UNIT-1 BASIC SETTINGS

Organizational Units in SAP ERP Financials Let us look at the important organizational units in Financial Accounting:The Client is the highest level in the SAP ERP system hierarchy. Specifications or data affecting all organizational units in SAP ERP applications are entered here. This ensures that the user does not have to enter the same information more than once. An example of this is currencies. Each client in an SAP ERP system is an independent unit having separate master records, tables and data. Also remember, in order to logon to a system, you need to enter a client key and have a user master record in the client. The next organizational unit is the Company Code. The company code is an independent balancing or legal accounting entity. It is the minimum structure required in SAP ERP Financial Accounting. Since most government and tax authorities require the registration of a legal entity for every company, a separate Company Code is usually created for every country. For example, if your company has offices in different countries, each country will have a Company Code. The Business Area is the third unit. Business Areas are freely definable and are used to create separate financial statements. They can be used across Company Codes and are for internal purposes. Remember, business areas are not assigned to company codes, and their use is optional. Creating a Company Code The simplest way to create a Company Code is to copy an existing one, and then make the necessary changes. A Company Code is defined by a four-digit alphanumeric key. When copying an existing Company Code, the following data are copied:Definition: This includes the 4 character key to identify the company code and other data like name, city, address and country.

Global parameters: These include the Chart of Accounts, Fiscal Year and other Default settings.

You also get about 315 customizing tables.

In addition, you get the Accounts and Company code segment. These refer to the General Ledger accounts.

Finally, you get the Account Determination. Account Determination is the process of configuring the system such that accounts are automatically determined and updated as a result of a business transaction elsewhere. Due to the integrated nature of SAP ERP, Account Determination plays a very important role. For example, when a goods receipt is posted in Materials Management, FI is automatically updated.

The SAP system recommends this procedure as many tables already have the SAP default data, which only needs adjustments if required. Company Code Let us now look at how to create a Company Code.You need to create a new company code with a 4 character key and a name that you choose.In the Copy method, you can copy the template that comes with any SAP system. Once this is done, the following changes have to be made. Name of the company Enter the name of your Company here.

Address This data is needed for correspondence and is recorded on evaluation reports.

Currency A currency is defined for every company code. The defined Currency is considered as the Companys Local Currency. Any other currency is regarded as its Foreign Currency. The system translates amounts posted in Foreign Currencies into the Local Currency. Remember that SAP ERP always tracks the amount in the currency entered at the document level and in local currency.

Next, you edit the Language key. This is required to enable the system to automatically create texts in the correct language.

City and Country key This is required to specify the home country. It is important for foreign payment transactions. Based on this selection, other countries are interpreted as foreign. The system also supports different address formats for foreign correspondence.

Country Templates You can use the country templates that SAP offers in any new system as a tool to create your new company code. You can configure business activities for a specific country. A country template contains cross application, FI, CO and other country-specific templates for other areas.Company code 0001 is a template in SAP ERP standard system. It is for a general company code with chart of accounts INT and no specific country specifications. To create a company code for a country that has a country template you can use the country installation program to copy country-specific tables from the country template to the company code. This company code is then configured for the corresponding country. Then you copy this company code into your new company code. International Accounting Requirements SAP supports various International Reporting requirements. The slide depicts the SAP recommended approach and alternative approach available in SAP ERP Financials to meet these reporting requirements. Controlling Area A controlling area represents a closed system for cost accounting purposes. It may include single or multiple company codes that may use different currencies. These company codes must use the same operative chart of accounts. All internal allocations refer exclusively to objects in the same controlling area.Ledgers and Ledger Approach in New General Ledger Accounting A ledger is a section of a database table. A ledger only contains those dimensions of the totals table that the ledger is based on and that are required for reporting. In the Ledger Approach, you can use several ledgers in parallel. This allows you to produce financial statements according to different accounting principles. There is exactly one leading ledger in every client and only the leading ledger is integrated with CO. This makes it important to decide which accounting principle is depicted in the leading ledger. The non-leading ledgers are parallel ledgers to the leading ledger. Any number of parallel ledgers can be defined as per requirement. Account Approach vs. Ledger Approach The ledger approach offers various advantages over the account approach:You maintain a separate ledger for every accounting principle.

You can use different fiscal year variants in this scenario.

The number of G/L accounts is manageable.

However, the disadvantage of the ledger approach is that the data volume increases due to the other ledgers.Scenarios - Definition and Assignment A scenario defines which fields are updated in the ledgers during a posting; that is, for each ledger, you define which fields are filled with posting data from other application components. SAP provides various scenarios such as cost center update, preparation for consolidation, business area, profit center update, segmentation, and cost-of-sales accounting. You assign the desired scenario to your ledgers.The Variant Principle The variant principle is a three-step method that is used to assign special properties to one or more SAP ERP objects.Instead of defining an object, say Fiscal year, every time you create a new company code, you can define a variant for the fiscal year, say K4. Then you can determine the values for this variant. Finally you can assign the variant K4 to one or several of SAP ERP objects, say the company codes in which you use this fiscal year. The main advantage of using variants is that it is easier to maintain properties which are common among several business objects.The Fiscal Year The fiscal year variant defines the relationship between the fiscal year and the calendar year.It can be defined as year-independent, or year-dependent (or year-specific).In a fiscal year we post transactions into periods in the fiscal year. Each of these periods is known as a posting period.Thus, in a fiscal year or a calendar year, January would represent the first posting period.We, therefore, define posting periods and what are known as special periods in a fiscal year variant.In a fiscal year variant, you can include a maximum of 16 periods that may consist of 12 normal periods and 4 special periods.Special periods are optional. They are normally used for closing postings so that you can compare the closing months with the other periods in the year. Suppose you have 12 posting periods and 4 special periods, you can use the special periods in different ways:Period 13, or the first special period can be used for Accrual and Deferral postings.

Similarly, Period 14 can be used for Audit postings.

Period 15 can be used for General Meeting of shareholders.

Period 16 can be used for Adjustment postings.

In order to post a special period, you need to use a posting date belonging to the last normal posting period. Also, the special period must be open for posting.Note that opening and closing of posting periods are not dealt with in detail here.Remember that posting periods are defined in the fiscal year variant.Year-Independent Fiscal Year Variant A fiscal year variant can be a calendar year or a non-calendar year.If the variant uses the same number of posting periods, and if each period always starts and ends on the same day every year, such a variant is known as year-independent. In a calendar year variant, the posting periods will correspond to the months in the year. Thus, a calendar year variant must have 12 posting periods. You can assign up to a maximum of 4 special periods. In a non-calendar year, you create posting periods by assigning end dates to each period. You can have from 1 to 16 posting periods. If the non-calendar year does not start on January 1st, then the periods of the year that belong to the previous or the coming fiscal year must have an indicator 1 or +1. The example on the right shows a non-calendar year with 6 posting periods from April to March. The months January to March therefore still belong to the old fiscal year and have the indicator -1. Year-Specific Fiscal Year Variants Let us take a closer look at the year-specific fiscal year variant. A year-specific fiscal year variant is one wherethe start and end dates of posting periods for some years are different from that of other years; or

some fiscal years use a different number of posting periods.

A shortened fiscal year is one which has fewer posting periods than others. Such a fiscal year is always year-specific, since it represents a year related exception. This could be required if closing has to be carried out before the end of the normal fiscal year. Examples of this would be where the company needs to change the beginning of the fiscal year, or the company is being sold out. We would have to define the shortened fiscal year and its number of posting periods before we can define the period dates. For this year, we can only assign a lower number of posting periods. Currencies and Exchange Rate Types Let us look at how currencies and exchange rates work. Currencies are identified in the system through currency keys. For example, USD represents the American Dollar.Exchange rates are maintained between currency pairs using exchange rate types. Examples of exchange rate types are B for Bank selling rate, G for buying rate and M for average rate. The average rate is the average of the buying and selling rates. Remember that the exchange rate type M must exist in the system since the system uses this for currency translation during document posting. Different exchange rate types can be used for different purposes, such as valuation, translation or planning.Translation Ratios When more than one currency is used, there is a need to maintain a relationship between the currencies.This relationship is maintained using translation ratios per exchange rate type. This is usually done only once. Translation ratios can be maintained on the basis of time period as inflation can heavily influence the relationship between two currencies. Maintaining Exchange Rates SAP ERP Financials offers tools to maintain exchange rates in the system, and to avoid day-to-day maintenance work.We can use one of the following tools for each exchange rate type:Inversion

Inversion is the oldest exchange rate tool and is seldom used today. If you have maintained an exchange rate for EUR to USD and are using inversion, you do not need to maintain a separate rate for USD to EUR. The system will calculate it for you. Base currency

Assume that you have maintained a rate for USD to EUR and for USD to GBP. Now if you have marked USD as the base, or reference currency, you do not need to maintain a separate exchange rate between EUR and GBP. The system will calculate it via the USD rates. Exchange rate spreads

The Exchange rate spread is the difference between the selling rate and the average rate, and the average rate and the buying rate. If you maintain spreads, you do not need to maintain the buying and selling rates separately. The system can calculate them from the average rate and the spread. Exchange Rate Spreads You have seen what exchange rate spreads are. Let us now look at a combination of base currency and exchange rate spreads. A very efficient combination of exchange rate tools:Using a base currency for the average rate (i.e., M).Using spreads to calculate the buying and selling rates (i.e., B and G).Base Currency A base currency can be assigned to an exchange rate type. Once this is done, you have only to maintain exchange rates for all other currencies with respect to this base currency. A translation between two foreign currencies is calculated through the base currency, that is, by combining two exchange rates. Direct/Indirect Quotation of Exchange Rates Let us look at the difference between direct and indirect quotation of exchange rates.Direct quotation represents a currency value expressed in units of the local currency per unit of a foreign currency.On the other hand, indirect quotation represents a currency value expressed in units of the foreign currency per unit of the local currency. How you define the exchange rates depends on the market standard or the individual business transaction. The use is neither country-specific nor application-specific. For each currency pair, you define which quotation is the standard. If an exchange rate is maintained without using the standard, the rate will be highlighted. Worklists for Maintaining Exchange Rates When exchange rate tables are maintained by more than one employee, as may be required, several problems can occur. This is circumvented by SAP. Here, you can define worklists and then maintain the exchange rates using the transaction TCURMNT. There are several advantages in the SAP method: You can maintain just the relevant exchange rates.

These can be maintained via worklists.

You can assign authorizations for these worklists.

Design of Exchange Rate in Different Quotations Exchange rates can be entered by the user as a direct or an indirect quotation.Two prefixes can be set that can be used to differentiate between direct and indirect quotations during input and display.The prefix has to be entered before entering the exchange rate.This means that if there is a prefix defined for each, you are forced to consider which prefix to enter, and therefore which rate to consider during input, thereby eliminating errors.

UNIT SAP NAVIGATOR

Getting Started with SAPThere are a number of different versions of SAP. Depending on the version your company has implemented, your SAP screen may look slightly different from what you see in this course. Typically, SAP components are accessible using a general front-end program called the SAP GUI (or Graphical User Interface). The SAP GUI is the standard program for accessing almost all SAP solutions. The SAP GUI program connects your computer with a specific SAP system. For starting SAP GUI, SAP provides a program called SAP Logon. When you are working with SAP, it is important to recognize the proper way to access and exit the system. Let us look at how this works with SAP GUILogging On to SAP Alisa needs to log on to the SAP system. She can do so by double-clicking the SAP Logon icon on her desktop. The system then opens the SAP Logon window. She then selects the system that she wants to access and clicks Logon. Alisa knows that for logging on to SAP, she needs a User name and Password. She also knows that she has the option to select a logon language during the logon process.Since Alisa is logging on for the first time, her system administrator gives her an initial password. During the process, she will be prompted to enter a new password, which she can use for logging on in future. Changing Your Password in SAP Alisa is required by IDES security standards to change her password every 30 days. To change her password, she can click New Password on the applications toolbar. The system opens a new window, in which she has to enter a new password, and then re-enter it to confirm, as she did while logging on to SAP for the first time. Logging Off from SAP When Alisa has finished using the SAP system, it is important for her to log off from the system.Logging off ensures that she is not unnecessarily using a session and also protects her company from the risks associated with leaving an open session unattended. The preferred method for logging off the SAP system is to use the Log off icon. The system then displays a dialog box indicating that any unsaved data will be lost. She is then prompted to confirm that she wants to log off. She may click Yes to exit the SAP system. Navigation Components The SAP system contains several key components that provide options for navigation thereby making your work in SAP easier. These components are menu bar, standard toolbar, title bar, application toolbar, and status bar. The SAP Easy Access screen is the initial screen displayed after logging on to the SAP system. This screen is the user-specific point of entry into the SAP system and serves as a gateway to the rest of the system. Main Navigation Icons As she continues to explore the SAP system, Alisa notices that there are standard navigation icons.She investigates further to determine the function of each of these icons.Navigating the Tree Structure Alisa finds that the Standard SAP Tree is a tool for accessing the SAP transactions. The Standard SAP Tree displays a hierarchy of the menus available in the SAP system. Using the tree is one of the best ways to become familiar with the system. The elements of an SAP Tree are the SAP menu icon, work areas, arrows, folders, and transactions. Navigation within the standard tree is referred to as menu path navigation. Alisa navigates by clicking on the arrows to drill down through the folders to the desired transaction. She can locate a variety of transactions by navigating in the SAP Easy Access menu. The standard transactions that are available include Create, Change, and Display. Fields in an SAP Screen Fields are the areas on a screen that contain specific data used in the SAP database. They contain items, such as information about customers, employees, vendors, equipment, and orders. Information can be entered in the form of text, numbers, dates, or codes. Some entries can also be in the form of ranges that may be used for searching within the data. An advantage of SAP is that once you enter data, it can then be shared among various screens, transactions, and applications.Alisa observes that a tab page comprises several screens organized as tabs for clarity and ease of access. She also notices that different fields require different types of input, such as an input field, checkbox, and a radio button. Fields in an SAP Screen (Continued) Alisa observes that the different fields on an SAP screen may be mandatory, or optional, or may automatically display data. The three types of input control for fields on an SAP screen are mandatory display, or optional. A field value can default to a mandatory or optional field. Navigating between Fields Alisa finds that she can navigate between fields on a screen by simply clicking a desired field. She discovers that she also can use the keyboard to move between fields. To move between fields, you can use the up and down arrow keys.

To advance to the next field, you can use the Tab key.

To move back to the previous field, you can use the Shift and Tab keys

To move within a field, you can use the left and right arrow keys.

Multiple Sessions in SAP Alisa finds that she can use a session to create or change data while using another session to display data. She can also copy data between sessions. This is especially helpful when she is in the middle of a transaction and needs to verify information in another transaction to complete the former. Navigating between Sessions Alisa finds it useful to minimize the sessions that she is not using. She can reopen a minimized session using the Windows status bar. She also finds that using the Alt + Tab Windows function allows her to toggle between the open sessions. The chosen session becomes the active window by moving in front of all the other session windows. Also, she can create up to six sessions. While she is logged on to SAP, she can move between sessions without losing any data. However, before ending a session, she must save any data that she wants to keep. Help Functions and Perzonalizing SAPHow to Use F1 Help When you are working with SAP, it is important to recognize when you need help. You must also identify the type of help that you need. This is the first time Jean-Pierre is using the SAP system. As he is entering employee master data, he encounters a field labeled Infotype. He does not know what data this field requires. Jean-Pierre has recognized that he needs help to enter data correctly in the Infotype field. This means he needs field-specific help. With SAP, this is easy to get. To get help, Jean-Pierre needs to click to place his cursor in the required field and then use the function keys at the top of his keyboard. Jean-Pierre may press F1 to see the descriptive text and technical information about the Infotype field. The F1 help provides more information about a field, menu, function, or message. Finding Field Values with F4 Help Jean-Pierre has obtained information on the entry to be made in the Infotype field. He now needs to locate a particular Infotype in the SAP system. This is where F4 help can be very useful. Searching for Field Values The F4 help may display an extensive list of field values allowed for the Infotype field.It can be cumbersome to scroll through the long list to locate the value that you are looking for. To locate a specific value for a field, you can use the F4 help and perform a search. To execute the search, Jean-Pierre enters a partial text and an asterisk (*) and clicks Continue.How to Use a Wildcard Search Jean-Pierre has accessed the F4 help in order to view the list of allowed values for the Infotype field. The results of any search can be limited by entering restriction information, which consists of an * and partial text. The partial text is a part of the value that you are searching for. This directs the search to return only those results that contain the partial text. This is referred to as wildcard search. In order to transfer the value into the entry field, Jean-Pierre double-clicks the infotype he needs.Three Types of Status Messages As you are working in SAP, you can see messages appear on the status bar of your window. The status bar provides information on the transaction or task on which you are working. It is important to understand what these messages mean and how you must respond to them. There are three types of status messages. Jean-Pierre has already seen each type of message during his first week of using SAP. You can see the messages that he received here. How to Use the SAP Library and Application Help Jean-Pierre accesses SAP Library by selecting Help SAP Library. The SAP Library is an online collection of all SAP documentation available for your SAP system. It is a robust and readily available tool that helps you learn more about SAP. The library provides information on many SAP topics such as how to use system functions, system architecture concepts, examples of process configuration, and possible user errors and their consequences. It also contains tips and tricks to help you perform common tasks quickly and easily. Jean-Pierre uses the SAP Application Help to obtain information on maintaining HR master data. For this, he opens the Maintain HR Master Data screen, and from the menu bar chooses Help Application Help. How to Use the SAP Library and Application Help Jean-Pierre accesses SAP Library by selecting Help SAP Library. The SAP Library is an online collection of all SAP documentation available for your SAP system. It is a robust and readily available tool that helps you learn more about SAP. The library provides information on many SAP topics such as how to use system functions, system architecture concepts, examples of process configuration, and possible user errors and their consequences. It also contains tips and tricks to help you perform common tasks quickly and easily. Jean-Pierre uses the SAP Application Help to obtain information on maintaining HR master data. For this, he opens the Maintain HR Master Data screen, and from the menu bar chooses Help Application Help. How to Use the Glossary If Jean-Pierre encounters an unfamiliar term while reading about sales orders in the SAP Library, he can use the glossary to discover its definition. To find out the meaning of sales area, Jean-Pierre first clicked Glossary to open the glossary, selected the letter S, scrolled down on the list displayed for the letter S where the term is located, and finally, clicked the term sales area. What is a Favorite? Jean-Pierre finds that he is using the same SAP transaction codes many times during the day. He determines that it would be easier if he could access these transaction codes without following the standard tree menu path. Jean-Pierre notices that he can make his work more efficient by creating Favorites for his regular transactions. From the Favorites folder you can launch transactions, document files, and web addresses. How to Use Favorites Jean-Pierre can create a Favorite by clicking and dragging an executable menu item to the Favorites menu. He can also use the Add to Favorites icon or choose Favorites Add from the menu bar. He can also delete a Favorite using the Delete Favorite icon. Creating Web Links Jean-Pierre's SAP skills have continued to improve. There are several web sites that he uses on a regular basis to do his job. He finds that he can create links to those web sites and launch them directly from his Favorites folder on the SAP Easy Access screen. After accessing the web site, he can return to the SAP system by closing his internet browser. What Can I Customize? As you work with SAP, you may need to personalize your user interface. You can changethe date format,

decimal notation,

the printer that you regularly use,

your logon language,

current time zone, and

the transaction that is displayed when you log on.

Most users are likely to modify only the first three items on this list according to their personal preference. Any item that you do not change remains set to the system default. These settings can be modified by choosing System User Profile Own data from the menu bar. How to Customize Local Layout Jean-Pierre has selected System User Profile Own data from the menu bar, and the Maintain User Profile screen is displayed. In the Defaults tab page, he can customize a number of layout options. The selections made by Jean-Pierre in the Defaults tab page become his default settings. Once saved, they will appear in the manner in which he has chosen them, whenever he logs on to SAP. Let us look at the settings that Jean-Pierre can modify: Start MenuLogon LanguageOutput DevicePersonal Time ZoneDecimal NotationDate FormatSetting Options for Help and Status Messages You can customize SAP by changing the way help and status messages are displayed.For this, you need to choose the Customizing of Local Layouts icon and then select Options to display the Options window. What Options Can I Modify? The Options window displays the options that you can modify.The options that you are most likely to change are located under the General tab. They determine the manner in which the help and status messages are displayed. You can modifyQuick Info,Beep at Message, andDialog Box.ADVANCED NAVIGATIONUsing Transaction Codes The SAP system associates technical names with transactions. Every transaction or function in the system has a unique technical name referred to as a transaction code or Tcode. The slide depicts some transaction codes and their names. Transaction codes can be used to provide a more direct route for launching transactions than navigating the standard SAP tree.The first step in working with transaction codes is learning which codes are used for the transactions you want to perform.Displaying Transaction Codes In the SAP Easy Access screen, Vera can view transaction codes by setting the option to have the codes displayed on the SAP standard tree structure. She clicks Extras on the menu bar and selects Settings from the drop-down list. This opens the Settings dialog box. She clicks Display technical names and then clicks Continue (Enter). The system will then collapse the SAP standard tree structure. As she navigates through the tree, she will see the transaction codes next to the transactions. Vera can double-click on any transaction code or name to launch that transaction. Entering Transaction Codes in the Command Field Using transaction codes provides another option for navigation in the SAP system. Vera finds that she can enter a transaction code in the command field to go directly to a transaction or function from the Easy Access screen. With this method, transactions can be accessed without navigating the SAP standard tree structure. Components of the Command Field The command field includes a command list that holds several of the transaction codes most recently accessed via the command field. This allows for those transactions to be easily accessed again at a later date. To display this history, Vera will click on the command list. She can click on a transaction code from the list and that code will populate in the command field. She can then click Enter to launch the transaction. Using Slash Commands If you were to enter a transaction code by itself in the command field on any screen other than the Easy Access screen, you would not be able to launch that transaction. However, if you enter a "/" along with the appropriate command and transaction code you can launch transactions from other transaction screens. This is helpful because you can go directly from one transaction to another without having to return to the Easy Access screen. "/n" and "/o" are examples of slash commands. You can end a session using /n. You can use /o to start another transaction in an additional session in one step. Slash Commands Without Transaction Codes Using a slash command without indicating a transaction code in the command field has additional functions.Entering "/o" in the command field and clicking Enter will show an overview of the sessions you currently have opened.

Entering "/n" in the command field and clicking Enter will end the current transaction.

ADVANCED FEATURESChanging User Defaults Now that Vera has basic knowledge of using SAP, she wants to make use of certain advanced features that will help her save time. To maintain her user profile in the system, she chooses System User Profile Own Data. She can make the desired settings in the Address, Defaults, and Parameters tab pages. Once she saves her data, these settings will remain valid until she changes them again. Finding a PID In F1 field-specific help, there is an icon for Technical Info. This window contains the parameter identifier of a field (or PID), along with other technical information. A field can be filled with proposed values from SAP memory using a parameter ID. Once you know the PID of a field, you can assign a default value to automatically populate that field whenever it appears in a transaction. This change is made for your user profile only (it does not change the value of the field for other users.) In this example, Vera wants the default value 99 to appear in the Country Grouping field, whenever it is displayed. She pressed F1 and chose the Technical info icon in the F1 help window. As you can see, the PID for the Country Grouping field is MOL. How to Assign a PID to your User Profile Vera can now assign the specific default data to a particular PID for her user profile.She follows the menu path System User profile Own data to access the Maintain User Profile screen and chooses the Parameters tab page. She enters the PID for the field in a blank Parameters field and then enters the value 99 in the corresponding Value field. Vera saves the changes. The new default value will take effect only after she logs off and logs on again to SAP.Result: Once the PID is assigned to her user profile, whenever Vera uses a transaction that includes the country grouping field, it will be filled in with the data 99. A Caution Regarding PIDs The data Vera entered as a default value for the Country Grouping PID will remain assigned until she goes back to change it. This is true for all PIDs you assign to your user profile. For example, if Vera does not want to set 99 as the country grouping, she should manually change the PID for MOL. If she leaves the field blank, the system will automatically take 00 (or blank) for the country grouping. Hence, she must either specify country grouping or remove the entire row from the user parameter tab.Using SAP Reports To display or analyze information from the SAP database, you execute a report. In many cases, the SAP system automatically executes a report. Sometimes, however, you may need to execute a report yourself. Some reports are simply the lists of documents, while other reports are linked directly to tasks in the SAP system.List ReportAnalysis ReportReports that are directly linked to a task sometimes use the data already entered on your screen as selection criteria. This means you do not have to enter selection criteria when the report is executed.