Competency Assessment Management System

Q1) you have an understanding how many delta differences between SAP R/3 FI and mySAPFinancials on ECC 6.0 ?

A1) Following are the new functionalities added in Ecc 6.0

1. Multi Ledgers: Leading and non Leading Ledger2. Parallel Accounting3. Document Splitting4. Real time integration of FI and CO5. Profit center integrated with GL 6. Segment Reporting7. Accelerating Period end Closing

Q2) you have experience in which all phases in a project lifecycle: 1. Plan 2. Analyse 3. Desgin4. Build 5. Test and DeployA2)

1. Plan Phase: Define goals, expectations, delivery strategy

2. Analyze Phase: Analyze business process, doing Fit Gap analysis

3. Design Phase: Detailed business process, Plan for unit testing/integration testing and UAT

4. Build: Perform detailed technical design

5. Test: Performing unit test, integration test or regression test6. Deploy: Go live preparation/Execution and post go live support

Q3) Are you aware of multiple data uploads tools? (LSMW,BDC,BADI,BAPI)Legacy system Migration workbench: This is a tool used to transfer data from legacy system to SAP system. 14 steps are involved.Example: We can upload all the Master data related from Legacy to SAP. It offers 4 ways to import data into SAP – BDC, Direct input, BAPI and IDOC’sThe steps in creating a LSMW are

Maintain Object Attributes – Recording the Transaction Maintain Source Structures Maintain Source Fields – Determination of the Flat file fields Maintain Structure Relations Maintain Field Mapping and Conversion Rules – Mapping Recorded fields with Source structure. Specify Files Assign Files Read Data Display Read Data Convert Data Display Converted Data Create Batch Input Session Run Batch Input Session

BDC – Batch data Conversion – it is automated procedure for transferring large volume of external or legacy data into SAP using “batch input programming”.3 ways of achieving this – Call transaction method – session Method – Direct input methodIrrespective of the method, the following steps will be used

- Identify the screens of the transactions that the program will process

1

- Write program to build the BDC table that will be used to submit the data (say text file) to SAP

- Submit the BDC table to the system in the batch mode

Q4) your experience in master data elements of basic modules (AP, AR, GL, AA, Banking,PCA) within SAP Financials

A4) GL Master Data:

GL master record are divided into two areas1. Chart of accounts area FSPO

The chart of accounts area contains the data that is valid for all company codes, such as the account number.

2. Company code specific area FSSOThe 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.

Master Data configuration 1. Define COA: List of all accounts used in the General Ledger i.e. B/S and P&L accounts2. Assign COA to company code3. Define Account Group OBD4

The account group is a summary of characteristics that control the creation of master records.You can use it to determine which fields must or can be filled when creating the master record. In addition, it can be used to predefine a number interval, from which the numbers for the master records should be chosen. Accounts that require the same master record fields and use the same number interval are created with the same account group.

4. Field Status Group OBASYou use this field to define which fields are displayed when you post accounting transactions to a G/L account. A field may have one of the following statuses:_ hidden (suppressed)_ Entry required (required field)_ Ready for input (optional field)

AP Master Data:• General Data view

This view is unique per supplier. General data view is shared corporate / Group wide Main fields: Account number, Name, Address, Bank details, VAT registration number

• Company Code Data viewThis view is company code dependant. Each company code can have a specific set of data.One general data view can be linked to many company code viewsMain fields: Reconciliation account, Payment term

• Purchasing Organisation Data viewThis view is purchasing organisation dependant can have a specific set of data.One general data view can be linked to many purchasing organisation views Main fields: Order currency, Payment term

1. Create Vendor Account Group It Groups the properties that control the creation and change of master records. It Controls the number range for the vendor master records (Each vendor master is identified with a unique account number)and Differentiates Internal (for Interco) and External (for 3rd Party) vendors Also drives the usage of Partner Functions (Purchasing level – MM)

2

Trading Partner function will be used to report and reconcile inter- as well as intra company business transactions.

2. Create Number Ranges XKN13. Assign Number ranges to Vendor account group4. Define Tolerance group for Vendors5. Create Vendor Master XK01

AR Master Data:Complete customer account consists of four segments:

• General data: Maintained at the client level and hence remains the same for all the modules & their organizational units Account number, Name, Address, communication details; Customer’s bank account, Tax registration information (VAT No.)• Company Code data: Data specific to a company code are maintained in this segment. Prior to posting to a customer in a company code, the company code segment has to be createdReconciliation account, payment termsDunning Data• Sales Organizational data: Sales related information is maintained in this segment. Shipping information; Billing information• Credit Control Data: Data specific to a credit control area (Business Line) cross company codesCredit information

Create Customer Account Group Create Number Ranges XDN1Assigning Number Range to customer account groupCreating Customer Master XD01

AA Master Data

Organization structure: 1. Company code

a. Chart of Depreciation ECOB/OAPL: All settings relevant to Asset Accounting are defined in the Chart of Depreciation. Charts of Depreciation are used in order to manage various legal requirements for the depreciation and valuation of assets, i.e. country-specific. Therefore, all company codes that complies to the same country regulation will have to use the same Chart of Depreciation

2. Assigning COD to Company code OAOB 3. Asset Classes OAOA: Asset class is simply a classification of similar asset, for example, vehicles,

furniture & machines. Every asset must be assigned to only one asset class. Asset classes are used to structure fixed assets according to the enterprise requirements. The asset classes apply in all company codes

4. Number Ranges for Asset Master data AS085. Account determination & Screen Layout for your Asset class: The account determination defines

the G/L accounts that should be posted during asset transactions. This definition is effective for each chart of accounts and for each depreciation area that will perform posting. One account determination can be used for more than one asset class

6. Identify GL account for Asset Class

3

7. Depreciation Areas OADB: Depreciation area is used to calculate different valuation of a fixed asset in parallel for various business and legal purposes (For example, you may require different types of values for the balance sheet than for cost accounting or tax purposes).

8. Assigning Financial Statement Version for every Dep area OAYN9. Posting Key and Document types for Asset Posting OBYD andOAB310. Depreciation Key AFAMA: Depreciation key determines how the depreciation is calculated for an

asset. A single depreciation key is assigned to each depreciation area at asset master data. Depreciation key contains valuation settings for depreciation: Depreciation Key; Useful life (In years & period); Scrap Value %; Depreciation start date

11. Activation of controlling Objects for AA Posting12. Posting Rules for Depreciation OAYR13. Transaction types

Master Data Maintenance– Create Asset Master (AS01)– Change Asset Master (AS02)– Display Asset Master (AS03)– Create Asset Sub Number (AS11)– Lock Asset Master (AS05)

Bank Master Data

1. Creation of Bank Fi012. Defining House Bank FI123. Configuring EBS4. Creating Bank statement types 5. Assigning House Bank Accounts to Bank statement Types6. Creating Account Symbols7. Link Account symbols with GL account8. Defining Posting Rules9. Assigning External Transaction Types to Posting Rules10. Importing EBS to SAP11. Importing Bank statement FF_5

Q5) Do you understand basic configuration and integration aspects of the following modules? 1.FI-GL 2.AP, AR 3.Assets Accounting and its integration with other modules 4. BankAccounting & basic cash management and forecast 5. Basic configuration of PCA and its integration with other modules

1) Configuration of FI-GL

Organization structure1. Company code definition 2. COA definition 3. Assigning Company code to COA4. Fiscal year and Posting Period variant5. Assign Company Code to Fiscal Year Variant (OB37)6. Defining Posting Period 7. Assigning Posting Period variant to company code

4

8. Defining Field status Variant9. Assigning field status variant to Company code10. Defining Document Types OBY711. Account Document number range FBN112. Defining Posting Key

GL Masters covered in Q1

Business Transaction 1. FI Document Posting F-02/FB502. Maintaining Exchange rates OB08

2) Configuration of AP

1. Maintain Vendor Master: Covered in Q32. Business Transaction

Enter Invoice a) Purchase Order related Invoices: Entered into the system via the Logistics module. The invoice

will reference a purchase order number that exists in the SAP system Invoice verification will apply. Key transaction – MIRO

b) Non-PO related Invoices: Invoice entered into the system via the Finance Module. This will be charged directly against a General Leger / Cost Centre Account. The Invoice verification does not apply. Key transaction – FB60

Defining Terms of Payment OBB8: Define rules with which the system can determine the required terms of payment automaticallyDefining Tolerance Limits [OMR6]: The following tolerance types can be set: Price variance; Quantity variance; Order price quantity variance; Schedule varianceAutomatic Account Determination [OBYC]: When you post an invoice, the system updates various accounts in Financial Accounting. It determines automatically which amounts have to be posted to which accountsPayment ProcessingThe Payment Program FBZP: Using this transaction, specify the following:

a) Company Code settings: General information is required for all company codes using the payment program

b) Payment Method Settings: The payment method is the procedure by which payments are madec) Bank Selectiond) House Bank FI12: House Banks are the banks with which your company (company code)

maintains a bank account. You store the accounts that you maintain at these banks under an account ID

e) Define account for Cash Discount taken and lostf) Define account for Exchange Rate differences[OB09]g) Define account for Bank Changes [OBXK]h) Define Payment Block reasons [OB27]

Configuration of AR

1. Master Data covered in Q32. Business Transaction:

Posting an Invoice FB70: The document is posted to the database and the G/L account and customer transaction figures are updatedPosting a credit Memo with reference to the invoiceFB75Reversing a document FB08

5

Posting to One time vendor: One-time accounts are used to manage one-time customersDefine Account groups for one time vendor

Create a one-time account FD01Post to a one-time account FB70

Payment Program: configuration same as required for AP; Execution F110Clearing

Carrying out Manual Clearing F-32Carrying out Automatic Clearing F.13

Down Payment: Down payment requests and down payments are special general ledger transactions. These transactions are not posted to the G/L account defined in the customer master record but to an alternative G/L account. Alternative reconciliation accounts for posting the down payment requests and the down payments Down payment request: Down payment requests are noted items that do not affect the balance

sheet. They can be taken into consideration in the dunning program and in the payment program. F-37

Posting a Down payment: You can post down payments either manually or automatically (payment program SAPF110. For manual Process F-29

Post Invoice FB70 Down payment clearing: After you have issued the final invoice, you can clear the down payment

with the invoice. You carry out a transfer posting to the normal reconciliation account F-39

Configuration of Assets Accounting

1. Create Asset Records 2. Acquisition

1. Acquire Asset – New/Transfer2. Capitalized Work-In-Progress (AuC)

3. Change/Transfer1. Asset Reclassification

1. Transfer to different Cost Center, Internal Order or Legal Entity Depreciation2. Retirement

Sale of Assets Scrapping of Assets

1. Masters in AA covered in Q32. Assets Transaction

Acquisition:Define Document types: A key that distinguishes the business transactions to be posted. The document type determines where the document is stored as well as the account types to be postedDefine Transaction Types: The object that classifies the business transaction (for example, acquisition, retirement, or transfer), and determines how the transaction is processed in the SAP system.Define Posting Key: This key determines the Account type & Type of posting (debit or credit)Process: Create Asset MasterCreate Purchase Requisition Create POGRTransfers: Transfer from one cost center to the other: This is perform via Asset master data change

6

No FI documents is created, hence no posting to G/L Transfer location: This is performing via Asset master data change. Example, change of plant or location No FI document is created, hence no posting to G/L

Retirement: Retirement with revenueRetirement without revenue

Integration of FI with Other ModulesIntegrationFI-SD – VKOA – The account determination is based on following 5 factors > COA/Sales org/Account assignment group of the customer/ Account assignment group of the material /and account key

FI-MM – OBYC – In MM the AD is as follows – Depending upon plant entered during the Goods issue, the Company code is determined by the system which in turn determines the COA. The plant entered in Goods issue, determines “valuation class” and then “valuation groping code”The valuation class is determined from material masterFor movement type, the transaction key (BSX,DIF,GBB) determines the GL account

Q 6) Do you understand reporting requirement of the following modules? 1. FI-GL 2.AP,AR 3.Assets Accounting and its integration with other modules 4. Bank Accounting & basic cash management and forecast 5. PCA reporting and its integration with other modules

FI- GL Reporting Transaction Code FBL3N - Competency Assessment Management System Transaction Code S_ALR_87012249 - Actual/Actual Comparison for Year Transaction Code S_ALR_87012284 - Financial Statements & Trial Balance Transaction Code FS10N - Display Balances Transaction Code FS10N- GL Account Balance (S_ALR_87012277) Balance Sheet and Profit & Loss (S_ALR_87012284)

Reporting Requirement for APSystem provides various standard reports that you can use to generate evaluations and analyses directly from the posted account balance.

T- Code S_ALR_87012077 - Vendor Information System T- Code S_ALR_87012086 - Vendor List T- Code FK10N Display Vendor balances T- Code FBL1N Vendor Line Item display T- Code S_ALR_87012078 – Due Data Analysis for Open item

Reporting Requirement for AR The Following are the Standard SAP Reports

S_ALR_87012186 - Total Sales Customer Wise S_ARL_87012171 - Total Sales for Each Period FBL5n - Customer Line Item Display FD10n - Customer Balance Display S_ALR_87012168 - Due Data Analysis for Open items. S_ALR_87012167 - Collection Status Report

Reporting Requirement for AA

7

Asset Explorer (AW01N) Asset History (S_ALR_87012075) Asset History Sheet (S_ALR_87011990) Asset Transactions (S_ALR_87012048) Asset Acquisitions (S_ALR_87012050) Asset Retirements (S_ALR_87012052) Asset Balances (S_ALR_87011994) Depreciation Current Year (S_ALR_87012035 ) List of Origins of Asset Debits (S_ALR_87012058) Depreciation on Capitalized Assets (Depreciation Simulation) (S_ALR_87012936) Asset Inventory List

By Cost Center (S_ALR_87011979) By Location (S_ALR_87011980) By Asset Class (S_ALR_87011981) By Plant (S_ALR_87011982)

Q7) your depth of experience in PTP cycle would comprise of:A7) Determination of RequirementsIn this step, there is a requirement of material or service, which must be procured externally, from the user. The requirement must be recorded as Purchase Requisition (PR) document in SAP MM.Purchase Requisition (PR) isan internal purchasing document in SAP ERP that is used to give notification to responsible department about the requirement of material/service and to keep track of such requirement. Determination of the Source of supplyAfter the PR has been created in the previous step, the responsible department must process it. The buyer of the procurement department must determine the possible sources of supply of the material/service specified in the PR. Vendor SelectionIf in the previous step, there are some outline agreements or info record documents that can be used as references to create a PO, the buyer can select or choose which vendor that will be appointed to provide the material/service at this time. PO ProcessingIn the previous step, the buyer has selected the vendor which will provide the material/service needed in PR. In this step, the buyer creates a Purchase Order (PO) based on the PR and the reference document (that can be an outline agreement, an info record, or a quotation). PO MonitoringAfter the PO has been sent to the vendor, the buyer has the responsibility to monitor whether the vendor delivers the material/service at the right time on the right placeGoods Receiptwhen the vendor delivers the material or perform the service, the responsible person of the company must perform the goods receipt (GR) or service acceptance (SA) transaction. The GR/SA will update the PO history. Invoice VerificationAfter the vendor delivered the material/service, it will send the invoice to the person responsible in the company. Invoice is a formal document issued by a vendor to the company to request the payment for the material or service that the vendor has already provide to the company according to the terms of payment agreed in the PO. Payment ProcessingAfter the Invoice Receipt (IR) transaction has been posted, the vendor’s account payable will increase and

8

the company must process the payment to that vendor as stated in the terms of payment of the PO. The payment transaction will be performed in FI module. After the payment has been posted, the vendor’s account payable will be debited and the cash or bank account will be credited.

1. Purchase Requisition creation: ME51n2. Quotation creation ME413. Quotation maintenance ME474. Quotation comparison ME495. PO creation ME21n6. PO Printing ME9F7. GR (Goods Receipt) MIGO8. Invoice Receipt MIRO

Q8) you in depth experience in APP would include

Payment can be processed in 2 different ways Automatic Payment Run Manual Payment Main advantages of using APPAutomatic selection of invoices to be paidAutomatic clearing of open items based on predefined posting schemesEnd to end process follow up and improved traceability Configuration for APP:

1. Creation of Bank Key FI012. The Payment Program settings: FBZP

Company Code settings: General information is required for all company codes using the payment program

Payment Method Settings: The payment method is the procedure by which payments are made House Bank FI12: House Banks are the banks with which your company (company code)

maintains a bank account. You store the accounts that you maintain at these banks under an account ID

Creating account Id’s and assigning it to House bank Assigning GL to Bank Account

Executing APP F110 Defining Parameters : Payment parameters defines when, for which period, which company

code, payment method, next posting date, and range of vendors you desire to pay

Creating Proposal: The payment proposal displays the open items whose payment is projected by the payment program, once the payment proposal is created, it can be edited.

Payment Run: Once you have edited and accepted the proposal, you can plan the payment run. The payment program creates the payment documents and prepares the data for printing the Cheques

Printout: The final step of the Payment Program is to schedule a time to create the payment medium eg: print the cheques or create the bank transfer file.

Q14) you are familiar with how many modules of FSCM

9

A14) SAP FSCM The SAP Financial Supply Chain Management (SAP FSCM) set of applications provides a complete, integrated solution for managing electronic customer disputes, receivables, collections, and customer credit risk. SAP FSCM helps you more effectively control your company's accounts receivable processes and ensure cash flows, more streamlined handling of billing disputes, and collections.

Collection Management: The FSCM Collections Management module supports proactive Accounts Receivable management with the aim to reduce DSO (Days sales Outstanding) and bad debt write-offs, improve cash flows, strengthen the working capital position, and improve customer relationships through targeted customer communication.

Collections Management supports the proactive management of a company’s receivables via a flexible prioritization of these items, and thus a more structured and efficient customer communication process.

Customer transaction data is transferred from FI-AR to FSCM-Collections Management and is prioritized according to ‘valuation rules. Worklists are generated for all of the relevant customers and are used by Collection Specialists to prepare and carry out customer contact.

Collector Specialists have access to all open items, payments, past contacts, promises to pay, disputes and other communication history to simplify his/her communication with the customer.Steps in Collection ManagementConfiguration settings for Collection Management

1. Define BP roles and assign BP roles to BP category2. Define BP grouping and assign number ranges3. Maintain Synchronization objects4. Define BP role for direction customer to BP5. Define number assignment for direction BP to customer6. Define company codes for collection management7. Activate SAP Collection Management8. Activate distribution per company code9. Define Collection segments10. Define Collection Profiles11. Define Collection rules12. Define Collection Strategies13. Define Collection groups14. Assign collection Groups to Collection Segment15. Make settings for Promise to Pay

Process in Collection Management

16. Transfer data from FI-AR to FSCM UDM_SEND01_ITEM17. Assign collection profile to Business partner UDM_BP_PRF18. Assign collection specialist to BP UDM_BP19. Generate work list for collection specialist UDM_GENWL20. Collection supervisor UDM_SUPERVISOR21. Collection specialist work list U0044M_SPECIALIST

Create Promise to PayCreate dispute caseCreate customer contract

Dispute Management: Provides functions to process discrepancies between organizations and Business Partners in regards to the Business Partner’s financial obligations.

10

1. Activate Process integration for dispute Management2. Activate assignment of open credit and payments3. create attribute Profile4. create values for attribute priority5. create values for attribute escalation reason6. create status profile7. Define number range interval for case8. Define case type9. create profile for case search10. Create Values for Attribute "Root Cause Code"

Transaction for dispute management SCASE

Credit Management: Control your customer’s credit exposure; Optimize terms for your customers; Reduce amount of bad or doubtful debt

AP Credit Management (FIN-FSCM-CR) will eventually replace the existing Credit Management (FI-AR-CR). FI-AR-CR is a purely internal FI credit management application, whereas SAP Credit Management (FIN-FSCM-CR) provides a comprehensive, integrated, and cross-system form of credit management.

1. Define Credit Segment2. Define Formula3. Business master data 4. Define Rating Procedure5. Define rules for scoring and credit limit calculation 6. Define credit segment and assign collection segment to credit segment

Q20) in depth Knowledge of Dunning Configuration and the Process

Configuration Define Dunning Procedure: define dunning level, grace period etc in dunning ProcedureProcess Flow

Maintain customer accounts: assign the required dunning procedure FD01/FD02 Overdue items exist in the respective customer accounts. If this is not the case, you can post

to the customer account manually; you should ensure here that the due date of the items is at least 30 days in the past

Start the dunning program F150 Print out letters (transaction SP01)

Result: Dunning notices to customers are created. The dunning data in the customer master record (FD03) and in the open items is updated

with the relevant dunning level and the last dunning date. The highest dunning level of all the open account items is set in the master record.

Q23) in a functional specification document youA23) Functional Specification : This specification is a document that clearly and accurately describes the essential technical requirements for items, materials, or services including the procedures by which it can

11

be determined that the requirements have been met They provide a precise idea of the problem to be solved so that they can efficiently design the system

Q25) How many niche skills you have worked for e.g. FSCM, FM, IM, Joint Venture Accounting,Contract AccountingA25) FSCM covered in Q

Q30) Do you understand the Special ledger process/toolThe special purpose ledger allows you to carry out parallel accounting with the general ledger

Steps to create special purpose ledgers1. Install table groups GCIQ2. Define fields movements GCFT3. Create ledger GCIQ4. Assign companies or company code to ledger GCL25. Configure ledger selection GCL26. Configure validation and substitution 7. Configure manual special ledger posting- Define version of actual data- Set up document types for manual special ledger postings GCBX- Configure special ledger number range GB04/GB05- Set up and maintain special ledger posting periods GCP1/GCP2

Q12) your depth of experience in Funds Management Configuration cycle would comprise of:

SAP Funds Management: The tasks of FM are to budget all revenues and expenditures for individual responsibility areas, monitor future funds movements in the light of budget available, and prevent budget overruns.FM enables you to keep a precise check on – Revenues and expenditure – financial equilibrium of your business, by comparing commitment and actual values with the current budget.ConfigurationMaintain and Assign Financial Management Area, Assign company code to financial management area and integrate other related components

Activate Global Funds Management Functions ,Define global parameters And assign Fiscal Year Variant to FM Area

Master Data configuration for Fund center, Creating and changing Hierarchy Variant and assigning Hierarchy Variant to FM Area

Set Up Budget Profiles, Assign Budget Profile to FM Area, complete all the steps for Budgeting and assign number Ranges

Define Tolerances for Availability Control

Define Field Status Variant, Assign Field Status Variant to Company Code. Define Field Selection String, and Document Types

Configuration settings for assigning update profile to FM Area and to override Update Profile

Q11) you have been involved in cutover strategy of which of the following sub modules in SAP Financial: 1. GL 2. AP and AR 3. Asset Accounting 4. Bank Accounting 5. PCAA11)

12

Cut over Strategy: Cut over period is the period between the closures of the Legacy system to Go-Live of Sap System.

Decision of the Go-Live date Closure of Legacy System Extraction of Data from Legacy System Conversion of Extracted data into upload formats Determination of Cut-Over Period Handling transactions during cut over periods

Activities carried out in this period are: Data download from legacy system and upload into SAP system. Reconciliation of balances between Legacy and SAP system

Handling Transactions during Cut-Over Period

Stopping all transactions during cut-over period Matching the Cut-Over period on Non-Working days Performing only critical transactions during Cut-Over period like Statutory payments etc.

GL/AP/AR cut over strategy

Generally only Open items are uploaded for AP/AR and GL open item balances.In case of GR/IR clearing account which is generally known as provision for expenses a/c in legacy system there is no link as available in SAP. Hence these initial upload items to be cleared manually.

Bank Reconciliation ProcessGenerally Bank reconciliation process cannot be completed within the Cut over period hence only Bank balance as per books of accounts is uploaded in the Main bank account.The Bank reconciliation to be carried out manually for initial upload items

AssetsAsset wise data and Asset GL account totals to be prepared as in SAP, asset balances are uploaded through T.code AS91 and GL balances updated through OASV.

Q15) On which of the following you have performed year end closing? 1. FI-GL or New GL 2. FIAR,AP 3. FI-Asset Accounting 4. Configuring FSV for year end 5. Basic CO Modules likeCCA, PCAA15) F.05 - Competency Assessment Management System- F.07 - Competency Assessment Management SystemF.16 - Competency Assessment Management SystemF.19 – GR/IR clearing - Quantity differences between goods receipt and invoice receipt for a purchase order result in a balance on the GR/IR clearing account.KALC - Competency Assessment Management SystemS_ALR_87003642 - Competency Assessment Management SystemOB08- Competency Assessment Management SystemABST2 - Competency Assessment Management SystemAJAB - Competency Assessment Management SystemAJRW - Competency Assessment Management SystemQ18) Are you familiar to the following E2E business process terms within SAP R/3? 1. P2P 2. OTC3. Plan to Produce 4. Capex purchase cycle

A18) P2P – Procure to Pay – MM cycle – PR > PO > MIGO > MIRO > Payment

13

O2C – Order to cash – SD cycle – SO > DP > Delivery > Invoice > Payment receipt

O2C entries:

When goods are issued

Raw Material consumption a/c Dr  To Inventory a/c

When Finished goods are produced (MB1C)

Finished Goods a/c Dr   To Cost of Goods sold a/c

When outbound delivery is made

Cost of goods sold a/c DR  To Finished goods a/c

When Billing is made on customer (VLO1N)

Customer a/c Dr   To Sales Revenue a/c   To Vat payble a/c

Q22) Do you understand configurationall steps for Tax related configuration for the following country versions?: 1. CIN (India Version) 2. US Taxes using Jurisdiction codes, with exposure to external tax calculation interfaces 3. European VATUse Tax within the United StatesThe use tax calculation for jurisdictions is usually based on three components:1) The jurisdiction in which the buyer takes possession2) The use of the service or material3) The tax status of the legal entity that purchased the service or material

Within SAP software, use tax is calculated using a special tax calculation procedure. Within this procedure, different rates are defined by jurisdiction code and tax code.The tax jurisdiction code defines the location of the sender and receiver of the goods purchased. This is important because the sender and receiver information is needed to properly calculate use tax. The tax jurisdiction codes are usually assigned to master data such as vendor or cost center.

The tax code defines whether goods are taxable or not. Within the tax calculation procedure, the tax code is assigned to a rate by jurisdiction using the condition technique.

The SAP software delivers three tax procedures for the United States: TAXUS: Sales/use tax in United States. TAXUSJ: Sales/use tax with jurisdiction. TAXUSX: Sales/use tax with jurisdiction in an external system.

The TAXUSJ procedure, which is the most commonly, used procedure if no external tax calculation software is used. This procedure relies on all information stored within the SAP software to calculate the correct tax rate. This is practical for organizations that operate regionally and have simple tax calculation rules. For this procedure, the rate and conditions have to be maintained on a regular basis within the SAP software. For large organizations that operate in multiple states with multiple product lines and procurement channels,

14

The TAXUSX procedure is a better fit. This procedure is also jurisdiction based but communicates with an external tax calculation system. The rates and calculations are handled externally.

The third TAXUS procedure doesn’t allow the calculation by jurisdiction, which isn’t common. This procedure is only feasible for organizations that operate within one jurisdiction.

VAT Taxes in EuropeValue added tax (VAT) is an indirect tax levied on the added value that results from each exchange of goods and materials. It differs from a sales tax because a sales tax is levied on the total value of the exchange.For this reason, VAT is neutral with respect to the number of passages between the producer and the final consumer. Personal end-consumers of products and services can’t recover VAT on purchases, but businesses are able to recover VAT on the materials and services that they buy to make further supplies or services directly or indirectly sold to end users. In this way, the total tax levied at each stage in the economic supply chain is a constant fraction of the value added by a business to its products, and businesses bear most of the cost of collecting the tax. VAT is the common form of taxation in most European countries.Tax ProceduresSAP software delivers VAT procedures for every European country. For example, the following tax procedures are predefine:EE TAXD: GermanyEE TAXF: FranceEE TAXES: SpainEE TAXIT: ItalyWe’ll only cover the tax procedure for France TAXF here because all other European tax procedures work in a similar way. Usually, the tax rates are the same within a country and don’t vary by region. However, some countries such as Italy and Spain require regional codes for reporting purposes.

The tax calculation procedure is simpler than the U.S. tax calculation procedure TAXUSJ because no tax rates need to be defined by region.

VAT Configuration1. In the first step, the tax procedure is assigned to the country as shown earlier in the TAXUSJ

configuration Transaction OBBG or in the IMG via navigation path IMG • Financial Accounting • Financial Accounting Global Set- tings • Tax on Sales/Purchases • Basic Settings • Assign Country to Calculation Procedure.

2. Tax Rates, in the next step, the tax rates by tax code need to be defined. SAP software delivers a set of predefine tax codes for the tax calculation procedure TAXF.The tax rates can be maintained in the IMG under navigation path IMG • Financial Accounting • Financial Accounting Global Settings • Tax on Sales/Purchases • Calculation • Define Tax Codes for Sales and Purchases.

Within this configuration step, the GL accounts also need to be defined by transaction key. This transaction key or account key is assigned in the definition of the tax calculation To assign a GL account, click on the Tax accounts button.The maintenance of the tax rate and GL account concludes the configuration for VAT reporting.

CIN

Menu: – Logistic General – Tax On Goods movement – India (T Code SPRO)Basic Settings

15

Maintain Excise RegistrationsMaintain Company Code SettingsMaintain Plant SettingsMaintain Excise GroupsMaintain Series GroupsMaintain Excise Duty IndicatorsMaintain Postal AddressesDetermination Of Excise DutySelect Tax Calculation ProcedureCondition-Based Excise DeterminationDefine Tax Code For Purchasing DocumentsAssign Tax Code To Company CodesClassify Condition TypesAccount DeterminationDefine G/L Accounts For TaxesSpecify Excise Accounts Per Excise TransactionSpecify G/L Accounts Per Excise TransactionBusiness TransactionsIncoming Excise InvoicesSelect FieldsDefine Processing Modes Per TransactionDefine Reference Documents Per TransactionMaintain Rejection CodesSpecify Which Movement Types Involve Excise InvoicesOutgoing Excise InvoicesPricing Procedure For Factory SalesAssign Billing Types To Delivery TypesMaintain Default Excise Groups And Series GroupsSubcontractingSubcontracting AttributesMaintain Movement Type GroupsExports Under Excise RegulationsExportsMake Settings For Are- ProcedureDeemed ExportsMake Settings For Are- ProcedureMaintain License TypesPrintouts Of Are DocumentsMaintain Output TypeSpecify PrintersTransaction ConfigurationDefine Processing Modes Per TransactionDefine Reference Documents Per TransactionMaintain Rejection CodesUtilizationUtilization DeterminationMaintain Minimum Balances For Excise AccountsExcise Registers

Q13) Your depth of experience in Asset Accounting Configuration cycle would comprise of:

A13) Answered covered inQ3, Q4

16

Q13) Your depth of experience in Asset Accounting Configuration cycle would comprise of:A13) Answered covered inQ3, Q4

Q24) Explain your FICO Account determination/ validation/substitution expertise within SAP R/3?Account Determination: A24)When you post an invoice, the system updates various accounts in FA. It determines automatically which amounts have to be posted to which accounts.

FA – In FTXP customization we assign GL account to Tax. So when we use the tax code while posting the entries, it will atomically pick the GL account assigned to it

SD – VKOA – The account determination is based on following 5 factors > COA/Sales org/Account assignment group of the customer/ Account assignment group of the material /and account key

MM – OBYC – In MM the AD is as follows – Depending upon plant entered during the Goods issue, the Company code is determined by the system which in turn determines the COA. The plant entered in Goods issue, determines “valuation class” and then “valuation groping code”The valuation class is determined from material masterFor movement type, the transaction key (BSX,DIF,GBB) determines the GL account

Validation (OB28) & Substitution (OBBH): SAP uses V&S to check the integrity of the data entered before posting a document. When you have both V&S defined, the system first completes the substitution then goes on to validate the entries.

A validation uses a Boolean logic (it is based on a simple logic to determine true or false of a given statement) for checking any type of combination of specified criteria for ensuring the validity before allowing you to post a document.Ex: If cost element is 120000, then the cost center is 1200. You try to post a doc containing cost element 120000 and cost center 1400. The system will through an error.

Prerequisite > check >Message

Substitution ensures that the system replaces a value assigned to one or more fields based on pre determined criteria, using again a Boolean logic. Ex:If cost element is 120000, then the cost center is 1200. You try to post a doc containing cost element 120000 and cost center 1400.The system will replace 1400 with correct 1200.Prerequisite > Substitution

Q26) How many new functionalities in New GL in ECC versions you have worked? For instance: a. document splitting; b. segment reporting; c. parallel ledgers; d. FI-CO reconciliations

17

A26 ) Document spitting > Integration > Periodic processing > Parallel accounting > Reporting > Migration

1. Document splitting: Suppose if the expense is booked profit center wise, normally the entry will be Dr Expense (PRf1/Pro2 to credit vendor and Tax). By splitting we the expense will be divided in the ratio of PC. Passive/Active/Clearing linesPassive: For payment documents the document properties will be inherited from the original doc .i.e invoiceActive: The system will split document based on Document splitting rules (Say Segment wise or Profit center wise)Clearing lines: The system creates clearing lines atomically to achieve a split. You can control this process with “Zero balance indicator”

2. Parallel accounting: Parallel accounting means the company’s financial statements need to be created in accordance with different accounting principles.(US GAAP Generally accepted accounting principles),IAS/IFRS-International Financial Reporting Standards)

18