SAP_FI

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SAP FI/CO (Finance and Controlling) Notes

Version: SAP 6.0 ECC

ECC: Enterprise Central Component

SAP FI (Finance): SAP FI supports for external reporting as per their

country legal requirement and prescribed by accounting standards.

Accounting standards are,

1. Indian GAAP (General Accepted Accounting Principles)

2. IFRS (International Financial Reporting Standards)

3. IAS (International Accounting Standards)

4. US GAAP

5. UK GAAP etc

Under SAP FI, we can generate financial statements. Financial

statements consist of Profit and Loss Account, Balance Sheet and Cash

Flow Statement

Coverage of SAP FI:

1. General Ledger Accounting

2. Account Payables

3. Accounts Receivables

4. Asset Accounting

5. Bank Accounting

6. Taxes (CIN: Country India Version)

a. Excise Duty

b. Central Sales Tax (CST)

c. Local Sales Tax (LST)

d. Value Added Tax (VAT)

e. Service Tax

f. Tax Deduct at Source (TDS) (Extended Withholding Tax)

7. Integrations

a. SAP MM (Materials Management)

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b. SAP SD (Selling and Distribution)

SAP CO (Controlling): Controlling nothing costing/management

accounting. SAP CO supports for internal reporting as per client

requirement. Under SAP CO, we can generate contribution margin

reports, contract margin reports, budgeting, planning and variance

reports

Coverage of SAP CO:

1. Cost Elements

2. Overheads Management

a. Cost Centers

b. Internal Orders

3. Profitability Management

a. Profit Center Accounting

b. Profitability Analysis

4. Product Costing

a. Product Cost Planning

b. Cost Object Controlling (Actual Cost of the Product)

c. Variance (Difference between Actual cost of the product

and product cost planning)

d. SAP PP Integration (Production Planning)

5. New General Ledger Concepts

a. Document Splitting

b. Segment Reporting (As per IFRS)

c. Ledger Groups (Parallel Books of Accounts)

d. CO-FI Integration

ASAP Methodology (Road Map)

ASAP: Accelerated SAP

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ASAP means accelerated SAP. SAP means Systems, Applications and

Products in data processing. Acceleration means speed up the project

Phases in ASAP Road Map:

1. Project Preparation

2. Business Blue Print

3. Realization

4. Finalization

5. Go – Live and Support

Project Preparation:

This is first and initial phase of the project where we start project.

Activities in project preparation-

1. POC (Proof of concept): Implementation partner will give

demonstration on SAP system how SAP system will work as per

client requirement. Ex: Reliance group wants to implement SAP

system. Reliance Company selected WIPRO Company to

implement SAP.

Reliance Company – Client

WIPRO Company – Implementation Partner

2. Project Charter: Project Charter consists of two teams (Reliance company

team and WIPRO company team). Model project charter as follows,

Client Team (Reliance) Implementation Partner Team

(WIPRO)

Project Director Project Director

Delivery Manager Delivery Manager

Project Manager Project Manager

Team Leader Team Leader

Senior Power User Senior Consultant

Power User Consultant

Junior Power User Junior Consultant

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3. Kick off Meeting: This is initial meeting in the project

implementation. This is a interactive meeting between client

team and implementation team

4. Scope of the project: What are the components clients wants to

implement. For ex:

a. SAP FI (Finance)

b. SAP CO (Controlling)

c. SAP MM (Materials Management)

d. SAP SD (Selling and Distribution)

e. SAP PP (Production Planning)

f. SAP HR (Human Resource Management)

g. SAP Quality

h. SAP CRM (Customer Relations Management)

i. SAP SRM (Supply Relations Management)

j. SAP Basis (System Administrator)

k. SAP ABAP (Advanced Business Application Program) etc

5. Time lines of the Project: For each phase of the project, we maintain

deadlines. For ex: Project duration is 1 Year

Phases of SAP implementation Duration of Each Phase

Project Preparation 01.01.2011 – 31.03.2011 (3

Months)

Business Blue Print 01.04.2011 – 30.06.2011 (3

Months)

Realization 01.07.2011 – 31.10.2011 (4

Months)

Finalization 01.11.2011 – 30.11.2011 (1

Month)

Go – Live and Support 01.12.2011 – 31.12.2011 (1

Month)

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Note: Project manager will prepare time lines of project and

allocate work to his subordinates as per time lines

6. AS-IS Document: Client employees will prepare AS – IS

Document. AS-IS Document consists of ‘as it is of their existing

business’. This document will be submitted to implementation

partner team

7. TO-BE Document: This document will be prepared by

implementation partner team based on AS-IS document which is

submitted by Client employees

8. GAP Analysis Document: This document will be prepared by

implementation partner team based on AS-IS document and TO-

BE document. GAP analysis document consists of differences

between AS-IS Document and TO-BE Document

Business Blue Print:

This is second phase of the project where we gather business

requirements of the client by conducting workshops and lead them by

Questionnaires. We document all business requirements and take sign

off on the document from the client. This is to ensure that move

forward to next phase

Realization:

This is third phase of the project where we

configure/develop/implement the business requirements of the client in

the SAP system. Project manager will allocate work to the consultants.

Base line configuration: We can configure the business requirements

and test the business requirements

Final Configuration: If there is any modifications, modify configuration

and finalize realization phase

Finalization:

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This is fourth phase and penultimate phase in the project. Activities in

finalization phase

End to testing the business requirements

Training to end users (client employees). Generally we follow

‘Train-the-Trainer’ concept

System settings (Ex: Outlook configuration, MS Office, Printers,

Scanners, some other third party tools)

Go – Live check

Data migration from existing system to SAP system

Go – Live and Support:

This is fifth and last phase in the project where we give system to

client. Client employees will enter data into SAP system. We maintain

internal help desk to give support to client employees, if they have any

problems while posting data in SAP system

How to enter into System:

Double click on SAP Logon on desktop

Click on Log on

Client 800

User SAPUSER

Password india123

Language EN (English)

Enter

Note: Home screen/Initial screen of SAP is SAP Easy Access

Note: SAP Package was developed in 41 languages

Note: If you don't enter language, Default language is English

Client: Client is an organizational unit. Server can be divided into

clients. Each client consists of separate database and separate tables.

Ex:

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100: Development Client

200: Testing/Quality Client

300: Production Client

User: User is an authorization to enter into SAP system and to process

transactions in SAP system. Ex: SAPUSER

SAP Package was developed in screen wise. Each screen has its own

name that is called Transaction code (Tcode)

Every screen consists of

Menu bar

Standard tool bar

Name bar

Application tool bar

Work area

Status bar

Menu bar, Name bar and Application tool bar will be changed screen to

screen.

Standard tool bar is same in every screen, but based on the screen

requirement some buttons are active and some buttons are disabled

Work area: We process transactions in work area by using menu bar,

standard tool bar and application tool bar

Status bar: System will update status of the transaction

Red Color Message: Error Message (We can’t process

transactions)

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Yellow Color Message: Warning Message (We can ignore warning

message and process transactions)

Green Color Message: Information Message

SAP has given two screens

1. End user screen (SAP Easy Access)

2. Consultant screen (Tcode: SPRO)

SPRO- SAP Project Reference Object

Enterprise Structure

1. Define Company (Group Company)

Definition: Company is an independent organizational unit, which is

registered under commercial law. Under company, we can generate

consolidated financial statements. Financial statements consist of

profit and loss account and balance sheet. Consolidation means

clubbing of all sisters concerns/subsidiary companies financial

statements

Ex: TATA Group, Birla Group, Reliance Group etc.

Path: SPRO - SAP Reference IMG- Enterprise Structure- Definition-

Financial Accounting - Define Company (Tcode: OX15)

Execute

Click on New Entries (F5)

Company

Company name

Street

PO Box

Postal code

City

Country

Language Key

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Currency

Save (Ctrl+S)

Prompt for customizing request dialog box will come

Click on create request (F8)

Short Description : Define Company

Enter and enter

Note:

Customizing Request: For every development, we need to create one

customizing request. These requests will be useful for transportation of

developments from one server to other server or one client to other

client

2. Define Company code (Sister concern/subsidiary

company)

Definition: Company code is an independent organizational unit, which

is registered under Companies Act, 1956. Under company code, we

can generate financial statements. Financial statements consist of

profit and loss account and balance sheet. Company codes are

assigned to company (Group Company)

Ex: Reliance Power Ltd, Reliance Communication Ltd, Reliance

Chemicals Ltd, Reliance Insurance Ltd, Reliance Industries Ltd,

Reliance Media Ltd, Reliance Retail Ltd, Reliance Infrastructure Ltd, etc

Path: SPRO- SAP Reference IMG- Enterprise Structure- Definition-

Financial Accounting- Edit, Copy, Delete, Check Company Code

(Tcode: OX02)

Execute

Double click on Edit Company Code Data


Company Code

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Company Name

City

Country

Currency

Language

Save (Ctrl+S)

Title

Name

Search Term

Street

House number

Postal code

City

Country

Enter


Click on Create request (F8)

Short Description : Define Company Code

Enter and enter

3. Define Business Area

Definition: Business area nothing but branch. Under business area, we

can generate branch financial statements. Financial statements consist

of profit and loss account and balance sheet. Branch financial

statements will be useful for internal reporting (branch performance)

Path: SPRO- SAP Reference IMG- Enterprise Structure- Definition-

Financial Accounting- Define Business Area (Tcode: OX03)

Execute


Business Area Description

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Save (Ctrl+S)


Click on Create Request (F8)

Short Description : Define Business Area

Enter and enter

4. Assign company code to company

Definition: All company codes (sister concerns/subsidiary companies)

are assigned to company (Group company)

Path: SPRO- SAP Reference IMG- Enterprise Structure- Assignment-

Financial Accounting- Assign company code to company (Tcode: OX16)

Execute

Click on position button

Company code

Enter

Company

Save (Ctrl+S)



Short Description : Assign company code to company

Enter and enter

5. Define Fiscal Year Variant

Definition: Fiscal year nothing but financial year. Every company has to

maintain financial year as per their country legal requirement. Fiscal

year consists of 12 normal months and 4 special periods. Special

periods will be useful for adjustment of accounts after closing financial

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year. System can understand calendar year (January to December).

System can not understand other than calendar year (April to March,

July to June and October to September). We need to explain to the

system

For Ex: 2011 – 2012 (April to March)

In 2011, 9 months (April to December) will come and in 2012, 3

months (January to March) will come

If you convert 3 months of 2012 to 2011, we can say financial year

2011. We put against each month of 2012 (-1)

Otherwise

If you convert 9 months of 2011 to 2012, we can say financial year

2012. We put against each month of 2011 (+1)

This concept is called ‘Year Shift’

If you do business less than one year, we can say shortened financial

year. Life time of the company it will come once (In establishing year)

Important Notes:

Year Shift

Special periods

Shortened financial year

Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial

Accounting Global Settings (New)- Ledgers- Fiscal Year and Posting

Periods- Maintain Fiscal Year Variant (Maintain Shortened Fisc. Year)

(Tcode: OB29)

Execute


FV (Fiscal Year Variant)

Description April to March

Number of posting periods 12

No. of Special periods 4

Enter

Select Variant

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Double click on Periods Folder


Month Day Period Year Shift

4 30 1 0

5 31 2 0

6 30 3 0

7 31 4 0

8 31 5 0

9 30 6 0

10 31 7 0

11 30 8 0

12 31 9 0

1 31 10 -1

2 28 11 -1

3 31 12 -1

Double click on Period Texts Folder


Language Period Txt Text

EN 1 APR April

EN 2 MAY May

EN 3 JUN June

EN 4 JUL July

EN 5 AUG August

EN 6 SEP September

EN 7 OCT October

EN 8 NOV November

EN 9 DEC December

EN 10 JAN January

EN 11 FEB February

EN 12 MAR March

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Save (Ctrl+S)



Short Description : Define Fiscal Year Variant

Enter and enter

6. Assign company code to fiscal year variant

Path: Same path (Tcode: OB37)

Execute


System will through following warning message: ‘No postings are

possible without fiscal year variant’

Ignore warning message

Keep on enter until company code dialog box will come

Company code

Enter

Fiscal year variant

Save (Ctrl+S)



Short Description : Assign company code to fiscal year variant

Enter and enter

Note:

Variant nothing but variable. Variant can be used anywhere if it is

necessary

One variant can be assigned to all company codes, which are having

same financial year

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Create following financial years

January to December (Calendar year)

July to June

October to September

7. Define posting period variant

Definition: In posting period variant, we can open and close posting

periods and year. We can post transactions in respective opened

posting periods



Periods- Posting Periods- Define Variants for Open Posting Periods

(Tcode: OBBO)

Execute


Variant

Name

Save (Ctrl+S)



Short Description : Define variants for open posting periods

Enter and enter

8. Assign Variants to Company Code



Periods- Posting Periods- Assign variants to company code (Tcode:

OBBP)

Execute

Click on Position button

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Company Code

Enter

Variant

Save (Ctrl+S)



Short Description : Assign variants to company code

Enter and enter

Note:

One variant can be assigned to more than one company code also

which are having same financial years

9. Open and Close Posting Periods



Periods- Posting Periods- Open and Close Posting Periods (Tcode:

OB52)

Execute


Var. A From

Acct

To

Accoun

t

From

Per.1

Year To

period

Year

Save (Ctrl+S)


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Short Description : Open and close posting periods

Enter and enter

Note:

A (Account type): In SAP system, account types as follows

+ = Valid for all account types

A = Assets

D = Customers

K = Vendors

M = Materials

S = G/L Accounts

V = Contract Accounts

Always better to open and close posting periods for all account types

(+ = Valid for all account types)

10. Define Document Types

Definition: Document type means to differentiate business

transactions. Business transactions are Customer invoice, Vendor

Invoice, Customer incoming payment, Vendor outgoing payments,

General posting, Depreciation posting, Goods Receipt, Goods Issue etc.

For every business transaction, we maintain document type. For every

document type, we maintain document number ranges. Document

type controls Number ranges and account types.

Ex:

Sl.N

o

Document

type

Description Numbe

r range

From

number

To number

1 SA General posting 01 01000000

00

01999999

99

2 KR Vendor Invoice 19 19000000 19999999

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00 99

3 KZ Vendor out going payment 15 15000000

00

15999999

99

4 KA Vendor Document 17 17000000

00

17999999

99

5 KG Vendor Credit memo 17 17000000

00

17999999

99

6 DR Customer invoice 18 18000000

00

18999999

99

7 DZ Customer incoming

payment

14 14000000

00

14999999

99

8 DA Customer Document 16 16000000

00

16999999

99

9 DG Customer Credit Memo 16 16000000

00

16999999

99

10 AF Depreciation 04 04000000

00

04999999

99


Accounting Global Settings (New)- Document- Define Document Types

- Define Document Types for Entry View (Tcode:OBA7)

Execute


Document type : SA (G/L Account Document)

Enter

Select SA

Click on Details (Ctrl+Shift+F2)

Observe number range 01 in SA document type

Click on Number range information

Company Code

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Note:

Display Interval: It shows what are the intervals we created

Status button: we can see, how many numbers we used against

interval

Change intervals: Create new interval or Change existing intervals

Click on Change Interval

Click on Insert Interval (Shift+F1)

No 01

Year

From number 0100000000

To Number 0199999999

Enter

Save (Ctrl+S) and enter

Note:

Current number: System will update recently posted document number

as current number

Ext (Externally): If you select this indicator, we need to give document

numbers externally (manually) while posting transactions. If you don’t

set this indicator, system will allocate document numbers internally

(Automatically)

Note:

We maintain document numbers every year

11. Define Field Status Variants

Definition: Field status variant controls transactional data. Field status

variant consists of Field status groups. Field status groups consist of

Fields. Against each field, we can select either ‘suppress entry’,

‘optional entry’ or ‘required entry’. Field status variant assigned to

company code. Field status group is assigned to General ledger master

record

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At the time of entry the system gives 70 fields

Ex: Quantity, Business area, value date, text etc

You can make any field as

1. Suppress field – Field will not be visible.

2. Required field – To enter the values.

3. Optional field – Choice to enter or not enter.


Accounting Global Settings (New)- Ledgers- Fields - Define Field Status

Variants (Tcode:OBC4)

Execute

Select 0001

Click on Copy as (F6)

Replace 0001 to _________

Enter

Click on Copy All

Enter

Save and enter

Select Variant

Double click on field status Groups

Double click on G005

Double click on Payment transactions

Select value date as optional mode

Save (Ctrl+S)

Note: Value date nothing but check clearing date

12. Assign Company Code to Field Status Variants


Accounting Global Settings (New)- Ledgers- Fields - Assign Company

Code to Field Status Variants (Tcode: OBC5)

Execute

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Company Code

Enter

Fld.stat.var

Save and enter

Note:

Field status variant can be assigned to more than one company code

13. Edit Chart of Accounts List

Definition: Chart of Accounts means list of G/L Accounts. Ex: Expenses,

Incomes, Liabilities and Assets

Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General

Ledger Accounting (New) - Master Data- - G/L Accounts - Preparations-

Edit Chart of Accounts List (Tcode:OB13)

Execute


Chart of accounts

Description

Maint.language EN English

Length of G/L Account number 6

Save and enter

Note:

Maint.language, Language in which the chart of accounts is created.

All accounts have a description in this language. Master data can only

be displayed or maintained in this language. If you carry out functions

with the account, the account name can be displayed both in the

maintenance language and in the available alternative languages.

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sapevent:DOCU_LINK%5CGL:chart_of_accounts

sapevent:DOCU_LINK%5CGL:master_data

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Length of G/L account number, for every general ledger we need to

allocate one unique number. If you maintain length of G/L account

number 6, we can allocate 6 digits number to our general ledgers. We

can maintain maximum 10 digit number in SAP system

Blocked, If you set this indicator you can’t create general ledger

master records in our chart of accounts

14. Define Account Group

Definition: List of G/L Accounts will be segregated into account groups.

Ex: Liabilities, Assets, Incomes and Expenses. Account Group controls

fields in the general ledger master record and number ranges for

general ledger master record. We can create ‘N’ number of account

groups in SAP system


Ledger Accounting (New)- Master Data- G/L Accounts- Preparations-

Define Account Group (Tcode: OBD4)

Execute


Chrt/Accts Acct Group Name From acct To Account

LIAB Liabilities 100000 199999

ASST Assets 200000 299999

INCO Incomes 300000 399999

EXPN Expenses 400000 499999


15. Define Retained Earnings Account

Definition: Retained Earnings Account is a bridge to flow the profit or

loss to the balance sheet.

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Ledger Accounting (New)- Master Data- G/L Accounts- Preparations-

Define Retained Earnings Account (Tcode: OB53)

Execute

Chart of accounts

Enter

P&L statmt acct type X

Account 100100

Save (Ctrl+S)

It gives the Message, Account 100100 not created in chart of Accounts

Ignore warning messages

Enter

16. Assign Company Code to Chart of Accounts

Path: SPRO- SAP Reference IMG- Financial Accounting - General

Ledger Accounting- G/L Accounts- Master Data- Preparations- Assign

Company Code to Chart of Accounts (Tcode:OB13)

Execute


Company Code

Enter

Chrt/Accts

Save and enter

17. Define Tolerance Groups for G/L Accounts

Definition: For G/L account clearing, tolerance groups define the limits

within which differences are accepted and automatically posted to

predefined

accounts. The groups defined here can be assigned in the general

ledger

account master record.

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Ledger Accounting (New)- Business Transactions- Open Item Clearing-

Clearing Differences- Define Tolerance Groups for G/L Accounts

(Tcode:OBA0)

Execute


Company Code

Debit posting 5 Percentage 1

Credit posting 5 Percentage 1

Save and enter

18. Define Tolerance Groups for Employees

Definition: SAP system is high secured system. We can give

authorizations to each employee or group of employees



Clearing Differences- Define Tolerance Groups for Employees (Tcode:

OBA4)

Execute


Company Code

Upper limits for posting procedures

Amount per document 99999999

Amount per open item account

item

99999999

Cash discount per line item 3

Permitted payment differences

Amount Percent

Revenue 5 1

Expenses 5 1

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19. Assign Country to Calculation Procedure

Definition: We calculate taxes as per country legal requirement. Tax

procedure will be assigned to country. Calculation procedures

containing the necessary specifications for the calculation and posting

of taxes on sales/purchases have already been defined in the standard

SAP system for certain countries. We discuss tax procedure in later

discussions [SAP MM (Materials Management) and SAP SD (Selling and

Distribution) Integration]


Accounting Global Settings (New)- Tax on Sales/Purchases- Basic

Settings- Assign Country to Calculation Procedure (Tcode: OBBG)

Execute


Country IN (India)

Enter

Proc TAXD


20. Deactivate Document splitting

Explanation: We discuss document splitting in controlling area. If you

activate document splitting, following error message will come while

posting transactions “There is no item category assigned to account”


Ledger Accounting (New)- Business Transactions- Document Splitting-

Activate Document Splitting

Execute

Double click on Deactivation per company code folder

Go to position button

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sapevent:DOCU_LINK%5CGL:calculation_procedure_for_tax_on_sales/purchases

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Company code

Enter

Select Inactive


G/L Master Records

Definition:

G/L account master records contain the data that is always needed by

the General Ledger to determine the account's function. The G/L

account master records control the posting of accounting transactions

to G/L accounts and the processing of the posting data

Structure of G/L Master Record:

G/L account master records are divided into two areas so that

company codes with the same chart of accounts can use the same G/L

accounts

Chart of accounts area

The chart of accounts area contains the data that is valid for all

company codes, such as the account number.

Company code specific area

The company code specific area contains data that may vary from one

company code to another, such as the currency in which the account

may be posted.

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Creation of G/L Master Record

Path: Accounting - Financial Accounting - General Ledger - Master

Records - G/L Accounts - Individual Processing - FS00 - Centrally

(Tcode:FS00)

Double click on FS00 - Centrally

1. Share Capital A/C

G/L Account 100000

Company Code

Click on Create

Go to Type/Description Tab

Account Group LIAB Liabilities

Select Balance Sheet Account

Short Text Share Capital A/C

G/L Acct Long Text Share Capital Account

Go to Control Data Tab

Account Currency INR (Indian Rupees)

Select Only Balances in local crcy

Select Line item display

Sort Key 001 (Posting Date)

Go to Create/bank/interest Tab

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Field Status Group G001

Save

2. Bank Account

G/L Account 290100

Company Code

Click on Create


Account Group ASST Assets


Short Text Bank A/C

G/L Acct Long Text Bank Account





Sort Key 001



Select Relevant to cash flow

Save

3. Rent A/C

G/L Account 400010

Company Code

Click on Create


Account Group EXPN Expenses

Select P&L Statement Acct

Short Text Rent A/C

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G/L Acct Long Text Rent Account








Save

4. Interest Income A/C

G/L Account 300010

Company Code

Click on Create


Account Group INCO Incomes


Short Text Interest Income A/C

G/L Acct Long Text Interest Income Account





Sort Key 001



Save

Notes:

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Account Currency: The account currency indicates the currency in

which this account is held. If a currency other than the company code

currency is specified, users can only post items in that currency to this

account. If the company code currency is specified, users can post

items in any currency to this account.

Only balances in local crcy: Only balances in local crcy indicate that

balances are updated only in local currency when users post items to

this account. Local currency nothing but company code currency

Line item display: If you set this indicator, we can see ledger balances

each line item wise and balance. If you don’t set this indicator, we can

see ledger balances “only balance amount”.

Sort Key: Based on sort key, we can sort data in the ledger. For ex:

posting date is the sort key that is assigned in general ledger. We can

see ledger balances each posting date wise

Posting Key

Definition: In this activity you define posting keys. Users specify a

posting key before entering a line item. The posting key controls how

the line item is entered and processed.

For each posting key, you define among other things:

which side of an account can be posted to (Debit or Credit),

which type of account can be posted to (Customers, Vendors, G/L

Account, Assets or Material), and

Which fields the system display on the entry screens and

whether an entry must be made (field status)?


Accounting Global Settings (New)- Document- Define Posting Keys

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sapevent:DOCU_LINK%5CGL:currency

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(Tcode: OB41)

Execute

Double click on 40 posting key and observe parameters in posting key

SAP has given following standard posting keys

Posting key in General Ledger Component

Posting keys in Accounts Payables

Posting keys in Accounts Receivables

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Posting Keys in Asset Accounting

General Posting

1. General posting

Path: Accounting - Financial Accounting - General Ledger - Posting -

FB50 - Enter G/L Account Document (Tcode: FB50)

Double click on FB50 - Enter G/L Account Document

Click on Company code (F7)

Company code

Enter

Document date

G/L acct D/C Amount in doc. Curr Value date

290100 S Debit 25000 11.10.2011

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100000 H Credit 25000

Post (Ctrl+S)

Go to Menu bar

Document – Display

We can see entry

Note:

Document Date: The document date is the date on which the original

document was issued

Posting Date: Date which is used when entering the document in

Financial Accounting or Controlling

Currency: In which currency you are posting document in the System

that currency is called Document currency

Reference: The reference document number can contain the document

number of the customer/vendor. However it may contain a different

value. The reference document number is used as a search criterion

when displaying or changing documents. In correspondence, the

reference document number is sometimes printed in place of the

document number. Enter the number specified by the business

partner. If the document was created in-house and you do not know

the business partner document number, you can copy the document

number into the reference number field by entering "*".

Doc.Header Text: The document header text contains explanations or

notes which apply to the document as a whole, that is, not only for

certain line items

33

sapevent:DOCU_LINK%5CGL:line_item

sapevent:DOCU_LINK%5CGL:document


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Cross company code number: In cross-company code document entry,

several documents are created in different company codes. A common

transaction number indicates that the documents belong together

logically. The transaction number can be assigned by the system or

manually. The system creates the number from the document number,

company code and fiscal year. Ex:

Document number 0000004711

Company code 0003

Fiscal year 11

The automatically created document number reads

0000004711000311

Exchange Rate: Exchange rate used for the translation between

foreign currency and local currency

Translation date: Translation date for determining the exchange rate

which is to be used for translation. The exchange rates are stored in

the system

2. Document Display

Path: Accounting - Financial Accounting - General Ledger - Document -

FB03 - Display (Tcode: FB03)

Double click on FB03 - Display

Click on Document list (Shift+F8)

Company Code

Document type SA (G/L Account Document)

Execute (F8)

Double click on document no.

3. Display ledger balances

Path: Accounting - Financial Accounting - General Ledger - Account -

FS10N - Display Balances (Tcode: FS10N)

Double click on FS10N - Display Balances

34

sapevent:DOCU_LINK%5CGL:translation_date

sapevent:DOCU_LINK%5CGL:fiscal_year

sapevent:DOCU_LINK%5CGL:document_number

sapevent:DOCU_LINK%5CGL:company_code


sapevent:DOCU_LINK%5CGL:document_entry

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G/L Account

Company Code

Fiscal year

Execute (F8)

We can see balance carry forward to this year and each period wise,

debit, credit, balance and cumulative balance

Foreign Currency

1. Maintain Exchange Rates

Path: Accounting- Financial Accounting- General Ledger- Environment-

Current Settings- S_BCE_68000174 - Enter Translation Rates

(Tcode: S_BCE_68000174 or OB08)

Double click on S_BCE_68000174 - Enter Translation Rates


ExRt Valid from From Dir.Quot. To

M 03.11.2011 USD 45 INR

M 03.11.2011 EUR 75 INR

M 03.11.2011 AUD 40 INR

M 03.11.2011 GBP 80 INR


2. Post with foreign currency





Company code

Enter

Document date

Currency USD (USA Dollar)

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Go to Details tab

Observe Exchange rate which is proposed by System


290100 S Debit 1000

100000 H Credit 1000

Post (Ctrl+S)

Go to Menu bar


Click on Display currency (We can see document in document currency

and local currency)

Note:

Document currency: In which currency we are posting document. Ex:

USD

Local currency: Local currency nothing but company code currency

which is maintained in company code creation. Ex: INR

Hold Documents

Definition: When you are entering data, you may be interrupted, or you

may not have all the data you need for entering a document.

In this case, you can temporarily save the data you have entered, and

then continue with the document entry at a later time. If you want the

system to hold a document, it does not have to be complete. Account

balances are not updated and the document data is not available for

evaluation. A document number is not assigned.

1. Create Hold Document (Tcode: FB50)


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Company code

Enter

Document date


290100 S Debit 25000 11.10.2011

100000 H Credit 25000

Click on Hold (F5)

Temporary Document number

Enter

2. If get following message while creating held document “Held documents must be

converted: read long text” (Tcode: SE38)

Program RFTMPBLU

Execute (F8)

Execute (F8)

Note:

RFTMPBLU is a standard program for held documents. We need to

activate this program, and then only we can create held documents.

This type of error will not come in real time

3. Post held Documents (Tcode: FB50)


Company code

Enter

Click on Tree on (Shift+F1)

Now opens tree pane

Open Held documents

Choose held document (which document you want to post)

Click on Item not checked (Red color Cross Button before line item)

Information dialog box will come

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“No errors exist for this item”

Enter

Post (Ctrl+S)

Click on Refresh tree (Shift+F7)

Parking Documents

Definition: You can use document parking to enter and store (park)

incomplete documents in the SAP System without carrying out

extensive entry checks.

Parked documents can be completed, checked, and then posted at a

later date - if necessary by a different accounting clerk.

When documents are parked, data (for example, transaction figures) is

not updated.

Data from parked documents can however be used for evaluations by

the system. For example, amounts from parked invoices can be used

for the advance return for tax on sales and purchases. Using payment

requests, parked invoices can be paid punctually and without loss of

discount.

1. Create three parked documents

Path: Accounting- Financial Accounting- General Ledger- Posting- FV50

- Edit or Park G/L Document (Tcode: FV50)

Click on Company Code (F7)

Company code

Enter

Document date

G/L Acct D/C Amount in doc. Curr Value date

290100 S Debit 25000 12.10.2011

100000 H Credit *

Post (Ctrl+S)

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2. Post/Delete parked documents

Path: Accounting- Financial Accounting- General Ledger- Posting- FV50

- Edit or Park G/L Document (Tcode: FV50)


Company code

Enter

Document date


Now opens Tree Pane

Open Parked documents tree

Choose parked document (which parked document you want to post)

If you want to post parked document

Go to Menu bar

Document – Post

If you want to delete parked document

Go to Menu bar

Document – Delete parked document

Click on Yes

If you want to park document to his superior

Go to Menu bar

Document – Park

Screen Variants

Screen variant is used to post transactions while posting transactions,

what are the fields user is entering. Based on client requirement we

can develop our own fields

1. Create Screen Variant




Go to Menu bar

Edit – Screen Variant – Create Screen Variant

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Transaction Code FB50

Go to Screen Variants Tab

Screen Variant

Program SAPLFSKB

Screen 0100

Click on Create (F5)

Document date

Post (Ctrl+S)

Enter

Select all fields invisible except following fields

Status

G/L Acct

D/C

Amount in Doc. Curr

Value date

Text

Business Area

Click on Exit and Save

Save (Ctrl+S)

Click on Local Object (F7)

2. Add Screen Variant (Tcode: FB50)


Now opens tree pane

Choose screen variant for items

Mouse right click

Screen Variants – Add Screen Variant

Variant

Enter

Choose your variant and post transactions

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Reference Documents

Account Assignment Models

Account assignment models are templates to post transactions.

1. Create Account Assignment Models (Tcode: FB50)


Company code

Enter

Document date 13.10.2011

G/L Acct D/C Amount in doc. Curr

290100 S Debit 25000

100000 H Credit *

Go to Menu bar

Edit – Acct Assignment Templates – Save Account Assignment Template

Acct asst temp

Enter

2. Post with Account Assignment Models (Tcode: FB50)


Now opens tree pane

Open Account Assignment Templates Tree

Choose your template and post transactions

Sample Documents

Sample documents also templates like account assignment models.

Following are differences between sample documents and account

assignment models

Sample documents are year dependent but account assignment

models are used life time of the company

We can not sample documents without amount but we can

create account assignment models without amounts also

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We can give sample documents numbers internally or externally

but Account assignment models only externally

1. Maintain number ranges for Sample documents


Accounting Global Settings (New)- Document- Document Number

Ranges- Documents in Entry View- Define Document Number Ranges

for Entry View (Tcode: FBN1)

Execute

Company Code

Click on change interval

Click on Insert interval (Shift+F1)

No X2

Year

From Number 0002000000


Enter

Save and enter

2. Create Sample document


Reference Documents - F-01 - Sample Document (Tcode:F-01)

Double click on F-01 - Sample Document

Document

Date

Type Company

Code

Posting Date Period Currency/Rate

PstKy 40 (Debit)

Account

Enter

Amount 30000

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PstKy 50 (Credit)

Account

Enter

Amount *

Post (Ctrl+S)

3. Post with Sample documents (Tcode: FB50)


Company code

Enter

Document date

Go to Menu bar

Goto – post with reference

Document number

Company code

Fiscal year

Enter and enter

Post (Ctrl+S)

Enter

Recurring Documents

Definition: Recurring documents means regular transactions. We post

every month in a fixed date and with fixed amount (same amount). Ex:

Rent, Insurance Premiums, Bank Installments etc

1. Maintain number ranges for recurring document

(Tcode: FBN1)

Company Code



No X1

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Year



Enter


2. Create Recurring documents

Path: Accounting - Financial Accounting - General Ledger - Posting - Reference

Documents - FBD1 - Recurring Document (Tcode: FBD1)

Company Code

First run on

Last run on

Interval in months

Document type SA (G/L Account document)

PstKy 40 (Debit)

Account 400010 (Rent A/C)

Enter

Amount 25000

PstKy 50 (Credit)

Account 290100 (Bank A/C)

Enter

Amount *

Save (Ctrl+S)

3. Post recurring documents

Path: Accounting - Financial Accounting - General Ledger - Periodic

Processing - Recurring Entries - F.14 - Execute (Tcode: F.14)

Company Code :

From To

Document number 1 9999999999

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From To

Settlement period

Batch input session name

Execute (F8)

Go to Menu bar

System - services - Batch Input - sessions

Select Session

Click on process (F8)

Select display errors

Enter

Click on Exit Batch input

4. Document Display (Tcode: FB03)

Balance Interest Calculation

Scenario:

Loan taken from SBI Bank

100000

0

Interest on Loan 15%

Rs Formulae

01.04.201

1 Loan Taken from bank

1000000.

00

30.04.201

1 Interest on loan 12328.77 (1000000X15%X30/365)

01.05.201

1 Loan balance

1012328.

77

31.05.201

1 Interest on loan 12896.79

(1012328.77X15%X31/3

65)

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01.06.201

1 Loan balance

1025225.

56

01.06.201

1 Repayment of Loan

200000.0

0

01.06.201

1 Loan balance

825225.5

6

30.06.201

1 Interest on loan 10174.01

(825225.56X15%X30/36

5)

01.07.201

1 Loan balance

835399.5

7

1. Define Interest Calculation Types

Path: SPRO- SAP Reference IMG- Financial Accounting(New)- General

Ledger Accounting(New)- Business Transactions- Bank Account Interest

Calculation- Interest Calculation Global Settings- Define Interest

Calculation Types (Tcode:OB46)

Execute


Int ID

Name Balance Interest

Int calc.type S Balance Interest Calculation


2. Prepare Account Balance Interest Calculation

Definition: We maintain parameters for interest calculation indicator;

how you want calculate interest on loan

Path: Same path (Tcode: OBAA)

Execute


Int.calc.Indicator

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Interest calc.freq 1

Calendar type G

Select Balance plus int

Save and enter

3. Define Reference Interest Rates

Definition: Reference Interest Rate nothing but interest Rate

Path: SPRO- SAP Reference IMG- Financial Accounting (New) - General

Ledger Accounting (New) - Business Transactions- Bank Account

Interest Calculation- Interest Calculation- Define Reference Interest

Rates

(Tcode: OBAC)

Execute


Ref.int.rate

Long Text

Description

Date from

Currency INR

Click on Next Entry (F8)

Ref.int.rate

Long Text

Description

Date from

Currency INR


4. Define Time-Dependent Terms



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Interest Calculation- Interest Calculation- Define Time-Dependent

Terms

(Tcode: OB81)

Execute


Int.calc.indicator

Currency key INR

Eff.from

Sequential number 1

Term Credit interest: balance interest

calc.

Ref.interest rate


Int.calc.indicator

Currency key INR

Eff.from

Sequential number 2

Term Debit interest: balance interest

calc.

Ref.interest rate

Save and enter

5. Enter Interest Values



Interest Calculation- Interest Calculation- Enter Interest Values (Tcode:

OB83)

Execute


Reference Valid from Int.Rate

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6. Creation of G/L Accounts (Tcode:FS00)

a. Interest Expense A/C

G/L Account 400080

Company Code

Click on Create


Account Group EXPN Expense

Select P&L statement acct

Short Text Interest Expenses A/C

G/L Acct Long Text Interest Expenses Account

Go to Control data Tab

Select only balances in local crcy


Sort Key 001

Go to Create/Bank/Interest Tab

Field status group G001

Save

b. SBI Term Loan Account

G/L Account 100500

Company Code

Click on Create



Select Balance sheet Account

Short Text SBI Term Loan A/C

G/L Acct Long Text SBI Term Loan Account

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Sort Key 001



Interest Indicator

Save (Ctrl+S)

7. Assign G/L Accounts

Path: SPRO- SAP Reference IMG- Financial Accounting(New)- General

Ledger Accounting(New)- Business Transactions- Bank Account Interest

Calculation- Interest Posting- Prepare G/L Account Balance Interest

Calculation (Tcode:OBV2)

Execute

Click on Accounts (F7)

Chart of accts :

Enter

Acct symbol Currency G/L acct

0002 INR 400080

2000 INR 100500


8. Post Loan Taken from bank





Company code

Enter

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Document date

Posting Date

G/L acct D/C Amount in doc. Curr

290100 (Bank A/C) S Debit 1000000

100500 (SBI Term Loan

A/C

H Credit 1000000

Post (Ctrl+S)

9. Interest calculation

Path: Accounting - Financial Accounting - General Ledger - Periodic

Processing - Interest Calculation - F.52 - Balance Interest Calculation

(Tcode: F.52)

Chart of accounts

G/L Account 100500 (Loan Account)

Company Code

Calculation period

Select post interest settlement

Select update master record

Session name Venkat

Execute (F8)

Go to Menu bar

System - services- batch input - sessions

Select Venkat

Click on process (F8)


Enter

Click on Exit batch input

17. Document display (Tcode: FB03)

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18. Display ledger (Tcode: FS10N)

Reversal of Documents

Definition: If you have entered an incorrect document, you can reverse

it, thereby also clearing the open items.

A document can only be reversed if:

It contains no cleared items

It contains only customer, vendor, and G/L account items

It was posted with Financial Accounting

All entered values (such as business area, cost center, and tax

code) are still valid

Note: Once we post documents in SAP, we can’t edit amounts. Reverse

the document and post correct document. We have to know wrongly

posted document number, and then only we can reverse the document

1. Define Reasons for Reversal


Ledger Accounting (New)- Business Transactions- Adjustment

Posting/Reversal- Define Reasons for Reversal

Execute


Reason

Name Wrongly posted document

Select Neg.posting


Note:

Negative posting: Indicator that "Negative postings" are to be

generated for a reversal with the specified reversal reason. Negative

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postings reduce the transaction figures again. Negative postings must

also be allowed for the company code of the document to be reversed.

If a company code does not generally use any negative postings, the

indicator set here is ignored.

Alternative posting date: Indicator as to whether you are allowed to

specify an alternative posting date for the relevant reversal reason.

When you use the reversal reason, the system checks that reversal is

not carried out using an alternative posting date and therefore possibly

in a later posting period or in a later fiscal year. If you want to use

negative postings during reversal but only if the reversal is posted in

the same period, you can define two reversal reasons:

1st reason: No alternative date allowed, generate negative

posting

2nd reason: Alternative date allowed, do not generate negative

posting

2. Permit Negative Posting


Ledger Accounting (New)- Business Transactions- Adjustment

Posting/Reversal- Permit Negative Posting

Execute


Company code

Select Negative posting permitted


3. Reversal of Documents


Reverse - FB08 - Individual Reversal (Tcode: FB08)

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Document number

Company Code

Fiscal year

Reversal reason

Post (Ctrl+S)


Document number

Company code

Fiscal year

Enter

Observe entry

Click on Reversal document (Shift+F1)

We can see which document we reversed

5. Mass Reversals


Reverse - F.80 - Mass Reversal (Tcode: F.80)

Company code

Document number From To

Fiscal year

Reason for reversal

Deselect Test Run

Execute (F8)

Report Layout and Sort filter Command

1. Report Layout (Tcode: FS10N)

G/L Account

Company code

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Fiscal year

Execute (F8)

Double click on Amount

Click on Change Layout (Ctrl+F8)

Select Posting date

Select Posting key

Click on Show Selected fields

Enter

2. Sort filter Commands (Tcode: FS10N)

G/L Account

Company code

Fiscal year

Execute (F8)

Double click on Amount

Click on Doc.Date

Click on Set Filter (Ctrl+Shift+F2)

Document date :

Enter

Open Item Management

Outstanding expenses:

Definition: Expenses incurred but not paid. Ex: Outstanding salaries,

Outstanding rent etc

Entries:

a. Posting outstanding Expenses

Rent A/C

To O/S Expenses A/C

b. Clearing outstanding Expenses

O/S Expense A/C

To Bank A/C

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1. Create Outstanding Expenses G/L A/C (Tcode: FS00)

G/L Account 190600

Company Code

Click on Create


Account group LIAB Liabilities


Short Text O/S Expenses A/C

G/L Acct Long Text Out Standing Expense A/C



Select Open Item Management


Sort key 001


Field Status group G001

Save

2. Post Outstanding expenses (Tcode: FB50)


Company code

Enter

Document date


400010 S Debit 25000

190600 H Credit 25000

Post (Ctrl+S)

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3. Report

Path: Accounting- Financial Accounting- General Ledger- Account- FBL3N -

Display/Change Line Items (Tcode: FBL3N)

G/L Account 190600 (Out Standing Expense

A/C)

Company code

Select Open items

Execute (F8)

4. Payment against Out standing expense

Path: Same path (Tcode: F-03)

Account 190600 (Outstanding Expense

A/C)

Company code

Click on Process open items (Shift+F4)

Select O/S Expense against which outstanding expenses you are

making payment (Blue color means selection and block color means

deselecting. Double click on Blue color means deselecting and double

click on block color means selection)

Click on Document Overview (Shift+F2)

PstKy 50 (Credit)


Enter

Amount 25000

Go to Menu bar

Document – simulate

Post (Ctrl+S)

5. Report (Tcode: FBL3N)

G/L account 190600 (Out Standing Expenses

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A/C)

Company code

Select cleared items

Execute (F8)

Prepaid Expenses

Definition: Expenses paid in advance. Ex: Advance Salary, Prepaid

Rent, Prepaid Electricity, prepaid telephone bill etc

Entries:

a. Posting of prepaid Expenses

Prepaid Expense A/C

To Bank A/C

b. Booking of expenses against prepaid Expenses

Rent A/C

To Prepaid expenses A/C

1. Create prepaid Expense G/L Account (Tcode: FS00)

G/L Account 290600

Company code

Click on create




Short text Prepaid Ex. A/C

G/L Acct Long Text Prepaid expense Account



Select open item management

Select line item display

Sort key 001

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Save

2. Post prepaid expenses (Tcode: FB50)


Company code

Enter

Document date


290600 S Debit 25000

290100 H Credit 25000

Post (Ctrl+S)


G/L Account 290600 (Prepaid Expense A/C)

Company code

Select Open items

Execute (F8)

4. Clear prepaid expense (Tcode: F-03)

Path: Accounting- Financial Accounting- General Ledger- Account- F-03 – Clear (Tcode:

F-03)

Account 290600 (Prepaid Expense A/C)

Company code

Select None

Click on Process Open Items (Shift+F4)

Click on Document overview (Shift+F2)

PstKy 40 (Debit)

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Account 400090 (Rent A/C)

Enter

Amount 25000

Click on process open items (Shift+F4)

Go to Menu bar

Document – Simulate

Save


G/L Account 290600 (Prepaid Expense A/C)

Company code

Select Cleared items

Execute (F8)

Foreign Currency Valuation

1. Define Valuation method

Definition: In this activity, we define valuation methods for the open

items. Valuation method is a grouping of specifications together which

we need for the balance and individual valuation


Ledger Accounting (New)- Periodic Processing- Valuate- Define

Valuation Methods

Execute


Valuation method

Description

Select always evaluate

Document type SA

Select balance Val

ExchRate Type for Debit Bal M

ExchRate Type for CreditBal M

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Select determine Exch.Rate type from Acct Bal

Save and enter

Always evaluate: If you select this procedure, revaluations are also

taken into consideration

Exchange rate types: Exchange rates nothing but currency rate

symbols

B: Bank selling rate 46 (Per USD)

G: Bank buying rate 44 (Per USD)

M: Average rate (46+44)/2= 45 (Per USD)

2. Define Valuation Areas

Path: Same path

Execute


Valuation

Valuation method

Crcy type 10 company code currency

Save and enter

Note:

Valuation: Valuation is a unique code to valuate foreign currency.

3. Check Assignment of Accounting Principle to Ledger

Group

Path: same path

Execute

Accounting principle GAAP (General Accepted

Accounting Principle)

Target ledger group 0L (Leading ledger)

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Save and enter

4. Assign Valuation Areas and Accounting Principles

Path: Same path

Execute


Valuation area

Acc.principle GAAP

Save and enter

5. Creation of General ledger master records (Tcode: FS00)

a. Exchange loss A/C

G/L Account 400090

Company code

Click on Create

Go to Type/description Tab

Account group EXPN Expenses


Short text Exchange Loss A/C

G/L Acct Long Text Exchange Loss A/C

Go to control data tab



Sort key 001 (Posting date)

Go to create/bank/interest tab


Save

b. Exchange Gain A/C

G/L Account 300090

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Company code

Click on Create

Go to Type/description Tab

Account group INCO Incomes


Short text Exchange Gain A/C

G/L Acct Long Text Exchange Gain A/C







Save

c. Valuation Loss A/C

G/L account 400095

Company code

Click on with template

G/L Account 400090

Company code

Enter

Go to type/description tab

Short text Valuation Loss A/C

G/L Acct Long Text Valuation Loss A/C

Save

d. Valuation Gain A/C

G/L account 300095

Company code

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Click on with template

G/L Account 300090

Company code

Enter

Go to type/description tab

Short text Valuation Gain A/C

G/L Acct Long Text Valuation Gain A/C

Save

e. Valuation Adj A/C

G/L Account 190140

Company code

Click on create

Go to type/description Tab


Select balance sheet account

Short text Valuation Adj A/C

G/L Acct Long Text Valuation Adjustment account







Save

a. Loan from BOA A/C

G/L Account 190900

Company code

Click on create

Go to type/description Tab


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Short text Loan from BOA A/C

G/L Acct Long Text Loan from Bank of America

account


Account Currency USD







Save



Ledger Accounting (New)- Periodic Processing- Valuate- Foreign

Currency Valuation- Prepare Automatic Postings for Foreign Currency

Valuation (Tcode: OBA1)

Execute

Double click on Exchange Rate Dif.: Open Items/GL Acct KDF

Chart of accounts

Enter


G/L Account 190900 (Loan from BOA A/C)

Loss 400090 (Exchange Loss A/C)

Gain 300090 (Exchange Gain A/C)

Val.Loss 1 400095 (Valuation Loss A/C)

Val.Gain 1 300095 (Valuation Gain A/C)

Bal.sheet adj. 1 190140 (Valuation adj A/C)

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Save and enter

7. Maintain translation rates

Path: Accounting- Financial Accounting- General Ledger- Environment-

Current Settings- S_BCE_68000174 - Enter Translation Rates (Tcode:

S_BCE_68000174)


ExRt Valid from From Dir.Quot. To

M USD 45 INR


8. Loan Taken from BOA





Company code

Enter

Document date


290100 (Bank

A/C)

S Debit 25000 11.10.2011

190900 (BOA

A/C)

H Credit 25000

Post (Ctrl+S)

Go to Menu bar


We can see entry

9. Foreign currency valuation

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Path: Accounting- Financial Accounting- General Ledger- Periodic Processing- Closing-

Valuate- FAGL_FC_VAL - Foreign Currency Valuation (New) (Tcode:

FAGL_FC_VAL)

Company code

Valuation key date

Valuation area

Go to Posting Tab

Batch input session name

Go to open items Tab

Select Valuate G/L Accounts open items

G/L Account 190900 (Loan from BOA A/C)

Execute (F8)

Go to menu bar

System- Services- Batch input- sessions

Select Session

Click on Process (F8)


Select extended log

Enter

Click on exit batch input (F12)


Intercompany transactions

1. Creation General ledger master record in two company codes (Tcode: FS00)

G/L Account 190101

Company code

Click on create

Goto type/description tab



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Short text

G/L Account Long Text

Go to Control data tab







Save

G/L Account 190101

Company code

Click on create

Goto type/description tab



Short text

G/L Account Long Text

Go to Control data tab





Goto create/bank/interest tab


Save

2. Prepare Cross-Company Code Transactions

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Ledger Accounting (New)- Business Transactions- Prepare Cross-

Company Code Transactions (Tcode: OBYA)

Execute

Company code 1

Company code 2

Enter

Posted in 1001

Cleared against 2601

Debit posting

key

40 (Debit) Credit posting

key

50 (Credit)

Account debit 190101 Account credit 190101

Posted in

Cleared against

Debit posting

key

40 (Debit) Credit posting

key

50 (Credit)

Account debit 190101 Account credit 190101


3. Intercompany Posting





Company code

Enter

Document date

G/L acct D/C Amount in doc. Curr Company Code

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290100 S Debit 25000

290100 H Credit 25000

Post (Ctrl+S)

Go to Menu bar


We can see entry

Accounts payables

Accounts payable module streamlines “Procure – To – Pay (P2P)”

process while providing financial control and information. It supports

booking of invoices, matching invoices against purchase orders and

approval of invoices. It facilitates recording of debit/credit memos as

well as payments. It helps monitor supplier invoices and creates

supplier balance overviews.

This component will deal with vendors, Terms and conditions, Invoices,

outgoing payments, Advance to vendors, Etc. Vendors are subsidiary

ledgers. AP component integrates with General ledger component.

Purpose of Accounts Payables:

The Accounts payable application component records and administers

accounting data for all vendors. It is also an integral part of the

purchasing system. Deliveries and invoices are managed according to

vendors. The system automatically makes postings in response to the

operative transactions.

Features of Accounts Payables:

Payables are paid with the automatic and manual payment

program

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Postings made in accounts payables are simultaneously recorded

in the general ledger where different G/L Accounts are updated

based on the transaction involved. Ex: Payables and advances to

vendors

Balance confirmations, account statements, and other forms of

reports to suit your requirement in business correspondence with

vendors

Business Process:

1. Vendor invoice verification

Vendor invoices will be processed based on the invoices received from

the vendors. In invoice verification, vendor invoices are compared with

the purchase order and the goods receipt and are checked for the price

and quantity

When an invoice is entered with reference to a purchase order,

the system suggests data from the purchase order and the goods

receipts for the purchase order. Ex: Vendor, Material, Quantity

still to be invoiced, Terms of payment and so on

The posting of the invoice completes the invoice verification

process. The system updates the purchase order history and

financial accounting initiate’s payment for the open invoice

items. Invoice verification creates a link between materials

management and accounting document

2. Vendor Down Payments (Advance to vendors)

Advance payments will be made according to the terms of payments

with the vendor. The advance payments made to the vendor will be

tracked as distinct from the normal payments made to the vendor. The

posting for down payments will be carried out to a G/L account other

than the standard general ledger account for the vendor called as

“Special G/L Account”

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3. Clearing of vendor invoice and advance

The concept of authorizing the document entry can be achieved by the

standard SAP functionality creating and authorizing the payment

request. Payment request will be created by one person and

authorized by another person to keep the control.

4. Vendor payments

By using the SAP standard functionality all the cheque payments can

be managed. The typical procedure under SAP with respect to cheque

will be,

Defining Cheque lots for each and every house bank

Entering vendor invoice

Entering the vendor payment by clearing the open item created

by invoice

Attach cheque to the payment document number generated

Check the cheque register to see the cheque updating

Vendor payments can be manual or automatic. The general aspects

related to vendor payment are,

Terms of payment

Method/Mode of payment

Manual payment

Automatic payment

Method/Mode of payment:

The payment methods used in SAP system are as follows,

C= Cheque

E= ECS (Electronic Clearing System)

T= Bank Transfer

A= Cash

D= Demand Draft/Pay Order (needs to be created in SAP system)

Manual Payments:

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Manual payments are those payments, where the user selects vendor

and invoices to be paid. This selection can be used for cheque printing

or other methods of payment (like instruction to bank). Usually this

procedure is preferred where the numbers of selection/payments are

less

Automatic Payments:

Automatic payments are configured to make vendor payments based

on terms of payments. The due date wise/vendor invoice wise payment

proposal will be generated and this proposal can be edited to make the

selective payments.

After the payment list has been finalized, the payment run will be

executed and accounting entry will be posted automatically. Payment

advice and cheque will be printed through system

1. Define Account Groups

Definition: Account group means list of vendors will be segregated into

different account groups. For ex: Domestic vendors and foreign

vendors or South vendors, North Vendors, East Vendors and West

vendors etc. It controls fields in master record and number range

intervals.

Path: SPRO- SAP Reference IMG- Financial Accounting(New)- Accounts

Receivable and Accounts Payable- Vendor Accounts- Master Data-

Preparations for Creating Vendor Master Data- Define Account Groups

with Screen Layout (Vendors) (Tcode:OBD3)

Execute


Account Group

Name Dom. Vendors

Save and enter

Note: Data in vendor master record controls how transaction data is

posted and processed for a vendor. The vendor master record also

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contains all the data you require to do business with your vendors.

Vendor Master Record will be segregated into three segments

a. General data

b. Company code data

c. Purchasing data

a. General data

This is data that applies to every company code and every

purchasing organization in your company. The general area

includes, for example, the vendor’s name, address, language,

and telephone number.

b. Company code data

This is data that is specific to an individual company code.

Company code data includes, for example, the reconciliation

account number and payment terms.

c. Purchasing organization data

This is data relevant to the purchasing organization of your

company. For example, requests for quotations, purchase orders,

and invoice verifications are stored in this section. You need the

Materials Management (MM) application component in order to

enter this data and print purchase orders.

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2. Create Number Ranges for Vendor Accounts

Definition: For every vendor we need to allocate one unique number.

These number ranges are assigned account group. Vendor number

ranges are client level. For ex: Client 800

Path: Same path (Tcode: XKN1)

Execute

Click on Change interval

Click on Insert interval (shift+F1)

No

From Number

To Number

Enter

Save and enter

3. Assign Number Ranges to Vendor Account Groups

Path: same path (Tcode: OBAS)

Execute


Account group

Enter

Number range

Save and enter

Note: One number range can be assigned to more than one account

group. Other wise for every account group, we can assign one number

range

4. Define Tolerances (Vendors)

In this step, you specify the tolerances for vendors. These tolerances

are used for dealing with differences in payment and residual items

which can occur during payment settlement. Specify the tolerances

under one or more tolerance groups. Allocate a tolerance group to

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each vendor via the master record. For each tolerance group, specify

the following:

Tolerances up to which differences in payment are posted

automatically to expense or revenue accounts when clearing

open items

The handling of the terms of payment for residual items, if they

are to be posted during clearing

Path: SPRO- SAP Reference IMG- Financial Accounting(New)- Accounts

Receivable and Accounts Payable- Business Transactions- Outgoing

Payments- Manual Outgoing Payments- Define Tolerances (Vendors)

(Tcode:OBA3)

Execute


Company code

Save and enter

Note:

Grace Days due date, Number of days by which the payment deadlines

may be exceeded when manual payments are made. In the payment

entry facilities, the grace days are added to the payment

deadlines. This means that the system will accept cash discount

deductions and net payments even after the original deadline. If the

days in arrears are displayed during open item processing, the system

reduces them by the number of grace days.

Cash Discount Terms Displayed, during payment settlement, the items

are displayed with the cash discount terms specified here.

Arrears Base Date, from arrears base date system will calculate terms

of payments.

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Permitted payment difference for automatic write-off (function code

AD), Payment differences to our advantage are permitted up to the

amount specified here. The local currency is INR. In the field Revenue

you have entered 30 INR and in the field Percent, 1. For incoming

payments of up to 3000 INR, you accept an overpayment up to a

maximum of 1 percent. This means that depending on the amount of

the incoming payment, amounts from 0 to a maximum of 30 INR are

tolerated. For incoming payments over 3000 INR, you accept an

overpayment up to a maximum of 30 INR.

Residual Items, residual means remaining amount (Payment

difference). System will create new line item for remaining amount and

clear entire invoice

a. Payment term from invoice, Indicator that the terms of payment are

to be transferred from the original item for residual items. In this case,

the amount qualifying for cash discount is set in such a way that the

relationship between the amount qualifying for cash discount and the

line item amount of the original item is also given in the residual item.

b. Fixed payment term, terms of payment key which is to be

transferred to the line item when posting residual items. You only need

to specify terms of payment key here if the terms are not to be

transferred from the original document

5. Maintain Number ranges 19, 15, 17 for KR, KZ, KA

document types respectively (KR: Vendor Invoice, KZ:

Vendor payment, KA: Vendor Document)


Accounting Global Settings (New) - Document- Document Number

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sapevent:DOCU_LINK%5CGL:residual_item

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Ranges- Documents in Entry View- Define Document Number Ranges

for Entry View (Tcode: FBN1)

Execute

Company Code



No 19

Year



Enter


No 15

Year



Enter


No 17

Year



Enter

Save and enter

6. Create Sundry Creditors A/C (Tcode: FS00)

G/L Account 190100

Company Code

Click on create


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Short Text Sundry Creditors A/C

G/L Acct Long Text Sundry Creditors Account


Recon.account for Acct type K Vendors


Sort Key 012 (Vendor Number)

Go to Create/Bank/Interest tab


Save (Ctrl+S)

Note:

Recon. Account for acct type: An entry in this field characterizes the

G/L account as a reconciliation account. The reconciliation account

ensures the integration of a sub ledger account into the general ledger.

Ex: G/L account 190100 is defined as a reconciliation account. In the

vendor account 4711, the G/L account 190100 is determined as a

reconciliation account. In this way, all postings to vendor account 4711

are also posted automatically to the G/L account 190100. The G/L

account itself is not designed for direct posting. In this way,

reconciliation between sub ledger and general ledger is always

guaranteed.

7. Create Vendor Master Record

Definition: Business transactions are posted to accounts and managed

using those accounts. You must create a master record for each

account that you require. The master record controls how business

transactions are recorded and processed by the system

Specifications you make in master records are used:

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As default values when you post items to the account. For

example, the terms of payment you specify in the master record

are defaulted for document entry.

For processing business transactions. For instance, bank details

and the payment methods (check or bank transfer, for example)

are required for automatic payments.

For working with master records. You can prevent certain users

from accessing an account by setting up authorization groups.

Path: Accounting - Financial Accounting - Accounts Payable - Master Records - FK01 -

Create (Tcode: FK01)

Company Code

Account Group

Enter

Title Company

Name

Search Term

Street

House number

Postal code

City

Country IN (India)

Enter, enter and enter

Recon.account 190100

Sort Key 012

Cash mgmnt group A1

Enter

Payt terms

Save

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8. Create Service G/L Master Record (Tcode: FS00)

G/L Account 400100

Company Code

Click on create

Go to Type/Descripition Tab

Account Group EXPN Expense

Select P&L Statement acct

Short Text Service A/C

G/L Acct Long Text Service Account




Sort Key 001



Save

9. Define Terms of payments

Definition: In the step Maintain terms of payment, you can define rules

with which the system can determine the required terms of payment

automatically. The rules are stored under a four-character key. You

assign the terms of payment specified to the vendors in the master

record via the key. The key and the terms determined with it are

proposed when entering a document to the vendor account

Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts

Receivable and Accounts Payable- Business Transactions- Incoming

Invoices/Credit Memos- Maintain Terms of Payment (Tcode: OBB8)

Execute


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Payt Terms :

Own Explanation : Terms of payment for ______

Term Percentage No. of days

1 2 10

2 1 20

3 30


Day Limit:

Day of the month up until which the corresponding terms are valid.

Ex:

The following terms of payment require you to enter a day limit:

Documents with an invoice date on or before the 15th of the

month are payable on the last day of the next month

Documents with an invoice date after the 15th of the month are

payable on the 15th of the month after the next month.

Account type:

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You can use the same key for the terms of payment for both customers

and vendors who have the same payment terms. SAP recommends,

however, that you use different terms of payment keys for customers

and vendors and limit the permitted account type correspondingly

within the terms of payment. This, for example, then has an advantage

if the sales department of your company changes a payment term for

a customer. You can then adapt the accompanying customer terms of

payment key without vendors being affected by the same terms of

payment.

Baseline date calculation section:

Baseline date will be useful for calculation of terms of payment.

Fixed Date: Calendar day with which the system overwrites the

day of the baseline date for payment of the line item.

Additional months: Number of months which the system adds to

the calendar month of the baseline date for payment.

Pmnt block/Pmnt method default section:

Block Key: Default value for the payment blocking key. By using

block key, we can stop payment against that invoice

Payment Method: The payment method determines how

payments are to be made, e.g. by check, bank transfer or bill of

exchange.

1) Define Terms of Payment for Installment Payments

Definition: In this step you can determine whether an invoice amount is

to be divided into partial amounts with different due dates. For these

terms of holdback/retainage payment, you must determine the amount

of the holdback/retainage in percent and the terms of payment for

each holdback/retainage payment. If you then post an invoice with

terms of holdback/retainage payment, the system generates the

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corresponding number of line items due to your specifications for the

holdback/retainage.

a. Define Terms of Payment for each Installment

Payments



Invoices/Credit Memos- Maintain Terms of Payment (Tcode: OBB8)

Execute


Payt Terms

Own Explanation

Term Percentage No. of days

1 2 10

2 1 20

3 30


Payt Terms

Own Explanation

Select Installment Payment


b. Define Terms of Payment for Installment Payments

Path: Same path (Tcode: OBB9)

Execute


Terms of

paymen

Inst Percent Pmnt term

1 50.000

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2 25.000

3 25.000


Note: Terms of payment key will be assigned in vendor/customer

master records or transactions

Vendor Invoice

Path: Accounting - Financial Accounting - Accounts Payable - Document

Entry - FB60 – Invoice (Tcode: FB60)


Company code

Enter

Vendor

Invoice Date

Amount


400100 S Debit *

Post (Ctrl+S)

Go to Menu bar


We can see document

Notes to Vendor invoice:

Payment Tab:

Base line date: During document entry for open item accounts, the

date may be defaulted. For this, terms of payment key must have been

specified in the customer's/vendor's master record for which a default

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value is requested in the document. The proposed date can be

overwritten.

If the cash discount rates (and days) have not been entered, the

baseline date for payment is the same as the due date.

Discount: This is absolute cash discount agreed against this invoice

Discount Base: Part of the invoiced amount for which cash discount is

granted. For Ex: Invoice amount – 35000 and Discount base amount –

30000. System will calculate terms payments on discount base amount

(30000).

Fixed: the first or second cash discount term can be taken advantage

of irrespective of whether the corresponding period has elapsed or not.

We can prevent lost cash discounts with this indicator

Payment Method: Payment method with which this item is to be paid.

Ex: Cheque Method, Bank Transfer etc.

If you enter a payment method, then only this payment method can be

used in automatic payment transactions. If you do not enter a payment

method, then one of the payment methods which were allowed in the

master record is selected in the payment program according to

specified rules.

For document entry or document changes, you only enter a payment

method if you want to switch off the automatic payment method

selection of the payment program.

Payment Block: By using payment block, we can stop payment against

this invoice

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Invoice Reference: For line items which are related to another line

item, this field contains the number of the partner document. In the

standard system the field is used for:

Credit memos which refer to a particular invoice item

Subsequent invoices for an invoice item

Partial payments for an invoice item

Partial clearings of down payments.

Vendor Line item report

Path: Accounting - Financial Accounting - Accounts Payable - Account - FBL1N -


Vendor Account

Company Code

Select open items

Execute (F8)

We can see list of pending invoices

Outgoing payments

By using the standard SAP functionality all the cheque/cash payments

can be managed. Vendor payments can be manual or automatic

1. Standard Payment

Definition: Standard payment means full payment against invoice net

(after deducting cash discounts)

Path: Accounting - Financial Accounting - Accounts Payable - Document Entry -

Outgoing Payment - F-53 - Post (Tcode: F-53)

Document

Date

Type KZ Company

Code


Bank Data Section


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Amount

Open Item Selection Section

Account

Enter

Note: Select Invoice against which invoice you are making payment,

Deselect Remaining invoices. Select means Blue color and Deselect

means block color.

Note: Amount entered and Assigned amount should be same

2. Vendor Line item report



Vendor Account

Company Code

Select Cleared Items

Execute (F8)

We can see list of cleared invoices

3. Partial payments

Partial payment means part of the invoice payment. For ex:

Invoice amount – 50000

Outgoing payment – 10000



Document

Date

Type KZ Company

Code


Bank Data Section


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Amount 10000


Account

Enter

Go to partial payment Tab

Note: Select Invoice against which invoice you are making partial

payment, Deselect Remaining invoices. Select means Blue color and

Deselect means block color.


Against invoice, enter payment amount (How much amount you are

making partial payment)

Go to Menu bar


Post (Ctrl+S)

4. Vendor Line item report



Vendor Account

Company Code

Select Open Items

Execute (F8)

Note: System will show you invoice amount and partial payment as

open items until entire invoice cleared

5. Residual items

Definition: In Residual items, system will re determine terms of

payments.



Document Type KZ Company

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Date Code


Bank Data Section


Amount 10000


Account

Enter

Go to Residual Items Tab

Note: Select Invoice against which invoice you are making residual

payment, Deselect Remaining invoices. Select means Blue color and

Deselect means block color.


Against invoice, enter remaining payment amount (put after amount -).

Go to Go to Menu bar


Double click on Blue Color line item

Days/percent

Text Being Residual items

One time go back

Post (Ctrl+S)

Automation of Bank Charges and Cash discount

1. Creation of Bank Charges G/L Account (Tcode: FS00)

G/L Account 400020

Company Code

Click on create




Short Text Bank Charges A/C

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G/L Acct Long Text Bank Charges Account




Sort Key 001

Go to Create/bank/Interest Tab


Save

2. Creation of Cash Discount Taken G/L Account (Tcode:

FS00)

G/L Account 300010

Company Code

Click on create




Short Text Cash Dis.Taken A/C

G/L Acct Long Text Cash Discount Taken Account




Sort Key 001



Save

3. Creation Accounts for Cash Discount Taken



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Payments- Outgoing Payments Global Settings- Define Accounts for

Cash Discount Taken

(Tcode: OBXU)

Execute

Chart of Accounts

Enter

Save

Account 300010

Save and enter

Note: Through SKE transaction system will post cash discounts

automatically by account 300010

4. Define Accounts for Bank Charges (Vendors)

Path: Same path (Tcode: OBXK)

Execute

Double click on Bank Charges BSP

Chart of Accounts

Enter

Account 400020

Save and enter

Note: Through BSP transaction system will post bank charges

automatically by account 400020

5. Outgoing payment to vendor with bank charges and cash

discount (Tcode: F-53)

Scenario:

Invoice amount

3500

0

Cash discount 500

Bank Charges 100

Entry: Dr Cr

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Vendor A/C

3500

0

Bank Charges 100

To Bank A/C

3460

0

To Discount 500

Document

Date

Type KZ Company

Code


Bank Data Section


Amount

Bank Charges


Account

Enter

Go to Standard Tab

Cash discount



means block color.


Against invoice, enter Cash discount amount.

Goto Menu bar


Post (Ctrl+S)

Down payments (Advance To vendors)

1. Create Advance to Vendor G/L Account (Tcode: FS00)

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G/L Account 290200

Company Cod

Click on create




Short Text Adv. to Vendors A/C

G/L Acct Long Text Advance to Vendors Account


Recon. account for acct type K Vendors

Select Line item Display

Sort Key 012



Save

2. Assign Adv. to Vendor Account


Receivable and Accounts Payable- Business Transactions- Down

Payment Made- Define Alternative Reconciliation Account for Down

Payments (Tcode: OBYR)

Execute

Double click on

K A Dwn pmt Down payment on current assets

Chart of Accounts

Enter

Recon.acct 190100 (Dom. Vendors A/C)

Special G/L Account 290200 (Advance to Vendors A/C)

Save and enter

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Note: Reconciliation account is assigned in vendor master records.

Against reconciliation account, we assign advance to vendors account.

When ever we give advance to vendors, system automatically posted

to advance to vendors account

Scenario 1

Advance to Vendor : Rs 100000

Service : Rs 100000

1. Advance to Vendor

Path: Accounting - Financial Accounting - Accounts Payable - Document Entry - Down

Payment - F-48 - Down Payment (Tcode:F-48)

Document

Date

Type KZ Company

Code


Vendor Section

Account

Special G/L Ind. A

Bank Section


Amount 100000

Enter

Amount

Go to Menu bar

Document - simulate

Save

2. Vendor line item Report (Tcode: FBL1N)

Vendor

Company code

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Select open items

Select Special G/L Transactions

Execute (F8)

3. Service Invoice (Tcode: FB60)


Company code

Enter

Vendor

Invoice date

Amount 100000


400100 S Debit 100000

Post (Ctrl+S)


Vendor

Company code

Select open items

Select normal items

Select Special G/L transactions

Execute

5. Clearing advance against Invoice

Path: Accounting- Financial Accounting- Accounts Payable- Account- F-

44 – Clear (Tcode: F-44)

Account

Company code

Special G/L ind. A

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Select Normal OI

Select invoice and advance (Against which invoice you want to settle

which advance)

Observe Amount entered and Assigned should be Zero

Go to Menu bar


Post (Ctrl+S)


Vendor

Company code


Select normal items


Execute

Go to Menu bar

Environment – Clearing transactions

We can see invoices settled against advances

Scenario 2

Advance to Vendor : Rs 100000

Invoice : Rs 50000

1. Advance to vendor (Tcode:F-48): Rs100000


Payment - F-48 - Down Payment (Tcode: F-48)

Document

Date

Type KZ Company

Code


Vendor Section

Account

Special G/L Ind. A

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Bank Section


Amount 100000

Enter

Amount *

Go to Menu bar

Document - simulate

Save

2. Invoice (Tcode: FB60): Rs50000


Company code

Enter

Vendor

Invoice date

Amount 50000


400100 S Debit 50000

Post (Ctrl+S)

See Report (Tcode: FBL1N)

3. Transfer of Advance


Payment - F-54 - Clearing (Tcode: F-54)

Document

Date

Type KZ Company

Code


Vendor Section

Account

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Keep blank invoice Field

Text Being Transfer posting

Enter

Transfer posting 50000

Save

4. Settle transfer Advance against Invoice (Tcode: F-44)

Path: Accounting- Financial Accounting- Accounts Payable- Account- F-

44 – Clear (Tcode: F-44)

Account

Company code

Select Normal OI

Select invoice and Transfer advance (Against which invoice you want

to settle which advance)

Observe Amount entered and Assigned should be Zero

Go to Menu bar


Post (Ctrl+S)


Scenario 3

Advance To Vendor : Rs 100000

Invoice : Rs 150000

1. Advance to Vendor (Tcode: F-48): Rs100000



Document

Date

Type KZ Company

Code


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Account

Special G/L Ind. A


Amount 100000

Enter

Amount *

Go to Menu bar

Document - simulate

Save


2. Invoice (Tcode: FB60): Rs50000


Company code

Enter

Vendor

Invoice date

Amount 150000


400100 S Debit 150000

Post (Ctrl+S)


3. Transfer posting (Tcode: F-54): Rs100000


Entry - Down Payment - F-54 - Clearing (Tcode: F-54)

Enter header data (Type KA)

Account

Keep blank invoice Field

Text Being Transfer posting

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Enter


Save

4. Outgoing payment (Tcode: F-53): Rs 50000



Document

Date

12.10.201

1

Type KZ Company

Code

4301

Posting Date 12.10.201

1

Period 7 Currency/Rate INR

Bank Data Section


Amount 50000


Account

Enter

Note: Select Invoice and transferred advance against which invoice you

want to settle transfer advance and outgoing payment (50000),


means block color.


Go to menu bar


Post (Ctrl+S)

Entries for Accounts Payables Advance

Scenarios

Scenario 1

Advance 100000

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Invoice 100000

1 F-48 Advance to Vendor Dr Cr

Advance to Vendor

A/C

10000

0

To Bank A/C

10000

0

2 FB60 Invoice

Service A/C

10000

0

To Vendor A/C

10000

0

3 F-44

Settlement of Advance against

invoice

Vendor A/C

10000

0

To Advance to Vendor A/C

10000

0

Scenario 2

Advance 100000

Invoice 50000

1 F-48 Advance to Vendor

Advance to Vendor

A/C

10000

0

To Bank A/C

10000

0

2 FB60 Invoice

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Service A/C 50000

To Vendor A/C 50000

3 F-54

Transfer posting of

Advance

Vendor A/C 50000

To Advance to Vendor A/C 50000

4 F-44

Clearing of transfer advance

against invoice

No Entry

Scenario 3

Advance 100000

Invoice 150000

1 F-48 Advance to Vendor

Advance to Vendor

A/C

10000

0

To Bank A/C

10000

0

2 FB60 Invoice

Service A/C

15000

0

To Vendor A/C

15000

0

3 F-54

Transfer posting of

Advance

Vendor A/C

10000

0

To Advance to Vendor A/C 10000

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0

4 F-53 Outgoing payment

Vendor A/C 50000

To Bank A/C 50000

Credit memo to vendor:

Definition: Credit memo is issued to vendor for service defects or

material return (Purchase returns)

Path: Accounting- Financial Accounting- Accounts Payable- Document Entry- FB65 -

Credit Memo (Tcode: FB65)

Vendor

Document date

Amount

Go to Payment Tab

Invoice Reference


400100 H Credit *

Post (Ctrl+S)

Entry:

Vendor A/C

To Service A/C

Down Payment Request

Definition: The Concept of authorizing the document entry can be

achieved by the standard SAP functionality for creating and authorizing

the payment request. Payment request will be created by one person

and authorized by another person to keep control

1. Assign G/L Account for down payment request

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Receivable and Accounts Payable- Business Transactions- Down

Payment Made- Define Alternative Reconciliation Account for Down

Payments

(Tcode: OBYR)

Execute

Double click on K F Pmt req Down payment request

Chart of account :

Enter

Recon. Acct Special G/L account

190100 (Dom. Vendors A/C) 290200 (Advance to Vendors A/C)


2. Enter Down Payment request

Path: Accounting- Financial Accounting- Accounts Payable- Document Entry- Down

Payment- F-47 – Request (Tcode: F-47)

Document

Date

Type KA Company Code


Account 4000000 (Vendor Number)

Trg.sp.G/L Ind. A

Enter

Amount 100000

Due on

Post (Ctrl+S)

Down Payment Request number:

3. Vendor Line Item Report (Tcode: FBL1N)

Vendor

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Company code

Select Open items

Select Noted Items

Execute (F8)

4. Payment against down payment request



Document

Date

Type KZ Company Code


Vendor Section

Account

Special G/L Ind A

Bank Section


Amount 100000

Click on Request (F6)

Select Request number against which request you are sending

advance to vendor

Click on Create Down Payment (Shift+F1)

Post (Ctrl+S)


Vendor

Company code


Select Noted Items

Execute (F8)

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Screen Layout per company code (Vendors)

Account Group controls fields in the vendor master record. Account

groups are client level. Any company code can use these account

groups with in the client. But we can maintain fields at company code

level also

1. Define Screen layout per company code (Vendors)



Preparations for Creating Vendor Master Data- Define Screen Layout

per Company Code (Vendors) (Tcode: OB24)

Execute


Company code

Enter

Select Company code

Click on Edit Field Status (F2)

Double click on Account management

Select Head Office Field as Suppress

Save (Ctrl+S)

2. Create Vendor Master Record (Tcode: FK01)

System will not show you head office field while creating vendor

master record in your company code

Screen Layout per Activity (Vendors)

Activities in vendor master records are creation, change and display

vendor master records. For each activity, we can maintain field

controls (Suppress, Required, Optional and Display). For ex: system

should not allow changing some critical fields even we are in change

mode

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1. Define Screen Layout per Activity (Vendors)



Preparations for Creating Vendor Master Data- Define Screen Layout

per Activity (Vendors) (Tcode: OB23)

Execute

Double click on Change Vendor (Accounting)

Double click on Company code data


Select Reconciliation account as display mode


2. Change Vendor Master Record (Tcode: FK02)

Vendor

Company Code

Company code data section

Select Accounting Info

Enter

Observe reconciliation account as display mode. We can not edit

reconciliation account

Head Office Vs Branch Office

Scenario: Wipro is our vendor. Wipro Company has some branches.

Branches and head office will provide service to us but we make

payment to head office

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1. Create two vendor master records



Company Code

Account Group

Enter

Title Company

Name

Search Term

Street

House number

Postal code

City

Country IN



Sort Key 012

Cash mgmnt group A1

Enter

Payt terms 0001 (Payable Immediately Due

Net)

Save (Ctrl+S)

Vendor Head office number :

Wipro Head Office Bangalore

Wipro Branch Office Hyderabad

Wipro Branch Office Chennai

Wipro Branch Office Delhi

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Company Code

Account Group

Enter

Title Company

Name

Search Term

Street

House number

Postal code

City

Country IN



Head Office 4300005

Sort Key 012

Cash mgmnt group A1

Enter


Net)

Save (Ctrl+S)

Vendor Branch Office number:

2. Postings in Branch (Tcode: FB60)


Company code

Enter

Vendor

Invoice Date

Amount

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Enter


400100 S Debit *

Post (Ctrl+S)


Vendor

Company code

Select Open items

Execute (F8)

Enter

4. Outgoing payment for Head Office (Tcode: F-53)

Document

Date

Type KZ Company

Code


Bank Data Section


Amount 25000


Account

Enter



means block color.


Go to Menu bar


Post (Ctrl+S)

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Inter Company Transactions

1. Vendor invoice posting




Company code

Enter

Vendor

Invoice Date

Amount

G/L Acct D/C Amount in doc.

Curr

Company

Code

400100 S Debit *

Post (Ctrl+S)

Go to Menu bar


We can see document

2. Outgoing payment



Document

Date

Type KZ Company

Code


Bank Data Section


Amount


Account

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Enter



means block color.



G/L Account

Company code

Select open items

Execute (F8)

4. Intercompany clearing

a. Incoming payment

Path: Accounting- Financial Accounting- General Ledger- Posting- F-06 - Incoming

Payments (Tcode: F-06)

Document

Date

Type SA Company

Code



Amount

Account

Enter

Go to Menu bar


Save

b. Report (Tcode: FBL3N)

G/L Account

Company code

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Execute (F8)

c. Outgoing payment


Document

Date

Type SA Company

Code



Amount

Account

Enter

Go to Menu bar


Save

Accounts Receivables:

AR deals with customers, terms and conditions with customers,

customer invoice, customer incoming payments, advance from

customers and item interest calculation and dunning (remainder

letters)

Features of Accounts receivable component:

1. Serves as a complete record of business transactions with

customers

2. Accounting of receipts manually and also automatic clearing of

payments.

3. When drawing up financial statements, the items in foreign

currency are revalued

4. The credit memo can be entered in any of the currency, for

which the exchange rates are available. The credit memo details

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are stored in the entered currency but the ledgers are posted in

the local currency (Company code currency)

5. Simultaneous posting to appropriate general ledger accounts,

Dunning (Remainder letters), balance confirmation etc.

6. Range of tools that you can use to monitor open items, such as

account analysis, due date list etc

Business Process

1. Customer down payments (Advance from customers)

SAP gives a facility to work with customer down payments. If the

customer pays by check/Demand draft as a down payment, it can be

captured in a separate G/L Account (Advance from customer account)

and can be adjusted against invoice.

2. Customer incoming payment

a. This function allows the AR user to record receipts from

customers in the system and adjusts them against invoices

and debit memos.

b. In the case of receipts received against invoices, the user

can enter the invoices to be adjusted. User can record the

receipt as an “on account” receipt, and link to one or more

invoices later invoices, advances and debit memos can be

settled to the extent of the outstanding amount

c. Invoices, advances and debit memos can be partially

settled.

d. In case the receipt currency is not the local currency, the

same is converted into local currency (Company code

currency) for accounting purposes. The rates as on the

value date will be used for conversion. However, the

receipt details are stored in the entered currency; the

balances are stored both in the document currency and

also in the ledger currency

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e. Receipt number is generated and the user can print the

receipt. This can be sent across to the customer, as an

acknowledgement.

3. Clearing of invoices and advances

a. Account clearing process is used to clear one or more open

line items with in one account. On clearing open items,

system will create a clearing document. Ex: customer can

be cleared against vendor invoice posting). Clearing

process may be manual or automatic.

4. Accounting of Debit/Credit Memo’s

a. The debit memos are processed for bank charges, sharing

of cost for common expenditures.

b. The credit memos are processed for the price differences,

wrong billing, excess billing in terms of prices, whenever

there is a retrospective pricing effects

5. Sales Realization – Provisions

a. Each regional office is doing this provisional entry activity

at the end of the month

b. They calculate the provisional value of the Selling and

distribution expenses, primary freight and secondary

freight.

6. Correspondence with customer

The Account statement and balance confirmations can be sent to

customers periodically.

Reminder notice can be sent to all customers whose payments are

overdue. This is possible by using the SAP standard functionality.

1. Define Account Groups with Screen Layout (Customers)

Definition: Account group means list of customers will be segregated

into

different account groups. For ex: Domestic customers and foreign

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customers or South customers, North customers, East Customers and

West Customers etc. It controls fields in master record and number

range

intervals

Path: SPRO- Financial Accounting- Accounts Receivable and Accounts

Payable- Customer Accounts- Master Data- Preparations for Creating

Customer Master Data- Define Account Groups with Screen Layout

(Customers) (Tcode: OBD2)

Execute


Account Group

Name Domestic Customers

Save and enter

2. Create Number Ranges for Customer Accounts

Path: Same path (Tcode: XDN1)

Execute



No

From number

To Number

Enter

Save and enter

3. Assign Number Ranges to Customer Account Groups

Path: Same path (Tcode: OBAR)

Execute


Account Group

Enter

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Number range

Save and enter

4. Define Tolerances (Customers)



Payments- Manual Incoming Payments- Define Tolerances (Customers)


Company code


5. Create sundry debtors (Tcode:FS00)

G/L Account 290300

Company Code

Click on create



Select balance sheet Account

Short Text Sundry Debtors A/C

G/L Acct Long Text Sundry Debtors A/C


Recon.Acct for Account type D Customers


Sort Key 031


Field status Group G067

Save

6. Creation of customer master Record

Path: Accounting - Financial Accounting - Accounts Receivable – Master

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Records - FD01 - Create (Tcode: FD01)

Account Group

Company Code

Enter

Title

Name

Street

House Number

Postal code

City

Country IN (India)

Click on Company Code Data (Ctrl+F2)

Recon.Account 290300 (Sundry Debtors A/C)

Sort key 031

Save

7. Creation of Service Revenue A/C (Tcode:FS00)

G/L Account 300100

Company Code

Click on Create




Short Text Ser.Revenue A/C

G/L Acct Long Text Service Revenue Account

Go to control data Tab



Sort Key 001


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Save

8. Maintain number ranges 18, 14 and 16 for DR, DZ and

DA Respectively (Tcode: FBN1)

Company Code



No 18

Year



Enter


No 14

Year



Enter


No 16

Year



Enter

Save and enter

9. Post Customer Invoice

Path: Accounting - Financial Accounting - Accounts Receivable –

Document

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Entry- FB70 – Invoice (Tcode: FB70)


Company code

Enter

Customer

Invoice Date

Posting Date

G/L Acct

D/C

Amount doc. Curr

Post (Ctrl+S)

10. Customer Line items

Path: Accounting - Financial Accounting - Accounts Receivable -

Account - FBL5N - Display/Change Line Items (Tcode: FBL5N)

Customer Account

Company Code

Select open items

Execute (F8)

11. Customer Credit Memo

Path: Accounting- Financial Accounting- Accounts Receivable-

Document

Entry- FB75 - Credit Memo (Tcode: FB75)


Company code

Enter

Customer

Invoice Date

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Posting Date

G/L Acct

D/C

Amount doc. Curr

Post (Ctrl+S)

Incoming payments

1. Standard incoming payment


Document Entry - F-28 - Incoming Payments (Tcode: F-28)

Document

Date

Type DZ Company

code

Posting Date Period Currency

Bank Data Section


Amount 25000


Account

Enter

Select Invoice against which invoice you are receiving payment from

Customer. Amount entered and assigned amount should be same

Note: Selection means blue color and deselection means block color.

Double click on block color is selection and double click on blue color is

deselection

Post (Ctrl+S)

2. Customer Line items


Account –

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FBL5N - Display/Change Line Items (Tcode: FBL5N)

Customer Account

Company Code


Execute (F8)

3. Partial payments (Tcode:F-28)

Document

Date

Type DZ Company

code


Bank Data Section


Amount 25000


Account

Enter

Go to partial pmt Tab



Payment amount 5000



deselection

Post (Ctrl+S)

4. Residual items (Tcode:F-28)

Definition: In Residual items, system will re determine terms of

payments. Customer unable to make payments, we can discuss with

customer and give new terms of payments for remaining payment

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Document

Date

Type DZ Company

code


Bank Data Section


Amount


Account

Enter

Go to Residual Items Tab



Residual Payment



deselection

Post (Ctrl+S)

Automation of Bank Charges and Cash discount given

1 Creation of Cash Discount Given A/C (Tcode: FS00)

G/L Account 400030

Company Code

Click on Create




Short Text Cash Dis. Given A/C

G/L Acct Long Text Cash Discount Given Account


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Select line items tab

Sort Key 001



Save

2 Creation of Bank Charges G/L Account (Tcode: FS00)

G/L Account 400020

Company Code

Click on create




Short Text Bank Charges A/C

G/L Acct Long Text Bank Charges Account




Sort Key 001



Save

3 Assign Cash Discount Given A/C


Payable- Business Transactions- Incoming Payments- Incoming

Payments Global Settings- Define Accounts for Cash Discount Granted

(Tcode: OBXI)

Execute

Chart of Accounts

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Enter

Save

Account 400030 (Cash Dis. Given A/C)

Save and enter

4 Define Accounts for Bank Charges (Customers)

Path: Same path (Tcode: OBXK)

Execute

Double click on Bank Charges BSP

Chart of Accounts

Enter

Account 400020 (Bank Charges A/C)

Save and enter

5 Incoming payment with bank Charges and Cash discount

given (Tcode:F-28)

Document

Date

Type DZ Company

code


Bank Data Section


Amount 25000


Account

Enter



Cash Discount

Note: Selection means blue color and deselection means block

color.

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Double click on block color is selection and double click on blue

color is deselection

Post (Ctrl+S)

Advance from customers

1 Create Advance from Customers G/L Master Record

(Tcode: FS00)

G/L Account 190200

Company Code

Click on Create




Short Text Adv.From Customer A/C

G/L Acct Long Text Advance from Customers A/C


Recon.Account for Acct type D Customers


Sort Key 031

Go to Create/Bank/interest Tab


Save

2 Assign Advance from Customers Account


Payable- Business Transactions- Down Payment Received- Define

Reconciliation Accounts for Customer Down Payments (Tcode: OBXR)

Execute

Double click on

D A Dwn pmt Down payment

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Chart of Accounts

Enter

Recon.acct 290300 (Sundry Debtors A/C)

Special G/L account 190200 (Adv. from customers

A/C)

Save and enter

Scenario 1

Advance From Customer : 100000

Customer Invoice : 100000

1 Advance from Customer


Document Entry -Down Payment - F-29 - Down Payment (Tcode: F-29)

Document

Date

Type DZ Company

code


Customer

Account

Special G/L Ind A


Amount 100000

Enter

Amount *

Save

2 Customer Line items



Customer Account

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Company Code

Select open items


Execute (F8)

3 Create Customer Invoice (Tcode:F-22)


Document



Company code

Enter

Customer

Invoice Date

Posting Date

G/L Acct

D/C

Amount doc. Curr

Post (Ctrl+S)

4 Clear Down payment against Invoice


Account- F-32 – Clear (Tcode: F-32)

Account

Company code

Special G/L ind A


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Select Invoice and advance amount (Against which invoice you want

settle which advance). Observe amount entered and assigned amount

should be zero.

Go to Menu bar


Save (Ctrl+S)

Scenario 2

Advance from customer : 100000


1 Create Advance from customer (Tcode: F-29)

2 Customer Invoice (Tcode: FB70)

3 Transfer posting


Document Entry - Down Payment - F-39 - Clearing (Tcode: F-39)

Document

Date

Type DA Company

code


Account

Keep blank Invoice ref. field

Enter


Go to Menu bar

Document - simulate

Save

4 Clear Invoice against Down payment


Account- F-32 – Clear (Tcode: F-32)

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Account

Company code


Select Invoice and transfer advance amount (Against which invoice you

want settle which transfer advance). Observe amount entered and

assigned amount should be zero.

Go to Menu bar


Save (Ctrl+S)

Scenario 3

Advance from customer : 100000


1 Advance from customer (Tcode: F-29): Rs100000

2 Customer Invoice (Tcode: FB70): Rs150000

3 Transfer posting (Tcode: F-39): Rs100000

4 Reciept of Remaining amount (Tcode: F-28): Rs50000

Item Interest Calculation

Definition: System will calculate interest on Customer overdue

invoices. System will calculate interest each invoice wise, which is

called item interest calculation.

Ex:

Item Interest Calculation

Customer 3600000 (Matrix Ltd)

Terms of payment 0001 Immediately due net

Interest on late payment 15%

Invoice Date Amount Aug Sept Oct

Late

days Interest

Interest

rounding

01.08.2011 35000 30 30 12 72 1035.61644 1035.62

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15.08.2011 45000 16 30 12 58 1072.60274 1072.6

05.09.2011 10000 25 12 37 152.054795 152.05

25.09.2011 5000 5 12 17 34.9315068 34.93

02.10.2011 60000 10 10 246.575342 246.58

12.10.2011 155000 2541.78

Interest on late

payment 2541.78

12.10.2011 Balance 157541.78

1. Define Interest Calculation Types

Path: SPRO - SAP Reference IMG- Financial Accounting- Accounts

Receivable and Accounts Payable- Business Transactions- Interest

Calculation- Interest Calculation Global Settings- Define Interest

Calculation Types (Tcode:OB46)

Execute


Int ID

Name Item interest

Int calc.type P (Item Interest Calculation)

Save and enter

2. Prepare Item Interest Calculation

Path: Path: SPRO - SAP Reference IMG- Financial Accounting- Accounts


Calculation- Interest Calculation Global Settings- Prepare Item Interest

Calculation

Execute


Interest Ind.

Select No Cleared Items

Ref.Date 2 (Document date)

Calendar type G

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Select only calculate interest on debit items

Select post interest

Save and enter

3. Define Reference Interest Rates

Definition: Reference interest rate nothing but interest rate

Path: SPRO- SAP Reference IMG- Financial Accounting- Accounts


Calculation- Interest Calculation- Define Reference Interest Rates

(Tcode: OBAC)

Execute


Ref.int.rate

Long text

Description

Date from

Currency INR

Save and enter

4. Define Time-Based Terms

Path: same path (Tcode: OB81)

Execute

Click on New entries (F5)

Int.Calc.Indicator

Currency Key INR

Eff.From

Sequential number 1

Term Debit interest: arrears interest

calc.

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Ref. interest rate

Save and enter

5. Enter Interest Values

Path: Same path (Tcode: OB83)

Execute


Reference Valid from Int.Rate

Save and enter

6. Create Interest Income G/L Master Record (Tcode: FS00)

G/L Account 300020

Company Code

Click on Create



Select P&L Statement acct

Short text Interest Income A/C

G/L Acct Long Text Interest Income A/C




Sort Key 001



Save

7. Assign Interest income and masking

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Path: SPRO- SAP Reference IMG- Financial Accounting- Accounts


Calculation- Interest Posting- A/R: Calculation of Interest on Arrears

(Tcode:OBV1)

Execute

Click on Accounts (F7)

Chart of accounts

Enter

Acct symbol Currency G/L Acct

0003 INR 300020

1000 INR ++++++++

(Masking)

Save and enter

8. Assign Interest Calculation Indicator in customer master

record (Tcode: FD02)

Customer

Company Code

Enter

Click on Company Code data (Ctrl+F2)

Interest Indic.

Save

9. Post customer invoice with one month back date (Tcode:

F-22)

10. Calculate item interest


Periodic Processing - Interest Calculation - Item Interest Calculation -

FINT - Item Interest Calculation (Tcode: FINT)

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Customer Account From To

Company code

Interest Indicator

Select Test Run

Execute (F8)

Observe whether interest calculated properly or not

One time go back

Deselect Text run

Execute (F8)

Enter

11. Customer line item report



Customer Account

Company Code

Select open items

Execute (F8)

Observe customer is updated with interest or not

12. Display document

Path: Accounting- Financial Accounting- Accounts Receivable-

Document- FB03 – Display (Tcode: FB03)

Document number

Company code

Fiscal year

Enter

Screen Layout Per Company code (Customers)

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Account Group controls fields in the vendor master record. Account

groups are client level. Any company code can use these account

groups with in the client. But we can maintain fields at company code

level also

1. Define Screen Layout Per Company code (Customers)


Receivable and Accounts Payable- Customer Accounts- Master Data-

Preparations for Creating Customer Master Data- Define Screen Layout

per Company Code (Customers) (Tcode: OB21)

Execute


Company code

Enter

Select company code

Click on Edit Field Status (F2)


Select Head office field suppress


2. Create Customer Master Record (Tcode: FD01)

System will not show you head office field while creating vendor

master record in your company code

Screen Layout per Activity (Customers)

Activities in customer master records are creation, change and display

customer master records. For each activity, we can maintain field

controls (Suppress, Required, Optional and Display). For ex: system

should not allow changing some critical fields even we are in change

mode

1. Define Screen Layout per Activity (Customers)

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Receivable and Accounts Payable- Customer Accounts- Master Data-

Preparations for Creating Customer Master Data- Define Screen Layout

per Activity (Customers) (Tcode: OB20)

Execute

Double click on Change Customer (Accounting)

Double click on Company code data

Double click on Account Management

Select Reconciliation account as display mode


2. Change customer master record (Tcode: FD02)

Customer

Company code

Enter

Click on Company code data (Ctrl+F2)

Go to Account management Tab

Observe reconciliation account field as display mode

Head Office Vs Branch Office

Scenario: Wipro is our vendor. Wipro Company has some branches.

Branches and head office will provide service to us but we make

payment to head office

Wipro Head Office Bangalore

Wipro Branch Office Hyderabad

Wipro Branch Office Chennai

Wipro Branch Office Delhi

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1. Create two customer master records

Path: Accounting - Financial Accounting - Accounts Receivable – Master

Records - FD01 - Create (Tcode: FD01)

Account Group

Company Code

Enter

Title

Name

Street

House Number

Postal code

City

Country IN (India)



Sort key 031

Save

Head office number:

Account Group

Company Code

Enter

Title

Name

Street

House Number

Postal code

City

Country IN (India)


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Head Office

Sort key 031

Save

Branch Office number :

2. Postings in Branch


Document



Company code

Enter

Customer

Invoice Date

Posting Date

G/L Acct

D/C

Amount doc. Curr

Post (Ctrl+S)

3. Head office/Branch Report



Customer Account

Company Code

Select open items

Execute (F8)

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4. Incoming Payment


Document Entry - F-28 - Incoming Payments (Tcode: F-28)

Document

Date

Type DZ Company

code


Bank Data Section


Amount 25000


Account

Enter





deselection

Post (Ctrl+S)

Dunning procedure

Definition: If the business partners may fail behind on payments you

can send them a payment reminder or a dunning notice to remind

them of their outstanding debts

1. Define Dunning procedure

Definition: The Dunning procedure controls how dunning carried out by

the system. We can define as many dunning procedures as we like.


Receivable and Accounts Payable- Business Transactions- Dunning-

Dunning Procedure- Define Dunning Procedures (Tcode: FBMP)

Execute

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Click on New procedure (F9)

Dunn.Procedure

Name

Dunning interval in days

No. of dunning levels

Select Standard transaction dunning

Ref. Dunning procedure for Texts

Click on Dunning levels (F5)


1 2 3 4 5

Calculate interest - - - - -

Always dun - - - - -

Print all items - - - - -

Click on Charges (F6)

Currency INR

Enter

Dunn.Level Dunn.charges

1 10

2 20

3 30

4 40

5 50

Click on minimum amounts (F7)

Currency INR

Enter

Dun Minimum amounts

1 10000

2 20000

3 30000

4 40000

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5 50000

Click on Dunning Texts (F8)

Company code

Select Customer

Enter

Click on New Company code (F9)

Company code

Enter

Select Dunning by dunning area

Select Separate notice per dunning level

Save and enter

Click on Dunning Texts

Company code

Select Customer

Enter

Dun Form

1 F150_BE_DUNN_01

2 F150_BE_DUNN_01

3 F150_BE_DUNN_01

4 F150_BE_DUNN_01

5 F150_BE_DUNN_01

One time go back

Save and enter

20.2. Assign dunning to customer master (Tcode: FD02/ XD02)

Customer

Company code

Enter

Click on company code data (Ctrl+F2)

Go to Correspondence Tab

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Dunn.Procedure

Save

20.3. Run the Dunning procedure

Path: Accounting- Financial Accounting- Accounts Receivable- Periodic Processing-

F150 – Dunning (Tcode: F150)

Run Date

Identification

Go to Parameter Tab

Dunning date

Docmnts posted up to

Company code

Customers From To

Save

Go to Status Tab

Status is Parameters were maintained

Click on Schedule (F7)

Select Start Immediately

Click on Schedule (F5)

Keep enter until status is Dun. Selection is complete

Click on dunning list (Shift+F6)

Enter

One time go back

Click on Dunning print out (F6)

Enter

Keep on enter until status is dun.Printout is complete

Click on Dunn.history (Shift+F9)

Account type D (Customers)

Company code

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Customer From To

Execute (F8)

Select ______

Click on Display dunning notice (Shift+F4)

Click on Print preview

We can see Dunning notice 1

Three times go back

Click on Indiv.Dunn.notice

Company code

Customer

Click on Print out (F6)

Click on yes

Go to Menu bar

System – Services – Output Control

Select spool number

BANK ACCOUNTING

1. Creation of House Banks

Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Bank

Accounting - Bank Accounts - Define House Banks (Tcode: FI12)

Execute

Company Code

Enter


House Bank

Bank Country IN (India)

Bank Key

Click on create

Bank name

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Street

City

Bank Branch

Enter

Double click on bank Accounts folder


Account ID

Description

Bank Account

G/L 290100 (Bank A/C)

Currency INR (Indian Rupees)

Save and enter

Notes:

Bank Key: you specify the bank key under which bank data from the

respective country is stored

SWIFT Code: SWIFT Code will be useful for international payments.

SWIFT Code identifies a bank throughout the world

Bank Group: Bank Group serves to classify banks in such a way that

payment transactions within a group are processed as quickly as

possible (bank chain optimization).

Post Bank Acct: If you set the indicator the account to be treated as a

post office bank current account. This field is used in Germany and

Switzerland

2. Maintain Check Leaves



Payments- Automatic Outgoing Payments- Payment Media- Check

Management- Define Number Ranges for Checks (Tcode: FCHI)

Execute

146

sapevent:DOCU_LINK%5CGL:payment%20transactions

IGROW SOFT

Paying company Code

House bank

Account ID

Click on Change (Shift+F5)

Click on Create (Shift+F5)

Lot Number 1

Check number 100101

To 100200

Short Info Bank Check lots

Purchasing date

Enter

Save

3. Select Relevant to cash flow in bank account (Tcode:

FS00)

G/L Account 290100

Company code

Click on Change


Select Relevant to Cash flow

Save (Ctrl+S)

Note: this indicator determines the G/L Account is a cash flow account.

The following Accounts typically define as cash flow account

Bank Account

Account for bank charges

Cheque clearing account

Clearing account for incoming payment

Note: We have to know payment document number then only we can

issue cheque

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4. Define Void Reason Codes

You define void reason codes for prenumbered checks.

The use of prenumbered checks is listed by using the check

management program. You must mark check forms as voided if they

were made invalid by mistake, if they were stolen or if they were made

void due to other reasons. To do this, specify the reason for voiding by

using a ratio.



Payments- Automatic Outgoing Payments- Payment Media- Check

Management- Define Void Reason Codes (Tcode: FCHV)

Execute


Reason

Void Reason Code Check Stolen


Check Issue process and Check Register

1. Check Issue to supplier

Prerequisites: Select ‘Relevant to cash flow’ in bank general ledger

master record. We have to know payment document number, then

only we can issue check to supplier

Path: Accounting- Financial Accounting- Accounts Payable- Environment- Check

Information- Create- FCH5 - Manual Checks (Tcode: FCH5)

Payment document no.

Paying company code

Fiscal Year

House Bank

Account ID

Check number

Enter

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Post (Ctrl+S)

2. Check Register Report

Path: Accounting- Financial Accounting - Accounts Payable - Environment - Check

Information - Display - FCHN - Check Register (Tcode: FCHN)

Paying company code

House bank

Account ID

Execute (F8)

We can see list of checks issued against payments

3. Void unused checks


Information – Void - FCH3 - Unused Checks (Tcode: FCH3)

Paying company code

House Bank

Account ID

Check number from

Void reason code

Click on Void (Shift+F5)

See Report (Tcode: FCHN)

4. Void Issued Checks


Information – Void - FCH9 - Issued Checks (Tcode: FCH9)

Paying company code

House Bank

Account ID

Check number

Void reason code

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Click on Void (Shift+F5)


5. Cancel Payment


Information – Void - FCH8 - Cancel Payment (Tcode: FCH8)

Paying company code

House bank

Account ID

Check Number

Void Reason code

Reversal Reason

Click on Cancel Payment (Shift+F5)


See Report (Tcode: FB03)

Automatic Payment Program (APP)

Vendor payments can be manual or automatic. The general aspects

related to vendor payments are terms of payments, method/media of

payment, manual and automatic payment

The payment methods are as follows,

C = Cheque

E = ECS (Electronic Clearing System)

T = Bank Transfer

A = Cash

D = Demand Draft/Pay Order (Needs to be created in SAP)

Automatic payments are configured to make vendor payments based

on payment terms. The due date wise/vendor invoice wise payment

proposal will be generated and this proposal can be edited to make the

selective payments.

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After the payment list has been finalized, the payment run will be

executed and accounting entry will be posted automatically. Payment

advice and cheque will be printed through system

Configuration for APP:

1. Set up Payment Methods per Country for Payment

Transactions

Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Accounts


Payments- Automatic Outgoing Payments- Payment Method/Bank

Selection for Payment Program- Set Up Payment Methods per Country

for Payment Transactions

Execute


Country IN (India)

Pymt Method C

Description Check

Select Outgoing payments

Select Check

Select Allowed for Personnel payments

Select Street, P.O.box or P.O.box pst.code

Document type for payment ZP

Clearing document type ZV

Payment medium program RFFOUS_C


Note: Payment methods will be created at country level

2. Set up Payment Methods per Company Code for Payment

Transactions

Path: Same path

Execute

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Paying co.code

Pymt Method C

Minimum amount 100

Maximum amount 99999999

Select Foreign Business partner allowed

Select foreign currency allowed

Select Cust/vendor bank abroad allowed

Go to Form data

Form for the payment medium F110_IN_CHECK

Drawer on the form

Save and enter

Note:

Single payment for marked item: This indicator Causes open items

which contain this payment method to be paid individually. All items,

for which the payment method so indicated is entered explicitly, are

paid individually. If the payment method is not specified explicitly but

is instead selected by the payment program, several items can be paid

together.

Payment per due date: Indicator which specifies that only items that

are due on the same day will be paid with a single payment.

3. Set up Paying Company Codes for Payment Transactions

Path: Same path

Execute


Paying co.code

Minimum amount for incoming 100

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payment

Minimum amount for outgoing

paymen

100

Click on forms

Form for the payment advice F110_IN_AVIS

Click on Sender details

Text ID ST

Letter header F_0001_HEADER

Footer F_0001_FOOTER

Sender F_0001_SENDER

Save and enter

4. Set up All Company Codes for Payment Transactions

Path: Same path

Execute


Company code

Paying company code

Vendor

Sp. G/L transactions to be paid A

Save and enter

Note: Sp. G/L transactions to be paid, all open vendor items that have

been entered with one of the specified special G/L indicators are

included in the payment. Advances will be adjusted against invoice.

System will generate check for remaining balance amount

5. Set up Bank Determination for Payment Transactions

Path: Same path

Execute

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sapevent:DOCU_LINK%5CDS:GLOS.3526B8CCAFAB52B9E10000009B38F974

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Paying co.code

Enter

Select Paying company code

Double click on ranking order


PM C

Crcy INR

Rank order 1

House BK

Double click on Bank Accounts


House bank

Pay. method C

Currency INR

Account ID

Bank Sub account 290100

Double click on Available amounts


House bank

Account ID

Days 999

Currency INR

Available for outgoing payments 99999999

Save and enter

Note:

Days: The specified amounts are only planned for payments where the

value date on the bank account is expected within the number of days

given here. Using the value dates, you can plan amounts on a time

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scale. As a rule, you only need this if you have bill of exchange

payments to be posted before their due date. In all other cases, you

can enter 999 and then the value dates will not be taken into

consideration.

Available for outgoing payments:

The amount planned here is available for outgoing payments. The

amount is only used for payments with which the bank debit entry is

expected during the number of days displayed

6. Maintain number ranges 20 for Document type ZP (Tcode: FBN1)

Company Code



No 20

Year



Enter

Save and enter

7. Maintain Term of payments, Payment method and house

bank in vendor master record (Tcode: FK02)

Vendor

Company Code

Company code data

Select payment transactions

Enter

Payt Terms

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Payment methods C

House bank

Save

8. Manual Check Printing

Path: Accounting- Financial Accounting- Accounts Payable- Document Entry- Outgoing

Payment- F-58 - Post + Print Forms (Tcode: F-58)

Company Code

Payment method C

House Bank

Check lot number 1

Printer for forms LP01

Select print immediately

Click on Enter Payments (Shift+F1)

Document

Date

Type KZ Company Code


Bank posting details

Amount 25000

Payee

Vendor 4000000


Select invoice against which invoice you are giving check

Go to Menu bar


Post (Ctrl+S)

Go to Menu bar

System – Services – Output control

Execute (F8)

Select spool number

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Click on Display Content (F6)

We can see check

9. Run Automatic payment program

Path: Accounting - Financial Accounting - Accounts Payable - Periodic Processing -

F110 - Payments (Tcode: F110)

Run Date

Identification

Go to Parameter tab

Company Codes

Pmt meths C

Next p/date

Vendor 1 9999999999

Save

Go to Status Tab

Observe Status is “Parameters have been entered”

Go to Additional log tab

Select Due date check

Select payment selection in all cases

Select line items of the payment documents

Vendor 1 9999999999

Save

Go to Status Tab

Click on proposal (Shift+F1)

Select Start Immediately

Enter

Keep on enter until Status is “Payment proposal has been created”

Click on Edit proposal (Shift+F4)

Enter

Go to printout/data medium Tab

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RFFOUS_C

Click on Maintain variants (F5)

Select For all Selection screens

Enter

Programs run date

Identification feature

Paying Company Code

House bank

Account Id

Check lot number

Select Print checks

Select Print payment advice notes

Select Print payment summary

Printer LP01

Printer LP01

Printer LP01

Select Print immediately



Keep blank Number of sample printouts field

One time go back

Enter

Meaning

Save

One time go back

Save

Go to Status Tab

Click on Pmnt run (F7)

Select start immediately

Select Create payment medium

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Enter

Keep on Enter until Status is Payment run has been carried out and

Posting orders: ___ generated, _____ completed

Go to menu bar

System- Services - output control

Execute (F8)

Select spool no.

Click on Display Contents (F6)

Alternative payee

We make payments to alternative payee on behalf supplier or service

provider. Check will be generated in the name of alternative payee.

The Alternative payee concept is applicable to Automatic Payment

Program (APP)

1. Create two vendor master records



Company Code

Account Group

Enter

Title

Name

Search Term

Street

House number

Postal code

City

Country IN (India)


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Sort Key 012

Cash mgmnt group A1

Enter


Net)

Payment Methods C (Check)

House bank

Save (Ctrl+S)

Company Code

Account Group

Enter

Title Company

Name

Search Term

Street

House number

Postal code

City

Country IN (India)

Enter and enter

Alternative payee

Click on permitted payee

Payee

Click on Copy and close (Shift+F1)


Sort Key 012

Cash mgmnt group A1

Enter

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Net)

Save (Ctrl+S)

2. Post Invoice (Tcode: FB60)




Company code

Enter

Vendor

Invoice Date

Amount


400100 S Debit *

Post (Ctrl+S)

Go to Menu bar


We can see document

3. Run Automatic Payment Program (APP) (Tcode: F110)

Observe whether system is generating check in the name of

alternative payee which is assigned in vendor master record as

alternative payee

Checks Deposit

1. Create two G/L master records (Tcode: FS00)

Check Deposit A/C

G/L Account 290110

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Company code

Click on Create



Select Balance sheet account

Short Text Checks Deposit A/C

G/L Acct Long Text Checks Deposit A/C




Select Open item management





Save (Ctrl+S)

Checks Issue A/C

G/L Account 290120

Company code

Click on Create




Short Text Checks Issue A/C

G/L Acct Long Text Checks Issue A/C




Select Open item management

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Save (Ctrl+S)

2. Define Posting Keys and Posting Rules for Check Deposit

Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank

Accounting- Business Transactions- Check Deposit- Define Posting Keys

and Posting Rules for Check Deposit

Execute

Chart of Accounts

Enter


Account Text

Main Bank

Check Deposits

Check Issue


Double click on Assign Accounts to Account Symbol Folder

Act Symbol Acct Mod. Currency G/L acct

* INR 290100

* INR 290110

* INR 290120

Save (Ctrl+S)

Double click on Keys for Posting Rules


Posting Rule Text

Check Deposit

Check Issue

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Save (Ctrl+S)

Double click on Define Posting Rules


Posting Rule

Posting area

Posting key 40 (Debit)

Acct symbol

Document type DZ

Posting Type 8 (Clear cred.subl.acct)

Save (Ctrl+S)

3. Create and Assign Business Transactions


Accounting- Business Transactions- Check Deposit- Create and Assign

Business Transactions

Execute


Tran

+- +

Post. Rule

Text Incoming Check Deposit

Save and enter

4. Define Variant for Check Deposit


Accounting- Business Transactions- Check Deposit- Define Variants for

Check Deposit

Execute


Variant

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Name Check Deposit Variant

No. of Line items 1

Enter

Lgth 14

Double click on 10-digit check number

Output Lgth 06

Click on Page down

Double click Customer number (sel.)

Output Lgth 10

Enter

Double click on Invoice reference (sel.)

Output Lgth 10

Enter

Double click on Invoiced amount (sel.)

Output Lgth 15

Enter

Double click on Value date (sel.)

Output Lgth 10

Enter

Save


Short Description Check deposit variant

Enter and enter

Select Variant

Click on Activate

5. Enter Check deposit

Path: Accounting- Financial Accounting- Banks- Incomings- Check

Deposit- FF68 - Manual Entry (Tcode: FF68)

Double click on FF68 - Manual Entry

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Start variant

Processing type 4 (Further Processing Online)

Enter


Bank key

Bank Account

Currency INR

Group 1234

User name SAPUSER

Entry date

Transaction

Posting date

Value date

Currency

Enter

Amount

Check

Customer

Inv.Ref.

Amount

Value date

Save (Ctrl+S)

Go to menu bar

Check Deposit Transaction – Post – Individual List

Bank Reconciliation Statement (BRS)

BRS means difference between bank pass book and cash book. Ex:

Cheque deposit but not cleared, Cheque issue but not paid, Bank

Charges, Interest income etc. We do reconciliation day wise, weekly,

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monthly, quarterly, yearly etc. System will post differences

automatically

1. Define Posting Keys and Posting Rules for Manual Bank

Statement


Accounting- Business Transactions- Payment Transactions- Manual

Bank Statement- Define Posting Keys and Posting Rules for Manual

Bank Statement

Execute

Chart of Accounts

Enter


Account Text

Bank Account

Check Deposit

Check Issue

Bank Charges

Interest Income

Interest Expense


Double click on Assign accounts to account symbol folder


Act Symbol Currency G/L Account

INR 290100 (Bank A/C)

INR 290110 (Check Deposit A/C)

INR 290120 (Check Issue A/C)

INR 400020 (Bank Charges A/C)

INR 300020 (Interest Income A/C)

INR 400080 (Interest Expense A/C)

Save (Ctrl+S)

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Double click on Create keys for posting rules folder


Posting rule Text

Check Deposit

Check Issue

Bank Charges

Interest Income

Interest Expense

Save (Ctrl+S)

Double click on posting rules folder


Posting rule

Posting area 1 (Bank Accounting)

Debit Credit

Posting Key 40 (Debit) Posting key 50

Acct Symbol Acct Symbol

Document type SA

Posting type 1 (Post G/L Account)


Posting rule


Debit Credit

Posting Key 40 (Debit) Posting key 50 (Credit)


Document type SA



Posting rule

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Debit Credit



Document type SA



Posting rule


Debit Credit



Document type SA



Posting rule


Debit Credit



Document type SA



2. Create and Assign Business Transactions


Accounting- Business Transactions- Payment Transactions- Manual

Bank Statement- Create and Assign Business Transactions

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Execute


Tran +- Post. Rule Text

+ Check Deposit

- Check Issue

- Bank Charges

+ Interest Income

- Interest Expense


3. Manual Bank Statement

Path: Accounting- Financial Accounting- Banks- Incomings- Bank

Statement- FF67 - Manual Entry (Tcode: FF67)

Scenario:

1 Opening balance 0

2 Checks deposit 50000

3 Interest Income 3000

4 Bank Charges -600

5 Checks Issued -30000

6 Interest Expenses -1000

Closing Balance

2140

0

Bank Account

Currency

Statement Number

Statement Date

Opening Balance

Closing Balance

Enter

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Tran Value date Amount

50000

3000

600-

30000-

1000-

Enter

Observe “Amount Entered” and “Bank Statement” amounts are same

Save (Ctrl+S)

Go to Menu bar

Bank Statement - Post - Individual statement

Observe processing statistics

Bills of Exchange

Bill of exchange is a negotiable instrument which can be transferable

as per Negotiable Instrument Act. Process sequence as follows,

Post customer invoice

Customer A/C

To Service Revenue A/C

Draw bill on customer

Bills Receivable A/C

To Customer A/C

Discount bill with banker

Bank A/C

Bank Charges A/C

To Bills Discount A/C

Reverse Contingent Liability

Bills Discount A/C

To Bills Receivable A/C

1. Creation of General Ledger Master Records (Tcode: FS00)

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Bills Receivables A/C

G/L Account 290130

Company code

Click on Create




Short Text Bills Receivables A/C

G/L Acct Long Text Bills Receivables A/C



Recon. Account for acct type D Customers





Save (Ctrl+S)

Bills Discount Account

G/L Account 190130

Company code

Click on Create




Short Text Bills Discount Account

A/C

G/L Acct Long Text Bills Discount Account

A/C



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Select Post Automatically Only

Save (Ctrl+S)

Note:

Post Automatically Only: Indicates that this account can only be posted to by the system using account determination tables

2. Define Alternative Reconcil.Acct for Bills/Exch.Receivable


Accounting- Business Transactions- Bill of Exchange Transactions- Bill

of Exchange Receivable- Post Bill of Exchange Receivable- Define

Alternative Reconcil.Acct for Bills/Exch.Receivable (Tcode: OBYN)

Execute

Double click on

Acct type SGL Ind. Name Description

D (Customer) W B/e rec Bill of exchange

receivable

Chart of Accounts

Enter

Recon. Acct Special G/L Account

290300 (Sundry Debtors A/C) 290130 (Bills Receivables A/C)


Note:

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Recon acct is assigned customer master records. Against reconciliation

account we assign bills receivable A/C. when ever we receive from

customer; system automatically post to bills receivable account

3. Define Accounts for Bill of Exchange Transactions



of Exchange Receivable- Post Bill of Exchange Receivable- Define

Accounts for Bill of Exchange Transactions (Tcode: OBYH)

Execute

Double click on Bank Discount Charges BDS

Chart of Accts

Enter

Account 400020 (Bank Charges A/C)


Note:

Through BDS transaction system will post bank charges automatically

by account 400020

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4. Define Bank Sub Accounts



of Exchange Receivable- Present Bill of Exchange Receivable at Bank-

Define Bank Subaccounts (Tcode: OBYK)

Execute


ChA

c

Bank Acct Usage SGL

in

Custome

r Recon.

Act

Bank Sub Acct

for Liab

290100 D Discounting W 290300

(Sundry

Debtors

A/C)

190130 (Bills

Discount A/C)


Bills Receivable Process:

1. Draw bill on customer

Path: Accounting- Financial Accounting- Accounts Receivable- Document Entry- Bill of

Exchange- F-36 – Payment (Tcode: F-36)

Document

Date

Type DZ Company Code

Posting Date Period Currency/Rate INR

Select Incoming payment

PstKy 09 (Special G/L Debit)

Account

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SGL Ind W (Bills Receivables)

Enter

Amount 100000

Due on

Click on process open items (Shift+F4)


Select invoice against which invoice you are drawing bill on customer

and remaining invoices deselect

Observe amount entered and assigned should be same

Go to Menu bar


Post (Crl+S)

2. Discounting Bills with Bank


Document

Date

Type DA Company Code


Usage D Discounting

Bank Account 290100 (Bank A/C)

Amount

Bank Charges

Click on Select Bill of Exch. (Shift+F7)

Doc. Number

Enter

Go to Menu bar


Save (Ctrl+S)

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3. Reverse Contingent Liability


Document

Date

Type DA Company Code


G/L Account 290130 (Bills Receivable A/C)

Usage D Discounting

Due by

Ignore Warning Message

Save (Ctrl+S)

Cash JournalThe cash journal is a subledger of Bank Accounting. It is used to

manage a company's cash transactions. The system automatically

calculates and displays the opening and closing balances, and the

receipts and payments totals. You can run several cash journals for

each company code. You can also carry out postings to G/L accounts,

as well as vendor and customer accounts.

Note:

You should run a separate cash journal for each currency

Cash Journal nothing but Petty Cash Account

1. Create General Ledger Master Records (Tcode: FS00)

Petty Cash Account

G/L Account 290140

Company code

Click on Create



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Short Text Petty Cash A/C

G/L Acct Long Text Petty Cash Account



Select Only Balances in Local Crcy

Select Line Item Display




Select post automatically only

Select Relevant to Cash Flow

Save (Ctrl+S)

Cash Transfer from Bank A/C

G/L Account 290150

Company code

Click on Create




Short Text Cash Tr from Bank A/C

G/L Acct Long Text Cash Transfer from Bank Account







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Save (Ctrl+S)

Cash Transfer to Bank A/C

G/L Account 290160

Company code 4001

Click on Create




Short Text Cash Tr to Bank A/C

G/L Acct Long Text Cash Transfer to Bank Account










Save (Ctrl+S)

Office Supplies A/C

G/L Account 400110

Company code 4001

Click on Create


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Select P&L Statement Account

Short Text Office Supplies A/C

G/L Acct Long Text Office Supplies Account








Save (Ctrl+S)

Cash Sales A/C

G/L Account 300110

Company code 4001

Click on Create



Select P&L Statement Account

Short Text Cash Sales A/C

G/L Acct Long Text Cash Sales Account








Save (Ctrl+S)

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2. Amount Limit

Use

You use these functions to define limit values for the FI cash journal;

where these limits are reached and exceeded, the user is prompted (in

an information dialog box) to run certain activities. The check is always

performed in the first local currency of the company code.

In the countries of the European Union, these functions are used to

draw attention to the legal requirement for identifying the payer

(money laundering law)

Activities

Company code:

You do not have to enter a company code. The entry is then valid for

all company codes within a client that use the currency specified as

the first local currency.

Currency:

Each amount must be specified by the classification of the currency. If

you specify a company code, the currency of the company code is

entered in the currency field and you cannot change this.

Date and amount:

The amount limits are defined time-dependent ("Valid From").


Accounting- Business Transactions- Cash Journal- Amount Limit

Execute


CoCd

Crcy INR (Indian Rupees)

Valid from

Amount 20000


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3. Define number range intervals for cash journal

documents


Accounting- Business Transactions- Cash Journal- Define Number

Range Intervals for Cash Journal Documents

Execute

CoCd



No From Number To Number

01 1 9999999999

Enter


4. Set Up Cash Journal


Accounting- Business Transactions- Cash Journal- Set Up Cash Journal

Execute


Company Code

CJ Number

G/L Account 290140 (Petty Cash A/C)

Currency INR (Indian Rupees)

D D D D D D

AB KZ KZ DZ DZ

Cash Journal Name

Save (Ctrl+S) and Enter

5. Create, Change, Delete Business Transactions

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Accounting- Business Transactions- Cash Journal- Create, Change,

Delete Business Transactions (Tcode: FBCJC2)

Execute


Company Code Bus.

Tran

.

Type

G/L

Account

Cash Journal business Trans

C 290150 CASH TRANSFER FROM BANK

B 290160 CASH TRANSFER TO BANK

D PAYMENT FROM CUSTOMER

K PAYMENT TO VENDORS

E 400110 OFFICE SUPPLIES

R 300110 PETTY CASH SALES


6. Set Up Print Parameters for Cash Journal


Accounting- Business Transactions- Cash Journal- Set Up Print

Parameters for Cash Journal

Execute


CoCd

Cash Jour. Print Program RFCASH20

Corr. SAP18 (Cash Document)


7. Petty Cash Postings

Path: Accounting- Financial Accounting- General Ledger- Posting- FBCJ -

Cash Journal Posting (Tcode: FBCJ)

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Click on Change Cash Journal (Shift+F5)

Company Code

Cash Journal

Enter

Go to Cash Receipt Tab

Business Transaction Amount Customer Vendor

CASH TRANSFER FROM BANK 5000

PETTY CASH SALES 1000

PAYMENT FROM CUSTOMER 500 4000000

Click on Post (F6)

Go to Cash Payments Tab

Business Transaction Amount Customer Vendor

CASH TRANSFER TO BANK 600

OFFICE SUPPLIES 1000

PAYMENT TO VENDORS 300 4000000

Click on Post (F6)

Extended Withholding Tax

Withholding Tax nothing but TDS (Tax Deduct at Source)

Withholding tax is an income tax which is deducted at the source of

the revenue. The party that is subject to tax does not remit the

withholding tax to the Tax authorities himself.

As SAP system allow defining two different tax types in withholding

tax namely one for invoice posting and one for payment posting. Client

requirement can be achieved with SAP standard functionality

The tax collected will be deposited in a separate GL accounts and

can be made automatic assignment, so at the time of posting

automatically tax account will be updated

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All the withholding settings can be done by using Country India

Version (CIN) so that the requisite forms will be automatically updated

and available for printing

The following section of Income Tax will be covered in extended withholding tax of SAP

Section Description

192 TDS on Salaries

193 TDS on Interest on securities

194A TDS on interest other than securities

194C TDS on payments to contractors

194H TDS on Commission and brokerage

194I TDS on rent

194J TDS on prof & Tech Services

195 Payment to foreign nationals

206C Tax Collected at source

The Aspects related to TDS are discussed under the following

heads:

1. Location for TDS Processing

TDS processing, accounting will takes place in the respective regions

and payments will be done at corporate office

2. Information required to process TDS calculation

Vendor account will be assigned with one TDS code, if applicable. TDS

code nothing but TDS rate. This TDS code will be the default TDS code

for all the transactions with the vendor. A user can however, change

the TDS code during the transaction entry. This is provided to ensure

correct deduction of tax in cases where more than one TDS rate is

applicable to the same vendor due to different nature of transactions

3. Time of Tax Deduction

As per Income Tax Act, TDS is required to be deducted on accrual of

expenses or payment whichever is earlier. Accordingly, TDS has to be

deducted at the time of bill passing. In respect of advances given to

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vendors, TDS will be deducted while making payment. TDS will be

deducted on a transaction-to-transaction basis

TDS will be deducted on all the transactions with a vendor once a TDS

code is defined in master record of such vendor

Each of these TDS codes will be defined separately for deduction at the

time of booking the expenses or at the time of payment

4. Printing of TDS Certificates

TDS certificates can be printed vendor wise at corporate office or

location. Once TDS certificate has been generated at corporate or

location, system will not allow to print TDS certificate, only duplicate

copy can be printed. System will provide for generation of annual

return on yearly basis

5. Printing of Annual Return

Classify the vendors for calculating withholding tax, whether individual,

company, partnership firm, etc. Standard SAP has only two

classifications, individual and company. There is no separate

classification as partnership

Configuration for Withholding Tax

1. Check withholding Tax countries

Path: SPRO- SAP Reference IMG- Financial Accounting (New)-

Financial Accounting Global Settings (New)- Withholding Tax- Extended

Withholding Tax- Basic Settings- Check Withholding Tax Countries

Execute


Cty IN

WCty IN

Description India

Save and enter

2. Define Withholding Tax Keys

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Definition: If national tax authorities use official withholding tax keys to

identify the different with holding tax types

Ex: Salaries, Contractors, Interest on deposits, Professional and

technical services, Commission and brokerage etc

Path: same path

Execute

Country Key IN

Enter


Off. Key Name

192 TDS on Salaries

193 TDS on Interest on securities

194A TDS on interest other than

securities

194C TDS on payments to contractors

194H TDS on Commission and

brokerage

194I TDS on rent

194J TDS on prof & Tech Services

Save and enter

3. Define Reasons for exemption

Definition: you define reasons for exemption from withholding tax. You

can enter this indicator in the vendor master record or in the company

code withholding tax master record information.

Path: same path

Execute

Country key IN


Exempt. Resn

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Text Exempt from withholding tax

Save and enter

4. Maintain Types of Recipient

Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Financial

Accounting Global Settings (New)- Withholding Tax- Withholding Tax-

Basic Settings- Maintain Types of Recipient (Tcode: OB97)

Execute


Cty Rec.ty Description

IN Company

IN Other Than Company

Save and enter

5. Define Section Codes

Section codes are the location where tax is deducted. A company has

various offices at head office, regional offices etc. Tax can be deducted

at any these places. Withholding tax tracking is thus done based on

section codes


Accounting Global Settings (New)- Withholding Tax- Extended

Withholding Tax- Basic Settings- India- Define Business Places

Execute


Company code

Section code

Name 1

Enter

Name

Street

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House number

Postal code

City

Country IN (India)

Enter

Save and enter

6. Assign Factory Calendars to Business Places

In this IMG activity, you effectively specify which days the tax offices

that you work with are open. The system uses this information when

you post a vendor invoice, so that it can allow for public holidays when

it determines the tax due date.

This activity is optional. If you do not make any entries, the system

still determines the tax due date, but without reference to any factory

calendar.

The factory calendar is assigned to determine the holidays and pre-

pone the payment of tax dues to the previous working day for

determination of payment due date for the tax liability. A common

Factory Calendar IN has been defined and assigned to all the section

codes

Path: Same path

Execute


Company code

Section code

Factory Calendar ID 01 (Standard)

Rule - Day before


7. Define Withholding Tax Type for Invoice Posting

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Definition: withholding tax code only controls the percentage rate of

the withholding tax



Withholding Tax- Calculation- Withholding Tax Type- Define

Withholding Tax Type for Invoice Posting

Execute

Country key IN

Enter


Withhld tax type

Select Gross amount

Select Round w/tax amnt up

Select per year, starting with mnth : 4


Withhld tax type

Select Gross amount



Save (Ctrl+S)

Notes:

Gross amount: If you set this indicator, the system uses the gross

amount as the base amount for calculating the withholding tax.

Round w/tax amnt up: If you set this indicator, the withholding tax

amount is always rounded up. You must specify a rounding rule for

each withholding tax type for which withholding tax is to be calculated.

This field is used in India

8. Define Withholding Tax Type for Payment Posting

Path: Same path

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Execute

Country key IN

Enter


Withhld tax type

Select Gross amount




Withhld tax type

Select Gross amount



Save (Ctrl+S) and Enter

9. Check Recipient Types

Definition: This is required to categorize vendor

Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Financial

Accounting Global Settings (New) - Withholding Tax- Extended

Withholding Tax- Basic Settings- Check Recipient Types

Execute

Country key : IN (India)

Enter


Wth.t.type Rec.ty Name

Company/Invoice

Company/Payment

Other than

company/Invoice

Other than

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company/Payment


10. Maintain Tax Due Dates

Definition: In this activity, formula for calculation of tax due date is

maintained. Since for Income tax as well as other taxes 7th of the

following month is the due date, the same value is maintained for all

tax types.

Path: Same path

Execute


Country Official withholding

tax key

Recipient type No. days until

tax due date

IN

(India)

194C (TDS on

payment to

contractors)

777

IN

(India)

194C (TDS on

payment to

contractors)

777


Note: Number of Days until Tax Due Date, Specifies how many days

you have to remit this tax, after you have posted it. If you have to

remit the tax seven days from the month end, enter 777.

Otherwise, enter the number of days after which you have to remit the

tax to the tax office.

11. Withholding tax codes

Definition: the withholding tax codes determine the withholding tax

percentage. Withholding tax nothing but tax rate

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Withholding Tax- Calculation- Withholding Tax Codes- Define

Withholding Tax Codes

Execute

Country key IN (India)

Enter


Withhld tax type

W/tax code

Off. W/Tax Key 194C

Description

Percentage subject to tax 100

Post.indic 1

With/tax rate


Withhld tax type

W/tax code

Off. W/Tax Key 194C

Description


Post.indic 1

With/tax rate


Withhld tax type

W/tax code

Off. W/Tax Key 194C

Description


Post.indic 1

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With/tax rate


Withhld tax type

W/tax code

Off. W/Tax Key 194C

Description


Post.indic 1

With/tax rate

Save and enter

12. Assign withholding tax types to Company codes



Withholding Tax- Company Code- Assign Withholding Tax Types to

Company Codes

Execute


Company code

Withhld tax type

Recipient type

Select with/tax agent

W/tax obligated frm

Oblig.to w/tax until

W/Tax number

Click on Next Entries (F8)

Company code

Withhld tax type

Recipient type

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W/tax obligated frm


W/Tax number


Company code

Withhld tax type

Recipient type


W/tax obligated frm


W/Tax number


Company code

Withhld tax type

Recipient type


W/tax obligated frm


W/Tax number


13. Activate Extended Withholding Tax

Path: Same path

Execute


Company code

Enter

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Select Ext.w/tax

Save and enter

14. Creation of TDS on Contractors A/C (Tcode: FS00)

G/L Account 190300

Company code

Click on create




Short Text TDS on Contr. A/C

G/L Acct Long Text TDS on Contractors Account





Sort Key 001



Save

15. Define Accounts for Withholding Tax to be Paid Over



Withholding Tax- Postings- Accounts for Withholding Tax- Define

Accounts for Withholding Tax to be Paid Over

Execute

Chart of accounts

Enter

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Select withholding tax code

Select withholding tax type

Save

Withholding tax type Withholding Tax code Account

190300

190300

190300

190300

Save and enter

16. Specify Document Type (Accounts Payable)

Definition: In this activity, we specify the document type to be used for

journal vouchers for correction of withholding tax entry

Path: SPRO- Financial Accounting (New)- Financial Accounting Global

Settings (New)- Withholding Tax- Extended Withholding Tax- Posting-

India- Remittance Challans- Document Types- Specify Document Type

(Accounts Payable)

Execute


CoCd 0

RC Doc Type SA

Save and enter

17. Define Business Places

Path: SPRO- SAP Reference IMG- Cross Application Components-

General Application Functions- Nota fiscal- CNPJ Business Places-

Define Business Places

Execute

Company code

Enter

Business place

Save (Ctrl+S)

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Name

Street

House number

Postal code

City

Country IN (India)

Enter and enter

18. Assign section codes to business places



Withholding Tax- Basic Settings- South Korea- Define Section Codes

Execute

Company code

Enter

Section code Business Place


19. Maintain number range groups to business places (Tcode: SM30)

Table/View J_1IEWTNUMGR

Click on Maintain


Company Code

Business Place

Off. W/Tax Key

Number group 001

Save

20. Maintain number range groups to Section code (Tcode: SM30)

Table/View J_1IEWTNUMGR_1

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Click on Maintain


Company Code

Section code

Off. W/Tax Key

Number group 001

Save and enter

21. Maintain Number Groups



Withholding Tax- Posting- India- Remittance Challans- Maintain Number

Groups

Execute


Compan

y code

Section code Off. W/Tax Key Number grp

001


22. Assign Number Ranges to Number Groups

Path: Same path

Execute


Number group 001

IntNR 01

Save (Ctrl+S)

23. Maintain Number Ranges

Path: Same path

Execute

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Click on Groups (F6)

Select Group without text

Click on Maintain (Shift+F5)

Company code

Enter


Year

From number 100000

To number 199999

Enter

Save and enter

24. Maintain Number Groups and SAPscript Forms



Withholding Tax- Posting- India- Withholding Tax Certificates for

Vendors and Customers- Maintain Number Groups and SAPscript Forms

Execute


Compan

y code

Section code Off. W/Tax

Key

Form Number Grp

194C J_1IEWT_CERT 001

Save and enter

25. Assign Number Ranges to Number Groups

Path: Same path

Execute


Number group 001

IntNR 01

Save (Ctrl+S)

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26. Maintain Number Ranges

Path: Same path

Execute

Click on Groups (F6)

Select Group without text

Click on Maintain (Shift+F5)

Company code

Enter


Year

From number 200000

To number 299999

Enter

Save and enter

27. Maintain company code settings

Path: SPRO- SAP Reference IMG- Logistics General- Tax on Goods

Movements- India- Basic Settings- Maintain Company Code Settings

Execute


Company code

First month 4 April

Save and enter

28. Change Vendor Master Record (Tcode: FK02)

Vendor

Company Code

Select withholding tax

Enter

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WH Tax Country IN

With. T. type W/Tax Code liable Rec.ty

Select

Select

Save (Ctrl+S)


29. Vendor Invoice (Tcode: FB60)


Company code

Enter

Vendor

Invoice Date

Amount

Bus.Place/section

Go to withholding Tax tab

Company/invoice

Keep blank Company/Payment


S Debit *

Post (Ctrl+S)

Go to Menu bar

Document – display

We can see document

30. Create Remittance Challan

Path: Accounting- Financial Accounting- Accounts Payable- Withholding

Tax- India- Extended Withholding Tax- Remittance of Withholding Tax-

J1INCHLN - Create Remittance Challan (Tcode: J1INCHLN)

Company Code

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Fiscal Year

Business Place/Section Code

Posting Dates

Section

Vendors

Recipient Types

Document Date

Posting Date

Bank Account

Execute (F8)

Select Document number

Enter

Select Document number which amount you are making payment to

Income tax dept

Click on Document overview (Shift+F2)

Double click on line item

Amount *

Go to menu bar


Post (Ctrl+S)

31. Enter Bank Challan

Path: Same path (Tcode: J1INBANK)

Company Code

Fiscal Year

Challan Clearing Number

Internal Challan Number

Internal Challan Date

Bank Challan Number

Bank Challan Date

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Bank Key

Execute (F8)

32. TDS Certificate Print

Path: Accounting- Financial Accounting- Accounts Payable- Withholding

Tax- India- Extended Withholding Tax- Certificates- J1INCERT – Print

(Tcode: J1INCERT)

Company Code

Fiscal Year

Business Place/Section Code

Section

Posting Dates

Bank Challan Numbers

Bank Challan Dates

Vendors

Certificate Date

Signatory

Designation

Place of Printing

Execute (F8)

Click on Print (Ctrl+P)

Go to Menu bar

System – Services – Output control

Execute (F8)

Select spool no

Click on Display content (F6)

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Asset Accounting (FI-AA)

The Fixed Assets Module is an integrated asset management

solution for additions, updating, tracking, depreciation and

administrative purposes. Assets are depreciated periodically to arrive

at their current net value. Once an asset is capitalized, it can be

transferred between locations, cost centers. Assets can be removed

from the assets ledger by disposing them

Asset Accounting is a subsidiary ledger accounting module in

financial accounting

The fixed assets module will provide following functions:

New Asset Addition

Add to an existing asset

Modify asset details

Asset transfer

Asset disposal

Depreciation

Features of Asset Accounting:

Drill down for a particular asset to view the transaction history

for that asset

Depreciation is run only once for each period. The system will

record the last period for which depreciation was run. The user

can only run the depreciation program for the next period

Asset that is depreciated, the system automatically generates a

journal and posts it to the fixed asset sub ledger for the

depreciation amount

When posting the depreciation expense for an asset the cost

center of the asset at the time of depreciation run is considered

Business Process:

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1. Asset Acquisition and capitalization of asset under construction

All asset purchases would be routed through materials management in

the form of a purchase order. The accounts section will create the

asset master record before purchase order is raised through MM

Module. Assets purchased in the nature of office equipment, computer

equipment, furniture and fixtures and vehicles will be capitalized

directly without routing it through Capital Work in Progress (CWIP) to

make it capitalized on a stand alone basis

2. Asset Depreciation

Different depreciation rates are configured using different

depreciation keys and they will be attached with the asset masters at

the time of creating an asset master

Depreciation as per the Companies Act, 1956 will be handled by

creating ‘Book Depreciation’

SAP gives a functionality of depreciation forecast report where in

one can analyze the depreciation of the asset over a period of years

The planned depreciation is posted to the general ledger at the time

of the monthly depreciation posting run. This posting run uses a batch

input session to post the planned depreciation for each posting level

for individual asset as a lump sum amount.

The depreciation posting cycle is determined by entering the length

of time between two depreciation posting runs. This means that a

setting of 1 indicates monthly posting, 3 means quarterly posting, 6

means semi-annual, and 12 means annual. When a depreciation

posting run is started, one has to enter the period for which one wants

it to be carried out

3. Capitalization of Asset Under Construction (AUC)

For capitalized maintenance, the flow is different. We use CWIP for

each asset class as account assignment in purchase order requisition.

CWIP will accumulate all the costs of the WIP for each asset class and

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subsequently based on the capitalization date. The settlement can be

done at the asset concerned

4. Asset Retirement and Transfer

The asset retirement consists of any of the following

Sale of asset with customer, without customer

Scraping of an asset

Transfer of an asset

Posting revenue/loss on asset sale

The above mentioned items can be done by using SAP standard

functionality

5. Closing Operation

The year end closing program is used the fiscal year for

one or more company codes from an accounting

perspective. Once the fiscal year is closed, one can no

longer post or change values within asset accounting. The

fiscal year that is closed is always the year following the

last closed fiscal year

At the time of closing the period system performs the

following checks.

The system found no errors during the calculation of

depreciation

The planned depreciation from the automatic posting

area has been completely posted to the general

ledger

All incomplete assets (master records) have been

completed, since this check does not make sense for

asset under construction, we can prevent this check

from being made for assets under construction

Asset Accounting Configuration:

1. Maintain Chart of Depreciation

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Definition: Charts of depreciation are used in order to manage various

legal requirements for the depreciation and valuation of assets. These

charts of depreciation are usually country-specific and are defined

independently of the other organizational units. A chart of

depreciation, for example, can be used for all the company codes in a

given country. Chart of depreciation means list of depreciation areas.

Depreciation Area means one set of book keeping.

Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Asset

Accounting- Organizational Structures- Copy Reference Chart of

Depreciation/Depreciation Areas (Tcode:OAP1)

Execute

Double click on Copy Reference Chart of Depreciation

Click on Copy org.object (F6)

From chart of dep. 1IN (Sample chart of depreciation:

India)

To chart of dep.

Enter, Enter, Enter and enter

One time go back

Double click on Specify Description of Chart of Depreciation


Chart of Dep.

Enter

Description

Save and enter

One time go back

Double click on Copy/Delete Depreciation Areas

Chart of Dep.

Enter

Observe depreciation areas under our chart of depreciation

2. Assign Input Tax Indicator for Non-Taxable Acquisitions

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In this step, you specify an input tax indicator per company code.

The system then uses this indicator when you post acquisitions that

are not subject to tax, but which are posted to accounts that are tax-

relevant.

An acquisition of this type is an acquisition from in-house

production. In the Asset Accounting posting transaction for this

acquisition, the input tax indicator is not ready for input.

In each company code, enter a tax indicator for business

transactions that are not subject to taxes (for example, V0).

Path: SPRO- Financial Accounting (New) - Asset Accounting- Integration

with the General Ledger- Assign Input Tax Indicator for Non-Taxable

Acquisitions

Execute


Company Code

Enter

Input Tax V0 (0% Tax on purchases)

Output Tax A0 (0% Tax on Sale)

Save and enter

3. Assign Chart of Depreciation to Company Code

Definition: One chart of depreciation can be assigned to more than one

company codes which are located in same country

Path: SPRO- Financial Accounting (New) - Asset Accounting-

Organizational Structures- Assign Chart of Depreciation to Company

Code (Tcode: OAB1)

Execute


Company code

Enter

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Chrt Dep

Save and enter

4. Specify Account Determination

Definition: Account Determination is a bridge to flow the asset values

to General ledger accounting (This is integration point between

General ledger and Asset accounting)

Path: SPRO- Financial Accounting (New) - Asset Accounting-

Organizational Structures- Asset Classes- Specify Account

Determination

Execute


Acct.determ. Name of account determination

Save and enter

5. Create Screen Layout Rules

Definition: Screen layout controls Fields in Asset Master record.

Path: Same path

Execute

Select 1010, 2000 and 3000

Click on copy as (F6)

Screen Layout Rule Name of screen layout rule

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Save and enter

6. Define Number Range Interval

Path: Same path

Execute

Company Code



No 01

From number 100000

To number 199999

Enter


No 02

From number 200000

To number 299999

Enter


No 03

From number 300000

To number 399999

Enter

Save and enter

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7. Define Asset Classes

Definition: Asset class means which are having same characteristic

features.

Path: same path

Execute


Asset Class

Short Text

Account determ

Scr.layout rule

Number range


Asset Class

Short Text

Account determ

Scr.layout rule

Number range


Asset Class

Short Text

Account determ

Scr.layout rule

Number range

Save and enter

8. Determine Depreciation Areas in the Asset Class

Path: SPRO- Financial Accounting- Asset Accounting- Valuation-

Determine Depreciation Areas in the Asset Class

Execute

ChDep

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Enter


Asset Class

Enter

Select Asset Class

Double click on Depreciation Areas

Screen layout 2000

Deselect Area deact.

Save and enter

9. Depreciation Key

Definition: Depreciation key nothing but depreciation rate

a. Define Base Methods

Definition: It is particularly important to enter a depreciation type and

the depreciation calculation method. Base method is assigned in

depreciation key. Depreciation type means whether it is Ordinary

depreciation or special depreciation. Special depreciation means other

than ordinary depreciation purely income tax depreciation.

Depreciation method means how we calculate depreciation. For ex:

Percentage depreciation.


Accounting- Depreciation- Valuation Methods- Depreciation Key-

Calculation Methods- Define Base Methods

Execute


Base method

Type of depreciation N Ord.depreciation

Dep.Method P Stated Percentage

Save


Enter and enter

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b. Define Declining-Balance Methods

Definition: For each declining balance method, we maintain following

specification,

A multiplication factor for determining the depreciation percentage

rate,

An upper limit for the depreciation percentage rate and

A lower limit for the depreciation percentage rate

Multiplication factor means system multiplies the depreciation

percentage rate resulting from the total useful life by this factor.

Path: Same path

Execute


Decl.-bal.

Description of the method


c. Define Multi-Level Methods

Definition: In multi level method, we can define validity period for a given percentage

rate. For ex: planned useful life is 30 Years.

Up to 5 years 20% Depreciation rate

Up to 10 years 15% Depreciation rate

Remaining life 10% Depreciation

Path: Same path

Execute


Multilev.meth.

Validity start 2 from ordinary depreciation start

date

Double click on Levels


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Acq.year 9999

Year 999

Per 12

Base Value 24 (Net Book Value)

Percent

Save and enter

d. Maintain Period Control Methods

Definition: Assign period control keys to the period control methods

for:

o Acquisition transactions

o Subsequent acquisitions

o Retirements and transfers

o And so on

Path: same path

Execute


Prd.c.meth

Description

Acq 1 Pro rata at period start date

Add 1 Pro rata at period start date

Ret 1 Pro rata at period start date

Trn 1 Pro rata at period start date

Save and enter

e. Maintain Depreciation Key

Definition: Depreciation key nothing but depreciation rate

Path: Same path

Execute


Dep. Key

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Double click on Assignment of calculation methods

Dep type N Ord.depreciation

Phase 1 From the start of depreciation

Base method

Decl. - bal. method

Prd cont

Class 2 Declining - balance depreciation

Save and enter

4 times go back

Select 2901

Click on activate (Ctrl+F3)

Save (Ctrl+S)

10. Create G/L Master records (FS00)

a. Building A/C

G/L Account 200100

Company Code

Click on Create


Account group ASST Assets


Short Text Buildings A/C

G/L Acct Long Text Buildings Account


Recon acct for Account type A Assets


Sort Key 018 (Asset Number)



Save

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b. Sale of Asset

G/L Account 300030

Company Code

Click on Create




Short Text Sale of Asset A/C

G/L Acct Long Text Sale of Asset Account




Sort Key 001



Save

c. Profit on sale of Asset

G/L Account 300040

Company Code

Click on Create




Short Text Pr. Sale of Asset A/C

G/L Acct Long Text Profit on Sale of Asset Account



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Sort Key 001



Save

d. Loss on Sale of Asset

G/L Account 400040

Company Code

Click on Create




Short Text LS. Sale of Asset A/C

G/L Acct Long Text Loss on Sale of Asset Account


Select Only balances in local crcy


Sort Key 001



Save

e. Scrap on Assets

G/L Account 400050

Company Code

Click on Create




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Short Text Scrap on Asset A/C

G/L Acct Long Text Scrap on Asset Account




Sort Key 001



Save

f. Depreciation A/C

G/L Account 400060

Company Code

Click on Create




Short Text Depreciation A/C

G/L Acct Long Text Depreciation Account




Sort Key 001



Save

g. Acc.Dep Account

G/L Account 110000

Company Code

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Click on Create




Short Text Acc.Dep A/C

G/L Acct Long Text Accumulated Depreciation

Account


Recon.account for acct type A Assets


Sort Key 001



Save


Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Asset

Accounting- Integration with the General Ledger- Assign G/L Accounts

Execute

ChDep

Enter

Select Chrt/Accts

Double click on Account determination


Account Determ.

Enter

Select Account determination

Double click on Balance sheet accounts

Acquisition:Acquis. and production costs 200100

Loss made on asset retirement w/o reven. 400050

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Clearing acct. revenue from asset sale 300030

Gain from asset sale 300040

Loss from asset sale 400040

Double click on Depreciation

Acc.dep. accnt.for ordinary depreciation 110000

Expense account for ordinary depreciat. 400060

Save and enter and enter

12. Maintain Number ranges for Depreciation posting (Tcode: FBN1)

Company code



No 04

Year



Enter

Save and enter

13. Define Screen layout Rule

Definition: Screen layout rule controls fields in Asset Master Record

Path: SPRO- Financial Accounting (New) - Asset Accounting- Master

Data- Screen Layout- Define Screen Layout for Asset Master Data

Execute

Double click on Define Screen Layout for Asset Master Data


Screen layout

Enter

Select Screen Layout

Double click on Logical Field groups

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Select 3 Time dependent data

Double click on Field Group rules

Select Cost center optional

Save and enter

Notes:

Main number: If this indicator is set, the screen layout rule defines the

asset main number as the level for the field group.

This means that when a sub-number is created for the asset, the

values for this field group in the sub-number are supplied by the asset

main number.

Sub number: If this indicator is set, the screen layout rule defines the

sub-number as the maintenance level for the corresponding field

group.

Copy: If this indicator is set, the screen layout rule specifies that when

you create an asset using another asset as a reference, the specified

field group is automatically supplied with values from the reference

asset.

14. Creation of Asset Master Record

Definition: The "master data maintenance" component is used for

recording the master data of your fixed assets on an individual asset

basis. A fixed asset is defined as an individual economic good that it is

recognized in the balance sheet at the time of closing, and is in the

long-term service of the enterprise.

Path: Accounting- Financial Accounting- Fixed Assets- Asset- Create-

AS01-Asset (Tcode: AS01)

Asset Class

222

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Company Code

Enter

Go to General data Tab

Description

Capitalized on

Go to Deprec.Areas Tab

DKey

Useful life

Odep.start

Save (Ctrl+S)


15. Creation of Sub Asset

Path: Accounting- Financial Accounting- Fixed Assets- Asset- Create- Sub Number-

AS11 – Asset (Tcode: AS11)

Asset

Company Code

Number of similar sub assets 1

Enter

Go to General data Tab

Description

Capitalized on


DKey

Useful life

Odep.start

Save (Ctrl+S)


Note:

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Similar Assets: Number of similar assets that you want the system to

create when you save an asset master record. We can create 999

similar assets at a time

Sub Assets: This is the number which, together with the main asset

number, uniquely identifies a fixed asset in Asset Accounting.

Using the asset sub-number, you can:

Provide for separate management of later acquisitions to assets.

Represent complex fixed assets with their component parts.

In contrast to the main asset number, the asset sub-number must be

numerical. We can create 9999 sub assets under one main asset

The following graphic shows the most important depreciation terms in

a depreciation area:

16. Purchase of Asset

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a. With Bank

Path: Accounting- Financial Accounting- General Ledger- Posting- F-02 - General

Posting (Tcode: F-02)

Document date Type SA Company code

Posting date Period Currency

PstKy 70 (Asset Debit)

Account

TType 100 (External Asset Acquisition)

Enter

Amount

PstKy 50 (Credit)


Enter

Amount *

Go to Menu bar

Document - simulate

Save

b. With Vendor

path: Accounting - Financial Accounting - Fixed Assets - Posting - Acquisition - External

Acquisition - F-90 - With Vendor (Tcode:F-90)

Document date Type KR Company code


PstKy 31 (Vendor Credit)

Account

Enter

Amount 20000000

PstKy 70 (Asset Debit)

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Account

TType 100 (External Asset Acquisition)

Enter

Amount *

Go to Menu bar

Document - simulate

Save

17. Sale of asset

a. With Bank (Tcode: F-02)

Document date Type SA Company code


PstKy 40 (Debit)

Account 290100 (Bank Account)

Enter

Amount

PstKy 50 (Credit)

Account 300030 (Sale of Asset A/C)

Enter

Amount *

Select Asset Retirement

Go to Menu bar

Document - simulate

Asset Number

Sub number

Asset value date

Select Complete retirement

Enter

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Save

b. With Customer

Path: Accounting - Financial Accounting - Fixed Assets - Posting - Retirement -

Retirement w/Revenue - F-92 - With Customer (Tcode:F-92)

Document date Type DR Company code


PstKy 01 (Customer Debit)

Account

Enter

Amount

PstKy 50 (Credit)

Account 300030 (Sale of Asset A/C)

Enter

Amount *

Select Asset retirement

Go to Menu Bar

Document - simulate

Asset number

Sub number

Asset value date

Select Complete Retirement

Enter

Save

18. Scrap on Asset

Path: Accounting- Financial Accounting- Fixed Assets- Posting-

Retirement- ABAVN - Asset Retirement by Scrapping (Tcode: ABAVN)

Click on Change company code (F7)

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Company code

Enter

Asset

Document date

Posting date

Asset value date

Click on Simulate (F9)

Post (Ctrl+S)

Entry:

Scrap on Asset A/C

To Asset A/C

19. Takeover of existing assets


Accounting- Asset Data Transfer- Manual Online Transfer-

Create/Change/Display Legacy Asset (Tcode: AS91)

Execute

Double click on Create Legacy Asset

Asset Class

Company Code

Enter

Description

Capitalized on


DKey

Uselife

Click on Takeover values (Shift+F8)

Cum.acquis.val.

Accm.ord.deprec

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Enter

Save and enter

20. Depreciation run

Path: Accounting - Financial Accounting - Fixed Assets - Periodic Processing -

Depreciation Run - AFAB - Execute (Tcode: AFAB)

Company Code

Fiscal year

Posting period 1

Select Test run

Execute (F8)

Note: If there is any errors, Click on Error list (F7)

One time go back

Deselect Test run

Go to menu bar

Program - Execute in background

Output device LP01

Enter

Click on Immediate

Save (Ctrl+S)

Go to Menu bar

System -services - output Control

Execute (F8)

Select Spool no.

Display contents (F6)


Click on Document list (Shift+F8)

Company Code

Document type AF

Execute

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19. Asset explorer

Path: Accounting- Financial Accounting- Fixed Assets- Asset- AW01N - Asset Explorer

(Tcode: AW01N)

Company code

Asset

Enter

Observe Planned Values, Posted Values and comparisons

Validations

1. Validation in Accounting Documents

In this activity, we define additional checks for accounting documents

in the form of validations for each of your company code. We can

assign a validation for the document header and one for the line items

to each company code. The assigned validations are valid both for

manual entry of documents as well as for the automatic creation of

Documents.

Ex: We can use the validation for the following situation. We want to

make sure that postings to the expense account ‘Telephone Costs’ can

only be posted to the services cost center ‘Telephone’. We can carry

out the checks needed for this by using the validation


Accounting Global Settings (New)- Tools- Validation/Substitution-

Validation in Accounting Documents (Tcode: OB28)

Execute


Company code

CallPnt 1 (Document Header)

Validation

Double click on Validation

Click on ‘Yes’

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Click on Insert Step (Ctrl+Shift+F5)

Click on Prerequisite

Double click on accounting document header

Go to menu bar

Settings – Technical names

Double click on BKPF-USNAM (User Name)

Click on “=”

Click on Constant

User Name SAPUSER

Enter

Click on “Check”

Double click on Accounting Document Header

Double click on BKPF-BLART (Document Type)

Click on “=”

Click on Constant

Document type SA (G/L Account Document)

Enter

Click on Message

Message number

Save (Ctrl+S)

Three times go back

Activtn level 1 (Active)

2. Posting (Tcode: FB50)


Company code

Enter

Document date

Document type DR

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290100 S Debit 25000 11.10.2011

100000 H Credit 25000

Post (Ctrl+S)

System will through error, because document type is not SA. System

will allow only SA Document type for SAPUSER

Authorizations

SAP system is a high secured system. We can maintain authorizations

each employee wise or Group of employees wise.

1. Maintain user

Path: Tools- Administration- User Maintenance- SU01 – Users (Tcode: SU01)

User V140130


Title MR.

Last Name Venkat

First name M

Academic Title MBA

Function Accountant

Department Accounts

Room number 3

Floor 2

Building 1

Telephone number

Extension 456

Mobil phone 9846412354

Fax

Extension 456

Email [email protected]

Go to Logon Data Tab

Initial password 123456

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Repeat password 123456

Save

2. Role maintenance

Path: Tools- Administration- User Maintenance- Role Administration- PFCG – Roles

(Tcode: PFCG)

Role Accountant

Click on Role

Save

Go to Menu Tab

Click on transactions

Transaction code

FB50

FS00

FB03

FS10N

F-01

FKMT

Enter

Click on Assign transactions (Shift+F7)

Save

Go to Authorizations Tab

Click on Expert mode for Profile generation

Company code

Business area

Enter

Note: We have to convert red color nodes and yellow color nodes

should be in green color.

If it is red color node, open tree structure, click on red color node and

enter

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If it is yellow color node, open tree structure, Click on yellow color

mode

Click on Generate profile (Shift+F5)

Enter

Save

One time go back

Go to User Tab

User ID V140130

Enter

Click on user comparison

Click on Complete comparison

Click on Yes

Save

3. Enter into SAP System

Double click on SAP Logon on Desktop

Click on Logon

Client 800

User V140130

Password 123456

Enter

New Password 1234567

Repeat password 1234567

Enter

4. Define Tolerance Groups for G/L Accounts



Clearing Differences- Define Tolerance Groups for Employees (Tcode:

OBA4)

Execute

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Group

Company code

Amount per document 25000

Amount per open item account

item

25000

Cash discount per line item 3

Save and enter

5. Assign Users to Tolerance Groups

Path: same path (Tcode: OB57)

Execute


User name V140130

Tolerance Group

Save and enter

LSMW (Legacy System Migration Workbench)

Through LSMW, we upload master records (General ledgers, Vendors,

Customers, Assets, Bank data, Cost centers, Cost elements, Profit

centers etc)

Uploading Master data (Tcode: LSMW) (Legacy System Migration Workbench)

Project UPLOAD

Sub project GL

Object GLS

Click on Create (Shift+F1)

Description Uploading

Enter

Description GL

Enter

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Description GL

Enter

Execute (F8)

Select Maintain Object Attributes

Execute (Ctrl+F8)

If it is display mode, Click on Display <-> Change (Ctrl+F1)

Select Batch Input Recording

Recording Venkat

Go to menu bar

Goto – Recordings Overview

Click on Create recording (Ctrl+F1)

Recording Venkat

Description GL Upload

Enter

Transaction code FS00

Enter

Note: We should not use mouse until recording completed

G/L Account

Company code

Click on Create




Short Text

G/L Acct Long Text

Go to Control data (Ctrl+F11)

Account currency INR




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Goto Create/Bank/Interest Tab (Ctrl+F11)

Field Status group G001

Save

Note: We can use mouse now

Click on Default all (Ctrl+F2)

Save

Go to menu bar

System- List- Save- Local file

Select Spread sheet

Enter

Directory: C:\Documents and Settings\eccadm\Desktop\

File name: GLS

Enter

Open excel sheet, which is saved on desk top (GLS)

Delete up to H column

Keep the following rows and delete remaining rows

290110 SAKNR G/L Account Number

2301 BUKRS Company Code

ASST KTOKS G/L Account Group

X XPLACCT P&L statement account

X XBILK Indicator: Account is a balance sheet account?

Cash A/C TXT20_ML G/L account short text

Cash Account TXT50_ML G/L Account Long Text

INR WAERS Account currency

X XSALH

Indicator: Only Manage Balances in Local

Currency

X XKRES

Indicator: Can Line Items Be Displayed by

Account?

001 ZUAWA Key for sorting according to assignment numbers

G001 FSTAG Field status group

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Copy the data

Go to A1 cell

Go to menu bar

Edit – Paste special

Select Values

Select Transpose

Enter

Enter General ledgers in excel sheet as per template

Delete 1st row and 3rd row

Convert K column (Sort key) into text format

Select K column and right mouse click and choose format cells

Double click on Text

Change 1 to 001 (sort key) in K Column

Open one note pad on desk top

Copy data in excel sheet to note pad which is saved on desktop

Go to create recording in SAP

Two Times go back

Save

One time go back

Select Maintain Source Structures

Execute (Ctrl+F8)

Click on Display <-> Change (Ctrl+F1)

Click on Create a structure (Ctrl+F4)

Source Structure Venkat1

Description GL Upload

Enter

Save

One time go back

Select Maintain Source Fields

Execute (Ctrl+F8)


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Select Venkat1

Go to Menu bar

Source fields – Copy fields

Select From Data File (Field name in 1. line)

Enter

Number of fields 9999

Max. Record Length 999999

Enter and enter

Give notepad path, which is saved on desktop

Save

One time go back

Select Maintain Structure Relations

Execute (Ctrl+F8)


Save

One time go back

Select Maintain Field Mapping and Conversion Rules

Execute (Ctrl+F8)


Go to menu bar

Extras – Auto field mapping

Select no confirmation

Enter and enter

Save

Select Specify Files

Execute (Ctrl+F8)


Select Legacy data

Click on Add a entry (Ctrl+F2)

File : C:\Documents and Settings\eccadm\Desktop\GLs.txt

Note: Give note pad path, which is saved on desktop

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Name Venkat

Select Tabulator

Select Field Names at start of file

Enter

Save

Select Assign Files

Execute (Ctrl+F8)


Save

One time go back

Select Read Data

Execute (Ctrl+F8)

Execute (F8)

Two times go back

Select Display Read Data

Execute (Ctrl+F8)

Enter

One time go back

Select Convert Data

Execute (Ctrl+F8)

Execute (F8)

Two times go back

Select Display Converted Data

Execute (Ctrl+F8)

Enter

One time go back

Select Create Batch Input Session

Execute (Ctrl+F8)

Execute (F8)

Enter

Select Run Batch Input Session

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Execute (Ctrl+F8)

Select GLS

Click on Process (F8)

Select Display errors only

Extended log

Enter

Click on Exit Batch Input (F12)

NBJKLB/ULG;UYFTG;7IORT;79RT7OU

241

SAP_FI

Documents

sap system

sap sd

distribution sap

accelerated sap asap

project implementation

project phases

wipro company team

model project charter