PAAC10 Accounting and Controlling

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PAAC10 Accounting and Controlling

0. PAAC10CopyrightOverview of PAAC10

1. Section: Financial AccountingContents (1)Contents (2)Contents (3)Contents (4)Contents (5)Organizational Structures in Financial AccountingClients in the SAP SystemOrganizational Structure 1Organizational Structure 2aOrganizational Structure 2bOrganizational Structure 2 - Consolidation Enterprise ViewOrganizational Structure 3Organizational Structure 4Organizational Structure 5Organizational Structure 6Summary: Organizational Structures

2. Basic ConfigurationConfiguration Project StepsBreakdown Of Configuration Levels

FI Configuration - What To Do (1)FI Configuration - What To Do (2)FI Customizing Copy FunctionsFI Configuration - What To Do (4)FI Configuration - What To Do (5)Summary: Basic Configuration

3. Global Data In The Company CodeOrganization of AccountingProcedural ParametersAddressAdditional Specifications

Summary: Global Data In The Company Code

4. General Ledger AccountsAccounting Master Data - G/L AccountsAccounting Master Data - Chart Of AccountsG/L Account Master RecordAccounting Master Data - Charts Of AccountsAccounting Master Data - CASH Account Group (Current Assets/ Accounting Master Data - FieldsAccounting Master Data - StatusSummary: General Ledger Accounts



5. Bank Master DataHouse Bank Master Data - BanksHouse Bank Master Data - Bank DirectoryHouse Bank Master Data - Bank IDHouse Bank Master Data - Key TermHouse Bank Master Data - Creating House Banks/Bank Accounts

Summary: Bank Master Data

6. Customer Master DataAccounting Master DataCustomer Master Records - CreateCustomer Master Record - Affiliated CompanyCustomer Master Record - Using ModulesCustomer Master Record - Accounting / SalesCustomer Master Record - AccountingMaster Data - Account Groups 1Number Ranges 1Summary: Customer Master Data

7. Vendor Master DataAccounting Master Data - VendorsVendor Master Record - CreateVendor Master Record - Using ModulesVendor Master Record - Accounting / PurchasingMaster Data - Account Group 2Number Ranges 2Summary: Vendor Master Data

8. DocumentsReconciliation AccountDocument PrincipleDocument StructureBasic Posting - Document Header DataBasic Posting - First Line ItemBasic Posting - Next Line ItemPosting KeysPosting Keys - Field StatusField Status Definitions (G/L Accounts)Screen ModificationDisplay / Change DocumentDocument Change RulesDocument ReversalDefault Values

Summary: Documents

9. Document ControlValid Posting Periods - Posting DateValid Posting Periods - Account Type KeysValid Posting Periods - VariantsValid Posting Periods - Posting Date When Entering DocumentsDocument TypeDocument TypesDocument Number Range - DefineDocument Number Range - SpecifyPosting KeysDefault Values For Fiscal Year and Value DateSummary: Document Control



10. Postings TransactionsSetting Up New Tax CodesTax AccountsExchange Rate DifferencesClearing Between Company CodesAccount Determination

Payment TermsAutomatic PostingsWork Lists For Several Company Codes And/Or AccountsLine Item Display - Automatic Work ListsEntering Recurring PostingsRecurring Entry Program FlowSummary: Posting Transactions

11. Accounts and Line ItemsAccount: Transaction FiguresBalance Display for G/L AccountsBalance Display for Customers and Vendors

Account Line ItemsMaster Record ControlSummary: Accounts and Line Items

12. Foreign CurrenciesPosting in Foreign CurrencyThe FI ViewTarget GroupOptions for Additional Currencies (FI)Two Additional Currencies in FIFI using LCAlso See Exchange Rates

13. Entry Tools and Special FeaturesEntry Tools: Entry with ReferenceSolution for Recurring PostingsPosting with Account Assignment ModelSample Documents and Account Assignment ModelsText in Line ItemsHold and Process DocumentCross-Company Code PostingCross-Company Code ClearingCross-Company Code Posting (2)Invoice and Credit Memo Fast EntryG/L Account Line Item Fast Entry

Document ParkingParkingChanging a Parked DocumentPostingDocument DataPark (1)Park (2)Park (3)Park (4)PostingOverview of Release Approval ProcedureSummary: Entry Tools and Special Features

14. Optional FunctionalityCross-System Company Codes



Additional Local CurrencyIndividual Editing OptionsGeneral Editing OptionsMaintaining The Line LayoutDefining Processing MethodsScreen Modification - Master Record and Posting Functions

Screen Modifications - Example: Customer Master RecordScreen Modifications - Link Rules - Master RecordsScreen Modifications - Link Rules - Posting TransactionsControl TotalsSummary: Optional Functionality

15. ReportingReporting - Table TLSEPRequesting A ReportDefining A JobSummary: Reporting

16. Company-Specific ModificationsAccounting Environment - Minimum Entries (Employees 1)Accounting Environment - Minimum Entries (Employees 2)Accounting Environment - Minimum Entries (FI Tolerance GroupFI Tolerance Groups For Users And Customers/Vendors 2FI Tolerance Groups For Users And Customers/Vendors 3Accounting Environment - Minimum Entries for TaxAccounting Environment - TaxesAccounting Environment (2)Accounting Environment - Minimum Entries (Field Status, CurrSummary: Company-Specific Modifications

17. Posting with Clearing

Posting with ClearingPosting with Clearing (2)Selecting Items for ProcessingProcessing Open ItemsPartial PaymentResidual ItemsClearing with Exchange Rate DifferencesClearing in a Third CurrencyClearing between Customer and Vendor (2)Fast Entry: Incoming Customer PaymentsIncoming Payments Fast EntryTolerance Groups

Tolerance Groups for UsersTolerance Groups for Business PartnersAccountSummary: Posting with Clearing



18. Automatic Dunning - Operating the Dunning ProcessHow Dunning WorksKey ValuesMaster Record - Dunning DataRunning The Dunning ProgramControl Specifications

Dunning RunProcessing the Dunning ProposalPrinting Dunning NoticesCustomer - Vendor ClearingSummary: Automatic Dunning

19. Automatic Dunning - Configuring the Dunning ProgramConfiguring The Dunning ProgramMaintaining The Dunning Program: OverviewDunning LevelsMinimum AmountsDunning Charges

Interest RatesDunning TextsCompany Code DataSort FieldsDunning Block Reasons / Dunning KeysDefining Dunning AreasGrouping KeySender SpecificationsMahnlauf - Ausführung des MahnprogrammesSummary: Automatic Dunning - Configuring the Dunning Program

20. Automatic Payments - Operating the Payment ProgramPossible Payment Methods

Payment Programm FlowEinflußgrößenMaster Record - Customer/Vendor Bank DetailsMaster Record - Parameters For Automatic Payment TransactionDocument: Key ValuesControl Specifications: ParametersControl Specifications: Proposal RunControl Specifications: Payment ProposalControl Specifications: Processing The ProposalControl Specifications: Payment RunControl Specifications: Printing Payment MediaPrint Programs - Variants

Customer - Vendor Clearing 2Summary: Automatic Payments - Operating the Payment Program



21. Automatic Payments - Configuring the Payment ProgramPayment ControlCompany CodesPaying Company CodesPayment Methods Per CountryPayment Methods Per Company Code

Payment Methods Per Company Code IIPayment Program ConfigurationBank SelectionAccount Determination - Account IDAvailable AmountsBank Selection By Postal CodeValue DateCharges / FeesPayment Block ReasonsGruppierungsschlüsselPrinting Payment MediaPrint ProgramsFormsData Medium ExchangeAutomatic Cashed Checks With Optical Document EntrySummary Automatic Payments - Configuring the Payment Program

22. Special General LedgerSpecial General Ledger TransactionsPosting MethodsControlsHow Special General Ledger Transactions are DisplayedDown PaymentsCustomer Down PaymentsVendor Down Payments

Down Payments with Tax: Gross or Net DisplayBills of Exchange ReceivableBills of Exchange Receivable - CollectionBills of Exchange Receivable - DiscountingBills of Exchange PayableBills of Exchange Payable (2)Special General Ledger - Summary

23. Introduction to Individual Account ClosingThe Individual Financial Closing Process in OverviewExternal ClosingAsset History Sheet (FI-AA)

Internal ClosingFundamentals of Closing OperationsSummary: Introduction to Individual Account Closing

24. Closing Operations for Payroll AccountingPayroll Data on the Balance SheetThe Payroll Procedure and Subsequent ActivitiesPosting Personnel Costs Using a Clearing Cost CenterFurther Postings Effected for Payroll AccountingParticular aspects of transfers to FI/COImputed Costs in Cost AccountingDUEVO (German Data Communications Regulation)Summary: Closing Operations for Payroll Accounting

25. Closing Operations for Accounts Receivable and Payable



Accounts Receivable and Payable on the Balance SheetTransactions in Sales and Distribution ProcessingEffects of Creating a Billing InvoiceConsistencyCustomizing I : Balance ConfirmationsCustomizing II : Balance Confirmations

Individual Value Adjustments (IVA) for Doubtful ReceivablesForeign Currency Valuation and the Sorted ListValuation (with Update)Valuation (without Update)Customizing: Exchange Rate TypesCustomizing: Valuation MethodsCustomizing: Acct Determination for Exch. Rate DifferencesExample: Customers with Credit BalanceChanged Reconciliation AccountCustomizing: Regroup Receivables and PayablesDocumentationReportsSummary: Closing Procedures for Accounts Receivable/Payable

26. Closing Operations in Inventory AccountingIntegration of Inventory Accounting in the Balance SheetTransactions in Inventory AccountingCash DiscountMaintaining the GR/IR Clearing AccountPhysical Inventory ProcedureMaterial Valuation in the SAP System IMaterial Ledger ClosingMaterial Price ChangesLowest Value DeterminationClosing Operations and Documentation

INTRASTAT DeclarationSummary Closing Operations in Inventory Accounting

27. Period Closing in Controlling and in the Project SystemControlling in R/3Organizational Units in the SAP System from a CO StandpointAssignment of Company Codes to a Controlling AreaCombination of Company Codes and Controlling AreaThe Chart of AccountsCost ElementsAllocating Costs to CO Objects ICost Clearing in External AccountingReconciliation LedgerStructure of the Reconciliation LedgerReconciliation PostingsReconciliation ReportsAccount-Based and Costing-Based Profitability AnalysisTransfer of Payables/ReceivablesReporting Techniques in Cost Object ControllingCO-PA Information SystemSummary Period Closing in Controlling and Projekts System



28. Closing Operations for Asset AccountingAssets on the Balance SheetPeriodic Processing - OverviewReport selectionSettlement of Capital Investment OrdersCapitalization of Assets under Construction

Line Item Settlement of Asset under ConstructionDepreciation Posting ProgramDocumentation: Asset History SheetFiscal Year Change/Year-end ClosingSummary: Closing Operations for Asset Accounting

29. Closing Procedures for Financial AccountingAccrual/Deferral PostingsAccrual/Deferral Posting: Warehouse LeaseAutomatic Postings - Exchange Rate DifferencesExchange Rate Differences in Foreign Currency BalancesValuating Foreign Currency Balance Sheet Accounts

GR/IR Clearing Account Analysis and Declaring Acquisition TaSubsequent BA/PC / Profitablility Segment AdjustmentFlexible ReportingFinancial Statement VersionsSetting Up the Balance Sheet Section of a Fin.Stmnt VersionSetting Up the P+L Section of a Fin.Stmnt VersionAccount Group Allocation According to BalanceTextsGroup EvaluationsGrouping within the Company CodeEvaluations by Country Chart of AccountsPlanningEnter planned values

Plan VersionsBalance Audit Trail (Accumulated)Volume Problem / Optimizing Run TimesCountry-Specific Balance Audit TrailGL Account = Tax AccountManual Tax PostingNon-Deductible Input TaxTax Return (RFUMSV00, RFASLM00)EU Single European MarketTax Return and PostingsSummary Closing Procedures for Financial Accounting

30. Closing Procedures in Preparation for ConsolidationScope of Consolidation and Data TransferTransferring Financial Statement Data: Periodic ExtractFinancial Statement Version for ConsolidationTransferring Financial Statement Data: Realtime UpdateSend Data to ConsolidationCarrying Forward via Consolidation Staging LedgerSummary: Closing Procedures for the Prep. for Consolidation

31. The Individual Financial Closing Process - IntegrationMonth-End Closing (Example)Summary Individual Financial Closing Process Integration



32. Financial CalendarScheduled Programs and ReportsStatus of Scheduled Programs and ReportsFinancial Calendar - Monthly OverviewWorkflow IntegrationScheduling

Defining TasksScheduleTask + ScheduleIntegrationSummary: Financial Calendar

33. Production StartupProcedureData Transfer MethodsData Transfer ProcessOutput And Change ProgramScheduling Data Transfer

Preparing for Production StartupPreparing for Production Startup (2)Setting the Productive IndicatorSummary: Production Startup

34. Standard Texts And FormsForms - Naming ConventionsForms - Parts Of The FormForms - ConfigurationSummary Standardtexts and Forms

35. Correspondence and Interest CalculationOverviewsAutomatic CorrespondenceCorrespondence: Functional Overview 1Correspondence: Functional Overview 2From Correspondence Type To Form 1From Correspondence Type To Form 2Correspondence - ConfigurationIndividual Text 1Individual Text 2Balance ConfirmationsBalance ConfirmationInterest CalculationCorrespondence - Configuration (Interest Calculation Types)

Posting InterestSummary Correspondence and Interest Calculation

36. Appendix 1: Consolidation OverviewConsolidated Financial Statements (Appendix)Legal FoundationsImplications of the Single Entity TheoryDisclosure Obligations and ExemptionsConsolidation FunctionalityMain Features of ConsolidationIntegration of FI-LC Legal ConsolidationFI-LC Implementation ScenariosMaster Data Overview ConsolidationCompaniesSubgroups



Classification of FS itemsFS Item AttributesFS items and their Additional AssignmentsPreparation for ConsolidationOrganizational StructureTrading Partners in Consolidation

Scope of Consolidation and Data TransferIndividual Financial StatementsOverview of Data InputData Transfer MonitorStatus ManagementTransferring Financial Statement Data: Periodic ExtractTransferring Financial Statement Data: Realtime UpdateEnhanced Integration of FI-LC Additional Account AssignmentsRemote Data Entry with MS AccessSAP Data Entry FormsValidation ChecksStandardizing EntriesAudited Corporate Valuation of Subsidiary Statements

Central Standardizing EntriesCurrency TranslationCommon Currency Translation MethodsCurrency Translation, Translation Sets, Exchange RatesConsolidation EntriesIntercompany EliminationsCauses of Elimination DifferencesIntercompany Profit/Loss in Transferred AssetsConsolidation of InvestmentsInformation SystemInformation System, FI-LC DatabaseReporting Options

Interactive Reports 1Interactive Reports 2Report Writer and Painter for Consolidation DataInteractive Excel - Reporting with MS ExcelThe Principles Behind Interactive ExcelVersionsSimulation Analysis / Version ConceptVersion Concept - A Currency Translation ExampleAppendix 2: SD and Financial Accounting IntegrationTransferring Data from SDData TransferReference Numbers / Allocation NumbersAccount Assignment Criteria in the Invoice

Sales Revenue Account DeterminationSummary SD and FI IntegrationAppendix 3: Overview of Credit ManagementIntroductionComposition of Total LiabilitiesLocal Organization - Central OrganizationCredit Limit Per Customer /Group of CustomersCredit Limit for New CustomersCentral Data and Data Per Credit Control AreaDisputed ItemsWhen To Review CreditSummary Credit Management

37. Complex Asset AccountingContents Asset Accounting



Organizational Structure of Asset AccountingClient - Company CodeChart of Accounts - Chart of DepreciationOrganizational Structure - ExampleAsset Accounting Company CodeCost Accounting Assignment

Client - Asset ClassSummary: Asset Accounting

38. Master DataFunctions of the Asset ClassDefinition of the Asset ClassesAccount AllocationScreen Layout for Asset Master DataNumber AssignmentSpecial Asset Class: Asset under ConstructionSpecial Asset Class: Low Value AssetsCreating the Asset Master RecordTime-dependent DataChanging assetsThe Asset Sub-numberUse of Workflow in Asset AccountingBulk Changes using WorkflowWorkflow for Bulk Changes (Rule)Summary: Master Data Asset Accounting

39. Asset TransactionsAsset Accounting as Subsidiary LedgerAsset Acquisition - IntegrationProcedure for Integrated Asset AcquisitionAccounts for Integrated Asset Acquisition

Document Type: Gross or NetDocument Number RangeTransaction TypeTransaction Types and Transaction Type GroupsAsset Acquisition (not integrated)Asset Accquisition with MMAsset Acquisition - Master RecordAsset Acquisition - Value FieldsProcedure for Asset RetirementAccounts for Asset RetirementAsset Retirement 1Asset Retirement 2Workflow for Mass RetirementAsset TransferAssets under ConstructionLine Item Settlement of Asset under ConstructionCurrent-value DepreciationSummary: Asset Transactions



40. ValuationThe Chart of DepreciationComparison of Country-Specific Charts of DepreciationAsset Classes in the Chart of DepreciationDepreciation Area XX in the Asset or Asset ClassValuation Rules

Screen Layout Depreciation Area and Maintenance LevelDepreciationDepreciation KeyElements of Depreciation CalculationExample: Book Depreciation ValuationExample: Tax Depreciation ValuationExample: Derived Depreciation AreaExample: Cost-accounting Depreciation AreaReplacement ValuesCalculating the Replacement ValueCost-accounting InterestSummary: Valuation

41. Periodic ProcessingPeriodic Processing - OverviewDepreciation Posting ProgramOrganizational Procedure for Depreciation PostingSettings for PostingDepreciation Posting for Acquisitions During the YearFiscal Year Change/Year-end ClosingYear-end ClosingSummary: Periodic Processing

42. Info SystemReport Selection

Asset Value DisplayDepreciation SimulationAsset SimulationSimulation VersionsDepreciation Simulation (Order/Project)Sort CriteriaAsset History SheetHistory Sheet ChangesSummary: Info System

43. Transfer of Old Assets DataTransfer of Old Assets Data

Options for Transferring Old Assets DataExample: Transferring Old Data at Fiscal Year EndExample: Transferring Old Data During Fiscal YearAutomatic Transfer of Old Assets DataAccount Control after Productive StartSummary: Transfer of Old Assets Data



44. Overhead Cost ControllingOverhead Cost Controlling OverviewIntroduction to Overhead Cost ControllingTasks in Overhead Cost ControllingOverhead Cost Controlling in R/3Organizational Units in the R/3 System from the CO Standpoin

Assignment of Company Code and Controlling AreaCombination of Company Code and Controlling AreaSummary Overhead Cost Controlling

45. Master Data in Cost Element and Cost Center AccountingOrganizational Units in Cost Element and Cost Center AccountMaster Data GroupsTime-Based Creation of Master DataThe Chart of AccountsThe Cost ElementAutomatic Creation of Cost ElementsThe Cost Center

Cost Center TypesActivity TypesStatistical Key FiguresSummary of Cost El. and Cost Center Accoun. Master Data (1)Summary of Cost El. and Cost Center Accoun. Master Data (2)

46. Transaction-Based PostingsTransaction-Based Postings in OverviewNumber Assignment for CO DocumentsAccount Assignment Logic (1)Account Assignment Logic (2)Account Assignment Logic (3)Account Testing with Validation and Substitution (1)

Account Testing with Validation and Substitution (2)Transaction-Based Postings Through IntegrationAutomatic and Default Account AssignmentTransaction-Based Postings in ControllingTransaction-Based RepostingRepost Line ItemsDirect Internal Activity AllocationActivity RecordingRecording Statistical Key FiguresTransaction-Based Postings Summary (1)Transaction-Based Postings Summary (2)



47. Periodic AllocationsPeriodic Allocations in OverviewImputed CostsImputed Cost Calculation: Cost Element MethodDefining the Cost Element MethodDefining the Cost Element Method / Calculation Base

Defining the Cost Element Method / SurchargesDefining the Cost Element Method / Imputed ObjectImputed Costs: Target=Actual Method (1)Imputed Costs: Target=Actual Method (2)Imputed Costs: Target=Actual Method (3)Periodic RepostingDistributionAssessmentApplying Periodic Reposting, Distribution, and AssessmentDefining Periodic Reposting, Distribution, and AssessmentCombinable Sender and Receiver RulesExecuting Periodic Reposting, Distribution, and AssessmentIndirect Activity Allocation (1)Indirect Activity Allocation (2)Actual Activity Can Be Entered On the SenderActual Activity Not Enterable on the SenderValuation at Actual Activity PriceActual Activity Price CalculationActual Cost SplittingActivity Price Calculation with Cost Component LayoutTransferring Statistical Key Figures from the LISPeriodic Allocations Summary

48. Planning in Cost Center AccountingGoals of Cost Center Planning

Planning Scope and Techniques/Stat. Key FiguresPlanning Scope and Techniques/Activity TypesPlanning Scope and Techniques/CostsArranging the Planning ScreenFlexible Choice of Planning Views (1)Flexible Choice of Planning Views (2)Flexible Choice of Planning Views (3)VersionsStandard Distribution Key: Excerpt (6,7)Planning Statistical Key FiguresDetailed Planning and Base Unit CostingPlan Allocation Procedure 3.0CActivity Type PlanningActivity Price CalculationPlanning AidsTransfer of Plan ValuesCost Center Accounting Planning Summary (1)Cost Center Accoutning Planning Summary (2)

49. Activity-Based CostingProcess View versus Cost Center ViewActivity-Based Costing ModelPurposes and Goals of Activity-Based Costing



50. Internal Orders: Master Data and StructuresInternal OrdersAdvantages of Internal OrdersOrder Master RecordOrder Type FunctionsStatus Management for Internal Orders

Order GroupsOrder ListSubstitution Rules for OrdersInternal Order Master Data Summary

51. Internal Orders: Actual Postings and CommitmentsOrders: Flow of ValuesCommitments Management: OverviewReal vs. Statistical OrdersOverhead CostingSurchargesSettlement: Overview

Settlement Rules in the OrderSettlement with Source AssignmentHierarchical SettlementSettlement: Parameters in CustomizingSettlement StructureInvestment OrdersInternal Orders: Actual Postings Summary (1)Internal Orders: Actual Postings Summary (2)

52. Period Closing in Overhead Cost ControllingPeriod LockVariance CalculationVariance Categories: Input Side

Variance Categories: Output SideVariances: Input SideVariances: Output SideReconciliation Ledger / Reconciliation PostingsReconciliation Ledger / Reconciliation Reports / Cost AnalysReconciliation Ledger / Navigation ToolReconciliation Ledger StructureReconciliation PostingsReconciliation ReportsPeriod Closing Summary (1)Period Closing Summary (2)

53. Section: Cash ManagementOverview Cash Management (1)Overview Cash Management (2)Introduction to Cash ManagementProblems and ObjectivesProcedure for Day-to-Day PlanningIntegration: Cash Management PositionCash Management within the Treasury EnvironmentInstrumentsThe Terminology and Contents of PlanningSummary Cash Management



54. Cash Management PositionDisplaying the Cash Management PositionCash Management Position: Groups/LevelsRequirements: Bank Account StructureRequirement I: Bank-Related AccountingRequirement II: Bank Accounts

Requirement III: Planning LevelsCurrency DisplayFeatures: Cash Management PositionSummary Cash Management Position

55. Customizing the Cash Management PositionMaster Record: Planning LevelBank Account ConfigurationHouse BanksBank AccountsDocuments: Value DatePlanning Levels

Cash Management Account NameGrouping StructureThe Grouping FunctionsSummary Customizing the Cash Management Position

56. Cash ConcentrationCash Concentration: FeaturesCash Concentration: Cash ManagementCash Concentration: Posting Procedures (Example)Summary Cash Concentration

57. Customizing Cash ConcentrationCash Concentration - SpecificationsCash Concentration - Settings (Examples)Cash Concentration - CorrespondenceConfirmation: Address and Account No.Summary Customizing Cash Concentration

58. Manual PlanningManual Planning: Definition,Use,MaintenanceCreating Payment AdvicesEditing Payment AdvicesPayment Advice JournalSummary Manual Planning

59. Customizing Manual PlanningPlanning TypesArchive / Automatic ExpirationArchive: Retention PeriodSummary Customizing Manual Planning



60. Check DepositCheck Deposit: ProcedureAccount AssignmentCheck Deposit Transaction: Initial SpecificationsCheck Deposit Transaction: Entry Screen for ProcessingCheck Deposit List

Check Deposit Transaction: Posting/Printing/OverviewGenerating the PostingsSummary Check Deposit

61. Customizing Check DepositTransactions: Check DepositPosting and Account DeterminationSimulating the PostingsCreating Screen VariantsSummary Customizing Check Deposit

62. Bank Statement: Manual Entry

Manual Bank Statement: ProcedureEntering the Bank StatementProcessing the Bank Statement (1): Bank / Payment AdvicesProcessing the Bank Statement (2): Bank Document/SelectionProcessing the Bank Statement (3): Further ProcessingSummary Bank Statement: Manual Entry

63. Customizing the Manual Bank StatementTransactions: Manual Bank StatementPosting: Manual Bank StatementAccount Determination: Manual Bank StatementSummary Customizing the Manual Bank Statement

64. Bank Statement: Electronic EntryElectronic Bank Statement: Features (1)Electronic Bank Statement: Features (2)Electronic Bank Statement - New Formats SupportedInterpreting the Note to PayeeImporting the Electronic Bank StatementPrinting the Electronic Bank StatementPostprocessing the Electronic Bank StatementImportant NotesSummary Bank Statement: Electronic Entry

65. Customizing the Electronic Bank Statement

Transactions: Electronic Bank StatementAccount Determination: Electronic Bank StatementClearing Open ItemsSummary Customizing the Electronic Bank Statement



66. Liquidity ForecastIntegration: Liquidity ForecastRequirement I: Planning GroupsRequirement II: Master RecordLiquidity Forecast: Initial ScreenPayment History - Planning Date

Outstanding Checks and Bills of ExchangeIntegration: Payment Blocking IndicatorIntegration: Special TransactionsFeatures: Liquidity ForecastSummary Liquidity Forecast

67. Customizing the Liquidity ForecastMaster Data: Subledger AccountsPercentage DistributionPlanning Data: Manual DefinitionBlocked DocumentsIntegrating Special G/L Transactions

Integrating Orders and Purchase Orders: ProcedureIntegrating Orders and Purchase Orders: Subledger AccountsSummary Customizing the Liquidity Forecast

68. Customizing Data Transfer and ReorganizationData Transfer: Accounts with Open Items / without Open ItemsData SecurityTools: ReorganizationSummary Customizing Data Transfer and Reorganization

PAAC10PAAC10

SAP Partner AcademySAP Partner Academy



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Copyright

Copyright 1996 SAP AG . All rights reserved.

Neither this training manual nor an y part thereofmay be copied or reproduced in any form or by anymeans, or translated into another language, w ithoutthe prior consent of SAP AG. The informationcontained in this document is subject to change andsupplement without prior notice.

All rights reserved.

Trademarks

SAP and the SAP logo are registered trademarks of SAP AG.

MS-DOS, OS/2 and EXCEL are registered trademarks of Microsoft.

OS/2, CICS, MVS, ACF/VTAM, VSE, AIX, OS/400 and AS/400 are registered trademarks of IBM.

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UNIX is a registered trademark of AT&T.

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INFORMIX-OnLine and INFORMIX-ESQL/C are registered trademarks of the INFORMIXCorporation.



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Topics of PAAC10

Komplex Configuration & Organization in FinancialAccounting

Komplex Asset Management

Komplex Overhead Cost Controlling

Komplex Cash Management

Configuration and OrganisationConfiguration and Organisationin Financial Accountingin Financial Accounting





© SAP AG

Contents

Chapter 6 Customer Master Data

Chapter 7 Vendor Master Data

Chapter 1 Organizational Structures

Chapter 2 Basic Configuration

Chapter 3 Global Data in the Company Code

Chapter 4 G/L-Accounts

Chapter 5 Bank Master Data



© SAP AG

Contents

Chapter 14 Optional Functionalities

Chapter 15 Reporting

Chapter 16 Company-Specific Modifications

Chapter 17 Buchen mit Ausgleich

Chapter 8 Documents

Chapterl 9 Documents Controll

Chapter 10 Postings Transactions

Chapter 11 Konten/Einzelposten

Chapter 12 Foreign Currencies

Chapter 13 Erfassungshilfen



© SAP AG

Contents

Chapter 21 Automatic Payments -Configuration The PaymentProgram

Chapter 22 Sonderhauptbuch

Chapter 23 Individual Financial ClosingProcedure

Chapter 24 Closing Operations for PayrollAccounting

Chapter 18 Automatic Dunning - OperationgThe Dunning Program

Chapter 19 Automatic Dunning - DunningProgramm Configuration

Chapter 20 Automatic Payments - OperatingThe Payment Program



© SAP AG

Contents

Chapter 29 Closing Procedures for FinancialAccounting

Chapter 30 Closing Procedures for thePreparation for Consolidation

Chapter 31 Integrated Procedure for IndividualFinancial Closing

Chapter 32 Finanzkalender

Chapter 33 Produktivstart

Chapter 25 Closing Operations for AccountsReceivable and Payable

Chapter 26 Closing Operations in InventoryAccounting

Chapter 27 Closing Operations in Controllingand in the Projects System

Chapter 28 Closing Operations in AssetAccounting



© SAP AG

Contents

Chapter 34 Standard Texts And Forms

Chapter 35 Correspondence and Interest Calculation

Chapter 36 Appendix 1: Overview Consolidation

Anhang 2: Integration

Anhang 3: Kreditmanagement



© SAP AG

Chapter Organizational Structures in FinancialAccounting



© SAP AG

Clients In The SAP System

Delivery client

Production client

Test client

Training client

Client: Each client is its own self-enclosed technical entity. General data and tables which are used

by multiple organizational structures are usually stored at this level. Data records carry a client key.There are only a few client-independent tables (item sorting, for example). A user master record mustbe created for each user in the client in which he/she will be working. Access authorization is createdseparately for each client.

Delivery system: The SAP system is delivered with clients 000 and 001. These clients containsettings which you can use as a basis for your own company-specific configurations.

Productive client: The productive client contains company-specific tables, master data and

transaction data for your current business activities.

Test client: You usually perform customizing and testing of old data transferred from other systems inthis client. It will be used later for testing business processes during release updates.

Training client: The training client can be a copy of the test or the productive client, and is used forinternal training. This client is optional.



© SAP AG

Organizational Structure 1Organizational Structure 1

Financial Accounting Enterprise View

Client

Chart of accounts

Business area

1000

GKR CAUS

001

2000 Make-to-order prdn.5000 Repetitive

production

2000 Make-to-order prdn.5000 Repetitive

production

3000Company code

Client: A client is a purely technical entity, it cannot have any actual business-related meaning.

Chart of Accounts: Each company code in the SAP system uses G/L accounts from exactly onechart of accounts. G/L accounts are uniquely defined within a chart of accounts. You can freelydefine IDs for charts of accounts.

Examples for Germany are IKR and GKR

Company Code: In accounting, business transactions are usually entered, stored, further processedand accounts are managed at the company code level. You can set up several company codes foreach client in order to manage the accounting for multiple independent companies simultaneously.You must set up at least one company code.

Business area: The business area represents an organizational unit for which you can set up an

internal reporting structure. There can be several business areas in a company code, which mayperhaps even exist in other company codes. Therefore, business areas must have the samesignificance in all company codes. The use of this organizational unit is optional. You would usebusiness areas if you wanted to generate a balance sheet and income statement not only for companycodes, but also for additional internal areas.



© SAP AG

G/L account

CoCd segment

Organizational Structure 2Enterprise view: Required reporting for clients with multiple charts of

accounts - option 1

Client

Ch. of accounts

Group ch/accts

Acct no. inAcct no. in

GKRGKRAcct no. inAcct no. in

CAGBCAGBAcct no. inAcct no. in

CAUSCAUS

Company code

G/L account

ch/acct segment

001

GKR CAGB CAUS

INT INT INT

20001000 3000

Groupacct no.

Groupacct no.

Groupacct no.

- - - - - - - - -

Client: Each client is its own self-enclosed technical entity. General data and tables which are used

by multiple organizational structures are usually stored at this level. Data records carry a client key.There are only a few client-independent tables (item sorting, for example). A user master record mustbe created for each user in the client in which he/she will be working. Access authorization is createdseparately for each client.

Delivery system: The SAP system is delivered with clients 000 and 001. These clients containsettings which you can use as a basis for your own company-specific configurations.

Productive client: The productive client contains company-specific tables, master data and

transaction data for your current business activities.

Test client: You usually perform customizing and testing of old data transferred from other systems inthis client. It will be used later for testing business processes during release updates.

Training client: The training client can be a copy of the test or the productive client, and is used forinternal training. This client is optional.



© SAP AG

Organizational Structure 2Enterprise view: Required reporting in clients with multiple charts of

accounts - option 2

Client 001

Company code

Account no.Account no.

ch/accts INTch/accts INT

INT

20001000 3000

CAGBGKR CAUSCountry ch/acts.

Alternative

account no.

Alternative

account no.

Alternative

account no.

Chart of accounts

G/L account ch/accts segm ent

G/L account

CoCd segment

- - -

Client: A client is a technical entity. You determine which structural units will belong to a company

code.

Chart of Accounts: Company codes work with a chart of accounts, so that a unified cost accountingprocess can be carried out.

Company Code: Company codes require evaluations based on other charts of accounts. You canallocate a country-specific chart of accounts to each company code.In the “ Alternative account number ” field, account numbers are stored by each company code, basedon its country chart of accounts.

When generating country-specific balance sheets, set the “ Alternative account number ” flag.



© SAP AG

Organizational Structure 2

Chart of accounts CAGBChart of accounts CAGB Chart of accounts XYZChart of accounts XYZ

SAPSAPSAP outside SAPoutside SAPClient 001Client 001

Chart of accounts GKRChart of accounts GKR

Bus.organizationBus.organizationCompany codeCompany code

10001000Company codeCompany code

20002000

CompanyCompany C00002C00002



FS chart of accountsFS chart of accounts

GroupGroup

Consolidation Enterprise ViewConso lidation Enterprise View

Company: a company in FI-LC usually represents an independent accounting unit. Every company

code is allocated a single company only.Companies in FI-LC can represent company codes from various systems (or clients) or evenorganizational units from external systems.Caution: company numbers are 6-character alphanumeric numbers. However, if you have companiesin your group that still work with the R/2 system or dBase PC data entry, you must only assign 4-character company numbers.

FS chart of accounts: in contrast to the financial accounting module, which uses G/L accounts,consolidation uses consolidation items.The information from several G/L accounts may be grouped together to form a consolidation item.

G/L accounts are assigned to consolidation items, both during realtime updates and rollup, on thebasis of the group account number entered in each G/L account, which in each case is matched to aconsolidation item.

If data is entered into the consolidation module by periodic extract, the G/L accounts are assigned tothe consolidation items via a financial statement version whose items correspond to the consolidationitems.



© SAP AG

1000

DEM


Financial Accounting/Sales Enterprise View

Client

1100

DEM

3000

USD

3100

USD

1200

DEM

V003Sales organization

Credit control area

Company code

001

3000 USD1000 DEM

V001 V002 V004 V005

Client: The client is a technical entity containing data which can be used by multiple company codes.

Customer master records are subdivided into general and company code-specific data. General data isvalid for all company codes in the client.

Credit control area: Any company code in the SAP system can be allocated to a credit control areain the same local currency. At this organizational level, you can check receivables due from acustomer in multiple company codes against the customer’s established credit limit.

Company code: Accounts are generally entered, stored, processed and managed at the company codelevel in the SAP accounting system.

Sales Organization: The sales organization is the selling entity in the legal sense. Businesstransactions are carried out within a sales organization. A sales organization is allocated to a companycode. You can sell goods and services from multiple plants.



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Financial Accounting/Purchasing Enterprise View

Client 001

Company code 1000 2000

E003E002

Purchasing

organization

E004

E001

Client: A client is a self-enclosed technical entity.

Company Code: Business transactions are entered, stored and processed at the company code level.

Purchasing Organization: Materials and services are created, and conditions of purchase arenegotiated at this organizational level. A purchasing organization can supply multiple plants, and aplant can be supplied by multiple purchasing organizations. The purchasing organizations should beassigned to a company code for legal purposes. If this allocation is not defined in Customizing, youwill have to enter the appropriate company code for each document.



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Asset Accounting Enterprise View

1 AT

001

1 DE

1000 12001100 AT01 AT02

Client

Company code

Chart of depreciation

Client: A client is a self-enclosed, technical entity. General data and tables which are used by

multiple organizational structures are stored at this level.

Chart of Depreciation: This chart is a directory of depreciation areas generated from a businessperspective. The charts delivered with the SAP system include country-specific depreciationregulations (i.e. depreciation keys). For this reason, all company codes within a certain country willgenerally use the same chart of depreciation.

Company Code: Business transactions from Asset Accounting are also usually entered, stored andevaluated at this level.



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Cost Accou nting Enterprise View

Client

Chart of accounts

Controlling area

Company code

1000 USA1

GKR CAUS

0001

1000 1100 1200 3000

Client: A client is a self-enclosed, technical entity, often having no business-related significance.

Chart of Accounts: Each company code in the SAP system uses G/L accounts from exactly one chartof accounts. G/L accounts are unique within a chart of accounts. You can freely define IDs for chartsof accounts.Examples for Germany are IKR, GKR

Controlling Area: You can carry out complete and self-enclosed cost accounting within a controllingarea. There usually exists a 1:1 relationship between controlling area and company code. You canallocate multiple company codes to a controlling area for intercompany cost accounting purposes.

Company Code: In the accounting system, business processes are usually entered, stored, processed,and accounts are managed at the company code level. You can set up multiple company codes foreach client so that several independent firms can be simultaneously managed in the accountingsystem.



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Summary: Organizational Structures

The delivery client is copied to a test client. This is wherethe configuration settings are made and the businessprocesses and transferred legacy data are tested. Thefinal settings are then transported into the productionclient.

The system contains several organizational units whichyou can use to represent the organizational structure ofyour business. The reports that you want to make or arerequired to make determine the structure of theorganizational hierarchy in the SAP system.

If you are running several integrated SAP modulestogether, you m ust remember to take accoun t of the

requirements of other areas.

© SAP AG

Chapter Basic Configuration





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Configuration Project Steps

II

IIII

IIIIII

Determine theDetermine the

organizational structureorganizational structure

Adapt to accommodateAdapt to accommodate

company-specificcompany-specific

featuresfeatures

Enhance andEnhance and

modify with extramodify with extra

functionalityfunctionality

You can mold the SAP R/3 standard software into a form which is uniquely specific to your

enterprise, using a multitude of table and customizing entries. Which entries you will make dependsentirely on your company’s specific needs. Some entries are country-dependent and affect allindustries and/or countries. You do not need to make these entries yourself.

The more your requirements vary from the standard system configuration, the greater yourimplementation efforts will be prior to productive startup.

I ) You receive a standard configuration from SAP. You then make company-specific adaptationswhich contain data for your own enterprise.

II ) You change and enhance some settings by using default values supplied by SAP.

III ) You require comprehensive adaptations and enhancements and use other functions of the R/3system.

This course deals mainly with topics listed under I ). Adaptations for points II ) and III ) are coveredin project work.



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Breakdown Of Configuration Levels

Global Settings

Organizational Structure

AccountingAccounting HRHR

Central Functions

Basis

LogisticsLogistics

Global settings are preconfigured to fit country-dependent general data by SAP. You do not need to

modify them. You only need to change the countries table if you have business relationships withcountries which are not included in the standard system.

You define organizational structures based on the legal and business climate in which your firmoperates. This is where you make organizational decisions which are also required in otherapplications, such as Cost Accounting, Sales & Distribution, Materials Management, etc.

Project members in the Logistics, Accounting and Human Resources departments will carry out thecustomizing activities for those individual applications affecting their areas. For example, if you areimplementing SAP R/3 Logistics and Accounting modules, some common decision-making betweenareas must take place in order to make certain settings.

Central functions are not designated as country-dependent and can be used by multiple applications.

Example Authorization concept, Hypertext, Office Communication

Basis settings affect users, hardware components and the software setup.



© SAP AG

FI Configuration - What To Do (1)

Maintain global parameters for com pany code

Create/copy/change company code

Maintain company-specific entries

Check/complete global settings

The countries table belongs to Global Settings. It contains general country data

i.e. ISO code for country and currency

and field parameters, for which formal validations are carried out

i.e. postal code lengths, bank number lengths, VAT registration number check digits.

Therefore, you only have to maintain the countries table if legal changes have taken place affectingdata stored there. You must add to the table if new countries are formed, if you intend to havebusiness relationships with companies from those new countries.



© SAP AG


Create and save transport requestCreate and save transport request

Transport request allocated a num ber by systemTransport request allocated a num ber by system

Transport request releasedTransport request released

Process proposal listProcess proposal list

Copy company codeCopy company code

Copying a company code:

You can start the copy transaction immediately if you want to copy a company code which matches

the company code template in terms of country, currency and language.

If you do not have an appropriate copying template, create an entry using the Customizing menu forthe new company code è Corporate structure è Def. Financial Accounting è Create company code.Then, start the copy transaction.

Caution: If currencies are different, number values will not be converted when transferred!

You can find further information on adjustments and transports in the Basis Online Documentationunder the topic “BC Workbench Organizer”.



© SAP AG

R

FI Customizing Copy Functions

Chart of accountsChart of accounts 100 %100 %to another chart ofto another chart ofaccountsaccounts

Company codeCompany code100 %100 %

or lessor less

to another companyto another companycodecode

Compare companyCompare companycodescodes

selectiveselective between one or morebetween one or morecompany codescompany codes

Copy according toCopy according toreferencereference

selectiveselective in the same o rin the same ordifferent companydifferent companycodecode

The copying function duplicates data within a client The functions illustrated above can:

Copy a chart of accounts: Create accounts in a chart of accountsTake over account determinationFinancial statement/P&L version

-> see “G/L Accounts” unit. Copy a company code: Set up a new company code that is 100% (or less)

identical to the reference company code-> see following pages and “G/L Accounts” unit.

Compare company codes: Data distribution up to 3.0B; beginning with 3.0C, in the menufor customers, vendors, and G/L accounts each under “Master data

You create company code segments for selected accounts and

company codes. Copy according to reference: You set up new general ledger accounts.

-> see “G/L Accounts” unit.



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Transport functions:

100 %100 % into another clientinto another client

Company codeCompany code 100 %100 % into another clientinto another client

Chart of accountsChart of accounts

050050 001001

The transport function allows duplication of data in other clients. This is how table entries are

transported from the test client (050) to the productive client (001) after a comprehensive test duringrelease upgrades.



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Allocate organizational units

Define organizational units



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Summary: Basic Configuration

You can tailor the scope of the the project work to meetyour requirements. Create your own p roject guide,containing a ll the ‘critical activities’ and the ‘optionalactivities’. Then check which extra functionality you wantto use.

First assign names to your organizational units, thenallocate them .

Check the global settings and add any nec essary settings.

Use the cop ying and transport functions to c onfigure yoursystem.

© SAP AG

Chapter Global Data In The Company Code





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Minimum entries

Organization Of Accounting

Chart of accountsChart of accounts INTINT CAUSCAUS

Fiscal year variantFiscal year variant K4K4 K4K4

Production com pany codeProduction com pany code XX

You have the capability to mold the SAP standard software to fit your company, using a variety of

table and customizing entries. You make these entries according to your company’s own requirements.Some entries are country-dependent and are applicable for all industries and/or companies in thosecountries. You do not need to make these entries yourself.

You should not enter the “X” for the ‘Company code is productive’ flag until you are ready to startrunning your business with the SAP R/3 system.



© SAP AG

Minimum entries

Procedural Parameters

Field status variantField status variant 00010001 00010001

Var.posting periodsVar.posting periods 00010001 00010001

Maximum exch./rate diff.Maximum exch./rate diff. 10 %10 % 5 %5 %

A field status variant is a combination of several field status groups. The field status group defines

which fields will be ready for input during document entry. A field status variant is assigned to eachcompany code.

Posting periods variant

Maximum difference between exchange rates



© SAP AG

Minimum required entries

Address

Title

Name

Street

City

Country

Tel.no.

Fax

US A

Search term

Postal code

Language E

Optional entries are:

Sort.Field Sorting field Field for an additional search term

P.O. BOX P.O. Box Post office box number

Pcode Postal code for the P.O. Box if you enter a P.O.Box number, you must enterthe postal code here

Region Region user-defined, from a tableUS = StatesD = BundesländerCH = CantonsF = Departments

Teletex Teletex numberTelex Telex address



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Additional Specifications

Z5A Description of industry

Z5A: Acct.clerk and tel.no.

Z5A: (six-character) Reporting no.

Z5A: Federal state number

Z5A: Address of reporting comp.

Minimum Entries

Here you enter company-specific data for reporting required by foreign trade law.

(Form Z5A).You can obtain your data from previously issued official documents.



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Summary: Global Data In TheCompany Code

You are now acquainted with the minimum com pany-specific entries you need to m ake for a company code .

You m ake any other specifications in the appropriateconfiguration men u for the function in question. Youusually make such s pecifications for each company cod e.

Some functions allow you to use another company codeas a reference for copying. You can copy the extraspecifications to other company codes us ing the copyfunction.

© SAP AG XXYYY / 22 - 1

R

Chapter General Ledger Accounts





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Accounting Master Data

Vendors

Customers

BanksG/L accounts

Master data in Financial Accounting consists of the G/L accounts, the bank directory and the vendor

and customer addresses.

G/L accounts in centrally organized companies can be identical across several company codes. If some of the company codes are in different countries, you have the option of entering an alternativeG/L account number in each country’s chart of accounts.

The bank directory is imported into the R/3 system and is available for all company codes.

Each vendor and customer has a unique subledger account within a client. You can set up control of these subledger accounts differently in each of your company codes.

Example: Company code 0001 allows a customer (customer account 100000, IDES INC. ) a longercash

discount period than the same customer in company code 0002.Subledger account 100000 and the address are identical in both company codes, however

the terms of payment keys are different.



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Chart of actsINT

Maint.language:D

Alternative langs:EFIKN

Group ch./accounts(optional)

Length ofG/L account number:

6

VendorsVendors

CustomersCustomers

BanksBanksG/L accounts


IKRIKR

Chart of accountsGKR

The chart of accounts is a user-defined one- to four-digit code which also contains information about

the length of the G/L account numbers. There are country-dependent charts of accounts in clients000 and 001 which you can use.

Recommendation: If you are use the GKR or IKR charts for German company codes, the G/Laccounts already contain the required settings for an integrated organizational solution.

You can enter account names manually during installation or at a later date.

You define the languages in which the G/L account names should be translated in the chart of accounts. The name is displayed in the language in which you logged on to the system.



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G/L Account Master Record

Company code data

Ch./accounts

G/L accountG/L account

Kontenplan

Sachkontenlangtext

CurrencyCurrency

Tax categoryTax category

Reconciliation accountReconciliation account

Open item managementOpen item management

Line item displayLine item display

............

Domestic customer receivables

Dom.cust.recvables

140000

INT

G/L account master records are composed of two areas:

a chart of accounts area

a company code-specific area.

The chart of accounts area shows the specifications which contain cross-company code functions. Thecompany code-specific area contains those pieces of information which can be formatted differentlyin different company codes.

You always enter the chart of accounts area first when creating an account. Then you can enter the

company code-specific area. You can create a G/L account in one step using the ‘Create in companycode’ function, or with the following 2 steps - 1. Create in chart of accounts, 2. Create in companycode.

You do not need to enter the company code-specific data for a G/L account if it is not needed in aparticular company code.



© SAP AG


AS Fixed assets

CASH Current assets/liabilities acts

GL General G/L accounts

MAT Material stock accounts

PL Revenue accounts


Chart of

account

INT

The Financial Accounting component offers a wide range of fields in the G/L account master record

in which you can store company-specific data. You can suppress fields you do not require in order togive your screen a cleaner appearance. You can configure other fields in such a way that a user entryis required in order to proceed. You can control these company-specific settings via the accountgroup.

There are preconfigured account groups in clients 000 and 001 which you can use.

When creating a new account, you are asked to enter the account group. This means that you willrequire at least one account group. If you will not be using the account groups to distinguish multiple

number ranges or formats, you can define an account group in Customizing in which all fields of theG/L account master record are ready for input.



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Account groupsAccount groups


CASH Curr.as/li.actsControlControl

CurrencyCurrency requiredrequiredRecon.acctRecon.acct suppresssuppress

Bank detailsBank detailsHouse bankHouse bank optionaloptionalAccount IDAccount ID optionaloptional

The account group represents a number of G/L accounts, which can be grouped by functional areas,

for example. All cash-related or bank G/L accounts have the same fields in the master records, forexample bank details. These bank details fields are not required for G/L accounts pertaining to assetaccounting and can be suppressed in that account group.

Asset portfolio G/L accounts are set up as reconciliation accounts in Financial Accounting, where FIis integrated with Asset Accounting. The field status in this account group must be set for either“optional entry” or “required entry” so that a valid value can be entered in the G/L account masterrecord.



© SAP AG

ControlControlCurrencyCurrency requiredrequiredRecon.accountRecon.account suppresssuppress

Bank detailsBank detailsHouse bankHouse bank optionaloptionalAccount IDAccount ID optionaloptional


The G/L account field m ustcontain a valid value

The field is not displayed inthe G/L account

The field is displayed in the

G/L account and can containa value (optionally)

Account groups

You can assign one of four different field statuses to a field:

suppress

required entry

optional entry

display.

If a field has “required entry” status, a question mark appears at the beginning of the field wheneveryou create or change a G/L account. You must make a valid entry in this field. Certain fields onlyallow entries taken directly from a table containing country or company-dependent data. If entries

made for a field are checked against a table, you can always use the F4 key to check the list of possible entries.

If the status “display” was assigned, the field name is displayed in the G/L account master record.However, you cannot enter a value in the field. You can use this status for fields which were set as“optional entry” in a previous step and for which data was then input, so that in later steps the fieldwill be protected from change, although the original entry will still be visible on the user’s screen.

You can always change a field’s status. These changes will then have immediate effect when youcreate or change an account.



© SAP AG


Posting document

Amount 100.00Tax amount 15.00Tax key V1

Posting document

Amount 100.00

Field control:

Optional

G/L account: 300000Chart of accts: IN TName: Raw mat.Tax category: V1

Chart of accounts:

Field control:

Suppress

Chart of accounts:

G /L accoun t: 113160Chart of accts: INTName: US dollar account

If the “suppress” status was selected, the field will not be displayed for any G/L accounts in the

account group, and is therefore also not available for data input

If you specify that a field inn a master record should be suppressed for an account group, this willhave an effect on your control of the document entry process.

Fields with “optional entry” status are available for data input whenever you create or change a G/Laccount. Some fields only allow entries taken from a table containing company or country-specificdata. When you make an entry in one of these fields, the value entered will be checked against thetable. In such cases, you can always make use of the F4 key to display possible entries onscreen.

Data input in these fields is optional. You can also input data here at a later point in time whenworking in change mode.



© SAP AG

Summary: General Ledger Accounts

Delivery clients contain country-specific charts ofaccounts that you can use as a reference to set up yourown charts of accounts.

You determine via the account group w hich fields in theG/L account master record wil be displayed (and whichfields require an entry). You can usually copy theseconfiguration settings without changing them.

When y ou create G/L accounts, the contents of the‘optional’ and ‘required entry’ fields are checked againstthe configuration entries you m ade for your company.

© SAP AG

Chapter Bank Master Data





© SAP AG

House Bank Master Data

Import the banknumbers

Define housebanks

VendorsVendors

CustomersCustomers

G/LG/L

accountsaccounts Banks

Bank detailsCustomersVendors

You must create master data for those banks

that are your house banks and

that are the house banks of your customers and vendors.



© SAP AG


BankBank

detailsdetails

Batch input:automatic copying

Create sub-leger accounts:bank details

One-time account document entry:bank details

Create bank details:manual entry

The bank directory is stored in table BNKA.

You can enter bank data into the directory in various ways:

using the appropriate SAP program RFBVD__1 for GermanyRFBVIT_0 for ItalyRFBVCH_0 for Switzerland

importing a disk from your house bank which contains the current bank numbers

via the bank details fields when creating customer or vendor master records

via the bank details fields in documents when posting one-time transactions

via the transaction for creating banks.

When you enter bank details, the system uses the field checks from the country-specific table.



© SAP AG


BankBank

detailsdetails

House bkHouse bk

CtryCtry

Bank keyBank key

CITBACITBA USUS 672 700 00672 700 00

WACHOWACHO USUS 672 800 00672 800 00

House bank data:USUS 672 700 00

AddressBankRegion

StreetCity

Control data

For each of your company codes you enter the company-specific names of your house banks under a

user-defined key term. This bank ID can be alphanumeric:

Example: Citibank CITBAWachovia WACHOBank of America BOAWells Fargo WELLSFirst Union UNION

You use these IDs as control parameters for the payment program.



© SAP AG

House bkHouse bk CtryCtry Bank keyBank key

CITBACITBA USUS 672 700 00672 700 00

WACHOWACHO USUS 672 800 00672 800 00


Bank accountsBank accounts Acct IDAcct ID

Deposit accountDeposit account GIRO1GIRO1

Credit account 1Credit account 1 GIRO2GIRO2

Dollar accountDollar account USD1USD1

Postal check accountPostal check account POSTPOST

oror120 34 56 78120 34 56 78 56785678

26 83 17-60026 83 17-600 P600P600

House bank data:USUS 600 300 10

AddressBankRegionStreetCity

Control data

For each company code you enter the company-specific bank accounts you have created for each of

your house banks in the system under a user-defined key term. This account ID is unique percompany code and house bank. It can be alphanumeric:

Example:

Checking account 1 GIRO1Checking account 2 GIRO2Foreign exchange account 1 DEVI

You use these Ids as control parameters for running the payment program.

You must create a G/L account master record for every bank account. You then define the key termsfor the house bank and the account ID in this G/L bank account.

If you manage accounts in foreign currency, the currency key in the G/L account master must beidentical to the currency of the foreign exchange account.



© SAP AG


Creating House Banks/Bank Accounts - Bank Account Da ta

Ch./accountsINT

Company code 0001

House bank CITBA

Account ID GIRO1

Bank country US

Bank key 672 700 00

Bank account data

Bank accnt 12345678

Currency USD

The link between the G/L account and the actual bank account is made by the house bank

specifications and the account ID.

However, in the standard FI module, these specifications are merely informative and have no otherfunction.

To control the payment program you must define both the SAP G/L account and the account ID foryour bank account at your house bank in the account determination table(see chapter “Configuration Of The Payment Program”)



© SAP AG

R

Summary: Bank Master Data

The banks you want to use for your financial transactionsare defined as house banks in the SAP system. Thespecifications made for them in the system e ffect theautomatic payment function.

There are several ways to set up the bank directory.

© SAP AG

Chapter Customer Master Data





© SAP AG

VendorsVendors


G/L accountsG/L accountsBanksBanks

Customers

Customer accounts are managed in sub-ledger accounting. This is linked to general ledger accounting

via the reconciliation account (G/L receivables account).

You enter important information and control data in the customer master records:

Address

Reconciliation account

Terms of payment

Correspondence data.

You can change or supplement the master data at any time.



© SAP AG

Reconciliation acctReconciliation a cct nnnnnnnnnnnn

Payment termsPayment terms ZB01ZB01

Item sortingItem sorting 00050005

Dunning procedureDunning procedure 00010001

::

Reconciliation acctReconciliation acct nnnnnnnnnnnn


Item sortingItem sorting 00010001

Dunning procedureDunning procedure 00020002

::

Name 1Name 1Name 2Name 2AddressAddress

Tel.no.Tel.no.

US 500 500 10 123 456 78US 500 500 10 123 456 78

Customer Master Record

Client General data

Bank details

Company code

00010001 00030003

Company code data Company code data

When creating a customer master record you enter

the general data at client level

the company code data for each company code.

The client-level data is available for every company code. The sub-ledger account number is alsoassigned at this level. This means that a customer has the same unique customer number in allcompany codes.

Recommendation: Before you create a new master record, you should check thoroughly (usingseveral

matchcodes) that this customer does not already exist in the system. Use severaldifferent search terms (postal code, city, parts of the name of the customer).

The information on the customer may be different in several company codes. When creating a newmaster record, you can use an already-defined master record as a reference to speed up the data entry.



© SAP AG


Reconciliation a cctReconciliation a cct nnnnnnnnnnnn

Terms of paymentTerms of payment ZB01ZB01

Item sorting methodItem sorting method 00050005Dunning procedure 0001:


Terms of paymentTerms of payment ZB20ZB20

Item sorting methodItem sorting method 00010001Dunning procedure 0002

::

. . .. . .

Trading partner C00001Trading partner C00001

US 500 500 10 123 456 78US 500 500 10 123 456 78

Client General data

Bank details

Company codes

00010001 00030003


Control

Customers and vendors who represent affiliated companies are flagged with the respective company

ID. This is done by maintaining the company ID within the account control. This way a link betweencustomers or vendors and the company is established.

Affiliated companies are given their own reconciliation accounts. This means that it is not necessaryto create an individual sales revenue account for each affiliated customer. Elimination withinconsolidation is carried out via the trading partner who is entered in the document.

The company must have been created as an internal trading partner.



© SAP AG



Item sortingItem sorting 00050005••

••

Sales districtSales district NORD001NORD001

Sales officeSales office B001B001

Price groupPrice group 0101••

••


General data

Bank details


Accounting Sales

General

Client

Company code 0001

If you use the Accounting module as a stand-alone application, you must enter all the data necessary to

process business transactions in financial accounting.

If you use the Accounting module together with the Sales and Distribution module, you can use morefields. You can also access the information in these Sales and Distribution fields from the FinancialAccounting module.

You must enter more data in order to be able to run evaluations in Cash Management.



© SAP AG


AccountingFinancial accounting

Accounts receivableMaster records

Create

==

LogisticsSales

Master recordsCustomer

Create==

A c c o u n t i n

g

S a

l e s

Company code data

Sales

Company code data

If you use both the Accounting module and the Sales and Distribution module in a fully integrated

system, you can use more fields in the master record. These fields contain information and controldata that is needed to process business transactions in the sales and distribution area.

The fields in the customer master record are divided between the accounting and sales areas. Addressdata, such as

Name

Address

Language indicator

Telephone / Fax

are used by both areas.

You can specify which of these fields are required entry or optional entry fields and which aresuppressed from display altogether when you define the field status groups.

Recommendation: Define compulsory rules for the address format that are acceptable in bothaccounting and sales.



© SAP AG


Financial accountingAccounts receivableMaster recordsCreate centrally

= AccountingCompany code data

Sales

Company code data

Accounting

+

You can access the information entered in the sales area from the financial accounting area. Using the

“central” customer master data transaction, you can create, change and display sales data in this way.

Recommendation: When configuring key terms within customizing, be sure to selectwidely-known company-specific names or abbreviations that are easy tointerpret.

When defining such key terms and specifying number ranges it is advisable to first consult otherdepartments in your organization which will be affected by these specifications.



© SAP AG

Customer Master Records

AssignmtAccountgroup

Interval Scrn layoutAccount no.

Master Data - Account Group

Domesticcustomers

DEBIDEBI numerical10,000-

49,999internal

TitleTitle

NameName

Customersabroad

DEBADEBA numerical50,000-

89,999internal

TitleTitleNameNameIncotermsIncoterms

Affiliated VERBVERB alphanumeric A - Z external NameName

One-time CP DCPD numerical 90,000 internal

TitleTitleNameNameAddressAddress

The account group is a set of characteristics that control the management of master records.

You can define several account groups for the account type “customer”. The criteria for creatingaccount types are

number range

field status for the master data.

When you create a master record, you must specify an account group.

You can create a ‘one-time’ account group for customers who are not likely to buy goods/servicesfrom you more than once. This account group may have the same field status groups as anotheraccount group. The main difference, however, is that the address has to be entered in the documentitself (not usually the case). All that you require is a sub-ledger account for the ‘one-time’ customermaster record.



© SAP AG

Number Ranges

01 0000010000 0000049999 0

03 0000090000 0000090000 0

02 0000050000 0000089999 X

Define 1st Interval

No. From num ber To num ber Current no. Extern.

04 A1 ZZ X

2nd allocation: number range interval to accountgroup

DEBI Domestic customers

VERB Affiliated companies

01

04

The sub-ledger account number (customer number) can be up to ten characters long. It may contain

both digits and letters. Any characters you do not use are filled with leading zeroes. You do not haveto enter these zeroes, however, when entering this number anywhere else as a selection criterion.

You can define several intervals. These must not overlap - if you define overlapping intervals thesystem issues an error message.

If you are working with external number assignment the system checks whether the customer numberyou have entered has not already been used. The system does not, however, check whether anynumbers in the range have been missed out. The “number status” field does not contain any

information on the last number assigned.Recommendation: The most efficient way to create master records is to work with numberranges that use internal assignment.



© SAP AG

Summ ary: Customer Master Data

The customer m aster record consists of a heade r portion,which contains the data and control information valid forall company codes, and a comp any code-specific portion,which can contain whatever information you require foreach company code.

You control which fields in the customer m aster recordare displayed (or which ones require an entry from theuser) using the account group. You can generally copysuch configuration settings from the SA P standardsystem without changing them.

When a user creates a G/L account, the contents of the“optional” and the “required entry” fields are checked

against the configuration settings you made in yoursystem.

The num ber ranges contain the number range interval andthe number assignment method.

© SAP AG

Chapter Vendor Master Data





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CustomersCustomers

G/L accountsG/L accountsBanksBanks

Vendors

Vendor accounts are managed in sub-ledger accounting. This is linked to general ledger accounting

via the reconciliation account (G/L payables account).

You enter important information and control data in the vendor master records:

Address


Terms of payment

Bank details

Correspondence data

You can change or supplement the master data at any time.



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Reconciliation a cctReconciliation a cct nnnnnnnnnnnn

Payment termsPayment terms ZB01ZB01Item sortingItem sorting 00050005


Payment termsPayment terms ZB20ZB20Item sortingItem sorting 00010001

Name 1Name 1Name 2Name 2AddressAddress

Tel.no.Tel.no.

US 500 500 10 123 456 78US 500 500 10 123 456 78

Vendor Master Record

Client

Company code

10001000 11001100

General data

Bank details


When creating a vendor master record you enter

the general data at client level

the company code data for each company code.

The client-level data is available for every company code. The sub-ledger account number is alsoassigned at this level. This means that a vendor has the same unique vendor number in all companycodes.

Recommendation: Before you create a new master record, you should check thoroughly (using

several matchcodes) that this vendor does not already exist in the system. Use severaldifferent

search terms (postal code, city, parts of the name of the vendor).

The information on the vendor may be different in several different company codes. When creating anew master record, you can use an already-defined master record as a reference to speed up the dataentry.



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Item sorting methodItem sorting method 00050005••

••

Purchase order curr.Purchase order curr. US DUSD

Minimum order valueMinimum order value 1,000.001,000.00

SalespersonSalesperson Mr.WestMr.WestTelephone numberTelephone number 06122/34-006122/34-0

••

••


Accounting Purchasing

General

Client General data

Bank details


Compan y code 0001

If you use the Accounting module as a stand-alone application, you must enter all the data necessary

to process business transactions in financial accounting.

If you use the Accounting module together with the Purchasing module, you can use more fields. Youcan also access the information in these Purchasing fields from the Financial Accounting module.

You must enter more data in order to be able to run evaluations in Cash Management.

Vendors who do not actually ship goods but who are paid with the automatic payment process onlyrequire the accounting data.

EXAMPLES: Civil authorities, health insurance companies, general insurance companies,service companies and employees (settlement of travel expenses).



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Accounting

Purchasing


AccountingVendors

Master dataCreate

==

Materials managem entPurchasing

Master dataVendor

Create==

A c c o u n t i n

g

P u r c h

a s i n g

Company code data

Company code data

If you use both the Accounting module and the Purchasing module in a fully integrated system, you

can use more fields in the master record. These fields contain information and control data that isneeded to process business transactions in the materials management area.

The fields in the vendor master record are divided between the accounting and purchasing areas.Address data, such as

Name

Address

Language indicator

Telephone / Faxare used by both areas.

You can specify which of these fields are required entry or optional entry fields and which aresuppressed from display altogether when you define the field status groups.

Recommendation: Define compulsory rules for the address format that are acceptable inboth

accounting and purchasing.



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Vendor master records

AssignmtAccount

groupInterval Scr.layoutAccount no.

Master Data - Account Group

Domesticvendors

KREDKRED numerical internalTitleTitle

NameName

Vendorsabroad

KREAKREA numerical50,000-

89,999internal

TitleTitleNameNameIncotermsIncoterms

Affiliated VERBVERB alphanumeric A - Z external NameName

One-time CP DCPD numerical 90,000 internal

TitleTitleNameNameAddressAddress

10,000-

49,999

The account group is a set of characteristics that control the management of master records.

You can define several account groups for the account type ‘vendor’. The criteria for creating accounttypes are

number range

field status for the master data

When you create a master record, you must specify an account group.

You can create a ‘one-time’ account group for vendors who are not likely to supply you withgoods/services more than once. This account group may have the same field status groups as anotheraccount group. The main difference, however, is that the address has to be entered in the documentitself (not usually the case). All that you require is a sub-ledger account for the ‘one-time’ vendormaster record.



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Number Ranges

01 0000010000 0000049999 0

03 0000090000 0000090000 0

02 0000050000 0000089999 X

Define 1st interval

No. From no. To number Current no. Extern

04 A1 ZZ X

2nd allocation: number range interval to accountgroup

KRED Domestic vendors

VERB Affiliated companies

01

04

The sub-ledger account number (vendor number) can be up to ten characters long. It may contain

both digits and letters. Any characters you do not use are filled with leading zeroes. You do not haveto enter these zeroes, however, when entering this number anywhere else as a selection criterion.

You can define several intervals. These must not overlap - if you define overlapping intervals thesystem issues an error message.

For numerical intervals you can specify whether the numbers are assigned externally or internallywhen you create a master record. Internal number assignment means that the numbers are assigned bythe system automatically. The last number assigned (displayed in the “number status” field) is

increased by one. If you select “external number assignment”, you are prompted to enter your ownnumber when creating a master record.

If you are working with external number assignment the system checks whether the vendor numberyou have entered has not already been used. The system does not, however, check whether anynumbers in the range have been missed out. The “number status” field does not contain anyinformation on the last number assigned.

Recommendation: The most efficient way to create master records is to work with numberranges that use internal assignment.



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Summ ary: Vendor Master Data

The vendor m aster record consists of a header portion,which contains the data and control information valid forall company codes, and a comp any code-specific portion,which can contain whatever information you require foreach company code.

You control which fields in the vendor m aster record aredisplayed (or which ones require an en try from the user)using the account group. You can g enerally copy suchconfiguration settings from the S AP standard systemwithout changing them.

When a user creates a G/L account, the contents of the“optional” and the “required entry” fields are checked

against the configuration settings you made in yoursystem.

The num ber ranges contain the number range interval andthe number assignment method.

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Chapter Documents





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Reconciliation Account

Customer 1Customer 1

1,000

Customer 2Customer 2

50 0

Subledger

Reconciliation ac countReconciliation a ccountdomestic receivablesdomestic receivables

5001000

General ledger

In the master records for customer and vendor accounts, you specify a reconciliation account (for

example, payables, receivables) for each company code.

Every time you post to a customer or vendor account, the system automatically makes a correspondingposting to the appropriate reconciliation account (in the general ledger).



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Document Principle

Invoice

Date

IDES Inc.

115

3 widgets 100Tax 15% 15

FromWidgets Inc.

1 business transaction1 business transaction == 1 document1 document

==

Document no. 1300001234

Expense 100Tax 15Cash 115

1300001234

In the SAP system there is a document for every business transaction. This document is assigned a

unique SAP document number.

You can either have the system assign document numbers (internal assignment) or assign themyourself (external assignment).

The document number links the original document (filing) to the system document and vice versa.



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Document Structure

Docment header

Document d ate, Entry date, Entered byDocument d ate, Entry date, Entered byDocument type, Currency, Docum ent number, ...Document type, Currency, Document num ber, ...

Line item 1

Posting key 0101Account SmithSmithAmount 1,1501,150

Line item 2

Posting key 5050Account Sales revenueSales revenueAmount 1,0001,000

Line item 3

Posting key 5050Account TaxTaxAmount 150150

Balance = 0

Every document consists of:

a header

The document header contains general data which applies to the entire document.

- posting date

- document number

- document type

- currency and so on.

at least two line items (maximum 999).

Every line item consists of at least

• a posting key,

• an account number,

• an amount.

You can post a document only if its balance equals zero.



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Basic Posting - Docum ent Header Data

Document date MM/DD/YY

Document type SK

Company code 0001

Posting date MM/DD/YY

Document number XXXXXXXXXX

Header text Aaa--25--aaA

______________________________________

Posting key 40 Account 476000



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Basic Posting - First Line Item

Amount 100

Tax code V1

Account... 476000 Office suppliesCompany code 0001

Debit entry

Posting key 50 Account 100000



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Basic Posting - Next Line Item

Business area .

Cost center .

Order .

Project .

Allocation

Text

Pst key . . 50 Account 100000



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Posting Keys

CompanyWidgets Inc.

Invoice 1800000025Date 03/25/YYYY

Goods 1,000

Tax 100

Total 1,000

Document type DR Posting key

0101

5050

Outgoing invoiceOutgoing invoice

Account type DAccount type D

DebitDebit

Relevant to salesRelevant to sales

G/L assignmentG/L assignment

Account type SAccount type S

CreditCredit

Posting keys control the entry of line items.

Example: (S=relevant to sales, N=not relevant to sales)

Debit Customer accounts Credit

01 S Invoice 11 S Credit memo

02 S Reverse credit memo 12 S Reverse invoice

05 N Outgoing payment 15 N Incoming payment

Debit Vendor accounts Credit

21 S Credit memo 31 S Invoice

22 S Reverse invoice 32 S Reverse credit memo

25 N Incoming payment 35 N Outgoing payment

Debit G/L accounts Credit

40 Debit entry 50 Credit entry



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Posting Keys

Field status

General dataGeneral data

Additional assignments

Materials m anagement

Payment transactions

Asset accounting

Taxes

Foreign payments

General dataGeneral data Supp.Supp. Req.Req. Opt.Opt.

Allocation number Text Invoice reference Hedging

Allocation __ Invoice reference __ Text __ Hedging __



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Field Status Definitions (G/L Accounts)

Company code: 0001Company code: 0001

Field status group Text

G001 Genera l text / a lloca tion

G005G005 Bank accountsBank accounts

. . .

Account Bank 1Co. code 0001

Field status group G005 Bank accountsG005 Bank accounts



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Screen Modification

Field status

(Posting keys)Supp. Req.Opt.

Allocation Text . . .Value date . . .

Field status

(G/L account m aster)Supp. Req.Opt.

Allocation Text . . .Value date . . .

Linking rules

Supp. Supp. Error Supp.Req. Error Req. Req.

Opt.Opt. Supp.Supp. Req.Req. Opt.Opt.

O p t .

O p t .

S u p

p .

R e q

.

Value date ?Allocation __

TextText __ __

Every G/L account has a field status entry in its master record which controls the display of individual

fields depending on the settings made in customizing for document entry. You specify whether entriesin these fields are optional or required.

In customizing you can also set the status of fields under posting keys. The posting keys delivered withthe standard SAP system have field status definitions which are all preset to optional entry. Thismeans that the field status controls from G/L accounts control document entry.

If you change the standard settings in the G/L account field status and in the posting keys, thespecifications made in posting keys have priority over those made for G/L accounts.

When posting to customer or vendor accounts, the field status of the corresponding reconciliationaccount applies to those accounts.



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Display / Change Document

HeaderItem 001Item 002Item n

01 Invoice1,000

ZB01 04/01/YY

130000001234 ZB05 04/01/YYYY

DocumentsDocuments ChangesChanges

Change rules

Is field changeable?

Field descriptionin repository

Field documenta-tion required?

Ax



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Document Change Rules

Act type Trans.Type Field name CC Field description

D BSEG-HBKID House bank

D BSEG-MABER Dunning area

D BSEG-MADAT Last dunned

D BSEG-MANSP Dunning block

D BSEG-MANST Dunning level

Field name BSEG-MANSP Dunning blockRule is valid for

Account type D Customer items

Transaction type Payments, invoices, credit memosCompany codePossibility of changing the field

X Field is modifiable

Stipulation for changing

X Line item is not c leared



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Document Reversal

Document 13000012Document type DRPosting key 01Amount 1,150Posting key 50Amount 1,000-

Posting key 50Amount 150-

Customizing

Document type Reverse doc type

DR = DS

Posting key Reverse post key 50 = 40

Document 15000003Document type DSPosting key 12Amount 1,150-Posting key 40Amount 1,000

Posting key 40Amount 150

Every posting key is assigned a reverse posting key in customizing. The reverse posting key contains

specifications for the offsetting entry which reverses the document.

Each document type is assigned a reverse document type as well. When defining document types, youalso specify the interval for the document number range.

You can define other document types to fit your company-specific requirements or use the samedocument type for the reverse entry.

If you define for the reverse document type the same number range as in the original document type,reverse documents will be posted using the same document number range.



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Default Values

Transaction Document type Posting key

F - 01 Enter sample document AB

F - 02 Enter G/L account posting SA 40

. . .

F - 22 Enter customer invoice DR 01

. . .

F - 28 Post incoming payment DZ 15

. . .

F - 43 Enter vendor invoice KR 31

The system can default posting keys and document types for transactions in Financial Accounting.

When you post a vendor invoice, for example, it will default posting key 31 and document type KR.You can set default values to the document types of the respective company.



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Summary: Documents

Every business transaction is represented by a docum entwhich is posted in the R/3 System.

A docum ent in the R/3 System consists of a documen theader and line items. Information in the document headerapplies to all the line items. Specifications made in lineitems apply to the spec ified G/L acco unt orcustomer/vendor account.

Fields used in document entry are determined based onthe configuration o f the field status definitions for G/Laccounts and posting keys.

Documents that are entered incorrectly can be c orrectedor reversed.

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Chapter Document Control





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valid posting periods

Valid Posting Periods

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

Fiscal year YYYY

0505 0606

possible closingperiods

1313

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

0505 0606 0707 0808 0909 1010 1111 1212

01 02 03 04 05 06 07 08 09 10 11 12 1313 14 15 16

0505

The posting date which you specify when entering documents determines the posting period to which

the postings are made. The system date is generally entered as the default value in the posting datefield. The posting period is derived from the month specification and is entered in the posting periodfield.

Note: The system automatically determines the posting period which differs from thecalendar year in the case of a non-calendar fiscal year.

You can make the following settings in the system:

number of normal posting periods (01-16)

number of special periods (maximum difference up to 16)

which posting periods are open (can be posted to).

You can define as many posting periods which can be posted to as you like within the possible limityou have set. You can keep all posting periods open throughout the fiscal year or else you can restrictthe open periods in each case to the current posting period only.

Recommendation: In order to be able to compare internal and external reports, it is recommended thatyou close posting periods which have ended so that they are blocked for documententry.





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YYYY - 1YYYY - 1

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

Period 2- Period 1 -

for acct type Afor acct type A

for acct type Dfor acct type D

for acct type Kfor acct type K

for acct type Sfor acct type S

You can break down the periods which can be posted to by differentiating according to account type

and accounts. The account type keys A, D, K, S stand for fixed assets accounts, customer accounts,vendor accounts and G/L accounts.

Note: The plus sign is necessary as the minimum entry for an undifferentiated postingperiod setting.

The specifications for the open posting periods can differ depending on the situation.

Example:The account type D (customers) is closed for month 05, i.e. you cannot enter anyoutgoing invoices in this posting period. The account type K (vendors)

allows postings for the months 05 and 06, i.e. you may still enter incoming invoices.

In addition, you can specify different account intervals within the account type.

The account numbers for customers, vendors and fixed assets are the general ledger accounts storedin the master record.



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2) Posting periods: define periods

1) Define posting period variant


optional:maintain anauthorizationgroup

1. 2.

0001

0002

all company codes in the enterprise

A/D/K = prev.month closed,S = posting permitted

0001 S From acct To acct 5/96 6/96 13/95 13/95 AuGp

The settings stored in customizing are valid for one variant. You can use the specifications in several

company codes by setting one or more variants for each posting period.

Note: You can define several variants corresponding to your different requirements.One aspect can be the cross-group closing date for postings from one period. Bygrouping the same account type and posting period specifications into one variant, the amountof work involved when updating the respective periods is reduced.

The authorization group field is available as an option. You maintain this field if you want to havefurther posting restrictions for particular employee groups.

Example: You allocate the employees working in Accounts Receivable to oneauthorization group and employees from G/L accounting to a different authorization group.By making an additional authorization group specification, you cannot, for example, post anymore outgoing invoices yet the monthly closing entries can still be made.



© SAP AG

2. Posting periods: defining time periods



3. Allocate variant to company codes

1. 2.1000 Ides Inc., Wilmington 0001

2000 Ides UK, London 0001


the posting is made.


beginning and end of your fiscal year

number of “normal” posting periods (01-16)

number of special periods (rest up to 16)

length of posting periods




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Document Type

XXXXX XXXXXXXXX

C u s t o m e r s

C u s t o m e r s

Outgoinginvoice

Incominginvoice

Bank

DR KRKR SBSB

Account typeAccount type

Document no.Document no.

D, SD, S

18000000251800000025

The document type is used:

for differentiating the business transactions,

for controlling which account type can be posted to(customer, vendor, G/L account, fixed asset),

for controlling the document number assignment,

as a search criterion for document information.

Some document types are proposed by the system for the individual screen templates, whereas in othertemplates you are requested to enter a document type.

You can add your own definitions to the document types defined in the standard system.



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Document Types

Doc.type Name Number range Accnt types

AA Asset Acctng 01 ADKMS

AF Depreciation pstgs 03 AS

DR Customer invoice 18 ADMS

KR Vendor invoice 19 AKMS

SA G/L accounts (gen.) 20 DKS

SB G/L accounts (banks) 20 DKS

You specify a number range for each document type.

You can also allocate a number range to several document types.

Example: All G/L account document types (SA, SB, SK, WI) are given the number range 20.

Note: If you use the component in this way, the FI clearing invoices which are created inconnection with billing documents are automatically transferred from SD to FI. The

billing document number is also entered into the reference number field. The billing

document number and the FI document number tend not be identical since the billing documentnumbers are assigned at client level and the FI document numbers at company codelevel. The document number assignment in FI is internal.



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Document Number Range

01 1996 0000100001 0000199999 0000100047

02 1999 0000200000 0000399999 X

STOP!

No. Year From number To number Current no. Extern.Extern.

X1

X2

reserved for

sample documents and

recurring entry documents

You can define as many document number ranges (01 to 99 and AA to ZZ) as you wish.

Recommendation: You first of all establish how the documents are to be stored and organized. Onlythen should you determine how many number ranges you require.

Allocate the number intervals according to your volume of documents and include a safety buffer.

Determine whether the numbers are to be assigned internally by the system or externally. The lastnumber assigned is automatically increased by one in the case of internal document numberassignment. You can see the current document number in the number status field.

You can enter the document number when posting a document in the case of external numberassignment. In this case, the system cannot check whether any numbers in the range have been missedout.

If you integrate several R/3 modules, then the document number in the feeder module (MM, SD) isassigned using internal number assignment. These documents are then transferred to the recipientmodule (FI) and are also given an FI document number which comes from a document number rangeflagged as internal.



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No. Year From number To number Currrent no. Extern.


copy to fiscal

year(s)

01 1996 0000100001 0000199999 0000100047

02 1999 0000200000 0000399999 X

copy to comp.

code(s)

You can redetermine the document number ranges for each fiscal year. If the number ranges are to be

valid for several fiscal years, then enter the numbers 9999 in the year field.

Define the document number ranges for each individual company code. If you use document numberassignment with the same contents in several company codes, you can copy the data into anothercompany code using the utilities function.

Recommendation: Organize the way your documents are stored in the same way for all companycodes and use the copy option.

If the document number ranges are defined dependent on fiscal year, copy the existing numberintervals before the beginning of the fiscal year into the entry for the new year.



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Posting Keys

Supp., opt., req.ent., disp.





01 Invoice Debit Customer

11 Credit memo Credit Customer

31 Invoice Credit Vendor

40 Debit posting Debit G/L acct

50 Credit posting Credit G/L acct

P.Key Meaning Debit/credit Account type Field statusField status

A, D, K, M, SA, D, K, M, S

The posting key controls the document entry. For the line item, it determines:

whether the item is posted to the debit or credit side of the account,

whether it is a subledger posting (customer or vendor), a G/L account posting, a material accountposting or an asset posting,

whether particular fields are hidden or displayed or are required fields or optional fields.

Recommendation: Use the standard settings.



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Default Values For Fiscal Year And Value Date

CoCdCoCd Company name City Default FY

1000 IDES Inc.1000 IDES Inc. New YorkNew York XX

2000 IDES UK2000 IDES UK LondonLondon XX

2100 IDES Ger.2100 IDES Ger. FrankfurtFrankfurt

CCCC Company nameCo mp an y na me C ity De fa ult v alu e d ate



2100 IDES Ger.2100 IDES Ger. FrankfurtFrankfurt XX

If you have entered year-dependent document number intervals within document number assignment

customizing, this entry makes your input easier for

the document display function and

the document change function.

Select this option for company codes which use a year-dependent document number range.

The “Propose value date” option is available whatever your document number range characteristicsare.

You can use the value date field for additional information on the line item.

Note: You must set the value date as a required field if you use the Cash Management,Cash Budget Management and Commitment Accounting modules.

The CPU date (current date of the computer) is proposed as the value date.



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Summary: Document Control

With the specifications you make for the posting periods,you block or allow posting to a certain posting month. Ifyou only release the current month for postings, you mustchange this entry every month.

The “optional” and “required entry” fields are controlleddifferently for each different business transaction. Youcan usua lly copy the standard configuration settings forthis.

You define the document number ranges and thenallocate them to the docum ent types. A number range c anbe allocated to more than one docum ent type.

© SAP AG

Chapter Document Control





© SAP AG

valid posting periods


01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

Fiscal year YYYY

0505 0606

possible closingperiods

1313

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

0505 0606 0707 0808 0909 1010 1111 1212

01 02 03 04 05 06 07 08 09 10 11 12 1313 14 15 16

0505


the postings are made. The system date is generally entered as the default value in the posting datefield. The posting period is derived from the month specification and is entered in the posting periodfield.

Note: The system automatically determines the posting period which differs from thecalendar year in the case of a non-calendar fiscal year.


number of normal posting periods (01-16)

number of special periods (maximum difference up to 16)


You can define as many posting periods which can be posted to as you like within the possible limityou have set. You can keep all posting periods open throughout the fiscal year or else you can restrictthe open periods in each case to the current posting period only.

Recommendation: In order to be able to compare internal and external reports, it is recommended thatyou close posting periods which have ended so that they are blocked for documententry.





© SAP AG


YYYY - 1YYYY - 1

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

Period 2- Period 1 -

for acct type Afor acct type A

for acct type Dfor acct type D

for acct type Kfor acct type K

for acct type Sfor acct type S

You can break down the periods which can be posted to by differentiating according to account type

and accounts. The account type keys A, D, K, S stand for fixed assets accounts, customer accounts,vendor accounts and G/L accounts.

Note: The plus sign is necessary as the minimum entry for an undifferentiated postingperiod setting.

The specifications for the open posting periods can differ depending on the situation.

Example:The account type D (customers) is closed for month 05, i.e. you cannot enter anyoutgoing invoices in this posting period. The account type K (vendors)

allows postings for the months 05 and 06, i.e. you may still enter incoming invoices.

In addition, you can specify different account intervals within the account type.

The account numbers for customers, vendors and fixed assets are the general ledger accounts storedin the master record.



© SAP AG

2) Posting periods: define periods

1) Define posting period variant


optional:maintain anauthorizationgroup

1. 2.

0001

0002

all company codes in the enterprise

A/D/K = prev.month closed,S = posting permitted


The settings stored in customizing are valid for one variant. You can use the specifications in several

company codes by setting one or more variants for each posting period.

Note: You can define several variants corresponding to your different requirements.One aspect can be the cross-group closing date for postings from one period. Bygrouping the same account type and posting period specifications into one variant, the amountof work involved when updating the respective periods is reduced.

The authorization group field is available as an option. You maintain this field if you want to havefurther posting restrictions for particular employee groups.

Example: You allocate the employees working in Accounts Receivable to oneauthorization group and employees from G/L accounting to a different authorization group.By making an additional authorization group specification, you cannot, for example, post anymore outgoing invoices yet the monthly closing entries can still be made.



© SAP AG

2. Posting periods: defining time periods



3. Allocate variant to company codes

1. 2.1000 Ides Inc., Wilmington 0001

2000 Ides UK, London 0001


the posting is made.


beginning and end of your fiscal year

number of “normal” posting periods (01-16)

number of special periods (rest up to 16)

length of posting periods




© SAP AG

Document Type

XXXXX XXXXXXXXX

C u s t o m e r s

C u s t o m e r s

Outgoinginvoice

Incominginvoice

Bank

DR KRKR SBSB

Account typeAccount type


D, SD, S

18000000251800000025

The document type is used:

for differentiating the business transactions,

for controlling which account type can be posted to(customer, vendor, G/L account, fixed asset),

for controlling the document number assignment,

as a search criterion for document information.

Some document types are proposed by the system for the individual screen templates, whereas in othertemplates you are requested to enter a document type.

You can add your own definitions to the document types defined in the standard system.



© SAP AG

Document Types

Doc.type Name Number range Accnt types

AA Asset Acctng 01 ADKMS

AF Depreciation pstgs 03 AS

DR Customer invoice 18 ADMS

KR Vendor invoice 19 AKMS

SA G/L accounts (gen.) 20 DKS

SB G/L accounts (banks) 20 DKS

You specify a number range for each document type.

You can also allocate a number range to several document types.

Example: All G/L account document types (SA, SB, SK, WI) are given the number range 20.

Note: If you use the component in this way, the FI clearing invoices which are created inconnection with billing documents are automatically transferred from SD to FI. The

billing document number is also entered into the reference number field. The billing

document number and the FI document number tend not be identical since the billing documentnumbers are assigned at client level and the FI document numbers at company codelevel. The document number assignment in FI is internal.



© SAP AG


01 1996 0000100001 0000199999 0000100047

02 1999 0000200000 0000399999 X

STOP!

No. Year From number To number Current no. Extern.Extern.

X1

X2

reserved for

sample documents and

recurring entry documents

You can define as many document number ranges (01 to 99 and AA to ZZ) as you wish.

Recommendation: You first of all establish how the documents are to be stored and organized. Onlythen should you determine how many number ranges you require.

Allocate the number intervals according to your volume of documents and include a safety buffer.

Determine whether the numbers are to be assigned internally by the system or externally. The lastnumber assigned is automatically increased by one in the case of internal document numberassignment. You can see the current document number in the number status field.

You can enter the document number when posting a document in the case of external numberassignment. In this case, the system cannot check whether any numbers in the range have been missedout.

If you integrate several R/3 modules, then the document number in the feeder module (MM, SD) isassigned using internal number assignment. These documents are then transferred to the recipientmodule (FI) and are also given an FI document number which comes from a document number rangeflagged as internal.



© SAP AG

No. Year From number To number Currrent no. Extern.


copy to fiscal

year(s)

01 1996 0000100001 0000199999 0000100047

02 1999 0000200000 0000399999 X

copy to comp.

code(s)

You can redetermine the document number ranges for each fiscal year. If the number ranges are to be

valid for several fiscal years, then enter the numbers 9999 in the year field.

Define the document number ranges for each individual company code. If you use document numberassignment with the same contents in several company codes, you can copy the data into anothercompany code using the utilities function.

Recommendation: Organize the way your documents are stored in the same way for all companycodes and use the copy option.

If the document number ranges are defined dependent on fiscal year, copy the existing numberintervals before the beginning of the fiscal year into the entry for the new year.



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Posting Keys






01 Invoice Debit Customer

11 Credit memo Credit Customer

31 Invoice Credit Vendor

40 Debit posting Debit G/L acct

50 Credit posting Credit G/L acct

P.Key Meaning Debit/credit Account type Field statusField status

A, D, K, M, SA, D, K, M, S

The posting key controls the document entry. For the line item, it determines:

whether the item is posted to the debit or credit side of the account,

whether it is a subledger posting (customer or vendor), a G/L account posting, a material accountposting or an asset posting,

whether particular fields are hidden or displayed or are required fields or optional fields.

Recommendation: Use the standard settings.



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Default Values For Fiscal Year And Value Date

CoCdCoCd Company name City Default FY



2100 IDES Ger.2100 IDES Ger. FrankfurtFrankfurt

CCCC Company nameCo mp an y na me C ity De fa ult v alu e d ate



2100 IDES Ger.2100 IDES Ger. FrankfurtFrankfurt XX

If you have entered year-dependent document number intervals within document number assignment

customizing, this entry makes your input easier for

the document display function and

the document change function.

Select this option for company codes which use a year-dependent document number range.

The “Propose value date” option is available whatever your document number range characteristicsare.

You can use the value date field for additional information on the line item.

Note: You must set the value date as a required field if you use the Cash Management,Cash Budget Management and Commitment Accounting modules.

The CPU date (current date of the computer) is proposed as the value date.



© SAP AG

Summary: Document Control

With the specifications you make for the posting periods,you block or allow posting to a certain posting month. Ifyou only release the current month for postings, you mustchange this entry every month.

The “optional” and “required entry” fields are controlleddifferently for each different business transaction. Youcan usua lly copy the standard configuration settings forthis.

You define the document number ranges and thenallocate them to the docum ent types. A number range c anbe allocated to more than one docum ent type.

© SAP AG

Chapter Postings Transactions





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Characteristics

Tax type A Output taxCheck ind. X

EC indicatorTarget tax code

Tax accounts

Pe raccount key foreach account

One account pertax code

RulesRules

Setting Up New Tax Codes

A0

A7

V0

V1

V9

A6A6

Tax category Account Tax percentage Level From level Co nd.type

keyBase amount 100 0 BASB

Output tax MWS 16.000 110 100 MWAS

Input tax VST 120 100 MWVS

Travel exp.(% sep.) VST 130 100 MWRK

Non-ded.input tax NAV 140 100 MWVN T a x c o d e s

A2

A1

The SAP system contains a tax code for every applicable tax rate.

When you maintain a tax code, you must define the rate and other attributes as required. You onlyhave to enter tax accounts if the rules you are using specify “Account per tax code” for the accountkey of any of the accounts involved.

You can define any new tax codes you set-up as being country-dependent, using the calculationprocedure to save this specification.



© SAP AG

Tax Accounts

Description Transaction Acct determ.Outgoing acquisition tax ESA X

Incoming acquisition tax ESE X

Output tax MWS X

Input tax VST X

Chart of accounts INT

Transaction VST

G/L accountG/L account

154000154000

In the R/3 system postings to tax accounts are carried out automatically. This eliminates the

possibility of tax amounts being entered incorrectly.

Enter the appropriate G/L accounts from your chart of accounts for the transactions you use.

Note The posting keys show whether the G/L account posting should be on the debit orcredit side. You do not need to change the specifications made for the rules.



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Exchange Rate Differences

Realized exch.rate diff.Realized exch.rate diff.

230020230020

230020230020

Act determ.for open item ex.rate diffsGen.ledger Currency Curr. type

140000

160000 USD 10

160000 DEM 10


230010230010230010230010


Expense 230000

Revenue 280000

In the R/3 system postings to the exchange rate difference accounts are usually made automatically.

This eliminates the possibility of incorrect entries.

You can allocate exchange rate difference accounts to as many G/L accounts that receive foreigncurrency open item postings as you like.

You can make a global allocation for all currencies and currency types to a single G/L account. Youcan also specify a separate G/L account for automatic postings for every individual foreign currency.You can further differentiate by currency type (document currency, local currency etc.).

Note In this entry screen you can also define the accounts for valuating open items forclosing purposes.



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Clearing Between Company Codes

21001000

Posted in 1000,Posted in 1000,cleared against 2100cleared against 2100

ReceivableReceivable PayablePayable

194002194002 194002194002

Posted in 2100 ,Posted in 2100 ,cleared against 1000cleared against 1000

ReceivableReceivable PayablePayable

194001194001 194001194001

You can specify both G/L accounts and customer and vendor accounts for clearing between company

codes.

Note The company codes in which you will make cross-company code postings mustbelong to the same taxable entity.

For each possible pair of company codes where cross-company code clearing will take place you mustenter the reverse combination:

ExampleCoCd 1000 with CoCd 2000 and CoCd 2000 with CoCd 1000CoCd 2000 with CoCd 3000 and CoCd 3000 with CoCd 2000CoCd 3000 with CoCd 1000 and CoCd 1000 with CoCd 3000



© SAP AG

Account Determination

AMAMAssetAssetAcctgAcctg

COCOControllingControlling

HRHuman

Resources

SDSales

FIFIFinancialFinancial

AcctgAcctg

You can m ake the entries for the automatic G/LYou can make the entries for the automatic G/Laccount postings either in the modules namedaccount postings either in the modules namedaboveabove

oror centrally in the general ledger configuration m enucentrally in the general ledger configuration m enu

Determination ofrevenue accounts

Expense accountsCurrent assets/liab.accts

Automaticpostings

Automaticpostings

Via the menu path Bus.transactions -> General ledger in the Configuration menu you can enter G/L

accounts that can be used for all automatic postings in the following sub-menus:

Asset management

Overhead cost management

Materials management

Personnel administration

Sales and distribution

Note You can also make these entries in any module that is integrated with Financial

Accounting.

Recommendation: Decide on a single person/group of people within your overall project who willmake

these settings and any changes to them.



© SAP AG

Terms Of Payment

User-defined explanation:User-defined e xplanation:

14 days 3%, 30 days 2 %, 45 days net14 days 3%, 30 days 2 %, 45 days net

Default baseline dateDefault baseline date

No defaultNo default

Document dateDocumen t datePosting datePosting dateEntry dateEntry date

Invoice date03/25/1996

Receipt /

posting date03/29/96

Document entered on04/01/96

ZB01ZB01

Account typeAccount type DefaultDefault

CustomerCustomer Pymt block keyPymt block keyVendorVendor Payment methodPayment method

X

X

The payment terms are defined as a four-character, alphanumeric user-defined key.

You can supplement the automatically-generated description of the payment terms by

creating your own description ( which is printed along with the correspondence),

permitting the payment terms for vendors only or for customers only or for both

defining a fixed payment date in the month after the invoice is issued (e.g. payment by the 15th of the next month),

entering a default reason for the payment block (this is automatically entered into the documents asa value that can be overwritten, e.g. payment block due to debit memo/direct debit with incominginvoices),

allocate a default value for the payment method (e.g. bank direct debit for outgoing invoices),

specify a value as a basis for calculating the payment period

indicate whether the payment term is for holdback/retainage.

Note: The payment terms keys are managed separately for accounting andsales/distribution. You should use the same keys in both modules and specify how the informationflow between purchasing and financial accounting or between sales/distribution and

financial accounting can be guaranteed in the event of changes and newentries.



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Automatic Postings

Bank charges

Cash discoun t received/paid Over/under payment Down payment

S G LS G L

Special G/L transactions:

Bills of exchange

Check/bill of exchange Down paym ent request Guarantees Security deposit Individual value adjustment

CustomerCustomer

You can define G/L accounts to receive automatic postings for a wide range of accounts receivable

and accounts payable transactions.

Depending on the transaction involved, specify one or more G/L accounts from the chart of accountsyou are using. Where necessary enter a G/L account for every reconciliation account.



© SAP AG

Wo rk Lists For Several Company Codes And/Or Accounts

Value

Account 1

Account 2

Account 3:

Value

CoCd 1

CoCd 2

CoCd 3:

Work List

Account

CoCd

AccountCompany code

Line Item Display

You can switch on, switch off, display and maintain work lists via the “ Edit ” function in the line item

display screen.

A work list is a name (up to 10 characters long) for a combination of accounts and/or company codesthat have been grouped together for processing.

You can define a term for the following objects in the Work list field:

BUKRS (company code)

KUNNR (customer)

LIFNR (vendor)SAKNR (G/L account)

You specify values for the work lists that you have defined. Line items are then displayed for theaccounts and/or company codes that you allocated to that work list.



© SAP AG

Line Item Display - Automatic Work Lists

Rules for name assignment

Object

Automatic generation of work lists for customers and vendors

KUNNR Customers

:

Prefix

Offset

Display length Group key: 1234567890

(Customer master record 1)

First account posted to after

the rules were defined.Work list:

KS - 1234567

KS -

7

Work list GK - 1234567 will display all items posted to customer accounts whose master records

contain an entry beginning with the digits 1234567 in the ‘group key’ field.

You can only create automatic work processes for customer and vendor accounts based on the ‘groupkey’ and ‘alternative payer’ fields.

Prefix and display length: max. 10-character



© SAP AG

Entering Recurring Postings

Execution of Recurring Entries

0001

either

or

DescriptionDescriptionRu nRu n

scheduleschedule0001 Every Wednesday

1) Define the run schedule

::

00010001Run scheduleRun scheduleRun dateRun date

12/06/1995

2) Dates acc.to run schedule

::

12/13/1995

12/20/1995

::

ConfigurationConfiguration

First run on

Last run on

Interval in months

Run date

Run schedule

:

A recurring entry document is an aid to creating actual documents that must be created at regular

intervals. Recurring entry documents are not therefore actual accounting documents and do not alterany transaction figures in accounting.

For each recurring document, you can enter either a periodic interval (interval in months, plus a rundate) or a run schedule.

You define your own run schedules in the configuration menu. Then you maintain the dates for them.These dates must not be periods.

When you are creating a recurring entry original document, you can define a date in the field “First

run on” that comes before the first date in the run schedule, thus creating an extra actual document.



© SAP AG

Program Flow

Recurring entry data

First run on

Last run on

Next run on

Run interval

Run date

Run plan

Deletion indicator

Number of runs

10/20/1995

Enter recurring entries Recurring entry program starts

Settlement periodSettlement period

12/01/1995 12/31/1995toto

::

Recurring entrydocument update:Next run on:

Accountingdocument

Batch input sessionBatch input session

processprocess

0001

12/27/1995

You can use the recurring entry program in accounts receivable and payable and even for G/L account

postings.

In this way you can make settings that recur at more or less regular intervals (receivables, payables,accruals/deferrals)

No more than a single actual document is generated for each program run and recurring entrydocument, provided that the next run date falls within the settlement period.

When the batch input session is processed, the accounting document is created and the recurring entrydocument is updated for the next program run.

Caution You must always start the recurring entry program before running the batch

input session.



© SAP AG

Summary: Postings Transactions

A large am ount of postings are generated autom atically.You define the specifications for posting transactions inthe configuration menu for each of the functions.

All postings to the tax accounts are autom atic. Thisensures that tax amou nts are entered correctly.

The configuration settings for each set of pa yment termsdetermine the periods for the payment c onditions. Youcan supplem ent the autom atically generated descriptionfor each of these with your own text.

© SAP AG

Chapter Accounts and Line Items





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Account: Transaction Figures

General data

Company code

data

Master recordMaster record

postedposted

Transaction figures

Period D / C0102 3000

:12..16

CCdata: 01.02.YYYYAccount: BANKDebit posting / 40Amount 3.000

Add

O p e n

Transaction figures are the summary representation of our accounting according to a fixed structure.

- Account number

- Company code

- Fiscal year

- Business area (G/L accounts only)

- Currency (G/L accounts only)

- Posting period

- Debit

- Credit



© SAP AG

Currency overviewLC 3.000

FC 1.800

Line itemsItem 1Item n

Cumulativebalance

300-1.800

Account: US dollar bank account FC

Balance Display for G/L Accounts

Account: US do llar bank account LCPeriod Debit Credit Period Cumulative

balance balance

123..

13.

16

4.80050 0

1.300500-

3.500500-

3.000

Work list: ? Company code: ? Year: ? Currency: ?Account: ?

The balances for debit, credit, period balance and cumulative balance are shown per period in the

balance display.

You can go into the line items of an account from this display

For foreign currency accounts, the balance is displayed both in the foreign currency and in thecompany code currency.



© SAP AG

Balance Display for Customers and Vendors

Period Debit Credit Period Cumulativeb ala nc e bala nce

123..

13.

16

Account: ? Company code: ? Year: ?

Line items

Item 1Item n

Special G/L

transactionDown payment _____ Bill of exchange _____ * _____

In addition to general ledger account balances, you can also choose to display the balances for special

general ledger transactions when you are in the sub-ledger accounts.



© SAP AG

Line item displayAccount 1Document 1 Item 2 50,00Document 4 Item 1 100,00Document 5 Item 1 200,00

Account Line Items

Generaldata

Companycodedata

Transactionfigures

Account

Account 1 Document 1 Item2Document 4 Item 1 ...Document 5 Item 1 ...

Account 2 Document 2 Item1Document 2 Item 2...

. . .

. . .

. . .

Document 1Item 1 ...Item 2 ...Item 3 ...

Document 2Item 1 ...Item 2 ...

.

.

.

You can go into a document from the line item display of an account.

You can total, sort, and select the line item display according to different criteria.

For example, an accounting clerk could also find a document number using the search function.



© SAP AG

Master Record Control

Master Record In company codeIn company code

Account control ------------------------------------------------------------Currency ______________________ DEM Deutsche MarkExchange rate difference key ________ ___ Tax category ________________ ___ Reconciliation account for account type ______ ___

Account management ---------------------------------------------------------Open item management _______ XLine item display ____________ XSort key ________________ 005 Amount

Docum ent entry control --------------------------------------------Field status group _______________ G R02 Bank accountsAutomatic posting only ______ ___ Supplement au tomatic posting ___ ___

Open Item Management X

If you need open item management for a balance sheet account, indicate the field with "X".

Line item display X

If you want to have the saved documents from a general ledger account at your displosal in dialog,indicate the field with "X".

Sort key 005

If you have decided on line item display for an account, you can specify the sort sequence in thecriteria you enter while you are in the display. You also have the option to re-sort.



© SAP AG

Summary:Accounts and Line Items

The account d isplay gives you an overview of all postingsto a selected account.

From the ba lance display, you can go to the line itemdisplay and display all documents (debit, credit, debit andcredit).

Amoun ts are displayed in the local currency (LC) or in theforeign currency (FC) in w hich they were p osted.

© SAP AG

Unit Foreign Currencies





© SAP AG

Posting in Foreign Currency

Document headerDocument header

Currency/Rate USD 2.0Amount 1,000Translation date

05.31.YYYY

Document linesDocument lines

Amount FC: 1,000 USD

Exchange rateExchange rate

04.30.YYYY USD DEM 1.8

05.31.YYYY USD DEM 2.0

Amount LC: 2,000 DEM

1.)

2.)

When you post in foreign currency, you overwrite the default local currency key in the document

header with the corresponding foreign currency key.

Generally, the exchange rate comes automatically from the exchange rate table. The system sets thetranslation date as the posting date. The translation date determines which rate is taken from theexchange rate table.

You only need to enter the amount in one currency. The system automatically performs the translationto another currency.

You can specify an exchange rate in the document header yourself, or you can enter the local andforeign currency amounts in the posting lines and thus override the exchange rate table.



© SAP AG

The FI View

Two additional currencies per company code

Autom atic calculation of additional currencies

Display additional currencies in document

Select exchange rate type, base currency, and translationdate type

Valuation differences may be posted separately

FIFI

documentdocument

TransactionTransaction

currencycurrency

LocalLocal

currencycurrency

AdditionalAdditional

currency 1currency 1

AdditionalAdditional

currency 2currency 2



© SAP AG

Target Group

Organizations that do internal and external reporting inone or two additional currencies

Organizations in countries with high inflation rates

Multinational corporate groups



© SAP AG

Options for Additional Currencies(FI)

Group currency Global company currency

Hard currency

Index-based currency



© SAP AG

Two Additional Currencies in FI

Example: Currency types in a multinational corporate group:

German corp. groupGroup currency

DEM

US Germany Mexico

Transaction currencyLocal currencyGroup currencyHard currency

XXX XXX XXXUSD DEM MXPDEM DEM DEM

USD

As of Release 2.2a, you can carry two additional currencies per company code in FI (only for test

systems). As of 3.0, you can work with additional currencies in production systems. The followingcurrency types are available:

Group currency

Hard currency

Index-based currency

Global company currency

You do not have to enter amounts explicitly in additional currencies; the system calculates theamounts with an exchange rate table. You can define either the document currency or the localcurrency as the reference currency.

Exhange rate differences will then appear not only in local currency, but also in the additionalcurrencies of an organization.



© SAP AG

Example: An Am erican corporate group owns:1. A company in Holland with a branch in Germany

2. A company in England with a branch in France

FIPaket

FI using LC

FI

Transact.Transact. LocalLocal CoCodeCoCode GroupGroup

Company 1Company 1 currencycurrency currencycurrency currencycurrency currencycurrency

Germany XXX DEM NLG USD

Transact.Transact. LocalLocal CoCodeCoCode GroupGroup

Company 2Company 2 currencycurrency currencycurrency currencycurrency currencycurrencyFrance XXX FRF GBP USD

LC Country CoCode Groupcurrency currency

Gesell.1Gesell.2

Holland NL G USDEngland GBP USD

Description of above example:

For technical reasons, (VAT reporting), branches have to be represented as company codes in the SAPsystem even though they are not legally self-contained organizations.

There is no “consolidation” between the branch level and the level of legal self-sufficiency. In order tooffset, you have to go through the selection of posting methods and chart of accounts. The LC systembegins at the level of legal self-sufficiency.

The companies in Holland and England are not shown on this slide.



© SAP AG

Also See Exchange Rates

As of 3.0, currency translation m ay be performedusing a reference currency.

The translation would then be as follows: currency Aè reference currency è currency B.

If you choose this option, the exchange rate only hasto be maintained by the foreign currency in thereference currency.

For further information, please refer to the release notes for 3.0.



© SAP AG

Chapter Entry Tools and Special Features



© SAP AG

Entry Tools: Entry with Reference

ReferenceDocume nt no. ?

Document

13 000 00031

or Sample doc.

92 000 00044

Workflow control Reverse posting Enter G/L account lines

No default amounts Display items

Document13 000 00032

You can also use references to post.

There are two kinds of references:- 'actual' documents or- sample documents (sample documents are entered just like actual documents, only they

do not update the transaction figures).

Workflow controlX Create reverse posting

You create a document with opposite posting keys to the reference document.

X Enter G/L account lines

The G/L account item fast entry screen is displayed. You have the option to make changes inthe reference data.

X No default amountsYou see the reference document without any amounts.

X Display items

All items in the reference document are displayed in succession. You have the option of posting a similar actual document.



© SAP AG

Solutions for Recurring Postings

Docum ent no. 087234098

R e f e r e n c e d o c

u m e n t

PK Acct Amount40 123000 500050 345560 200050 907902 3000

Posted document

CoCde: 0001 01.23.95 PK Account Amount40 123000 500050 345560 200050 907902 3000

Sample documen t no. 255

S a m p l e d o c

u m e n t

PK Acct Amount40 123000 500050 345560 200050 907902 3000

Hold/set data

Document header & item:

CoCde: 0001 01.23.95

PK Account Amount40 123000 5000

Reference documents are posted documents that you can copy when posting a new document.

A sample document is a model document that can be copied to a document that is to be posted.

The “Hold/set data” function allows you to enter certain data with automatic settings while posting.

These functions each have different restrictions and differences.

Account assignment models, which support document entry, are an alternative to sample documents.



© SAP AG

Posting with Account Assignment Model

Account assignment model Sample No. 9889Sample No. 9889

PK Acct Amount40 123000 500050 345560 200050 907902 3000

Posted document

Header: 01.23.1995 Company code: 0001Header: 01.23.1995 Company code: 0001

PK Account Amount

40 123000 500050 345560 200050 907902 3000

Account assignment models are designed to accelerate the process of document entry. An account

assignment model may contain an unlimited number of line items and the posted amount.

Posting to an account assignment model does not have to be complete. For example, an account can becontained in the model while the cost center and amount are left blank until the final posting, when theaccount assignment model is used.

It is normally used for G/L account postings, and less often for postings to subledger accounts. Youcan also call up this function from accounts receivable as well as accounts payable accounting.

The account assignment model consists of several G/L items (defined by the user) that are used inpostings which show a large number of account assignments and are used as models.

This function has the following options:

Maintain and display account assignment model. Integration with document entry procedure.

Intercompany transactions with account assignment model.

Document entry in list format using screen variants that can be set individually.

Distribute a single amount to various line items using an equivalence number.



© SAP AG

Sample Docum ents and Account Assignment Models

Acct. assign.modelSampledoc.

All fields may be changed

Copy existing document/model

Additional line items can be addedafter creation

Delete existing items NoNo YesYes

NoNo YesYes

NoNo YesYes

NoNo YesYes

The account assignment model is much more flexible than the sample document.

It is also easier to change, copy, and add data to an account assignment model.

Maintaining an account assignment model is more systematic and allows you to administer severalaccount assignment models that are updated or changed.



© SAP AG

Text in Line Items--Item n

Text Text informationText information

Plus text = expression of item text in correspondence, dunning notices, checks

--Item n+1

++

--Item m

++++

==XXXXXXXX

Text repeated but not displayed in line item

Text repeated and displayed in line item

Standard text (XXXX) is entered in the line item

After the first entry of the required text in a line item, the text can be transferred to a text field in the

following items by entering + or ++.Entering + effects the transfer of the text without a confirmation message, while entering ++ makesthe transfer with a confirmation message.

In G/L account fast entry as well as fast entry of incoming invoices and credit memos, item text cannotbe used as an entry field. You can transfer an already entered text using accounting items ( Mark text

while copying G/L account entry).

By entering = xxxx, you can transfer a standard text ( xxxx : argument in tableè s. Customizing ).



© SAP AG

Hold and Process Document

Document entryDocument entry

Account 476000Amount 100Cost center

Post

HoldHold Temporary document number 1User XYZ

ProcessingProcessing

User XYZ Account 476000Temp. doc. number 1 ProcessProcess Amount 100

Cost center 150895

You can hold a document under a temporary document number of your choosing.

You can process or post the document with this number.



© SAP AG

Cross-Company Code Posting

Document headerDocument header

Company code 1000

Cross-CC no.- - - -

Document entryLine 1

CC Account Amount1000 Kreditor 110

Steuer 10 V1

Line 2

C C A cco un t A mo unt1000 476000 20 V1

Line 3CC Account Amount

1100 476000 80 V1

Automatic posting lines

When you make cross-company code postings, enter only the company code in the individual

document lines. Before doing this, indicate Options: Cross-company code documents.

Clearing and value-added tax postings are created automatically by the system (see next page).

The company codes in question must have the same local currency.



© SAP AG

Cross-Company Code Clearing

Customizing for clearingCustomizing for clearingbetween company codesbetween company codes

Company code 1=Company code 1= 10001000Company code 2=Company code 2= 11001100

For each comb ination ofcompany codes, definitions of Debit posting key Credit posting key Debit account Credit accountshould be m aintained forCustomizing receivables andpayables.

Posted to 1000Cleared against 1100Receivables PayablesDebit post. key Credit posting key

Deb it account C redit account

Posted to 1100Cleared against 1000Receivables PayablesDebit post. key Credit posting keyDebit account Credit account



© SAP AG

Cross-Company Code Posting

Cross-company code number(automatically generated) 01000014200100001420 10001000 YYYY

Document number incompany code 1000 0100001420 1000

Leadingcompany code

0100000010Document number in

company code 1100 1100

Following

company code

The transaction number may be

- generated by the SAP system (no entry in cross-company code number ) or- entered manually (max. 16 digits).

If the SAP system creates the transaction number, it contains- the document number in the leading company code,- the number of the leading company code,- fiscal year (YY).



© SAP AG

Invoice and Credit Memo Fast Entry

Default for the following d ocumentsDefault for the following documents

Company code

Posting date

Document type

Posting period

Default data for the following documentsDefault data for the following documents

Currency

Document date

The defaults are valid for the following documents until they are deleted (menu option Delete) or

overwritten.

Default data appears in the following templates, where they can also be overwritten.



© SAP AG

G/L Account Line Item Fast Entry

Enter documentheader Fast entry

PK Account Amount Tax VAT Cost center

40 476000 50 V1 15 15089525 V1 250353

477000 25 V1 16044750 100000 115

There is only one dialog step for fast entry of general ledger account line items.

A choice of templates (Customizing) will fulfill the various conditions for a selection of additionalaccount assignments.



© SAP AG

Document Park

Parking

ParkChange

Post

Tracing

Release

Release

Paymentrelease

With document parking, account assignments do not have to be complete for you to enter data for

customers, G/L accounts, and fixed assets.

Parking, park, change, and post are all supported functions.

Document tracing and release will be possible in a later release status using Basis workflowcomponents.



© SAP AG

Parking

Item 1

Item 2

Item n Fast entry

Header

Park

Required fie lds: Company codeCurrencyPosting keyAccount number

Existence check:: B us in ess areaCost center :

No update of transaction figures

No balance review

Docum ent does not have to be complete

Docum ent number assignment like indocume nt entry

The process of document parking is similar to that of document entry.

Only an existence check is performed in addition to checking the required fields Company code,Currency, Posting key, and Account number.

Field status definitions set to Required are interpreted as Can.

When a document is parked, a park document (own tables) and a BKPF record with the samedocument number are created.

The transaction figures are not updated, but the document can be processed in the line items.



© SAP AG

Change documentChange document

Document dateDocument date

Posting datePosting date

ReferenceReference

::

Changing a Parked Document

Change headerChange header

Overview

Doc. typeDoc. type

PeriodPeriod

Header

Header

Item 1

:

Item n

All accountAll accountassignmentsassignments

can be changedcan be changed

Company codeCompany code

CurrencyCurrency


Change documentChange document

You can change all fields in the document header except Company code, Currency, and Document

number (with the exception of external number assignment).

You can change all fields in the line items. Accounting rules for changing documents do not apply.

You can delete a parked document. Note that the document number cannot be reused. A BKPF entryremains so that the number is blocked. Change documents also remain.



© SAP AG

PostingPosting Parked Documents

You can post parked documents individually or from a listselection.

All account assignments are checked for correctness. Mostimportantly, the balance must be 0.

Error messages are output in a list. From this list, you cancorrect incorrect documents.

Once posting has been successfully completed, the parkeddocument is deleted and an accounting document is

generated. Transaction figures are also updated.

All change documents are kept.

There is a new Activity 77 park for the authorization objects that protect documents.



© SAP AG

Document Data

- Document header (VBKPF)

- Customers (VBSEGD)

- Vendors (VBSEGK)

- G/L accounts(VBSEGS)

- Fixed assets (VBSEGA)

- Taxes (VBSET)

- One-time accounts (VBSEC)

Data for documents (posted, not parked) is stored in BKPF and BSEG in the SAP system. Separate

index files (such as BSIK) are created for each account type.

Data is stored in different tables for different account types (see above) for parked documents.



© SAP AG

Park (1)

- Incomplete docum ents

- No update except forCash Management

- Only a few fields necessary

- Existence check (for tax codes,for example)

- Gradual com pletion optional

Paket

You can park, constantly update, and post incomplete documents. Data from the parked document

remains available in the system.

After you have entered document header and line item data, and the document has been parked, data isstored in files. A document number is assigned like in document entry. Neither transaction figures,asset values, control totals, nor any other data is updated (except for Cash Management data) and noautomatic postings are created. Normally, a balance check is not performed, but you can perform one.

You can check whether data to be parked already exists in the system. Some fields, such as Postingkey and Account number, are required entries.



© SAP AG

Park (2)

- Closing check (optional)

- Document overview andfast input variants

- Cross-company code

- Separate activity (77)for authorization

- Parameter transactions

Paket

You can check to see if a document is complete with the COMPLETE function. It checks each line

item for the necessary fields as well as whether the document shows a balance of 0.

You can define fast entry and document overview variants in Customizing.

You can enter cross-company code transactions. Only a parked document in the initial company codeis generated. Several documents are created through posting. You cannot enter a cross-company codenumber for cross-company code transactions.

A new activity (77) has been defined for authorization objects F_BKPF_BLA, F_BKPF_BUK,F_BKPF_GSB, F_BKPF_KOA. This new activity allows you to differentiate between users who maypark a document and those who can post a document.

Parameter transactions for setting default values have been defined. This allows you to set defaults in

Customizing for the posting key and document type in document parking transactions.



© SAP AG

Park (3)

Taxes

- Customer item

- Tax screen

- Automatic

- No tax item

Paket

You can enter tax data as you do in transaction FB01.

The first option is to enter taxes in the customer line item.

The second option is to enter data in the tax screen.

The third option is to allow the system to calculate the taxes automatically.

In a parked document, no tax items are generated, but tax information is stored (VBSEGK, VBSET).Taxes are reported and can be declared before posting takes place.



© SAP AG

Park (4)

- Change documents

- Delete docum ents

- Change num ber or posting date

- Open item list (optional)

- Transaction FB01

- Payment requests

If you change a parked document, the changes are logged. When displaying a parked document, you

can list the changes that were made. If a posted document was also a parked document, you can alsodisplay the changes made to the parked documents.

You can delete parked documents, but the document number cannot be used for new documents.

You can also change the document number or posting date. When you do this, the old document isdeleted and a new one is created.

You can display parked documents in the open item list.

In transaction FB01, you also have the option of parking documents (new in Release 3.0).

It is possible to create payment requests for parked documents. Payment requests are regulatedautomatically by the payment program. When the parked document is finally posted, the relation

between the payment request and the document remains.



© SAP AG

Posting

- Posting with CALL-TRANSACTION

- Content of docum ent parking tablesis deleted

- Document number is not changed

- Cash Managem ent datais transferred

Parked documents are posted with CALL-TRANSACTION.

The content of the document parking tables is deleted.

The document number of the parked document is now the document number of the posted document.

Cash Management data is reversed for the parked document and recalculated for the document.



© SAP AG

Postdoc.

Overview of Release Approval Procedure

RELEASEentire docum ent

RELEASEamount

REFUSE

REFUSE

RELEASE

RELEASE

COMPLETE

PARK

SAP will deliver a standard Workflow definition for the release procedure illustrated above. The next

several slides describe this standard release approval procedure for parked documents.

Because the introduction of a release approval procedure for parked documents is based on Workflowtools (made available through SAP Business Workflow components), the user has the option of modifying the release approval procedure delivered by SAP. Almost any imaginable scenario can beillustrated with the release approval procedure available in the SAP system.

The functions PARK (a document) and COMPLETE (a parked document) start the appropriate releaseapproval procedure.

You can specify the minimum amount produced by the release approval procedure in Cutomizing. Forexample, you can specify that every invoice over $1000 requires a further release approval by asupervisor or manager, while invoices under $1000 do not need release approval.



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Summary:Entry Tools and Special Features

Entry tools make document entry easier forthe user.

© SAP AG

Chapter Optional Functionality





© SAP AG

Cross-System Company Code GL2000

GL1000

GL2200

GL2100

GL4000

GL3000

CoCd Name City Cross-sys co.cd.

1000 IDES Inc. Wilmingt. GL1000

2000 IDES UK London GL2000

2100 IDES Portugal Lisbon GL2100

If you want to continue processing and evaluating documents from external systems in your R/3

system, you should set up a unique allocation.

You can achieve unambiguity by assigning a six-character company code identification which you mayonly assign once within the consolidated group.

Define the cross-system company codes in a first step and allocate this identification to the companycodes in all systems.

Note The local currency must be identical in the company codes whose documents youwant to continue processing. That is, the sending and the receiving company code work withthe same local currency.



© SAP AG

Currency typeCurrency type

Exch.rate typeExch.rate type

Base currencyBase currency

Type of translation dateType of translation date

1. Local currency

2. Local currency

3. Local currency

Additional Local Currency

Possible parameters:Possible parameters:

In addition to the currency defined for a company code, you can also define one or two extra currencies

for your internal and external reporting requirements.

For example, in countries with high inflation rates, you can run your company code in a country-specific hard currency (in addition to the original currency defined for that company code).

In EU member states you can use the ECU as an index currency for carrying out evaluations.

The currency type describes what a currency is used for.

You use the exchange rate type to define whether you will carry out currency translation with theaverage rate (M), bank buying or bank selling rate. You must define the daily rates for the exchangerate type you specify.

If you use this option, you must make certain extra configuration settings governing accountdetermination for foreign currency valuation and the processing of exchange rate differences.



© SAP AG

Individual Editing Options

Docum ent entryDocum ent entry

Docum ent displayDocum ent displayOpen itemsOpen items

Line itemsLine items

Credit managem entCredit managem ent

Payment advice notesPayment advice notes

FI ApplicationFI ApplicationGeneral ledgerGeneral ledger

standard settingsstandard settings

X Documents in local currencyDocs w /out sp.G/L transactions

X Text for G/L account entry

In the Financial Accounting module each user can define individual editing options for himself/herself.

Using these options you determine, for example, whether you only post in local currency when enteringdocuments. If you select this line, the currency and exchange rate fields are no longer displayed.

Other default options for the document entry templates are:

Documents without special G/L transactions

Non-cross-company code documents

Copy text for G/L account fast entry.

Put a cross at the beginning of the line which corresponds to the functionality you require. The field isno longer displayed after saving the editing option. This way your screen template becomes clearer andcan be filled out more quickly.

You can change editing options at any time. These settings supplement the specifications made incustomizing for Controls by means of the field status groups and are dependent on the definitions madethere.



© SAP AG

X Documents in local currency

Docs w/out sp.G/L transactions

XText for G/L account entry

General Editing Options

ConfigurationConfiguration

Display formatsDisplay formats

Line layout variants for

A1

Document entryDocum ent entry Open itemsOpen items

Line itemsLine items Credit managem entCredit managem ent Payment advice notesPayment advice notes

Entry screen templatesand line layout variant

Line layout variants already predefined by SAP are delivered with the editing options. These standard

variants determine at what point the selected field contents are displayed on the entry or displayscreens.

You can change the sequence and column heading to meet your requirements by setting up newvariants in customizing.

Define the new key term for your line layout variants in a first step. Then in a second step allocate thenew variants in the Financial Accounting application to the different processing options.

You do not have to store your line layout variants in the options.

Recommendation: Do not begin setting up new line layout variants until you have extensive testdata for all business transactions available in your system. Define the line layout with the aim of

displaying information which you need to be able to work through the systemcomfortably in the corresponding application area.



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Maintaining The Line Layout

Line layout variantLine layout variant A1

AllocationDocument numberDocument typePosting key

Posting dateDocument date

Field listField list

Invoice no./ Doc.no./ DT/ PK / PoDt/ Doc .date/ .....

Column heading

You set up new line layout variants within customizing. At any time you can create additional variants

or change existing ones as required.

When inserting fields into the line layout variants, you make selections from a list of the available fielddescriptions.

In the column heading function you can see the selected fields, their sequence and the field length forthe respective line layout variant. You can create your own descriptions dependent on the fielddescription and the SAP column headings.

Example Field SAP abbreviation Alternative descriptions

Document type DT Type, doc.type

Account Account Customer, payer

Allocation number Allocation Invoice, billing document, outgoinginvoice

Recommendation: Use the option of working with company-specific descriptions so that it is easier toget started with the R/3 system.

Note Changes in the line layout is only one way of changing “editing forms”. On thenext page you will find an overview relating to this.



© SAP AG

Bearbeitungsformen definieren

Buchung

Beleg-ZeilenaufbauAusgleichsvorgängeZahlungsaviseSchnellerfassungVorerfassungExterne BelegeKontierungsmuster

Konto

Posten anzeigen ZeilenaufbauSonderfelderFeldauswahlVorschlagswerteSummenvariantenSortiervariantenStammsatzinfos

Beleg

Anzeigen

Periodisches Arbeiten

Masch. Zahlen ZahlungMasch. Zahlen Einz.Pos

ZahlungsträgerKreditmanagementKorrespondenz

You have the option of changing or extending the display formats listed above in order to meet your

requirements.

Maintaining the line layout for the line item display is only one of these options.



© SAP AG

Screen Modifications

Field selectionbased on

company code

Master record

• Create• Change• Display

Field selectionbased onactivity

Field selectionbased on

account group

Master record functions

Additional assignmentsPostings

G/L accountfield status

group

Posting keyfield status

group

Posting functions

You can control document entry screens in the same manner as controlling the screens for master

record functions.

Note: posting transactions:

You can only control additional account assignments.

If you want to control screens based on accounts, choose the value in the G/L account fieldstatus definition (example: value date in bank accounts = required entry).

If you want to control screens based on transaction, enter the field status group of the postingkey (example: segment text always in outstanding receivables (posting key 06) = required

entry).



© SAP AG

Screen Modifications

Company code data Sales dataGeneral data

Activity category- Company code- Account group-related related field related field

field selection selection selection

Example: Customer Master RecordExample: Customer Master Record

Über zwei oder drei Feldauswahlen legen Sie fest, wie die Maske gestaltet ist.



© SAP AG

Screen ModificationsLink Rules - Master Records

?

OffOff

DisplayDisplay

RequiredRequired

OptionalOptional

Suppress Display Reqd Optn

Suppress

Display

Required

Optional

?

?

?

?

suppressed

displayed

displayed

displayed

Verknüpfungs-ergebnis

Fieldis

Display activitiesDisplay activities

?

suppressed

displayed

displayed

displayed

Verknüpfungs-ergebnis

Fieldis

Change activitiesChange activities

The pieces of field status information from the control tables are linked to one another in pairs.

Special rules are defined according to the above list for display and change activities.



© SAP AG

Screen ModificationsLink Rules - Posting Transactions

Field statusField status

Off Reqd Optn

Allocation

Text

:

Value date

:


Off Reqd Optn

Allocation

Text

:

Value date

:

Link rulesLink rules

Off Off Off

Off Reqd Reqd

Off Reqd Optn

Off

Reqd

Optn Off Reqd Optn

Value dateValue date ??

AllocationAllocation _ _ Text _ _

The pieces of field status information from the posting key table and from the G/L account master

record are linked with one another.

The final characteristic of a screen field is produced from the result of the link rules.



© SAP AG

AcTy From acct To acct Debit amnt Credit amt Curr.

S 100000 299999 123,456.78 123,456.78 U SD

Control Totals

1.2. Enter acct type, accounts, amounts and currency

3. Post documents

4.Com pare results with control totals

If you work with control totals, firstly add together all the documents you intend to enter using your

calculator.

Select the control total function from the general ledger menu within Financial Accounting and enterthe account interval and the total determined for all the documents for an account type.

Recommendation: If the documents include both customer and vendor invoices, you cangroup all the documents together into one line under the account type S (G/L accounts) usinga corresponding account interval.

Save the entry you have made and then enter all of your documents.

After entering all the documents, check the predefined control total with the total posted in the system.

If the system does not display any difference, delete your control total for the next entry.



© SAP AG

Summary Optional Functionality

In addition to the functionality you have seen previouslyin the course, the SAP system contains other useful useroptions which make your daily work with the systemeasier.

You can c onfigure and us e these functions from the verybeginning of your project. Alternatively, you can configurethem and enable your users to utilize them at any timeduring the project or after the production startup.

© SAP AG

Chapter Reporting





© SAP AG

Periodic processingPeriodic processing

Month-end closingMonth-end closingCreate balance sheetCreate balance sheet

Reporting

. . .

. . .

RFBILA00

Bal.sheet / P+L

RFBILA00

General reporting

Accountevaluations

Documentevaluations

Programdirectoryby category

AAAA

BBBB:

targeted call-up of

individual programsfrom the applicationmenu

general programdirectory by programcategory

If a list

is created for more than one company code

is required to be divided into more than one list

is created with the option “Execute and print”

the company code specifications, name and city are taken from table TLSEP



© SAP AG

Requesting A Report- Periodic processing

- Reporting

- Balance lists

- System- Services

- Reporting

List

Customer 1 - 999Company code 0001Op.items ky dt. DDMMYYBalance -

Acts recvble balances in LC

VAR1 Fr./to Opt. Typ Protec. Variable

Customer S X N1Comp.cd 0001 EQ S XOp.itms ky dt. P N2Balance S

VAR2

Customer 500/599 EQ S XComp.cd. 0001 EQ SOp.itms ky dt. P N2Balance S. . .

Variant for RFDSLD00

P ro gr.: R FD SL D00X Execute

. . . with variant VAR1

Variable

Name Type fr./to Option

N1 S 1 - 999 EQN2 P DDMMYY EQ. . .

A report can be called up either directly from the application menu or using certain system functions.

To run a report you can either enter the necessary parameters manually or call up a variant (a set of stored parameters).

You can protect the values entered in your variant ((P=parameters, S=select options) from beingoverwritten.

You can use a variable to include a parameter from a data area not evaluated by the report in yourparameters for the report



© SAP AG

Defining A Job

Immediately

Date / time

By job. . .

hourly

daily

weekly

monthly

other intervals

Printer

Spool request

Spool control

Cover sheets

Print format

Start date Repetition period Print details

Defining background processing

Job name SALDENLISTE

Program RFSSLD00

Variant SEMI

User name instructor

Target machine

Before you prepare a program to run in the background, you must create a variant for this program.



© SAP AG

Summary Reporting

The SAP system contains a wide range o f differentstandard reports which you can use for your evaluations.By specifying various parameters, you determine thecontent and scope of the lists that are generated by eachreport.

For reports that are run periodically you define a variantcontaining certain param eters. This ensures that thesereports all have similar structure/contents.

You can generate any of the reports either immediately orat a time you specify.

© SAP AG

Chapter Reporting





© SAP AG


Month-end closingMonth-end closingCreate balance sheetCreate balance sheet

Reporting

. . .

. . .

RFBILA00

Bal.sheet / P+L

RFBILA00

General reporting

Accountevaluations

Documentevaluations

Programdirectoryby category

AAAA

BBBB:

targeted call-up of

individual programsfrom the applicationmenu

general programdirectory by programcategory

If a list

is created for more than one company code

is required to be divided into more than one list

is created with the option “Execute and print”

the company code specifications, name and city are taken from table TLSEP



© SAP AG

Requesting A Report- Periodic processing

- Reporting

- Balance lists

- System- Services

- Reporting

List

Customer 1 - 999Company code 0001Op.items ky dt. DDMMYYBalance -

Acts recvble balances in LC

VAR1 Fr./to Opt. Typ Protec. Variable

Customer S X N1Comp.cd 0001 EQ S XOp.itms ky dt. P N2Balance S

VAR2

Customer 500/599 EQ S XComp.cd. 0001 EQ SOp.itms ky dt. P N2Balance S. . .

Variant for RFDSLD00

P ro gr.: R FD SL D00X Execute

. . . with variant VAR1

Variable

Name Type fr./to Option

N1 S 1 - 999 EQN2 P DDMMYY EQ. . .

A report can be called up either directly from the application menu or using certain system functions.

To run a report you can either enter the necessary parameters manually or call up a variant (a set of stored parameters).

You can protect the values entered in your variant ((P=parameters, S=select options) from beingoverwritten.

You can use a variable to include a parameter from a data area not evaluated by the report in yourparameters for the report



© SAP AG

Defining A Job

Immediately

Date / time

By job. . .

hourly

daily

weekly

monthly

other intervals

Printer

Spool request

Spool control

Cover sheets

Print format

Start date Repetition period Print details

Defining background processing

Job name SALDENLISTE

Program RFSSLD00

Variant SEMI

User name instructor

Target machine

Before you prepare a program to run in the background, you must create a variant for this program.



© SAP AG

Summary Reporting

The SAP system contains a wide range o f differentstandard reports which you can use for your evaluations.By specifying various parameters, you determine thecontent and scope of the lists that are generated by eachreport.

For reports that are run periodically you define a variantcontaining certain param eters. This ensures that thesereports all have similar structure/contents.

You can generate any of the reports either immediately orat a time you specify.

© SAP AG

Chapter Posting with Clearing





© SAP AG

Posting with Clearing

Ten Thousand 10,000

Advice note with check

xxx xxxxx x xxxxx

for account 100100

IR 1,000IR 6,000IR 3,000

Various

• selection options• sorting options• line layout variantscan be used in open itemprocessing.

Open Item Processing

OI1 1000 Discount 3%OI2 4000 Discount 3%OI3 6000 Discount 0%OI4 3000 Discount 3%OI5 1000 Discount 1%

Clearing is a transaction in which open items are indicated as being complete (cleared).

You can clear open items once an amount of equal proportion on the other side of the account can beapplied to them.

When carrying out the posting with clearing function, you make actual postings. For instance, you postan incoming payment and clear the invoices settled with that payment in a single transaction.

On the open item processing screen, you can select items in one or more accounts (“Other accounts”).

You can limit the list to specific open items by using the functions:Selection The system will propose important fields for selection. You define the values for these fields.

- Automatic search

The system will select items which match the amount you specify for the bank entry. Click the “Process open items” button to display the list of open items.



© SAP AG

Posting with Clearing

Accountcleared whenbalance = 0

New items arecreated for

• overpayment• underpayment• payment on acct• partial payment

Open item processing

OI1 1000 Discount 3%OI2 4000 Discount 3%OI3 6000 Discount 0%OI4 3000 Discount 3%OI5 1000 Discount 1%

If you post an incoming payment, you can clear the invoice(s) at the same time.

You can also enter a partial payment or post an outstanding receivable.



© SAP AG

Selecting Items for Processing

Document header

Bank account

Open itemsfrom account 100100100100

Other accountsAutomatic search

SelectionSelection

Posting date

Reference doc.

Document type

Currency

Item 1 Amount DiscountItem 2 Amount DiscountItem 3 Amount Discount

Clearing Amount Discount

Difference

ProcessProcess

open itemsopen items



© SAP AG

Process

Open Item Processing

- Item 1 Amount Discount %




+ Item 5 Field 1 Field 2 Field 3 Amount Discount %

Difference Clearing Amount Discount

+-

+*-*++--

123

Settings

Line layout

Doc./local currency

Gross/net

Commands on/offCommands on/off

DocumentDocument FindFindPostPost

On the “Settings” menu, you can choose, in the same manner as in line item display, a particular line

layout to control how the system displays the list of open items.

Within this list, you can display the entire document for individual items (by placing the cursor on thedocument number) or make further selections.

You branch to item processing via “Commands on” (settings in editing options). You now activate ordeactivate open items and edit cash discount terms.

Once the displayed difference is zero (or within the tolerance limit), clearing can be made (Post).

To process an item, you can also activate it by clicking the amount.

Clicking the cash discount amount or cash discount rate, you can directly edit these fields, for example,enter a different cash discount amount. The cash discount rate would then be adjusted automatically.

Editing options and processing commands make an optimal combination for processing open items.



© SAP AG

Item 1 Partial Payment 970.00 500.00Item 2 1,000.00 1,000.00

Amount entered 1,500.00Assigned 1,500.00On accountDifference 0

Partial Paym ent

Item 1 1,000.00 30.00 3%

Item 2 1,000.00

N et am ou nt P ay ment am ount

Amount entered 1500Assigned 1970On accountDifference 470

Document

Partial pmnt screen

Standard screen

Residual item screen

Goto

40 Bank 1,500.0015 Customer 500.0015 Customer 1,000.00

A partial payment can be made for one or more items (see above example).

In the example, item 2 is being clearing and a partial payment is being entered for item 1. Item 1 is notcleared.

The system uses the “Invoice reference” and “Allocation” fields to assign the partial payment to theinvoice.



© SAP AG

Item 1 Residual Item 970.00 500.00


40 Bank 485.0006 Customer 500.0040 Customer cash discounts 1,000.0015 Customer 1,000.00 -

Residual Items

Item 1 1,000.00 30.00 3%

N et am ount P aym ent am ount


Document

Partial pmn t screen

Standard screen

Residual item screen

Goto

When you post an outstanding receivable, the original open item is cleared.

How much cash discount can be applied to the item and what payment terms are used for the itemdepend on the tolerance group of the customer or vendor.



© SAP AG

Clearing with Exchange Rate Differences

InvoiceInvoice PaymentPayment

Rate 2,0 Rate 2,5

1,000 USD 1,000 USD2,000 DEM 2,500 DEM

500 DEM

Posting

Exchange R ate DifferenceExchange Ra te Difference

If you post an invoice in foreign currency and clear it in the foreign currency as well, the system will

automatically post any exchange rate differences.

You can clear the invoice in local currency but will have to enter the exchange rate differencemanually.



© SAP AG

Clearing in a Third Currency

FC1 LC

15004/1 1000

Invoice in FC1

FC1 LC

4/15 1000 1400

Expense: LC ERD

100

Amountpaid in

LC 2

Amountpaid in

LC

690 1380

Payment in LC2

120

Expense: FC2 URDExpense: FC2 URD

Expense: LC URDExpense: LC URD

1010

2020

AmountAmountcalculatedcalculated

in FC2in FC2

700700

You can carry out manual clearing in any currency you like.

The system translates the amount for all selected open items to the clearing currency.It translates this amount to the local currency and then from the local currency to the clearing currency.This means that to clear across currencies, you need to make an additional entry in the exchange ratetable.

Example:4/1 Invoice 1000 FC1 = 1500 LC [rate 1.5]

4/15 Invoice 1000 FC1 = 1400 LC = 700 FC2[rate 1.4] [rate 2.0]

Payment 690 FC2 = 1380 LC [rate 2.0]Total difference 120 LC

(ERD) Exchange rate difference 100 LC(URD) Unrealized deductions 10 FC2 = 20 LC



© SAP AG

11

Clearing between Customer and Vendor

Customer invoice 10,000 3% Cash discountVendor invoice 4,000 2% Cash discountCustomer payment 930Clearing between -

Customer - Widgets Inc. Vendor - Widgets Inc.

930 4,000

5,000 9,070

80

150

22

33

44 11 33

11

44

33

44

44 22

44

44

10,000 4,000

Sales discounts

Purchase discounts

Any difference that exists can be carried forward as a new open item.

Cash discount depends on the effective rate of each item.

Example:1.) Outgoing invoice for 10,000 - 3% cash discount - without tax2.) Incoming invoice for 4,000 - 2% cash discount - without tax3.) Payment on account for 9304.) 1.) cleared with 3.): Outstanding receivable equals 5,000.



© SAP AG

Fast Entry: Incoming Customer Payments

Specifications for the following incoming payments _______________

Company codePosting dateBank accountBusiness areaSpecial G/L ind.

Docum ent typePosting period

Default data for the following incoming payments _________

CurrencyReferenceDocument dateValue date

Additional input fields ____________________

Selection by dateReference numberBank charges

The specifications you enter are valid for all the following incoming payments you enter until you

delete the specifications or overwrite them.

You can overwrite default data on the entry screen templates.

If you require additional input fields, select them here.

Click the Enter payments button, to display the screen template for entering incoming payments.

If you keep these specifications, this screen is no longer displayed. To delete or change thespecifications, navigate back to this screen by choosing Goto -> Specifications or pressing F3.



© SAP AG

Incoming Paym ents Fast Entry

Payment details _____________________________________

CustomerAmount

Docum ent dateAmount in LCValue date::

::

Line items paid _________________________________________

Doc / Reference Amount

:: ::

On the Incoming Payments Fast Entry screen, you enter the data for the incoming payments. Items

that match the selection criteria are activated and displayed on the open item processing screen first.

If there is a perfect match for clearing, you can post those items directly on the open item processingscreen.



© SAP AG

Tolerance Groups

Tolerances for user groups

Upper limit for user groups

Permitted payment differences

Tolerances for user groups

Specifications for clearing procedures

Permitted payment differences

Details for posting residual items resulting from payment differences

Allocation of accounting clerks to tolerance groups

Allocation of accounting clerks to tolerance groups

You allocate every employee to a user group. For each user group, you define permitted payment

differences and upper limits for posting procedures.

Using the master record field Tolerance group, you allocate each customer or vendor to a group of business partners.

Tolerance specifications for users and for business partners are linked to each other.



© SAP AG

Tolerance Groups for Users

Tolerances for usersUpper limit for posting procedures

C ash d isco unt per lin e item 5.000%

Invoice 1000 1000

Cash discount 30 30

Incoming payment 960 940

Difference 10 30

Cash discount 40 /

If the payment difference is too big, than an automatic adjustment cannot be made to the cash discount.

In this case, the user can either:

• make a manual cash discount adjustment,

• post a residual item,

• post a partial payment,

• deduct cash discount from the payment,

• or write off the difference manually.



© SAP AG

Tolerance Groups for Business Partners

Tolerances for business partnersPermitted payment differences

Revenue 10

Expense 5

1.0% 2

1.0% 2

Tolerances for usersPermitted payment differences

Revenue 50

Expense 10

1.0% 2

1.0% 2

Invoice(s) 1000 1000 1000

Cash discount 30 30 30

Incoming payment 969 967 960

Difference 1 3 10

Cash discount: 31 30 /

Unrealized cash discount: 3 /

The above illustration shows three examples of how the system automatically adjusts cash discounts

when there are payment differences.

Tolerance values for users and business partners are linked with each other using a “AND” logic.

Users who are not allocated a user group work with the tolerance specifications for user group '____'.

Customers or vendors not allocated a tolerance group will have the tolerance specifications for usergroup '____'.



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Account

ClearExample of a bank clearing account

Checks receivable

1000 1000

Item is cleared

If there are debit and credit items in an account that can be allocated to each other and therefore

cleared, you can carry out this function by choosing:

Account

Clear

You can use this Clearing function for customer and vendor accounts as well as G/L accountsmanaged on an open item basis.



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Summary:Posting with Clearing

There are a number of selection and sorting functions

for processing open items.

Many types of posting are made by the system using

automatic account determination and posting facilities.

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Chapter Automatic Dunning - Operating TheDunning Process





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How Dunning Works

Dunning program

OI 1OI 2OI 3:

OI n

Overdue item(s)Name, address, bankdetails (optional)

Master record

Payment termsPayment methodDunning method

bi-weeklybi-weekly

4 levels4 levels

::

Configuration:

2nd d .notice2nd d.notice

1st dunning1st dunning

noticenoticeCustomer/vendorCustomer/vendor

Goods 1, invoice 1

Goods 2, invoice 2

Receivable 3

Receivable n

Der Geschäftspartner erhält die Mahnungen entsprechend der Überfälligkeit der Posten.

Über die Tabelle " Buchungskreisdaten" im Customizing steuern Sie, ob pro Mahnlauf

ein Mahnschreiben (Stufe enspricht der Stufe des ältesten, nicht zum Mahnen gesperrten Postens)oder

ein Mahnschreiben je Mahnstufe der Postenerstellt wird.

Wann wieder gemahnt wird, hängt von der Periodizität des im Stammsatz hinterlegten Mahnverfahrensund dem Datum der letzten Mahnung (Stammsatz) ab.

Die aktuelle Mahnstufe wird aus den Posten ermittelt. Die letzte Mahnstufe im Stammsatz hat darauf keinen Einfluß. Sie hat nur informativen Charakter.

Die Mahnstufe und das letzte Mahndatum werden nach einem Mahnlauf im Stammsatz aktualisiert.



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Customer/vendormaster record

Document Basic parameters Current settings

Key Values For The Payment Program

General dataGeneral data- Address- Address

- Control- Control- Pym t transactions- Pymt transactions

- Company code- Company code

datadata- Acct management- Acct management

- Pym t transactions- Pymt transactions

- Correspondence- Correspondence

Cash disc.fldsCash disc.fldsPymt methodPymt method

Pymt blockPymt blockBank detailsBank details

Item selectionItem selectionBank selectionBank selection

Pyt meth.selectionPyt meth.selectionMinimum amountsMinimum amounts

Planned amountsPlanned amounts

. . .. . .

Payment datePayment dateAccount selectionAccount selection

Company codeCompany codeselectionselection

Next payment dateNext payment date

. . .. . .

Über die Aussteuerung der Konten nehmen Sie Einfluß, welche Debitoren/Kreditoren gemahnt werden

können. Voraussetzung sind:

Korrekte Anschriftsdaten, da die Mahnungen in Briefform erstellt und i.a. mit der Post verschicktwerden.

Ein gültiges Mahnverfahren.

Keine Einzugsermächtigung (liegt Einzugsermächtigung vor, können nur die zum Regulierengesperrten Posten gemahnt werden).

Sie können nur offene Posten mahnen, die überfällig sind.

Im Customizing-System stehen Ihnen eine Reihe von Tabellen für die Aussteuerung der Mahnverfahrensowie deren Mahnstufen zur Verfügung.

Beim Starten des Mahnprogrammes grenzen Sie die zu mahnenden Belege, Konten undBuchungskreise ab.



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Master Record - Dunning Data

Dunning proced.

Dunning recipient

Last dunned

Dunning c lerk

0001 Dunning block

Leg. dunn. proc.

Dunning level

Grouping key

Dunning areas

Dunning data

Mahnverfahren: Sie definieren und steuern es aus im Customizing; beliebig viele

Mahnverfahren sind möglich (è Customizing).

Mahnempfänger: Soll die Mahnung an einen abweichenden Empfänger gehen (z.B.Konkursverwalter), legen Sie diesen als Debitor an und hinterlegen dieDebitoren-Stammsatznummer.

Mahnsperre: Über einen (zuvor im Customizing definierten) Eintrag können Sie das Kontozum Mahnen sperren. Sie können die gleichen Kennzeichen zum Sperren vonPosten und Konten verwenden (è Customizing).

Gerichtl. Mahnen: Sie tragen hier manuell das Datum ein, an dem ein gerichtliches Mahnverfahreneingeleitet worden ist. Es werden dann keine Mahnungen mehr für den Partnererstellt, sondern nur noch interne Mitteilungen.

Letzte Mahnung, Hier wird durch das Mahnprogramm das Datum der letzten Mahnung hinterlegtMahnstufe: sowie die entsprechende Mahnstufe.

Sachb. Mahnung: Sie tragen die Nummer des zuständigen Sachbearbeiters ein.

Gruppierungs- Diesen Schlüssel können Sie frei definieren und damit festlegen, welche Postenschlüssel: in einer Mahnung zusammengefaßt werden (è Customizing).

Mahnbereiche: Sie hinterlegen, welche Mahnbereiche bei diesem Konto zum Tragen kommenkönnen. Pro Beleg geben Sie dann den jeweils zutreffenden Mahnbereich ein.Die Definietion des Mahnbereichs im Buchungskreis sowie die Festlegung, daßMahnungen je Mahnbereich erfolgen, hinterlegen Sie im (è Customizing).



© SAP AG

Dunning Run

MasterMaster

recordrecordDocumentsDocuments

DunningDunningdatasetdataset

Current

settings

Basic

parameters

- Run -

- Print -

Process

Dunn.level Dunn.block

Test print

Dunningnotices

Dunn.lists

With the execution of the dunning program, you receive a dunning proposal which can be edited. You

have the option of setting dunning levels in the items lower as well as blocking or unblockingindividual items from dunning. The changes are logged and can be printed if necessary. However, theydo not cause any database changes to the documents.

After you have executed the “Print ” function, dunning notices are created and the dunning date andlevel are stored in the accounts and documents.

With the “Sample printout ” function, you can create dunning notices without updating the database foraccounts and documents. In this way, you can print repeatedly, using other forms if necessary.



© SAP AG

Control Specifications

Status

Maintain

Run date

Identification

01/15/1996

xyz

Additional log Selection c riteria Copy

Issue date

All docs posted by

01/15/1996

01/10/1996

Company code

1000

Custom ers (to/from ) Vendors (to/from )

Parameters let you control which items in which accounts are to be dunned.

If you select the " Exclude values " function, you will have selection criteria for accounts and/ordocuments in addition to specifications for field name and values.



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Dunning Run

Status

Run date

Identification

01/15/1996

xyz

Dunning selection job is finished

Dunning run

Printdunn.notices

Display logChange dunn ing noticeChange logLists

- dunn. statistics- dunning list- blocked accts- blocked items

ScheduleDisplay logTest print

You can change the dunning proposal that is generated (è next page).

The dunning selection is logged (è TRACE).If necessary, there is a log of changes to the dunning proposal, and, if executed, a log for the printing of the dunning notice.

Dunning statistics are always created in addition to a list of blocked accounts and/or items, if they exist.



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Processing The Dunning Proposal

Specifications from to

CustomerVendorCompany code

:

Change dunning notices

List

Totals

Due items 5,000Blocked items 1,000Blocked, not due 0Balance 10,000

Customer 1 Dunninglevel 2

. . . Arrs Cl LvLv BlBl . . .Item 1 . . . 35 1 22 _ _

Item 2 . . . 10 0 _ _ AA: :: ::

You can process the generated dunning proposal in its entirety (without using any delimiting options)

or in sections.

You can set new item dunning levels (St) at lower levels. In addition, you can set or take off a blockingreason (Sp).

You can call up totals for each account informatively.

Changes are logged and can be printed out if necessary.



© SAP AG

Status

Run date

Identification

01/15/1996

xyz

Parameters have been entered

Printing Dunning Notices

Schedule print

Status

Dunning run scheduled for 01/15/1996 at 18.00:00Dunning run is finishedPrint d.notices scheduled for 01/15/1996 at 20:00:00Dunning notices printed

Start date

Start time

Start immed .

Printer

01/15/1996

HH:MM:SS

You can define the output (printing) time for dunning notices. Either specify a start time or click on the

“Start immediately” line.



© SAP AG

Customer - Vendor Clearing

Vendor

Clear withvendor

Dunning proc.

B

X

AAAA


Customer ACustomer A

Debitor

Clear withcustomer

Dunning proc.

A

X

AAAA


Vendor BVendor B

Dunning n otice:Dunning no tice:LevelLevel

Item 1Item 1 40,00040,000 22

Item 2Item 2 10,00010,000 11

Item 3Item 3 -20,000-20,000 22

TotalTotal 30,00030,000


40,00040,000

10,00010,000

Vendor BVendor B

20,00020,000

If you have both vendor and creditor relations with one organization, store the vendor number in the

customer master record and vice versa. Store the same dunning procedure in both master records.

This ensures that dunning will only occur in the event of a common debit balance.

Customer documents must have exceeded the due date for net payment.

Vendor documents are balanced against the dunning volume of the highest dunning level.



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Summ ary Automatic Dunning -Operating the Dunning Process

The dunning procedure is determined for the dunning runon the basis of the dunning data from the custom ermaster record.

Depending on your specifications, the program selectsonly overdue items or all open items.

The dunning proposal run can be processed online. Afterthe dunning notices are printed, the dunning-relevant datain the document and the customer master record isupdated.

© SAP AG

Chapter Automatic Dunning - DunningProgram Configuration





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Configuring The Dunning Program

Dunning ProcedureDunning Procedure

Dunning Procedure

Dunn. proced. Minimum amnts Dunn.charges Dunn. texts

Company code data Sort fields Dunning texts

Dunning areas Dunning keys Dunning block reasons

Interest Dunning groups

You define a number of dunning levels (1-9), minimum amounts, dunning charges, and the dunning

text for a dunning procedure.

You also make general specifications for all dunning procedures when you store company code data,sort fields, and sender specifications.



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0001 Vierstufige M ahnung, 14-tägig

ProcedureProcedure DescriptionDescription

Maintaining The Dunning Procedure: Overview

General data

Dunning interval in daysNumber of dunning levelsTotal due items from dunning levelMinimum no.of days in arrears (account)Line item grace daysInterest indicatorPublic holiday calendar IDDunning standard transactionsDunning special G/L transactions

Reference data

Reference dunning procedure for texts 0001

144

103

SelectSelect

The dunning procedure is a four-figure alphanumeric term.

The most important parameters are the dunning interval (frequency), the number of dunning levels,grace values, and defining which items may be dunned.

The field Dunning of Special G/L Transactions is activated when you have activated at least onespecial G/L indicator from the list of special G/L transactions.



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Dunning Levels

Days in arrs/interest

Days in arrears 2 16 30 44

Dunning procedure 0001Description Four-level dunning, bi-weekly

Dunning level 1 2 3 4

Calculate interest?

Print parameters

Always dun

Always dun

Always dun 10

X X

Using days in arrears, you define when an account gets the next dunning level. The interval can be

larger than or the same as the dunning interval.

The “Keep dunning” indicator allows you to force a dunning notice when the dunning interval has beenreached for an unchanged dunning proposal. This gives you monitoring capability for accounts that areinvolved in a legal dunning dispute.

If you wish, you can print all items (that is, also those that are not yet due).

You can set a payment period to be placed in the dunning text. By entering a holiday ID in the dunningprocedure control, you can ensure that it does not fall on a weekend or holiday (see previousillustration).



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Minimum Amounts

Dunn.level M inim um am ount M inim um %. M in.am ount Interest

D un nin g p ro ced. 0001

Descrip tion Fou r-level dunning, bi-weekly

1 1,00 1,00 USD

2 2,00 5,00 USD

3 5,00 10,00 USD

4 10,00 10,00 USD

Dunn. balance Level 1Level 1 9,0009,000

Dunn. balance Level 2Level 2 950950

Dunn. balance Level 3Level 3 5050

Account balanceAccount balance 20,00020,000

Highest possible dunning level: 2Highest possible dunning level: 2

You define minimum amounts in terms of currency. If an account manages only open items in one

currency, the system uses your default entries for minimum amounts in that currency. Otherwise, thedefault entries are used in local currency.

If a dunnable balance exceeds the minimum amount of a dunning level, the corresponding dunninglevel is activated.

If a dunnable balance exceeds the value produced by “Account balance* minimum percentage of

dunning level,” the corresponding dunning level is activated.

In this way, you can prevent trifling amounts from causing a dunning notice or very small amountsfrom obtaining a high dunning level.

If you have activated calculation of interest for a dunning level (è dunning levels), interest rates are

only output when the minimum amount of interest is exceeded.



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Dunning Charges

Dunn.level Minimum amount Dunning charge Dunn.charge %

D un nin g p ro ced. 0001

Description Four-level dunning, bi-weekly

1 10 5.00 USD

2 10 10.00 USD

3 10 15.00 USD

4 10 15.00 USD

1 100 10.00 USD

4 100 20.00 USD

You define dunning charges in terms of a currency. If an account manages only open items in a

currency, the system uses your default entries for dunning charges in that currency. Otherwise, thesystem uses local currency for your default entries.

Within one dunning level, you can define dunning charges in terms of the dunning amount.

If you store the dunning charge in a percentage, the total of all overdue items in this account aremultiplied by this percentage to produce the dunning charge.

You cannot enter both a fixed dunning charge and a dunning charge in apercentage at the same time.



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Interest Rates

InterestInterest

Interest ind. Curr. Valid from Debit% Credit%

01 USD 01/15/1996 9.25 6.00

You can store an interest indicator for each dunning procedure. If another interest indicator is already

stored in the master record, it has higher priority.

In the above table, you can store daily debit and credit percentages for each interest indicator andcurrency.

Dunning charges and interest rates are printed, but not posted by the dunningprogram if the appropriate settings are made.



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Dunning Texts

D un nin g p ro ced . 0001

Description Four-level dunning, bi-w eekly

Company code 1000

Account type DDunn.level Area Form List name

Standard dunning procedureStandard dunning procedure

11 Y150_DUNN_01Y150_DUNN_01 LIST1SLIST1S



44

Y150_DUNN_02Y150_DUNN_02

LIST4SLIST4S

...... . . .. . .

Legal dunning procedureLegal dunning procedureY150_DUNN_03Y150_DUNN_03 LISTXSLISTXS

You define a form type for each dunning level, and you can link several dunning levels using the same

form type.

“Legal dunning procedure” requires a separate form.

You define the forms using SAPscript.

You will need different dunning forms if you use dunning procedures that differ in terms of:

number of dunning levels

line layout for items

number of totals lines.



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Company Code Dunn per Separate dunning Reference comp.dunning a rea no tice per dunn.leve l code for tex ts

Company Code Data

X10001000

20002000

30003000

40004000::

X10001000

X X20002000

X X30003000

X X40004000

Company Code Data

Using company code data, you specify whether separate dunning notices should be created for each

dunning level and dunning area (if you use dunning area).



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Sort Fields

Dunn.letters/Dunn.List

Prior. Field name Offset Length. .

1 MHNK-BURKS Company code 42 MHNK-MAHNS Dunning level 1: :

Dunning items

Prior. Field name Offset Length. .

1 MHND-FAEDT Net due date 82 MHND-BLDAT Document date 8: :

Sort meth.Descending

In the sort fields, you define how dunning notices or the items within a dunning notice are to be sorted.

You can store up to five sort fields respectively.



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Block Text

Dunning Block Reasons / Dunning Keys

X

A

B

Dunning Block Reasons

Manual block reason B

Manual block reason A

Dunn.key Max. level Print sep. Text

Dunning Keys

X

Level 1

Level 2

Payment made

1

2

Z

1

2

You can use dunning block reasons for documents and sub-ledger accounts.

You use dunning keys to indicate special documents (such as residual items that should not activatehigher dunning levels).



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Defining Dunning Areas

CoCd. Area Text

1000

1000

Dunning Areas (Definition)

01

02

Domestic customers

Customers abroad

Dunning areas stand for organizational units like sectors, products, or sales organizations.

To create dunning notices for each dunning area, proceed as follows:

1. Define all dunning areas required for a company code in the above table.

2. Set the “ Dunning notice per dunning area” indicator in the "Company code data" table.

3. Store the applicable dunning areas in the corresponding master records.

4. Enter the appropriate dunning area in the document.



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Grouping Key

Grouping key

Description

Text

Application of rule

for customers

for vendors

Fields for g rouping payments

Field 1

Field 2

Field 3

Name Meaning Offset Length

If you want to dun the open items of a business partner as a group from certain standpoints, create

corresponding grouping keys.

For each key, you may include one or two fields from line items.

Store the corresponding grouping key in the master record of your business partner.

Items whose content is the same in these fields are dunned as a group.

You can apply dunning areas and grouping keys together.



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Sender Specifications

Area Header Footer Signature Sender

Company Code 1000

F_0001_HEADERF_0001_HEADER F_0001_FOOTERF_0001_FOOTER F_0001_SIGNATUREF_0001_SIGNATURE F_0001_SENDERF_0001_SENDER

0101 F_0101_HEADERF_0101_HEADER F_0101_FOOTERF_0101_FOOTER F_0101_SIGNATUREF_0101_SIGNATURE F_0101_SENDERF_0101_SENDER

0202 F_0001_HEADERF_0001_HEADER F_0001_FOOTERF_0001_FOOTER F_0001_SIGNATUREF_0001_SIGNATURE F_0001_SENDERF_0001_SENDER

IDES Inc.

If you dunn according to dunning areas within a company code, you can feed various standard texts

into the dunning forms.

You define standard texts using SAPscript.

You define standard texts for each company code/dunning area.



© SAP AG

Dunning Run

MasterMaster

recordrecordDocumentsDocuments

DunningDunningdatasetdataset

Current

settings

Basic

parameters

- Run -

- Print -

Process

Dunn.level Dunn.block

Test print

Dunningnotices

Dunn.lists

The dunning program selects dunnable accounts and their items and saves this information to databases

MHNK, MHND and F150D.

MHNK contains master record information.

MHND contains document information.

F150D contains totals specifications from the respective account master data.

The print program takes its information from databases MHNK, MHND, and F150D. It also has accessto master record tables, document tables, and control tables.



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Summary Automatic Dunning -Dunning Programm Configuration

The dunning procedure contains specifications ondunning levels, intervals, charges, interest on arrears,forms (dunning notices) and the param eters governing theprinting of dunning notices.

You ca n configure the dun ning parameters differently foreach of your company codes

All the forms and standard texts are language-dependent.This means that you must translate your own company-specific texts into each of the languages that you require.

© SAP AG

Chapter Automatic Payments - Operating ThePayment Programm





© SAP AG

Possible Paym ent Methods

Payment m ethods for outgoing pymts

C Check ( incl . check management)

K Bank check for payments abroad

L Paym ents abroad

O Order check

P P osta l g iro transfe r

R E U in te rn al trans fe r

S Check

T C heck/b ill of exch an ge

U Bank transfer

V Clearing (w ith in group)W Bill of exchange (outgoing pymt)

Pyt methods for incoming pyts

A Ba nk direct deb it

E Ba nk co llec tion



© SAP AG

Process

MasterMaster DocumentsDocuments

Print datasetPrint dataset

Currentparameters

Paymentcontrol

Proposal run

Print program

Processproposal

Proposal datasetProposal dataset

Paym.advice

Accomp.list

Check

Paymentmedium

BankBanktransfertransfer

Payment runPayment run

You can use the payment program to settle both outgoing payments and incoming payments, based on

the open, due items from customer and vendor accounts.

The payment program has the following functions:

automatic selection of the items to be paid and the exceptions (for example, blocked items)

creation of payment lists and logs

creation of payment documents (customer/vendor)

creation of payment media (forms, payment advice notes, diskettes).

You generally carry out a payment proposal run first of all. In this case, a proposal dataset which canbe processed before the production run is created.

Companies which pay daily often do without proposal runs. A return call to the bank prevents anyunwanted payment transactions.



© SAP AG















. . .. . .




. . .. . .

The account determination keys for automatic payments are:

master record information,

document information,

payment parameters,

current control for the payment program.



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Master Record: Customer/Vendor Bank Details

Pyt transactions

Alternative payee Payee in document

DME indicatorInstruction key

PBC / POR number

Bank details

Ctry Bank key Bank acct CK BnkT Ref. details Collection.

US 67292200 987653

Volksbank Wiesloch

Bank data. . . Delete bank details

You can define as many bank details as you wish for each customer/vendor master record. The exact

address and possibly also the SWIFT code must be maintained for each bank. This data can beimported by means of programs. The bank directory is updated automatically during manual entry(also see the chapter on “Bank master data”).

If you have maintained several bank details for one customer/vendor, you should also fill in the“BTyp” (partner bank type) field. By entering the corresponding partner bank type, you determinewhich customer/vendor bank detail is used to settle the respective item at document level.

You can create alternative payees as master records in the system and enter this number in the

company code or client segment. If you flag “Payee in document”, then you can trigger a furtherscreen template for an alternative payee when posting.



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Master Record: Parameters For Automatic Payment Transactions

Outgoing paymentsOutgoing payments

Incoming paymentsIncoming payments

_ A Bank direct d eb it _ E Bank co llect ion

Payment dataPayment terms

Automatic payment transactions

Payment methods

Alternative payee

Individual paym ent

Clear with customer

Pymt block

House bank

SU

F4

_ P Po stal checkX S CheckX U Trans fer

You specify which payment methods are supported for an account in the customer/vendor master

record. The possible payment methods have already been defined in the system.

For credit balances, you can sometimes specify both the payment method for the incoming payment(such as a bank direct debit) as well as for the payment (such as a bank transfer) in the customermaster record.

If you specify, for example, several payment methods for an outgoing payment, it depends on thecurrent settings for the payment program as well as on the tables in customizing as to which paymentmethod is chosen.



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Document: Key Values

Amount

Cash discount base Cash disc.amnt

Payment terms ZB01 Days / perc.. 14 / 3.000 30 /

Baseline date Fixed

Payment block

Payment method

House bank

Partner bk type

further data

The payment program settles open items (outgoing payments) which have to be paid straight away,

since otherwise by the time it comes to the next payment run either

the cash discount will have expired or

the due date for net payment will have been exceeded.

In principle, customers take cash discount when paying using a debit memo procedure. A payment isnot made until just before the end of the period for the highest discount.

You can define as from which percentage rate cash discount is to be considered by making individual

specifications in the system.

Depending on the settings in the master record, you can determine

whether an item is to be paid and

which payment method (check, bank transfer...) is to be chosen

by using the “Payment block” and “Payment method” fields.



© SAP AG

Control Specifications: Parameters

Run date 01/15/1996Identification xyz

Posting date 01/15/1996

All docs posted by 01/14/1996

Company code Payment methods Next posting date

0001 US 01/22/1996

Vendors (from/to) Customers (from/to)1 9999 1 9999

Additional

log

TRACE

MaintainMaintain

Status

No param eters yet entered

The payment program selects the items to be paid based on the “Next posting date” entry in

conjunction with the terms of payment for the items.

You can request an “Additional log” for test purposes when processing the parameters.

Use the “Copy” function if the parameters are similar to those used during a previous run.



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Control Specifications: Proposal Run


StatusParameters entered


Paymen t proposal created

Schedule proposalSchedule proposal

Start dateStart date 01/15/199601/15/1996

Start timeStart time HH:MM:SSHH:MM:SS

Start imm ed.Start imme d.

Target machineTarget machine

The payment proposal is run in the background where you can also choose to execute it immediately.

The status shows you the current state of the payment proposal job.

You can do without the proposal run and start the payment run straight away.



© SAP AG

Control Specifcations: Payment Proposal

ProposalProposaldatasetdataset

ProposalProposal

listlistExceptionException

listlist

ProposalProposal

loglogTRACETRACE

Payment s ettlement list

Amounts by business areaAmounts by country

Amounts by currency

Amounts by payment method

Amounts by bank

List ofblockedaccounts/items

Job log

• Check due date• Pyt method selection• Payment documents

Process

The payment proposal generates the total list and partial lists according to different criteria.

If there are blocked accounts or items, then exception lists are generated.

If you have requested an additional log, then you are informed in detail about the individual steps of the payment run.



© SAP AG

Control Specifications: Processing The Proposal

Doc.Doc. CoCdCoCd Curr.Curr. TermsTerms CshDsctCshDsct AmountAmount

Doc. 1Doc. 1 10001000 USDUSD 33 30 0300 10,00010,000

::

Doc.nDoc.n

Paymen ts/ ExceptionsVendor Custmr BuAr Itm PM House bk Cur CshDsct Amnt

Acct 1 1 * * * Exceptions * * *Acct n 1 U CITB USD 300 9700. . . . . . . . . . . . . . . . . . . . .

ChangeChange SelectionSelection

Change line itemsChange line items

Pymt methodPymt method U

House bankHouse bank CITB GIRO

Due dateDue date 01/15/1996

Payment blockPayment block

Payment termsPayment terms

::

Acct selected Reallocate

You can change the payment method, the house bank (bank ID and account ID) and the due date forthe account on which you have positioned your cursor using the “Change” function.

You can view the items selected by the proposal run using the “Choose” function. The followingediting options refer to one item in each case.

You have the following editing options at item level:

set / remove payment block

select a different cash discount line

make a new allocation regarding payment methods, house bank or due date.

All changes are taken into consideration by the payment program but are not recorded in the masterrecord or document.



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Control Specifications: Payment Run

Status Parameters enteredPayment proposal createdPayment proposal releasedPayment run started

Posting orders: n generated, n com pletedPaymen t run completed

Schedule paymentSchedule payment

( )


Status

Parameters entered


Start dateStart date 01/15/1995

Start timeStart time HH:MM:SS

Run immed.Run immed.






© SAP AG

Control Specifications: Printing Payment Media

Bank transfer

Paymentsummary

Euroscheck

Check

PaymentPayment

datasetdataset

Program run dateProgram run date 08 June08 June

IdentificationIdentification XYZXYZ

::

Paying company codePaying company code 00010001

::

No.of test printsNo.of test prints _ _

PrintPrint

PaymentPayment

listlist

Exception listException list TRACETRACE

Documents25 vendors50 outgoing cash

Program RFFOD_ _X

Py.Adv.

File TransferFile Transfer

You can integrate printing of the payment media, payment advice notes and payment summary

information into the payment run. To do this, you must specify variants for the print programs (->following page).

You can also start the print programs directly from the system menu. To do this, you must also enterthe program run date and the identification.



© SAP AG

Print Programs - Variants

P rin t prog. Requ ested variants

BK1000

BK1000

:

RFFOAVIS

RFFOD__X

:

List report Requested variants

Sach01

:

RFZALI00

:

The system proposes the print programs based on the payment methods from the payment run.

You store pre-defined variants for the individual programs.

You can only start printing the payment media from the payment menu if you have allocated a variant.

In addition, you can include printing of the payment lists or exception lists.



© SAP AG

Customer/Vendor Clearing

Vendor

Clear with vendor

B

X



Customer

Clear withcustomer

A

X


Vendor BVendor B

Payment:Payment:

Item 1Item 1 25,00025,000

Item 2Item 2 -10,000-10,000



10,00010,000

Vendor BVendor B

25,00025,000

If a company is both a customer and a vendor, you can offset the receivables against the payables

using the payment program.

To do this, you must make sure that the other account number has been entered in the respective“Customer” or “Vendor” field and that both master records have been set up in exactly the same wayas regards payment transactions.



© SAP AG

Summary: Automatic Payment -Payment Program

If you want to settle an account automatically, the addressdata and/or bank data must be correct depending on thepayment method.

You can store several payment methods in a m asterrecord.

The payment method used dep ends on the currentsettings for the paym ent program and the customizingtable settings.

The open items due are settled. A different logic is appliedto Accounts Payable/Accounts Receivable.

The payment program generates the payment documents

and the dataset for creating the payment transfer media. Creation of the payment transfer media can be integrated

into the payment run or performed subsequently.

© SAP AG

Chapter Automatic Payments - Operating ThePayment Programm





© SAP AG

Possible Paym ent Methods

Payment m ethods for outgoing pymts

C Check ( incl . check management)

K Bank check for payments abroad

L Paym ents abroad

O Order check

P P osta l g iro transfe r

R E U in te rn al trans fe r

S Check

T C heck/b ill of exch an ge

U Bank transfer

V Clearing (w ith in group)W Bill of exchange (outgoing pymt)

Pyt methods for incoming pyts

A Ba nk direct deb it

E Ba nk co llec tion



© SAP AG

Process


Print datasetPrint dataset

Currentparameters

Paymentcontrol

Proposal run

Print program

Processproposal

Proposal datasetProposal dataset

Paym.advice

Accomp.list

Check

Paymentmedium

BankBanktransfertransfer

Payment runPayment run

You can use the payment program to settle both outgoing payments and incoming payments, based on

the open, due items from customer and vendor accounts.

The payment program has the following functions:

automatic selection of the items to be paid and the exceptions (for example, blocked items)

creation of payment lists and logs

creation of payment documents (customer/vendor)

creation of payment media (forms, payment advice notes, diskettes).

You generally carry out a payment proposal run first of all. In this case, a proposal dataset which canbe processed before the production run is created.

Companies which pay daily often do without proposal runs. A return call to the bank prevents anyunwanted payment transactions.



© SAP AG















. . .. . .




. . .. . .

The account determination keys for automatic payments are:

master record information,

document information,

payment parameters,

current control for the payment program.



© SAP AG

Master Record: Customer/Vendor Bank Details

Pyt transactions

Alternative payee Payee in document

DME indicatorInstruction key

PBC / POR number

Bank details

Ctry Bank key Bank acct CK BnkT Ref. details Collection.

US 67292200 987653

Volksbank Wiesloch

Bank data. . . Delete bank details

You can define as many bank details as you wish for each customer/vendor master record. The exact

address and possibly also the SWIFT code must be maintained for each bank. This data can beimported by means of programs. The bank directory is updated automatically during manual entry(also see the chapter on “Bank master data”).

If you have maintained several bank details for one customer/vendor, you should also fill in the“BTyp” (partner bank type) field. By entering the corresponding partner bank type, you determinewhich customer/vendor bank detail is used to settle the respective item at document level.

You can create alternative payees as master records in the system and enter this number in the

company code or client segment. If you flag “Payee in document”, then you can trigger a furtherscreen template for an alternative payee when posting.



© SAP AG

Master Record: Parameters For Automatic Payment Transactions

Outgoing paymentsOutgoing payments

Incoming paymentsIncoming payments

_ A Bank direct d eb it _ E Bank co llect ion

Payment dataPayment terms

Automatic payment transactions

Payment methods

Alternative payee

Individual paym ent

Clear with customer

Pymt block

House bank

SU

F4

_ P Po stal checkX S CheckX U Trans fer

You specify which payment methods are supported for an account in the customer/vendor master

record. The possible payment methods have already been defined in the system.

For credit balances, you can sometimes specify both the payment method for the incoming payment(such as a bank direct debit) as well as for the payment (such as a bank transfer) in the customermaster record.

If you specify, for example, several payment methods for an outgoing payment, it depends on thecurrent settings for the payment program as well as on the tables in customizing as to which paymentmethod is chosen.



© SAP AG

Document: Key Values

Amount

Cash discount base Cash disc.amnt

Payment terms ZB01 Days / perc.. 14 / 3.000 30 /

Baseline date Fixed

Payment block

Payment method

House bank

Partner bk type

further data

The payment program settles open items (outgoing payments) which have to be paid straight away,

since otherwise by the time it comes to the next payment run either

the cash discount will have expired or

the due date for net payment will have been exceeded.

In principle, customers take cash discount when paying using a debit memo procedure. A payment isnot made until just before the end of the period for the highest discount.

You can define as from which percentage rate cash discount is to be considered by making individual

specifications in the system.

Depending on the settings in the master record, you can determine

whether an item is to be paid and

which payment method (check, bank transfer...) is to be chosen

by using the “Payment block” and “Payment method” fields.



© SAP AG

Control Specifications: Parameters


Posting date 01/15/1996

All docs posted by 01/14/1996

Company code Payment methods Next posting date

0001 US 01/22/1996

Vendors (from/to) Customers (from/to)1 9999 1 9999

Additional

log

TRACE

MaintainMaintain

Status

No param eters yet entered

The payment program selects the items to be paid based on the “Next posting date” entry in

conjunction with the terms of payment for the items.

You can request an “Additional log” for test purposes when processing the parameters.

Use the “Copy” function if the parameters are similar to those used during a previous run.



© SAP AG

Control Specifications: Proposal Run





Schedule proposalSchedule proposal

Start dateStart date 01/15/199601/15/1996

Start timeStart time HH:MM:SSHH:MM:SS

Start imm ed.Start imme d.




You can do without the proposal run and start the payment run straight away.



© SAP AG

Control Specifcations: Payment Proposal

ProposalProposaldatasetdataset

ProposalProposal

listlistExceptionException

listlist

ProposalProposal

loglogTRACETRACE

Payment s ettlement list

Amounts by business areaAmounts by country

Amounts by currency

Amounts by payment method

Amounts by bank

List ofblockedaccounts/items

Job log

• Check due date• Pyt method selection• Payment documents

Process

The payment proposal generates the total list and partial lists according to different criteria.

If there are blocked accounts or items, then exception lists are generated.

If you have requested an additional log, then you are informed in detail about the individual steps of the payment run.



© SAP AG

Control Specifications: Processing The Proposal

Doc.Doc. CoCdCoCd Curr.Curr. TermsTerms CshDsctCshDsct AmountAmount

Doc. 1Doc. 1 10001000 USDUSD 33 30 0300 10,00010,000

::

Doc.nDoc.n

Paymen ts/ ExceptionsVendor Custmr BuAr Itm PM House bk Cur CshDsct Amnt

Acct 1 1 * * * Exceptions * * *Acct n 1 U CITB USD 300 9700. . . . . . . . . . . . . . . . . . . . .

ChangeChange SelectionSelection

Change line itemsChange line items

Pymt methodPymt method U

House bankHouse bank CITB GIRO

Due dateDue date 01/15/1996

Payment blockPayment block

Payment termsPayment terms

::

Acct selected Reallocate

You can change the payment method, the house bank (bank ID and account ID) and the due date forthe account on which you have positioned your cursor using the “Change” function.

You can view the items selected by the proposal run using the “Choose” function. The followingediting options refer to one item in each case.

You have the following editing options at item level:

set / remove payment block

select a different cash discount line

make a new allocation regarding payment methods, house bank or due date.

All changes are taken into consideration by the payment program but are not recorded in the masterrecord or document.



© SAP AG

Control Specifications: Payment Run

Status Parameters enteredPayment proposal createdPayment proposal releasedPayment run started

Posting orders: n generated, n com pletedPaymen t run completed

Schedule paymentSchedule payment

( )


Status

Parameters entered


Start dateStart date 01/15/1995

Start timeStart time HH:MM:SS

Run immed.Run immed.






© SAP AG

Control Specifications: Printing Payment Media

Bank transfer

Paymentsummary

Euroscheck

Check

PaymentPayment

datasetdataset

Program run dateProgram run date 08 June08 June

IdentificationIdentification XYZXYZ

::

Paying company codePaying company code 00010001

::

No.of test printsNo.of test prints _ _

PrintPrint

PaymentPayment

listlist

Exception listException list TRACETRACE

Documents25 vendors50 outgoing cash

Program RFFOD_ _X

Py.Adv.

File TransferFile Transfer

You can integrate printing of the payment media, payment advice notes and payment summary

information into the payment run. To do this, you must specify variants for the print programs (->following page).

You can also start the print programs directly from the system menu. To do this, you must also enterthe program run date and the identification.



© SAP AG

Print Programs - Variants

P rin t prog. Requ ested variants

BK1000

BK1000

:

RFFOAVIS

RFFOD__X

:

List report Requested variants

Sach01

:

RFZALI00

:

The system proposes the print programs based on the payment methods from the payment run.

You store pre-defined variants for the individual programs.

You can only start printing the payment media from the payment menu if you have allocated a variant.

In addition, you can include printing of the payment lists or exception lists.



© SAP AG

Customer/Vendor Clearing

Vendor

Clear with vendor

B

X



Customer

Clear withcustomer

A

X


Vendor BVendor B

Payment:Payment:

Item 1Item 1 25,00025,000

Item 2Item 2 -10,000-10,000



10,00010,000

Vendor BVendor B

25,00025,000

If a company is both a customer and a vendor, you can offset the receivables against the payables

using the payment program.

To do this, you must make sure that the other account number has been entered in the respective“Customer” or “Vendor” field and that both master records have been set up in exactly the same wayas regards payment transactions.



© SAP AG

Summary: Automatic Payment -Payment Program

If you want to settle an account automatically, the addressdata and/or bank data must be correct depending on thepayment method.

You can store several payment methods in a m asterrecord.

The payment method used dep ends on the currentsettings for the paym ent program and the customizingtable settings.

The open items due are settled. A different logic is appliedto Accounts Payable/Accounts Receivable.

The payment program generates the payment documents

and the dataset for creating the payment transfer media. Creation of the payment transfer media can be integrated

into the payment run or performed subsequently.

© SAP AG

Chapter Automatic Paym ents - Configurationthe Payments Program





© SAP AG

Payment Control


all company codesall company codes

paying company codespaying company codes

Payment methodsPayment methods

BanksBanks

per countryper country

per company codeper company code

Bank selectionBank selection

Account determinationAccount determination

Available am ountsAvailable amounts

Bank selection by postal codeBank selection by postal code

Charges / fees (bills of exch.only)Charges / fees (bills of exch.only)

Value dateValue date

House banksHouse banks

Bank accounts atBank accounts at

the house banksthe house banks

Accounts in SAPAccounts in SAPsystemsystem

The payment control is divided into three areas:

company code parameters

payment method parameters

bank parameters.



© SAP AG

Company Codes

Company code Company name City Sdr. co.cd Pyg co.cd.1000 IDES Inc. Wilming. 10000001 . . . . . . . . . 00010002 . . . . . . . . . 0001

Control dataSending company codePaying company code 1000Tolerance days for payable 3Outgoing pymt with cash discount from 1%Always maximum cash discountSeparate payment per business area

VendorSpecial G/L transactions to pay A FSp.G/L transactions for exception list

CustomerSpecial G/L transactions to pay FSpecial G/L transactns for exception list

SelectSelect

For each company code you define the sending and the paying company code.

In addition you also define, for example,

the number of tolerance days (for vendors only) which you give yourself in addition to the due date

as from which cash discount percentage rate you pay

which special G/L transactions you pay automatically.



© SAP AG

Paying Company Codes

SenderSender

General specifications ____________ ________________ Minimum amount for incoming payments 1.50 USDMin imum amount for outgo ing payments 5 .80 USD

No exch.rate differencesForm for payment advice note F110_D_AVIS

Group items for bill/exch.payment One bill per due date interval One bill per due date interval One bill per invoice

Due date of bill/exch./bill request for incoming paymen ts.Due at latest in 90 days

Bill on demand for due date in up to 10 daysDue date of bills of exchange for outgoing pyts

Earliest due date in 10 daysDue at latest in 170 days

Paying Company CodesPaying Company Codes

Paying co. Company name City1000 IDES Inc. Wilmington. . . . . .

SelectSelect

You define the minimum amounts and the form for the payment advice for each paying company code.

You define how many bills of exchange are created for each account during the payment run for thebill of exchange payment method.

You control which open items for the bill of exchange payment method are to be considered during thepayment run using the due date specifications.

You allocate company code-dependent standard texts to the payment forms using the “sender”function.

Make use of the option of one company code paying for several others.



© SAP AG

Pym Mth. Description (in relevant lang.)Pym Mth. Description (in relevant lang.)

. . .. . . . . .. . .

U Bank transfer. . .. . .

Payment Methods Per Country

SelectSelect

Cntry Name

. . . . . .

US USA. . . . . .

SelectSelect

Payment method classification

Check w ill becreatedPOR payment procedurePostal giro / Postal scheckEU internal transferPayment method for incoming pymtsAllowed for personnel paymentsx

Check/bill of exchangeBill of exchange will be createdCreate bill/exch.before due dateBill of exch.requestPayment demandBill/exch.was accepted

Required m aster record specifications

Street or P.O. box

Bank detailsCollection authorization

x

Posting specifications

x

Document type for pymnt ZP

Clearing doc.type ZVSp.G/L ind.bill/ex./bill req.

Form printoutName of the print program RFFOD_UName of the print dataset LIST 35Print dataset for bill/exch.

Key in code line 51

The payment methods are defined country-specifically.

You can only use a particular payment method if the necessary specifications have been made in thesubledger account master record.

The clearing entry for the customer/vendor is carried out using the specified document type.

Recommendation: The “Payment methods in country” table should not be changed (exception:entries for document types).



© SAP AG

Payment Methods Per Company Code

Amount limitsMinimum amountMaximum amount 200

HW*

Foreign payments/foreign currency payments

Allowed for pym ts to cust/ven.abroadxPymts abroad via cus/ven acct?Foreign currency allowedx

Bank selection controlOptimize by bank group

Optimize by postal code

Posting specificationsIndividual pymts for m arked items

Post bill liability at bank

Bill of exchange requestsDays until due date

Form data

Company codeCompany code Comp.nameComp.name

1000 IDES Inc.. . . . . .

Pyt MthdPyt Mthd Description (in relevant lang.)Description (in relevant lang.)

S CheckU Bank transfer . . .

x

x

You can

make a payment method dependent on amount

allow a payment method for foreign payment transactions.

If you select “Optimize by bank group” then the payment program can, for example, try to pay from abank within the same clearing house system (ACH).

If you select “Optimize by postal code” then the system tries to pay from a bank whose postal codearea is the same as that of the target bank.

Form data is allocated to each payment method (-> following page).



© SAP AG

Payment Methods Per Company Code II

FormsForm for the payment medium Z110 ...

Next formCorrespondence sort vrnt

Paid items printout

Line items per formPayment advice note if form is fullExtra forms if form is fullLine item sort variant

Details on the form

Issuer IDES Inc.

:Wilmington

:

Form data

An individual payment medium form is allocated to each payment method.

If you limit the number of items per form, then the payment method is only taken if fewer / the samenumber of items are to be paid for one account.



© SAP AG

Payment Program Configuration

SequenceSequence

Company code Company name City

1000 IDES Inc. Wilmingt.. . . . . . . . .

Position cursor on company code and select:

Bank selection

Payment program configuration

AmountsAmounts AccountsAccounts Value dateValue date PstCdPstCd ChargesCharges

of banks

(house banks)

planned foreach bank andeach accountfor incomingand outgoingpayments

bank accountsat your housebanks andrelated G/Laccounts

Days to duedate

PstCd

Banks

asapplicable

For each company code you define:

the house banks as well as the accompanying bank accounts and G/L accounts,

the available amounts,

the days until the value date,

the bank selection dependent on the postal code in the customer’s/vendor’s address (if you haveselected “Optimize by postal code” within “Payment methods in company code”).

You will find the individual tables explained in detail on the next few pages.



© SAP AG

Bank Selection

C om pany C od e C om pany nam e

1000 IDES Inc.. . . . . .

Pym t Mth Currency Sequence HB HB for bills/exch. Account for bills

S LC* 1 Bank 1

S LC 2 Bank 2

U LC 1 Bank 1

U LC 2 Bank 2

LC = local currencyLC = local currencyHB = house bankHB = house bank

You define a bank ranking order from which payments are to be made for each company code, payment

method and currency.

You have defined the banks previously in the system as house banks under the respective bank ID.



© SAP AG


Company code Company name

1000 IDES Inc.. . . . . .

Ho use bk P ym t Mth Cu rren cy Ba nk acc t B k su b-acct Clrg acc t Chrg type Bu Ar

Bank 1 S LC GIRO Bank 1 - S 0001

Bank 1 S LC GIRO Bank 1 - U 0002

. . . . . . . . . . . . . . .

Bank 2 S LC GIRO Bank 2 - S

Bank 2 U LC GIRO Bank 2 - U

Bank 2 W LC GIRO Bank 2 - W Bank 2 - G.clg. . . . . . . . . . . . . . . . . .

You allocate the corresponding bank account using its account ID to the respective house bank,

payment method and possibly also the currency. The account ID keeps its identity when setting up thehouse bank.

Define a bank sub-account (G/L account) for the clearing entry to the subledger account for each bank,payment method and currency.

You manage the bank sub-accounts on an open item basis so that you always have a record of thepayments which are on their way.

The SAP system generates an additional offsetting entry for bill of exchange payments. To do this, youmust define a clearing account for payment method “W”.



© SAP AG

Available Amounts

C om pany code Com pany nam e

1000 IDES Inc.. . . . . .

House bk Acct ID Days Currency Outgoing payment Incoming payment

Bank 1 GIRO 3 LC* 100,000 1,000,000.00

. . . . . . . . . . . . . . .

Bank 2 GIRO 3 LC* 200,000 1,000,000.00

. . . . . . . . . . . . . . .

LC* = local currency

You can limit the amount available for each house bank account for the payment run. The system then

pays from one particular bank until such time as the available amount has been used up.

The payment program notes the amount remaining in each case after processing an account.

You can make planning more detailed by using the “Days” specifications. The “Cashed checksduration” master record field corresponds with this date limit as well as with the “Days until valuedate” table.

You may only use the identifications entered in the tables for house banks and house bank accounts inthe respective fields.



© SAP AG

Bank Selection By Postal Code

C om pany code N am e d. Firm a

1000 IDES Inc.. . . . . .

Ctry Lower limit Upper limit House bank

DE 10000 19000 Bank 1DE 20000 89000 Bank 2

. . . . . . . . . . . .

If you have selected “Optimize by postal code” for a payment method, then the bank in whose postal

code area the subledger account’s postal code lies makes the payments.



© SAP AG

Value Date

C om pany C od e C om pany nam e

1000 IDES Inc.. . . . . .

Pyt Meth House bk Bank acct Amount limit Currency Days to value date

S Bank 1 GIRO 1,000 LC 3S Bank 2 GIRO 5,000 LC 2. . . . . . . . . . . . . . . . . .

The posting date of the payment run is entered as the value date for the bank posting or the latter can be

set as being dependent on amount. (Value date = payment run posting date + days until value date).

The “Days until value date” correspond with the day specification for the “Available amounts”.



© SAP AG

Charges / Fees

C om pany code Com pany nam e

1000 IDES Inc.. . . . . .

Charge type Amount limit Currency Charges 1 Charges 2

G1 1,000 LC 10 5G1 2.000 LC 20 10. . . . . . . . . . . . . . .

Charges types can be defined for the bill of exchange payment method (only used in Spain).

You can use the charges types in the account determination table for the bill of exchange paymentmethod.



© SAP AG

Payment Block Reasons

P Meaning Can be changed Block man.in payment proposal payment

Released for pymnt

A Blocked for payment x

R Invoice verif ication

... . . . . . . . . .

P Meaning Day/% Block key Explanation

ZB01 0 A within 14 days 3% cash discountwithin 20 days 2% cash discount

within 30 days net... . . . . . . . . . . . .

Define payment block reasonsDefine payment block reasons

Default values for payment b lock in payment termsDefault values for payment block in payment terms

The payment block reasons defined can be used at both account and document level.

If you define a block reason within a term of payment, then this appears automatically as the defaultvalue when posting a document. You can still overwrite the proposal when posting the document.



© SAP AG

Grouping Key

Grouping key

Description

Text

Application of rule

for customers

for vendors

Fields for g rouping payments

Field 1

Field 2

Field 3

Name Meaning Offset Length

You can determine a rule according to which the open items of an account are to be paid together by

using a grouping key. You define the key in the customer/vendor master record.

You can make reference to a maximum of three fields for each grouping key.



© SAP AG

Pyt adv.PaymentPaymentsummarysummary

Check

Paymentmedium

Printing Paym ent Media

Payment programPayment program


REGUDTablesTables

Banktransfer

Print programPrint program

RFFOD__*RFFOD__*

REGUH

REGUP

The payment program creates the REGUH, REGUP and REGUD datasets.

Data on the payee or payment method is, for example, to be found in REGUH.

Information from the individual documents is to be found in REGUP.

The complete bank data and the amount specifications are to be found in REGUD.

The print program creates the payment media (and payment advice notes if needed) as well as thepayment summary from the information contained in REGUH, REGUP and REGUD. Information canalso be taken from the payment tables.



© SAP AG

Main pymt methodMain pymt method

e.g.e.g. U= bank transferU= bank transferA= bk direct debitA= bk direct debitE= bank collectionE= bank collection

Print Programs

R FR F F OF O D_ _ D_ _ UU

ApplicationApplication

Formprintout

Country

An individual print program exists for each main payment method and for each country.

You allocate the print programs to the payment methods in the “Payment methods in country” table.



© SAP AG

Forms

Country/FormCountry/Form

F110_X_YYYYYYYY

F110_D_AVIS

F110_D_SCHECK

F110_D_UEBERWEIS

F110_D_Z1

F110_D_DTA

F110_D_WECHSEL

The forms listed above are defined as standard forms using SAPscript.

You allocate a form to a payment method in the “Payment methods in company code” table.

If you permit a payment advice for a payment method in the case of a form not fitting on one page, thenonly one payment advice note is printed on the payment method form. The F110_X_AVIS form is alsocreated.

You can copy all the forms using a name beginning with X or Z and change them accordingly to meetyour requirements.



© SAP AG

Data Medium Exchange

House bank

DME data Carry out pymnt method

- as - - -- by - - -

Payment m eth. for comp.code

Form data extra form

(data medium accom p.sheet)

TemSeTemSe

Print dataPrint data

DME dataDME data

. . .. . .

Print data

mgmnt

DME

mgmnt

File systemFile system

DME sheetDME sheet

Adv.notesAdv.notes

PaymentPayment

summarysummary

Print program

Data medium exchange

__ Print m edium

The above is reached via the following menu path:

Accounts payable or Accounts receivable menu -> Periodic processing ->Payments -> Environment -> DMEadministration



© SAP AG

Automatic Cashed Checks (Optical Doc. Entry)

VendorVendor

ChecksChecks

House bank

vendorchecks

House bankHouse bank

R/3 appl.R/3 appl.

OpticalOptical

documentdocument

entryentry

SAP R/3 application

BatchBatchinputinput

sessionsessionMAOBE-Daten

CashedchecksRFSHRU00

AccountsAccountspayablepayablePaymentprogram

Checks with SAP doc.no.

in OCR line

Advantages of the automatic cashed checks function:

the optical document entry format is supported by all major banks

the number of manual postings necessary is reduced

automatic clearing takes place via check numbers

processing logs

diskettes can be imported directly at the accounting clerk’s workplace.



© SAP AG

Summ ary Automatic Payments -Configurint The Payment Programm

The paym ent method contains the specificationsgoverning minimum amoun ts, payment documents, formsand print control

The co nfiguration parameters can be defined differentlyfor each company code

All forms and standard texts are language-dependent.This means that you m ust translate your own individualtexts into the languages you require for them.

Chapter Special General Ledger





R

© SAP AG

Special General Ledger Transactions

Down paymentreceivables

Down payment

Bill of exchange

payment request

Bill of exchange

Reverse note

Single bill of exchange

Guarantee of payment

Special general ledger transactions are those transactions which are not posted to reconciliation

accounts in subledger accounting, (although they would appear to belong there), but to special generalledger accounts.



R

© SAP AG

GENERAL LEDGER

Posting methods

Receivables Payables

Down p mts received Down pmts made

CUSTOMERS VENDORS

5,000

2,000

2,000

5,000

1,000

3,000

Down pmts

1,000

3,000

Down pmts



R

© SAP AG

Controls

Special G/L indicator

Posting key

A Down paym ents received

F Down paym ent requests

I Down payment on

intangible assets

M Down payment on

tangible assetsW Bill of exchange

. .

. .

0919

29

39

Down payments are displayed separately on the balance sheet and are therefore posted to their own

separate accounts. These may in turn depend on the customer or vendor reconciliation account.

Down payments are posted using individual posting keys and special general ledger indicators. Thisprevents the payment from being posted to the normal reconciliation account for “Receivables” or“Payables”. The special general ledger indicator is then used to locate the special general ledgeraccount (e.g. down payments).

Posting keys and special general ledger indicators are predefined in the system and do not generallyneed to be entered.



R

© SAP AG

How Special General Ledger Transactions areDisplayed

Customer / Vendor Customer / Vendor

Balance display Line item display

x with special G/L transactions

Special G/L transactions

0.00 Balance car r. fwd

A Down pmt 10,000 10,000 Debit curr. year

20,000 Credit cur r. year

10,000 Current balance

Docs. affecting balance

Down payment request

Down pmt

Special G/L balance

Special general ledger transactions are displayed separately when displaying balance and line items.



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© SAP AG

Down Payments

no. days due

Down paymentrequest

Downpayment

Finalsettlement

Down pmnt Anzahlungs-clearing

Paymentsettlement

Vendors = automatic payment

Customers = automatic dunning

The way in which down payments are processed is almost identical for both customers and vendors. As

a rule, you first post a down payment request which is then responded to by a dunning program (forcustomers) and a payment program (mainly for vendors) as appropriate. These programs mean thatdown payments are made automatically.

Down payments are then cleared and entered payments to the down payment account until the invoicecan be fully cleared.



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© SAP AG

30,000 10,000 30,000 10,000

20,000 20,000

Down pmt requests..Down pmt requests.. Down paym ents receivedDown paym ents received

10,000 10,000 10,000

Down paym ent requestsDown payme nt requests

Down pmts.......Down pmts....... __ ___ 10,000 10,000

RevenuesRevenues

30,000

BankBank

10,000

20,000

Down payment request Dunning notice?

Down payment posting (following account statement or automatically)

Final settlement and

down paym ent clearing

Clearing (following account statement or automatically)

Customer Down Payments

1

2

3

4

5

CustomerCustomer

3 4

5

ReceivablesReceivables

3 4

5

1

2

4 12

25

3

24

2



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© SAP AG

Down payment request automatic payment

Down payment posting automatically

Final settlement and automatic payment

down paym ent clearing

Clearing (through automatic payment)

Vendor Down Payments1

2

3

4

5

VendorVendor

34

5

PayablesPayables

34

5

1

2

2 12

25

3

2 4

4

10,000 10,000 10,000 30,000

20,000 20,000

Down pmt request.....Down pmt request..... Down paym ents receivedDown paym ents received

10,000 10,000 10,000

Down paym ent requestsDown payme nt requests

Dow n pm ts..........Dow n pm ts.......... _______ 10,000 10,000

RevenuesRevenues

30,000

10,00020,000



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Down Payments with Tax: Gross or Net Display

Down payments received

Tax category + B

Down payments received

Tax category +

Gross displayGross display

BankBank Customer Customer

Down pmt receivedDown pmt received

Output tax clearingOutput tax clearingSales taxSales tax

BankBank Customer Customer

Down pmt receivedDown pmt received

Output tax clearingOutput tax clearingSales taxSales tax

Net displayNet display

Masterrecord

11,000

11,000

__________

11,000

1,0001,000

11,000

1,000

10,000

__________

10,000

Down payments with tax amounts may be displayed net or gross depending upon the tax category

defined in the master record for general ledger accounts for down payments received or downpayments made.

Where down payments are displayed gross, sales/purchase tax is automatically offset on asales/purchase tax clearing account for down payments.



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Bill of exch.

usage

no. days due

Customer Bill of Exchange

t

Invoice Payment by

bill of exch.

Cash receipt Reverse b ill

liability

+ Paym ent period for bill

I = Collection

D = Discounting

F = Forfaiting

I = Collection

Due date


a rule, you first post a down payment request which is then acted upon by the corresponding dunningprogram (for customers) or payment program (mainly for vendors) as appropriate. These programsmean that down payments are made automatically.

Down payments are then cleared and entered as payments to the down payment account until theinvoice can be fully cleared.



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Outgoing invoice

Payment by bill of exchange

Bill of exchange collection (autom atic)Cash receipt

Reverse bill liability (automatic)

Bills of Exchange Receivable - Collection1

2

34

5

Customer Customer ReceivablesReceivables

21

5

1 2

2

1

3

4

2 5

3 4 5

10,000 10,000 10,000 10,000

Bill of exchange......... Bill or exch. receivable

10,000 10,000 10,000 10,000

Revenues

10,000

Bank

10,000Bank Bill Collection Clearing Bill collection

10,000 10,000 10,000 10,000



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Outgoing invoice


Bill of exchange discountingReverse Bill liability

Bills of Exchange Receivable- Discounting1

2

34


21

4

1 2

2

1

3

3

2 4

4

3

2 2

2

2

22,000 22,000 22,000 22,000

627 627

Bill of exch...........Bill of exch........... Bill of exch. receivableBill of exch. receivable

22,000 22,000 22,000 22,000

57 RevenueRevenue

20,000

BankBank

21,800

Discount revenueDiscount revenue Bank: Contingent liabilityBank: Contingent liability550 22,000 22,000

Collection chargesCollection charges Discount expenseDiscount expense20 200

CustomerCustomer

The above example is based on the following terms and conditions

- Bill life 90 days- Discount rate 10%- Collection charges 20- Tax rate 10%



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Bills of Exchange Payable

Payment by b ill ofexchange

InvoiceBill of exchange pm t

=Cash disburse. acct

Bill of exchangepayable

cancelled at bank

Terms of payment

automatic payment


a rule, you first post a down payment request which is then acted upon by the corresponding dunningprogram (for customers) or payment program (mainly for vendors) as appropriate. These programsmean that down payments are made automatically.

Down payments are then cleared and entered as payments to the down payment account until theinvoice can be fully cleared.



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Bills of Exchange Payable

Incoming invoice


Payment of a bill of exchange

Cancellation of current bank bill of exch.

1

2

3

4

VendorVendor ReceivablesReceivables

12

2

2 1

3

1

2

3

3 2

442

10,000 10,000 10,000 10,000

Biil of exch......................Biil of exch...................... Bill of exch. payableBill of exch. payable

10,000 10,000 10,000 10,000

ExpenseExpense

10,000

BankBank

10,000

Offset. curr. bills of exch.Offset. curr. bills of exch. Curr. bills of exch. payableCurr. bills of exch. payable

10,000 10,000 10,000 10,000

The above example is based on the following terms and conditions

- Bill life 90 days- Discount rate 10%- Collection charges 20- Tax rate 10%



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Special General Ledger - Summ ary

Special general ledger transactions are posted to aseparate reconciliation accoun t and as such are no tposted to the master record reconciliation accou nt.

The R/3 system contains a special menu for processingdown paym ents and bills of exchange.

When processing down paym ents, posting can beintegrated with other components by m eans of anappropriate account assignm ent object such as assets.

© SAP AG

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Chapter Individual Financial Closing Procedure

External Closing

Internal Closing





© SAP AG

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The Individual Financial Closing Process inOverview

External Closing

Internal Closing

In this course, an individual financial closing refers to the closing activities of a legally independent enterprise.

External and internal aspects of closing operations are both treated here.This course does not handle closing operations from a corporate group perspective, but focuses on the preparatoryactivities in individual companies which are required to later generate a group closing report.

The course begins by looking at closings in various sub-ledgers (Payroll Accounting, AccountsPayable/Receivable, Material and Asset Accounting) and also includes a look at internal accounting (controlling).It continues with closing activities in Financial Accounting. Finally, the process for all closing activities aredescribed from a chronological and integration perspective. The following format was selected for describingclosing activities in the sub-ledgers:- Counting and checking- Valuating and reclassifying- Documenting- Reporting

The sequence of these activities may vary in the different areas.



© SAP AG

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External ClosingAssets Liabilities Profit and Loss

Statement

Sales revenues

Changes involving stocks

Other capitalized internalactivities

Material expenses

Personnel expenses

Depreciation

Financial results

Equity

Provisions

Payables COCOCO

SDSDSDFIFIFIFixed assets

Current assetsStocks

Receivables

Securities

Checks, Bank

MMMMMM

FI-

AAFI-FI -AAAA

ARARAR

TRTRTR

TRTRTR

PPPPPP

MMMMMM

FI-AAFI-FI -AAAA

FIFIFI

HRHRHR

FIFIFI

FIFIFI

MMMMMM

APAPAP

Bal.Sheet

External closing covers closing activities in the commercial sense.

It is assumed that the fiscal year is the closing period. You can carry out closing activities for shorter periods of time (month, quarter or half-year). References will be made to these alternative time periods.

There are no technical features of SAP software which would necessitate a separate daily closing.



© SAP AG

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Asset History Sheet (FI-AA)Book value FY start

Book value FY end

DMDMDM

$$$

DMDMDM

$$$

++ -- Dep.Dep.Dep.

Acquistns Retiremts Transfer

Postings

Deprecia-

tions

Closing operations in Asset Accounting are documented in the asset history sheet.



© SAP AG

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Internal ClosingCost Elements Cost center or Cost center group

Actual Plan Deviation Deviation

total %Material costs

Personnel costs

External services

Depreciation

primary cost elements

secondary cost elements

Total costs

Creditingsecondary cost elements

Cost center over-/under-absorption

Assessment

Internalcostallocation

IAS (CO)

Internal closing in this course refers to closing activities for cost and sales accounting.

Only an overview of cost accounting closing activities is provided since these operations are also covered inControlling courses. Only closing activities which have a direct effect on the commercial closing will be coveredhere in detail.The overviews presented in this course should not be substituted for participation in the Controlling courses.



© SAP AG

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Fundam entals of Closing Operations

Current data, due to online processing

Integrated Data Flow in Financial Accounting

Main sub -ledger functions:

Checking and Counting posted data

Valuation and Reclass ification by balance sheet key date

Docum enting the posting data

Reporting to external institutions



© SAP AG

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Summary Individual Financial ClosingProcess

The emph asis in this course is on closings in accountingin the comm ercial sense.

You can trace data from the balance she et/P+L all the wayback to the sources of the data.

Data sources for Financial Accounting are the classicbusiness areas represented by the sub-ledger accounts.

This ‘souce data’ must be prepared before you cangenerate a balance sheet/p+l statement, partially becauseof legal issues (attention:country-specific) or also due tobusiness considerations.

© SAP AG

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Chapter Closing Operations for PayrollAccounting

Payroll data on the balance sheet

Counting / checking-calculating payroll expenses

Regrouping/valuating-posting p ersonnel expenses to other payables-debiting and crediting to the clearing cost center /

cost centers in CO

Documentation-revision support-other lists

Notifications-social insurance contribution-DUEVO (German data comm unications regulation)-tax





© SAP AG

Payroll Data on the Balance SheetAssets Liabilities The Profit and

Loss Statement

Sales revenues

Balance sheet changes

Other capitalizedinternal activities

Material expense

Personnel expense

Depreciation

Financial results

Equity

Provisions

Payables COCOCO

SDSDSDFIFIFIFixed assets

Current assetsStocks

Receivables

Securities

Checks, bank

MMMMMM

FI-

AAFI-FI -AAAA

ARARAR

TRTRTR

TRTRTR

PPPPPP

FIFIFI

FIFIFI

FIFIFI

MMMMMM

APAPAP

B.sheet

MMMMMM

HRHRHR

FI-AAFI-FI -AAAA



© SAP AG

The Payroll Procedure & Subsequent Activities

Data medium exchange

Remuneration statement

Master dataMaster data

Changes tomaster data

Prepare reporting

Transfer to FI/CO

Contributions statement for HI

FIFI COCO

...

MayMay JuneJune

Release payroll Exit payroll

Pay.res. May

Subsequent activities per payroll periodPayroll and

correction

Example for Germany



© SAP AG

Posting Personnel Costs using a Clearing CostCenter

Posting summ arizedexpenses / costs to a clearingcost center

Repost costs fromclearing cost center toreal cost centers

HR FIFI

Pass summarizedexpenses / costs on toCO

Document

CC for pers.clearing

Sal. 600Sal. -100Sal. -200Sal. -300

CC 1000

Salaried 100

CC 1001

Salaried 2 00

CC 1002

Salaried 300COCO

Expenses / costs to otherusing CCC payables600.-- 600.--

Two activities are triggered by HR:

1. A complete, summarized document for payroll expenses is posted to a clearing cost center2. Expenses on the clearing cost center are allocated to the target cost centers

The reasons why summarized data is posted to financial accounting are as follows:

- Cost center-related information that is not required in Financial Accounting is not included in FIdocuments- FI documents contain only one line item per account, which may need to be reconciled and checked.- FI document data can be reorganized independently from CO data- You can separate the processing of CO repostings from an FI session.

You might also want to carry out the follow-up FI activities listed below:

- reconciliation of payments / posted amounts- verification of withholdings for advances- verification of withholdings for claims- clearing cross-company code transactions

You might want to carry out the follow-up CO activities listed below:- reconciliation of the clearing cost center



© SAP AG

Further Postings Effected for PayrollAccounting

Postingpayrolldata

Payment toemployee

Tax

HI funds

Posting document

Payment list

Employment tax notification

Statement of con tributions paid

Costs

Expense

automatic

manual

manual

manual

Example for Germany

Payr. to pay

Tax to pay

Payr. to pay

Abzuf. SV

Bankclearing

Bankclearing

Bankclearing

Accounts affected by subsequent activity

FIFI

FIFIFIFI

FIFI

FIFI

FIFI

COCO

HRHR

HRHR

HRHR

HRHR

SI to pay

FIFI

SI to payFIFI

FIFI

Tax to pay FIFI



© SAP AG

Particular Aspects of Transfers to FI/CO

Particularaspects

Retroactive accounting andposting to special periods

Calculating imputed costs

Specify personnel no.for clearing in FI

Advances

500.-

600.-

800.-

444 444

445 445

447

500.-

600.-• Advances

• Travel expenses paidvia payroll

Personnel costs

FIFI

Further revisionsupport

800.-

Examples

COCO FIFI

COCO

Docs.

Salaried KST 711 7,000.-

Wage type MA20Pe rs .n o. 4 44 4 ,0 00 .-

Pers.no. 445 3,000.-Overtime KST 711 220.-



© SAP AG

Imputed Costs in Cost Accounting

Jan Feb Mar April May June July Aug Sep Oct Nov Dec

12,000 12,000 12,000 12,000 .... .... .... .... .... .... .... ....1,200 1,200 1,200 1,200 .... .... .... .... .... .... ....

∑∑∑∑

14,400

Pa yImputed,pay scalevacationallowance(10% of pay)

Cost center 4430Cost center 4430 Object for imputed costsObject for imputed costs

PeriodPeriod PeriodPeriod Imp. cost amounts &Imp. cost amounts &

costs actually incurredcosts actually incurredImp. cost amountsImp. cost amounts

010203040506

+ 1,200+ 1,200+ 1,200+ 1,200+ 1,200+ 1,200. . .

- 1,200- 1,200- 1,200- 1,200- 1,200- 1,200+ 15,000

600

010203040506

. . .12 balance :

Periodic calc.of imp. costs

Rules for imp. costs for periodic calc. of imp. costs

Paid vacationallowance:15,000

When imputed costs are calculated, rules for imputed costs are defined in the system which are then used for

calculating imputed costs on a periodic basis.

When imputed costs are calculated on a periodic basis, imputed cost amounts are debited to cost centers andcredited to the object for imputed costs (cost center or internal order).

An object for imputed costs, which "collects" imputed amounts, must be defined for periodic calculations of imputed costs.

During the actual vacation allowance posting, HR can providea) either the imputed cost objectb) or the clearing cost center.

Repostings of the complete amounts in CO can be made from the clearing cost center to theimputed cost object.

This procedure has the following advantages:

cost centers are debited on a steady, periodic basis so that irregular cost fluctuations are avoided

imputed costs actually incurred can be balanced using the object for imputed costs and analyzed using line items.



© SAP AG

DUEVO (Data Comm unications Regulation)

Start payroll accounting

Start DUEVO

Create notificationsCreate notifications

Maintain personnel data(as required)

(monthly)

(monthly)

List of administratorsList of administrators StatementsStatements Data mediumData medium

When a DUEVO run is performed, employee data is scanned for anything that is relevant to DUEVO notifications.

The system recognises DUEVO-relevant data using an employee’s master and time data, and creates notificationsautomatically.

A DUEVO run is performed each month after the payroll run for employees who are liable to social insurancecontributions. The system reads the master data and payroll results and scans them for DUEVO-relevant data.

You must first create an events table that contains all of the data relevant to DUEVO.

The events table is then used to create a list of all DUEVO notifications. You can choose to format the list in sucha way that a list is created of DUEVO-relevant data that must be processed manually as part of DEVO (GermanData Entry Regulation).

You can also create DUEVO notification statements for your employees.

Furthermore, it is possible to create a file that contains all DUEVO notifications. The file is copied to a data

medium and transferred as appropriate.



© SAP AG

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Chapter Summary Closing Operations forPayroll Accounting

The p ayroll accounting run calculates personnelexpenses for external accounting, as well as theresulting payables and payments.

With regard to internal accounting, the payrollaccounting run calculates personnel costs for costcenters or orders.

A variety of reporting procedures can be used todocument and create notifications for the payrollresults.

© SAP AG

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Chapter Closing Operations for AccountsReceivable and Payable

Receivables and P ayables Presented on the BalanceSheet

Counting and Checking- Creating Balance Lists and Balance

Confirmations

Regrouping and Valuation- Posting Individual Value Adjustments- Valuating O pen Items in Fo reign Currency- Regrouping Receivables and Payables

Documents- Creating Journals and Account Lists

Reporting- According to Foreign Trade Regulations





© SAP AG

Accounts Receivable and Payable on the BalanceSheet Profit and Loss

Statement

Sales Revenue

Balance Sheet Changes

Other ActivatedInternal Activities

Material Expenses

Personnel Expenses

Depreciation

Financial Results

COCOCO

MMMMMM

FI-AAFI-FI -AAAA

FIFIFI

HRHRHR

Assets Liabilities

Stockholders’Equity

AccruedLiabilities

AccountsPayable

FIFIFIFixed Assets

Current AssetsInventories

AccountsReceivable

Securities

Cash, Checks

FI-AAFI-FI -AAAA

TRTRTR

FIFIFI

FIFIFI

MMMMMM

Balance

Sheet SDSDSD

MMMMMM

ARARAR

APAPAP

TRTRTR

PPPPPP



© SAP AG

Transactions in Sales and D istribution Processing

MM

AATT

EE

RR

II

AA

LL

SS

MM

AA

NN

AA

GG

EE

MM

EE

NN

TT

SalesSales

InformationInformation

SystemSystem

USD

Sales supportSales support

SalesSales

ShippingShipping

BillingBilling

Financial AccountingFinancial Accounting

Delivery

Debitmemo

Creditmemo

Invoice

Deliveryfree of charge

Subsequentdelivery free

of charge ReturnsSalesorder

Contract

Schedulingagreement

Salesactivity

Inquiry

Quotation

Shipment



© SAP AG

Effects of Creating a Billing Document

DeliveryDelivery

Sales orderSales order

Billingdocument

Customercredit

account

Profitability analysis

Accounts

receivable

Sales informationsystem

When you create a billing document, the system

automatically creates all documents for financial accounting:

- General Ledger

- Profit Center

- Profitability Analysis

- Controlling

- Accounting

and updates the following:

- status in all related sales, delivery, and billing documents

- credit management customer account- sales statistics for the sales information system

- controlling elements such as profitability analysis and profit center accounting



© SAP AG

Consistency

Counting

correspondence : balance confirmationS AP F130D : cus to mersSA PF1 30K : ve ndors

Letters

Balance confirmations

+ Replies

Checking

Accounts receivable and payableAccounts receivable and payable

information systeminformation system

Balances in local currency

Subledger and G/L ledger

Documents

SAPF190

RFDSLD00 (customers)RFDSLD00 (customers)RFKSLD00 (vendors)RFKSLD00 (vendors)

Comparison period:

posting periodfiscal year

Time period

balance carriedforward,debit or credit

balance

You can access other reports for various evaluations using the accounts

receivable and payable information system (report selection).

You process balance confirmations by using correspondence.



© SAP AG

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Customizing I : Balance Confirmations

SAPF130DSAPF130K

Form

Define form names for printingDefine form names for printingcorrespondencecorrespondence

22

SAPF130DSAPF130K

Define sender details forDefine sender details forcorrespondence formcorrespondence form

ElementBalance confirmation 51051 0

Balance notification F130_CO NFIRM _01 51151 1

Balance request 51251 2

Form ID

Check list F130_LIST_01 LILI

Error list F130_ERROR_01 ERER

Results table F130_RESULT_01 RERE

Standard texts

Header F_0001_HEADER

Footer F_0001_FOOTER_01

Signature F_0001_SIGNATURE

Sender F_0001_SENDER



© SAP AG

Customizing II : Balance Confirmations

33 Define reply addresses for balanceDefine reply addresses for balanceconfirmationconfirmation

Company code

Address IDis specified in program"Reply to"

Form of address

NameStreetCity

Telephone . . .

44 Specify selection criteria forSpecify selection criteria for

balance confirmationbalance confirmation

varian t D EB I accou nt type D , table n am e K NA 1, K NB 1, B SE G

varian t K RE D accou nt type K , table n am e L FA 1, L FB 1, B SE GSAPF130G

These settings depend on the client, and enable you to access additionalselection options from the above tables when you execute SAP F130D

or SAPF130K.

55 Prepare balance confirmations forPrepare balance confirmations forcustomers and vendorscustomers and vendors

Create variants for programs SAPF1 30D and SAP F130K.



© SAP AG

Individual Value Adjustments (IVA) for DoubtfulReceivables

D Receivables C

100 000

IVA for receivables

1 500

Allowance for IVA

1 500

Customer

1000 doubtful500 receivables

IVA

1500*

* net method, withouttaxes

GeneralGeneralGeneral

ledgerledgerledger Special G/LSpecial G/LSpecial G/L

accountaccountaccount

reconciliation posting

General Ledger

Doubtful receivables are written off as an individual value adjustment in year-end closing. The special general

ledger method is suitable for this procedure since the transaction is entered in the customer account but is alsoposted to a special GL account, “Individual Value Adjustments for Receivables”.

Valuation adjustment is made if the receivable is determined to be uncollectible. An adjustment must then be madeto taxes on sales and purchases also.



© SAP AG

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Foreign Currency Valuation and the Sorted List

Valuing open items in foreigncurrency SAPF100

Accounts receivable and payable,G/L accounts

Different valuation methods incustomizing-> Parallel currencies can be valued

separately.

Determining the valuation difference-> Only as a list, no posting entries-> Valuation at balance sheet key date

+ reversal-> Balance sheet key date valuation

with update(note: only for fiscal year-end, noreverse document)

Direct posting, no batch input, log

Listing Receivables and PayablesSAPF101

By remaining life

Balance Sheet

Current Assets. . .Receivableslife less than one yearlife more than one year

Vendors with debit balanceCustomers w ith credit balance

Changed reconciliation account

Batch input

Invoice $ 100 Rate 1.50 CAD

Payment period 01/01/1999

11 22

Currency codes you use must be defined under global settings in customizing for the entire system. In addition, you

have to specify the number of decimal places that are managed for the individual currencies in the system.

You define the translation rates in the table for exchange rates. The system determines the rates for document entryand for key date valuations by using the various currency rate types that you also define under global settings incustomizing. Translation rates receive a validity date.



© SAP AG

Valuation (with Update)

With translationWith translation

Translation Transl. offsetting

ƒ 20 20 ƒ

Receivable

180 180

20

Realized

10

Bank

150

Revenue

180

Adjustment

20 20

Valuation

20

1. Invoice 100 FC 1.8

2. Valuation 1.6

3. Payment 1.5

not posted to the

reconciliation account,only updated in thedocument

The accounts above show the posting transactions when valuing items in foreign currency with an update of the

valuation difference in the document line item.

When following the strict lowest value principle, you can use the valuation with an update only for the year-end

valuation.

If you valuate a document line item, the SAP System stores the valuation difference in the document line item. Thesystem also includes this valuation in clearing the payment.

Exchange rate differences that are not realized as valuation differences in the payment settlement are posted as anexchange rate translation. You specify how the exchange rate translation is posted for each company code. This isrelevant in certain countries.



© SAP AG

Receivable

180 180

Realized

30

Bank

150

Revenue

180

Adjustment

b 20 20 a

Valuation

a 20 20 b

1. Invoice 100 FC 1.8

2. Valuation 1.6

3. Payment 1.5

Valuation (without Update)

a) key date

b) key date + 1

The above accounts show the posting transactions when valuing items in foreign currency without an update of the

valuation difference in the document line item.



© SAP AG

Customizing: Exchange Rate Types

Type Inverse Base currency Usage

. . .B Standard translation, selling rate

G Standard translation , buying rate

M Standard translation , average. . .

Exchange rates

Type From To Valid from Exch. rate

M USD DEM 01/01/YYYY 2.00000. . . . . . . . . . . . . . .

Exchange rate types are used for the posting and valuation transactions.

The standard system uses

rate type M for the posting transactions

rate types B and G for the valuation transactions

You define the translation rates for the exchange rate types in the exchange rate table.

If you select the option “Inverse”, the system determines the inverted rate for currencies combined with only oneentry from the exchange rate table.

You can easily maintain several different combinations of currencies by defining these combinations with a basiscurrency



© SAP AG

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Customizing: Valuation Methods

Valuation procedure

o Display by line item o Lowest value principleo Display by open item account o Strict lowest value principleo Display by reconciliation account o Always valuate

Write extractDocument type SA

Exchange rate determinationRate type for debit balance Use exchange hedgingRate type for credit balance

o Determine rate type from account balanceo Determine rate type from item with same invoice ref.

Valuation method KTO

Description FC balance per acct . . .

You can define different valuation methods for valuing foreign currency.

For each valuation method, you specify:

the parameters for the valuation procedure

the parameters for the exchange rate determination

You can use different rate types for determining the exchange rate.



© SAP AG

Customizing: Account Determination forExchange Rate Differences

General ledger C urrency Currency type


nn Realized exchange rate differenceRealized exchange rate difference

LossGain

nn EvaluationEvaluation

LossGainBalance sheet adjustment

nn TranslationTranslationLossBalance sheet adjustment lossGainBalance sheet adjustment gain

Chart of acctsINT

Transaction: KD F

To evaluate foreign currency in accounts managed on an open item basis, you define account entries for:

realized exchange rate gains and losses,valuated exchange rate gains and losses, and

translated exchange ratesfor each reconciliation account in subledger accounts.You execute the evaluation runs using program SAPF100.



© SAP AG

Open Item A nalysis

Customer 2

10020

Customer 3

200

Customer 1 Receivables

Adjustment

600(200)

600

ΣΣΣΣ = receivables <= 1 year

10020

200

< 1 year

1 - 5 years

> 5 years

(VH1)

(VH2)

(VH3)

<= 1 year

> 1 year(VS2)

Receivables Payables

Exam ple: Customers with Credit Balance

N o t p e r m i t

t e d N o t p

e r m i t t e d

N o t p e r m i

t t e d

N o t p

e r m i t t e

d

N o t p

e r m i t t e

d

N o t p

e r m i t t e

d

200200

100100

2020

Balance sheet

adjustment

(100)(20)

The balance of an account determines whether the system displays it as a receivable or payable.

Receivables and payables are displayed separately by remaining life.



© SAP AG

Changed Reconciliation Account

Customer

Old rec. 300Old rec. 400

New rec. 100

Receivables adjustment

700700

Old receivables

700

Balance: 0

Balance:

700

100

+ 800

New receivables

Receivables adjustment

You can change the reconciliation account in the customer/vendor master record during a fiscal year.

You then can display the receivables at the balance sheet key date by using the old reconciliation account.

You have to restructure the old receivables according to the changed accounting information.



© SAP AG

Customizing: Regroup Receivables and PayablesReceivables

<= 1 year > 1 year(VS2)

Payables (customers with credit balance)<= 1 year 1 - 5 years > 5 years

(VH1) (VH2) (VH3)

Payables<= 1 year 1 - 5 years > 5 years

(VH2) (VH3)

Receivables (vendors with debit balance)<= 1 y ear > 1 y ear

(VS1) (VS2)

Receivables<= 1 y ear > 1 y ear(VS2)

Payables<= 1 year 1 - 5 years > 5 years

(VH2) (VH3)

Vendors

G/L accounts

Customers

An account assignment is not required for representing areas which are not in the subledger. Values are produced

by balancing the reconciliation account against the appropriate open-item account.



© SAP AG

DocumentationJournal (documents) Account lists (master

records and documents)

RFBELJ00

Open item balance audit trailcustomers / vendors

RFKKBU00(or RFKKBU10 from data extract)

C om pany code D ocum en t num ber Am ount

.

.

.

Totals sheet

G /L accts C ustom ers V en dorsCC Period Debit Credit D ebit Credit D ebit Credit

1000 01/1999

02/1999

Customer / vendor


Cleared items

Open itemsTotals

01/1999

02/1999

The compact document journal is a condensed list of all documents within the posting period you specify. As a

compact journal, it is suitable for reconciliation purposes (totals sheet). The system creates a separate list fornormal documents, recurring entry documents, and so on.

The balance audit trail is described in more detail in the chapter “Closing Procedures for Financial Accounting”.



© SAP AG

R

Reports

Foreign trade regu lation- reports Z2, Z3, Z4: program RFAWVZ40- report Z5A: program RFAWVZ5A

Advance return for tax on sales and purchases- See the chapter “Closing Procedures for Financial

Accounting”.

EC sales list

- See the chapter “Closing Procedures for FinancialAccounting”.



© SAP AG

R

Summary Closing Procedures ForAccounts Receivable And Payable

The closing procedures for accounts receivableand accounts payable are supported b y variousprograms and reports. The range of tools runs fromdocuments and lists to programs that can postitems in balance sheet valuations.

In an integrated system, accounts receivable issupplied with data from the sales department, andaccounts payable is supplied with data from thepurchasing department.

© SAP AG

R

Chapter Closing Procedures in InventoryAccounting

Integration of Inventory Accounting

Counting/checking- Maintaining the GR/IR clearing account- Physical inventory in Materials M anagement

Valuation/reclassification

- Lowest value, LIFO, FIFO- Standard cost estimate- Inventory cost estimate- WIP calculation

Documentation- Stock lists

Reporting- Intrastat





© SAP AG

Integration of Inventory Accounting in theBalance Sheet Profit and Loss

Sales revenue

Stock changes


Material expenses

Personnel expenses

Depreciations

Financial results

COCOCO

FI-AAFI-FI -AAAA

FIFIFI

HRHRHR

Assets Liabilities

TRTRTR

FIFIFI

FIFIFI

MMMMMM

APAPAP

TRTRTR

SDSDSD

ARARAR

BalanceSheet

Equity

Provisions

Payables

FIFIFIFixed assets

Current assetsStock on hand

Liabilities

Securities

Checks, Bank

FI-AAFI-FI -AAAA

MMMMMM

PPPPPP

MMMMMM



© SAP AG

Transactions in Inventory Accounting

Sales &Sales &

DistributionDistributionInternal and externalInternal and external

accountingaccounting

Requirements determined byRequirements determined by

Materials PlanningMaterials Planning

Master data

InvoiceInvoice

VerificationVerification

Inventory Managem entInventory Managem ent

Goodsreceipt

Goodsissue

Transferposting

WarehouseWarehouse

ManagementManagement

A

B

MaterialsBatchesVendorsG/L accountsCustomersStorage bins

.

.

.

Internal procurementInternal procurement

ProductionProductionExternal procurementExternal procurement

PurchasingPurchasing

Invoicereceipt

?

Inventory Management transactions affecting accounting are goods receipts, goods issues or transfer postings (for

example, stock transfers between two plants or a transfer posting from one material to another). Depending on howa material is valuated, these transactions can lead to a change in the value of a material.

Invoice Verification postings can also affect material valuation.



© SAP AG

Cash Discount

Paymentprogram

Invoice

Gross Net

GrossGoods receipt Net

NetInvoice receipt

Payment program

Non-operat-ing result

CashCash

discountdiscountdeducteddeducted

Stock accountcredited

Goods receipts are valuated either net or gross (this is defined in the Customizing system). When goods receipts

are posted net, the cash discount granted by the vendor leads to a reduction in the value of the goods receipt.Irrespective of the time at which a payment is made, a cash discount of 1 % is generally used.

Invoice receipts can be posted either net or gross, depending on the document type used. When a material isvaluated at moving average price, a net posting leads to a crediting of the stock on hand. Independent of the time atwhich a payment is made, a cash discount of 1 % is generally used.

When invoices are paid that were posted gross, the payment program checks which cash discount percentage isvalid at the time. The cash discount amount is then posted to a “Revenue from cash discount” account.



© SAP AG

Input tax

( 2 ) 14.70

Maintaining the GR/IR Clearing Account

( 1 ) Goods receipt for 100 pc à 1

( 2 ) Invoice receipt for 98 pc à 1

( 3 ) Account maintenance

Stock( 1 ) 100 2 ( 3 )

GR/IR clearing account( 2 ) 98 100 ( 1 )

( 3 ) 2

Vendor112.70 ( 2 )

The GR/IR clearing account is maintained in Materials Management when the quantity of a material delivered and

the quantity invoiced differ and no further receipt is expected.

We recommend you maintain the GR/IR clearing account on a monthly basis to ensure that purchase orders (andtherefore also the relevant account postings) that are considered by the system as still open are matched up in goodtime with real events.

Closing operations in Financial Accounting also involve analyzing the GR/IR clearing account and ensuring thatthe balance is zero (goods delivered, not invoiced/goods invoiced, not delivered).



© SAP AG

Physical Inventory Procedure

Print PIdocument

Differencelist

3

5

Initiate a recount

5b

Changecount

5a

BatchInput

BatchInput

Post differences6

Create physical

inventory document1

Actual count4

Blocking indicator2

With the continuous inventory method, stocks are counted throughout the whole fiscal year. Every material has to

be physically counted at least once in the course of the year.

With the periodic inventory method, all stocks are physically counted on the balance sheet key date. Every materialhas to be counted on this day. During the count the whole warehouse is blocked for any material movements.

Cycle counting is a physical inventory method which involves materials being counted at regular intervals in thecourse of a fiscal year. The interval or cycle in which a material is counted depends on the cycle counting indicatorset for the material.

The actual quantity counted within the course of a physical inventory is entered in the material master as the newquantity for the material. The difference between the quantity counted and the quantity recorded in the system isposted in Materials Management and if this results in a reduction in stock a posting is made in FinancialAccounting as follows:“Debit ‘Expenses from physical inventory differences’, credit ‘Stock’.”



© SAP AG

Material Valuation in the SAP System IHow m aterial movem ents and usually material stocks arevaluated within a fiscal year for FI and CO

Material master: Price control indicator: ?

V price(average)

S price(standard)

Movingaverage

price

x qty movedand/or stockqty

Periodicunit price

using thematerial ledger


Price fromreleased standard

cost estimate




© SAP AG

R

Material Ledger Closing

Material ledger closed for allmaterials in a valuation area

Value differences broken down

New periodic unit pricecalculated

Material revaluated, wherebythe price can be changedmanually

Program can be executed

online

or

in the background

No manu al price change possible

Material ledger closedfor a material

When the material ledger is closed for a material, the price difference postings are broken down and the balance

posted to the stock account, if sufficient stock coverage exists. If stock coverage is insufficient, the balance isposted in the relevant proportions to the stock account and to the price difference account.

The new periodic unit price is calculated by dividing the total value by the total stock and remains the same untilthe material ledger is closed or a price change made. A manual price change can only be made via the Material

closing function.



© SAP AG

Material Price Changes

Material price change => Revaluation doc ument

Price

change

Price: 4.00Total stock: 10 pcTotal value: 40.00

Price : 4.50Total stock : 10 pcTotal value : 45.00

Expenses/revenue reval.

5

Stock account

5

“Old” valuation“Old” valuation “New” valuation“New” valuation

The change in the valuation price of a material is not a master data change but an accounting transaction that leads

to the revaluation of the total stock of a material in a valuation area.

When a material is valuated at standard price, it can often be necessary to change the valuation price when there isa large difference between the moving average price (which reflects developments in the delivered cost of thematerial) and the standard price.

When a material is valuated at moving average price, the valuation price changes in accordance with the deliveredcost of the material. A manual price change is therefore only necessary in exceptional circumstances - for example,if no movements have taken place over a long period of time.



© SAP AG

Lowest Value Determination

Comm ercial/tax price 1Comm ercial/tax price 2

Material master

As per rate ofmovement or

range of coverage

Percentagedevaluation

Commercial/taxprice 1

minus devaluation

Multi-level

As per currentmarket prices

Lowestcurrent price

Valuationprice

Lowestcurrent

market price

Minimum

Single-level


range of coverage


Valuation priceminus devaluation

Lowestcurrent price

Lowestcurrent

market price

Valuationprice

Minimum


Single-level

Both methods to determine the lowest value can be used separately (single-level procedure) or in combination

(multi-level procedure).

Market prices can be determined by analyzing receipts for purchase orders (goods receipts and invoice receipts).Market prices from purchasing info records, purchase orders and contracts can also be used.

Materials that are slow/non-moving or that have a long range of coverage can be devaluated by a percentage.

The results of lowest value determination can be used for drawing up a balance sheet for both tax and commercialpurposes. Material stocks can also be revaluated.

To update the results of lowest value determination in the material master and to create a batch input session forrevaluating material stocks, you have to run these programs in the background.



© SAP AG

R

Closing Operations andDocumentation

Once a m onth at the start of a new period the period closing program ha sto be run in Materials Managem ent. This program is run in the backgroundand does the following:

It closes the period before last and opens a new period to whichpostings are made in Materials Management. MaterialsManagement postings can only be made to the current period andthe previous period.

It updates stock and consumption values for the previous monthand the current period.

If the new month coincides with a new year, the previous yearfields are also filled.

A num ber of reports are available in the Log istics Information System toenable Materials Managem ent to document stock and consump tion figures.



© SAP AG

INTRASTAT Declaration

Vendor

master record

Import data

Import data

Materialmasterrecord/

info record

Dataselection

Reporting period03/1994

INTRASTATdeclaration

Paper

PC file

PO

Vendor 123Paris

100 pc mat XY

GR : 10.03.IR: 12.03.

Errorlog

Data required for INTRASTAT declarations can be maintained in purchase orders placed with foreign vendors

whose legal headquarters are situated in a European Community country.

If import data has been maintained in the vendor master record or in the material master record, this appears asdefault data in the purchase order.

An INTRASTAT declaration is created in two steps:- The goods receipts are selected for those purchase orders that are to be included in the declaration.- The declaration is created based on the goods receipts selected.



© SAP AG

R

Summary Closing Operations inInventory Accounting

The quantities counted during a physical inventoryform the basis for valuating stocks.

How material values are determined for the currentassets calculation depends on the origin of thematerials: lowest value determination in combinationwith either LIFO or FIFO methods is used formaterials procured externally; product costing isused for materials produced in-house and W IPcalculation for work in progress.

A number of reports are available in the Logistics

Information System to enable you to document stockand consum ption figures.

© SAP AG

R

Chapter Closing Procedures in InventoryAccounting

Integration of Inventory Accounting

Counting/checking- Maintaining the GR/IR clearing account- Physical inventory in Materials M anagement

Valuation/reclassification

- Lowest value, LIFO, FIFO- Standard cost estimate- Inventory cost estimate- WIP calculation

Documentation- Stock lists

Reporting- Intrastat





© SAP AG

Integration of Inventory Accounting in theBalance Sheet Profit and Loss

Sales revenue

Stock changes


Material expenses

Personnel expenses

Depreciations

Financial results

COCOCO

FI-AAFI-FI -AAAA

FIFIFI

HRHRHR

Assets Liabilities

TRTRTR

FIFIFI

FIFIFI

MMMMMM

APAPAP

TRTRTR

SDSDSD

ARARAR

BalanceSheet

Equity

Provisions

Payables

FIFIFIFixed assets

Current assetsStock on hand

Liabilities

Securities

Checks, Bank

FI-AAFI-FI -AAAA

MMMMMM

PPPPPP

MMMMMM



© SAP AG

Transactions in Inventory Accounting

Sales &Sales &

DistributionDistributionInternal and externalInternal and external

accountingaccounting

Requirements determined byRequirements determined by

Materials PlanningMaterials Planning

Master data

InvoiceInvoice

VerificationVerification

Inventory Managem entInventory Managem ent

Goodsreceipt

Goodsissue

Transferposting

WarehouseWarehouse

ManagementManagement

A

B

MaterialsBatchesVendorsG/L accountsCustomersStorage bins

.

.

.

Internal procurementInternal procurement

ProductionProductionExternal procurementExternal procurement


Invoicereceipt

?

Inventory Management transactions affecting accounting are goods receipts, goods issues or transfer postings (for

example, stock transfers between two plants or a transfer posting from one material to another). Depending on howa material is valuated, these transactions can lead to a change in the value of a material.

Invoice Verification postings can also affect material valuation.



© SAP AG

Cash Discount

Paymentprogram

Invoice

Gross Net

GrossGoods receipt Net

NetInvoice receipt

Payment program

Non-operat-ing result

CashCash

discountdiscountdeducteddeducted

Stock accountcredited

Goods receipts are valuated either net or gross (this is defined in the Customizing system). When goods receipts

are posted net, the cash discount granted by the vendor leads to a reduction in the value of the goods receipt.Irrespective of the time at which a payment is made, a cash discount of 1 % is generally used.

Invoice receipts can be posted either net or gross, depending on the document type used. When a material isvaluated at moving average price, a net posting leads to a crediting of the stock on hand. Independent of the time atwhich a payment is made, a cash discount of 1 % is generally used.

When invoices are paid that were posted gross, the payment program checks which cash discount percentage isvalid at the time. The cash discount amount is then posted to a “Revenue from cash discount” account.



© SAP AG

Input tax

( 2 ) 14.70

Maintaining the GR/IR Clearing Account

( 1 ) Goods receipt for 100 pc à 1

( 2 ) Invoice receipt for 98 pc à 1

( 3 ) Account maintenance

Stock( 1 ) 100 2 ( 3 )

GR/IR clearing account( 2 ) 98 100 ( 1 )

( 3 ) 2

Vendor112.70 ( 2 )

The GR/IR clearing account is maintained in Materials Management when the quantity of a material delivered and

the quantity invoiced differ and no further receipt is expected.

We recommend you maintain the GR/IR clearing account on a monthly basis to ensure that purchase orders (andtherefore also the relevant account postings) that are considered by the system as still open are matched up in goodtime with real events.

Closing operations in Financial Accounting also involve analyzing the GR/IR clearing account and ensuring thatthe balance is zero (goods delivered, not invoiced/goods invoiced, not delivered).



© SAP AG

Physical Inventory Procedure

Print PIdocument

Differencelist

3

5

Initiate a recount

5b

Changecount

5a

BatchInput

BatchInput

Post differences6

Create physical

inventory document1

Actual count4

Blocking indicator2

With the continuous inventory method, stocks are counted throughout the whole fiscal year. Every material has to

be physically counted at least once in the course of the year.

With the periodic inventory method, all stocks are physically counted on the balance sheet key date. Every materialhas to be counted on this day. During the count the whole warehouse is blocked for any material movements.

Cycle counting is a physical inventory method which involves materials being counted at regular intervals in thecourse of a fiscal year. The interval or cycle in which a material is counted depends on the cycle counting indicatorset for the material.

The actual quantity counted within the course of a physical inventory is entered in the material master as the newquantity for the material. The difference between the quantity counted and the quantity recorded in the system isposted in Materials Management and if this results in a reduction in stock a posting is made in FinancialAccounting as follows:“Debit ‘Expenses from physical inventory differences’, credit ‘Stock’.”



© SAP AG

Material Valuation in the SAP System IHow m aterial movem ents and usually material stocks arevaluated within a fiscal year for FI and CO

Material master: Price control indicator: ?

V price(average)

S price(standard)

Movingaverage

price


Periodicunit price

using thematerial ledger


Price fromreleased standard

cost estimate




© SAP AG

R

Material Ledger Closing

Material ledger closed for allmaterials in a valuation area

Value differences broken down

New periodic unit pricecalculated

Material revaluated, wherebythe price can be changedmanually

Program can be executed

online

or

in the background

No manu al price change possible

Material ledger closedfor a material

When the material ledger is closed for a material, the price difference postings are broken down and the balance

posted to the stock account, if sufficient stock coverage exists. If stock coverage is insufficient, the balance isposted in the relevant proportions to the stock account and to the price difference account.

The new periodic unit price is calculated by dividing the total value by the total stock and remains the same untilthe material ledger is closed or a price change made. A manual price change can only be made via the Material

closing function.



© SAP AG

Material Price Changes

Material price change => Revaluation doc ument

Price

change

Price: 4.00Total stock: 10 pcTotal value: 40.00

Price : 4.50Total stock : 10 pcTotal value : 45.00

Expenses/revenue reval.

5

Stock account

5

“Old” valuation“Old” valuation “New” valuation“New” valuation

The change in the valuation price of a material is not a master data change but an accounting transaction that leads

to the revaluation of the total stock of a material in a valuation area.

When a material is valuated at standard price, it can often be necessary to change the valuation price when there isa large difference between the moving average price (which reflects developments in the delivered cost of thematerial) and the standard price.

When a material is valuated at moving average price, the valuation price changes in accordance with the deliveredcost of the material. A manual price change is therefore only necessary in exceptional circumstances - for example,if no movements have taken place over a long period of time.



© SAP AG

Lowest Value Determination

Comm ercial/tax price 1Comm ercial/tax price 2

Material master


range of coverage


Commercial/taxprice 1

minus devaluation

Multi-level


Lowestcurrent price

Valuationprice

Lowestcurrent

market price

Minimum

Single-level


range of coverage


Valuation priceminus devaluation

Lowestcurrent price

Lowestcurrent

market price

Valuationprice

Minimum


Single-level

Both methods to determine the lowest value can be used separately (single-level procedure) or in combination

(multi-level procedure).

Market prices can be determined by analyzing receipts for purchase orders (goods receipts and invoice receipts).Market prices from purchasing info records, purchase orders and contracts can also be used.

Materials that are slow/non-moving or that have a long range of coverage can be devaluated by a percentage.

The results of lowest value determination can be used for drawing up a balance sheet for both tax and commercialpurposes. Material stocks can also be revaluated.

To update the results of lowest value determination in the material master and to create a batch input session forrevaluating material stocks, you have to run these programs in the background.



© SAP AG

R

Closing Operations andDocumentation

Once a m onth at the start of a new period the period closing program ha sto be run in Materials Managem ent. This program is run in the backgroundand does the following:

It closes the period before last and opens a new period to whichpostings are made in Materials Management. MaterialsManagement postings can only be made to the current period andthe previous period.

It updates stock and consumption values for the previous monthand the current period.

If the new month coincides with a new year, the previous yearfields are also filled.

A num ber of reports are available in the Log istics Information System toenable Materials Managem ent to document stock and consump tion figures.



© SAP AG

INTRASTAT Declaration

Vendor

master record

Import data

Import data

Materialmasterrecord/

info record

Dataselection

Reporting period03/1994

INTRASTATdeclaration

Paper

PC file

PO

Vendor 123Paris

100 pc mat XY

GR : 10.03.IR: 12.03.

Errorlog

Data required for INTRASTAT declarations can be maintained in purchase orders placed with foreign vendors

whose legal headquarters are situated in a European Community country.

If import data has been maintained in the vendor master record or in the material master record, this appears asdefault data in the purchase order.

An INTRASTAT declaration is created in two steps:- The goods receipts are selected for those purchase orders that are to be included in the declaration.- The declaration is created based on the goods receipts selected.



© SAP AG

R

Summary Closing Operations inInventory Accounting

The quantities counted during a physical inventoryform the basis for valuating stocks.

How material values are determined for the currentassets calculation depends on the origin of thematerials: lowest value determination in combinationwith either LIFO or FIFO methods is used formaterials procured externally; product costing isused for materials produced in-house and W IPcalculation for work in progress.

A number of reports are available in the Logistics

Information System to enable you to document stockand consum ption figures.

© SAP AG

R

Chapter Period Closing in Controlling and inthe Projects System

Scope o f cost accounting and itsrelationship to financial accounting

Restructuring/ValuationPeriodic allocations within cost accoun ting

and settlements to financial accounting

DocumentationInformation systems

ReportingReporting for internal and externalpurposes





© SAP AG

Controlling in R/3

Cost elements

Cost centersCost centers

Material stocksMaterial stocks

Controlling

ar

ea

Profit

Centers

Person-ne l

Material

Cost objectsCost objects

Profitability segmen ts

AssetsAssets

Externalprocure-ment

Overhead ord.Overhead ord.Overhead proj.Overhead proj.

ProcessesProcesses

CO -CO -PAPA

Billingdoc.

CO -CO -PAPA Revenue types

FIFI

MMMM

HRHR

Capital AMAM

CO -CO -OM -OM -CE LCE L

CO -CO -OM -OM -CC ACC A

CO -CO -AB CAB C

CO -CO -OP AOP A

CO -CO -AB CAB C

AAAA MMMM

CO -CO -PCPC

SDSDAccr.

EC -EC -PC APCA

.

.

.

Controlling in the R/3-System consists of:

Overhead Management (CO-OM)

- Reconciliation Ledger- Cost Center Accounting- Overhead Orders and Projects- Activity Based Costing

Product and Production Management

Profitability Analysis

Profit Center Accounting can also be used to provide internal views of the enterprise from Enterprise Controlling(EC).



© SAP AG

Organizational Units in the SAP System from a CO Standpoint

Financials

Companycode

Organizationalunit in externalaccounting

Businessarea

Independentaccountingunit (for internalbalance sheets)

ControllingControlling

ProfitProfit

centercenterControllingControlling

areaarea

Organizationalunit inControlling

Organizationalunit inProfitabilityAnalysis

Organizationalunit inProfit CenterAccounting

Client

Cross-applicationunit (technicalsub-division)

Logistics

Plant

OperatingOperating

concernconcern

Organizationalunit inCost CenterAccounting

CostCost

centercenter

Organizationalunit in MaterialsManagementand PPS

The company is defined for financial accounting using company codes and business areas, and for cost accounting

using a controlling area, an operating concern, cost centers and profit centers.

The controlling area represents the structure of the enterprise from the standpoint of controlling. A company codeis a unit for which financial statements are created in Financial Accounting. This can be but need not be identical tothe controlling area.

The operating concern is an organizational unit for which the sales market is segmented in a uniform way.

In addition to these units, another important unit in Controlling is the plant, which represents a business location orbranch of a company. The plant is an organizational unit in Materials Management, Logistics and ProductionPlanning, and is assigned to a company code -- and therefore also to a controlling area -- via its assignment to avaluation level.



© SAP AG

Assignment of Company Codes to Controlling Areas

Companycode

Companycode...

Companycode 1

Companycode n


areaareaControllingControlling

areaarea

You can combine company codes and controlling areas in different ways. This makes it possible to represent

companies with different organizational structures.

If more than one company code is assigned to a controlling area, you can perform cost accounting across companycode boundaries. This means, for example, that you can allocate data to different company codes.



© SAP AG

Combination of Company Codes andControlling Area

Business area 0001Business area 0001



Company code 1 Company code 2

ControllingControllingarea 1000area 1000







FI

CO

Reconciliation ledgerReconciliation ledger

If you work with business areas in a company code, these business areas are also used in cost accounting.

If more than one company code or business area is assigned to a controlling area, it may become necessary toreconcile the data in Financial Accounting and Controlling if you have cross-company or cross-business-areaallocations. This is possible using the reconciliation ledger. The reconciliation ledger creates the reconciliationpostings which are needed for this in Financial Accounting.



© SAP AG

The Chart of Accounts

0 1 2 3 7 8 9Currentfinancialassetsandshort-termcapital

4Non-operatingexpensesandprofits

Stoffe -Bestände

primarycostele-ments

Transferof FIpostings

Imputingcosts

Distrib.

5 6secon-darycostele-ments

Assess-ment

Stock ofsemi-finishedandfinishedgoods

Income/ Changesin stock/ capitalizedinternalactivities


Clo-sing

secon-darycostele-ments

Internalalloca-tions

Ordersettle-

ment

Financial AccountingFinancial Accounting CO AccountsCO A ccounts Financial AccountingFinancial Accounting

ControllingControllingOverhead

ManagementProfitability

Analysis

Example: GKR

The chart of accounts contains all the accounts in Financial Accounting and all the cost elements in Controlling.

From the cost accounting point of view, this represents an integrated accounting system, since the expense andrevenue accounts in Financial Accounting correspond to the primary cost elements and the revenue elements, andthe postings are passed on to cost accounting in realtime.



© SAP AG

Primary cost elements

Primary cost elementsCost elements forimputed costs

Secondary cost elements

Allocation cost elementsAssessment cost elem.Overhead surchargesCost elements for ordersettlement

Revenue elements

Revenue elements

Sales deductions

Account

G/L accounts Subs.ledger accts

Inc.sta tem t a ccts B al.she et acc ts M at. sto ck accts

Expense accts Fxd asset accts

Accounts thatcan receive Customer acctsdirect postingse .g. reco nc.a ccts V endo r

accountsVendorpayables Vendor 11111,000

1,000Revenue accts

Accounts thatcan receive Financial assetdirect postings m gm t accts

e.g. bank accts

Cost Elements

Expense accounts in Financial Accounting are stored in cost accounting as primary cost elements. The primary cost

elements need to be defined as G/L accounts in Financial Accounting before you can create them in costaccounting.

Primary cost elements must always be assigned to a cost-bearing object, such as a cost center.

Secondary cost elements are used exclusively in cost accounting. They cannot have a corresponding G/L accountin Financial Accounting. These are only defined in Controlling.

If you want to analyze revenues in cost accounting, you need to create revenue elements in cost accounting, similarto the primary cost elements. Revenues in cost accounting are purely statistical.

Each cost element is assigned a cost element type which determines which activities the cost element can be usedfor. For example, cost element type "3" (Imputed cost element/cost element %) is used to assign imputed costs foroverhead. This cost element type also allows primary costs to be posted from Financial Accounting.



© SAP AG

Allocating Costs to CO Objects I

Allocation Criteria

Receiver Sender

Allocation cost centerAllocation cost center"periodic reposting""periodic reposting"

Service cost centerService cost center

"Distribution""Distribution"

Service cost centerService cost center

" Internal activity" Internal activity

allocation "allocation "

Primary cost centerInternal order/Project

Retain original costelements

Retain original costelements

Use cost elements forinternal activityallocation

Cost centerInternal order/Project

Cost center, Internal order,Project, PP order

Credit objectCredit object

Cost ctr / accrual mgt orderCost ctr / accrual mgt order

"Accruals""Accruals"

Use settlement costelements

Cost center

Service/ Primary cost centerService/ Primary c ost center

"Activity clearing at actual"Activity clearing at actual

activity price"activity price"

Use cost elements forinternal activityallocation

Cost center

Whereas the first four accounting methods listed in the picture are only used in Overhead Management, the other

two can also be used for objects outside of Overhead Management.

All allocations can be repeated as often as you want.



© SAP AG

Cost Clearing in External Accounting

l Settlement from internal accounting to externalaccounting takes place through:

n Settlement of investment orders to assets underconstruction or assets

n Settlement of overhead cost orders to generalledger (e.g. to fixed asset clearing account, whereFI-AA cannot be used)

n Settlement of production controlling to inventoryaccounting

n Settlement of projects (for settlement of orders)



© SAP AG

Reconciliation Ledger

...

General ledger

Reconciliation postings

Controlling

001 002001 002 001 002

Company codesBusiness areas

Reconciliation postings

Navigations

aidsReconciliationreports /Costanalyses

The reconciliation stores all the costs in all of Controlling in summarized form. The reconciliation ledger

represents cost element accounting in the R/3 system.

For cross-company or cross-business-area postings in Controlling, the system only creates line items inControlling. This information is not automatically passed on to Financial Accounting. The reconciliation ledgerlets you reconcile these postings with Financial Accounting.

Apart from reconciling Controlling and Financial Accounting, the reconciliation ledger also has the followingfunctions:

CO cost analyses with short runtimes

Navigation tools and an introduction into Controlling from the standpoint of profit and loss statements.



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Structure of the Reconciliation Ledger

AccountCompany codeBusiness areaOriginObject typeObject classFunction area

AccountCompany codeBusiness areaOriginObject typeobject class

Function areaTransactionDebit/credit indicatorControlling area currencyControlling area currencyCompany code currencyCompany code currencyGroup currencyGroup currencyQuantityQuantity

ObjectObject

PartnerPartner

This picture shows the structure of the summary records in the reconciliation.

In the reconciliation ledger, the postings are distinguished according to

company code

business area

origin (sub-division of the cost elements)

object type (cost center, order, project, etc.)

object class

function area

All the objects in Controlling (cost centers, orders, etc.) are assigned in some way to an object class. Depending onthe assignment, the reconciliation ledger updates one data record for the object class for each posting to that object.This gives you the high degree of summarization.

For internal allocations, the fields listed in the graphic are stored for partners as well (senders, receivers). Thismakes it easy to represent transfers between company codes.

In addition, the records are updated according to the business transaction and according to credits and debits.

Three currency amounts (controlling area, company code and group currency) and one quantity are updated.

The reconciliation ledger is updated either simultaneously with each posting or later using a special postingprogram.



© SAP AG

Reconciliation Postings

Company code:Object class:


Activity:Debit/Credit:

Value:

0001Overhead001OverheadTransferCredit$500-

0002Overhead001OverheadTransferDebit$500+

of thereceiver

of thesender

Profit/loss accts:Internal transfers

500

500

500

500

Account determination

$500

Company code0002

Company code0001

Reconc.ledger

Generalledger

Allocation accounts

Postings in Controlling which affect different company codes, business areas or function areas can be passed on to

Financial Accounting in order to create reconciliation postings there.

You can create reconciliation postings at any time. However, be sure to do so after the last relevant CO postingshave been made.

Prerequisites for reconciliation postings are:

Adjustment and clearing accounts must exist in Financial Accounting

The adjustment accounts must be assigned to business transactions or object types, or a combination of these.

Utility functions are available when you create reconciliation postings. These include the functions “Detail list”and “Test run”.



© SAP AG

Reconciliation Reports

DifferenceDifferencedue todue to

transferstransfers

OKOK

General General

ledger ledger

FIFI COCO Reconciliation Reconciliation

ledger ledger

Reconciliation Reportfor company code 0001

Account FI CO Balance400000 200000 150000 5000050000415000 500000 500000 0

Special cost element reports are available to let you analyze the reconciliation ledger.

These reports display the figures in cost accounting and in the general ledger.

You can analyze the reconciliation ledger across application boundaries to determined the costs incurred. You candisplay the costs according to object types, function areas, object classes, company codes or business areas.



© SAP AG

Account-Based and Costing-BasedProfitability Analysis

Account Plan Actual

800000 Revenues808000 Sales deductions890000 Cost of goods m fd

550000 Cost center assessment231000 Price difference account

- Display in account form- Reconciliation with Financial Accounting

at account level

Value field Plan Actual

Sales qua ntityRevenuesSales deductionsVariable material costsVariable production costsVar. misc. cost of goods mfdVar. cost center under/overabsorp.Variable price variance from prod.Variable qty variance from prod.

Other variable variances from prod.- Display in items of the contrib.

margin scheme- Reconciliation at a higher level

(account groups, item groups)

Account-basedprocedure

Costing-basedprocedure

Profitability Analysis uses two different approaches, which you can use individually or at the same time:

the account-based approach

Costs and revenues are displayed in accounts structured according to those in Financial Accounting.This makes itpossible to reconcile your data in Profitability Analysis with that in Financial Accounting at the account level.

the costing-based approach

Costs and revenues are displayed in values fields which you yourself define. The cost elements are then assignedto these value fields. In addition to value fields, you can also use quantity fields. Value fields let you break downcosts to different items -- independently of the breakdown in financial accounting -- where you see it asimportant. This means, for example, that you can decide in how much detail you want to see the productionvariances and define your value fields accordingly.



© SAP AG

Transfer of Payables/Receivables

Item 1 Profit center A 1,000Item 1 Profit center A 1,000Item 2 Profit center B 2,000Item 2 Profit center B 2,000Item 3 Profit center C 3,000Item 3 Profit center C 3,000

1st step: Carry out period-closing activities for payables and receivables inFI (payables and receivables are sorted according to profit center)

2nd step: Run transfer program in Profit Center Accounting

Sales order Posting in FI

to revenue 1,000 PrCtr Ato revenue 1,000 PrCtr AReceivables to revenue 2,000 PrCtr BReceivables to revenue 2,000 PrCtr B

to revenue 3,000 PrCtr Cto revenue 3,000 PrCtr C

Receivables Profit center A 1,000Receivables Profit center A 1,000Receivables Profit center B 2,000Receivables Profit center B 2,000

Receivables Profit center C 3,000Receivables Profit center C 3,000

FIFISDSD

EC -EC -PC APC A

Before you can transfer payables and receivables, you first need to calculate the payables and receivables to be

split in Financial Accounting. In this step, the payables and receivables are broken down according to profit centerand business area. The results are saved and displayed as a list.

Then you can transfer the data to Profit Center Accounting. You receive a list of all the company codes in thecurrent controlling area. Select the desired company codes and choose the periods you want to transfer. Thepayables and receivables are posted to Profit Center Accounting in the reconciliation accounts in the general

ledger. No Financial Accounting documents are created in the process. If you choose line items, the system creates a line item for each customer and vendor in Profit Center Accounting. The system displays an error log when processing is finished. You can analyze the posted data using standard

reports in Profit Center Accounting. The reports show the closing balance for the selected period. Note: The program first transfers the closing balance of open payables and receivables. It also finds the closing

balance for the previous period and posts this with a negative sign. Consequently, the summary records in eachperiod contain the movements in the payables and receivables, as is usually the case in Financial Accounting.



© SAP AG

Report Techniques in Cost Object Controlling

Auftrag123Auftrag123 TargetTarget ActualActual

MaterialMaterial 1,8001,800 3,0003,000

Internal activitiesInternal activities 60 0600 600600

External activitiesExternal activities 40 0400 400400

Plant activityPlant activity 2,8002,800 --

BalanceBalance 1,2001,200

Plant 01Plant 01 TargetTarget ActualActual

Material AMaterial A 6,0006,000 6,0006,000

Material BMaterial B 12,00012,000 17,50017,500

Material CMaterial C 5,5005,500 7,5007,500

Material BMaterial B TargetTarget ActualActual

OrderOrder 123123 2,8002,800 4,0004,000

OrderOrder 345345 3,5003,500 4,5004,500

OrderOrder 456456 2,5002,500 3,0003,000

Order selection

Product drill-down

MaterialCost center/

activity typeWBS element

Cost objectOrder

Cost element report

Itemization Origin Line itemsOrder/costobject hierarchy

Plant 01Plant 01

Material BMaterial B

OrderOrder 123123

OrderOrder 345345

Object list

You can call up reporting either directly in cost element reporting or via the product drill-down, order selection or

order/cost object hierarchy.



© SAP AG

CO-PA Information System

Flexible hierarchy


DivisionDivision

Product groupProduct group

AA BB CC ZZ

. . .. . .

Line itemsLine items

Report type "segmentlist/ranking list"

RevenuesSales deductionsNet revenuesCGM

CM ICGM

variable

fixed-

-

-

ZXAB

xxxxxxxx

. . .

Report type"step-down"

. . .

Exception reporting

yy > 25,000 USD

Product group A

P ro du ct 1 yyP ro du ct 2 yyP ro du ct 3 yy

ProductProduct

A number of methods are available to let you analyze the profitability of the segments of your business:

flexible hierarchies of characteristics, navigation within these hierarchies and display of reports in step-downform for value fields or accounts

displaying a ranking list of profitability segments, sorted according to criteria which you can define

display of profitability segments which fulfill certain criteria and highlighting of especially critical segments

You can define your own reports to meet your company’s requirements. There are two types of report which youcan define:

a basic report, which you can define quickly and easily in order to analyze specific information spontaneously

a form report, which provides you with all the available formatting and display functions, primarily for use asstandard reports for repeated analyses



© SAP AG

R

Summary Period Closing InControlling And Projects System

The main organizational unit in OverheadManagement and Production Controlling is thecontrolling area, which can store cross-company-code as well as cross-business-area data.

The reconciliation ledger m akes it possible for you totransfer the data in cost accounting to financialaccount for the purpose of reconciliation.

© SAP AG

R

Chapter Closing Operations for AssetAccounting Assignment of assets to balance sheet

Count/check- Report tree (e.g. asset lists)

Restructure/assess value- determining depreciation- settling investment orders to assets under

construction or assets- capitalization of assets under construc tion- post cost-acct. depreciation/imputed interest- posting book/tax depreciation

Document- asset history sheet

Report- property list





© SAP AG

. . .

Company code 1001

Balance SheetBalance Sheet

1000

Company code 1000


1000 2000 3000 - - -

AssetsAssets

intangible assetsintangible assets

fixed assetsfixed assets

financial assetsfinancial assets

Profit + loss statementProfit + loss statement

ExpensesExpenses

depreciationdepreciation

- - -

Business area


ClientClient

Assets on the Balance Sheet

SoftwareSoftware

MachinesMachines

SecuritiesSecurities

1 0 0

5 0

The client is the highest level in the SAP System hierarchy. Specifications which you make on this level apply to

all company codes.

Each company code is an independent accounting unit. The legally required balance sheet and profit and lossstatement are created on this level.

A business area is a separate unit in business terms for which an internal balance sheet and profit and lossstatement can be created.



© SAP AG

C os t ce nte r O rde r

ACTUAL PLAN

Posting asset values

Investmentsupport

Periodic Processing - OverviewPeriodic Processing - Overview

Index figuresYear Index fig.yyyy 100.000yyyy+1 105.125yyyy+2 109.857

COCO

Revaluation

Depreciationposting run

Primary costplanning

Depreciation area XY: ExampleDepreciation area XY: Exampleàà periodic posting of asset valuesperiodic posting of asset values

Asset balanceAsset balance AccountAccount

10000 10000

31

Dec

Calendar

Fiscal year change

31

Dec

Calendar

Fiscal year change

Year-end closing

Fiscal Year change/Year-end closing

Settings

. . .

PeriodicPeriodicprocessingprocessing

Periodic processing comprises those tasks in Asset Accounting which must be performed at periodic intervals.

Also included are tasks to be performed as part of the special valuation of fixed assets (for example, calculatingreplacement values).

Replacement values and insurable values are updated in the system with the help of index series. You need todefine the characteristics of the index series in Asset Accounting Customizing. The specification of currentindex figures is a regular Asset Accounting task.

Investment support is a subsidy which a company has received for certain asset investments. Assets which areeligible for such a subsidy are marked in the asset master records with an investment support key (for furtherinformation, see the System Administration Guide). All specifications for claiming the investment support arestored in the definition of this key. You can post the claim manually or in a mass procedure.

At present only the values of one depreciation area can be automatically posted online in Financial Accounting:Therefore, the changes to asset values (transactions) from other areas with automatic posting have to be posted

periodically to the appropriate reconciliation accounts. In the case of derived depreciation areas which do notrecord acquisition and production costs, the program posts proportional value adjustments due to retirements,transfers, post-capitalization and so on.

If you want to plan primary costs on a cost center basis, you can periodically determine planned depreciationand interest and pass these on to primary cost planning in the CO system via a report.



© SAP AG

Report Selection

Asset list

Balance sheet explanations

Explanations for P&L

Cost accounting

Depreciation forecast

Special valuationsReconciliation

Preparations for closingDaily total Taxes

History

Individual asset

The Asset Accounting Information system consists of a report tree. The report tree is a freely definable

hierarchical structure. You specify the structure of the report tree in Asset Accounting Customizing underInformation system.

When you double-click on a node of the hierarchy, the system calls up a standard report. SAP provides astandard report tree (FIAA) for Asset Accounting. You can copy this tree and modify it as needed:

remove branches of the structure

add branches to the structure

change the report call (call of a user report)

The report tree is found in the application menu for Asset Accounting under Info system. The standard report treecontains all the standard reports for Asset Accounting. The system always displays the report tree that is currentlydefined in FI-AA Customizing.

You can copy and modify the standard report tree or the report tree of another user, under Edit B User tree. Inthis way, you can set up the information system according to the needs of the individual user.



© SAP AG

Bus.transactions during"under construction"

phase

Cost center

Settlement of Cap. Investment Orders

Capital Investment Measure

Order

Asset under construction

Asset historysheet

Periodicsettlement

Asset 1Asset 1

Asset 2Asset 2

Asset 3Asset 3

Finalsettlement

The SAP-IM Investment Management component enables you to create orders that automatically have an attached

asset under construction. This is possible when you enter an investment profile in the master record of the order.

During the construction phase, you post all business transactions to the order. During the monthly settlement, allitems that are not settled directly to receivers in controlling (such as cost centers) are settled directly to the assetunder construction. In your monthly financial reports, the capital investment measure appears under assets.

At the final settlement, you settle the asset under construction to the final receivers. You enter these receivers inthe settlement rules for the order. The asset under construction is cleared automatically at the time of the finalsettlement.

For this special type of order, you can use both the usual methods of settlement for internal orders, as well as aspecial line item settlement.



© SAP AG

Asset 3Asset 3

Asset 2Asset 2

Asset 1Asset 1

Gen. masterdata

Depreciationareas

A cqu is. R etm t. T ransfers

Asset underAsset under

constructionconstructionAcquisitionsAcquisitions

InvestmentInvestmentsupport measuressupport measures

Down paymentsDown payments

SpecialSpecialdepreciationdepreciation

Depreciation areasDepreciation areas

T r a n

s f e r s

A c q u i s i t i o

n s

Capitalization of Assets under Construction

Asset historysheet

Com pleted assets

A.u.C.

Buildings

General master dataGeneral master data

Automatic handling of specialdepreciation and investment support!

Assets you produce yourself have two phases that are relevant to Asset Accounting:

the under construction phase

the useful life.

Generally, the assets have to be shown in two different balance sheet items during these two phases. Therefore,they have to be managed using a different object or asset master record during the under-construction phase thanfor the completed asset. The transfer from the under-construction phase to completed asset is referred to here as“capitalization of the asset under construction.” You can manage assets under construction in the FI-AA Systemin two ways (depending on the functions you need):

as a 'normal' asset master record

as an asset master record with line item management.

The capitalization of the asset under construction is basically the transfer to a completed asset. This transfer ishandled differently in the two instances.

When you capitalize the asset under construction, the system automatically separates the transactions from theprevious year from the transactions from the current year:TTY 340 - Acquisitions from previous years transferred from asset under constructionTTY 341 - Acquisitions from previous years transferred to completed assetTTY 345 - Acquisitions from current year transferred from asset under constructionTTY 346 - Acquisitions from current year transferred to completed asset

If you have more extensive capital investment measures, we recommend using the R/3 IM (InvestmentManagement) System. Using this system, you can represent capital investments simultaneously as assets underconstruction (for accounting purposes) and internal orders or projects (for controlling purposes). For moreinformation, see the documentation for the IM (Investment Management) System.



© SAP AG

Line Item Settlement of Asset under Construction

Asset u. Const.Asset u. Const.

InvoiceInvoiceEngineers, Inc.Engineers, Inc.

steel girderssteel girders

excavationexcavation

InvoiceInvoiceConstructo,Constructo, Inc.Inc.

beamsbeams

constructionconstruction

InvoiceInvoice

Electro, Ltd.Electro, Ltd.

copper cablecopper cable

InstallationInstallation

11

22

33

100%100%

70%70%

20%20%

10%10%

10%10%

80%80%

Office buildingOffice building

Heating systemHeating system

LightingLighting

Cost CenterCost Center

SupplierWithdraw fromstock

Internal activityOrder

ASSETS

EX-PENSE

When performing a line item settlement of an asset under construction to one or more completed assets, you

should proceed as follows:

1. Select all line items which you want to settle in the same proportion to the same receiver.

2. Define the distribution rule for these line items.

3. Post the settlement of line items in the desired manner to the specified receivers.

Please note that this posting procedure settles all line items to which a posting rule is allocated.



© SAP AG

Depreciation Posting Program

Ordinarydepreciation

Specialdepreciation

Periodicrevaluation

I n d e x

I n d e x

manuallyplanneddeprecia-tion

Dep.Dep.--

PPOOSSTTIINNGG PPRROOGGRR

AAMM C ost cen te r O rd er

Cost element

COCO

Individual assets

Accounts

FIFI

Interest10 %. . . . .

FI-AAFI-AA

The calculation and planning of depreciation, interest and revaluation is controlled by keys in the Asset

Accounting system. They can also be entered manually using a special posting transaction (for moreinformation, see current-value depreciation). In both cases, these planned values in Asset Accounting have to beperiodically posted to the corresponding expense and asset balance sheet accounts in the general ledger. Thisperiodic posting takes place using a batch input session. The posting session also posts the different depreciationtypes, interest and revaluation, in addition to the writing-off and allocation of special reserves. The system doesnot create individual documents, only summarized posting documents (per general ledger account).



© SAP AG

Documentation: Asset History Sheet

APC FY start- Dep. FY start

= Book val. at FY start

+ Acquisition- Dep. on acquis.

Post-capitaliz.

- Retirement+ Dep. on ret.

Down payment

TransferDep. on transfer

Inv. support

= Current APC

Accum. dep.+

Write-up=

Curr. book val.

0 10 20 30 99

The asset history sheet is the most important and most comprehensive year-end report or intermediate report.

You can create it using any sort versions, and with totals at any group level, just like any other report. Inaddition, you can create a compact totals list that does not contain information on the individual assets.

Basic versions of the asset history sheet:

You can now freely define line and column structure of the asset history sheet. SAP supplies country-specificversions of the asset history sheet. These meet the legal requirements in the given country. There are alsoadditional history sheet versions.

You can define your own history sheet version. You can freely define

the size (maximum of 10 lines by 8 columns),

the headers of the history sheet items,

supplying of values to the history sheet itemsEnter this history sheet version as a parameter when you request the asset history sheet.



© SAP AG

Fiscal Year Change/Year-end Closing

Asset valuesat fiscal year start Year 2

Transaction 10000 0APC 10000 10000Ordinary dep. 3000 - 2100-Net book value 7000 4900


Transaction 0 10000APC 0 10000Ordinary dep. 0 3000 -Net book value 0 7000

31

Dec

Calendar

Fiscal Year Change

31

Dec

Calendar

Fiscal Year ChangeYear-end closing

Year-end closing programYear-end closing program

- Check:- Check:Can the year-end closing be carried out?Can the year-end closing be carried out?

- Maintenance of the last closed fiscal year- Maintenance of the last closed fiscal year


Closing reportsClosing reports

- Asset history sheet- Asset history sheet

- Asset list- Asset list- . . .- . . .

Depreciation posting runDepreciation posting run1.1.

2.2.

3.3.

Year-end closing


Fiscal year changeFiscal year change

Fiscal Year Change

The fiscal year change program opens new annual value fields for each asset.

The earliest you can start this program is in the last posting period of the old year.

You have to run the fiscal year change program for your whole company code.

SAP provides you with a check report for year-end closing. It checks

whether the fiscal year change was completed for all assets,

whether depreciation was fully posted,

whether errors exist for any assets.

In addition, if the program finds no errors, it updates the last closed fiscal year for each depreciation area.



© SAP AG

R

Summary: Closing Asset Accounting

The report tree in Asset Accounting provides num erous reports forcounting and checking assets. There is also a query provided for the

inventory directory.

Reclassify/assess value Depreciation and interest are determined automatically using

depreciation keys. These keys are entered in the individualassets. Deprec iation (and/or interest) is displayed in theindividual depreciation areas (book depreciation, taxdepreciation, cost-accounting depreciation, and so on).

Assets under construction can be posted directly, and arecapitalized using the functions of Asset Accounting. There arealso assets unde r construction us ed in con junction with cap italinvestment orders and projects. These assets underconstruction are capitalized at the final settlement of themeasure (order or project) attached to them.

The planned depreciation (or interest) is posted to the generalledger using the d epreciation posting program.

The asset portfolio can be documen ted using list reports. Externalreporting needs are met by the asset history sheet.

© SAP AG

R

Chapter Closing Procedures For FinancialAccounting

Check/count- occurs in the subledgers

Valuate/regroup- accrual/deferral postings- valuation of foreign currency balance sheet accounts- GR/IR clearing account analysis

- BA /PC subsequent adjustment/prof.segm.adjustment Document

- flexible reportingfinancial statement version- group evaluations- planning- balance audit trail (accumulated)

Report- tax





© SAP AG

Accrual/Deferral Postings

Accrual/Deferral Postings

Anticipated(accrued) Transitory(deferred)

Service transctn

Payment transctn

Payment transaction

Service transaction

now

later

Example:Example: Example:Prepaid rent, taxes oncompany car, etc. affectingthe following year

Leasing expensesmust be allocated to proper period

To ensure that expenses are posted to the correct period, you can enter accrual/deferral documents, and then cancel

them in a later step (collective processing). The cancellation date (flag) in that document is then regarded as theposting date of the cancelling document.If you need to do accruals/deferrals often, the recurring entry program is recommended.



© SAP AG

Accrual/Deferral Posting: Warehouse Lease

Start of warehouse lease

Rent prepaym ent: quarterly basis

Full expense

1500

Period 121/31 2/28

Accrual/Deferral

-1000

12/31

01/01

- 0

Expenses hit

Periods 01 and 02

Cancellation posting

1000

12/1

Prepayment of rent on 12/1

Posting: Debit Occupancy costs credit Bank 1500

Accrual/Deferral posting on 12/31Debit Accrued income credit Occupancy costs 1000

Cancellation posting on 01/01Debit Occupancy costs credit Accrued income 1000



© SAP AG

Automatic Postings - Exchange Rate Differences

Exch.rate diff. Exch.rate diff.for open items for open items

Sub-ledger acct G/L account

Currency LC Currency LCOI management OI management

OI1 = 100 USD OI1 = 200 GBP

OI2 = 500 USD OI2 = 800 GBPOI3 = 300 CHF OI3 = 400 NLGOIn = 900 FRF OIn = 500 NLG

LC = L ocal currencyFC = F oreign currency

Exch.rate diff.in

foreign currencybalances

G/L account

Currency FC

Transactn Transactnfigures figures

in in

LC FC

Use program RFSBEW00 to valuate foreign currency balances.

Use program SAPF100 to valuate accounts managed on an open item basis.

You can only use G/L accounts as foreign currency balance sheet accounts. You can only post to these accounts inthe currency defined in the account.



© SAP AG

Exchange Rate Differences in Foreign CurrencyBalances

Chart of accts

AAAA

Key Expense accpount Revenue account

|___| Losses from foreign Gains from foreigncurrency valuation 1 currency valuation

FWFW Losses from for.curr.val.2 Currency gains 2. . . . . .

G/L Account

Account number 123456 Bank FCChart of accounts AAAACompany code 0001

Currency FCExch.rate diff. keyExch.rate diff. key FCFC

Foreign currency accounts are valuated by balance.

You can calculate exchange rate differences and post them via batch input using the RFSBEW00 program.

Exchange rate differences in foreign currency balance sheet accounts are posted to various gains and lossesaccounts based on the exchange rate difference key in the G/L account master record.



© SAP AG

Valuating Foreign Currency Balance Sheet Accounts

Postingrates

Foreign curr. balance sheet acct. Exchan ge ratelosses account

1,6

1,5

1,4

1000

100

2000

1600

150

2800

480 480

FC LC LC

Document

Account valuationAccount valuation

Valuation rateat key date:

1,3

FC balance Xrate at key date

= 2900 x 1,3= 3770

Cumulative balancein local currency

4250

Difference = 480 BatchBatchInputInput

if required

Adjustment postingAdjustment posting

in local currencyin local currency

Valuationmethod

Depending on the valuation method used and the balance of the foreign currency balance sheet account, you may

end up devaluing or revaluing your accounts.You can run the valuation run with the same selections as many times as you like.If new transactions requiring valuation have been entered since the last valuation, they will be the only items in thecurrent run included in the valuation process.



© SAP AG

GR/IR Clearing Account Analysis and DeclaringAcquisition Tax

700 70020 20

Situation

Adjustment postings

Balance sheet

Goods GR/IR clearing Vendor

10 020 0

100200

(V1)(E1)

40 0(V1) 400

Not yet delivered GR/IR adjustment Not yet calculated

400 400300 300

In te rim acco un t A cq uis itio n tax -in co min g

20(V0)20(E1) 20

Acquisition tax-outgoing

20

B a l a n c e S h e e t

BatchBatchInputInput

( + Reversal docs: key date + 1 )

Analysis

Logs

Entered duringprogram run

Adjustment postings to the GR/IR clearing account are made whenever you recognize

- Goods which were delivered by the key date, but not yet invoiced, or- Goods which were invoiced by the key date but not yet delivered.

Additionally, you can declare the acquisition tax for goods received but not yet invoiced.You can also balance goods receipts with their accompanying invoice receipts, if necessary.Acquisition tax is then posted for any remaining balance.



© SAP AG

Subsequent BA/PC / Profitability Segment Adjustment

Invoice (open items, flagged for subsequent debit)

-- Receivables / PayablesReceivables / Payables- G /L accou nt item 1

Business area 0001Cost center 0001Profit Center 0001

- G /L accou nt item 2Business area 0002Cost center 0002Profit Center 0002

-- Tax itemTax item

1 Calculate subsequent debit(Information in document)

2 Post subsequent debit Business area 0001 / 0002Cost center 0001 / 0002

3 Special functions: Profit center 0001 / 0002

Posting run logStart reversal run (erroneous run) Zero-balance posting

Subs.BA/PC AdjustmentSubs.BA/PC Adjustment

Payment (clearing)

- Receivables / Payables- G /L acco un t item

-- Cash disct itemCash disct item

Profitability Segment Adj.Profitability Segment Adj.(cash d isct distrib.; still:definite ex.rate diff.)

Business area 0001 . . . Profit center 0001 . . . Cost center report 0001 . . .Bal.Sht P + L

Receiv-ables . . .Taxes

Cash dsctRevenues. . .

Payables. . .

ReceivablesPayables. . .

CostsCash disct paid

BatchBatchInputInput

The subsequent business area/profit center adjustment breaks the receivables/payables and taxes down into the

additional account assignments “Business area” and “Profit Center”, which are stored in the G/L account items. Incase of an error, you can set up a reversal run.The cancellation posting is carried out if the adjustment item posted is cleared at the key date of the new run.

The profitability segment adjustment breaks down cash discount and exchange rate differences which accrue whencustomer and vendor invoices are paid according to the following additional account assignments from the cleareddocument’s G/L account assignment:

-business area-Partner business area (Consolidation)-Profit center-Partner profit center-some of the CO objects

-all of the fields you defined in the coding block.



© SAP AG

Flexible Reporting

Bal.

Receivables

Bal.

Payables

Bal.

Expenses

Bal.

Revenues

Bal.Sht / P + LUser-specificreport tree

Actual / Actual comp.Actual / Actual comp.

Plan / Act. comparePlan / Act. compare

Time series

Drilldown

. . .

Reports

Forms

Standard listSapScript form

ReportPainter

ABAP/4

You have many flexible options available for designing profitability reports. Multiple data collection and

preparation functions (SAP-EIS tools, ABAP/4, Report Painter, SAPScript forms) exist.You can place any kind of evaluation in your own user-specific report tree.



© SAP AG

Financial Statement Versions

Directory of Financial Statement Versions

Structure DescriptionXXXX Balance sheet acc.to nat’l regs

Balance sheet / P+L itemsBalance sheet / P+L items

Financial stmt version XXXX Bal.sht acc.to nat’l regs

Hierarchy level 1 _________________________________________________________

1 ASSETS2 LIABILITIES3 Profit and Loss4 Accounts not assigned

Level forwd Text Accnt

Maint.language DGroup acct number ¨Chart of accounts XXXX

You define a financial statement version in two steps:

- Entry in the directory of financial statement versions- Define hierarchy levels and assign accounts

Each version must have the following “special items”:- Assets- Liabilities- Balance sheet profit/loss- Profit and loss results- not allocatable.

The balance sheet profit/loss is calculated by the ABAP/4 program RFBILA00 from the assets and liabilities totalsand placed in the “Balance sheet results profit/loss” item. The Profit and Loss results are determined from allaccounts not assigned to either assets or liabilities, and are placed in the proper position.



© SAP AG

Setting Up the Ba lance Sheet Section of a FinancialStatement Version

Balance sheetversion XXXX

Level 1 ASSETS LIABILITIES

SubscribedLevel 2 capital Formation Fixed Current Equity Reserve

unpaid expenses assets assets funds

Level 3 Intangible Tangible Financialassets assets assets

Machinery Down p aym entLevel 4 Real Technical and made for asset

estate assets equipment under constr.

Level 5 Acquis ition Valuevalue adjustment

. . .

max. 10

A financial statement version consists of a maximum of ten hierarchy levels.

You allocate items to each level. The system forms a total/subtotal for each item which is then displayed whenthe program is run.Allocate texts to each item which are also displayed.Allocate the accounts whose balance and account name are to be listed here in the lowest levels of the items.



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Setting Up the Profit and Loss Section of aFinancial Statement Version

Annual profit before taxAnnual profit before tax

Results of theResults of thebusiness transactionsbusiness transactions

Level 1Level 1 Operating Financial Non-operat. Taxes Approp.ofresult result profit net income

Level 2Level 2 Sales Material Personnelrevenue expenses expenses

Level 3Level 3 Revenue Salesdeductions

Profit / loss



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Account Group Allocation According to BalanceG/L account G/L account G/L accountBANK1 BANK1 BANK1

113100 113101 113102

Balance Balance Balance- 100 + 30 + 50

++ --??

Credit at BANK1 Payables at BANK1----------------------------- ------------------------------Acct no. D C Acct no. D Cfrom / to from / to

113100 X 113100 X113101 X 113101 X113102 X 113102 X

Position varies based onPosition varies based onchanging balancechanging balance

You use account group allocation to determine in which cases the balance of this account group is to appear in this

financial statement item.

D C

X Only if the joint balance of all accounts listed underthis item is a debit balance does it appear here.

X Only if the joint balance of all accounts listed underthis item is a credit balance does it appear here.

The settings listed above are only appropriate for accounts with a fluctuating balance.Example: Bank accounts.

X X This will always appear here irrespective of the balanceof the accounts.Example: receivables accounts



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Texts

Financial statement version XXXX Bal.sheet acc.to nat’ l regs

Hierarchy level n _________________________________________________________

nnnn1 Stocksnnnn2 Receivablesnnnn3 Securitiesnnnn4 Checks, Cash on hand . . .

Text

nnnn4 Checks, Cash on hand

Start of group

Checks, Cash on hand, Central bank and postal giroaccounts, other bank accounts

__ End of group Display total

__ . . .Graduated total Display total

You can write additional texts for each item in a financial statement. You can write up to four lines of text at the

beginning and/or the end of the item.

A graduated total is tallied along with the control level processing. It can be called up from any point within thefinancial statement structure.You output the profit and loss part of the structure in the standard system using the graduated total functionality.



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Group Evaluations

Chart of acctsChart of accts

specificationspecification

G/L accountsG/L accounts

in the grp ch/ac.in the grp ch/ac.

G/L accts in theG/L accts in the

company codecompany code

Cht of acctsAAAA

Acct no.175000

Groupacct no. 175000

CC CC

0001 0002

Chart of acctsBBBB

Group chart ofaccounts

AAAA

Acct no.150000


CC

0003

Chart of acctsAAAA

Group chart ofaccounts

AAAA

Acct no.170000


CC CC

0004 0005

If you want to combine multiple company codes (with different charts of accounts in some cases) under one

group view in your evaluations, you must follow these steps:

Define which group chart of accounts is the common one among the corresponding chart of accounts definitions.

For the charts of accounts involved, enter each G/L account’s group account number in the “Group accountnumber” field, which is found in the cross-company code section of the G/L account master records. Thiscreates a check to see if the account exists in the group chart of accounts.For G/L accounts in the group chart of accounts, the contents of the group chart of accounts field should beidentical to the G/L account number (self-referencing).

In financial statement version you want to use for the group evaluation, specify that the “group account number”,not the account number, is the criterion under which accounts are represented (combining various accounts fromvarious charts of accounts).



© SAP AG

Grouping within the Company Code

Master record Master record Account allocation

Account 175000 Account 150000 Other assetsTaxes Taxes

Chart of accts AAAA Chart of accts BBBB __________ _________ _ __ ______ ______ _______ _ Ac co un t n o. D C

from / toGroup Groupaccount number 175000 account number 175000 175000 X

Financial statement version XXXX

Group account number X Chart of accts ______

You can also set the balance sheet program so that all accounts are grouped under their joint

group account number when evaluating a company code individually. Here you also have to select afinancial statement version which references the group account number. This therefore has theeffect of a group term.You use this type of grouping to examine a company code from a corporate group viewpoint.



© SAP AG

Evaluations by Country Chart of Accounts

Chart of acctsspecification Operative ch/acOperative ch/acAAAAAAAA Country ch/acBBBB Country ch/acCCCC

G/L accountin chart of accts

Acct no. 175000Acct no. 175000

Description: nnn ...Description: nnn ...

Acct no. 150000

DescriptionDescription : xxx ...

Acct no. 170000

DescriptionDescription : zzz ...

G/L accountin comp.code

CCCC CCCC CCCC CCCC CCCC00010001 00020002 00030003 00040004 00050005

AltAc. AltAc. AltAc.150000 170000 170000

A country chart of accounts can be assigned to each company code in addition to the operative chart of accounts

(company code table). This gives you the capability to do evaluations from a country perspective.

You must also maintain the ‘Alternate account number’ field in the company code section of the G/L accountmaster record. When this entry is made, the system checks whether the account exists in the ‘alternate chart of accounts’.

In the balance sheet program, you can select whether the account numbers and names (descriptions) come from theoperative chart of accounts or from the country-specific one.

If no country chart of accounts is assigned to the company code, users can use the 'Alternate account number' fieldfor other purposes.



© SAP AG

Planning

- generate SET´s (per fin.stmt version)- create PArameters changeable- create Plan version } or- create Plan version parameters enhanceable

- per fiscal year

Preparation

Planning periods

If you want planning values to be displayed in a balance sheet, you have to prepare the planning for each financial

statement version. In doing so, the system generates the required datasets on its own and at the same time createsplan parameters, plan versions, and plan version parameters.

If you change a structure, you have to regenerate the sets.

You can create additional “plan versions” for a financial statement version. You also define the plan version andplan version parameters.

Plan periods must be open for each fiscal year.



© SAP AG

Entering Planned Values

Company code 0001Fiscal year JJJJ

Version XXXFin ancial stm t version XXXX

Maintain

Fin.stmt version XXXX Bal.sheet acc.to nat’l regsHierarchy level N1 Assets2 Liabilities3 Profit and Loss4 Accounts not allocated

Plan

Acct number Loc.Curr. Dist.Key

nnnn1 1000000 1nnnn2 50000 1nnnn3 3000000 1. . . . . . . . .

Post

Planned values are entered using financial statement version and plan version number within this structure.

You can also plan at a higher level (all accounts for a financial statement item) or at the account level. In this case,you may want to use a distribution key (possible entries help).



© SAP AG

Plan Versions

RFBILA00Fin.stm nt vers. AAAA

Plan version 001

Ist Plan Abw.

500 400 -100

Enter plannedvaluesX

Prepare usingfinancial statement

version AAAA

Account

100000

CC 0001FY YYYYPlan version 001

Acct no.Acct no. ActualActualvaluesvalues

::

100000100000 500500

110000110000 -20-20

120000120000 -60-60

130000130000 4040

Plannedvalues V001

400100

- 150- 50

V002

Enter a financial statement version in the evaluation (RFBILA00). This way you have the same

structure for the actual data and planned data. By specifying a plan version number, youselect a particular version of planned values for which the structure remains the same.



© SAP AG

Balance Audit Trail (Accum ulated)

Open item balance audit trail(open item-managed accounts)

DocumentsDocumentsMasterMasterrecordsrecords

RFKKET00 RFKLET00

KK New dataset KL New dataset

RFKKBU10D, K, S

RFKLBU10D, K, S

RFKKBU00D, K, S

RFHABU00S

Old KK/KLOld KK/KLdatasetdataset

Historical balance aud it trail(general ledger)

Accumulatedextract

Accumulatedextract

Evaluation Evaluation

From thedocumentfile

From thedocumentfile

You organize the retention period of your documents in the SAP system according to your hardware

capability and your requirements. It may be that you have to reorganize your documents during the year.You must then save the documents “previously” in the (accumulated) balance audit trail.

Document data and master data is always extracted, sorted and merged into a sequential dataset before documentreorganization takes place.At the end of the year, this dataset contains the document volume for the year, sorted by account.The accumulated balance audit trail is extracted from this.

If all the data you require is still in the system., you can access this data using the RFKKBU00 and RFHABU00programs.



© SAP AG

Volume Problem / Optimizing Run Times

1st run: " one-time "completeselection

Work files CompanyCompany

code 1000code 1000CompanyCompany

code 2000code 2000CompanyCompany

code 3000code 3000

11 22 33

2nd run: RFKLET00

Old dataset(Company code 1000Period 01)

New dataset(Company code 1000Period 01 + 02)

DocumentsDocumentsMasterMaster

recordsrecords

Period: 02

RFKLET00

3rd run: 4th run:

- SORT- Merge

If you are working with very large data volumes, it is advisable to only run the program for the complete dataset in

the system one time. This will set the data up into previously defined work files (per company code, for example).Then you can generate your balance audit trail per company code with much shorter run times.



© SAP AG

Country-Specific Balance Audit Trail

G/L account

Accountnumber 12 3123

Alternate 67896789accountnumber

Dataset from cum ulativebalance au dit trail

. . .Account no. 12 3123

Document 1 500Document 2 8.000Document 3 700

Account no. 12 4124. . .

- R ep lace acco un t n o. 123123with alternate account num ber 67896789

- Sort

. . .Account no. 6789

Document 1 500Document 2 8.000Document 3 700

Account no. 6790. . .

Reporting acc.to localcompany code’srequirements

A

B

The 'Alternate account number' field in the company code section of the G/L account master record can be used to

ensure that you generate the balance audit trail according to company code-specific definitions (nationalregulations on balance sheet reporting, for example).



© SAP AG

OUTPUT TAX

GL accountGL account

>

GL Account = Tax Account


OUTPUT TAX

<

INPUT TAX

:Tax category <:can only be postedto automatically



OUTPUT TAX

:Tax category >:can only be postedto automatically X

allowed

tax codes

A0A1A2:

T a x t y p e

A

T a x t y p e

VV0V1V2:

The tax account assignment items determined automatically during document entry must refer to GL accounts

which are flagged as a tax account (<, >).

In addition, you can define as many other GL accounts as tax accounts as you require.

You can exempt each tax account from being posted to manually.



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Manual Tax Posting

Docume nt display: Tax dataDocument display: Tax data

General ledger Amount Base Cd %

IMPORT TAX 300 3,000 U1 10.000


IMPORT SALES/PURCHASES TAX

:Tax category <:can only be postedto automatically

Acct: IMPORT SLS/PURCH.TAXDebit posting / 40

Amount 300

Base amount 3,000

Tax code U1

Account assignments to a tax account require you to enter the tax base amount

(* = automatic determination).

The tax data determined in this way is considered in the tax return.



© SAP AG

Non-Deductible Input Tax

Vendor

Expense

1,040

VST

60

Vendor

1,100

Expense

VST

NAV

Tax code N1Input tax VST 6 %Non-deduct.input tax NVV 4 %

can be allocated (NVV)can be allocated (NVV) cannot be allocated (NVV)cannot be allocated (NVV)

Tax codeInput taxNon-deduct.input tax

Example: 10 % input tax, of which 40 % is non-deductible

N2VST 6 %NAV 4 %

1,100

1,000

60

40

Companies which are not or are only partly authorized to deduct input tax must set up tax codes for the transaction

keys NVV or NAV.

NVV = can be allocated.The non-deductible input tax value is allocated to the expense.

NAV = cannot be allocated.The non-deductible input tax value is allocated to a special expense account.

The incoming posting via NVV or NAV is to be marked with asterisks for the acquisition tax.



© SAP AG

Tax Return

RFUMSV00

RFASLM00D

CHI

GB

You must create a tax return regularly for the tax authorities.

There are country-specific programs available in the system for doing this.



© SAP AG

Customer line itemCustomer line item

EU Single European MarketCustomersCustomers

X1 = delivery of goodsX2 = service

VATVA T

registration num berregistration number

for the company codefor the customer

Transfer of the reg.no.into the docum ent

EC sales list

Tax codesTax codes

RFASLMOO

VendorsVendors

Tax codeTax code

Automatic postingAutomatic posting

Y1 = acquisition tax

Acqu isition tax Acquisition tax

100 100

RFUMSV00

Tax return



© SAP AG

D

Sales/purch.taxSales/purch.taxadvance returnadvance return

Tax Return and Postings

DBDB

CHI

GB

FormFormdatadata


PrintPrintformform

Post taxPost taxpayablepayable

ListList

RFUMSV00

Input tax Output tax Tax payable

100 250 100 250

You must create a tax return regularly for the tax authorities.

There are country-specific programs available in the system for doing this.



© SAP AG

R

Summ ary Closing Procedures ForFinancial Accounting

You have learned how to define m anual accrual/deferralpostings.

You have learned which accounts you should valuate /analyze before the balance sheet run.

You now know how to prepare the business areas if youuse the business area balance sheet and profit and loss.

You can use the flexible reporting functions and are in aposition to create your own financial statement version.

You know when and how to generate an account balanceaudit trail.

You know how to create the advance return for tax on

sales/purchases.

© SAP AG

R

Chapter Closing Procedures for thePreparation for Consolidation

Reclassification

Creating a periodic extract

Realtime update or rollup





© SAP AG

R

Scope of Consolidation and Data Transfer

Active cons. typesActive cons. types

ý Company cons.

ý Business area cons.

o Profit center cons.

l FI-LC

m EC-MC

m RF-KONS

Actual dataActual data

m Realtime update

m Rollup

l Periodic extract

Plan dataPlan data

l Rollup

m Periodic extract

Group: Currency: Fiscal year variant:

Consolidation systemConsolidation system

Ledger Version File format

Details

Rollup

The procedure of data transfer from the FI-GL or FI-SL (Special Purpose Ledger) components into the

Consolidation component of the parent company can be defined in the “Preparations for Consolidation”Implementation Guide in the parent or subsidiary system.

The data type (IDOC, PC, Unix) must be specified for all procedures except for realtime update. Since FI-GL andFI-LC versions do not need to be identical, a relationship must be defined between the two.

The settings apply for all company codes/companies in the sender system . All company codes (in the case of dataextract) or companies (in the case of realtime update) are assigned to the standard consolidation processing ledgersin the background.

If data transfer is flagged as relevant for both company and business area consolidation, two parallel data streamswill be created; either during realtime update or in the form of two separate extract files.



© SAP AG

R

Transferring Financial Statement Data: Periodic Extract

Additional accountassignments:

Partner Transaction type Acquisition year

Account Company code

Business area Fiscal year

Transaction currency

Periodic extract withsumm arization according to:Company

FS item Partner Transaction type Acquisition year Transaction currency

Consolidationfunctions

Consolidation

Post

document

ConsolidationConsolidation

staging ledgerstaging ledgerGeneralGeneral

ledgerledger


databasedatabase

Financialstatementversion

Data extractData extract

+

Information generated in Financial Accounting by the balance sheet program (RFBILA00) can be duplicated as

data in Consolidation.

In order for this to happen, the Financial Accounting extract is triggered when the balance sheet/income statementis created (switch: “Extract to FI-LC”). The layout of the data extract corresponds with the output list on thescreen.

The link between general ledger accounts and consolidation items is created in a financial statement version, whoseitems correspond with the consolidation items.

The transfer of periodic extracts enables individual financial statement data to be transmitted across systemboundaries.

The consolidation staging ledger is managed in the sending system.

Data transfer is controlled in Consolidation using the data transfer monitor.



© SAP AG

R

Financial Statement Version for Consolidation

List of financial statement versions

FS version version descriptionXXXX corporate balance sheet

Definition of the statement layoutDefinition of the statement layout

Statement layout XXXX Corp. balance sheet

Hierarchy level 1 _________________________________________________________

0010000000 ASSETS0020000000 LIABILITIES AND EQUITY0030000000 Profit and Loss0040000000 Accounts not assigned

Level forward Text Acct.

Maint.language DGroup account no. ¨Chart of accounts XXXX

In order to transfer data via periodic extract from Financial Accounting into Consolidation, it is necessary to use a

financial statement version whose FS items correspond to the consolidation items (e.g., Assets: 0010000000).

In the financial statement version, define numeric item numbers using leading zeroes.Number assignments are made manually.

The SAP standard delivery system includes a financial statement version for the group (INT) which corresponds tothe example above.

The corporate parent determines the FS chart of accounts; this is maintained in Customizing.



© SAP AG

R

Transferring Financial Statement Data: Realtime Update

Account Company code Business area

Fiscal year Transaction currency

Realtime update of:Company FS item

Partner Transaction type Acquisition year Transaction currency


Consolidation

Postdocument

GeneralGeneral

ledgerledger


databasedatabase

Sachkonto ________

KonzernktoNr. ________

G /L ac co unt ___ ___ _

Group acct no._______

Realtime updates of Consolidation data or rollups (for example from a user-defined ledger in FI-SL) are

alternatives to the periodic creation of extracts. In these procedures, general ledger accounts are assigned toconsolidation items by means of the group account number entered in the general ledger account.

A corporate chart of accounts must exist, in which the account numbers correspond with the consolidation FSitems.

Parent and subsidiary share the same system and client.

The control of account group allocations may not be balance-related. Only in a later consolidation step is thispossible.



© SAP AG

R

Send Data to Consolidation

Fin.stmt.version

PC fileUnix file

Send dataSend data

Fiscal yearPosting period

Version

Realtime update

Rollup

Extract

Group

Actual data

Generate financial statementsGenerate financial statements

* Data extract to Consolidation *

ASSETS

Machines. . .

100,000. . .

. . . Data transfer. . . Data transfer

. . . company code selected (if appl.)

The Send transaction is an alternative to transferring data during the RFBILA00 run (FI view). It performs the data

transfer to Consolidation according to the Customizing settings (that apply to periodic extracts and rollups).

When making the “Extract” settings, the system automatically triggers the generation of financial statements(balance sheet and income statement) using the financial statement structure stored. You can also select thecompany code(s). You can also achieve the same results by generating financial statements using the report switch“Extract to FI-LC”.

In Customizing, you can define the location in the file system for storing the data extract for each internal tradingpartner.

The “Rollup” setting triggers the corresponding rollup that has been defined.



© SAP AG

R

Carrying Forward via Cons. Staging Ledger

Field movement 1001

Transaction types

TTY C-Fwd Description

100 100 Openingbalance

120 100 Acquisition

Control Carryforward

Ledger Bal.sheet Fieldaccount movement

09 1002

09 X 1001

Carryforward Bal.sheet

Receiver GLU1

Sender table(s) GLU1 GLU1

Reciever Sender Sender field Exit

RACCT GLU1 RACCTRASSC GLU1 RASSCRBUSA GLU1 RBUSARMVCT GLU1 RMVCT S01...

Ledger Acct. TTy Balance

09 11000 100

FI-SLcarryforward

Ledger Acct. TTy Balance

09 11000 120 20,000

Old year carry forward New year

Besides carrying forward balances in Financial Accounting, when transferring data into Consolidation via periodic

extract, carrying forward of balances must be performed in the consolidation staging ledger as well.

Consolidation posts the transaction type, which is needed for generating spreadsheet-like presentations, such asasset history sheets, changes in provisions worksheets, etc.How transaction types are carried forward is defined in the Consolidation system; an example of this would be thecarrying forward of an acquisition from the previous year onto the opening balance of the current year.

To ensure that the Consolidation carryforward logic is also applied to the consolidation staging ledger, a fieldmovement must be defined. You can then assign the carry-forward field movement to the consolidation stagingledger in Ledger Maintenance.

Since Release 3.0C the standard delivery includes the field movement codes 1001 and 1002; these are alreadyassigned to the consolidation staging ledger (ledger 09).

The carrying forward of balances is performed within the special purpose ledger.



© SAP AG

R

Summary: Closing Procedures forPreparation for Consolidation

As a sender of consolidation data, define the partnercompany in the cross-company section of the sub-ledgeraccount master records for those accounts whichrepresent affiliated companies. You must also define areconciliation account in the com pany code section ofeach subledger account m aster record.

You ca n carry out data transfers by periodic extract,realtime update or rollup. When p erforming a periodicextract (RFBILA00 or sending transaction), the systemtransfers data into a group financial statement versiondefined for this purpose. During realtime upda tes orrollups, the system uses the group account num berdefined in the GL account master record to assign GL

accounts to co nsolidation items.

© SAP AG

Chapter The Individual Financial ClosingProcess - Integration





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Month-End Closing (Example)

Reconciliation

Carry outclosing

Documentation

FIPost to old year GR / IR clearingValuate for.curr.bal.sh.accts

For.curr.OI valuation

HR

RevaluationsMaterial settlement

CO

Internal orders-/Project-related tasks:period. trnsf post./ surcharges/ project interest calc./ progressdeterm./ results analysis / Settlement to CO receiver, to Assetunder con.(period.) or finished Asset(total), to G/L account

Product-/ Production-related tasks :Release std cost est./ create inventory costingperiod.trnsf.post./ surcharges/ variance determinationreq.expense-related invoice if needed (and post in SD)determin. WIP/ results analysis/ settlementCost center-related tasks:period. trnsf.post./ distribution/ assessment/ indirect activityaccounting/ key figures transfer/ cost center variance/splitting/ actual activity price calculation

Profitability-related tasks:Periodic actual posting valuations/ external data transfer distribution/ assessment/ trnsf. balance sheet items in PCA

Post imputed dep./ interestcommercial/tax depreciation

FI-AA

PP

Reconcil.ledger list

Profitabilitysegmentadjust-

ment

Block old monthG/L accounts

Block old monthAccts R ecv/Payable

FI

CO

Annualtax onsales/pur report

Month-end clos.pgm.Material

Old Month New month

Maint. GR/IRclearing acct

Post toreconcil.ledger

CO

CO/PS

Bal.sheet / P+LKey figures

IASCO Reporting

prepara-torypo stings

Open new monthAcctsRec/Paybl/GL

CO

SD monthly outwardgoods movementsand invoices

Forward topayrollaccounting

MM

Recurringentries



© SAP AG

R

Summary Individual Financial ClosingProcess Integration Overviews have shown you the chronological sequence of

activities involved in generating a year-end closing, and asample m onth-end closing, in the integrated SAP system.

The sequence of activities goes from- preparatory postings in the sub-ledgers and internal

accounting, to- reconc iliation, to- carrying out the actual closing, and also- documenting a closing in the various accounting

information s ystems.

Even if your firm has not implemented the full SAP system,the activities and their sequence rem ain basically the sam e.In these cases, you will be responsible for preparing and

exchanging the required data with other areas.

© SAP AG

Chapter Financial Calendar





© SAP AG

Scheduled Programs and ReportsScheduled Programs and Reports

An overview of the task schedule is often required iftasks are scheduled in Financial Accounting.

05/15/199505/15/1995PaymentPaymentprogramprogram

TasksTasks ScheduleSchedule

07/20/199507/20/1995DunningDunning

programprogram

06/11/199506/11/1995FinancialFinancial

statementsstatements

After you have scheduled tasks in Financial Accounting, it is often inconvenient to have to look at

each individual program run which you entered in order to find information on its scheduled runtimeand status.

Answers are often required for the following questions:

- ‘Which payment program runs are scheduled for future months?’

- ‘What tasks in Financial Accounting are to be carried out, or were carried out in July andAugust of this year?’

An overview of the scheduled tasks shows them in relationship to each other, and answers questionssuch as:

- ‘In what order are the payment and dunning programs scheduled for this month?’



© SAP AG

Status of Scheduled Programs and ReportsStatus of Scheduled Programs and Reports

It is also important to have an overview o f the statusesIt is also important to have an overv iew of the statusesfor the scheduled program runs, including the date onfor the scheduled program runs, including the date onwhich their status changed.which their status changed.

PaymentPaymentprogramprogram

TasksTasks

DunningDunning

programprogram

FinancialFinancialstatementsstatements

EnteredEntered StartedStarted FinishedFinishedReleasedReleased

Current date: 06/05/96Current date: 06/05/96

05/15/96 05/29/96 05/29/96 05/30/96

06/01 /96 06/15 /96

04/01/96 04/14/96 04/16/96 04/17/96

When looking at the programs or reports which have already been entered, you often need to know the

status of the program run and the date on which the status changed.

Without the financial calendar, it is only possible to view this information in the batch input sessionlog for the programs or reports you entered.



© SAP AG

Financial Calendar - Monthly OverviewFinancial Calendar - Monthly Overview

The financial calendar gives you a m onth-by-monthThe financial calendar gives you a m onth-by-monthoverview of Financial Accounting tasks scheduled inoverview of Financial Accounting tasks scheduled inthe system.the system.

June 1995June 1995

MON TUE WED THUR FRI SAT SUN

Payment Payment

Payment

Dunningnotice

Dunningnotice

Dunningnotice

Fin.

stmts

Payment

The financial calendar gives you a quick overview of scheduled or completed Financial Accounting

tasks for a certain month or year.

The financial calendar can be used to generate a graphic showing scheduled Financial Accountingtasks, for example dunning runs, payment runs, automatic and manual closing operations.

The following are available:

- A list of all tasks which must be performed on a certain date or within a certain time period

- A list of all deadlines relating to a certain task

- Direct access to the detail screen for the relevant task (payment run, etc.)

The advantage of this function is that you can allocate each task to be performed manually orautomatically in the various areas of Financial Accounting to certain deadlines, and show this in agraphic form in the financial calendar. This enables you to centrally monitor and plan these tasks asthey arise.



© SAP AG

Workflow IntegrationWorkflow Integration

The financial calendar allows you to assign and monitor tasksThe financial calendar allows you to assign and monitor tasksusing workflows.using workflows.

June 1996June 1996 July 1996Ju ly 1996 August 1996August 1996MoMo DiDi MiMi DoDo FrFr SaSa SoSo MoMo DiDi MiMi DoDo FrFr SaSa SoSo MoMo DiDi MiMi DoDo FrFr SaSa SoSo

Message:Mrs Smith, pleasecould you confirmthe results of thepayment programs

for June...

Paket

You can use workflow functions to send messages to certain users at a pre-defined time.

By using workflow functions, the financial calendar enables you to allocate task messages which arelinked to the scheduled Financial Accounting tasks.

By including instructions, descriptions or sequences related to organization (using long text), you canenhance the financial calendar so that it can be used as a general organizational tool. Messages whichare linked to scheduled tasks are sent with a time stamp on a certain day.

(These messages can only be sent to users on the same or lower levels in the personnel hierarchy. Aclerk cannot send a message (or task) to a head of department, for example.



© SAP AG

Scheduling

The first step in the procedure is to schedule tasksand programs.

Financialstatements

Payments

Dunning

June 1995June 1995

July 1995July 1995MoMo DiDi MiMi DoDo FrFr SaSa SoSo

MoMo DiDi MiMi DoDo FrFr SaSa SoSo

You need to execute or schedule programs and reports as in the usual FI application environment

before you can see any tasks in the calendar.

The following need to be entered for each scheduled task:

- The variant used (for reports such as RFBILA00)

- The identification number for payment and dunning programs

- The text name for manual workflow tasks



© SAP AG

Defining TasksDefining Tasks

The next step when generating a financial calendaroverview is to define a ‘task’.

A task is defined by allocating param eters to afunction.

TASKTASK

++TECHNICAL NAMETECHNICAL NAME PARAMETERSPARAMETERS

Report nameReport name::

RFBILA00RFBILA00Dunning runDunning run::

F150F150Payment program:Pa yment program:

F110F110Workflow message:Workflow message :

TS0007408TS0007408

Report variantReport variant

IdentificationIdentificationnumbernumber

Text nameText name

The next step is to create a ‘task’. This identifies the task which should be included in the calendar

overview.

As described above, you need to allocate a parameter to each task to show which report or programrun should be used.

The parameter type is dependent on the task category:

- For reports, the parameter is a report variant

- For the dunning and payment programs the parameter is an identification number

- For a workflow message or a manual workflow task the parameter is the text name

The combination of these parameters and report/program types provides the search criteria for

selecting the relevant task.



© SAP AG

Schedule

The third step in setting up the financial calendar isto define the schedule.

The schedule contains the calendar type to be usedand also the allocated organ izational unit.

SCHEDULESCHEDULE

ORGANIZATIONAL UNIT (PD)

Work centerWork center

JobJob

Organizational unitOrganizational unit

EmployeeEmployeePositionPosition

UserUser

CALENDER TYPE

USAUSA

AustriaAustriaFactory calendarFactory calendar

Public holiday (USA)Public holiday (USA)

Public holiday (D)Public holiday (D)

The schedule is a requirement for using the financial calendar function.

The schedule identifies the calendar type to be used and the allocated organizational unit.

The calendar type defines the type of financial calendar to be displayed.

The organizational unit is an optional characteristic and a concept found in the component PD(Personnel Planning and Development, formerly HR - Human Resource Management). Theorganizational unit can be a work center, a job, an organizational unit, an employee, a position or auser. It can also have dependent units. The schedule could contain the scheduled tasks for thesedependent units. The advantage of this is that if the schedule is allocated to an employee to whomfurther employees are allocated, this first employee can include all the tasks in his/her financialcalendar which are contained in the schedules of his/her subordinates.

(The maintenance of organizational structures is discussed in the training courses and documentationfor the component PD - Personell Planning and Development in the SAP system).



© SAP AG

Task + ScheduleTask + Schedule

You need to allocate the task(s) to the schedule so that this relationship isclear for the financial calendar.

This is the final precondition which m ust be fulfilled before the overv iewcan be generated.

SCHEDULESCHEDULE

TASK:TASK: RFBILA00RFBILA00 TASK:TASK: PaymentsPayments TASK:TASK: DunningDunning

June 1995June 1995 July 1995Ju ly 1995 August 1995August 1995MoMo DiDi MiMi DoDo FrFr SaSa SoSo MoMo DiDi MiMi DoDo FrFr SaSa SoSo MoMo DiDi MiMi DoDo FrFr SaSa SoSo

In order to call up a task overview, the financial calendar requires the relevant schedule and task(s).

You therefore need to define a relationship between the schedule and the task.



© SAP AG

IntegrationIntegration

The function can be used for any report type. You on ly need to enter thetechnical name and report variant.

June 1995June 1995 July 1995Ju ly 1995MoMo DiDi MiMi DoDo FrFr SaSa SoSo MoMo DiDi MiMi DoDo FrFr SaSa SoSo MoMo DiDi MiMi DoDo FrFr SaSa SoSo

FIreports

COreports

MMreports

SDreports

August 1995August 1995

The calendar function is designed mainly for activities in Financial Accounting. However, it is

possible to display a task in any SAP component for which a report has been run or scheduled.

To display scheduled reports using the financial calendar function, you simply need to:

- Schedule the report with a variant

- Enter the technical name of the report in the financial calendar

- Enter the variant name in the financial calendar



© SAP AG

Summary: Financial Calendar

This overview shows the relationships between theelements of the financial calendar.

SCHEDULESCHEDULE RFBILA00RFBILA00

PaymentsPayments

DunningDunning

Financial calendarSchedule

Organizational unit

TasksSchedule activities

RFBILA00RFBILA00VariantVariant

DunningDunning

IdentifierIdentifier

PaymentPaymentIdentifierIdentifier

Workflow messageWorkflow message

Text nameText name

MessageMessage

August 1995August 1995MoMo DiDi MiMi DoDo FrFr SaSa SoSo

September 1995September 1995MoMo DiDi MiMi DoDo FrFr SaSa SoSo

Activities must be scheduled before they can be displayed in the financial calendar. You need to

generate a task with an appropriate variant for each activity, define a schedule and assign the varioustasks to this.

The procedure used for creating and scheduling messages using workflow functions is different fromthat for executing reports and programs.



© SAP AG

R

Chapter Production Startup



© SAP AG

R

Procedure

Master data

Transaction data

Master datain current

system

Transactiondata in current

system

Individual reports

Standard report

Call transaction

Direct input

R/3R/3

R/3R/3

If you have not implemented any enterprise computing system as yet, then you need to enter the master

data and transaction data manually, that is using the online functions.

If you already have a computing system (mainframe, minicomputer or PC) and want to continue usingthis data, carry out a data transfer.

To save yourself the effort of entering a large amount of master data manually, write a program in yourcurrent system which makes the data available for R/3.

You define the requirements of the program according to the data you use and the information yourequire.

There are SAP standard programs available to help you import your old data into R/3. Alternatively,you can import the data directly into the database by means of “call transaction” or “direct input”.

Note Importing the data by means of “call transaction” or “direct input” is quicker in thecase of large datasets since the system does not carry out any checks. In comparison,the batch input program is slower. The data is not written to the database straightaway but instead is firstly compared against the table entries.

You can also create these programs yourself to meet your specific requirements.



© SAP AG

R

Data Transfer Methods

It might be conceivable to enter old data manually into the R/3 System in the following situations:

Small amount of master data or transaction data,

New organizational structures concept which cannot be derived from the old data,

Extensive amendments with new, additional information which is not available in the old system.

It is possible to import data by means of diskettes or magnetic tapes in the following situations:

Different hardware platforms,

Physical distance without an electronic data interchange line.

For most projects it will be technically possible to make the data available in a file format as fileswhich can be processed using batch input programs in R/3.



© SAP AG

R

Data Transfer Process

Master and transaction data in the current system

Output and change p rogram in batch inputformat for

Transfer report

Batch input session log

In the output program which you are going to create, enter the data which you want to use in the R/3

system into a file to be processed further.

For the data to be read, you need to prepare the information in a format which can be read and checkedby the batch input program.

An online entry is simulated when processing the transfer program (session), that is key terms arechecked against the customizing entries. Records with missing or wrong key terms are rejected andlisted in an error log.

The system creates a session which can be processed after correcting

the customizing entries,

or the master data,

or the input data.



© SAP AG

R

Output and Change Program

CurrentCurrentsystemsystem R/3R/3

Data in current system Data in R/3 System

Country indicator ( D )

Currency ( DM )

Tax code ( 11 )

Term of payment ( 20 )

Account number ( 1600 )

= Country key DE

= Local currency DEM

= Account group DEBI

= Tax key A1

= Term of payment ZB01

= Account 160000

In the output and change program which you are going to create, there are generally a large number of

translations which you need to carry out.

In customizing, define a translation table for the key terms which differ from your current keys.

For key terms which are newly available in the R/3 System, create derivation rules for the translationtable.

Example: You do not have the term “account group” in your current system. This entry is,however, important for the R/3 System since certain field controls are carried out

using the account group. You must find unique criteria which allow an allocation for the

account group CASH. This can be, for example, the account number within aninterval. All bank accounts in the legacy system are between 1100 and 1399 and aretherefore given the key term “account group CASH” with the indicator for “account relevantto cash flow”.



© SAP AG

R

Scheduling Data Transfer

Programming the o utput program

1997 Transfer and integration test

Transfer of master data

Posting closed in current system

Transfer of open items

Reconciliation of closing balancesheet with opening balance sheet

24 25

31

For scheduling the data transfer it is important that:

The transfer programs have been extensively tested (all old data can be processed)

The master data is current (transfer shortly before the productive start)

The data transfer sequence has been determined (for example, first of all the G/L accounts sinceaccount numbers which must be available are defined for the customer and vendor accounts, assetsand material master data)

Enough time is allowed for checking that the data is complete and accurate



© SAP AG

R

Preparing for Production Startup

Custom izing (IMG) -> Financial Accounting -> FinancialAccou nting Global Settings -> Delete transaction data

Delete transaction data

General selections

Company code 1000

Program control Before the productionTest run run, generate a log in

X Delete CO data a test runRegenerate credit limitsDelete own matchcodes



© SAP AG

R

Preparing for Production Startup

Custom izing (IMG) -> Financial Accounting -> General

Ledger Acco unting -> G/L Accounts -> Master Data -> Delete-> Delete G/L account

Delete master data

Deletion quantity selection: X CustomersX VendorsX G/L accounts

Deletion depth: only general master data in chart of accts INTX with general master data in company code 1000

Program controlTest run

X Note deletion flagG/L account detail logCustomer detail logVendor detail log



© SAP AG

R

Setting the Productive Indicator

Custom izing (IMG) -> Financial Accounting -> FinancialAccounting G lobal Settings -> Com pany Cod e -> Setcompany code to productive

“Productive” indicator for the company code

CC Company name City Productive

1000 IDES AG Frankfurt X

2000 IDES UK London

2100 IDES Portugal Lisbon X



© SAP AG

R

Summary: Production Setup

Data can be transferred either manually or automaticallyfrom the legacy system, depending on the individualcircumstances. Usually a transfer program for m aster dataand transaction data is created. This adapts the structureand content of old data to match the new sy stem.

Before transferring old data you need to test the transferprogram and check the data.

You need to set up an organizational plan for the transferand reach an ag reement with the departments involved.

© SAP AG

Chapter Standardtexts and Forms





© SAP AG

Forms

Form naming conventions

SAP StandardSAP Standard

FormForm

F150_DUNN_01F150_DUNN_01

Y150_DUNN_01or

Y150_1000_01or

Z_MAHNBRIEF

Letter texts for correspondence with customers/vendors are delivered in the standard client. You can

copy these letters (forms) and adapt them to meet your company-specific requirements.

When assigning a name, you should note the convention of using an X, Y or Z as the first letter. Youcan use the print program name ( 150_DUNN ) or define a new name.

Design a form which is used by all company codes so that the appearance is similar across thecorporate group. You define the company code-specific company data in standard texts. The name of the standard text is defined in customizing for each company code.

If the company codes use letters formatted differently, you copy the SAP form into different forms( Y150_CCD1000, Y150_CCD2000 ) and define the form name in customizing for that particularcompany code.

Note: You can considerably reduce the amount of work involved by using a standard form andcompany code-specific standard texts.



© SAP AG

Forms

HeaderHeader

AddressAddress

Info windowInfo window

Main windowMain window

FooterFooter

Parts of the formCOMPANY LOGO

RecipientInformation

on text

Letter text andline item list

Compa ny data (bank details)

The letter consists of several windows which can be formatted differently for each page. For example,

you do not always need the window with the recipient’s address on the second page. You can delete itthere if required.

The order of the various windows and the size as regards length and width can be changed.

Note The names for the windows are predefined. Changes which you make are not convertedby the respective print programs.



© SAP AG

BANKEN_1000

Forms

BANKEN_1000

ConfigurationConfigurationFormsForms

Name o f standard text

BANKEN_1000

Contents of standard text

printed in formStandard textStandard textBank details: bank 1: account number, bank number

bank 2: account number, bank number

Footer text

Signature

Sender

Header text

You define sender details for each company code in customizing. These are issued automatically

when printing forms. This sender data concerns the letter header (company name), the sender addressin the recipient’s address field, the greeting, closing and signature lines and possibly details regardingmanagement, entry in the register of companies and bank details.

If you use an existing company letter-head which already has the company data on, then you do notneed to maintain the company code-specific header, address and footer details.



© SAP AG

Summ ary Standard Texts and Forms

The forms stored in the SAP delivery system can be use das a m odel for your own forms, i.e. you can modify themto meet your specific needs.

The SA Pscript editor, which is used to create the forms, isan integrated tool which is also used for theImplementation Guide and programming in ABAP.

Which data is printed in the form is controlled byspecifications made in the print program.

The forms are printed after the parameters for the variousprograms have been made.

© SAP AG

Chapter Correspondence and InterestCalculation





© SAP AG

Overviews

in response to requestsin response to requests

periodicallyperiodically

Interest calc.Interest calc.Interest on arrearsInterest on arrears

Acct balance interest calculationAcct balance interest calculation

Bal.confirmationBal.confirmation

CorrespondenceCorrespondence



© SAP AG

B./exch.

Automatic Correspondence

Print programs

DocsDocsLineLine

itemsitems AcctsAcctsStandardStandard

formform

textstexts

Corres-pondencerequests

Payment notificationPayment notification

Account statementAccount statement

Bill/exch.charges statementBill/exch.charges statement

Individual letter/form letterIndividual letter/form letter

Internal documen tInternal docume nt

Document extractDocument extract

Trigger

Incomingpayments

Accountprocessing

BusinessBusiness

transactionstransactionsOtherOther

reasonsreasons

Periodic Correspondence

Rules forRules for

paymentpayment

notificationsnotifications

Periodic account statementsPeriodic account statements

Internal docum entsInternal docum ents

MaintainMaintain

DeleteDelete

You can generate correspondents in different ways:

periodically,

according to requirements during the online session,

bill of exchange charges statements and the notification of failed payments are always triggered bythe corresponding programs,

in the case of payment differences, you can always define in customizing that automaticcorrespondence is triggered.



© SAP AG

Correspondence: Functional Overview

Individualcorrespondencerequests

Payment notices with line items Payment notices without line items Account statement Open item list Bill of exchange charges statement Internal document Individual correspondence Document extract (credit mem o)



© SAP AG

Correspondence: Functional Overview

Print correspondence requests

Correspondencerequests andprint for bulk data

Periodic account statements

Internal docum ent

Maintaincorrespondencerequests

Print view Maintain text Repeat print Delete

Balance confirmation



© SAP AG

From Correspondence Type To Form

Company code Correspondence type Program Form name

SAP StandardSAP01SAP01 Pyt not.w.line itemsPyt not.w. line items RFKORD00 SAP01SAP01 Y140_PAY_CONF_01Y140_PAY_CONF_01

SAP02SAP02 Pyt not.w/o line itemsPyt not.w/o line items RFKORD00 SAP02SAP02 Y140_PAY_CONF_01Y140_PAY_CONF_01

SAP06SAP06 Acct statementAcct statement RFKORD10 SAP06SAP06 Y140_ACC_STAT_01Y140_ACC_STAT_01

SAP08SAP08 Open item listOpen item list RFKORD10 SAP08SAP08 Y140_ACC_STAT_01Y140_ACC_STAT_01

SAP07SAP07 B./exch.chrg stmnt.B ./exch .chrg s tmnt. RFKORD20 SAP07SAP07 Y140_BILL_CHA_01Y140_BILL_CHA_01

SAP09SAP09 Internal documentInternal docum ent R FKO RD 30 SAP01SAP01 Y140_INT_DOCU_01Y140_INT_DOCU_01

SAP10SAP10 Individual corresp.Ind ivid ual co rresp. RFK ORD40 SAP10SAP10 Y140_IND_TEXT_01Y140_IND_TEXT_01

SAP11SAP11 Doc.extract (cr.mem.)Doc.extract (cr.mem.) RFKORD50 SAP11SAP11 Y140_DOCU_EXC_01Y140_DOCU_EXC_01

SAP12SAP12 Failed paymentFailed payment RFKORD60 SAP12SAP12 Y140_FAIL_PAY_01Y140_FAIL_PAY_01

SAP13SAP13 Customer statementCustomer s ta tement RFKORD11 SAP13SAP13 Y140_CUS_STAT_02Y140_CUS_STAT_02

SAP14SAP14 Op.item list w.pyt adv.Op.item list w.pyt adv. RFKORD11 SAP14SAP14 Y140_CUS_STAT_02Y140_CUS_STAT_02

Variant ID

Note that when defining correspondence types the table is client-dependent.

If you work with SAP’s standard correspondence, then you must check whether the program variantsmeet your requirements and make any adjustments if necessary.



© SAP AG

From Correspondence Type To Form

Company code Correspondence type Program Variant Form name

Example of enhancements

ZAO01ZAO01 Pyt notice with linePyt notice with line

items and indiv. textitems and indiv. textRFKORD00 ZAP01ZAP01 ITIT F140_PAY_CONF_01F140_PAY_CONF_01

ID

SAP01SAP01 Pyt notice with linePyt notice with line

items and indiv.printer alloc.items and indiv.printer alloc.RFKORD00 BK001BK001 __ __ F140_PAY_CONF_01F140_PAY_CONF_0100010001



© SAP AG

Correspondence - Configuration

Base parameters Types Report allocation

Forms (also bal.conf.) Sender specifications (also bal.conf.) Call options

Payment notice Payment no tice control Report variants

Account statements Control Report variants

Bill of exch. charges stmnt:

Document extract Report variants

Balance confirmations Reply addresses

Selection criteria Report variants



© SAP AG

Individual Text

Preparing the correspondence type (using SAP10 as an exam ple)

Cor.TypCor.Typ Indiv. TextIndiv. Text ReportReport Text proposalText proposal Form nameForm name

SAP10SAP10 xx RFKORD40RFKORD40 F140_IND_TEXTF140_IND_TEXT F140_IND_TEXTF140_IND_TEXT

1.1.

Maintaining the standard text F140_IND_Text

Text nameText name F140_IND_TEXTF140_IND_TEXT

Text IDText ID FIKOFIKO

LanguageLanguage EE

2.2.



© SAP AG

Individual Text

Maintaining the form F140_IND_Text

/: INCLUDE & RF140-TDNAM E&/: INCLUDE & RF140-TDNAM E& OBJECTOBJECT BKORMBKORM

IDID FIKOFIKO

LANUAGELANUAGE &RF140-TDSPRAS&&RF140-TDSPRAS&

3.3.

Entering data, maintaining and printing the c orrespondence

/:/: During the printing process, variable RF140-TDNAME contains theDuring the printing process, variable RF140-TDNAME contains the

name of the text proposal that belongs to that particularname of the text proposal that belongs to that particular

correspondence type (standard text nnn).correspondence type (standard text nnn).

Variable RF140-TDSPRAS contains the entry or output language of theVariable RF140-TDSPRAS contains the entry or output language of the

text.text.

4.4.



© SAP AG

Balance Confirmations

Prepare balance confirmations for customers

Specify selection criteria

Prepare balance confirmations for vendors

Define reply addresses

You define the addresses to which the customers and vendors are to send their replies. Since this

address is often different from the company code address, it is important that you make thisspecification.

In addition to the existing selection criteria, you can also make selections from a list.

You can create a series of selection variants for both programs.



© SAP AG

____ ____ _ _

Balance Confirmation

Company code Correspondence type Report Form name

Customers

Saldenbestätigung Deb.Saldenbestätigung Deb. SAPF130DSAPF130D ____ ____ _ _ F130_CONFIRM_01F130_CONFIRM_01

Variant ID

- Check list- Check list LILI F130_LIST_01F130_LIST_01

- Error list- Error list ERER F130_ERROR_01F130_ERROR_01

- Results list- Results list RERE F130_RESULT_01F130_RESULT_01

Vendors

Vendor balance confirmationVendor balance con firmation SAPF130KSAPF130K F130_CONFIRM_01F130_CONFIRM_01

- Check list- Check list F130_LIST_01F130_LIST_01

- Error list- Error list F130_ERROR_01F130_ERROR_01

- Results list- Results list F130_RESULT_01F130_RESULT_01

LILI

ERER

RERE

The allocation of forms for the balance confirmation is also carried out via Base parameters -> Define

form names.



© SAP AG

Interest Calculation

Accounts receivableAccoun ts receivable

Accounts payableAccounts payable

Interest on arrears

Interest calculated on itemsInterest calculated on itemspaid after their due datepaid after their due date

Accoun ts receivableAccounts receivable

Accounts payableAccounts payable

G/L accountsG/L accounts

Account balance interest

Interest calculated on theInterest calculated on thevalue of the account balancevalue of the account balance



© SAP AG

Correspondence - Configuration

General interest terms Interest on arrears Account balance interest Special G/L transactions

Time-dependent terms

Reference interest rates Definition Values

Forms

Postings Calc.of interest on arrears (customers and vendors) Account balance interest calculation (G/L ac counts) Account balance interest calc.(accounts receivable) Account balance interest calc.(accounts payable)

Transaction types

Interest calculation typesInterest calculation types



© SAP AG

Posting Interest

Application 0004 = G /L account interest scale

1000 Interest earned1000 Interest earned1010 Val.dt in past1010 Val.dt in past Minus deb. int.Minus deb. int.1020 Val.dt in past1020 Val.dt in past DebitDebit1030 Settlement1030 Settlement DebitDebit2000 Interest paid2000 Interest paid2010 Val.dt in past2010 Val.dt in past Minus cr.int.Minus cr.int.2020 Val.dt in past2020 Val.dt in past CreditCredit2030 Settlement2030 Settlement CreditCredit

Business transactions

Business transactionBusiness transaction 10001000

Company codeCompany code ++

Interest indicatorInterest indicator X1X1

Business areaBusiness area ++

Posting details

D 40 Acct sysmbolD 40 Acct sysmbol AA

C 50 Acct sysmbolC 50 Acct sysmbol BB

Differentiation options


Interest indicatorInterest indicator

Business areaBusiness area

Chart of acctsChart of accts IN TINT

Act.symb.Act.symb. CurrencyCurrency G/L accountG/L account

AA ++ ++++++++++++

BB ++ Interest earned 1Interest earned 1

BB USDUSD Interest earned 2Interest earned 2

Accounts

Doc. type xx

The applications are predefined in the SAP system

(for example, 0002 Calculation of interest on arrears0004 G/L account interest scale).

The business transactions for the applications are already defined in the SAP system.

Define the document type for each application.

Allocate posting keys and account symbols to each business transaction.

Define the corresponding G/L account for each account symbol.



© SAP AG

Summary Correspondence andInterest Calculation

The SAP system contains a wide range of forms whichyou can us e to carry out various evaluations of yourcustomers. Some of these correspondence types can berun by calling up a program, others can be started fromthe document processing screens.

You can u se the text processing menu in SA Pscript toalter the layout and tex ts of the letters to suit yourbusiness’ standards.

© SAP AG

Appendix 1: Consolidation Overview

Consolidation Entries

Information System

Versions

Overview

Master Data

Preparations for Consolidation

Individual Financial Statements

Standardizing Entries

Currency Translation





© SAP AG

R

Konzernabschluß

Conso lidated financial statements The m erged individual financial statements of legally independent

organizations (subsidiaries) which a re econom ically dom inated by asuperior entity (parent company).

Theory of a “single legal entity”

"The consolidated financial statements present the assets, financialsituation and income of a consolidating group as those of a singleorganization.” (§297 Clause 3 Section 1 German Com mercial Code)



© SAP AG

R

Legal Foundations

7th EC Directive (of 5/16/1983) Objective: The standardization of regulations governing consolidated

accounting, in order that all consolidated financial statements withinthe EC are comparable.

German Accounting and Reporting Law (of 12/19/1985)

Incorporation of the 7th EC Directive into German law.

3rd book of the HGB (German Comm ercial Code),§§290-315

Implementation of the 7th E C D irective, among others

Disclosure Law



© SAP AG

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Implications of the Single Entity Theory

A double entry of investment and debt relationships inthe consolidated financial statements is prevented

All business transactions taking place between groupcompanies are treated as goods and servicetransactions within a s ingle enterprise

The consolidated statements are balanced andvaluated according to the laws governing the parentcompany

Consolidation of investments (§ 301 German Commercial Code)

Elimination of intercompany payables and receivables (§ 303 GCC)

Elimination of intercompany profit and loss (§ 304 Clause 1 GCC)

Elimination of intercompany profit and loss in inventory/transferred assets

Elimination of intercompany revenue and expense (§ 305 GCC)

Reclassification of items from the individual balance sheet in the consolidated balance sheet

Uniform valuation (§ 308 Clauses 1 + 2 Section 1 GCC)



© SAP AG

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Disclosure Obligations and Exemptions

Legal form Common control (§290 Clause 1 GCC)

Control principle (§ 290 Clause 2 GC C)

Principle of worldwide financial statements

Size-related exemptions

Conso lidated financial statements allowing exemption

Legal form: In principle, all corporations (for example AG, KGaA, GmbH in Germany)

Common control: The parent company coordinates the operating policies of the subsidiaries andother basic issues concerning their management.

Control principle: The parent has either:- the majority of the voting rights in a subsidiary- the power to appoint the majority of the members in the administrative, governing or

supervisory body of the subsidiary- the power to exercise a dominating influence over the subsidiary

Worldwide financial statements: Included in the consolidated financial statements are:- the domestic parent company- all subsidiaries, regardless of the location of their registered office

Consolidated financial statements providing exemption: In a multi-level group, each parent companyusually obliged to prepare consolidated financial statements (for their subgroup) including allsubsidiaries.

- Contradiction of the single entity theory- Limited information value- A parent is not obliged to prepare consolidated financial statements if it and all its subsidiaries

are included in higher-level consolidated financial statements.



© SAP AG

ReportsReports

Data inputData input

FormsForms PC data entryPC data entry SAP R/2, R/3SAP R/2, R/3

Consolidation Functionality

FI-LCFI-LCtotals,totals,

documentsdocuments

VersionsVersions

SimulationsSimulations

RestatementsRestatements

ExcelExcel

Gewinn- und Verlustrechnung

123

CAUmsatz

B50

FI-LCFI-LCInteractiveInteractiveReportsReports

FI-LC TotalsFI-LC Totals

reportsreportsReport WriterReport W riter

Report PainterReport Painter


CompaniesCompanies SubgroupsSubgroups FS itemsFS items

Transfer to EISTransfer to EIS

Consolidation stepsConsolidation steps

nn Standardizing entriesStandardizing entriesnn Currency translationCurrency translationnn Intercompany eliminationIntercompany eliminationnn IC profit/loss in inventoryIC profit/loss in inventorynn IC profit/loss in tr'd assetsIC profit/loss in tr'd assetsnn Consolid. of investmentsConsolid. of investmentsnn ReclassificationReclassification

You can customize your variants and valuation options in the Implementation Guide (IMG).

The functions can be run individually or bundled together.

All activities are started and monitored on the screen.

Posting entries are automatically generated for all consolidation steps.

Group accounting is performed in accordance with the document principle, and features the carrying forward of balances.



© SAP AG

Main Features of Consolidationn Flexible consolidated entities

n Integration with the SAP systems which generate individualfinancial statements

n Online entry of non-integrated financial statements

n Rem ote PC data entry

n High level of functionality in automated co nsolidation

n Flexible adjustments to meet international requirements

n Group accounting with carry-forward of balances, using thedocument principle

n Com prehensive standard reporting

n Simple definition of additional standard reportsn Ability to process large volumes of data

n Version concept for simulations and planning data



© SAP AG

Integration of FI-LC Legal Consolidation

ExecutiveInformationSystem

FI-LCConsolid-ation

Remoteprocessingof businesstransact.

EISEIS

CompanyCompany

consolidationconsolidationBusinessBusiness

area consol.area consol.

OpenOpen

usageusage

FI-GLFI-GL

GeneralGeneral

LedgerLedger

FI-AAFI-AA

AssetAsset

AccountingAccounting

SDSD

Sales &Sales &

Distrib.Distrib.

CO - PCACO - PCA

ProfitProfit

CenterCenter

CO - PACO - PA

ProfitabilityProfitability

AnalysisAnalysis

MMMM

MaterialsMaterials

MgmtMgmt

Operational SAP S ystems

FI-LC is integrated in two ways with other SAP modules:

Applications which handle day-to-day business transactions transfer data to FI-LC in summarized form.Consolidation Reporting supports a drilldown back to these applications.

Consolidated data is transferred to the EIS (Executive Information System), which collects highly summarizeddata from all enterprise areas (including Logistics and Human Resources) for one company or the group as awhole.

FI-LC supports the consolidation of any “consolidation unit”, providing the required financial data is supplied.

Through the integration of SAP applications, data can be made available for the consolidation of companies(legally independent units) and business areas (subdivisions of companies for the purpose of external segmentreporting).

EC-MC Management Consolidation will also support the consolidation of cost accounting units (profit center,

cost center, profitability segment).



© SAP AG

FI-LC Implementation: Scenarios

FIFI

productiveproductive

FI - LCFI - LC

at later dateat later date

R/3

++

FI / COFI / CO

AM / MMAM / MM

FI - LCFI - LC

onlyonly

R/3

++

FI - LCFI - LC

R/3R/3

RF / RARF / RA

RM / RKRM / RK

R/2R/2

Release 2.2 / 3.0 Release 4.0

INTEGRATED CO NSOLIDATION

STAND-ALONE APPROACH

SATELLITE APPROACH

LC AS PREDECESSOR TO MC

FI - LCFI - LC EC - MCEC - MC

SDSD

MMMM

PPPP

QAQA

PMPM

HRHR

FIFI

COCO

AMAM

PSPS

WFWF

ISIS

R/3R/3

Consolidation module implemented after or in parallel with a productive FI installation

This is the most common scenario for Consolidation implementation. During preparation for consolidation, thechart of accounts often needs to be enhanced, and organizational adjustments may be required for intercompanyposting.

Consolidation module as the first/only SAP application The focus in this case is on data input from external sources (remote PC data entry and flexible PC data-upload).You will also need to learn about the administration of the R/3 system, the database and the operating system.

Consolidation module as an R/3 satellite of an operative R/2 system A ‘small’ application which affects few users could be used as an introduction to the world of R/3. An interfacewith periodic data transfer and similar preparation for consolidation functions is available in the R/2 system.

FI-LC prior to Management Consolidation (EC-MC) As of release 4.0, FI-LC functionality will be contained in the EC-MC module, and automatic migration to

enhanced data structures will be available. You can start a project with FI-LC and later enhance it by addingconsolidation “dimensions”.




R

Chapter Master Data

Companies

Subgroups

Financial statement items



© SAP AG

Companies

SA PSA P

SAPSA P

SAPSA P

ParentSales

SA PSA P

Production

SA PSA P

Base unit for data input and consolidation

AttributesAttributes

Global parameters: address, country, language

Control parameters: currency translationvalidation che cksdata transfer methods

SA PSA P

SA PSA P SA PSA P

A company master record must be created for each organization that is included in the consolidated financial

statements.

Some company attributes are time- or version-dependent (such as the tax rate for deferred income tax, and thecurrency translation method). Therefore, when entering company data you must specify the fiscal year and period,a version and a ledger, also.

You can print a list of the master records with all company-related data



© SAP AG

R

Subgroups

reporting entity any combination of companies

balance sheet, income stmt. quarterly USD

balance sheet, income stmt. semi-annual DE M

Plastics

income stmt. monthly CHF

80% 60%

40 %

Total Europe

100%

60% 50% 75%

A subgroup is a combination of multiple companies for reporting purposes.

Definition:- any combination of subgroups (time- and version-related)- each subgroup can use a different group currency- different consolidation frequencies can be chosen- variable consolidation steps for each company

Technique:- Elimination according to company pair relationships- subgroup comparison reports across columns

Multi-hierarchy groups can portray individual hierarchy levels with subgroups (see Step Consolidation).



© SAP AG

Classification of FS items

INDIVIDUAL STATEMENTINDIVIDUAL STATEMENT

Acct.no.Acct.no. Name of accountName of account Item no.Item no.

::01000100 PlantsPlants 1032010010320100

02000200 Undeveloped landUndeveloped land 1032010010320100

03000300 Office buildingsOffice buildings 1032010010320100

::

Chart of accounts A

INDIVIDUAL STATEMENTINDIVIDUAL STATEMENT

Acct.no.Acct.no. Name of accountName of account Item no.Item no.

::

40004000 LandLand 1032010010320100

50005000 BuildingsBuildings 1032010010320100

::

Chart of accounts B

CONSOLIDATED STATEMENTCONSOLIDATED STATEMENT

Item no.Item no. Name of accountName of account

::

1032000010320000 Fixed assetsFixed assets

1032010010320100 Real estateReal estate

1032020010320200 Plant equipmentPlant equipment

1032030010320300 Other fixed assetsOther fixed assets

::

standardized FS chart of accounts

FI-LCFI-LC

FIFI

Different charts of accounts may exist within one group due to local statutory accounting requirements in

individual countries or the acquisition of new companies.

If different charts of accounts exist within a group, all of the accounts must be assigned to a standard financialstatement (FS) chart of accounts for the group.

You can consolidate at the operational account level by selecting an FS chart of accounts that is identical to theoperational chart of accounts.



© SAP AG

Attributes of Financial Statement Items

Item numberItem num ber

10 cha racters, alphanumeric10 cha racters, alphanumeric

Item typeItem type

asset itemasset item

liability/equity itemliability/equity item

income statement itemincome statement item

otherother

Item categoryItem category

value itemvalue item

totals item (range or set)totals item (range or set)

ratioratio

IndicatorsIndicators

consolidation-only itemconsolidation-only item

partial b reakdownpartial breakdow n

contra itemcontra item

additional accounts assignmentsadditional accounts assignments

Financial statement (FS) items are the main posting units in the Consolidation system.

The following options are available for creating a FS chart of accounts:

implementation of SAP’s standard FS chart of accounts, which can be post-edited manually,

adoption of the structure of the FS chart of accounts while automatically changing the item numbers,

creation of a new, custom FS chart of accounts (requires a high degree of customizing time!),

automatic copying of FS items from the FI module,

- copy from chart of accounts,

- copy from financial statement version.

Additional account assignments minimize the number of items that need to be defined.

You can enter values or quantities on FS items. You can use validation checks for validating the values in (statistical) sub-level item ranges against those in main-

level ranges.



© SAP AG

FS items and their Additional Assignments

Transaction typesTransaction types

fixed assetsfixed assetsreserves for special depreciationreserves for special depreciation

provisionsprovisions

appropriations, stockholders' equityappropriations, stockholders' equity

Trading partnersTrading partners

loans to affiliated companiesloans to affiliated companies

receivables from/payables to affiliated companiesreceivables from/payables to affiliated com panies

investments, ownerships in affiliated com paniesinvestments, ownerships in affiliated companies

revenue from/expenses for affiliated com paniesrevenue from/expenses for affiliated companies

CurrenciesCurrencies

receivables from/payables to affiliated companiesreceivables from/payables to affiliated com panies

loans to affiliated companiesloans to affiliated companies

Years of acquisitionYears of acquisition

fixed assets (for historical currency translation)fixed assets (for historical currency translation)

The system supports both individual additional account assignments as well as business-economical combinations

of additional account assignments.

The additional account assignments are made for each FS item during the configuration of the system.

The assignments affect data entry, validation checking, posting and reporting.

FI-LC also supports three user-definable additional fields not listed above.




R

Chapter Preparation for Consolidation

Data integration

Organisational structures

Parallel valuation in individual financial statements

Trading partners

Balance reconciliation



© SAP AG

Organizational Structure

non-SAP

Chart/accts CC C

Organization

SAP

Client 001

Companycode 0003

Chart/accts BB B

Companycode 0001

Companycode 0002

Chart/accts AA A

FS chart of accts

CompanyC0001

CompanyC0002

CompanyC0003

CompanyC0004

Group

FIFI

. . . . . .

FI-LCFI-LC

Organizational Units in FI:

The client is at the top level of the hierarchy in the SAP system. The definitions you make here apply to allunderlying levels.

G/L accounts are defined at the chart of accounts level. Each client can accommodate any number of charts of accounts.

Company codes are units which contain a complete self-contained set of accounts and generate a balance sheetand income statement at the end of the fiscal year. Exactly one chart of accounts is assigned to each companycode.

Several or all company codes can employ an identical chart of accounts.

Organizational Units in FI-LC:

Companies are individual business and legal entities which are included in the consolidated financial statements.A company code in the FI system corresponds to a company in the FI-LC system. The company codes mayreside in various R/3 systems.

The Consolidation system can also include companies that generate their individual financial statements on non-SAP systems.

All of the companies in the Consolidation system use a common financial statement (FS) chart of accounts.



© SAP AG

Trading Partners in ConsolidationCompanyGER

CompanyUSA

Customer SAP-USATrading partner USAUSA

Vendor SAP-GERTrading partner GERGER

Outgoing invoicePartner

Customer US AUSA 1000SAP-USARevenue US AUSA 1000-

Incoming invoicePartner

Vendor GERGER 1000-SAP-DEUExpense GERGER 1000

FS itemFS item CompanyCompany PartnerPartner

ReceivablesReceivables GERGER US AUS A 10001000-- GERGER US AUS A 1000-1000-

PayablesPayables US AUS A GERGER 1000-1000--- US AUS A GERGER 10001000

RevenueRevenue GERGER US AUS A 1000-1000- GERGER US AUS A 10001000

ExpenseExpense US AUS A GERGER 10001000 US AUS A GERGER 1000-1000-

Consolidation

-- Elimination of interco.Elimination of interco.

payables and receivablespayables and receivables Elimination of interco.Elimination of interco.

revenue and expenserevenue and expense

The allocation of indicators to group-internal posting transactions is a particularly important form of data

preparation for individual financial statements Even in small groups, the chart of accounts would often becomeoverloaded if company-specific accounts were used.

Instead, the SAP system puts the “sender-receiver relationship” on the document level in Financial Accounting,and manages the balances in Consolidation with the additional account assignment “trading partner”.

Customers/vendors that are affiliated companies are marked as such by an appropriate trading partner ID in theirmaster records.

In open item posting, the trading partner assignment is read from the master record and duplicated in all thedocument lines. It is therefore available for the elimination of intercompany payables and receivables/revenue andexpense in Consolidation.

Alternatively, you can also set the trading partner manually.

As it is duplicated in the document, the trading partner must be unique. However, document types for whichseveral trading partner assignments are possible can be defined for business transactions not relevant toconsolidation.



© SAP AG

R

Active cons. typesActive cons. types

Company cons.

Business area cons.

Profit center cons.

FI-LC

EC-MC

RF-KONS

Actual dataActual data

Realtime update

Rollup

Periodic extract

Plan dataPlan data

Rollup

Periodic extract

Group: Currency: Fiscal year variant:

Consolidation systemConsolidation system

Ledger Version File formation

Details

Rollup

Scope of Consolidation and Data Transfer

In the “Preparations for Consolidation” Implementation Guide of the parent or subsidiary system, the procedure for

the transfer of data from the FI-GL or FI-SL (Special Purpose Ledger) components into the Consolidationcomponent of the parent company can be defined. A check is run in the parent system to see if the selectedprocedure agrees with the specifications in the company master record.

For all procedures apart from realtime update, the file type (IDOC, PC, Unix) must be specified. Since FI-GL andFI-LC versions do not need to be identical, a relationship must be defined between the two.

The settings apply for all company codes/companies in the sender system. In the background, all company codes(in the case of data extract) or companies (in the case of realtime update) are assigned to the standard consolidationprocessing ledgers.

If the transfer is flagged as relevant for company and business area consolidation, two parallel data streams will becreated; either during realtime update or as two separate extract files.

Data from profit center accounting can only be transferred to the forthcoming EC-CS Management Consolidationmodule.



© SAP AG

R

Chapter Individual Financial Statement

Overview of data transfer

Data transfer monitor

Status management

Data transfer from Financial Accounting

Remote entry with MS-Access

Flexible upload

Central entry with data entry forms

Validation check



© SAP AG

Overview of Data Input

FI-LCFI-LC

Legal ConsolidationLegal ConsolidationFormsForms

Manual entrymail

disk/network

FI-AAFI-AA COCOSDSDMMMM FI-LCFI-LC

FI-GLFI-GL FI-SLFI-SL

disk/network

Stepconsoli-dation

Extract Realtime

update

Rollup

R/3 integration

SAP PC entryext.G/L

HOSTHOSTR/2

non-SAP system

Data input

Realtime updates by other SAP modules in the same system

Periodic data extracts from FI-GL

Rollups from a (user-defined) FI-SL ledger

Periodic data extracts from another FI-LC system (Step Consolidation)

Data extracts and rollups can be transferred from other SAP systems via ALE without any problems.

Flexible uploads of data extracts generated by non-SAP systems

Data output

Data transfers to a predefined aspect of the EIS database

SAP reports available in the Consolidation system Interactive accessing with Microsoft Excel or downloading of a data extract



© SAP AG

Data Transfer Monitor

Sender systemSender system

SubsidiarySubsidiary 22





ParentParentReceiver systemReceiver system

IDOCIDOC

S00002S00002

No data postedNo data posted

User: SmithUser: Smith

Date: 15/03/95Date: 15/03/95

Program: RGCMBU00Program: RGCMBU00

Co.IDCo.ID

PCupload

I n f o

e x e c u t e

execute

CompanyCompany Name Method StatusP00001 Parent co. Realtime update Data

S00001 Subsidiary 1 R/3 extract (IDOC) Data

S00002 Subsidiary 2 R/3 extract (PC) Error

S00003 Subsidiary 3 Manual entry No data

S00004 Subsidiary 4 R/3 extract (direct) Data

Subgroup SG1 Version 100 Year / Period 1995 / 003Year / Period 1995 / 003

DataDatainputinput

The data input procedure is displayed for all companies of a subgroup.

FI-LC supports realtime update, rollup from FI-SL, data extract from FI-GL, data extract from R/2 RF, data extractfrom Step Consolidation, upload from the PC data entry program or a user-defined record layout, and manual datainput.

Some procedures have variants (e.g. realtime update, IDOC, PC file, unix file).

Status of data input

Three values are possible: ‘data’ (has been posted successfully), ‘error’ (transfer had been started but no dataavailable), and ‘no data’ (transfer has not been started yet).

Detail information by company, e.g. number of posted database records or possible reasons for status ‘error’.

Starting data input out of the data transfer monitor

By company For several companies grouped by data input procedure or sender system



© SAP AG

Status Management

Subgroup SWW [DEM]Subgroup SWW [DEM]

Germany France USADEM FRF / PC upload USD / extract

Data entryData entry

Calculate retained earningsCalculate retained earnings

Standardizing entriesStandardizing entries

Validate local currencyValidate local currency

Lock data entryLock data entry

Consolidation entriesConsolidation entries

Validate subgroupValidate subgroup

Lock subgroupLock subgroup

Translate local currency

Validate group currency

Lock currency translation

Data entry

You can start data entry and standardizing entries immediately upon the creation of your companies. Standardizingentries are possible until data entry is blocked.

Companies which use realtime update from FI-GL, rollup, or periodic extract from R/2 as their data entry method,should start the program for calculating retained earnings. This program is displayed and controlled in statusmanagement.

Currency translation

Currency translation is automatically opened when data entry is blocked.

Display of currency translation on the detail screen. Provisional translation is not displayed.

There is no need to perform translation for companies whose local currency is the same as the group currency, andwhich do not use the proportional consolidation method.



© SAP AG

Transferring Financial Statement Data: Periodic Extract

Additional accountassignments:

Partner Transaction type Acquisition years

Account Company code

Business area Fiscal year

Transaction currency

Individual financial statements (FI)

Periodic extract with

summ arization according to:Company Item

Partner Transaction type Acquisition year Transaction currency


Consolidation

Postdocument


staging ledgerstaging ledger

GeneralGeneral

ledgerledger


databasedatabase

Financialstatementversion

Data extractData extract

+

Information generated in Financial Accounting by the balance sheet program (RFBILA00) should be duplicated as

closing data in Consolidation.

In order for this to happen, the Financial Accounting extract is triggered when the balance sheet/income statementis created (switch: “Extract to FI-LC”). The layout of the data extract corresponds with the output list on thescreen.

The link between general ledger accounts and consolidation items is created by a financial statement version whoseitems correspond with the consolidation items.

FI-AA transaction types are assigned to FI-LC transaction types in Customizing and summarized correspondinglyin the extract.

Periodic extract transfer allows individual financial statement data to be transmitted across system boundaries.

The consolidation staging ledger is managed in the sending system.

Data transfer is controlled in Consolidation using the data transfer monitor.

At year-end, consolidation data, in addition to FI data, must be carried forward.



© SAP AG

Transferring Financial Statement Data: Realtime Update

Account Company code Business area

Fiscal year Transaction currency

Individual financial statement (FI)

Realtime update of :Company Item Partner Transaction type

Acquisition year Transaction currency


Consolidation

Postdocument

GeneralGeneralledgerledger


databasedatabase

G /L ac co unt ___ ___ _

Group acct no._______

Realtime update of Consolidation data or rollup (for example from a user-defined ledger in FI-SL) are alternatives

to the periodic creation of extracts. In these procedures, general ledger accounts are assigned to consolidationitems by means of the group account number entered in the general ledger account.

A corporate chart of accounts must exist whose account numbers correspond with the consolidation items.

Realtime update can only be used if Financial Accounting (parent or subsidiary) and Consolidation are in the samesystem and client.

There should be no balance-dependent control of account groups. Contra items will be handled in a later step inthe Consolidation system.



© SAP AG

Enhan ced Integration of FI-LC Additional Account Assignments

Accounting document

- Functional area

- Customer country- Business area- Cost center...

Customer

master record(Customercountry)

Sustitutionrules

(Functionalarea)

Consolidatedincome statement:cost of salesaccounting

Consolidatedincome statementaccording tobusiness areas

External dataentry viaMS-Access

4 options of variableadditional account

assignments

Consolidatedsales revenueby customerregions

Periodic

rollup

Realtime

update

FI CO

Consolidationtotals database

R/3R/3

FIFI

COCO

AMAM

PSPS

WFWF

ISIS

MMMM

HRHR

SDSD

PPPP

QMQM

PMPM

4 variable additional account assignments, including transaction type, are available in Consolidation. As part of

integration, these can also be provided on realtime update from Accounting, as of Release 3.0D. This waspreviously only possible using a periodic rollup.

New functional area and customer country information is available in accounting documents (as of 3.0E), inaddition to business area, cost center and general ledger account.

Using the functional area, you can assign business transactions according to cost-of-sales accounting principles,and also prepare a corresponding consolidated income statement.

A business area consolidation procedure is available with Release 3.0. A prerequisite for this is that balancesheet items have been assigned to the combination company/business area in FI, thereby enabling postings to bebroken down into these business areas. If you only require (a) a breakdown by business area for the incomestatement and (b) consolidation results as totals, and not per business area, you can use the (simpler) companyconsolidation procedure. The operational business area in FI — restricted to income statement items — is

duplicated in an additional account assignment and posted simultaneously during the elimination of intercompanyrevenue and expense.

In Customizing, you can generally specify the items (= corporate accounts) for which various information will beduplicated in the additional fields.



© SAP AG

TranslationTranslation ReportingReporting TransferTransfer

MS AccessMS Access

MS AccessMS Accessdatabasedatabase

R/3R/3

ParentParent

I m p o r t

I m p o r t

Master dataMaster data Data entryData entry ValidationValidation

MS ExcelMS ExcelNon-SAPNon-SAPsystemsystem

E x p o r t

E x p o r t

Remote Data Entry with MS Access

As an enhancement to the R/3 system, the Consolidation component contains a user-friendly and powerful PC data

entry program for subsidiaries which do not have an SAP system. The program is based on the relational databasesystem MS Access, and includes the following functionality:

- Manual data entry and interface with MS Excel

- Validation

- Currency translation

- Reporting

Master data (for example financial statement items) and control parameters (for example data entry forms,validation rules) are provided by the group parent and imported into the local subsidiary system.

Financial data is periodically exported and transferred to the group parent. Data changed at the group head officecan be transferred back to the subsidiary.

Data is currently transferred via PC uploads and downloads. RFC (Remote Function Call) is currently planned asan additional option.

Integration with MS Excel

- Definition of the interface in MS Access

- Activities are started from within MS Access

- Standard MS Excel functions are used



© SAP AG

SAP Data Entry Forms

Item Curr.yr. Prev.yr.

1030 Assets1031 Real estate 8,01032 E quipment 3,0

1033 Other assets 1,01034 Asst u.constr. 30,0* Assets ( ) (42,0)

Balance sheet

Position TTy Curr.yr. Prev.yr.

1031 Real estate ( ) (16,300)

Open.bal. 100 12,100

Acquisitions 120 5,000

Retirements 140 800

Asset history sheet

l Multilinguall Comparison with previous yearl Flexible modificationl Data entry au dit trail

D e f i n i t i o n

LinesLines ColumnsColumns TextsTexts

Manual entry of individual financial statement data is supported

Multi-language capability

Flexibility in changing data entry forms

Balance check and summation levels supported during data entry

Data entry audit trail supported

Data entry is subject to status control



© SAP AG

Validation Checks

Validation rulesValidation rules

GroupGroup Categ.Categ. RuleRule

AA PP 1000 = 20001000 = 2000

FF Total Assets u nequal Total Liab./EquityTotal Assets unequal Total Liab./Equity

AA PP 1041>(V)1041 + '% 20'1041>(V)1041 + '% 20'

WW Inventory: curr. year > 20% of prev. yearInventory: curr. year > 20% of prev. year

Inventory

Status Management Warning

Pr. year Currentyear

liabilities& equityassetsassets

Balance sheet

Error

Callup points / objects to be checked

local valuation (local currency, company)

corporate valuation (group currency, company)

consolidated values (group currency, subgroup)

User-specific definition

Validation categories

item formulas

totals items

comparison of constants

previous year comparison breakdown total checking

changes in investment table comparison

changes in investee equity table comparison




R

Chapter Standardizing Entries

Document principle

Document types

Validation



© SAP AG

P a r e n t

S u b s i

d i a r y

+ =

+ =

? Globaladjustments

Cross-companyNo inspection by

group auditor

=

INDIVIDUAL EVALUATIONINDIVIDUAL EVALUATION

Inspection + report by auditorInspection + report by auditor

Indiv.fin.stmtdata for thecompany

+ Centralstandardizingentries

Summarizedfinancialstatements

Localvaluation

Indiv.fin.statement

Decentralizedstandardizing

entries an dreclassifications

Corporate v aluation

Indiv. fin. statementaccording to groupvaluation guidelines

Cons.entries

Consolid.financialstatement

Inspectionby auditor

Audited Corporate Valuation of Subsidiary Statements

FI-LC saves the central postings relating to a company separately as standardizing entries.

Financial reporting data and central standardizing entries can be evaluated separately in reporting.



© SAP AG

Central Standarizing Entries

Consolidation - PostingConsolidation - Posting

DOCTYPDOCTYPCo.IDCo.IDSUBGRPSUBGRPTEXTTEXT

APAPS00001S00001

ITEMNOITEMNO TT YTT Y PARTNERPARTNER AMOUNTAMOUNT

1032010010320100

3071010030710100

50.000+50.000+

50.000-50.000-

Standardizing entryStandardizing entry

Diff.declin.bal./straight line depr.Diff.declin.bal./straight line depr.

Function for manually entering central standardizing and consolidation entries

Standardizing entries are valid in all subgroups which include the company posted to.

Pairs of consolidation entries are only valid in those subgroups which include both companies and use thepurchase or proportional method of consolidation.

Subgroup-dependent consolidation entries are valid for one subgroup only.

Account assignment by FS item number and, if necessary, transaction type, trading partner and additional field

Account determination for automatic posting (adjustments to retained earnings, provisions for deferred taxes)

Reference and reversal function

Classification of entries using document types:

simple analysis by the user (document evaluation, interactive reporting)

differentiation according to business functions

mass reversal function



© SAP AG

R

Chapter Currency Translation

Translation methods

Translation keys

Analysis of translation differences



© SAP AG

Common Currency Translation Methods

FS itemFS item Pure currentPure current Modified curr.Modified curr. TemporalTemporal

rate methodrate method rate methodrate method methodmethodll AssetsAssets

nn Fixed assetsFixed assets SS SS SS S/DS/D HH HH HH

nn InvestmentsInvestments SS SS SS S/DS/D HH HH HH

nn Inventory stockInventory stock SS SS SS SS HH SS SS

nn Other assetsOther assets SS SS SS SS SS SS SS

ll LiabilitiesLiabilities

nn Stockholder’s equityStockholder’s equity SS HH SS SS HH SS SS

nn Retained earningsRetained earnings SS SS SS SS SS SS SS

nn Other liabilitiesOther liabilities SS SS SS SS SS SS SS

ll Income statementIncome statement

nn Revenue & expensesRevenue & expenses SS DD DD DD DD DD DD

nn Consumptn invent.stcksConsumptn invent.stcks SS DD DD DD HH DD DD

nn DepreciationDepreciation SS DD DD DD HH DD HH

nn Appropriation of net inc.Appropriation of net inc. SS SS SS SS SS SS SS



© SAP AG

Currency Translation

Local Group Diff.

Assets H = 3.0 S = 2.0

Buildings 500 1500 500

Machinery 500 1500 500

Inventory S = 2.0 S = 2.0

Raw matrl 500 1000 0

Audit trail by item

C u r r e n c y

C

u r r e n c yUSD CHF

SetsInventory

Assets

1995

1996

YearAnalysis of translation difference

Translation setTranslation set

Inventory Inventory Assets Assets

Exchange ratesExchange rates

Curr.Curr.-rate -rate

Historical Historical

1995

You can define any common currency translation method for your FS chart of accounts: temporal method, current-

rate method and so on.

You can select a currency translation method for eachcompany- period- version

Currency translation differences can be posted with or without an effect on net income.

Rounding differences can be handled.

Multi-dimensional analysis of currency translation differences is supported in reporting.

Translation differences (for example in fixed assets using the current-rate method) can be separately displayed.




R

Chapter Consolidation Entries

Intercompany elimination

Elimination of intercompany profit/loss in inventory

Elimination of intercompany profit/loss in transferredassets

Consolidation of investments



© SAP AG

Elimination ofloans

Elimination ofinterest income

Intercompany Eliminations

Elimination sets

Elimination ofinterco. sales . . .

ITEM G2 G3 TW

RCBL 230 115

PYBL 200- 110-

30 5

Exchangerate 2.0

20 10Currency Otherdifference difference

CoID PART GC DIF

G1 G2 500 500- 0

G1 G3 120 100- 20

G2 G3 230 200- 30

Difference

Pickup

Handling of differences

Elimination ofinterco.pay/rec.

G2 G3 230 200- 30

Balance reconciliation

There are three prerequisites for intercompany eliminations:

You should post elimination entries at company pair level. Individual financial statement data must be enteredwith reference to a trading partner.

You need to create freely-definable elimination sets in the system. In these sets, you specify which items willbe eliminated against each other, for example payables and receivables.

You should define elimination rules.

Differences arising from intercompany eliminations can be separated into currency differences and otherdifferences, for example posting differences.

Elimination can be simplified by using one-sided data entry.

Automatic reclassification during proportional consolidation.



© SAP AG

2560 ?2560 ?What to doWhat to do

with differencewith difference??

Company C1(Currency USD)

Causes of Elimination Differences

Company C2(Currency FRF)

R eceivables 1 1500 SFRExch.rate = 0.6

900 USD

Payables 1 1500 SFRExch.rate = 0.3

4500 FRFTranslation differencesTranslation differences

Receivables 2 2000 USDGoods u nder way (different posting date)Goods under way (different posting date)

Value adjustment toreceivables 2 400 USD

Rec. SFR 1500 USD 900

Rec. USD 1600 USD 1600USD 2500

Payables 1200 SFR 3600 FRF

3600 FRFTranslation into group currency

Payables = 1440 DEM

Exch.rate= 0.4

Receivables = 4000 DEM

Exch.rate= 1.6

Reversal 300 SFRExch.rate = 3.0

900 FRFInvoice not (fully) recognizedInvoice not (fully) recognized

Value adjustmentValue adjustment

??

Corporate policy usually specifies procedures for handling temporal posting differences, individual value

adjustments to receivables, and the partial recognition of payables.

The currency translation difference can be shown in FI-LC, as long as companies prepare their reports intransaction currency as well as local currency. This takes place automatically when data is transferred fromFinancial Accounting.



© SAP AG

In the year o f transfer: excess revenue (revenue - net book value)acquisitions/retirements in asset history sheetmid-year depreciation adjustments

In subsequent years: depreciation adjustm entexternal retirements, group-internal resale

Intercompany Profit/Loss in Transferred AssetsThe retiring com pany

The elimination

The acquiring company - Depreciation method

Open. Clos.

bal. Acq Ret. Trfr. bal.------ 300 ------ ------ 300

- acquisit ion cost- accum. depreciationdepreciation method- revenue (= acquisition amount at

the acquiring comp any)

Open. Clos.

bal. Acq Ret. Trfr. bal.1000 ------ 200 ------ 800

The retiring company reports its acquisition costs, accumulated depreciation, revenues and depreciation methods.

The acquiring company reports the acquisition amount and the depreciation method.

The IC profit/loss is eliminated and computed as follows:

revenue - remaining book value = IC profit/loss

Elimination of the acquisition and retirement for the asset history sheet

Depreciation is adjusted for both companies



© SAP AG

Consolidation of Investments

Rule - Sharepurchase method 51 - 100 %pooling of interest 90 - 100 %proportional consolidation e.g. 50 %, 33 1/3 %equity method 20 - 50 %(book value, revaluation, proportion of equity m ethod)

Methods

Functionality

80 90

5070 60

- minority share of ownership- hidden reserves- g oo dw ill- one run per subgroup

Activities

- firs t con so lid atio n - in crease/redu ctio n in cap ita liza tio n- subsequent consolidation - investment amortization- step acqu isition - divestiture

- transfer

The main purpose of consolidation if investments is to eliminate the intertwined equity of the group’s

organizations. The parent company’s investments in its subsidiaries are cleared against the subsidiary’sproportionate stockholders’ equity.

Various methods can be applied, depending on the parent company’s level of influence in the subsidiary:

purchase method, proportional consolidation, equity method.

When processing fair value adjustments (hidden reserves), you determine if and how these are to be eliminated.

When the investment share in a company is less than 100%, minority shares of ownership are taken intoconsideration.

Techniques:

Simultaneous consolidation of all companies of the subgroup

Calculation of shares according to the matrix multiplication procedure (multi-level calculation of group shares)

Step consolidation when the subgroup is defined hierarchically

Transactions:

automatic and manual entries

numerous extra reports (investments, equity, fair value adjustments, goodwill)



© SAP AG

R

Chapter Information System

Overview of Reporting Options

Report Selection

Totals reports

Interactive Reporting

Journal Entry Reports

Reporting of Master/Financial/Control Data

Report Writer and Report Painter

Integration with EIS

Interactive Excel



© SAP AG

Information System

R/3R/3

FI-LC FI-LC

Database Database

Totals reportsReport W riter

Report Painter

InteractiveReporting

Journal entryreports Reports of

l master data

l control paras

l financial data

Transfer

to

EIS

Inter-active

Excel

123

CAErlöse

B50

FI-LC totals reports

A consolidation-specific "Report Writer" for evaluating the totals database

A comprehensive reporting system is delivered

Report Writer and Report Painter

User-friendly, powerful SAP standard tools for generating reports

Specific selections for processing the version and time dependencies of the subgroups

Interactive Reporting

Interactive analysis of the FI-LC totals database, including drilldowns to the consolidation documents and theFI Financial Accounting module

Journal entry reports Flexible journal entry evaluations including custom designs (display/totals variants), sorts and searches of

information, drilldowns, access to master data

Interactive Excel

Interactive R/3 database access and use of all MS EXCEL functions



© SAP AG

Interactivereporting

Reporting Options

FormulasList header Lines Columns Texts

Bundling

Individual call-up

Scaling

Multilingual

ReportReportprogramprogram

DepartmentMenues F keys or SpreadsheetWindows Scrolling host printer Extract Wordprocessing

O u t p u t m e d i a

SAP O rgwareSAP O rgware AccountantAccountant

Report DefinitionReport Definition

Numerous standard reports are supplied by SAP as Orgware. User departments can define further reports.

Elements in a report:

List header

Line layout

Column layout- Values: values from the database or formulas- Texts

You can call up reports individually or as a bundle (several reports).

You can request a report in various languages.

You have the option of scaling (Thou., Mill. and so on).

Output

screen (ad hoc information)

printer

data carrier (data passed on to higher-level group)

PC (inclusion in text, visual formatting)

Large volumes of data can be handled by separating data selection and evaluation.



© SAP AG

Interactive Reports (1)

Balance Sheet

Fixed assets 20Curr. assets 30* ASSETS 50Equity 40Liabilities 10* E QY /L IA B. 50

Income Stmt.

Revenue 60Expense 40Taxes 5* ANP 15

Ratios

CASHFLOWEQY_RATIO

.

.

.

CompanyCompany

ownershipownershipSubitems /Subitems /

comparisonscomparisonsChanges local/Changes local/

corp./cons. valuecorp./cons. valueSwitchSwitch

valuationvaluation

MENUES FUNCT KEYS WINDOWS

system-operator interaction

D e t a i l d i s p l a y

Predefined primary displays

Choice of items, quantities, ratios

User interaction with the system by positioning the cursor, using the function keys and mouse

Hierarchy and business graphics

Interface to the individual financial statement data in FI



© SAP AG

Interactive Reports (2)

Companyownership

Subitems /comparisons

Changes fr. local/corp./consd.value

Change invaluation

FI accountbalances

FI journalentries

FI entiredocument

Scaling

Individualentries

Entiredocument

MiscellaneousReports

Balance sheetdiagram

SubgroupCompany

master record

Chart of value changes

companies

YearC01 C02 C03

Owner equity item

90

91

92

Corporate structure diagram



© SAP AG

Balance sheet value changes: local - corporate - consolidated

FS item Local Stdg. Corp. IC IC elim. C/I Consdval. entries val. elim. Inv.,TA value

Fixed assets 100 5 105 - 15- 25- 65Tangible assets 60 5 65 - 15- 5 55Intangible assets 40 - 40 - - 30- 10

Current assets 80 10- 70 15- 10- - 45Inventory 50 - 50 - 10- - 40Receivables 30 10- 20 15- - - 5

Total 180 5- 175 15- 25- 25- 110

FI-LCFI-LC

Report

Writer

Report

Painter

Report Writer and Painter for Consolidation Data

The Report Writer is a powerful tool for creating reports. It has been a component of the SAP system for a long

time and is used within several applications (e.g. FI-SL, CO-OM).

It is more easy now to report consolidation data with the Report Writer. A special data selection takes care of theversion and time dependency of subgroups and of the FI-LC concept of different posting levels.

Special group reports, which use the same criterion in lines as well as columns, must have additional fields forsuch a criterion at their disposal (e.g., the transaction type in multi-line asset history sheets; or the FS item foraged receivables/payables). The standard delivery system includes the corresponding fields.

To make the work of creating reports easier, SAP has developed the Report Painter which provides an interfacebetween the user and the Report Writer. The Report Painter can be learned quickly and can be used by users whohave little or no knowledge of Report Writer concepts, such as sets.

The SAP standard system includes several Report Writer and Report Painter reports for consolidation data. Theyare stored in library 4LC and can be imported from client 000 into your client.



© SAP AG

Income statementIncome statement

123

CARevenue

B50

Spain 4%Spain 4%

Switzerland 21%Switzerland 21%

FranceFrance10%10 %

Germany15%

USA 50%USA 50%

ExcelExcel

R/3R/3FI-LCFI-LC

R/3R/3

Activelink

Automaticupdate

Changes

Interactive Excel - Reporting with MS Excel

The functions are available as add-ins to MS Excel.

Activities are started from MS Excel.

An active data link is provided via RFC (Remote Function Call). RFC makes direct communication with R/3application function modules possible..

RFC allows you to directly access data, and also supports authorization checks.



© SAP AG

The Principles Behind Interactive Excel

Version: 001-Version: 001-

actual valueactual value

Balance sheet

Year: 1994

Period: 12

Column layout

Line layout

Valuematrix

Σ / D iff .FS item

Headerdata

ConsolidationConsolidationtotals databasetotals database

Group: SWW

Selection of individualvalues fromlist fields

Vector transfer

Active accessto values inR/3

Microsoft ExcelMicrosoft Excel


Control tablesControl tables

Line layoutsLine layouts

FI-LC / R/3FI-LC / R/3

Column layoutsColumn layouts

StandardExcel

Version:001- Actl.

You generate a spreadsheet step by step, using the functions mentioned earlier.

As soon as you have run FI-LC data selection, you can immediately see R/3 value changes in the spreadsheet.

If parameters (for example version or year) change, values and diagrams are automatically updated via the activelink.

Advantage: The layout only needs to be defined once and is then always filled with updated data.

The snapshot function allows you to save the spreadsheet without the active link.




R

Chapter Versions

The concept of versions

Version concept - an example from currencytranslation



© SAP AG

productionproduction


Simulation Analysis / Version Concept

simulationsimulation

version Nversion Nplanplan


Queries: effects of valuation optionssimulation using different exchange rates / financial data

consolidation of investments

elimination of intercompany profit and loss

elimination of intracompany sales of m erchandise

elimination of intercompany payables/receivables

currency translation / differences

standardizing entries / reclassifications (corporate valuation)

Copy indiv.

fin. stmt. data

Enter

plan statement

Enter indiv.

fin. stmt. data

The use of multiple versions provides you with the following simulation options:

the effects of valuation options

the effects of different exchange rates

the effects of different consolidated entities (restatement)

comparison of different reported financial data (e.g., plan/actual)

Special versions for the financial data and the methods for each of the consolidation steps are assigned to aconsolidation version.

You can create new data (local data, for instance) by copying an existing version.



© SAP AG

Version Concept - A Currency Translation Example

Individual statementIndividual statement Exchange ratesExchange rates

Consolidated statementsConsolidated statements

Actual/local

REVRE V 100100

EXPEX P 8080

NETINCNETINC 2020

Plan/local

RE VRE V 150150

EX PEX P 120120

NETINCNETINC 3030

Actual

USD

1.5

Plan

USD

1.8

Actual data - Act.ratesVersion 001

REVREV 150150EXPEX P 120120

NETINCNETINC 3030

Actual data - Plan ratesVersion 002

REVRE V 18 0180EX PEXP 14 4144

NETINCNETINC 3636

Plan data - Plan ratesVersion 003

RE VREV 270270EX PEXP 216216

NETINCNETINC 5454

The version concept can be applied to

alternative individual FS data

alternative exchange rates

any combination of the above alternatives



© SAP AG

R

Appendix 2 SD and Financial AccountingIntegration



© SAP AG

R

Transferring Data from SD

Invoice

Sales organ.: 0001

Distr ib . channel: 01

Division: 01

Accounting document

100.-

100.-

Value: 100.-

Company code: 0001

Customer

Sales revenue

The system transfers billing data from invoices, credit memos and debit memos to Financial

Accounting and posts it to the proper accounts.

Prior to creating the posting document, the following billing data can be changed:

billing date

pricing

account determination

output determination

After the data has been transferred to Financial Accounting, only the output determination can bemodified.



© SAP AG

R

Data Transfer

Invoice

Invoice

Posting

block

Accounting

Accounting

Release

Basically accounting data is transferred automatically to Financial Accounting.

You can set a posting block on particular invoices. The corresponding accounting document iscreated only after the invoice is released.

When customizing your system, you can define a posting block for each type of invoice.



© SAP AG

R

Reference Num bers / Allocation Numbers

Sales order

Sales order numberCustomer purchase order numberReference numberAllocation numb er

Delivery

Delivery numberExternal deliver num ber

Invoice

Invoice number

Allocation num berReference number

Accounting document (FI)

Reference number

Customer line item

Allocation num ber

The reference number and allocation number in an accounting document can be assigned

automatically with numbers from SD objects.

For example, the customer purchase order number can be transferred to the invoice and then passedon as the reference number to Financial Accounting.

Under the copying control for invoices in customizing, you can define what numbers are transferredas reference numbers and as allocation numbers.

A - Customer purchase order number

B - Sales order number

C - Delivery number

D - External delivery number

E - Invoice number



© SAP AG

R

Account Assignment Criteria in the Invoice

Invoice

Chart of accounts

Sales organization

Acct assgnmnt group

Acct assgnmnt group

Account key Calculation procedure

Price 100.- ERLDiscount 10.- ERS

: : :

Account key

ERL = Sales reven ueE RS = S ales ded uction

: :

Company code

Payer’s master record

Material master record

AssignmentAccountdetermination

keyin standard

system

Account

In the standard system, you can make account determination based on

the chart of accounts,

A chart of accounts is a classification scheme for all accounts in accounting. Several company codescan use the same chart of accounts.

the sales organization,

the account assignment group of the customer,

The account assignment group enables you to combine customers for account assignment purposes.

the account assignment group of the material, and

This group enables you to combine materials for purposes of account assignment.

the account key.

The account key allows you to combine condition types for account assignment needs.



© SAP AG

R

Sales Revenue Account Determination

Records: condition type KOFI

No valid record existsValid record exists


Access sequence: KOFI

1 . S ales o rg an iza tio n chart/accou nts G ro up G ro up , acco un t keycustomer material

2. Sales organization chart /accounts Group Account keycustomer

3. Sales organization chart/accounts Group Account keymaterial

4. Sales organization chart/accounts Account key

5 Sales organization chart/accounts

Invoice

Item 10 10Price 1000.-USDDeduct 10 % 100.-USD

Salesdeduction

100

Account

Sales deductionSales deduction

KOFI00 acct determination

Condition type KOFI

Access sequence: KOFI

You can set up posting to sales revenue accounts according to various criteria.

In some instances these criteria are irrelevant.

You can differentiate account determination by using the access sequence.



© SAP AG

R

Summary SD and FI Integration

SD and Financial Accounting are integrated so that billingdata from invoices, credit memos and debit mem os istransferred to Financial Accounting.



© SAP AG

R

Appendix 3: Overview of Credit Management

Introduction to credit managem ent

Com position of total liabilites

Decentralized organization - centralized organization

Credit limit per customer or group of customers

Credit limit for new customers

Centralized data and data per credit control area

Disputed items

Timing of credit checks



© SAP AG

R

Introduction

VendorVendor

A


GOODS / SERVICES

CASH

VendorVendor

B

Customer BCustomer B

GOODS / SERVICES

CASH

In order to minimize the credit risk in goods delivered and services rendered, credit management has

been integrated into the SAP system as a separate function alongside Financial Accounting andSales/Distribution. This makes it possible to use the credit management functionality to determine thecredit policy for each of your customers and to ensure that this policy is enforced in each individualbusiness transaction.

The automatic credit control function and the blocks it makes on business transactions are linked tosales and shipping processing. From a workstation the credit control clerk can access all informationhe/she requires to monitor and control critical business transactions at the push of a button.

Note on the online credit management documentation:

R/3 system online help: FI Financial Accounting - Accounts Receivable - Credit Management

R/3 system online help: SD Sales and Distribution - Credit Management The Implementation Guide contains information on credit management in the following chapters:

IMG: Financial Accounting

IMG: Sales and Distribution.



© SAP AG

R

Receivables

Composition of Total Liabilities

TOTAL

LIABILITIES

Tilia Inc.

Special liabilities

Open billingdocument value

Opendelivery value

Openorder value

+/-

+

+

+

ExceededExceeded

CRED IT LIMIT Tilia Inc.

Open order value:

Value of the order items that have not yet been delivered.

The open order value is calculated on the basis of confirmed quantities (confirmed quantities * cost of credit = open value of an order). An order that is blocked due to credit review does not receive anyconfirmed quantities. In addition, it does not increase the open order value as long as it is blocked.

Open delivery value:

Value of delivery items that have not yet been billed.

Open billing document value:

Value of billing document items that have not yet been entered into the accounts.

Receivables from sales are added to the total liabilities unless they are flagged as disputed items. Receivables from special G/L transactions (e.g. down payments, guarantees) that are flagged as

relevant to the credit limit check are passed on as special liabilities into the total liabilities.

The payer is the decisive factor in updating these values.



© SAP AG

R

Local Organization - Central Organization

CCA 1: EUROPE

CO.CD.: Germany

EUROEURO

DE MDE M

CCA 1: ASIA

CO.CD. : JAPAN

US DUS D

JENJE N

CO.CD. : UK

GBPGB P

CO.CD. : KOREA

US DUS D

Sales org. 1

Sales org. 3

Sales org. 2

Sales org. 4

A credit control area is an organizational unit that assigns and monitors customer credit limits. A

credit control area may comprise one or more company codes.

Local credit monitoring involves a system in which each credit control area has only one companycode assigned to it.

Central credit monitoring on the other hand is a system in which a credit control area is assigned morethan one company code.

A single currency is defined for each credit control area.

If a credit control area contains any company codes whose local currency differs from that of thecredit control area, the receivables are translated into the currency of the credit control area.

In the same way, all open order, delivery and billing document values are translated into the credit

control area currency as well.



© SAP AG

R

Credit Limit Per Customer / Group of Customers

CUSTOMER: West Inc.CREDIT ACCOUNT: West Inc.

LIMIT: 200,000

A Limit per customer

CUSTOM ER: Dillon Inc.CREDIT ACCO UNT: Dillon Inc.

LIMIT: 50,000

CUSTOM ER: Kruger Inc.CREDIT ACCO UNT: Kruger Inc.

LIMIT: 100,000

B Limit for group ofcustomers

CUSTOMER: West Inc.CREDIT ACCOUNT: West Inc.

LIMIT: 300,000

CUSTOM ER: Dillon Inc.CREDIT ACCO UNT: Dillon Inc.

LIMIT: 0

CUSTOME R: Kruger Inc.CREDIT ACCOU NT: Kruger Inc.

LIMIT: 0

When a group of affiliated companies exists, the credit data for customers of the group can be

specified at a head office. Data such as risk category and credit limit that is agreed upon then appliesto all affiliated companies in the group.

The open order values and the receivables from all customers of the group are managed under thesame credit account.



© SAP AG

R

Credit Limit For New Customers

CUSTOMER: NOVUS Inc.

LIMIT: 10,000

Novus Inc.

New customer

---Novus Inc.---

List: customers w/o credit data

Manual creation

CUSTOMER: NOVUS Inc.

LIMIT: 10,000

Risk category: New customersCredit rep.grp: New customersLIMIT: 10,000

Control via credit control area

Automatic creation

A B

In variant A, where no credit data has been created, customers are not subject to credit control.

In variant B, credit data is created for new customers as soon as they are acquired. This means thatthese customers are subject to credit monitoring from the first moment they are in the system.

Caution: Credit controls can only be carried out if credit data has been maintained

for customers.



© SAP AG

R

Central Data and Data Per CreditControl Area

CUSTOM ER: TILIA Inc.TOTAL L IMIT: 100,000Max. individ.limit: 60,000CURRENCY: USD

Central data

CUSTOM ER: TILIA Inc.CCA: USALIMIT: 50,000CURRENCY: USD

CUSTOM ER: TILIA Inc.CCA: GermanyLIMIT: 30,000CURRENCY: DEM

Data perCC A

30,000 DEM = 20,000 USD

50,000 USD20,000 USD

70,000 USD

Maximum individual limit ok

Total limit ok

Total credit limit:

This determines the total permissible credit for a customer across all credit control areas. The sumtotal of all the individual credit amounts granted to that customer in all the control areas he belongs tomay not be greater than the total credit limit for that customer.

Maximum individual credit limit:

Valid for all control areas, this limit sets a ceiling on the amount of credit that may be granted to thecustomer in any one credit control area in your system.

Individual credit limit:

The individual credit limit determines the actual credit limit for a certain customer in a certain controlarea. This individual limit must not exceed the maximum individual credit limit for that customer

(which is valid for all control areas). When setting up credit control areas you can set a default valuefor the individual credit limit. Specifying a default value ensures that the credit limit is set at theappropriate amount when you create a customer in a company code, i.e. credit master records arecreated for each customer automatically when it is created.



© SAP AG

R

Disputed Items

Incoming payment TILIA Inc.Open items 12,000Incoming payment 11,000Difference 1,000

Configuration: Financial Accounting- Incoming payments

Reason code

01

02

Disputedyes

no

TILIA Inc.Receivables: 1,000

TILIA Inc.Receivables: 0

Reason code

01

02TILIA Inc.Receivables: 1,000

TILIA Inc.Receivables: 1,000

Customer account Credit account

Reason codes are defined for each company code to enable the system to process payment

differences. Reason codes are assigned if, for example, cash discount deadlines were exceeded, orcash discount was taken even though the customer was required to pay the full amount, or if thecustomer simply miscalculated the amount paid.

You can define an indicator for each reason code specifying whether or not the system should create adisputed item for a payment difference. Disputed items do not increase a customer’s receivables totalrecorded in credit management.

Disputed items are also not included in credit checks on the earliest open item and the amount of open items with a certain number of days in arrears as a percentage of all open items.



© SAP AG

R

When To Review Credit

OrderCredit status: blocked Credit control

DeliveryCredit status: blocked Credit control

Goods issue Credit control

In system configuration you specify at what points in the above example you will carry out a credit

review. You can, for example, configure your system to check credit only during order processing.

If a credit review is blocking a document, it cannot be processed any further by functions in sales andshipping.

A credit review at the goods issue stage cannot block any transactions, since this is the final shippingtransaction. However, if a customer is found to have exceeded his credit at the goods issue stage, thesystem will not allow you to post the goods issue for that delivery, and instead issues an errormessage.



© SAP AG

R

Summary Credit Management

The flexible credit management functionality allows y ou toeasily create credit control areas which represent theorganizational structures of your com pany or group in thesystem

Since the credit functionality is integrated into the ordermanagem ent process, you can carry out credit reviews ontransactions at a very early stage.

To learn more in detail about credit management includinghow to c onfigure this functionality, we would recomm endyou visit cours LO645.

Asset AccountingAsset Accounting





© SAP AG

Contents

Chapter 41 Periodic Processing

Chapter 42 Info System

Chapter 43 Transfer of Old Assets Data

Chapter 37 Organization Structure of Ass etAccounting

Chapter 38 Master Data

Chapter 39 Asset Transactions

Chapter 40 Valuation



© SAP AG

Chapter Organizational Structure of AssetAccounting

l Client, company code, chart of depreciation, chart ofaccounts

l Assignment to Cost Accounting

l Asset class



© SAP AG

Company code 1001


1000

Company code 1000


1000 2000 3000 - - -

AssetsAssets

nn intangible assetsintangible assets

nn fixed assetsfixed assets

nn financial assetsfinancial assets


ExpensesExpensesnn depreciationdepreciation

- - -

Business area


ClientClient

Client - Company Code

SoftwareSoftware

MachinesMachines

SecuritiesSecurities

1 0 0

5 0

The client is the highest level in the SAP System hierarchy. Specifications which you make on this

level apply to all company codes.

Each company code is an independent accounting unit. The legally required balance sheet and profitand loss statement are created on this level.

A business area is a separate unit in business terms for which an internal balance sheet and profit andloss statement can be created.



© SAP AG

Chart of Accounts - Chart of Depreciation

ClientClient

Country A

:

Chart of deprec.Chart of deprec.

Book deprec.Book deprec.

Tax deprec.Tax deprec.

Cost-acc. dep.Cost-acc. dep.

Group deprec.Group deprec.

Chart of accounts

C om pany cod e C om pany cod e C om pany cod e C om pany cod e

1000 2000 3000 - - - -Chrt o f acts. INT Chrt o f acts . INT Chrt o f acts . CAUS Chr t o f acts . XXX

Chart of deprec. Chart of deprec. Chart of deprec. Chart of deprec.1DE 1GB 1US 1XX

You can create a number of charts of accounts for Financial Accounting and a number of depreciation

areas for Asset Accounting in the system.

General ledger accounts are defined on the level of the chart of accounts.

You define the necessary depreciation areas in the chart of depreciation. You can define a separatedepreciation area for each type of valuation.

You will usually want to create one chart of depreciation for each country. It makes sense for all thecompany codes in a country or in a business/industrial sector to used the same chart of depreciation.

Each company code uses exactly one chart of accounts and one chart of depreciation.

Several (all) company codes can work with one chart of accounts and one chart of depreciation.



© SAP AG

Organizational Structure - Exam ple

Charts of depreciationCharts of depreciation

Country ACountry A Country BCountry B

Machine Tools,Inc.Country A

FinancingServices, Ltd.Country A

Charts of accounts

ClientClient

Industry Banking

Asset Cons-truction, Inc.Country B

AssetFinancing Co.Country B

There is no set relationship defined in the system between the chart of accounts and chart of

depreciation.

One possibility is to set up charts of accounts according to branches of industry and charts of depreciation by country.

SAP provides model charts of depreciation for many countries, with pre-defined depreciation areas.



© SAP AG

Asset Accounting Company Code

Chart ofaccounts Chart ofChart ofdepreciationdepreciation

Financial AccountingCompany Code

+

Data for Asset Accounting

Asset Accoun tingAsset Accounting

Company CodeCompany Code

==

You have to set up company codes in Financial Accounting first.

Then assign them to a chart of depreciation, and add the data necessary for Asset Accounting.

You can use the company code for Asset Accounting only after making these modifications.



© SAP AG

Cost Accounting Assignment

Controlling

area1000

Company code1000

Company code1001

Cost center

Act. Plan

Asset - Forklift

Cost center

Order

VehiclesVehicles

Book deprec.

Tax deprec.

C-acc. deprec.

Order

VehiclesVehicles

Act. Plan

DepreciationDepreciation

InterestInterest

ClientClient

You can assign an asset to the following Controlling objects:

cost center

activity type

order

maintenance order

When you assign an asset to a cost center, the system automatically assigns it to a controlling area.

A controlling area can include one or more company codes.



© SAP AG

Client - Asset Class

Astor House 1

Vehicle 4711

Computer 11

Printer 6CFixtures and Fittings

VehiclesVehicles

BuildingsBuildings

Asset Classes

Book deprec.


1D E1D E

Tax deprec.

Cost-acc.dep.

Book deprec.


1US1U S

Tax deprec.

Group

Book deprec.


1XX1X X

Asset Class Fixtures and fittings

Control dataDefault values

Assets

You create each asset in an asset class.

Asset classes consist of a master data section and a section for determining values.

The master data section must be assigned to at least one chart of depreciation. This assignmentenables you to complete the asset class with the data for determining values.

You can suppress individual depreciation areas in each asset class, for example investment supportareas which are only applicable to certain classes.

For each depreciation area, the depreciation terms for the assets can either be proposed by the systemwith the option of changing, or they can be mandatory.

Several charts of depreciation can also be assigned to an asset class. This ensures that the asset classcatalog is uniform despite using different depreciation areas.



© SAP AG

Summary: Organizational Structures inAsset Accounting

l The organizational structures of Asset A ccounting arepresented in this chapter:

n The cha rt of depreciation:The cha rt of depreciation co ntains the necessarydepreciation areas for different types of valuation.Every company code is assigned to exactly one chartof depreciation.

n The dep reciation area:The depreciation area shows the valuation of assetsfor a given purpose (such as, book or taxdepreciation, or depreciation for cost accounting).

n The asset class is the means of structuring the asset

portfolio according to different legal and businessrequirements.

© SAP AG

Chapter Master Data Asset Accounting

l Functions of the Asset Class

l Master Records

l Bulk Changes using W orkflow





© SAP AG

Functions of the Asset Class

Asset class

AccountAccountallocationallocation

ScreenScreenlayoutlayout

NumberNumberassignmentassignment

SpecialSpecialfeaturesfeatures

DefaultDefaultvaluesvalues

SelectionSelectionfeaturesfeatures

Assets LiabilitiesAsset portfolio

Real estate

Machinery

Financ. assets

Fixtures+fit.. . .

. . .

. . .

Bal. sheet itemsBal. sheet itemsAcct. determinationAcct. determinationAsset classAsset class

Assets

LatheLathe

0220000002200000

CreateCreateassetasset

DrillDrillpresspress

0211500002115000

1

The asset class contains default values and control elements which are passed on to the individual

assets when you open a new asset master record.

By entering useful default values, you reduce time and effort needed for creating new asset masterrecords. You also ensure that the records in a given class are handled uniformly.



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Definition of the Asset Classes

Client levelClient level

Account allocation

Screen layout rule

Number range

Default values

Chart of depreciationChart of depreciation

levellevel

Section for

valuation data

Selection of

depreciation areas

Default values

Master datasection

Asset classes

Asset classes are made up of a master data section and a section for valuation data.

You define the master data section of an asset class once on the client level.

The valuation data section is dependent on the assigned chart of depreciation, which in turn isdirectly linked to the company code.



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Account Assignment

. . .. . .

Accountdetermination

10000Real estate

20000Technical assets

30000Fixtures and fittings

Class Chart of accounts CAUS

Chart of accounts INT


BookBook


Cost-acc.Cost-acc.


Deprec. Interest

Acquis. Retmt.D C

D C

D C

D C

D C

D C

D C

D C

D C

Deprec.

D C

D C

D C

D C

- - -

Accountallocation

By means of the account allocation, all asset class master records are assigned to certain general ledger

accounts. These accounts are simultaneously posted in Financial Accounting when a businesstransaction takes place. The balances of these accounts are in turn entered in the correspondingbalance sheet items.



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Screen Layout for Asset Master Data

Computer 11

Asset Fixtures and Fittings3000Screen layout

Feldgruppe Screen layout Maint. levelsReq. Opt. Sup.

Dis-play

C la ss M ain no. S ub -n o.

Description

Inventory no.

Cost center

x x x

x x

x x

x x

Asset master

Description ?

Inventory number

Cost center ?

Asset classAsset classFixtures andFittings

:

Screen layout

3000

- - -

The screen layout and the maintenance level are the most important elements in the asset class for

making control settings. .

The screen layout specifies for asset master records:

which fields and/or field groups are displayed in the asset master record

whether these fields appear as required entry or optional entry fields.

This allows you to reduce the number of master data fields to those that are specifically needed for theasset class, and to ensure that certain important control information has to be entered.

The maintenance level determines where maintenance of each data field and/or field group is allowed.The possible maintenance levels are

asset class

asset main number

asset sub-number.



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Number AssignmentCompany code -number assignment

Company code

1000

1000 1001

2000 3000

2000 3000

4711 4711 4711

4712 4712 4712

4713 4713 4713

4714 - - - - - -

4715

4716

- - - - - -

Assetnumbers

You enter the number range in the asset class. The number range controls the assignment of asset

numbers, and is defined either as internal or external.. Internal numbers are automatically assigned bythe system, external numbers are assigned by the user.

You can assign a company code its own number ranges, or link it to those of other company codes.

You enter the company code for number assignment in the Asset Accounting company code (fornumber assignment across company codes).



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1515

Transaction type groups

Special Asset Class: Assets under Construction

Class: Assets u. const.

ExtrasExtras

AuC statusAuC status

Down paymentDown payment

1616 Down pa yment carried forwardDown paym ent carried forward

from previous yearsfrom previous years

nn AuC manag ed as totalAuC manage d as total

nn line item settlementline item settlement

nn capital investment m easurecapital investment m easure


areasareasdeprec.deprec.

keykey

Book dep.Book dep. 00000000Tax dep.Tax dep. 00000000

Cost-acc.Cost-acc. LINALINA

negative values allowednegative values allowed

depreciation is not calculated indepreciation is not calculated indepreciation areas intended for thedepreciation areas intended for the

balance sheetbalance sheet

Assets under construction require their own asset class.

Choosing the depreciation key ‘0000’ ensures that depreciation is not calculated for the asset underconstruction in depreciation areas that are posted to the balance sheet (in accordance with the legalrequirements in most countries). However, special tax depreciation and investment support arepossible even on uncompleted assets.

Assets under construction have to be shown separately in the balance sheet.

It is possible to post down payments on assets under construction if you enter transaction type group15.

You can enter credit memos on the asset under construction after its complete capitalization, if youallow negative acquisition and production costs (APC).

The component IM (Investment Management) is available for managing more extensive assetinvestments from a controlling-oriented perspective.



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Asset class - Depreciation area

Low value assets - Individual checkExactly 1 asset per master record

Low value assets - Quantity checkAny number of assets per master record

When posting: Check againstthe allowed maximum amount

or

Special Asset Class: Low Value Assets

You can choose whether to manage low value assets (LVAs) using individual management or

collective management.

For each type of management, you have to set up a separate asset class.

If you choose collective management of LVAs, you have to enter a base unit of quantity in the assetclass.

You request the maximum amount check in the depreciation area in the asset class. You enter themaximum allowed amount in the IMG under “Activities” at the level of the company code.



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Creating the Asset Master Record

using a referenceusing asset class

taking over the defaultvalues from the asset class

'copying' anexisting asset

CreateCreateassetasset

When you create the asset master record, you have two options:

You can use the asset class, to which the asset will belong, to provide default values. The assetclass then supplies the most important control parameters in the asset master record.

Or you can use an existing asset as a reference for creating the new asset master record. (Possiblythe reference asset has default values that are more suitable than those in the asset class.)

Enter additional information, such as an asset text.

When you save, you receive an asset number (if the asset class is assigned to a number range that usesinternal number assignment).

This asset number is also the account number of the individual asset account.



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Time-dependent Data

ASSET MASTER RECORD

- Time-dependent data -

Enter period under considerationEnter period under consideration

Valid fromValid from MMDDYYYYMMDDYYYY

Valid toValid to MMDDYYYYMMDDYYYY

Cost center A from 01/12/YY to 08/27/YY

Cost center B from 08/28/YY to 11/30/YYCost center C from 12/01/YY to 03/14/YY

. . . . .

. . . . .

. . . . .

New Interval

01Mont h

Calendar

Some information in the asset master record can be managed as time-dependent data. This is of

particular significance for cost accounting assignments (for example, cost center, order, project).Shift operation and asset shutdown, both of which can have a direct effect on depreciation, shouldalso be recorded on a monthly basis as part of this time-dependent data.

The history of time-dependent assignments is stored in the system over the entire life of an asset.



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Changing Assets

Document for thisfield chan ge

Document numberDate of changeName of user whomade change

Fields changedOld and newcontents of field

Change asset

List of fields thatwere changed

Field 1Field 2Field 3

List ofchanges per field

Change 1Change 2Change 3

All for

document

2 x

on asseton asset on fieldon field

Change docum ents for assetChange documen ts for asset

Display asset

EnvironmentEnvironment

complete changedocument withall fields

Document for this change

DOCUMENT NO:DATE:CHANGED BY:OLD/NEW FIELD CONTENTS

Asset

Cost center X

2 x

Each time you change an asset master record, the system creates a change document, which contains

all necessary information.

When a large number of assets are affected by a change, you can make a bulk change. Using thisprocedure, you can carry out freely-definable master data changes, mostly automatically. (Anexample is the change of assignment to a cost center when the cost center plan has been changed.)



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The Asset Sub-number

Asset number 4711

Production plant Synthetic materia l

Sub-number2000

De-aeratorReactor

Sub-number1000

Extruder

Sub-number3000

Pipe

Sub-number9000

If an asset consists of several components, it might be advisable to manage the individual components

separately as sub-number master records. This might be useful for both technical and accountingreasons. You might divide up assets by sub-number, if :

you want to manage the values for subsequent acquisitions in following years (for examplebuildings) separately,

you want to manage the values for individual parts of assets separately,

you want to divide the asset according to various technical aspects.

You can work directly with a specific sub-number, all sub-numbers belonging to an asset, or aselection from a list display of sub-numbers. You can also evaluate accumulated depreciation and thebook values for previous fiscal years separately for the individual asset components.



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Use of Workflow in Asset Accounting

ReportingReporting

Value displayValue display


General WorkflowGeneral W orkflow

procedureprocedure

work listof

selectedassets

GenerateGenerate

Check &Check &

releaserelease

ProcessProcess

SelectSelect

Workflow is currently used in FI-AA for mass retirements and bulk changes.

There are three central steps:1. Select the objects (assets) to be changed2. Assign the task to be performed on the objects3. Release and process the Workflow

You can create a work list- from the asset value display- from the asset master record- from the asset Information System- using general Workflow procedures

You can select the assets to be changed via almost any field in the asset master record.



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Bulk Changes using Workflow

2 Create work list

List of the assets to be changedList of the assets to be changed

(such as the asset list or asset directory)(such as the asset list or asset directory)

Short text:Short text:

Bulk change:Bulk change:

Cost center 4711 replaced by 8936Cost center 4711 replaced by 8936

Task:Task: Bulk change

Replacement rule A

Condition:

If <cost center> = '4711'

Replacement:Field ValueCost center 8936

Entries for bulk change

n Replacement rule A

3

1

Pre-defined W orkflow taskPre-defined W orkflow taskfor bulk change:for bulk change: BULK CHANGE

The user's SAPofficeThe u ser's SAPoffice

inboxinboxOption of releasingor processing theworklist

4

To perform bulk changes, proceed as follows:

1. Enter a substitution rule to specify which fields you want to change.2. Generate a list of assets to be changed (for example by running a report with the appropriateselections).3. Click on the button “Create work list” in the list display. You can then enter the task number foryour Workflow.

Bulk changes are predefined as a standard task in the system.4. When you specify a task, a popup appears in which you can enter your substitution rule.5. The Workflow will then appear in the user’s SAPoffice inbox, where it can be released and

processed (if the user has authorization).



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Substitution COST 1

Step 001 Change cost center 4711 to 8936

Prerequisite

More ...<ANLZ> &KOSTL = ´4711´

Continue

Substitutions (when prerequisite is met)

Field Contant value Sub. Exit

Cost center 8936Entry 1 of 1

Constant value or program exit,Constant value or program exit,

if condition is metif condition is metDefinition of conditionsDefinition of conditions

using Boolean rulesusing Boolean rules

Workflow for Bulk Changes (Rule)

The substitution rule consists of preconditions, which must be met before the rule can run, and of the

replacement rules themselves.

Enter a constant value or your own user exit as a replacement rule.

You can find further information on substitutions in the R/3 Library in the Financial Accountingsection under Special Ledger.



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Summary Master Data AssetAccountingl Master data is explained in this chapter:

n The asset class:In each asset class, you define control parameters anddefault values for depreciation calculation and for othermaster data.

n The asset:A fixed asset is an item in the company assets which isidentified as a single com modity in the balance she et andwhich is used in the compan y's business activities.

n The sub-number:A com plex fixed asset can be represented in the systemusing several ma ster records, that is, sub-numbers.

n Workflow:In FI-AA, Workflow is used for making mass changes tomaster data.

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Chapter Asset Transactions

l Asset Accounting as Subsdiary Ledger

l Integrated Asset Acquisitions

l Document Types

l Document Number Ranges

l Transaction Types

l Asset Retirement

l Asset Transfer

l Capitalization of Assets under Construction

l Current-value Depreciation





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Asset Accounting as Subsidiary Ledger

AssetAsset

MaterialMaterial CustomerCustomer

Machine pressMachine press

10001000

VendorVendor

1000

G/L AccountsG/L Accounts

General Ledger

Fixed assetsVendor

Payables

1000 1000

Along with the integration of accounting and logistics functions, the integration of the subsidiary

ledgers with the general ledger is also extremely important. Every transaction in customer and vendoraccounts in Accounts Payable and Accounts Receivable, and in the asset accounts has a direct affecton the corresponding accounts of the general ledger. The subsidiary ledgers are reconciled with thegeneral ledger in this way.



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Asset Acquisition - Integration

FIFI

MMMM

COCO

AssetAsset

Transactions

Acquisitions

Retirements

Goodsreceiptdocument

Settlement oforder/project

Depreciation areasPostingdocument

2000.-...

...2000

...1800

...2100

Book Tax C-acc . . .

line items

The acquisition posting can be created in the department that is primarily responsible for the

transaction.

“Acquisition from vendor” is when an asset is obtained from a business partner (as opposed to“Acquisition from in-house production). This acquisition of an asset from a third party can beposted in different ways, and in different organizational units (R/3 components):

- in Asset Accounting (FI-AA), without reference to a purchase order, but integrated withAccounts Payable

- in Asset Accounting, without reference to a purchase order, and without integration withAccounts Payable (posting to a clearing account - with/without clearing)

- in Materials Management (MM), with reference to a purchase order, at goods receipt or invoice

receipt “Acquisition from in-house production”" is the capitalization of goods or services that are partially

or completely produced in your own enterprise. For these in-house produced goods (such asreplacement parts) or services (such as maintenance measures), you have to capitalize costs to assetsthat were also produced in your enterprise. Generally, you carry out the capitalization of productioncosts or maintenance by settling an order to an asset. For more information, see the documentationfor the R/3 System CO-OPA (Order Project Accounting - R/3 library). If there is no order, you canalso manually post production or maintenance costs to an asset.



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Procedure for Integrated Asset Acquisition

Integrated- posted to vendor

Doc. date Doc. type Company codePosting date

PK 70 Account Asset Trans. type 100

Amount Tax amountTax indicatorAsset value date

PK 31 Account Vendor

AmountTax indicator

Post

Vendor lineVendor line

Posting:Posting:

Asset lineAsset line

You can post to the asset and to the vendor in one document in Asset Accounting, using the menu pathPostings B Acquisition B External acquisition B with vendor in the Asset Accounting menu.

You can freely determine the sequence of the posting lines.

The posting “debit asset, credit vendor” is often made in Accounts Payable. This posting then fills therequirements of both Financial Accounting and Asset Accounting at the same time.



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Accounts for Integrated Asset Acquisition

Posting keyPosting key AccountAccount Amt.Amt. Trans.typeTrans.type Ast. val. dateAst. val. date

- Integrated posted to ven dor -

Simplified example:Simplified example:

Posting w/out discount and w/out tax on 09/01/YYYY

ASSETASSET VENDORVENDOR

PayablesPayablesFixed AssetsFixed Assets

ACCOUNTSACCOUNTS

EntryEntry

70 Asset 10001000 100 09/01/YY09/01/YY

31 Vendor 10001000 ------

in general ledgerin general ledger

in subsidiary ledgerin subsidiary ledger

Autom.

posting

1000 1000

1000 1000

When you post to a vendor or an asset account, the relevant general ledger accounts (payables and

fixed assets) are automatically posted at the same time.



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Document Type: Gross or Net

ANAN

AAAA

Caution:Caution: If you deduct the discountIf you deduct the discount

at the time of payment, you haveat the time of payment, you have

to reverse the discount amountto reverse the discount amount

on the asset subsequently.on the asset subsequently.

1.1. NetNet :: Asset invoiceAsset invoice

Doc. typeDoc. type ::

Acct. typeAcct. type :: A,K,M,SA,K,M,S

ProcedureProcedure :: gross amountgross amount

minusminus input taxinput tax

minusminus discountdiscount

capitalized amountcapitalized amount

2.2. GrossGross :: Asset invoiceAsset invoice

Doc. typeDoc. type ::

Acct. typeAcct. type :: A,D,K,M,SA,D,K,M,S

ProcedureProcedure :: gross amountgross amount

minusminus input taxinput taxcapitalized amountcapitalized amount

You have to enter a document type for each document that you post (or the system automatically

enters a default document type).

You freely define the document type in Customizing. It is a two character, alpha-numeric entry thatsystematizes how the documents are stored.

You assign exactly one number range to each document type.

You specify account types that are allowed when making entries with this document type.

The net document type determines how the posting is processed:

with document type ‘AA’ you post gross, that is, without deducting a discount

with document type ‘AN’ , on the other hand, the amount capitalized to the asset is reduced by thediscount deducted.



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Maintaininterval

Company code: 1000

Number range 01

Year YYYY

from number 0100000000

to number 0199999999

Num ber status 1000010000

External __

You define a separate number-range for documents for each company code.

If you do not want the numbers defined as year-dependent, then enter a future year under “year.”



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Transaction Type

Acct. assignment Retirement/Transfer Other features

- capitalize asset - retirement w/ revenue - past activity

- deactivate asset - gain/loss from retirement - posting to affil. company

- debit/credit indicator - TTY of offsetting posting - consolidation procedure

- acct. assgmt. to project - acquisition in same year - not for manual use

- document type - repayment of investment

support

controls

Transaction type

It is not sufficient to identify an asset transaction as a credit or a debit, since the assets have to be

represented in the asset history sheet, for example, as acquisitions, retirements, transfers, and so on.

In order to more precisely identify asset transactions, therefore, transaction types are used. Youalways need to enter a transaction type when posting.

The transaction type specifies

which accounts in an account allocation

which depreciation areas and

which value fields

should be updated. In addition, you have to make additional entries to indicate retirements/transfers orother characteristics of the transaction.



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Transaction Types/Transaction Type Groups

210Retirement -

sale

100Acquisition -

purchase

110Acquisition

in-houseproduction

200Retirement -

scrapping

34nTransfer -

asset underconstruction

3nnTransfer -affiliatedcompany

Transaction type groups10 AcquisitionAcquisition 2n RetirementRetirement 3n Transfer ...Transfer ...

Retiremen t list

210200

201

Retmt.Retmt.

Retmt.Retmt.

Retmt.Retmt.

SaleSale

ScrappingScrapping

Act of GodAct of God

Asset history sheet

Retmt.. . .

Acquis.. . .

Transfer. . .

Closingbalance

Startingbalance

Transaction types

. . .

Every transaction type belongs to a transaction type group. The most important control factors of a

transaction type come from the transaction type group. The transaction type group categorizes thefollowing business transactions:

those that influence the acquisition and production costs of an asset. This includes acquisitions,retirements, transfers, post-capitalization.

down payments

investment support measures

manual depreciation

write-ups

The transaction type groups are fixed and cannot be changed.

You can define your own transaction types in order to be able to represent certain transactionsseparately in reports.

For certain transaction types, you can specify that they are limited to certain asset classes (forexample, down payments allowed only in the asset class for assets under construction).

You have to organize the use of the appropriate transaction types within the hierarchy of yourenterprise.



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Non-integrated Asset Acquisition

- non-integrated, posted to vendor -

CLEARING ACCOUNTCLEARING ACCOUNT VENDORVENDOR

ASSETASSET

1

2

Accounts PayableAccounts Payable

Asset AccountingAsset Accounting

1000100011000

10002

2100010001

When the asset acquisition is posted in two different departments, the following problem arises:

You normally use a clearing account. In order to guarantee that this account has a zero balance, youuse a general ledger account with open item management. Therefore, you also have to clear this typeof account.

For the posting Postings B Acquisition B External acquisition B Automatic offsetting entry, theclearing account has to be cleared in an additional step. (Usually this task is performed in FinancialAccounting.)

For the posting Postings B Acquisition B External acquisition B Clearing offsetting entry , theclearing account is automatically cleared at the same time you post “credit to asset, debit to clearingaccount.”



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Asset Acquisition with MM

G/LRe -lease

AP PaymentG/L

Purchaseorder request

Purchaseorder

Goodsreceipt

LogisticsLogistics

FinancialFinancial

AccountingAccounting


Invoice receipt(preliminary

entry)

AssetAssetAccountingAccounting

Asset master record

valuatedor

unvaluated

Capitalizationof asset

ActualPreliminary

actual

POcommitmentCost center

or order

Purchase order requests Costcenter or order

When you are using both the FI-AA System and the MM (Material Management) System, you can also

post an asset acquisition within the framework of purchasing (see the System Administration Guide ).Unlike most other accounting transactions, this involves working through a series of steps to beperformed at different times:

(1). creation of a purchase requisition

(2). creation of the purchase order

(3). There are a number of different possibilities for the next step:

- The goods receipt takes place before the invoice receipt and the values are not yet posted to AssetAccounting. The line items are created and the values are updated instead at the time of theinvoice receipt. However, the system uses the date of the goods receipt as the capitalization date.

- The goods receipt takes place before the invoice receipt and the values are posted directly to AssetAccounting. The asset is capitalized, line items are created, and the value fields in the asset areupdated. When the invoice is received later, there may be differences between the invoice amountand the amount posted at the time of the goods receipt. In this case, the corresponding adjustmentpostings are made to the asset.

- The invoice receipt takes place before the goods receipt. The asset is capitalized, line items arecreated and the value fields are updated.

The account assignment type (A=asset) determines whether the goods receipt is posted directly toAsset Accounting or not. For business accounting purposes, it makes sense to post the goodsreceipt directly to Asset Accounting, since this date is usually date that determines when the assetbelongs to the enterprise.



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Asset Acquisition - Master Record

Master RecordMaster Record

Asset value date:Asset value date: 09/01/YYYY09/01/YYYY

Vendor:Vendor: 11

Purchase price:Purchase price: 10,00010,000 ne tne t

DocumentDocument


Asset 4711

Capitalization on 09/01/YYYYO rig . acq uis . o n 09/01/YYYYAcquis. period CY09

Depreciation area Dep. start

01 07/01/YYYY02 07/01/YYYY20 09/01/YYYY: :

The following information is automatically set in the asset master record at the time of the first

acquisition posting (this applies to assets that are capitalized normally):

date of capitalization and the first acquisition

acquisition period

depreciation start date per depreciation area.



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Asset Acquisition - Value FieldsDepreciation calculation

Depreciation Depreciationarea key

01 LINR: (str.-line, half yr. rule):

20 LINA(str.-line, pro rata)

Value fieldsValue fields

Useful life = 10 years

annual dep. = 1000Depreciation area Dep. start Planned dep.

01 07/01/CY20 09/01/CY

Asset value date:09/01/CY

DocumentDocument

Master RecordMaster Record

Dep. start

07/01/CY

09/01/CY

500333

CY = Current year

The system uses the asset value date of the initial acquisition posting to determine the depreciation

start date of the asset. This determination takes place using the control of the depreciation start in thedepreciation key of the asset. The system enters this start date in the asset master record.

The system determines the planned annual depreciation and the planned interest.

When further transactions are posted to the master record, these values are corrected acordingly.

Caution: The posting date and the asset value date always have to be in the same fiscal year!



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Procedure for Asset Retirement

Example of partialExample of p artialretirement :retirement :

Integration with FI

Posting:Posting:

Document date 07/01/YYYYPosting date 07/01/YYYY

PK 01 Account: Customer

Amount 3300C alc. ta x Ta x in dica tor

PK 50 Account:Revenue from asset retmt.

Amount * Tax indicator

Asset retirement

Customer lineCustomer line

Revenue lineRevenue line

- Acquis. date 01/01/YYYY- 2, APC 10000- Retmt. of 50% of APC on 07/01/YYYY- Revenue 3000 + 300 sales tax

Asset.. .. .. .. .. .. .. . ASSET NO.

Sub-number...

Transaction type.. 210

Ast value date... 07/01/YYYY

Max. amount........

Quantity...............

Percentage rate.. .. .. 50

Select the field “asset retirement” in the revenue account. You reach a window, in which you can

enter

the number of the asset

the retirement transaction type

the asset value date

the portion of historical APC being retired, or the indicator for complete retirement.



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Accounts for Asset Retirement

A/R postingA/R posting

CustomerCustomer

33003300

RetirementRetirementrevenuerevenue

30003000

TaxTax

30 0300

Assets postingAssets posting

AssetAsset

1000010000

12501250

Clearing ofClearing o fretirementretirement

30003000

LossLoss

750750500050001

3

2

1

2

3

Example for p artialExample for partialretirement:retirement: - Acquis. date 01/01/YYYY - 2, APC = 10000

- Retirement of 50% of APC on 07/01/YYYY- Revenue 3000 + 300 sales tax

APCamount retiredproportional valueadjustment

In Asset Accounting, you can post a retirement with the function Postings BBBB Retirement BBBB Asset sale BBBB

No customer for entering asset transactions. The accountant responsible for accounts receivable mustthen carry out the revenue posting, if necessary.

Both these procedures can also be performed in one function, that is with one document. Thisinvolves three steps:

Create the invoice lines in the customer open line item account.

Post the invoice to the customer open line item account.

Post the APC being retired to the asset.

The system automatically posts the proportional accumulated depreciation of the asset and the gain orloss from the sale.



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Asset Retirement

Acquis. date 01/01/YYYY-2, UL = 10

APC 10000.-

Dep; str.-line from APC 1000.- per year

Value date of retirement: 07/01/YYYY

Portion retired: 50% of APC

Determining proportional value adjustmentsDetermining proportional value adjustments

Value adjustments inValue adjustments in

past periods:past periods:

2000; of which 50%2000; of which 50% = 1000= 1000

Value adjustments inValue adjustments in

the current period:the current period:

1000; of which 50% for 1/2 year1000; of which 50% for 1/2 year = 250= 250

= 1250

When you use the standard transaction types provided with the system, the system automatically

creates certain postings. When there is a gain or loss, in addition to the postings to the asset balancesheet account and the adjustments to accumulated depreciation, the system automatically posts gain orloss, as well as revenue clearing. The gain/loss postings, as well as the revenue clearing postings, aredependent on transaction types. They are created automatically when the indicator “Gain/loss fromretirement” is set in the definition of the transaction type. If not needed, you can deselect thisindicator. In that case, you have to make the required postings manually.



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Asset Retirement

Asst. value dateAsst. value date 07/01/YYYY07/01/YYYY Debit/credit 8300Debit/credit 8300

Item Posting Account Tax Tax Amt.key indicator

001 01 Customer A1 3300002 50 Retirement revenue A1 300- 3000-003 50 Taxes 300-004 75 Asset 5000-005 70 Asset 1250006 40 Retirement clearing 3000007 40 Retirement loss 750

ItemItem 004, 005:004, 005: retired APC and proportional value adjustments for the assetretired APC and proportional value adjustments for the asset

DocumentDocument

}

The system determines the reference period for the asset retirement based on the asset value date and

period control. The system automatically determines the value adjustments (depreciation) up to thisperiod on the portion of the asset being retired. This amount is then retired at the same time using thesame transaction.



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Workflow for Mass Retirement

List of assets to be retiredList of assets to be retired

(such as, asset list, master data list...)(such as, ass et list, master data list...)

Anlage

Anlage

Entries forEntries for

mass retirementmass retirement

n posting daten document daten transaction typen asset value daten revenue distribution

l prop. to APCl prop. to net book value

n revenue

User's SAPofficeUser's SAPofficeinboxinbox

Option to release orprocess the work list

Create work list

1

2

3

Predefined tasks for asset retirement:

l retirement without revenue

l retirement with revenue

Short text: RetirementShort text: Retirement

Plant 0001Plant 0001

Task:Task: Retmt. w/ revenueRetmt. w/ revenue

To perform a mass retirement proceed as follows:

1. Generate a list of assets to be retired (for example by running the appropriate report with thedesired selection).2. Use the function key “Create work list” in the list display to enter the task number for yourWorkflow.

Mass retirement with and without revenue is predefined as a standard task in the system.3. When you specify a task, a popup appears in which you can enter additional information for the

retirement.4. The Workflow will then appear in the user’s SAPoffice inbox, from where it can be released and

processed (if the user has authorization).

If errors occur during the Workflow, the system automatically generates a new Workflow containing

the assets for which errors occurred. It then processes this Workflow in the foreground so you cancorrect the errors.



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Asset Transfer

Asset XXXX

Posting date MMDDYYYY

Transaction type Asset ZZZZ

Asset value date MMDDYYYY

Complete transfer

Posted amount ....

Percentage rate

transfer totransfer to

Bus iness area 1000

Business area 2000

automatic determinationautomatic determinationand posting of proportionaland posting of p roportional

value adjustmentsvalue adjustments !

300

Asset Accounting distinguishes between the following types of transfer, depending on the

circumstances:

Stock material (current assets) is transferred to a fixed asset, for example, the installation of areplacement part (see online documentation for a detailed explanation of the procedure).

An asset under construction is settled and transferred to a completed asset.

You transfer an asset within a corporate group to a different company code. This procedure isdescribed in the section for asset transfer (see online documentation for a detailed explanation).

You want to split up an asset or install part of an asset in another asset (transfer from asset to asset).(See ‘change of location’ below for an explanation of the procedure.)

The asset has changed location. As a result, you have to change organizational allocations (such as,

asset class, business area) in the master record that cannot otherwise be changed.- Enter a transfer transaction type. In the screen that follows, enter the asset to which you want to

make the transfer, and the amount of APC that is being transferred.

- The system automatically determines the proportional value adjustments, as it does forretirements.



© SAP AG

Asset 3Asset 3

Asset 2Asset 2

Asset 1Asset 1

Gen. masterdata

Depreciationareas

A cqu is. R etm t. T ransfers

Asset underAsset under

constructionconstructionAcquisitionsAcquisitions

InvestmentInvestmentsupport measuressupport measures

Down paymentsDown payments

SpecialSpecialdepreciationdepreciation


T r a n

s f e r s

A c q u i s i t i o

n s

Assets under Construction

Asset historysheet

Com pleted assets

A.u.C.

Buildings

General master dataGeneral master data

Automatic handling of specialdepreciation and investment support!

Assets you produce yourself have two phases that are relevant to Asset Accounting:

the under construction phase

the useful life.

Generally, the assets have to be shown in two different balance sheet items during these two phases.Therefore, they have to be managed using a different object or asset master record during the under-construction phase than for the completed asset. The transfer from the under-construction phase tocompleted asset is referred to here as “capitalization of the asset under construction.” You canmanage assets under construction in the FI-AA System in two ways (depending on the functions youneed):

as a 'normal' asset master record

as an asset master record with line item management. The capitalization of the asset under construction is basically the transfer to a completed asset. This

transfer is handled differently in the two instances.

When you capitalize the asset under construction, the system automatically separates the transactionsfrom the previous year from the transactions from the current year:TTY 340 - Acquisitions from previous years transferred from asset under constructionTTY 341 - Acquisitions from previous years transferred to completed assetTTY 345 - Acquisitions from current year transferred from asset under constructionTTY 346 - Acquisitions from current year transferred to completed asset

If you have more extensive capital investment measures, we recommend using the R/3 IM (Investment

Management) System. Using this system, you can represent capital investments simultaneously asassets under construction (for accounting purposes) and internal orders or projects (for controlling



purposes). For more information, see the documentation for the IM (Investment Management)System.



© SAP AG

Line Item Settlement of Asset under Construction

Asset u. Const.Asset u. Const.

InvoiceInvoiceEngineers, Inc.Engineers, Inc.

steel girderssteel girders

excavationexcavation

InvoiceInvoiceConstructo,Constructo, Inc.Inc.

beamsbeams

constructionconstruction

InvoiceInvoice

Electro, Ltd.Electro, Ltd.

copper cablecopper cable

InstallationInstallation

11

22

33

100%100%

70%70%

20%20%

10%10%

10%10%

80%80%

Office buildingOffice building

Heating systemHeating system

LightingLighting


SupplierWithdraw fromstock

Internal activityOrder

ASSETS

EX-PENSE

When performing a line item settlement of an asset under construction to one or more completed

assets, you should proceed as follows:

1. Select all line items which you want to settle in the same proportion to the same receiver.

2. Define the distribution rule for these line items.

3. Post the settlement of line items in the desired manner to the specified receivers.

Please note that this posting procedure settles all line items to which a posting rule is allocated.



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Current-value Depreciation

Choose depreciation areaChoose depreciation area

xx 0101 Book depreciationBook depreciation

xx 0202 Special tax depreciationSpecial tax depreciation

xx 3030 Group USDGroup USD

xx 3131 Group DEMGroup DEM

e.g. transaction type 640e.g. transaction type 640

Max. amount 1000

Value date MDDYYYY

Offset account

In addition to the automatic calculation of depreciation using depreciation keys, you can also plan

manual depreciation (for example unplanned depreciation) for individual assets in the FI-AA system.

When you enter the transaction type, the system recognizes that you want to perform manualdepreciation (for example, current-value depreciation).

In an additional window, you can select the depreciation areas for which you want depreciation to beposted (for example, current-value depreciation alowed for balance sheet depreciation, but not for taxdepreciation).

After you have manually planned depreciation, the system does not yet create a related FI generalledger document. This document is generated by the depreciation posting program.

Verification:

You can verify manually planned depreciation using a special report ( Info system B

Report selection B

Depreciation lists B Manual depreciation).

Similarly, you can post write-ups or post-capitalization by choosing the appropriate transaction typeand the depreciation areas you want to post.



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Summ ary: Asset Transactions

l This chapter explains asset transactions. During the life of anasset there a num ber of changes that affect the value of theasset. The FI-AA System recognizes a wide range of businesstransactions. Transaction types make it possible to handle all ofthe necessary postings appropriately.

l The asset transaction can be entered directly in the departmentin which the transaction originates:

n For acquisitions, for example, the posting can b e ma de inone of the following areas: Financial Accounting (FI) ,Warehouse (goods receipt/invoice verification) (MM),Controlling (order/project settlement) (IM/PS/CO),Maintenance

n For retirements, the posting is usually made in AccountsReceivable, etc..

SAP applications are particularly efficient when the user exploitsthe high degree of integration.

© SAP AG

Chapter Valuation

l Chart of Depreciation

l Asset Classes in the Chart of Depriciation

l Depriciation Areas

l Depriciation

l Depriciation Keys

l Replacement Values

l Interest





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The Chart of Depreciation

Chart ofdepreciation

Depreciationarea 01

Depreciationarea 02

Depreciationarea 03

Depreciationarea 20

Bookdeprec.

Taxdeprec.

Specialreserves

Cost-acc.deprec.

Depreciationarea 30

Groupdeprec.

You will generally need values for fixed assets for various business and legal purposes (for example,

for book depreciation, cost-accounting depreciation and so on). In the R/3 FI-AA system, it istherefore possible to manage values in parallel in as many depreciation areas as you want. The chartof depreciation is therefore best described as a catalog of depreciation areas structured according tovarious business aspects. You can specify the characteristics and thereby the significance of theindividual depreciation areas in each chart of depreciation.

The country-specific charts of depreciation, which are supplied as standard, are for reference purposesonly.

You can only open a new chart of depreciation by using an existing chart of depreciation as areference.



© SAP AG

Chart of depreciation Germany Chart of depreciation USA


Germany


0102031015203031

324151

Book depreciationSpecial tax depreciationSpecial depreciation reserveValuation of net a ssetsBalance sheet for tax purposesCost-accounting depreciationConsolidated balance sheet (local curr.)Consolidated balance sheet (group curr.)

Book depreciation in group currencyInvestment support (reducing APC)Investment support as a reserve


US A


0110111213203031

3340414243

Book depreciationFederal tax ACRS/MAC RSAlternative Minimum TaxAdjusted Current EarningsCorporate Earnings & ProfitsCost depreciationConsolidated balance sheet in local currencyConsolidated balance sheet in reporting curr.

State modified ACR SDifference between Book and MAC RSDifference between MACRS and ALT MINDifference between MACRS and ACEDifference between MACRS and E&P

Comparison of Country-Specific Charts ofDepreciation (Example: Germany and USA)

SAP supplies typical country-specific charts of depreciation as references. They contain various

depreciation areas based on the requirements of each country. You cannot use these charts of depreciation directly. You have to first open an “active” chart of depreciation. You can then copy thedepreciation areas you want to use from the reference chart of depreciation into your own chart of depreciation. You can leave out those you do not require.



© SAP AG

Areas

Depreciationkey

Proposeduseful life

Minimumuseful life

Maximumuseful life

Book dep.Book dep.

10/0010/00

_ _

_ _

DG30DG30

decl-bal.decl-bal.3 X3 X

Tax dep.Tax dep.

10/0010/00

_ _

_ _

SNFGSNFG

invest.invest.supportsupport

GroupGroup

8/008/00

_ _

_ _

LINRLINR

str.-linestr.-line

Book dep.Book dep.

12/0012/00

_ _

LINBLINB

str.-linestr.-line

GroupGroup

8/008/00

_ _

_ _

LINRLINR

str.-linestr.-line

ACRSACRS

. . . .. . . .

_ _

_ _

. . . .. . . .

. . . .. . . .

. . . .. . . .

8/008/00

. . . . . .

Class

Chart ofdepreciation

MachinesMachines

USAUS AGermanyGermany

Asset Classes in the Chart of Depreciation

1

You can define any number of asset classes in Customizing. You use the asset classes to categorize

assets according to the needs of your enterprise. The asset classes are valid across company codes.The catalog of asset classes, therefore, applies uniformly to all company codes. This is true, even if the company codes use different charts of depreciation, and therefore different depreciation areas.

You can assign different charts of depreciation to an asset class, so that all assets in this class will betreated differently in each country.



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Depreciation Area XX in the Asset or Asset Class

Depreciation keyDepreciation key

Useful lifeUseful life

Ord. deprec. startOrd. deprec. start

Changeover yearChangeover year

IndexIndex

Variable dep. am ountVariable dep. am ount

Scrap valueScrap value

What kind of depreciation?What kind of depreciation?

For how long?For how long?

When does the useful life begin?When does the useful life begin?

When do you w ant to change fromWhen do you want to change fromdeclining balance to straight-linedeclining balance to straight-linedepreciation?depreciation? Do you want to calculate annuallyDo you want to calculate annuallyincreasing replacement values?increasing replacement values?

How m uch depreciation should beHow m uch depreciation should be

weighted by the shift factor when youweighted by the shift factor when youuse shifts?use sh ifts?

Do want to end depreciation whenDo want to end depreciation whenthis scrap value is reached?this scrap value is reached?

01

Jan

Calendar

Years

You have to enter depreciation keys in the different depreciation areas. The depreciation key contains

all the control amounts for the calculation of planned annual depreciation. You can enter adepreciation key in the asset master record in each depreciation area.



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Rules for ValuationManagement of values

Revaluation/Indexing

Functions ("real" or "derived" )

Dependent on o ther dep. areas

Control of depreciation posting

Depreciation key/Calculation key

Transaction types

Asset valuesAsset values

AP C

Depreciation

Replacementvalues

01

Book dep.

30

Group USD

31

Group DM

Values

Depreciationterms

Monthly?

Numberrange 02?

. . .,

Rules for valuationRules for valuationin the chart ofin the chart of


1D E1D E

1U S1US

1xx1xx

The depreciation areas are identified in the system by a two-character numeric key. You can specify

depreciation terms specifically for each asset. You make this specification in the asset classes ordirectly in the given asset master record.

You can calculate values in a depreciation area for a specific purpose (for example, for the balancesheet, for cost accounting, for taxes). All of the depreciation terms and values necessary for this canbe managed at the level of the depreciation area. The system allows you to define an almost indefinitenumber of depreciation areas. This feature enables you to handle a large number of different types of valuation in parallel.

The types of values the depreciation area manages are the most important factors in determining itssignificance for accounting.

You can set up depreciation areas that take over their APC as well as their depreciation terms from

another depreciation area.

You can automatically post the asset balance sheet values (APC/ accumulated depreciation) anddepreciation from each depreciation area to the corresponding general ledger accounts. You canchoose direct posting in online, or periodic posting to Financial Accounting.



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Screen Layout in Dep. Area & Maintenance LevelMaintenanceMaintenance

levellevelScreen layoutScreen layout

for areafor area

Dep. area Dep. Use. life01 Book dep. DG30 5

02 . . . SNFG 5

:


Uniform controlUniform controlof valuationof valuation

Chart of dep. ABCD per country's legislation

01 Book dep. DG30 1000

02 . . . SNFG 1000

:

Asset classAsset class

Dep. area Deact. Dep. Use. life Index Layout

You enter the screen layout for the valuation fields of the depreciation areas in the asset class, per

depreciation area.

You make sure that valuation is uniform by means of the maintenance level. There are three options:

Asset class

This maintenance level ensures uniform control of valuation at the level of the asset class. Theentries made in the asset class are passed on to the asset master record, and you cannot overwritethem.

Asset main number

The control of valuation is uniform for the asset master record as whole. A default value from theasset class can be changed in the main number, but all component assets (sub-numbers) are required

to take over the value from the main number, without the option of changing it. Asset sub-number

The control of valuation can be determined on an individual basis. The sub-numbers can have theirown treatment of valuation.



© SAP AG

Ø Ordinarydepreciation

Ø Specialdepreciation

Ø Unplanneddepreciation

Depreciation

Reasons for depreciation:

Years

§§§§

§§

Determine depreciation areasDefine account determinationDefine depreciation keyDefine unit-of-production depreciation

In each depreciation area, you can specify the type of depreciation and the transaction types you want

to manage. The system supports the following direct types of depreciation or transaction types:

Ordinary depreciation

Ordinary depreciation is the planned reduction in asset value due to normal wear and tear.

Special depreciation

Special depreciation represents depreciation that is solely based on tax regulations. This form of depreciation usually allows for depreciating a percentage of the asset value. This percentage maybe staggered within a tax concession period, without taking the actual wear and tear on the assetinto consideration.

Unplanned depreciation

Ordinary depreciation reflects the normal depreciation of the asset due to normal use. Unplanneddepreciation is concerned with unusual circumstances, such as damage to the asset, that lead to apermanent reduction in its value.



© SAP AG

Depreciation Key

Depreciation Depreciationarea key

01 LINR: (straight-line, 1st yr.conv.):

20 LINA(straight-line, pro rata)


Internal Calculation KeyInternal Calculation Key

Ordinary depreciationOrdinary depreciation

Special depreciationSpecial depreciation

InterestInterest

Cut-off value keyCut-off value key

controlscontrols

- depreciation type- depreciation type- class- class- method- method- base value- base value- declining balance deprec.- declining balance deprec.- changeoverchangeover- period control- period control

You can manage different types of depreciation in parallel in one depreciation area.

You specify the automatic calculation of the different types of depreciation using depreciation keysand the internal calculation key.

You define the required depreciation keys per chart of depreciation.

In the depreciation key , you can enter a separate calculation key for ordinary depreciation, special taxdepreciation and for the calculation of interest.

In addition, you can enter a cut-off value key for the calculation of a scrap value, if this is needed.

The internal calculation keys specify the actual method of calculation.

They control the

depreciation type method

base value

percentage rate

period control

changeover

calculation after end of useful life

treatment of shutdowns

validity of calculation key

interest calculation





© SAP AG

Elements of Depreciation Calculation

l D Percentagerate from usefullife

l G Fullpercentage inconcessionperiod

l P Explicitpercentage rate

l M Mean valuefrom severalareas

l S Unit of prod./ Total number

of unitsl . . .

l Acquisitionvalue

l Half ofacquisitionvalue

l Replacementvalue

l Net book value

l . . .

l Pro rata per startof period

l Pro rata to mid-period per start ofperiod

l Pro rata per mid-period

l First yearconvention of ahalf year

l Per start of fiscalyear

l Per mid-year

l Per year-end(= start in nextyear)

l Per mid-quarter

l Ordinarydepreciation

l Special taxdepreciation

l Interest

MethodsMethods BaseBasevaluevalue

PeriodPeriodcontrolcontrol

DepreciationDepreciationtypetype

Decl.-balanceDecl.-balancedepreciationdepreciation

l Multiplicationfactor

l Maximumpercentage rate

l Minimumpercentage rate

ChangeoverChangeover

l Changeovermethod

l Changeover

depreciation keyl Net book value

for initiatingdepreciationchangeover

l Straight-linedepreciation

l Decl.-balance

depreciationl Other

depreciation

l No assignment

ClassClass

Every transaction on an asset master record automatically results in a depreciation amount being

calculated. This amount is calculated according to the depreciation key in the asset master, and isdisplayed in the value fields of the asset. The most important influences on the calculation of depreciation are:

the value date of the document: it controls, in conjunction with with the depreciation key, thedetermination of the period. It is used to set the depreciation start date in the asset.

the depreciation key

the transaction type

The depreciation calculation method is the most important feature of the internal calculation key. It isused to carry out the different types of depreciation calculation in the system. It determines which

other settings of the calculation key are required entries and which are not. The base value is closely related to the selection of the depreciation method. Since many depreciation

methods cannot be used with all base values, the depreciation method often determines the base value.

The period control determines the start and end date for depreciation. You can specify a periodcontrol for each of the four transaction types (acquisitions, subsequent acquisitions/post-capitalization,transfers, retirements). In this way, you can set the start of depreciation at the beginning of the yearfor all acquisitions in a year, and the end of depreciation for retirements either at the first or last day of a period, for example. The system uses the value date of the transaction (acquisition or retirement) asa basis, and then determines the start or end of depreciation by means of the period control.



© SAP AG

ValuesValues

Year Deprec. Net book value1 1000 90002 1000 80003 1000 70004 1000 60005 1000 50006 1000 4000

7 1000 30008 1000 20009 1000 1000

10 1000 0

Example:Example:

Book depreciation valuationBook depreciation valuation

- Declining balance 30% from- Declining balance 30% from

net book value -net book value -

Exam ple: Valuation for Book Depreciation

Depreciation area 01 Book depreciationDepreciation area 01 Boo k depreciation

Depreciation keyDepreciation ke y LINKLINK

Useful lifeUsefu l life 10 years10 years

Ord. dep. startOrd. dep. start 01/01/YYYY01/01/YYYY

In the book depreciation area, the system calculates book depreciation (depreciation allowed by

commercial law), without special depreciation.



© SAP AG

Exam ple: Valuation for Tax Depreciation

Depreciation area 02 Tax depreciationDepreciation area 02 Tax depreciation

Depreciation keyDepreciation key SNFGSNFGUseful lifeUseful life 10 years10 years

Ord. dep. startOrd. dep. start 01/01/YYYY01/01/YYYY

Special dep. startSpecial dep. start 01/01/YYYY01/01/YYYYExample:Example:

Tax depreciation valuationTax depreciation valuation

Special depreciation Special depreciation : 50% of: 50% of

APC;APC; alongside ordinary dep.alongside ordinary dep.

ValuesValues

Year Ord . dep . Spec.dep. Net book val.1 1000 5000 40002 1000 - 30003 1000 - 20004 1000 - 10005 1000 - 06 0 - 07 0 - 08 0 - 09 0 - 0

10 0 - 0

In the tax depreciation area, the system manages special tax depreciation, without creating reserves for

special depreciation.



© SAP AG

Exam ple: Derived Depreciation AreaDepreciation area 03 Special reservesDepreciation area 03 Special reserves

determined determined as the difference between

depreciation areas 01 and 02Example:Example:

Tax v aluationTax va luation

- Creation of special reserves -- Creation of special reserves -

ValuesValues

Book dep.Book dep. Tax dep.Tax dep. Special reservesSpecial reservesYearYear 0101 0202 0303

11 10001000 60006000 -5000-500022 10001000 10001000 0033 10001000 10001000 0044 10001000 10001000 0055 10001000 10001000 0066 10001000 00 +1000+100077 10001000 00 +1000+100088 10001000 00 +1000+100099 10001000 00 +1000+1000

1010 10001000 00 +1000+1000

01

Bookdepreciation

02

Allowedtax dep.

03

Specialreserves

+ =Formula

Special reserves are created in a third, derived depreciation area, in which the difference between tax

depreciation and book depreciation is calculated.

The values of a derived depreciation area are calculated from the values of two or more “real”depreciation areas, using a calculation formula. The values are not stored in the database. They arecalculated internally each time the information is requested.

One possible use for the derived depreciation area is the calculation of special reserves as thedifference between tax depreciation and book depreciation. In this case, you need two “real”depreciation areas.

Both depreciation areas (tax depreciation and book depreciation) have to use identical acquisitionvalues.

The rules for the book value in a derived depreciation area are always checked against the rules in the“real” areas from which it is derived. This check takes place at the time of each posting and eachchange to depreciation.



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Exam ple: Cost-accounting Depreciation AreaDepreciation area 20 Cost accountingDepreciation area 20 Cost accounting

Depreciation keyDepreciation key LINALINAUseful lifeUseful life 10 years10 yearsOrd. dep. start:Ord. dep. start: 01/01/YYYY01/01/YYYY

interest calculation and indexinginterest calculation and indexing

negative net book value allowednegative net book value allowed

Example:Example:

Cost-accounting valuationCost-accounting v aluation

- Straight-line from APC, also- Straight-line from APC, also

below zero, indexing of APCbelow zero, indexing of APC

and calculation of imputedand ca lculation of imputed

interest -interest -

ValuesValues

YearYear Rep.valRep.val Dep.Dep. NBVNB V InterestInterest11 1000010000 10001000 90009000 50050022 1030010300 10301030 82708270 51551533 1060910609 10611061 75187518 53053044 1092710927 10931093 67436743 54654655 1125511255 11261126 59455945 56356366 1159311593 11591159 51245124 58058077 1194111941 11941194 42784278 59759788 1229912299 12301230 34063406 615615

99 1266812668 12671267 25082508 6336331010 1304813048 13051305 15831583 6726721111 1343913439 13441344 630630 672672:: :: :: :: ::

You define whether interest should be calculated for the cost-accounting depreciation area, and

whether depreciation should continue below zero. You make these specifications when you define thedepreciation areas.

Furthermore, you can decide if you want to use index series for indexing of the replacement value.



© SAP AG

Depreciation areaDepreciation area

Replacement Values

20 Cost-acc. dep.

::

Revaluation ofRevaluation of

XX AP CAPC

XX acc. dep.acc. dep.

::

Master dataDepreciation area

:20 Cost-acc. LINW 10 00001

:

11 Replacement valuesReplacement values

AssetsAssets

Index figure by fiscal yearIndex figure by fiscal year

AgeAge

Historical indexingHistorical indexing

Index classIndex class

Index seriesIndex series

Index figuresIndex figures

Asset mas ter recordAsset master record

IndexIndex 00001

ClassClass 11

SimulationSimulation 103.6103.6

IndexIndex 00001

YYYYYYYY 101.1101.1

YYYYYYYY 103.6103.6

If revaluation (indexing) is planned for a depreciation area, you can specify an index series for

calculating the replacement value. You enter the index series in the asset or in the asset class.

The index series must be assigned to an index class. This class contains the essential controlparameters for the index series. In this case, you should assign the class “Replacement value of assets”.

For each fiscal year, you should specify index figures for the index series.



© SAP AG

Calculating the Replacement Value

YEAR - 3 YEAR - 2 YEAR - 1 YEAR0

2000

40006000

8000

10000

12000

14000

16000

18000

20000

"normal"

historic

Replacement values at end of fiscal year

Years

130120

= 18904= 17450

13 010 0

= 19500= 15000

Year

Acquis.year

Year - 2Year - 1Current

year. . .

Index

100110120

130 . . .

Acquisition 10000

Acquisition 5000

Rep. value (curr. yr.)Rep. value (curr. yr.) = Rep. value Index (curr. yr.)Index (prev. yr.)

Index (curr. yr.)Index (curr. yr.)

Index (aquis. yr.)Index (aquis. yr.)Rep. value (curr. yr.) = APCRep. value (curr. yr.) = APC *

*

**

*

You can calculate the current replacement value in two different ways:

calculation based on the replacement value of the previous year (“normal” calculation)

calculation based on a historical replacement value (“historical” calculation)

(When you use historical calculation, then all acquisitions are related to this acquisition year, andare indexed with the index figure of the capitalization year.)



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Cost-accounting Interest

Cost center

Actual Plan

Cost center

Order

VehiclesVehicles

Book dep.

. . .

Cost-acc.

Order

VehiclesVehicles

Actual Plan

Asset

Dep. keyDep. key LINWLINW

Ord. dep.Ord. dep. :: . . .. . .

InterestInterest :: ZAHOZAHO

Imputed interestImputed interest

Interest calculationCalculation key ZAHODep. type : after end of use.lifeDep. method : below book value 0 :Base value : (Half of acquis. value)

. . .Percent :

ZZ _ _

PP _ _

22

10.00010.000

10 %

. . . . .

If you want to have interest calculated for a depreciation area, make the following settings in the

system:

Specify that interest should be managed in the depreciation area.

Specify for depreciation posting that interest should be posted in this company code and thisdepreciation area.

Use a depreciation key to which an internal calculation key is assigned for calculating interest (ordefine your own key).

The system posts interest simultaneously during the periodic depreciation posting run. It posts to theaccounts which are entered in the relevant account determination for each depreciation area.Furthermore, an additional account assignment can be made to the cost center entered in each asset

master record (as is the case with depreciation).



© SAP AG

Summary: Valuationl This chapter describes the methods of valuation in Asset

Accounting. The FI-AA System determines depreciation

and other valuation of assets within the framework ofintegrated asset managem ent.

l For each of your calculation needs, you can use

n special depreciation types (ordinary depreciation,special depreciation, and so on)

n different depreciation terms (depreciation m ethods,useful life, and so on)

n different base values for depreciation calculation(acquisition and production costs, replacment value,and so on)

l You need your own depreciation areas with special

depreciation and valuation parameters for this flexiblevaluation. You can manage each asset with any numberof different base values.

© SAP AG

Chapter Periodic Processing

l Periodic Processing - Overview

l Depreciation Posting

l Fiscal Year Change

l Year-end Closing





© SAP AG

C os t ce nte r O rde r

ACTUAL PLAN

Posting asset values

Investmentsupport

Periodic Processing - OverviewPeriodic Processing - Overview

Index figuresYear Index fig.yyyy 100.000yyyy+1 105.125yyyy+2 109.857

COCO

Revaluation

Depreciationposting run

Primary costplanning

Depreciation area XY: ExampleDepreciation area XY: Exampleàà periodic posting of asset valuesperiodic posting of asset values

Asset balanceAsset balance AccountAccount

10000 10000

31

Dec

Calendar

Fiscal year change

31

Dec

Calendar

Fiscal year change

Year-end closing

Fiscal Year change/Year-end closing

Settings

. . .

PeriodicPeriodicprocessingprocessing

Periodic processing comprises those tasks in Asset Accounting which must be performed at periodic

intervals. Also included are tasks to be performed as part of the special valuation of fixed assets (forexample, calculating replacement values).

Replacement values and insurable values are updated in the system with the help of index series.You need to define the characteristics of the index series in Asset Accounting Customizing. Thespecification of current index figures is a regular Asset Accounting task.

Investment support is a subsidy which a company has received for certain asset investments. Assetswhich are eligible for such a subsidy are marked in the asset master records with an investmentsupport key (for further information, see the System Administration Guide). All specifications forclaiming the investment support are stored in the definition of this key. You can post the claimmanually or in a mass procedure.

At present only the values of one depreciation area can be automatically posted online in FinancialAccounting: Therefore, the changes to asset values (transactions) from other areas with automaticposting have to be posted periodically to the appropriate reconciliation accounts. In the case of derived depreciation areas which do not record acquisition and production costs, the program postsproportional value adjustments due to retirements, transfers, post-capitalization and so on.

If you want to plan primary costs on a cost center basis, you can periodically determine planneddepreciation and interest and pass these on to primary cost planning in the CO system via a report.



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Depreciation Posting Program

Ordinarydepreciation

Specialdepreciation

Periodicrevaluation

I n d e x

I n d e x

manuallyplanneddeprecia-tion

Dep.Dep.--

PPOOSSTTIINNGG PPRROOGGRR

AAMM C ost cen te r O rd er

Cost element

COCO

Individual assets

Accounts

FIFI

Interest10 %. . . . .

FI-AAFI-AA

The calculation and planning of depreciation, interest and revaluation is controlled by keys in the

Asset Accounting system. They can also be entered manually using a special posting transaction (formore information, see current-value depreciation). In both cases, these planned values in AssetAccounting have to be periodically posted to the corresponding expense and asset balance sheetaccounts in the general ledger. This periodic posting takes place using a batch input session. Theposting session also posts the different depreciation types, interest and revaluation, in addition to thewriting-off and allocation of special reserves. The system does not create individual documents, onlysummarized posting documents (per general ledger account).



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Organizational Procedure for Depreciation Posting

C o n s i

s t e n c

y !

Preconditions:Preconditions:

èè Posting settingsPosting settings

èè Document type with ownDocument type with ownexternal number rangeexternal number range

èè Posting prodecurePosting prodecure

èè AccountsAccounts

Monthly?

Numberrange 02?. . .

Posting runPosting run

BDC session Update ofRABUCH assets

Process!!!

Update ofG/L accounts

For each depreciation area and company code, specify

the frequency

the distribution method

the additional account assignment

for posting.

For each company code you must define a document type for automatic depreciation posting only.

This document type requires its own external number range.

You also need to specify the accounts for posting.

To ensure consistency between Asset Accounting and Financial Accounting, you must process thesession created by the posting report.

If you fail to process the session, an error message will appear at the next posting run.



© SAP AG

Settings for Posting

10000 100010000 1000

1000010000 10001000 10001000

10001000 10001000

1000010000 10001000 10001000

Depreciation area 01: Book depreciationàà Automatic online posting of asset valuesAutomatic online posting of asset valuesàà Periodic posting of depreciationPeriodic posting of depreciation

Depreciation area 20: Cost-accounting

àà Periodic posting of depreciationPeriodic posting of depreciation

Depreciation area XY: E xampleàà Periodic posting of asset valuesPeriodic posting of asset values

àà Periodic posting of depreciationPeriodic posting of depreciation

AssetAsset

Fixed assetsFixed assets ExpenseExpense Value adjustmt.Value adjustmt.

Fixed assetsFixed assets ExpenseExpense Value adjustmt.Value adjustmt.

Subsidiaryledger

Generalledger

Back-Back-groundground

Online

Cost-accountingCost-accounting Offset acct. forOffset acct. for ImputedImputeddepreciationdepreciation cost-acc. dep.cost-acc. dep. interestinterest . . .. . .

Back-Back-

groundground

For each depreciation area, specify whether you want to:

automatically post asset values online,

post asset values at periodic intervals,

post depreciation at periodic intervalsto the general ledger

Currently you can only automatically post asset values online in area 01 (book depreciation).



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Dep. Posting for Acquisitions during Year

Example: Dep. posting cycle : m onthly

Acquis. on 5/1/YY : 6000Planned useful life : 5 yearsPeriod control : half year convention

0

5010 0

15 0

20 0

25 0

30 0

35 0

40 0

45 0

50 0

1 2 3 4 5 6 7 8 9 10 11 12

Acquis. on 1/1/YY

smoothing

catch-up method

Depreciation posted

Month

The system supports two methods for distributing forecasted depreciation to the posting periods.

Catch-up method

The catch-up method calculates the posting amount in this posting period, based on the differencebetween the planned and the posted depreciation up to this period.

Smoothing

In contrast to the catch-up method, smoothing distributes the difference between forecasted annualdepreciation and already posted depreciation to the posting periods that are still open.

The difference between the two methods is seen in the treatment of acquisitions or post-capitalizationsthat take place during the fiscal year:

Using the catch-up method, the depreciation on the transactions during the fiscal year (from theperiod in which depreciation starts, per period control, up to the current period) is posted as a lumpsum. The depreciation posting program posts this amount in the posting period, in which the valuedate of the transaction lies.

Using smoothing, this amount is distributed evenly to the periods from the current depreciationperiod up to the end of the fiscal year (regardless of the value date of the transaction).



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Fiscal Year Change/Year-end Closing


Transaction 10000 0APC 10000 10000Ordinary dep. 3000 - 2100-Net book value 7000 4900


Transaction 0 10000APC 0 10000Ordinary dep. 0 3000 -Net book value 0 7000

31

Dec

Calendar

Fiscal Year Change

31

Dec

Calendar

Fiscal Year ChangeYear-end closing

Year-end closing programYear-end closing program

- Check:- Check:Can the year-end closing be carried out?Can the year-end closing be carried out?

- Maintenance of the last closed fiscal year- Maintenance of the last closed fiscal year


Closing reportsClosing reports

- Asset history sheet- Asset history sheet

- Asset list- Asset list- . . .- . . .

Depreciation posting runDepreciation posting run1.1.

2.2.

3.3.

Year-end closing


Fiscal year changeFiscal year change

Fiscal Year Change

The fiscal year change program opens new annual value fields for each asset.

The earliest you can start this program is in the last posting period of the old year.

You have to run the fiscal year change program for your whole company code.

SAP provides you with a check report for year-end closing. It checks

whether the fiscal year change was completed for all assets,

whether depreciation was fully posted,

whether errors exist for any assets.

In addition, if the program finds no errors, it updates the last closed fiscal year for each depreciationarea.



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Year-end Closing

Depreciation postingDepreciation posting

Year-end closingYear-end closingprogramprogram

ArchivingArchiving

OK?OK?

Adjustment postingAdjustment posting

(Bulk) changes(Bulk) changes

Dep. simulationDep. simulation

No

OK?OK? No

OK?OK? No

Yes

Yes

Yes

Depreciation

Bal P&L

Asset history sheetDepreciation lists

Retmt.. . .

Acquis.. . .

Transfer. . .

Closingbalance

Assets

After the depreciation lists and asset history sheet have been checked, depreciation is posted.

Once depreciation has been posted, a balance sheet and profit and loss statement can be created in FI.

If the final result is not satisfactory, you can carry out depreciation simulation or (bulk) changes, ormake adjustment postings.

If you change any depreciation values, you must run depreciation posting again..

The logical year-end closing is completed with the final balance sheet.

The year-end closing program then makes all necessary system checks.

If no errors are found, the program blocks posting in Assets Accounting for the closed fiscal year.

If a closed fiscal year is subsequently released for posting, it can only be blocked again once the year-

end closing program has been re-run.



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Summary: Periodic Processing

l This chapter deals w ith periodic processing:n Depreciation posting:

Along with depreciation calculation, depreciationposting to the appropriate general ledger accounts isone of the c entral tasks of integrated AssetAccounting. In FI-AA, you can post depreciationplanned on periods by m eans of depreciation keys,as w ell as depreciation that is forecasted manually,at any chosen intervals.

n Year-end closing:The year-end closing primarily consists of creatingand checking the asset history sheet and otherreports on asset transactions.

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Chapter Info System

l Report Selection

l Asset Value Display

l Asset Simulation

l Simulation Versions

l Sort Criteria

l Asset History Sheet





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Report Selection

Asset list

Balance sheet explanations

Explanations for P&L

Cost accounting

Depreciation forecast

Special valuationsReconciliation

Preparations for closingDaily total Taxes

History

Individual asset

The Asset Accounting Information system consists of a report tree. The report tree is a freely

definable hierarchical structure. You specify the structure of the report tree in Asset AccountingCustomizing under Information system.

When you double-click on a node of the hierarchy, the system calls up a standard report. SAPprovides a standard report tree (FIAA) for Asset Accounting. You can copy this tree and modify it asneeded:

remove branches of the structure

add branches to the structure

change the report call (call of a user report)

The report tree is found in the application menu for Asset Accounting under Info system. The

standard report tree contains all the standard reports for Asset Accounting. The system alwaysdisplays the report tree that is currently defined in FI-AA Customizing.

You can copy and modify the standard report tree or the report tree of another user, under Edit B User

tree. In this way, you can set up the information system according to the needs of the individual user.



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Depreciation ontransactions

Display of documentsfor the asset

Goodsreceiptdocument

all values

display dep.calculation

dep.recalculation

dep. terms

currentbook values

Asset Value Display

Display valuesDisplay values

one year, one area

one year, several areas

several years, one area

several years, several areas

with simulated change ofwith simulated change of

depreciation termsdepreciation terms

with simulated transactionswith simulated transactions

Simulated fiscalSimulated fiscal

year changeyear change

Asset value display

.

.

.

Postingdocument

2000.-

The asset value display offers extensive possibilities for evaluating individual asset master records.

By entering the sub-number “*”, you can request cumulative evaluations for a main number and thesub-numbers belonging to it.

The function “display depreciation calculation” provides a detailed display of the calculation of depreciation in the system.

You can start reports from within the asset value display transaction via the menu option Environment .

You specify the reports(with different selection versions) that can be started from the respective menuoption in Customizing.



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Depreciation Simulation (Order/Project)

Year 1Year 1 10,00010,000

Year 2Year 2 15,00015,000

Year 3Year 3 35,00035,000

Year 4Year 4 42,00042,000

::

Depreciation SimulationDepreciation Simulation

Dep. simulationDep. simulationwith plannedwith planned

investmentsinvestments

CO orderCO order // CO projectCO projectPlanned costsPlanned costs

Year 1Year 1 100,000100,000Year 2Year 2 50,00050,000

Year 3Year 3 200,000200,000Year 4Year 4 70,00070,000

::

planned start-up date 1/1/year 1planned start-up date 1/1/year 1

Depreciation termsDepreciation terms

AreaArea Dp.keyDp.key Use. lifeUse. life:: ::2020 LINALINA 1010

:: ::

The simulation list provides a forecast of future depreciation.

In the initial screen, you make the following choices (along with others):

Should the forecast also include your planned capital investments for the future, or only thecurrently existing assets?

Do you want to simulate the use of a different depreciation method in the forecast?



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Course of d epreciation forIndividual assets

N e t b o o k v a l u e

Time

Display assetDisplay asset

valuesvalues

Report for allReport for all

assetsassets

Time

A s s e t v a l u e s

U s e . l i f e 5 y r .U s e

. l i f e 4 y r .

Development of asset values

Asset class: Vehicles

Simulation versionSimulation version

- depreciation areas- asset class- depreciation key- useful life- valid from / to

SimulatedSimulatedasset transactionsasset transactions

- acquisitions- retirements- transfers

. . .

SimulatedSimulateddepreciation termsdepreciation terms

- depreciation key

- useful life- index

P+L

Operating profitOperating profit

with spec. dep.

w/out spec. dep.

Asset Simulation

Simulation, in this context, refers to an experimental change to parameters affecting the valuation of

assets. This change can apply to a single asset, the entire asset portfolio (or parts of it), or to a testdepreciation area. This change is carried out by means of a transaction or a standard report. Whenyou simulate the development of asset values, you can change all of the important depreciation terms(depreciation key, useful life, index series). Two types of simulation should be distinguished:

simulation of depreciation for future fiscal years, using a special simulation report and simulationversion

simulation of accumulated depreciation in the past, using a new depreciation area

You can also include planned capital investments (in the form of orders or projects and capitalinvestment programs) in the simulation.



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Simulation Versions

Report dateReport date MMDDYYYYMMDDYYYY

AssetsAssets

Cap. invest. programCap. invest. program

ProjectProject

OrderOrder

Simulation versionSimulation version XY

ABAB . . . .. . . .

XY Str.- line not decl . bal .

AreaArea ClassClass Dep. keyDep. key Dep. keyDep. key . . .. . .

0101 10001000 DG30DG30 LINRLINR . . .. . .

For all assets in class 1000, straight-lineFor all assets in class 1000, straight-line

depreciation is simulated instead of decliningdepreciation is simulated instead of dec lining

balance depreciation.balance depreciation.

Simulation versions allow you to simulate a change in depreciation method for each report.

For each area, asset class and depreciation key, you specify which depreciation key and useful lifeshould be chosen as alternatives for simulation.



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Depreciation Simulation

Do you want simulation into the current fiscal year?Do yo u want simulation into the current fiscal year?

Do you only want simulation for planned capitalDo you only want simulation for planned capital

investments?investments?

Do you want to include transactions from the current year in theDo you want to include transactions from the current year in the

simulation?simulation?

Do you w ant to include planned capitalDo you w ant to include planned capital

investments, that are represented by orders orinvestments, that are represented by orders o r

projects, in the simulation?projects, in the simulation?

Do you want to simulate a change inDo you want to simulate a change in

depreciation terms for the depreciationdepreciation terms for the depreciation

forecast?forecast?

You have the option of including depreciation for your planned capital investments in the forecast. In

order to take advantage of this option, you have to be managing the planned investment amounts asplanned costs on an order or project in CO. By assigning depreciation terms and a planned start-update to the order or project, you make it possible for the planned depreciation to be displayed.



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Sort CriteriaSort Criteria

R e p o r t d e f i n i t i o n

Assets Values

1000900700600

Rankinglist

Individuallist

TotalsreportSort.... ValuesAssets Values

*

Report call-upReport call-up

Field Total

BUKRS Company code GSBER Business area

ER GSO Bal. sheet item KTANSW Bal. sheet acct. ANLKL Class

Total/individualTotal/individualRanking listRanking listSort versionSort version 001

Sort version 001Balance sheet perspective,managem ent perspective,and mo re...

All reports allow you to sort/total data in different ways using freely definable sort criteria.

A sort version consists of a maximum of 5 sort levels which are determined via Data Dictionary fields.You can call up the technical field names of the required fields using F4. The sort levels are found inthe table ANLAV (asset master data). For lists which process exactly one depreciation area (forexample, the depreciation list), you can also use sort levels from table ANLB.

The report can output a total and a statistic for each sort level.

In the column ‘Total’ you can specify the levels on which you want totals to be output.

By selecting the indicator 'Statistics' it is also possible to further break down the total of a level insome lists. You can get a breakdown by depreciation key (for depreciation lists) or transaction type(for transaction lists).

Generally, you can use any sort version with any report.



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APC FY start- Dep. FY start

= Book val. at FY start

+ Acquisition- Dep. on acquis.

Post-capitaliz.

- Retirement+ Dep. on ret.

Down payment

TransferDep. on transfer

Inv. support

= Current APC

Accum. dep.+

Write-up=

Curr. book val.

0 10 20 30 99

. . .

. . .. . .

. . .

Acquisition X

. . .

Retiremen t . . . .Transfer .Post-capitalization .

. . .

H istory sheet Transaction O rdinary Special Unplanned . . .group deprec. deprec. deprec.

Asset History Sheet

The asset history sheet is the most important and most comprehensive year-end report or intermediate

report. You can create it using any sort versions, and with totals at any group level, just like any otherreport. In addition, you can create a compact totals list that does not contain information on theindividual assets.

Basic versions of the asset history sheet:

You can now freely define line and column structure of the asset history sheet. SAP supplies country-specific versions of the asset history sheet. These meet the legal requirements in the given country.There are also additional history sheet versions.

You can define your own history sheet version. You can freely define

the size (maximum of 10 lines by 8 columns),

the headers of the history sheet items, supplying of values to the history sheet items

Enter this history sheet version as a parameter when you request the asset history sheet.



© SAP AG

110 In-house acquis.100 External asset acquis. 10 Acquis. Acquisition120 Goods receipt

15 Down paymt.

40 Post-capitalization

Changes to Asset History Sheet

Transaction type Hist. sheet group Item

11 Acq.- In-house prod. Acq.- In-house prod.

110 In-house acquis.

100 External asset acquis. 10 Acquis. Acquisition120 Goods receipt15 Down payment

40 Post-capitalization

History sheetversion A

History sheetversion B

You specify which values from which asset history sheet group should be entered in each column/line

item. In the standard system, the asset history sheet group is identical to the transaction type group.You can create history sheet groups that are different from the transaction type groups. You needthem only if you want to handle different transaction types in the same transaction type groupdifferently in the asset history sheet.



© SAP AG

Summary: Info Systeml This Chapter discusses how Asset Accounting information is

placed at your disposal:

n Report tree:Standard reports and any reports you have developedyourself can be grouped together in a report tree.

n Asset value display:Using this transaction, you can display planned, as well asalready posted asset values and depreciation for an asset.The information is available in various forms a nd can b esumm arized at various levels.

n Asset sim ulation:When you are also using IM (Investment Managem ent), youcan include investment orders, projects and capitalinvestment programs in the depreciation forecast.

n Asset history sheet:The asset history sheet is often a required appendix to thebalance sheet. This report provides an overview of thecourse of asset values for the individual balance sheet items.

© SAP AG

Chapter Transfer of Old Assets Data

l Options for Data Transfer

l Options in Customizing

l Examples

l Automatic Transfer of Old Assets Data

l Account Control after Productive Start





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Transfer of Old Assets Data

Previous system

o r

FI-AAFI-AA

Automatic transfer

(Direct data import)

Dialog transfer(for small volume of data)

CreateCreate

old assetold asset

As s e t s

Batch input procedure

Data transfer from a previous system is usually the first activity you need to perform in a new

productive system after configuration and asset classification. You can either transfer dataautomatically from an old system using a batch input procedure, or you can manually enter the datausing a transaction for old asset data. Please note that in both cases only the relevant asset master dataand line items in Asset Accounting are updated and not the general ledger accounts in FinancialAccounting. Balance reconciliation with the relevant general ledger accounts must therefore take placeseparately.



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Chapter 7 Transfer of Old Assets Data

l Options for Data Transfer

l Options in Customizing

l Examples

l Automatic Old Data Transfer

l Account Control after Productive Start

You can transfer old assets data from a previous system for any date in the past. If you choose a date

during the fiscal year, you can also enter business transactions (made between the end of the last fiscalyear and the transfer date) during the transfer transaction.

When entering cumulative values, you can also enter the net book value instead of accumulateddepreciation. The system then calculates the accumulated depreciation on the transfer date from thedifference between the acquisition value and the net book value.

When you specify the sequence of the depreciation areas for transfer, the depreciation areas with themost values to be entered manually should appear first on screen. For the book depreciation area andinvestment areas you need to enter values explicitly. For all other areas, values can be transferred frompreceding areas. You can arrange it so that you cannot change values during this procedure.

If you did not manage insurable values in your old system, you can calculate them when you transfer

old assets data.

If you did not manage replacement values in your old system, you can calculate them when youtransfer old assets data, if the depreciation area allows it.

You can use the option "recalculate accumulated depreciation" for testing.

If depreciation was already posted in the old system when old assets data was transferred during thefiscal year, you can enter the last posting period in the depreciation area.



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Transferring Old Data at Fiscal Year End

FI-AA

FI

Asset 1

200010000

Asset 2

400020000

Asset u. cons.

100300

Non-curr. assets 30000

Value adjustments

6000

AuC G/L account 400

Asset 1

200010000

Asset 2

400020000

Asset u. cons. 100

300

SAP SystemSAP System

Previous systemPrevious system

The transfer date is the cut-off point in time for the transfer of data from your previous system. The

date represents the status of posting (balances) effective for the transfer of old data. If the transfer dateis the end of the last closed fiscal year, you transfer only the master data, the APC and theaccumulated depreciation as they stood at the end of the last closed fiscal year. You also have totransfer the balances of the corresponding general ledger accounts at this same level.



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Transferring Old Data During the Fiscal Year

FI

Non-curr.assets

100001000

Value adjustments

2000275

Values from previous yearsValues from previous yearsValues from the cu rrent yearValues from the current year

Values from previous yearsValues from previous yearsValues from the c urrent yearValues from the current year

Asset values on 12/31 of previous yearAsset values on 12/31 of previous yearChanges during the current yearChanges du ring the current year

Value adjustments up to 12/ 31 of previous yearValue adjustments up to 12/ 31 of previous yearChanges du ring the current yearChanges du ring the current year

FI-AA

Asset

2000275

100001000

SAP SystemSAP System

Previous SystemPrevious SystemAsset

2000275100001000

Transactions in the current year50 0

50 0 Transactions in the current year

If the transfer date is after the close of the last fiscal year, the transfer is sub-annual.

You not only need to transfer the general master data and accumulated values as they stand at the startof the fiscal year from the previous system, but also the following values:

Depreciation posted

Transfer depreciation posted in the current fiscal year up to the point of the transfer. In AssetAccounting Customizing, you need to specify the last posted depreciation period in the previoussystem for each depreciation area. You do this in the specifications for old assets data transfer in theasset company code.

You have the option, instead of transferring posted depreciation, of subsequently posting the totaldepreciation for the current fiscal year up until the transfer date. This is done by performing a

posting run for unplanned depreciation. In this case, the FI-AA system posts depreciation that itcalculates for this time period.

Transactions

When transferring old assets data during the fiscal year, you also have to enter transactions whichtook place between the end of the last closed fiscal year and the transfer date.



© SAP AG

Records with errorsRecords w ithout errors

Automatic Transfer of Old Assets DataPrevious system

Interface program

Transfer program RAA LTD01

DIALOG INTERFACE

ANLHANLAANLBANLC

:

Old data in transfer formatBALTD + BALTB

BatchInput

Using an interface program, you convert the old data in your previous system to the format of the

Dictionary tables BALTD (master data) and BALTB (transaction data) and place them in a sequentialfile.

The old assets data transfer program RAALTD01 supplies the data, using background processing, toan old assets data transfer transaction. The records without errors are transferred immediately. Recordswith errors are stored in the form of a batch input session, and have to be processed later.

The documentation for the RAALTD01 program contains detailed instructions for

the structuring of the sequential transfer file by the interface program

test options

avoiding errors and interpreting errors that occur

the procedure in the event of program termination.



© SAP AG

Before FI-AA is introduced

Account Control following Productive Start

Account control in productive FIAccount control in productive FI

After FI-AA is introduced

P r o d u c t i v e

s t ar t

S e t r e c on ci l i a t i on

a c c o un t s

1000 1000

1000 1000

1000

Vendor Asset

Fixed assets (Reconc. acct.)

Vendor Fixed assets (can be posted directly)

Please note the following special considerations if you are already using a productive SAP Financial

Accounting (FI) system:

All balance sheet and accumulated depreciation accounts are up-to-date in a productive SAP FIsystem. You therefore will not need to copy general ledger account balances Up until the transfer date(date which determines the status of old assets data you transfer from the previous system), assets aremanaged in the non-SAP asset accounting system. Prior to transfer you should make asset postings inparallel in SAP-FI and the non-SAP system.

After the transfer date, you can create and post to new assets in the SAP system. However, in order todo this you have to redefine all balance sheet and accumulated depreciation accounts as reconciliationaccounts (FI-AA Customizing: Set reconciliation accounts). These accounts can therefore no longer bedirectly posted to after the transfer date.



© SAP AG

Summary: Transfer of Old Assets Data

l This chapter is concerned with the transfer of old datafrom your previous system:

n Transfer transactionThe old asset mus t be assigned to an asset class.Values (APC and depreciation, or net book value)and possibly transactions (such as, for assets underconstruction) have to be transferred to the SAPsystem. Which v alues and transactions aretransferred depends on the transfer date and onother options you s pecify.

n Automatic transferAutomatic data transfer is possible using the transfer

program RAALTD01.

Overhead Cost ControllingOverhead Cost Controlling





© SAP AG

Overview

Chapter 44 Overhead C ost Controlling

Chapter 45 Master Data in Cost Element andCost Center Accounting

Chapter 46 Transaction-Based Postings

Chapter 47 Periodic Allocations

Chapter 48 Planning in Cost CenterAccounting

Chapter 49 Activity-Based Costing

Chapter 50 Internal Orders: Master Data andStructures

Chapter 51 Internal Orders: Actual Postingsand Commitments

Chapter 52 Period Closing in Overhead CostControlling



© SAP AG

Chapter Introduction to Overhead CostControlling

Overhead cost controlling: Tasks

Overhead cost controlling in the R/3 System

Organizational units in the R/3 System from the COpoint of view

Company code and controlling area:Possible assignments



© SAP AG

Tasks in Overhead Cost Controlling

Reporting Period . . . . . . . 1 to 13 1995 Status . . . 0

Cost Elements / Cost Centers Actual Costs Target Costs Var. (abs.)

** Other Administrative Costs 3,238,900.00 3,238,900.00 -

2210 Electricity 56,000.00 56,000.00 -

* 481000 Imp. Depreciation. RA 56,000.00 56,000.00

*+ Imputed Costs 56,000.00 56,000.00

2110 Receiving Control 283,000.002120 Warehouse Receiving 424,500.002130 Warehouse Shipping 707,499.92 707,499.92 -2310 Admin Building 295,000.00 - 295,000.002320 Warehouse Building 450,000.00 - 450,000.00

2330 Assembly Buildings 670,000.00 - 670,000.00* 511111 Floorspace Planning

2110 Receiving Control 638,579.96 638.579.96 -

Var. abs. %Tgt Act

** Cost Element/Cost Center Actual / Target **

- Cost Element/Cost Center Report Actual / Target: ResultCost Element/Cost Center Report Actual / Target: Result13:32:2007.12.95

Tasks in Overhead Cost Controlling can be divided into

planning

allocation

management

monitoring

of overhead costs.

All overhead costs are assigned to the locations where they occur or to the actions leading to theircreation. Further allocation is made possible by a number of techniques available for correctassignment of costs to causes.

At the end of the period, the plan costs as adjusted by the operating rate (target costs) are comparedwith the corresponding actual costs. The resulting target/actual variances can be analyzed as to theiroriginators and used as a basis for further management measures within Controlling (CO).



© SAP AG

Overhead Cost Controlling in R/3

Cost Elements

Cost Centers

Material Master

Controlling

Area

Profit

Center

Personnel

Material

Cost Objects

Profitability Segments

Available Assets

Externalreference

OrdersProjects

Processes

CO -CO -PAPA

Billing CO -CO -PAPA Revenue Types

FI

MM

HR

Capital AM

CO -CC A

CO -CC A

CO -AB C

CO -OPA

CO -AB C

AA MM

CO -PC

SDImputed

CO -CO -PC APC A

.

.

.

In the SAP R/3 System, Overhead Cost Controlling is divided into:

Cost Element Accounting

Cost Center Accounting

Internal Orders and Projects

Activity-Based Costing



© SAP AG

Organizational Units in the R/3 System from the COStandpoint

Financial

AccountingCompanyCode

- Organizationalunit in externalaccounting

BusinessArea

- Balanceableunit (forinternalbalances)


CostCost

CenterCenterControllingControlling

AreaArea

- Organizationalunit in internalaccounting

- O rganizationalunit inProfitabilityAnalysis

- Organizationalunit inCost CenterAccounting

Client

- Application-wide unit(technicalsubunit)

Logistics

Plant

ProfitabilityProfitability

SegmentSegment

- Organizationalunit inProfit CenterAccounting

ProfitProfit

CenterCenter

- O rganizationalunit in MaterialsManagementand the PPC

The organization is defined in Financial Accounting with the aid of the company code and the

business area, and in Controlling with the controlling area, profitability segment, cost center, andprofit center.

The controlling area structures an organization from the Controlling standpoint. The company code isthe balancing unit in Financial Accounting. This can be identical to a controlling area but need not be.

The profitability segment is an organizational unit used for a standard segmentation of the salesmarket.

Alongside these organizational units, the unit “plant” may be of use for displaying a factory or branchoffice. The plant is used in Materials Management, Logistics, and Production Planning and Control,and is assigned through a valuation level of a company code, and thereby to a controlling area as well.



© SAP AG

Assignment of Com pany Code and C ontrolling Area

CompanyCode

CompanyCode ..

CompanyCode 1

CompanyCode X


AreaAreaControllingControlling

AreaArea

Company code and controlling area can be combined with each other in different ways. These

combinations illustrate different organizational structures.

If multiple company codes are assigned to a controlling area, one speaks of cross-company-code costaccounting. Allocations can be carried out in CO that refer to more than one company code.



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Combination of Company Code and ControllingArea

Business Area 0001Business Area 0001



Company Code 1 Company Code 2

ControllingControllingArea 1000Area 1000




Business Area 0001Business Area 0001Business Area 0002Business Area 0002


FI

CO

Reconciliation LedgerReconciliation Ledger

If business areas are used in the company codes, they are also included in Controlling.

If multiple company codes or business areas can be assigned to one controlling area, a need forreconciliation between Financial Accounting and Controlling can ensue during cross-company-code orcross-business-area allocations within Controlling. The reconciliation ledger is available for thecreation of reconcilation postings to Financial Accounting.



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Summary: Overhead Cost Controlling

The tasks w ithin overhead cos t controlling can besubdivided into planning, allocation, control andmonitoring of overhead costs.

The comp any code cons titutes an accounting unit, thecontrolling area structures an enterprise from theControlling point of view.

One or several company codes can be assigned to acontrolling area.

If business areas are used, these are also managed withinCost Accounting.

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Chapter Master Data in Cost Element and CostCenter Accounting

Master data and transaction data

Master da ta: Cost elements, cost centers, activitytypes, statistical key figures

Master data groups

Chart of accounts and cost elements

Automatic creation of cost elements

Standard h ierarchy

Cost center types





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Organizational Units in Cost Element and CostCenter Accounting

Cost elements

Cost centers

Activity types

Statisticalkey figures

Line items

Totals records

Master Data

Transaction Data

EVALUATI

O

N

In Overhead Cost Controlling one differentiates between master data and transaction data.

Cost elements: Which costs have occurred?

Primary: Costs originating outside the company

Secondary: Costs originating from the company’s internal activities

Cost centers: Responsibility areas in the company that create costs and can influence them.

Activity types: Tracing factors or quantity units used to allocate costs of internal activities to their trueoriginators.

Statistical key figures: Vital statistics of a cost center or cost center/activity type. They can serve astracing factors for distribution and assessment, among others, as well as for key figure combinations.



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Master Data Groups

Cost ElementsCost Elements Cost CentersCost Centers Activity TypesActivity Types Stat. Key FiguresStat. Key Figures

PersonnelPersonnel

WagesWages SalariesSalaries

Motor PoolMotor Pool

F1F1 F2F2 F3F3

ProductionProductionHoursHours

PHR1PHR1 PHR2PHR2

EmployeesEmployees

TempsTempsTenuredTenured

.

.

....

.

.

....

.

.

.

Master data can be combined into groups. As many groups as necessary can be created. These groups

are used when several of the affected master data records are to be processed in a transaction, such asduring planning or in the information system (overhead allocation sheet row = cost element group).

A special group exists for cost centers, the standard hierarchy. All controlling area cost centers mustbe assigned to the standard hierarchy. Alongside the standard hierarchy, group maintenance can beused to create as many alternative cost center hierarchies as necessary.



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Time-Based Creation of Master Data

Examination Period: Cost Center Manager

01.01. . . . - 06.30. . . . Hoffer

07.01. . . . - 12.31. . . . Kung

Cost Center 4110

Valid from 01 Jan . . . to 31 Dec . . .

Master data in Cost Center Accounting is always stored as time-based. The exceptions here are the

statistical key figures.

Time-based storage means that, for instance, you can create a cost center for several fiscal years.

If you want to extend the validity period of an existing master data record, use master datamaintenance to create a master data record for the affected extension period. You can use the existingmaster data record as a reference and thereby avoid having to repeat filling out the master data fields.



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The Chart of Accounts

0 1 2 3 7 8 9Finance:Currentassetsandshort-termcapital

4Non-opera-tingcosts,revenues

Materialinventory

Primarycostele-ments


Imputedcosts

Distrib.

5 6Secon-darycostele-ments

Assess-ment

Inventoryof incom-pleteandcompleteproducts

Revenues/ inventorychanges/ activeinternalactivity


ClosingSecon-darycostele-ments

Activityalloca-tion

Ordersettle-ment

Financial AccountingFinancial Accounting Cost AccountingCost Accounting Financial AccountingFinancial Accounting

Cost AccountingCost AccountingOverhead Cost

ControllingProfitability

Analysis

Example: German Joint Standard Accounting System

The chart of accounts records all accounts from Financial Accounting and all cost elements in

Controlling.

From the cost controlling viewpoint, a circular system exists because the expense and revenueaccounts in Financial Accounting correspond to the primary cost elements and revenue elements andthe postings are passed on circularly in realtime to cost controlling.



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Primary Cost Element

Primary cost elementImputed cost element

Secondary Cost Element

Allocation cos t elementAssessment cost

elementOverhead surchargeOrder settlement cost

element

Revenue Element

Revenue element

Sales deduction

Account

General Ledger Sub-LedgerAccounts Accounts

Incom e Account B al. S heet Acct. M at. Stock Acct.

Expense Account Fxd Asset Acct.

Indirectlyp os te d accoun t, C us tom er A cct.such as Recon-ciliation Acct. Vendor

AccountVendor PayablesAccount Vendor 11111000.-

1000.-Revenue Account

Directlyposted account, A sset M gm t.such as Bank AccountAccount

The Cost Element

The expense accounts in Financial Accounting (FI) are recorded as primary cost elements in

Controlling (CO). In order to do so, the primary cost elements must first be created in FI as generalledger (G/L) accounts before they can be created in CO.

Primary cost elements always require the account posting of a cost-carrying object, such as a costcenter.

Secondary cost elements are used exclusively in CO. They do not use corresponding G/L accounts inFI and are defined only in CO.

If revenues are to be analyzed in cost controlling, they are recorded as revenue elements in CO, analogto the primary cost elements. Revenues in Cost Center Accounting can be treated statistically only.

Each cost element is assigned a cost element category in the master data record, determining for which

transactions a cost element may be used for. For example, category 3 (imputed cost element/ surcharge) is used for account assignment of imputed costs in the surcharge accounting framework. Anadditional primary cost posting (say, from FI) can also be made through this primary cost elementcategory.



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Automatic Creation of Cost Elements

Default Setting

Acct. From Acct. To Cat. Short Description

400000 415000 01 Primary CElem...510000 42 Assessment CElem

Cost elements can be created automatically. With default settings you can enter cost element and cost

element category.

Primary cost elements are created only if the corresponding G/L accounts exist in the chart of accounts. The cost element name is taken from the G/L account master data record in FI and can bechanged in CO.

Secondary cost elements must possess an explicit entry. The name is taken from the cost elementcategory.

The cost elements are created with the aid of a batch input session.



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The Cost CenterS01000S01000

Acme IncAcme Inc

S01100S01100

Board ofManagers

1100

Board ofManagers

S02100

StorageStorage

S02200

EnergyEnergy

S02300

BuildingsBuildings

2110IncomingInspection

2210Strom

1100AdminBuilding

2120

Receiving

2220

Water

1100

WarehouseBuildings

2130Shipment

2230Ga s

1100ProductionBuildings

S03000S03000

S04000S04000

S02400

Motor PoolMotor Pool

S02000

LogisticsLogistics

Each cost center master data record indicates its location in a higher hierarchy area.

The hierarchy area is a collection of several cost centers.

Multiple areas themselves can be collected into higher hierarchy areas, ultimately creating a hierarchyof cost centers (at the lowest level) and areas (at higher levels).

Cost Center Accounting (CO-CCA) supports parallel administration of as many hierarchy areas asrequired.

A selected hierarchy is the standard hierarchy, already defined during the creation of the controllingarea. All cost centers created must be assigned to an area in this hierarchy. This ensures that all costcenters in the controlling area are collected together in the standard hierarchy.



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Cost Center Types

CCtr Type CCtr Type Production Administration Warehouse

11001100

1200

x

x

1300.

.

Cost Center Cost Center

x

Cost center types offer the option of assigning similar cost centers a standard characteristic. For

example, you have the option of allowing particular activity types only for particular cost centers. Thisis useful for, say, preventing production activities from being posted mistakenly on administrative costcenters. The cost center type can also be used for imputed cost calculation where, for example, itdecides the amount of the imputed cost percentages.

Special indicators can be stored for each cost center type which then serve as defaults when thecorresponding cost centers are created. These include lock indicators for primary or secondarypostings, revenue postings, etc.



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Activity Types

S04100 S04200ServicesServices ProductionProduction

Cost Center Repair CCtr ProductionMachinists hours Prod. I hours

CCtr ProductionProd. II hours

S01000S01000

ManagersManagers S04000S04000

ProductionProduction

Activity types serve as measurements for cost creation. They are used to carry out internal activity

allocation.

Internal activity allocation is carried out via secondary cost elements, stored in the master data recordof the activity types as default values.

By entering up to eight cost center types (or * for all types) in the activity type master record, you candelimit the use of the activity type to particular cost centers.

The activity type category determines whether and how an activity type is entered and allocated. Forexample, some activities can be allocated directly whereas others are allocated indirectly(automatically).



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Statistical Key Figures

StatisticalStatistical

Key Fig.Key Fig.

010203...101112

50004520...3000..

100...

Total 1-12 83.3 23595

MonthsMonths

100100100

Employees (Fixed Value)Employees (Fixed Value) Long-Distance Calls (Total Value)Long-Distance Calls (Total Value)

Statistical key figures illustrate activities and key figures of a cost center or a cost center/activity type.

They can be posted to cost centers and orders in plan and actual.

Statistical key figures can be used as the reference basis for periodic transactions, such as distributionor assessment, for creation of key figures for cost centers and orders.

Two types of key figures are defined:

Fixed value: The value is updated starting from the period entered for all following periods of thesame fiscal year (such as “Employees”).

Totals value: The value is not transferred to the following period but is to be entered anew in eachfollowing period (such as “Long-Distance Calls”).

Statistical key figures can be taken from the Logistics Information System (LIS).



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Summary: Master Data (1)

In cost element and cost center accounting, the costelement, cost center, activity type and statistical keyfigure master data are m anaged.

Master data can be grouped together.

Primary cost elements must exist as G/L accounts inFinancial Accounting before they can be defined as costelements for controlling purposes. Primary cost elementscan be generated automatically from existing G/Laccounts.

The cost element type assigned to each cost elementdetermines for which activities a cost elem ent can beused.



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Summary: Master Data (2)

The standard hierarchy groups all cost centers of acontrolling area. Every cost center master record refers toa node of the standard hierarchy.

For every cost center a cost center type can be specifiedin the cost center master record.

Activity types describe the output of a cost center and areused as a basis for measuring costs by cause.

The activity type determines how an activity type can berecorded or settled.

Statististical key figures can be posted to cost centers.They can be taken over from LIS.

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Chapter Periodic Allocations

Imputed cost calculation

Periodic reposting

Distribution

Assessment

Indirect activity allocation

Valuation with actual activity prices

Actual cost splitting

Activity price calculation with cost component layout

Transfer of statistical key figures from the LIS





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Periodic Allocations in Overview

Imputed cost calculation Periodic reposting

Distribution

Assessment

Indirect activity allocation

Actual activity price calculation

Transfer of statistical key figures

In the periodic allocation framework, a variety of different methods and functions are available which

will be examined closer in the following unit.



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Imputed Costs

Imputed CostsImputed Costs

Opportunity Costs:Opportunity Costs:

No equivalent inNo equivalent in


Outlay Costs:Outlay Costs:

Different equivalent inDifferent equivalent in


Examples:- Imp. manage-

ment bonus- Imp. rent- Imp. interest

Examples:- Imp. deprecia-

tion- Imp. interest- Imp. risks

Examples:- Imp. holiday

bonus- Imp. insurance- Imp. deduction

Examples:- Imp. interest

- Imp. material

OtherOther

QuantityQuantityUnitsUnits

OtherOtherPricePrice

UnitsUnits

Other Sub-Other Sub-Yearly Settle-Yearly Settle-

ment Periodsment Periods

Organizational expenses often are allocated differently in Financial Accounting (FI) than in Controlling

(CO).

In order to avoid cost fluctuations within Cost Center Accounting, irregularly-occuring expenses shouldbe allocated appropriate to time and origin to the months in question. This even distribution of anirregular expense is termed time-based imputed cost calculation.

In the SAP R/3 System, imputed costs can be taken into account in cost controlling for cost centers(cost centers/activity types). Along with time-based imputed cost calculation, other imputed costs suchas opportunity costs can be included in cost controlling.



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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

12,000 12,000 12,000 12,000 .... .... .... .... .... .... .... ....1200 1200 1200 1200 .... .... .... .... .... .... ....

∑∑∑∑

14,400

Wage CostsImputedvacationbonus(10% ofwage costs)

Imputed Cost Object

Period Imputed cost object andeffective actual costs

- 1200- 1200- 1200- 1200

- 1200- 1200 + 15,000.-

- 1200

+ 600

01020304

0506. . .12

Balance:

Rules for Periodic Imputed Cost Calculation

Vacationbonus paid:15,000

Imputed Costs: Cost Element Percentage Method

With the aid of the cost element percentage method, imputed costs can be determined on the basis of a

percentage surcharge on a base cost element.

The advantage of this method when compared with imputed cost calculation using continuous postingto FI is that imputed costs are determined on the basis of the costs actually posted.

This method is useful, for example, in imputed cost calculation of non-wage costs such as holidaybonuses.

In the imputed cost calculation framework, the amounts of the imputed costs are debited to the costcenters. Simultaneously, an imputed cost object defined by you (cost center or internal order) iscredited. The effective actual costs are also posted on the imputed cost object in order that a possiblebalance between expenses from FI and imputed costs from CO can be calculated, analyzed, andallocated further.

The cost element percentage method of imputed cost calculation takes place using its own cost elementcategory (3 = Imputed cost element/surcharge). This means that the cost center debits in addition to thecredit object credits are posted under this cost element.



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Defining the Cost Element Percentage Method

Costing Sheet

Rows Basis Surcharge Name From To Credit

10 i-B1 Wages20 i-B2 Salaries30 iZ1 Imp. vacation pay 10 20 E14050

.

.

...

.

...

.

...



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Costing Sheet

Row Basis Surcharge Name From To Credit


.

.

...

.

...

.

...

CalculationBase420000 Prod. Wages421000 Service Wages



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Costing Sheet



.

.

...

.

...

.

...


SurchargeRatesPlan 10%Actual 10%



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Costing Sheet



.

.

...

.

...

.

...


SurchargeRatesPlan 10%Actual 10%

Imputed CostObjectCost element: 434000 Imp. vac. payOrder: "Implied Vacation Pay"

The cost element percentage method requires a surcharge layout. The following rules for imputed cost

calculation must be stored there:

For which cost element(s) should surcharges be levied?

Under which cost element should the surcharge be posted?

How high should the surcharge percentage be?

Which imputed cost object whould be credited?

The surcharge layout connects all parts of the cost element percentage method. All the necessary datacan be maintained in the layout.

By using dependencies you have the option of determining the conditions under which a surcharge iscalculated for a cost center. For example, you can post different surcharges to different cost centersdepending on the cost center type. The dependency is assigned to the surcharge key. You can createuser-defined dependencies to join the standard SAP R/3 System dependencies.



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Imputed Costs: Target=Actual Method

Plan Cost Center 4310Cost Center 4310

Activity type PHR 100 hrsCost / activity 481000dependent

Var. Fxd500.- 500.-

Cost element category 04



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Var. Fxd500.- 500.-


Act. Activity type PHR 90 hrs (ORate = 90% )Target Actual

481000 950.-



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Var. Fxd500.- 500.-


Act. Activity type PHR 90 hrs (ORate = 90% )Target Actual

481000 950.-

After Imputed Cost CalculationAfter Imputed Cos t Calculation

Cost Center 4310Cost Center 4310

Plan Target Actual481000 500.- 500.- 950.- 950.-

The target=actual method is used for imputed cost calculation of activity-dependent costs. Activity-

dependent primary costs are planned using an imputed cost element. After actual costs, target costs arecalculated automatically by the SAP R/3 System on the basis of the operating rate. These target costsare set in the actual value fields in the imputed cost calculation framework.

If the imputed amount is activity-independent, you can use the plan=actual method, where the completeplan costs are set in the actual value fields.

As in the cost element percentage method, an imputed cost object (cost center or order) collects thecredits. In customizing, only the credit object and the validity period of the affected cost elements needto be defined.

The target=actual method uses its own cost element category as well (4 = Imputed costelement/target=actual). This means that the debited cost centers as well as the credit objects are posted

under this cost element.



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Periodic Reposting

Allocation RuleStatistical key figures

(telephone meter units)

Meter Units Meter Units Meter Units2000 2000 1000

Administration 1Administration 1 Administration 2Administration 2 Administration 3Administration 3

473100 +6000.- 473100 +6000.- 473100 +3000.-

Communications473100 +15,000.-

473100 - 15,000.-

Telephone

January

Periodic reposting is used purely as a posting aid.

Primary postings (such as telephone costs) are collected on an allocation cost center and allocatedaccordingly at period closing according to an user-defined key.

Only primary costs can be reposted. The original cost element remains intact.

Line items are recorded for both the sender and receiver sides in order to document the allocationsexactly.

Periodic reposting can be carried out as often as desired.



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Distribution

Electricity

January

Electricity Cost Center

416100 +23,000.-416100 - 23,000.-

Distribution Rule

Fixed percentages

30% 20% 50%

Production 1Production 1 Production 2Production 2 Production 3Production 3

416100 +6900.- 416100 +4600.- 416100 +11,500.-

Distribution is intended for primary cost appropriate allocation from cost centers where, in comparison

with periodic reposting, only cost centers may serve as senders.

Primary postings (such as energy costs) are collected on an allocation cost center and allocated atperiod’s end according to user-defined keys.

Only primary costs can be distributed. The original cost element remains intact.

In comparison to periodic reposting, distribution updates the partner in the totals record so that it maybe identified on the totals record level in the information system.

The sender-receiver information (sender cost center) is updated in the receiver-side line items.

Distribution can be repeated as often as desired.



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Assessment

Allocation RuleStatistical key figure

(employees)

Employees Employees Employees

30 10 50

ProductionProduction AdministrationAdministration SalesSales

520000 +3000.- 520000 +1000.- 520000 +5000.-

420000 WagesJanuary

416000 Electricity

613000 Ma intenance

Cafeteria

420000 6000.-

416000 1000.-613000 2000.-∑∑∑∑ 9000.-520000 -9000.-Assessm ent (Cafeteria)

Assessment is designed for the allocation of primary and secondary costs in Cost Center Accounting.

Primary and secondary postings are allocated at period closing according to user-defined keys.

In the assessment framework, the original cost elements are converted to assessment cost elements(category 42, secondary cost element). The relationship between original and assessment cost elementcan be freely determined per segment.

Line items are recorded for the sender and receiver sides in order to document the allocations in detail.

As in distribution, the partner is updated in the totals record during assessment.

Assessment can be repeated as often as required.



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Applying Periodic Reposting, Distribution, andAssessment

Allocation Method Allocation O f Allocation WithAllocation With Information inInformation in

Line ItemsLine Items ApplicationApplication

Periodicreposting

Primarycosts

OriginalOriginal

costcost

elementelement

Posting aid forPosting aid for

collecting andcollecting and

reposting primaryreposting primary

costscosts

Distribution Primarycosts

OriginalOriginal

costcost

elementelement

Sender andSender and

receiverreceiverobjectobject

Allocation ofAllocation o f

primary costsprimary costs

Assessment Primary andsecondary

costs

AssessmentAssessment

cost elementcost element(= secondary)(= secondary)

Sender andSender and

receiverreceiverobjectobject

Allocation ofAllocation o f

primary andprimary andsecondary costssecondary costs

Sender andSender andreceiverreceiver

objectobject

The following information must be stored in the R/3 System for periodic reposting, distribution, and

assessment:

Who wants to settle/allocate the costs?

To whom are the costs settled/allocated?

Which costs are to be allocated?

From a system performance standpoint, periodic reposting is preferred to distribution because nosender-receiver relationships are recorded on the totals record level during periodic reposting.Assessment achieves the best results because a conversion freely defined by the user occurs betweendebit and credit cost elements.



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Defining Periodic Reposting, Distribution, andAssessment

Cost Center "Adm in Building"Cost Center "Adm in Building" Cost Center "Adm inistration"Cost Center "Administration"

AllocationAllocation 100%100% actual costsactual costs Tracing factor:Tracing factor: mm 22 floor spacefloor space

Cost Center "Energy"Cost Center "Energy" Cost Center "Administration"Cost Center "Administration"

AllocationAllocation 30%30% actual costsactual costs Tracing factor:Tracing factor: mm 22 heated spaceheated space

Cost Center "Energy"Cost Center "Energy" Cost Center "Production"Cost Center "Production"

AllocationAllocation 70%70% actual costsactual costs Tracing factor:Tracing factor: Gas consumptionGas consumptionper meter readingper meter reading

Standard / same value Same tracing factor determinationdetermination for senders for receivers

S e g m e n t

S e g m e n t

1 1

S e g m e n t

S e g m e n t

2 2

S e g m e n t

S e g m e n t

3 3

Sender Receiver

The rules for periodic reposting, distribution, and assessment are combined hierarchically in cycles and

segments.

A segment takes sender cost centers, in which values to be allocated are determined according to thesame rules, and combines them with receiver objects, in which tracing factors are determined accordingto the same rules.

Multiple segments are combined in a cycle. As a rule you can define a cycle for the entire controllingarea. From system performance and allocation standpoints, however, you also can create several cycleswhich are proecessed one after the other. Cycles are created separately for plan and actual allocations.



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Combinable Sender and Receiver Rules

Receiver FixedAmounts

FixedFixed

PercentagesPercentagesFixedFixed

PortionsPortions

VariableVariablePortionsPortions

PostedAmounts

FixedAmounts

Fixed

Activity Prices

Sender

X X X

X

X X

X X X X

X X

X X

X X

X X

X X

Com binable sender and receiver rules for

periodic reposting, distribution, and assessment

According to the above rules, you can combine sender and receiver relationships in the frameworks of

periodic reposting, distribution, and assessment.

Sender values can be posted amounts, fixed amounts, or fixed activity prices. You have the option of defining a percentage portions of the amount to be allocated that results in the corresponding residualamount remains with the sender cost center.

On the receiver side, fixed amounts, fixed percentages, fixed portions, and variable portions can bestored as rules. The variable portions include, among others, costs, consumption, statistical key figures,and activities.

Another of the many options available is that of allocating plan costs in actual.



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Executing Periodic Reposting, Distribution, andAssessment

...

Cycle

SegmentSegment

SegmentSegment

SegmentSegment

CycleSegmentSegment

SegmentSegment

SegmentSegment

...

When executing allocations, you can choose how processing should be carried out. The following

options are available:

Test run

Detailed list

Background processing

After processing finishes a log can be examined in order to control and check the processing run. Anyerrors that occurred can be analyzed by means of the SAP R/3 System messages.



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Indirect Activity Allocation

InspectionInspection

Goods receiptGoods receipt


Finished goodsFinished goods

Activities can be entered on thesender object

Cost Center"Quality Control"

Tester hoursTester hours



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Indirect Activity Allocation





Activities can be entered on thesender object


Goods receiptGoods receiptInspectionInspection


Activities cannot be entered onthe sender, or only w ith great effort





Indirect activity allocation is a tool for automatic allocation of activities in actual and plan.

In contrast to direct activity allocation, you can allocate activities by means of user-defined keys.

Two different processing methods are available, depending on the category of the activity types to beallocated.

For senders whose activities are not measurable, or measurable only after a great deal of effort, theactivity quantities are determined indirectly from the receiver activities.

Indirect activity allocation, like the other periodic allocation methods, uses segments and cycles inorder to define sender and receiver relationships. The methods are determined per segment and canappear together in a cycle.



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Actual Activity Can Be Entered On the Sender

Allocation Rule

Statistical key figures

(number of testing items)

8000 Items 6000 Items 6000 Items

Production 1Production 1 Production 2Production 2 Production 3Production 3

400 tester hours 300 tester hours 300 tester hours


Tester hours 1000Tester hours 1000 h

Some activity types allow total quantities produced to be determined per sender. With indirect activity

allocation, these posted activity quantities are distributed from the senders to their receivers accordingto their tracing factors as defined in the segment.

For activities which can be entered for the sender object, use activity type category 3 (manual entry,automatic allocation).

The corresponding segment must use the sender rule “Posted quantities”. The receiver rule may use anyoption except “Fixed quantities”.



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Actual Activity Not Enterable on the Sender

Cost Center

"Quality Control"Tester hours: 10000 hrTester hours: 10000 hr

Allocation Rule

Statistical Key Figures

(number of test items)

4000 Items 6000 Items

Production 1Production 1 Production 2Production 2

4000 tester hours 6000 tes ter h ours

For activity types for which produced quantities cannot be determined, or determined only after a great

deal of effort, activity determination is necessary -

either via receiver tracing factors (with weighting factors which can be defined per sender)

or given explicitly in the segment definition (as a fixed sender or receiver quantity)

This form of indirect activity allocation uses activity type category 2 (indirect entry, automaticallocation).

The corresponding segment must use either the sender rule “Indirectly determined quantities” with anyreceiver rule, or the identical sender and receiver rules “Fixed quantities”. If sender rule “Indirectlydetermined quantities” is used, the sender-specific weighting factors named above are determined byusing the function “Sender values” (default value = 1).



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Valuation at Actual Activity Price

Actual CostAccounting

ActualActual

activityactivitypriceprice

Quantity flow viaactivity allocation

Actual activity pricecalculation

Revaluate qty. flowwith activity prices

Actual cost allocation does not require cost and activity price planning. The quantity flow is posted

initially without a valuation. The valuation with actual costs takes place at period-end closing throughactual activity price calculation.

If you use a preliminary valuation with plan activity prices, you have the option in actual activity pricecalculation of revaluating the difference between the previous plan activity price valuation and theactual activity price valuation. This can take place either in separate data records or through changingthe existing allocation postings.

Activity price calculation may be carried out with any of the following:

periodic activity price

average activity price

cumulated activity price



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Actual Activity Price Calculation

Cost Center BCost Center B

Activity Type MHRActivity 100 hr

Primary CostsWages 5000.-Salaries 5000.-Energy 1000.-

Secondary CostsActivity from CCtr A

50 hr

Cost Center ACost Center A

Activity Type REPActivity 1000 hr

Primary CostsWages 10,000.-Salaries 5000.-Energy 1000.-

Secondary CostsActivity from C Ctr B

10 hr

10hr10hr

50hr50hr

The example above illustrates the activity price calculation procedure.

The activity price for Cost Center A is determined with the formula:

(16000 + (10 X Activity price of Cost Center B/Activity Type MHR) ) / 1000 hours

The activity price for Cost Center B is determined with the formula:

(11000 + (50 X Activity price of Cost Center A/Activity Type REP) ) / 1000 hours

The exact activity type price is calculated iteratively.



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Actual Cost Splitting

Dividing actual costs toactivities

Precondition for actualactivity price calculationand variance analysis

Plan and actual madecomparable at theactivity level

Cost CenterProduction

Produc-tionhours

Machinehours

Actual costs in Cost Center Accounting can be posted only to cost centers, not to activity types. In

order to carry out actual activity price calculation, however, the actual costs must be distributed to theactivity types. Actual cost splitting is required for the comparison of actual costs with target costs andcomparison of variances in the activity types.

Actual costs are split in two steps -

Step 1: Actual cost center costs are broken down according to the target costs onto the activity types.This step is made per cost element. If no target costs exist for a cost element, the splitting takes placeaccording to the target costs of the assigned cost element group. All target costs of cost elements in thisgroup are drawn upon as a basis for splitting. If no target costs exist in the entire group, the costs aresplit in the second step.

Step 2: Remaining actual cost center costs are broken down according to definable splitting rules onto

the activity types. If no rules are defined, the cost center costs are divided according to equivalencenumbers onto the individual activity types.



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Activity Prices with Cost Component Layout

Switch layout

Personnel

Primary Energy

ProductionProductionSecondary

Material

Personnel

Sec. Energy

Sec. Material

Sec. Mat.

MaterialMaterial

EnergyEnergy

With activity price calculation using the cost component layout you have the option of making the

structure of an activity type price transparent. This is useful, for example, for determining the portion of personnel costs and secondary material costs included in the activity type price.

You have the option of deactivating the cost component layout for particular cost centers/activity types.This is done by using the switch layout.



© SAP AG

Transferring Statistical Key F igures from theLogistics Information System

4000 Purchase Orders4000 Purchase Orders


ProcurementProcurement

Stat. key figure:Stat. key figure:

Number ofNumber of

purchase orderspurchase orders

S hip.N o. N o. of Ord ers

0005

0100

1500

2500

Ship.No.: 1 - 1000Ship.No.: 1 - 1000

Material No.: *Material No.: *

Procur. Org.: *Procur. Org.: *

..... .

You can transfer key figures recognized by the LIS to cost accounting as statistical key figures, for use

as, for example, a reference basis for allocations.

The preconditions are:

You have activated the LIS

You have created statistical key figures and activated the LIS interface in the corresponding masterdata records

Statistical key figures can be transferred as activity-independent or activity-dependent to Cost CenterAccounting.



© SAP AG

Summary

The SAP R/3 System offers a variety of techniques forcarrying out periodic allocations:- Imputed cost calculation- Periodic reposting- Distribution- Assessment- Indirect activity allocation

By using valuation with actual activity prices, you canrevalue the quantity flow from activity allocations at theend of the relevant period.

Actual cos t splitting is the precondition for actual activityprice calculation. Actual costs are thereby divided am ong

the activities. Statistical key figures can be transferred from the

Logistics Information System (LIS).

© SAP AG

Chapter Planning in Cost Center Accounting

Goals of cost center planning

Planning scope and techniques

Versions

Arranging the planning screen

Flexible selection of the planning views

Distribution key

Detailed planning and base object costing

Plan reconciliation

Plan cost sp litting

Activity price calculation

Budget management

Planning aids





© SAP AG

Goals of Cost Center Planning

Planning structures forthe company’s future

Managingbusiness strategy

Economic management

The goals of cost center planning can be divided into three groups:

Planning the organizational future for a particular timeframe

Managing the business strategy during the current settlement period

Checking the company’s competitiveness after closing the settlement period

To achieve these goals, the SAP R/3 System offers a wide variety of intruments to choose from.



© SAP AG

Planning Scope and TechniquesPlanning Scope in Cost Center Accounting

Statistical Key FiguresStatistical Key FiguresManual

Stat.keyfigureplanning

Automatic

Transferfrom LIS



© SAP AG


Activity TypeActivity TypeManual

Activitytypeplanning

Automatic

Indirectactivityallocation

Statistical Key FigureStatistical Key FigureManual


Automatic

Transferfrom LIS



© SAP AG


CostsCostsActivity TypesActivity TypesManual

Activitytypeplanning

Automatic


Statistical Key FiguresStatistical Key FiguresManual


Automatic

Transferfrom LIS

Manual

Primary

Activity-independentprimary costplanning

Activity-dependentprimary costplanning

Secondary

Activity-independentsecondary

cost planningActivity-dependentsecondarycost planning

Automatic

Primary

Imputed costs

Distribution

Periodicreposting

Secondary

Assessment


Cost center planning distinguishes between:

Planning statistical key figures

Planning activity types

Planning value-based and quantity-based primary and secondary costs as well as planning revenues

These planning techniques and their usage will be examined in the course of this unit.

At the end of this unit is an illustration of a possible planning procedure which is suggested if you areto use all the planning techniques listed above.



© SAP AG

Arranging the Planning Screen

Distribution

Administration

Production

User Profile LayoutPlanning Scope

CElem

ATyp

CCtr

ATyp

ATyp

CCtr

Cost CenterCost elem. Value

Cost CenterCost elem. Value

A ctv . ty pe V alu e

+

+

CCtr

CElem

CElem

Entering CO plan data is accomplished with entry screens which can be arranged as desired in system

configuration for planning. These screens are known as planning layouts.

Planung layouts include one planning area each. They can be used to define multiple lead columns aswell as arranging the value columns as well.

Via the planner profiles, you can control the shape and extent of planning. Layouts are assigned to theplanner profiles, making authorizations for planning manageable through assigning authorizationgroups to a profile.

Standard planner profiles and planning layouts that cover most if not all of the possible planningsituations are included in the standard SAP R/3 System. You also have the option of defining your ownprofiles and layouts.



© SAP AG

Flexible Choice of Planning ViewsS04000S04000


S04100

ServicesServices

CostCost

CenterCenter

41104110

CostCost

ElementElement

420000420000

S04110

Machinist

. . .



© SAP AG



S04100

ServicesServices

CostCost

CenterCenter

41104110

CostCost

ElementElement

420000420000

S04110

Machinist

. . .

CostCost

CenterCenter

GroupGroup

S04200S04200

CostCost

ElementElement

GroupGroup

"Wages""Wages"

S04200


Area AIArea AI

S04220

Line I

S04220

Line II

S04220

Line III

420000421000430000431000434000435000



© SAP AG



S04100

ServicesServices

CostCost

CenterCenter

41104110

CostCost

ElementElement

420000420000

S04110

Machinist

. . .

CostCost

CenterCenter

GroupGroup

S04200S04200

CostCost

ElementElement

GroupGroup

"Wages""Wages"

S04200


Area AIArea AI

S04220

Line I

S04220

Line II

S04220

Line III

S04300


Area BIArea BI

S04400


Area CIArea CI

. . .

S04220

Line III

. . .

. . .420000421000430000431000434000435000


44304430

Cost ElementCost Element

Group "Wages"Group "Wages"

420000421000430000431000434000435000

With the aid of the flexible entry screens, it is possible to carry out central planning (such as planning a

cost element for all cost centers) as well as decentralized planning (such as planning for individual costcenters). Similarly, the planning views for planning activity types and statistical key figures may also bechosen.

Depending on the arrangement of the entry screen, the option exists when entering the screen of usingindividual values, intervals, or groups. SAP recommends creating cost element or cost center groups forfuture use in the R/3 System.



© SAP AG

Versions

Version 000Version 000

Year Locked Line Items . . . Rate Type . . .

1994 X X

1995

1996

1997

1998

Version 001

Version 002

A closed cost plan is always found in a version within the SAP R/3 System.

When creating a controlling area, the R/3 System automatically creates version 000, which is valid forfive fiscal years.

Actual data is always referred to through version 000.

To create alternative plans, you can define new versions.

You can undertake basic settings in the version affecting planning in general, including:

Locking the version

Releasing a version for copying or preventing any copying

Storing exchange rate types for currency translations

Activating planning integration

Making settings for activity price calculation



© SAP AG

Standard Distribution Key: Excerpt (6,7)

Given period value is Total value distributedcopied to the following to the periods accordingperiods to the number of

calendar days

O: 24,000 P Old Entry New 24,00024,000 P Value

N: 31,000 1 2000 2000 1 2032.792 2000 30003000 3000 2 1901.643 2000 3000 3 2032.794 2000 3000 4 1967.215 2000 3000 5 2032.796 2000 3000 6 1967.217 2000 25002500 2500 7 2032.798 2000 2500 8 2032.799 2000 2500 9 1967.21

10 2000 2500 10 2032.7911 2000 20002000 2000 11 1967.2112 2000 2000 12 2032.79

Distribution Key 6 Distribution Key 7

For period-appropriate distribution of total values, you require a distribution key.

Keys are stored in the standard SAP R/3 System which are useful for distribution of complete valuesaccording to different criteria.

In addition to the standard distribution keys, you can define as many company-specific distribution keysas desired (for example, according to shift plans).



© SAP AG

Planning Statistical Key Figures

18 Em ployees

1200 Telephone meterunits

. . . . . .

Cost Center: Motor PoolCost Center: Motor Pool

Statistical key figures can be planned in order to -

construct managerial key figures for cost centers

prepare receiver tracing factors for internal allocations



© SAP AG

Detailed Planning and Base Unit Costing

Primary Cost Element 420 000 / Wages

Employees Category A 20,000.-

Employees Category B 5000.-

Employees Category C 2000.-

∑∑∑∑ All Employees 27,000.-

In the activity-independent primary cost planning framework, detailed planning makes planning

beneath the cost element level possible. You can, for example, differentiate the cost element “Wages”into different employee categories with detailed planning. The results of detailed planning areidentified on the cost element level.

Detailed planning can also access base unit costing, an application used in Logistics but with partialapplication in Controlling. Base unit costing can be used to make cost-based planning for a singleobject made up of several raw materials, internal activities, or unfinished products (for example,internal service activities).

If you want to use detailed planning, please note the following.

Detailed planning can be carried out only in controlling area currency.

The results from detailed planning can only be evaluated in cost center planning, not in theinformation system. Cost center planning carries out identification on the cost element level.

Values created in detailed planning may only be changed in detailed planning.

If detailed planning is used for the first quarter of a fiscal year, the entire year must be planned withdetailed planning as well.



© SAP AG

R

Plan Clearing Procedure (Corresponding to Actual)

Selection: cost element percentage m ethod Periodic transfer to plan

Plan distribution

Plan assessment

Indirect activity allocation to plan

Using the cost element percentage method within the framework of plan selection, you can plan

imputed costs in Cost Center Accounting.

Periodic transfer is envisioned as a posting tool to allocate primary postings from one CO object (suchas collection cost center) to another. The basis for these allocations are keys that can be defined by theuser.

Plan distribution is generally chosen for costs that are entered in a collection cost center and areallocated to the cost centers where they originated using distribution. As in actual, allocation isperformed using the cycle segment technique with keys like statistical key figures or fixedpercentages.

Like plan distribution, plan allocation allows you to allocate costs from one cost center to anotherusing keys such as statistical key figures.

With indirect activity allocation, activities can be allocated automatically. There are two differentmethods for doing this:- Activities may be entered in the sender cost center- Activities may not be entered in the sender cost center at all or entered with a great deal of difficulty



© SAP AG

Activity Type Planning

CCtr 4000 Production A

Activity Type "Production H ours 1"

P lan ac tiv ity 10 ,000 hrs

Co st e lem en t 61 5 00 0

Equivalence number 1

Activity price: Fixed _____ V ariable _____

Activity Type "Production H ours 2"

. . .

. . .

. . .

. . .

Activity types serve as activity controls for cost centers. They are used to describe the quantity output

of a cost center and can be used to determine an operating rate and target costs.

Activity types are allocated under a secondary cost element, which is stored as a default value in theactivity type master data record.

The activity type allocation price is either determined per cost center/activity type in automatic activityprice calculation or is determined manually. In automatic activity price calculation, all primary andsecondary costs planned as activity-dependent or activity-independent for the appropriate cost centersare included in the allocation price. Cost center costs are divided by the plan activity or plan capacity.

If several activity types are planned on a cost center, the activity-independent plan costs are brokendown (split) onto these activity types for activity price calculation.



© SAP AG

Activity Price Calculation

Cost Center BCost Center B

Activity Type MHRPlan Activity 100 hr

Primary CostsWages 5000.-Salaries 5000.-Energy 1000.-

Secondary CostsActivity of Cost Center A

50 hr

Cost Center ACost Center A

Activity Type REPPlan Activity 1000 hr

Primary CostsWages 10,000.-Salaries 5000.-Energy 1000.-

Secondary CostsActivity of Cost Center B

10 hr

10hr10hr

50hr50hr

The example above illustrates the activity price calculation procedure.

The activity price for Cost Center A is determined with the formula:

(16000 + (10 X Activity price of Cost Center B/Activity Type MHR) ) / 1000 hours

The activity price for Cost Center B is determined with the formula:

(11000 + (50 X Activity price of Cost Center A/Activity Type REP) / 1000 hours

The exact activity type price is calculated iteratively.

If you use manual activity prices in addition to iterative prices, you have the option of setting anindicator in the version which allows the purely iterative activity prices to be calculated in addition.



© SAP AG

Planning Aids

Copy planning Revaluation

Transfer of plan values from other applications

Within cost center planning, you can find planning aids that simplify planning tasks.

The ‘Copy planning’ function gives you the option to copy planned values selectively from one planversion to another.

Revaluation can increase or reduce planning results as a percentage.

In the framework of planning integration, you can transfer data from systems external to cost centeraccounting directly to cost center planning.



© SAP AG

Transfer of Plan Values

Personnel costsPersonnel costs

Depreciation / interestDepreciation / interest

Statistical key figuresStatistical key figures

Activity requirementsActivity requirements

Asset Management

Human Resources

AMAM

HRHR

PPPP

Logistics Information System(LIS)

Production Planning

C O S T

C E N T E R

P L A N N I N

G

Planning integration allows transfers of data from Cost Center Accounting feeder systems to cost center

planning.

If this data was planned in the feeder systems and is to be transferred unchanged to cost centerplanning, the planning of the corresponding data in Cost Center Accounting is not necessary.

To use planning integration, various preconditions in Cost Center Accounting and in the feeder systemsmust be met first. For example, the personnel costs in Human Resources can be transferred to primarycost planning in Cost Center Accounting only if valid cost centers are available to which the affectedpersonnel master data records are assigned.



© SAP AG

Summary (1)

In order to plan statistical key figures, ac tivity types, andcosts, the SAP R/3 System provides a wide variety ofinstruments to choo se from.

Complete planning takes place in a version in the SAPSystem. Along with this version, any num ber of alternativeplans are possible.

The planning screen can be arranged according toindividual taste.

You have the option of adjusting the planning views tomeet your s pecial requirements.



© SAP AG

Cost Center Accounting PlanningSummary (2)

The distribution key supports period-based distribution of total values.

You can use detailled planning and base object costing in the activity-independent primary cost planning framework.

The SAP R-3 System offers various planning aids:- Copy planning- Revaluation- Transfer plan values from other applications

© SAP AG

Chapter Activity-Based Costing

Process flow view versus cost center view

Purpose and goals of activity-based costing

Model of activity-based costing in the SAP R/3System





© SAP AG

Process View versus Cost Center View


ProcessProcess

PurchasingPurchasing Accoun-Accoun-

tingting

Sales Process

DistributionDistribution

Shipping

Order Creditors

Debitors

Analysis and optimization of business processes is being pursued energetically by many companies in

widely differing industries. Along with optimization of lead times and quality, cost reduction is thefocus of interest.

The traditionally-oriented Cost Center Accounting assigns overhead costs according to organizationalstructures and responsibility areas. Activity-Based Costing (ABC) examines them according to theprocess organization in which they are assigned to business processes. ABC makes monitoring of thecost effects of business process optimizing possible.

Whereas Cost Center Accounting answers where costs occur, ABC answers the reasons why.

In contrast to Cost Center Accounting, which requires local cost optimization procedures for costcenters, ABC makes the effects of decisions transparent for the entire organization.

For example, Procurement decides to simplify order settlement. Accounting thereby has greaterexpenditures in accounts payable. This is visible after viewing the procurement business process.



© SAP AG

Activity-Based Costing Model

Cost Centers

Cost Ob jects

FinancialFinancialAccountingAccounting

ProcessesProcesses

In a simplified illustration of general cost allocation, the direct costs from feeder systems are posted

directly on cost objects while cost center overhead costs are assigned according to responsiblities.

Traditionally, overhead costs are allocated with various methods (surcharges, assessment, activityaccounting, etc.) from cost centers to cost objects. Such allocation is frequently not based on the costoriginator. Rather, as with surcharges, it is based on the ratio of overhead costs to direct costs. Thiscan results in a false indentification of product costs resulting in mistaken decisions. The growingquota of overhead costs among total costs makes appropriate allocation of costs to their origins evermore important.

With ABC you have the option of first allocating overhead costs from cost centers to processes, andafterwards assigning the costs to cost objects based on the originators and the actual consumption of processes.

ABC does not replace Cost Center Accounting, but rather complements it with another view of overhead costs. Direct assignment to processes (say from FI) while avoiding Cost Center Accountingentirely is not planned at this time.

The CO-ABC component is integrated fully in the SAP R/3 System , allowing you access to atransaction-oriented, cross-functional examination of the organizational cost structures.



© SAP AG

TransparencyTransparency•• Resource consumptionResource consumption

of processesof processes•• Capacity use ofCapacity use of

indirect areasindirect areas•• Complexity costsComplexity costs•• Costs of product andCosts of product and

process changesprocess changes•• Parallel quantity andParallel quantity and

value flowvalue flow

Purposes and Goals of Activity-Based Costing

EfficiencyEfficiency•• ContinuiousContinuious profitabilityprofitability

monitoring of internalmonitoring of internalprocessesprocesses

•• Interface managem entInterface managem entthrough process-orientedthrough process-orientedthinkingthinking

•• Reduction in overheadReduction in overheadthrough corporatethrough corporatereengineeringreengineering

CostingCosting•• Strategic cost viewStrategic c ost view•• Origin-appropriateOrigin-appropriate

allocation of internalallocation of internalactivitiesactivities

•• Determination of information relevant toDetermination of information relevant to

managerial decision-makingmanagerial decision-making

•• Avoidance of strategic managerial mistakesAvoidance of strategic managerial mistakes

Due to the huge percentage rise in overhead costs in recent years, traditional function-oriented cost

center accounting no longer suffices to control overhead costs efficiently.

Activity-based costing improves overhead cost transparency. It is an important requirement for moreefficient shaping of business processes. On the basis of origin-appropriate allocation of internalactivities in costing, expenses arising from a change in product or methodology can be costed moreprecisely.

CO-ABC enables intuitive modelling of organizational process chains and business processes.Improved transparency results in an entirely new information base which you can use to makecomplex decisions.



© SAP AG

R

Chapter Internal Orders:Master Data and Structures

Managerial aspects

Organizational presentation

Substitution rules

Order types

Status management



© SAP AG

Internal Orders

Internal Orders

Results analysisResults analysisordersorders

Cost Accounting FunctionsCost Accounting Functions

Orders withOrders withrevenuerevenue

Overhead costOverhead costordersorders

Capital-Capital-investment ordersinvestment orders

Internal orders in the SAP R/3 System describe simple actions within a controlling area. Orders support

action-oriented planning, monitoring, and allocation of costs.

Internal orders may be used for a variety of purposes:

Control of internal actions settled to cost centers(= overhead cost order)

Control of internal actions settled to fixed assets(= investment order)

Inclusion of offset postings of imputed costs calculated in CO(= imputed cost order)

Display of cost controlling parts of SD customer orders and inclusion of revenues not affecting the

core business of the company(= order with revenues)

Combined forms of overhead cost orders and internal orders exist as well.



© SAP AG

MMM

MMM

MMM

MMM

Advantages of Internal Orders

Cost Center

l _____________ l _____________ l _____________

l External Costs

l InternalActivities

Cost Center

l _____________ l _____________ l _____________ l External Costs

l InternalActivities

Without orders

With orders

TradeFair 1

TradeFair 1

TradeFair 2

TradeFair 2

EXTERNAL COSTSInternal Activities

Ext. CostsInternalActivities

External CostsInternal Activities

Ext. CostsInternalActivities

1

2

Settlement

Settlement

Order 1Order 1Ext:Ext:Int. ActivitiesInt. Activities

Order 2Order 2Ext:Ext:Int. ActivitiesInt. Activities

This example illustrates the main purpose of internal order use in Overhead Cost Controlling. In the

first case, after concluding both actions (here, measurement), no further comparison analysis can takeplace. Because external costs and internal activities are treated with the same cost elements on the samecost center, it is no longer possible to determine which action created which costs. If, however, eachaction receives its own internal order, as in the second case, the costs can be collected separately andanalyzed afterwards - even if settlement on the cost center has been executed already.

A further advantage is found in the wide variety of planning and budgeting functions offered for orders.



© SAP AG

Order Master Record

Assignments

è Company Code

è Business Area

è Plant

è Controlling Area

è Profit Center

è WBS Element

è - - -

The internal order is assigned to a company code and a controlling area, like the cost center. If you

want to create business area balances in Financial Accounting, you must also enter a business area.

If you wish to transfer values posted on internal orders to a profit center, you enter the profit center inthe order master record. All actual postings to the internal order are passed along automatically to theprofit center. Plan values also may be transferred to profit center planning if required.

If you assign an order to a WBS element, you can monitor the value of the order in the project systemorders. In addition, you have the option of highlighting the settlement of all orders assigned to theproject automatically during project settlement.

The remaining criteria possess informative value, meaning they can be evaluated in the internal orderinformation system. This information has no influence on the posting of plan or actual costs.



© SAP AG

Order Type Functions

ControlControlè Commitments managementè CO partner updateè Revenue postingsè Classificationè Planning integration

Reference

Order typeOrder type

- Settlement profile

- Planning profile- Status structure- Reference request

external internal

Number assignment

NumbersNumbers

Required entry

Optional entry

Display only

Hide

Field selelctionField selelction

Field . . .

StatusStatus

Status structure

OrderOrder

Lis te

X

X

X

X

X

X

X

712 7182

34 0

The most important indicators and parameters for default values, number assignment, field selection,

and status administration are found in the order type.

The indicator “CO partner update” can have a large impact on system performance; activate it onlywhen absolutely necessary.



© SAP AG

Status Management for Internal Orders

Systemstatus

SetSet

automaticallyautomatically

SAP

SetSet

manuallymanually

User

Activestatus

Transactions

Transactions

R EV . W AR N. UP DT.1 X2 X3 X4 X

R EV . W AR N. UP DT.1 X

2 X3 X4 X

Order

Transactions

R EV . W AR N. UP DT .1 X2 X3 X4 X

Status management controls which business transactions are allowed for an order at any given time.

The standard SAP R/3 System includes certain system status settings that are active for an order, forexample, when it is released or when settlement rules are entered, or whether an order has been closed.

If the standard system status settings are not detailed enough, you can create user-defined statusindicators for further subdivisions. For example, it may be necessary to switch to a planning approvalprocedure for very large orders before they are released.



© SAP AG

Order Groups

PainterPainter ElectricianElectricianLocksmithLocksmith

30 31 32


44 45 46


33 42 43

Area A Area CArea B

INST01INST01

Plant Maintenance

As in Cost Center Accounting, you can gather internal orders in hierarchically arranged order groups.

Groups maintenance is also similar to the Cost Center Accounting maintenance function.

You can assign an order to several groups. However, in contrast with Cost Center Accounting, it is not possible to define a standard hierarchy.

Order groups offer the option of planning and settling costs, calculating surcharges, and creating reportsfor as many combinations of orders as desired.



© SAP AG

Order List

Selection Variant

Order number

Responsible cost centerOrder type. . .

Order list

Order Text Responsible cost center

4711 Repair A 42508023 Repair 42509738 Repair 4250

BASIC DATA

Detailed informationabout individual orders

VIEWS

Additional informationabout the list

Create

order group

Selection variants are used to collect orders according to various criteria in order to settle or report on

the entire group. Along with using the order fields, you can -

define Boolean rules for selection

select according to the order classification data

choose according to the order settlement receivers

The selected orders can be combined at the touch of a button to an order group for use in creating, forexample, the standard reports for the group.



© SAP AG

Substitution Rules for Orders

Example:

For Order type 0100 andResponsible cost center 4520,Profit Center 1000should always be entered.

1. Prerequisites

<Order type> = '0100'<Resp. cos t c tr> = '4520 '

2. Substitution

<Profit Center> = '1000'

Order Collective ProcessingOrder Collective Processing

Substitution Rule

Automatic ChangesAutomatic Changes

According to the Substitution RuleAccording to the Substitution Rule

Order collective processing offers comfortable options for changing multiple orders in one step.

The precondition, as when working with the order list, is the definition of a selction variant thatincludes the orders to be processed.

The definition of substitution rules is used to undertake collective changes for orders based on anydesired criteria.



© SAP AG

R

Summary

You use S AP R/3 System Internal Orders to monitor costs according to actions takenbefore they are allocated further. Controlling transparency is enhanced by Internal

Orders when com pared to simple cost center accounting.

In the internal order mas ter record you can store a profit center and a WBS element.Actual and plan values in the order can be copied to the profit center. You caninclude the orders assigned to the project in reporting and when settling the project.

You ca n edit several orders simultaneously in the master data. Using substitutions(user-defined replacement rules), you can execute m ass changes for the orders.

The order type is the central control param eter in customizing. Here you store,among others, the rules for number range assignment, a sam ple order as a copyreference, and information on status administration.

Order status determines which managem ent transactions are to be carried out on theorder at a particular time. Along with the SA P default system status, you canundertake further delimitations of the valid transactions with a user status structure.

© SAP AG

R

Chapter Internal Orders:Actual Postings and Commitments

Commitment management

Overhead surcharges

Settlement: Functions

Settlement: Parameters in Customizing

Settlement: Special features for capital investment

orders

Statistical orders





© SAP AG

Orders: Flow of Values

Financial Accounting

MaterialManagement

Controlling

ExternalAccounting

Internal Accounting

Internal ordersInternal orders

nn MaintenanceMaintenance

nn InvestmentInvestment

nn RepairsRepairs

nn etc.etc.

DeliveriesDeliveries

ServicesServices

WithdrawalWithdrawal

Internal activitiesInternal activities

OverheadOverhead

nn G/L accountG/L account

nn AssetAsset

nn Cost centerCost center

nn OrderOrder

nn ProjectProject

nn Prof. segmentProf. segment

nn NetworkNetwork

Order debiting occurs due to:

• Primary cost postings to FI

• Movement of goods (procurement orders, goods receipt, reservations, or goods issue) in MaterialsManagement

• Internal activity allocation, primary cost and revenue reposting, and overhead cost surcharges inControlling

Order crediting occurs due to settlement to receivers in external accounting (G/L account, asset) orinternal accounting (cost center, order, project, network, profitability segment). It is not necessary tosettle an order.



© SAP AG

Commitments Management: Overview


Purchase requisitionPurchase requisition

or purchase orderor purchase order

Material Wood beams

Quantity 50 pc

Price 10/pc

OrderOrder 47124712

00 00 00∑∑∑∑∑∑∑∑ 00 00 00

Order 4712: Repa irsOrder 4712: R epairs

CElemCElem CmntCmnt ActualActual AllottedAllotted

Order

400000400000 500.-500.- 00 500.-500.-∑∑∑∑∑∑∑∑ 500.-500.- 00 500.-500.-

Order 4712: RepairsOrder 4712: Repairs

CElemCElem CmntCmnt ActualActual AllottedAllotted

Order

Plant: ABC

Storage location: XY

Material: Wood beam

Quantity:Quantity: 50 pc50 pc400000400000 0 500.-0 500.- 500.-500.-

∑∑∑∑∑∑∑∑ 00 500.-500.- 500.-500.-

Order 4712: RepairsOrder 4712: RepairsCElemCElem CmntCmnt ActualActual AllottedAllotted

Order

Commitments management gives an overview of costs that will be posted on your order in the near

future. At this time, a commitment can be placed on an order if a procurement or material order isentered for the order. The constant precondition for the commitment is that the corresponding option isselected in the desired order type and that commitments management is active for the controlling area.

In the information system, the commitment is identified separately. The column “Available” shows thetotal of actual and commitment. In addition, the commitment origin (procurement or order) is stated.

The graphic displays the commitment structure through goods receipt. If, however, the indicator“Unevaluated goods receipt” is set in the order item, the commitment is created only after the billingarrives.

For non-quantifiable activities, or those quantifiable only after much effort, the option exists of makingthe commitment proportional to value, not quantity. The deciding factor here is an indicator in the

quantity unit.



© SAP AG

Real vs. Statistical Orders

Order Order

"Real" order

Statistical order

Docu-

ment

Order Order

Docu-

ment

Posting

Posting

Posting

Settlement

Cost center

Cost center

No settlement takes place for a statistical order. You see the costs directly on the cost center based on

the transaction.

From a system performance standpoint you are spared the effort of settlement, but a posting to astatistical order is somewhat less useful than that to a real order.

The cost center to be posted can be stored in the order master data record. The entry of the cost centerneed not be performed for later postings.



© SAP AG

Overhead Costing

Direct material costs+ =

Material overhead

Direct labor costs+ =

Production overhead

OverheadCosting Sheet

Material costs+

Production costs

=Manufacturing costs

+Administrative overhead

+

Sales overhead=

Cost of goods sold

Overhead costing is used to allocate overhead costs. The SAP R/3 System offers the option, alongside

that of the pure full cost basis, of dividing the surcharge amounts according to fixed and variablecomponents - similar to those of the originating cost elements. It is equally possible to calculatesurcharges oriented towards the quantities posted in the documents.

The rules for surcharging (meaning which cost elements are to be surcharged, which cost centers ororders are to be credited via the surcharges, etc.) are gathered together in a surcharge costing sheet.



© SAP AG

Surcharges

Surcharge Costing Sheet

Calculation baseè Cost elementè Originè Surcharge fixed or variable cost elements only?

Proportional surchargeè Percentage ratesè Dependencies

Quantity-related surchargeè Amoun t per quantity unitè Dependencies

Creditè Cost elementè Originè Objectè Fixed/variable breakdown o f surcharge cost elements

OrderOrder

The surcharge costing sheet combines three central elements:

1. The calculation base defines which cost elements are to be surcharged. An origin field enablesyou to

differentiate according to different materials posted under the same cost element to the order.

2. The surcharge defines:

- The percentages used on the different calculation bases as surcharges, or the amounts per quantityunit used as surcharges. In the latter case, quantities must be recorded in CO. Either the cost elementmust record the quantity, or the material master indicator “Material origin” must be set. Mateiralswith differing quantity units must be differentiated extra in the origin group field if they are to beupdated together under the same cost element.

- The dependencies. Via dependencies, you have the ability to differentiate surcharges according toplants, company codes, locations, and other criteria.

3. The crediting defines which objects (cost centers or internal orders) are credited under which costelements when surcharges are calculated.



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Settlement: Overview

Rechnung

+ x %

CostsCosts InvoicesInvoices SurchargesSurcharges

Cost Order WBS Sales Asset Net- G/L Profitab.center element order work acct. segment

OrderOrder

The costs gathered on an order can be settled on a great variety of account assignment objects.

In customizing you define the valid receivers for each order type using different settlement profiles.

Order settlement is not a mandatory requirement.



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Settlement Rules in the Order

èè Settlement profileSettlement profile

èè Settlement structureSettlement structure

èè Profitability structureProfitability structure

èè Source structureSource structure

èè Hierarchy num berHierarchy number

èè ReceiverReceiver

èè Distribution ruleDistribution rule

èè Distribution typeDistribution type

MA S T E

R

DA TA

S E T T L E

M E N T

PA RA

M E T E R

S

D I S T R I

B U T I O

N

R U L E

èè Cost center or G/L accountCost center or G/L account

èè Cost elementCost element

oror

The settlement profile, settlement structure, PA settlement structure, and source structure are suggested

as a rule based the order type. Their functions are described in more detail on the following pages, as isthe hierarchy number.

Settlement rules determine the following.

Which portions are to be settled to which receivers.

How costs are to be apportioned - percentage-based or amount-based division are possible, or thedivision according to equivalence numbers.

The settlement type PER serves to settle the costs of exactly one period, which makes sense for allsettlements within Controlling. The settlement type ALL settles all costs on a sender object up to thesettlement period, which is used for settlement to external receivers such as assets or profitability

segments. To settle an order to exactly one cost center or G/L account, you can maintain the settlement rule

directly in the order master data record.



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Settlement with Source Assignment

Custom izing: Source Structure

U12:420 000 - 429 999

U11:400 000 - 419 999

Receiver 1Receiver 1

65,000.-65,000.-

Receiver 2Receiver 2

500,000.-500,000.-

Order

Settlement rule:

Source structure: U1

Rules

OAssOAss U11U11 Rcvr Rcvr 1Rcvr Rcvr 1OAssOAss U12U12 Rcvr Rcvr 2Rcvr Rcvr 2

Cost elements

410 000410 000 60,000.-60,000.-

415 000415 000 5000.-5000.-420 000420 000 500,000.-500,000.-

To settle to different receivers dependent on the originating cost elements posted on an order, use the

source group technique. Cost elements in the source structure are grouped according to source groups,and the structure entered in the order settlement parameters so that the settlement rules can differentiateaccording to structure. It then becomes possible, for example, to treat external and internal activitiesseparately during settlement.



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Hierarchical Settlement

Repair orderRepair order

Hierarchy 100Hierarchy 100

Costs...Costs...

Settlement 651000 20,000.-Settlement 651000 20,000.-

Maintenance orderMaintenance order


Costs ...Costs ...

Settlement 652000 1000.-Settlement 652000 1000.-

Order: TurbineOrder: Turbine


651 000 Repair651 000 Repair

652 000 Wartung652 000 Wartung

Order: CoolingOrder: Cooling


.... Repair.... Repair

Order: Power stationOrder: Power station


RepairRepair

MaintenanceMaintenance

Repair orderRepair order


Costs ...Costs ...

Settlemen t 651000 20,000.-Settlement 651000 20,000.-

Hierarchical settlement can be used, for example, to display summarized information on the purpose of

the partial orders (such as repairs, maintenance, etc.) on an end order.

For smaller hierarchies, a hierarchical settlement can replace order summarization as long as no otherreceiver is absolutely necessary.



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Settlement: Parameters in Customizing

Order typeOrder type

Planning integrationSettlement profileSettlement profile

proposes

Settlement structureSettlement structure

(source -> settlement cost element)

PA settlement strcturePA settlement strcture

(cost elements -> PA value fields)

Source structureSource structure

(settlement by cost element)

determines

allowed settlement receiver

allowed distribution methods(% rates, equivalence numbers, amoun ts)

"Do not settle" indicator

The central control parameter for settlement is the settlement profile, which is entered in the order type

and gives the settlement structure, PA settlement structure, or source structure for the orders of thattype.

The settlement structure controls the assignment of original cost elements to settlement costelements according to the individual receivers. The option of settling according to cost element alsoexists.

The PA settlement structure controls the assignment of cost elements to value fields in ProfitabilityAnalysis. It is used only if you settle internal orders directly to profit.

If you want to settle to different receivers dependent on the original cost elements posted on the order,use the source structure.

To settle orders in planning, set the parameter planning integration in the order type. For moreinformation on this parameter, see the unit on “Internal Orders: Planning and Budgeting”.



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Settlement Structure

Cost elementsMaterial (ext.)

400000400100400200

Material (int.)

410000410100

Labor

420000420100

$

ReceiverCost center

Oper. profit. . .Fixed asset

Cost center

Oper. profit. . .Fixed asset

Cost center

Oper. profit. . .

Fixed asset

Settlementcost elements

650000

650100

811000

651000

811000

... or ...Cost elementrelated

X

The settlement structure controls the conversion of cost elements to settlement cost elements, making

the option of cost element based settlement possible. It is especially useful, for example, in settlementof external activities (such as material procurement) to external receivers (such as assets) because theswelling of the profit and loss accounts due to ongoing activation costs does not occur. You should notenevertheless that cost element based settlement will have negative results on system performanceduring the settlement run.

Similarly, the PA settlement structure converts cost elements into the value components used inProfitability Analysis. It is required only if settlement to a profitability segment is to take place.



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Cost center

Investment Orders

Capital Investment MeasureCapital Investment Measure

Order

Asset under construction

Asset historysheet

Periodicsettlement

Asset 1Asset 1

Asset 2Asset 2

Asset 3Asset 3

Activities during theconstruction phase

Finalsettlement

The illustration of capital investment operations is offered by the SAP R/3 System application

Investment Management (IM), which can be used to create orders automatically including an assetunder construction. The precondition is the entry of an investment profile in the order master datarecord.

In the construction phase, you first post all transactions to the order. During monthly settlement, allitems that are not to be settled to receivers in Controlling (cost centers, etc.) are settled directly to theasset under construction. The monthly evaluation balances display the capital investment undertaking inthe asset inventory.

In complete or partial activation, you enter the final asset in the order distribution rules which is to bethe basis for the settlement of the asset under construction. The asset under construction isautomatically credited.

The settlement side includes a line item settlement procedure for this particular order type in addition tothe standard settlement methods for internal orders.



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R

Summary (1)

Actual posting to orders is similar to actual posting to cost centers.

If you post purchase requisitions or purchase orders for orders, acommitment in the amount of the order value is set up on the order.

If you want to post the costs as they occur to the order and the costcenter, use a statistical order. With a statistical order, you post bothreceivers simultaneously. There is no order settlement.

When a overhead costing sheet is defined in the order, the R/3 Systemautomatically calculates overhead surcharges. The costing sheetconsists of the calculation base, the surcharge, and the credit.

Orders are settled using individual or bulk processing. As a prerequisite,a settlement rule must be entered in all orders. The R/3 System uses thissettlement rule to determine the receivers of the order costs.



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R

Summary (2)

The settlement pro file is taken over as a defau lt value in the individualorders via the order type. The settlement profile determines the receiversallowed during settem ent, as well as the settlement structure. In thesettlement structure, you control the assignment of source cost elementsto settlement cost elements. Using the source structure, you can specifywhich cost element groups are to be always settled together to the sam ereceiver.

The capital-investment order automatically includes an asset underconstruction. The monthly settlement settles the order values to the assetunder construction if you do not enter anything else. For final settlement,you enter the final asset(s) in the settlement rule. Settlement is then donefrom the order or the asset under construction to these final asset(s).

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Chapter Period Closing in Overhead CostControlling

Period lock

Variance calculation

Reconcilation ledger





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Period Lock

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

RepostingDistributionAssessment...

XXX...

Using the period lock, you can lock plan and actual transactions for a combination of controlling area,

fiscal year and version.

You can choose from a list of all transactions in actual and plan the individual transactions that shouldbe locked.

You can also lock individual transactions for all periods in the fiscal year or all transactions for specificperiods.



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Variance CalculationWh ere does theWhere does the

over/under-absorptionover/under-absorption

come from?come from?

AreaArea

Target Actual

16,000.--16,000.-

0.-

20,000.--15,000.-

5,000.-

CostCostCenter 1Center 1

Target A ctual

9,000.--9,000.-

0.-

10,000.-7,000.-3,000.-

CostCostCenter 2Center 2

Target Actual

7,000.--7,000.-

0.-

10,000.--8,000.-2,000.-

ResponsibilityResponsibility ownown

externalexternal

Variance calculation is an analysis tool.

Cost center variances result from:

Too many / too few costs being debited

Too many / too few costs being allocated

There are two types of variances:

Actual balance: Cost center debits and activity allocation credits do not have the same amount. Thisbalance in actual equals the total of the variances.

Difference between target costs and actual costs: A cost center’s target costs are compared with theactual costs of the cost center (input side) and with the credits through activity allocation (output side).

Variance calculation is a periodic process. It is based on the values that result form all transactions incost center accounting. Based on this, the SAP R/3 System determines the target costs, distributes theactual costs to the activity types, and calculates the variances per cost center/activity type.



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Variance Categories

Input varianceInput variance

Resource-usage varianceResource-usage v ariance

Quantity varianceQuantity variance

Price variancePrice variance

Total VarianceTotal Variance

Input Side VariancesInput Side V ariances



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Variance Categories

Input varianceInput variance

Resource-usage varianceResource-usage v ariance

Quantity varianceQuantity variance

Price variancePrice variance

Total VarianceTotal Variance

Input Side VariancesInput Side V ariances

Remaining varianceRemaining variance

Secondary fixed-cost varianceSecondary fixed-cost variance

Volume varianceVolume variance

Fixed-cost varianceFixed-cost variance

Ouput price varianceOuput p rice variance

Output Side VariancesOutput Side Variances

In variance calculation, the difference between target costs and actual costs is revealed using a variety

of variance categories. In doing this, a distinction between the input side and output side in made: Theinput side contains all cost center debits and credits, and the output side the cost center’s activityallocations.

Variance calculation is cumulative; the total of all variances equals the total variance.

If all of the variance categories on the input side are not active, the amount of the variances categoriesnot activated is displayed on the input variance category.

If all of the variance categories on the output side are not active, the amount of the variance categoriesnot activated is displayed in the remaining variance category.

If none of the variance categories are active in the variance variants, only remaining variances are

displayed.



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Variances: Input Side

Pricevariance

Quantityvariance

Resource-usagevariance

Input SideVariances

Where does the over / under-absorption come from?Where do es the over / under-absorption come from?

TARGET Actualdebit

40 cents40 cents50 cents50 cents

40 cents40 cents

80 cents80 cents

60 cents60 cents40 cents40 cents

+20%

+50%

+100%

From varying costs?

Did theprices change?

Have the consumptionquantities changed?

Have varying inputgoods been used?

Input side variances can be divided into the following categories.

Price variance:Difference between target and actual costs that can be traced back to differences in the plan and actualprices of consumer goods. In order to calculate the prices and with them the price variances, you muststore quantities in addition to the costs.

Quantity variance:Difference between target and actual costs that can be traced back to differences between the plan andactual consumed quantities. In order calculate quantity variances, you must maintain quantities in yoursystem.

Structure variance:Difference between target and actual costs that can be traced back to varying usage of consumer goods

in plan and actual.

Input variance:Difference between target and actual costs that cannot be assigned to any of the above describedcategories.

The variance categories on the input side are displayed based on cost elements.



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Variances: Output Side

Where does the variance come from?Where does the variance come from?

Output SideVariancesTARGETTARGET

Fixed costvarianceFixed costs

Output pricevariance

ActualActualdebitdebit

A s s e m b l y

h r s

U S D 1 0 0

. -

Assembly hrsUSD 40.-USD 70.-

USD 110.-

From a varyingallocation?

Were incorrectactivityprices used?

Did the

operatinglevel change?

Output side variances can be divided into the following categories.

Output price variance:Difference between the target and allocated actual costs that result from using an allocation price whichdoes not debit the cost center in the amount of the target costs.

Fixed-cost variance:Difference resulting from a part of the fixed plan costs not being covered or being overabsorbed in anactual operating level that varies from the planned operating level. It is calculated from the totaloperating level variance and the secondary fixed-cost variance. The variance is displayed based on costelements.

Remaining variance:Difference between target and actual costs that cannot be assigned to any of the above categories.



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Reconciliation Ledger / Reconciliation Postings

...

General Ledger


Controlling

001 002001 002 001 002





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Reconciliation Ledger / Reconciliation Reports /Cost Analysis

...

General Ledger


Controlling

001 002001 002 001 002


Reconciliation PostingsReconciliationReports /CostAnalysis



© SAP AG

Reconciliation Ledger / Navigation Tool

...

NavigationTool General Ledger


Controlling

001 002001 002 001 002


Reconciliation PostingsReconciliationReports /CostAnalysis

All Controlling costs are collected and summarized in the reconciliation ledger, which represents Cost

Element Accounting in the SAP R/3 System.

The R/3 System only generates line items in cross-company-code or cross-business-area postings inControlling. This information is not automatically transferred to Financial Accounting. Using thereconciliation ledger, you can reconcile cross-company-code, cross-business-area, or cross-functional-area postings with Financial Accounting.

In addition to reconciling CO with FI, the reconciliation ledger offers the following informativefunctions:

Cross-Controlling cost analysis with short runtimes

Navigation help and access to Controlling from the income statement



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Reconciliation Ledger Structure

AccountCompany codeBusiness areaOriginObject typeObject classFunctional area

Account

Company codeBusiness areaOriginObject typeObject classFunctional area

TransactionDebit/Credit indicatorControlling area currencyControlling area currencyCompany code currencyCompany code currencyGroup currencyGroup currencyQuantityQuantity

ObjectObject

PartnerPartner

The structure of totals records postings in the reconciliation ledger is differentiated according to:

Company code

Business area

Origin (cost element sub-group)

Object type (cost center, order, project, etc.)

Object class

Functional area

All objects in Controlling (cost centers, orders, etc.) are fixed or specifically assigned to an objectclass. According to the assignment, the reconciliation ledger updates a data record for this object class

when an account assignment takes place to such an object. This is how a high level of summarization isachieved.

For allocations, the fields listed above are also saved for partners (sender or receiver) in the data record.Therefore it is easy to validate allocations between company codes, for example.

The records are also updated differentiated according to the posting’s business-related transaction andby debit and credit.

In each update, three currency amounts (controlling area currency, company code currency, and groupcurrency) and one quantity are updated.

The reconciliation ledger is updated with every posting or, alternatively, through follow-up posting.



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Company code:

Transaction:Debit/Credit:

Value:

0001Overhead costs001

RepostingC$500-

0002Overhead costs001

RepostingD$500+

of thereceiver

of thesender

P&L accounts:Internal repostings

500

500

500

500


$500$500

ReconciliationLedger

GeneralGeneralLedgerLedger

Clearing accounts

Company Code0001

Company Code0002

Using reconciliation postings, you can transfer cross-company-code, cross-business-area, or cross-

functional-area postings in Controlling to Financial Accounting. In Financial Accounting, you canautomatically generate reconciliation postings.

You can make reconciliation postings at any time. You should, however, ensure that the reconciliationpostings are carried out after the last relevant CO posting has been made.

Requirements for reconciliation postings are:

Adjustment accounts and clearing accounts need to be created in Financial Accounting

The adjustment accounts need to be assigned to business-related transactions, object classes, or acombination of both

When executing reconciliation postings, you can use auxiliary functions such as test run and detail list.



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Reconciliation Reports

DifferenceDifference(for example,(for example,

fromfromreposting)reposting)

OKOK

General General Ledger Ledger

FIFI COCO Reconciliation Reconciliation Ledger Ledger

Reconciliation Reportfor Com pany Code 0001

Account FI CO Balance

400000 200000 150000 5000050000415000 500000 500000 0

You can use specific cost element reports to evaluate the reconciliation ledger.

Controlling and general ledger resulting numbers can be displayed in the reports.

You can evaluate the reconciliation ledger independent of the application and thereby identify whichcosts accrued. In doing so, you can make differentiated cost analyses according to object types,functional areas, object classes, company codes, or business areas.



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Summ ary (1)

Using the period lock, you can lock individualtransactions for a combination of controlling area, fiscalyear, and version.

Variance calculation is a periodic process with which yo ucan analyze variances.

Variance calculation distinguishes between the input sideand output side of a cost center. This enables you toactivate or deactivate specific variance categories.

In the reconciliation ledger, costs of the completecontrolling area are summ arized according to variouscriteria.



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Summ ary (2)

In addition to reconciliation of Controlling with FinancialAccounting, you can use the reconciliation ledger to carryout cost analysis for all of CO with short runtimes. Thereconciliation ledger also serves as a navigation tool andas access to Controlling from the incom e statment.

Cash ManagementCash Management





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Overview

Chapter 59 Customizing ManualPlanning

Chapter 60 Check Deposit

Chapter 61 Customizing Check Deposit

Chapter 62 Bank Statement: M anualEntry

Chapter 63 Customizing the ManualBank Statement

Chapter 53 Complex Cash Management

Chapter 54 Cash Managem ent Position

Chapter 55 Customizing the CashManagemen t Position

Chapter 56 Cash C oncentration

Chapter 57 Customizing CashConcentration

Chapter 58 Manual Planning



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Overview

Chapter 67 Customizing the LiquidityForecast

Chapter 68 Customizing Data Transferand Reorganization

Chapter 64 Bank Statement: ElectronicEntry

Chapter 65 Customizing the ElectronicBank Statement

Chapter 66 Liquidity Forecast



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Introduction

l Instruments

l Overview of the functionality

l Terminology



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Problems and Objectives

1. Ensuring optimum liquidity formaturing obligations

2. Preparing and transferring short,medium and long-term funds atmaturity

3. Control over incoming and outgoingpayments

4. Information on managing short-termcash investments or borrowings

1. Too many bank accounts

2. Accounting by value date is required

3. Unreliable planning tools

4. Investment instruments not used totheir fullest potential

5. Lack of payment strategy

ConclusionConclusionAll necessary information mu st be

accessible in the cash management system.

Business ObjectivesBusiness ObjectivesCurrent ProblemsCurrent Problems



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Basic Planning DataBasic Planning Data

PlanningPlanning

DecisionDecision

ExecuteExecute

Invest/Borrow C ashInvest/Borrow C ash

Liquidity ForecastLiquidity Forecast

(liquidity trend)(liquidity trend)

Payments MadePayments Made

(checks,(checks,

bank transfers, . . . )bank transfers, . . . )

Bank StatementsBank Statements

- electronic- electronic

- manual- manual

Manual PlanningManual Planning

- payment advicespayment advices

- forecast values- forecast values

- sub-accounts- sub-accounts

(e.g. check deposit)(e.g. check deposit)

Money MarketMoney Market

(interest terms)(interest terms)

Cash ConcentrationCash C oncentration

(permanent average(permanent average

balances)balances)


(bank orders, documents)(bank orders, documents)

Preparation for the Next Da yPreparation for the Next Day

(payment a dvices, printouts, docum entation)(payment adv ices, printouts, docum entation)

Procedure for Day-to-Day Planning



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Integration: Cash Management Position

Financial AccountingFinancial Accounting Cash ManagementCash ManagementFIFI

Electronic ban kElectronic b ank

statementsstatementsPlanning /Planning /

analysesanalyses

FIFI

FIFI

Bank-related accounting Cash m anagement position


After the bank statements are posted, the account transactions can be displayed in the cash

management position.



© SAP AG

Cash Management within the Treasury Environment

Electronic BankingElectronic Bankingll BTXBT X

ll Datex-PDatex-P

FISFIS

ll AnalysesAnalyses

ll ReportingReporting

Materials Mgm tMaterials Mgm tll purchase orderspurchase orders

MMMM

Trading and CorrespondenceTrading and Correspondence

Planning andPlanning and

forecastforecast

datadata

Integrated F inancial ManagementIntegrated Financial Managem ent

FIFICM FCM F

FIFIBANKBANK

FIFIFISFIS

FIFIINTINT

FIFIFAFA

Sales and DistributionSales and Distributionll sales orderssales orders

SDSD

Financial Assets Mgm tFinancial Assets Mgm t ll loansloansll securitiessecuritiesll time depositstime deposits

FIFI

FAFA

Financial AccountingFinancial Accountingll bank-related accountingbank-related accountingll accounts receivableaccounts receivablell payment behaviorpayment behavior

FIFI

Abbreviations

- FI: Financial Accounting- CMF (CM): Cash Management and Forecast (Cash Management)- FIS: Financial Information System- BANK: Extended Banking and Treasury Functions- INT: Interest Scale (Interest)- FA: Financial Assets Management (Fixed Assets)- SD: Sales and Distribution- MM: Materials Management



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Instruments

InstrumentInstrument DataData Time FrameTime Frame

1.1. Cash managementCash managementpositionposition -- bank accountsbank accounts -- by value dateby value date -- bank clearing acctsbank clearing accts 0 to 5 days0 to 5 days

-- payment advicespayment advices

2.2. Liquidity forecastLiquidity forecast-- projecting cashprojecting cash -- accounts receivableaccounts receivable

inflows/outflowsinflows/outflows -- accounts payableaccounts payable 1 to 24 weeks1 to 24 weeks-- taxestaxes -- FI, MM, SDFI, MM, SD

-- planned itemsplanned items



© SAP AG

The Terminology and Contents of Planning

Cash m gmt positionCash m gmt position Liquidity forecastLiquidity forecast

Source of dataSource of data

==

levellevel

AccountAccount

==

groupgroup

Result:Result:

levellevel

payment advices,bank entries

bank accounts,clearing accounts

manual planning,invoices,

sales orders,purchase orders

customers,vendors,groups,

planned items(e.g. personnel expenditures,

taxes)

A qualitative report can be made abou tthe balance of a group.

(‘‘levels explain groups”)



© SAP AG

Summary

l Cash management position: bank account activ ity

l Liquidity forecast: ensuring and monitoringliquidity

l Online integration of bank-related accounting andsubledger accounting

© SAP AG

Chapter Cash Management Position

l Features

l Organizational and technical requirements ofintegration

l Accessing the cash m anagement position

l The grouping function

l Currency display and currency exposure





© SAP AG

Displaying the Cash Managem ent Position

Com pany code . . . . . . . . . .Company code . . . . . . . . . . FD01FD01

::

Cash mgmt position . . . . . . XCash mgmt position . . . . . . X

::

Grouping . . . . . . . . . . . . . . .Grouping . . . . . . . . . . . . . . . BANKSBANKS

Display as of . . . . . . . . . . . .Display as of . . . . . . . . . . . . DateDate

::

Display type . . . . . . . . . . . . KDisplay type . . . . . . . . . . . . K

On the initial screen specify the selection options for the following accounts analysis:

Company code: company code whose bank data you want to display---------------------------------------------------------------------------------------------------------------------------Cash management position: X displays bank dataGrouping: term which stands for a specific bank/account viewDisplay as of: (aggregated) starting date of the account forecastPlanned currency:Display in: currency code; affects which documents are selected for summarizing

and how their currency is converted (foreign exchange exposure)

---------------------------------------------------------------------------------------------------------------------------Increment: time frame (1-99) in days (T), weeks (W) or months (M)

Display type: type of amounts breakdown: K (aggregated = account balance)D (delta = inflows/outflows)



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Cash Managem ent Position: Groups / LevelsGrouping: BANKSGrouping: BANKS

08/01/9308/01/93 08/02/9308/02/93 08/03/9308/03/93

__________________________ _________ ______ _______ ______________ _________ __________________ __________________________ _________ BANKABANKA 5050 7070 6060BANKBBANKB 40-40 - 20-20 - 30-30 -

::

Groups: BANKAGroups: BANKA 08/01/9308/01/93 08/02/9308/02/93 08/03/9308/03/93 __________________________ _________ ______ _______ ______________ _________ __________________ __________________________ _________ Account 1Account 1 6060 6060 6060Account 2Account 2 10-10 - 10-10 - 20-20 -Account 3Account 3 2020 2020

Levels: ACCT1Levels: ACCT1 08/01/9308/01/93 08/02/9308/02/93 08/03/9308/03/93 __________________________ _________ ______ _______ ______________ _________ __________________ __________________________ _________ PAYMENT ADVICEPAYMENT ADVICE 2020 1010 1010B2 Incoming checkB2 Incoming check 4040 5050 3030F0 Bank p ostingF0 Bank posting 2020

Line item displayLine item displayAllocationAllocation Doc. no.Doc. no. . . . . . . .. . . . . . . AmountAmount __________________________ _________ ______ _______ ______________ _________ __________________ __________________________ _________ 1993080119930801 11 40,000.-40,000.-

The grouping term specifies how the system summarizes the data.

The total bank balance is broken down by:- the groups (accounts) that are posted to (Groups are listed with their cash management accountnames.)- the levels (reasons) of a bank or account transaction.

Line items can be displayed using the list display (top down).



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account

Risks Investments Settlement

Risks Investments Settlement

Riskscontingent liability,bill of exchangeliability

Investmentsovernight,long-term cashinvestments

Settlementdaily operations,check depo sits,outgoing checks,

bank transfers,bank collections,

USDUSD USDUSD USDUSD

DEMDEM DEMDEM DEMDEM

CH FCHF CHFCHF CHFCHF

account

DEMDEMUSDUSDCHFCH F

Requirements: Bank Account Structure

Bankaccount

In bank-related accounting a clearing account is to be set up for each type of payment.

Objectives: - accounts can be reconciled at any time- foreign currency and local currency are managed parallel- interest can be calculated- line item analysis can be made- contingent liabilities can be monitored- items posted automatically using automatic payment transactions- automatic breakdown using electronic banking transactions



© SAP AG

Requirement I: Bank-Related Accounting

outgoing checksoutgoing checks

transfer Atransfer A

foreign transfer Aforeign transfer A

0101

0202

0303

0404

. . . . . . . . . .. . . . . . . . . .

113100113100

Bank ABank Acurrent accountcurrent account

2. Bank statements2. Bank statements

1. Payment transactions1. Payment transactions

3. Cash management3. Cash management

1. Payment transactions are posted against the clearing accounts.

2. Bank statements balance the clearing entries against the bank account.

3. Postings are displayed and monitored in Cash Management.



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Requirement II: Bank Accounts

Field controlField control

Sort keySort key

Open item managementOpen item management

Line item displayLine item display

Planning levelPlanning level

Value dateValue date

Customizing: field status - paym ent transactionsCustomizing: field status - paym ent transactions

027 005

X

X X

F0 Bx

X X

Bank accountBank account SubaccountSubaccount

Bank accounts must be configured so that the bank postings are included in planning.



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Requirement III: Planning Levels

BANKALEVEL 08/01/93

------------------------------------F0 60,000.-Bx 10,000.-

BANKA1BANKA1 TableTable

BANKA0BANKA0Entry: DocumentEntry: Document

::Planning level: BxPlanning level: Bx

::

Bx: outgoing checkBx: outgoing check::

F0: bank postingF0: bank posting

::

::

Planning level: F0Planning level: F0

::

::

Planning level:Planning level: F0F0

Value date:Value date: 08/01/9308/01/93

::Cash Mgm t PositionCash Mgm t Position

Planning level: The planning level field (FD-EBENE) must be activated in the bank account master

record via the field status group.

Posted documents and their amounts are aggregated according to the proposed value at value date anddisplayed in the cash management position.



© SAP AG

Currency Display

DisplayDisplay

inin

In the following illustration “LC” is the local currency. This means that during postingthe system autom atically translates a foreign currency am ount into the LC.

Cash Management Position

Company code: 03Business area: **

:Display in : LCRate FC/LC:Rate LC/FC:

:

PlannedPlanned

currencycurrencyFC/LCFC/LC LC/FCLC/FC OutcomeOutcome

LC - posted amounts in local currency

LC LC - - posted LC amounts, without FC

FC FC - - posted FC amounts, without

translation

FC LC - - currency accounts: posted FC amountsare translated at entry date rate (TCURR)

FC LC 1.64 - posted FC amounts translated at 1.64

FC1 FC2 1.64 1.20 posted FC1 amounts translated into FC2using local currency: 1.64/1.20 = 1.37

You can display the foreign exchange exposure by using the currency fields.



© SAP AG

Features

ØØ Bank balances by value dateBank balances by value date

ØØ Parallel management of foreign currenciesParallel managem ent of foreign currencies

ØØ Autom atic revaluationsAutomatic revaluations

ØØ Cash position covering the next few daysCash position covering the next few days

ØØ Automatic payment using expected value daysAutomatic paym ent using expected value days

ØØ Control over cashed checksControl over cashed checksØØ Liabilities for presented b ills of exchangeLiabilities for p resented bills of exchange

ØØ Individual planningIndividual planning

Cash Management PositionCash Management Position



© SAP AG

Summary

l Cash management position: overview of cash activity inbank accounts and bankclearing accounts

l Top-down analysis to the documen t level

l Detailed account ba lance analysis by breaking down levels

© SAP AG

Chapter Customizing the Cash Managem entPosition

l Bank account configuration

l Bank-related accounting and house banks

l Planning level structure

l Cash management account name

l Groupings structure





© SAP AG

Master Record: Planning LevelMaster data G/L accounts Account groupsMaster data G/L accounts Account groups

G/L accountG/L account 113100113100

Short text . . .Short text . . . CitibankCitibank

::

Account group . . .Account group . . . FIN.FIN.

ChActChAct ActGActG fromfrom toto DescriptionDescription

CAUSCAUS FIN.FIN. . . .. . . . . .. . . Liquid fundsLiquid funds

::

Req.Req. Opt.Opt.

::

Planning levelPlanning level XX

::

FIN.FIN.

::

113100113100 . . .. . .

113200113200 . . .. . .

Financial spec ificationsFinancial specifications

EditEdit


EditEdit UsageUsage

The master record fields (planning level) required for entering planning data are configured using the

account groups.



© SAP AG

Bank Account Configuration

Acct no.Acct no. :: BANKC0Co. code:: FD00

Reference:: BANKA0:

:Open item m gmt :: (X)Line item display :: XSort keySort key :: 005

:

Planning level :level : F0________________________

:House bank:bank: MEIBABank acctBank acct :: GIRO

:

Bank accountBank account General ledgerGeneral ledger Master recordsMaster records

The configuration of bank accounts determines how account transactions are allocated in the cash

management position (see 2-5):- open item management in sub-accounts,- line item display for bank accounts and bank sub-accounts,- sort key 005 (local currency amount) or 027 (planning date),- The planning level is transferred to the document. It is an allocation characteristic and classifies the

account transaction.

House bank: In Cash Management, correspondence with banks is carried out using the bank ID.



© SAP AG

House Banks

Com pany code 0001Comp any code 0001House Banks

H. bank Cntry Bank key

HSBA1 US 500 200 10

HSBA2 US 600 300 10. . . . . . . . .

Bank Directory

House bank data ______________ Bank country USBank key 600 300 10

Address ______________ Bank ___ Region ___

Street ___ City ___

Control data ______________ Swift code ___ Bank group ___ Postal giro off. ___ Bank number ___

House banks for each company code are stored under a freely definable ID (maximum five characters).

All details of the house banks are managed in the bank directory.



© SAP AG

Bank Accounts

Comp any code 0001Com pany code 0001

Bank accounts Bank account dataHouse bank Acct ID Text ...

CITI 1 CHECK chck acct Bank account 12345678CITI 1 USD USD acct Currency ___ CITI 2 GIRO crrt acct Control key ___ . . . . . . . . . G/L account ___

. . .

House bank belonging to itHouse bank belonging to it

G/L account Bank directory

Giro account House bank 1 House bank date

Company code 0001 Bank countryBank key

House bank CITI 2 Address _____________ . . .

B ank account key G IRO C ontrol _____________ . . .

The company code bank accounts are stored under an account ID for the house banks that you define.

A G/L master record is created for each bank account.

You can store the house bank key and account ID in the bank account master record.

If you maintain currency accounts, the currency key in the G/L master record must be the same as theforeign exchange of the currency account.

During bank correspondence, the system uses the bank ID and account ID to obtain the addressinformation from the bank directory.



© SAP AG

Documents: Value Date

Edit fieldEdit field

statusstatus

Master data G/L accounts Field status group . . .Master data G/L accounts Field status group . . .

FStV Field status

0001 G0002 Bank:

Payment trans. Req. Opt.

Value date XX:

CC . . . Propose value date

0001 XX

::

Environment Company code value dates

The field status and additional account assignment are entered per account group.

Bank postings are scheduled by value date.You can have the system automatically propose the current date as the value date.



© SAP AG

Planning Levels

Master data G/L account Planning levelsMaster data G/L account Planning levels

Source Description _______________________________

BNK Bank-related accountingPSK Subledger accounting

Level . . . Source Short text Long text________________________________________________________

CAA BNK Advice Payt advice (confirmed)UAA BNK Advice Payt advice (unconfirmed)B1B1 BNK Check paid Checks payableDiDi SUB Planning General planningF0F0 BNK FI banks Bank account posting

:

Planning levels provide information on the type of account transaction and the reason for the

transaction. They are freely definable.

The source symbol is used to check whether data is permitted for the specified level in the cashmanagement position or in the liquidity forecast.

You can define new planning levels by selecting and copying the standard entries or by entering acompletely new level.



© SAP AG

Cash Management Account Name

CC CM acct G/L acct Bank account . . . _________________________________________________________

FD00 CITI 113100 110113100 . . .:

Cash m anagement position / Group

Account CC 08/01/93 08/02/93 . . . _________________________________________________________

CITI FD00 11 11 . . .:

Structuring Cash managem ent account nameStructuring Cash managem ent account name

In Cash Management, the cash management account name is a mnemonic name that replaces the

account number.

The system uses the cash management account name in all transactions and reports (for example, thecash management position) instead of the account number.

The account name is unique in each company code. Within Cash Management, it enables you todifferentiate the same account numbers in different company codes.



© SAP AG

Grouping Structure

Grouping Type Selection Sum. term Sum. acct _________________________________________________________

BANKS US E ++ **BANKS US G 0000BANKA0 CITIBANK

:

Grouping Heading Line heading _________________________________________________________

BANKS US Bank account activ ity Bank accounts:

Structuring Groupings StructureStructuring Groupings Structure

Grouping terms are used to combine accounts. Their balances can be displayed per account or as an

aggregate.

Grouping terms are freely definable.

The type shows whether levels (E) or groups (G) are displayed. At least one line in each groupingshould be set as type G.

The selection determines which levels (2 digits) or groups (10 digits) are summarized. You can enterindividual values and partially or fully masked values (see 2-9). Groups must be ten characters longand if necessary, entered with leading zeros.

The summarization term specifies whether the individual value is displayed or the cumulative value isdisplayed (see 2-9).

When you create new grouping entries, you have to define headings for them.



© SAP AG

The Grouping Functions

BANKS E ++ **

All levels Summarization term'**' = no particular identifier;

but summ arized

BANKS G ++++++++++ OtherBANKS G 00001131++ American

Group s: identified are Specificsum marized first, then un- identifier;identified summarized

LEVEL E ++

Immediate individualbreakdown; notsummarizedE = levels ( 2 characters)E = levels ( 2 characters)

G = g roup (10 characters)G = group (10 characters)

GroupingGrouping TypeType SelectionSelection Summ arization termSummarization term

Using the grouping term, the system summarizes and aggregates the accounts, or displays them as an

individual value.



© SAP AG

Summary

l Planning levels integrate the cash m anagement positionwith bank-related accounting.

l The cash managem ent account name enables you todifferentiate bank accounts that have the sa me G /Laccount num ber in different charts of accounts.

l Groupings are used to select and structure the datasetyou require.

© SAP AG

Chapter Cash Concentration

l Concentration proposals

l Correspondence for concentration

l Posting procedures





© SAP AG

Cash Concentration

FeaturesFeatures

Proposal per user criteriaProposal per user criteria

Manual online modificationManual online modification

Transfers generatedTransfers generated

Correspondence generatedCorrespondence generated

Cross-company-code concentrationCross-company-code concentration

Position at 10:30Position at 10:30 after concentrationafter concentration

Bank 1 1200 5Bank 2 100 5Bank 3 400 1337Bank 4 -350 3

1350 1350



© SAP AG

Cash Concentration

Company codeCompany code :: FD00

Planned datePlanned date :: 08/04/93

GroupingGrouping :: BANK-ACT

Target accountTarget account :: BANKZ

Target comp. codeTarget comp. code :: FD00 Planning type :Planning type : CL

Concentration proposal

Planning Cash concentrationPlanning Cash concen tration

Create payment advices Payment orders

Round

Change

. . . . . . . . . . .

For cash concentration, you specify:

- the company code to be included in the cash concentration- the planned date (transactions with value dates before or on the date you specify are included)- the grouping of the bank accounts to be included- the target account and company code where surplus and negative balances are concentrated- the planning type (payment advice type for cash concentration)

The payment orders are used for bank correspondence.



© SAP AG

Concentration: Posting Procedures (Example)

2a) 10,00010,000 2a) 10,00010,000 1) 10,00010,000

2b) 10,00010,000 11) 10,00010,000 2b) 10,00010,000

Proposal:Proposal:

(target account BANKZ)(target account BANK Z)

BANKABANKA

BANKZBANKZ10,000.-10,000.-

0.-0.-0.-0.-

10,000.-10,000.-BANKA/CLEAR.BANKA/CLEAR.

BANKZ/CLEAR.BANKZ/CLEAR.

Outcome:Outcome: 2 payment advices2 payment advices

BeforeBefore

concentrationconcentrationAfterAfter

concentrationconcentration

Clearing accou ntClearing account

(T018c)(T018c)

Postings (RFFDBU00)Postings (RFFDBU00)

BANKABANKA BANKA/CLEAR.BANKA/CLEAR.

BANKZBANKZ BANKZ/CLEAR.BANKZ/CLEAR.

1. Posting and archiving the payment advices from cash concentration: RFFDBU00

2. Account statement postings: 2a) BANKA2b) BANKZ

Advantages:1. Payment advices are automatically archived.2. Cash management position: concentration clearing account updated online3. Electronic bank statement: items automatically posted to the bank account,

items cleared in clearing account



© SAP AG

Summary

l The con centration proposal is created automatically. Thesystem o btains the determining factors from tablespecifications (customizing) and the grouping.

l Correspondence is prepared using the proposal.

l The clearing entries also result from the proposal. Theyare required for electronic statement transfer.

© SAP AG

Chapter Customizing Cash Concentration

l Specifications for cash concentration as tablesettings

l Examples of clearing procedures

l Automatic correspondence





© SAP AG

Cash Concentration - Specifications

Intermediate accountsIntermediate accounts

CCCC AccountAccount

FD00FD00 BANKA0BANKA0

FD00FD00 BANKB0BANKB0

:: ::

Details

Intermediate account

Company code FD00Account BANKD0

Minimum balance 5,000Planning minimum 5,000

:

Business volume Cash concentrationBusiness volume Cash concentration

You can define basic settings for cash concentration for each bank account:

- The intermediate account is the account through which cash is concentrated (at a state central bankor regional bank).- The minimum balance ensures base amounts for planning, for example, in outgoing paymentsaccounts.- The planning minimum avoids unnecessary cash concentration procedures.



© SAP AG

Cash Concentration - Settings (Examples)

1. BANKABANKA FD01FD01 BANKABANKA FD01FD01 BANKZBANKZ FD01FD01 CONACT/CONBK=CONACT/CONBK=+ 500.- 500.- TRGACT/BK

2. BANKABANKA FD01FD01 BANKABANKA FD00FD00 BANKZBANKZ FD01FD01 ((INTACT) INTBK) INTBK+ 500.- 500.- 0 ≠≠≠≠ TRGACT/BK

3. BANKABANKA FD01FD01 BANKBBANKB FD01FD01 BANKZBANKZ FD01FD01

a) + 500.- - 200.- INTACT ≠≠≠≠ TRGACT+ 500.- _____ ___ _

+ 300.-b) BANKBBANKB BANKB FD01 INTBKINTBK = TRGBK

+ 300.- 300.-

Ex .Ex. CONACTCONACT CONBKCONBK INTACTINTACT INTBKINTBK TRGACTTRGACT TRGBKTRGBK TABLE 018CTABLE 018C

Example 1: company code internal cash concentration

Example 2: corporate group cash concentration

Example 3: company code internal cash concentration using an intermediate account

CONACT = concentration accountCONBK = concentration bankINTACT = intermediate accountINTBK = intermediate bankTRGACT = target accountTRGBK = target bank



© SAP AG

Cash Concentration - Correspondence

CCCC Company nameCompany name ProgramProgram Form nameForm name

FD00 SAP AG RFFDIS50 F_FDIS_BC_AVIS:

Business volume Forms

Tools

Word processing

Layout set

Confirmation letters for cash concentration are defined as standard forms for each company code.



© SAP AG

Confirmation: Address / Account No.

House bank Cntry Bank key

CITI US 100 200 30:

Address

Bank accounts belonging to it

Acct ID Bank acct Text

CHCK 1234567 . . .:

Bank masterBank master

House bankHouse bank : CITI: CITIBank account keyBank account key : CHCK: CHCK

BNKABNKA

CustomizingCustomizing House banksHouse banks

The system uses the house bank ID in the bank account master record to determine the bank key and

the bank address.

It uses the bank account ID to determine the external account number.



© SAP AG

Chapter Summary

l Table specifications m ake cas h conce ntration practicallyautomatic among com pany codes or even the corporategroup for example.

l The payme nt advice notes the system creates from cashconcentration provide the necessary data forcorrespondence with banks and for planned postingsfrom bank statements.

© SAP AG

Chapter Manual Planning

l Features

l The definition of a payment advice

l Archiving





© SAP AG

Manual Planning

DefinitionDefinition

user definable

Possible ApplicationsPossible Applications

cash receipt advice entry of planning data entry of noted items, adjustment items

MaintenanceMaintenance

automatic (expiration date) or manual expiration separate archiving intervals (archiving categories) extensive selection options to qu ickly find data changes easily made additional information (texts, characteristics, . . .) checks as to planning on Saturday / Sunday



© SAP AG

Creating Payment Advices

Company code:Company code: FD00

Planning type:Planning type: CCA

Planning typePlanning type :: CACA confirmed payment advice ______________________________________________

Value dateValue date :: 08/01/93 Expiration date :date : 08/04/93

Cash management account name:account name: BANKA ______________________________________________

Amount :: 10,000 ______________________________________________

Allocation ::CharacteristicsCharacteristics ::

The entry of planned items (memo records) is split into three sections:

1. planning data (date, group, expiration date)2. amount data (currency, exchange rate, etc.)3. additional information (allocation, characteristics, description, etc.)

- The planning type determines the entry level, the entry screen and the expiration.- The expiration date shows how long the payment advice is included in planning.- The allocation can be freely defined.- The characteristics are also freely definable. They help you quickly identify the records.- The transaction type accelerates the comparison of payment advices and bank statements.



© SAP AG

Editing Payment Advices

SS CCCC ACCT NAMEACCT NAME PTPT DATEDATE AMOUNTAMOUNT ___________________________________________________

X FD00 BANKA AU 08/04/95 10,000.00

TransferTransfer

Archive AArchive A

AU = A rchive AAU = Archive A

Retention prd : 1Retention prd : 1

The payment advices for editing can be changed, archived or reactivated (=transfer).

The wide range of selection options simplifies searching for specific payment advices.

Archived payment advices are no longer included in planning.

The planning type (e.g. UC) determines the archive (e.g. A) in which a payment advice is stored.

Archives are freely definable. They are differentiated by the retention period.

The retention period shows how many months a record remains in the system before it is deleted in areorganization run.



© SAP AG

Payment Advice Journal

Company code : FD00FD00CashCash mgmt position : XX

:

User : Smith :

ExecuteExecute

Journal from 0808/04/9304/93 ____________________________

PaymentPayment advice 1 5,000.005,000.00PaymentPayment advice 2 4,000.004,000.00

____________________________

Total 9,000.009,000.00

Payment A dvice Journal ReportingPayment A dvice Journal Reporting

In the payment advice journal, the system lists payment advices according the selection criteria you

specify.



© SAP AG

Summary

l Payment ad vices anticipate bank statement pos tings.They are also used for adjustment entries.

l When a payment advice is archived or has a utomaticallyexpired, its amoun t is no longer taken into account in y ourplanning.

© SAP AG

Chapter Customizing Manual Planning

l Planning types

l Archiving and automatic expiration

l Archive retention period





© SAP AG

Planning Types

CACA CACA UU XX 0101 +++ . . .+++ . . .

:: :: Confirmed adviceConfirmed advice

Plan.Plan.

typetypeLevelLevel Archiv.Archiv.

cat.cat.Auto.Auto.

exp.exp.NumberNumber

rangerange. . . + . . . 1. . . + . . . 1

Planning type textPlanning type text

Structuring Manual planningStructuring Manual planning

The planning type or payment advice type is freely definable. It specifies the additional characteristics

of the payment advice (level, archiving category, expiration date, number range and field selection).

The level enables you to make a qualitative analysis about the value of a planned item. The systemchecks the level.

The archiving category determines how long a manually planned item remains in the archive before itis reorganized (see 3-4).

The option “Automatic expiration” indicates whether memo records of a planning type become invalidautomatically (“X”) after they reach the expiration date or whether they become invalid when they arearchived.

The number range controls number assignment for memo records.

The field status definition is used to control which fields are ready for input.



© SAP AG

Archive / Automatic Expiration

Planningtype

Archiv.category

Valuedate

fieldprotect.

manuallyentered

notentered

Reorg.Expiration date

AA A 01/25/96 X 01/26/96 1)

AB 01/25/96 X 01/26/96 2)

AC A 01/25/96 X (01/25/96) 3)

AD 01/25/96 4)

1) If the CPU date is after the expiration date, the payment advice is no longer included in the cash

management position. It can then be archived. A reorganization can be made

a) after the expiration date runs out or

b) after the archive retention period runs out.

2) Same as 1)Archiving is not possible. Reorganization is carried out after the expiration date runs out.

3) Same as 1)The expiration date is automatically set as the value date.

4) The payment advice is effective until 12/31/9999 (expiration date set internally).



© SAP AG

Archive: Retention Period

A 2

B 5

:

ArchivingArchiving

categorycategoryRetentionRetention

periodperiod

Structuring Retention period ArchiveStructuring Retention period Archive

The archiving category is freely definable.

The retention period is specified as months.



© SAP AG

Summary

l Planning types represent the probability of cash receipt orcash disbursement that you plan.

l The values of paym ent advices are eliminated byarchiving or deleting the payment advices after the actualposting has been made.

© SAP AG

Chapter Customizing Manual Planning

l Planning types

l Archiving and automatic expiration

l Archive retention period





© SAP AG

Planning Types

CACA CACA UU XX 0101 +++ . . .+++ . . .

:: :: Confirmed adviceConfirmed advice

Plan.Plan.

typetypeLevelLevel Archiv.Archiv.

cat.cat.Auto.Auto.

exp.exp.NumberNumber

rangerange. . . + . . . 1. . . + . . . 1

Planning type textPlanning type text

Structuring Manual planningStructuring Manual planning

The planning type or payment advice type is freely definable. It specifies the additional characteristics

of the payment advice (level, archiving category, expiration date, number range and field selection).

The level enables you to make a qualitative analysis about the value of a planned item. The systemchecks the level.

The archiving category determines how long a manually planned item remains in the archive before itis reorganized (see 3-4).

The option “Automatic expiration” indicates whether memo records of a planning type become invalidautomatically (“X”) after they reach the expiration date or whether they become invalid when they arearchived.

The number range controls number assignment for memo records.

The field status definition is used to control which fields are ready for input.



© SAP AG

Archive / Automatic Expiration

Planningtype

Archiv.category

Valuedate

fieldprotect.

manuallyentered

notentered

Reorg.Expiration date

AA A 01/25/96 X 01/26/96 1)

AB 01/25/96 X 01/26/96 2)

AC A 01/25/96 X (01/25/96) 3)

AD 01/25/96 4)

1) If the CPU date is after the expiration date, the payment advice is no longer included in the cash

management position. It can then be archived. A reorganization can be made

a) after the expiration date runs out or

b) after the archive retention period runs out.

2) Same as 1)Archiving is not possible. Reorganization is carried out after the expiration date runs out.

3) Same as 1)The expiration date is automatically set as the value date.

4) The payment advice is effective until 12/31/9999 (expiration date set internally).



© SAP AG

Archive: Retention Period

A 2

B 5

:

ArchivingArchiving

categorycategoryRetentionRetention

periodperiod

Structuring Retention period ArchiveStructuring Retention period Archive

The archiving category is freely definable.

The retention period is specified as months.



© SAP AG

Summary

l Planning types represent the probability of cash receipt orcash disbursement that you plan.

l The values of paym ent advices are eliminated byarchiving or deleting the payment advices after the actualposting has been made.

© SAP AG

Chapter Customizing Check Deposit

l Internal transactions

l External transactions

l Posting

l Screen temp lates





© SAP AG

Transactions

PostingPosting

Int. trans. 0003Int. trans. 0003

DebitDebit 4040 BANKBANK Bank acctBank acct

CreditCredit 5050 Cash rec.Cash rec.

Doc. typeDoc. type SASA

. . .. . .

AllocateAllocate TransactionsTransactions

TransTrans Int transInt trans Acct modAcct mod Tran val dte . . .Tran val dte . . .

CH KCHK 00030003

::

Internal transactionsInternal transactions

Int trans.Int trans. TextText

::

00030003 Check depositCheck deposit

::

Business volume Check depositBusiness volume Check deposit

Internal transactions (standard) represent typical bank postings. They are freely definable.

When you allocate the internal transaction to a transaction name, you can then also post the internaltransaction in check deposit. The transaction name is freely definable.

Transaction value date: name of the rule for determining the value date from the posting date (e.g.posting date + 2 days). You define the rule with the bank terms.

The system uses the internal transaction to determine the information necessary for posting (postingkeys, accounts, document type).



© SAP AG

Posting and Account Determination

PostingPosting

GotoGoto AccountsAccounts

::Acct symbol . . .Acct symbol . . . CurrencyCurrency G/L accountG/L account

INCMING CHCKINCMING CHCK ++ ++++++++08++++++++08INCMING CHCKINCMING CHCK USDUSD ++++++++19++++++++19CHCK CLEARNGCHCK CLEARNG ++ ++++++++17++++++++17

::

Business volume Check DepositBusiness volume Check Deposit

CompComp

CompComp

Internal transactionInternal transaction 00030003

Posting areaPosting area 11

DebitDebit 40 INCMING CHCK

CreditCredit 50 CHCK CLRING

Document typeDocument type SA Posting typePosting type 1

Internal transaction 0003Internal transaction 0003

Posting areaPosting area 22

DebitDebit 40 CHCK CLRING

CreditCredit

Document typeDocument type DZ Posting typePosting type 8

The system uses the posting area to determine whether it should post the items to the general ledger

(1) or subledger (2).

The G/L accounts are found using the account symbols (INCOMING CHECK).

Partially masked entries refer to the clearing account that belongs to the G/L account.

The system uses the entry in the “Currency” field to send checks in foreign currency to the requiredforeign currency account.

Select the compression indicator to have the system post the checks as a total rather than individually.

The posting type determines the posting rules (e.g. G/L posting, subledger posting).

A posting key and account is not entered for posting area 2 (subledger), since the data required forclearing the item is obtained from the check (issuer, document number, etc.).



© SAP AG

Simulating the Postings

Posting Goto SimulationPosting Goto Simulation

::Internal transactionInternal transaction 0003Posting areaPosting area 1

::

CurrencyCurrency USD

Acct to be replacedAcct to be replaced 113100

SimulateSimulate

Debit Credit

::G/L accountG/L account 113108 G/L accountG/L account 113109Acct symbolAcct symbol Incmng chck Acct symbolAcct symbol Check clearing

::

By simulating the postings, you can test the effects of postings on the new bank accounts that you

create.

Account to be replaced: Enter the (new) bank account you want to test.



© SAP AG

Creating Screen Variants

Business volume Specifications for check depositBusiness volume Specifications for check deposit

Maintain variantsMaintain variants

VariantVariant VAR1VAR1DescriptionDescription Variant 1Variant 1

Number of linesNumber of lines 11

ContinueContinue

::Fields of the variantFields of the variantColumn Offset Current fields Possible fields

11 33 AmountAmount AmountAmount22 1818 Customer matchcodeCustomer matchcode 13-digit check number13-digit check number:: ::

The fields required for checks entry are selected in the order you want them displayed on the screen.

To do this, place the cursor on a possible field, and double click on the field or select it using the menuoption.



© SAP AG

Summary

l The allocation of internal transactions to externaltransactions facilitates account determination.

l The po sting type option triggers the postings.

l You can set up screen templates with selection fieldsaccording to your requirements.

© SAP AG

Chapter Bank Statement: Manual Entry

l Technical procedure

l Entry procedure

l Selection of o pen customer items





© SAP AG

Manual Bank Statement: Procedure

Bank statementBank statement Manual entryManual entry TemporaryTemporary

datasetdataset

GeneralGeneralledgerledger

documentsdocuments

SubledgerSubledger

documentsdocuments



© SAP AG

Entering the Bank Statement

Start variantStart variant :: SAP1SAP1

Cust. matchcode IDCust. matchcode ID :: DD

Vendor matchcode ID:Vendor matchcode ID: KK

Processing typeProcessing type :: 11

Int. bank determin.Int. bank determin. :: XX

SettingsSettings SpecificationsSpecifications

The start variant specifies the account assignment variant for the individual postings.

The matchcode ID and the further processing type determine whether the postings in the batch inputsession are made online or in the background.

If you select internal bank determination, the system identifies the bank using the internalidentification (house bank, bank account key) you specify on the next screen.



© SAP AG

Processing the Bank Statement (1):Bank and Payment Advices

::House bankHouse bank :: CITIBank account IDBank account ID :: USD

::

ControlControl::

Selection of payment advicesSelection of payment advicesPlanning typePlanning type :: ABAB

Statement dateStatement date ::

Planning date fromPlanning date from :: Planning date to :Planning date to :::

Further processingFurther processing

Bank posting sessionBank pos ting session::

House bank or bank account ID: Here you enter the cash management account name (for internal

bankdetermination).

Selection of payment advices: You can select the payment advices entered for the bankstatement

using various criteria.

You can also enter the session names for further processing.



© SAP AG

Processing the Bank Statement (2):Bank Document / Selection

Bank acct 548333Bank acct 548333 G/L account 113100G/L account 113100 C.code FD00C.code FD00 CurrencyCurrency USDUS D

Bank statement itemsBank statement items

TranTran Value dateValue date AmountAmount Doc. no.Doc. no. Cust MCCust MC AllocationAllocation

11 12/23/9312/23/93 1000010000 18000000001800000000 cust.cust. HugoHugo

::

Outgoing invoice

Doc. no. 1800000000

Master Master

Sort field: cust. Sort field: cust

Outgoing invoice Outgoing invoice

:Amount: Allocation: Hugo

You use the transaction to control which type of bank posting you are processing, for example, credit

memo, wire transfer or check payment. Transaction types are freely definable in customizing.

Individual documents are selected in subledger accounting by using certain criteria (e.g. documentnumber) or by using the matchcode (account determination) and additional information (documentdetermination) such as the amount, allocation, posting date or document date. The selection fields thesystem displays depend on the account assignment variant and interpretation algorithm you are using.



© SAP AG

Processing the Bank Statement (3):Further Processing

: : SpecificationsPost Planning types

Deletion indicatorDisplayOverview

:

Temporary datasetFEBFEB

SettingsSettingsBank statementBank statement EditEdit

Bank statements you enter can be displayed, changed or deleted before posting.

The “Post” option generates the batch input sessions required for the bank account postings andsubledger account postings (postings cannot be made twice).



© SAP AG

Summary

l The program for ma nual bank statement entry generatesthe postings for the bank accounts and subledgeraccounts.

l Account determination and open item selection can becarried out using various criteria.

© SAP AG

Chapter Customizing the M anual Bank Statement

l Allocating statement transactions to internaltransactions

l Account determination using internal transactions





© SAP AG

Transactions


Int. transInt. trans TextText

00010001 cash receipt via interim accountcash receipt via interim ac count

00020002 outgoing checkoutgoing check

::

Business volume Manual bank statementManual bank statement


TransTrans Int. transInt. trans Acct mod.Acct mod. AlgthmAlgthm TextText

00010001 00010001 Cash receiptCash receipt

PAYTPAYT 00020002 Check paymentCheck payment

::


You have to assign a transaction name (freely definable) to the internal transaction. The transactionname is used during statement entry. The system uses the internal transactions to find the informationrequired for posting (posting rules and account determination rules).

Using account modification, you can have the system post to accounts that differ from the standardaccount assignment.

The interpretation algorithm specifies which fields the system evaluates for the clearing procedure orfor finding the documents.



© SAP AG

Postings


00010001 Cash receipt via interim accountCash receipt via interim account

::

Business volume Manual bank statement PostingBusiness volume Manual bank statement Posting

PostingPosting

Internal transactionInternal transaction 00010001Posting areaPosting area 11DebitDebit 40 BANK Bank accountBank accountCreditCredit 50 CASH REC Cash receipt acctCash receipt acct


Internal transactionInternal transaction 00010001Posting areaPosting area 22DebitDebit 40 CASH REC Cash receipt acctCash receipt acctCreditCreditDocument typeDocument type DZ Posting typePosting type 8

The posting rules and other necessary information (posting keys, accounts, etc.) are found using the

internal transactions.

The posting area determines whether the item is posted to the general ledger (1) or subledger (2).

Accounts are specified by using account symbols. The system uses these symbols to determine theaccount number.Advantage: New table entries are not required for the same type of posting at different banks.

The posting type specifies the posting rules (G/L postings, subledger postings, clearing entries, etc.).

One posting key and account is not entered for posting area 2 (subledger), since the data required forclearing the item is obtained from the statement (document number, matchcode, amount, allocationetc.).



© SAP AG


Customizing: Posting - Goto - Accounts

Application 0001 Bank statem en t / check d epositChart of accts CAUS

Acct symbolAcct symbol Acct modificationAcct modification CurrencyCurrency G/L accountG/L account

BANK + + ++++++++++BANK + USD ++++++++19CASHREC + + ++++++++0900 + + ++++++++++01 + + 479000

:

Bank accountsBank statement

CITICHCK

:

House bank : CITIAccount ID : GIRO

:

Bank account : 91005181G/L account : 113100

:

Business volume Manual bank statement Posting AccountsBusiness volume Manual bank statement Posting Accounts

Rules for Account Determination:

1. The account symbol determines which G/L account the system posts to.

2. The system determines the G/L account by using the G/L account number (fully masked entry) thatyou

assign to an account ID.

3. Partially masked entries refer to the clearing account that belongs to the G/L account.

4. The system uses the entry in the “Currency” field to post checks in foreign currency to the requiredforeign currency account

5. Specifications in the account modification column are user-definable. They are required by theuser exit

for company-specific posting transactions, for example, for breaking down account transactionsaccording to accounting clerks, incoming or outgoing payments; or for selecting transactions by

deliverynote number.



© SAP AG

Summary

l The transactions on the bank statement are allocated tointernal transactions. These internal transactions controlaccount determination and the procedure for findingposting information.

© SAP AG

Chapter Customizing the M anual Bank Statement

l Allocating statement transactions to internaltransactions

l Account determination using internal transactions





© SAP AG

Transactions



00010001 cash receipt via interim accountcash receipt via interim ac count

00020002 outgoing checkoutgoing check

::

Business volume Manual bank statementManual bank statement


TransTrans Int. transInt. trans Acct mod.Acct mod. AlgthmAlgthm TextText

00010001 00010001 Cash receiptCash receipt

PAYTPAYT 00020002 Check paymentCheck payment

::


You have to assign a transaction name (freely definable) to the internal transaction. The transactionname is used during statement entry. The system uses the internal transactions to find the informationrequired for posting (posting rules and account determination rules).

Using account modification, you can have the system post to accounts that differ from the standardaccount assignment.

The interpretation algorithm specifies which fields the system evaluates for the clearing procedure orfor finding the documents.



© SAP AG

Postings


00010001 Cash receipt via interim accountCash receipt via interim account

::

Business volume Manual bank statement PostingBusiness volume Manual bank statement Posting

PostingPosting

Internal transactionInternal transaction 00010001Posting areaPosting area 11DebitDebit 40 BANK Bank accountBank accountCreditCredit 50 CASH REC Cash receipt acctCash receipt acct


Internal transactionInternal transaction 00010001Posting areaPosting area 22DebitDebit 40 CASH REC Cash receipt acctCash receipt acctCreditCreditDocument typeDocument type DZ Posting typePosting type 8

The posting rules and other necessary information (posting keys, accounts, etc.) are found using the

internal transactions.

The posting area determines whether the item is posted to the general ledger (1) or subledger (2).

Accounts are specified by using account symbols. The system uses these symbols to determine theaccount number.Advantage: New table entries are not required for the same type of posting at different banks.

The posting type specifies the posting rules (G/L postings, subledger postings, clearing entries, etc.).

One posting key and account is not entered for posting area 2 (subledger), since the data required forclearing the item is obtained from the statement (document number, matchcode, amount, allocationetc.).



© SAP AG


Customizing: Posting - Goto - Accounts

Application 0001 Bank statem en t / check d epositChart of accts CAUS

Acct symbolAcct symbol Acct modificationAcct modification CurrencyCurrency G/L accountG/L account

BANK + + ++++++++++BANK + USD ++++++++19CASHREC + + ++++++++0900 + + ++++++++++01 + + 479000

:

Bank accountsBank statement

CITICHCK

:

House bank : CITIAccount ID : GIRO

:

Bank account : 91005181G/L account : 113100

:

Business volume Manual bank statement Posting AccountsBusiness volume Manual bank statement Posting Accounts

Rules for Account Determination:

1. The account symbol determines which G/L account the system posts to.

2. The system determines the G/L account by using the G/L account number (fully masked entry) thatyou

assign to an account ID.

3. Partially masked entries refer to the clearing account that belongs to the G/L account.

4. The system uses the entry in the “Currency” field to post checks in foreign currency to the requiredforeign currency account

5. Specifications in the account modification column are user-definable. They are required by theuser exit

for company-specific posting transactions, for example, for breaking down account transactionsaccording to accounting clerks, incoming or outgoing payments; or for selecting transactions by

deliverynote number.



© SAP AG

Summary

l The transactions on the bank statement are allocated tointernal transactions. These internal transactions controlaccount determination and the procedure for findingposting information.

© SAP AG

Chapter Bank Statement: Electronic Entry

l Technical procedure

l Interpreting the note to payee

l Entry

l Postprocessing





© SAP AG

Electronic Bank Statement: Features (1)

Postings can be made immediately (call transaction).Postings can be made immediately (call transaction).

Bank account session and sub ledger session can be executedBank account session and subledger session can be executedtogether or separately.together or separately.

Note to payee fields can be interpreted via docum ent numberNote to payee fields can be interpreted via docum ent numberor reference document number for the clearing procedureor reference docum ent number for the clearing procedure(standard).(standard).

Posting rules and account determination are freely definablePosting rules and account determination are freely definable

in customizing.in customizing.

Batch input sessions are generated (a session for bankBatch input sessions are generated (a session for bankaccounts and subledger accounts for each bank statement).accounts and subledger accounts for each bank statement).

Data (MultiCash or BCS ) are imported into a tem porary datasetData (MultiCash or BCS) are imp orted into a temporary datasetin the SAP System.in the SAP System.



© SAP AG

ll Number ranges can be specified for interpretation.Number ranges can be specified for interpretation.

ll Customer-specific item identification (customer master) canCustomer-specific item identification (customer master) canbe set up using se lection rules.be set up using selection rules.

ll Posting entries can be broken down (i.e. by A/R clerk) by usingPosting entries can be broken down (i.e. by A/R clerk) by usingthe bundling option.the bundling option.

ll User exits can be created for spec ific interpretation of note toUser ex its can be created for spec ific interpretation of note topayee fields:payee fields:-- to generate clearing informationto generate clearing information-- to alter accoun t determinationto alter account determination-- to distribute transactions to several sessions per bankto distribute transactions to several sessions per bank

statement and posting areastatement and posting area

ll Posting proposals that cannot be cleared can be subsequentlyPosting proposals that cannot be cleared can be subsequently

processed directly or in the batch input session.processed directly or in the batch input session.ll Lists:Lists:

-- bank statementbank statement-- posting proposalsposting proposals-- line items that are not usableline items that are not usable-- processing statisticsprocessing s tatistics

Electronic Bank Statement: Features (2)



© SAP AG

BanksBanks

ManualManualbank statementbank statement

Check depositCheck deposit

Area-specificprocessing

Interpretationvia user exit

BankBankdata bufferdata buffer

SubledgerSubledgeraccountingaccounting

Bank-relatedBank-relatedaccountingaccounting

Batch Input

Batch Input

SWIFT MT 940SWIFT MT 940

BACSBACS UKUK

ETEBACETEBAC FF

Fides ARSFides ARS CHCH

MulticashMulticash DD

BC SBCS NLNL

CHCH

AA

CashCashManagementManagement

DirectDirectpostingposting

Electronic Bank Statement - New Formats Supported

BCS: Banking Communication Standard (predefined by banks).

Import procedure:FTAM (not coded), ZVDU (coded). With the bank data, the conversion program (e.g.

MultiCash) generates two files for further processing, a statement file and a line item file(AUSZUG.TXT, UMSATZ.TXT).

SAP information (chart of accounts, company code, internal transactions, etc.) is added to the data inthese files during conversion. The standard program creates two batch input sessions (general ledger,subledger) per account statement. A user exit can carry out your company-specific processingtransactions, for example, sessions for cash inflows and outflows, for clearing entries or for eachaccounting clerk.

The session for “bank postings” should be generated and processed first due to system performance

and processing reasons.



© SAP AG

Interpreting the Note to Payee

BankBankdatadata

bufferbuffer

Bank indexBank index

BNO.:BNO.: XYXYACCT:ACCT: 123123CUST:CUST: custcust

BankBankdatadata

bufferbuffer


ADVICEADVICE

ADVKADVKADVPADVPADVRADVR

Customer

Post-processing

Item notidentifiable /

cannot beposted

Name: . . .. . .

Sel. rule: 001

Customizing

Sel. rule: 001= reference

documentnumber

Postdirectly

Note topayee: 007

Wire transfer. . .

BNO. xy acct

The system determines the payer by using the payer’s bank details (secondary index).

The selection rule from the customer master record specifies which details the customer pays with(e.g. reference document number).

The system searches the lines of the note to payee on the bank statement according to these criteria.

You can have the system read and clear the documents it finds either directly or via batch input.

Immediate posting: If a document cannot be identified or cleared (e.g. underpayment), the systemcreates a payment advice that you can manually process later.



© SAP AG

Electronic Bank Statement

ImportImport

XX Import dataImport data

Elect. bank statement formatElect. bank statement format MM

Statement fileStatement file A:\STATE.TXTA:\STATE.TXT

Line item fileLine item file A:\ITEM.TXTA:\ITEM.TXT

PC uploadPC upload

Post imm ediatelyPost imm ediately Only bank postingsOnly bank postings

Generate batch inputGenerate batch input 11 Session namesSession names

. . .. . .

Cash mgmt advicesCash mgm t advices 0202 Planning typePlanning type SummarizationSummarization

User exitUser exit

Selection fieldSelection field DOCNODOCNO 1212. . .. . .

BundlingBundling 11. . .. . .

Print bank statementPrint bank statement

Print posting logPrint posting log

To have the system read the data, select the “Import data” option.

Format: ID for the format you require, for example M (MultiCash).

Statement file and line item file: Enter the file names including the path name.

The session for bank postings should be generated and processed first due to system performance andprocessing reasons. Items cannot be posted twice.

Logs are helpful during program configuration.

Post immediately: posting via call transaction

Cash management advices: A payment advice is created for each line item (only during batch input).

Summarization: One payment advice is created for all line items with the same value

date. Bundling: Items are combined according to particular criteria (e.g. accounting

clerk).



© SAP AG

Electronic Bank Statement: Printout

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------CitiBankAccount holder: Alford Inc.Bank no.: 66010075 Account number: 179097-756 Statement number: 00051

Currency: USD Statement date: 09/24/1993

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

No. Value Pstng Note to payee Posting text BTC Journal Amountdate date

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

B eginning ba lan ce 3 3,9 00 .0 0-----------------------------------------------

00001 09/24 09/24 CHECK DEPOSIT 070 30,000.0000002 09/24 09/24 Document 1500000285 004 - 3,300.0000003 09/24 09/24 Your invoice 1710000865 CREDIT MEMO 0XX 207,000.00

Doc. date 04/03/9300004 09/24 09/24 Check 1500000282 001 - 600.0000005 09/24 09/24 Inv. from 06/03/93 051 10,700.00

Inv. no. 17100008 111cash discount 3 %

00006 09/24 09/24 Inv. from 06/12/93 051 1,000,000,000.00---------------------------------------------Debit total 0.00Credit total 0.00---------------------------------------------Ending balance 1,000,277,700.00

Unlike the paper statement, the electronic statement does not separate statements and transaction

explanations.

If the selection field is set to ' BELNR' or ' XBELNR', the system searches for- the document number or external document number in the “Note to payee” field when incoming

payments have been made, or- the document number when outgoing payments have been made.



© SAP AG

Company code FD00

House bank CITI

Account ID CHCK

. . .

Statement status 1 All line items

Bundle number

. . .

Posting area 2 Subledger

Posting method A Display all screens

Electronic Bank Statement: Postprocessing

Transactions the system cannot identify or post are manually processed afterwards.

For the required bank statement, you select:

all line items or only those not posted,

the bundling number,

the G/L postings or the subledger postings,

whether all screens or only incorrect screens are displayed.



© SAP AG

Important Notes

Generate / process the session with bankGenerate / process the session with bankaccount postings first (performance)!account postings first (performance)!

Transactions cannot be posted twiceTransactions cannot be posted twice(status management).(status management).

Once a transaction is in a sess ion, it isOnce a transaction is in a session, it is

considered to be posted.considered to be posted.



© SAP AG

Summary

l The electronic bank statement generates the postings forbank accounts and subledger accounts via batch input ordirectly.

l Customers are identified by interpreting the note to payeeor the details of the sending bank.

l Open items are identified using the docum ent number orselection rules (customer mas ter).

© SAP AG

Chapter Customizing the Electronic BankStatement

l External transactions (BTC) and internal transactions

l Interpretation of the note to payee





© SAP AG

Transactions

Allocate Banks Internal transactions

Bank key Bank acct Trans. type

100 200 30 548333 MT940100 200 30 888333 MT940300 500 00 6097612 MT940622 512 50 + MT940

. . .

Int trans. Text

1000 Credit memo2000 Debit memo

. . .

Business volume Electronic bank statement Internal transactionsBusiness volume Electronic bank statement Internal transactions

Allocate Transactions Posting Ext. trans. Sign Int trans. Int algthm Internal transaction: 1000

051 + 1000 1 Posting rule051 - 2000 1 Account assignment052 + 1000 1

. . .

Recommended customizing procedure:

1.) Define the transaction (user-definable). Transaction types are used to convert typical banktransactions (external transactions) into system-specific internal transactions.

2.) Define the internal transactions. The system use these transactions to determine the posting rules.(Usually the internal transactions for the manual bank statement can be used.)

3.) Allocate the external transactions (e.g. outgoing payments) to the internal transactions (Note the+/- sign!).

Advantage: The same transaction can be used for several external transactions from differentbanks.

4.) The system posts to the (internal) bank accounts and subledger accounts by using the internaltransactions and the posting and account determination rules stored for these transactions (see

manual bank statement in customizing).



© SAP AG


MT940 051 1000

MT940 Wire transfer 1000

:

Bank statementBank statementCustomizingCustomizing


Trans. typeTrans. type Ext. trans.Ext. trans. . . .. . . Int. trans.Int. trans.::

BTCBTC :: 051051

. . .. . .

Posting textPosting text :: Wire transferWire transfer

::

Electronic bank statement Posting and bank allocationElectronic bank statement Posting and bank allocation

The system performs a three-step search on the bank statement in order to supply the internal

transactions with the information (external transaction) required for the posting rules and accountdetermination.

Search Hierarchy

1. Business transaction code (BTC)If this field is not specified or is specified with “0XX”. . .

2. Posting text

3. If there is no entry here, the transaction cannot be posted (subledger).But if an internal transaction cannot be found for an external transaction, a message to maintain the

appropriate table is output in the log.



© SAP AG

Clearing Open Items

OI 1500000285

OI 17100008111

Bank statement

:Note to payee . . .Check 1500000285Inv. no. 17100008111

:

Vendor

Customer

The system requires the following bank statement information for the standard program to find and

clear an open item in the subleger (subledger session):

Customer clearing Vendor clearing

1. document number or 1. document number or 2. reference document number or 2. amount3. amount



© SAP AG

Chapter Summary

l The business transaction code d etermines the postingprocedure and account determination within bank-relatedaccounting.

l The interpretation of the note to payee specifies

a) the account determination and

b) document determination within subledger accounting.

l Account determination (subledger) can also be m ade byinterpreting the details of the sending bank.

© SAP AG

Chapter Liquidity Forecast

l Projecting collections and disbursements from FI,SD and MM

l Individual planning and planned items

l Automatic maintenance (reversal, document change)

l Customer payment history

l Grouping by planning groups

l Additional information (e.g. blocked items, specialtransactions)

l Currency exposure

l Variable breakdown of planned items (days, weeks,months)





© SAP AG

Integration: Liquidity Forecast

FIFI FIFI

Planning andanalyses

Financial AccountingFinancial Accounting Cash ManagementCash Management

Accounts receivableAccounts receivable Liquidity forecastLiquidity forecast

Payment historyPayment history

SalesSales PurchasingPurchasing

customer orderscustomer orders purchase orderspurchase orders

SDSD MMMM



© SAP AG

Requirement I: Planning Groups

France (E4)France (E4)

OtherOtherforeign(E5)foreign(E5)Cash discountCash discount

method (E2)method (E2)Bank collectionBank collection

(E1)(E1)NetNetmethod (E3)method (E3)

FranceFrance

FI =FI =posting /salesposting /sales

FW =FW =bills of exchangebills of exchange

XA =XA =block reason 'A'block reason 'A'

Groups :Groups :- custom ers with

same history- of particular interest

Levels:Levels:balance specificationsby levels

CustomersCustomers

Like vendors, customers are divided into planning groups

Criteria are user-definable, for example, for net payment method.

Levels provide information about the type of account transaction.



© SAP AG

Account numberAccount number

CustCust1

Company codeCompany code FD00

::

Planning group E2 DomesticPlanning group E2 Domestic

Requirement II: Master Record

Ready for entryReady for entry

A1 . . . . . .. .

E2 Domesticcustomer

. . .

You have to enter a defined planning group in the master record in order for the system to transfer data

between the customer/vendor accounts and the liquidity forecast.



© SAP AG

Liquidity Forecast

_______________________________________

Liquidity forecast . . . . . XX:

Grouping . . . . . . . . . . . . . . . TOTALTOTALDisplay as of . . . . . . . . . . . . . . . “Date”“Date”

:

:Display type . . . . . . . . . . . . . . . . KVKV

Company code . . . . . . . . . . . . . FD00FD00

The liquidity forecast menus offer the same functionality as in the menus for the cash management

position.

Special feature: Display type CD (cumulative display according to distribution)DD (delta display; inflows and outflows by distribution)

(see 16-3)



© SAP AG

Paym ent History - Planning Date

Account numberAccount number Cust1Cust1

Company codeCompany code FD00FD00

Rec pmnt hist.: XRec pmnt hist.: X

X : planning dateplanning date = Csh dis.1 +/- pmnt historyCsh dis.1 +/- pmnt history

if customer usually takesif customer usually takescash discountcash discount

Net +/- payment historyNet +/- payment history

if customer usually makesif customer usually makesnet paymentnet payment

'_' : planning date =planning date = cash discount 1 due datecash discount 1 due date

The system takes account of the customer payment history (cash discount) when determining the

planning date if you select the “Rec pmnt hist.” field in the customer master record (record paymenthistory).

The last three periods in which payments have been made are taken into account (short term paymenthistory).



© SAP AG

Outstanding Checks and Bills of Exchange

Chart of accounts :Chart of accounts : GKRGKR

G/L accountG/L account :: checks payablechecks payable

::

The program for outstanding debts lists balances, line items, and float times of checks and bills of

exchange.



© SAP AG

Integration : Paym ent Blocking Indicator

Payment blocking indicator Ain the master record

Vendor / customerVendor / customer

(change not automatic)

Payment blocking indicator A/Rin the line item

X + pay. block indicatorX + pay. block indicator

FI document entryFI document entry


in documentin document

XA

XR

Automatic maintenance: Items are automatically transferred to the block level after the payment

blocking indicator is set.

Once you set a block in the master record, it applies to all documents posted thereafter.



© SAP AG

Integration : Special Transactions

Master recordMaster recordvalidationvalidation

Special G/L level

Transaction typeTransaction type

ValidationValidation

FI document entryFI document entry


in the documentin the document

F0

FF/FW

Line items resulting from special transactions are transferred to a special level.



© SAP AG

Features

Projecting receipts and disbursements from FI, SD and M M

Individual planning and planned items

Automatic maintenance (reversal, document change)

Custom er payment behavior included in the forecast

Grouping by planning groups

Additional information (blocked items, special transactions)

Currency exposu re taken into account

Variable breakdown of planned items (days, weeks, months)

Liquidity ForecastLiquidity Forecast



© SAP AG

Chapter Summary

l The liquidity forecast is used to m onitor incoming an doutgoing payments. All documents posted in subledgeraccounting are aggregated on line.

l Payment history and document changes a re also takeninto account on line.

l The cash managem ent position and liquidity forecastproduce the total liquidity of a com pany.

© SAP AG

Chapter Customizing the Liquidity Forecast

l Field selection and configuration

l Display types

l Screen control

l Levels (blocked)

l Integrating special transactions

l Integrating MM and SD





© SAP AG

Master Data Subledger Accounts

Change customer / vendorChange customer / vendor

Customer / Vendor ControlsCustomer / Vendor Controls

AccountAccountgroupgroup

Transaction-dependentTransaction-dependentfield selectionfield selection

Company-code-dependentCompany-code-dependentfield selectionfield selection

You can control the field status on particular screens directly in the Cash Management IMG. You can

do this at different levels:

- for all customers or vendors of an account group or a company code

- for all customers or vendors that are created or changed in accounting (sales, centrally).



© SAP AG

LevelLevel +/- sign+/- sign DaysDays PercentagePercentage

UAUA

UAUA

UAUANINI

NINININI

NINI

NINI

00

11

1100

1122

11

22

++

--

++++

--

--

5050

3030

20204040

20201010

2020

1010

Cash m anagement positionCash m anagement position

Liquidity forecastLiquidity forecast

Display type :Display type : C / DC / D......

......

Structuring Distribution functionStructuring Distribution function

Percentage Distribution

When you select the cumulative and distributed display as well as the display distributed by inflows

and outflows, the system will distribute memo records and summary records for each level according tothe specifications that you can define.

Items are distributed before or after the determined value date using the +/- signs, days and percentagesthat you specify.



© SAP AG

Planning Data: Manual Definition

Plng groupPlng group LevelLevel SCnSCn Short textShort text DescriptionDescription

A1 F1 X D. cust. Domestic customersE1 F1 High risk High risk customers:

Document entryDocument entry

CustomerCustomerCC: FD00CC: FD00 ExtrasExtras

:: Additional dataAdditional data:: Planning group E1Planning group E1:: ::

Planning datePlanning date 08/04/9308/04/93Planning levelPlanning level F1F1::

Master data Subledger accountsMaster data Subledger accounts

Planning groups differentiate customers and vendors according to particular characteristics (customer

in France), behavior (takes cash discount) or risks (credit rating). They are user-definable and areentered in the “Planning group” field in the customer or vendor master record.

If you select the “Screen control” option (SCn), the “Planning date” and “Planning level” fields areready for input when documents are entered or changed. You can overwrite the values the systemautomatically defaults for these fields.



© SAP AG

Blocked Documents

F1 XX Released for payt

F1 A XA Payment blocked

F1 R XR Invoice verification:

Level Block ind. Blocked level . . . Description

Structuring Main tain b locked leve ls

You can allocate blocked levels or block indicators to the standard levels.

The system then assigns the amount to the blocked level when the posting is made with a paymentblock. If the document is unblocked, the amount is transferred to the standard level (see 8-9).



© SAP AG

Special G/L Transactions

Structuring Special G/L transaction levels Custom er/VendorStructuring Special G/L transaction levels Custom er/Vendor

Special G/L levelsSpecial G/L levels

Special G/LSpecial G/L

Acct typeAcct type Sp.G/LSp.G/L Sp.G/L indSp.G/L ind Description . . .Description . . .

DD FF Pmt reqPmt req Down payment requestDown payment requestDD WW Bill/exchBill/exch Bill of exchange receivableBill of exchange receivable::

ChooseChoose

Special G/L indicatorSpecial G/L indicator WW

Recon. acctRecon. acct Special G/L acctSpecial G/L acct Planning levelPlanning level

140000140000 125000125000 FWFW::

Planning levelsPlanning levels

LevelLevel SourceSource Short textShort text Long textLong text

FWFW SUBLDGSUBLDG Bill of exchangeBill of exchange::

Special G/L postings can be displayed and monitored in a special level in the liquidity forecast. Two

levels are already defined in the standard system:

- down payment request (FF)

- bill of exchange receivable (FW)

Even if a bill of exchange is used (discounting), it remains in the planning level until the commitment isdeleted.

Note the incoming payment in the bank clearing account in the cash management position. Thediscounted amount of the bill of exchange is displayed in this account until the commitment is deleted.



© SAP AG

Integrating Orders and Purchase Orders

ToolsToolsProduction startupProduction startup CustomizingCustomizing

Update MMUpdate MM :: XX Planning levelPlanning levelUpdate SDUpdate SD :: XX

SourceSource

KFDKFD

FDSRFDSR

MMMM

PurchasePurchase

orderorder EPEP EPEP

SDSD

OrderOrder

InvoiceInvoice

CashCash

discountdiscountTable RWC ATable RWCA

Activate CM: XActivate CM: X

Procedure

1. Maintain the source symbol (MM,SD).

2. Maintain the planning levels (MM,SD).

3. Maintain the logistics levels (2 MM etc.).

4. Select the option to integrate SD.

5. Select the option to integrate MM.



© SAP AG

Integrating Orders and Purchase Orders

LevelLevel

LogisticsLogisticsCodeCode Short textShort text LevelLevel

002002 Purchase orderPurchase order MMMM101101 Sales ordersSales orders SDSD

Subledger accountsSubledger accounts

LevelsLevels

LevelsLevels SourceSource . . .. . .

MMMM MMFMMF

SDSD SDFSDF

SourceSource

SourceSource CM po sit.CM p osit.

MMFMMF

SDFSDF

Purchase orders (MM) and orders (SD) are displayed in special levels within planning.

You can freely define these levels. They require a special source symbol.

The internal code you specify integrates orders and purchase orders into Cash Management.



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Chapter Summary

l Subledger accounting is integrated with CashManagem ent by specifying planning groups in the m asterrecords of subledger accounts.

l You can c hange the planning date that the systemautomatically specifies during do cument entry.

l Down pay ment requests, bills of exchange, purchaseorders, and orders can be integrated online.

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Chapter Customizing Data Transfer andReorganization

l Source symbols

l Data transfer

l Data comparison

l Reorganization





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Cash mgmtCash mgmtpositionposition

LiquidityLiquidityforecastforecast

Tools Set up dataTools Set up data

not on open item basis (line items)not on open item basis (line items) on open item basis (documents)on open item basis (documents)

LC FC

SKC1A SKC1B BSIS BSIK BSID

RFFUEB00RFFUEB00 RFFDKU00RFFDKU00

FDSB FDSR

Transferring Data from Accounts with OpenItems and without Open Items

Data for Cash Management should be set up per batch input (performance).

- You can simulate the data transfer online. When doing this, make as many selections as possible.

- You can transfer data from customer or vendor accounts without making any specifications (onlybatch).

- The system will propose the minimum selections (fiscal year, reporting period, value date) fortransferring accounts (resident) that are not managed on an open item basis. These minimum

selections are required for summarizing the account balances, and can be overwritten.



Data Security

Line items

Summ ary recordsFI

Tools Compare Cash MgmtTools Compare Cash Mgm t