SAP FICO MATERIAL

About Author:

Mr. kasi Viswanath is a post graduate in management and SAP

Certified FI-CO and S/4 HANA 1909 Professional Consultant with
excellent academic history.
Mr. Kasi Viswanath is a leading Faculty in twin cities for SAP FICO &
Simple Finance and Projects
Having 15 years of Rich SAP Experience and Presents In-depth
domain knowledge
Worked in various projects in different verticals.
Trained Lot of aspirants and groomed their career in SAP.
Gives comprehensive training in all areas of SAP FICO Module with
real time scenarios.
Follows the best training methods which are highly proved in the
industry.
Enables the learners to generate self-motivation for learning and
provides a clear input explaining the subject being covered and how to
apply it.
Constantly focuses on the new developments in the industry to
make sure that the learners are aware of them.
Follows a strategic and systematic approach in designing the
curriculum and delivering it.
Being a passionate trainer, he has the ability to assess each
individual learner and make them realize their strengths and weakness.
Grooms every learner as a consultant to meet the expectations of
the SAP industry.
Provides complete domain expertise which is one of the essential
elements for a SAP functional consultant.
The first consultant started giving training on SAP-FICO in
Hyderabad.
Trainers passion towards training made him something special in
the industry.
Mr. Kasi Viswanath has trained no. of students and placed more
than students in big MNC’s such as IBM, WIPRO, TCS, ACCENTURE, TECH
MAHINDRA, CAPGEMINI, IGATE,L&T,PROCESS VIEWER, Thomson and
many more

Kasiviswanath.V [email protected]

1
 SAP FICO MATERIAL

Sap Features:
 Flat form Independent
 Database Independent
 Language Independent
 GUI (Graphic User Inter-phase)
 Currency Independent
 Client server technology/ Independent

ARCHITECTURE
R/1 - ARCHITECTURE (1984- 1993)

Eg: Business one client

SAP R/2: (1993- 2000)

 Initial SAP release was known as SAP R/2. This release was designed to work on
mainframe computers.
 Mainframe computing is a two tier architecture.
 The database and application sits on the mainframe computer and users access the
application through terminals.
 Terminal is simply a dumb box without a CPU; keyboard and a monitor is attached to this
box.
 In comparison to three-tiered architecture you can think mainframe as applications server
and a database server combined and a terminal as a presentation layer.

Kasiviswanath.V [email protected]

2
 SAP FICO MATERIAL

SAP R/3: (2001 – 2006)

 The next generation of SAP software was called SAP R/3.
 This was the most popular release.
 Even today the term SAP is used synonymously with SAP R/3 (the usage may not true
any more).
 SAP R/3 was based on client server architecture.
 The presentation layer and the business logic would reside on a desktop.
 The database would run on a database server.
 All desktops would connect to the database server to write and read data.
 If one has to upgrade the business logic then all the desktop would need to be patched.

Cloud Architecture: (2009 – 2015)

Kasiviswanath.V [email protected]

3
 SAP FICO MATERIAL

Hybrid Architecture: March 2015’

Various Modules in SAP

Kasiviswanath.V [email protected]

4
 SAP FICO MATERIAL

Kasiviswanath.V [email protected]

5
 SAP FICO MATERIAL

Enterprise Structure

How to Login Sap:

Client:
User Name:
Password:
Language:
Various Menu Application’s:
1. Menu Bar
2. Transaction Bar
3. Short Cut Key Bar
4. Function/ Application Bar
5. Status Bar

Kasiviswanath.V [email protected]

6
 SAP FICO MATERIAL

To Get all Transaction Codes: (SE16)

Table Name: TSTC

Enterprise Structure:
Path: SPRO – SAP Reference Img – Enterprise Structure – Definition –
Financial Accounting
1.. Define Company:

A company is an organizational unit in Accounting which represents a

business organization according to the requirements of commercial law in a
particular country. You store basic data for each company in company
definition. You only specify particular functions when you customize in
Financial Accounting. Company G0000 is preset in all foreign key tables. In
the SAP system, consolidation functions in financial accounting are based
on companies. A company can comprise one or more company codes.
When you create a company you should bear in mind the following points
relating to group accounting.

If your organization uses several clients, the companies which only appear
as group-internal business partners, and are not operational in each system,
must be maintained in each client. This is a precondition for the account
assignment of a group-internal trading partner.

➢ Companies must be cataloged in a list of company IDs which is consistent

across the group. The parent company usually provides this list of company
IDs.
➢ It is also acceptable to designate legally dependent branches 'companies'
and join them together as a legal unit by consolidation.

Click on New Entries (F5)

*Company: 4500
*Company Name 1: METRO INDIA
Company Name 2:
Street: Hyderabad
P.O Box: 500001
Postal Code: 500001
City: Hyderabad
*Country: In
*Language Key : En

Kasiviswanath.V [email protected]

7
 SAP FICO MATERIAL

*Currency: Inr
Save:
Click on Create Request Icon
Enter Short Description: (Metro India<Company Name>)
Save
2.. Edit/ copy/ Delete/ Check Company Code:

Create your company codes. The company code is an organizational unit

used in accounting. It is used to structure the business organization from a
financial accounting perspective.

Define your company codes by specifying under a key the following

information:

• Company code name

• Address data

• Country currency

You must also enter a country key and a language key for each company
code.
Double Click on Edit Company Code Data Line
Click on New Entries (F5)
Company Code: 4501
Company Name: METRO Hyderabad
City: Hyderabad
Country: IN
Currency: Inr
Language: En
Save
Address Page:
Title: Company
Company: Metro Hyderabad
Search Term: India
City: Hyderabad

Kasiviswanath.V [email protected]

8
 SAP FICO MATERIAL

Country: In
Region: TS
Save
4.. Define Functional Area

The functional area field appears in the documents of the applications FI,
CO, Profit Center Accounting (PCA), and Special Purpose Ledger (SL).
Combined with the G/L account, the functional area determines the position
of the value in the profit and loss statement. Functional areas allow you to
create financial statements to meet US GAAP requirements.

In the R/3 System, the G/L account totals records do not contain cost center
or other cost element information. Totals records are kept per account (such
as salaries). The salaries can appear in the cost of goods sold as labor or for
example as sales and marketing expenses. As additional identification at the
line item level, the functional area specifies the position to which the salary
expenses are posted in the profit and loss statement.

Execute
Click on New Entries (F5)
Functional Area Name Description
M001 Metro Administration
M002 Metro Services
M003 Metro Sales
M004 Metro Production
Save
5.. Maintain FM Area

Create your financial management (FM) areas. The financial management

area is an organizational unit within accounting which structures the
business organization from the perspective of Cash Budget Management
and Funds Management.

Define the functional characteristics of FM areas separately for both Cash

Budget Management and Funds Management in the implementation guide
for each of these areas.

NOTE : In the event that you later want to change the FM area currency,
bear in mind that you cannot do this after you have posted any actual
data for this FM area in the feeder systems (Financial Accounting,
Materials Management).

Kasiviswanath.V [email protected]

9
 SAP FICO MATERIAL

You maintain the other FM area parameters, such as the fiscal year variant,
later.

Execute
Click on New Entries (F5)
F.M Area Text Currency
4501 Metro F.M Area INR

Save
6.. Define Segment

US GAAP and IAS set out different requirements regarding segment

reporting:

US GAAP requires a virtually complete balance sheet at the segment level

for segment reporting (essentially everything apart from stockholders'
equity). The segment is defined as a subarea of a company with activities
that generate expenses and revenues, with an operating result that is
regularly used by management for profit assessment and resource allocation
purposes, and for which separate financial data is available.

IAS requires for segment reporting primary and secondary segmentation,

which have different reporting depth. A distinction is made between the
following types of segment:

➢ Business segment

A business segment is a distinguishable sub activity of a company that

relates to the manufacture of a product or the provision of a service and that
has risks and revenues that differ from those in other business segments.

➢ Geographical segment

A geographical segment is a distinguishable sub activity of a company that

relates to the manufacture of a product or the provision of a service within a
specific field of business and that has risks and revenues that differ from
those in other geographical segments active in other fields of business.

Execute
Click on New Entries (F5)
Segment Description
M001 Metro Cars
M002 Metro Spares

Kasiviswanath.V [email protected]

10
 SAP FICO MATERIAL

Save
Assignment:
Path: SPRO – SAP Reference Img – Enterprise Structure – Assignment –
Financial Accounting
1.. Assign company code to company
Assign the company codes which you want to include in the group
accounting to a
company.
NOTE: You must have first completed the steps Create company code and
Create company
Company = Parent Company
Company Code = Sub-Company
Execute
Click on Position
Company Code:
Company Code Name City Company
4501 Metro Hyd Hyderabad 4500

Save
2.. Assign company code to financial management area

Assign each company code which is relevant to Cash Budget Management

or Funds Management to a FM area.

In the case of cross-company-code Cash Budget Management/Funds

Management, you can combine several company codes in a single FM area.
You must assign all the company codes in question to the same FM area.

NOTE: You can only change the assignment if:

Neither Funds Management nor Cash Budget Management is active

No actual data has been posted yet

No commitment items have yet been posted in any of the G/L accounts in
the company code in question

Execute
Click on Position
Company Code: 4501

Kasiviswanath.V [email protected]

11
 SAP FICO MATERIAL

Company Code Name F.M Area

4501 Metro Hyd 4501

Save
Financial Accounting New:

1.. Define Field Status Variants:

In this section I will cover both Field Status Groups (FSG) and Field Status
Variants (FSV), FSG control the additional account assignments and other
fields that can be posted at the line item level for a G/L account, it is
important to remember that field status of your account must mesh with the
field status group of the posting key and/or Material Management (MM)
movement types. A common posting error occurs when a field in the G/L
field status group and the same field in the MM movement type field is
suppressed. It is a good idea to keep as many fields as possible optional and
to make only the most important fields as required or suppressed.

A field can be in one of three states

Kasiviswanath.V [email protected]

12
 SAP FICO MATERIAL

➢ Suppressed - the field is hidden from view

➢ Required entry - the field is a required (mandatory) field and you are
required to put an entry in
➢ Optional entry - it is up to you if you want to fill in this field, it can be left
blank

SAP uses link rules to overcome conflicts between field statuses, we can see
the rules in the table below

G/L Account Field Status

Final Status Using Link
Required Optional Rule
Suppressed
Entry Entry

X Suppressed

Suppressed X Error

Postin X Suppressed
g Key
field X Error
status
Required Entry X Required Entry

X Required Entry

X Suppressed

Optional Entry X Required Entry

X Optional Entry

There are 42 defined FSG in the SAP system, all starting with "G", each
FSG is made up of subgroups that include the following

➢ General Data
➢ Additional Account Assignments
➢ Materials Management
➢ Payment Transactions
➢ Asset Accounting
➢ Taxes
➢ Foreign Payments

Path: Financial Accounting (New) – Financial Accounting Global

Setting (New) – Ledgers- Fields
Execute (F8)
Kasiviswanath.V [email protected]

13
 SAP FICO MATERIAL

Note: In Sap Standard Field Status Variant Is “0001”

Select “0001” Line
Double Click on Field Status Group’s
Create New Fields:
Field Status Group Text
G002 Internal Order
G004 Cost Centre
G010 Profit Center
Save
2.. Assign Company Code to Field Status Variant.

Assign the company codes in which you want to work with identical field
status groups to the same field status variant. You define your field status
group per field status variant.

Execute
Click on Position
Company Code: 4501
Company Code Company Name City Field Status
Variant
4501 Metro Hyd Hyderabad 0001
Save

Chart of Accounts

Before you prepare for G/L account creation in the R/3 System, you may
have to revise your existing G/L chart of accounts. This may be necessary
because:

You want to reduce the number of G/L accounts you are already using.

Your current organization has several legally independent companies using

different G/L accounts, but you now want them all to use the same chart
of accounts in the R/3 System.

You want to extend the length of the account numbers.

Your cost accounting operations are currently carried out in financial

accounting, but in the future you want to implement cost accounting as
a separate component.

Kasiviswanath.V [email protected]

14
 SAP FICO MATERIAL

Activities: Prior to creating a chart of accounts and G/L accounts in the

system, you should go through the following activities to find out which
accounts your organization requires.

1. Determine the account classification (such as account system) you want

to use to structure your chart of accounts with.

2. Find out from your employees which G/L accounts are needed for which
business transactions and which accounts they currently post to.

3. Identify the accounts which are no longer required.

4. Determine which particular accounts are used for automatic postings or

special G/L transactions in the R/3 System. Decide which ones you want to
include in your chart of accounts. To do this, analyse the charts of accounts
delivered with the standard system.

Additional Information: The Financial Accounting documentation

describes those G/L accounts that are specially needed in the R/3System
from a business perspective.

Chart of Accounts

One for the first big hurdles is settling on a chart of accounts, before
discussing the chart of accounts it is essential that both you and the client
personnel responsible for design decisions have a clear understanding of the
differences between FI and CO, the main reporting purposes of FI is
external legal reporting to outside authorities (Securities and exchange
commission, Internal Revenue Service, etc), the main reporting of CO is
internal managerial reporting. It is common for chart of accounts to include
general ledger accounts, geographic regions, departments codes, etc.
Used to record the day-to-day transactions in the company code, it is also
Operating known as the standard chart of accounts both FI and CO make use of these
Chart of element. This can be different from the country chart of accounts. Each
Accounts company code will work with exactly one operating chart of accounts though
the same chart can be assigned to more than one company code.

Meet the country-specific legal requirements, (Accounting Schedules) though it

Country is optional to assign a company code you will need it when you work with a
Specific different operating chart of accounts, you can establish the link by entering the
Chart of country charts G/L account number in the alternate account number field of the
Accounts G/L master record (under company code section) of the operating chart of
accounts

Kasiviswanath.V [email protected]

15
 SAP FICO MATERIAL

Consolidating all company codes (with different operating chart of accounts)

Group
belonging to a company, the assignment of group chart of accounts to a
Chart of
company code is not mandatory, this is also known as the corporate chart of
Accounts
accounts.

The collection of various charts of accounts that can be used in a client is known
Chart of as the chart of accounts list, you will add all the charts of accounts that you may
Accounts need in this list so as to meet the statutory or legal requirements, location
List requirements and corporate reporting requirements of several company codes of
your company.

Chart of accts - a four-character identifier

Description - self explaining
Maintain language - We will select English for all chart of accounts
Length of G/L account number - the length of the G/L account, a
maximum length of 10 can be used.
Controlling integration - used to indicate how the system should be
creating the cost elements when New G/L accounts are created
Group Chart of Accts - This is used for company consolidation; the CONS
chart of accounts is used as the group chart for the operative chart of
accounts CAUS. For consolidation define the balance sheet and P&L by
using group account number you do not need to create them separately for
each country.
Blocked - this is used to block the creation of any New G/L accounts in the
company code from this charts of accounts

Edit Chart of Accounts List: In the chart of accounts list you enter the charts
of accounts that you want to use in your organization (at client level).

Standard settings: The list already contains sample charts of accounts

for some countries. Charts of accounts GKR and IKR, for example, have
been entered for Germany.

Activities:

1. Check whether you can use one of the charts of accounts supplied with
the standard system. To do this, you can display the charts of accounts on
the screen or print them out using the "Chart of Accounts" program. You
can find the program under

Accounting -> Financial accounting ->General ledger -> Information

system -> General Ledger Reports -> Master Data -> -> Chart of Accounts

.2. If you want to create your own chart of accounts, enter it in the chart
of accounts list.

Kasiviswanath.V [email protected]

16
 SAP FICO MATERIAL

Path: Financial Accounting (New) - General Ledger Accounting (New)

- Master Data - G/L Accounts – Preparations
1.. Edit Chart of Accounts List
Execute (F8)
Click on New Entries (F5)
Chart of Account: 4500
Description: Metro Chart of Account
Maintain Language: En
Length of GL: 6
Controlling Integration: Automatic creation of Cost Elements
Group Chart of Accounts < Blank>
Save
2.. Assign Company Code to Chart of Accounts

For each company code, you need to specify which chart of accounts is to
be used. Several company codes can use the same chart of accounts.

Requirements: The chart of accounts must be defined in the chart of

accounts list. Choose Edit Chart of Accounts List to enter a chart of
accounts in the chart of accounts list.

Transaction Code: OB62

Execute
Click on Position
Company Code: 4501
Company Company City Chart of Group
Code Name Accounts Chart of
Accounts
4501 Metro hyd Hyderabad 4500 -
Save
3.. Define Account Group

When creating a G/L account, you must specify an account group.

The account group determines:

Kasiviswanath.V [email protected]

17
 SAP FICO MATERIAL

• The interval in which the account number must be

• Which fields are required and optional entries when creating and changing
master records

• Which fields are sup Click owned when creating and changing master data.
It enables you to control the layout of screens.

Use account groups to combine accounts according to the above criteria (for
example, a P&L account group, asset account group and material account
group).

Note: Account groups for G/L accounts are based on the chart of accounts.

Execute
Click on New Entries
Chart of Account Name From To Account
Account Group Account
4500 Liab Liabilities 100000 150000
4500 Asse Assets 200000 250000
4500 Clea Clearing Accounts 199996 199999
4500 Cont Contingent 199995 199995
Liability
4500 Reve Revenues 300000 350000
4500 Expe Expenses 400000 450000
Save
4.. Define Retained Earnings Account

Assign a retained earnings account to each P&L account by specifying a

P&L statement account type in the chart of accounts area of each P&L
account.

At the end of a fiscal year, the system carries forward the balance of the
P&L account to the retained earnings account. You can define one or more
P&L statement account types per chart of accounts and assign them to
retained earnings accounts.

Note: Specification depends on the chart of accounts.

Execute
Chart of Accounts:
P& L Statement Account
X 101000

Kasiviswanath.V [email protected]

18
 SAP FICO MATERIAL

Save
Sort Keys for Gl Creation:
Create 01
Edit 02
View 03
Copy 15
F - finance
S - General Ledger

GL Account Creation: FS01

Description Basic GL Recon.GL Tax GL

GL Account Number 100000 200301
Company Code 6901 6901
Short Text CAPITAL Debtor
Long Text CAPITAL Debtor
Balance Sheet Account YES Yes
P& L Statement Account
Type
Functional Area
Account Group LIAB Asse
Account Currency INR Inr
Only Balances in Local YES Yes
Currency
Tax Category
Posting Without Tax Allow
Recon Account for Account customer
Type
Inflation Key
Open Item management
Line Item display YES Yes
Sort key 001 001
Field Status Group G001 G067
Post Automatically Only
Relevant to Cash Flow
House Bank
Account Id
Save
Description Open Item Post Bank
Management Automatically
GL Account Number 110401 200402 200700

Kasiviswanath.V [email protected]

19
 SAP FICO MATERIAL

Company Code 6901 6901 6901

Short Text RENT PAYABLE PETTY CASH MAIN BANK
Long Text RENT PAYABLE PETTY CASH MAIN BANK
Balance Sheet Account YES YES YES
P& L Statement Account
Type
Functional Area
Account Group LIAB ASSE ASSE
Account Currency INR INR INR
Only Balances in Local YES YES YES
Currency
Tax Category
Posting Without Tax
Allow
Recon Account for
Account Type
Inflation Key
Open Item management YES
Line Item display YES YES YES
Sort key 001 001 001
Field Status Group G001 G005 G005
Post Automatically Only YES
Relevant to Cash Flow YES
House Bank
Account Id
Save
Description Revenues Expenses Cost Element Cost Element
Revenues Expenses
GL Account
Number
Company Code
Short Text
Long Text
Balance Sheet
Account
P& L Statement
Account Type
Functional Area
Account Group
Account Currency
Only Balances in
Local Currency
Tax Category
Posting Without
Tax Allow
Recon Account
Kasiviswanath.V [email protected]

20
 SAP FICO MATERIAL

for Account Type

Inflation Key
Open Item
management
Line Item display
Sort key
Field Status Group
Post
Automatically
Only
Relevant to Cash
Flow
House Bank
Account Id
Save

General Ledger Creation Field Theory

GL Account Number Enter the G/L account number to be created and the company
code in which the G/L account is to be created.
Account Groups The account group field is used to group together general
ledger accounts on the basis of the functionality. The account
group field defines the number range which can be used for a
certain category of accounts. It also defines which fields are
available on the different tabs while creating a general ledger
account.
P & L Account one of the main reasons for defining general ledger accounts
is to have the ability to produce financial statements. A
general ledger account may be included in the balance sheet
or the profit and loss statement depending on its type. For
example, a ‘Utilities Expense’ Account has to be defined as
the profit and loss account as it forms a part of the profit and
loss statement while any fixed asset account has to be defined
as the balance sheet account, as it forms a part of the balance
sheet. Select the type of general ledger account
Short & Long Text Enter a short as well as a long description of the GL account.
The description should make it easy to understand the
purpose of the account. A group account number may be
defined to assign a group of general ledger accounts to the
balance sheet or the profit and loss statements.
Account Currency The account currency is the currency in which the account
balances are to be maintained. The recon account indicator
sets the general ledger account as a reconciliation account.
Reconciliation accounts can be defined for assets, customers
or vendors. The tax category can be used to define only input
tax, only output tax or both the taxes for the general ledger
account.
Kasiviswanath.V [email protected]

21
 SAP FICO MATERIAL

• Field Status The field status group decides which fields are available for
Group data entry for this G/L account. The interest calculation
frequency defines the number of months after which the
interest is recalculated.
Only Balances in To update the Balances only in local Currency when user
Local Currency posts the items to this GL Account
Tax Category Use the Drop Down Menu and select Tax code key if account
is Tax Relevant
Posting Without Tax If Posting for Account is Without tax
Allow
• Recon Asset/ Customer / Vendor If account is for Reconciliation
Account for Account
Account Type
Tolerance Group The Field for Open Item Clearing Differences.
• Open Item If Account to be Display as per Open Item Lines, Open item
Management Management is used for only Balance Sheet Account
Line Item Display Account to be Display as per line Item
Sort key Appropriate Sort key for the account
Post Automatically Account can posted by the System using Account
only Determination Table
• Relevant to Determines the GL Account is a Cash Flow Account
cash Flow
House Bank Account is Indicator for Company Bank
Account ID House bank of Account
• Primary Cost Primary cost element or revenue element, it must be listed
element first as a G/L account in the chart of accounts and defined as
an account in Financial Accounting. In other words, primary
cost elements and revenue cost elements require counterparts
in FI. When you create a primary cost/revenue element, the
SAP System checks whether a corresponding account exists
in FI.
Secondary Cost Used exclusively in Controlling (CO) and need not be
Element defined in FI. It can be used for internal allocation purpose.
Interest Indicator Account is to be Included in automatic interest Calculation
Interest Calculation Interest Is to be Calculated automatically for this account at
Frequency Interval’s
Key Data of Last Date of Last Time Interest Calculation Program Processed for
Interest Calculation this Account.
Date of last interest Calculation for this interest.
Run

Master Data

G/L accounts uses balance sheets and P&L statements, you manage receipts
and issues for a stock on balance sheet accounts and you close them at the
end of the fiscal year using the financial statement. The balance on a
balance sheet account is carried forward to the new fiscal year, in contrast
Kasiviswanath.V [email protected]

22
 SAP FICO MATERIAL

you enter expenses and revenues for a company on P&L accounts, you
close them using P&L statement and they have a zero balance at the start of
each fiscal year.

The collection of all G/L accounts used by a company is called a general

ledger, the below diagram gives you some examples of G/L accounts

Postings are sorted in chronological sequence within the account. You

create the balance sheet and the P&L statement from the general ledger.
Sub-ledger's describe a general ledger account (known as the reconciliation
account). When you create a G/L account you must first specify an account
group which is why you need at least one account group. Accounts that
require the same master record fields and number range are created with the
same account group. An account group is a group of properties that controls
the management of master records. The account group controls the screen
layout when you enter master data and it defines the number ranges for the
account name.

G/L account master data is split into two parts (see below diagram), one for
specifically for the chart of accounts (related to cross-company code data)
and the other for the company codes, for example the G/L account number
is assigned once at the chart of accounts level, for the company code data
you define how you enter documents (field control group) and manage
Kasiviswanath.V [email protected]

23
 SAP FICO MATERIAL

accounting data (manage open items, display line items) or control currency
you can use to post the account (account currency).

I will be covering all fields in the master data but will only discuss them in
the relevant section, so don't worry if I skip a few options they will be
discussed.

To create or maintain a G/L account at the chart of accounts level you can
use transaction code FSP0, enter an existing account to see details of that
account or create a new account, you can also copy an account from another
chart of accounts (known as create from template).

Account group - This field controls the screen layout of the area
specifically for company codes when you create or change the master
record and assignment of account numbers. You can define and hide fields
or make them optional, the account group applies in all company codes that
use this chart of accounts.
P&L statement acct - You must specify the account to which the balance
is carried forward for the new fiscal year, remember the P&L accounts will
be reset to zero at the end of the fiscal year.
Balance sheet acct - The balance on the balance sheet is carried forward to
the new fiscal year
Account group number - you can link up to three chart of accounts with
each other in the SAP system, for example the funds are consolidated in
consolidation item (group account) 125300.
Trading Partner - if applicable, you enter this for consolidation-related
activities

Kasiviswanath.V [email protected]

24
 SAP FICO MATERIAL

The key word/transaction tab allows you to use multiple languages for
keywords, the information tab provides details about the history of the
master data record.

Cost Accounting

Cost accounting is directly tied to the operating chart of accounts as such

the chart of accounts assignment depends on how the cost accounting is
organized. When assigning an operating chart of accounts to a company
code you have the option to either assigning the country-specific chart of
accounts or your group chart of accounts, this is depends on how your
company operates, in other words whether the cost accounting department
is centralized, decentralized or regionalized, a summary table is below

Organizatio Operating Country-

Group chart of
n of Charts Cost Accounting Chart of specific chart
accounts
of Accounts accounts of accounts

Group chart of For local

Centralized Cross-company code Not Require
accounts requirements

Decentralized by regions For corporate

Regionalize Region-specific For local
such as Europe, APC, group
d chart of accounts requirements
Americas requirements
For corporate
Decentralize At the company code Country-specific
group Not required
d level chart of accounts
requirements

The next table shows the pros and cons of the centralized and decentralized
approaches of chart of accounts organization, there are many ways for you
to configure how cost accounting relates to your general ledger chart of
accounts.

Approach Pros Cons

Kasiviswanath.V [email protected]

25
 SAP FICO MATERIAL

• Cross-company cost accounting is possible

• The accountants cannot work
• Consolidation is carried out using the
with their own country-specific
Centralized operating chart of accounts, which is the
charts of accounts
corporate group chart of accounts

• The accountants can work in their own

country-specific chart of accounts • Cross-company code cost
Decentralize
• You cannot consolidate data using the accounting is not possible
d
corporate group chart of accounts

Document Splitting:

➢ Classify G/L Accounts for Document Splitting

Each business transaction that is entered is analyzed during the document
splitting procedure. In this analysis, the system determines for each line
item whether it is an item that remains unchanged or an item that should be
split.
In order that document splitting recognizes how the individual document
items are to be handled, you need to classify them. You do this by assigning
them to an item category. The item category is determined by the account
number. In this IMG activity, you need to assign the following accounts in
the system:
Revenue account
Expense account
Bank account/cash account
Balance sheet account
The classification of all other accounts is known to the system, so you do
not have to enter them here. You can enter an account interval since the
system recognizes SAP-specific classifications and does not allow SAP
settings to be overwritten by your own settings.
Example
The following item categories are included in the system:
Customer
Vendor
Cash discount offsetting
Asset
Material
Expense
Revenue
Account Account To Overrd Category
From
100000 250000
300000 350000
400000 450000

Kasiviswanath.V [email protected]

26
 SAP FICO MATERIAL

Save

Document Splitting

✓ document splitting with the help of one of the most basic business
transaction as “Vendor Invoice”. Suppose we have vendor invoice as below
which consists of two expense line items say 10,000 in total with 1,000 of
tax component which sums to 11,000.
✓ Expense Item 1 for 8,000 where it is assigned to PC – X
✓ Expense Item 2 for 2,000 where it is assigned to PC – Y
Account Amount Profit Centre
Vendor A/C -11,000
Expenses 1 8,000 PC – X
Expenses 2 2,000 PC – Y
Input Tax 1,000
✓ If any person is responsible for PC – X wish to analyze the transactions
performed for PC – X, but unfortunately the user can’t – because of, if you
look at the transaction the “Vendor Balance” and “Input Tax” is cumulative
and hence is not assigned to any of the profit center either X or Y.
✓ Now if you look at the transaction above it represents that the total expense
is distributed in the ratio of 80% and 20% and same of Profit Centre of X
and Y. So base to this the Vendor Balance and Input Tax should also have
split according to 80%-20% rule.

✓ As per the above image the system should have posted the document as per
below financial transaction entry in system –

Kasiviswanath.V [email protected]

27
 SAP FICO MATERIAL

✓ Okay so the conclusion for whole exercise is, if the user can post the
document as above, the reporting will be pretty particular and balanced and
there won’t be a problem – issue is re-solved.
✓ Its easily said that issue will be solved but why any user will separate the
line item as per calculations and split its bases always on its ratio, especially
when there are 100’s of line items sometimes in any document! And what if
system takes care of this?
✓ Well the answer is Yes, and that’s what the document splitting is all about!
✓ Now we will understand the Document Splitting elements and key concepts
–
✓ Passive Splitting /Classify General ledger accounts for Document
Splitting– This type of splitting is mostly occurring when the payment
transaction is posted for a vendor invoice. Now system splits the payment
document bases on how the vendor invoice was split in place already.
✓ Active Splitting – In Active Splitting the document is split according to my
SAP ERP predefined rules. SAP almost supports all the business process
transactions but if it doesn’t suit to any requirement the own splitting rules
can be created.
✓ Zero Balancing Splitting – When the amounts within financial documents
are not able to balance out to Debit of Profit Centre and Credit of Profit
Centre which does not Net Off as its own, SAP then automatically generates
new line item to balance the document. We will see the example in
following section of this scenario.
✓ Item Category – Item category categorizes the general ledger accounts for
document splitting. In the configuration each GL account is assigned to
item category. Just to name a few like 01000 – Balance Sheet Account,
02000 – Customer, 03000 – Vendor and so on.
✓ Business Transaction – Business transaction is real scenario of business
processes happens in organization such as vendor invoice, customer invoice
etc.
✓ Business Transaction Variant – In the SAP, financial postings are derives
the item category for individual line item. Business transaction variant
always works in conjunction with business transaction where business
transaction restricts the business processes to be posted to. System validates
a check all postings against the item category to validate if these postings
are allowed by splitting rule if not then understand this failed.
✓ Document Splitting Method – Document splitting method works in
combination with business transaction and business transaction variant it
determines the document splitting rule.

Kasiviswanath.V [email protected]

28
 SAP FICO MATERIAL

✓ Document Splitting Rule: Document splitting rule determines which item

categories will be split and from which item categories it will derive the
account assignment.

Activate Document Splitting:

Transaction code: FAGL_ACTIVATION

Execute
Double Click on De-Activation per Company Code
Click on Position & Enter Company Code
Company Code Company Name In-Active
4501 Metro Hyderabad Active

Save

Define Zero-Balance Clearing Account

For account assignment objects for which you want to have a zero balance
setting, the system checks whether the balance of account assignment object
is zero after document splitting.

If this is not the case, the system generates additional clearing items. In this
activity, you have to create a clearing account for these additional clearing
items.

Select “000” line – Zero Balance Clearing Account

Double Click on Accounts
Account Description
199999 Zero Balance Clearing Account
Save
NEW GENERAL LEDGER:

Ledgers for G/L Accounting

The leading ledger is integrated with all subsidiary ledgers, designate one
of the ledgers as the leading ledger and this will be updated in all company
Leading codes. This ledger automatically receives the settings (like currency, Field
Ledger Status Variant and Posting Period Variant) that apply to a company code.
There is only one leading ledger per client and you should use the SAP
supplied totals ledger 0L as your leading ledger.

Kasiviswanath.V [email protected]

29
 SAP FICO MATERIAL

Defined as parallel ledgers to the leading ledger you need to activate these
ledgers manually for each of the company codes, you can use them to
Non- represent the Generally Accepted Accounting Principles (GAAP) applicable
Leading for the country wherein your company is located. Such ledgers can have a
Ledger different Fiscal Year Variant, second or third parallel currency than that of
the leading ledger in each of the company codes. When you create a non-
leading ledger SAP automatically creates a ledger group with the same name.

We have already touched on ledgers in the New G/L section, now we will
expand more on this, all the ledgers you define in this section will be based
on the new totals table FAGFLEXT, the ledgers are classified into leading
and non-leading ledgers

We will use the leading ledger 0L but create three non-leading

Path: Financial Accounting (New) – Financial Accounting Global

Setting (New) – Ledgers – Ledger
1.. Define Ledgers for General Ledger Accounting
Execute
Click on New Entries (F5)
Ledger Ledger Name Total Table’s
ME Metro Ledger FAGLFLEXT
Save
2.. Define Currencies of Leading Ledger

Specify the currencies to be applied in the leading ledger. You can make the
following settings for each company code:

The local currency (as company code currency) is specified in the company
code settings.
You can define one or two additional local currencies that you store per
company code parallel to the first local currency.

For additional local currencies you define the following data per company
code:

• Currency type

The currency type defines the role of the parallel currency. A distinction is
made between the following types of currencies:

Company code currency

Group currency
Hard currency
Kasiviswanath.V [email protected]

30
 SAP FICO MATERIAL

Index-based currency
Global company currency

➢ Exchange rate type for the translation

The exchange rate type determines the exchange rate, which is stored in the
system, is applied in calculating the additional amount fields. As in the case
of the local currency, you can use exchange rate type M (average rate) or
any other exchange rate type.

➢ Base currency for the translation

The calculation of the amounts in parallel currencies can be determined

using the document currency of the local currency.

➢ Translation date

The rate for translation amounts can be based on the translation date,
the document date, or the posting date.

NOTE: You cannot change the currency type for company codes that are
already productive.

Execute
Click on New Entries (F5)
Enter Company Code: 4501
1st Local Currency:
Currency Type:
Valuation:
Exchange Rate Type:
Secure Currency:
Trs dte Type:
Save
Define and Activate Non-Leading Ledgers:

Make the following settings for the non-leading ledgers for each company
code:

You activate the non-leading ledgers in the company code.

You can define additional currencies beyond that of the leading ledger. The
first currency of a non-leading ledger is always the currency of the leading
Kasiviswanath.V [email protected]

31
 SAP FICO MATERIAL

ledger (and hence that of the company code). For the second and third
currencies of a non-leading ledger, you can only use currency types that you
have specified for the leading ledger.
You can define a fiscal year variant that differs from that of the leading
ledger. If you do not enter a fiscal year variant, the fiscal year variant of the
company code is used automatically.
You can specify a variant of the posting periods.

Execute
Click on New Entries (F5)
Enter Ledger: ME
Company Code Company Name C1 Currency 1
4501 Metro Hyd Inr Inr
Save

Assign Scenarios and Customer Fields to Ledgers:

Assign the following to your ledgers:

Scenarios
o This determines what fields in a ledger are updated when it receives posting
from other application components.
Custom Fields
o You can add custom fields (that you have already defined) to the ledger.
Versions
o This enables you to make general version settings for the ledger that depend
on the fiscal year. In the versions, you specify whether actual data is
recorded, whether manual planning is allowed, and whether planning
integration with Controlling is activated.

Note: You cannot make assignments to rollup ledgers. You create rollup
ledgers with the desired versions in Customizing for General Ledger
Accounting (New) under Tools -> Rollup -> Define Rollup Ledgers in
General Ledger Accounting.

Execute
Select Company Ledger Line
Double Click on Scenario
Scenario Long Text
GSBER Business Area
UKV Cost of Sales Accounting
Save

Kasiviswanath.V [email protected]

32
 SAP FICO MATERIAL

Activate Cost of Sales Accounting:

Activate cost of sales accounting for your company codes, which means
that when you post to these company codes, the functional areas are derived
and updated.

To activate cost of sales accounting, you must make at least one of the
following settings:

Assign a functional area to the master data of the account assignment

objects.
o You can make this setting under Enter Functional Area.
You have defined and activated a substitution.

❖ If you determine the functional area on the entry screen, you make the
settings under Define and Activate Substitution for Cost of Sales
Accounting.
❖ If the functional area is not defined until you save (indicator Determine
Functional Area on Entry Screen is not set), you make the setting under
Configure Substitution for Cost of Sales Accounting.

You can also assign the functional area to the master data and define a
substitution.

Execute
Click on Position
Company Code: 4501
Company Code Company Name COS Status
4501 Metro Hyd Active
Save

Define Ledger Group:

When a ledger is created, the system automatically generates a ledger group

with the same name. In this way, you can also post data to an individual
ledger or access it when using functions where you can only enter a ledger
group and not ledgers.
o You can change the name of the ledger group that was taken from the
ledger.
You only have to create those ledger groups in which you want to combine
several ledgers for joint processing in a function.
You do not need to create a ledger group for all ledgers because the system
automatically posts to all ledgers when you do not enter a ledger group in a
function.

Execute
Kasiviswanath.V [email protected]

33
 SAP FICO MATERIAL

Select Company Ledger Line <ME>

Double Click on Ledger Assignment
Select REP Ledger
Save

Enter Global Parameters (OBY6)

In SAP a company code as I have mentioned is a representative of a stand-

alone legal entity that requires its own set of accounting records for
reporting purposes. Before we finish off the company code configuration I
want to create a workflow variant, this allows you to group and route the
documents processing of several company codes, the workflow variant
helps in posting and payment release which are routed to users and
processes in the system for approval or further processing. We will use
transaction code OBWA

After you have saved you will see the workflow variant in the view/display
screen

Now we will finish off the configuration of the company codes, for this we
will use transaction OBY6, the global parameters control how a company
code behaves in the system, these parameters influence the way system
process the business transactions. All 35 parameters are grouped into two
categories

• Accounting Organization
• Processing Parameters

Kasiviswanath.V [email protected]

34
 Accounting Organization
SAP FICO MATERIAL
chart of accounts the chart of accounts that will be used for this company code

the company is different from the company code, a company is generally used in
company the legal consolidation module to roll up financial statements of several company
codes. A company can consist of one or more company codes.

credit control this controls the credit limits (tolerances) for your customers, a credit control
area area can be linked to one or more company codes.

select this box only when you use the company code as external entity so as to
ext co code use the document entry function for external SAP systems, the setting is only
relevant if you are using ALE.

set this indicator when all the customizing data transfers are complete and yo are
company code is ready to go live, when set the system will prevent resetting of data for a
productive company code, which basically means you cannot delete any data from the
company code.

country chart of use this when when a country chart of accounts is different from the operating
accounts chart of accounts

FM areas are used for advanced functions of the treasury module, more
specifically for funds management which allows you clients organization to
FM Area
budget commitments and financial resources, they can contain more than one
company code.

Fiscal Year
See Fiscal Year for more details
Variant

in conjunction with ext.co.code enter the cross-system company ID of the

Global Co Code external company code that will be used in the document entry function as a
sender or receiver, this is only used if you are using ALE.

VAT used within the European Union for tax-exempt deliveries for the EC sales list.
Registration No (Enter one for the UK company)

Processing Parameters

Document
you can use this for entering country-specific features in document processing,
Entry screen
we will select 2 as we require for extended withholding tax.
variant

Field status the FSV groups together several fields status group to specify which fields are
variant required, optional or suppressed when processing transactions.

pstng period the PPV controls the opening and closing of posting periods for each company

Kasiviswanath.V [email protected]

35
 SAP FICO MATERIAL

variant code.

if you are working with different currencies in your organization enter the
maximum percentage rate in which a foreign currency transaction can deviate
from the rates entered in the exchange rate tables, an exchange rate can deviate
Max Exchange
because SAP gives you the option of specifying an exchange rate when entering
rate deviation
a document in a foreign currency. If the exchange rate is entered manually on the
document deviates from the exchange rate specified in the exchange rate table by
more than the percentage specified in this field a warning message is displayed

used for the creation of G/L accounts which acts as the template from which
Sample acct
certain data can be transferred to newly created G/L accounts, the transfer is
rules var
controlled by data transfer rules.

Workflow allows grouping to route documents in posting and payment release, see
variant company code global parameters for more information

Inflation only used for inflation accounting functionality, SAP have inflation indexes that
method are pre-delivered, they are specific to a country.

leave blank for the system to pull the exchange rate from the document header
Crcy trans for for translating the tax amounts into local currency balances. You can have
tax alternative options such as manual entry of exchange rate or the exchange rate to
be based on the posting date or document date

CoCD -> CO
used for the controlling area, see the controlling section for more details.
Area

Cost of sales used for functional areas in your master data, thereby creating an additional
accounting actv dimension for categorizing costs.

Negative
the system will make an entry with an opposite sign for reversals, this negative
postings
posting will not increase the trail balance on either side.
permitted

used to activate cash management and liquidity forecast, additional information

Active CM will be stored for purchase orders, sales orders, etc relating to transactions
affecting liquidity within the treasury module

Business area this draws business area financial statements, when select the business area is
fin made mandatory during data entry for postings

select when using year-dependant document number ranges, when selected the
Proposal fiscal
system defaults to the last document number processed along with the
year
corresponding fiscal year during transaction postings

Kasiviswanath.V [email protected]

36
 SAP FICO MATERIAL

Define default
sets the current date the default date for the value date for the line items
value date

No forex rate used to control how foreign currency open items are cleared in local currency.
diff when When selected the systems clears the foreign currency open items using the
clearing in LC prevailing exchange rate when those open items were created

the cash discount is deducted from the total invoice amount to calculate the tax
base by means of this setting, whether this field can be used is based upon the
laws of the country where the company conducts business. For example lets say
Tax based is net
an invoice is $100 but offers a discount of $2 for payment within 10 days, the tax
value
base is $98 the total invoice amount ($100) less the cash discount ($2), the tax
calculation carried out by the system will then be $98 times the applicable tax
rate. If this was not set the tax would be $100 the total invoice amount.

the system ignores the tax amounts to arrive at the discount base for calculating
discount. The discount will be on invoice amount less the tax, when not selected
the system includes the tax amount as well in arriving at the discount base. For
example an invoice is $225 and offers a cash discount of 2% if paid within 30
Discount base is days, of the total invoice amount $200 relates to materials and $25 relates to
net value sales tax. if this indicator is set the cash discount base will be $200, the amount
of the materials only, relating to a total payment of $221 that is $200 * (1.00 -
.02) plus the $25 tax amount. if the indicator is not set then $220.50 that is $225
* (1.00 - .02). For countries that uses tax jurisdictions for their tax procedure this
field is ignored.

this controls the reporting and processing of incoming payments and their
Financial assets clearing in the customer area and is used to pass on payment information
mgmt active (especially to the loans subcomponent of treasury management) when using
bank account statement processing and the payment program

used for additional postings are carried out during the posting of receipts of
goods and services. Purchase accounting segments the cost of externally related
Purchase acct
materials, for example you would want to utilize purchase account processing if
proc
you do not want freight values for moving average-priced materials to be
included in your inventory balance.

JV accounting
used for joint-venture accounting
active

this enables splitting and posting of an invoice or credit memo, on payment

Enable amount
terms or payment method, this function is possible in the invoice or credit memo
split
entry single-screen transaction developed as an Enjoy transaction

Kasiviswanath.V [email protected]

37
 SAP FICO MATERIAL

Tax Reporting
reports the date for tax reports
date active

Execute

Click on Position
Enter Company Code:
Tax Base is Net Value
Discount Base is Net Value
Negative Posting permitted
Enable Amount Split
Save
Currencies:
Define Maximum Exchange Rate Difference per Company Code:
Path: Financial Accounting New – Financial Accounting Global Setting
New- Global Parameter- Currencies.
Execute
Click on Position
Company Code Company Name City Max. Exchange

Save
Define Maximum Exchange Rate Difference per Foreign Currency:

Execute

Click on New Entries (F5)

For Currency Loc. Currency Max Ex.Dev

Save

Define Domestic VAT Registration Numbers:

Execute
Click on Position
Company Code:
Company Code Company Name Country Vat Reg.
Kasiviswanath.V [email protected]

38
 SAP FICO MATERIAL

Number

Save
Define Foreign VAT Registration Numbers:

Execute

Click on New Entries (F5)

Company Code Cty Vat Registration Number

Save

Activate Extended Withholding Tax:

Execute

Click on position

Enter Company code:

Company Code Company Name Ext.W/Tax

Save
Activate Accounts Receivable Pledging Procedure per Company Code:

Execute

Click on Position

Enter company code:

Company Code AR Pledg

Save

Maintain Fiscal Year Variant (Maintain Shortened Fisc. Year)

An accounting period is also known as the fiscal year which usually runs for
12 months (each month = one period) with your company publishing a
financial statement for each fiscal year as well as taking stock inventory.
Each period within a fiscal year is known as a posting period. When you
post transactions in the SAP system each transaction is assigned to a
particular posting period (made up of month and year) and the transaction
figures are updated for that period. SAP identifies documents using
Kasiviswanath.V [email protected]

39
 SAP FICO MATERIAL

document type, fiscal year and posting period. It uses Fiscal Year Variants
(FYV) to manage fiscal years and posting periods variants to open or close
posting periods.

There is also a concept called special period to manage activities such as

period-end closing (audit or tax adjustments), a fiscal year can have fewer

There are 12 posting periods that correspond to the 12 calendar

months, with the first posting period starting on 1st January. Normally
Calendar
you use the calendar as the fiscal year which means the start and end date
Fiscal
of each posting period is the same as that of the corresponding calendar
Year
month. Depending on posting date the system will assign the correct
period to a transaction.

a fiscal year that does not corresponding to a calendar year is known

Non-
as a non-calendar fiscal year, and thus such posting periods may or may
Calendar
not match to the calendar months. Its possible that a fiscal year has fewer
Fiscal
then 12 posting periods (shortened fiscal year) which means you have to
Year
define the number of posting periods.

than 12 months known as a shortened fiscal year, there are two definitions
for a fiscal year

• Year-Dependant - set this indicator if the fiscal year is year-dependant that

is you need to repeat the work of maintaining fiscal years every year, it will
be set for a shortened fiscal year.
• Calendar Year - select this if you are defining a calendar fiscal year as we
mentioned above
• No. of posting periods - enter the number of posting periods, maximum of
12
• No. of special periods - enter the number of special periods, maximum of 4

Execute

Select V3 Line

Double click on Periods

Kasiviswanath.V [email protected]

40
 SAP FICO MATERIAL

Click on

Assign Company Code to a Fiscal Year Variant:

For every company code, you must specify which fiscal year variant is to
be used.

Requirements: Defined the relevant fiscal year variant. The variant does
not contain more than 16 periods. For more information,

Execute

Click on Position

Enter Company code :

Company Code Company Name FiscalYear Description

Save

Define Variants for Open Posting Periods

Standard settings: A separate variant for posting periods is defined for

every company code. The name of this variant is identical to the company
code name. Every company code is allocated to this variant with the same
name. Thus nothing has changed in the system yet: Every company code
has its own variant. If you want to and can continue working on this basis
(for example, if you manage with only a few company codes), you do not
have to make any changes in the configuration. If however, you want to use
Kasiviswanath.V [email protected]

41
 SAP FICO MATERIAL

identical variants in several company codes, you must change the default
settings as described in the "Activities" section.

Activities

1. Change the name in one of the variants

2. Allocate all company codes, for which you want to use identical variants
for open posting periods, to this variant. Detailed information on this can be
found in the chapter "Allocate company code to variant"
3. Delete the variants no longer required

Execute

Click on New Entries (F5)

Variant Name

Save

Assign Variants to Company Code

Make the specification that is necessary to be able to work in several

company codes with the same variant for open posting periods. For this
reason, you assign the same variant key to the company codes you want
to group together.

Execute

Click on Position

Enter Company code:

Company Code City Variant

Save

Open and Close Posting Periods:

Specify which periods are open for posting for each variant. You have two
time intervals (time period 1 and time period 2). In each interval, specify a
period lower limit, a period upper limit, and the fiscal year. You close a
period by selecting the period specifications so that the period to be closed
does not fall within them. You can also assign authorization groups
for permitted posting periods. This means that in month-end or year-end
closing for example, you can open some posting periods for specific users

Kasiviswanath.V [email protected]

42
 SAP FICO MATERIAL

only. The authorization group only has an effect on time period 1. The
authorization object is F_BKPF_BUP (Accounting
document: Authorizations for posting periods). For more information
about assigning authorizations

Note: Specify G/L account numbers for your specifications. You define the
permitted posting periods for the sub-ledger accounting accounts using the
relevant reconciliation accounts. To do this, specify the account type for the
sub-ledger accounting, such as D or K, and the relevant reconciliation
account.

Caution: There must be a minimum entry for each variant. This entry must
have “+” in column K , and the columns From Account and To Account must
not contain entries. In the columns for the posting periods, specify the
periods you want to always be open in this variant. With further entries, you
define more specifically which periods are to be open for which accounts.

Activities

1. Specify the periods permitted for posting.

2. First enter the periods permitted for posting for all variants (minimum
entry).

3. Then add entries for account types or account areas if the periods are to
be further restricted for specific accounts.

4. In addition, enter an authorization group for each time period 1 in order

to limit user access

Execute

Click on New Entries

Variant Attribute To. From Year To Year From Year To Year

Account per.1 Period Period Period
2 2

Kasiviswanath.V [email protected]

43
 SAP FICO MATERIAL

Save

Open and Close Posting Periods According to G/L Account Assignment

:

Specify which posting periods are open for the posting for each variant and
account assignment object. Two time intervals are available for this (period
1 and period 2). You specify a lower and upper limit for the period and the
fiscal year in each interval.

You close periods by choosing the period specifications in such a way that
the periods to be closed are no longer included.

You can also assign authorization groups for permitted posting periods. As
such, you can for example open certain posting periods for specific users
only for a particular month or year-end closing. The authorization group can
only be assigned as document header level and is only valid for period 1.
The authorization object is called F_BKPF_BUP (Accounting document:
Authorizations for posting periods).

Activities

1. Enter the variant of the posted company code and account assignment
object of general ledger accounting for which you want to either open or
close the posting periods.

2. Specify the interval of the affected account assignments and periods that
are allowed for the posting

3. Enter an authorization group for each period 1 for which you want to
create an authorization protection

Execute

Click on New Entries (F5)

Variant Field Name

Kasiviswanath.V [email protected]

44
 SAP FICO MATERIAL

Save

Parallel Accounting:

Define Accounting Principles:

Execute

Click on New Entries

Accounting Principle Name / Description

Save

Assign Accounting Principle to Ledger Groups:

Execute

Accounting Principle Target Ledger Group Description

Save

Document

Document Types and Number ranges

Number
Type Description Range
AA Asset Posting 01
AB Accounting Document 01
G/L Account
SA Document 01
AF Depreciation Pstngs 03
SK Cash Receipt Doc 13
SP Cash Payment Doc 01
RV Billing Doc.Transfer 00
DZ Customer Payment 14
DA Customer Document 16
Customer Credit
DG Memo 16

Kasiviswanath.V [email protected]

45
 SAP FICO MATERIAL

DR Customer Invoice 18
KZ Vendor Payment 15
KA Vendor Document 17
KG Vendor Credit Memo 17
KR Vendor Invoice 19
ZP Payment Posting 20
ZR Bank Reconciliation 20
ZV Payment Clearing 20
CJ Cash Journal 04

➢ Define Document Types for Entry View

Define your document types. Document types are used to differentiate the
business transactions and to manage how document are stored. This
documentation describes the special procedure for setting up document
types for New General Ledger Accounting.

Activities: If you only work with one ledger (the leading ledger),
proceed as follows: In this activity, define for all postings the document
types for the documents in the entry view. Also assign a number range to
the document types. For example: Document Type SA, G/L Account
Document, Number Range 01Document Type SB, G/L Account Posting,
Number Range 12

• If you work with a leading ledger and with non-leading ledgers, proceed
as follows: Since the majority of postings have the same effect in all
ledgers, define in this IMG activity the document types for the entry view
Kasiviswanath.V [email protected]

46
 SAP FICO MATERIAL

for postings that affect all ledgers. Also assign a number range to
the document types. Example: Document Type SA, G/L Account Document,
Number Range 01Document Type SB, G/L Account Posting, Number
Range 12In the case of postings that do not have the same effect on all
ledgers, proceed as follows:

Postings only for the leading ledger: Define a separate document type for
these postings. Assign a unique number range to this document type.
Example: Document Type SX, Closing Postings, Number Range 90

➢ Postings for non-leading ledgers: You make these settings under Define
Document Types for Entry View in a Ledger.

Note: By segregating the ledger-related postings (here, the leading ledger)

in a separate number range, you ensure the contiguous assignment of
document numbers at the ledger level for each number range

➢ Define Document Types for Entry View in a Ledger

Here, you make the settings specifying the document type for postings to
non-leading ledgers.

Under Define Document Types for Entry View, you make the document
type settings for postings in the entry view that affect all ledgers and for
postings to the leading ledger.

Requirements: work with a leading ledger and with non-leading ledgers.

Activities: To define document types for postings to non-leading ledgers,

proceed as follows:
Set up a separate document type for these postings. Assign a unique number
range to this document type for each ledger.

Example:
Document Type SX, Closing Postings, Ledger L2, Number Range 91
Document Type SX, Closing Postings, Ledger L3, Number Range 92

Note: By segregating the ledger-related postings (here, for the non-leading

ledgers) in a separate number range, you ensure the contiguous assignment
of document numbers at the ledger level for each number range.

Within a ledger group, the representative ledger determines the document

types and number ranges applied. For this reason, you cannot perform this
IMG activity for a ledger group.

Execute

Ledger :
Kasiviswanath.V [email protected]

47
 SAP FICO MATERIAL

Type Number Range

Save

➢ Define Document Types for General Ledger View

Define for non-leading ledgers the document types for the documents in
the General Ledger view. At the same time, you assign for each document
type a number range to be applied in the assignment of document numbers:

• You do not need to make these settings for your leading ledger because, in
the case of this ledger, the document number in the entry view always
corresponds to the document number in the general ledger view.

• You only have to make these settings for any non-leading ledgers that have
a fiscal year variant that differs in at least one company code from the fiscal
year variant of the leading ledger in this company code. In this case, the
document number in the entry view does not correspond to the document
number in the general ledger view and you have to define a separate
document type with document number assignment for the general ledger
view.

For all non-leading ledgers that, in the company code to which the postings
are made, have a fiscal year variant corresponding to the fiscal year variant
of the leading ledger in this company code, the document number in the
entry view always corresponds to the document number in the general
ledger view.

Note: need to define a document type for documents in the general ledger
view depends only on whether the fiscal year variant of the non-leading
ledger in the company code (to which the postings are made) differs from
the fiscal year variant of the leading ledger in this company code. On the
other hand, document type definition is independent of which the type of
ledger group to which postings are made, that is, regardless of

o Whether postings are made without a ledger group

Execute
Ledger :
Type Number Range

Save

DocumentNumberRanges

Kasiviswanath.V [email protected]

48
 SAP FICO MATERIAL

A number range must be assigned to each document type in the SAP

System. Via the document types, you distinguish the postings according
to the different business transactions, for example customer payment,
vendor credit memo, and so on. To store documents separately according to
document types, you must assign a separate number range to each document
type, for example to invoices or to credit memos.

Following activities:

➢ You define your document number ranges.

➢ You can determine which intervals of document number ranges are to be
copied from one company code into another.
➢ You can determine which intervals of document number ranges are to be
copied from one fiscal year into another.

Define Document Number Ranges for Entry View –FBN1

Create number ranges for documents. For each number range you specify
(among other things):

•A number interval from which document numbers are selected

•The type of number assignment (internal or external) you assign one or

more

Document types to each number range. The number range becomes

effective via the document type specified in document entry and posting.
You can use one number range for several document types. This means you
can differentiate documents by document type but combine them again for
filing the original documents, provided you store your original documents
under the EDP document number.

Note: The type of number assignment is of special importance. For each

document type you should check whether a separate number range must be
used and which type of number assignment is most appropriate. One
example of a case where external number assignment would be suitable is
when you transfer documents into your SAP system from a non-SAP
system. The numbers must be unique. The number range is not displayed
with external numbers. You must therefore ensure that you do not skip any
numbers when entering numbers manually (for organizational reasons).You
should use internal number assignment if the original documents do not
have a unique document number. This is the case, for example, with vendor
invoices. Number ranges for documents are company code-dependent. You
must therefore create your number ranges for each company code in which
the document type is used, namely with the same number range key. The
number intervals must not overlap. If you use year-dependent number
ranges, you can specify the same interval with the same key several times
for different to- fiscal years (the limit up to which a number range is still
Kasiviswanath.V [email protected]

49
 SAP FICO MATERIAL

valid). If you want to define number ranges which are independent of the
to-fiscal year, enter 9999 in the to- fiscal year field.

Caution: For sample documents, use a number range with key X2, for
recurring Entry documents with key X1. These keys may not be used for
other number ranges.

Recommendation: Store your original documents (paper documents) under

the EDP number of the SAP System. You should write the EDP document
number on the original document. In this way, the original document for a
business transaction can be found at any time.

Activities

1. Determine how document filing is to be carried out in your company

codes.

2. Define your number ranges accordingly.

3. Make sure that the number ranges are assigned to the corresponding
document types.

Notes on transporting: transport number range objects as follows: Choose

Interval -> Transport in the accounting document Number Range
screen. All intervals for the selected number range object are deleted in the
target system first. After the import, only the intervals you export are
present. The number statuses are imported with their values at the time
of export. Dependent tables are not transported or converted

Execute
Company Code:
Click on Change Interval Icon:
Click on Insert Interval Icon
NO Year From Number To Number Current
Number

Save
B.. Copy to Company Code
Execute
Number Ranges From:
Kasiviswanath.V [email protected]

50
 SAP FICO MATERIAL

Number range to:

Fiscal Year:
Source Company Code:
Target Company Code From:
Target Company Code To:
Execute
Back
Save
Variant Name:
Meaning:
Save
C.. Copy to Fiscal Year:
Execute

Company Code:

Number Ranges From:

Number range to:

Source Fiscal Year:

Target Fiscal Year:

Execute

Back

Save

Variant Name:

Meaning:

Save

➢ Define Document Number Ranges for General Ledger View –FBN1

Define the document number ranges for the documents in the General
Ledger view.
Kasiviswanath.V [email protected]

51
 SAP FICO MATERIAL

Caution: Number ranges for documents in the General Ledger view may
only be issued internally by the system. Do not set the External Number
Assignment indicator for any of your ranges.

Execute
Company Code:
Click on Change Interval Icon:
Click on Insert Interval Icon
NO Year From Number To Number Current
Number

Save

➢ Copy to Company Code

Execute
Number Ranges From:
Number range to:
Fiscal Year:
Source Company Code:
Target Company Code From:
Target Company Code To:
Execute
Back
Save
Variant Name:
Meaning:
Save

➢ Copy to Fiscal Year:

Execute
Company Code:
Kasiviswanath.V [email protected]

52
 SAP FICO MATERIAL

Number Ranges From:

Number range to:
Source Fiscal Year:
Target Fiscal Year:
Execute
Back
Save
Variant Name:
Meaning:
Save

Define Posting Keys

Define posting keys. Users specify a posting key before entering a line item.
The posting key controls how the line item is entered and processed.

For each posting key, you define among other things:

• which side of an account can be posted to,

• which type of account can be posted to, and

• which fields the system displays on the entry screens and whether an entry
must be made (field status).

Note: The system also uses the field status group you specify in a G/L
account to determine the status of fields in document entry. Field status
groups are defined within a field status variant.

Recommendation: Use the posting keys delivered with the standard

system.

Activities

1. Check the standard settings.

2. Modify them if necessary.

In particular, you may need to make changes to customer and vendor

posting keys if a different field status is required.

Kasiviswanath.V [email protected]

53
 SAP FICO MATERIAL

Kasiviswanath.V [email protected]

54
 SAP FICO MATERIAL

Save back

Note: All Posting Keys are Pre-Define in SAP.

Tax on Sales/Purchases

Financial Accounting New Financial Accounting Global Settings

New Tax on Sales /Purchases Posting Assign Tax Codes for Non-
Taxable Transactions.
Execute
Click on Position
Company Code:
Company Company Name City Input Tax Output
Code Tax

Save

Tolerance Groups

Financial Accounting New Financial Accounting Global Settings

New Document Tolerance Group.

Kasiviswanath.V [email protected]

55
 SAP FICO MATERIAL

A.. Define Tolerance Groups for Employees

Execute
Click on new Entries
Company Code:
Currency:
Amount Per Document:
Amount Per Open Item Account Item:
Cash Discount Per Line item:
Permitted payment Difference:
Amount Percentage Cash Discount
Adj
Revenue
Expense
Click on Next Entry icon
Group:
Company Code:
Currency:
Amount Per Document:
Amount Per Open Item Account Item:
Cash Discount Per Line item:
Permitted payment Difference:
Amount Percentage Cash Discount
Adj
Revenue
Expense
Save

Tolerance for General Ledger:

Transaction Code: OBA0

Click on New Entries (F5)
Company Code:
Description:

Kasiviswanath.V [email protected]

56
 SAP FICO MATERIAL

Tolerance for Group of G/L account in Local Currency:

Debit Posting Percentage
Credit Posting Percentage
Save
Click on Next Entry Icon
Company Code:
Tolerance Group:
Description:
Tolerance for Group of G/L account in Local Currency:
Debit Posting Percentage
Credit Posting Percentage
Save

Reset GL Accounts: Transaction Code: OBR2

Select Delete GL Accounts

GL Account From Number: To Number:
Select With General Master Data
Company Code:
Select Gl Account Detail Log
Execute (F8) – Yes – Back (F3) – Save
Variant name:
Meaning: Reset Gl Accounts
Save

To View Gl Accounts: T-code: FS03

Legacy System Migration Work Bench

Explains to Upload Mass “Master Data” into SAP System with in short
time.
Project: Total GL Accounts
Sub-Project: Account Groups
Object: Individual GL Account
Z: Functional Base User Define Application
Kasiviswanath.V [email protected]

57
 SAP FICO MATERIAL

GL: General Ledger

2901: Company Code
01: Source Structure
02: Target Structure
Transaction Code: LSMW
Click on Create Entry Icon
Project:
Description:
Enter
Sub- Project:
Description:
Enter
Object:
Description:
Enter
Execute (f8)

1.. Maintain Object Attributes

1)Choose if the data transfer is once or periodic

2)Choose method for input of data.
3)In the method to input data from a BAPI, one needs to select the Business
Object and the corresponding method.
4)If Batch input recording is selected one can enter further recordings by
clicking at the arrow
Action log: Displays a detailed overview for all processing steps already
carried out. You can reset the action log via the menu path Extras -> Reset
Action Log. This action is stored with a reference to the user and the date.
Execute (f8)
Click on Display or Change icon
Select batch input Recording
Go to on Menu Bar- Select Recording Overview – Select Recording Line
Kasiviswanath.V [email protected]

58
 SAP FICO MATERIAL

Click on Create Recording icon

Recording:
Description:
Owner: user name
Enter
Transaction Code: FS01
Note:
F : Finance
S : General Ledger
01 : Create
02 : Edit
03 : View
Note: Source GL Fields
Characte
Table r Length DESCRIPTION
SAKNR C 6 Gl account number
BUKRS C 4 Company code
TXT20 C 20 Short text
TXT50 C 50 Long text
XBILK C 1 Balance sheet
GVTYP C 1 Profit & loss
FUNC_AREA C 10 Functional area
KTOKS C 4 Account group
WAERS C 3 Currency
XSALH C 1 Only balance in local currency
MWSKZ C 1 Tax category
XMWNO C 1 Posting without tax allow
MITKZ C 1 Reconciliation account
INFKY C 1 Inflation key
XOPVW C 1 Open item management
XKRES C 1 Line item display
ZUAWA C 3 Sort key
FSTAG C 4 Field status group
XINTB C 1 Post automatically only
XGKON C 1 Relevant to cash flow
HBKID C 4 House bank

Kasiviswanath.V [email protected]

59
 SAP FICO MATERIAL

HKTID C 4 Check id

Gl Account Number: 100000

Company Code:
Short Text: Capital
Long Text: Capital
Select: balance Sheet Account
P& L Statement Account Type: Spacebar
Functional Area: Spacebar
Account Group: LIAB
Enter
Account Currency: INR
Select: Only Balances in Local Currency
Tax Category: Spacebar
Select: Posting Without Tax Allow
Recon Account for Account Type: Spacebar
Inflation Key: Spacebar
Select: Open Item management
Select: Line Item display
Sort key: 001
Field Status Group: G001
Select: Post Automatically Only
Select Relevant to Cash Flow
House Bank: Spacebar
Account Id: Spacebar
Save
Select: Light Orange Colour Line
Click on Default All Icon
Save

Kasiviswanath.V [email protected]

60
 SAP FICO MATERIAL

Back (F3) – 3 Times

Select Recording line – Click on F4 Button
Save
2.. Maintain Source Structures:
In the step ‘Maintain Source Structures’ you define the structures of the
object with name, description and the hierarchical relationships:
Click on Change button. You can now define, change, reassign or
delete structures. All these functions are available via pushbuttons.
When you define more than one structure, a popup is displayed
querying the relations between the structures: equal/subordinate?
Note: For migration objects created via transaction recording, you may only
define one structure per recording, since only one flat target structure per
recording is available.
Select Source Structure Line
Click on Display / Change Icon
Click on create Structure icon
Source Structure:
Description:
Enter – Save
3.. Maintain Source Fields
In the step ‘Maintain Source Fields’, fields are created and maintained for
the source structure defined in the preceding step
Use source fieldnames with the same names as the target fieldnames
as much as possible, because it allows you to use the ‘auto-field mapping’
function in step 5 ‘Maintain field mapping and conversion rules’.
Execute
Select Target Structure Line
Click on Display/ Change Icon
Click on Table Maintenance icon
Characte
Table r Length DESCRIPTION
SAKNR C 6 Gl account number
BUKRS C 4 Company code
Kasiviswanath.V [email protected]

61
 SAP FICO MATERIAL

TXT20 C 20 Short text

TXT50 C 50 Long text
XBILK C 1 Balance sheet
GVTYP C 1 Profit & loss
FUNC_AREA C 10 Functional area
KTOKS C 4 Account group
WAERS C 3 Currency
XSALH C 1 Only balance in local currency
MWSKZ C 1 Tax category
XMWNO C 1 Posting without tax allow
MITKZ C 1 Reconciliation account
INFKY C 1 Inflation key
XOPVW C 1 Open item management
XKRES C 1 Line item display
ZUAWA C 3 Sort key
FSTAG C 4 Field status group
XINTB C 1 Post automatically only
XGKON C 1 Relevant to cash flow
HBKID C 4 House bank
HKTID C 4 Check id
Save
4.. Maintain Structure Relations
In the step ‘Maintain Structure Relations’, the structural
relationships between source and target structures are defined. The possible
target structures are defined during the selection of the object type and the
import technique

To define structural relationships, position the cursor on the field

target structures. Clicking create Relationship button opens a window that
displays the existing source structures for selection
If you want to change the relation, remove the existing relation first.
In addition, you can use Check to check the structural relationships for
errors
Execute
Select Source Structure line
Click on Display or Change Icon
Click on Create Relation Ship icon
Information: A Source Structure Already Assign to Target Structure
Kasiviswanath.V [email protected]

62
 SAP FICO MATERIAL

Save – Back
5.. Maintain Field Mapping and Conversion Rules
In the step ‘Maintain Field Mapping and Conversion Rules’, you
assign source fields to target fields and define how the field contents will be
converted
All fields of target structure, which you selected in the previous step,
will be displayed.
For each target field the following information is displayed:
- Field description
- Assigned source fields (if any)
- Rule type (fixed value, translation etc.)
- Coding
Execute
Select SAKNR line
Click on Display / Change Icon
Click on Extras on Menu Bar
Select Auto Field Mapping
Select No Conformation
Save
6.. Specify Files
In the step ‘Assign Files’, you can assign the file name in step 7
declared as source file to the target structure defined in step 2 .
If you click on the Assign File button, after clicking once on a target
structure (in yellow), LSMW displays the list of available source files.
Execute
Select Legacy data on the PC (Frontend)
Click on Display / Change Icon
Click on Add Entry Icon
File: Select Text File
Name: LSMW
Select Tabulator
Kasiviswanath.V [email protected]

63
 SAP FICO MATERIAL

Save – Back
7.. Assign Files:
In the step ‘Assign Files’, you can assign the file name in step 7
declared as source file to the target structure defined in step 2 .
If you click on the Assign File button, after clicking once on a target
structure (in yellow), LSMW displays the list of available source files.
Execute
Select Target Structure Line
Click on Display/ Change Icon
Click on Create Assign File icon
Save
Information: A file has already been assigned to source Structure.
8.. Read Data
In the step ’Read Data’, the file specified in previous step is, as
linked to the target structures in . Even though you can select a range of
transaction numbers, the whole file is being read, only the amount of
transactions written is influenced. So for tests it is easier to read all data and
convert only a certain range, because in that step the program stops after
finishing the range.
Execute – Execute
Select Remember my Decision – Allow
Transaction’s Read:
Back
9.. Display Read Data
In the step ‘Display Read Data’, you can display the read data, choosing to
show all read data or an interval as shown above. The data are shown as the
source structures, in case more source structures are being used in one
transaction, the hierarchy of the transaction is displayed by the use of a
different colour legend. By clicking on one of the lines, you proceed to the
field level of the line, where you can check the read data as shown below.
Execute – Enter
Shows the Uploaded data
Back

Kasiviswanath.V [email protected]

64
 SAP FICO MATERIAL

10.. Convert Data

In the step ‘Convert Data’, works like the step ‘read data’, but uses the
conversion program instead of the read program. You can define a range of
transactions to be converted, at the end of this range the conversion program
stops running.
Note: It is recommended that when you load big amount of data in
production, load the first 10 records so that you can check and change when
necessary.
Execute – Execute
Files Converted
Back(F3)
11.. Display Converted Data
In the step ‘Display Converted Data’, you can display the converted
data, choosing to show all converted data or an interval as shown above.
The data are shown as the target structures, in case more target structures
are being used in one transaction, the hierarchy of the transaction is
displayed by the use of a different color legend. By clicking on one of the
lines, you proceed to the field level of the line, where you can check the
converted data as shown below.
Execute – Enter
System Shows the Uploaded File.
12.. Create Batch Input Session
Execute
Select: Keep Batch Input Folder’s
Execute
Information: one batch Input Folder with Transactions Created
13.. Run Batch Input Session
Execute
Select Source Structure line
Click on Process Icon
Select Display Errors Only
Click on Process Icon
Click on Session Overview
Kasiviswanath.V [email protected]

65
 SAP FICO MATERIAL

Status: Processed.
To View GL Accounts: FS03

House Bank

Each house bank of a company code is represented by a bank ID in the SAP

system, every account at a house bank by an account ID.

In the SAP system, you use the bank ID and the account ID to specify bank
details. These specifications are used, for example, for automatic payment
transactions to determine the bank details for payment.

Note: For domestic banks, you should enter the bank number in the "bank
key" field and for foreign banks, you should enter the SWIFT code in this
field.

Do not forget to create a G/L account for the specified bank account. The
G/L account is to be managed in the same currency as the account at the
bank.

House bank Creation:

1.. House Bank Application: T-Code: FI01

Bank Country:
Bank Key:
Enter
Bank name:
Region:
Street:
City:
Bank Branch:
Swift Code
Save

House Bank Creation: Transaction Code: FI12

Click on New Entries (F5)

Company Code:
House bank:
Kasiviswanath.V [email protected]

66
 SAP FICO MATERIAL

Bank Country:
Bank Key:
Click on Create Icon
Save
Double Click on Bank Accounts
Click on New Entries (F5)
Description Cheque Issue Cheque Deposit Charges
Company Code
House bank
Account ID
Description
Bank Account
Number
Gl Account
Currency
Next Entry Icon Next Entry icon Save
Back (F3)

Cheque Lot Creation: T-Code: FCHI

Paying Company Code:

House Bank:
Account Id:
Click on Change Icon
Click on Create Icon
Lot Number:
Cheque From Number:
Cheque To Number:
Next Lot Number:
Select Non-Sequential:
Sort information:
Kasiviswanath.V [email protected]

67
 SAP FICO MATERIAL

Purchase Date:
Save

Petty Cash Creation & Configuration:

Path: Financial Accounting (new) – bank Accounting – Business

Transactions – Cash journal
1.. Create G/L Account for Cash Journal
Required Gl Accounts: T-Code: FS01
a.. Cash Transfer From Bank
b.. Cash Transfer to Bank
c.. Cash Sales
d.. Cash Purchase
e.. Petty Cash
2.. Define Document Types for Cash Journal Documents
Execute (F8)
Click on New Entries (F5)
Document Type: CJ
Description: Cash Journal
Number Ranges: 04
Reverse Document Type: SA
Select: Customer, Vendor & General Ledger
Exchange Rate Type: M (Average Rate)
3.. Define Number Range Intervals for Cash Journal Documents

Execute (F8)
Company Code:
Click on Change Interval Icon
Click on Insert Interval Icon
No From Number To Number Current Number
04 1 1000 0
Save
Kasiviswanath.V [email protected]

68
 SAP FICO MATERIAL

4.. Set Up Cash Journal:

Execute (F8)
Click on New Entries (F5)
Compa Cash Gl Curren Deb Deb Deb Deb Deb Deb
ny Journ Accou cy it gl it Gl it Gl it Gl it Gl it Gl
Code al nt

Enter Description Petty Cash

Save
5.. Create, Change, Delete Business Transactions:
Execute (F8)
Click on New Entries (F5)
Company Code Business Event GL Account Cash Journal
Business

Save
6.. Set Up Print Parameters for Cash Journal
Execute (F8)
Click on New Entries (F5)
Company Code Cash Journal Report Variant Correspondence
Print Program

Save
Run Cash Journal: FBCJ
Cheque management:

Kasiviswanath.V [email protected]

69
 SAP FICO MATERIAL
1. Manuval cheque updation: FCH5
Enter payment document number:
Payment company code:
Fiscal year:
House bank:
Account id:
Cheque number:
Save
2. Display cheque register (FCHN)
Paying company code:
House bank:
Account id:
Execute
Observe the fields en-cash / void
3. Cheque encashment (FCH6)
Paying company code:
House bank:
Account id:
Cheque number:
Enter cheque encashment date:
Save
To check en-cashed or not go to FCHN
4. CHEQUE CANCELATION:
A. Unused cheque cancelation: FCH3
PAYING COMPANY CODE:
HOUSE BANK:
Account id:
Give cheque number:
Void reason code:
Click void
System gives a message thet those cheques are void
Go to FCHN
Give company code:
Give house bank:
Account id:
Execute

b. issued cheque cancelation: FCH9

PAYING COMPANY CODE:

HOUSE BANK:

Account id:

Give cheque nuber:

Void reason code:

Kasiviswanath.V [email protected]

70
 SAP FICO MATERIAL
Click void:

System gives a message that those cheques are void

Go to FCHN

Give company code:

House bank:

Account id:

Execute

c. Cancel payment(FCH8)

cheque number:

void reason code:

reversal reason:

select cancle payment

go to FB03

give above document number:

check the entry reversal.

Create void reason code: (FCHV)

Click on new entries

Give reason code : 12 stop payment

save

Bank Reconciliation Statement: Manual

1.. Main Bank

2.. Cheque issue (out going payment)

3.. Cheque Deposit (Incoming Payment)

Vendor Payment transaction:

Vendor Entry:

Vendor DR 30000
To Cheque Issue 30000
Recon Entry:

Cheque Issue DR 30000

To Main Bank 30000
Customer incoming payment:
Kasiviswanath.V [email protected]

71
 SAP FICO MATERIAL

Cheque Deposit DR 40000

To Customer 40000

Main Bank dr 40000

To Cheque Deposit 40000
Run Application:

1.. Create and Assign Business Transactions:ot52

2.. Define Posting Keys & Posting Rules :

Create and Assign Business Transactions

Transaction +/- text

T001 - Cheque Issue

T002 + Cheque Deposit

Save

Define Posting Keys & Posting Rules:

** Create Accounting Symbol:

T001 Main Bank

T002 Cheque Issue

T003 Cheque Deposit

Save

** Assign Account to Account Symbol

Acc Symbol account model currency gl

T001 + inr +++++++++0

(200600)

T002 + inr +++++++++1

(200601)

T003 + inr +++++++++2

(200602)

Save

** Create Keys For Posting Rules:

Posting Rule Text

T001 outgoing Payment

T002 Incoming Payment

Kasiviswanath.V [email protected]

72
 SAP FICO MATERIAL
Save

** Define Posting Rules:

POSTING RULE: T001

POSTING AREA 1

POSTING KEY:

ACCOUNT SYMBOL: Cheque Issue

POSTING KEY: 50

ACCOUNT SYMBOL: Main Bank

DOCUMENT TYPE: AB

POSTING TYPE :4

Click on Next Entry Icon:

POSTING RULE: T002

POSTING AREA 1

POSTING KEY: 40

ACCOUNT SYMBOL: Main Bank

POSTING KEY:

ACCOUNT SYMBOL: Cheque Deposit

DOCUMENT TYPE: AB

POSTING TYPE :5

Save

** Define Variant For Bank Statement: OT43

Select Standard Variant: SAP01

Click on Copy Icon

From: SAP01

To: T001

Save

Current Fields:
Transaction Value Date:

Amount:

Kasiviswanath.V [email protected]

73
 SAP FICO MATERIAL
Business Area:

Document Number:

Click on Activate Icon

** Run BRS: FF67

Eg: invoice 30000

Click on Setting - Specification - Select Variant (T001)

Bank Key:

Bank Account:

Currency:

Statement No: 012

Statement Date: 31.03.2019

Opening Balance: 0

Closing Balance: 30000-

Posting Date: 31.03.2019

Enter

Transaction Value Date Amount Doc.

Number Business Area

T001 Invoice Occur Date 30000- Enter Doc.

Number Enter Business Area

Enter

Save - Save

Error Identification:
T-code: FEBAN

BANK RECONCILIATION STATEMENT

Define Posting Keys And Posting Rules For Manual Bank Statements:

Kasiviswanath.V [email protected]

74
 SAP FICO MATERIAL

Click on

Click on

DOUBLE CLICK ON

Click on

DOUBLE CLICK ON

Click on

Kasiviswanath.V [email protected]

75
 SAP FICO MATERIAL

DOUBLE CLICK ON

Click on

*Main Bank a/c dr.

to Cheque Deposit a/c

Click on

*Cheque Issue a/c dr.

To Main Bank a/c

Kasiviswanath.V [email protected]

76
 SAP FICO MATERIAL

Click on

*Bank Charges a/c dr.

To Main Bank a/c

Click on

Kasiviswanath.V [email protected]

77
 SAP FICO MATERIAL

Click on

Click on

Create and Assign Business Transactions

Click on

Click on

Kasiviswanath.V [email protected]

78
 SAP FICO MATERIAL

Click on

Define Variants for Manual Bank Statement

Execute

Click on create icon

ENTER

Click on

Kasiviswanath.V [email protected]

79
 SAP FICO MATERIAL

FOREIGN CURRENCY VALUATION

Maintain Parallel Currencies- OB09

Execute

Chart of Account:

Click on New Entries

Chart of Account
Gl Account Number
Currency
Exchaneg Rate Loss
Exchange Rate Gain

Click on Next Entry Icon

Chart of Account
Gl Account Number
Currency
Exchaneg Rate Loss
Exchange Rate Gain

Save

OTHER METHOD : Define Valuation Methods

Valuation methods for the open items. With the valuation method, you
group specifications together which you need for the balance and individual
valuation.

Kasiviswanath.V [email protected]

80
 SAP FICO MATERIAL

Execute

Click on New Entries

Valuation Method
Description
Always Evaluate Select
Balance Valuate Select
Document Type SA
Exchange Rate for Debit balance M
Exchange Rate for Credit balance M
Determine Exchange Rate Type Select
From Invoice Reference

Save

Define Valuation Areas

Valuation areas for your closing operations. With the valuation areas, you
can report different valuation approaches and post to different accounts.
You can save the valuation result separately for each document item and
use it for other closing operations.

Execute

Valuation Valuation Method Currency Type

Company Code
Currency

Save

Check Assignment of Accounting Principle to Ledger Group

Assign the desired ledger group to your accounting principles.

Execute

Kasiviswanath.V [email protected]

81
 SAP FICO MATERIAL

Click on New Entries

Accounting Target Ledger Group

GAAP

Save

Assign Valuation Areas and Accounting Principles

Assign the desired accounting principles to your valuation areas. You can
use the valuation area for the reclassification or sorted list of payables and
receivables and for foreign currency valuation. You can use the valuation
area to apply in these reports the different valuation requirements of the
accounting principles.

Click on New Entries

Valuation Area Accounting Principle
GAAP

Save

CREATE G/L ACCOUNTS FOR FOREIGN CURRENCY

VALUATION:

Prepare Automatic Postings for Foreign Currency Valuation

Define the numbers of the accounts to which you want the system to
automatically post exchange rate differences when valuating open items and
foreign currency balances.

Define the accounts for realized exchange rate differences during open item
clearing. For more information on this, see the Define Accounts for
Exchange Rate Differences activity.

Use the currency type to control account determination during open item
valuation and exchange rate difference posting. You could, for example,

Kasiviswanath.V [email protected]

82
 SAP FICO MATERIAL

post gains in local currency and gains in group currency to separate

accounts.

When valuating open items the system posts to a balance sheet adjustment
account and to an account for exchange rate differences that occur during
the valuation. Exchange rate differences could be either a gain or a loss.
You store the account numbers accordingly.

The valuation of foreign currency balances requires a special key that is

assigned the gain and loss accounts for posting any exchange rate
differences that occur during valuation. You can freely define this key. You
then enter it in the master records of the accounts that you want to valuate.
To post the differences that are determined from a group of G/L accounts to
the same gain or loss accounts, enter the same key for all these G/L
accounts.

Execute

Click on New Entries.

Chart of Account
GL Account
Currency
Loss
Gain
Valuation Loss
Valuation Gain
Balance Sheet
Adjustment
Click on Next Entry Save
Icon
MAINTAIN TRANSLATION RATES (S_BCE_68000174)
Click on New Entries
Exchange Valid From From Direct To
Rate Quotation

Save
Testing: POSTING : F-02/ FB50.

FOREIGN CURRENCY VALUATION (FAGL_FC_VAL)

Kasiviswanath.V [email protected]

83
 SAP FICO MATERIAL

VALIDATIONS: - OB28

Click on

DOUBLE CLICK ON “ZGL”

CLICK ON “YES”

CLICK ON

DOUBLE CLICK ON “PREREQUISITE”

DOUBLE CLICK ON “Accounting Document Segment”
AND SELECT COMPANY CODE ON “Accounting Document Segment”

Kasiviswanath.V [email protected]

84
 SAP FICO MATERIAL

CLICK ON “ ” ICON

CLICK ON

CLICK ON CONTINUE ICON

DOUBLE CLICK ON

Kasiviswanath.V [email protected]

85
 SAP FICO MATERIAL

DOUBLE CLICK ON “ ACCOUNT DOCUMENT HEADER”

SELECT “DOCUMENT TYPE” AND DOUBLE CLICK ON “
DOCUMENT TYPE”

CLICK ON

CLICK ON

DOCUMENT TYPE “SA”

CLICK ON CONTINUE BUTTON
IT SHOWS LIKE THE BELOW IMAGE

CLICK OK

Kasiviswanath.V [email protected]

86
 SAP FICO MATERIAL

ENTER MESSAGE ”VALIDATION FOR GL”

Click on

Click on 5 TIMES

COME TO INITIAL PAGE AND ENTER

ACTIVATION LEVEL “ 1”

Click on

Example:

In the “prerequisites” sub node enter the below condition: (This validation
rule should trigger only for transaction
FB01,FB60,FB65,FB02,MIRO,FV60,FV65,FVB0,FBM2,FBV0,FBV2,F-
01,F-44,and only for vendor line items(KOART= ‘K’)

(BKPF-TCODE = 'FB01' OR BKPF-TCODE = 'FB60' OR

BKPF-TCODE = 'FB65' OR BKPF-TCODE = ‘MIRO’ OR

Kasiviswanath.V [email protected]

87
 SAP FICO MATERIAL

BKPF-TCODE = 'FB02' OR BKPF-TCODE = 'FBM2' OR

BKPF-TCODE = 'FBV0' OR BKPF-TCODE = 'FBV2' OR

BKPF-TCODE = 'FV60' OR BKPF-TCODE = 'FV65' OR

BKPF-TCODE = 'F-01' OR BKPF-TCODE = 'F-44’) AND

(BSEG-KOART = ‘K’)

SUBSTITUTION: - OBBH

Click on

COMPNY CODE = ABCD

CLL PNT = 2
SUBSTITUTION = ZGL
DOUBLE CLICK ON “ZGL”

CLICK ON

CLICK ON

Kasiviswanath.V [email protected]

88
 SAP FICO MATERIAL

SELECT

DOUBLE CLICK ON
CLICK ON “ACCOUNT DOCUMENT HEADER”

SELECT “COMPANY CODE”

DOUBLE CLICK ON “COMPANY CODE”

CLICK ON

CLICK ON

ENTER COMPANY CODE: “ABCD”

Kasiviswanath.V [email protected]

89
 SAP FICO MATERIAL

CLICK ON
DOUBLE CLICK ON “Accounting Document Header”
AND SELECT USER NAME

CLICK ON

CLICK ON

CLICK ON CONTINUE

SELECT

ENTER “SUBSTITUTION FOR GL”

Click on

Click on 5 TIMES

ACTIVTN LEVEL “1”

Kasiviswanath.V [email protected]

90
 SAP FICO MATERIAL

Click on
Accounts Receivable and Accounts Payable

Make the settings for Accounts Receivable and Accounts Payable.

Additional Information: To fully understand this Implementation Guide,

you should be familiar with using the SAP system. For more information,
read the document Getting Started with the R/3 System.

Before making any settings in the system, you should be familiar with the
business-related functions and concepts of the Financial Accounting (FI)
application component

Define Account Groups with Screen Layout (Customers)

Determine the account groups for customers. You can also define reference
account groups for one-time accounts. You can use these to control
the fields of the one-time account screen so that, for example, certain fields
are displayed as required fields or are hidden. When creating a customer
account, you must specify an account group. You can specify a reference
account group under "Control" in the "General data" part of a one-time
account's master data. If you do not specify a reference account group, then,
as previously, all fields of the one-time account screen are ready for input
during document entry. You use the account group to determine:

➢ The interval for the account numbers

➢ Whether the number is assigned internally by the system or externally by
the user (type of number assignment)
➢ Whether it is a one-time account
➢ Which fields are ready for input or must be filled when creating and
changing master records (field status) Example: You want to hide the
address, communication and bank data fields for the one-time accounts.
You determine the field status in the general data area for these fields since
the fields are contained in this area. The reconciliation account field is
defined as a required field since a reconciliation account must also be
specified for the one-time accounts. This field is company code-dependent.
You define the status of this field in the company code-dependent data area.
With the account groups, you group accounts together according to the
criteria mentioned above, for example, one-time accounts. You determine
the account number interval and the type of number assignment using the
number ranges.

Note on changing the account group: You may only delete an account
group from the system if there are no master records referencing this
account group. Otherwise you can no longer display or change the master
record.

Kasiviswanath.V [email protected]

91
 SAP FICO MATERIAL

•Changing the field status definition If you hide a field at a later stage in
which you had already made an entry, the field contents are still valid.

•Changing number ranges You can increase the upper limit of the number
interval as long as there is no other interval containing the required
numbers. You can allocate a new number range to the account group. The
numbers of the new master records must then be contained in the new area.

Recommendation: Do not use the account groups to group the customer

accounts according to content. Therefore do not attempt to allocate the
accounts to accounting clerks via the account groups or to group customers
together according to countries. You can do this via special master record
fields.

Activities: Check and change the standard account groups if necessary.2.

Make sure that the number ranges specified for the account groups have
been created

Execute

Click on New Entries

Account Group
Name
One Time Account

Save

Define Screen Layout per Company Code (Customers)

Depending on the company code, which company code-dependent master

record fields

• Are ready for input

• Require an entry

• Are hidden.

This specification is linked to the field status of the account group and a
specification for the transaction. By means of the link, you can see which
status the fields have on the entry screen for master data. In this case, the
fields take on the status which has the highest priority. Hiding a field has
the highest priority, followed by a display field, a required field and then an
optional field:

Execute

Kasiviswanath.V [email protected]

92
 SAP FICO MATERIAL

Click on New Entries

Company Code Company Name

Save

Create Number Ranges for Customer Accounts

Create the number ranges for the customer accounts. To do this, specify the
following under a two-character key:

• A number interval from which the account number for the customer
accounts is to be selected

•The type of number assignment (internal or external number

assignment) Allocate the number ranges to the account groups for
customers.

Note: The type of number assignment is especially important. The

following are possible:

➢ Transferring the numbers of your customers/vendors from an existing

system or a pre-system(external assignment: you enter a number
when creating a master record).
➢ Creating the master records under new numbers assigned by the SAP
system (internal assignment: the system assigns a number when creating the
master records).External number assignment, for example, is useful if
you transfer master data from a pre-system. In all other cases, you should
use the internal number assignment. The SAP system offers a number
of help un-actions to determine an account number. Therefore the account
numbers no longer have to be "mnemonic". The help functions include the
match code or the Prev.acct no.field in the customer/vendor master record.

Execute

Click on Change Interval Icon

Click on

NO From To Number Current EXT

Number Number

Save

Assign Number Ranges to Customer Account Groups

Kasiviswanath.V [email protected]

93
 SAP FICO MATERIAL

Assign the number ranges you created in the preceding step to the account
groups for customers. You can use one number range for several account
groups.

Execute

Click on

Account Group:

Group Name Number Range

Save

Various Objects

Define Discount

Define whether the cash discount that is applied in the payment of a asset-
relevant invoice should be capitalized to the asset. When you select this
setting, the cash discount amount is not posted to the cash discount account
in the payment document, but instead directly to the asset.

Example: Invoice-

Suppose a vendor invoice contains the following items:

Posting Key Account Amount

31 Payable -100
70 Asset 20012 90
40 Expense 10

Kasiviswanath.V [email protected]

94
 SAP FICO MATERIAL

Payment -The payment for the above vendor invoice then contains the
following items:

Posting Key Account Amount

50 Bank -95
25 Payable 100
75 Asset 20012 -4.50
50 Cash Discount Received -0.50

➢ DISCOUNT ALLOWED - OBXI

Execute

Chart of Account:

Tax Code Account

Save

➢ DISCOUNT RECEIVE - OBXU

Execute

Chart of Account:

Tax Code Account

Save

➢ Discount Base Bank Charges (OBXK)

Double Click On Bank Charges (SBP)

Kasiviswanath.V [email protected]

95
 SAP FICO MATERIAL

Enter Gl Account: (Bank Charges GL Account

Save

Maintain Terms and Instalments

Define rules with which the system can determine the required terms of
payment automatically. The rules are stored under a four-character key.
You assign the terms of payment specified to the customers in the master
record via the key. The key and the terms determined with it are proposed
when entering a document to the customer account.

Note: You can specify a key in the master data area for Financial
Accounting and Sales + Distribution. You should use the same key.

You can use the same key for the terms of payment for both customers and
vendors who have the same payment terms. SAP recommends, however,
that you use different terms of payment keys for customers and vendors and
limit the permitted account type correspondingly within the terms of
payment. This, for example, then has an advantage if the sales department
of your company changes a payment term for a customer. You can then
adapt the accompanying customer terms of payment key without vendors
being affected by the same terms of payment.

Standard settings: The most usual terms of payment have already been set
in the standard system. These include specifications on the payment
conditions, the day limit or the payment period baseline date, for example.

1. Discount Base Method: OBB8

New Entries

Pay Term
Sales Text
Customer
Document Date
Term Percentage NO.Of Days
1
2
3

Kasiviswanath.V [email protected]

96
 SAP FICO MATERIAL

Save

2. Fixed day Base:

New Entries

Pay Term
Sales Text
Customer
Vendor
Entry Date
Installment Payment

Click on Next Entry Icon

Pay term
Sales Text
Customer
Vendor
Fixed Day
Additional Month
Entry Date
Next Entry Icon Next entry Icon Save

3. Day Limit Method: OBB8

New Entries

Pay Term
Sales Text
Day Limit
Customer
Vendor
Entry Date

Save

Down Payment Received - OBXR

Kasiviswanath.V [email protected]

97
 SAP FICO MATERIAL

Double Click on D – A
Chart of Accounts:
Enter
Chart of Account
Account Type D
Special Gl Indicator A
Recon Account Special Gl Account

Save

Double Click on D - F
Chart of Account
Account Type D
Special Gl Indicator A
Recon Account Special Gl Account

Save
Kasiviswanath.V [email protected]

98
 SAP FICO MATERIAL

TESTING:

Down payment Receive:

Request : F-37

NUMBER RANGE -14

CLICK ON

Kasiviswanath.V [email protected]

99
 SAP FICO MATERIAL

GOTO DOCUMENT – Click on

DOWNPAYMENT – F-29

CLICK ON DISPLAY OVER VIEW

Kasiviswanath.V [email protected]

100
 SAP FICO MATERIAL

CLICK ON DISPLAY OVER VIEW

Click on

DOWNPAYMENT CLEARING - F-39

Kasiviswanath.V [email protected]

101
 SAP FICO MATERIAL

CLICK ON DISPLAY OVER VIEW

DOCUMENT - Click on

RESERVES FOR BAD DEBTS – OB04

Execute

Kasiviswanath.V [email protected]

102
 SAP FICO MATERIAL

Click on New Entries

Prov Per M Perc1 M Perc2 M Perc3 M Perc4

Save

DEFINE ACCOUNTS FOR RESERVE FOR BADDEBTS - OBXD

Execute

Chart of Account:

Enter
Chart of Account
Transaction
Provision Debit Credit

Save

MAINTAIN ACCOUNTS - FBKP

Execute

Double click on SPECIAL G/L

Kasiviswanath.V [email protected]

103
 SAP FICO MATERIAL

Double click on D – E
Chart of Accounts:
Enter
Chart of Account
Account Type
Special Gl Indicator
Recon Account Special Gl Account Planning Level

Save

Dunning

Specifications required for the dunning program. You can use the dunning
program to dun both customers and vendors

Define Dunning Areas

Dunning areas are used if several organizational units are responsible for
carrying out dunning within one company code. These organizational units
are referred to as dunning areas. The dunning area can correspond, for

Kasiviswanath.V [email protected]

104
 SAP FICO MATERIAL

example, to a profit center, a distribution channel, a sales organization or a

business area.

The individual dunning areas can use different procedures or the same
dunning procedure.

• The dunning areas with the required dunning procedures are to be entered
into the customer or vendor master record if you use different dunning
procedures.

• Otherwise, the system uses the standard dunning procedure. The dunning
area is then entered in the line item. The system enters the dunning area into
the master record automatically with the corresponding data.

Click on New Entries

Company Code Area Text

Save

Define Dunning Keys

Define your dunning keys in this step. With the dunning keys, you can limit
the dunning level of an item. Define either instead of or in addition to the
dunning key whether the items with a dunning key are to be displayed
separately in the dunning letter.

Click on

Dunning Key Print Sep Text

Save

Define Dunning Block Reasons

Define the reasons for a dunning block under a key. The key can be entered
in an item or in the account of a business partner. Blocked items or accounts
are not considered for the dunning run.

Kasiviswanath.V [email protected]

105
 SAP FICO MATERIAL

Click on

Click on

Lock Text

Save

Dunning Procedure

In this section, you make the settings for the dunning procedure.

Define Dunning Procedures

In this activity you enter the settings that control the dunning program by:

• Specifying the company codes to include in dunning.

You specify these company codes when configuring the dunning program.

• Setting up the dunning procedure you want to use.

Kasiviswanath.V [email protected]

106
 SAP FICO MATERIAL

Dunning procedures are company code independent. They determine the

dunning interval, the grace periods for the due date determination, and the
number of dunning levels. You can also set the dunning level at which you
want to list all due items from an account in the dunning notice.

• Setting the dunning charges.

You can either specify a fixed charge or have the system calculate the
charge on the basis of a percentage rate you specify.

• Specifying the net payment due date at which a particular dunning level is
reached.

• Specifying the dunning notice you want to send to your customers.

You have to define one or more forms for the notice.

Execute

Click on New Procedure

Dunning Procedure
Name
Dunning Interval in Days
No of Dunning Levels
Total Due Item for Dunning Levels
Minimum days in arrears
Line item grace period
Interest indicator
Standard transaction Dunning
Reference Dunning Procedure

Save

Click on
Dunning Procedure
Name
Dunning Levels
Days in Arrears
Calculate interest
Always Dunn
Print All Items
Payment Dead Line
Legal Dunning
Procedure
Click on
Kasiviswanath.V [email protected]

107
 SAP FICO MATERIAL

Currency :
Dunning From Dunning Currency Dunning
Level Dunning Charge Currency %
Amount

Click on
Currency:
Enter
Dunning Minimum Minimum Currency
Amount Percentage

Click on
Company Code:
Select Customer
Dunning Dunning Form Form ID

Click on

Vendors (ACCOUNTS PAYABLE)

Define Account Groups with Screen Layout (Vendors)

Determine the account groups for vendors. You can also define reference
account groups for one-time accounts. These enable you to control the
fields in the one-time account screen. You can, for example, make certain
fields required fields and suppress others. When creating a vendor account,
an account group must be specified. You can enter a reference account
Kasiviswanath.V [email protected]

108
 SAP FICO MATERIAL

group in the "General data" section of the one-time account master record
under "Control data". If you don’t specify a reference account group,
all fields in the one-time account screen for document entry are ready for
input (as before).Via the account group you determine

➢ The interval for the account numbers

➢ Whether the number is assigned internally by the system or externally by
the user (type of number assignment)
➢ Whether it is a one-time account
➢ Which fields are ready for input or must be filled when creating and
changing master records (field status) Example: In the one-time accounts you
want to suppress the address, communication and bank detail fields. These
fields are part of the general data and so you set the field status in the
general data section. Define the reconciliation account as a required field
since this is a required entry for one-time accounts as well. The field
is company code-dependent so you define the status for this field in the
company data section. With the account groups, you group accounts
together according to the criteria mentioned above, for example, one-time
accounts. You determine the account number interval and the type of
number assignment by using number ranges.

Execute

Click on

Group Name

Click on

Define Screen Layout per Company Code (Vendors)

In this step you determine, depending on the company code, which

company code-dependent master record fields

• Are ready for input

• Require an entry

• Are hidden.

This specification is linked to the field status of the account group and a
specification for the transaction. By means of the link, you can see which
status the fields have on the entry screen for master data. In this case, the
fields take on the status which has the highest priority. Hiding a field has
the highest priority, followed by a display field, a required field and then an
optional field:
Kasiviswanath.V [email protected]

109
 SAP FICO MATERIAL

Execute

Click on

Company Code Name

Click on

Create Number Ranges for Vendor Accounts

• In this activity you create the number ranges for vendor accounts. To
do this, specify the following under a two-character key:
• A number interval from which the account number for the vendor accounts
is to be selected
• The type of number assignment (internal or external number
assignment) Assign the number ranges to the account groups for vendors.

Note: Type of number assignment is especially important. The following is

possible:

• Transferring the numbers of your vendors from an existing system or a pre-

system (external assignment)
• Creating the master records under new numbers assigned by the SAP
System (internal assignment) External number assignment is useful, for
example, if you transfer master data from a pre-system. In al other cases,
you should use the internal number assignment. The SAP System offers a
number of help functions to determine an account number. Therefore the
account numbers no longer have to be "mnemonic". This includes, among
other things, the match code or the field
• Previous account no. in the vendor master record.

Activities

1. Find out which number ranges are needed.

2. Create these number ranges.

Notes on transport: Transport number range objects as follows: Choose

Interval -> Transport in the accounting document Number Range
screen. All intervals for the selected number range object are deleted in the
target system first. After the import, only the intervals you export are
present. The number statuses are imported with their values at the time
of export. Dependent tables are not transported or converted.
Kasiviswanath.V [email protected]

110
 SAP FICO MATERIAL

Execute

Click on

Click on

NO From To Number Current Ext

Number Number

Click on

Assign Number Ranges to Vendor Account Groups

Allocate the number ranges you created in the preceding step to the account
groups for vendors. You can use one number range for several account
groups.

Execute

Click on

Account Group:

Group Name Number Range

Click on

Installment Payments (OBB8)

Vendor Fixed Day Method:

Determine whether an invoice amount is to be divided into partial amounts

with different due dates. For these terms of holdback/retainage payment,
you must determine the amount of the holdback/retainage in percent and the
terms of payment for each holdback/retainage payment. If you then post an
invoice with terms of holdback/retainage payment, the system generates the
corresponding number of line items due to your specifications for the
holdback/retainage.

Requirements:
Kasiviswanath.V [email protected]

111
 SAP FICO MATERIAL

You make your specifications under a particular terms of payment key. You
have already defined this previously in the step "Maintain terms of
payment" as well as set the "Holdback/retainage payment" indicator under
the payment conditions.

Transaction Code: 0BB8

Click on

Click on

Kasiviswanath.V [email protected]

112
 SAP FICO MATERIAL

Click on

Click on

Kasiviswanath.V [email protected]

113
 SAP FICO MATERIAL

Click on

Click on

Define Terms of Payment for Installment Payments (OBB9)

Financial Accounting ® Accounts Receivable and Accounts Payable
®Business Transactions ® Incoming invoices/Credit Memos ® Define
Terms of Payment for Installment payments

Click on

Click on

Click on

Amount split (OBY6)

If you have fixed Installments, you can use the Installment payment terms.
However,

Kasiviswanath.V [email protected]

114
 SAP FICO MATERIAL

if you need to change the amounts, this is not a good solution. Any change
in
Installment payment terms or invoice plans requires additional customizing.
There is a
way to use flexible amounts in the Installments. Enable Amount Split in
the
company code customizing.

DOWNPAYMENT ALLOWED/ MADE - OBYR

Double click on K - A

Kasiviswanath.V [email protected]

115
 SAP FICO MATERIAL

Click on Continue

Click on

Click on

Double click on K - F

Click on
Kasiviswanath.V [email protected]

116
 SAP FICO MATERIAL

Click on

DOWNPAYMENT PAID/ MADE

REQUEST: - F-47

CLICK ON

Kasiviswanath.V [email protected]

117
 SAP FICO MATERIAL

Click on

DOWNPAYMENT - F-48

CLICK ON

Kasiviswanath.V [email protected]

118
 SAP FICO MATERIAL

GOTO DOCUMENT – SIMULATE AND Click on

CLEARING VENDOR DOWNPAYMENT - F-54

CLICK ON

GOTO DOCUMENT – SIMULATE

Kasiviswanath.V [email protected]

119
 SAP FICO MATERIAL

Click on

Automatic payment Program (T-Code: FBZP)

All Company Codes
Paying Company Codes
Payment Method in Country
Payment Method in Company Code
House Bank
Bank Determination
Edit Vendor

All Company Code:

Click on New Entries (F5)

Company Code:

Sending Company Code:

Paying Company Code:

Select Separate payment per Business Area

Select payment method Supplement

Special GL Transaction to be Paid: FP

Save

Paying Company Codes:

Paying Company Code:

Select Separate Payment for Each Reference

Click on Forms Tab:

Kasiviswanath.V [email protected]

120
 SAP FICO MATERIAL
Payment Advice: F110_D_AVIS

Save

Payment Method in Country:

Country IN IN
Payment Method C T
Description Cheque Method Bank Transfer Method
Payment Method For Outgoing Payment Outgoing Payment
Payment Method Check Bank Transfer
Classification
Document Type for ZP Zp
Payment
Clearing Document Type ZV ZV
Payment Medium RFFOUS_C RFFOM100
Program
Name of Print Data Set List1S List3S
Save

Payment Method in Company Code:

Paying Company Code
Payment Method C T
Single Payment for Marked
item
Payment for Due Date
Foreign Business Partner
Allowed
Foreign Currency Allowed
Customer/ Vendor Bank
Abroad Allowed
Payment Medium F110_PRENUM_CHCK F110_D_SCHECK
Drawer Details: Company name
Address
City
Save

House Bank:
Already Create House bank in T-Code: FI12

Bank Determination:
❖ Ranking Order
❖ Bank Accounts
❖ Available Amounts
❖ Value Date
❖ Expenses / Charges

Ranking Order:
Kasiviswanath.V [email protected]

121
 SAP FICO MATERIAL
Select Company Code:

Double Click on Ranking Order

Payment Currency Rank. Order House Bank

Method

Save

Bank Accounts:
House Bank Payment Currency Account ID Bank Sub
Method Account

Save

Available Amounts:
House Account Days Currency Outgoing Incoming
Bank id Payments payments

ave

Value Date:
Payment House Account Amount Limit Currency Days
Method bank ID

Save

Expenses / Charges:
Charge Indicator Amount Limit Currency Charges

Save

Edit vendor: (T-Code: FK02)

AUTOMATIC PAYMENT PROGRAM - FBZP

Kasiviswanath.V [email protected]

122
 SAP FICO MATERIAL

Click on

Click on

Kasiviswanath.V [email protected]

123
 SAP FICO MATERIAL

Click on

Click on

Click on

Click on

Kasiviswanath.V [email protected]

124
 SAP FICO MATERIAL

Click on

Click on

Click on

Click on

Click on Continue

Click on

Kasiviswanath.V [email protected]

125
 SAP FICO MATERIAL

Click on

Click on

Click on

Kasiviswanath.V [email protected]

126
 SAP FICO MATERIAL

Click on

Click on

Click on

Click on

Click on Continue

Kasiviswanath.V [email protected]

127
 SAP FICO MATERIAL

Double click on RANKING ORDER

Click on

Click on

Double click on BANK ACCOUNTS

Click on

Kasiviswanath.V [email protected]

128
 SAP FICO MATERIAL

Click on

Double click on EXPENSES/CHARGES

Click on

Click on

Click on

Tax on Sales & Purchases

Tax Type’s

Tax - configuration :
Edit customer - FD02

Kasiviswanath.V [email protected]

129
 SAP FICO MATERIAL

Click on

Click on

Click on

Click on
Edit Vendor - FK02

Click on

Kasiviswanath.V [email protected]

130
 SAP FICO MATERIAL

Enter

Click on
Various Postings
Customer posting - F-22

Click on

Kasiviswanath.V [email protected]

131
 SAP FICO MATERIAL

Enter

Enter

Kasiviswanath.V [email protected]

132
 SAP FICO MATERIAL

Click on Document and Simulate

Click on Document and Post.

Customer Document Display - FB03

Kasiviswanath.V [email protected]

133
 SAP FICO MATERIAL

Click on

Click on

Click on
Vendor Posting - F-43

Kasiviswanath.V [email protected]

134
 SAP FICO MATERIAL

Click on

Enter

Enter

Kasiviswanath.V [email protected]

135
 SAP FICO MATERIAL

Click on Document and Simulate

Click on Document and Post.

Vendor Document Display - FB03

Kasiviswanath.V [email protected]

136
 SAP FICO MATERIAL

Click on

Click on

Click on

Asset Accounting

Kasiviswanath.V [email protected]

137
 SAP FICO MATERIAL

This part of the Implementation Guide contains all the implementation steps
for the Asset Accounting (FI-AA) component.

The first section, "FI-AA Implementation Guide - Lean Implementation,"

contains the minimum steps required for a quicker, more streamlined
implementation of Asset Accounting. (See the FI-AA Implementation
Guide - Lean Implementation).

Note

• You can get more information about the concepts of SAP Asset Accounting
in "FI-AA Asset Accounting" in the SAP library. In the individual steps of
the Implementation Guide, you find references to this documentation under
the heading "Additional Hints."

Organizational Structures

In this section, you define the features of the FI-AA organizational objects
(chart of depreciation, FI company code, asset class). All assets in the
system have to be assigned to these organizational objects that you define.
In this way,

• you can represent your organizational structures that are relevant to Asset
Accounting in the system

• you can classify your assets according to asset accounting criteria.

At the same time, you can also assign assets to other organizational units in
other components (such as cost centers, plants, and so on). You define these
organizational units in Customizing for the component they belong to (such
as cost center accounting).

Check Country-Specific Settings

Some of the system settings in the FI-AA system are subject to different
laws and guidelines in different countries. SAP provides these settings, for
the most part, already preconfigured. However, SAP cannot take
responsibility for their completeness.
Kasiviswanath.V [email protected]

138
 SAP FICO MATERIAL

The system uses the country-specific data in each company code that agrees
with the country in the definition of the FI company code (FI Customizing).

Example

The maximum amount for low value assets is different in each country.

Requirements

You must have defined your company codes in Customizing for the FI
system, and assigned countries to them.

Click on

Click on

Click on Continue

Click on

Click on

Copy Reference Chart of Depreciation/Depreciation Areas

In this step, you define your

charts of depreciation. The chart of depreciation is a list of depreciation
areas arranged according to business and legal requirements. The chart of
depreciation enables you to manage all rules for the valuation of assets in a
particular country or economic region.

You must assign a chart of depreciation to each company code that is

defined in Asset Accounting. SAP provides country-specific charts of
depreciation with predefined depreciation areas. These charts of
Kasiviswanath.V [email protected]

139
 SAP FICO MATERIAL

depreciation serve only as a reference for creating your own charts of

depreciation, and are therefore not directly accessible in the SAP system.
When creating a chart of depreciation, you have to copy the reference chart
of depreciation.

Note

When you create a chart of depreciation, the system copies all of the
depreciation areas in the reference chart of depreciation. You have to delete
any depreciation areas that you do not need in your chart of depreciation.

Depreciation areas that are not used can still be activated at a later point in
time (after the production startup). A newly activated depreciation area can
take over values from another depreciation area. (see the SAP library FI-
AA: Calculation of Asset Values (General) -> Subsequent
Creation/Deletion of a Depreciation Area)

Click on

Select

Click on

Kasiviswanath.V [email protected]

140
 SAP FICO MATERIAL

Click on copy icon

Click on Continue

Click on

Kasiviswanath.V [email protected]

141
 SAP FICO MATERIAL

Click on Continue

Click on Continue

Click on

Kasiviswanath.V [email protected]

142
 SAP FICO MATERIAL

Click on Continue

Click on

Click on Continue

Kasiviswanath.V [email protected]

143
 SAP FICO MATERIAL

Click on

Click on

Click on

Select

Click on

Click on

Kasiviswanath.V [email protected]

144
 SAP FICO MATERIAL

Click on Continue

Click on

Click on

Click on

Click on

Click on Continue

Kasiviswanath.V [email protected]

145
 SAP FICO MATERIAL

Click on

Click on Continue

Click on Continue

Click on

Assign Chart of Depreciation to Company Code

In Asset Accounting, you can only use company codes that have already
been defined in Financial Accounting as being generally valid. In addition
to the general FI data for a company code, you have to make additional
specifications that apply for Asset Accounting. One of the most important
of these specifications is the assignment of a chart of depreciation to the
company code.

In this step, you assign a chart of depreciation to each company code.

Kasiviswanath.V [email protected]

146
 SAP FICO MATERIAL

Requirements

• You have to have defined the generally valid data of the company code in
Financial Accounting.

Click on

Click on

Click on Continue

Assign

Click on

Click on

Specify Number Assignment Across Company Codes

In the FI-AA module, you can assign the main asset number across
company codes. Therefore, for every company code, you can determine
from which (other) company code number assignment is to be carried out.
In this step, you define a cross-company code assignment of the main asset
number. If you do not want a cross-company code number assignment, you
do not need to define any system settings here.

Requirements

You must have edited the system-specific specifications of the company

codes.

Click on

Kasiviswanath.V [email protected]

147
 SAP FICO MATERIAL

Click on

Click on Continue

Assign

Click on

Click on

Asset Classes

In the following step, you define your asset classes and the control
parameters for asset clases. The most important control parameters are:

• the account determination

• the screen layout rule

• the number interval that the system should use for assigning asset main
numbers in the asset class

Click on

Generate Asset Classes from G/L Accounts (1 to 1)

In this step you generate:

Kasiviswanath.V [email protected]

148
 SAP FICO MATERIAL

• Asset classes

• Account determinations

• Screen layout rules

• Number ranges for the assignment of the main asset number

These objects are generated in a 1 to 1 relationship to your asset balance

sheet accounts. The system enters account determinations, screen layout
rules and number ranges in the asset class as control parameters.

Note: Carrying out this step is not mandatory. Generating your asset classes
from your G/L accounts is an optional step you can use to simplify the
creation of asset classes. If you want to define asset classes without the help
of your G/L accounts, use the step Define asset classes. You also use the
"Define asset classes" step to copy asset classes. Copying classes is useful
for adding to your asset classes, if you generated asset classes from your
G/L accounts using the current step.

You define additional account determinations, screen layout controls and

number ranges (if needed) in the section Organizational Structures.

Specify Account Determination

In this step, you define the account determinations for Asset Accounting
(key and description). The key of an account determination must be stored
in the asset class asset class. In this way, the account determination links an
asset master record to the general ledger accounts to be posted for an
accounting transaction using the asset class.

You specify the general ledger accounts to be posted for the individual
accounting transactions in later implementation activities . You can specify
various accounts for each depreciation area to be simultaneously posted to.

Click on

Click on

Kasiviswanath.V [email protected]

149
 SAP FICO MATERIAL

Click on

Click on

Create Screen Layout Rules

In this step, you create your screen layout rules. The screen layout specifies
the status of the fields in the asset master record. You use the screen layout
to determine if fields are required entry or optional entry fields, or if they
are suppressed completely, for example.

In this step, you create only the keys and descriptions of the screen layout
controls. You define the the field group rules for the screen layouts
themselves in the step Master Data.

You can enter a screen layout rule in one of two places: either in the part of
the asset class valid in the entire client, or in the part of the asset class valid
for the chart of depreciation. The screen layout rule is then valid either for
all assets in the asset class, or for all assets in the asset class/chart of
depreciation.

Note

You creat the screen layouts here for the general master data (only the key
and description). There is a separate screen layout control for the
depreciation areas and the valuation section of the asset master record. You
define this second screen layout control in the step Define screen layout
control for asset depreciation areas.

Click on

Click on

Click on

Click on

Kasiviswanath.V [email protected]

150
 SAP FICO MATERIAL

Define Number Range Interval

In this step, you define the number ranges for this company code for
assigning the main asset number. You can roughly classify your asset
portfolio using the number ranges.

In the asset class, you can specify the number range for the assignment of
numbers for that asset class. To keep administration needed for the number
assignment to a minimum, you should use number ranges with internal
assignment. You can enter asset numbers of unique and special significance
in the master data field "inventory number." Using the relevant customer
enhancement project you can use these numbers as asset keys in standard
reports (see the SAP library FI-AA: User Modifications).

Note

The number assignment of asset sub-numbers is also controlled by the asset

class. You specify there whether the assignment of sub-numbers is internal
or external. Number ranges are not required for the assignment of asset sub-
numbers.

Click on

Click on

Click on

Kasiviswanath.V [email protected]

151
 SAP FICO MATERIAL

Click on

Click on

Kasiviswanath.V [email protected]

152
 SAP FICO MATERIAL

Click on Continue

Click on

Click on

Define Asset Classes

In this step. you define the asset classes. The asset class is the most
important criteria for structuring fixed assets from an accounting point of
view. Every asset has to be assigned to exactly one asset class. The asset
class is used to assign the assets (and their business transactions) to the
correct general ledger accounts. Several asset classes can use the same
account assignment. You can see that it is possible to make finer
distinctions at the level of the asset class than at the level of the general
ledger accounts. The most important tasks of the asset classes are:

• the assignment of default values when creating assets (particularly

depreciation terms)

• the grouping of assets for reporting purposes

You define the asset classes in the system in a series of steps. The asset
class is structured in three parts:

• control parameters
Kasiviswanath.V [email protected]

153
 SAP FICO MATERIAL

• default values for general master data

• default values for depreciation terms in the chart of depreciation

You can assign depreciation terms to an asset class for any number of charts
of depreciation. This makes it possible to manage an asset class catalog that
is valid for an entire corporate group, independent of the country-specific
charts of depreciation.

In this step, you define the asset classes and their control parameters. In
further steps, you add further to the asset classes by supplying default
values for certain logical field groups in the asset master record.

Note

Structuring assets for accounting is not dependent on the technically

oriented structuring in the PM (Plant Maintenance) component. PM has its
own terms for classification (functional location, equipment) that are based
on the requirements of plant maintenance. You can set up a relationship
between the PM and FI-AA components by entering the asset number in the
master record of the related piece of equipment. In this way, you can select
all pieces of equipment that belong to an asset.

Click on

Click on

Kasiviswanath.V [email protected]

154
 SAP FICO MATERIAL

Click on

Click on

Specify Chart-of-Dep.-Dependent Screen Layout/Acct Assignment

Generally, the control specifications (the screen layout and the account
determination) for the asset class applies throughout the client, that is, for
all charts of depreciation. It is therefore sufficient to make control
specifications once per asset class.

You only need to carry out this step, if, contrary to the usual case, you want
these control specifications to be country-specific (that is, different
depending on the chart of depreciation). The system then uses the entries
you make here depending on the chart of depreciation in the given company
code. The system then ignores the control specifications in the asset class
that are independent of the chart of depreciation.

Click on

Click on

Click on Continue

Select

Double click on

Kasiviswanath.V [email protected]

155
 SAP FICO MATERIAL

Click on Continue

Assign G/L Account for Asset Accounting – AO90

Click on Continue

Select
Double click on

Click on

Click on Continue

Kasiviswanath.V [email protected]

156
 SAP FICO MATERIAL

Select

Double click on

Double click on

Click on

Click on

Kasiviswanath.V [email protected]

157
 SAP FICO MATERIAL

Depreciation

In the following section, you make system settings for fixed asset
depreciation.

Define Base Methods

In this step, you maintain base methods. Base methods are valid in all charts
of depreciation. You assign base methods to depreciation keys.

Recommendation

Normally the base methods supplied by SAP are sufficient.

Activities

1. Enter a technical name and a description for the base method.

2. Maintain the base method. It is particularly important to enter a
depreciation type and the depreciation calculation method.

Click on

Click on

Kasiviswanath.V [email protected]

158
 SAP FICO MATERIAL

Click on

Click on

Define Multi-Level Methods

In this step, you define multi-level methods. You then assign them to
depreciation keys. Each level represents a validity period for a given
percentage rate.

Activities

1. Maintain the multi-level methods and their descriptions.

2. Enter the characteristics of the multi-level methods.

Click on

Click on

Double click on
Kasiviswanath.V [email protected]

159
 SAP FICO MATERIAL

Click on

Click on

Click on

Maintain Period Control Methods

In this step, you maintain period control methods. You then assign them to
depreciation keys.

Example

Using period control methods, you can specify that the depreciation start
date for all acquisitions in the year is set to the first day of the period.

Requirements

You must have already maintained the period controls.

Activities

1. Maintain the period control methods and their descriptions.

2. Assign period control keys to the period control methods for:

➢ Acquisition transactions
➢ Subsequent acquisitions
➢ Retirements and transfers
➢ And so on.

Click on

Kasiviswanath.V [email protected]

160
 SAP FICO MATERIAL

Click on

Click on

Click on

Maintain Depreciation Key

In this step, you maintain depreciation keys by assigning calculation

methods to them. You can divide the duration of depreciation into several
phases. When you enter a changeover method for one of these phases, the
system changes over to the next phase as soon as the event specified in the
changeover method has occurred. The system then uses the depreciation
calculation that is specified in the calculation method for this phase.

Activities

1. Maintain additional depreciation keys and their descriptions in

accordance with your requirements.
2. Assign calculation methods to the depreciation keys. Maintain any other
necessary parameters.
3. Set the status of the depreciation keys to "active".

Click on

Click on

Kasiviswanath.V [email protected]

161
 SAP FICO MATERIAL

Double click on

Click on

Click on

Kasiviswanath.V [email protected]

162
 SAP FICO MATERIAL

Click on

Click on

Click on

Assign Depreciation Key to Asset Class Layout - OAYZ

Click on Continue

Click on

Click on Continue

Kasiviswanath.V [email protected]

163
 SAP FICO MATERIAL

Double click on

Click on

Click on

Rounding Specification - OAYO

Click on Continue

Click on

Click on Continue

Kasiviswanath.V [email protected]

164
 SAP FICO MATERIAL

Select

Double click on

Double click on

Select

Click on

Click on

Posting Rules - OAYR

Kasiviswanath.V [email protected]

165
 SAP FICO MATERIAL

Click on Continue

Click on

Click on Continue

Select

Double click on

Kasiviswanath.V [email protected]

166
 SAP FICO MATERIAL

Click on

Click on Continue

Click on

Master Data

In the step "Master data", you can make the necessary system settings
related to master data maintenance in the FI-AA System. In addition, you
can define evaluation groups and your own matchcodes.

Define Screen Layout for Asset Master Data

In this step, you define the screen layout control for asset master data. The
screen layout control contains the specifications for the field groups in the
asset master record. You enter the screen layout control in the asset class.

Kasiviswanath.V [email protected]

167
 SAP FICO MATERIAL

This method allows you to structure the master record individually for each
asset class.

Note

This step must be carried out exactly to guarantee optimal master data
maintenance.

Standard settings

SAP delivers some sample definitions which you can use as references
when formulating a more detailed structure for the asset master.

Activities

1. Create the screen layout control according to your requirements. (You

may already have carried out this step in the "Organizational Structures"
section of the FI-AA Implementation Guide.)
2. Define for the individual field groups

o the characteristics of the master record screen (whether fields are required,
optional, display fields or should be suppressed)

o the maintenance level

o whether it can be copied (when creating a new master record using a

reference master record)

Click on

Kasiviswanath.V [email protected]

168
 SAP FICO MATERIAL

select

Click on

Click on

Click on Continue

Select

Kasiviswanath.V [email protected]

169
 SAP FICO MATERIAL

Double click on

Select

Double click on

Click on

Click on

Define Screen Layout for Asset Depreciation Areas

In this step you define the screen layout control for the depreciation terms
(depreciation key, useful life, and so on) in the asset master record. This
screen layout control is similar to the one for the general master data section
of the asset master record. You can use it in a similar way to control the
features of the depreciation areas in the aset master record. It is possible to
make different specifications in each depreciation area.

Default settings

SAP delivers two standard versions:

• depreciation on main number level

• depreciation on sub-number level

You can take over these screen layout controls without changing them.

Click on

Select

Kasiviswanath.V [email protected]

170
 SAP FICO MATERIAL

Double click on

Click on

Click on
ASSET UNDER CONSTRUCTION:
1. Maintain / assign settlement profiles OKO7
SELECT SETTLEMENT PROFILE: A1 and press detail icon
Select to be settled full ration button
Allocation structure: A1 Default object= FXA

Valid receivers:
Fixed assets = 2 (settlement required)
Indicators:
Select: % settlement
Select: equivalence number
Select: amount settlement
Save
Back button 2 times and double click on assign settlement profile to
comp.code
Company code Company name Settlement Text
profile
A1 Settlement AUC
Save
2. Maintain number ranges for document for line item settlement (SNUM)
Click on maintain group icon
Keep the cursor / select (company code) under not assigned column
Goto main menu – edit – select element
Select the below check box
Select: standard account document
Goto main menu- edt –assign element group
Save
3. Creation of AUC Master Record: AS01
Asset class: company code:
Select master data icon
General tab:
General data:
Description:

Kasiviswanath.V [email protected]

171
 SAP FICO MATERIAL
Posting information
Capitalized on:
Click on time dependend tab
Business area:
Depreciation tab
Area Depreciation Depreciation Useful Periods Ordinary
number area key life depreciation

Save – click on next entry icon

Creation of AUC Master Record: AS01
Asset class: company code:
Select master data icon
General r=tab:
General data:
Description:
Posting information
Capitalized on:
Click on time dependend tab
Business area:
Depreciation tab
Area Depreciation Depreciation Useful Periods Ordinary
number area key life depreciation

Save - click on next entry icon

Creation of AUC Master Record: AS01
Asset class: company code:
Select master data icon
General r=tab:
General data:
Description:
Posting information
Capitalized on:
Click on time dependend tab
Business area:
Depreciation tab
Area Depreciation Depreciation Useful Periods Ordinary
number area key life depreciation

Save
4. Posting of AUC expenses document (F-90)
Posting key : 31
Posting key : 70
Transaction type: 100
5. Distribution an settlement of AUC (AIAB)
Company code:
Asset:
Kasiviswanath.V [email protected]

172
 SAP FICO MATERIAL
Sub- number
Execute
Select the line item & select enter distribution rule button
Category Settlement receiver Percentage
Buildings 60
40
Back
Save
Select execute settlement icon
Document date:
Posting date:
Value date:
Period:
Text: settlement of AUC
Select: test run
Select: detail list
Select execute icon

To see the document: fb03

ASSET TESTING:

1.. purchase of asset (F-02 / WITH BANK)

POSTING KEY : 70

ACCOUNT:

T-TYPE: 100

ENTER

Amount:

Posting key: 50 (credit)

Account: (Bank Account)

Enter

Amount: *

Goto menu bar – document- simulate- save

2.. with vendor: (F-90)

Posting key: 31

Account:

Enter

Amount:

Kasiviswanath.V [email protected]

173
 SAP FICO MATERIAL
Posting key: 70 (Asset Debit)

Account:

t-type: 100

enter

Amount :*

Text: +

Menu bar- document – simulate- save

3.. sale of asset: (F-02 – WITH BANK)

Posting key: 40

Account:

Enter

Amount:

Posting key: 50

Account: (sale of asset gl account)

Enter

Amount:*

Select asset retirement

Menu bar – document – simulate

Asset number:

Sub- number:

Asset value date:

Select complete retirement

Enter save

4. Sale of asset with customer (F-92)

Posting key: 01

Account:

Enter

Amount:

Posting key: 50

Account: sale of asset

Kasiviswanath.V [email protected]

174
 SAP FICO MATERIAL
Enter

Amount: *

Select asset retirement

Menu bar- document- simulate

Asset number:

Sub- number:

Asset value date:

Select complete retirement

Enter – save

5. scrap on asset (ABAVN)

Company code:

Enter

Asset:

Document date:

Posting date:

Asset value date:

Click on simulate

Post

Entry:

Scrap on asset dr

To asset

6. takeover of existing assets (AS91)

Double click on asset legasy asset

Asset class:

Company code:

Enter

Description:

Capitalized on:

Goto depreciation area tab

Depreciation key:
Kasiviswanath.V [email protected]

175
 SAP FICO MATERIAL
Useful life:

Click on takeover values

Cum.acquis.val:

Acc.ord. depreciation:

Enter

Save

7. depreciation run: (AFAB)

Company code:

Fiscal year:

Posting period:

Select test run

Execute

One time go back

Deselect test run

Menu bar- program- execute in background

Output device: lp01

Enter

Click on immediate

Save

Menu bar – system – services – output control

Execute

Select spool number

Display contents

8. documents display (FB03)

Integration:
MM consultant job

Enterprise Structure: Definition

1. Define Plants:

Path: SPRO-Enterprise structure- Definition –Logistic general-Define

Kasiviswanath.V [email protected]

176
 SAP FICO MATERIAL

copy, delete check plant. (ox10)

Double click on define plant

Select new entries button

Plant :5501 (from : 1000)/ 5502 - mumbai

Name :5501 HYD Factory plant

Factory calendar :Select B2 or 01 (B2=5501 HYD Factory

Calendar)

Save (01=Standard calendar)

Give the name :5501 Hyderabad factory plant

Country :IN

Enter

Select create request button

Short description :MM customization for 5501

Press enter

Enter once again to save in the request

Define division:

Path :Up to logistic –General the path is same-Define copy, Delete,

check division.

Double click on define division

Select new entries button

Division :VO (It is a text filed)

Name :Steel Division

Save

Press enter to save in your request

Kasiviswanath.V [email protected]

177
 SAP FICO MATERIAL

Maintain storage location

Path :SPRO-Enterprise structure –Definition- materials management –

Maintain storage location (OX09)

Give the plant :5501

Enter
Select new entries button

Give the storage location :HYD

Description :Hyderabad storage location

Save

Press enter to save in your request

Eg: raw – raw material
Sem- semi finished goods
Fin – finished goods

Maintain purchasing organization (ox08)

Path :SPRO-Enterprise structure –Definition- materials management.
Select new entries button

Purchase organization :5501

Description :5501 Purchase organization

Save

Press enter to save in your request

ASSIGNMENT:

Assign plant to company code: (ox18)

Path : SPRO-Enterprise structure –Assignment- logistics General –

Assign plant to company code ( Tr code is OX18)

Select new entries button

Company code :5501

Plant :5501

Save
Kasiviswanath.V [email protected]

178
 SAP FICO MATERIAL

Press enter to save in your request

Assign business area to plant/valuation area and division

Path :Same path -Select plant /valuation area –Division button

Select new entries button

Plant :5501

Division :VO

Business area :5501

Save

Press enter to save in your request

Assign purchasing organization to company code (ox01)

Path :Up to assignment the path is same –Materials management –

Assign purchasing organization to company code

Select position button :Give the purchase org:5501

Enter

For 5501 for assign company code 5501

Save

Press enter to save in your request

Assign purchasing organization to plant (ox17)

Same path
Select new entries button
Purchasing org :V01
Plant :5501
Save
Press enter to save in your request
Material Management: (MM CONSULTANT)

Kasiviswanath.V [email protected]

179
 SAP FICO MATERIAL

Create purchasing groups

Path :SPRO - Materials management –Purchasing –Create purchasing

groups.

Select new entries button

Purchasing group :V01

Description :5501 RM purchasing group

Save

Press enter to save in your request

Define material groups:( OMSF)

Path :SPRO-Logistic general –Material master-Settings for key fields –

Define Material groups.

Select new entries button

Material group :5501

Material groups description :BUSSES

Press enter to save in your request

**Define Attribute of material Type: (OMS2) (INTEGRATION)

PATH: logistic general – material master – basic setting – material type
enter
Click on position
Material type: ROH (raw material)
Enter
Select ROH
Double click on quantity/ value updating
Material type: HALB (Semi Finished Goods)
Enter
Select HALB (Semi Finished Goods)
Double click on quantity/ value updating

Go to position button
Valuation area:
Material type: ROH
Select quantity updating
Select value updating
Kasiviswanath.V [email protected]

180
 SAP FICO MATERIAL

Save and enter

Select material FERT for finished product

Double click quantity / value updating folder

Select position button

Valuation area :5501

Enter

For 5501 select quantity updating check box value updating check box Save

Maintain company code for material management: OMSY

Path :SPRO-Logistic General –Material master-Basic settings-

Maintain company code for materials management

Select position button

Give the comp code :5501

Enter

Year :2017

Period :7 (OCTOBER)

Note : This period enter carefully, if you once enter not modified

Select ABP check box (ABP stands for Allow Back Period Posting) Note:
September entries allowed

Save

Ignore the warning message press enter Press enter to save in your request

Define attributes of material types:

Path:up to the material master the path is same – Basic settings –

Material type-Define attributes of material types. (oms2)

Select position button

Select material type :ROH (Raw materials)

Enter
Kasiviswanath.V [email protected]

181
 SAP FICO MATERIAL

Select ROH
Double click on quantity / Value updating folder
Select position button
Valuation area :5501 ( Nothing but plant)
Enter

For 5501 select quantity updating, value update check box

Save

Press enter to save in your request.

Select back arrow
Select material FERT for finished product
Double click quantity / value updating folder
Select position button
Valuation area :5501
Enter
For 5501 select quantity updating check box value updating check box Save

Set tolerance limits for price variance for purchase order (OMEU)

Path: SPRO-Material management –Purchasing –Purchase order –set

tolerance limits for price variance

Select TIKY :PE& SE for company code 1000/0001

Select copy as button
Enter the company code to 5501
For tolerance key :PE (PRICE VARIANCE)
Enter
Change the company code to :5501
For tolerance key :SE (MAXIMUM CASH DISCOUNT)
Enter and save
Press enter to save in your request

Plant parameters:

Path :SPRO-Materials management –Inventories management &

Physical inventory –Plant parameters

Select plant :1000

Select copy as button
Change the plant to 5501
Enter and save
Press enter to save in your request

Set tolerance limits for goods receipt (OMC0)

Kasiviswanath.V [email protected]

182
 SAP FICO MATERIAL

Path : SPRO-Materials management –Inventories management &

Physical inventory - Goods receipt-Set tolerance limits
Select tolerance key B1,B2,VP for company code 1000/0005
Select copy as button
Change the company code to 5501 for B1 (ORDER PRICE QUANTITY
VARIANCE)

Enter
Change the company code 5501 for B2 (ORDER PRICE QTY VALUE)
Enter
Change the company code to 5501 for VP (MOVING AVG PRICE)
Enter and save
Press enter to save in your request

Maintain default values for tax codes (OMR2)

Path: SPRO- Materials management –Logistics invoice verification-
Incoming invoice- maintain default values for tax codes

Select new entries button

Company code :5501
TAX CODE : I0
Save
Press enter to save in your request

Edit PO supplement text in invoice verification (OMR8)

PATH: SPRO- Materials management –Logistics invoice verification-
Incoming invoice
EXECUTE
Click on order text: general
Click on new entries
Company code:
Select PO TEXT
SAVE & ENTER
TWO TIMES GO BACK
Click on notifiable order text types
Click on new entries

Company code id
5501 f03 (PRICING TYPE)
5501 f07 (TERMS OF PAYMENT)
Save & enter

**TERMS & INSTALLMENTS (OBB8 & OBB9)

Set tolerance limit: (OMR6)

Select:
Cocd Tlky
Kasiviswanath.V [email protected]

183
 SAP FICO MATERIAL

0005 AN
0005 AP
0005 BD
0005 BR
0005 BW
0005 DQ
0005 KW
0005 LA
0005 LD
0005 PP
0005 PS
0005 ST
0005 VP

Click on copy as change to company code

Save back

Set tolerance units for invoice verification (OMR6)

Path: SPRO- Materials management –Logistics invoice verification –

Invoice block-Set tolerance limits

select tolerance key BD, ST for company code 1000

select copy as button
change the company code to 5501 for BD (DIFFERENCES
AUTOMATICALLY)
enter
change the company code to 5501 for ST (DATE VARIANCE)
save

**Define valuation control: (OMWM)

execute
select valuation grouping active
save

Define automatic status change :

Path : SPRO- Materials management –Logistics invoice verification–

Invoice verification in back ground –Define automatic status change
Select new entries button
Company code :5501
Select save button or Ctrl+S
Press enter to save in your request

Group together valuation areas: (OMWD)

Path :SPRO- Material management –Valuation and account assignment-

Kasiviswanath.V [email protected]

184
 SAP FICO MATERIAL

Account determination-Account determination without wizard-Group

together valuation areas.
Select position button
Valuation :5501
Enter
Give the valuation grouping code :0001
Save
Press enter to save in your request

Define valuation classes: (OMSK)

Path : SPRO- Material management –Valuation and account assignment –

Select valuation class button

Click on valuation class

Valcl aref
3000 0001 raw material 1
3001 0001 raw material 2
3002 0001 raw material 3
3003 0001 raw material 4
7920 0009 finished goods
Save enter
One time go back
Click on material type/ Account category reference
Click on position button
Material type: ROH
Aref : 0001
Save enter

Alternative method:
==============
Select valuation class 3000 Raw materials local
Select valuation class 7920 Finished products
Select copy as button
Change valuation class 3000 to RAM1
Change the description to Raw materials local
Change valuation class 7920 to RAM2 – Finished product
Enter and save
Press enter to save in your request

FI consultants job:

1. Creation of GL masters FS00

A) Inventory RM local – G006 Current assets loans & advances
B) Inventory finished goods -do-
C) GR/IR clearing RM local Current liabilities & Provisions
D) RM consumption local RM Consumption
E) INC/DEC in stocks FG Increase /Dec in stocks
Kasiviswanath.V [email protected]

185
 SAP FICO MATERIAL

Company code 5501

GL account no. 200120 (Inventory RM)

Enter

Select control data tab

Tax category :select * (All tax allowed)

Select posting without tax allowed check box

Sort key : 001

Select create/Bank/Interest tab

Field status group change to G006 Material accounts

Select post automatically

Save

GL account no. :200122

Company code :5501

Select with template button

Enter

Select type/description tab

Change short text and GL a/c long text to inventory Finished Goods

Save

GL account :100500

Company code :5501

Enter

Change short text and GL account and long text to GR/IR clearing RM local
Select control data tab

Tax category :*

Kasiviswanath.V [email protected]

186
 SAP FICO MATERIAL

Select posting without tax allowed check

Sort key :001/014 Purchase order

Select create /bank /interest tab

Field status group change to G001/G045 goods/Invoice received clearing

accounts Save

Give the GL account no.400100 RM CONSUMPTION a/c

Company code :5501

Enter
Select type/description tab
Change the account group to RM consumption
Change short text and GL account long text to RM consumption local
Select create /bank /interest tab
Field status group to change to G003 Material consumption accounts Save
Select edit cost element button
Valid from :01.04.2008
Enter
Cost element category :Select 01
Save

Kasiviswanath.V [email protected]

187
 SAP FICO MATERIAL

GL account :300200

Company code :5501

Enter

Select type/Description tab

Change account group to Increase /Decrease stocks

Change short text and GL account long text to Increase/Decrease in stocks FG

Select create/Bank/Interest tab

Change field status group to G030 change in stock accounts Save

==========================================================
*Assignment of accounts for automatic postings

Path :SPRO-Material management –Valuation and account assignment-Account

determination-Account determination without wizard – Configure automatic
postings (Tr code is OBYC) (MM to FI Integration ) – (OMWB)

Select cancel button

Select account assignment button

Double click on transaction BSX inventory posting

Give your Chart of Accounts :5501

enter

Select valuation modifier check box

Select valuation class check box

Save

Valuation modified Valuation class Account

RAW MATERIAL
0001 3000 GL(200510)

Save
Kasiviswanath.V [email protected]

188
 SAP FICO MATERIAL

Kasiviswanath.V [email protected]

189
 SAP FICO MATERIAL
Press enter to save in your request
Select back arrow
Double click on transaction WRX GR/IR clearing account
Select valuation modifier check box
Select valuation class check box
Save
Valuation modifier :0001
Valuation class :3000
Account no. : GR/IR clearing local (199998)
Save
Press enter to save in your request
Select back arrow
Double click on GBB offsetting entry for Inventory posting
Select General modification check box
Valuation modifier check box
Valuation class check box
Save

Valuation General modification Valuation class Account

Modifier
INCREASE /
DECREASE STOCK
3000/ 5502 RM GL ACCOUNT
0001 VBR (consumption) local (400007 RM
consumption local)
0001 ZOF (Production Receipt 5502 Finished 300200 Increase /
without production order) Products Decrease stocks FG
0001 AUF with production 5502 300200
0001 VAY (Delivery where 5502 300200
sales account is created as
revenue element
Co implemented)
0001 VAX Delivery where is 5502 300200
sales account is not created
as revenue element
CO not implemented

Kasiviswanath.V [email protected]

190
 SAP FICO MATERIAL
Save
Press enter to save in your request

FINANCE CONSULTANT JOB:

Document types and no.ranges (OBA7)

WE :Goods receipt 50

WA :Goods issue 49

RE :Gross invoice receipt 51

Tr code is OBA7

Select WE :Goods receipt

Select details button

Number rage :50

Select number range information button

Company code :5501

Select change intervals button

Select interval button

No.range :50
Year :2008
From no. :800001
To no. :900000
Enter and save

Ignore the warning message press enter Select back arrow 3 times

Select type WA Goods Issue Select details button

Number range :49

Kasiviswanath.V [email protected]

191
 SAP FICO MATERIAL

Select no.range information button

Company code :5501

Select change intervals button

Select interval button

No.range :49
Year :2008
From no. :900001

To no. :1000000
Enter and save

Ignore the warning message press enter

Select back arrow three times

Select RE gross invoice receipt

Select details button

No. range :51

Select no.range information button

Company code :5501

Select change intervals button
No.range :51
Year :2008
From no. :1000001
To no. :1100000

Enter and save

Ignore the warning message press enter

Kasiviswanath.V [email protected]

192
 SAP FICO MATERIAL
MM end user area

Creation of vendor master XK01

Give the company code :5501

Purchasing organization :5501R

Account group :55012 MM vendors for 5501

Enter

Give the name :Nagarjuna Steels Limited

Country :IN

Select next screen button 3 times

Reconciliation account :select 100501 Sundry credit RM

Sort key :012 vendor

Select next screen button

Payment terms :0001

Select next screen button 2 times

Order currency :INR

Select GR based invoice verification check box

Save

Creation of RM material master

Path :Logistics –Materials management –Material master-

material-Create(Genral) –Immediately (Transaction code MM01)

Material :5501RM1

Industry sector :Mechanical engineering

Kasiviswanath.V [email protected]

193
 SAP FICO MATERIAL
Material type :Raw material

Press select views button

Select basic data1, purchasing, general plant data/storage1/accounting1

Select organization levels button (bottom side)

Give the plant :5501

Storage location :HYD

Enter

Give the description :Raw material 1

Basic unit of measurement :KG

Material group :5501C (Chemicals)

Division :RA (Steel)

Select purchasing tab

Purchasing group :5501

Select accounting one tab

Valuation class :select 55011 (RM local)

Price control :select V moving average price

Moving price :50

Select save button or Ctrl+S

To open material periods for November:

Kasiviswanath.V [email protected]

194
 SAP FICO MATERIAL

Up to material master the path is same –Other-Close period (Transaction

code is MMPV)

From company code :5501

Give the period :8 (November)

Fiscal year :2008

Select check and close period radio button

Execute

Purchase order creation

Path :Logistics – Material management –Purchasing –Purchase order-

Create-Vendor/supplying plant known (The transaction code is ME 21N)

Give the purchasing organization :5501R

Company code :5501

Enter

Give the purchasing group :5501

Item :10

Material :5501RM1

PO quantity :100 Kg

net price :75

Plant :5501

Give the currency :INR

Vendor no. :2001

Save

Note the purchase order no.4500017092

Kasiviswanath.V [email protected]

195
 SAP FICO MATERIAL

Goods receipt:

Path :Logistics –Material management –Inventory management –Goods

movement –Goods receipt- for purchase order –PO number known (The
transaction code is MIGO)

Select goods receipt

Give purchase order no.4500017092

Enter

Kasiviswanath.V [email protected]

196
 SAP FICO MATERIAL
Storage location select :HYD

Select quantity tab

Quantity in delivery note :100

Select item ok check box

Select save button or Ctrl+S

Select display button

Enter

Select document information tab

Select FI documents button

RAX
200121 Inventory RM local 7500 5501RM1 55011

WRX
100520 GR/IR CLRG RM local -7500 5501RM1 55011
Qty .Received(GR) *Rate as per PO
100*75

Note: change USTAX to GTAX

Invoice verification:

Path :Logistics –Materials management –Logistics-Invoice

verification – Document entry-Enter invoice (Transaction code is
MIRO)

Give the invoice date :Today’s date

Reference :Party 5501l no.1234

Text :Invoice verification

Purchase order :4500017092

Select payment tab

Payment terms :0001

Kasiviswanath.V [email protected]

197
 SAP FICO MATERIAL

Baseline date :today’s date

Select base data tab

Tax code :select V0

Enter

Business area :5501H

Select beside data tab

Kasiviswanath.V [email protected]

198
 SAP FICO MATERIAL
Amount :7500
Enter
Select save button or Ctrl+s
From the menu select invoice document –Display
Select follow on document button

2001 Nagarjuna Steels Limited 7500 –From party no is taken 100520

GR/IR CLRG RM local 7500 5501RM1 55011

Raw material consumption

Path :Logistics –Materials management –Inventory management –

goods movement –goods issue (Transaction code is MB1A)

Movement type :201

Plant :5501
Storage location :HYD
Enter
Give the cost center :Dept A
Material :5501RM1
Quantity :30
Select save button or Ctrl+S
From the menu select goods –Issue display
Enter
Select accounting documents button
Select accounting document number
RAX
200121 Inventory RM local 2250-5501RM1 55011
GBB VBR
400000 RM consumption LCL 2250-5501RM1 55011
Qty consumed * moving average price
30*75

Kasiviswanath.V [email protected]

199
 To view stock ledger

Path :Logistics –Materials management –Inventory management – Environment –

Stock for posting date (Transaction code is MB5B)

Material no. :5501RM1

Company code :5501
Plant :5501
Selection date :01.04.2008 to 31.03.2009
Select valuated stock radio button
Execute

MM END USER TASK:

1. Raw Material Creation:

Transaction Code: MM01

Material: CARRM

Industry Sector: Mechanical Engineering

Material Type: ROH

Select Views Tab

Select Views( Basic Data1, Purchasing, General Plant Data/ Storage 1, Accounting 1, Costing 1
and Costing2)

Click on Org level Button

Plant:

Storage Location:

Enter

Basic Data 1 Tab

Material: CARRM(Steel)

Basic Unit of Measures: KG

Material Group: Lapm

Division:

Net Weight: 1 KG

Gross Weight: 1KG

Purchasing Tab:

Purchasing Group:

200
 Accounting 1Tab:

Valuation Class:

Price Control: V

Moving Price: 200

Save

2. Creation of Vendor: XK01

Vendor:

Company Code:

Purchase Org:

Account Group:

Enter

Name:

Country:

Region:

Enter next Screen Button 4 times

Recon Account:

Sort Key: 012

Cash management Group: A1

Enter

Pay terms: Num

Tolerance Group: Blank

Select: CHK Double Inv

Save

Note: Create 2 more Vendor Master Data Like Above.

3. Open Period for Current month:

Transaction Code: MMPV

From Company Code:

To Company Code:

Period: (Current Month)

201
 Fiscal year:

Check and Close period

Execute

Note: Initialize the Closed Period: T-Code: MMPi , can be used to open the period which is
closed by mistake. But this is to be done very carefully. Any postings done in the new period
will have impact if we re-open the previous period and post it.

4. Purchase Order Creation: T-Code: ME21N

Vendor:

Enter

Org Data Tab:

Purchase Org:

Purchase Group:

Company Code:

Item Material PO Qty Delivery Net price Currency Plant Storage

Date Location
10 100 200 INR
Enter

Expand “ Item Detail Button”

Conditions Tab

Enter Amount for Condition Type “ FRB1” As Below

Condition Type Name Amount

FRB1 Freight (Value) 50
Messages Button to see any Errors

Back (F3)

Check Button

Save

Note Down the Purchase Order Number

5. Goods Receipt: T-Code: MIGO

Purchase order :

Enter

Where tab

Storage Location:
202
 Text: GR

Quantity Tab:

Quantity in delivery Note: 100 KG

Select item OK

Check Button: ( Document is “ OK” Message Should Come)

Post

Note Down the Material Document Number

6. Display Material Document: (T-Code: MB03)

Material Document:

Material Document Year:

Enter

Accounting Document Button

DR 89 Inventory Rm

CR 96 GR/IR Account

CR 50 Freight Clearing Account 50

7. Invoice Verification For Goods (T-Code: MIRO)

Invoice Date:

Calculate tax:

Tax Code:

Text: Invoice Verification

PO Reference tab:

Purchase Order Schedule Agreement: (Goods/ Service Items

Enter

Select Booking OK for Item 1.

Enter

Copy the Amount in Balance Field ( Red Signal)

Paste the Amount Field (Without – ‘ve Sign’)

Enter

203
 (Red Signal Should turn into Green Signal)

Payment Tab

Base Line Date:

Payment Terms:

Simulate Button:

Close the Window

Post

Invoice Document Menu – Display

Follow on Document Button

Vendor
GR/ IR Clearing Account
VAT/ GST Receivable

8. Invoice Verification for Freight (T-Code: MIRO)

Invoice Date:

Select Calculate Tax

Tax Code:

Text: Freight Invoice Verification

PO Reference tab:

Purchase Order / Scheduling Agreement: ____________ (Planning Delivery Cost)

Enter

Select Booking “ OK” For item 1.

Enter

Detail Tab:

Inv. Party : (Vendor Name)

Enter

Enter to Ignore the Message

Basic Data Tab:

Copy the Amount in Balance Field ( Red Signal)

Paste the Amount Field (Without – ‘ve Sign’)

204
 Enter

(Red Signal Should turn into Green Signal)

Payment Tab

Base Line Date:

Payment Terms:

Simulate Button:

Entry Should be like the Following

CR Vendor 50

DR Freight Clearing Account 50

Close the Window

9. Raw Material Consumption: (T- Code: MB1A)

Moment Type: 201 (Consumption For CC)

Plant:

Storage Location:

Enter

Cost Center:

Material:

Quantity:

Enter

Post

(Document Number Generated)

Goods Issue Menu – Display

Material Document:

Material Document Year:

Enter

Accounting Document Button

Double Click on Accounting Document

Entry Should be like the Following

CR Inventory of Raw Material

205
 DR RM Consumption

Close the Window

10. Display Stock Ledger (T-Code: MMBE)

Material:

Plant:

Storage Location:

Execute

11. Display Stock For Posting Date (T-code: MB5B)

Material Number:

Company Code:

Plant:

Click on Valuated Stock:

Execute

SD INTEGRATION:

SD consultant’s job
Enterprise structure Definition:

1. Define region:(State)
Path :SPRO-SAP netweaver-General settings-Set countries –Insert regions

Select new entries button

Country :IN
Region :AP
Description :Andhra Pradesh
Save
Select create request button(F8)
Short description SD customization for 5501
Save in your request

Define sales organization

Path :SPRO-Enterprise structure –Definition –Sales and distribution –

Define,copy,delete,check,-Sales organization

206
Double click on define sales organization
Select new entries button
sales organization :5501
Description :5501 HYD Sales organization
statistics currency :INR

save, Ignore the warning message press enter

Give the name :5501 HYD sales organization
country :IN
region :AP
press enter
To save in your request
Define distribution channel

Same path -Sales & distribution –Define,copy, delete,check distribution channel

Double click on define distribution channel

Select new entries button
Distribution channel :VO
Name :Direct sales
Save
Press enter to save in your request

Define shipping point

Path :SPRO- Enterprise structure –Definition-Logistic execution –Define, copy,

delete, check shipping point

Double click define shipping point

Select new entries button
Shipping point :5501
Description :5501 HYD shipping point
Save
Name :5501 HYD shipping point
Country :IN

207
Enter
Press enter once again to save in the request

Enterprise Structure Assignment

Assign sales organization to company code:

SPRO-Enterprise structure –Assignment-Sales & Distribution –Assign sales
organization to company code

Select position button

Sales organization :5501
Enter
For sales organization :5501
Assign company code :5501
Save
Press enter to save in your request

Assign distribution channel to sales organization

Same path
Select new entries button
Sales organization :5501
Distribution channel :VO
Save
Press enter to save in your request

Assign division to sales organization

Same path
Select new entries button
Sales organization :5501
Division :VO
Save
Press enter to save in your request

Setup sales area:

208
Same path
Select new entries button
Sales organization :5501
Distribution channel :VO
Division :BS
Save
Press enter to save in your request

209
Assign sales organization –distribution channel- plant:

Select new entries button

Sales organization :5501
distribution channel :RA
Plant :5501P
Save
Press enter to save in your request

Define rules by sales area:

Path :Up to sales and distribution the path is same –Business area
account assignment –Define rules by sales area

Save, press enter to save in your request

Assign shipping point to plant:

Path :SPRO-Enterprise structure –Assignment-logistic execution –

Assign shipping point to plant
Select position button
Sales organization Select find button
enter
Enter :5501P
For sales organization Press enter
Rule select Select :5501P
Select assign button

210
Select 5501 check box
enter
Save
Press enter to save in your request

Sales & Distribution: (SD CONSULTANT ACTIVITY)

Define common distribution channels:

Path: SPRO - Sales & Distribution –Master data –Define

common distribution channels

Select position button

Give the sales organization :
Enter
Distribution channels for condition:
Distribution channels for customer master:
Save
Press enter to save in your request

Define common divisions:

Same path

Select position button

Sales organization : Enter
Division for conditions : select
Division for customer master : select
Save
Press enter to save in your request

Maintain pricing procedures

Path : SPRO- Sales and distribution –Basic functions – pricing –

Pricing control –Define and assign pricing procedures

Double click on maintain pricing procedures

Select pricing RVAA01 standard

211
Double click on control data folder

212
 Condition type SKTV cash discount (914)
Condition type MWST output tax (915)
Deselect required check box
Save
Ignore the warning message press enter to save

Define pricing procedure determination:

Path :SPRO-Sales and distribution –Basic functions –pricing

–Pricing control –Define and assign pricing procedures

Double click on define pricing procedure determination

Select new entries button
Sales organization :
Distribution channel :
Division :
Document pricing procedure :select A standard
Customer pricing procedure :select 1 standard
Pricing procedure :select RVAA01 standard
Condition type :select PR00 price
Save
Press enter to save in your request
Define tax determination rules:

Path : SPRO-Sales and distribution –Basic functions- Taxes

–Define tax determination rules

Select new entries button

Tax country :IN for India
Sequence :1
Tax category :MWST (OUT TAX)
Save

**Setup partner determination:

PATH: SD – basic function- partner determination- enter

Partner functions
Customer No.
213
 1
N
o
t
m
o
d
if
ia
b
SP Sold to Party 1 le
SH Ship to party 1 2 Modifiable
BP to party 1 2. Modifiable
PY Payer 1 2 Modifiable

If we don’t specify separately (SP, SH,BP and PY)all we be only

customer

Path :SPRO-Sales and distribution –Basic functions -Partner

determination –Set up partner determination

Double click setup partner determination for customer master

CLICK ON NEW ENTRIES
TY01 - TOYOTA COMPANY
SAVE
Double click on partner functions folder
Click on position button
Partner function: SP (Sold to Party)
Select partner function SP
Double click on account group function assignment folder
Select new entries button
Partner function : SP
Account group :
Partner function : SH
Account group :
Partner function : BP
Account group :
Partner function : PY
Account group :
214
Ignore the warning message press enter to save in your request.
Double click on Partner Determination Procedure Assignment
folder
Click on Position button
Partner determination :
Name :
Save
Ignore the warning message press enter

Select partner determination :

Double click partner functions in procedure
Click on New Entries Button
Partner function : SP
Select not modifiable check box
Select mandatory check box
Select partner function : SH select Not Modifiable and
Mandatory function check box
Select partner function : BP select Not Modifiable and
Mandatory function check box
Select partner function : PY select Not Modifiable and
Mandatory function check box
Save
Press enter to save in your request
Double click on partner determination procedure assignment
folder
Click on Position button
Account group :
Enter
Assign partner procedure:
Save

Assign shipping points

Path: SPRO- Logistics Execution-Shipping –Basic shipping

functions –Shipping point and goods receiving point
215
determination –Assign shipping point

Select new entries button

Shipping conditions : 01 as soon as possible
Loading group :0001 manual
Plant :
Propose shipping point :
Save
Press enter to save in your request

FI consultant job:

Creation of GL master sales local own goods under sales group –

FS00

Sales revenue gl account: 300000 (Sales Revenue gl )

Cost element category :11 Revenues

Save

* Assignment of account for automatic postings:

Path :SPRO-Sales and Distribution –Basic function-Account

assignment/costing Revenue account determination –Assign
GL accounts (Transaction code is VKOA)

Double click on table one

Select new entries button
Application area: Select V Sales & Distribution
Condition type : KOFI account data
Chart of account: 5500
Organization: 5501

Account assignment group of customer :Select01 domestic

revenues

Account assignment group of material :03 Finished goods

Account key :SelectERL sales revenues
GL account :300000 sales local own group
Save

216
Press enter to save in your request

SD end user area

Creation of customer master :XD01
Company code :5501
Sales organization :5501S
distribution channel :RA
Division :BS
Account group :SD customer for 5501
Enter
Name :DLF Industries Ltd
Country :IN
Region :AP
Select company code data button
Reconciliation account :200110 sundry debtors
Sort key :031 customer no.
Select payment transaction tab
Terms of payment :0001
Select sales area data button
Customer pricing procedure :select 1 standard
Select shipping tab
Delivery priority :select 02 normal
Shipping conditions :select 01 as soon as possible
Delivery plant :5501P
Select Billing documents tab
Select price determination check box
In CO terms under delivery and payment terms :select EXW
form plant
Terms of payment :0001
Account assignment group :select 01 domestic revenues
For Tax category UTXJ Tax classification :select 1 liable for tax
Save

217
Creation of finished goods material master (MM01)

Give the material :5501FG

Industry sector :Mechanical engineer
Material type :Finished product
Press select views button
Select basic data 1
Select Sales :Sales organization data 1
Select Sales :salesorg.data 2
Select Sales :General /plant data
Select MRP1
Select general plant data /storage 1
Select accounting 1
Select organization levels button
Plant :5501P
Storage location :HYD
Sales organization :5501S
Distribution channel :RA
Enter
Description :Finished product
Base unit of measurement :KG
Division :BS
Gross weight :1 kg
Select sales :select 1
sales :Sales org.1 tab
Division :BS
Tax classification :select 1 (Taxable)
Select sales :sales, sales organization 2 tab

218
Account assignment group :select 03 finished goods
Select sales :General /plant tab
Available check :select KP no check
Transportation group :select 0003 container
Loading group :select 0003 manual
Select MRP1 tab
MRP type :select ND no planning
Select accounting 1 tab
Valuation class :select 5501L2 finished product
Price control :select S standard price
Standard price :400
Save
Creation condition types:

Path : Logistics –Sales & Distribution –Master data-Conditions –Select

using conditions type-create (Transaction code is VK11)

Condition type :PR00 price

Select key combination button: Select material with release status radio button
Enter
Sales organization 5501S
Distribution channel :RA
Material :5501FG
Amount :600
Valid from :01.04.2008
Valid to :31.03.2009
Save
Select back arrow
Condition type :select UTXJ tax Jursdict code
Select key combination button
Select domestic taxes radio button
Enter
Country :IN for India

219
118
Tax classification for customer :1
Tax classification for material :1
Valid from :01.04.2008
Valid to :31.03.2009
Tax code :A0 (0% output tax)
Save
Ignore the message press enter

CREDIT CONTROL AREA

1) Define Risk Category:

SPRO -- > Financial Accounting -- > Account Receivable and Accounts Payable
-- > Credit Management -- > Credit Control Account -- > Define Risk Categories
Go to “NEW ENTRIES” and create the Risk Category with the combination of
Credit Control Area.
Save the record.

2) Define Credit Control Area:

It is the responsible organizational element which takes care of all the credit
management activities in a company code.
SPRO --> Enterprise Structure -- > Definition -- > Financial Accounting -- >
Define Credit Control Area.
Go to “NEW ENTRIES” and create the Credit Control Area.

220
Note: if you maintain risk category and credit limit in "default data for
automatically creating new customers" , it will automatically apply for new
creating customers in future.

3) Define Credit Groups:

The credit group specifies which subsequent transaction can be blocked for
processing, if the credit limits are exceeded.
SPRO -- > Sales & Distribution -- > Basic Functions -- > Credit Management
and Risk Management -- > Credit Management -- > Define Credit Groups.
You can use the default credit groups or create new once.

SAVE
221
BACK

5) Assign Sales Document and Delivery Document to Credit Group:

SPRO -- > Sales & Distribution -- > Basic Functions -- > Credit Management
and Risk Management -- > Credit Management -- > Assign Sales Document and
Delivery Document -- > Credit Limit Check for Order Types.

Select the Sales Document Type and assigned to “Check Credit”, “Credit Group”.
And save the record.

-- Credit Limit Check for Delivery Types.

-- Select Delivery Document Type and assigned to “Delivery Credit Group”,
“Goods Issue Credit Group”
-- Save the record.

Click on

BACK

INDEX

PARTICULARS
CO Areas and Basic Settings for Controlling
Cost Center Accounting
Online Reconciliation Leger
1. Creation of GL Masters
2. CO Customization
3. FI Customization
Cross Company Code Postings
Maintain Overhead structure

222
Statically Key Figures (SKF)
Assessment
Internal Orders
Budgeting and Availability Control
Profit Center Accounting

223
 This is used for internal reporting in Co organizational Hierarchy – Highest node is
controlling area. In FI Highest node is company, Company code

CO AREA’S:

1. Cost Elements Accounting: To update Co records / sub modules, cost elements are required.

There are two types of cost elements

1. primary cost elements
2. Secondary cost Elements

2. Cost Center Accounting: This is used to view department wise costs.

3. Internal orders: This is used to view costs for specific task.

Eg: Vehicle wise running expenses / Petrol expenses, Repairs to that Vehicle,
Telephone wise expenses production order costs / Exhibition costs.

Create each vehicle as An order and capture the costs

Production order:
Create production order as on internal order and capture the costs.

Exhibition costs: Sales men salaries, Advertisement discounts to customers

conveyance. Create a exhibition order

4. Profit center accounting: This is used to view profitability product wise /

Division wise / Location wise if business area is not used in FI

5 Product Costing : This is used for valuation if inventories .

Eg: Finished goods and work in process.
6. Profitability analysis: This is used to view Profitability for number of parameters at a
time.
Eg. Sales order wise / Customer wise / Product wise / Plant wise / Sales
organization wise Profitability this is reporting tool

224
BASIC SETTINGS FOR CONTROLLING:
Maintain controlling area

FI Organization Structure CO. Organization Structure

Company Operating Concern

| |
Company code Controlling Area
| |
Business area Cost Center

Scenario – 1

Company
|
Company code = Controlling Area
| |
Business area --- Cost Center

Note:
a... Controlling area at company code level.
b... Business area will be assigned in cost centers.

Scenario -2

Company = Controlling Area

| |
Company code |
| |
Business area --- Cost Center
Note:
a... Controlling area at Company (Group) level no. of company codes will have one
controlling area,
b... Business area will be assigned in Cost Centers.

Note: If All Sub- Companies Located in India.

225
1) When management wants to view number of company codes, cost centers data at a time
– It is possible in 1st Scenario – It is not possible 2nd scenario.

In report it will ask only one Operating Concern have Multiple Controlling Area.

2) When management wants to view number of cost centers data of company code –
Directly it is possible in 2nd scenario.

Also it is possible in 2nd Scenario – By creating cost center Groups. It

means 2nd Scenario is more flexible.

MAINTAIN CONTROLLING AREA:

Path: SPRO – Controlling – General controlling – Organization – Maintain

controlling area ( is OKKP)

Note: If we go for 1st scenario – company code should be the controlling area.

If we go for 2nd scenario we can use any code for controlling area code.

Double click maintain controlling area.

Select new entries button

Controlling area :
Name :
Company code to controlling area : Select controlling area same as company code
Currency type : select 10 company code currency.

Once we select 10 company code currency, currency field, Chart of Accounts filed and
Fiscal year variant filed will be updated automatically.

Cost Center standard hierarchy :

Save
Select yes button for the message system to create as a standard
hierarchy Select create request button
Short description :

Press enter
Press enter once again to save in the request.

226
COST CENTER STANDARD HIERARCHY:
Cost center standard hierarchy :
|
Cost centers Group Dept. A Dept. B Dept. C

Cost Centers Salaries Salaries Salaries

At the time of cost center creation – It will ask under which hierarchy we are creating
the cost centers.

In the report – when we give cost center Dept. – It gives only Dept. date. When we
give cost center Dept. – It gives only Dept. date.

When we give cost center hierarchy (___________) – It gives all the cost centers data.
Double click on assignment of company codes folder
Select new entries button
Give the company code:
Select save button or Ctrl+S
Press enter to save in your request
Double click on a activate components / control indicators folder
Select new entries button
Fiscal year :
Cost center : Select component active
Select active type check box
Order management select component active.
Select profit center accounting check box
Save
Ignore the warning message press enter

MAINTAIN NUMBER RANGES FOR CONTROLLING DOCUMENTS:

1. CO through posting from FI (Business transaction – COIN

CO No rang interval for the business transaction –COIN

FI Document type Co
And no. ranges

227
SA COIN
| |
01 |

228
 |
1-100000 1-00000
Manual posting F-02 Automatic posting
Note: Finance Applies Document Level, Controlling Applies Line Item Level.
Document Consists Multiple Debits and Credit Line items
Line item Consists Multiple Field properties.
Posting Gl Name Amount Busines Cost Profit Interna Commit Segment
Key s Area Center Center l Order ment
40 Salaries 100000 * * * * *
50 Bank 100000 - - - - - -

Note: Controlling which Applies In-Direct Revenues and expenses.

1. Repost Co line items (Business transaction –RKU3)

Option 1

Posting in FI

Wages A/c Dr 100000 Dept.A

Wages A/c Dr 200000 Dept.B
Wages A/c Dr 300000 Dept C
To bank 600000

1 FI Document
1 Co Document – COIN

Note: Automatic posting is a business transaction

Option 2

Posting in FI Posting in CO

Wages A/c Dr 600000 Dept common Dept A 100000

Dept.common Dept B 200000
Dept. Common Dept C 300000

To Bank 600000 Post Co line item

2 Documents
1 FI Document No FI document
1 CO Document –COIN 1 CO Document – RKU3

Transfer document wise/line item wise

Total documents generated

1. FI Document
229
2. CO Documents

Wages A/c Dr 600000 Dept Common Dept A 300000

Dept Common Dept B 200000
Dept Common Dept C 300000

Rent A/c Dr 50000 Dept A

To bank 650000 Repot CO line item

Transfer line item wise

Transfer document wise / Line item wise

Report costs (Business transactions – RKU1)

This is used when we split the cost center into number of cost centers or transfer for
wrong cost center postings.

No FI document will be generated

CO document only will be generated

Transfer cost element wise (GL Account wise) 01/07/2007 split into Dept A and Dept X

Dept A Dept X

30/04/- 400100 Salaries 200000

30/05/- 400100 Salaries 250000
30/06/- 400100 Salaries 275000
----------
400100 total 725000 400100 Salaries 200000

30/04/- 400101 wages 100000

03/05/- 400101 wages 150000
30/06/- 400101 wages 125000
----------
Total 400101 375000 400101 wages 125000

30/04/- 400300 Rent 500000

31/05/- 400300 Rent 50000
30/06/- 400300 Rent 50000
--------
400300 Total 150000 400300 Rent 40000

Planning primary costs (Business transaction RKP1)

Planning cost center wise or no. range interval for all the types , budgeting cost
230
center wise for each cost element.

Path: SPRO- Controlling – General controlling – Organization- Maintain number

ranges for controlling document (Code is KANK)

Controlling area :

231
Select maintain groups button
From the menu select group – Insert
Text: Co doc no. range interval for
From number :1
To number :100000
Enter
Double click on business transactions COIN
RKU3
RKU1
RKP1
Select Co. No. range interval for (____________) check box
From the menu select Edit – Assignment element group
Save
Ignore the message press enter

Note: Usage of Version locked authorized person only Eg; Cost Accountant

MAINTAIN VERSIONS:

Version are nothing but budgets

Original budgets Version 0

Revised budget version 1
Re revised budget Version 2

We can compare actual with original budget, Revised budget and Re revised budget

Path: SPRO – Controlling –General controlling – Organization – Maintain

versions

Select version 0 (Plant /Actual version)

Double click on settings for each fiscal year folder
Give the controlling area :
Enter
Select new entries button
Fiscal year :
Exchange rate type : select B (Bank selling rate)

Once budgeting is completed at end user are a select version locked – So that no body
can change budget figures.

232
 Save

Press enter to save in your request

Select bank arrow
Planning is made attend user area after planning’s completed we select version locked
check box, nobody can change planned figures.

COST ELEMENT ACCOUNTING:

To update CO records / sub modules cost elements are required

There are 2 types of cost elements

1. Primary cost element 2 Secondary cost elements

A)Primary cost elements are our general A)Secondary cost elements are other than
general ledger accounts for internal
ledger accounts for External Reporting. Reporting.
B) Posting to primary cost elements are B) Postings to secondary cost elements are
Possible not possible. They are used to allocations /
Settlements/ Activity Related Principles.
Example:
Dept C Dept A Dept B
(A & B are Production
(Service Dept) Depts)
Salaries 100000
Wages 200000
Power 5000
In the month end, by using secondary cost element, we allocate costs from service to
production Depts. Using Allocation Cost / Re-Post Cost/ Re-Distribution Cost/ Re-
Assessment Cost/ Settlement Related, Activity Related Principles.

COST ELEMENT CATEGORIES

PRIMARY COST ELEMENT CATEGORIES:
1. Primary cost / costs reducing Revenues. This used for expenditure accounts
3. Accrual / Deferral per surcharge: This is used for month end provisions only in
CO
11. Revenues: This is used for income accounts
12. Sales Deduction: This is used for expenditure accounts like sales commission,
Trade discount where CO-Profitability analysis module is activated
22. External settlement (Settlement from CO – FI): This is used for allocation of internal
order settlement to GL Accounts / Assets.

233
 SECONDARY COST ELEMENT CATEGORIES:

21. Internal settlement (Settlement from CO to CO) This is used for allocation of internal
order settlement cost to cost centers.
31. Order/ Project Results analysis: This is used for work in process calculations is product
costing.
41. Overheads rates: This is used for calculation of raw material overhead rate /
Production overhead rate in product costing.
42. Assessment: This is used for allocation of primary cost element posing and secondary
cost postings from one cost center to other cost centers.
43. Internal Activity Allocation: This is used for calculation of activity types in
production cost.
Eg: Machine hours rate / labor hour rate in product costing.

Example:
Finance Invoice Salaries Dr 50000
Powe Bill Dr 50000
Telephone Bill Dr 50000
Maintenance Dr 50000
To Cheque Issue 200000
As Client Specification’s:
Salaries For Department ‘A’. (Amount 50000 * No of Employees 5)
3 Employees are working in Department “B” and 1 employee working in Department “c”.
COST CENTER ACCOUNTING

This is used to view department wise costs we use cost center accounting. 1.
Creation of primary cost elements, we can create
A) FI Area |
B) CO Area |- Co Area
C)Automatic creation |

2. Display cost elements created

3. Creation of filed status group by making cost center required entry field
4. Assign new filed status group in GL expenditure accounts
5. Creation of cost centers.
6. Creation of cost center groups.
7. Creation of cost element groups
8. To enter exchange rate for type M for INR to Euro
9. Posting of transaction in FI
10. To view cost center wise report.
11. To view CO documents
234
1. A) Creation of primary cost element at FI area Use to
FS00 – GL Masters creation
Give the GL account number: 400100 Salaries Account
Company code :
Form the menu select GL Account display
Now select edit cost element button
Valid from date :01.04.-
To date :31.12.9999 comes automatically
Enter
Cost element category : Select 1 (Primary cost / cost reducing revenues)
Save

1. B) Creation of Primary cost element at CO area:

Use T-Code FS00

Path: Accounting- Controlling- Cost element accounting-Master data-Cost element –

Individual processing-Create primary ( KA01 )

Cost element : 400300 Rent Account

Valid from :01.04.- to 31.12.9999
Enter
Cost element category :1 (primary cost /cost reducing revenue)
Save

1. C) Automatic creation of primary cost elements:

1) Marked default settings (OKB2)

path : SPRO-Controlling-Cost element accounting-Master data – Cost elements –

Automatic creation primary and secondary cost elements-Make default settings.(T-Code
is OKB2)

Give the chart of Accounts:

Enter
Account from :400301
Account to :499999
Cost element category select 1
Save
Press enter to save in your request

Create batch input session (OKB3)

Same path as above
Give the controlling area :
Valid from :01.04.-
Valid to :31.12.1999
235
 Session name : (This is text field)
Execute

Execute batch input session (T-code is SM35)

Same path as above

Select session name :
Select process button
Select session :

Select display errors only radio button Select

process button
We get a message processing of batch input session completed. Ignore the
message & select exit batch input button

Display primary cost elements created (KA03)

Path: Accounting-Controlling-Cost element accounting-Mater data-Cost element –

Individual processing – Display- (T-Code is KA03)

Select drop down button beside cost element

Give the Controlling Area:
Enter

Creation of field status group by making cost center required entry field: (T-Code
is OBC4)

Select field status variant:

Double click on filed status groups folder

100000 equity share capital G001 We can’t make cost center required for
balance sheet accounts

400100 Salaries Account G001

For G004 we make cost center required and
assign in salaries account (i.e in expenditure
accounts)

Double click on field status group G004 cost accounts

Double click on General data
Text make it required entry field
236
 Select next group button
Cost center select required entry filed
Select next page or page down button two times.
Business area make it option entry filed
Save
Press enter to save in your request
Assign group new field group in GL expenditure accounts (FS00)

Give the GL account 400100 salaries account

Company code :
From the menu select GL account change select create / Bank / Interest tab Filed
status group change to G004
Save
Give the GL Account No.400300 Rent A/c
Company code :
From the menu select GL account change
Change field status group to G004
Save

Creation of cost centers:

1. Cost Centers are the organizational units within a controlling area that represents a location
where costs occur.
2. Organizational divisions can be done on the basis of functional, settlement-related, activity-
related, region/section/department related, and/or responsibility-related, to monitor actual
and plan figure standpoints, Where cost is captured

Path: Accounting-Controlling-Cost center accounting-Master data-Cost center-

Individual processing-create (T-Code is KS01)

Cost center : Dept A

Valid from :01.04.- to 31.12.9999
Enter
Give the name : Dept A
Give the description : Dept A
Person responsible :Mr.A
237
Cost center category : Select 1 production
Hierarchy area : select
Business area :
Currency :INR
Select save button or Ctrl+S
Ignore the warning message press enter
One more cost center : Dept B
Valid from :01.04.- to 31.12.9999
Reference cost center : Dept A

Controlling area :
Enter
Change the name to Dept B
Change the description to cost center Dept B
Change the person responsible : Mr B
Other fields are common
Select save button
Ignore the warning message press enter
Cost center : Dept C
Valid from :01.04.- to 31.12.9999
Reference cost center : Dept A
Controlling area :
Enter
Change the name to : Dept C
Change the description to cost center : Dept C
Change person responsible to Mr.C
Cost center category : Select to 2 (service cost center)
Select save button or Ctrl+s
Ignore the warning message press enter

Creation cost center groups:

Hierarchy :
Cost centers Dept A Dept B Dept C Dept X Dept Y Dept Z
238
 Category Production Prod Service Production Production Service
Business Area HYD HYD HYD BGL BGL BGL

If we want to see all cost centers data – (Hierarchy)

If we want to see production cost centers data – Create a cost center group and assign
Dept A . Dept B, Dept X and Dept Y.

If we want to see HYD cost centers data cost – cost center group and assign Dept A, Dept b
and Dept C

If we want so settled production cost centers data – create A cost center group and assign
Dept A and Dept B

Path : Accounting – Controlling – Cost center accounting – Master data- Cost center
group – Create (T-Code is KSH1)

Give the cost center name :

Enter
Description Hyderabad production cost centers
Select Edit Cost Center Insert cost center button
Select the cost centers Dept A
Dept B
Save

Creation of cost Element group:

FI : Account groups Personnel cost CO: Dept wise personal cost or

Administration

400100 salaries Create cost element group personnel and

assign 400100 -400199
400101 Wages

400102 Bonus

400103 Staff welfare and Administration Create cost element group administration
and assign 400300-400399
400300 Rent
400301 Telephone exp
400302 Petrol exp In the report center Dept A Dept C
Or
Cost center GRP
Cost element
239
 Or
Cost element GRP personnel
administration

Path: Accounting –Controlling-Cost center accounting-Master data-Cost element

group –Create (T- code: KAH1)

Cost element group name : (________ )

Enter
Description : Administration expenses for
Select insert cost element button (Shift+F4) (Edit –Cost element –Insert cost element)
From 400300 to 400399

240
Save

To enter exchange rate for type M for INR to EURO (T-Code is OB08)

Select new entries button

Exchange rate type : M (Average rate)
Valid from :01.10.-
From currency : INR
To : EUR
Direct quotation :0.02
Select save button or Ctrl+S
Press enter to save in your request

Posting of transaction in FI T-code:F-02

Give the document date : Today’s date

Type :SA
Company code :
Posting key :40
Account :400100 salaries account
Enter
Give the amount :500000
Cost center : Dept A
Text : Salaries posting

One more expenditure

Post key :40

Account :400300 Rent account
Enter
Amount :100000
Cost center : Dept A
Text : Rent posting
Posting key : 50
Account :200105 SBI current account
Enter
Amount :*
Business area :
Text : Expenditure posting
From the menu select Document Simulate
Save
241
To view cost center wise report:

Path: Accounting –Controlling-cost center accounting –Information system-

Report for cost center accounting-Line items –Cost centers: Actual line items (T-
code :KSB1)

Cost center select Dept A (if you want change the posting dates)
Select execute button
Keep the cursor and the first line item
Select document button
Select back arrow
Select change layout button (Ctrl+F8)
Select Document no. under column set
Select value in reporting currency under displayed columns
Select left arrow or show selected filed button
Select reference document no. under column set
Select value in report current under displayed columns
Select left arrow
Select business transition under column set
Select document no. under displayed columns
Select left arrow
Enter

To view co documents:
Path : Up to reports for costs center accounting path is same -Line
items – Co documents :Actual costs (T-code is KSB5)

Document no. :1 to 100000

Execute
Select folder button for document no.1

Report co line items:

Business transaction
RKU3 FI doc.13
242
001 400100 Salaries 500000 Dept A 150000 Dept B
50000 Dept C

Report co line item

002 400300 Rent 100000 Dept A
003 200105 SBI 600000

Report co line item

Transfer document wise /line item wise, transfer line item wise
No FI document will be generated
Only document will be generated

Path: Accounting – Controlling-Cost center accounting –Actual postings-

Report line items-Enter (T-code is KB61)

Select document no. :13

:COM
PAN
Company code Y1
Fiscal year :-
Execute
Double click on line item no.1
Amount under new account assignment 150000
Cost center : Dept B
Select new item button
Select next button
Amount under new account assignment 50000
Cost center : Dept C
Save

Go and see the cost center report KSB1

Give the cost center Dept A

Select execute button
To view cost element wise to total
Select cost element column
Select sub totals button
(Note: That is dues cost element wise total)

Repot costs (Business transaction RKU1)

This is used when we split a cost center in to number of cost centers or wrong cost
center postings.
No FI document will be
generated Only CO document
243
will be generated
Transfer cost element wise (GL account wise)

Path : Accounting-Controlling-cost center accounting –Actual postings-

manual reporting of costs – Enter (T-Code is KB11N)

Cost center (old) : Dept A

Cost element 400100 Salaries
Amount :100000
Cost center new : Dept C
One more cost center (old) : Dept A
Cost element :400300 Rent
Amount :25000
Cost center (new) : Dept C
Enter
Select save button or Ctr+S

Period lock:

FI CO
A) Transaction which effect To open To open
FI and CO eg:COIN
B) Transaction which effect No check To open
only CO Eg.RKU3, RKU1
C) Transaction which effect To open No check
only FI Eg.Debit balance
sheet and credit balance
sheet
Sept .08 March Oct - to March 2009

An expenditure posting in FI for September. We can’t post since periods are not
open.

Path: Accounting – Controlling-cost center Accounting-Environment –

Period lock-Chang (T-Code is OKP1)

Controlling area :

Fiscal year :

244
 Select actual button

Select period :01

Select lock period button - save

Set controlling area :(OKKS):

Path :up to Environment the path is same Set controlling area

Give the controlling area :

Enter
Real time integration of controlling with FI on line reconciliation ledger
This is used when we get for 2nd scenario (no.of company codes having one
controlling area ) all the company codes should use same Char of Accounts.

Planning cost center wise

Path :Accounting –Controlling cost center accounting –Planning –Cost and

Activity inputs –Change (KP06)

Version :select 0 (Original budget)

From period :1
To period :12
Fiscal year :
Select next page or page down button
Cost center group :CCSH_
Cost element From :400000
Cost element To :499999

Free Form Bsed

If we select radio button If we select from based radio button
We have to select cost element from the The cost element list in a available on
drop down list and plan against the screen plant against cost elements
Climents

Select form based radio button

Select overview screen button
For cost element 400100 Plan Fixed cost 1500000

245
Distribution key 1 Equal distribution
Select cost element 400100
From the menu select Goto –Period screen
Select back arrow
Fro cost element 400300 Plan fixed cost 960000

Distribution key 1
To plan for Dept B –Select next combination button
To go back to previous dept –select previous combination button
Save

To view variance report cost center wise

Path : Accounting – Controlling-Cost center accounting –Information system –

Reports for cost center accounting –Plan /Actual comparisons –Cost centers:
Actual /Plan/Variance (T-Code is S_ALR_87013611)

Controlling area :
Fiscal year :-
From period :10
To period :10
Plan version :0
Cost center Value :Dept A
Execute
Keep the cursor on Salaries A/c actual costs
amount Select call up report button
Double click on cost centers: Actual line items keep the cursor on the first line
item. Select document button

ONLINE RECONCILIATION LEDGER

Reconciliation used when

when number of company codes having one controlling area – 2nd
Scenario It can be at controlling area
All the company codes should use the same Chart of Accounts
due to online reconciliation ledger, it generated in a document in FI

246
 Controlling area
|
------------------------------------------------------------------------
| |
Company code company code
| |
------------------------------------ ------------------------------------
| | | | | |
Dept A Dept B Dept C Dept X Dept Y Dept Z

If salaries paid and posted FI at (F-02)

Salaries A/c
----------------------------------
100000 |
|
Out of 100000 salaries 20000 belongs to company code

If we use the reconciliation account at cost center level and the 20000/- is
transfer to company code COMPANY 2 (Dept X) it passes the entry in
financial automatically
Here Reports at – No FI records
In Company 1 Books
Company 2 Dr 20000
To Salaries a/c 20000
In company 2 books

Salaries account Dr 20000

To company1 a/c 20000

Customization at Finance:

To copy company code 1 customization including accounting to company Code 2

Path: SPRO-Enterprise structure – Definition –Financial accounting –Edit,

copy, Delete, Check company code(T-Code: EC01)

Double click on copy, delete, check company code

From the menu select organization object – copy organization object
From Company code :1
To company code :2
Enter

247
Select Yes for the message (for copy the GL
accounts) Select No button allocate a different
local currency Ignore the message press enter
Select create request button
Short description: Customization for Birla Steel
Limited Press enter
Enter once again to saving the request
Go on press enter till you got the message company code 1 copied to 2 without 75
number range object
Ignore the message press
enter Select back arrow
Double click on edit company code data
Select position button
Give the company code :
Enter
Select company code :
Select address button
change the company name to :
Enter
save and Save in your request button
Assign company code to company

Path :SPRO-Enterprise structure-Assignment –Financial accounting-

Assign company code to company

Select position button

Give the company code :
Enter
For the company code :
Select save button or Ctrl+S
Press enter to save in your request

Document type SA should allow inter company postings: (OBA7)

Select type : SA
Select details button

248
Select inter company postings check box
Save
Press enter to save in your request

Creation of GL Masters FS00

Company 1
Books Company 2 Books
1) FI/CO reconciliation account under only 1)FI/CO reconciliation account under any
expediter group which should not be a cost expenditure group which should not be a
element 400150 –Personnel group cost element 400150 personnel group
2) Birla Steels limited, current assets, 2)Birla Industries Limited current Assets,
Loans & Advances 200160 Birla Steel Loans & Advances 200161 – Birla
Limited Industries Limited

Same chart of accounts chart of accounts ------chat of accounts:

When we use same chart of accounts, account description should be same
in all the company codes.

In COMPANY 2 books – If we create account No.200160 – It takes Birla Steels

Limited- we can not crate our account in our books.

Creation of GL masters FS00

Give the GL account no. :400150

Company code :
Select with template button
Give the GL account o. :400100 Salaries
Company code :
Enter
Change short text & GL account long text to FI/CO reconciliation account Select
create / bank /interest tab
Field status group change to ‘ICCF’ CO < -> FI reconciliation posting Save
Give the GL Account No.200160
Company code :
Select with template button
Give the GL Account No.200100 Cash A/c
Company code :
249
Enter
Select type/Description /tab
Change short text GL account long text to
Select create / Bank/Interest tab
Filed status group change to G067 Deselect
relevant to cash flow check box Save
Give the GL account No.400150
Company code :
Select with template button
Give the GL account 400150
Company code :
Enter & Save
Give the GL account 200161
Company code :
Select with template button
Give the GL account 200160

Company
Enter
Select type / Description tab
Change short text +GL long text to
Save

Prepare cross company code Transaction (T-Code is OBYA)

Path :SPRO-Financial accounting-GL accounting –Business transactions-

Prepare cross company code transactions

Company code 1
Company code2
Enter
Posted in
COMPANY 1
cleared against
COMPANY 2
Debit posting key :40
Account debit :200160
250
Credit posting key :50
Account credit :200160
Posted in
COMPANY 2
Cleared against
COMPANY 1
Debit posting key :40
Account debit :200161
Credit posting key :50
Account credit :200161
Save
Press enter to save in your request

CO customization ( T-Code is OKKP)

Maintain controlling area

Assign company COMPANY 2 to controlling area
Select controlling area :
Select details button
Company code to controlling area: Select cross company code cost accounting
Reconciliation ledger document type :SA (GL accounts document)
Double click on activate components / control indicators folder
Select company code validation check box
Double click on assignment of company codes folder
Select company code :
Select copy as button
Change the company code to
Enter & save
Ignore the warning message press enter

Activate reconciliation ledger (T-Code KALA)

Note: Follow through path

Path:SPRO –Controlling –Cost element accounting-Reconciliation ledger-

Activate deactivate reconciliation ledger

Double click on activate reconciliation ledger

Controlling area :
Select Execute button
Ignore the warning message press enter
251
Define adjustment accounts for reconciliation posting (T-Code is OK17)
Same path
Double click on define accounts for automatic postings
Select change account determination button
Save
Reconciliation account: Give the account no.400150 FI/CO
Save
Press enter to save in your request

FI CUSTOMIZATION

Define variant for real time integration:

Path :SPRO-Financial accounting (new) Financial accounting global setting

(new) – Ledger-Real time integration of controlling with financial accounting –
Define variants for real time integration

Select new entries button

Variant for real time integration B1
Select real time integration active check box

Select account determination active check box

Key date active from :01.04.-
Document type :SA
Ledger group (FI) :0L
Text variant for :
Select cross company code check box
Select cross business area check box
Select cross profit center check box
Save
Press enter to save in your request

Assign variants for real time integration to company code:

Same path.
Select new entries button
252
Company code :
Variant :B1
Company code :
Variant :B1
Save
Press enter to save in your request

Creation of cost center for company code COMPANY 1 (KS01)

Give the cost center department X

Valid from :01.04.-
To date :31.12.9999
Reference cost center :Dept A
Controlling area :COMPANY 1
Enter
Change the name to :Dept X
Change the description to cost center dept X
Change company code to COMPANY 2

Select save button or Ctrl+s

Ignore the warning message press enter

Repost costs (F-02)

Cost center old :Dept A

Cost element :400100 Salaries
Amount :20000
Cost center new Dept X
Save

To make text filed optional for field status group G004 cost accounts(T-Code is
OBC4)
Select field status variant for
Double click on field status groups
folder Double click field status G004
Double click on General data
253
Text make it optional entry field
Press enter to save in our request

Go and see the FI documents (T-Code is FB03)

Select document list button

Give the company code :
Enter the date :From date To Date
Execute
Double click on document no.
Select back arrow
Chang the company code to
Execute
Double click on document no.

254
 CROSS COMPANY CODE POSTINGS

Company code :COMPANY 1 COMPANY 2

Outstanding expenses of COMPANY 2 paid by
COMPANY 1
COMP
ANY 2 Dr 25000 Outstanding 25000
To Bank 25000 To COMPANY 1 25000

Paying company code : COMPANY 1

:COMP
Credit Bank ANY 1 25000
:COMP
Debit outstanding exp ANY 2 25000

Use the T-Code :F-02

Give the document date :Today’s date

Type :SA
Company code :
Posting key :50
Account no. :200105 SBI CA
Enter
Amount :25000
Business area :COMPANY 1H
:outstanding expense payment on behalf of
Text COMPANY 2
Posting key :40
Account no :100500 out standing exp.
New company code :
Enter
Amount :*
Business area :COMPANY 1H
Text :+
From the menu select documentSimulate
Double click third line item
Business area :COMPANY 1H
Text :+
Select next item button
Business area :COMPANY 1H
Text :+

30
255
 Select save button or Ctr+S
Posting by
Company code :
Cross company code no. :15 08

FI posted by
Company code :
Cross company code no. :2 08

By viewing the cross company code document number – We know which company code
has initiated the posting.

Select continue button

Accrual orders (Imputed cost calculation)

This is used for month end provision only in CO

This is used for irregular expenses like Bonus
Cost element category should be 3
Accrual/ Deferral per surcharge
Define CO.No.range in interval for business

Transaction :KAZ1 – Actual cost center accrual

FI Month end provision

1. Accrual / Deferral document
A. Bonus provision for Nov
30.11.- Bonus A/c Dr.10000
To Out standing exp. 10000 Dept A
B. Reverse next month 1st 01.12.-
01.12.- Outstanding Exp. Dr.10000
To Bonus A/c 10000 Dept A

C. Bonus provision for Dec.

31.12.- Bonus A/c Dr 20000
To Out standing exp 20000 Dept A

2. Open item management

A). Bonus provision for Nov.
30.11.- Bonus A/c Dr10000
To Outstanding exp. 10000 Dept A
B). Bonus provision for Dec.
31.12.- Bonus Dr.10000
To Outstanding exp 10000 Dept A

256
Month end provision

Number of companies will not prepare profit & loss and Balance sheet every
month, the will not make provision in the books every month in year end,
companies follow accrual basis of accounting. They make provisions for the
whole year.

Expenditure for all the months Less (other than March)

Expenditure for March More

In SAP when we take production an accounting entry will be generated

automatically – Finished goods valuation will be based on costs for the month.

Stock valuation will be accrual orders Lower in all month other than March

Accrual orders Higher in March

Create overhead structure

Salaries 100000
Bonus -10% on salaries 1000 Debit cost center credit cost center
Dep Dummy (No accounting entry)

In the month end Dept A

Bonus 1000 allocation to Dept A costs will

be allocated to production orders –
There by Dept A will be zero-
production valuation will be correct.

Dept Dummy
Bonus 1000

257
In the year end – in FI when we make bonus provision
for the whole year.

31.03.2009 Bonus A/c Dr 1200000

To Outstanding 1200000 Dept Dummy

Dept dummy values in the year end

31.03.2009 Dept dummy 1200000 April to March 10000*12 = 120000

====== =====

In the year end Dept dummy values will be zero.

Creation of GL master bonus account – personnel

cost (FS00) group:-

Give the GL Account No. :400105

Company code :
Select with template button
Give the GL account no. :400100 (salaries)
Company code :
Enter
Change short and GL account long text to Bonus
account
Save
Select edit cost element button (F8)
Valid from date :01.04.- to 31.12.9999
Enter
Cost element category : Select
3 accrual deferral per surcharge
save

Creation of cost center – Dept dummy (KS01)

Give the cost center : Dept dummy

Reference cost center : Dept A
Controlling area :
Enter
Change name to Dept dummy
Change description to cost center: Department dummy
Select save button
Ignore the warning message press enter
258
Maintain overhead structure:

Path:SPRO-Controlling –Cost element accounting-

Accrual calculation –percentage method-maintain
overhead structure (T-Code is KSAZ)

Select create over head structure button (F7)

Over head structure :
Description :overhead structure
Select save button
Row Base
10 B1
Enter
Give the name salaries
Select create button
Row O/H rate (Over head rate) Description FR To CR
20 B2 Bonus 10 10 B3

Enter
Give the name Bonus
Dependency :KRS1(controlling area)
Select create button
Save
Ignore the message press enter
Keep the cursor on overhead structure
COMPANY 11 Select assignment button
(F5)
Controlling area :COMPANY 1 Select
actual accrual radio button
Select continue button

Valid from valid to overhead structure

1 - 12 -COMPANY 11

Save
Double click on overhead structure COMPANY 11
Keep the cursor on B1
From the menu select Goto calculation base
From cost element 400100
Save
Kept the cursor on B2

259
From the menu select Goto overhead rate

Valid from Valid to Actual overhead

1 - 12 - 10%
Save
From 10 To 10 Crdit B3

Keep the cursor on B3

From the menu select go to credit
Company code :COMPANY 1
Business area :COMPANY 1H
Valid to :12 -
Cost element :400105
Cost center :Dept Dummy
Save

260
Define CO.no range interval for the business transaction KAZ1-Actual cost Center
accrual:(T-Code KANK)

Give the controlling area :COMPANY 1

Select maintain group button
Double click on KAZ1- Actual cost center accrual
Select CO.No range interval for COMPANY 1 check box
From the menu select Edit-Assigned element group
Save
Ignore the warning message press enter

1. Posting of salaries for the month of August F-02

Give the document date end posting date :03.08.-

Date :03.08.-
Type :SA
Company code :COMPANY 1
Posting key :40
Account no. :400100 Salaries A/c
Enter
Ignore the warning message press enter
Amount :100000
Cost center Dept A
Text :Salaries posting
Posting key :50
Account no :200105 SBI current Account
Enter
Amount :*
Business area :COMPANY 1H
Text :+
From the menu select document Simulate and save

261
Accrual calculation (KSA3)
Accounting – Controlling –Cost element accounting-Actual postings –Accrual
calculation
select cost center radio button
give the cost center : Dept A
period :5
fiscal year :-
deselect test run check box
select details list check box
Execute
Select next list level button

Go and see the cost center report KSB1

Give the cost center :Dept A

Posting date :01.08.- to 31.08.-
Execute
Select back arrow
Give the cost center : Dept dummy
Execute

Bonus provision in the year end in FI Transaction F-02

Give the document date & Posting :31.03.2009

Type :SA
Company code :COMPANY 1
Posting key :40
Account no. :400105 bonus account
Enter
Ignore the warning message press enter
Amount :10000
Cost center :Dept dummy
Text :Bonus provision for the year --09
Posting key :50
Account :100500 outstanding exp.
Enter
Amount :*
Business area :COMPANY 1H
Text :+
Document – Simulate and save

Go and see the cost center report KSB1

Give the cost center :Dept dummy
Posting date :01.04.- to 31.03.2009
262
Execute
STATICALLY KEY FIGURES (SKF)

This is used as a basis for allocation of costs from one cost center to other cost
centers.
Eg. Employee / Area/ Telephone calls
Dept C Dept A Dept B
(service Dept) (Production departments)
Salaries 500000 No.of employee of A and B
Rent 100000 Sq.meter are of A & B
Telephone Exp25000 No.of telephone calls of A & B
Enter CO. No range interval for the business transaction.

RKS (Enter statistical key figures)

SKF category Fixed Total

Fixed Total
If we choose fixed, values If we choose total
To SKF are common for all months in the We have to enter values for SKF, for each
year, if we don’t make changes in between and every month
Eg: Employee / Area Eg: Telephone calls

No.of Employees No.of Telephone calls

April - 100 100 Aprl - 1000
May - | | May 1500
June | | June 2000
July | | July
Aug | | Aug
Sep | | Sep
Oct | 150 Oct

Dec | | Dec
Jan.’09 | | Jan 2009
Feb | | Feb
March | | March

37

263
Define co.no range interval for the business transaction RKS-Enter Statistical key
figures T-Code is (KANK )

Give the controlling area : COMPANY 1

Select maintain groups button
Double click on RKS
Select Co.No.range interval for COMPANY 1 check box
From the menu select Edit Assignment element group.
Save
Ignore the warning message press enter.

Create Statistical key figures

Path :Accounting – Controlling –cost center accounting master Data-Statistical key

figures – Individual processing – Create (T-Code is KK01)

Give the statistical key figure :EMP

Enter
Give the Name :Employee
Statistical key figure unit of measurement : Select EA each
Key figure category :Select fixed values under radio button
Save

Path : Accounting –Controlling – Cost Center accounting –actual postings-statistical

key figures-Enter (T-Code is KB31N)

Received cost center : Dept A

Statistical KF : EMP
Total quantity :500
Received cost center : Dept B
Statistical KF :EMP
Total quantity :250
Save

Period end closing

In the month end, we allocate costs from one cost center to other cost centers

264
 Dept C Dept A Dept B
(Service department) (Production departments)

Salaries 500000 no.of employee of A and B

Wages 300000 No.of employee of A and B
Rent 50000 Percentage basis

Basis of allocation can be percentage method statistical key figures method /activity
type (machine hour / labour rate)

Allocation methods:
1. Assessment :
A) Transfer primary cost postings and secondary cost postings.
Dpt X Dept C Dept A Dept B
Wages 100000 Salaries 500000 Salaries 400000 Salaries 300000
Wages 300000
Rent 50000 Add all 85500 Add all from C 95000 10%
All from Dept X 100000
---------- ----------- -----------
Less 950000 1255000 395000
===== ======= =======

Allocation
Primary cost postings
Secondary cost postings

B) Receiving cost centers can’t track original cost element Dept A and B will not show the
transfer value –how much salaries wages and rent.
C) Define Co.No.range interval for business transaction RKIU actual overhead
assessment.

2. Distribution
A) Transfer only primary cost postings
B) Receiving cost center can track original cost elements.
C) Sender should be only cost center
D) Define Co.No.range interval for the business transaction RKIV actual overhead
distribution.

3. Periodic reposting:
A) Transfer only primary cost postings
B) Receiving cost center can track original cost elements.
C) Sender can be a cost center or interval order.
D) Define Co.No.range interval for the business truncation. RKIB
265
periodic reposting.

266
 4. Indirect activity allocation.
A)Transfer only primary cost postings.
B) Receiving cost center can track original cost elements.
C) Sender should be only cost center.
D) Transfer quantities as well as values.
E) Define Co.No.range interval for the business truncation.
RKIL Indirect activity allocation .

Which over method we follow, we have to create cycles.

When the allocation basic is different for the cost elements in the cost center, we have
to create number of cycles for number of segments for a cycle.

Dept C Dept A Dept B

(Service Department) (Production departments)

Salaries 500000 No.of employees of A and B

Wages 300000 No.of employees of A and B
Rent 50000 Percentage basis

Option 1:

Cycle 1 Cycle 2
(Salaries and wages allocation) (Rent allocations)
| |
Segment 1 Segment 1
Option 2

Cycle 1
|
----------------------------------------------
| |
Segment1 Segment2
(Salaries and wages allocation) (Rent allocation)

267
 ASSESSEMENT

1. Creation secondary cost element : i.e (that is) assessment cost element :

Path: Accounting –Controlling –Cost element accounting-Mater data-Cost element

–Individual processing –Create secondary (KA06)

Give the controlling area :COMPANY 1

Enter
Cost element :1000000
Valid from :01.04.- to 31.12.9999
Enter
Name and description :Assessment cost element.
Cost element category :42 (Assessment )
Save

2. Define Co.No.range interval for the business truncation- RKIU-Actual overhead

assessment
Use the Truncation code :KANK

Give the controlling area :COMPANY 1

Select maintain groups button
Double click on RKIU
Select Co.No.range interval for COMPANY 1 check box
From the menu select Edit –Assignment element group.
Ignore the message press enter

Creation of assessment cycle:

Accounting –Controlling –Cost center accounting-Period and closing –Current

settings–Define assessment (T-Code S_ALR_87005742)

41

268
Give the cycle :COMPANY 11
Start date :01.04.-
Enter
Text : Assessment cycle
Select iterative check box.
Select save button or Ctrl+S
Press enter to save in your request
Select iterative check box
Dept C Dept A 60% 300000 54000
Salaries 500000 Dept B 30% 150000 27000
Less :Allocation 500000 Dept Z 10% 50000 9000
--------
0
Add: Allocation 90000
Less :Allocation 90000
-------
0
Add: Allocation 1800

Dept Z
Wages 400000 Dept X 50%225000 4500
Add: Allocation 50000 Dept Y 30%135000 2700
--------
450000 Dept C 20%90000 1800
Less : Allocation 450000
-------
0
====

We have to run number of items to make both cost center values zero. If we select
interactive check box, system will run number of items automatically till both cost center
values become zero.

Select attaché segment button.

Segment name : Segment 1
Description : Salaries allocation
Assessment cost element :select 1000000
Sender rule :select posted amounts
Share in % :100
Select actual value origin radio button
Receiver rule :Select variable portions
Variable portion type :Select actual statistical key figures

269
Select sender / receivers tab
Sender cost center :Dept C
Under Cost element :400100 (Salaries a/c)
:COMPANY
Under Receiver cost center group 1HYDPROD
Select receiver tracing factor tab
Statistical key figure :EMP
Select receiver weight factors tab
Select save button or Crl+S
Press enter to save in your request
Select attaché segment button
Segment name segment2
Description :Rent allocation
Assessment cost element :1000000
Sender rules :Posted amount
Sharing in % :100%
Select actual value origin radio button
Select receive rule :Fixed percentages
Select senders/ receivers tab
sender cost center :Dept C
Cost element :400300 (Rent )
Receiver cost center group : COMPANY 1HYDPROD
Select receiver tracing factor tab
Dept A 70
Dept B 30
Save
Press enter to save in your request
Go and see the cost center Report (T-Code is KSB1)

Give the cost center :Dept C

Posting date :01.10.- to 31.10.-
Execute
Select cost element column
Select sub totals button

270
Dept C A B
Salaries 1500000 No.of employees
500 250
100000 50000
Rent 25000 Percentage basis
70 30
17500 7500

Execution of assessment cycle:

Path :Accounting –Controlling –Cost center accounting –Period end closing-

Single functions-Allocations –Assessment (KSU5)

Give the period :7 (October)

Fiscal year :-
Deselect text run check box
Select details list check box
Cycle select :COMPANY 11
Execute
Select receiver button

INTERNAL ORDERS

This is used to view costs for a

specific task. Eg. A) Vehicle wise
running expenses
Management has to task decision whether to sell the (or) keep the vehicle in
company

A) petrol expenses for the vehicle B) Repairs to the vehicle

It we take GL accounts in FI –we will not create each vehicle wise petrol
expenses and repairs account.

In cost center accounting –vehicles will be under administration cost center and the
petrol expenses repairs and administration expenses will be posted to
administration cost center.

By creating vehicle as an internal order we can get the costs.

271
 B) Telephone expenses:
If we want to know telephone wise expenses in FI –we will have one account for
all telephones.
If we take cost center –It will be entered in administration cost center - We can
not get telephone wise expenses directly.
By creating telephone as an order we can get telephone wise expenses.

C) Production order costs

In a month no. of production orders will be executed. Some production orders
consume more raw material and same production orders consume less raw
material. If FI we have only GL account raw material consumption – We don’t
know order wise consumption.
By crating production order, we can get order wise costs.

D) Exhibition costs
Company is conducting an exhibition

Salesmen salaries One account

Conveyance Different account
Advertisement Different account
Discounts Different account
We don't know the exhibition costs by creating an order we can get exhibition costs

Orders will be of 2 types

1)Real orders 2)Statistical orders

Settlement is possible settlement not possible

We can settle order statistical orders are used for
decision making

272
 To Cost Center (Internal settlement) From Co to Co
GL Accounts Assets
(External settlement ) (From CO to FI)
When we transfer from cost center –To cost centers allocation by assessment /
Distribution periodic reposting / Indirect activity allocation.

When we transfer from Internal order settlement.

Dr 50000 Cost center Dept Order Tel no.66110883
To Bank 50000
The cost will be allocation to production orders from CO
In the production order valuation we can’t take.(50000+50000)
We have to take only one time 50000

When we are posting to no. of cost objects are will be real and others will be statistical.

At the time of order creation there is a statistical order check box.

A) When we select statistical order is statistical order check box. Order is
statistical (Automatically cost center will be real)
B) If we don’t select statistical order check box
Order is real (Automatically cost center will be statistical )

Statistical order :
Telephonewise expenses order we create as statistical order.

Telephone expense Dr 50000 Cost center Dept A

Order Telephone no.66611983 Statistical
To Bank 50000

Cost Center Dept A

Telephone expenses 50000 Allocation to paid order 50000

Cost center Dept A – Zero

In the month end we allocation costs from Dept A to production orders there by cost
center Dept A will be zero.

Order telephone no.66611983

Telephone expenses 50000

Management can see telephone wise expense at any point of time afterwards.

Suppose we create order as real order

Telephone expenses Dr 50000 Cost center Dept A
To Bank 50000 order telephone no.66611983 Real

Cost center c data

Telephone Expenses 50000 Order Telephone no.6661987
273
Telephone expenses 50000 Allocation to production 50000

Order will be zero

In the month end we allocate cost from order telephone no.66611983 to production
order there by order will be zero.

Afterwards management can’t see telephone wise expense.

Creation of order types:

Path : SPR O –Controlling –Internal orders – order master data-Define order

types (KOT2_OPA)

Select new entries button

Order category :Select 01 Internal order (Controlling)
Enter
Order type :COMPANY 1T
Description :Telephone orders for COMPANY 1
Planning profile :select 000001 (General budget /plant profile)
Object class :Select Over head cost
Select release immediately check box
Save
We get message no.range not processed
Ignore the message press enter
Select assign /change interval button beside no.range interval

274
Double click order type :COMPANY 1T
Select motor pool A-ZZZZZZZZZZZZ(External)
From the menu select Edit Assign element group
Save
Ignore the message press enter

Creation of filed status group by making cost center and internal order
required entry fields (OBC4)

:COMPAN
Select field status variant Y1
Double click on field status group folder
Select field status group G004 cost accounts
Select copy as button
Change the filed status group to G002
Change the text to cost accounts (CC & IO required) IO =Internal order
Enter
Save CC=Cost Center
Press enter to save in your request
Double click on G002
Double click on additional account assignment
CO /PP order make it required entry field.
Save

Creation of GL master telephone expense (FS00)

Give the GL account no.400305

Company code :COMPANY 1
Select with template button
GL account 400300 Rent account
Company code :COMPANY 1
Enter
Change short text and GL a/c long text to Telephone expenses
Select crate / Bank/Interest tab

275
Change the filed status group to G002
Save
Select edit cost element button
Valid from date :01.04.-
Enter
Cost element category :Select 1
Save

Creation of Internal orders:

Path :Accounting –Controlling-Internal orders-Master data-Special functions –

Order –Create (T-Code is KO01)

Order type :Select COMPANY 1T

Enter
Order no. :COMPANY 1 66611983 (Telephone no.)
Description :Telephone order no.66611983
Company code :COMPANY 1
Business area :COMPANY 1H
Select control data tab
Select statistical order check box
Save
One more order
Order type :COMPANY 1T
Enter
Order :COMPANY 166611984
Description :Telephone order no.66611984
Company code :COMPANY 1
Business area :COMPANY 1H
Select control data tab
Select statistical order check box
Save

276
Creation order group

Up to master data the path is same Order group Create (T-Code is KOH1)
Give the order group name :COMPANY 1HYDTEL
Enter
Description :Hyderabad order group (GRP)for COMPANY 1
Select insert order button(Select menu bar Edit Order Insert Order)
Select to orders :COMPANY 166611983
:66611984
Save

Posting of transaction in FI (F-02)

Document date :Today’s date

Type :SA
Company code :COMPANY 1
Posting key :40
Account no. :400305 Telephone exp
Enter
Give the amount :100000
Cost center :Dept A
Order :COMPANY 166611983
Text :Telephone expenses
Posting key :50
Account no. :200105 (SBI current account )
Enter
Amount :*
Business area :COMPANY 1H
Text :+
From the menu select –Document –Simulate and save

To view internal order wise report

Path :Accounting –Controlling-Internal order-Information system-Reports for

Interval orders -Line items –Order -Actual line items-(Tr. Code is KOBI

Give the order no.COMPANY 166611983

277
Remove the order group

Execute
Keep the cursor and telephone expense line item select document button

Planning order wise

Path :Accounting –Controlling –Internal orders –Planning –Cost and activity inputs –
Change (KPF6)
Version :0
From period :8 (November)
To period :8
Fiscal year :-
Select next page or page down button
Give the order no. :COMPANY 166611983
Cost element :400305 Telephone expense
Select from based radio button
Select view screen button
Cost element :400305
Total plan cost :75000
Select save button or Ctrl+S

To view variant report order wise

Path :Accounting Controlling-Internal order –Information system-Reports for internal

order-Plant /Actual comparisons-Order :Actual / plan / Variance (S_ALR_87012993)

Controlling area :COMPANY 1

Fiscal year :-
From period :8 (Current month)
To period :8
Pant version :0
Order values :COMPANY 166611983
Execute

Real orders:
They are used for vehiclewise expenses

278
Petrol expenses Dr 50000 Order no.AP9Z1234

279
 To Bank 50000

In the month end:

Cost center Dept A
Order no.AP9Z1234 Settle to Cost center Dept B
Cost center Dept C
Settlement can be percentage basis / ratio basis /Amount basis

Order No AP9A1234
Petrol expenses 50000 Allocation Dept A 25000
Dept B 15000
Dept C 10000
------- ------
50000 50000
==== ====

Order will be zero

Petrol expense Dr 50000 Cost center:Common

Order No.AP9Z1234 Statistical
To Bank 50000

In the month end from cost center common allocate to Dept A, Dept B and Dept C by assessment
/ Distribution / Periodic posting
/Direct activity allocation.

Cost center common

50000 Allocation to Dept A 25000 Dept B 15000
Petrol Expenses Dept C 10000
--------- -------
50000 50000
==== =====
Cost center will be zero

Order no.AP9Z1234
Petrol expense 50000
=====

Management can see

vehicle wise expenses at any point of item afterwards.

Creation of filed status group by making only internal order required entry filed
(OBC4)

280
Select filed status variant :COMPANY 1
Double click on filed status group folder
Select field status group G002
Select copy as button
Change field status group to G010
Change the text to cost accounts (IO required )
Enter and save
Press enter to save in your request
Double click on G010
Double cock additional account assignments
Cost center make it optional entry field Save

Creation of GL master petrol expense under administration group (FS00)

Give the GL Account no. :400310

Company code :COMPANY 1
Select with template button
Give the GL account no.400300 Rent account
Company code :COMPANY 1
Enter
Change short text and long text to petrol expenses
Select create/bank /interest tab
Field status group :G010
Save
Select edit cost element button
Valid from date :01.04.-
Enter
Cost element category :01
Save

Creation of secondary cost element i.e. Statement cost element (KA06):

281
Give the cost element :1000001
Enter
Name and description settlement cost element
Cost element category :Select 21 internal settlement
Save

Maintain allocation structure:

Path :SPRO-Controlling –Internal orders-Actual posting- Settlement-

Maintain allocation structures

Select new entries button

Allocation structure :B1
Text :COMPANY 1 allocation structure
Save
Press enter to save in your request
Select :B1
Double click assignments folders
Select new entries button
Assignment :01
Text :Vehicle expenses settlement
Save
Select :01
Double click on source folder
From cost element :400310 Petrol expenses
Save
Press enter to save in your request
Double click on settlement cost elements folder
Select new entries button
Receiver category :Select CTR cost center
Settlement cost element :1000001
Save

54

282
Petrol expenses will be settled to cost center by using secondary cost element settlement
cost element.
Through orders.

Maintain settlement profiles:

Same path

Double click on maintain settlement profiles

Select new entries button
Settlement profiles :COMPANY 11
Description :COMPANY 1 settlement profile
Allocation structure :B1
Select to be settled in full radio button
Double click on CTR cost center
Select % settlement check box
Select equivalence number check box
Select amount settlement check box
Under valid receivers
For cost center :Select settlement required
Max.no. distribution rules :999
Residence time :12 months
Save
Press enter to save in your request

Rule 1:
Order no.AP9Z1234 settle cost center Dept A 30000
Petrol expenses 50000 settle cost center Dept B 15000
Dept C 5000

Rule 2
Order No.AP9Z1234 Settle to cost center Dept A 85%
Petrol expenses 50000 Settle to cost center Dept B 10%
5%
Order no.AP9Z1234 settle to cost center Dept 4:
Petrol exp 50000 Dept 3:
Dept 1:

283
Maintain number range for settlement documents:
Go through Same path (T-Code is SNUM)

Select maintain groups button

Double click on controlling area COMPANY 1
Select Standard accounting document check box
From the menu select Edit Assign element group
Save
Ignore the message press enter

Creation of order type (KOT2_OPA)

Select new entries button

Order category :Select 01 Internal order (controlling)
Enter
Give the order type :COMPANY 1V Vehicle order type COMPANY 1
Settlement profile :COMPANY 11
Budget profile :0000001 (General budget profile)
Object class select :Overhead costs
Select release immediately check box
Save
Ignore the message press enter save in your request
Select assign /Change intervals button beside no.range interval
Double click on COMPANY 1V
Select motor pool A-ZZZZZZZZZZZZZZ external check box
From the menu select Edit –Assign element group.
Save
Ignore the message press enter

Define co.no.range interval for the business truncation K0A0-Actual settlement. Use
the transactions code (KANK)

Give the controlling area :COMPANY 1

Select maintain groups button

284
Double click on KOAO actual settlement Select co.no.range interval for
COMPANY 1 check box

Form the menu select Edit –Assign element group. Save

Ignore the warning message press enter

END USER AREA:

Creation of internal order (KO01)

Give the order type :COMPANY 1V
Enter
Give the order :AP9Z1234
Description :Vehicle no.AP9Z1234
Company code :COMPANY 1
Business area :COMPANY 1H
Select control data tab
Deselect statistical order check box
Select settlement rule button
Category :CTR cost center
Settlement receiver :Dept A
Give the percentage :70
One more
Category :CTR
Settlement receiver :Dept B
Percentage :30
Save
Ignore the warning message press enter

Posting of petrol exp F-02

Give the document date :Today’s date

Type :SA
Company cod :COMPANY 1

285
Posting key :40

Account no. :400310 petrol exp.

Enter
Give the amount :100000
Give the order no. :AP9Z1234
Text :Petrol exp.
Posting key :50
Account no. :200105 SBI current account
Enter
Amount :*
Business area :COMPANY 1H
Text :+
From the menu select menu document –Simulate and save

Actual settlement :

Path :Accounting –Controlling-Internal order-Period end closing-Single functions-

Settlement –Individual processing (K088)

Give the order :AP9Z1234

Settlement period :8 (current month)
Fiscal year :-
Deselect test run check box
Select check transaction date check box
Select execute button
Select details list button

Note : Order means overall expenses Eg: Vehicle Expenses

Cost Element means each item wise :Eg.Vehicle expenses for Petrol, Repairs, Driver
salary etc

286
 BUDGETING & AVAILABILITY CONTROL

Planning Budgeting
1. We can plant cost element wise in the 1.Budgeting will be done order wise
order
2. We can do planning period wise in a 2. Budgeting should be done year wise
year (Month wise)
3.Micro level (Lower level) 3. Marco level (High level)
For budgeting SAP has given
availability control
Order no.AP9Z1234
Budget amount 500000

Option 1 Option2 Option 3

Give Give warning Give
Warning To the user Error1
To the user And inform to
Budget manager
If actual amount exceeds 85% of budget 425000
Or
If the variance is above 20000 i.e actual 5200000
Or
Both Whichever activity comes first
Or
If a actual amount exceeds 70% of budget go for option1
If actual amount exceeds 85% of budget go for option 2
If actual amount exceed 100% of budget go for option 3

When we do budgeting it generate a document –We have to give budgeting –No.

range interval only for 04 (Hard coded by SAP)

This is given at client level and not at controlling area level –it is not year specify.

Note : Order Eg.Vehicle Expenses

Cost element :Eg.Vehicle for petrol, repairs,Driver salary etc.,

Maintain no.range for budgeting:

59

287
Path :SPRO-Controlling-Internal orders-Budgeting / availability control-
Maintain no.ranges for budgeting (T-Code is OK11)

Select change intervals button

Define tolerance limits for availability control

Same path
Select new entries button
Controlling area :COMPANY 1
Profile :select 000001 General budget profile
Tr.group :++ all activity groups
Action :select 2 waring with mail to person response
Usage :85
Save
Press enter to save in your request

Specify exempt cost elements from availability control

Same path

Petrol expenses
Repairs
Drivers salary is Fixed cost

We can specify when we post to driver’s salary all with order AP9Z1234 –Even if,
it exceeds 85% of budget no. message need to be given.

It is known expenditure

Select new entries button

Controlling area :COMPANY 1
Cost element :400100 Salaries account
Save
Press enter to save in your request

Maintain budget manager

Same path

Select new entries button

Controlling area :COMPANY 1
Order :COMPANY 1V

288
Object class :OCost (Overhead cost)
User name :SAP user (budget manager)
Save
Press enter to save in your request

Budgeting order wise (END USER AREA)

Path :Accounting-Controlling –Internal order-Budgeting-Original budget –Change

(T-Code is K022)

Order :AP9Z1234
Enter
For the period :500000 (Budget amount)
Over / budget also 500000
From the menu select Extras –Availability: Control –Activate
Save

Posting of petrol expenses (F-02)

Give the document date :Today’s date

Type :SA
Company code :COMPANY 1
Posting key :40
Account no. :400310 Petrol expenses
Enter
Give the amount :350000
Order :AP9Z1234
Text :Petrol expense
Posting key :50
Account no. :200105 SBI current account
Enter
Give the amount :*
Business area :COMPANY 1H
289
Text :+
From the menu select –Document –Simulate and save
Ignore the message press enter

To view in box of the budget manager

Path :SAP Menu Office –Work place (T-Code is SBWP)

Select inbox folder

We get a message accounting document no.

PROFIT CENTER ACCOUNTING

This is used to view Profitability division wise /product wise /location wise if business
area is not use in FI

Idea scenario

Company FI
|
Company code FI
|
Business area FI
(Location)
|
----------------------------------------------------------------------------------------
| | | |
Steel Cement Pharma Co-profit center
Division Division Division Accounting
| |
Product wise Co Profitability
Analysis

Option 1 Option 2
Hyderabad location HYD BGL MOM
| | | |
Steel Cement Pharma Steel cement Pharma

Profitability Profitability Balance sheet

The advantage of profit center accounting is it derives profit center automatically though
derivation rules.
A) In case of expenditure Tough cost centers
B) IN case revenues Automatic account assignment
290
C) In case of balance Though business area

Sheet it items (Applicable for option 2)

Eg:a) At the time of creation of cost center assign profit center

Dept A-Assign profit center steel

b) At the time of posting

wages a/c Dr 500000 Dept A

To Bank 500000
It updates cost center Dept A as well as profit center steel.

We have to create dunning profit center. At the time of posting, when there is no
derivation rules, system updates dummy profit center. Transfer form dummy profit
center to respective center. Create derivation rule so that future transactions will not go
to dummy profit center. They will go to respective profit centers.

Set controlling area (OKKS)

Path :SPRO-Controlling –Profit center accounting-Basic settings-Set controlling area

Give the controlling area :COMPANY 1
Enter

Maintain controlling area settings: (OKE5)

(Follow through path )

Path :Up to base settings the path is same- Controlling area settings-
Maintain controlling area settings

:COMPANY
Standard hierarchy 1
Select elimination of business volume check box
Profit center local currency type :Select 20 Controlling area currency
Select confirm button
Select store truncation currency check box
Save

Elimination of internal business volume

Purchase Material no. 1 Profit center steel

Order Vendor no. 1234
| Plant HYD
291
| Profit center Steel
| Qty 1 Kg
| Rate 100
Goods
Receipt

It should no take in steel profit center 100+100

It should take only one time

292
Create dummy profit center

Path :SPRO-Controlling-Profit center accounting-Master data-Profit center-

Create dummy profit center(T-Code is KE59)

Double click on dummy profit center

Give the dummy profit center :COMPANY 1 dummy
Select basic data button
Name :COMPANY 1 dummy
Description :Dummy profit center for COMPANY 1
Profit center group :COMPANY 1
Save

Set control parameters for actual date

Path : Up to basis settings the path is same Controlling area settings -Activate direct
postings-Set control parameters for actual data (T-Code is 1KEF)

Select new entries button

From year :-
Select Line items check box
Select online transfer check box
Save

Maintain plan versions

Up to activate the path is same

Plan version Maintain plan version

Select version :0 Plan /Actual Version
Double click on settings for profit center accounting folder
Select new entries button
Year :-
Select online transfer check box
Select line items check box
Exchange rate type :B (bank selling rate)

293
 Save

Press enter to save in your request

Define no. ranges for local documents

A) At the time of creation of cost center –Assign profit center Dept

A-Assign profit center
B) At the time of posting
Wages A/c 500000 Dept A
To Bank 500000
When there is no derivation rule –It updates dummy profit center
Transfer from dummy profit center
To Profit center steel

No FI document will be generated

No co document will be generated once profit center document will be generated (local)

Path :SPRO-Controlling-Profit center Accounting-Actual postings-Basic settings:

Actual –Define number ranges for local documents (T-Code is GB02)

Select maintain groups button

Select actual document from direct posting with GB01 check box
From the menu select interval Maintain
:COMPA
Give the company code NY 1
Enter
Select interval button
Year :-
From no :1
To :100000
Enter and save
Press enter to save in your request
Select back arrow
Select planned doc.with direct posting with GB01 check box
Form the menu select interval maintain
Give the company code :COMPANY 1

294
Enter
Select interval button

Year :-
From no. :100001
To no. :200000
Enter and save

Creation of profit center:

Path :Accounting-Controlling-Profit center accounting-Master data-Profit center-

Individual processing-Create (T-Code is KE51)

Give the profit center :Steel

Select master data button
Analysis period to :01.04.- to 31.12.9999
Name :Steel
Long text :Profit center steel
Person responsible :Mr A
Profit center group :COMPANY 1
select activate button (Shift+F1)

One more profit center

profit center cement select master

data button
name :Cement
long text :Profit center cement
person responsible :Mr B
profit center group :COMPANY 1
select activate button

Create account groups

up to master data the path is same Account group create (T-Code is KDH1)

Give the account group name :PLITEMS ( Profit & Loss)

Enter
Description :P & L accounts for COMPANY 1
295
 Select insert account button
From :300000

To :499999
Save
Select Back Arrow
Account groups :BSITEMS
Enter
:Balance sheet accounts for
Description COMPANY 1
Select insert account button
Form A/c :100000
To A/c :299999
Save

Assign profit center in cost center

Path :Accounting-Controlling-Cost center accounting-Master data-Cost center-Individual

processing-Change (KS02)

Give the cost center :Dept A

Select master data button
Give the profit center :Steel
Select save button or Ctrl+S
Ignore the warning message press enter
Cost center :Dept B
Enter
Profit center :Cement
Save
Ignore the warning message press enter

Creation of sales account as revenue element (FS00)

Give the GL account no. :300000 Sales A/c

Company code :COMPANY 1
Select edit cost element button
296
 Enter
Cost element category :Select 11 Revenues

Save

Maintain automatic account assignment of revenue elements

Path :SPRO-Controlling –Profit center accounting –Actual postings-Maintain

automatic account assignment of revenue elements (T-Code is OKB9)

Select new entries button

Company code :COMPANY 1
Cost element :300000 Sales A/c
Account assignment details :Select 2 Business area is mandatory
Save
Press enter to save in your request
Select :COMPANY 1 with cost element 300000
Double click on detail per business area /valuation area folder
Select new entries button

Option 1 Option 2
HYD location
|
Steel cement Pharma HYD BGL MUM
300000 | | |
HYD Steel Steel Cement Pharma
300001 Sales cement 300000 Sales account
HYD Cement
300002 Sales pharma HYD Steel
HYDPharma BGL Cement
Mum Pharma

Business area : COMPANY 1H

Profit center : Steel
Business area : COMPANY 1B
Profit center : Cement
Save

Choose addition balance sheet and p & L accounts

Applicable for second scenario: Application for second option

297
Same path Select choose accounts (T-Code is 3KEH)

select new entries button

Account from :100000
Account to :299999
Default profit center :Steel
Save
Press enter to save in your request
Select profit center determination button
Select crate step button
Step description :Profit center derivation though business area for balance sheet
items.
Select drop down button under name column
Select GSBER businesses area
Save
Select maintain rule values button
Select source field intervals on /off button
Account no.100000
To account no.299999
Business area :COMPANY 1H
Profit center :Steel
Account no :100000
To account no. :299999
Business area :COMPANY 1B
profit center :Cement
Save

END USER AREA

1) Planning profit center wise for p & L items

Path :Accounting –Controlling –Profit center accounting –Planning –cost

/Revenues-Change (T-Code is 7KE1)

298
Version select :0
From period :8
To period :8
Fiscal year :-
:COMPA
Company code NY 1
Select next page or page down button
Profit center :Steel
Account group :PLITES
Select from based radio button
Select overview screen button
Per account no.300000 Sales account
Profit center reporting currency :600000 (Minus report currency) For
account no.400100 salaries A/c without any sign
Save

Planning profit center wise for balance sheet items (Only for second scenario)

Up to planning the path is same Balance sheet accounts change (T-Code is

7KE3)

Version :0
From period :8
To period :8
Fiscal year :-
:COM
PANY
Company code 1
select next page or page down button
Profit center steel
Account group :BSITEMS
Select form based radio button
Select overview screen button
For account :100300 SBI rupee term loan
Profit center reposting currency 20000- with minus sign
299
For 200105 SBI current account profit centres reporting currency 200000 without
any sign
Save

Posting of cash sales (F-02)

Give the document date :Today’s date

Type :SA
Company code :COMPANY 1
Posting key :40
Account no. :200105 (SBI current account)
Enter
Amount :550000
Business area :COMPANY 1H
Text :sales posting
Posting key :50
Account no. :300000 (Sales a/c)
Enter
Amount :*
Business area :COMPANY 1H
Text :+
Form the menu select Document –Simulate and save

Posting of salaries (F-02)

Document date :Today’s date

Type :SA
Company code :COMPANY 1
Posting key :40
Account no. :400100 Salaries a/c
Enter
Give the amount :475000

Cost center :Dept A

300
Text :Salaries posting
Posting key :50
Account no. :200105 SBI current account
Enter
Amount :*
Business area :COMPANY 1H
Text :+
Document –simulate and save

To View variance report profit center wise for P & L items

Path :Accounting –Controlling –Profit center accounting-Information system-

Repost for profit center accounting-Interactive reporting –Profit center group:Plan
/actual /variance (T-Code is S_ALR_87013326)

From period :8 (Current /Running month)

To period :8
Fiscal year :-
Plan version :0
Profit center values :steel
Profit center accounts groups :PLITEMS
Select execute button

To view variance report profit center wise for balance sheet items:

Up to interactive reporting the path is same Profit center group: Balance sheet
accounts plant / Actual /Variance (T-Code S_ALR_87013336)

From period :8 (Running month)

To period :8
Fiscal year :-
Plan version :0
Profit center values :Steel
Balance sheet account group :BSITEMS

301
 SAP FI/CO Material

Execute

Transfer of values from one profit center to another profit center

One cost center works for no.of profit centers we an assign only one profit center is cost
center.
In dept A Profit center steel From profit center
steel transfer to cement Manual transfer through
cycles

No.FI document will be generated

No.CO document will be generated
Only profit center document will be generated.

Path :Accounting –Controlling-Profit center accounting-Actual postings-Profit center

document –Enter (T-Code is 9KE0)

Layout select 8A-001 document :Profit center /account

Select execute button
Company code :COMPANY 1
Select Enter screen button
Profit center :Steel
Account no. :400100 Salaries
In profit center local currency 500000 –(with minus sign)
Profit center :Cement
Account no. :400100 Salaries
Amount :500000 (without minus sign)
Save
Month end activities:

1.. carry forward the balances of customer / vendor: F.07

Company code:

Carry forward to fiscal year

Give vendor number:

From:

to:

select test run

select vendors

Kasi viswanath. V 9948229601 302

 SAP FI/CO Material
execute

gives information

for customer:

select customer

give customer numbers

from:

to:

select test run

select vendors

execute

change the pth and do for accounts receivable.

2.. carryforward asset balances (AJAB)

Execute

Company code:

Fiscal year to be closed

(it gives a message depreciation not posted completely)

Closing number

3.. carry forward gl balances (F.16)

Company code:

Carry forward to fiscal year

Select balance in retain account / elect out list of result

Test run

Check balance sheet

Click retained accounts to check

4.. carry forward number ranges (OBH2)

Company code:

Source fiscal year

Target fiscal year:

execute

Kasi viswanath. V 9948229601 303

 SAP FI/CO Material

Master data:
G/L Accounts
1. SKA1 G/L Accounts (Chart of Accounts)
2. SKAT G/L Accounts (Chart of Accounts: Description)
3. SKB1 G/L Accounts (Company Code)
Customer Master
1. KNA1 Customer master
2. KNB1 Customer / company
3. KNVV Customer sales data
4. KNBK Bank details
5. KNVH Customer hierarchy
6. KNVP Customer partners
7. KNVS Shipment data for customer
8. KNVK Contact persons
9. KNVI Customer master tax indicator
Vendor Master
1. LFA1 Vendor master
2. LFB1 Vendor per company code
3. LFB5 Vendor dunning data
4. LFM1 Purchasing organisation data
5. LFM2 Purchasing data
6. LFBK Bank details
Customer – material info record
1. KNMT Customer material info record
Bank data
1. BNKA Master bank data

Accounting documents
1. BKPF Accounting documents
2. BSEG item level
3. BSID Accounting: Secondary index for customers
4. BSIK Accounting: Secondary index for vendors
5. BSIM Secondary Index, Documents for Material
6. BSIP Index for vendor validation of double documents
7. BSIS Accounting: Secondary index for G/L accounts
8. BSAD Accounting: Index for customers (cleared items)
9. BSAK Accounting: Index for vendors (cleared items)
10. BSAS Accounting: Index for G/L accounts (cleared items)

Kasi viswanath. V 9948229601 304

 SAP FI/CO Material
Payment run
1. REGUH Settlement data from payment program
2. REGUP Processed items from payment program

Customizing Tables
Company code
1. T004 Chart of accounts
2. T077S Account group (g/l accounts)
3. T009 Fiscal year variants
4. T880 Global company data
5. T014 Credit control area
Fi document
1. T010O Posting period variant
2. T010P Posting Period Variant Names
3. T001B Permitted Posting Periods
4. T003 Document types
5. T012 House banks

CO Tables :
Overhead Cost Controlling
A132 Price per Cost Center
A136 Price per Controlling Area
A137 Price per Country / Region
COSC CO Objects: Assignment of Original Cost Sheets
CSSK Cost Center / Cost Element
CSSL Cost Center / Activity Type
KAPS CO Period Locks
Overhead Cost Controlling: General Services
CSKA Cost Elements
CSKB Cost Elements
CSKS Cost Center Master Data
CSLA Activity Master
Overhead Cost Controlling
COBK CO Object: Document Header
COEJ CO Object: Line Items
COEJL CO Object: Line Items for Activity
COEJR CO Object: Line Items for SKF
COEJT CO Object: Line Items for Prices
COEP CO Object: Line Items (by Period)
COEPL CO Object: Line Items for Activity
COEPR CO Object: Line Items for SKF

Kasi viswanath. V 9948229601 305

 SAP FI/CO Material

COEPT CO Object: Line Items for Prices

COKA CO Object: Control Data for Cost
COKL CO Object: Control Data for Activty
COKP CO Object: Control Data for Primary Planning
COKR CO Object: Control Data for Statistical key Figures
COKS CO Object: Control Data for Secondary Planning
Cost Element Accounting (Reconciliation Ledger)
COFI01 Object Table for Reconciliation
COFI02 Transaction Dependent Fields
COFIP Single Plan Items for Reconciliation
COFIS Actual Line Items for Reconciliation
Cost Center Accounting (Cost Accounting Planning RK-S)
A138 Price per Company Code
A139 Price per Profit Center
Overhead Orders: Application Development R/3 Cost Accounting Settlement
AUAA Settlement Document: Receiver Segment
AUAB Settlement Document: Distribution Rules
AUAI Settlement Rules per Depreciation Area
AUAK Document Header for Settlement
AUAO Document Segment: CO Objects to be Settled
AUAV Document Segment: Transactions
COBRA Settlement Rule for Order Settlement
COBRB Distribution Rules Settlement Rule Order Settlement
Overhead Orders: Cost Accounting Orders
AUFK Order Master Data
AUFLAY0 Enttity Table: Order Layouts
Profit Center Accounting
CEPC Profit Center Master Data Table
CEPCT Texts for Profit Center Master Data
CEPC_BUKRS Assignment of Profit Center to a Company Code
GLPCA EC-PCA: Actual Line Items
GLPCC EC-PCA: Transaction Attributes
GLPCO EC-PCA: Object Table for Account
GLPCP EC-PCA: Plan Line Items
PCA Basic Settings: Customizing for Profit Center Accounting
A141 Dependent on Material and Receive profit center
A142 Dependent on Material
A143 Dependent on Material Group.
Interview Questions:

Kasi viswanath. V 9948229601 306