the customized information for a particular Client. This includes data such as
payment terms, discounts, pricing, tolerance limits, etc., which you do not normally change on a
day-to-day basis.

Transaction Data is the day-to-day recording of business information such as purchase orders,
sales returns, invoices, payments, collections, etc. This includes both system-generated data (tax,
discount, etc., automatically calculated by the system during document posting) as well as usergenerated
data.

Master Data is the control information required to decide how transaction data gets posted into
various accounts (such as customers, vendors, GL, etc.). The master data is usually shared
across modules (for example, customer master records are common both to FI and SD in SAP)
obviating the need for defining it in various application areas. The master data remains in the

45. What is a „Document‟ in SAP?

SAP is based on the „document principle‟ meaning that a document is created out of every
business transaction in the system. The Document is the result of a posting in accounting in SAP,
and is the connecting link between various business operations. There are two types of
documents:

1. Original Documents: these documents relate to the origin of business transactions such
as invoices, receipts, statement of accounts from bank, etc.

2. Processing Documents: These include „accounting documents‟ generated from

postings in the system, „reference documents,‟ „sample documents,‟ etc. The
processing documents other than the accounting ones are also known as „special
documents‟ and they aid in the simplification of document entry in the system.

Every document consists of:

� A Document Header
� Two or more Line Items
Before attempting to enter a document, call up the relevant document entry function as the

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system provides a variety of ready-made document entry templates suited to different
transactions such as regular GL entry, customer invoice posting, etc. The details entered in adocument can be
simulated and displayed before the document is actually posted in the system

45. What is a „Document Header‟?

The „Document Header‟ contains information that is valid for the whole document such as:
� Document Date
� Document Type (Control Information)
� Document Number
� Posting Date
� Posting Period
� Company Code
Besides the above, the document header also has information (editable, later on) such as (a)trading partner, (b)
document header text, (c) reference, (d) cross-Company Code number, etc

46. How is „Account Type‟ Connected to „Document Type‟?

The „Document Type‟ is characterized by a 2-character code such as AA, DG, etc., whereas an
„Account Type‟ is denoted by a 1-character code such as A, D, etc., specifying which accounts a
particular document can be posted to. The common account types include:
� A Assets
� D Customer (Debtor)
� K Vendor (Creditor)
� M Materials S GL

47. What is a „Posting Key‟?

A „Posting Key‟ in SAP is a 2-digit alphanumeric key that controls the entry of line items. SAP
comes with many posting keys for meeting the different business transaction requirements: 40
(GL debit), 50 (GL credit), 01 (customer invoice), 11 (customer credit memo), 21 (vendor credit
memo), 31 (vendor payment), etc.

48. What is an „Automatic Posting‟?

When you post documents in SAP, there are instances where the system also adds some more
line items (such as tax, cash discount, gain/loss from foreign exchange transactions, etc.) besides
the ones you have entered in the document. This helps to reduce your work as the system
calculates these automatically. However, you need to define accounts you want the system to
automatically post to; this will ensure that no manual posting is allowed to any of these accounts

49. Explain „Customer/Vendor Master Records.‟

There are three categories of data maintained in a typical master record for a customer:
� General Data
� Company Code Data
� Sales Area Data (for customers)/Purchasing Organization Data (for vendors)

50. What is the „Trading Partner‟ concept?

The „Trading Partner‟ concept is used to settle and reconcile ‗inter-company transactions,‘ both
sales and purchases. This is generally achieved by entering the Company-ID (not the Company
Code) to which a customer belongs in the ‗trading partner‘ field under the tab ‗Account Control‘ ithe customer
master record. You can do a similar entry in the vendor master record

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51. What is „BDC‟ Programming in SAP?
„BDC (Batch Data Conversion)‟ is an automated procedure for transferring large volumes of
external or legacy data into the SAP system using batch input programming. There are three
ways to do this:
� Call Transaction Method
� Session Method
� Direct Input Method

52. What is a „Spool Request‟?

„Spool Requests‟ are generated during ‗dialogue‘ or ‗background‘ processing and placed in the
spool database with information about the printer and print format. The actual data is placed in
the Tem Se (Temporary Sequential objects

53.What is an „Authorization‟ in SAP?

An „Authorization‟ is the process of giving someone permission to do or have something. In
multi-user SAP systems, a SAP Basis Administrator defines for the system which users are
allowed access to the system and what privileges of use each user gets

54. What is a „Payment Block‟?

A „Payment Block‟ prevents you from paying an open item of a vendor. The payment block is
entered in the „Payment Block‟ field in a vendor master record or directly in the open line item.
Use the payment „Block Indicators‟ to define the „Payment Block Reasons.‟ You may use the
SAP delivered payment block indicators (A, B, I, R, etc.) or create your own. An indicator such as
‗*‘ is used when you want to skip the particular account, and a blank indicator indicates that the
account/item is free for payment. However, for each of these ‗block indicators,‘ you need to
configure whether changes would be allowed while processing the payment proposal. Then, it is
also possible to block a payment or release a blocked one while processing

55. What are „Special GL Transactions‟?

„Special GL Transactions‟ are not directly posted to the GL (Reconciliation Accounts) though
these are related to subledger accounts such as AR/AP. The transactions to these accounts are
shown separately in the balance sheet. There are specific posting keys/indicators defined in the
system to regulate the postings to these items. You need to specify a Special GL Indicator (such
as a F-Down Payment Request, A-Down Payment) for processing such a transaction. And the
system will make use of the specially defined posting keys (09-customer debit, 19-customer credit,
29-vendor debit, and 39-vendor credit) for posting these special GL transactions

56. Explain „Asset Accounting‟ (FI-AA).

The „Asset Accounting‟ (FI-AA) submodule in SAP manages a company‘s fixed assets, right
from acquisition to retirement/scrapping. All accounting transactions relating to depreciation,
insurance, etc., of assets are taken care of through this module, and all the accounting

57. What are the kinds of „Assets‟ in SAP?

An asset can be a Simple Asset or Complex Asset. Depending on the requirement, assets are
maintained with Asset Main Numbers and Asset Subnumbers. A complex asset consists of
many Sub-Assets; each of them identified using an asset subnumber. You may also use the
concept Group Asset in SAP.

58. What is a „Chart of Depreciation‟? How does it differ from a

„Chart of Accounts‟?
A „Chart of Depreciation‟ contains a list of country-specific depreciation areas. It provides the
rules for the evaluation of assets that are valid in a given country or economic area. SAP comes
supplied with default charts of depreciation that are based on the requirements of each country.

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These default charts of depreciation also serve as the ‗reference charts‘ from which you can
create a new chart of depreciation by copying one of the relevant charts. After copying, you may
delete the depreciation areas you do not need. However, note that the deletion must be done

59. What is „Depreciation‟? Explain the Various Types.

„Depreciation‟ is the reduction in the book value of an asset due to its use over time (‗decline in
economic usefulness‘) or due to legal framework for taxation reporting. The depreciation is
usually calculated taking into account the economic life of the asset, expected value of the
asset at the end of its economic life (junk/ scrap value), method of depreciation calculation
(straight line method, declining balance, sum of year digits, double declining, etc.), and the
defined percentage decline in the value of the asset every year (20%, or 15%, and so on).

60. What is an „Asset Class?

An „Asset Class‟ in SAP is the basis for classifying an asset based on business and legal
requirements. It is essentially a grouping of assets having certain common characteristics. Each
asset in the system needs to be associated with an asset class.

61. Explain „Assets under Construction‟ (AuC) in SAP.

The goods and/or services produced, in-house, can be capitalized into asset(s). But, there are
two distinct phases during this process:
1. Construction phase (AuC)
2. Utilization phase (useful or economic life phase)

62. What do You mean by „Low Value Assets‟?

SAP uses the term „Low Value Assets‟ to denote assets that will be depreciated in the year of
purchase or in the period of acquisition. This categorization usually follows the statutory
requirements of the country of the Company Code, wherein you define a monetary limit and
consider all those assets falling below the value, say $1,000, as low value assets. You have the
flexibility of managing these assets either on an individual (individual check) basis or a collective
basis (quantity check).
SAP uses a special depreciation key called LVA, and the expected useful life of such an asset is

63. Explain „Asset Transfer‟ in SAP.

There are two types of „Asset Transfers,‟ namely:
1. Inter-company asset transfer
2. Intra-company asset transfer
Inter-company Asset Transfer is between Company Codes

64. What is an „Asset Explorer‟?

„Asset Explorer‟ is a handy and convenient single interface transaction that helps you to display
asset values, depreciation details, etc., in a very user friendly way. Gone are the days where you
had to move to different pages and re-enter the same transaction many times to display

65. Define „Plant‟ in SAP.

„Plant‟ in SAP can denote a manufacturing location, distribution center, or a warehouse. With
unique numbers identifying each of the plants, though these are all not all necessarily financial
entities, they can still be linked to a Business Area. The Plant is the place where you normally
valuate the inventory in SAP. The system, however, checks for the inventory either at the Plant or

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66. Explain „Automatic Account Assignment‟ Configuration in MM.
There are four steps required to complete the „Automatic Account Assignment‟ configuration
settings for MM:
1. Finalize the „valuation level.‟
2. Activate the „valuation grouping code‟ option. (For this you need to group valuation
areas using valuation grouping codes.)
3. Maintain „valuation classes‟ and „account category references‟ and their linkage to
„material types.‟
4. Maintain the „GL accounts‟ for each combination of Chart of accounts, valuation

67. What is „Goods Movement‟?

„Goods Movement‟ represents an event causing a change in the stock, with the change being
value or status, stock type, or quantity. It also represents the physical movement of stock from
one location to another. Goods movement is classified into:
� Receipt of goods/services

68. What is a „Goods Receipt‟?

A „Goods Receipt (GR)‟ results in an increase in the quantity/value of the stock in a
plant/warehouse. A GR may be „with/without reference to a Purchase Order.‟ A GR leads to:
� A Material document
� An Accounting document (not always)
� GR Slip printing
� GL Account update
o Consumption Account
o Stock Account
� Quantity updating
o Stock quantity
o Consumption statistics
o Vendor Evaluation
� Other updates (if applicable)
o Cost Center
o Project
� A Stock Transfer Order
� Purchase

69. What Happens During a „Goods Issue‟?

The „Goods Issue (GI)‟ results in a reduction in the stock quantity/value. The GI can be Planned
(via sales order, production order, return delivery, delivery for internal, use etc.) or Unplanned
(drawing a stock for a sample, scrapping, etc.).
The GI results in:
� Creation of a Material/Accounting document
� Update of Reservation for the issue (if any)
� Update of GL accounts
� Update of ‗points of consumption‘ if applicable (cost cen

70. Explain „Stock Transfers.‟

The physical movement of stock between locations is called a „Stock Transfer,‟ which can be
within a plant or between plants. Stock transfers can be carried out either in a single step or in
two steps. The stock transfer may be from:
� Company to Company
� Plant to Plant
� Storage Location to Storage Location

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71. What is a „BOM‟?
A „BOM (Bill of Material)‟ is nothing but a structured list of components (with the object number,
quantity, and unit of measure) that go into the making of a product or an assembly. Depending on
the industry sector, they may also be called recipes or lists of ingredients. The

72. Explain „Bank Statement‟ in Cash Management.

„Bank Statement‟ (manual or electronic) functionality runs on the same principle as Check
Deposit Processing. Note that it is not necessary for Cash Management to be active for bank
statement processing.
During processing, customer payments (except checks) are first posted to the bank clearing
account; then customer open items are cleared when balancing the bank clearing account.
Similarly, vendor payments are posted to a bank clearing account for outgoing payments where
the balancing is done from the entries made from the payment program. Other payments such as
bank charges, bank interest, etc., are posted to the respective GL accounts, and they will not go
through the bank clearing accounts. In the case of unidentified payment transactions, you will
post them first to the bank clearing accounts and then ‗clear‘ them when you have the appropriate

73. What is the International Demonstration and Education System (IDES)?

IDES is a sample application with sample master data and standard confi guration
provided for faster learning and implementation. For example, the following FI
company codes are in IDES. (These are just examples; there are many more

74. Explain the relationship between the Sort key and the Assignment field.
The Sort key defi nes the fi eld(s) used to populate the Assignment fi eld when a document is posted in the G/L.
The Assignment fi eld is used as a sort criterion when displaying G/L account line items

75. What is the difference between the company and the company code?
A company is the organizational unit used in the legal consolidation module to roll up fi nancial statements of
several company codes. The company code is the smallest organizational unit for which a complete, self-contained
set of accounts can be drawn up for purposes of external reporting.A company may be assigned to n number of
company codes.

76. What are special periods used for?

The special periods in a fi scal year variant can be used for posting audit or tax adjustments to a closed fi scal year.
The logic behind the use of special periods is to identify and have control over transactions after the closing of
normal posting

77. What is a baseline date? Where is it used? Can it be changed?

A baseline date is used to determine the due date of a line item, and is used for dunning programs, interest
calculation, and automatic payment programs. You can confi gure the baseline date with T-code OBB8. The
baseline date can be one of the following dates:

■ Transaction date
■ Posting date
■ Document date
■ Entry date

ARCHANA.K Page 143

78. What are segments in the vendor master?
A vendor master contains three segments, which control different fi elds for a vendor.
These are:

■ General data segment: This segment holds a common set of data applicable
for all company code.

■ C ompany code segment: These are company code specifi c data that can’t be
shared with other company code.

■ P urchase organization segment: Like company code data, this segment contains

79. What factors differentiate one dunning level from another dunning level?
The most important point that differentiates dunning levels is the dunning texts. The dunning text defi nes the
urgency of the dunning notice. Other differentiating factors are dunning charges, minimum and maximum amounts,
etc.

80. Why do you use “bank type” in customer/vendor master records?

The bank type is used to identify the bank through which the customer or vendor will carry out the transaction. This
fi eld is also important from the point of view of an automatic payment program. For example, Vendor supplies
materials and services. Vendor X also maintains two separate bank accounts, one for services and another one for
materials. The vendor requests that payments for services be emitted to his bank account that is meant for services.
In this circumstance, you may select the appropriate bank account when posting a transaction.

81. What is an asset class?

An asset class is the main criterion for classifying fi xed assets according to legal and management requirements.
The asset class controls parameters and default values for asset masters. Each asset master record must be assigned
to one asset class.
.

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 TRANSACTION CODES

Define Document Types OBA7

Define Financial Statement Versions OB58
Define GL Account Groups OBD4
Define GL Number Ranges FBN1
Define House Banks FI12
Define Line item Layouts O7Z3
Define Lockbox Accounts OB10
Define Number Range for Payment Request F8BM
Define Number Ranges for Depreciation Postings FBN1
Define Number Ranges for Master Classes AS08
Define Number Ranges of Vendor Account
OBAS
Define Number Ranges for Vendor Account XKN1
Assign Chart of Depreciation to Company Code OAOB
Assign Country to Tax Calculation Procedure OBBG
Assign Employee Groups to Credit
Representative Groups
OB51
Assign GL Accounts to Reason Codes OBXL
Assign Posting Keys to Document Types OBA7
Assign Reference Interest Rates to Interest

Assign Tax Codes for Non-Taxable Transactions OBCL

Assign Treasury Transaction Types to House
Banks
OT55
Assign Users to Tolerance Groups OB57
Automatic Account
Calculation
OBV1
Automatic Account Assignment, Cross-Company
OBYA
Automatic Account Assignment, MM OBYC
Automatic Postings Documentation OBL1
Bank Chain Determination FIBB
Cash Management Implementation Tool FDFD
Configuration: Maintain Display Format FAKP
Configuration: Show Display Format FAKA
Configure Days in Arrears Calculation OB39
Configure the Central TR-CM System FF$X
Copy Chart of Accounts OBY7
Copy Chart of Depreciation EC08
Copy Company Code EC01
Copy GL Accounts from Chart of Accounts to the
Company Code
OBY2
Define Company Code (Create /Check/Delete) OX02
Define Company Code Global Parameters OBY6
Define Countries OY01
Define Credit Control Areas OB45
Define Credit Representative Groups OB02
Define Credit Risk Categories OB01
Define Currency Translation Ratios GCRF

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Define Customer Account Groups OBD2
Define Customer Tolerance Groups OBA3
Define Data Transfer Rules for Sample Accounts FSK2
Define Depreciation Key AFAMA
Define Document Types OBA7
Define Financial Statement Versions OB58
Define GL Account Groups OBD4
Define GL Number Ranges FBN1
Define House Banks FI12
Define Line item Layouts O7Z3
Define Lockbox Accounts OB10
Define Number Range for Payment Request F8B
Define Number Ranges for Depreciation Postings FBN1
Define Number Ranges for Master Classes AS08
Define Number Ranges of Vendor Account
OBAS
Define Number Ranges for Vendor Account XKN1
Define Posting Keys OB41
Define Posting Period Variant OBBO
Define Posting Rules for Electronic Bank
Statement
OT57
Define Reason Codes OBBE
Define Reference Interest Rates OBAC
Define Screen Layouts for Asset Depreciation
AO21
Define Sort Variants O757
Define Source Symbols, for Treasury OYOS
Define Special Fields OBVU
Define Specify Intervals and Posting Rules OAYR
Define Tax Accounts OB40
Define Tax Codes for Non-Taxable Transactions OBCL
Define Tax Codes for Sales /Purchases FTXP
Define Tax Jurisdiction Codes OBCP
Tax Jurisdiction Codes OBCP
Define Tolerance Groups OBA4
Define Vendor Account Groups OBD3
Define Void Reason Codes for Checks FCHV
Define Sample Account Rules OB15
Depreciation Keys OAYO
Determine Depreciation Areas in Asset Classes OAYZ
Define Planning Groups for Treasury OT13
Display Accounting Configuration FBKA
Document Change Rules OB32
Fast Entry Screens O7E6
FI Configuration Menu (instead of IMG) ORFB
Field Status Variants OBC4
Integration with GL AO90
Interest Indicator (Arrears Interest) for Int.
Calculation Program
OB82
Internal Number Range for Payment Orders FBN2
Change Check/Payment Allocation FCHT
Change Check Information/Cash Check FCH6
Change Customer (Accounting Data) FD02
Change Customer Credit Management FD32
Change Customer Line Items FBL6

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Change Document FB02
Change GL Account Line Items FBL4
Change Intercompany Document FBU2
Change Last Adjustment Dates FJA2
Change Line Items—Customer/Vendor/Asset/GL
FB09
Change Parked Document (Header) FBV4
Change Parked Document FBV2
Change Payment Advice FBE2
Change Pricing Report F/LB
Change Recurring Entry FBD2
Change Report Settings for Transaction Figures FDI2
Change Report: Settings FGI2
Change Report: Settings FKI2
Change Sample Document FBM2
Change Vendor (Accounting Data) FK02
Change Vendor (Accounting Data) FK04
Change Vendor Line Items FBL2
Check Extract—Creation FCHX
Check if Documents can be Archived FB99
Check Register
FCHNCheck Retrieval
FCHB
Check Tracing Initial Menu FCHK
Clear Customer Down Payment F-39
Clear Customer: Header Data F-32

ARCHANA.K Page 147

 TABLES

Accounting Document Header BKPF

Accounting Document Header (docs from
External Systems)
EBKP
Accounting Document Header BKPF
8 Accounting Document Segment BSEG
9 Accounting secondary index for customers BSID
10 Accounting secondary index for customers—
cleared items
BSAD
11 Accounting—Secondary Index for GL Accounts BSIS
12 Accounting—Secondary Index for GL Accounts—
cleared items
BSAS
Accounting secondary index for vendors BSIK
Accounting secondary index for vendors—
cleared items
BSAK
Accounts Blocked by Dunning Selection MAHN
Asset Accounting—Basic Functions FI-A
Asset Class: Depreciation Area ANKB
Asset classes—Description ANKT
Asset Classes—Field Cont Dependent on Chart ANKP
Asset Classes—General Data ANKA
Customer/Vendor Linking KLPA
Customer master—general data KNA1
Customer master—partner functions KNVP
Customer master—sales
Customer master—sales request form KNVD
Customer Master (Company Code) KNB1
Customer Master Bank Details KNBK
Customer Master Credit Management—Central
Data
KNKA
Customer Master Credit Management—Control
Area Data
KNKK
Customer Master Dunning Data KNB5
Customer Master Special GL Transactions
KNC3
Customer Master Transaction Figures KNC1
Customer Payment History KNB4
Depreciation Terms ANLB
Document Header Asset
Document Header for Document Parking VBKP
Document Header Supplement for Recurring
BKDF
Document Type Texts T003T
Dunning Data (Account Entries) MHNK
Electronic Bank Statement Line Items
Financial Accounting ‗Basis‘ FBAS
GL Account Master (Chart of Accounts—
Description) SKAT

ARCHANA.K Page 148

Assign Chart of Depreciation to Company Code OAOB
Assign Country to Tax Calculation Procedure OBBG
Assign Employee Groups to Credit
Representative Groups
OB51
Assign GL Accounts to Reason Codes OBXL
Assign Posting Keys to Document Types OBU1
oB81

Assign Reference Interest Rates to Interest

Assign Tax Codes for Non-Taxable Transactions OBCL

Assign Treasury Transaction Types to House
Banks
OT55
Assign Users to Tolerance Groups OB57
Automatic Account Assignment for Interest
Calculation

ARCHANA.K Page 149