so when you are going to uh work as a consultant what type of project you are going to get as per our

current market range so basically you will find here right now we are in one era where uh the new
product that is sap s4a which is going to completely uh like they are in the market plus some companies
still using the ecc6 or the old version of sap that is it it may be ec6 maybe 4.7 whatever so that means
one old product is not completely removed and new product they are going to adopt it's not new in fact
since last four years I got my first project on uh simple finance that time it was simple Finance on in 201
uh 17 so that's why it's pretty high time like company started adopting the S4 but nowadays like very
soon is going to completely stop the old product so it's highly that means like companies need to
upgrade from the old system to new system so that is why you will find the projects what are there U
like job point of view you will find that no need to write anything I will share this one so you will find uh
mainly right now you will find two categories of projects job point of view one is uh new implementation
and another one is migration and one third category also it is there maybe this will be too Advan for you
just I'm adding here then in end we will talk about this one which is also known as your Central Finance
but this one I will not explain anything today because for this you must have a good understanding on
these these two one so what is new implementation so it's very clear new implementation means when
a company is currently using some different application and from there they want to move to sap
product uh sap S4 product or sap product so that that is your new implementation and in technical
language you must heard something that is Greenfield green Greenfield implementation So Greenfield
implementation means completely a new product so customer maybe they are currently using Oracle
they are using people soft any any different even they are also in non Erp system so they the they are
going to start the sap migration means customer is currently using sap product maybe some old product
they are using and they want to migrate to S4 I'm sorry uh since last three days I was infected with viral
so maybe my voice is not clear and all please bear with me so EC Sana and the Central Finance one is uh
it is also a high level migration where customer want to rain the old system plus they want to adopt the
S4 system right so these three type of projects you will get if some roll out maybe it is related to this
segment or let's say small migration then this will be this one or it will be a Central Finance migration
now in which area you are going to prepare you don't know like which project it will be assigned if
you're going to start your Consulting career or if you're are going to change the project or change your
job so that is why you should prepare for everything that whatever the project it will be there so you can
manage easily so that is why I say initially like uh uh companies are looking here the experience
candidate only whenever you are going to start your Consulting career as you know that in sap there is
no frases jobs are there so that means with this training you can handle successfully four years plus
implementation experience so that level in depth uh like job point of view it is required and with this
that much project we are going to complete or that in depth we are going to do so let's start with the
Greenfield implementation so that's why if you have check my course content my course content there
are two segments are there the first one is the Greenfield implementation this one Greenfield
implementation and towards the last that is your migration one Roundfield implement migration and
conversion this one we're seeing so what is Greenfield implementation Greenfield implementation as I
said customer is completely new so they are going to start from ABC they don't know anything or they
don't have anything so whatever the hardware they have server and all maybe it is going to support sap
product or it may not so that means from the designing the system landscape till the delivery till the go
life each and everything will be uh it will be new so as you know that sap is not one product activity or
it's not one man so so that's why it will be a team will be there so that means in this implementation we
will have different type of Consultants or developers will be there so there are technical consultants will
be there like your Baer the basis and we have the functional Consultants will be there like us so we are
the one of the functional consultant that is finance consultant but business process point of view when
we are going to design the business process so what are the business process we are going to design
your business process will be the same whatever the product company is going to choose whether sap
XY Z whatever business process always it will be same that means they have the business process earlier
they have r2r record to report now also it will be the same we are not going to change the business
process in fact we are going to simplify the business process similarly they have P2P it will also say
procurement to payment order to cash so that also will be the same right then we have if they have a a
good costing system is there then product costing and profitability Analysis also will be there so business
process whatever earlier it was there we are going to return the same but when company are going for
sap implementation they are going to adopt the best practice best practice means maybe right now the
company is not currently working on Erp so that is why when they are going for the best trp product or
sap so a lot of good things are also they are going to adopt so that's why when we will see the activate
methodology the first phase will be the adopting the best practice so that time I will explain in detail but
that is that also will be there so that means if we are new to U Erp segment on right or let's say right
now we are using a small Erp product lot of business process we don't know we we are not aware for
example we don't know what is the pl cost calculation right so or we don't know what is the actual cost
calculation we don't know what is the variance analysis so maybe we are calculating the cost but we are
calculating the cost in a not in a proper manner so that is why you will find lot of challenge in these areas
and as you know the product is fic or in very generic we are saying that it is a FICO product so actually
it's not FICO or I mean it's not one product fic it's actually two products or in S4 Han lot of things are
now combined together and we are saying it is S4 Hana Finance so there is nothing called FICO now in
S4 earlier it was there when companies are earlier they are using this particular product earlier it was
their if Ico so now this S4 Finance includes multiple technology related to finance so which going to uh
help the business users or the process owners to simplify their business process and that is what our job
so we are going to do the required customization we will study the business process and we will give the
best solution to the business so that in future their business process will be easy and there all the
activities will be reduced so it's not like fully automated like business viser not will not do anything but
we will try to make it maximum simplifications or maximum things we will make it automatic so that
their job will be reduced now coming to the training point of view so in Greenfield implementation we
are going to start it from the scratch and we are going to build one entity from end to till I mean end to
end you must heard that from the job point of view in every job profile you have seen that that is U one
end to end to implementation required two end to end implementation required already have show
many times I have shown you in the my YouTube videos so it is highly required that because no one is at
this one I'm addressing for the new people who are going to start the Consulting career so no one ready
to hire the new people that who don't have any experience from the project point of view the reason
here is they want immediately they will add you in the project or they will put you in the project so you
can start working immediately so there will be no training nothing will be there because uh uh
nowadays too much competition is there companies are also acquiring the project in a very low cost so
that's why they don't want to spend on time the training the development The Grooming of the
candidate all these things so that's why they are ready to pay some more like cost point I mean your
salary point of view rather than hiring a fresher uh but they are not going to hire the fres so that is why
you will not find a single job that if you're going to show I'm working as earlier I was working as end user
and uh now I just completed one training and now I'm going to start the Consulting career so you will
not get the call also one one single job call will not be there so that is why you have to show at least one
or two implement M ations so how it will be there so implementation means no one is saying that you
will put fake experience and all it will go so it's not required they are expecting that you have really
hands-on experience you did everything in the system and they are like you are ready to be handle the
project as associate consultant under one principal consultant so that is why from the training point of
view don't think that it is training assume that it is our project and we need to complete at least three
projects so one project Greenfield one project roll out one project migration so you will feel the
confidence then we uh in the interview segment we will see how as per your profile how the
modifications all these things will be there because right now it is not the time to discuss all this but as
for the every candidate's profile this modification is required otherwise you will not the get the call so
your resume should be designed accordingly which I will do later leave it so a project point of view this
much you need to do and when you are doing because uh I will do the demonstration everything I will
give you the assignments each and everything we will do from the blueprint but it is your job that you
have to configure it in the system and you need to prepare all the URS and you need to uh certain terms
maybe if you are not familiar it's okay so you need to prepare all the uats and you need to submit the
uats because if you not submit the uats I will not able to access it so that that is why it is highly required
that you need to submit these uats whatever the configuration you doing that is not important that can
be rectified or that I can check but uat is I need it your testings everything test scripts everything are
required so that I can check those right so that is why uh whatever the configurations we will do that we
will do it from the blueprint just I'm quickly showing one blueprint so that you will get the idea this is not
the only I will share as much as possible different business scenarios whenever we are going to configure
anything so each configurations whatever we are going going to do in the system everything should be
supported by the business process because hypothetically there is no meaning we are going to do
something hypothetically this is assume that that is no meaning because ultimately business is there and
we are going to do the configuration so that is why this business process documents are important this
is just randomly I picked one so on the basis of this we are going to do the configuration so every
business process should be supported by the config I mean business process if you have any business
process you can use it or otherwise you can my you business process these are the business process
which I gathered from my different projects so UT is doing the handson on the basis of one business
process and accordingly we can prepare the test scripts and we can test it whether it is going to work or
not now coming to the business process as I said business process always it will be same so let's start
with the artw process and here I'm going to show one com uh in system some one company code which
my previous badge configuration so in every badge I used to take a new company code and end to end I
will configure in the same and when you will get your system also you you are going to configure in at
least in uh two company code for the new implementation point of view two two business process with
impation and migration with one roll out as a task I will give that also can complete as much as you will
do the handson and not only the same thing you will do again and again so if you are going to explore
different business process it will give you the confidence and you can very easily answer in your
interview right so interviewer is not going to ask the question how to do that interviewer is going to ask
the question why to do that so that is very important from the Consulting point of view and when you
are going to show that I have uh 3 plus years four plus years experience uh in my system configuration
right so till now is it clear okay now coming to this uh particular business process which is uh I have
highlighted here record to report so record to report as you know that the business process is going to
uh start from recording of a posting a general entries doing all the reconcilation activities doing all your
U closing activities doing your uh reporting everything so this is the like you can say it is the most
important business process and mostly the middle managements are involved here right so in fact this
incl Roots everything whenever you are doing your U receivable payable maybe you must be thinking it
is not part of your record to report because anyway it is part of P2P or o2c business process but
ultimately when you will take the reconcilation data that is part of your record to report so that is why
record to report is very important it covers everything all your books of accounts all your uh accounting
principles all your valuations everything is coming under this business process which is your record to
report ultimately we are going to prepare the financial statements both from internal point of view and
external point of view right so this business process we will start from the beginning and uh this will be
our end business process because everything will be covered under this business process voice is not
clear someone is saying my voice is not clear is just confirm is it any issue with the audio voice is right so
this record reports in different time we will come here and we will work this area and if I will see from
the content point of view which one is the record report so record report as I said it covers everything
directly or indirectly the first part you will find this is record to report process so this one is record to
report process something related to this one is also record to report right so then you will find this one
indirectly record to report so record to report business process includes everything because ultimately
everything we are going to report in our finance statements so that is why this again fixed asset that is
also part of your record report so each and everything we have to configure from this point of view sir
now yes go ahead I am PP background how come like what is the procedure for this so first of all when
you are saying that I'm P2P I'm from R to r that means right now you are from the user side and you are
handling one part but when you are going for Consulting you are going to configure everything okay
okay you showed from I just started from the business process from r2r next I am coming from coming
to P2P okay sir okay as a consultant you are not going to handle in peace or companies are not going to
spare like multiple Consultants will be there for different business process expected that one consultant
is going to configure everything both finance and costing point of view uh as associate consultant okay
okay right uh I have also one question so like you said sir um businesses are adopting the bus uh best
practices so whose responsibility during the project it is to standardize and adopting that uh I mean who
is taking the decision how it it should be uh we during the when we are conducting the workshop so that
time as a principal consultant they are going to conduct or they are going to do the delivery of the
workshops so in the workshops actually we are doing the presentation to the business that these are the
things are adopted by market or Market is using using it but from your scope document what we have
studied these are the things are missing so it is good if you are going to adopt these things then this Erp
implementation will be better plus you are going to have a better result then again business will take the
decision whether they are going to adopt it or not okay and answer to your question who who is going
to enter so as a it is principal Consultants responsibility that the they are I mean that person is going to
presentation but uh as associate consultant tomorrow you are going to be principal consultant you
should know it yes but the decision is with the GPU the process owner OB process owners obviously
whether to uh yes okay okay okay so uh let's take one example we are going to use S4 2022 version for
our demonstration and for your practice point of view also so I'm sure you are right now you are using
any product of sap so look and feel almost everything is same if you are not considering Fury which I will
come later uh then you will find almost same so this is our EAS access which is your front end part and
uh the back end the configuration which we are going to do right now maybe you you don't have access
as an user on this site where we are going to do the configuration and mainly we are going to spend our
95% time on this one as a custom as a customization point of view and uh testing point of view we will
do the some testing from EAS access but mainly I will give more focus on the fur because this one is not
new for you you are already using this system on uh ACCC site so a couple of areas we I will show in the
demonstration but most of the thing I will give you as assignment Fury every application we will explore
in detail so I will in sometime I will come to the FY fine so now let me take one example from my
previous batch so here uh let's let me see here something I'm taking one company code here all the sap
standard company codes are there but we will not use any sap standard company code we will take our
own company code and we will configure now here you can see some technical informations are there
and right now when you are posting different transactions from your user point of view maybe you are
using this one maybe you are not selecting manually system automatically going to choose this one right
so we have different type of ledgers are there so two things are there one is your Ledger and another
one is GL Master GL general ledger so when you are saying General ler it's a very small thing that means
I'm going to use this GL account as debit I'm going to use this GL account as credit so these are the very
small things but when we are saying that we are going to work on Parallel accounting let's say we have
operation in USA we have operation in India we have local gaps are there we are going to do uh
different valuations we are also going to do the asset valuation as per income tax so lot of rules
regulations are there accounting standards are there accounting your accounting principles are there so
in that case we are going to follow the Ledger approach so Ledger means nothing but everything which
is managed by a ledger nothing but your books of account so that means parall we are going to mult use
multiple books of accounts by using the same chart of account or same your GL Masters like in this
company code you can see here I'm activating or like I have activated here four different lers for my
different purpose for different accounting principle or for a different reason for a different purpose I
have activated this one now how it is beneficial for me I can prepare different type of reports so when
users are going to post a transaction so user can post a transaction by selecting different lers if I'm going
to give the manual option or user is going to post the transaction automatically if prip user is going to
work on Ledger N1 so by default when I will log into my system I'm only going to post a transaction in
my N1 ler so then in final the uh consolidation point of view or from the reporting point of view all the
data available and we can use it for the reporting so this is part of your to our and it is our initial settings
so that means with one company code with one chart of account we can activate multiple ledgers for
different type of requirements okay for example if I will talk about why activated this N1 N1 you can see
it is linked with a local Gap so for my asset valuation I'm using it so in asset we are going to use parallel
accounting and parallel valuation now let's check it whether it is exactly the same way it is there or not
for that I'm going to check some documents which are related to asset just to verify whether it is these
two ledgers are there in our reporting or not so you are familiar with uh document Library so I'm just
going I'm using here transaction code fbit 03 and in fbit 03 I'm going to search here I will not select here
any Ledger I will put here the document type as asset all these things you are using from the user point
of view and just randomly I'm going to pick one document so let's check this document now here you
can see as for one accounting principle this one just check right as for one accounting principle the asset
value is showing that 22,100 and as for another accounting principle the asset value is showing 22,900
when user posted different documents user has not posted the document in this way in fact user just
posted some random entries so system valuated as per our configuration what will be the asset value as
for this Rule and what will be the asset value as for this rule right so that is the benefit of your as I said
asset is part of part of r2r and that is the benefit of when you have activated multiple ledur so it is
parallel accounting and parallel valuation this is as per one accounting principle this is another as for
another accounting principle but let me check the document here so that it will be easy to explain right
so right now you can see one document is there and uh if we will go to the asset valuation part so what
is this uh right now The Ledger you can see The Ledger is ZL which is activated here which is also known
as your leading Ledger but in detail we will configure once we will do the configuration point of view so
as for this particular Ledger and uh here asset value is valuated at what price the asset value is valuated
at 22,100 as it is valuated as per one accounting principle as it is valuated right so that is why I can see in
this report right now as it is valuated here I can see here it is valuated 22,100 similarly if I will go to this
one maybe here certain things are added or here it is not permissible so we have to follow the rules and
regulation which is provided by government income tax and all so here you can see asset value is
different now let's check this document this is another Ledger N1 Ledger and in as for this N1 lger it is
valuated with a different way and it is as for the local Gap so this is the benefit of using parallel
accounting with multiple ledgers so when you are going to use parallel accounting with different ledgers
so we are going to have the benefit that user is going to post the transactions randomly but we can play
with the data we can have a better command on the adjustments the reportings all these things will be
easy for the management for the reporting point of view right so record to report it's not easy that in
one s session I can explain every like you can say that whatever we are going to do any business process
we will take so in end of the period it is part of record to report so all your month and activities all
adjustments everything is record to report and finally your your preparation trial balance your balance
rate pnl everything is part of this particular process fine so record report includes like if you'll check
content point of view what exactly includes record to report so record to report as a record report first
we will Design our orc structure it's not actually record report in general we are going to design the orc
structure now let me show you whether in this company code we have designed the AR structure or not
so we are I'm using here the company code z200 it's a wrong selection is there yeah so that's why that
time I was is not getting the document right so uh this z200 which I configured and let's see the orc
structure related to this particular company code now here you can see sales is there purchase is there
plant is there when uh we are going to take the implementation project as as a team as a company point
of you so that time we can say that we are from the finance team and uh we are only going to to do the
finance or company will say we will do so it's not like that so each and everything should be or need to
be delivered so project is not one person activity as I said so always you are going to work under team
and multiple Consultants will be there now that's why you can see here like I just keep expanding and
you can see it's multiple informations are there so when we are saying that we are going to take the
business process business process is not as for the product design by sap for example when we are
saying P2P so P2P involves procurement is there which is logistic P2P involves Finance is there that is like
your fi P2P also somehow it is related to your cost calculation point of view so which is costing sap
designed their product as for their whatever the delivery they are giving but business process also
before sap it was there so that is why when we are going to handle or we are saying that we have the
knowledge of end to endend that means you are part of team and you have also like you work already
other Consultants so when you are going to be part of one project so you are going to closely work with
your logistic consultant with your procurement consultant your SD Consultants your production
consultant now training point of view here we don't have other consultant because in your project only
you are going to configure everything right you are not going to get the support of other consultant so
that is why when I will demonstrate and when you will practice you have to configure everything at least
whatever it is required so maybe it will be extra burden for you but it is going to give you the return so
for example if we are not going to configure the logistic part the lot of business process are not going to
work example your P2P is not going to work because without having the purchase order gr how can we
will have the invoice without invoice how can we will make the payment so as a finance we will only
concent concentrate on the payable part so how we will do the payment so how we will handle the bank
how we we will go for manual payment or auto payment or whatever the discounts are there so each
and everything related to finance it is our job but initial things should be there so that is why the logistic
has to be there the OTC will not work your product costing will not work your Copa will not work so
ultimately you can see that all the business process halfway you can see it so that is why the logistic part
also we have to include but in detail configuration is not required for to execute our business process or
to execute our requirement what whatever the configurations we it is required that we have to
configure in the system okay so same demonstration point of view I will do and practice point of view
also it is highly required from your end to fine so once the organization structure done and check here
this is the organization structure which includes finance and logistic so when I'm saying logistic this
includes mm M SD and production point of view but before that first weekend we will spend
understanding the system architecture and all from the technical point of view and U it will be just
overview the unit one will be the overview so once you are familiar with the system then only we can
start doing the handson so once it is done next we are going to do some general settings this is not
related to business process you are defining a finance leer you are doing a document settings you are
doing a field settings so these are not the uh settings related to business proc process or a particular
business process but this one is going to help in every business process because postings when you are
post posting the transaction if the period is not open then obviously you can't post a transaction not one
particular business process you can't post a transaction for any particular business transaction so that's
why these settings has to be there once it is done then only we can start doing the configuration related
to business process and business process point of view as I said this part is your related to r2r mainly but
r2r is there in every other topics okay so mainly this one is related to defining different ledgers
accounting principles so related to your Ledger level posting so all these things we will configurate so
this one we will not able to end it once we will start because as I said this will be our end topic this will
be our first topic and this will be our end topic transaction posting with cost center and all so once it is
done then U like for example you must be thinking cost center is part of controlling cost center is not
part of controlling when we are saying that we are going to work on controlling if we will see that what
of the topics are there so one topic you found here that designing the AR structure this AR structure
includes end to end everything then we are going to do the global settings or general settings then we
are going to configure the leder settings then let's say I'm going to introduce here the cost center
accounting now you must be thinking that cost center accounting is related to controlling no cost center
is not part of controlling when I'm saying it is controlling controlling or costing management accounting
anything you can say so under this costing mainly what we are going to do we will calculate the product
costing again product costing includes I will come to this part product costing includes your plant cost
your uh uh actual cost again in actual cost we have preliminary costing we have Target costing we have
simultaneous costing we have actual costing followed by other processes so product costing another
one is Copa profitability analysis earlier it was known as Copa now it is known as margin analysis then
we have something called inventory valuation point of view material Ledger these are the different
areas where you will find right now business is not good or this one you will find that most of the time
companies are not using earlier whereas in S4 it is mandatory and this is the area where you can show
your expertise and you can negotiate with your package because even consultant with good experience
they are not good in this part matal ler product costing right because maximum time you will find that
product costing is there but is not fully implemented they are not they have just stopped the process
after plan cost they never implemented the actual costing but now as sap popular or product is now
settled so companies are adapting different areas and which is highly required and marginalis one you
will find in every business not only in manufacturing you will find marginalis even in in the service
industry also so that is why these are the areas where you need to focus more because now the trend
I'm job point of view will see fi point2 on the basis of fi knowledge you can't negotiate with your package
fi is like everybody aware even business is also aware they know also fi settings everything is available in
Google this is the area where they need the Consulting because here lot of things need to be discussed
with business and accordingly the configurations will be there so that is why in detail this configuration
is required and for this again the detail configuration is required now to calculate product costing what
are the prerequisite you must have the complete Ledger setting should be there right now we are
talking about r2r so for this that that is also partially required so The Ledger setting required then you
must have the logistic settings required logistic point of view for example we will procure some raw
materials then only we will manufacture it so that means MMA is required we must have PP required
not only this configuration it's integration too right and integration like Ledger integration or fimm
integration with mm your mm integration with PP Co integration with PP so once everything is
connected with each other then we will see so once I will come to uh this product casting today uh you
will see that everything is connected with each other now these are areas which we are saying that it is
costing then where the cost center is going to fit here right cost center nothing but it's a cost object
even those companies are not manufacturing anything they have also the cost center for example let's
say uh it's a Hos let's a hospital now they the that hospital every department they have they are also so
collecting the cost from the different so in OT segment they have they are incurring cost in OPD they are
incurring cost right so ipd they have cost so different type of cost they are recording so when the
transaction will be recorded for the profitability analysis point of view they are also going to add the cost
object so if they are going to take the Departments so then cost center will be applicable mostly you will
find in the service industry they obviously this one is not applicable for them small companies or small
entities is they will not go for marginalis instead of that they will go for something called profit Center
accounting it's not part of cost center uh costing so I'm adding here profit Center accounting it's single
diamonds analysis report so they are happy with this particular product profit Center accounting and for
the same example if I will take the hospital example so in that case maybe they can go for this option or
they can go for profit Center accounting but profit Center accounting if they are going to adopt then the
transactions must be recorded with the cost object if I'm posting a document just like some expenditure
debited and couple of expenditure debited Bank credited what is that meaning when you have incurred
some expenditure the incur expenditure must be recorded with the cost with the cost object so that is
why cost center is don't count this cost center as your cost controlling cost center is never part of
controll in fact it is known as your overhead management in general we are saying it is cost part of
controlling but it is not part of controlling so that is why I have included this one uh not with the costing
it is part of overs so that's why I've included this cost center and something related to the or all the
activities related to cost center so again here let's say cost allocations will be there your month and
activities will be there when we are doing the month and activities then again reconcillation will be there
so that is related to R2 R right so in business mostly Finance users are not familiar with the cost center
they are just recording the transactions and they will transfer the cost to the costing Department after
that whatever the activities they will do okay so that will be handled by the costing people so that's why
Finance users are completely unaware about the use of cost center or all the activities related to cost
center because it is related to it is part of actually uh product costing so but it is actually related to your
normal posting of transaction so when I'm saying just creation of a cost center it will be handled by the
power user then other activities everything will be handled by either it will be consultant during
configuration or it will be handled by the costing team so Finance users are not involved here but
without cost center no postings are possible just randomly let's take one document again I'm taking a
finance document you will find that with this Finance document cost object is there same company Cod
using here let's take this document suppose now in this document you can see cost center is there so
that means all our cost the three lines cost what whatever I have recorded this cost I have recorded with
this cost center 5,000 now next if we will check Co this is my finance data if I will check my cost center
report you can see here cost is recorded there through Finance But ultimately the balance is zero right
it's because this call center I have created for a specific reason and this cost I allocated to my cost of
production calculation so that's why this cost center is zero so that means from this cender cost center
5,000 we have taken this cost to our cost of production calculation and we transferred again here
primary allocation secondary allocation all will come from the cost calculation point of view but why I
introduce this cost center to make the FI entry simple so when Finance user is going to post the
transaction they are not going to bother like in which cost center how much cost they will record they
will just take the normal GL account salary or electricity or whatever they will record by default all cost is
going to record in this cost center then costing people they are going to transfer this cost from for their
cost of production calculation point of view so that is why whenever any cost will be recorded it will be
always linked with a cost object there will be hardly any transaction will be posted without any cost
object it may be cost center or it may be order if you are saying that this cost this expense or this
Revenue particularly let's talk about the cost right now so if this cost is related to our operation then
definitely the cost should be recorded with a cost object I'm not saying cost center I'm saying cost object
because there is one more cost object is also there which is internal order so cost center for long run we
are going to use and internal order we are going to use for short run but cost object has to be there and
these are part of your Ledger settings fine so all these things we are going to config during our initial
settings which is your related to r2r process and we will do month and activities these are all your month
and activities this is uh one now onwards you can see all are your month and activities similarly initial
settings then after that all are your month and activities and when we are saying month activities it is
related to your r2r any question on this r2r any question no sir clear if you have like if you have not
understood anything it's okay anyway it is just high level presentation I'm giving so it is absolutely fine
now coming to the next business process which is very very familiar because you must have idea on this
area so that that is related to P2P P2P when we are going to say so P2P you know the process that we
are going to do the procurement and we will do the payment so this process is going to start from the
logistic department and from from the logistic point of view okay just quickly let me show you this PBT
so uh this fi financial accounting is nothing but it is part of fi then we have to do the configuration
related to Ledger it is part of r2r PBT so general ledger settings we will do then we will Design the master
data Ledger point of view whatever Master requir GL Masters will be there GL required cost center
required order required whatever then different transactions will be there then account analysis
reconcilation month and activities and Reporting so whenever you are going to run GL report GL balance
reports all are your part of reporting then next P2P so P2P is going to start from I'm sure you are already
familiar with this one so it is going to start from your requirement planning that means that is your MRP
then request for quotation then purchase order then gr then your uh invoice now this part is related to
finance when you are saying that payment related to payment whatever it is required that is Rel to
finance but if we are not going to configure everything or particularly the logistic and the integration
then this one is not going to work okay uh before explaining further let me show you one document so
I'm just going to take one vendor invoice and I'm going to run a report here and simultaneously also let
me log to fury because this one is more user friendly and you will get more clarity here being new user
so we have two deployments on premises till now I was showing on premises now I just log into Fury so
same also we will see here okay so uh let me run here one report related to vendor invoice just
randomly going to pick one item here so this is vendor invoice I can see or accounting document related
to vendor invoice if I'm the finance user and particularly from the AP team then I will make the payment
or I will do the necessary activities related to payment but if I want to see the source document related
to this particular vendor invoice so couple of more documents I can see related to this particular vendor
invoice my original document number was 51,000 the vendor invoice but related to this vendor invoice I
can see some more document that means there is one purchase order is there with reference to this
purchase order some material documents is there which is nothing but your grn goods receip note with
reference to this some accounting document is there and finally we have the logistic when invoice is
there and finally we have the accounting document so this is result of your fimm integration and the
same document let's check in Fury right so what what document I'm looking here I am looking here the
purchase order and this is my purchase order last 49 so I I will search with my purchase order or the
purchase document last 49 so related to this purchase order I want to see all the documents right so
logistic point of view the logistic user created this document this is my purchase order with reference to
the purchase order then next logistic user perform the gr with reference to gr another logistic user
process the logistic invoice these are the logistic activities with reference to logistic as we know that
everything is integrated with each each other because we know that whenever there will be gr will be
there there will be some accounting document will be there so inventory is going to debit or whatever
you are going to purchase that is going to debit and credit will be gr so automatically the moment the
logistic user processed this document we got here the document number this one that is our 50,000
document now let's check this 50,000 document and we will confirm that 50,000 document generated
with reference to this document or not okay I don't want to disturb the screen let it this one as it is let's
check it through on premises so what I'm looking here I'm looking here this document 50,000 document
document number 50,000 this is my uh no not this taken wrong one document number 50,000 yeah
Goods received ah correct so here some variances are also there right so this accounting document is
there so what we um how we got this document who posted this document this document not posted
by any user manually this document is your integrated document with reference to something else how
to conform you can see here this is posted by this user with reference to this particular transaction code
and this D code is not related to finance this related Migo is related to gr if anyone is right now working
on this you can connect this one so if I will see my original document the original document is my logistic
document so document number 114 which we have seen in Fury it's the same copy just we are using
Fury so this is my source document with reference to this I got this document similarly if I will check
document number 51,000 which is my vendor invoice which already we have checked also right I got the
invoice with refence to the original document which is my source document now user point of view it is
very easy user is doing something and automatically we are getting the output but in backend we have
to do lot of configuration and this fimm integration is like one of the most important area for your not
only for the current topic for multiple business process so that's why this this includes or this
prerequisite is FY mm integration this FM integration is going to support of course P2P procurement to
payment because all the process what I was showing it is result of this P2P then it is also going to help us
for cost of production calculation there also we will see this point cost of production and asset
accounting to plus material Ledger also because right now in this document you can see some uh not
this one last one in this document you can see some variances are there because of some maybe there
is a change in price from the vendor due to some reason I don't remember what the scenario but
variance is there now this variance should be absorbed or it should be reported it should be captured
and it should be reported in that particular inventory valuation so two things are there one is your
inventory reporting another one is your inventory valuation when I'm saying this account is debited
inventory debited your raw material debited FG debited or credited that is nothing but your reporting
but when we are saying that inventory valuation that is something else so for that we have to follow
again Accounting Standards we have to do the uh inventory valuation earlier inventory valuation
companies used to ignore it that time we will see why they used to ignore it but in s foran and now
statutory point of view lot of accounting standards are also now available for inventory valuation so it is
mandatory inventory in detail it need to be valuated reporting earlier we are doing but not that need to
be valuated now related to this inventory let's see why this variance are what is how this why this
variance is there this line for that I need to check what is the source inventory for this one 102 so related
to material it's a material number 102 again this is part of your P2P I mean directly it is not part of P2P
but prerequisite is uh integration is required fimm integration is required so material 102 and which
period I need to check that too seventh period so here multiple transactions are there just ignore other
transactions we will only check our current transaction and what is the variance here variance is uh 370
where I can see the 370 here it is okay check this difference so that means this material initially valuated
with a different price you can see latter we purchase with a different price because of that there is one
difference is there there is one debit entry and this one is also further adjusted with invoice two during
purchase order it was valuated with a different price and that's why you can see 370 debit is there with
another transaction that is also credit posting is there as we perform these activities in the logistic so
because of that I can see the inventory reporting is also there this one is your inventory reporting so
inventory debited report this variance debited report but this is your valuation so this outcome is your
inventory valuation this outcome is your F mm integration or P2P so under this P2P we are going to do
the F mm integration and we will test it because today whatever I'm showing these are all your test
scenarios only that which already happened so fimm integration is very important because this one is
going to help us to understand the P2P process then it is in future it is also going to help us for cost of
production calculation plus uh material ler point of view just now I have shown and asset accounting
point of view also it will be there uh quickly let me show you one document related to asset accounting
again the moment we are seeing asset accounting it is r2r so how in asset accounting this one is required
that means if you're are going to purchase the asset uh through logistic then it is required you must be
thinking that we will purchase asset debit and bank is going to credit but in reality we never purchase
asset the PO should be raised the vendor should be identified vendor is going to supply then invoice will
be raised and finally we are going to make the payment so that is why it is also connected with your
asset now same company code let me check one document related to asset so here also logistic part is
there so purchase order created then next um like your accounting do GR document is there then as it is
asset asset point of view some more documents are there then finally we got the accounting document
and invoices vendor invoice is there so that is why P2P is also connected with your asset so this one is
supported with this content it seems like four five points but when we will do the configuration lot of
things are there now uh integration is not not like just assigning one g account with related to uh under
one particular chart of account even client is also aware about those things if you'll go to obyc this one
I'm addressing who are currently working on system if you are going if you're going to do the obyc if
you're going to do like sorry if you'll go to the obyc settings and you will select the chart of account you
will assign the GL account job done client is also aware of these things so that is why interview point of
view or when you are going to handle the customer so that time their question will be because of what
logistic activities why this particular GL account is debuted what is the mechanism behind that what is
the use of the general modifications why you are using these those things right or on what basis how
these movement types are connected with the particular GL accounts on what basis system identify
debit why it is not credit so that is why in detail you have to understand this process that means this
particular module is maybe you will find lot of activities are related to logistic but as a finance consultant
it is also highly important for us because that time when customer is going to ask the questions they will
not categorize we will not ask these questions to the finance consultant or to logistic consultant because
logistic people they are good in the logistic segment they they can't answer it from the accounting point
of view but when the B process owners are going they are they want to understand from the process
point of view they want to see there is a movement is there movement type is there when we perform
these activities then how system is going to on what basis system is identified here the debit or on what
basis it is credited so in detail the relationship you need to explain to the business so that is that is why it
is most important one uh one I said it is going to support other business process and here lot of
mechanisms are available I mean it is connected with this this one with related to this one once you are
clear with fimm integration next we are going to do the vendor payment again vendor payment means
how we are going to do the payments so most of the time we are dependent on the automatic payment
right so like user is going to run the automatic payment program and system is going to clear the
payments again for that we need to have the bank settings because without bank payment is not
possible and in S4 it is known as your new banking system lot of changes are there if you'll compare with
and one more thing whenever we are going to configure anything each business process we will do a
detail comparison with our EC system also we will do the configuration in S4 but simultaneously also I
have end to end configuration in ECC which I will also do a comparison because interview point of view
lot of questions you can expect where comparison between ECC and S4 so each point we will do a
comparison with the ecc2 so that uh you can see what was the problem there or how manual activities
how the reconcilation was not automated and how it is in S4 so this uh like the back Bank you will find
100% change if you'll compare with the ACC integration it is same there is no change fimm integration
but uh bank is a payment point of view bank is 100% change and it is completely shifted to Fury and uh
from 2020 onwards sap introduce here new bank accounting what they're saying okay so uh this up to
this one it is your integration this one then after that what we are going to do that is your fi so
particularly when someone is saying that I'm working on AP so they that person is working on this side
it's not one activity so multiple activities are there from the payment point of view and uh that is your
AP but in total it is P2P any question on this no no question someone was working with P2P so he you I
think yeah do you have any question got it so you got it what what are the activity right now you are
doing in P2P uh invoice processing payment and then management invoicing invoice processing means
which D code uh uh fb60 fb60 no fb60 when you are posting means nonp invoice yeah nonp only I'm
doing not po invo any example what you are doing through nonp invoice uh nonp means we rece
invoices in that we will updated invoice number date amount GL and cost center but again it is your
business call but why you are processing nonp invoice because of a a insurance a service okay okay okay
got it got it yes right okay so so you got it what I was showing that P invoice yeah yeah got it yeah I got
comparatively non-pure invoices are easy so where you manually going to add all the data so you are
selecting the vendor going to be credit and something debit in your case insurance that expenditure and
all going to be de correct okay okay here I for forgot one thing in right now in Old system or in AC system
we are working with vendors or supplier what you saying whereas in S4 now we are going to work on
business partner business partner concept was not new in sap earlier also it was there but earlier we
used to create different Master records in different system for example uh you just imagine uh for
example let's say one part is there from uh from that business we are purchasing the raw materials so
that time we are saying it is our vendor then uh we process that raw materials and now it is FG let's say
same business they have a different operation and now we are selling the product so that time once
again we are creating one more Master record in our system and that time we are saying that it is
customer so before selling we we will do a credit analysis for that particular customer then in that that
case we need to create another Master record and that time we will say it is business partner we have
CRM system in CRM we have to create another Master record that time we are saying that business
partner with a different activity so that means one party in different different systems we are creating
multiple Master records somewhere we are saying that it is sold to party somewhere we are seeing it is
customer somewhere we are saying it is supplier now everything is merged together and now it is one
master record we are going to create and that is known as your business partner okay so this will
business partner when I'm saying business partner business partner is common and same will be used in
multiple systems mostly it it will be handled by the logistic but as we are going to do everything so so
this we will do so business partner like at high level we are going to create one master record as
business partner now if we'll check that particular document once again I will go to the same document
huh this one right business partner we will get it from the vendor invoice let's take this number 241 this
is our vendor this business partner created and this business partner with different purpose in different
time I can use this one for a different like for example this business partner I created centrally this one is
created not for finance point of view not from logistic point of view or purchase point of view sales point
of view this one in general I have created with this business partner I can perform here various activities
I can perform here just now you have seen that I can use this one for my Supply I mean purchase point
of VI so that time we are saying that it is our supplier assume that same party is our customer too so
same business partner it's not always required but if in that case we can also use it for the sales that
means now it is our customer again when we will purchase it as he said that we are processing nonp
let's say they have two operat PO with po I mean with integrated with logistic not integrated with
logistic so in that case we can use this one only for the finance point of view that is also possible and
logistic point of view also same here also we can use it without sales order with sales order we want to
do a credit management uh credit analysis so that time I can also activate credit analysis role ultimately
my master record is business partner and in different time we are going to activate different rules so as
for the need and as for the configuration so role activation is very simple user can select a role but the
backend configuration should be there so if I want to activate a certain role let's say right now we are
using only without sales order now we will go with sales order so in this case SD settings are required
because some more informations related to that business partner we need to add from the SD point of
you so that is why the business partner we will create centrally at high level then as for our requirement
we are going to activate different roles but again before activation of certain rule we need to activate uh
we need to configure the other configurations so till now we have seen the r2r process and the P2P
process in between also we have seen the something related to asset in different way because R2 AR
covers asset also now coming to the next process which is your order to cast just opposite of purchase
when you are going to sell something and we are going to for that what is required so cost center
accounting this also cover the order management order management is a very small tool which you are
going to use in multiple place this one we are going to use in uh r2r this one we are going to use in
production order we are going to use in asset also so in different time we are going to use this particular
tool then I have explained you the P2 P process now coming to go Toc again here also if you'll see the
same process so accounts payable is purely related to finance but before that the integration must be
completed so invoice this here Pro invoice processing with logistic without logistic C is doing without
logistic the process what I have shown with logistic and we will also post some a bas6 entries but we is
very easy then the payment and for this payment make sure that the bank's configuration should be
there and when we will do the bank configuration everything related to bank also we will simultaneously
complete it like if we'll check this one Bank point of view designing the bank operations and all and uh
particularly this one is very very important the bank reconciliations so right now if you are doing
manually bank reconciliation you know how difficult it is comparing two set of data from Banks like what
the bank statement we have received from the bank and your system data if you are not using sap and
how difficult it is because it is it is very tedious of actually but whereas in uh in sap it is couple of seconds
activity user is just going to upload the bank statement and after that if everything is smooth or if it is
configured properly so the pro program is going to run both or it is going to compare two set of data and
if some differences will be there system is going to post those transactions system is going to clear those
transactions or if something mismatch this will be highlighted so it is just even uh we will create One
bank statement we will create dummy bank statement and we will upload you will find that it is couple
of seconds activity it will not take more than 10 seconds if it is properly configured yeah I will show you
the o2c cycle let's take some customer invoice this one you can see this item is cleared through the bank
reconation this one that's why I can see the tag here from this one I identified is cleared through the
bank bank reconciliation okay so let me take this item now right now accounting point of view I can see
this is one accounting document or customer invoice is there but if I want to see the detail one again
here also the complete information is there multiple activities are there now why this uh FY SD
integration is important or order to cast when I'm saying order to cast it is business process but actually
this is your fisd integration so this one so order to cast again sales order then outbound delivery then
invoice then finally collection or everything related to collection so here prerequisite is FIS SD integr this
FD integration is important for currently our uh business process related to order to cast plus related to
Copa marginalis because when you are going to sell something that Revenue we will transfer to
profitability analysis when we are going to uh do the outbound delivery that cost also we are going to
transfer to cost of sales which you are saying that also we are going to transfer to Copa so that is why for
this Copa point of view or marginalis point of view fisd integration is required for cost of production
fimm integration required and for profitability analysis Copa is required okay so Copa part I will come I
I'm moving systematically so goopa once I will come that time we will see this one right now you can see
multiple documents are there so initially we did the SD settings then we did the FD integration then with
reference to this wherever you can see the co documents are there controlling means data transfer to
Copa but right now I'm not going to that otherwise we will deviate from our current topic now same
thing let me show you from the f and this one I will take this billing document from building document
we will identify the process let's this one is more user friendly I believe even without any sap knowledge
you can understand this one 3 4 5 35 I got this document let's analiz this one again here also business
partner concept will be there so that means when you are going to the sales order so business business
partner with sold to party role should be activated or that particular functionality need to be activated
now I want to see the process flow so one order created sales order with reference to the outbound Del
done then invoice then accounting document which is your invoice with reference to this invoice we got
the accounting document then it is cleared then it you can see message there fully cleared and all the
information related to our uh uh fisd integration which I can see in this particular uh particular
applications right so I want to see the partner information with this partner what activity I have what are
the roles I have activated sold to party I have activated again it is related to SD during configuration we
will see Bill to party I have activated payer I have activated then I want to see uh all the terms condition
because user is not going to fill the information User is not going to f what is the selling price whether
we are going to give the discount and all so user is going to just sell to whom we are going to sell and
what the product we are selling how many quantities that's it automatically system is going to do a
detail calculation and whenever whenever it is automatic that means in back end we have to do the
configuration right then pricing informations this calculation I was doing that means this particular
selling price right now that uh 500 is selling price we are giving a trade discount or our sales reduction
1% so that is tax cash discount is also there cost is there this table whatever it is updated user has not
entered anything user just entered to whom we are selling how many quantities and what we are selling
automatically as for our configuration this informations will be there tax information so each and
everything informations will be automatically it will be there and for that fisd integration is highly
required and once you have the invoice then we will go for collection so when we will go for collection it
will manual collection or it will be through EPS clearing one line item was there for clearing then either it
will be a check deposit clearing through check so all these things will be there whether Advance will be
received or not if Advance received how we are going to settle so anything related to collection when
we are handling that we are saying that accounts receivable when we are seeing the end to end process
that is your fi SD integration clear this one any question I'm clear sir right till now what I have explain
these are all easy process because everything related to finance point of view we are uh exploring right
in total till now what I explain if I will see what are the important areas from your project point of view
and from the interview point of view mainly you will get questions from FD integration fimm integration
or some part related to asset account asset accounting of course is uh important because uh everything
related to asset is very important uh let me show you the content once what to see yeah this one so
asset accounting is it's a important one where we are going to see all type of asset Acquisitions internal
external right so a part we will see depreciation calculations retirement each and everything will be
there except this one and uh particularly if you'll see fimm integration integration part fimm fi
integration SD integration the receivable payable part is bit easy and uh cost center and all it's easy then
coming to GL yeah this one is uh bit tricky because here uh document splitting and all will be there and
that also we are going to see in detail next coming to your uh cost calculation here one part I uh missed
that is your profit Center accounting profit Center Accounting in every business process you will not get
it wherever marginal is not used or Copa is not used there maybe you will find the profit Center
accounting so comparatively profit Center accounting it is easy but we will add it because um we will
explore the document splitting part right so couple of document let me show you from the document
splitting so that you will get some idea document splitting and segment reporting it is part of a part part
of again an r2r process so here you can see uh some profit centers are there this F100 and f200 now this
document it's a sales invoice but this one is not uh integrated one like the previous document uh we
can't see here the logistic part because this one is non sales order that means manually user posted
these documents here no Integrations are there okay now if you check this document this document
accounting point of view it is correct but reporting point of if it is not correct for example what is profit
Center very high level I'm explaining profit Center means we can take profit Center anything it can be a
product it can be your operation I'm using here operation so for example let's say sales service we have
two operations we want to see the cost from revenue uh we want to see the revenue from our sales
activity and revenue from our service activity similarly cost from revenue activity and so all the cost
center will pass through the profit Center difference between cost center and profit Center is cost center
where we are only actually uh only we are capturing the cost whereas in profit Center we are capturing
the cost and revenue both so comparatively if we'll see the pro if we'll compare this one with the Copa
this is bit easy or it is single L for example let's say you have taken the product so our product is you can
see here check this one so here if we are going to take different product as my profit Center so these are
my different products and these products are our profit Center so how much the revenue we have
generated from this product that we want to take and what is the cost for for this particular product
that we want to take so that we will do the profitability analysis by using profit Center accounting profit
Center always it is part of one segment so when uh like as for the Norms if 10% of your revenue for one
particular particular product let's say this particular product is more than or equal to 10% of our total
business Revenue so in that case segment reporting is mandatory or profit 10% of your profit from this
particular product then segment reporting is mandatory if segment reporting is mandatory for that
particular entity then profit Center is also required because without profit Center segment won't work
because during transactions we we never use the pro uh segment we used profit Center and profit
Center is attached with the segment so in in this case profit Center is required or where profitability
segment not applicable let's they don't want go for all these complications related to profitability
segment although it is definitely it is the good one but the business process is very simple let's take
example our examples Insurance in that case profitability segment is not applicable because they have a
very simple business process they have few products let's say this insurance products as they they can
take the profit Center and they want to do a cost and revenue analysis but let's say segment reporting is
also applicable so that means in that case two requirement segment requirement segment reporting is
required for that purpose profit Center is segment is required plus as it is service industry so they want
to take the profit Center also so in that case instead of profitability segment it is advisable they should
go for profit Center accounting any audit form they should go for profit Center accounting again
whatever example I'm giving it's not mandatory that business they have to adopt the same only anyway
business will take the decision which they will go for but obviously they will go for profitability Segment
then consulting fee will be high more configurations will be there so as for the need it is observed that
mostly manufacturing companies where multip I mean products are more multiple business process
markets are like South Zone a different strategy they are applying North zone different strategy they are
applying in different countries different strategies are there and they go they are going for a high level
reporting by using PW in that case profitability seg or marginals is helpful if business process is simple or
product is a service industry in that SK profit Center will be there and we are going to use the both so
that you will get the flavor of both the area now if I will check the same document here now this one
accounting point of view it is correct but reporting point of view it is not correct if you'll check this one
right now this profit Center which is part of this segment having the credit entries this profit Center
having the credit entries but this this is another profit Center is there which is not balanced now this
profit Center debits are missing this profit Center again debit is missing for this profit Center some credit
is there debit is missing for this profit Center debit is there credit is missing in this way if we will prepare
the balance sheet or pnl then it will be incomplete information so accounting point of view or document
may be perfectly posted but reporting point of view it is not perfectly there so as a result your reporting
will not work so it is part of of r2r now if I will go to another view now you can check here now it is
properly balanced so you have equal debits for your profit Center f00 and you have equal credit for your
profit center f200 now this document we got the result after document splitting in this case the
document is not splitted properly this document is not splitted properly but in this case document is so
we have active splitting passive splitting and zero balance splitting are there so in different different
scenarios we will see this is one area which is also very important from R to R document splitting fine I I
missed this one okay now coming to the next one what we have here call center I have given some idea
which is actually we will use in our product costing as well as for recording of the transaction so these
are the different activities we are going to do with the cost Ander accounting recording of the
transactions the month end allocations and all then coming to the main part which is your product
costing product costing means when you are going to calculate the cost of a product that is known as
your product costing it seems very simple but it is too much complex so product costing again includes
PL cost then we have uh cost object controlling now what is PL cost what is the prerequisite for
broadcasting all till now whatever the like uh the configuration related to GL The Ledger settings and all
fimm integration PP settings and all its integration Co settings related to cost center and all all the
activities related to cost center must be completed before this product cost calculation now for this
particular plant what are the products I have it's already done just I'm showing the end result so here it's
showing that one finished product is there 104 and I want to see here this particular product what is the
plant cost it's already calculated just I want to show you here product cost calculation divided into three
segments prod cost planning means planning cost then cost object controlling which in general we are
saying actual costing and actual costing with material ler right now I'm the first part of this one being
user our job is just to execute the cost calculation process it's already calculated I'm just showing it and
it is very easy for me automatically system calculated this cost and the cost of the product is 5739 INR
but there are so many components are there in this cost calculations can see it's not showing properly I
mean it there in technical way but let me show you with the product name wise so these are different
components are there by using like this is my cost component structure that means how I got this price
5793 5 by having this inputs now so many things are integrated with each other if I will expand further
now what is the prerequisite here as as I said the detail configuration related to co should be there
because this includes different type of my cost centers right so if you'll see here if I will show you the
cost center hierarchy for this particular entity these are different cost centers I have these are the Strate
standard hierarchy related cost center and we have used different cost centers in our cost calculations
mainly you will find in your cost of production calculation your operation cost centers these cost centers
actually it is integrated with the pp or production cost centers but in entity or in organization we have
other cost centers are all there like some service cost centers are available right so we have some other
cost centers are there so that is why it is responsibility of the co team the costing team they have to do
the cost allocation in the month end activities so when they will perform the month-end activity related
to cost center again the reconciliation document will be generated and those reconciliation documents
are part of r2r month and activity related to co will be handled by the costing team but output which will
be generated reconcilation document automatically it will be part of r2r which is your reconcilation
process now if you'll check your cost run report there you will find these three cost centers are there 1 0
1 2 3 1 0 1 1 0 2 1 03 then here you can see some 90 there so if we'll check that diagram the cost
calculation yeah so here you can see every cost center is linked with certain activities because when you
are going to manufacturing anything we don't have any automated process in machine you are going to
put all the your raw materials and other one you are going to get the finished product so we have
different processes are there somewhere we are doing welding work somewhere we are doing some
assemble work somewhere we are doing some electrical work so these are different processes are there
and under one process multiple activities are there so this one is closely integrated with your p module
because operations need to be designed in PP and cost will be calculated in Co so parall it will work then
only we are going to get the output here in advance we have calculated this particular cost of this
product that means like when although maybe a demonstration point of view I have executed this one
on 22nd October but this activity should be done in advance before commercial production so that
means if we are we are uh it is just budget you can say we are saying that if we are going to calculate the
cost of uh if we are going to do the manufacturing of the product as per historical data the cost of the
product will be this much then once you will go for actual cost calculation so it may be the same or it
may be more so this includes your material cost wherever you can see different material components
this includes material component material cost this includes various type of activities related cost this
includes over calcul cost then this includes here you can see semi finish it is also this scenario is related
to multi level cost calculation because when you are manufacturing something that FG includes semi-
finish product also right so sfg also separately calculated suppose I want to see the uh sfg cost which is
right now it's showing this is 5115 which is included in my final product but separately I want to see that
particular one let's take that one 107 so uh FG cost is showing 573 and here I can see semi-finish product
is also there so what is that semi-finish product 107 I want to see that cost because it is calculated
separately and uh it included here separately means user is not going to do any separate activity
calculated then they will add manually it's not like that system automatically be calculated but I want to
see that price as well so here also you can see a detail calculation of that particular sem product okay so
it seems like separately it is calculated and it is merged here so this is how we are going to do our
configuration user is just going to run a report couple of seconds activity but back end system is going to
calculate it in such way that that that particular product component includes everything so here it is
calculated 5527 and which is merged here that includes some additive cost also I can see so every
component I can see here and if I need more details then I can just double click one line and I can see
that so this is our cost calculation topic but it is one/ third of your cost calculation and from your content
it is PL cost once your plan cost is calculated then next will be your actual cost plan cost in advance we
are calculating maybe once in a year once in a quarter once in a half as for the period you have defined
then next U then we will then we will start the commercial production every period we are going to
perform the cost calculations right so that is your known as your cost object controlling you will take one
cost object let's say production order with reference to the production order we are going to do the cost
calculation check the PPT so this is the enter process different components are there which includes our
like if you'll see what are the components this includes material cost this includes activity cost again
material cost is coming from Bill up material activity cost is coming from the routing from the pp then
over it so all these things are going to merge together which already you have seen in this particular
report which here you can see multiple things are there now this one is cost center sorry these are your
cost center 1 01 this these are your activities this is your work center the this is overhead this is your
material material is coming from mm module this work center is coming from PP module this one is
coming from Co and in total cost is calculated so once the plan cost calculated then next we will proceed
with the actual cost calculation now actual cost calculation point of view production order will be there
okay so first we are going to calculate the standard cost which is calculated this is our standard cost this
one is standard cost what is next so once the standard cost is calculated then we are going to calculate
the simultaneous cost now what is simultaneous cost for that we have to go to the production order so
everything all business process I'm showing in the same company code so in every B I used to create a
new company code and there we will explore everything let's just randomly I pick this particular
production order now here with reference to one production order I can see another another
production order is there because this FG includes semi-finish stock also let me check this one it's
showing that three units I'm manufacturing three units 100% yield is there that means by the end of the
month by the end of the period production will be completed this one is difficult to understand until
unless uh you will not continuously uh follow the process because multiple steps are involved here and
each and everything is connected with each other but still try to get the idea at high level last one when
I I was showing the plant cost it is for one product that means if you're going to manufacture one
product then what will be the cost this one in a batch so if you're going to manufacture this or if you're
going to uh produce this batch then what will be our cost okay so first one is your preliminary cost
preliminary cost means the First Column if we are manufacturing three items no production started just
we have created the production order again who is going to create the production order PP department
so if they are going to start the manufacturing today then what will be the cost on the basis of plan data
because actual production is not started then Goods movement will be there activity operation will be
confirmed so that is known as your simultaneous cost which right now I can't show you because actual
cost is already calculated but in between one process will be there simultaneous cost calculation here
you can see the plan data and and the actual data so which is different plan data and actual data is
different okay so first preliminary cost calculated then simultaneous cost calculated then Target cost will
be calculated then finally we are going to have the production receip so initially when we have
calculated the simultaneous cost so that time uh the overhead is not calculated as a part of process and
initially the activity cost is also not properly calculated so whatever the product we have received the
production received is there that is not properly calculated like material component material part is
prop properly calculated this activity is not properly calculated and the over is also not calculated so that
is why we will go for the month and process which is known as your reevaluation of cost so during
simultaneous cost calculation during simultaneous cost production order created operation started
material cost is properly calculated but activity cost is is not properly calculated because we don't have
the data actual cost we will get in the month and only over it is also not calculated so that's why we are
going to do the period and closing activity related to production uh product costing or production order
so revaluation of activities at actual price because actual price of the activity we will calculate only in the
month end so that will be calculated overhead will be calculated then end result will be either it will be
variance or it will be your WIP here you can see some differences are there right right now means your
plan cost and your actual cost difference is there of course it will be there so if that variance will be
there that variance we need to transfer to different place it will be reported in fi it will be reported in
Copa it will be reported in the material Ledger also so same like after uh doing the month end activity all
this period and activi is done next same figure I'm going to show you in two different three different
place first let's see whether we are going to update the difference in the product or not so again
material leer and I want to see the difference which is right now it's showing here right now in
production order or which is my PP data 1 19525 it should be reflect in the material ler right now in a
different product now you can see here with reference to that particular production order this one is
reported okay uh let's first identify the production order so what is the production order 1 152 1 0 152 1
152 the difference is there user is not going to do anything user is just going to perform couple of
activities and system is going to do the calculation of variance and system is going to settle this variance
it is updated in our material ler plus it should be there in my pnl as well we know that variance should be
part of your FY pnl now this is r2r again so I want to report that variance or it should be reported in
variance in my GL Report with reference to that production order that that one is reported so it will go
to fi report or your pandl if you have internal profitability analysis then it should reflect in the Copa as
well let's check that too so here multiple other line items are there you just ignore we will check our
current line items which is this one 199 525 so when the variance we have calculated so it is settled in
Copa report it is settled in finance report it is settled in materializer because three different users are
there which they are going to use different materializer will be handled by a different team this one is
handled by the finance team when they will prepare the pandl and this one is handled by the
management reporting point of view internal team but output generated and it is there in so now if
understand this process first we have calculated the plant cost then we started doing the operation
various type of cost we have calculated then end result we have calculated the variance and that
variance we have settled in the month end but again within this around 30 activities will be there
different type of activities we need to perform then only we are going to get the end result user is not
going to do all things everything we are configure in the system so user will just perform couple of
activities and end result will be there second case if production not completed let's say this month
production not completed and today's closing date so in that case something completed from the batch
let me take another production order for example this one so here you can see five items I'm
manufacturing but actually Four complete one item wiip so if this one is not completed so four item you
are going to show in the balance sheet that is finished stock and one item that also part of balance sheet
that will be treated as your working process so the Entre process will be same but the end result will be
different so here the WIP value is showing again it should be internally calculated need to be calculated
in the system so the wp value is 31 uh sorry 34 31.6 so that should be reported in the finance in the
balance sheet check that production receip that is FG whatever items not completed that should be
recorded here so with reference to production order 154 1 154 it's there right so this one one at AO we
are going to complete this production cost of production calculation this one this is my plan cost this is
my actual cost result analysis WP calculation and variance analysis so in between lot of activities we
need to perform and simultaneously also we will work on Copa which is known as your marginalis
because when you are saying Copa that is the previous term where few activities are there and under
marginalis so many activities are there right for example this is a copar report I'm showing like for
example here let's say when we are going to profit Center and profitability Analysis profit Center
whatever the result cost and revenue analysis Prof profitability analysis also same so when you are
taking profit Center just a product operation anything you can but suppose this is you can see here this
is a revenue posted no not this one this one this Revenue postate here now with this Revenue posting I
want to include multiple segments together okay for example if I want to see the profitability segment
so here I have included customer product I can include here sales order informations here sales
organizations there so many characteristics as whatever I want I can include which is not possible
through profit Center accounting otherwise both are the same result it will get but weightage point of
view profitability segment is going to give you more weightage because it has more options like it it is
known as your multi-dimensional report so if you're are selling something we will take that s now this
1,800 also it is there in the FI let's check the fbl 5 and report once again customer invoice 1,00 so how
we got it again source is your original document is your sales document so when we perform the sales
invoice with reference to the billing document we transfer the data to finance it is your fisd integration
plus if USD integration is there so this 1,800 I transfer to my profitability nases now this data is part of
my order to cast as a process integration and it is part Clos it it is part of my r2r because ultimately the
reconcilation data we will take into our balance sheet so this one is part of my r2r o2c both and this
1,800 also we have transferred to our profitability segment internal reporting point of view plus we are
doing cost of sales when we are doing the outbound delivery that time we are doing the cost of sales so
when this figure if will check like here if you see what are the items are there in the profitability analysis
point of view so Revenue we will transfer to profitability analysis this sales deduction it is also cost it will
be also reported in the FI that is your discount the same should be reported here also 18 is also reported
can see GL account 4,000 and 307 4,000 307 plus it's balanced item so in Copa we will not take balance
sheet item because we will only take the pnl items now this is again balance sheet item just ignore but I
want to see the cost so when we will do the outbound delivery with reference to that the accounting
document also will be there and Copa document will be there let's check the complete history with
reference to outbound delivery our logistic document generated plus accounting document generated
this is my accounting document so what is the cost of sales 11479 which is reported in the FI that is also
there so everything whenever we are going to perform any activity in the finance simultaneously
through any cost object we will transfer to Copa if you're saying cost center I'm using as a cost object
then it will be reported in cost center and we will take into cost of production if we are taking through
internal order then that we will transfer to Copa maybe directly or indirectly now this value you can see
this cost initially recorded with some other cost object but in month end this cost transferred to Copa
like let's take this one this 300 let's see so here various type of cost I have recorded this is one cost
object I have recorded and out of that I transferred some cost to this profitability segment right so this
one I want to see this one 8 which is of course secondary cost element that I want to see here now in
this you can see here this one 5508 it is in USD so don't get confus with this amount so this GL account
5508 which is included here 5508 5508 642 USD equivalent INR now whatever the things I'm showing
here which is user point of view data is readily available in back end we have to do detail configuration
then only it is going to work here so whatever I have explained it is supported with a business process
and on that basis so when we will do the configuration it is highly required that we should understand
the business process then only we will do the system configuration because system configuration is the
most easiest thing if you understand the business process in detail because first we have to understand
the business process then we will identify the gaps what are the issues are here or what business is not
currently using then accordingly we will do the system configuration then after that uats need to be
prepared so a script will be prepared so if everything is fine then test script will work perfectly or testing
will be correct or maybe if it is not correct then it will be failed so in detail we have to capture each test
script so that that's why initially I said that you need to submit your test script because configuration
whatever you are doing till the time it is not tested everything is correct in test script or when we'll do
the testing that time we will see actually whether it is correctly configured or not so with this all the
business process uh configurations are done right once it is done by this time you are done with all the
configuration all this next we we will go to the migration part when we'll do the migration if you'll go to
system you will find two nodes are available one is the general configuration which we are doing fi
configuration we will do Co we will do mm we will do SD we will do production we will do and Enterprise
structure or structure plus you can see another one is there conversion of accounting to S4 in this case
business are not new to sap they are using sap they want to upgrade to s4hana which is your migration
and conversion and by the time we will reach here you are also not new to this business process
because by this time already you have configured all the business process this time our challenge or for
you it will be new that how to handle the conversion projects because this time our Focus will be the
technical part okay because whenever we will do the configuration we will also explore the table part
we will see what are the old tables are there what are the new tables new table everything is part of
universal Channel as some people are not familiar table so that's why I'm not used the table here but
every time whenever we will explore any report so we will check whether it is updated in the S do table
or not or what are the tables are earlier it was they are index TBL segregate total so that we will do a
comparison because here when we will come to this part lot of technical things will be there okay so
because this one is configuration will not be the challenge for you because by this time you already
configured everything from the scratch this time your challenge is how to do the data monitoring how
we will do the data migrations or we will handling the uh what you can say conversion so these things
we will do so it will take two weekends almost uh to handle this one so this is how we will plan our uh
program I hope uh uh it is clear now you can ask your questions and feel free to ask any questions
whatever you have please go ahead with your question uh sir are we going to cover about the
Landscapes that is the first part that is the first topic system landscape system architecture and all
without this how we will proceed further so we will do a comparison with ecc2 by unit one and you said
in the initial lecture you said simple Finance so I I have never heard about it that is the old term so
initially when uh sap like uh earlier it was ecc6 was there then few ardan features were there
particularly the versons 1503 1506 uh 1511 also that time full fled logistic solution was not there and
this particular I mean that product was not that good which is going going to complete the sap Erp and it
is having some addon features so that means if companies they want to go with uh simple Finance they
will continue ecc6 as their full Erp plus few add-on features they will get if they are going for simple
Finance so that time few projects was there simple Finance but nowadays there is nothing called Simple
Finance because we got the S4 Han Enterprise management so that is uh full faser Erp MH so in that
time like mostly will find in 2015 16 17 in these years simple Finance was there sir I have a question uh
being a user from last 13 to 14 years in the production so I worked in the domain of P2P o2c as well as in
the segment uh in fixed assets as well as in the uh General Leisure accounting so uh with the help of this
training so do I need to have a practical experience on the uh implementation to get the certification or
after for the training can I apply for the certification definitely you go for certification uh okay what I
explained everything from the handson point of view I have explained each and everything which we are
going to do the system configuration when you will go for certification certification is completely theory
that means uh you will register with sap then you will go for certification better I will open that I will
strongly suggest go for certification uh because if you're is not sponsoring most of the time your
company will sponsor if your company is right now not sponsoring then at least go for one certification it
will give you the advantage when the uh interview point of view all the certification is not giving any job
Guaranty but it will help you in CV s listing and if you're company sponsoring then go for all certification
okay sure sir let me explain what are the different certifications are available three uh two type of
certifications are there one is your professional certification another one is associate certification so as
you are new so you will start with associate certification so in associate certification uh we have two
certifications are there one is fi separate and Co separate whatever the topic I touch so you will find the
questions will be there from what will be the cost there are two options are there one is you can see this
price it will be if you'll add the GST and it will be 50,000 so you if you are going to pay this Fe you are
going to get six credits one year will be validity So within one year you are going to complete the
certifications you are going to get six attempts and multiple products so if you'll go to this uh uh see all
the certification includ in the sub subscription multiple certifications will be there your wish which
certification you want to get because you are going to get six attempts here uh here you can complete fi
certification so these are the topics which already we have explored these are then you you will go for
Co certification separately because as you already paid 50,000 no separate cost for you so uh Co topics
or it will be their certification point of view plus you can go for professional certification that is uh also
included in the same cost here now what is the difference between associate certification and
professional certification when you will go for associate certification more questions you will get it from
the business process Direct business process when you will go for professional you will get the delta
questions means comparison between ECC and S4 so that's why I said that a detail comparison with ECC
we will do and second thing the migration so here focus more on migration more question you will get
the M migration point of view and question quality also will be like it will differ comparatively you will
find here straight questions here you will get more scenario based questions so always it is
recommended associate certification once you will complete then go for professional certifications and
cost point of view let's say your company sponsoring I will strongly suggest go for all certification if your
company is not sponsoring and you have to pay it from your own then go for one certification at least
you can see the price is 20,000 including GST here you will get one attempt one time you are going to
pay one time fee and one attempt if you have not cleared then gone whereas here you are going to get
six attempts now what should be the approach for the certification certification questions you will get it
only from the sap book nothing else right but as you are going for the training so that time we will do lot
of Hands-On and all one let's say we have completed one topic un need one completed or you need two
completed immediately one time read those books so those books are bulky so it is multiple times you
can't read almost you will find that if you'll combine all the books eight books will be there it will be
more than 2,000 which you can't multiple times you can't read but I will suggest at least go through the
particular material one time let's say particular topic completed then uh go through this then uh from
my presentation and from your that material you will get some inputs prepare your own notes once that
one is ready then take the mock test so I will activate the mock test take take the mock test so around
600 plus questions you will get from the mock test and it is like in in software you will log in and you will
take the test time will be there so exactly you will feel the same certification feel so then evaluate your
score how what is how much you are scoring in the mock test when you will feel that you are scoring
like more than 80% because what is the passing Mark here in every exam passing Mark will be different
but it will come some around 65% so once you will score more than 80% then go for certification so
certification is completely Theory based even without touching the system you can clear the certification
you are good in the uh Theory but if you'll do the handson you already configured every business
scenario in the system that time it will be easy for you preparation point of view otherwise lot of things
you have to mug up the learn learn byard the things with Hansen it is not required so Hansen will help
you to do give you the Practical experience practical exposure and uh this theory is going to clear the
certification

COMPANY , COMPANY CODE , CREATION AND ASSIGNMENT

as a part of the configuration first we have to start with the company if you see the step number 1.1
company so what is company first we have to understand the meaning of company in sap so here see
you take any company every company will have some number of departments some number of plants
and some number of branches and so on so these are called organization units in the company and one
organizational unit is linked with the other organization unit in some way or the other way i am coming i
am coming see here if see every company will have some number of organizational units like branches
manufacturing plants then departments etc etc so these are called organization units in the company
and one organizational unit is linked with the other organization in it in some way or the other way so
this relation is called entropy structure or organization structure so this enterprise structure is separate
for every module for f5 a separate enterprise structure is there for mm separate enterprise structure is
there sd pp hr like that for each module it will have its own enterprise structure in the real time the
respective functional consultants will create the enterprise structure all the respective modules a fi
consultant will create the fi enterprise structure and the mm consultant will create the mma interface
structure co consultant will create co enterprise structure and so on so here our module is fico and in
faceo first we start with f5 so once fi is completed we start with zero so the main purpose of f5 is f4
means financial accounting so the main purpose of financial accounting module is to prepare the
financial statements that is profit and loss account and balance sheet so the main purpose of financial
accounting is to prepare the pnl account and balance sheet according to the legal requirements of the
country in which we are doing the business so that is the main purpose of financial accounting
component now from the viewpoint of preparing pnl account balance sheet you take any company in
the world right you have at the top you have the group so you take any company in the world for the
purpose of preparing financial statements at the top you have the group so group means you will have
some number of individual companies so like individual company one and individual company two it
seems that somebody has chandrasekhar can you please meet yourself yeah thank you so group means
it will have some number of individual companies for example individual company one individual
company two individual company three individual company four and so on so a group can have any
number of individual companies so every individual company may be carrying on business in different
geographical areas like for example individual company one is carrying on business in washington
california new york then individual company 2 is also is also carrying on business in washington california
new york new jersey houston etc etc so this is the general enterprise structure for any company in the
world for the purpose of preparing financial statements it is very important for the purpose of preparing
finance statements only if you translate this general enterprise structure into real time let us say group
means ga group so here the assumption is the gg group of companies have purchased the sap software
from sap company now it wants to use in its business so we are going to configure as a fi consultant we
are going to configure this fsu software to the gu group of companies now under the gu group you have
some number of individual companies like ge infotech incorporation ge proper meals and corporation ge
real estate incorporation ge technologies incorporation like that a ge group may have any number of
individual companies now this ge infotech incorporation is carrying on business in in washington
california then ge paper mills inc incorporation is also carrying on business in washington new york new
jersey california etc so this is the real enterprise structure for ge group of companies for the purpose of
preparing financial statements now you have to translate this enterprise structure into sap so group is
always called company in sap group is always called company in sap and these individual companies are
called company codes in sap then the geographical areas in which the company codes are carrying on
business are called business areas so here company company code and business areas are called
organizational units in finance accounting so as a starting point of configuration the fi consultant has to
create the company company code and business area so what is the meaning of the company now as i
said company always represents group so at the company level we can prepare the consolidated
financial statements consolidated financial statements means some of the finance statements of ge
infotech incorporation and ge paper meals incorporation that is called consolidated financial statements
so the definition of company is purely optional definition means creation in the normal terminology we
call it as creation but in sap terminology that is called definition so the definition of company is purely
optional because here please remember one point if any reporting is legally required that is mandatory
but if any reporting is required according to will and wish of the management then that is called optional
so in any country there isn't any legal requirement that we have to prepare and present the financial
statements at the group level it's not legally required but if the group management wants to know the
consolidated financial status then only we have to create company that is the meaning of the company
so for each object here company is called one object means at the time of creating company we have to
give one identification so that identification can contain up to up to six characters and it is alpha numeric
so alpha numeric means we can use numbers characters and combination of both and a company can
have any number of company codes logically speaking company represents group group can have any
number of individual companies individual companies means company codes so that is the meaning of
the company so here mapping the enterprise structure into sap means creating the organization units of
your client company in sap that is called mapping the client enterprise structure into sap so that is the
meaning of the company so i explained this company right then this explanation is documented in your
notes company i have written this explanation in your notes company represents the group it contains
up to six characters it is alpha numeric the definition of company is optional a company can have any
number of company codes so that's how every concept first i will explain with the help of the
presentation then after that that explanation is documented here in the notes now you have to create
the company so for that first we have to log into sap see here some to some of you i have provided sap
access right others did not mail me whether i don't know whether they have installed sap gui or not
right so if you have installed sap gui please mail me i will send you your username and password today
okay so we have to log into sap servers now for that double click on sap log on icon and this is the server
we require select the server click on log on button and client is 800 user is i'm entering my user id
lakshman and i'm entering my password then english lagooning lag on language english so click on enter
after entering all this information you just click on enter now you have logged into sap okay now in
order to create the company we have to access one screen so for that screen i have given the path here
and this is the transaction port so you can use either path or transaction code you can use either path or
transaction code now here we are going to cover the consultant training and the end user training in our
classes so as a consultant first we develop some settings after settings are developed we post some
transactions as an end user then we will see the output we will see the reports everything now how do
we know which activity we are performing as a consultant and which activity we are performing as an
end user see i will tell you one rule right for any screen if the path starts with the spro for any screen if
the path starts with the sp ro then you can take it granted that that is the job of the consultant because
spro is the transaction code for img screen and yesterday i told you that img screen is completely used
by consultants i hope it's clear so for any screen if the path starts with the spro that is the job of the
consultant and if the path starts with something else other than spro that is the job of the end user
that's how we can remember right now so spro is the transaction code for img screen okay so the
transaction code is always to be entered in the command area of sap easy access and we are in sap easy
access only and this is the command area so here you just enter spro then click on enter so spro always
implies clicking on sap reference img also this is sap reference img click on this now you have logged into
img screen after spro we have enterprise structure so this is called enterprise structure folder you just
click on this then that is opened into subfolders now after enterprise structure we have definition this is
the definition subfolder click on this so after definition if you see the material financial accounting is
there so this is the financial accounting subfolder click on this so after financial accounting we have
defined company right so this is defined company so against the defined company you are noticing one
clock like symbol rate this clock like symbol is called execute symbol so whenever you notice the clock
like symbol after that there is no path you have to click on the clock like symbol so define company now
already some companies were created in this system by some other students already older students
now we are going to create a new company so in our class i am going to take you through the total
accounting process in sap then at the end of f5 i will show you the balance sheet and p l account so here
we are going to create a new company for that purpose if you see the material click on new entries this
is called new entries button now in order to create the company we need to provide some information
here and these fields i have typed in your material these fields i have typed in material right so every day
in the class you have to write something against these fields right so for the company we have to give an
identification right that identification can be anything means it is also alphanumeric so company name is
equal double three double six lg see you have to write it now in your material it is the identification for
the company company is called double three double six eight you have to write it in the material now
company name is called lg group of companies you have to write it like this now company name is called
lg group of companies now ct is equal to yes these are the financial statements right that is pioneer
account and balance sheet so these financial statements are to be submitted to restore of companies in
india i'm talking register of companies then stock exchange votes because if you are the listed number in
the stock exchange you have to submit your financial statements to the stock exchange and if you have
taken any term loans you have to submit the financial statements to the banks and income tax
authorities your sales tax authorities etc etc and these financial statements yes p l account and balance
sheet and other statements right notes to the balance sheet is also there okay so these two statements
are to be submitted to these legal authorities okay and in india we prepare the finance statements
according to schedule six of companies act 1956 the recent company's act is 2013. okay now clear so city
is equal to washington please write down the material city is equal to washington means the ge group of
companies headquarters are situated in the washington city country is equal to u.s means the group is
basically operating from usa so we have to give identification for the country if the group is basically
operating from india then we have to enter identification for india if the group is operating from
denmark you have to enter the identification for denmark if the group is operating from germany we
ought enter the identification for germany so how do we know the identifications for the countries look
at the screen please here if you click on this button the system will display the list of countries so you
can see here 235 entries found means 235 countries were defined in the system and it's not necessary
to remember the identifications for the countries right so from the list you can see the identity you can
take the identification suppose if the group is basically operating from bangladesh we have to enter the
identification for pd if the group is operating from switzerland you have to enter the ch if the group is
operating from china cn denmark dk great britain gb so indian malaysia my then united states yes like
that from the list you can find the identification for the respective countries suppose if you don't find the
country you require in the system you can create our own you can create your own country but how to
create your own country we will discuss later on because the first class only right that's what i'm telling
sunip right so if you don't find the country you can create you can define our own countries but how to
define our own countries we will cover after some classes okay but in most of the cases almost all the
countries have been defend the system so you can press on this f4 sorry this button otherwise just to
keep the cursor and press f4 function key and the same list of countries are also available in the real-
time software also and it's not necessary to remember the identifications for the countries so country is
equal to us within brackets f4 within brackets f4 language is equal to en en for english language is called
english then suppose let us assume that we are going to configure for a company in japan let us assume
that the japanese company wants to use japanese language only in that case we have to enter the
identification for japanese language so if you press on your 4 you can see again the languages 41 is
found in the first class of navigation i said the sap software was developed in 41 international languages
so these are the 41 international languages so if you want to use japanese language you have to enter if
you want to use korean language ko if you want to use malaysian language you have to enter ms please
remember we cannot define our own languages we cannot define our own languages we can define our
own countries but not languages but generally in most of the cases because now we are very much
international so generally we use english language is equal to n i hope everybody is writing in the
material because this is necessary for you to do the practice these are your exercises every day currency
is equal to usd currency is equal to usd so here we have to enter the currency of the respective countries
suppose so again how can you find the currencies of the respect to current countries again pressure so
already 218 currencies have been defined in the system so if from the list you can select and remember
it's not necessary to remember the list please nobody will ask you what is the currency for any country
right so it's only general knowledge question but not sap question right that's why don't try to
remember this list right so suppose again if you don't find the currents you require we can define our
own currencies right now currency is equal to usd here in your material you have some space here right
please write down there we can define we can define our own countries and currencies we can define
our own countries and currencies but we cannot define but we cannot define our own languages we
cannot define our own languages okay just one second [Music] yes one second please yes so after
entering all this information and see the material click on save so this is called save button you can use
ctrl s also you can use ctrl s also that is operating system shortcuts also we can use click on save now
after clicking on save if you see the material click on create request so where is the create request icon
this is the first time you are using the software right so we don't know which icon is what in that case on
every icon you see right just to keep the cursor for one or two seconds then that the system will display
the name of that icon this is enter icon and this is display object and this is object attributes and this is
create request so like that for the first time you can find the icons so once you start doing the practice
for one or two days then you will be able to remember the icons automatically okay so click on create
request then short description is good here we have to enter the description of the activity the
description of the project so shorter description is good fi configuration for lg group of companies lg
group of companies fa configuration for lg group of companies then after that your short description is
called fa configuration for lg group of companies after that click on save so here again this is the save
button in the total screen you can notice only one save button in the highlighted mode if this screen is
this button is grayed out right so this is the highlighted screen save button click on save see our
description has been taken over here and this is called request number so this request number has got
lot of significance in the real time so what is this request number we will discuss again after some classes
this is very very important request number so this we will discuss after some classes so from now
onwards whenever we get this small request box just click on enter this is called enter button otherwise
you can use the enter button in your keyboard see data was saved i told you know there are three types
of messages displayed on the status bar first one is working message which is displayed in green color so
whenever you get this message you can just assume that your setting is correct if any error is there the
system will show you the error so like this every step i have given clearly in the material so taking this as
example you have to create your own company in the system that is the exercises so every day we i am
going to show you some settings in the class and you have to write the settings here then taking these as
examples you have to create the same settings in the system so every day there is an exercise and you
have to do these exercises every day this is called practicing the server then only you get the clarity at
the end of the class i will at the end of the class today i will tell you one procedure how to do the
practice right you just follow that practice you get a very good clarity of the subject so that's how we
have created company now if you see the step number 1.2 define company code define company code
so what is the company code here first let us try to understand see here the company code every
separate legal entity is called company code or the individual company is called company code in sap
suppose if you take u.s context every llc inc and opc llc means limited liability company opc means one
person company inc means incorporation so inc opc llc they are called company codes in u.s context
then if you take india every limited company and private limited company is called company code
suppose for example ge infotech incorporation is one company called ge proper means incorporation is
one company code ge technologies incorporation one company called ge trading llc one company code
now if you take india you have the tata group right so tata group is called company then tata steels
limited is one company code tata consultancy services limited one company called tata power limited
one company called tata tele limited one company code suppose you take reliance reliance is a group
right so reliance industry is limited is a company code reliance power limited is a company called
reliance jio limited is a company code like that every separate individual company is created as company
code in sap okay then at the time of creating the company code we have to give an identification then
the company called identification can contain up to four characters it is alpha numeric generally in sap
every object identification can contain up to four characters generally that's why i am not going to
repeat these two sentences from now onwards every object can contain up to four characters and it is
alpha numeric so these two sentences i am not going to repeat again right in every class okay now here
it is mandatory to define company code so from now onwards every setting is going to be done with
reference to company code so why it is mandatory to define company code because in every country it
is legally required to prepare and present the financial statements at the company code level to the
government of that country it is legal requirement so whenever any reporting is legally required that is
called mandatory and we can define any number of company codes there is no any limit because a
group can have any number of individual companies means we can define any number of company
codes i hope it's clear so again this is documented in your notes see company code it is the
organizational unit in finance accounting for which a complete set of books of accounts are maintained
for external legal reporting that is to prepare the legal finance statements it is four characters id and it is
alpha numeric and you write one more point here in the notes please add one more point if you don't
have the notes with you in the physical form you can write here you have one space some space here no
you have some space here you can write it here if the boundaries if the boundaries of your partner
country is crossed if the boundaries of a particular country are crossed then we have to create a
company code then we have to create one company code we have to create one company code means
what suppose for example ge a lg group of companies right so basically it is carrying on business in usa
okay now it is also it wants to carry on business in india so if you want to carry on business in india being
in u.s you cannot go to india just like that and you cannot start business just like that first of all we have
to register ourselves under the indian companies act means you have to take the permission from the
indian government for which you have to submit number of documents that is called registering under
indian companies act so when you register yourself under the indian company's act it becomes a
separate legal entity so a separate legal entity means company good now again you want to carry on
business in uk so first you have to register yourself and the uk companies act means when you get
yourself registered under the uk companies act it becomes a separate legal entity so separate legal
entity means company code so for every business in a separate country you have to maintain one
company code it's a rule you can take it granted that is how in the real time we can decide how many
number of company codes you have to create so every separate legal entity is to be created as company
code and also if the li if the if they are carrying on business outside the home country then also for that
entity we have to create one company code that's how we can decide in the real time how many
number of company codes we have to create now in order to create the company code we need to
access one screen and for that screen path is starting with spr work so it is also consultant activity so spr
is the transaction code for img screen and the spro is to be entered in the command area of sap easy
access so is this spro screen sorry is this sap easy access screen no so even if you enter spro it will not
work see nothing is happening so that's why you have to prefix slash so slash and sp so instead of
thinking this much logic every time right you just to prefix a slash n for every transaction code as simple
as that you just prefix slash n for each for each transaction code and spro always implies clicking on sap
reference img also then after spro you have enterprise structure again this is called enterprise structure
after enterprise structure you have definition this is called definition so after definition financial
accounting is there so this is financial accounting subfolder click on this then after this edit copy delete
check company code this is called edit copy delete check company this one then if you see the material
double click on edit company code data yeah we can see the transaction codes channel seeker i will
show you everything one by one right it is also covered right for that you have to refer to the table what
is the table first we cover the tables no problem first we cover the tables because you have to
understand what is the meaning of the table in sap so once you understand the table then we will see
the transaction codes and there are some other ways to find the transaction codes also now if you see
the material double click on company code data ox02 no need not say sorry channel seeker you have
every right to ask the questions no you should support it so double click on edit company code data this
is called edit company code data then after that click on new entries see in such a way clear manner
right i have given every step in the material click on new entries now for the company code we have to
give an identification let us say double three double six please write down in the material against the
company called double three double six company name is good lg electronics inc company name is good
lg electronic inc city is equal to new york city is equal to new york country is equal to u.s country is equal
to u.s currency see look at the screen in the currency field you have one tick mark right so whenever you
notice any tick mark in any field that is called mandatory field that is called mandatory field so currency
is equal to usd suppose if you don't enter the information in that field you cannot create that object so
currency is equal to usd language is equal to er language is equal to en then what is there in the material
click on save click on save it this is called again saved so when you click on save right the system will take
you another big screen so in this screen we enter all the other details of the company code so first let us
do according to the material title is equal to company if you see the material right title is equal to
company here look at the screen this is called drop down menu so if you click on this drop down menu
you can see the titles title is equal to company then country is equal to vs then what are the other fields
here you can enter the name of the company code suppose if the name of the company code is larger
than the length of the company code name we have entered in the previous screen you can enter the
total company code name here then suppose if the name of the company code is larger than the length
of these two lines then what happens here this is called more fields button so on any icon if you keep
the cursor for one or two seconds it will tell you the name of the icon right so if you click on this more
fields button system will add two more lines so generally no company code will have the name larger
than the length of this four lines let us assume still the company code name name is larger than the
length of these four lines in that case what we do is only about consultant can add the lines in the
screen only the adapt consultants can add the fields in the screens so they can add it we can send one
request to him he can add it but generally that is not at all required so once we enter the information
here if you click on this this is called undo more fields endomorphic click on this that is closed then here
street address you can enter the street name house number postal code city so here you can enter the
address of the office of the company code we can enter the office on the address of the registered office
of the company code yeah because see the question posted by gadi here in the while he is asking me he
is asking here country is mandatory why not in the previous screen good observation see i will tell you
company code creation is mandatory right right but the company creation is optional that's where it is
not mandatory there got tigadi now so here in the address street at the screen we can enter the total
address of the company called restored office of the company code suppose generally that this will be
more than the larger than the length of this call object in that case again you click on this more fields
button see here you can enter the total address of the company code so once we enter the address of
the company code you can close it now here you can enter po box number postbox number postbox
code postal code then company postal code after that the communication information of your company
can be entered here telephone number extension mobile phone fax number extension email address
standard communication method and comments so like that all this information we can enter here so in
the comments column we can enter we can maintain the nature of the business of the company code
right so like that in the real time we can maintain all this information but here we don't have this
information that's why i am not entering this information in the real time we will give you all this
information the accounts department of the company code will provide all the information you require
as a consultant so we take that information from the accounts department and we provide that
information this is in this screen now whatever the information you enter in this screen in this big screen
is printed by the system on the correspondence documents of your company code and all the official
documents of your company code for example your letterheads your letterheads right then purchase
orders account statements so on all the official documents of the company code the system will print
this address clear so after entering all this information if you see the material enter click on enter right
so click on enter so whenever we get this request box we just click on it you can use your keyboard
enter button also see data was saved so we have created company code suppose you have to create one
more company called under the same group in that case this is called next entry button so if you click on
next entry button right every field becomes empty then again for that company code you have to give
one more identification one identification can be used only once in the system you cannot use the same
identification more than once if you try to use the same identification the system will give you error
message so you need not worry okay you do one thing write down this point here in the middle itself to
create one more company code to create another company code to create another company code to
create another company board click on next entry button click on next entry button click on next entry
button now write one more point here the company currency the company currency and the company
code currency can be different the company currency and the company code currency can be different
means suppose your group is in us so company currencies usd and you are carrying on business in india
for the indian company called currency will be inr it's quite natural right so company currency and
company called currency can be different so this is the thing regarding company code rate and one more
thing here is you have given the country u.s right so what is the impact of this country yes whatever the
country you enter in this country field is called home country of the company code and the system
considers every other country as foreign country then currency the currency entered in this field is
called company code local currency and every other currency is considered by the system as foreign
currency and we have to prepare the finance statements in the company called local currency only
logically think you are doing business in u.s so you have to prepare your penal account and balance it in
years dollars only and you are doing business in india you have to prepare the financial statements in
indian rupees only right that's why the currency entered in this field is called company called local
currency so in this currency only we prepare the finance statements then language this language we
have entered english language right so the language in this language the books of accounts are
maintained your correspondence documents are printed and your bank checks are printed when you
are giving the check to vendors right so like that this is the significance of these three fields don't worry
this i have given in your notes again see country the information given in this field is called the home
country of the company port and every other country is considered by the system as foreign country
then currency the currency entered in this field is called company called local currency every other
currency is treated by the system as foreign currency and this information is used by the system in
identifying the foreign currency the finance statements are prepared in the company called local
currency like that every field have given very clearly so you can go to the nodes now see the step
number 1.3 assign company code to company means what ascending means what here we have created
company in separate screen and company code in separate script we know lg electronics incorporation
is part of lg group but how the system relates that's why we have to provide the link between company
and company code one second yes see you know that lg electronics incorporation is part of lg group we
know but how the system knows that's why within the software you have to provide the link between
company and company code this is called assignment right please put heading in the notes you also
have to keep the notes with you in every class put heading in the notes assignment assignment
providing the links between the two objects between the two objects in the software is called
assignment providing the links between the two objects in the software is called assignment so object
means is nothing company code is called one object and the company is called one object nothing else
right so we have to provide the link between company and company code that is the next step ascend
company code to company path is enterprise structure after that we have assignment then financial
accounting then ascend company code to company so this is the company called field right so our
company code will be there somewhere in the list right so you have to click on position button see click
on position this is called position button so this position button is very similar to search button nothing
else so click on position company code what is our company called double three double six so company
code is equal to three double six click on enter see here our company code double three double six has
been taken in the first line so against this line you have the company right so company is equal to double
three double six lg so you have linked company code with the company click on save so whenever you
get this request box just click on it this is how in today's class we have completed company company
code and we have assigned company code to company now we ever have got the server access they can
also start the practice and others please install the sap gui as soon as possible and please give me mail i
will send you the user agent password okay then now you can start the practice for doing the practicing
means here for example today we have completed we have created a company so you also have to
create one company in the system so here we can use any name or anything we can use even in you can
use your name also right so you create one company you create company code then you assign
company code to company that is the exercises for students class now here i will one i will do one i will
give you one procedure just to try to try to follow the procedure it's very very simple so first you create
one company right then you create company code then you assign company code to company okay now
again you create one more company with a different name but before creating secondary company right
read the notes what is the meaning of the company why we how to create a company try to understand
the nodes then you create second company okay then after that you create second company code so
before creating second company code again read the nodes so what is the meaning of the company
code and what is the use of the company code then in the company code we are giving some
information right currency country etc so what is the significance of these fields read the notes try to
understand then create the second couple code so like that you create two sets create one company
one company code and ascend the first company to first company code create one more company one
more company code and we assign second company code to the second company so every day so we
always develop the configuration settings at the company code level for the company code only so every
class settings you do in two company course but doing the settings in the second company code read the
notes listen to the recording if necessary right then you do the settings in the second company code if
you do the practice like this you get a very excellent clarity of the subject in sap hub is not important
how to create a company code is not important i am talking about from entry point of view how to
create a company code is not important why we have to create a company code that is important from
the entry point of view so that's why first in our class i am explaining why concept then i am showing
you how concept in the screen so if you proceed like this if you follow the procedure like this you get
excellent clarity of the subject then at the end of the classes i will send you the interview questions right
and other material necessary for you to get the job right within two three months i will send you a lot of
documentation also real time documentation in the projects we have to prepare lot of documentation
so what is the documentation how they look like so all these materials i will be sending to you okay but
the thing is and it's only advice right don't take it in a wrong way it's only advice i'm giving you and one
more thing here is you require see if you want to get the job right in sap you have to do two things one
is please attend the classes regularly even though i am sending the recordings right listening to the live
class is very effective right so attend the class regularly of course sometimes you may have some work
right in that case taking the leave is invitable in that case take the leave but anyhow i will be sending the
recording now so immediately go to the recording and get the on par with the class now first one is
attending the class regularly is important then the second one is you have to do the practice of every
class on the same day itself right so if you follow these two things right theoretically also you get good
knowledge and practically also you get good knowledge then you get the job within two three months of
the completion of the classes why i'm telling you two three months because you have to prepare some
other materials you have to prepare some other interview questions which i will send you don't worry
about it right that is how you have to proceed in the class sorry that is how you have to proceed in the
practice so remaining things we will see tomorrow see our classes are monday to friday usa days but it is
from tuesday to saturday in india if you are in india our classes are from tuesday to saturday if you are in
us classes are from monday to friday so tomorrow also we have the class then akhil you have any
question sorry akilah you have any questions no sir i'm good okay anil i will come to you gadi i will be
coming one by one right whenever i come to you you can ask the question i will come according to the
alphabetical names in the list anil you have any questions okay channel the secret okay now gadi tell me
while defining company code currency language and country required so why can't we make it in
mandatory now we cannot make it as mandate as a functional consultant it is designed in the software
itself right some fields we can make it mandatory somewhere right but not in the company called
creation we cannot make the country and the current country and the language we cannot make them
mandatory it is designed differently in the software you cannot change the software code you

Fiscal year variant

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document type/field status variant /number ranges

https://youtu.be/xTyUFpagkgI?si=tEJw3uYS2Cqda4qV