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SAP FINANCIALS What is ERP? ERP stands for Enterprise Resource Planning. ERP is a way to integrate the data and processes of an organization into one single system.

What is SAP ERP? The ERP software application from SAP helps to improve operational efficiency and productivity of business processes of the enterprise. SAP ERP is a world-class, fully integrated application that fulfills the core business needs of midsize companies and large organizations across all industries and market sectors. It helps enterprises like yours perform financials, human capital management, procurement and logistics, product development and manufacturing, and sales and service, supported by functionality for analytics, corporate services, and end-user service delivery.

What is SAP ? SAP stands for Systems Applications and Products in Data Processing. SAP application provides the capability to manage financial, asset, and cost accounting, production operations and materials, personnel, plants, and archived documents. This unit deal with the navigation of SAP and helps you through the SAP interface.

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SAP NAVIGATION COMPONENTS An SAP screen can contain the following simple screen elements:

Command field: You can start applications directly by entering their Transaction Code in the command field (this is hidden as default). You can find the transaction code for an application either in the overview menu on the SAP Easy Access screen, in the status bar (see below). Menu bar: The menu bar is the top line of any primary window in the SAP system. The menus shown here depend on which application you are in. These menus may also contain cascading menus. Standard toolbar: The pushbuttons in the standard toolbar are shown on every SAP screen. If they are not available in an application, push buttons that you cannot use on that screen are deactivated. If you place the cursor over a pushbutton for a short time, the system displays a flag with the name or function of the pushbutton. If appropriate, the corresponding function key setting is also displayed.

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Title bar: The title bar names the function that you are currently in. Application toolbar: This shows the pushbuttons available in the application that you are currently in. Checkboxes: Checkboxes allow you to select several options from a group of fields. Radio buttons: You can only select one option. Tab: This allows you to organize several screen areas to improve the clarity. Status bar: The status bar displays information on the current system status such as warnings and errors. You can also change the display variant to show, for example, the transaction code of the transaction you are currently in. Other elements include, for example, input fields and pushbuttons.

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SAP CLIENT: The client is the highest level in the SAP System hierarchy. Clients are a commercially, organizationally, and technically self-contained unit within an SAP System and definition of the same is obligatory. Clients have their own master records and set of tables. Specifications that are made or the data that is entered at this level are valid for all company codes and for all other organizational structures. SAP Software contains only tables and charts (Approx. 28,000). Client 000 This client is the SAP reference client. It is constantly extended and must not be changed by customers. It can be used as a back-up copy.

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Client 001 Client 001 is a copy of client 000, with the exception that customers can make changes here (Customizing). Client 066 Client 066 is reserved for SAP access to customer systems to provide remote diagnosis services such as Early-Watch® and Going LiveTests. Client 000 contains the following default settings: Organization-specific data Client 000 contains an example for each organizational unit. The key is uniform, 01, 001, 0001, and so on. Organization-independent data Client 000 contains extensive default settings so that you can actually Start operating with a lot of these settings. In the Implementation Guide (IMG), an attribute indicates which settings have to be made. Log On Clients: You log on with a three digit client key. The client must contain a user master record. Ex: Client 800/600/500.

CONFIGURATION MANUAL In SAP, Two menus; 1. SAP Menu 2. SAP IMG Menu SAP Menu: This will be used by SAP Customer for SAP End user operation (Production Client). We can bifurcate SAP Software sub-module-wise. /NFSMN = General Ledger /NFKMN = Accounts payable /NFDMN = Accounts Receivable /NASMN = Asset Accounting SAP IMG Menu: This menu will be used by Consultants for customization. IMG means Implementation Guide.

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BASIC SETTINGS FOR THE FORMATION OF THE COMPANY 1) DEFINE COMPANY : /NOX15

(Transaction Code can be entered in Command Field with prefix of /N for all Transaction Codes. Here prefix /N will close the current session and go to next session. In case of /O the existing session (screen) will be minimized and can go to next session. We can open maximum 6 sessions in /O mode.)

The Organizational Structure is defined within the Corporate Structure segment of the IMG. Organizational Units can be created directly or by copying and, if necessary, modifying existing Organizational Structures. Establishing the Organizational Structure in the system tends to be the responsibility of the FI/CO team on implementations. It must be created before other modules begin their work because they are dependent on the Company Code definition.

In SAP, defining Company is optional. But defining Company Code is compulsory. Here Company means, in SAP Language we call it as Internal Trading Partner. After defining Company Codes (branches of the Company), we assign all Company Codes to Main Company for Consolidation purpose.

Path: SPRO (IMG)> Enterprise Structure>Definition>Financial Accounting> Define Company Select ‘New Entries’ Company HALDL (Alphanumeric Character limits: 6) Company Name Hindusthan Aeronautics Limited (Fill up all other details if available) City New Delhi Country IN Language EN Currency INR

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SAVE

2) DEFINE COMPANY CODE :-/NOX02

A Company Code is an independent accounting entity in R/3, for example, a company within a corporate group. It is designated by a four-digit alphanumeric key. Balance sheets and profit & loss statements required by law are created at the company code level.

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Company Code is important in SAP FICO Configuration. For example BHEL is Company Code for Bharath Heavy Electricals Ltd., In every step of configuration SAP asks for Company Code. Normally Company codes will be defined numerically. (2210, 5510, 2000, 3000 and the like) Here we have referred 1234 as Company code for HAL International Ltd.,

Path: SPRO> Enterprise Structure> Definition>Financial Accounting>Define Copy, Delete, Company Code. Double Click on ‘Edit Company Code Data’

Steps :- Select New Entries Company Code 1234 Description HAL International ltd. City Bangalore Country IN Currency INR Language EN Save In big screen, enter company name and address Enter Country IN ( it is an mandatory entry ) Enter 2) Edit Copy Delete Check Company Code (TC: /NEC01)

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Same path as above. We go to this option only in the following cases. 1) To copy foreign company Ledgers. (Pre-defined in SAP). 2) To copy one Company Code to another company code (We have done configuration of Bangalore Co. Code and same configurations want to copy to Hyderabad company code.) 3) To delete Company Code. Select 2nd icon (After selecting, wait until clock reading is completed. SAP contains more than 28,000 Tables and Charts.) From Company Code (Press F4) 0001/1000 (This is std source, you have to copy from this code only) To Company Code 1234 Enter Message: - Continue organization object? Select yes Message: - Copy G/L A/c ? Select “Yes”, (in case you want to copy foreign (or Existing Company Code) ledgers.) Message: - Allocate local Currency to Target Company code? Select yes Type INR (or as per Country specification) Ignore message Enter Enter

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Message: “Copy No. Ranges?” Select “Yes”, Enter, Enter… 3) Assign Company Codes to Company /NOX16

Select ‘Position’ Type ‘Company Code(s)’ Assign Company (bheldl) to all Company Code(s). And SAVE.

Business Area

Business Area will be defined to get segment wise reports of Company activities. These Business Areas and Profit Centre Accounting are meant only for company internal reporting purposes. End-user has to define Business Area for each transaction, while making entries. Business Area is optional for any Company, may be Product-wise (Soap, Detergents etc.,) or Region-wise (Bangalore, Hyderabad, etc.,). Business Area is independent.

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Once defined can be used by any number of company codes. Business area and Profit Centre Accounting both are meant for internal reporting purpose. 3) Define Business Area T C:/NOX03 Path :- SPRO > Enterprise Structure > Definition >Financial A/cing > Define Business Area Select New Entries Business Area Description 1100 North Bus Area 1120 South Bus Area TURB Turbine Bus Area SOAP Soap Bus Area SAVE

Fiscal Year Variant

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Fiscal Year Variant: V3 is system defined Accounting year stands for Apr to March + 4 Special Periods.(suits Indian type industries). 4 Special Periods is meant for making entries like posting audit, any adjustment entries, Closure entries, and the like. After March (12th period), system will not allow to make entries for the month of March as system gets locked. But end-user has to make entries related to March by mentioning in period field 13/14/15/ or 16. All these entries will go to March Period only. K4 Stands for Jan to Dec Accounting Year with 4 Special Periods, where foreign countries refer K4. (If you want to create your own Accounting Year and assign to Company Code, TC: /NOB29. Select New Entries and define any 2 characters, select year-dependent, in no. of posting periods mention 12 and Spl. Posting periods as 4 and Save. Now select your Variant (2 Characters), and click on ‘periods’, left side. Now fill up month, no. of days, period and year shiftment (here you have to define -1 for periods after December which indicates data belongs to December) and Save. To assign Fiscal Year Variant to Company Code TC:/NOB37.) 4) Assign Fiscal Year Variant to company code T C: /NOB37 Path :- SPRO >Financial A/cing> Financial A/cing Global Settings>Ledgers>Fiscal year & posting period>assign company code to fiscal year Variant . Select Position Company Code 1234 Enter V3

Save

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Chart Of Accounts:

5) Edit Chart of Accounts T C:/NOB13 Path :- SPRO > Financial A/cing > G/L A/cing > G/L A/c Master A/c Preparations > Edit Chart A/c List (Chart of Accounts: means list of ledgers created.) Select New Entries Chart of Accounts 1234 Description Chart of A/c for 1234 Maintain language English Length of G/L A/c no. 6 (6 stands for No. of digits assigned for ledger Accounts. Maximum 10 digits can be defined in SAP.) Controlling Integration Manual creation of cost element

Save

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6) Assign Chart of A/c to company code T C :/NOB62 Path: - same as above Select Position Type company code 1234

Enter Type company code (1234) in chart/a/c column

Save

YOU CAN ASSIGN SAME CHART OF ACCOUNTS TO DIFFERENT COMPANY CODES, BUT THE TARGET COMPANY CODES SHOULD HAVE THE SAME ACCOUNTING YEAR.

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Define Account Group

7) Define Account Group Path: - same as above T C: /NOBD4 Select New Entries

Chart of A/c

A/c Group

Name From A/c No

To A/c No

1234 SCPL Share Capital A/c 100000 100099 1234 RSPL Reserves & Surplus 100100 100199 1234 SCLN Secured Loans 100300 100399 1234 UNSL Unsecured Loans 100400 100499 1234 CLPR Liabilities & Provision 100500 100599 1234 FAST Fixed Assets 200000 200099 1234 CAST Assets Loans & Advance 200100 200199 1234 ACDN Accumulated Depreciation 200200 200299 1234 SALE Sales 300000 300099 1234 OTHR Other Income 300100 300199 1234 INCR Incr/Decr in Stock 300200 300299 1234 RMCN Raw material consumption 400000 400099

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1234 PRSN Personnel staff cost 400100 400199 1234 MERG Manufacturing Expenses 400200 400299 1234 ADMN Administrative Expenses 400300 400399 1234 INTR Interest 400400 400499 1234 DEPR Depreciation 400500 400599

Save While assigning From & To numbers for Account group, starting number 1=Liabilities, 2=Assets, 3=Income and 4=Expenses category. This Account Group represents P&L Account & Balance Sheet. TO COPY ACCOUNTS GROUP: /NOBD4

1. Identify the Chart of Accounts which you want to copy. Say, for example 1234

2. Select Position 3. Type in Chart of Accounts “1234”, Ignore Accounts Group 4. “1234” Accounts Group will be displayed in proper manner. 5. Select all Accounts Group one by one by clicking (by Mouse) which

you want to copy on 1st column (the square box before Chart of Accounts column).

6. Now, press F6 7. Now it is copied to screen. Replace the existing Chart of Accounts

(“1234”) by your Company Code, very carefully. (Don’t hit Enter Key while replacing your Company Code.)

8. After all replacing, now hit Enter key. 9. Now Save the Data.

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RETAINED EARNINGS ACCOUNT:

Profit & Loss Account Dr. Cr. To Expenses Ledgers Total 8,00,000 Balancing Amount 2,00,000 (Net Profit) This Net Profit should be transferred to Balance Sheet Ledger: Retained Earnings A/c. This transfer function will done by Key “X”

By Income Ledgers Total 10,00,000

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Balance Sheet Liabilities Retained Earnings A/c 2,00,000

Assets

8) Define Retained Earnings A/c Path: - Same path as above T C: /NOB53 Chart of A/c Company Code 1234 P&L A/c A/c No. X 100100 Save, (message: “Account 100100 is not created”, this means simply we are assigning Retained Earnings Ledger Number and we have not created any Ledger. Once we start creating General Ledger, first create this Retained Earnings Account as it is SAP Processing Ledger.) Now, Ignore the message and enter Here we have defined Account No. 100100, because this Retained Earnings A/c ledger comes under Reserves and Surplus Account Group, hence we have defined first Ledger Number in Accounts Group. Here, ‘X’ is SAP delivered key. It activates carry forwards of Profit to Balance Sheet and it also activates to create P&L Ledgers.

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9) Define Posting Period Variant (Here we are going to activate Accounting Periods for postings ) T C:/NOBBO Path: - SPRO>Financial A/cing>Financial A/cing Global

Setting>Ledger>fiscal year & Posting Period>Posting period>Define variant for Open Posting

Period Select New Entries Variant Name 1234 Variant for 1234

Save

Open & Close Posting Periods

10. Open & Close Posting Periods Path: - Same as above T C :/NOB52 Select New Entries Variant A From To Per Year Per Year Per Year Per Year 1234 + 1 2011 12 2012 13 2012 16 2012

Save

Maintaining Posting Periods

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For technical reasons, for each posting period variant you need an entry .+. that is valid for all account types. The columns for the account number interval must be empty. The period intervals defined for the .+. entry specify the periods that can be posted to in a variant. When you enter the posting date in the document header, the system uses the entry for the account type .+. to check whether the period determined can be posted to. If all account types are to be open at the same time, the minimum entry .+. is sufficient. (Practically this posting periods will be open by each month-wise. In the period 1 column define Current Month and Current Year and period 2 define Current Month and Current Year with ‘+’ mark in Account Type. Now End user can make entries only in that Current Month and not permitted to post in the previous/next month. And for special posting periods there will be no such restrictions.) Open Posting Period for Current Month only:

Assign posting period variant to company code

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Different Company Codes can be assigned with same posting period variant provided, all Company Codes uses the same Accounting year. 11) Assign posting period variant to company code Path: - Same as above T C: /NOBBP Select Position Company code 1234

Enter Type Company code 1234

Save

Document Type:

11a) Define Document Type: (TC:/NOBA7) These Document Types are system defined. If required, we can define our own Document Type. In Accounts language, we call types of Vouchers. For ex: Purchase

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Voucher, Sales voucher, Debit Memo Voucher, Credit Memo Voucher and the like. Once we receive the Vouchers, we mark manually the Voucher numbers and then we make entries in computer. In SAP Language we call Vouchers as Document Type. And these Document Types should be assigned with No. Ranges (Without this No. Range, the system will not allow you to make any entries.) Purpose of No. range is, the system will do automatic numbering for all the entries. But while defining number ranges for each document type, we have to define respective document type number while defining number ranges in number column. These Document Types we are going to treat in A/cs Payables, A/cs Receivables and Asset Accounting.

2) Define Tolerance Group for G/L A/c T C :/NOBA0 Path: - SPRO>Financial A/cing>G/L A/cing>Business Transaction>

Open Item Clearing>Clearing Differences>Define Tolerance Group for G/L A/c (Purpose of this G L Tolerance is, if there is any payment difference (under-payment or over-payment) in ledgers, this configuration will account automatically the difference amount.) Select New Entries

Co.Code Group Description Debit Credit % Dr % Cr 1234 Tolerance

group for 1234

100 100 1 1

Save Define Tolerance Group for Employees:

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12a). Define Tolerance Group for Employees. TC:/NOBA4 (This configuration depicts permitted postings for Endusers) Select New Entries Enter Company Code Ignore Tol Group In per document column enter 9999999999 In item document column enter 99999999 In percentage column enter 5% Now Save data. This configuration enables end-users to make entries.(Employees means here SAP-End Users. Through this option we can control End-Users postings per Document. For example, if we define 1,00,000 in amount per document field, End user will not be able to post amount more than 1,00,000 per voucher.)

We can assign as per category-Accounting Clerks, Accounts Manager (Transaction Code:/NOB57), the tolerances by defining tolerance group. For example: Tolerance group ABC1 and configure the following tolerances:

(We do this controlling of SAP End user postings at the time of Go-Live.)

Accounting clerks:

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500,000 units of local currency per document

100,000 units of local currency per open item

5% cash discount

We can define tolerance group ABC2 and assign following tolerances: Accounting manager:

1,000,000 units of local currency per document

500,000 units of local currency per open item

10% cash discount

Field Status Variant::

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Field Status Variant: Here we are going to copy Voucher fields from SAP source for end-user operation purpose (to make Voucher entries), this is more concerned with Document type where all voucher formats will be copied to our Company code. Here we can make fields as Suppress (fields will not be displayed), Required (mandatory fields) or Optional, as per company policy/reporting option. 13) Maintain Field Status Variant T C: /NOBC4 Select 0001 (Select means you have to click before 0001 column) and then Press F6 Delete 0001, and type 1234 (Company Code) Enter Click on Copy All Enter & Save Select Position Type 1234 (Company Code ) Select 1234 (Company Code ) Double click on “Field Status Group” (left side) Double click on “ General Text (G001)” Double click on ‘General Data’ (Blue Line)

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Select Required Entry Radio Button for Text Select next group icon (to the left top) Select Required Entry for Business Area

Save Do the same procedure for G005 also. 14) Assign Field Status Variant for Company Code T C:/NOBC5 Select Position Type 1234 (Company Code ) In Field Status Variant column Type 1234 (Company Code ) Save. 15) Defining No. Ranges for Document Types: TC:/NFBN1/NOBA7 01 (system defined) and Document Type SA, both are same, stands for G L Entries. X1 stands for Recurring Entries (means End-user use this option to make entries which will occur every month, like Rent payments, loan Payments, where the End users store ready-made journal entries in SAP, and while making entries, just they will change Date and post it.) X2 stands for Sample Document entries. (This option will be used by End-user for storing Provisional Entries). Go to document type (/NOBA7), type Doc. Type SA, Enter. Select SA, click on 2nd icon (Details icon). Remember No. Range (system define), now click on No. range information. Enter Co. Code: 1234 (if you know particular document type no. start from here by using T-Code:/NFBN1) Select 2nd Interval (Change Interval button) Select Interval Button (Insert Interval button) In No. column type 01 (G L Entries)) Year: 2011 From No. (keep cursor in this column and press F4. You will find Intervals starting with No.1, just hit Enter key.) Now move the cursor to To No. column. Delete 99999999 and type 1000 or any increasing No. In the next column, don’t type anything (in 0 column). This 0 column gives the status of

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entries. (i.e. number of entries made.) Just move the cursor from box. Now hit Enter key and Save. Ignore messages and hit Enter. (Same way you can define for X1 and X2 also. 01(SA) is compulsory for any company, whereas X1 & X2 is optional.)

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GENERAL LEDGERS CREATION: /NFS00

General Ledger contains two segments: 1. Chart of Account Segment 2. Company Code Segment.

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To create General ledgers, type Transaction Code /NFS00 in Command Field. You have to enter first G L Account No. to create and type Company Code and then Select to the right 3rd icon (create). Then you have to select icon in Accounts group field by clicking on it. Select right Accounts Group for each Ledger. For example to create Cash Account Ledger, Select Current Assets group. And then in Short Text (mandatory) type Ledger Name: Cash Account. The long text can be used if Ledger name is too long. Then click on Control Data Tag, Select Local Currency Check Boxes for all Clearing Accounts, (When you are selecting Open Item Management Check Box, select this local currency check box also.). Define sort key as the case may be and select Line Item display Check Box for all types of ledgers. Click on Create/Bank/interest Tag, Enter in Field Status Group Field G001/G005/G067 as the case may be, depending on nature of ledgers. Now, Save. (While configuring Ledgers, carefully read Page No. 29). 15) Creation of General Ledger A/cs T C:/NFS00 G/L A/c

No Ledger Name Sort

Key Fld,Sts, Group

Select Check Box

100100 Retained Earnings A/c 001 G001 100000 Equity Share Capital 001 G001 200100 Cash A/c 001 G005 Relevant

cash flow 400100 Salaries A/c 001 G001 400300 Rent A/c 001 G001 100500 O/S Exp 001 G001 Op.Item Mgt 100300 IDBI loan A/c 001 G005 Relevant to

Cash Flow 400400 Interest A/c 001 G001 100505 TDS Tax Payable A/c 001 G001 Op.Item Mgt 100506 Service Charges Tax Payable 001 G001 Op.Item Mgt 100507 Edn Cess Payable A/c 001 G001 Op.Item Mgt

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G/L A/c No

Ledger Name Sort Key

Field Status Group

Reconciliation A/c Type

100501 Sundry Creditors A/c 012 G067 Vendor 200120 Inv. Raw Material A/c 001 G006 200101 ICICI Bank A/c 001 G005 Relevant

cash flow 200150 Adv to Vendors A/c 012 G067 Vendor 300101 Cash Discount

Received A/c 001 G001

200111 Sundry Debtors A/c 031 G067 Customer 300000 Sales A/c 001 G029 100502 Adv From Customer

A/c 031 G067 Customer

100503 Sales Tax Payable A/c 001 G001 O I M 200125 Purchase Tax Paid A/c 001 G001 200010 Land A/c 018 G007 200011 Building A/c 018 G067 Asset 200012 Plant & Machinery

A/c 018 G067 Asset

200013 Furniture & Fixtures A/c

018 G067 Asset

200014 Vehicle A/c 018 G067 Asset 200015 Capital Work in

Progress A/c 018 G007

200211 Acc Depn Building 018 G067 Asset 200212 Acc Depn Plant & M 018 G067 Asset 200213 Acc Depn Furniture 018 G067 Asset 200214 Acc Depn Vehicle 018 G067 Asset 300100 Asset Sale 018 G052 300110 Clearing A/c-Rev 018 G052 300111 Profit on Asset Sale 018 G052 400310 Loss on Asset Sale 018 G001 400311 Loss Due to Scrapping 018 G001 400500 Depreciation A/c 018 G001 200160 Sundry Debtors Bill of

Exchange A/c 031 G067 Customer

100400 ICICI Bill Discount 001 G001 Op it mgt

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GENERAL LEDGERS CONFIGURATION:

1. Balances in Local Currency: Select this checkbox for all Balance Sheet Ledgers except Sundry Creditors, Sundry Debtors and related ledgers (where foreign exchange is involved). This selection is optional for other Ledgers. If you are selecting Open Item Management Checkbox, select this Balances in Local Currency checkbox also.

2. Tax Category Checkbox: Define * (star) here to activate VAT for Sales and

Purchases Ledgers. This should be done after configuring VAT. 3. Reconciliation Account Type: Select this checkbox only in case of

Reconciliation Accounts. i.e., for Sundry Creditors Ledgers select Vendors, for Sundry Debtors Ledgers select Customers and for Assets Ledgers select Assets. Select in Field Status Group G067 for all Reconciliation Accounts.

4. Open Item Management Checkbox: Select this Checkbox only for Ledgers

“to be cleared”. For example, ledgers like Payables, Outstanding Expenses, GR/IR Accounts and Clearing Accounts. Ledgers to be cleared in a short while- like Auditors Fees Payable, Bonus Payable, Rent Payable and the like select this Open Item Management Check Box. GR/IR Account (under MM Module): Goods Receipt and Invoice Receipt Account. Once we receive materials, we check with Invoice whether materials supplied as per Invoice, i.e., quantity, quality, etc., at this stage, we make part payment to Vendor. Any shortage or low quality in materials supplied, we hold the payment. Once it is cleared from Vendor, we make balance payment. GR/IR Account is the best example for ‘Open Item Management’.

5. Line Item Display Check box: Select this Checkbox for all types of Ledgers, as it gives Date-wise Ledger printout, which is must for Reconciliation/Date-wise Verification of Accounting entries.

6. Sort Key: System defined. Select 001 for all general types of Ledgers. 012 for Sundry Creditors Ledgers, 031 for Sundry Debtors Ledgers and 018 for Assets type ledgers. This Sort Key is the basis for Ledger processing.

7. Field Status Group: Types of ledgers: - for Cash/Bank type Ledgers select G005 and Relevant to Cash Flow

check box

- Reconciliation Accounts: Select G067 (or G012) for Sundry Creditors, Sundry Debtors And Assets Ledgers.

- Any other types Ledgers select G001.

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- For Assets having no depreciation G007 - For Sales/Revenue type of Ledgers select G029.

8. Interest Indicator Checkbox: Define Interest ID here after configuring Interest Calculation.

To display already created Ledgers: In FS00 option, select in tool bar Settings-Hierarchy Display. Then in Pop-up box select Display Accounts Radio Button and hit enter 2 times. Now, in Command Field, type /NFS00 and Enter. Now you will find Accounts Group in left hand side. To display Ledgers created, click on A/cs Group icons. To close this option, select Settings-Hierarchy Display, in pop-up box select Do not Display Accounts Radio Button and hit Enter 2 times. Now in Command Field type /NFS00 and Enter. You will come to normal screen. G L Entries: (Post Key 40 stands for Debit, Post key 50 stands for Credit, system defined) Now Journal entry: Rent A/c Dr 5000 To Cash A/c 5000 (Being Rent paid for the month of…..) TC:/NF-02 Enter Doc Date (current Date/Voucher Date), Posting Date (on which date you are making entry)(Press F4 first and then press F2 to get current Date.) Postkey 40 Account (Press F4, Enter and select which Account you want to Debit (Rent A/c), Enter In Amount 5000 Business Area: (click on icon in the same field, and select. But the same Bus Area should be selected in the Credit entry also.) Text: (narration) Rent Paid for the month of ….. Postkey 50 Account (same procedure and select A/c to be credited (Cash A/c) Enter In amount * (This ‘Star’ copies amount from Debit entry) Bus Area : (same as in Debit entry) Text: + (This ‘+’ copies text from Debit entry) Enter. In top (Tool Bar) Select Document-Simulate

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Journal entry will be displayed. To post, Save. Document is posted. To view Ledger: TC:/NFS10N Enter G L A/c No. (For which you have made entry) Co. Code 1234 Fiscal Year 2011 Bus Area :( which you have selected while making entries) In Top left you will find one clock-type icon, click on this (Execute) icon. Ledger will be displayed. BLOCKING G L MASTER: (Purpose of this blocking is no End-user should make entry to these Ledgers which they are not authorized to make entry.) In TC:/NFS00 option, first type in G L A/c No. field, which Ledger(s) you want to block and select in Top-G L Account-Block You will be displayed with blocking option. Select all Check Boxes and Save. Try to make entry to these Ledger(s) through TC:/NF-02. To remove Blocking, same procedure deselect all the Check Boxes and Save. EXERCISE: TO COPY COMPANY CODE TO COMPANY CODE This configuration is to copy General Ledgers and No. Ranges from one company code to another. By doing this configuration, one can save time in creating General Ledgers and No. Ranges, for new company code. But both the company codes should have same accounting year. Here Source Company Code means from which company code you want to copy. (In the source company code, you should have done G L Creations and No. Ranges.)

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Procedure: 1. Create New Company Code 2. Go to /NEC01 Select 2nd Icon.

From Co. Code : (Select Source Co. Code to Copy) To Co. Code: (New Co. Code) Enter.

3. Message: Copy GL Accounts? Select “Yes” 4. Message: Copy No. Ranges? Select “Yes’ 5. Create Chart of Accounts /NOB13 for New Company Code 6. Assign Source Co. Code Ch of Accounts to New Co. Code /NOB62 7. Assign Field Status Variant of Source Co. Code to New Co. Code

(/NOBC5) Now in New Company code, view Ledgers : Go to /NFS00 View No. Ranges copied: Go to /NFBN1

Customization of Foreign Company Code: 1. Create Co. Code for Australia-based company. Ex: 2000 2. /NEC01. Select 2nd Icon (copy organization object). 3. From: 1000 To: 2000 4. copy G L ? Select “Yes” 5. Change local Currency? “Yes” Define AUD 6. Ignore messages, hit Enter. 7. Transport No. Ranges? “Yes”. Enter 8. Assign Accounting Year K4 for Co. Code 2000 9. /NOB62. Assign in both the columns INT and GKR to Co. Code 2000 10. Assign Posting period Variant 1000 to Co. Code 2000 11. /NOBC5, Assign 1000 to Co. Code 2000 12. /NFS00. Check General Ledgers. Client-level configuration: Configuration done at client-level, can be assigned to any company code(s), if it is matching the requirement. Example: Chart of Accounts, Fiscal Year Variant, Field Status Variant, Interest ID, Tax Types, Account group for Vendors/Customers, etc., Company code level configuration: Configuration done at company code level cannot be assigned to any company code. Example: General Ledgers, Vendor/Customer Name, etc., But can be copied to other company code(s).

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FOREIGN CURRENCY POSTING This foreign currency posting is not a configuration work, but the system will not accept any foreign currency conversion entries until you define foreign currency rates. G = stands for Standard Translation at Bank Buying Rate B = stands for “ “ Bank Selling Rate M = stands for “ “ Average Rate P = stands for “ “ Cost A/c planning (Whole activation and defining foreign currency rate depends on Date) Define Translation Ratio for Currency Translation: TC:/NOBBS Select “Y” for the message. Select New Entries ExRate Type

From To Valid From

Ratio From

Ratio To

G USD INR 01.04.2011 1 1 B USD INR 01.04.2011 1 1 Save. (Here, Ratio 1 activates the system for calculation) Here we are activating USD. If Company having any business transaction with Japan activate Yen, for Australia, activate here AUD and the like. Then only we can define rates in Exchange rates. Enter Exchange Rates: (This will be done by the End-users on everyday/defined days.) TC:/NOB08 Select New Entries ExRate Valid

From Indirect Quotation

From Direct Quotation

To

G 01.05.2011 (Blank) USD 45 INR B 01.05.2011 (Blank) USD 48 INR

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M 01.05.2011 (Blank) USD 47 INR Save. (Normally Companies prefer M Type Exchange Rate.) To enter translation Ratio: TC:/NOBA7 Select Position Enter Doc Type: SA Select SA Select in top Details Button Under Default Values- Ex Rate type:M Save. Now pass an entry (F-02) with changing currency from INR to USD (below Company Code) and view ledger also.

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INTEREST CALCULATION

There are two types of interest calculation

1) Balance Interest Calculation: S type –used for G/L A/cs (If the Co. has taken loan from Bank, to calculate Interest amount to pay .)

2) Item Interest Calculation: P type –used for Vendors/Customer (If payment is overdue from Customers or due from Vendors here we define Interest.)

(Interest indicator may be defined by any 2 characters. For each Rate of Interest, you have to define different Interest IDs and separate Loan Ledgers) General Ledger A/c Balance Interest Calculation 1) Define Interest Calculation type T C: /NOB46 Select New Entries Interest Indicator No. or Name SI Name 12% P A Interest Calculation type: S Save 2) Prepare A/c Balance Interest Calculation T C:/NOBAA Select New Entries Interest Indicator SI Interest Calculation Frequency 01 Calendar type G

Select Balance plus Interest check box Save

3) Define Reference Interest Rate T C: /NOBAC Select New Entries Reference Interest Rate SI12% Short or Long text 12% Monthly Date From 01/04/2011 Currency INR

Save

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4) Define Time Dependent Terms T C: /NOB81 Select New Entries Interest Indicator SI Currency INR Effective From 01.04.2011 Sequential Number 1 Text Select Credit Interest Balance Interest Calculation method Reference Interest Rate SI12% Select Next Screen Button Interest Indicator SI Currency INR Effective From 01.04.2011 Sequential Number 2 Text Select Debit Interest Balance Interest Calculation method Reference Interest Rate SI12%

Save 5) Define Interest Rate Values T C: /NOB83 Select New Entries Reference Interest Rate SI12% Effective From 01.04.2011 Interest Rate 12

Save 6) Creation of G/L A/cs: 1)G L A/c No. 100300(Under A/cs Group: Secured Loan) IDBI Loan A/c (After defining FSG:G005, Define Interest Indicator ‘ SI’. 2) G L A/c No. 400400 Interest Paid A/c (under A/cs Group: Interest) 3) G L A/c No. 200101 UTI Bank Curr A/c (under Current Assets) If you have already created above ledgers, just assign Interest Indicator to Loan Ledger.) 7) Prepare G/L A/c Balance Interest Calculation T C: /NOBV2 Select Symbol button Select Account button Chart of Account 1234 Enter 0002 INR 400400 2000 INR 200101 Save. (These 0002 (Interest paid) and 2000 (G L Account paid) are system defined.)

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(To know the results of Interest calculation, we have to make 2 entries: 1. Loan received from Bank and 2. Repayment of loan. But you have to make these entries in the previous month, (If you are in Sept. month make these two entries on 1st of Aug loan recvd and loan repaid on 30th of Aug. Reason is, you have to calculate Interest for one month. Your Entry, Loan received and loan repayment should have at least 30 days gap.) 8) a) Make a journal entry for receiving loan T C:/NF-02 Posting Key 40 Stands for Debit and Posting Key 50 Stands for Credit. Document Date 01.08.2011 ( one month previous date ) Posting Date 01.08.2011 Document Type SA Company Code 1234 Posting Key 40 200101 Enter Amount 100000 Business Area (Select from system) Text being loan received from IDBI bank Posting Key 50 Loan A/c no.100300 Enter Amount * Business Area (Select from system) Value Date: 01.08.2011 Text + Enter Document-Simulate- Save b) Make a journal entry for repayment of loan installment Document Date 31.08.2011 Posting Date 31.08.2011 Document Type SA Company Code 1234 Posting Key 40 IDBI loan A/c 100300 Enter Amount 12500 Business Area Select from system Text being 1st installment paid to loan a/c Posting Key 50 200101 Enter Amount *

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Business Area (Select from system) Value Date: 31.08.2011 Text + Enter Document-Simulate- Save (Note: Business Area should be the same) 9) To Run Interest Calculation T C: /NF.52 Chart of Accounts 1234 G/L A/c No 100300 (Loan A/c) Company Code 1234 Calculation Period From 01.08.2011 To 31.08.2011 Currency INR Select Standard Interest Calculation Select Additional Balance Select Post Interest Settlement Select Update Master (Session Name: This is a temporary name just to run the interest cycle and once interest is posted this session name will disappear. Hence you can define any numeric or alphabetic as session name.) Session Name {Variant} 1456 Save Variant 1456 Description Interest for the month Save Execute (Click on left top clock type Icon). (Now SAP will display chart relating to entries made and interest amount to post) In Toolbar select System-Service-Batch Input-Session (Click on Session) Select Variant (Session name) 1456 Select Process Select Radio Button Display Errors Only Select Process (If you have made Business Area as mandatory, system will display voucher entry or else select “Exit Batch Input Session”.) Enter Text Being Interest Posting Posting Key 50 Loan A/c 200101 Enter Enter Business Area Enter Enter Text Being Interest Posting for the month Posting Key 40 Interest A/c 400400 Enter Enter Business Area Enter Amount * Text + Enter

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Enter Business Area Enter & Save Select Exit Batch Input Session To verify your entries go to T C: FS10N G/L A/c No. 400400 (Check 200101, 100300 also) Company Code 1234 Fiscal Year 2011 Business Area { Business Area should be the same } Execute(click on Clock type Icon on top left) you can see the report on your screen. For repeated practice of Interest Calculation, in the same Co. Code create same 3 General Ledgers, i.e., Bank Loan A/c, Bank Current Account and Interest Paid A/c with different G L numbers. Ex; You have already practiced with 100300 Bank Loan A/c, 200101 Bank Current A/c and 400400 Interest paid A/c. Now create GLs 100301, 200102 & 400401.