FICO NOTE Q. 01 Explain the client concept of SAP?

Ans: A client is the topmost or 1st step of the organizational structure, which has its own set of master records. It is denoted by 3-character alphanumeric code in SAP and it is a mandatory element. In SAP typically will have different types of clients namely:-a) b) c) Development Client Test Client Production Client

In any implementation, it is necessary that we have at least 3 types of clients as mentioned above. Some company will have more than 3 clients:a) b) c) d) e) Development Client Test Client Quality Assurance Client Training Client Production Client

Q. 02 Explain Financial Accounting (FI) in SAP? Ans: (Financial Accounting) FI module of SAP is back-bone which records, collects or processes the financial transactions or information on a real-time basis to provide the necessary inputs for external (statutory) reporting. It is integrated with other modules like MM (Material Management), SD (Sales & Distribution), HR (Human Resources, PP (Production Planning), CO (Controlling). FI module has several sub-modules which are tightly integrated. Q. 03 What do U mean by Organizational Units in SAP? Ans: The Organizational Units in SAP are the element or structures representing the business functions and are used in reporting for exp:- Client (across the various modules), Company Code (FI), Controlling Area (CO), Plant (Logistics), Sales Organization (SD),Purchase Organization (MM), Employee Group (HR). Q. What is Enterprise Structure in SAP? Ans: It helps to describe the specific organizational structure of the business in the SAP system. Q. 04 What is Company in SAP? Ans: A Company in SAP is represented by 5-character alphanumeric code. And usually represent the enterprise or the group company. A company can include one or more than one company code. The creation of the company in SAP is optional.

CLIENT - 300

Company 15000

Company 16000 Co-Code 1200 Co-Code 1400

Co- Code 1100 Co-Code 1300

Q. 05 what is company code & how this is different from company? Ans: Company code in SAP is smallest organizational unit for which u can draw individual financial statement ( Balance Sheet and Profit &Loss Account) for your external (statutory )reporting. It is denoted by 4-character alphanumeric code. The creation of company code is mandatory. Need to have at least one company Code defined in the system for implementing FI (Financial Accounting). Q.06 How to create a new Company Code from scratch? Ans : Use the function Edit Company Code Data to create the a Company Code, from scratch. In this case, the Company Code global data is not copied. Q. 06 How to change the Company Code key? Ans: Use the Replace function in the T Code - EC01,to change the Company Code key. But, this is only possible if no postings have been made in the Company Code that is to be replaced with the new Company Code key. Q. 07 what are the important Global Settings for a Company Code? Ans: General data:-1. 2. 3. 4. 5. 6. 7. Company Code Company Name City Address Currency Country Language T Code. OBY6

Global data : 1. Chart of Accounts

2. 3. 4. 5.

Credit Control Area Fiscal Year Variant Field Status Variant Posting Period Variant T Code OBY6

Q. 08 What are all important Global Parameters for a Company Code?

Ans: The Global Parameters for a Company Code are segregated into to two sections: Accounting Organization

The parameters under this section include the Chart of Accounts, Credit control Area, FM area, Company, Fiscal Yr Variant etc,.this is also the area wherein u will normally set the Company Code as Productive before going-live. Processing Parameters

The Processing Parameters include settings like Field Status Variant, Fiscal Yr Variant, whether you want the system to propose fiscal yr during document entry, Company code-Controlling Area assignment, what would be the calculation base for discount/tax etc, whether you will need financial statements per business area, maximum exchange rate deviation allowed etc. Q. 09 Can U assigns more than one Company Code to a Company? Ans: Yes, We can assign more than one Company Code to a Company. But, all such Company Code should use the same operating Chart of Accounts and same Fiscal Year, even though they all can have different Local Currencies. Q.10 what is a Business Area? T. Code - OX03

Ans: Business Areas correspond to specific business segments of a Company, and may cut across different Company Codes (for example product lines). They can also represent different responsibility areas (for exp:- branch units). The definition of Business area is optional in SAP. We can create financial statements for business areas, which can be used for various internal reporting purposes. Q.11 How to enable Business Area Financial Statements (FS)? Ans: There are 2 ways in which you can enable the financial statements for the areas: 1. Enabling the business area financial statements in the Global Parameters of Company Codes (one by one for each of the Company Codes) T. Code OBY6 2. Enabling the Business area financial statements for more than one Company Code, at the same time. T. Code OB65 (T. Code OB37) Q.12 what precautions you should take when you enable Business Area FS?

Ans: We should only set the indicator for the Business Area field if we work with all the financial statements. If u only work with business areas in a few financial statement areas (for exp P&L), then you should not set the indicator. Instead, you should make the Business Area field ready for input for the business area-relevant accounts using the field control of the accounts/posting keys. Q.13 Can u derives Business Area by not assigning the same in a posting? Business Area to a Transaction, by not assigning the same in a posting? OR Can u attach

Ans: Yes. The Business Area can also be received from other account assignments: for example, Cost Centre. But to do this, you need to define the business area in the master record of that Cost Centre. Q.14 How to post Cross-company Code Business Area postings? Ans: By using a cross Company Code transaction, one should be able to post to different Business Area cutting across various Company Codes. Any number of Business area Company Code combinations are possible. Q.15 Define Consolidation Business Area? T. Code OCC1

Ans: A Consolidation Business Area , identified or denoted by 4-character ID, is an organizational unit within accounting, corresponding to a limited area of operations or responsibility (representing a central business segment within a business organization), from a consolidation point of view. Companies and Consolidation Business Areas together make up the consolidation units that are the basis for business area consolidation. Q.16 what is a Credit Control Area? Ans: The Credit Control Area in SAP, helps in administering the credit management functions relating to the customers. This organizational unit is used both in SD & FI-AR modules. By definition, you can have more than one credit control area in a Client and each Company Code is assigned exactly to one credit control area. However, it is true that you can attach many Company Codes to a the same credit control area. ATTACH DIAGRAME

Q. What is a Fiscal year and Fiscal Year Variant?

T. Code OB29

Ans: A Fiscal Year is the accounting period, which normally spreads over 12 months. The financial statements are drawn for a fiscal year. The fiscal year, in SAP, is defined as a Fiscal Year Variant. (All Calendar Year Fiscal Year Variants, in standard SAP are denoted usually as K1,K2 etc. It is denoted by 2-character alphanumeric code. The fiscal year may or may not correspond to the calendar year. In the standard SAP system, the NonCalendar Fiscal Year Variants are denoted by V1, V2 etc.

It is also possible that the Fiscal Year may be shorter than 12 months, and this is called as Shortened Fiscal Year (R1).) How many posting periods a fiscal year has, how many special periods you need, how the system is to determine the posting periods when posting. When defining your fiscal year, you have the following options: Your fiscal year is the calendar year In this case, we must only select the Calendar Year field. Fiscal year is not the same as the calendar year and is not year dependent In this case, you first enter the number of your posting periods in No. posting period field. To define your posting periods, select your fiscal year variant and select Periods on navigation screen. On this screen, enter the month and the day of the period end and the period in case. Your fiscal year is not the same as the calendar year and is year-dependent. Enter the No. of your posting periods in the field No. Posting Periods and select your fiscal year variant and select Periods on the navigation screen. The system asks for which calendar year your year-dependent fiscal year variant is valid. You then enter the month and day of the period end for each of your periods, and the periods themselves.

You can use the standard fiscal year variant K4 where the financial accounting year corresponds to January to December. In case the Financial accounting year is April to March, you can use the standard fiscal year variant V3. You can copy and create new variants, but bear in mind it should start with Z as the starting character. Q. How do you assign a Fiscal Year Variant to Company Code? T. Code OB37 OR

Ans: One Fiscal Year Variant can be assigned to one or more Company Codes.

The Company Code 9100 needs to be assigned to a Fiscal Year variant. This controls which periods the company code will post data. Q. How many Normal and Special periods will be there in fiscal year, why do you use special periods? Ans: 12 Normal posting period and 4 special periods are in fiscal year which can be used for posting tax and audit adjustments to a closed fiscal year.

Q. What is a posting Period? Ans: A Fiscal Year, in SAP, is divided into various Posting Periods, with a start and end date defined for each of these periods. Any document posting is possible only when the posting periods are in place in the system. Normally there will be 12 posting periods. A posting period consists of a month and year. Q. How the system identifies a Posting Period? Ans: Based on the posting date entered into the system while posting a document, the system automatically determines the period, by looking at the document date and the year. However, for this to occur you should have properly defined the fiscal year variant. Q. What happens when you post to year 2009, when you are in 2010? Ans: First of all, to post a document relating to a previous year, say, 2009 when you are in 2010, the relevant posting period should be open in the system. When such a posting is done, the system makes some adjustments on the background: One: the carry forward balances of the current year, already done, are updated in case the posting is affecting balance sheet items. Two: if the posting is going to affect the Profit & Loss accounts, then the system adjusts the carried forward profit or loss balances to the Retained Earnings account(s). Q. What do you mean by Opening/Closing of posting Periods? T. Code - 52

Ans: Postings in SAP are controlled by opening or closing of Posting Periods. Normally, the current posting period is open for document posting and all other periods are closed. At the end of the period (month), this posting period is closed and the new one opened for postings. This way provides better control. However, it is possible to keep all the periods or select periods open. Q. What is a Posting Period Variant? T. Code - OBBO

Ans: A Posting period Variant is useful in opening/closing posting periods across many Company Codes. Define the posting period variant and assign the same to various Company Codes. Since the posting period variant is cross-Company Code, opening and closing of posting period is made simple. Instead of doing individually for different Company Codes, you just need to open or close the posting period variant. (In this activity, you can define variants for open posting periods. In the standard setting, a separate variant for posting periods is defined for every company code. The name of this variant is identical to the company code name. Every company code is allocated to this variant with the same name. ) Thus in our e.g we will have posting period variant which is identical to the company code. i.ea123.

Q. Define Variant for Open Posting Periods? Ans: In this activity you specify for each variant which posting periods are open for posting. Two intervals are available for doing this (period 1 and period 2). For every interval, enter a lower period limit, and upper period limit and the fiscal year. You close periods by selecting the period specifications so that the periods to be closed are no longer contained. Q. Assign Posting period Variant to Company Code Ans: The posting period variant 9100 needs to be assigned to company code 9100. Q. Can you selectively Open and Close accounts? Ans: Yes. It is possible to selectively control the opening and closing for various types of account. Usually, a + is mentioned in the top most entry indicating that all the accounts types are allowed for posting. Now, against the GL(S) accounts specify the period which need to be open. This ensure that all the account types are open for the current period, indicated by +, and only the GL accounts are open for the previous period. Not only that select account types can be opened or closed for specific period, select accounts within an account type can also be opened or closed. Q. Why it is not possible or able to post to a customer a/c in a previously closed Period? Ans: When you want to selectively open or close posting period of some accounts (account range), there will be no problem with that if you are doing in GL accounts. But, if it is a sub-ledger account (like the customer), the same has to be achieved via opening or closing the account interval of the reconciliation account of that account type. Q. Can you open a Posting Period only for a particular user? Ans: Yes. SAP allows you to open or close the posting period only for specific users. This can be achieved by maintaining an authorization group at the document header level. Q. What is a Special Period? When you will use that? Ans: Besides the normal posting periods, SAP allows for defining a maximum of four more posting periods, known as Special Periods as these are used for year-end closing activities. This is achieved by dividing the last posting period into more than one (maximum 4) period. However, all the postings into these special periods should fall within the last posting period. The special periods cannot be determined automatically by the system based on the posting date of the document; the special period need to be manually entered into the posting period field in the document header.

Q. What can be the maximum number of Posting Periods in SAP? Ans: Under the G/L accounting, you can have a maximum of 16 posting periods (12 regular + 4 Special Periods). However, you can have up to a maximum of 366 posting periods in case of special purpose ledgers. Q. Where do you open and close periods? Ans: Posting period variant is used for open and close the periods based on account types considering G/L Accounts. T. Code OB52 Q. What is Special Purpose Ledger? Ans: Special Purpose Ledgers (FI-SL) are used in reporting. These are all basically user-defined ledgers, which can be maintained either as GL or subsidiary ones with various account assignment objects(with SAP-dimensions like cost centre, business area, profit centre etc or customer-defined dimensions like region, area etc). Once defined, this functionality helps you to report at various levels. Ideally you collect the information, combine them and create the totals. This is something like an additional reporting feature, and usage of this feature will have no effect on the regular functionalities of SAP. Q.17 What variations are possible in defining a Fiscal Year? Fiscal Year is the same as that of the Calendar Year The fiscal year starts on Jan-1, there are 12 posting periods; the posting periods correspond to the calendar months; there is no need to define each of the posting periods.

Posting Period 1 2 12

Start Date 1-Jan 1-Feb 1-Dec

End Date 31-Jan 28/29-Feb 31-Dec

Fiscal Year is NOT the same as that of the Calendar Year In this case, you need to specify (1) how many posting periods you want (2) how the system should receive (derive) the posting period. Since the posting period does not correspond to the calendar months, the start and end date of each of the posting period need to be maintained.

Q.18 What is known as Year Shift / Displacement in a Fiscal Year? Fi. Year variant V3 Apr March, 4 special periods No. posting periods 12

Periods/ Month 4 5 12 1 2 3 Day 30 31 31 31 28 31 Period 1 2 3 10 11 12 Year shift 0 0 0 -1 -1 -1

When the fiscal year is not the same as the calendar year, we need to define a displacement factor (year Shift) for each of the posting period so as to correctly identify the number of the posting period. For exp:- consider the fi yr variant V3. The fi yr starts on 1st April, ending on 31st March of next calendar year, the displacement factor or year shift from April to December is 0, and for January to March, it will be -1. By defining this way, the system is able to recognize the correct posting period. Q.19 Can you have non-Calendar months as Periods in a non-Calendar Fiscal Year? Ans: Yes. The non-calendar fiscal year can either correspond to (1) calendar months or (2) noncalendar months. In case of non-calendar months as the posting periods, you need to specify the start and end date of these postings periods. Consider a fiscal year starting on 16th April 2010 and ending on 15th April 2011. Here, the posting period-1 starts on 16th April and ends on 15th May and so on. Note that the posting period-9 will have 2 displacements (0 & -1) as indicated below:Posting Period 1 2 3 4 5 6 7 8 9 9 10 11 12 Start Date 16-Apr 16-May 16-Jun 16-Jul 16-Agu 16-Sep 16-Oct 16-Nov 16-Dec 01-Jan 16-Jan 16-Feb 16-Mar End Date 15-May 15-Jun 15-Jul 15-Agu 15-Sep 15-Oct 15-Nov 15-Dec 31-Dec 15-Jan 15-Feb 15-Mar 15-Apr Year 2010 2010 2010 2010 2010 2010 2010 2010 2010 2011 2011 2011 2011 Yr Displacement 0 0 0 0 0 0 0 0 0 -1 -1 -1 -1

As a result, a posting made on 27th Dec 2010,as well as the posting made on 14th Jan 2011 are correctly indentified as the postings corresponding to the period-9. Q.20 What is a Yeardependent Fiscal Year? Ans: A calendar year fiscal variant, when defined as

year-dependent, is relevant and valid only for that year. Q.21 what precaution needs to take while defining Shortened Fiscal Year?

Ans: Note that the Shortened Fiscal Year is always year-dependent. This has to be followed or preceded by full year (12 months). Both the shortened and full fiscal year, in this case, have to be defined using a single Fiscal Year Variant. Q.22 When you may require Shortened Fiscal Year? Ans: A Shortened Fiscal Year is one containing less than 12 months. This kind of fiscal year is required (a)when you are in the process of setting up of a company or (b) when you switch over from one fiscal year (say calendar year) to another type of fiscal year (non-calendar). Q.23 How do you open a new Fiscal Year in the system? Ans: No need to open the new fiscal year as a separate activity: once you make a posting in the new fiscal year, that fiscal year is automatically opened. Or, the new fiscal year is automatically opened when you run the balance carry-forward program. However, you should have: The relevant posting period already opened in the new fiscal year Completed the document number range assignment if you are following year-dependent number range assignment Defined a new Fiscal Year Variant if you follow year-dependent fiscal year variant

Q.24 How do you Carry-Forward the account balances? Ans: For all the G/L accounts, if you have already posted into the new fiscal year, you do not need to carry-forward the balances manually. Else, use the various carry-forward programs supplied by SAP for this task. Q. What is a Document Overview? Ans: The first screen you see when you change or display a document overview screen containing the most important information from the document header and line items. You have a display line for each line item. You decide what data is displayed in this line by specifying the details in the line layout variant. Q. Describe Document Number Ranges in SAP. Ans: A number range refers to a number interval defined in the system, so that when documents are posted, the system assigns a number from this range. We will define different number ranges for different document types. Each document in SAP is uniquely identified by the combination of (a) document number, (b) company code and (c) fiscal year. The number range for a document type can be defined: Per fiscal year OR

Until a fiscal year in future

Q. What is a Document in SAP? Ans: SAP is based on the document principle meaning that a document is created out of every business transaction in the system. The Document is the result of a posting in accounting in SAP, and is the connecting link between various business operations. There are 2 types of documents: 1) Original Documents 2) Processing Document Original Documents: these documents relate to origin of business transactions. receipts, statement of accounts from bank etc,. e.g.: invoices,

Processing Documents: These include accounting documents generated out of postings in the system, reference documents, sample documents etc,. The processing documents are also known as special documents and they aid in simplification of document entry in the system. Each document consists of: A Document Header Two or more Line Items

Q. What is a Document Header? Ans: The Document Header contains information that is valid for the whole document such as: Document Date Document Type (Control Information) Document Number Posting Date Posting Period Company Code

Besides the above, the document header also has information (editable, later on) like (a) trading partner (b) document header text (c) reference (d) cross Company Code number etc. Q. What is document type, and what does it control? Ans: Document type is nothing vouchers containing line items. Several business transactions can be identified within a particular document type. It controls the document number ranges. It controls the Header part of document. It controls the line item level of the document. Q. What is a Line Item?

Ans: The Line Items contain information relating to account number, amount, debit/credit, tax code, etc,. SAP allows a maximum of 999 line items in a single document. Besides the one entered by you during an document entry, the system may also create its own line items called system generated line items, like tax deductions etc. Irrespective of number of line items entered, it needs to be ensured that the total of these are always zero (that is, total debits should equal total credits). Else, the system will not allow you to post the document. Q. Tolerance Groups for Employees T. Code OBA4

Ans: It determines the amount limit and cash discount percentage. OR In this activity, we predefine various amount limits for our employees with which we determine: The maximum document amount the employee is authorized to post The maximum amount the employee can enter as a line item in customer or vender account The maximum cash discount percentage the employee can grant in a line item The maximum acceptable tolerance for payment differences for the employee. T. Code - OBA3

Q. Tolerance for customer/vender

Q. Explain Tolerance in the transaction processing. Ans: Tolerances are defined in the system to facilitate dealing with the differences arising out of accounting transactions and to instruct the system how to proceed further. Normally, we define tolerances (either in absolute terms or in percentage) beyond which the system will not allow we to post a document should there be difference. In SAP, tolerances are defined per Company Code and there are several types: Employee tolerance Customer / Vendor tolerance GL account clearing tolerance

We will define an employee tolerance groups in the system and assign the employees to these groups. While defining the tolerance group we will specify:i) Upper Limits for various posting procedures * Amount per document * Amount per open account item * Cash discount, in percentage Permitted payment differences How much over or under payment an employee is allowed to process. This is defined both in absolute value and in percentage.

ii)

Besides defining the above two, at the Company Code level, we will also define similar tolerances for customer / vendor tolerance group. Once defined, each of the customers (vendors) is assigned to one of these groups. Here also, we define the permitted payment differences. While processing, the system compares the tolerance of an employee against the customer tolerance (or vendor tolerance or the GL) and applies the most restrictive of the two. Q. What is posting Key and what does it control? T. Code - OB41

Ans: These are special classification keys. Two character numerical key it controls the entry of line items. Posting Key determines Account Type, Debit/Credit posting, Field Status of transaction. Q. What is a Field Status Variant OR what is a Field Status Group? T. Code - OBC4

Ans: The field status of an individual or a group of fields is marked into a field status group, which is then assigned to individual G/L account master records. You may attach field status groups to a field status variant so that the same field status groups are used in various Company Codes. It can be assigned to the Company Code. OR Field Status Group is mandatory field in General Ledger creation. Use this field to define which fields are displayed when we post business transactions to a G/L account. It may have one of the status:Suppressed, Display, Optional, Required. Q. What is a Chart of Accounts? Ans: A Chart of Accounts is the list of G/L accounts used in one or more Company Codes. All the G/L accounts in a Chart of Accounts will have an account number, account name and some control information. The control information decides how the G/L account can be created. Q. How many COA? Ans: There are 3 types of COA. Those are:1) Operative Chart of Account : Which is used for day-to-day postings (activities). It is a mandatory. And it can be assigned to the Company Code. This is also know as Operative or Standard Chart of Account. 2) Country Chart of Account : It is also known as Alternate Chart of Accounts contains the GL accounts to meet the statutory/legal requirements of a Company from where a Company Code operation. The assignment of this COA is optional. It is possible that both operative and country COA are one and the same, in that case, no need two different charts of accounts. In cases, where the operative and country COAs are different, the link needs to be established by entering the GL account number from the Country Chart of Accounts, in the GL master record (under

the Company Code Section) of the Operative Chart of Accounts in the field Alternate Account Number. 3) Group Chart of Account : - Also known as Corporate Chart of Accounts, is used for consolidating all Company Codes (with dissimilar Operative COAs) falling under Company. It can be assigned to Company Code and it is not mandatory. Q. What are the major components of a Chart of Accounts? What does definition of a chart of account contains? Ans: A Chart of Accounts is defined with the following items: Chart of Account Key Name Maintenance language Length of the GL Account Number Controlling Integration Group chart of accounts (Consolidation) Block Indicator OR

Q. Can one Chart of Account be assigned to several or more Company Codes? Ans: Yes. One COA can be assigned to several or more Company Codes. But, We will not be able to assign mo re than one COAs to a single Company Code. Q. What is an Account Group? T. Codes - OBD4

Ans: Thea Account Group (or GL Account Group), a 4-character alphanumeric key, controls how the GL account master records are created in the system. It is mandatory for creating a GL master record. It can be used by more than one company code, if they all use the same COAs. Each GL account is assigned to a only one account group. The Account Group determines: 1) What number interval is to be used while creating the master record? 2) What screen layout is to be used while creating the master record in the Company Code Area? While defining the account groups in the system, also need to define the corresponding field status for each of these groups. Else, we will not be able to see any fields as all these would be hidden by default. SAP comes delivered with a number of account groups like: SAKO (GL accounts general) MAT (Materials Management accounts) FIN (Liquid Funds accounts)

OR Account Group determines which fields we can configure on the G/L master record. It is necessary to have at least two one for B/S and another one for P&L a/c. It controls the Number ranges of GL a/c. The status of fields of the master record of GL belongs to Company Code area. Q. What is a Screen Layout? Ans: The account group determines which Screen Layout should be used while creating a GL account master record. For each of the account groups, we can define different screen layouts, which essentially determine the Field Status of a field. The Field Status refer whether the field is : 1) 2) 3) 4) Suppressed (field is invisible, hidden from display) Required (display on, entry mandatory) Optional (display on, entry not mandatory) Display (display only)

All the above four are shown as radio buttons against each of the fields in the screen layout and we should select any one to set the status to that field; by default all the fields are suppress. There are two levels of controls of field status, to decide which takes the priority, while deciding the screen layout: Field status at the account group level Field status at the activity(create/change/display) level i.e. at the transaction level. Field check

General Data / Chart of accounts INT Group AS Fixed assets accounts Document entry/ Suppress Reconcil. Acct ready for input Field status group Requ. Entry Opt. entry Display

We may also have field status defined for posting keys (40-debit & 50-credit) for the G/L account postings. Also remember to define the field status for reconciliation accounts as we will not be able to define any such status in the sub-ledger (customer or vendor). SAP has in-built rules to link, called link rules, these two levels and to decide the finial status of a field in the screen layout. The link rules

also help to over come the field-status settings differences arising out of different settings as (1) Client level (field status for posting keys), (2) Company Code level (field status settings at the account group level). Q. Retained Earnings A/c definition Ans: Retained Earning Account Definition: With the P&L statement account type, you determine the retained
earnings account for each P&L account. The retained earnings account is used during year-end closing to calculate the company's result. If you are creating a P&L account, you must make an entry here.

Q. How many Retained Earnings a/c can be defined? Ans: We can define as many Retained Earnings Accounts as we need. But normally, companies use only one retained earnings account. Remember, to define more than one, we should use the P&L account type. And assign the P&L statement G/L to these account types. Defining more than one retained earnings account could be useful for international corporations that are required to comply with various reporting requirements when producing the profit & loss statement. Q. How to set up only one Retained Earnings account? Ans: We need to specify the Retained Earnings account to which P&Ls are transferred, before we can include P&L statement accounts in the chart of accounts. SAP uses a special program to transfer these amounts to this account. Each P&L account is assigned to a retained earnings account via a key (normally X). In the Chart of Accounts of area of the G/L account master, select the P&L statement acct option for all the P&L statement accounts if we follow individual processing of G/L account creation or change. T. Code - FSP0 (Edit Chart of Accounts Data) T. Code FS00 (Edit G/L Account Centrally) T. Code OB_GLACC11 For account determination, we enter the Retained Earnings account under the key X T.Code-OB53 Q. Can you have multiple Retained Earnings a/cs? Ans: Normally it is sufficient if you use one retained earnings account. However, if you are configuring for a multinational company where the legal requirements require treating some of the tax provisions differently from that of other countries, then you will require more than one retained earnings accounts to take care of the situation.

Q. How to create a GL Account Master Data? Ans: The GL Account Master Data can be created by any one of the 4 methods 1.Manually 2.Creating with reference 3. Through Data Transfer Workbench 4.Copying from existing GL Accounts (1)The Manual Creation of GL account master record is laborious (hard-working) & time consuming. (2)The Creating with reference, when we are already in SAP and have an existing Company Code (Reference Company Code) from which we can copy these records to a new Company Code (Target Company Code). We will be able to do this by accessing the Menu : GL Accounting > GL Accounts > Master Data > GL Account Creation > Create GL A/cs with Reference. While doing this, we can copy the account assignment as well as ensuring that the integration of GL with other applications is intact. SAP facilitates that we can (1) limit the number of GL records thus copied to the target Company Code (2) create new records if necessary (3) change the account number/name (3) When we have GL accounts in a non-SAP system and we feel that these accounts will meet our requirement we will then use Data Transfer Workbench of SAP to transfer these records into SAP, and change the same to suit SAP environment. Since this will not have Account Assignment logic as defined in SAP, we need to be careful in defining these assignments. (4) Copying from Existing GL Accounts only when we feel that there is a Chart of Accounts in the system which 100% meets our requirement. Else, follow the 2nd method. Q. What is Collective Processing of GL accounts? Ans: It helps to make systematic changes to a number of GL accounts in a single step. For example, we have used creating with reference method to create GL accounts in a new Company Code & we want to change the account names as well as the GL account type (P&L OR B/S). Then we will use the mass processing method to achieve the same. We can make changes to: 1. Chart of accounts data 2. Company Code data Menu Path: Accounting > Financial accounting> General ledger accounting> Master records> Collective processing. The same can be achieved through: IMG:-> FA -> GL Accounting -> GL Accounts -> Master Data -> GL Account Creation -> Change GL Accounts Collectively. Remember that , it helps only to edit & we cant use this method to create new master records.

GL Master Records Definition: A data record containing information that controls how data is entered into a G/L account and how that account is managed. This includes, for example, the currency in which an account is managed. Q. What is Individual Processing of GL accounts? Ans: It helps to create or edit GL account master records one at a time. Here we can edit (including display, change, block, unblock and delete) or create a new GL account in three different way: 1. Centrally: we will be editing or creating a GL account master record in both chart of accounts area & Company Code area in one go. This is also known as one-Step GL Creation. T. Code-FS00 2. In Chart of account area: we first edit or create the record here before doing the same in the Company Code area. T.Code-FSP0 3. In Company Code area: we edit or create the record here after the same has been done in the chart of accounts area. T.Code-FSSO Q. Is it possible to change an existing B/S GL a/c to P&L type? Ans: Technically, we will be able to change all the fields, except the account number, of a GL account in the Chart of Accounts area. However, in this particular instance when we change the GL account type from B/S to P&L, make sure that we again run the balance carry forward program after saving the changes so that the system corrects the account balances suitably. Q. Why system does not allow changing Tax Category in a GL a/c master? Ans: We will be able to change the Company Code related fields like tax category, currency etc provided that there has not been any posting to these accounts. 1. If we need to denote or signify an existing GL account to henceforth be managed on open item basis or vice versa, then make sure that the account balance is zero in either case. 2. If we are trying to change an existing reconciliation account (to a regular GL), then make sure that the account has not been posted to. 3. If we are attempting to denote or indicate an existing ordinary GL account into a reconciliation account ensure that the account has zero balance. Q. What is an Account Currency? ( Under creating GL master record)

Ans: When defining the GL accounts in the system, we are required to define a currency in which an account will be maintained, and this is called as the Account Currency. This is defined in the Company Code area of the GL master record, and is used for (a)postings and (b) account balance display. It helps to use the same chart of accounts even though the various Company Codes belonging to the corporate group can still maintain their accounts in different local currencies corresponding to the national currency of the nation where they are operating.

Enter the currency in which the account should be managed. You should always use the company code currency. By doing so, we can post entries in currency in the account. If we use anything other than the company code currency, we can only post in the currency that is specified in our entry. Make sure we have all the requirements for the account before setting up this entry, because it is difficult to change this setting after the a/c has been posted to the general ledger. Q. Only Balances in Local Crcy Ans: Set this indicator only for if we want the balances in the account to be updated in the local currency. It affects how clearing will work in this account if it is to be managed on an open item basis. Open item basis means that we want to view all individual line items that make up the balance of the account and clear individual line items with offsetting (down payment) line items so that we can view both open and cleared line items. Q. Exchange Rate Difference Key Ans: This key determines which account valuation gains or losses are posted to for the account we are configuring. This indicator is only set for accounts that are not managed on an open item basis and are kept in a foreign currency instead of the local currency. This key is configured in table T030S. Q. Tax Category. Ans: It controls what type of taxes can be posted to with this account. The possible entries based on the standard tax categories in the system are as follows:-This indicates that only input tax postings are allowed with this account. Input taxes are sales and use taxes paid by the company. + Denotes that only output tax posting are allowed with this account. Output taxes are sales taxes charged by the company to its customers. *(star sign) Specifies that both input and output tax postings are allowed with this account. < Signifies input taxes on a tax account. It should only be used for tax accounts.

>Signifies output taxes on a tax account. It should only be used for tax accounts. Q. Posting without Tax Allowed Ans: This is allowed both taxable and nontaxable postings to this account. If we specify a tax category in the earlier field without selecting this indicator, we will not be able to post nontaxable items to this account. Q. Recon. Acct for Acct Type Ans: It is denotes that the G/L account being created is a reconciliation account for one of the sub ledgers. The available selections for this field are listed here:

A Select this indicator if we are setting up a reconciliation account for the Fixed Assets sub ledger. D Select this indicator if we are setting up a reconciliation account for the Customer sub ledger. K This is for Vendor sub ledger. Q. Alternative Account No. Ans: It is used when we are using a country chart of accounts for company code in addition to the regular chart. Enter the account number of the G/L account in the country chart of accounts. Q. Acct Managed In Ext. System Ans: Select this indicator if we are utilizing ALE (application link enabling) on our project and want the account managed in one of the other instances. Q. Open Item Management Ans: Select this box if we want to manage the account with Open Item Management. Open item basis means that we want to view all the individual line items that make up the balance of the account and clear individual line items with offsetting (down payment) line items so that we can view both open and cleared line management allows us to display the open and cleared items and amounts in an account. It should be used if an offsetting entry is made for every line item posted in the account (the a/c is reconciled and cleared against another a/c). For example it is used for clearing accounts such as the GR/IR account. Q. What is Open Line Item Management? What do you mean by clearing open line items? Ans: It is further reconciliation function. It allows to display the open and cleared items and amounts in an account. It should be used if an offsetting entry (down payment) is made for every line item posted in the account. The a/c is reconciled and cleared against another a/c. Ex. Salary clearing a/c and GR/IR Clearing account. Q. Line Item Display Ans: Select this box if we want to be able to see a/c balances by individual postings to the account. (Be careful not to set this indicator on a/cs with a very large number of postings.) If we selected the Open Item Management indicator, this (L I D) should also be set. However, setting this indicator does not require that we also make the a/c open item managed. Q. Sort Key Ans: It determines what is populated in the Allocation field of the G/L line item posting for the account. The system uses the Allocation field to sort postings when displaying the line items of the account. The allocation field is populated automatically by the system with information from either the document header or line item, or it can be populated manually by the user at the time of document entry. The Allocation field can also be used as a tool to help in the reconciliation process.

Q. Authorization Group Ans: If we want to limit who can make master data changes to this account, populate this field with the authorization group that is needed to change the account. It is tied to authorization objects, which are tied to user profiles in the system. We should work closely with our Basis team in setting up authorization groups and profiles. Q. Accounting Clerk Ans: In this field, we can enter the identifier to assign the accounting clerk who will reconcile this account. For Ex, this might be used to report who is to reconcile certain accounts. Q. Field Status Group Ans: As we can see from the screen, the FSG G004 has defaulted form the sample account that was created in the preceding section. This controls the a/c assignments that are made to the account. Specifically, this controls whether postings to cost centers, internal orders, profitability segments, and so on are required, suppressed, or optional. Q. Post Automatically Only Ans: Select this indicator if we do not want users posting manually to this account. When the indicator is selected, only the system can post to this account based on configuration in the account assignment tables. This indicator is normally set on inventory accounts, material variance accounts, and such. Once it is set and postings have been made to the account, be careful about deselecting this indicator. If we deselect it on our inventory accounts, it could cause our G/L account to become out of balance with the material ledger. Q. Supplement Auto. Postings Ans: With this indicator selected, we can manually update the account assignments (cost centers, internal orders, and so on) for line items that are generated automatically by the system. The Field Status Group on the account will determine what account assignments can be updated manually. Q. Rec. Acct. Ready for Input Ans: This field indicates that the reconciliation account is ready for posting when we are creating a document. This indicator is used primarily for Fixed Asset reconciliation accounts. Q. Planning Level Ans: This indicator is used in displaying the cash management position in the Treasury sub module. Planning Level denote such things as outgoing payments, incoming payments, and outgoing wires.

Q. Relevant to Cash Flow Ans: This indicator tells the system that the account affects cash flow (For Ex- Receives incoming payments or sends outgoing payments) Q. House Bank Ans: If we are creating G/L accounts for a Bank Account, select the house bank that the G/L account belongs to in this field. Q. Account Id Ans: If we selected a house bank in the preceding field, select the account ID for the house bank that this G/L account belongs to. Q. Interest Indicator Ans: If we want to calculate interest on the G/L account (For Ex - On bank a/cs), select the indicator ID for the interest calculation procedure we want to use. Q. Interest Calculator Freq. Ans: Select the ID for the interval at which the interest calculation should be run. This should coincide with the interest calculation used by our actual bank. Q. Key Date of Last Int. Calc. Ans: The system updates this field with the date at which the last interest calculation was run. We should make an entry in this field only if there was an error in the interest calculation. Q. Date of Last Interest Run. Ans: The system stores the last date that interest was posted to this account. We should make an entry in this field only if there was an error when the interest program was processed. ACCOUNTS PAYABLE Vendor Account Groups Definition: The account group is a classifying feature within vendor master records. The account group determines: o the number interval for the account number of the vendor, o whether the number is assigned by the user or by the system, o which specifications are necessary and/or possible in the master record. Number Ranges for Vendor Account Groups Definition: Identifies a number range interval within an object or sub object. A unique number is assigned to each business partner master record. You can use this number to access the master record, or to refer to the business partner when processing business

transactions. A number range can be valid for more than one account group. You can use the number range to assign different numbers to a head office and subsidiaries. The number for a business partner master record can be assigned in one of the following ways: Externally: You assign the number. In this case, you define a number range that allows for alphanumerical number assignment. The system checks whether the number you enter is unique and within the number range defined by the account group. Internally: The system assigns a consecutive number automatically from a number range defined by the account group. Q. Who is a Customer? Ans: A customer, in SAP, is known as business partner from whom receivable are due as a result of services rendered viz, goods delivered, services performed, rights transferred etc. A customer in SAP is represented by a master record. Vendor Recon Account Definition: The reconciliation account ensures the integration of a Sub ledger account into the general ledger. When you post items to a subsidiary ledger, the system automatically posts the same data to the general ledger. Each subsidiary ledger has one or more reconciliation accounts in the general ledger. We cant use reconciliation account for direct posting Segment wise fields in Vendor Master Creation 1. General Data: 3. Purchasing Data: Address Purchasing Data Communication Partner Usage Control Add. Purchase Data Payment Transactions Contact person 2. Company Code Data: Account management Payment Transactions Correspondence Withholding Tax data Customer Account Groups Definition: The account group is a classifying feature within customer master records. The account group determines: o in which number range the customer account number should be; o whether the number is assigned by the user or by the system; o which specifications are necessary or possible in the master record.
Number Ranges for Customer Account Groups Definition: Identifies a number range interval within an

object or sub object. A unique number is assigned to each business partner master record. You can use this number to access the master record, or to refer to the business partner when processing business tran sactions. A number range can be valid for more than one account group. You can use the number range to assign different numbers to a head office and subsidiaries. The number for a business partner master record can be assigned in one of the following ways: Externally: You assign the number. In this case, you define a number range that allows for alphanumerical number assignment. The system checks whether the number you enter is unique and within the number range defined by the account group. Internally: The system assigns a consecutive number automatically from a number range defined by the account group. Customer Recon Account Definition: The reconciliation account ensures the integration of a Sub ledger account into the general ledger. When you post items to a subsidiary ledger, the system automatically posts the same data to the general ledger. Each subsidiary ledger has one or more reconciliation accounts in the general ledger. We cant use reconciliation account for direct posting Create GL A/c for Customer Recon Account (Screen 1) Menu Path: Easy Access Accounting Financial Accounting General Ledger - Master Records Individual Processing Create Centrally T Code : FS00 Steps: 1. Enter GL A/c Code 2. Enter Co. Code 3. Select A/c group 1 4. Select P&L or B/S 2 5. Enter Short Text 6. Enter Long Text 7 7. Click Control Data 3 4 5 6

Segment wise fields in Customer Master Creation 1. General Data: 2. Company Code Data: Address Account management Communication Payment Transactions Control Correspondence Marketing Insurance Payment Transactions Withholding Tax data Unloading Points Contact person Foreign Trade 3. Sales Data: Purchasing Data Partner Usage Add. Purchase Data Q. Explain Customer / Vendor Master Records. Ans: There are 3 categories of data maintained in a typical master record for a customer / vendor : General Data Company Code Data Sales Area Data (for customers) /Purchasing Organization Data (for vendors)

The General Data include general information like account number, name, telephone, bank information, trading partner, vendor (if the customer is also a vendor), group key, bank key, bank account, alternate payee etc., that are common to all the Company Codes using this master. The Company Code Data comprises (contain) terms of payment, payment methods, tolerance group, clearing with vendor, dunning data (dunning procedure, dunning recipient, dunning block, dunning clerk etc.), reconciliation account, sort key, sales area (purchasing organization in the of vendor master), head office etc. Except the sales (purchasing for a vendor) related information, all other details are usually maintained by the accounting people who can also access the sales data / purchasing data when the master is maintained centrally. The sales area data in the Company Code area of customer master record contains the following: Billing data (payment terms if different from the payment terms maintained at the Company Code level, account assignment group etc) Order related (sales district, sales office, sales group, customer group etc) Price related (pricing group, pricing procedure etc) Shipping data ( shipping strategy, delivery priority etc)

Transaction Code Activity Create Change Display Block / Unblock Mark for Deletion In Accounting Customer Vendor FD01 FK01 FD02 FK02 FD03 FK03 FD05 FK05 FD06 FK06 Centrally Customer Vendor XD01 XK01 XD02 XK02 XD03 XK03 XD05 XK05 XD06 XK06

The purchasing organization data in the Company Code area of Vendor master record contains the following:-

Conditions (order currency, payment terms, Inco terms, minimum order value etc) Sales data (A/c with Vendor) Control data

During creation of master record, the system checks for duplicates for the same customer / vender which is achieved by the system through the Search-ID (Match Code) configured on the customers /vendors address information. As in case of G/L account master record, the creation of customer / vendor master record is also controlled by the Account Group which is called as customer account group / vendor account group (CPD / CPDL /KREDI / LIEF) which controls the numbering for customer / vendor master records, field status, whether an account is a regular one or One-Time account etc. Q. Outline One-time Accounts. Ans: When we face a situation that we have customers whom we only supply once or rarely, we can create a special customer master record for these one-time accounts. As against the regular master records, no data specific to a single customer is stored in the one-time master record, since this account is used for more than one customer; all the customer-specific date (like address, bank details etc) are not entered until the document for the transaction is entered into the system. When we post to a onetime account, the system automatically goes to a master data screen; here we will enter the specific mast data for the customer, which is stored separately in the document. Except this, we can process the master record for a one-time account in the same way as you process all other master records, we can dun open items from it with the dunning program or pay items using the payment program etc. However, we cannot clear amounts with a vendor. As the customer master records for one-time accounts are created with their own account groups, the customer-specific fields (such as name, address and bank details) are hidden from display when we enter the customer master record. In the case of reconciliation accounts for one-time customers, it is possible to have two different reconciliation accounts for domestic and foreign receivables; for this we need to create two one-time master records. Alternative Recon Account Definition: The reconciliation account in G/L accounting is the account which is updated parallel to the sub ledger account for normal postings (for example, invoice or payment). For special postings (for example, down payment or bill of exchange), this account is replaced by another account (for example, 'down payments received' instead of 'receivables'). The replacement takes place due to the special G/L indicator which you must specify for these types of postings. Q. Who is an Alternate Payee? Ans: A customer who pays on behalf of another customer is known as alternate payee (or alternate payer). Though the alternate payee pays on behalf of another, the system maintains all the transaction details in the account of the original customer. Designating alternate payee does not absolve the customer of his / her obligation for payment.

The Alternate Payee can be maintained in (a) Client specific data or (b) Company Code area. When maintained in Company Code area we can use that payer only in that Company Code; if defined at the Client level we can use the same across all Company Codes. There are 3 ways of selecting the alternate payee when an invoice is processed: i) ii) The Alternate payee (say, 1000) entered in the customer master record is the one selected by the system as default. When there is more than one alternate payer (say, 1000, 1900, 2100 etc) defined for a single customer in the master record (we will do this by clicking on the allowed payer button and create more than one payer), we may select a payer (say,2100) (other than the default, 1000) while processing the invoice. Now the system will ignore the alternate payer (1000) coming from the master record. If we have put a tick mark in the individual entries check-box in alternate payer in document section in the customer master record, then this will allow we to propose a new alternate payer, say, 3000 (other than those already defined in the system). Now, after defining this alternate payer we can use the same in processing the invoice. In this case, this alternate payer (3000) takes precedence over the payers (1000 & 2100) in step 1 & 2 above.

iii)

Q. What is the use of Trading Partner? Ans: The concept of Trading Partner is used to settle and reconcile inter-company transactions; both sales and purchases. This is generally achieved by entering the Company-ID (Not the Company Code) to which a customer belongs in the trading partner field under the tab Account Control in the customer master record. We can do a similar entry in the vendor master record. Q. What is Dual Control in master records? Ans: Dual Control helps to prevent unauthorized changes, to the important and sensitive fields, in the master records in the system. (All such sensitive fields are defined in the Table T055f during customizing the application. And, these fields are defined per Company Code and per Client) Consider, for exp, a sensitive field like payment block in a vendor master record. When a user changes this fields content, the system requires another user (usually of higher authority) to approve this change and an audit trail is maintained of all such changes. Unless the change is approved, in this particular master is blocked by the system for considering the same in the next payment run. Transaction Code Activity Display changes (accounting area) Display changes (centrally) Confirm changes, individually Confirm changes, in a list Customer FD04 XD04 FD08 FD09 Vendor FK04 XK04 FK08 FK09

Q. Explain Blocking a Customer Account. Ans: A customer can be blocked centrally or for posting only. It is possible to block a customer in all the company codes or in only one company code. We can block a customer account for a variety of reasons: We may block a customer account so that postings are no longer made to that account. We will block a customer account before marking a customer master record for deletion. It may also be necessary to block a customer that we use only as an alternative dunning recipient (one who receives), so that nobody can post to that customer by mistake. We block customer for payment: when blocked for payment, the payment program still processes the open items in the account during the payment run, but it does not pay any open items from the blocked accounts. However, we can display a list of customers blocked for the payment program. We block a customer for dunning: when blocked an account for dunning, the dunning program still analyzes the open items in the account during the dunning run, but no dunning notice is created.

When we have also implemented the Sales and Distribution (SD) application component, the following blocks are possible for a customer: Posting block Order block Delivery block Invoicing block

Since we will not be able clear any open item, it is recommended that we block a customer account only when there are no open items in that account. Of course, we can cancel a block at any time, by simply removing the relevant block indicator. Q. Can you Archive a customer master record immediately? Ans: It is possible to archive customer master records that are no longer required. When archived, the data is extracted (remove or take out) from the SAP database, deleted, and placed in a file so that we can then transfer this file to an archive system. However, we will not be able to archive a customer account immediately because the system first has to check the following: Is there a transaction figure for that account in the system? The account must not contain any transaction figures in the system. Transaction figures from previous years that have not been archived will also prevent the system from deleting the Is the account marked for deletion? The a/c must be marked for deletion (using the deletion flag) in its master record. But, remember to block an account for posting before we mark it for deletion.

Note that when we mark a customer master record for deletion, we can set the deletion flag for all company codes or just for one specific company code. Even after the deletion flag has been set for a customer a/c, we can still cancel the deletion flag at any time as long as the master record has not yet been physically deleted from the system. Q. Can you Post to a Customer account which is Marked for Deletion? Ans: We can still post to an account which has already marked for deletion. Because, we might still need to clear open items. When we post to such an account which is marked for deletion, the system just issues a warning that we are posting to an account that is marked for deletion. It does not prevent us from posting to that account. Q. Can you assign a customer / vendor master record to a business area? Explain. Ans: It is not possible to assign customer / vendor master records to a business area: the business area is usually determined from the business area(s) assigned to the related G/L account posting(s) and therefore, we dont have to carry out the account assignment manually. In an invoice, the customer / vendor item takes the business area(s) of the expense or revenue posting: If the business area is unique in the document (the system checks that any business area entered in the customer/vendor item is the same as that in the offsetting G/L account item and issues an error message if this is not the case), it is copied into the line item automatically. If there is more than one business area, no value is entered in the customer/vendor item and a transfer posting to the receivables/payables account is carried out subsequently. The taxes are always posted without a business area. The system then, at a later date, makes a transfer posting from the tax account to the business areas for the revenue or expense accounts. Dunning payments, customer/vendor items in payment documents take the business area from the invoice. The cash discount and exchange rate difference postings take their business area from the customer/vendor item they originated from: if posted without a business area, and the business area is only determined subsequently by means of a transfer posting to the GL; note that we need to carry out this subsequent step for the cash discount and exchange rate postings. The system cannot automatically derive the business area that triggers the down payments since the invoice that belongs to the down payment is not entered until later. The business area in the customer/ vendor item is therefore either not assigned, or is assigned manually. Like taxes, the bank item is posted without a business area (unless one is assigned manually).

Special General Ledger

Advance Payment

Alternative Recon Account Definition: The reconciliation account in G/L accounting is the account which is updated parallel to the sub ledger account for normal postings (for example, invoice or payment). For special postings (for example, down payment or bill of exchange), this account is replaced by another account (for example, 'down payments received' instead of 'receivables'). The replacement takes place due to the special G/L indicator which you must specify for these types of postings.

Define alternative recon a/c for Down Payments Menu Path: IMG Financial Accounting Accounts Receivable & Accounts Payable Business Transactions Down payment made Define alternative recon a/c for Down payments T Code : OBYR Automatic Posting Definition: When you post special G/L transactions, the system generates automatic postings. To make automatic postings, the system requires specifications on the accounts to post to and the posting keys to use. This information is also already defined in the standard system. You need only make changes if you do not use the standard chart of accounts or if you want to use other account numbers, posting keys or account determination rules. You must also decide which automatic postings you want to have carried out. Assign Automatic Posting Menu Path: T Code : OBXU, & OBXI FBKP Steps: 1. Enter Chart of A/c 2. Click Save button 2,4 3. Enter GL A/c 4. SAVE the settings 3 (T. Code - OBXI for Cash Discount Allowed & T. Code - OBXU for Cash Discount Received)

Terms of Payments
Payment Terms for vendor Definition: Key for defining payment terms composed of cash discount percentages and payment periods. It is used in sales orders, purchase orders, and invoices. Terms of payment provide information for: o Cash management o Dunning procedures o Payment transactions Define Payment Terms for vendor Menu Path: IMG Financial Accounting Accounts Receivable & Accounts Payable Business Transactions Outgoing Invoice/Credit memo Maintain Terms of Payment T Code : OBB8 Steps: 1. Enter 4 digit Code 6 2. Select Vendor and Customer 3. Enter Percentage 1 4. Enter No. of days 2 5. Select, if interest calculation is required 6. SAVE the settings 5 3 4 Assign Payment Terms to Customer Master Menu Path: Easy Access Accounting Financial Accounting Accounts Receivable Master Records - Change T Code : FD02

House Bank Definition: The banks with which your company (company code) maintains a bank
account are referred to as house banks. Each house bank in a company code is represented in the SAP R/3 System by a bank ID and each account maintained with a house bank is represented by an account ID. You define these banks in the system under a house bank key (bank ID). You store the accounts that you maintain at these banks under an account ID. For each bank account, you create a G/L account in the SAP system. You use the bank ID and the account ID in the SAP R/3 System to enter bank details. These entries are used to determine the bank details for a particular payment for automatic payment transactions, for example. THE FIELDS ON THE BANK A/C DATA CONFIGURATION SCREEN: Bank Account: Enter the identifying no.of our a/c at the bank. This entry should correspond to the a/c no. that is given to us on our bank statement Altern. Acct. No.: This field should only be used when a/c at the same bank use the same a/c No. Normally, the only way two different a/cs will have the same a/c No. is if the bank manages our companys a/cs in more than one currency. Do not make an entry in this field unless it is required by our banking relationship. This a/c No. must be different than the normal a/c No. Currency: Enter the currency in which this a/c is managed. Control Key: For U.S. Banks, this is used to identify whether the a/c is a checking a/c OR savings a/c. If an entry is not made in this field, the system defaults to checking a/c

G/L Account: Each Bank a/c has to be tied to a valid G/L a/c No. The bank a/c updates the G/L a/c entered here. Discount Acct: If our company utilises Bill of Exchange functionality, enter the cash discount a/c for credit memo postings that this bank a/c should update. Creation of House Bank (Screen 1) Menu Path: IMG Financial Accounting Bank Accounting Bank Accounts Define House Bank T Code : FI12 Steps: 1. Enter Company Code 7 2. Click New Entries 3. Enter House Bank 3 4. Enter Bank Country 8 4 5. Enter bank Key 6 6. Click Create button 5 7. SAVE the settings 8. Double click Bank Accounts Creation of House Bank (Screen 2) Menu Path: IMG Financial Accounting Bank Accounting Bank Accounts Define House Bank T Code : FI12 Steps: 1. Click New Entries 7 2. Enter A/c ID 2 3. Enter Description 4. Enter Bank A/c No. 3 5. Enter Currency 4 6. Enter GL A/c No. 5 6 7. SAVE the settings

Automatic Payment Program Definition: The payment program is designed so that both
outgoing and incoming payments can be processed. These functions are supported for payment transactions with vendors and customers and between bank accounts. All the common payment procedures are in the standard system or can be set up within Customizing. All default values used in the payment program are required in the following. The payment program processes domestic and foreign payments for vendors, customers and between bank accounts. It generates the payment program and provides the data for the payment medium programs. These ABAP programs print a payment list, payment forms (e.g. checks) or generate data media such as magnetic tape or disk. A further possibility is the distribution of payment data to a central system via ALE. APP Configuration (T. Code FBZP) - 1) Setup All Co. Code for Payment Transaction 2) Setup Paying Co. Code 3) Setup Payment Method per country 4) Set up Payment Method per Co. Code 5) Set up Bank Determination Automatic Payment Program (APP) House Bank All Co. Codes Paying Co Code Bank name Paying Co. Code Min Amt for Incoming Bank Country Sending Co. Code Min Amt for Outgoing Bank Key Spl GL Trans Separate pmt Bank Address for each ref. Currency Bank GL A/c Pmt Method in Country Pmt Method in Co Code Bank Determination Payment Method Pmt Limit (Max & Min) Ranking Order Doc type for pmt Foreign Currency Bank Accounts Doc type for clearing Available Amts Bank Details Available Days etc., Currency Q. Outline the steps in executing the Payment Program? Ans: The following steps are involved in executing the payment program: 1.Maintain Payment Parameters To start with, we need to maintain the parameters for the payment run like date of execution of payment run, payment run identifier etc. Once this is done, we need to specify: What should be the posting date for the payments The document date up to which the program should consider the items for payment The paying company code Payment methods to be considered What will be the next posting date

Are there certain accounts which need to be excluded from the run etc

The payment run, then needs to be scheduled either immediately or at a specified time/date 2. Payment Proposal The system creates a payment proposal, based on the payment parameters. The system selects the eligible open items based on the following sequence: a) b) c) Due date is determined via the base line date and the terms of payment for each of the line items Program calculates the cash discount period and due date for the net payment Grace periods (company code-specific grace periods for payables, maintained in the field Grace period in days for payable under cash discount & tolerances) are then added to this due date Which Special G/L accounts are to be included (by entering the special G/L code of the transaction in question when you make the company code specifications), based on what you have already maintained in the parameters. The system will determine whether to include an item during the current payment run or for the future one based on the specifications you made in parameters The program also determines whether to block an item

d)

e) f)

The payment proposal thus created can be displayed for further processing; the log can be checked to see the system messages, and the exception list generated for further evaluation. 3.Edit Payment Proposal: With the payment proposal available, we can now edit the proposal to: a. Change House Bank, from what was maintained earlier b. Change Payment Method, if necessary c. Change Payment Due Date so as to relax or restrict certain open items d. Block/Unblock line items 4. Payment run After the payment has been edited, we can run the Payment Program that creates the payment documents and prepares the data for printing the forms or creating the tape or disk. Before printing the forms, check the logs to determine that the payment program run was successful. 5. Print run Payment Medium Programs use the data prepared by the payment program to create forms (payment advice, EDI accompanying sheet) or files for the data media. The data created payment program are stored in the following Tables: PEGUH PEGUP PEGUD Payee or Payment Method data Individual Open Items data Bank Data and Payment Amounts data

We need to define Variants for print programs: a. Per Payment Method per country : assign a Print Program b. To run the Print Program : at least one Variant per Print Program per Payment Method

T. Code : FI10