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Basic Settings & GL

Creation of CompanySPRO > Enterprise Structure > Definition > Financial Accounting > Maintain Company

Company: Smallest organizational unit for which individual financial statements can be drawn up according to the relevant commercial law. A company can consist of one or more company codes. All company codes within a company must use the same transaction chart of accounts and the same fiscal year breakdown. The company code currencies, on the other hand, can be different. A company code has one local currency in which its transaction figures are recorded.

Creation of Company CodeSPRO > Enterprise Structure > Definition > Financial Accounting > Define, Copy, Delete, Check Company Code

Company Code: The smallest organizational unit for which a complete self-contained set of accounts can be drawn up for the purposes of external reporting. The process of external reporting involves recording all relevant transactions and generating all supporting documents required for financial statements (balance sheets, profit and loss statements and so on.)

Assignment of Company Code to CompanySPRO > Enterprise Structure > Assignment > Financial Accounting > Assign Company Code to Company

Creation of Business AreaSPRO > Enterprise Structure > Definition > Financial Accounting > Define Business Area

Business Area: Organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in Financial Accounting can be allocated. Business areas are used in external segment reporting (over and above company codes) based on the significant areas of operation (for example, product lines) of a business enterprise. A segment is an isolated area of activity.

All essential balance sheet items, such as fixed assets, receivables, payables, and inventories, and all items of the profit and loss statement can be assigned directly to a business area. The balance sheet items for banks, capital, and taxes, however, cannot be directly assigned to business areas. They need to be assigned manually. This means that business area financial statements cannot be drawn up for commercial and tax law.

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Business area balance sheets and income statements are used only for internal reporting purposes.

The system determines the appropriate business area from information such as the material, plant, or cost center we enter in a business transaction like a goods movement. Assignments we make (between cost centers and business areas for example) or the combination of information we specify (a plant and a particular division for example) are the basis on which the system determines the appropriate business area.

Maintain Fiscal Year Variant (OB29)SPRO > Financial Accounting > FAGS > Fiscal Year > Maintain Fiscal Year Variant (Maintain Shortened Fiscal Year)

Variant Principle:The variant principle is a three step method used in R/3 to assign special properties to one or more R/3 objects. The three steps are: 1. Define the variant, 2. Populate the variant with values, 3. Assign the variant to R/3 objects. The principle is used for Field status, Posting periods, fiscal years etc.

Fiscal year variant:To separate business transactions into different periods, a fiscal year with posting periods has to be defined. The fiscal year is defined as a variant which is assigned to the company code. The fiscal year variant specifies the number of posting periods and special periods in a fiscal year and how the system is to determine the assigned posting periods.

Types of Fiscal Years:1. Year Dependent:Periods can vary from year to year. A fiscal year variant has to be defined as ‘year dependent’ if the start and the end date of the posting periods of some fiscal years are different from the dates of other fiscal years, or if some fiscal years shall use a different number of posting periods.Shortened Fiscal Year: A shortened fiscal year arises through a shift in the end of the fiscal year. The shortened fiscal year covers the period between the end of the last fiscal year in the old cycle and the beginning of the next fiscal year in the new cycle. Instances: Company changing the beginning of the fiscal year or if the company was sold.

2. Year independent (Fiscal Year same as Calendar Year & Fiscal Year not same as Calendar Year):If each fiscal year of a fiscal year variant uses the same number of periods, and the posting periods always start and end at the same day of the year, the variant is called ‘year independent’.

If the fiscal year is defined as the calendar year, the posting periods are equal to the months of the year. Therefore a calendar year variant must have 12 posting periods.

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If the fiscal year differs from the calendar year, we must specify the number of posting periods we want to use & how the fiscal year is to be determined from the posting date. To do this, we specify the displacement for each period compared to the year of the posting date by using the annual displacement indicators -1, +1. Using these indicators, the system determines the fiscal year.

Assign Company Code to Fiscal Year Variant (OB37)SPRO > Financial Accounting > FAGS > Fiscal Year > Assign Company Code to a Fiscal Year Variant

Creation of Chart of Accounts (OB13)SPRO > Financial Accounting > General Ledger Accounting > GL Accounts > Master Records > Preparations > Edit Chart of Accounts List

The chart of accounts is a variant which contains the structure and the basic information about general ledger accounts.

Information to be given in Chart of Accounts: Maintenance Language, Length of GL Account Number, Manual or automatic creation of cost elements, Group chart of accounts etc.

Operative Chart of Accounts:The operating chart of accounts contains the G/L accounts that you use for posting in your company code during daily activities. Financial Accounting and Controlling both use this chart of accounts.

Country Specific Chart of Accounts:These are structured in accordance with legal requirements of the country in question

Group Chart of Accounts:This is structured in accordance with requirements pertaining to Consolidation.

Assign Company Code to Chart of Accounts (OB62)SPRO > Financial Accounting > General Ledger Accounting > GL Accounts > Master Records > Preparations > Assign Company Code to Chart of Accounts

Define Account Groups (OBD4)SPRO > Financial Accounting > General Ledger Accounting > GL Accounts > Master Records > Preparations > Define Account Groups

The account group determines: The data that is relevant for the master record A number range from which numbers are selected for the master records.

An account group must be assigned to each master record.

Define Retained Earnings Account (OB53)

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SPRO > Financial Accounting > General Ledger Accounting > GL Accounts > Master Records > Preparations > Define Retained Earnings Account

The difference in Profit and Loss account is transferred to Reserves & Surplus

Define Posting Period Variant (OBBO)SPRO > Financial Accounting > FAGS > Document > Posting Periods > Define Variants for Open Posting Periods

A variant which contains posting periods. A Posting Period is a period within a fiscal year for which transaction figures are updated. Every transaction that is posted is assigned to a particular posting period. The transaction figures are then updated for this period. During the time of the closing procedure, 2 period ranges have to be open at the same time.

Assign Variants to Company Code (OBBP)SPRO > Financial Accounting > FAGS > Document > Posting Periods > Assign Variants to Company Code

Open & Close Posting Periods (OB52)SPRO > Financial Accounting > FAGS > Document > Posting Periods > Open & Close Posting PeriodsTo define the periods those are open for postings.

Define Document Types & Number Ranges (OBA7)SPRO > Financial Accounting > FAGS > Document > Document Header > Define Document TypesDocument Type: 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 posted. The Document Type controls the header which is valid for an entire document.

Number Range: Defines the allowable range in which a document number must be positioned and cannot overlap. (Internal Numbering & External Numbering)

Define Tolerance Groups for GL Accounts (OBAO)SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Open Item Clearing > Clearing Differences > Define Tolerance Groups for GL AccountsTolerances: Rules that define acceptable differences during Posting of transactions.Allowed Payment differences will be specified in Tolerance Group for GL Accounts.

Define Tolerance Groups for Employees (OBA4)SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Open Item Clearing > Clearing Differences > Define Tolerance Groups for EmployeesTolerance Group for Employees is used to control the Upper Limits for Transactions & Allowed Payment Differences.

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Define Field Status VariantSPRO > Financial Accounting > FAGS > Document > Line Item > Controls > Maintain Field Status VariantsThe Field Status Variant contains various Field Status Groups. In a Field Status Group each field is defined whether it is ‘Required’, ‘Optional’ or’ Suppressed’.

Assign Company Code to Field Status Variant (OBC5)SPRO > Financial Accounting > FAGS > Document > Line Item > Controls > Assign Company Code to Field Status Variant

Enter Global Parameters (OBY6)SPRO > Financial Accounting > FAGS > Company Code > Enter Global Parameters

Creation of GL Master Centrally (FS00)(Centrally = Chart of Accounts segment + Company Code segment)Accounting > Financial Accounting > General Ledger > Master Records > Individual Processing > Centrally

Master Data:The Data which remains unchanged for long periods of time and which is often referred to by other data. This data is called Master Data. Chart of Accounts segment: The COA contains basic information about the accounts. Information per account is bundled into what is called the COA segment.Contents: Account Group, P&L account type or Bal Sheet account type, Description of the account Short text as well as long text and Consolidation in COA like Trading partner and Group Account Number.

Company Code Segment:Information in this segment is specific for this company code. This information controls entry of accounting documents and management of accounting data.Contents: Control Data, Bank/Interest, Information Tabs, under these we specify currency, tax, reconciliation account, sort key, field status group, house bank, interest calculation information etc.,

Reconciliation accounts (Sub ledger open item function): Are General Ledger accounts assigned to the business partner master records to record all transactions in the sub ledger. Any postings to the sub ledger accounts automatically update the balances of the assigned reconciliation accounts.

Methods for creating GL Accounts:Manual: one step and two stepCopying: Copy an individual GL account with reference to another GL account, Copy the entire company code segment, copy the entire chart of accounts segment.Data transfer: Upload a new chart of accounts from an external system e.g. flat file.

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Posting of GL Transaction (F-02)Accounting > Financial Accounting > General Ledger > Document Entry > Others > General Posting

Display Document (FB03)Accounting > Financial Accounting > General Ledger > Document > Display

The R/3 system uses the document principle: Postings are always stored in document form. The document remains as a complete unit in the system until it is archived.

A document is identified by the combination of Document number Company code Fiscal year

The R/3 FI document consists of A document header (information which applies to the entire document & the

important control key is ‘document type’ for the header) 2 to 999 line items (information which is specific to that line item & the important

control key is ‘posting key’ for the line item).

Display GL Account (FS10N)Accounting > Financial Accounting > General Ledger > Account > Display Balances

To make a default Line Layout (FB00)Accounting > Financial Accounting > General Ledger > Environment > User Parameters > Editing Options

When a document is displayed, the first screen we see is an overview screen containing the most important information from the document header and the line items. We have a display line for each line item.

We can decide what data is displayed in this line by specifying the line layout. We can define several variants for line layout. When displaying a document, we can switch between the variants. We can define our own variant by selecting from Current Display Variant.

Display Changes to GL Master Records (FS04)Accounting > Financial Accounting > General Ledger > Master Records > Display Changes > Centrally

Blocking & Unblocking of GL Account (FS00)FS00 > GL Account > Block/UnblockBlocking:

Blocked for CreationBlocked for Posting

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Blocked for PlanningBlocked for Posting (in Company Code)

Document Parking(Release procedure)

Parking a GL Document (F-65)Accounting > Financial Accounting > General Ledger > Document Entry > Park Document

Display Parked Documents pending for approval and release (FBV3)Accounting > Financial Accounting > General Ledger > Document > Parked Documents > Display

Post/Delete Parked Documents pending for approval and release (FBV0)Accounting > Financial Accounting > General Ledger > Document > Parked Documents > Post/Delete(To change the amount – Double Click the amountTo change the date – Select Document Header ButtonTo change the GL Account – Delete Line Item and re-enter the new GL account Line Item)

Hold Documents

Holding a GL Document (F-02)(F-02) > Document > Hold(System will prompt for a temporary document number to be given by the user)You can enter incomplete documents. Some information, such as the bank charges or cost center, may be missing. You can enter incomplete documents by using the Hold function. If you do this, the system does not update any account balances.

Display Hold Documents and Delete/Complete (F-02)(F-02) > Document > Get Held Document

Sample DocumentsSample Document is a special type of reference document. Data from this document is used to create default entries on the accounting document entry screen. A sample document does not update transaction figures but merely serves as a data source for an accounting document.

Will be used for month end provisions Account Heads are same, Amounts vary

Steps:

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Creation of Number Range Group X2 and Numbers for Sample Document Template

Creation of Sample Document Template Posting of Entries by using Sample Document as reference

Creation of Number Range Group and Numbers for Sample Document Template (FBN1)SPRO > Financial Accounting > FAGS > Document > Document Number Ranges > Overview(Group ‘X2’ is mandatory for Sample Documents)

Creation of Sample Document Template (F-01)Accounting > Financial Accounting > General Ledger > Document Entry > Reference Documents > Sample Document

Display Sample Documents (FBM3)Accounting > Financial Accounting > General Ledger > Document > Reference Documents > Sample Documents > Display

Posting Entries by using Sample Document as reference (F-02)(F-02) > Select Post with Reference Button > Give the Sample Document Number > Select Display Line Items

Recurring DocumentsA periodical recurring posting made by the recurring entry program on the basis of recurring entry original document. The procedure is comparable with a standing order by which, banks are authorized to debit rent payments, payment contributions or loan repayments.

Will be used for Recurring Entries Amount and Date are fixed for every month

Steps: Creation of Number Range Group X1 and Numbers for Recurring Document

Template Creation of Recurring Document Template Posting of Documents by using Recurring Document Template by way of Batch

Input

Creation of Number Range Group and Numbers for Recurring Document Template (FBN1)SPRO > Financial Accounting > FAGS > Document > Document Number Ranges > Overview(Group ‘X1’ is mandatory for Recurring Documents)

Creation of Recurring Document Template (FBD1)

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Accounting > Financial Accounting > General Ledger > Document Entry > Reference Documents > Recurring Documents

Display Recurring Document Templates (F.15)Accounting > Financial Accounting > General Ledger > Periodic Processing > Recurring Entries > Lists

Posting of GL Document by using Recurring Document Template by way of Batch Input (F.14)Accounting > Financial Accounting > General Ledger > Periodic Processing > Recurring Entries > ExecuteTo Post a Session (SM35)System > Services > Batch Input > Sessions

Accrual/Deferral DocumentsTo ensure that expenses and incomes are posted to the correct period, we enter accrual/deferral documents.Accruals: An accrual is any expenditure before the closing key date which represents an expense for any period after this date.Deferral: Deferred income is any receipt before the closing key date which represent revenue for any period after this date.

Steps: Creation of Reversal Reason which will allow reversing on any day Posting of Accrual/Deferral Document Reversal of Accrual/Deferral Document

Creation of Reversal ReasonSPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Document Reversal > Define Reasons for Reversal(Select Negative Posting & Select Alternative Posting Date)

Posting of Accrual/Deferral Document (FBS1)Accounting > Financial Accounting > General Ledger > Periodic Processing > Closing > Valuate > Enter Accrual/Deferral Document(We mention the reversal reason in the document)

Reversal of Accrual/Deferral Document (F.81)Accounting > Financial Accounting > General Ledger > Periodic Processing > Closing > Valuate > Reverse Accrual/Deferral Document

Open Item ManagementGL accounts should be administered with open item management when we need to check whether there is an offsetting posting for a given business transaction. Open and cleared

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items can be displayed separately, and therefore it is easy to see which business transactions still need to be cleared.Examples: GR/IR Clearing A/c., Cash Discount Clearing A/c., Bank Clearing A/cs. etc.

Note: Reconciliation accounts are managed implicitly using Sub Ledger Open Item Function.

Clearings: Full Payment Clearing Partial Payment Clearing Residual Clearing

Account Display for Open Item Managed Account (FBL3N)Accounting > Financial Accounting > General Ledger > Account > Display/Change Line Items

Outgoing Payment with Clearing (F-07)Accounting > Financial Accounting > General Ledger > Document Entry > Outgoing Payment

ReversalsReversal of a posting by entering an identical amount to the opposite side of the account, thereby offsetting the original amount.

Individual Reversal Reversal of Reversal Mass Reversal Cleared Item Reversal Accrual/Deferral Reversal

Creation of Reversal Reason for Individual ReversalSPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Document Reversal > Define Reasons for Reversal(Reversal Reason is ‘03’ ‘Actual Reversal in Current Period’ & Select Alternative Posting Date)

Document Reversal – Individual Reversal (FB08)Accounting > Financial Accounting > General Ledger > Document > Reverse > Individual Reversal(Give Reversal Reason ‘03’, Reverse Document Type ‘AB’)

Reversal of Reversal (F-02)(F-02) > Post with Reference > Select ‘Generate Reverse Posting’ Check Box

Mass Reversal (F.80)

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Accounting > Financial Accounting > General Ledger > Document > Reverse > Mass Reversal

Cleared Item Reversal – Reset & Reverse (FBRA)Accounting > Financial Accounting > General Ledger > Document > Reset Cleared Items(Select ‘Resetting & Reverse’)

Foreign Currency SettingsCurrencies:In Financial Accounting, we have to specify for each of the company codes, in which currency ledgers should be managed. This currency is the national currency of the company code, that is, the local currency (or company code currency). From a company code view, all other currencies are then foreign currencies. The ledgers can be managed in two parallel currencies in addition to the local currency, for example, group currency or hard currency. Group currency is used in the consolidated financial statements. Hard Currency or Country-specific second currency used in countries with high rates of inflation.Global company Currency: Currency used for an internal trading partner.Global company currency is defined when defining the company that is assigned to the company code.

Check Exchange Rate Types (OB07)SPRO > General Settings > Currencies > Check Exchange Rate Types

Exchange Rate Type: - Key used to define exchange rates in the system. For each currency pair we can define different exchange rates. The different exchange rates are used for the purposes of Valuation, Conversion, Translation, Planning etc.

Standard Translation at Bank Buying rate – G TypeStandard Translation at Bank selling rate – B TypeAverage rate – M TypeHistorical exchange rate - 1003

Define Translation Ratios for Currency Transactions (OBBS)SPRO > General Settings > Currencies > Define Translation Ratios for Currency Transactions(Define Ratios for G Type, B Type and M Type)Translation Ratio: The (consistent) relationship between the monetary units of two foreign currencies.

Enter Exchange Rates (OB08)SPRO > General Settings > Currencies > Enter Exchange Rates(Enter Exchange Rates for G Type, B Type and M Type)

Set Default Exchange Rate Type for Document Type SA (OBA7)

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SPRO > Financial Accounting > FAGS > Document > Document Header > Overview(In Document Type specify the Default Exchange Rate Type)

Foreign Exchange RevaluationG Type – Bank Buying

Open Item Non Open Item

B Type – Bank Selling Open Item Non Open Item

We can create different valuation methods for valuing foreign currency. For each valuation method, we have to define:

Parameters for the valuation procedure Parameters for exchange rate determination

Define Valuation Methods (OB59)SPRO > Financial Accounting > GL Accounts > Business Transactions > Closing > Valuating > Foreign Currency Valuation > Define Valuation Methods(Define 4 methods namely B Type Open Item, B Type Non Open Item, G Type Open Item and G Type Non Open Item & Select ‘Exchange Rate Type from Invoice Reference’ for Open Item Type & Select ‘Determine Rate Type from Account Balance’ for Non Open Item Type)Valuation Method: A unique key determining foreign currency valuation method.

Prepare Automatic Postings for Foreign Currency Valuation (OBA1)SPRO > Financial Accounting > GL Accounts > Business Transactions > Closing > Valuating > Foreign Currency Valuation > Prepare Automatic Postings for Foreign Currency Valuation(Specify the GL Accounts of FC Loan, Forex Loss and Forex Gain in ‘Exchange Rate difference in Open Items’ KDF as well as in ‘Exchange Rate difference in FC Balances’ KDB and Specify ‘Exchange Rate Difference Key’ to be attached to the FC Loan Account in the next step)

Attach the ‘Exchange Rate Difference Key’ in FC Loan Account (FS00)

Forex Run on Closing Date (F.05)Accounting > Financial Accounting > GL Accounts > Periodic Processing > Closing > Valuate > Valuation of Open Items in Foreign Currency(Specify Valuation Method & Select ‘Balance Sheet Preparation Valuation’ for year end valuation postings., the entries will be posted automatically.)

Interest Calculations S Type – Balance Interest Calculation (for GL Accounts)

o Is applied to the entire balance of a GL or Customer Account, applying a particular interest rate for a specified period of time

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P Type – Item Interest Calculation (for Customers & Vendors)o Interest on arrears is applied to individual items in accounts receivable or

accounts payable. A certain interest rate is applied to the items that are still open or unpaid at a specified date.

Interest calculation configuration: Interest calculation Indicator

o Interest calculation types set basic parameters used in calculation. To calculate interest for an account (GL, Customer, Vendor), the master data for that account must include the interest calculation indicator that applies. Each interest ID must be assigned an interest calculation type, indicating whether it is used for balance interest calculation or item interest calculation.

General termso General terms specify further parameters about how each interest

calculation indicator works.o Here we specify interest calculation ID, interest calculation frequency,

settlement day, calendar type (G type for rupee loans & F type for FC loans).

Define reference interest rateso Define reference interest rate ID, ‘effect from date’ and ‘currency’

Time dependent termso Time-based terms set validity dates and relationships to interest rates.

Here we specify interest calculation ID, currency, valid from, sequence number(1&2), term(credit interest balance interest calculation for 1 & debit interest balance interest calculation for 2) and reference interest rate ID.

Interest rateso Interest rates establish reference interest rates that interest calculations can

be tied to. Here we specify Reference interest rate ID, valid from and interest rate.

Account determinationo Account determination establishes which accounts the results of an

interest calculation will be posted to.

Define Interest Calculation Types (OB46)SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Bank Account Interest Calculation > Interest Calculation Global Settings > Define Interest Calculation Types(Give Interest ID & specify Interest Calculation Type ‘S’ & Don’t select ‘Account Number as interest calculation indicator’)

Prepare Account Balance Interest Calculation (OBAA)SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Bank Account Interest Calculation > Interest Calculation Global Settings > Prepare Account Balance Interest Calculation

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(Here we give Interest calculation frequency (12months normally), settlement day (normally 1) and Select Calendar Type G for Rupee Loans & Type F for FC Loans and output control Balance plus interest)

Define Interest Reference Rates (OBAC)SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Bank Account Interest Calculation > Interest Calculation > Define Interest Reference Rates(Give Interest Reference Rate and also ‘Effective from date’)

Define Time Dependant Terms (OB81)SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Bank Account Interest Calculation > Interest Calculation > Define Time Dependant Terms(Select ‘Credit Interest Balance Interest Calculation’ for Sequence 1 & ‘Debit Interest Balance Interest Calculation’ for Sequence 2 and give date for ‘Valid from’)

Enter Interest Values (OB83)SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Bank Account Interest Calculation > Interest Calculation > Enter Interest Values(Here we specify the rate of interest)

Attach the Interest ID in the GL Account (FS00)

Assignment of Accounts for Automatic Interest Postings (OBV2)SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Bank Account Interest Calculation > Interest Posting > Prepare GL Account Balance Interest Calculation(Account Symbol Currency GL Account0002 INR Interest Account Number (Expense)2000 + +++++++++0001 INR Interest Account Number (Income)1000 + +++++++++)

Interest Calculation Run (F.52)Accounting > Financial Accounting > General Ledger > Periodic Processing > Interest Calculation > Balances

To give effect for Floating Rate of Interest (OB83)SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Bank Account Interest Calculation > Interest Calculation > Enter Interest Values

Accounts Payable

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Reconciliation accounts are managed implicitly using Sub Ledger Open Item function.Posting KeysVendor Debit: 25Vendor Credit: 31

Document TypesKR – Vendor InvoiceKZ – Vendor PaymentKA – Vendor Document (Transfers/Reversals)

AP (Vendor Accounts) is a Subsidiary Ledger of Sundry Creditors & Sundry Creditors is a Reconciliation Account under Current Liabilities.

Steps: Creation of Vendor Account Groups like FI Vendors (Services), MM Vendors

(Materials) and One-time Vendors with Reconciliation Account Field mandatory. Creation of Number Range Groups and Numbers for Vendors. Assignment of Number Range Group to Vendor Account Group Define Tolerance Groups for Vendors. Creation of Vendor Master. Document Types and Number Ranges for KR, KZ and KA.

Define Vendor Account Groups (OBD3)SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Vendor Accounts > Master Records > Preparations for creating Vendor Master Records > Define Account Groups with Screen Layout (Vendors)Create FI Vendor Group & MM Vendor GroupCompany Code Data > Account Management > Reconciliation Account Required Entry

The Vendor Account Group controls The number ranges of the accounts, the status of the fields in the master record and whether the account is a one time vendor

One-time Vendor:Vendors who have a business transaction only once are called one-time vendors. You create collective master record for one-time vendors. The complete details of the Vendor will be given at the time of Invoice Posting. (While creating the group a ‘One-time Vendor Group’ should be created.)

Create Number Ranges for Vendor Accounts (XKN1)SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Vendor Accounts > Master Records > Preparations for creating Vendor Master Records > Create Number Ranges for Vendor Accounts

Assign Number Ranges to Vendor Account Groups (OBAS)

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SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Vendor Accounts > Master Records > Preparations for creating Vendor Master Records > Assign Number Ranges for Vendor Accounts

Define Tolerance Groups for Vendors (OBA3)SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Payments > Manual Outgoing Payments > Define Tolerances (Vendors)Tolerances: Rules that define acceptable differences during postingTolerance Groups for Vendors:The tolerances are used for differences in payment and residual items which can occur during payment settlement. We can specify the tolerances under one or more tolerance groups. Allocate a Tolerance Group to each Vendor via the master record. For each Tolerance Group we specify:

1. Tolerances upto which differences in payment are posted automatically to expense or revenue account when clearing open items.

2. The handling of the terms of payment for residual items, if they are to be posted during clearing.

Employee Tolerances also can be specified. Employee Tolerance is used to control the Upper limits for posting procedures (Posting Authorizations) and Permitted Payment Differences. While clearing, the lower limit of the 2 will be taken.

Creation of Vendor Master (XK01)Accounting > Financial Accounting > Accounts Payable > Master Records > Maintain Centrally > Create(The account group is entered on the initial create screen. In FI, once the vendor account is created, its account group cannot be changed.Give Reconciliation Account Number, Sort Key 012 Vendor Name, Payment Terms, Tolerance Group & Select ‘Check Double Invoicing’)

Line item display and open item management are always preset to “on” for every vendor account.

A complete Vendor Account consists of 3 segments – 1. General Data at the client level 2. Company code segment and 3. Purchasing Organization segment

General data consists Address, Control data, Payment transactions etc. The account number is assigned to the Vendor at the client level. This ensures that the account number for a Vendor is the same for all company codes and sales areas.

Company data consists of Accounting information, Payment transactions, Correspondence, Insurance, Withholding tax etc.

Note: If MM creates their segment of the master record and then FI creates their segments of the master record, there is the risk of creating incomplete or duplicate master

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records. To find and correct these incomplete accounts, we can run report RFKKAG00 and make the necessary corrections.Creation of duplicate accounts can be prevented by:

Using the matchcode before creating a new account Switching on automatic duplication check

Important Fields Search Item: Should be filled with a short version of the vendor name according

to company rules/desires. An additional search field also can be filled up. Group Key: Vendors who belong to one corporate group can be bundled together

by a user-defined group key. This group key can be used for running reports, transaction processing or for matchcodes.

Accounting clerk: The accounting clerk’s name has to be stored under an ID and this ID can be entered in the vendor master record of the account he or she is responsible for. The accounting clerk’s name is then printed on correspondence and this ID is used to sort dunning and payment proposal lists.

Document Types & Number Ranges (OBA7)SPRO > Financial Accounting > FAGS > Document > Document Header > Overview(Define Document Number Ranges for Doc Types KR, KZ & KA)

Purchase Invoice Posting (F-43)Accounting > Financial Accounting > Accounts Payable > Document Entry > Other > Invoice General

Vendor Account Display (FBL1N) with Open Item, Cleared Item and Special GL Item detailsAccounting > Financial Accounting > Accounts Payable > Account > Display/Change Line Items

Vendor Account Display (FK10N)

Outgoing PaymentsDefine House Bank and Assign GL Account Number for the Account ID (FI12)SPRO > Financial Accounting > Bank Accounting > Bank Accounts > Define House BanksHouse Banks: Bank ID & Bank Account: Account ID

Creation of Check Lots (FCHI)Accounting > Financial Accounting > Accounts Payable > Periodic Processing > Payments > (sub menu) > Environment > Check Information > Number Ranges(Select ‘Non-Sequential’ for manual payments & Don’t select for Automatic Payment Program)

Outgoing Payment with clearing (F-53)

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Accounting > Financial Accounting > Accounts Payable > Document Entry > Outgoing Payment > Post

Manual Check Updating (FCH5)Accounting > Financial Accounting > Accounts Payable > Environment > Check Information > Create > Manual Checks(Enter Payment Document Number, House Bank & Bank ID and Check Number)

Display Check Register (FCHN)Accounting > Financial Accounting > Accounts Payable > Environment > Check Information > Display > Check Register

Check Encashment Date (FCH6)Accounting > Financial Accounting > Accounts Payable > Environment > Check Information > Change > Additional Info/Cash

Define Void Reason Codes (FCHV)SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Payments > Automatic Outgoing Payments > Payment Media > Check Management > Define Void Reason Codes

Unused Checks Cancellation (FCH3)Accounting > Financial Accounting > Accounts Payable > Environment > Check Information > Void > Unused Checks(Give Void Reason Code and Check Numbers to be voided)

Issued Checks Cancellation (FCH8)Accounting > Financial Accounting > Accounts Payable > Environment > Check Information > Void > Cancel Payment(Give Check Number, Void Reason Code, Document Reversal Reason and Select ‘Cancel Payment’ Button)Result: Resets the cleared item, Cancels the Check and Reverses the Payment

Down Payments to Vendors Create Special GL Account ‘Advance to Vendors (Reconciliation Account)’

under Current Assets Create Link between ‘S/Creditors’ and ‘Advance to Vendors’ (Special GL

Indicator: A) Down Payment Posting Purchase Invoice Posting Transfer of Down Payment from Special GL to Normal item by clearing Special

GL Account Clearing of Normal Item

Link between S/Creditors and Advance to Vendors (OBYR)

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SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Down Payment made > Define Alternative Reconciliation Account for Down Payments(Double click on ‘Down Payment on Current Assets’, Give Reconciliation Account and Special GL Account Number)

Setup Company Code for Payment Transaction (To avoid Short Dump Error while posting Down Payments)SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Payments > Automatic Outgoing Payments > Payment method/Bank selection for Payment Program > Setup all Company Codes for Payment Transactions

Down Payment Posting (F-48)Accounting > Financial Accounting > Accounts Payable > Document Entry > Down Payment > Down Payment(Give Special GL Indicator “A”)

Purchase Invoice Posting (F-43)Accounting > Financial Accounting > Accounts Payable > Document Entry > Other > Invoice General

Transfer of Down Payment from Special GL Account to Normal item by clearing Special GL Account (F-54)Accounting > Financial Accounting > Accounts Payable > Document Entry > Down Payment > Clearing

Clearing of Normal Item (F-44)Accounting > Financial Accounting > Accounts Payable > Accounts > Clear

Extended Withholding Tax (TDS)In Accounts Payable, the vendor is the person subject to tax, and the company code is obligated to deduct withholding tax and pay this over to the tax authorities on their (the vendor’s) behalf.

At the time of Invoice PostingService Charges A/c. Dr. 100000 To Contractors A/c. 98000 To TDS A/c. 2000

At the time of Advance Payment PostingContractors A/c. Dr. 100000 To Bank A/c. 98000 To TDS A/c. 2000

Check Withholding Tax Countries

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SPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Basic Settings > Check Withholding Tax Countries

Define Withholding Tax Type for Invoice PostingSPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Calculation > Withholding Tax Type > Define Withholding Tax Type for Invoice Posting (Give a name for Type & Description like 2% TDS on Contractors Invoice PostingBase Amount Select ‘Gross’Rounding Rules Select ‘Withholding Tax Commercial Rounding’Select ‘Post Withholding Tax amount’Accumulation Type Select ‘No Accumulation’Control Data Select ‘Withholding Tax Base Manual’ (This should not be selected while creating the Type for Payment Posting)Select ‘No Certificate Numbering’)

Define Withholding Tax Type for Payment PostingSPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Calculation > Withholding Tax Type > Define Withholding Tax Type for Payment Posting (Give a name for Type & Description like 2% TDS on Contractors Invoice PostingBase Amount Select ‘Gross’Rounding Rules Select ‘Withholding Tax Commercial Rounding’Cash Discount Select ‘Cash Discount Pre-withholding tax’

Select ‘Post Withholding Tax amount’Accumulation Type Select ‘No Accumulation’Do Not Select ‘Withholding Tax Base Manual’ (This should be selected while creating the Type for Invoice Posting)Select ‘No Certificate Numbering’)

Define Withholding Tax CodesSPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Calculation > Withholding Tax Codes > Define Withholding Tax Codes(Withholding Tax Code: Give a CodeBase Amount Percentage Subject to Tax: 100%Calculation Withholding Tax Rate: Give the applicable RatePostings Posting Indicator: 1 (Standard Posting Bank/Vendor/Customer Line Item reduced))

Define Formulas for calculating Withholding TaxSPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Calculation > Withholding Tax Codes > Define formulas for calculating Withholding Tax(Give Withholding Tax Type & CodeValid from: Give the date (Fiscal Year start date)Select the Line created and double click ‘Formulas for calculating Withholding Tax’

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‘To’ Base amount: Rs. 999999999Withholding Tax: Give the applicable Rate)

Assign Withholding Tax Types to Company CodesSPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Company Code > Assign Withholding Tax Types to Company Codes(Assign all the Types to Company Code)

Activate Extended Withholding TaxSPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Company Code > Activate Extended Withholding Tax

Define Accounts for Withholding Tax to be paid over (OBWW)SPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Postings > Accounts for Withholding Tax > Define Accounts for Withholding Tax to be paid over(Assign TDS on Contractors, TDS on Rent, TDS on Interest etc. open item managed accounts created under Current Liabilities to the respective Tax Type and Code)

Assigning Withholding Tax Codes in Vendor Master (XK02)Accounting > Financial Accounting > Accounts Payable > Master Records > Maintain Centrally > Change

Vendor Statement of AccountAssign Programs for Correspondence (OB78)SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Vendor Accounts > Line Items > Correspondence > Carryout and Check Correspondence Settings > Assign Programs for Correspondence(Select ‘SAP06’ Account Statement, Copy As and Attach the Statement Type to Company Code & Save)

Request for Correspondence (FB12)Accounting > Financial Accounting > Accounts Payable > Account > Correspondence > Request(Select ‘SAP06’, Give Vendor A/c. No. & specify statement period., Select ‘Continue’)

Maintain Statement (F.64)Accounting > Financial Accounting > Accounts Payable > Account > Correspondence > Maintain Statement(Correspondence: SAP06, Company Code: XYZ, Account Type: K, Execute and Double click anywhere on the report & the statement is displayed)

Terms of Payment & Cash DiscountsMaintain Terms of Payment (OBB8)

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SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Invoices/Credit Memos > Maintain Terms of PaymentTerms of payment are conditions established between business partners to settle the payment of invoices. The conditions define the invoice payment due date and the cash discount offered for early settlement of the invoice.

Define Accounts for Cash Discounts taken (OBXU)SPRO > Financial Accounting > Accounts Payable and Accounts Receivable > Business Transactions > Outgoing Payments > Outgoing Payment Global Settings > Define Accounts for Cash Discounts taken

Define Accounts for Cash Discounts granted (OBXT)SPRO > Financial Accounting > Accounts Payable and Accounts Receivable > Business Transactions > Incoming Payments > Incoming Payment Global Settings > Define Accounts for Cash Discounts granted

Payment DifferencesDefine Reason Codes for Payment Differences (SPRO > Financial Accounting > Accounts Payable and Accounts Receivable > Business Transactions > Incoming Payments > Incoming Payment Global Settings > Define Reason Codes

Automatic Payment Program (FBZP)Every company needs some way to pay their vendors. The automatic payment program is a tool that will help users manage payables. Accounts payable invoices have to be paid on time to receive possible discounts.

The settings are divided into the following categories:All company codes

Inter-company payment relationships The company code(s) that process payments Cash discounts Tolerance days for payments The customer and vendor transactions to be processed

Paying company codes Minimum amounts for incoming and outgoing payments Forms for payment advice and EDI (Electronic Data Interchange) Bill of Exchange parameters

Payment methods / country Methods of payments such as Cheque, Bank Transfer etc. Define the basic requirements and specifications for each payment method Create a Cheque, bank transfer, bill of exchange, etc. Master record requirements, i.e. address required Document types for postings Print programs

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Permitted currenciesPayment methods / company codeDefine for each payment method and company code

Minimum and maximum payment amounts Whether payments abroad and foreign currencies are allowed Grouping options Bank optimization Forms for payment media

Bank DeterminationThese components need to be taken into consideration when selecting the paying house bank …

Ranking order (per pmt method, define, 1. which house bank should be considered for payment first, second, third, etc., 2. Currency, 3. Bill of exchange)

Accounts & Amounts (per house bank and payment method combination, define, 1. The offset account to the sub-ledger posting, 2. Clearing accounts for bills of exchange 3. The available amount of funds in each bank)

Charges (Assess additional bank charges for incoming and outgoing payments, Used with bills of exchange, Additional automatic posting configuration)

Value date (per house bank and payment method combination, value date is … 1. Used with cash management and forecast 2. The number of “days until value date” plus the posting date)

House banks

Payment methods in Country (OBVCU)Country: INPayment Method: D (Any)Description: Check PaymentSelect Radio Button ‘Outgoing Payments’Select Radio Button ‘Check’Document Type for Payment: KZClearing Document Type: KZPayment Medium Program: RFFOUS_CName of the Print Dataset: LISTSKey in Code Line: 01

Payment methods in Company Code (OBVU)Minimum Amount: 1Maximum Amount: 999999999Check on ‘Single Payment for marked item’Check on ‘Payment per due day’Bank Selection: Select Radio Button ‘No Optimization’Click ‘Form Data’Form for the payment transfer medium: F110_PRENUM_CHCKClick ‘Payment Advice Control’Select Radio Button ‘None’ 1 Rows Line Items: E1Select Radio Button ‘Always Payment Advice’

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All Company Codes (OBVU)Paying Company Code: XYZCheck on ‘Separate Payment per Business Area’Check on ‘Maximum Cash Discount’

Paying Company Code (OBVU)Minimum Amount for Incoming Payment: 1Minimum Amount for Outgoing Payment: 1Click ‘Forms’Form for Payment Advice: F110_D_AVISClick ‘Sender Details’Text ID: STUnder ‘Text Elements’Letter Header: F_001_HeaderFooter Text: F_001_FooterSender: F_0001_Sender

House Banks (FI12)Define House Banks if not defined already

Bank Determination (OBVCU)Select ‘XYZ’ CompanyDouble click ‘Ranking Order’Payment Method Currency Rank Order House BankD INR 1 UTID INR 2 SBIDouble click ‘Bank Accounts’House Bk Pmt Method Currency A/c ID Bk Sub A/c.UTI D INR UTI1 GL A/c. No.SBI D INR SBI1 GL A/c. No.Double click ‘Available Amounts’House Bank A/c. ID Currency Available for Outgoing PmtUTI UTI1 INR 999999999SBI SBI1 INR 999999999Double click ‘Value Date’Payment Method House Bank A/c. ID Amount CurrencyD UTI UTI1 0 INRD SBI SBI1 0 INR

Creation of Check Lots (FCHI)Accounting > Financial Accounting > Accounts Payable > Periodic Processing > PaymentsEnvironment > Check Information > Number RangesNote: Don’t Check on ‘Non-Sequential’ (Should be sequential for the payment program)

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Payment Run (F110)Accounting > Financial Accounting > Accounts Payable > Periodic Processing > Payments (4 steps to the payment process:Parameters: In this step, the following questions are asked and answered

Who is going to be paid? What payment methods will be used? When will they be paid? Which company codes will be considered? How are they going to be paid?

Proposal: Once the parameters have been specified, the proposal run is scheduled and it produces a list of business partners and open invoices that are due for payment. Invoices can be blocked or unblocked for payment.Program: Once the payment list has been verified, the payment run is scheduled. A payment document is created and the general ledger and sub-ledger accounts are updated.Print: The accounting functions are completed and a separate print program is scheduled to generate the payment media.)

Run Date: Current DateIdentification: ABC (any)Click ‘Parameters’ TabCompany Code: XYZPayment Method: DNext Payment Date: Current Date+1Vendor Account: Give Range

Click ‘Additional Log’ TabVendor Account: Give RangeCheck on ‘Due Date Check’Check on ‘Payment method selection in all cases’Save & Back

Click ‘Schedule Proposal’Select ‘Start Immediately’Target: BBY‘Enter’ till Payment Proposal has been created

Click ‘Edit Proposal’Select Line ItemsClick ‘Reallocate’Payment Method: DHouse Bank: UTIA/c. ID: UTI1Save & Back

Click ‘Printout/Data Medium’

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Program: RFFOUS_CVariant: DEnvironment > Maintain VariantProgram Run Date: Current Date+1 (Next Payment Date mentioned in the Program)Identification: ABCPaying Company Code: XYZPayment Method: DBusiness Area: XYZHHouse Bank: UTIA/c. ID: UTI1Currency Key: INRPrint Control:-Select ‘Print Checks’ Select ‘Print Immediately’Select ‘Print Payment Summary’ Select ‘Print Immediately’No. of Sample Printouts: 0No. of items in Payment Summary: 9999Save & Back Arrow twice

Click ‘Payment Run’ TabSelect ‘Start Immediately’‘Enter’ till Payment Run is carried out

Click ‘Schedule Print’ TabSelect ‘Start Immediately’Job Name:‘Enter’ till Payment Run is carried out

System > Services > Output Controller (SP01)ExecuteSelect the item in the reportClick ‘Display Contents’ IconReport can be viewed.

Accounts Receivable

Posting KeysCustomer Debit: 01Customer Credit: 15S/Debtors Bill of Exchange Debit: 09S/Debtors Bill of Exchange Credit: 19

Document TypesDR – Customer InvoiceDZ – Customer Payment

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DA – Customer Document (Transfers/Reversals)

AR (Customer Accounts) is a Subsidiary Ledger of Sundry Debtors & Sundry Debtors is a Reconciliation Account under Current Assets.

Steps: Creation of Customer Account Groups like FI Customers and SD Customers with

Reconciliation Account Field mandatory. Creation of Number Range Groups and Numbers for Customers. Assignment of Number Range Group to Customer Account Group. Creation of Customer Master. Document Types and Number Ranges for KR, KZ and KA.

Creation of Customer Account Groups (OBD2)SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Customer Accounts > Master Records > Preparations for creating Customer Master Records > Define Account Groups with Screen Layouts (Customers)(Create FI Customer Group & SD Customer GroupCompany Code Data > Account Management > Reconciliation Account Required Entry)

The Customer Account Group controls The number ranges of the accounts, the status of the fields in the master record and whether the account is a one time customer.

Create Number Ranges for Customer Accounts (XDN1)SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Customer Accounts > Master Records > Preparations for creating Customer Master Records > Create Number Ranges for Customer Accounts

Assign Number Ranges to Customer Account Groups (OBAR)SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Customer Accounts > Master Records > Preparations for creating Customer Master Records > Assign Number Ranges to Customer Account Groups

Creation of Customer Master (XD01)Accounting > Financial Accounting > Accounts Receivable > Master Records > Maintain Centrally > Create(The account group is entered on the initial create screen. In FI, once the customer account is created, its account group cannot be changed.Select Company Code Data Button - Give Reconciliation Account Number, Sort Key 012 Vendor Name, Payment Terms, Tolerance Group & Select ‘Check Double Invoicing’)

Line item display and open item management are always preset to “on” for every customer account.

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A complete Customer Account consists of 3 segments – 1. General Data at the client level 2. Company code segment and 3. Sales Area segment

General data consists Address, Control data, Payment transactions etc. The account number is assigned to the Customer at the client level. This ensures that the account number for a customer is the same for all company codes and sales areas.Company data consists Accounting information, Payment transactions, Correspondence, Insurance, Withholding tax etc.

Note: If SD creates their segment of the master record and then FI creates their segments of the master record, there is the risk of creating incomplete or duplicate master records. To find and correct these incomplete accounts, we can run report RFDKAG00 and make the necessary corrections.Creation of duplicate accounts can be prevented by:

Using the matchcode before creating a new account Switching on automatic duplication check

Important Fields Search Item: Should be filled with a short version of the customer name according

to company rules/desires. An additional search field also can be filled up. Group Key: Customers who belong to one corporate group can be bundled

together by a user-defined group key. This group key can be used for running reports, transaction processing or for matchcodes.

Accounting clerk: The accounting clerk’s name has to be stored under an ID and this ID can be entered in the customer master record of the account he or she is responsible for. The accounting clerk’s name is then printed on correspondence and this ID is used to sort dunning and payment proposal lists.

Document Types & Number Ranges (OBA7)SPRO > Financial Accounting > FAGS > Document > Document Header > Overview(Give Number Ranges for Document Types DR, DZ and DA)

Sale Invoice Posting (F-22)Accounting > Financial Accounting > Accounts Receivable > Document Entry > Other > Invoice General

Display Customer Account (FBL5N) with Open Item, Cleared Item and Special GL Item detailsAccounting > Financial Accounting > Accounts Receivable > Account > Display/Change Line Items

Display Customer Account (FD10N)

Incoming Payment Posting (F-28)

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Accounting > Financial Accounting > Accounts Receivable > Document Entry > Incoming Payment

Down Payments from Customers Create Special GL Account ‘Advances from Customers (Reconciliation Account)’

under Current Liabilities Create Link between ‘S/Debtors’ and ‘Advances from Customers’ (Special GL

Indicator: A) Down Payment Receipt Posting Sale Invoice Posting Transfer of Down Payment from Special GL to Normal item by clearing Special

GL Account Clearing of Normal Item

Link between S/Debtors and Advances from Customers (OBXR)SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Down Payments Received > Define Reconciliation Accounts for Customer Down Payments(Double Click on Down Payment & Give Reconciliation Account Number and Special GL Account Number)

Customer Down Payment Posting (F-29)Accounting > Financial Accounting > Accounts Receivable > Document Entry > Down Payment > Down Payment(Special GL Indicator ‘A’)

Sale Invoice Posting (F-22)Accounting > Financial Accounting > Accounts Receivable > Document Entry > Other > Invoice General

Transfer of Advance from Special GL to Normal by clearing Special GL (F-39) Down Payment ClearingAccounting > Financial Accounting > Accounts Receivable > Document Entry > Down Payment > Clearing

Clearing of Normal Item (F-32)Accounting > Financial Accounting > Accounts Receivable > Account > Clear

Bill of Exchange LC (Letter of Credit – 30/60/90 days sight) Contingent Liability Bills Discounted with Bank ‘W’ is the Special GL Indicator (‘W’ stands for ‘Bill of Exchange Bankable’)

Bill of Exchange Transaction

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Normal Accounting SAP AccountingCustomer A/c. Dr. To Sales A/c.

Customer A/c. Dr. (S/Debtors Debit) To Sales A/c.

Bill of Exchange Receipt – No Entry

Bill of Exchange Receipt – Customer (W) A/c. Dr. (S/Drs. BExchnge A/c. Debit) To Customer A/c. (S/Drs. With clearing)

Discounting – Bank A/c. Dr.Interest A/c. Dr. To Bill Discounting A/c.

Discounting – Bank A/c. Dr.Interest A/c. Dr. To Bank Bill Discounting A/c.

Reversal of Contingent LiabilityBill Discounting A/c. Dr. To Customer A/c.

Reversal of Contingent Liability - Bank Bill Discounting A/c. Dr. To Customer (W) A/c. (S/Drs. Bill of Exchange with clearing)

Reports – Customer wise, Due Date wise, Bill wise outside the system

Reports within the system – Customer wise, Due Date wise, Bill wise within the system

Creation of GL Account ‘S/Debtors Bill of Exchange’ (FS00)(Current Assets Loans and Advances GroupBalance SheetDeselect Only Balances in Local CurrencyReconciliation Account for Account Type: CustomersSelect Line Item DisplaySort Key: 031 (Customer Number)Field Status Group: G067 Reconciliation Accounts)

Creation of GL Account ‘Bank Bill Discounting’ (FS00)(Secured Loans GroupBalance SheetOnly Balances in Local CurrencySelect Open Item ManagementSelect Line Item DisplaySort Key: G005 (Bank Accounts – Obligatory Value Date)**Select ‘Post Automatically only’**)

Link between S/Debtors and S/Debtors Bill of Exchange (OBYN)SPRO > Financial Accounting > Bank Accounting > Business Transactions > Bill of Exchange Transactions > Bill of Exchange Receivable > Post Bill of Exchange Receivable > Define Alternative Reconciliation Account for Bill of Exchange Receivable(Double Click ‘Special GL Account Determination’Double Click ‘Bill of Exchange Bankable’Chart of Accounts: XYZAccount Type: DSpecial GL Indicator: ‘W’ Bill of Exchange BankableReconciliation Account: Sundry Debtors A/c.

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Special GL Account: Sundry Debtors Bill of Exchange A/c.)

Link between Bank Current Account, Sundry Debtors Account and Bank Bill Discounting Account (OBYK)SPRO > Financial Accounting > Bank Accounting > Business Transactions > Bill of Exchange Transactions > Bill of Exchange Receivable > Present Bill of Exchange Receivable at Bank > Define Bank Sub Accounts(New EntriesChart of Accounts: XYZBank Current Account: Current A/c. GL No.Usage: DiscountingIndicator for Special GL: ‘W’ Bill of Exchange BankableCustomer Reconciliation: Sundry Debtors A/c.Bank Sub Account for Liability: Bank Bill Discounting A/c.)

Sale Invoice Posting (F-22)Accounting > Financial Accounting > Accounts Receivable > Document Entry > Other > Invoice General

Bill of Exchange Receipt (F-36)Accounting > Financial Accounting > Accounts Receivable > Document Entry > Bill of Exchange > Payment(Date:Select ‘Incoming Payment’Posting Key: 09 Special GL DebitAccount: Customer A/c. No.Special GL Indicator: ‘W’ Bill of Exchange BankableAmount:Text: Bill of Exchange ReceiptBusiness Area: Due on: Current Date + LC sightPlanned Usage: DiscountingCentral Bank LOC: Bank MainSelect ‘Choose Open Items’Select ‘Process Open Items’Double in INR Gross 9999Save)

Bill Discounting (F-33)Accounting > Financial Accounting > Accounts Receivable > Document Entry > Bill of Exchange > Discount(Date:Type: DAUsage: DiscountingBank Account Number: Current Account GL NumberBusiness Area:

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Amount:Text: Bank Bill DiscountingPosting Key for Debit: 40Account: Interest GL Account Number under ExpensesAmount: Interest AmountBusiness Area:Press ‘Select Bill of Exchange’ ButtonDocument Number: Bill of Exchange Receipt Document NumberDoc Simulate & Save)

To see Customer wise, Due Date wise Outstanding (S_ALR_87012213)Accounting > Financial Accounting > Accounts Receivable > Periodic Processing > Bill of Exchange Processing > Korea > Bill of Exchange Management(Chart of Accounts: GL Account: Sundry Debtors Bill of Exchange GL Account NumberCompany Code: Special GL Indicator: WBill of Exchange Usage: ‘D’ DiscountingSelect ‘Discounted/Collected Bills’ExecuteFields to keep in Report: Due Date, Document Number, Document Date, Customer, Received from, Amount in Local Currency)

Display Bank wise Outstanding (FBL3N)Accounting > Financial Accounting > General Ledger > Account > Display/Change Line Items(Bank Account Number: Bank Bill Discounting GL Account NumberSelect ‘Open Items’ Button & Execute)

Reverse Contingent Liability (F-20)Accounting > Financial Accounting > Accounts Receivable > Document Entry > Bill of Exchange > Reverse Contingent Liability(Document Date:GL Account Number: Sundry Debtors Bill of Exchange GL Account NumberUsage: DiscountingDue by: Select ‘Edit Line Items’ ButtonsSelect the items from the Drop Down MenuSave & Document Display)

Customer Account Display FBL5NBank Bill Discounting Account Display FBL3N

Note: Even in case of Dishonor First Contingent Liability is to be reversed and the additional entry for dishonor is Customer Debit and Bank Credit.

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DunningSystem defined reminder lettersDunning Area: South, North, East, WestDunning Levels: 4 (Maximum levels 9)Dunning Frequency: 10/20/30 daysGrace Period: 3/4/5 days

The Dunning Program settings are divided into the following categories: Dunning Procedure

o Define the key for the dunning procedure to be usedo Give a description for the dunning procedureo Define dunning interval in dayso Specify minimum days in arrears after which a dunning notice will be sento Grace period per line itemo Interest calculation indicator for calculation of dunning interest

Dunning levels (Each item to be dunned gets a dunning level according to its days in arrears)

o Define minimum number of days, referring to the due date of net payment, to reach a certain dunning level

o Define whether interest is to be calculatedo Define print parameters

Chargeso Define dunning charges, depending on the dunning levelo Dunning charges can be either a fixed amount or a percentage of the

dunned amounto A minimum amount for the dunning charges can be set

Minimum amountso Define minimum amount or percentage of the overdue items to reach a

dunning levelo Minimum amount to be reached in order to calculate interest per dunning

level Dunning texts

o Define the name of the form that will be used at each dunning level Environment

o Company code datao Sort fieldso Sender detailso Dunning areaso Dunning keys (A dunning key determines that the line item can only be

dunned with restrictions or is to be displayed separately on the dunning notice. By assigning dunning keys to certain items we can prevent these items from exceeding a certain dunning level.)

o Dunning block reasons ( A dunning block prevents accounts and items to be dunned)

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o Interesto Dunning grouping

Define Dunning Areas (OB61)SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Dunning > Basic Settings for Dunning > Define Dunning Areas(F5, Company Code: XYZ, Area: leave blank, Text: Dunning Area for XYZ)

Define Dunning Procedure (FBMP)SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Dunning > Dunning Procedure > Define Dunning Procedures(Select ‘New Procedure’Name: XYZ Text: Dunning Procedure for XYZDunning Interval: 10 daysNumber of Dunning Levels: 4 (max)Line Item Grace Period: 3 daysSelect ‘Standard Transaction Dunning’Reference Dunning Procedure: XYZReference Interest Indicator: Item Interest calculation key if any

Select ‘Dunning Text’ Button (ignore the warning message & enter)Co. Code: XYZSelect ‘Customer’ & Enter

Select ‘New Company Code’ ButtonGive: XYZ & EnterSelect ‘Separate Notice per Dunning Level’Back arrow twice & say ‘Yes’ to the message ‘Data to be saved?’

Select ‘Dunning Text’ Button once againCo. Code: XYZSelect ‘Customer’ & Enter{Open one more session with FBMP & Double Click 0001 System defined Dunning ProcedureSelect ‘Dunning Text’ Button and give Co. Code: 0001Select ‘Customer’ & Enter}Copy the Forms from here and Paste in XYZ’s FBMPSelect Back ArrowSelect ‘Dunning Levels’ Button & specify interest settings if anySelect ‘Charges’ Button to specify Dunning Charges if anySave, Ignore the warning message & Enter)

Assignment of Dunning Procedure in the Customer Master (XD02)Accounting > Financial Accounting > Accounts Receivable > Master Records > Maintain Centrally > Change(In Company Code Data > Correspondence Tab > Assign Dunning Procedure)

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Dunning Run (F150)Accounting > Financial Accounting > Accounts Receivable > Periodic Processing > Dunning

Steps in Dunning Run Maintain Parameters (specify the accounts and documents that are to be

considered in the dunning run) Proposal Run Editing Proposal Printing Dunning Notices

(Run on: Current DateIdentification: XYZ1 (any)Select ‘Parameters’ TabDunning Date: Current DateDocuments Posted up to: Current DateCompany Code: XYZCustomer A/c. No.: Give the range & Save & Select Back Arrow

Select ‘Schedule’ ButtonStart Date: Current DateSelect ‘Start Immediately’Output Device: LP01 & Select Schedule ButtonTill you get complete message keep on entering

Select ‘Dunning Printout’ ButtonSelect ‘Print’ ButtonTill you get complete message keep on entering

Select ‘Sample Printout’ ButtonCustomer Number: Give Range & Select Print ButtonTill you get complete message keep on entering

Select ‘Individual Dunning Notice’ ButtonOutput Device: LP01 & Select Continue ButtonCo. Code: XYZ & Give Customer RangeSelect Printout Button)

Note: Dunning Level completed will be updated in Customer Master Record.

Sales TaxInput Tax or Purchase Tax

Base 1002% Tax 2

----

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Inventory RM 102----

Output Tax or Sales TaxBase Price 100 Sales Account4% ST 4 ST Payable Account

----104----

Define Calculation Procedure (OBQ3)SPRO > Financial Accounting > FAGS > Tax on Sales/Purchases > Basic Settings > Check Calculation ProcedureDouble click ‘Define Procedures’(F5, Procedure: TaxXYZ {any}, Desc: Sales Tax India & SaveSelect the Record CreatedDouble click ‘Control Data’ & Select ‘New Entries’Step: 1Condition Type: BASB Base AmountStep: 2Condition Type: MWVS Input TaxFrom: 1 To: 1Account Key: VST Input TaxStep: 3Condition Type: MWAS Output TaxFrom: 1 To: 1Account Key: MWS Output TaxSave)

Assign County to Calculation ProcedureSPRO > Financial Accounting > FAGS > Tax on Sales/Purchases > Basic Settings > Assign County to Calculation Procedure(For Country ‘IN’ attach the procedure ‘TaxXYZ’)

Define Tax Codes for Sales & Purchases (FTXP)SPRO > Financial Accounting > FAGS > Tax on Sales/Purchases > Calculation > Define Tax Codes for Sales and Purchases(For Input Tax Country: IN & EnterTax Code: V1 {Any} Desc: 2% Input TaxTax Type: ‘V’ Input Tax & EnterInput Tax: 2% (Give Input Tax Rate)Deactivate the Output Tax Line & Save)(For Output Tax Country: IN & EnterTax Code: A1 (Any) Desc: 4% Output TaxTax Type: ‘A’ Output Tax & Enter

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Output Tax: 4% (Give Output Tax Rate)Deactivate the Input Tax Line & Save)

Define Tax Accounts (OB40)SPRO > Financial Accounting > FAGS > Tax on Sales/Purchases > Posting > Define Tax Accounts(Double click ‘VST’ Input Tax keyChart of Accounts: XYZ & SaveGive the GL Account Number to which Input Tax should go: Inventory-RM A/c.Select Back Arrow & Double click ‘MWS’ key for Output TaxChart of Accounts: XYZCheck On ‘Tax Code wise’ & SaveTax Code: A1 Account Number: ST Payable A/c.)

Assign Sales Tax Code in Customer Master (XD02)Accounting > Financial Accounting > Accounts Receivable > Master Records > Maintain Centrally > Change(General Data Button > Control Data Tab > Tax Code1: A1 the defined tax code)

Assign Sales Tax Code in GL Account Sales (FS00)Control Data Tab > Tax Category: * (All Tax Codes allowed)Check on ‘Posting without Tax allowed’

Posting of Sale Transaction in FI (F-22)The Entry will beCustomer A/c. Dr. 1,04,000/- To Sales 1,00,000/- To ST Payable 4,000/-

Asset Management

Subsidiary Ledger Chart of Depreciation – Copy Germany Chart of Depreciation Depreciation Areas – Book, Tax, Consolidated and Costing Depreciation Methods – Straight Line Method and Written Down Value Method Depreciation Keys – Rate + Method

5% SLM, 5%WDV etc.

Rules: Sub Asset Master is to be created WRT Main Asset Master Main Asset Master is to be created WRT Asset Class In Asset Class we mention Account Determination

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For Account Determination we assign Accounts on the basis of Transaction like Purchase, Sale, Profit, Loss, Scrapping, Depreciation, Accumulated Depreciation etc.

Transaction Account Determination

Asset Class Asset Masters

Sub Asset Masters

Purchase, Sale, Profit, Loss, Scrapping, Depreciation, Accumulated Depreciation etc.

Land Free Hold LandLease Hold Land

Buildings Factory BuildingsNon Factory Bldgs.

Plant & Machinery

Department ADepartment BDepartment C

Machine No.1 Motor

Furniture & Fixtures

Furniture & FixturesOffice Equipment

Vehicles Indigenous VehiclesImported Vehicles

Capital Work in Progress

Expansion 1Expansion 2Expansion 3

System defined Account Determinations and Screen Layout Rules:Description Account

Determination

Screen Layout Rule

Real Estate and Similar Rights 10000 1000Buildings 11000 1100Machinery and Equipment 20000 2000Furniture & Fixtures 30000 3000Vehicles 31000 3100Hardware (IT) 32000 3200Down Payments paid and Assets under Construction 40000 4000Low Value Assets 50000 5000Leasing 60000 6000Objects of Art 80000 8000

Settings:Copy Reference Chart of Depreciation/ Depreciation Areas (EC08)SPRO > Financial Accounting > Asset Accounting > Organisational Structures > Copy Reference Chart of Depreciation/ Depreciation AreasDouble click ‘Copy Reference Chart of Depreciation’(Menu) Organisational Object > Copy Org. Object (EC08)From Chart of Depreciation: ODE (Sample Chart of Depreciation, Germany)To Chart of Depreciation: XYZ & EnterDouble click ‘Specify Description of Chart of Depreciation’Change the Description for XYZ as XYZ Chart of Depreciation

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Define Depreciation Areas (OADB)SPRO > Financial Accounting > Asset Accounting > Valuation > Depreciation Areas > Define Depreciation AreasDouble click ‘Define Depreciation Areas’ (OADB)Select ‘XYZ Chart of Depreciation’Select ‘Choose’ ButtonEdit > Selections > Select AllDeselect ’01 Book Depreciation Area’Edit > Delete (10 Entries will be deleted except for Book Depreciation)Save & Keep on Entering till the Data is saved.(02, 30 will not be deleted, they remain along with 01 Book Depreciation)

Creation of 0% Tax Codes for Sale & Purchase (FTXP)SPRO > Financial Accounting > FAGS > Tax on Sales/ Purchases > Calculation > Define Tax Codes for Sales and PurchasesCountry Code: INTax Code: V0 (any) & EnterTax Code: V0 0% Input TaxTax Type: V (V for Input Tax) & EnterInput Tax: Give 0 percentageDeactivate Output Tax Line & SaveIn the same way create ‘A0’ 0% Output Tax Code

Assign Tax Codes for Non Taxable Transactions (OBCL)SPRO > Financial Accounting > FAGS > Tax on Sales/Purchases > Posting > Assign Tax Codes for Non Taxable Transactions(For XYZ Company Code assign Input Tax Code V0 and Output Tax Code A0)

Assign Chart of Depreciation to Company Code (OAOB)SPRO > Financial Accounting > Asset Accounting > Organisational Structures > Assign Chart of Depreciation to Company Code(For XYZ Company Code, Assign XYZ Chart of Depreciation)

Specify Account DeterminationSPRO > Financial Accounting > Asset Accounting > Organisational Structures > Asset Classes > Specify Account Determination(No settings required, already system has defined)

Create Screen Layout RulesSPRO > Financial Accounting > Asset Accounting > Organisational Structures > Asset Classes > Create Screen Layout Rules(No Settings Required)

Define Number Range Interval for Asset Classes (AS08)

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SPRO > Financial Accounting > Asset Accounting > Organisational Structures > Asset Classes > Define Number Range IntervalCreate IntervalsGroup No. From To01 1 10000002 100001 20000003 200001 30000004 300001 40000005 400001 50000006 500001 600000

Define Asset Classes (OAOA)SPRO > Financial Accounting > Asset Accounting > Organisational Structures > Asset Classes > Define Asset Classes

New EntriesAsset Class: X10000 Freehold LandAccount Determination: 10000Screen Layout Rule: 1000Number Range Group: 01Select ‘Include Asset’ under ‘Inventory Data’Select ‘No AuC or Summary Management of AuC’Save

Select ‘Next Entry’ ButtonAsset Class: X11000 Factory BuildingsAccount Determination: 11000Screen Layout Rule: 1100Number Range Group: 02Select ‘Include Asset’Select ‘No AuC or Summary Management of AuC’Save

Select ‘Next Entry’ ButtonAsset Class: X20000 Department A Plant & MachineryAccount Determination: 20000Screen Layout Rule: 2000Number Range Group: 03Select ‘Include Asset’Select ‘No AuC or Summary Management of AuC’Save

Select ‘Next Entry’ ButtonAsset Class: X20001 Department B Plant & MachineryAccount Determination: 20000Screen Layout Rule: 2000

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Number Range Group: 03Select ‘Include Asset’Select ‘No AuC or Summary Management of AuC’Save

Select ‘Next Entry’ ButtonAsset Class: X30000 Furniture & FixturesAccount Determination: 30000Screen Layout Rule: 3000Number Range Group: 04Select ‘Include Asset’Select ‘No AuC or Summary Management of AuC’Save

Select ‘Next Entry’ ButtonAsset Class: X31000 Vehicles - IndigenousAccount Determination: 31000Screen Layout Rule: 3100Number Range Group: 05Select ‘Include Asset’Select ‘No AuC or Summary Management of AuC’Save

Select ‘Next Entry’ ButtonAsset Class: X40000 Expansion 1Account Determination: 40000Screen Layout Rule: 4000Number Range Group: 06Select ‘Line Item Settlement’Save

Creation of GL Accounts (FS00)1. Land (Deselect ‘Only Bal in LC’, Reconciliation: Assets, Sort Key 018, G067)2. Buildings - do -3. Plant & Machinery - do -4. Furniture & Fixtures - do -5. Vehicles - do -6. Capital Work in Progress - do -7. Accumulated Depreciation – Buildings - do -8. Accumulated Depreciation – Plant & Machinery - do -9. Accumulated Depreciation – Furniture & Fixture - do -10. Accumulated Depreciation – Vehicles - do -11. Asset Sale (Under Other Income Group & Field Status G052, Sort Key 018)12. Profit on Sale of Asset (Under Other Income & Field Status G001, Sort Key 018)13. Loss on Asset Sale (Under Admn Cost & Field Status G001, Sort Key 018)14. Loss due to Scrapping (Under Admn Cost & Field Status G001, Sort Key 018)

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15. Depreciation (Under Depreciation & Field Status G001, Sort Key 018)

Assignment of Accounts (AO90)SPRO > Financial Accounting > Asset Accounting > Integration with General Ledger > Assign GL AccountsSelect Details of ‘Chart of Depreciation XYZ’Chart of Accounts: XYZDouble Click ‘Choose Account Allocation’Select 10000 Account Determination (Real Estate & Similar Rights)Double click ‘Define Acquisition/Retirement Accounts’Select 01 Book Depreciation AreaSelect ‘Details’ ButtonAcquisition: Acquisition & Production Costs: Give GL A/c. of LANDClearing Account Revenue from Asset Sale: Give GL A/c. of ASSET SALEGain from Asset Sale: Give GL A/c. of PROFIT ON ASSET SALELoss from Asset Sale: Give GL A/c. of LOSS ON ASSET SALELoss made on Asset Retirement without Revenue: Give GL A/c. of LOSS DUE TO SCRAPPINGEnter & SaveSelect Back Arrow Twice

Select 11000 Account Determination (Buildings)Double click ‘Define Acquisition/Retirement Accounts’Select 01 Book Depreciation AreaSelect ‘Details’ ButtonAcquisition: Acquisition & Production Costs: Give GL A/c. of BUILDINGSClearing Account Revenue from Asset Sale: Give GL A/c. of ASSET SALEGain from Asset Sale: Give GL A/c. of PROFIT ON ASSET SALELoss from Asset Sale: Give GL A/c. of LOSS ON ASSET SALELoss made on Asset Retirement without Revenue: Give GL A/c. of LOSS DUE TO SCRAPPINGEnter & SaveDouble click ‘Define Depreciation Accounts’Select 01 Book DepreciationSelect ‘Details’ ButtonAccumulated Depreciation Account for Ordinary Depreciation: Give GL A/c. of ACCUMULATED DEPRECIATION – BUILDINGSExpense Account for Ordinary Depreciation: Give GL A/c. of DEPRECIATIONEnter & SaveSelect Back Arrow Twice

And repeat the procedure for 20000, 20001, 30000, 31000 and 40000Note: For ‘40000 Asset under Construction’, no need to assign Depreciation Accounts as there will be no Depreciation on AuC.

Determination of Depreciation Areas in Asset Classes (OAYZ)

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SPRO > Financial Accounting > Asset Accounting > Valuation > Determine Depreciation Areas in Asset ClassSelect X10000 Freehold LandDouble Click ‘Depreciation Areas’Activate 01 Book Depreciation by Deselecting itLayout Depreciation on Asset Sub Number Level: Give 2000 in all 3 records.Back ArrowSelect X11000 and repeat the process. And repeat the process for the remaining Asset Classes X20000, X20001, X30000, X31000 and X40000

Specify Document Type for Posting of Depreciation (OBA7)SPRO > Financial Accounting > Asset Accounting > Integration with General Ledger > Post Depreciation to General Ledger > Specify Document Type for Posting of DepreciationSelect AF Depreciation Postings & give a number range.**Select ‘External Documents’ Check Box**

Specify Intervals and Posting Rules (OAYR)SPRO > Financial Accounting > Asset Accounting > Integration with General Ledger > Post Depreciation to General Ledger > Specify Intervals and Posting RulesSelect XYZ Company Code and Double click ‘Posting Rules’Select Details of 01 Book DepreciationSelect ‘Monthly Posting’

Specify Rounding off Net Book Value and / or Depreciation (OAYO)SPRO > Financial Accounting > Asset Accounting > Valuation > Amount Specification (Com Code/Dep Area) > Specify Rounding off Net Book Value and / or DepreciationSelect XYZ Company Code and Double click ‘Rounding Specification’Select 01 Book Depreciation & Select ‘Details’ ButtonSelect ‘Automatically Calculated Depreciation’Select ‘Round to nearest whole’

Define Screen Layout for Asset Master DataSPRO > Financial Accounting > Asset Accounting > Master Data > Screen Layout > Define Screen Layout for Asset Master DataSelect 1000 Real Estate or LandDouble click ‘Logical Field Groups’Select ‘2 Posting Information’Double click ‘Field Group Rules’Capitalization Date Required EntryCheck on ‘Main Asset Number’, ‘Sub Number’ and ‘Copy’Back ArrowSelect ‘3 Time Dependent Data’Double click ‘Field Group Rules’Business Area Required EntryCheck on ‘Main Asset Number’, ‘Sub Number’ and ‘Copy’

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Repeat the Process for 1100, 2000, 3000, 3100 & 4000.

Define Screen Layout for Asset Depreciation Areas (AO21)SPRO > Financial Accounting > Asset Accounting > Master Data > Screen Layout > Define Screen Layout for Asset Depreciation AreasSelect 2000 Depreciation on Asset Sub Number LevelDouble click ‘Field Group Rules’Depreciation Keys Required Entry atCheck on ‘Main Asset Number’, ‘Sub Number’ and ‘Copy’

Depreciation Keys Define Base Method (SLM 0014) Define Declining Balance Method (WDV 001) Define Multi Level Method Define Period Control Method Define Depreciation Key

Define Base MethodSPRO > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods > Depreciation Key > Calculation Methods > Define Base MethodsFor SLM always select 00140014 – Ordinary: Explicit Percentage (after end of life)No Settings Required

Define Declining Balance Methods (AFAMD)SPRO > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods > Depreciation Key > Calculation Methods > Define Declining Balance MethodsAlways Select 001, No Settings Required

Define Multi Level Methods (AFAMS)SPRO > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods > Depreciation Key > Calculation Methods > Define Multi Level MethodsNew EntriesM_Level_Method: X1 (any)Description: 5% SLMValidity Start: From Ordinary Depreciation Start DateSave & Double click ‘Levels’New EntriesAcquisition Year: 9999 Years: 999 Periods: 12Base Value: 01 Acquisition Value Percentage: 5Save & Back Arrow 3 times

New EntriesM_Level_Method: X2 (any)Description: 5% WDVValidity Start: From Ordinary Depreciation Start Date

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Save & Double click ‘Levels’New EntriesAcquisition Year: 9999 Years: 999 Periods: 12Base Value: 24 Net Book Value Percentage: 5

Maintain Period Control Methods (AFAMP)SPRO > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods > Depreciation Key > Calculation Methods > Maintain Period Control MethodsNew EntriesPeriod Control Method: 006 (any)Acquisition: 01 (Pro rata at period start date)Add: 06 (At the start of the year)Retire: 06 (At the start of the year)Transfer: 06 (At the start of the year)

Maintain Depreciation Key (AFAMA)SPRO > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods > Depreciation Key > Maintain Depreciation KeySelect XYZ Company CodeSelect ‘Choose’ ButtonNew EntriesDepreciation Key: XYZ1 (any)Description: 5% SLMSelect ‘Period Control According to Fiscal Years’Select ‘Depreciation to the Day’Save, Ignore the warning message & EnterDouble click ‘Assignment of Calculation Methods’New EntriesDepreciation Type: Ordinary DepreciationPhase: From the start of DepreciationAssignment

Base Method: 0014 (Ordinary: Explicit Percentage after end of life)Declining Balance Method: 001Period Control Method: 006Multi Level Method: X1 (for SLM)

Class Straight Line DepreciationSave & Back Arrow 4 times to ‘Activate’ Depreciation Key ‘XYZ1’Save

New Entries once againRepeat the same procedure for creating XYZ2 Depreciation Key for 5%WDVSelect Multi Level Method ‘X2’ for WDVSelect Class Declining Balance Depreciation

Creation of Asset Master (AS01)Accounting > Financial Accounting > Fixed Assets > Asset > Create > Asset

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Asset Class:Co. Code: No. of similar Assets: 1 & EnterGeneral Data Description of the Asset:Posting Info Capitalization Date:‘Time Dependent Data’ Tab Business Area:‘Depreciation Area’ Tab

Depreciation Key: Use Life: (Life of the Asset)Per: (Planned useful life in periods)Ordinary Depreciation Start Date:

Save (Asset XXXXXX 0 is created)

Creation of Sub Asset Master (AS11)Accounting > Financial Accounting > Fixed Assets > Asset > Create > Sub No. > AssetAsset: XXXXXX Class: Company Code: XYZ & EnterGeneral Data Description of the Sub Asset:Posting Info Capitalization Date:‘Time Dependent Data’ Tab Business Area:‘Depreciation Area’ Tab

Depreciation Key: Use Life: (Life of the Asset)Per: (Planned useful life in periods)Ordinary Depreciation Start Date:

Save (Asset XXXXXX 1 is created)

Asset Purchase Posting (F-90)Accounting > Financial Accounting > Fixed Assets > Postings > Acquisition > External Acquisition > With VendorDoc. Date: Posting Date: Doc. Type: KR Vendor InvoicePosting Key: 31 Vendor Credit Account: Vendor Account NumberAsset Value: B. Area: Desc: Asset Purchase PostingNext Line Posting Key: 70 Asset Debit Account: XXXXXX 0Transaction Type: 100 External Acquisition TypeAmount: * Text: + Doc > Simulate & Save

Sub Asset Purchase Posting (F-90)Accounting > Financial Accounting > Fixed Assets > Postings > Acquisition > External Acquisition > With Vendor

Asset Explorer (AW01N)Accounting > Financial Accounting > Fixed Assets > Asset > Asset Explorer

Depreciation Run (AFAB)

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Accounting > Financial Accounting > Fixed Assets > Periodic Processing > Depreciation Run > Execute(Planned Posting Run, Unplanned Posting Run, ---------------)

Asset Sale (F-92)Accounting > Financial Accounting > Fixed Assets > Postings > Retirement > Retirement with Revenue > With CustomerCheck on ‘Asset Retirement’Transaction Type: 210 Retirement with RevenueSelect ‘Complete Retirement’The Entry created is 01 Customer A/c. Dr.70 Acc Depn A/c. Dr.40 Asset Sale A/c. Dr.

To 50 Asset Sale A/c.To 75 Asset A/c.To 50 Profit on Asset Sale A/c.

Asset Transfer within Company Code (ABUMN)Accounting > Financial Accounting > Fixed Assets > Postings > Transfer > Transfer within Company Code

Asset Scrapping (ABAVN)Accounting > Financial Accounting > Fixed Assets > Postings > Retirement > Scrapping

Capital Work in Progress Line Item Settlement

Define Line Item Settlement Profile (OK07)SPRO > Financial Accounting > Asset Accounting > Transactions > Capitalization of Assets under Construction > Define/Assign Settlement ProfileDouble click ‘Define Settlement Profile’Select ‘AI’ Settlement Assets under ConstructionSelect ‘Details’ ButtonActual Costs/Cost of Sales Select ‘To be settled in full’Default Values Allocation Structure: A1 (CO Allocation Structure)

Default Object Type: FXA (Asset)Indicators Select ‘% Settlement’

Select ‘Equivalence Numbers’Select ‘Amount Settlement’

Valid Receivers Fixed Asset: 2 (Settlement Required)Other Parameters Doc Type: AA Max No. of Distribution Rules: 999

Resi Time: 12Select Back Arrow 2 times & Double click ‘Assign Settlement Profile to Co. Code’Select Company Code XYZ and Assign Profile ‘AI’ & Save.

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Maintain Number Ranges for Settlement Documents (SNUM)SPRO > Controlling > Internal Orders > Actual Postings > Settlement > Maintain Number Ranges for Settlement DocumentsSelect ‘Maintain Groups’ ButtonKeep the Cursor on Element ‘VBCF’Edit > Select Element F2Check on ‘Standard Accounting Document’Edit > Assign Element Group F5 & Save

Capitalization of Asset (AIAB)Accounting > Financial Accounting > Fixed Assets > Posting > Capitalize Assets under Construction > DistributeAsset: Give the Asset Number to be Settled Sub No.: & ExecuteSelect the item which is to be settledClick ‘Enter Distribution Rules’ ButtonFXA XXXXXX – 0: 40%FXA XXXXXX – 0: 60%Click ‘Check’ Button for Checking ErrorsBack Arrow & SaveSelect ‘Settlement’ ButtonGive Dates and Text: Asset SettlementClick to Buttons & Execute & Back ArrowRemove Test Run & Execute

Financial Statement Version (FSV)Summary, Schedules and Accounts

We define a financial statement version in 2 steps:1. Enter in the directory of financial statement versions2. Define hierarchy levels and assign accounts

Each version must have the following special items:1. Assets2. Liabilities3. Profit4. Loss5. Profit and Loss results6. Accounts not assigned

The ABAP/4 program RFBILA00 calculates the balance sheet profit/loss from the assets and liabilities totals and enters the result in the “Balance sheet results profit/loss” item. The profit and loss statement results are determined from all accounts not assigned to either assets or liabilities, and are entered in the proper item.

A financial statement version consists of a maximum of 10 hierarchy levelso Assign items to each level. The system calculates a total/subtotal for each

item which is then displayed when the program is run.o Assign texts to each item.

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o Assign the accounts whose balance and account name are to be listed to the lowest levels.

Define Financial Statement VersionSPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Closing > Documenting > Define Financial Statement VersionNew EntriesFinancial Statement Version: XYZName: Balance sheet & Profit and loss AccountCheck on “Item keys auto”Chart of Accounts: XYZSaveClick ‘Financial Statement Items’ buttonDouble click ‘No text exists: Assets’Item: Assets & EnterDouble click ‘No text exists: Liabilities’Item: Liabilities & EnterKeep the cursor on ‘XYZ’ Balance Sheet & Profit and loss AccountClick ‘Create items’ buttonIncomeExpenditure & EnterKeep the cursor on the item which is to be changedKeep the cursor on AssetsClick ‘Select +/-‘ button (F9)Keep the cursor on the item after which you want to place, i.e. ‘Liabilities’Click ‘Reassign’ buttonSelect ‘Same level’ Radio button & EnterKeep the cursor on ‘Income’ & Place it after ‘Expenditure’ & Save

To create Schedules:Keep the cursor on ‘Liabilities’ & Press ‘Create items’ buttonGive the heads you wantRepeat the same for ‘Assets’ & Save

To assign Accounts:Keep the cursor on ‘Share Capital’Click ‘Assign Accounts’ buttonGive the range for the Accounts & Check on Dr. Cr. EnterRepeat the same for other schedules

To check all Accounts assigned or not:Click ‘Check’ Button (Ctrl+F5)Select ‘Non-assigned Accounts’ & EnterReport can be viewed if there are any non-assigned accountsSave the version and open one more session to view the balance sheet for defining texts

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View Balance Sheet (S_ALR_87012284)Accounting > Financial Accounting > General Ledger > Information System > GL Reports > Balance Sheet/P&L Account/Cash Flows > General > Actual/Actual Comparisons > Balance Sheet/Profit & Loss Statement

ReportsTo View Chart of Accounts (S_ALR_87012326)Accounting > Financial Accounting > General Ledger > Information System > General Ledger Reports > Master Data > Chart of Accounts > Chart of Accounts

Trial Balance (S_ALR_87012310)Accounting > Financial Accounting > General Ledger > Information System > General Ledger Reports > Account Balances > Korea > Trial Balance South Korea

Ledger for Balance Audit Trial (S_P99_41000327)Accounting > Financial Accounting > General Ledger > Periodic Processing > Closing > Document > Balance Audit Trial > All Accounts > General Ledger from the Document File

Balance Sheet (S_ALR_87012284)Accounting > Financial Accounting > General Ledger > Information System > GL Reports > Balance Sheet/P&L Account/Cash Flows > General > Actual/Actual Comparisons > Balance Sheet/Profit & Loss Statement

Drilldown Report P&LAccounting > Financial Accounting > General Ledger > Information System > GL Reports > Balance Sheet/P&L Account/Cash Flows > General > Actual/Actual Comparisons > Actual/Actual comparison for year

Vendors List (S_ALR_87012086)Accounting > Financial Accounting > Accounts Payable > Information System > Reports for Accounts Payable Accounting > Master Data > Vendor List

Vendor Age Analysis (S_ALR_87012085)Accounting > Financial Accounting > Accounts Payable > Information System > Reports for Accounts Payable Accounting > Vendor Items > Vendor Payment History with Open Item Sorted List

List of Down Payments to Vendors (S_ALR_87012105)Accounting > Financial Accounting > Accounts Payable > Information System > Reports for Accounts Payable Accounting > Vendor Items > List of Down Payments open at key date - Vendors

Vendors Ledger (S_ALR_87012103)Accounting > Financial Accounting > Accounts Payable > Information System > Reports for Accounts Payable Accounting > Vendor Items > List of Vendor Line Items

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Asset History Sheet (AR02) Schedule 6 Depreciation ChartInformation System > Accounting > Financial Accounting > Fixed Assets > Asset History Sheet

Simulation of Depreciation for Future Years (S_ALR_87012936)Accounting > Financial Accounting > Fixed Assets > Information System > Reports on Asset Accounting > Depreciation Forecast > Depreciation on Capitalized Assets (Depreciation Simulation)

Closing ProcedureMonth-end closing activities (Preparatory activities)HR – Payroll posting 57MM – Maintain GR/IR clearing account 12-13

Material valuations 14-15Close material ledger 17Close material master 18-19

SD - Goods issues/invoices(Verify that all postings for the period have been generated)FI – Accrual/Deferral postings 44-45

Recurring Entries 46Depreciation posting 5Interest Accounting > Financial Accounting > General Ledger > Periodic Processing > Interest Calculation > Balances (F.52)AuC settlement 48Close old period & open new period 63

CO - Cost Centers: 51- Imputed costs, Distribution and assessment, indirect activity allocation, Calculate actual activity prices and update allocationsInternal Orders: 47, 50- Overheads- Settlement (For external settlement to AA or FI, re-open appropriate GL A/cs)Production orders: 49- Overheads- WIP calculation- Variance calculation- SettlementProfitability Analysis: 52- Cost center assessments- Activity based costing- AllocationsLock old posting period for Controlling transactions 53

Month-end closing activities (Financial closing)FI - Re-open periods for adjustments 63

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CO/FI reconciliation postings (Cross-company code, cross-business area and cross-functional area flows within CO are posted to FI) 54-55Foreign currency open item valuation 39Accounting > Financial Accounting > Accounts receivable > Periodic Processing > Closing > Valuate > Valuation of Open Items in Foreign Currency (Foreign currency balance sheet account valuation 43Accounting > Financial Accounting > GL Accounts > Periodic Processing > Closing > Valuate > Valuation of Open Items in Foreign Currency (F.05)FI/PCA Balance sheet adjustment 67-70FI/CO-PA Profit and loss adjustment 71Final closing of posting periods 63Final Reporting:- Compact document journal 72- Financial statements 2-4- Taxes on sales/purchases 82- Balance audit trial 74-75

Year-end closing activities (Preparatory activities)In addition to the regular month-end closing activities for the final period of the fiscal year to be closed, the activities to be performed for year-end closing process include:MM - Physical inventory procedure (Year-end or as required) 26

Inventory valuations – lowest value determination, LIFO, FIFO (After closing the postings in MM for the fiscal year) 20-25

CO - PP – Material valuation from new material cost estimates 16FI - FI - Open new fiscal year 63

AR/AP – Balance confirmations 29-30AA – Fiscal year change 8FI – Balance carryforward 64AA – Valuations & Capital investment subsidies (after AA postings completed for fiscal year)AA – Year-end closing 9-10AR/AP – Close fiscal year 63

Year-end closing activities (Financial closing)FI - Analyze GR/IR postings 27

Regroup receivables/payables 41General adjustmentsFinal fiscal year closing 63GL – Account balances – old fiscal year to new fiscal year (Reconcile carry forward balances with prior year final balances)FI/CO/AA – Final reporting (same as monthly + Account balances year-end)AA – Asset history sheet 11Accumulated balance audit trial 76-79

Month-end closing process: Pre-closing activities, which begin in the old month, include:

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o Technical – Open new accounting period (FI)o FI – Enter accrual/deferrals, process recurring entries and bad debt

expense in AR, post depreciation and interest expenseso MM – Maintain GR/IR clearing account, post material revaluationso HR – Post payroll expenseso SD – Post goods issues for deliveries to customerso Technical – Close old month (MM), close subledgers (FI), preliminary

close of GL (FI) Internal closing activities include CO allocations and repostings, locking the old

posting period in CO, and re-opening the GL for adjustment postings Closing activities for external purposes include:

o CO – Reconciliation posting to FI (for cross-organizational unit CO postings)

o FI – Foreign currency valuations and financial statement adjustmentso Technical – Final closing of the old periodo FI/CO – Create external and internal reports

Year-end closing process:In addition to the regular month-end closing process for the final period of the fiscal year, the activities to be performed for year-end closing process include: Pre-closing activities, which begin in the old month, include:

o Technical – Open the first accounting period of the new fiscal year (FI)o MM – Perform physical inventory count (may be performed on up to a

monthly basis)o PP/CO – Update product cost estimates (may be performed more

frequently)o MM – Lowest value determination and LIFO/FIFO valuationo AA – Asset valuations and investment supporto FI – Balance confirmations for customers and vendorso Technical – Fiscal year change (AA) and balance carry forward (FI)

Closing activities for external purposes include:o FI – GR/IR clearing account analysis, receivables/payables regrouping,

reconciliation of prior year to new year, and other adjustment postingso Technical – Final closing of the old period (AR/AP and GL)o FI/CO – Creating external and internal reports

Class Notes: Vendor & Customer Balances to be carry forward to next year Perform year end closing for Assets GL Balances to be Carried Forward (P&L Bal Retained Earnings A/c. & BS

Closing bal to become Opening) Copy Document Number Ranges for next year Open Posting Periods

Vendor & Customer Balances to be carry forward to next year (F.07)

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Accounting > Financial Accounting > Accounts Payable > Periodic Processing > Closing > Carry Forward > Balances

Execute Year End Closing for Assets (AJAB)Accounting > Financial Accounting > Fixed Assets > Periodic Processing > Year End Closing > Execute

GL Balances Carry Forward (F.16)Accounting > Financial Accounting > General Ledger > Periodic Processing > Closing > Carry Forward > Balances

Copying Document Number Ranges for next year (OBH2)SPRO > Financial Accounting > FAGS > Document > Document Number Ranges > Copy to Fiscal Year

Open Posting Periods (OB52)SPRO > Financial Accounting > FAGS > Document > Posting Periods > Open & Close Posting Periods

Cross Company Code TransactionsA cross company code transaction involves 2 or more company codes in one business transaction. For a cross company code transaction, the system will post a separate document in each of the company codes involved.

Examples for cross company code transactions are: One company code makes purchases for other company codes (Central

Procurement) One company code pays for other company codes (Central Payment) One company code sells goods to other company code

Steps: Create Clearing Accounts in each of the company codes. The Clearing Accounts

may be GL Accounts, Customer or Vendor Accounts. Configure the Automatic Postings for Cross Company Code Transactions by

assigning Clearing Accounts for both the company codes.

Creation of Clearing Accounts in both the Company Codes (FS00)In Company Code # 1 In Company Code # 2

Account Group Current Assets Current LiabilitiesBalance Sheet Account Balance Sheet Account

Short Text Clearing with CC2 Clearing with CC1Long Text Clearing with Company Code 2 Clearing with Company Code 1Account Currency INR INR

Only Bal in Local Currency Only Bal in Local CurrencyLine Item Display Line Item Display

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Sort Key 001 001Field Status Group G001 G001

Post Automatically Only Post Automatically Only

Configure Automatic Postings for Cross Company Code Transactions (OBYA)SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Prepare Cross Company Code Transactions

Company Code 1: Give CC1Company Code 2: Give CC2 & Enter

Under Posted in: Company Code 1 Cleared against: Company Code 2 Receivable Payable Debit Posting Key: 40 Credit Posting Key: 50Account Debit: Clearing A/c with CC2 Account Credit: Clearing A/c with CC2

Under Posted in: Company Code 2 Cleared against: Company Code 1 Receivable Payable Debit Posting Key: 40 Credit Posting Key: 50Account Debit: Clearing A/c with CC1 Account Credit: Clearing A/c with CC1

Cross Company Code Invoice Posting (FB60)Accounting > Financial Accounting > Accounts Payable > Document Entry > Invoice

Display Cross Company Code Document (FBU3)Accounting > Financial Accounting > Accounts Payable > Document > Cross CC Transaction > Display

Reverse Cross Company Code Document (FBU8)Accounting > Financial Accounting > Accounts Payable > Document > Cross CC Transaction > Reverse

Cash Journal The Cash Journal is a Bank Accounting subledger for the management of cash in

a business. It can be used independently of other posting transactions. Cash journal entries are saved locally in the cash journal subledger. All balances

are automatically calculated and displayed. The cash journal entries saved are posted to the GL.

Create GL Account for Cash Journal SPRO > Financial Accounting > Bank Accounting > Business Transactions > Cash Journal > Create GL Account for Cash Journal

OrAccounting > Financial Accounting > General Ledger > Master Records > Individual Processing > Create (FS00)

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Create Account ‘Petty Cash for Cash Journal’ under Current Assets and select ‘Post Automatically only’

Set up Cash JournalSPRO > Financial Accounting > Bank Accounting > Business Transactions > Cash Journal > Set up Cash JournalNew EntriesCompany Code: XYZCash Journal ID Number: give a numberAccount Number: Petty Cash GL Account NumberCurrency: INRDoc Type GL Posting: ABDoc Type Payment to Vendor: KZDoc Type Payment from Vendor: KZDocument Type Payment from Customer: DZDocument Type Payment to Customer: DZName: Give a name for the Cash Journal

Define Number Range Intervals for Cash Journal DocumentsSPRO > Financial Accounting > Bank Accounting > Business Transactions > Cash Journal > Define Number Range Intervals for Cash Journal Documents

Create Accounting Transactions to be used in Cash JournalSPRO > Financial Accounting > Bank Accounting > Business Transactions > Cash Journal > Create, Change, Delete Accounting TransactionsCreate different types of transactions like Expense(E) transaction, Revenue(R) transaction, Cash Transfer from Cash Journal to Bank(B) transaction, Cash transfer from Bank to cash journal(C) transaction, Customers incoming/outgoing payment(D) transaction, Vendors incoming/outgoing payment(K) transaction

Enter Transactions in Cash JournalAccounting > Financial Accounting > Banks > Input > Cash JournalEnter the transactions and save.Post the entries to the subledger, by pressing ‘Post’ pushbutton.To view the Accounting Documents ‘Go to FI Follow-on Documents’

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Integration

MM FI Integration

Material TypesROH Raw MaterialERSA Stores & SparesVERP Packaging MaterialFERT Finished GoodsHALB Semi Finished GoodsHAWA Traded GoodsDIEN Services

ViewsBasic View, Purchase View, Production View, Sales View, Quality View, Accounting View, Costing View, MRP View, Plant View etc.

Creation of Material Master (MM01)Logistics > Material Management > Material Master > Material > Create General > Immediately

Accounting Views (MM03)Fields: 1) Valuation Category 2) Valuation Class 3) Price ControlValuation Category: Batch Classification & AverageValuation Class: For Raw Material Indigenous and Imported

Rules: The Material Master is to be created wrt Material Type In the Material Master we assign the Valuation Class For Valuation Class we assign the GL Masters based on the type of Transaction

Price ControlSPRO > Material Management > Valuation & Account Assignment > Define Price Control for Material TypesS – ‘Standard Price’, will be used for ‘Finished Goods’V – ‘Moving Average’, will be used for ‘other than Finished Goods’

MM FLOW1. Purchase Requisition – No FI Entry2. Enquiry, Quotation and Price Comparison – No FI Entry3. Purchase Order – No FI Entry4. Purchase Order Release Procedure – No FI Entry

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5. Goods Receipt (Will be taken wrt PO) - Inventory RM Local A/c. Dr (BS – CA) BSX To GR/IR Clearing A/c. (BS – CL) WRX

6. Invoice Verification – GR/IR Clearing A/c. Dr (BS – CL) WRX To Vendor A/c. (BS – CL) P.O.

7. Consumption – RM Consumption Local A/c. Dr (P&L Dr) GBB-VBR To Inventory RM Local A/c. (BS – CA) BSX

8. Production Receipt – Inventory FG A/c. Dr (BS – CA) BSX To Increase/Decrease in Stocks FG (P&L Cr) GBB-ZOB

9. FG Delivery – Increase/Decrease in Stocks FG Dr (P&L Cr) GBB-VAX To Inventory FG (BS – CA) BSX

10. Billing – SD Area

FI MM Integration Settings (OBYC)SPRO > Material Management > Valuation and Account Assignment > Account Determination > Account Determination without Wizard > Configure Automatic Postings (OMWB)Cancel the existing PlantSelect ‘Account Assignment’ Button (OBYC)

SD FI IntegrationSD FLOW1. Enquiry/Quotation – No FI Entry2. Sales Order – No FI Entry3. Delivery – Without PGI & With PGI

Increase/Decrease in Stocks A/c. Dr GBB – VAX To Inventory FG BSX

4. Billing - Party A/c. Dr SOCommission A/c. Dr ERS To Sales – Export A/c. ERL To Freight Collection A/c. ERF

Pricing Procedure VK11 Condition Type: KOFIMaterial ERSRegion to Region ERLTax Code ERF

SD FI Integration (VKOA)SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Integration > Sales and Distribution > Prepare Revenue Account Determination

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Double Click 003 Material Group Account KeyApplication Area: V Sales/DistributionCondition Type: KOFIAccount Assignment Goods Account KeyTrading Goods ERL RevenueFinished Goods ERS Sales DeductionsServices ERF Freight Revenue

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