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Basic Settings & GL

Creation of Company SPRO > 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 Code SPRO > 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 Company SPRO > Enterprise Structure > Assignment > Financial Accounting > Assign Company Code to Company Creation of Business Area SPRO > 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. Business area balance sheets and income statements are used only for internal reporting purposes.

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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. 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

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

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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 Periods To define the periods those are open for postings. Define Document Types & Number Ranges (OBA7) SPRO > Financial Accounting > FAGS > Document > Document Header > Define Document Types Document 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 Accounts Tolerances: 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 Employees Tolerance Group for Employees is used to control the Upper Limits for Transactions & Allowed Payment Differences. Define Field Status Variant SPRO > Financial Accounting > FAGS > Document > Line Item > Controls > Maintain Field Status Variants

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The 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 step Copying: 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. Posting of GL Transaction (F-02)

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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/Unblock Blocking: Blocked for Creation Blocked for Posting Blocked for Planning Blocked for Posting (in Company Code)

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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 amount To change the date Select Document Header Button To 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 Documents
Sample 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: Creation of Number Range Group X2 and Numbers for Sample Document Template Creation of Sample Document Template

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

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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 > Execute To Post a Session (SM35) System > Services > Batch Input > Sessions

Accrual/Deferral Documents
To 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 Reason SPRO > 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 Management

GL 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 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.

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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

Reversals
Reversal 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 Reversal SPRO > 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) Accounting > Financial Accounting > General Ledger > Document > Reverse > Mass Reversal Cleared Item Reversal Reset & Reverse (FBRA)

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Accounting > Financial Accounting > General Ledger > Document > Reset Cleared Items (Select Resetting & Reverse)

Foreign Currency Settings

Currencies: 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 Type Standard Translation at Bank selling rate B Type Average rate M Type Historical 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) SPRO > Financial Accounting > FAGS > Document > Document Header > Overview (In Document Type specify the Default Exchange Rate Type)

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Foreign Exchange Revaluation

G 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 P Type Item Interest Calculation (for Customers & Vendors)

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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 terms o 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 rates o Define reference interest rate ID, effect from date and currency Time dependent terms o 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 rates o 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 determination o 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 & Dont 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 Account 0002 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
Reconciliation accounts are managed implicitly using Sub Ledger Open Item function.

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Posting Keys Vendor Debit: 25 Vendor Credit: 31 Document Types KR Vendor Invoice KZ Vendor Payment KA 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 Group Company 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 posting Tolerance 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 clerks 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 clerks 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 details Accounting > Financial Accounting > Accounts Payable > Account > Display/Change Line Items Vendor Account Display (FK10N)

Outgoing Payments
Define House Bank and Assign GL Account Number for the Account ID (FI12) SPRO > Financial Accounting > Bank Accounting > Bank Accounts > Define House Banks House 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 & Dont 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 vendors) behalf. At the time of Invoice Posting Service Charges A/c. To Contractors A/c. To TDS A/c. Dr. 100000 98000 2000

At the time of Advance Payment Posting Contractors 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 Posting SPRO > 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 Posting Base 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 Posting SPRO > 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 Posting Base 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 Codes SPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Calculation > Withholding Tax Codes > Define Withholding Tax Codes (Withholding Tax Code: Give a Code Base Amount Percentage Subject to Tax: 100% Calculation Withholding Tax Rate: Give the applicable Rate Postings Posting Indicator: 1 (Standard Posting Bank/Vendor/Customer Line Item reduced)) Define Formulas for calculating Withholding Tax SPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Calculation > Withholding Tax Codes > Define formulas for calculating Withholding Tax (Give Withholding Tax Type & Code Valid 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. 999999999 Withholding Tax: Give the applicable Rate) Assign Withholding Tax Types to Company Codes SPRO > 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 Tax SPRO > 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 Account

Assign 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 Discounts

Maintain 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 Payment Terms 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 Differences
Define 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

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Print programs Permitted currencies Payment methods / company code Define 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 Determination These 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: IN Payment Method: D (Any) Description: Check Payment Select Radio Button Outgoing Payments Select Radio Button Check Document Type for Payment: KZ Clearing Document Type: KZ Payment Medium Program: RFFOUS_C Name of the Print Dataset: LISTS Key in Code Line: 01 Payment methods in Company Code (OBVU) Minimum Amount: 1 Maximum Amount: 999999999 Check 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_CHCK Click Payment Advice Control Select Radio Button None 1 Rows Line Items: E1
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Select Radio Button Always Payment Advice All Company Codes (OBVU) Paying Company Code: XYZ Check on Separate Payment per Business Area Check on Maximum Cash Discount Paying Company Code (OBVU) Minimum Amount for Incoming Payment: 1 Minimum Amount for Outgoing Payment: 1 Click Forms Form for Payment Advice: F110_D_AVIS Click Sender Details Text ID: ST Under Text Elements Letter Header: F_001_Header Footer Text: F_001_Footer Sender: F_0001_Sender House Banks (FI12) Define House Banks if not defined already Bank Determination (OBVCU) Select XYZ Company Double click Ranking Order Payment Method Currency D INR D INR Double click Bank Accounts House Bk Pmt Method UTI D SBI D Double click Available Amounts House Bank A/c. ID UTI UTI1 SBI SBI1 Double click Value Date Payment Method House Bank D UTI D SBI

Rank Order 1 2 Currency INR INR INR INR A/c. ID UTI1 SBI1

House Bank UTI SBI A/c ID UTI1 SBI1 Bk Sub A/c. GL A/c. No. GL A/c. No.

Currency Available for Outgoing Pmt 999999999 999999999 0 0 Amount INR INR Currency

Creation of Check Lots (FCHI) Accounting > Financial Accounting > Accounts Payable > Periodic Processing > Payments Environment > Check Information > Number Ranges Note: Dont 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 Date Identification: ABC (any) Click Parameters Tab Company Code: XYZ Payment Method: D Next Payment Date: Current Date+1 Vendor Account: Give Range Click Additional Log Tab Vendor Account: Give Range Check 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 Items Click Reallocate Payment Method: D House Bank: UTI A/c. ID: UTI1 Save & Back

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Click Printout/Data Medium Program: RFFOUS_C Variant: D Environment > Maintain Variant Program Run Date: Current Date+1 (Next Payment Date mentioned in the Program) Identification: ABC Paying Company Code: XYZ Payment Method: D Business Area: XYZH House Bank: UTI A/c. ID: UTI1 Currency Key: INR Print Control:Select Print Checks Select Print Immediately Select Print Payment Summary Select Print Immediately No. of Sample Printouts: 0 No. of items in Payment Summary: 9999 Save & Back Arrow twice Click Payment Run Tab Select Start Immediately Enter till Payment Run is carried out Click Schedule Print Tab Select Start Immediately Job Name: Enter till Payment Run is carried out System > Services > Output Controller (SP01) Execute Select the item in the report Click Display Contents Icon Report can be viewed.

Accounts Receivable
Posting Keys Customer Debit: 01 Customer Credit: 15 S/Debtors Bill of Exchange Debit: 09 S/Debtors Bill of Exchange Credit: 19 Document Types DR Customer Invoice DZ 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 Group Company 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 clerks 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 clerks 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 details Accounting > 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 Clearing Accounting > 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)

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Bill of Exchange Transaction Normal Accounting SAP Accounting Customer A/c. Dr. Customer A/c. Dr. (S/Debtors Debit) To Sales A/c. To Sales A/c. Bill of Exchange Receipt Bill of Exchange Receipt No Entry Customer (W) A/c. Dr. (S/Drs. BExchnge A/c. Debit) To Customer A/c. (S/Drs. With clearing) Discounting Discounting Bank A/c. Dr. Bank A/c. Dr. Interest A/c. Dr. Interest A/c. Dr. To Bill Discounting A/c. To Bank Bill Discounting A/c. Reversal of Contingent Liability Reversal of Contingent Liability Bill Discounting A/c. Dr. Bank Bill Discounting A/c. Dr. To Customer A/c. To Customer (W) A/c. (S/Drs. Bill of Exchange with clearing) Reports Reports within the system Customer wise, Due Date wise, Customer wise, Due Date wise, Bill wise within the Bill wise outside the system system Creation of GL Account S/Debtors Bill of Exchange (FS00) (Current Assets Loans and Advances Group Balance Sheet Deselect Only Balances in Local Currency Reconciliation Account for Account Type: Customers Select Line Item Display Sort Key: 031 (Customer Number) Field Status Group: G067 Reconciliation Accounts) Creation of GL Account Bank Bill Discounting (FS00) (Secured Loans Group Balance Sheet Only Balances in Local Currency Select Open Item Management Select Line Item Display Sort 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: XYZ Account Type: D Special GL Indicator: W Bill of Exchange Bankable

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Reconciliation Account: Sundry Debtors A/c. 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 Entries Chart of Accounts: XYZ Bank Current Account: Current A/c. GL No. Usage: Discounting Indicator for Special GL: W Bill of Exchange Bankable Customer 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 Debit Account: Customer A/c. No. Special GL Indicator: W Bill of Exchange Bankable Amount: Text: Bill of Exchange Receipt Business Area: Due on: Current Date + LC sight Planned Usage: Discounting Central Bank LOC: Bank Main Select Choose Open Items Select Process Open Items Double in INR Gross 9999 Save) Bill Discounting (F-33) Accounting > Financial Accounting > Accounts Receivable > Document Entry > Bill of Exchange > Discount (Date: Type: DA Usage: Discounting Bank Account Number: Current Account GL Number

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Business Area: Amount: Text: Bank Bill Discounting Posting Key for Debit: 40 Account: Interest GL Account Number under Expenses Amount: Interest Amount Business Area: Press Select Bill of Exchange Button Document Number: Bill of Exchange Receipt Document Number Doc 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 Number Company Code: Special GL Indicator: W Bill of Exchange Usage: D Discounting Select Discounted/Collected Bills Execute Fields 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 Number Select 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 Number Usage: Discounting Due by: Select Edit Line Items Buttons Select the items from the Drop Down Menu Save & Document Display) Customer Account Display FBL5N Bank 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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Dunning
System defined reminder letters Dunning Area: South, North, East, West Dunning Levels: 4 (Maximum levels 9) Dunning Frequency: 10/20/30 days Grace 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 used o Give a description for the dunning procedure o Define dunning interval in days o Specify minimum days in arrears after which a dunning notice will be sent o Grace period per line item o 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 calculated o Define print parameters Charges o Define dunning charges, depending on the dunning level o Dunning charges can be either a fixed amount or a percentage of the dunned amount o A minimum amount for the dunning charges can be set Minimum amounts o Define minimum amount or percentage of the overdue items to reach a dunning level o 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 data o Sort fields o Sender details o Dunning areas o 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.)

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o Dunning block reasons ( A dunning block prevents accounts and items to be dunned) o Interest o 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 XYZ Dunning Interval: 10 days Number of Dunning Levels: 4 (max) Line Item Grace Period: 3 days Select Standard Transaction Dunning Reference Dunning Procedure: XYZ Reference Interest Indicator: Item Interest calculation key if any Select Dunning Text Button (ignore the warning message & enter) Co. Code: XYZ Select Customer & Enter Select New Company Code Button Give: XYZ & Enter Select Separate Notice per Dunning Level Back arrow twice & say Yes to the message Data to be saved? Select Dunning Text Button once again Co. Code: XYZ Select Customer & Enter {Open one more session with FBMP & Double Click 0001 System defined Dunning Procedure Select Dunning Text Button and give Co. Code: 0001 Select Customer & Enter} Copy the Forms from here and Paste in XYZs FBMP Select Back Arrow Select Dunning Levels Button & specify interest settings if any Select Charges Button to specify Dunning Charges if any Save, Ignore the warning message & Enter) Assignment of Dunning Procedure in the Customer Master (XD02)

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Accounting > Financial Accounting > Accounts Receivable > Master Records > Maintain Centrally > Change (In Company Code Data > Correspondence Tab > Assign Dunning Procedure) 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 Date Identification: XYZ1 (any) Select Parameters Tab Dunning Date: Current Date Documents Posted up to: Current Date Company Code: XYZ Customer A/c. No.: Give the range & Save & Select Back Arrow Select Schedule Button Start Date: Current Date Select Start Immediately Output Device: LP01 & Select Schedule Button Till you get complete message keep on entering Select Dunning Printout Button Select Print Button Till you get complete message keep on entering Select Sample Printout Button Customer Number: Give Range & Select Print Button Till you get complete message keep on entering Select Individual Dunning Notice Button Output Device: LP01 & Select Continue Button Co. Code: XYZ & Give Customer Range Select Printout Button) Note: Dunning Level completed will be updated in Customer Master Record.

Sales Tax
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Input Tax or Purchase Tax Base 100 2% Tax 2 ---Inventory RM 102 ---Output Tax or Sales Tax Base Price 100 4% ST 4 ---104 ----

Sales Account ST Payable Account

Define Calculation Procedure (OBQ3) SPRO > Financial Accounting > FAGS > Tax on Sales/Purchases > Basic Settings > Check Calculation Procedure Double click Define Procedures (F5, Procedure: TaxXYZ {any}, Desc: Sales Tax India & Save Select the Record Created Double click Control Data & Select New Entries Step: 1 Condition Type: BASB Base Amount Step: 2 Condition Type: MWVS Input Tax From: 1 To: 1 Account Key: VST Input Tax Step: 3 Condition Type: MWAS Output Tax From: 1 To: 1 Account Key: MWS Output Tax Save) Assign County to Calculation Procedure SPRO > 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 & Enter Tax Code: V1 {Any} Desc: 2% Input Tax Tax Type: V Input Tax & Enter Input Tax: 2% (Give Input Tax Rate) Deactivate the Output Tax Line & Save)

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(For Output Tax Country: IN & Enter Tax Code: A1 (Any) Desc: 4% Output Tax Tax Type: A Output Tax & Enter 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 key Chart of Accounts: XYZ & Save Give the GL Account Number to which Input Tax should go: Inventory-RM A/c. Select Back Arrow & Double click MWS key for Output Tax Chart of Accounts: XYZ Check On Tax Code wise & Save Tax 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 be Customer 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
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In Asset Class we mention Account Determination For Account Determination we assign Accounts on the basis of Transaction like Purchase, Sale, Profit, Loss, Scrapping, Depreciation, Accumulated Depreciation etc. Account Determination Land Asset Class Asset Masters Sub Asset Masters

Transaction

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

Free Hold Land Lease Hold Land Buildings Factory Buildings Non Factory Bldgs. Plant & Department A Machinery Department B Department C Furniture & Furniture & Fixtures Fixtures Office Equipment Vehicles Indigenous Vehicles Imported Vehicles Capital Work in Expansion 1 Progress Expansion 2 Expansion 3

Machine No.1

Motor

System defined Account Determinations and Screen Layout Rules: Description Account Determinatio n Real Estate and Similar Rights 10000 Buildings 11000 Machinery and Equipment 20000 Furniture & Fixtures 30000 Vehicles 31000 Hardware (IT) 32000 Down Payments paid and Assets under Construction 40000 Low Value Assets 50000 Leasing 60000 Objects of Art 80000

Screen Layout Rule 1000 1100 2000 3000 3100 3200 4000 5000 6000 8000

Settings: Copy Reference Chart of Depreciation/ Depreciation Areas (EC08) SPRO > Financial Accounting > Asset Accounting > Organisational Structures > Copy Reference Chart of Depreciation/ Depreciation Areas Double 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 & Enter Double click Specify Description of Chart of Depreciation
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Change the Description for XYZ as XYZ Chart of Depreciation Define Depreciation Areas (OADB) SPRO > Financial Accounting > Asset Accounting > Valuation > Depreciation Areas > Define Depreciation Areas Double click Define Depreciation Areas (OADB) Select XYZ Chart of Depreciation Select Choose Button Edit > Selections > Select All Deselect 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 Purchases Country Code: IN Tax Code: V0 (any) & Enter Tax Code: V0 0% Input Tax Tax Type: V (V for Input Tax) & Enter Input Tax: Give 0 percentage Deactivate Output Tax Line & Save In 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 Determination SPRO > Financial Accounting > Asset Accounting > Organisational Structures > Asset Classes > Specify Account Determination (No settings required, already system has defined) Create Screen Layout Rules SPRO > 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 Interval Create Intervals Group No. From To 01 1 100000 02 100001 200000 03 200001 300000 04 300001 400000 05 400001 500000 06 500001 600000 Define Asset Classes (OAOA) SPRO > Financial Accounting > Asset Accounting > Organisational Structures > Asset Classes > Define Asset Classes New Entries Asset Class: X10000 Freehold Land Account Determination: 10000 Screen Layout Rule: 1000 Number Range Group: 01 Select Include Asset under Inventory Data Select No AuC or Summary Management of AuC Save Select Next Entry Button Asset Class: X11000 Factory Buildings Account Determination: 11000 Screen Layout Rule: 1100 Number Range Group: 02 Select Include Asset Select No AuC or Summary Management of AuC Save Select Next Entry Button Asset Class: X20000 Department A Plant & Machinery Account Determination: 20000 Screen Layout Rule: 2000 Number Range Group: 03 Select Include Asset Select No AuC or Summary Management of AuC Save Select Next Entry Button Asset Class: X20001 Department B Plant & Machinery Account Determination: 20000 Screen Layout Rule: 2000

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Number Range Group: 03 Select Include Asset Select No AuC or Summary Management of AuC Save Select Next Entry Button Asset Class: X30000 Furniture & Fixtures Account Determination: 30000 Screen Layout Rule: 3000 Number Range Group: 04 Select Include Asset Select No AuC or Summary Management of AuC Save Select Next Entry Button Asset Class: X31000 Vehicles - Indigenous Account Determination: 31000 Screen Layout Rule: 3100 Number Range Group: 05 Select Include Asset Select No AuC or Summary Management of AuC Save Select Next Entry Button Asset Class: X40000 Expansion 1 Account Determination: 40000 Screen Layout Rule: 4000 Number Range Group: 06 Select 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 Accounts Select Details of Chart of Depreciation XYZ Chart of Accounts: XYZ Double Click Choose Account Allocation Select 10000 Account Determination (Real Estate & Similar Rights) Double click Define Acquisition/Retirement Accounts Select 01 Book Depreciation Area Select Details Button Acquisition: Acquisition & Production Costs: Give GL A/c. of LAND Clearing Account Revenue from Asset Sale: Give GL A/c. of ASSET SALE Gain from Asset Sale: Give GL A/c. of PROFIT ON ASSET SALE Loss from Asset Sale: Give GL A/c. of LOSS ON ASSET SALE Loss made on Asset Retirement without Revenue: Give GL A/c. of LOSS DUE TO SCRAPPING Enter & Save Select Back Arrow Twice Select 11000 Account Determination (Buildings) Double click Define Acquisition/Retirement Accounts Select 01 Book Depreciation Area Select Details Button Acquisition: Acquisition & Production Costs: Give GL A/c. of BUILDINGS Clearing Account Revenue from Asset Sale: Give GL A/c. of ASSET SALE Gain from Asset Sale: Give GL A/c. of PROFIT ON ASSET SALE Loss from Asset Sale: Give GL A/c. of LOSS ON ASSET SALE Loss made on Asset Retirement without Revenue: Give GL A/c. of LOSS DUE TO SCRAPPING Enter & Save Double click Define Depreciation Accounts Select 01 Book Depreciation Select Details Button Accumulated Depreciation Account for Ordinary Depreciation: Give GL A/c. of ACCUMULATED DEPRECIATION BUILDINGS Expense Account for Ordinary Depreciation: Give GL A/c. of DEPRECIATION Enter & Save Select Back Arrow Twice And repeat the procedure for 20000, 20001, 30000, 31000 and 40000 Note: 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 Class Select X10000 Freehold Land Double Click Depreciation Areas Activate 01 Book Depreciation by Deselecting it Layout Depreciation on Asset Sub Number Level: Give 2000 in all 3 records. Back Arrow Select 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 Depreciation Select 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 Rules Select XYZ Company Code and Double click Posting Rules Select Details of 01 Book Depreciation Select 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 Depreciation Select XYZ Company Code and Double click Rounding Specification Select 01 Book Depreciation & Select Details Button Select Automatically Calculated Depreciation Select Round to nearest whole Define Screen Layout for Asset Master Data SPRO > Financial Accounting > Asset Accounting > Master Data > Screen Layout > Define Screen Layout for Asset Master Data Select 1000 Real Estate or Land Double click Logical Field Groups Select 2 Posting Information Double click Field Group Rules Capitalization Date Required Entry Check on Main Asset Number, Sub Number and Copy Back Arrow Select 3 Time Dependent Data Double click Field Group Rules Business Area Required Entry Check 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 Areas Select 2000 Depreciation on Asset Sub Number Level Double click Field Group Rules Depreciation Keys Required Entry at Check 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 Method SPRO > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods > Depreciation Key > Calculation Methods > Define Base Methods For SLM always select 0014 0014 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 Methods Always 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 Methods New Entries M_Level_Method: X1 (any) Description: 5% SLM Validity Start: From Ordinary Depreciation Start Date Save & Double click Levels New Entries Acquisition Year: 9999 Years: 999 Periods: 12 Base Value: 01 Acquisition Value Percentage: 5 Save & Back Arrow 3 times New Entries M_Level_Method: X2 (any) Description: 5% WDV

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Validity Start: From Ordinary Depreciation Start Date Save & Double click Levels New Entries Acquisition Year: 9999 Years: 999 Periods: 12 Base 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 Methods New Entries Period 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 Key Select XYZ Company Code Select Choose Button New Entries Depreciation Key: XYZ1 (any) Description: 5% SLM Select Period Control According to Fiscal Years Select Depreciation to the Day Save, Ignore the warning message & Enter Double click Assignment of Calculation Methods New Entries Depreciation Type: Ordinary Depreciation Phase: From the start of Depreciation Assignment Base Method: 0014 (Ordinary: Explicit Percentage after end of life) Declining Balance Method: 001 Period Control Method: 006 Multi Level Method: X1 (for SLM) Class Straight Line Depreciation Save & Back Arrow 4 times to Activate Depreciation Key XYZ1 Save New Entries once again Repeat the same procedure for creating XYZ2 Depreciation Key for 5%WDV Select Multi Level Method X2 for WDV Select Class Declining Balance Depreciation Creation of Asset Master (AS01)

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Accounting > Financial Accounting > Fixed Assets > Asset > Create > Asset Asset Class: Co. Code: No. of similar Assets: 1 & Enter General 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. > Asset Asset: XXXXXX Class: Company Code: XYZ & Enter General 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 Vendor Doc. Date: Posting Date: Doc. Type: KR Vendor Invoice Posting Key: 31 Vendor Credit Account: Vendor Account Number Asset Value: B. Area: Desc: Asset Purchase Posting Next Line Posting Key: 70 Asset Debit Account: XXXXXX 0 Transaction Type: 100 External Acquisition Type Amount: * 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

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Depreciation Run (AFAB) 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 Customer Check on Asset Retirement Transaction Type: 210 Retirement with Revenue Select 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 Profile Double click Define Settlement Profile Select AI Settlement Assets under Construction Select Details Button Actual 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: 12 Select 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 Documents Select Maintain Groups Button Keep the Cursor on Element VBCF Edit > Select Element F2 Check on Standard Accounting Document Edit > Assign Element Group F5 & Save Capitalization of Asset (AIAB) Accounting > Financial Accounting > Fixed Assets > Posting > Capitalize Assets under Construction > Distribute Asset: Give the Asset Number to be Settled Sub No.: & Execute Select the item which is to be settled Click Enter Distribution Rules Button FXA XXXXXX 0: 40% FXA XXXXXX 0: 60% Click Check Button for Checking Errors Back Arrow & Save Select Settlement Button Give Dates and Text: Asset Settlement Click to Buttons & Execute & Back Arrow Remove 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 versions 2. Define hierarchy levels and assign accounts Each version must have the following special items: 1. Assets 2. Liabilities 3. Profit 4. Loss 5. Profit and Loss results 6. 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 levels o Assign items to each level. The system calculates a total/subtotal for each item which is then displayed when the program is run.
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o Assign texts to each item. o Assign the accounts whose balance and account name are to be listed to the lowest levels. Define Financial Statement Version SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Closing > Documenting > Define Financial Statement Version New Entries Financial Statement Version: XYZ Name: Balance sheet & Profit and loss Account Check on Item keys auto Chart of Accounts: XYZ Save Click Financial Statement Items button Double click No text exists: Assets Item: Assets & Enter Double click No text exists: Liabilities Item: Liabilities & Enter Keep the cursor on XYZ Balance Sheet & Profit and loss Account Click Create items button Income Expenditure & Enter Keep the cursor on the item which is to be changed Keep the cursor on Assets Click Select +/- button (F9) Keep the cursor on the item after which you want to place, i.e. Liabilities Click Reassign button Select Same level Radio button & Enter Keep the cursor on Income & Place it after Expenditure & Save To create Schedules: Keep the cursor on Liabilities & Press Create items button Give the heads you want Repeat the same for Assets & Save To assign Accounts: Keep the cursor on Share Capital Click Assign Accounts button Give the range for the Accounts & Check on Dr. Cr. Repeat the same for other schedules

Enter

To check all Accounts assigned or not: Click Check Button (Ctrl+F5) Select Non-assigned Accounts & Enter Report can be viewed if there are any non-assigned accounts Save 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

Reports
To 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&L Accounting > 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)

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Accounting > Financial Accounting > Accounts Payable > Information System > Reports for Accounts Payable Accounting > Vendor Items > List of Vendor Line Items Asset History Sheet (AR02) Schedule 6 Depreciation Chart Information 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 Procedure
Month-end closing activities (Preparatory activities) HR Payroll posting 57 MM Maintain GR/IR clearing account 12-13 Material valuations 14-15 Close material ledger 17 Close 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 46 Depreciation posting 5 Interest Accounting > Financial Accounting > General Ledger > Periodic Processing > Interest Calculation > Balances (F.52) AuC settlement 48 Close old period & open new period 63 CO - Cost Centers: 51 - Imputed costs, Distribution and assessment, indirect activity allocation, Calculate actual activity prices and update allocations Internal 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 - Settlement Profitability Analysis: 52 - Cost center assessments - Activity based costing - Allocations Lock old posting period for Controlling transactions 53 Month-end closing activities (Financial closing)
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FI -

Re-open periods for adjustments 63 CO/FI reconciliation postings (Cross-company code, cross-business area and cross-functional area flows within CO are posted to FI) 54-55 Foreign currency open item valuation 39 Accounting > Financial Accounting > Accounts receivable > Periodic Processing > Closing > Valuate > Valuation of Open Items in Foreign Currency ( Foreign currency balance sheet account valuation 43 Accounting > Financial Accounting > GL Accounts > Periodic Processing > Closing > Valuate > Valuation of Open Items in Foreign Currency (F.05) FI/PCA Balance sheet adjustment 67-70 FI/CO-PA Profit and loss adjustment 71 Final closing of posting periods 63 Final 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 16 FI FI - Open new fiscal year 63 AR/AP Balance confirmations 29-30 AA Fiscal year change 8 FI Balance carryforward 64 AA Valuations & Capital investment subsidies (after AA postings completed for fiscal year) AA Year-end closing 9-10 AR/AP Close fiscal year 63 Year-end closing activities (Financial closing) FI Analyze GR/IR postings 27 Regroup receivables/payables 41 General adjustments Final fiscal year closing 63 GL 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 11 Accumulated balance audit trial 76-79 Month-end closing process:

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Pre-closing activities, which begin in the old month, include: 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 expenses o MM Maintain GR/IR clearing account, post material revaluations o HR Post payroll expenses o SD Post goods issues for deliveries to customers o 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 adjustments o Technical Final closing of the old period o 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 valuation o AA Asset valuations and investment support o FI Balance confirmations for customers and vendors o 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 postings o 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

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

A 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 Liabilities Balance Sheet Account Balance Sheet Account Short Text Clearing with CC2 Clearing with CC1 Long Text Clearing with Company Code 2 Clearing with Company Code 1 Account Currency INR INR
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Sort Key Field Status Group

Only Bal in Local Currency Line Item Display 001 G001 Post Automatically Only

Only Bal in Local Currency Line Item Display 001 G001 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 CC1 Company 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: 50 Account 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: 50 Account 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 Or
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Accounting > Financial Accounting > General Ledger > Master Records > Individual Processing > Create (FS00) Create Account Petty Cash for Cash Journal under Current Assets and select Post Automatically only Set up Cash Journal SPRO > Financial Accounting > Bank Accounting > Business Transactions > Cash Journal > Set up Cash Journal New Entries Company Code: XYZ Cash Journal ID Number: give a number Account Number: Petty Cash GL Account Number Currency: INR Doc Type GL Posting: AB Doc Type Payment to Vendor: KZ Doc Type Payment from Vendor: KZ Document Type Payment from Customer: DZ Document Type Payment to Customer: DZ Name: Give a name for the Cash Journal Define Number Range Intervals for Cash Journal Documents SPRO > Financial Accounting > Bank Accounting > Business Transactions > Cash Journal > Define Number Range Intervals for Cash Journal Documents Create Accounting Transactions to be used in Cash Journal SPRO > Financial Accounting > Bank Accounting > Business Transactions > Cash Journal > Create, Change, Delete Accounting Transactions Create 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 Journal Accounting > Financial Accounting > Banks > Input > Cash Journal Enter 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 Types ROH Raw Material ERSA Stores & Spares VERP Packaging Material FERT Finished Goods HALB Semi Finished Goods HAWA Traded Goods DIEN Services Views Basic 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 Control Valuation Category: Batch Classification & Average Valuation 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 Control SPRO > Material Management > Valuation & Account Assignment > Define Price Control for Material Types S Standard Price, will be used for Finished Goods V Moving Average, will be used for other than Finished Goods

MM FLOW
1. Purchase Requisition No FI Entry 2. Enquiry, Quotation and Price Comparison No FI Entry 3. Purchase Order No FI Entry 4. 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 To GR/IR Clearing A/c. 6. Invoice Verification GR/IR Clearing A/c. Dr To Vendor A/c. 7. Consumption RM Consumption Local A/c. Dr To Inventory RM Local A/c. 8. Production Receipt Inventory FG A/c. Dr To Increase/Decrease in Stocks FG 9. FG Delivery Increase/Decrease in Stocks FG Dr To Inventory FG 10. Billing SD Area

(BS CA) (BS CL) (BS CL) (BS CL) (P&L Dr) (BS CA) (BS CA) (P&L Cr) (P&L Cr) (BS CA)

BSX WRX WRX P.O. GBB-VBR BSX BSX GBB-ZOB GBB-VAX BSX

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 Plant Select Account Assignment Button (OBYC)

SD FI Integration
SD FLOW
1. Enquiry/Quotation No FI Entry 2. Sales Order No FI Entry 3. Delivery Without PGI & With PGI Increase/Decrease in Stocks A/c. Dr To Inventory FG 4. Billing Party A/c. Dr Commission A/c. Dr To Sales Export A/c. To Freight Collection A/c. Pricing Procedure VK11 Material ERS Region to Region ERL Tax Code ERF GBB VAX BSX SO ERS ERL ERF Condition Type: KOFI

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

FI-GL-AP-AR-AA

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Double Click 003 Material Group Account Key Application Area: V Sales/Distribution Condition Type: KOFI Account Assignment Goods Account Key Trading Goods ERL Revenue Finished Goods ERS Sales Deductions Services ERF Freight Revenue

FI-GL-AP-AR-AA