Introduction to SAP FICO

SAP FI is a module used for reporting both externally and internally. The objective is to record all
financial transactions that are posted by an entity and produce financial statements which are
accurate at the end of the trading period. This tutorial is going to explain the major functionalities
with SAP FI module.

SAP FI is made up of sub modules. The sub-modules that are often used are accounts
receivables, accounts payables, asset accounting, general ledger Accounting and bank
accounting.

All the sub modules are interlinked and integrate in real time. A trial balance can be extracted at
an time and it will always balance because all the sub modules are connected. The diagram
below shows the the integration between SAP FI modules.

General ledger accounting

All general ledger accounts that are used for reporting are managed through general ledger
accounting. In SAP a set of all general ledger accounts used by a company or a group of
companies is called a chart of accounts. These are the accounts that will be used for the
preparation of financial statements. Most of the transactions are recorded in sub modules and
they are reconciled with the general ledgers in real time. Transactions that can be done in direct
in general ledger Accounting include journal vouchers which are posted to adjust or correct
transactions. Reversals can also be done from general ledger accounting. Balances in general
ledger accounts can be displayed and trial balances extracted from the system.
Accounts receivables
Accounts receivables is a sub module that captures all transactions with customers and manages
customer accounts. Separate customer accounts will be maintained and when transactions are
posted in customer accounts, reconciliation accounts in general ledger are updated with the
figures in real time. Transactions in accounts receivables include invoice posting, credit memo
posting, down payments, invoice payment, dunning and executing customer reports.

Accounts payables
Accounts payables is a sub module that captures all transactions with vendors and manages
vendor accounts. Separate vendor accounts are maintained and when transactions are posted in
customer accounts, reconciliation accounts in general ledger are updated with the figures in real
time. Transactions in accounts payables include invoice posting, credit memo posting, down
payments, invoice payment, automatic payment program and executing vendor reports.

Asset accounting
Asset accounting manages all transactions realted to assets for an entity. When transactions are
posted in asset accounts ,reconciliation accounts in general ledger are updated in real time.
Transactions in asset accounting include asset acquisition, asset retirement, asset sale, asset
transfer, asset revaluation and asset depreciation.

Bank accounting
Bank accounting captures all transactions with the banks. Bank reconciliation is done to reconcile
all transactions recorded on bank statements comparing them to transactions in the system.

All SAP FI sub-modules are integrated and transactions are updated in real time which means
accurate financial statements can be extracted from the system at any time.

How to Create a Company in SAP

Define Company
In this tutorial, we will learn How to Create a Company

Step 1) Enter Transaction code SPRO in the command field

Step 2) In the next screen Select SAP reference IMG

Step 3) In next screen Display IMG follow the menu path

SAP Customizing Implementation Guide -> Enterprise Structure -> Definition-> Financial
Accounting -> Define Company

Step 4) In the next Screen

1) Press New Entries

Step 5) In the next Screen Enter the Company Details :

1. Enter a unique Company Id for the Company within your corporate group
2. Enter the Company Name
3. In the Detailed Information Section Enter the Company Address details such as Street ,
PO Box, Postal Code, City
4. Select Country code for country the company is established
5. Select Default language for the Company for Print forms and Default Texts
6. Select a Local Currency for the Company
Step 6)After completing all the required information ,press save Enter your customizing
request number

and your company is created.

How to Create a Company in SAP & Assign Company

Code
Creating Company Code is a 2 Step process
1) Create Company Code

2) Assign Company Code to Company

Define Company Code

Step 1) Enter Transaction code SPRO in the command field

Step 2) In the next screen Select SAP reference IMG

Step 3) In next screen Display IMG follow the menu path

SAP Customizing Implementation Guide -> Enterprise Structure ->Definition->Financial

Accounting->Edit, Copy, Delete, Check Company Code

Step 4) In the next screen, select activity - Edit Company Code Data
In the Change View Company code screen

Step 5) Select New Entries

Step 6) In the Next Screen Enter the Following Details

1. Enter your Unique Company Code Number

2. Enter Company Name
3. In the Additional Data section Enter City
4. Enter Country for the Company
5. Enter Local Currency
6. Enter Default Language
Step 7) Click Address Details button on same screen

Step 8) Enter Address Details for the Company this will appear in print forms

1. In the Name Section Enter Title and Company Name

2. In the Search Term section Enter Search term 1 and 2
3. In the Street Address section enter street, postal code, city, country
4. In the P O Box Address section Enter PO Box and Postal Code
5. In Communication Section Enter appropriate details
Step 9) After Completing this information Press Save and Enter your Change Request
number.

You have successfully created a new Company code.

Assign Company Code to Company
Step 1) In the SAP Reference IMG Select the Menu path

SAP Customizing Implementation Guide ->Enterprise Structure->Assignment->Financial

Accounting->Assign Company Code to Company

Step 2) In the Next Screen Enter the unique Company ID against the Company Code you

Want to assign to this Company.

Step 3) Press Save and Enter the Customizing request Number

You have assigned the desired Company code to the Company

How to Create Chart of Accounts in SAP
This is a step by step tutorial to help you create Chart of Accounts in SAP FI. Before we begin
let’s discuss,

What is a Chart of Account?

In SAP, the Chart of Accounts (COA) is defined at the client level and assigned to each company
code. It is a list of General Ledger account’s master data that fall under different account groups
of a company code. This grouping mechanism helps to develop better financial reports.

Types of Chart of Accounts

There are three types of Chart of Accounts, viz

1. Operating chart of accounts: They are used to post daily expenses. The accounts in
Operating Chart of Accounts could be either expense or revenue accounts, and the
information is shared by Finance as well as Controlling modules.
2. Group Chart of Accounts: These are accounts used by the entire corporate group. They
help in generating reports at the corporate
3. Country-specific chart of accounts: This Chart Of Accounts help meet country-specific legal
requirements

In this tutorial, we will learn

 How to Create Chart of Accounts

 How to Create Chart of Accounts (COA) Account Group

How to Create Chart of Accounts

Step 1) Enter Transaction code SPRO in the command field

Step 2) In the next screen Select SAP reference IMG

Step 3) In next screen-"Display IMG" navigate the following menu path : SAP Customizing
Implementation Guide -> Financial Accounting -> General Ledger Accounting -> G/L Accounts ->
Master Data -> Preparations -> Edit Chart of Accounts List

Step 4) In the next screen, select New Entries

Step 5) In the next screen,Enter Following Data :

1. Enter a unique Chart of Accounts Code , maximum length is four

2. Enter a Description for the Chart of Accounts
3. Enter Language in which the Chart of Accounts is created.All accounts have a description
in this language.Master Data can only be displayed or maintained in this language
4. Enter the maximum length for G/L Accounts number, it could be maximum to ten digits if
number is short then it will prefix zero before it to make it to the maximum length
5. Enter the type of integration between G/L accounts and cost elements
6. Enter Chart of Accounts which is used in the corporate group
Step 6) After you complete entering this information Press Save . In the next screen, Enter
your Change Request number.

You have successfully created a new Chart of Accounts.

How to Create Chart of Accounts (COA) Account Group

Step 1) Enter Transaction code SPRO in the command field

Step 2) In the next screen Select SAP reference IMG

Step 3) In next screen-"Display IMG" navigate the following menu path

SAP Customizing Implementation Guide -> Financial Accounting -> General Ledger Accounting

-> G/L Accounts -> Master Data -> Preparations -> Define Account Group

Step 4) In the next screen, select New Entries

Step 5) In the next screen, Enter following Information

1. Enter the Chart of Accounts key in which the Account Group is to be created
2. Enter unique Account Group key
3. Enter Description for the Account Group
4. Enter the number range for the G/L account to be created in the Account Group
Step 6) Select Field Status from the Application menu

Step 7) In the next screen, you can change the field status for different sections of the G/L COA
Master Data. For example select Account Control

Step 8) Now you can maintain the status of different fields belonging to Account Control Tab

between Suppressed ( Hidden ) , Required , Optional and Display modes.

Note :-The default status of fields is Optional.

Step 9) After maintaining the field status , press save Enter your change request number

You have successfully created a Chart of Accounts Account Group.

How to Define Retained Earnings Account in SAP

This tutorial demonstrates how to create Retained Earnings Account

Enter Transaction code SPRO in the command field

In the next screen Select SAP reference IMG

In next screen-"Display IMG" navigate the following menu path :

SAP Customizing?Implementation Guide?Financial Accounting ?General Ledger Accounting?G/L

Accounts ?Master Data? Preparations? Define Retained Earnings Account

In the next screen, Enter the Chart of Accounts to maintain the Retained Earnings Account

In the next screen, select New Entries from the Application Menu

In the next screen, Enter the following information

 1. Enter the P&L statement account type, to determine the retained earnings account for each
P&L account.If you are creating a P&L account, you must make an entry here.
2. Enter the G/L Account which will be considered as Retained Earnings account

You can maintain the posting key for this account by selecting posting key in the Application
Menu

After this you can assign posting key for Debit and Credit

After maintaining all required information , press save and Enter your change request number
You have successfully created a Retained Earnings Account.

GL Account in SAP Tutorial: Create, Display, Block &

Delete FS00
In this tutorial, we will learn

 How To create a New General Ledger Account

 How to Display Changes in G/L Account Master
 How to Block or Delete a G/L Account

How To create a New General Ledger Account

Step 1) Enter Transaction FS00 into the SAP command prompt , click execute.

In the Edit G/L Account Screen

1. Enter G/L Account no.

2. Company Code
3. Click Create.

Note , SAP provides you an option to create a GL account with reference to another GL account.
More on this later in the tutorial.
Step 2) In the next screen

1. Enter Account Group

2. As per the type of G/L Account you are creating select either the P&L Statement Acct or
the Balance Sheet Account radio button.
3. In the Short Text field, enter a short description for the new GL account.
4. In the G/L Acct Long Text field, enter a detailed description for the new GL account.

Step 3) Click on the Create/Bank/Interest tab.

Step 4) In the Field Status Group, select a GL field status group

Step 5) Click Save . A new G/L Account is created.

In case you choose to create a new SAP G/L account with reference to a template

Step 1) Enter a reference G/L account no. and Company

Step 2) Change the Short Text and G/L acct long text.

Step 3) Validate the other information on the Type/description and Create/bank/interest tabs .

Step 4) Click Save to create the G/L Account.

How to Display Changes in G/L Account Master

Step 1) Enter the Transaction Code FS04 in the SAP Command Field
Step 2) In the next screen, Enter the Following

1. Enter the G/L Account Number

2. Enter the Company Code

Step 3) In the next screen , Select the Field from the list of Changed Fields
Step 4) In the next screen, List is generated with New Value and Old Value of the field

How to Block or Delete a G/L Account

Step 1) Enter Transaction Code FS00 in SAP Command Field

Step 2) In the next screen

 1. Enter the G/L Account you want to block or delete
2. Enter the Company Code

For Blocking

Step 3) In the next step , Press the Block button

Step 4) In the next screen, you have the blocking options for the G/L Accounts
For Deleting

Step 5) In the next step , Press the Mark for deletion button

Step 6) In the next screen, you have the deletion options for the G/L Accounts
General Ledger (G/L) Posting in SAP: PCP0 &
PC00_M99_CIPE
General Ledger posting is the process of posting the Payroll results to the appropriate GL
accounts including the cost centres Posting payroll results to Accounting is one of the subsequent
activities performed after a successful payroll run. It usually takes place once each payroll period,
as well as after each off-cycle payroll run. GL posting does the following

 Groups together posting-relevant information from the payroll results.

 Creates summarized documents.
 Performs the relevant postings to appropriate GL accounts and cost centers

How posting is evaluated ?

Each employee’s payroll result contains different wage types that are relevant to accounting:

 Wage types such as standard salary, bonuses, and overtime represent expenses for the
company, which are posted to a corresponding expense account.
 Wage types such as bank transfer, employment tax, employee’s contribution to social
insurance, etc. are the employer’s payables to the employee, the tax office, etc. and are
posted as creditsto a corresponding payables or financial account.
 In addition, there are wage types such as the employer’s health insurance contribution,
which represents an expense for the enterprise and, at the same time, a payable to the
social insurance agency. For this reason, such wage types are posted to two accounts -
once debited as an expense, and once credited as a payable.
 Other types of wage types also exist, for example accruals, provisions, etc. These types of
wage types are usually posted to two accounts, once debited as an expense and once
credited as a provision.
Posting to General Ledger is a 2 STEP process :-

STEP 1) Create a Posting Run

Transaction: PC00_M99_CIPE

Overview:

 This step creates a posting run based on the payroll results, with a “distinctive number”, a
“run type PP”, and the accompanying posting documents.
 The posting run ensures that payroll results for an employee are only posted once
 Processed payroll results for an employee are flagged
 If the posting run is successful, it gets the status “Documents Created”.
 If the posting run is unsuccessful, it gets the status “Incorrect Documents”. Relevant error
messages will appear in the Output Log.

A posting run can be executed in 3 Modes:

 A test run without documents (T)

 A simulation run with simulation documents (S)
 A productive run (P)

Test (T)

In a test run, the system checks only whether the balance of expenses and payables is zero, as it
should be.

Simulation (S)

In both simulation and productive runs, the system checks all HR and RT tables and the posting
information in master data to determine whether they exist and whether they are consistent.

Productive Run (P)

When you choose Execute Run for a productive run, the system performs the following steps:
  Selects the employees and their payroll results for the evaluation
 Creates a posting run
 Creates posting documents

Program Input Screen

Enter Payroll Area , Selection Criteria , Type of Document Creation , Check Ouput Log , Enter
Document Date and Choose a Posting Variant. Click Execute.

Output Log

 The log shows whether the posting run was successful for all personnel numbers.
 You will obtain the list of all employees selected, in “RED” (indicates errors or imbalance)
or “GREEN” (indicates no errors).
 In the Output Log, if it is successful posting run, the “Doc. Creation” will indicate Error-Free.
If it is unsuccessful, the “Doc. Creation” will indicate Incorrect.
  Write down the posting run number.
 If you select the Document Overview button or double click the Doc. creation line, you
can access the document overview screen

STEP 2) Editing a Posting Run

Transaction : PCP0
Overview:

 This step provides an overview of ALL documents created during the posting run.
 Alternatively, you can also access the document overview from the Create Posting
Run log by choosing the Document Overview button or by double clicking on
the Document Creation line.
 You can drill-down through these documents to identify the reasons for which errors have
occurred for unsuccessful posting run (i.e., with an “Incorrect” status).

Posting Run Status

 Initially the posting run status should be Documents created.

 If status is No documents created and you were expecting documents, go back to the
previous Create a Posting Run step and retry.
 If there are Incorrect documents review the error message and resolve.
 Once Error are resolved and status is Document Created , Select Release Document
Button and status will change to All Document Released
 Next click Post documents button , Status will change to Documents Posted
How to create Financial Statement Version (FSV) in
SAP
This tutorial takes you through the steps to create a Financial Statement Version

Step 1) Enter Transaction code SPRO in the command field

Step 2) In the next screen Select SAP reference IMG

Step 3) In next screen-"Display IMG" navigate the following menu path SAP Customizing
Implementation Guide -> Financial Accounting -> General Ledger Accounting -> Business
Transactions -> Closing -> Document -> Define Financial Statement Versions
Step 4) In the Next Screen, Select New Entries

Step 5) In the Next Screen, Enter the Following

1. Enter the FSV Key

2. Enter the Description for the purpose of the FSV
3. Enter the language key designates the language in which you Display texts,Enter texts
and Print documents.
4. Enter this indicator which specifies whether keys of f.s items are assigned manually or
automatically when the financial statement versions are defined.
5. If we specify a COAhere, only accounts from this chart of accounts can be assigned when
you are defining the financial statement. If you do not specify a chart of accounts, accounts
from several charts of accounts can be assigned when you define the financial statement.
6. Enter this Indicator that specifies that the group account numbers should be assigned
instead of the account numbers when you define the financial statement version.
7. Enter this indicator as it makes possible to assign functional areas or accounts in the
financial statement version.
Step 6) After maintaining the fields , press save Enter your change request number

Step 7) After the Financial Statement Version is saved you can edit its structure items by
selecting Financial statement items button

Step 8) In the next screen, you can maintain nodes in version object A new version has seven
basic nodes by default, listed below

1. Financial Statement Notes

2. Not Assigned
3. P+L result
4. Net result : loss
5. Net result : profit
6. Liabilities+Equity
7. Assets
 We can maintain node text by double clicking on the node . We can create subitems to the

node by selecting the node and pressing the create items button New item will be
created as subnode to the selected node. We can assign accounts or group of Accounts to a

node by selecting the node and pressing Assign Accounts .

Below is an example of such an assignment.

1. Primary Node "Assets"

2. Subnode "Cash & Cash Equivalents" are assigned to Assets ." Petty cash" is a subnode
assigned to Cash & Cash equivalents.Other nodes are also assigned to Cash & Cash
Equivalents such as : Checking,Citibank Account, Mellon Bank,Citibank Canada
3. Chart of Account key used for assigning accounts
4. Range of accounts assigned to node Petty Cash
5. Range of Accounts
Step 9) After Maintaining the structure press Save and we have successfully created a
Financial Statement Version.

How to perform a Journal Entry Posting FB50 in SAP

In this tutorial, you will learn-

1. GL Posting in SAP using Cost Center

2. Post To Cost Center in SAP

GL Posting in SAP using Cost Center

We will take a sample business transaction for the posting.

Post General Ledger 5000 units of local currency are drawn from the house bank account in cash
and put into petty cash.

Step 1) Enter the transaction code FB50

Step 2) In the next screen, Enter the document date in header part

Step 3) Next select button Company Code

Step 4) Enter the Company Code for the Transaction

In the Item details part , Enter the following

1. Enter Cash Account to be Debit

2. Select Debit
3. Enter Amount to be debited
4. Enter Bank account to be Credited
5. Select Credit
6. Enter Amount to be Credited

Step 5) Now check the status of the Document in Amount Information section

Step 6) In the Status Bar Document number is generated which confirms Document Posting.
Post To Cost Center in SAP
Step 1) Enter Transaction Code FB50 in the SAP Command Field

Step 2) In the next screen , Enter the Following

1. Enter the Document date

2. Enter the Company code
3. Enter G/L Account for the Debit Entry which is to be posted to the Cost Center
4. Enter Debit Amount
5. Enter the Cost Center in which the Amount is to be posted
6. Enter G/L Account for Credit Entry
7. Enter Credit Amount

Step 3) Press 'Save' Button for the SAP Standard Toolbar to post the Document

Step 4) Check the Status bar for the Document Number of the Successful Entry.
Create Fiscal Year Variant & Assign to Company Code
in SAP: Complete Tutorial
In this tutorial, you will learn-

 How to Create a Fiscal Year Variant

 How to assign Company Code to a Fiscal Year Variant

How to Create a Fiscal Year Variant

Step 1) Enter the Transaction code SPRO in the SAP Command Field and Press Enter

Step 2) In the next screen Select SAP reference IMG

Step 3) In next screen-"Display IMG" navigate the following menu path :

SAP Customizing Implementation Guide Financial Accounting -> Financial Accounting Global
Settings->Fiscal Years -> Maintain Fiscal Year Variant (Maintain Shortened Fiscal Year )
Step 4) In the next screen, Select "New Entries" from the Application Toolbar

Step 5) In the next screen , Enter the following Data

1. Enter two digit unique fiscal year variant key

2. Enter a Description for Variant created.
3. If Fiscal Year is year dependent , that is if start and end dates for fiscal year changes
between year, then select this option, normally it is used for shortened fiscal year.
4. If Fiscal Year is same as calendar year , that is Jan - Dec , then select this option.
5. Enter the number of posting periods for this fiscal year
6. Enter the number of special posting periods for this Fiscal year, that is used for closing
activities.

Step 6) After entering all required data , Press Save from the standard toolbar

Step 7) In the next screen, Enter the customizing request number and you have created a new
Fiscal year Variant
Step 8) For Maintaining the period dates , that is if the Fiscal year Variant is not Calendar Year,
then we can maintain the Posting period by

1. Select the Fiscal Year Variant you want to maintain the period
2. Select the Periods folder

Step 9) In the next screen , Maintain the periods for the Fiscal year in Ascending order
Step 10) After maintaining the periods , Press "Save" in SAP Standard Toolbar

How to assign Company Code to a Fiscal Year Variant

Step 1) Enter the Transaction code SPRO in the SAP Command Field and Press Enter

Step 2) In the next screen Select SAP reference IMG

Step 3) In next screen-"Display IMG" navigate the following menu path :

SAP Customizing Implementation Guide -> Financial Accounting -> Financial Accounting Global
Settings->Fiscal Years -> Assign Company Code to a Fiscal Year Variant

Step 4) In the next screen , Assign Company code in the list with the corresponding Fiscal Year
Variant
Step 5) After the assignment , Press "Save" from the SAP Standard toolbar

Step 6) In the next screen , Enter the customizing request number

You have successfully assigned Company code to Fiscal Year Variant

You can also assign Fiscal Year Variant in the Company code via Company Code Global
Parameters Settings.

How to Define Posting Period Variant in SAP

Enter the Transaction code SPRO in the SAP Command Field and Press Enter

In the next screen Select SAP reference IMG

In next screen-"Display IMG" navigate the following menu path :

SAP Customizing Implementation Guide -> Financial Accounting -> Financial Accounting Global
Settings->Document -> Posting Periods -> Define Variants for Open Posting Periods

In the next screen, Press 'New Entries' button

In the next screen, Enter the Following

1. Enter a unique Posting Period Variant Key

2. Enter a Description for the Variant
After maintaining the above information , Press 'Save' from the SAP Standard Toolbar

In the next screen, Enter the Customizing Request number

You have successfully defined a Posting Period Variant

How to Open and Close Periods in Posting Period

Variant in SAP
Enter the Transaction Code S_ALR_87003642 in the SAP Command Field
In the next screen, Position the Variant you want to maintain and account type for which you want
to open or close the periods.

Change the period , with following steps

1. Select Posting Period Variant

2. Select Account Type
3. Enter the Account number range for which you want to change the periods
4. Enter the Period to Open as per the Fiscal Year Variant of the Company Code assigned to
the Posting Period Variant.
5. Enter the Period to which posting to be Open
6. Enter Any Special Period you want to Open

All Other periods will remain close for posting for the Account range mentioned

After maintaining the periods, Press 'Save' from the SAP Standard Toolbar
In the next screen , Enter the customizing request number

You have successfully maintained periods in Posting Period Variant

How to Define Field Status Variant & Field Status

Group in SAP
In this tutorial, you will learn-

 How to Define Field Status Variant and Field Status Group

 How to Assign Field Status Variant to Company Code

How to Define Field Status Variant and Field Status Group

Step 1) Enter the Transaction code SPRO in the SAP Command Field and Press Enter

Step 2) In the next screen Select SAP reference IMG

Step 3) In next screen-"Display IMG" navigate the following menu path :

SAP Customizing Implementation Guide -> Financial Accounting -> General Ledger Accounting -
>Business Transactions -> G/L Account Posting -> Make and Check Document Settings ->Define
Field Status Variants

Step 4) In the next screen , Select "Create" from Application Toolbar

Step 5) In the next screen, Enter the Following

 1. Enter a unique Field Status Variant Key
2. Enter Description for the purpose of Field Status Variant

Step 6) In the next step ,

1. Select the new Field Status Variant

2. Select Field Status Groups Folder

Step 7) In the next screen,

1. Enter Field Status Groups for the Field Status Variant

2. Select Field Status Group and press Choose Detail button

Step 8) In the next screen, Select the Field Group to maintain the status
Step 9) In the next screen, Maintain the Field status of the Group Fields

Step 10) Press "Back" for the SAP Standard Toolbar

Similarly Maintain other Field Groups ,After maintaining all the Groups and Field Status Groups,
Press "Save" from the SAP Standard Toolbar

Step 11) In the next screen, Enter the Customizing Request number
You have successfully created a Field Status Variant and it's Field Status Groups

How to Assign Field Status Variant to Company Code

Step 1) Enter the Transaction code SPRO in the SAP Command Field and Press Enter

Step 2) In the next screen Select SAP reference IMG

Step 3) In next screen-"Display IMG" navigate the following menu path :

SAP Customizing Implementation Guide -> Financial Accounting -> General Ledger Accounting -
>Business Transactions -> G/L Account Posting -> Make and Check Document Settings ->Assign
Company Code to Field Status Variant
Step 4) In the next screen, Maintain Appropriate Field Status Variants for the Company Code
Listed

Step 5) After Maintaining the Field Status Variant for the Company Code , Press 'Save' from the
SAP Standard Toolbar
Step 6) In the next screen, Enter the Customizing Request number

You have successfully assigned the Company Code with Field Status Variant.

How to Define Document Type and Number Range in

SAP FICO
In this tutorial, we will learn to

 How to Define Document Type

 How to Define Number Range

Step 1) Enter Transaction Code SPRO in SAP Command Field

Step 2) In the next screen, Select 'SAP Reference IMG'

Step 3) In the next screen "Display IMG' Follow the menu path

Financial Accounting -> General Ledger Accounting -> Business Transactions -> G/L Account
Posting -> Carry out and Check Document Settings ->Define Document Types
Step 4) In the next screen, Press 'New Entries' Button from the Application Toolbar

For Maintaining New Document Type

Step 5) In the next screen, Enter the Following

1. Enter a unique Document Type Key

2. Enter the Document Type description
3. Select a number range for the Document Type
4. In Account Type Allowed Section , select the Account type which you would like to do
posting
5. Enter Appropriate Selection in the Control Data Section
Step 6) Press 'Save' button

Step 7) In the next screen , Enter the Customizing request number to create the new G/L
Document Type
For Maintaining new Number Range

Step 8) Press 'Number range Information' Button in the properties section

Step 9) In the next screen ,

1. Enter the Company Code for which you want to maintain the number range
2. Press 'Change Interval ' Button

Step 10) In the next screen , Press 'Insert Interval' Button

Step 11) In the next screen,

1. Enter a unique number range key

2. Enter the fiscal year for which the range is defined
3. Enter the Start Number and End Number of range without overlapping other Number
Ranges
4. Mark it as External if you want to insert the Document number manually during document
creation
5. Press 'Insert' Button
Step 12) In the next screen , the new number range is listed

List of Account Types with Description

Standard Document Types in SAP

Account Type Description

A Asset
D Customer

K Vendors

M Material

S General Ledger Accounts

How to Define Number Range

Document Types in SAP Description for Document Types in SAP

AA Asset posting

AB Accounting doc

AE Accounting doc

AF Dep. postings

AN Net asset posting

C1 Closing GR/IR accts

CI Customer invoice

CP Customer payment

DA Customer

DB Cust.recurring entry
DE Customer invoice

DG Customer credit memo

DR Customer invoice

DZ Customer payment

G/L Document Tutorial: Park, Hold, Posting with

Refrence in SAP
In this tutorial, you will learn-

 How to Park a G/L Document Posting

 How to Hold a G/L Document Posting
 How to Post a Document with Reference in SAP

How to Park a G/L Document Posting

In SAP ,User can be provided with Limited Authorization Amount for Posting .

For example ,an Accounting clerk has authority to post documents to a maximum amount
$5000. .While feeding document he finds that the document amount is $10000 for which he
does not have the authority .

In such cases, SAP has provided Park Facility for the document which allows the user to save
the document but the amount is not posted in the G/L Accounts .The document can be later
reviewed by High Authority Personnel who has appropriate posting amount authorization. Once
approved , the document is posted in G/L Accounts.

Here is an Demo for Parking a G/L Account Document

Step 1) Enter Transaction Code FB50 for G/L Account Posting in SAP Command Field
Step 2) In the next screen , Enter the following

1. Enter Document Date

2. Enter G/L Account To be Credited
3. Enter Credit Amount
4. Enter G/L Account To be Debited
5. Enter Debit Amount
Step 3) Press Park Button

Step 4) Check the status for the Park Document Number.

How to Hold a G/L Document Posting

A user may want to temporarily save the document under following conditions

 G/L Document is not complete

 User does not has complete or accurate information
 User wants to complete or correct the document at a later stage

Under such situations , you can HOLD a document without posting the document amount in the
G/L Accounts. Here is an Demo for Holding a G/L Account Document
Step 1) Enter Transaction Code FB50 for G/L Account Posting in SAP Command Field

Step 2) In the next screen , Enter the following

1. Enter Document Date

2. Enter G/L Account To be Credited
3. Enter Credit Amount
4. Enter G/L Account To be Debited
5. Enter Debit Amount
Step 3) Press Hold Button

Step 4) In the next screen, Enter the Temporary Document Number and Press Hold Document

Step 5) Check the status bar for the document to Held

How to Post a Document with Reference in SAP

Step 1) Enter Transaction code FB50 in the SAP command Field

Step 2) In the next screen, Select Goto-> Post with Reference from the SAP Standard Menu Bar

Step 3) In the next screen , Enter the Following

1. Enter the Reference Document Number

2. Enter the Company Code the Document was posted
3. Enter the Fiscal Year in Which it was posted
4. Press Enter
Step 4) In the next screen,Make appropriate changes in the document
Step 5) Press Enter , In the next screen , Check the Document
Step 6) Press Save, to Post the new document

Accounts Receivable in SAP FI

Accounts Receivable is a submodule of SAP FI used to manage and record Accounting data for
all the customers. It handles customer invoices, approvals, payments and other allied activities.

Any postings made in Accounts Receivable is updated in General Ledger G/L as well. The
Accounts Receivable submodule has tons of reports and forecasting to features to track vendor
outstanding and payments.

The chief processes covered in the sub-module are

 Maintain Master Data

 Credit Management
 Invoice Processing
 Cash Receipts and Payments
 Accounts Analysis and Reconciliation
  Reports

Here is the list of tutorials that will teach the above process.

1. Create a Customer Master Data

2. Change Customer Documents
3. How to Display Changes in Customer Master
4. How to Block or Delete a Customer
5. Create Customer Account Group
6. One Time Customer
7. How to post a Sales Invoice
8. Document Reversal
9. Sales Returns – Credit Memo
10. How to Post Incoming Payment
11. How to post a Foreign Currency Invoice
12. Incoming Partial Payments By Residual Method
13. Incoming Partial Payments By Partial Payment Method
14. How to Reset AR Cleared Items
15. Credit Control for the Customer

Customer Master Data Tutorial: Create, Display, Block,

Delete in SAP
In this tutorial, you will learn-

 How to Create a Customer Master Data


 How to Display Changes in Customer Master

 How to Block or Delete a Customer


How to Create a Customer Master Data

Step 1) Enter Transaction code FD01 in SAP Command Field
Step 2) In the Initial Screen, Enter

1. Select Account Group

2. Enter unique customer id according to number range in Account Group
3. Enter the Company code in which you want to create the customer

Step 3) Press Enter

Step 4) In the next screen, select Address Tab Enter the Following

1. Enter the name of the customer

2. Enter Search Term ,for searching the customer Id
3. Enter Street/House Number
4. Enter Postal code/City
5. Enter Country/Region
Step 5) Choose the Control Data Tab page Enter the Corporate Group if the customer belongs to
a corporate group enter the group key

Step 6) Select Company code data Button

Step 7) Select Account Management Tab Enter the Reconciliation Account

Step 8) Select Payment Transaction Tab Enter Terms of Payment

Step 9) Choose Save

Step 10) Check the status bar to see the Customer data is created

How to Display Changes in Customer Master

Step 1) Enter the Transaction Code FD04 in the SAP Command Field
Step 2) In the next screen, Enter the Following

1. Step 3) Enter the Customer Account Number

2. Step 4) Enter the Company Code

Step 5) In the next screen , Select the Field from the list of Changed Fields
Step 6) In the next screen, List is generated with New Value and Old Value of the field

How to Block or Delete a Customer

 How To Block a Customer
 How To Delete a Customer

Block a Customer

Step 1) Enter Transaction code FD05 in the SAP Command Field

Step 2) In the next screen, Enter the Following

 1. Step 3) Enter Customer Id to be Blocked
2. Step 4) Enter Company Code of the Customer for whom the Company Code Data is to be
Blocked

Step 5) In the next screen, Check the Block Indicator for the data to be Blocked

Step 6) Press 'Save' button , to proceed with the Block

Delete a Customer

Step 1) Enter Transaction code FD06 in the SAP Command Field

Step 2) In the next screen, Enter the Following

1. Enter Customer Id to be Deleted

2. Enter Company Code of the Customer for whom the Company Code Data is to be Deleted

Step 3) In the next screen, Check the Block Indicator for the data to be Deleted
Step 4) Press 'Save' button , to proceed with the Deleted

How to Create Customer Account Group in SAP

In this tutorial, we will learn How Create the Customer Account Group

Step 1) Enter Transaction Code SPRO in the SAP Command Field

Step 2) In the next screen, Select 'SAP Reference IMG' button

Step 3) In the next screen, 'Display IMG' Select the menu path

Financial Accounting ->Accounts Receivable and Accounts Payable ->Customer Accounts ->
Master Data ->Preparations for Creating Master Data->Define Account Groups with Screen
Layout(Customers)
Step 4) In the next screen , Select the 'New Entries' Button from Application Menu bar

Step 5) In the next screen , Enter the Following

1. Enter a Unique key as Account Group key

2. Enter a short description for the Account Group
3. Check this for creating Account Group for OneTime Customers
4. Enter the Output Determination Procedure
5. Select the Master Data Section for which you want to maintain the Field Status
Step 6) Press 'Edit Field Status' button to maintain the field status of the selected Master Data
Section

Step 7) In the next screen , Select the Group of fields for which you want to maintain Field Status

Step 8) In the next screen , Maintain the Field Status of Fields of the selected Group
Similarly , you can maintain field status of other Master Data Section and their Groups . After
Maintaining the Field Status , Press 'Save' in the SAP Standard Menu to Create the Account
Group

Step 9) In the next screen, Enter the Customizing Request Number Create the Customer
Account Group.
How to Create One Time Customer FD01 in SAP
In SAP , we can create One Time Customer Master Record for those customers which do not
have frequent transactions and we do not want to maintain their master records separately. In
such cases we create One Time Customer in which General Information(Name , Address, Phone
no etc ) can be maintained at the time of transaction.

Step 1) To Create a One Time Customer Master, Enter Transaction Code FD01 in SAP
Command Field

Step 2) In the next screen , Select Account Group Overview Button

Step 3) In the next dialog box, Select the Account Group in which One Time Customer Property
is Checked.
Step 4) In the main screen ,Enter the Following

1. Enter the Customer Id as per the Number range Assigned to the Account Group
2. Enter the Company Code in which the master is to be created

Step 5) In the next screen in the General data - Address Tab, Enter the Following

1. Enter the name for the One Time Customer Master

2. Enter the Search Term
3. Enter the Communication Language
Step 6) Select the Company Code Section in the Application Menu

Step 7) In the next screen in the Company Code Section,

1. Select the Account Management Tab

2. Enter the Reconciliation G/L Account Number
Step 8) Press 'Save' to Create the new One time Customer Master

Step 9) Check the Status bar for the Creation of the new Customer Master

How to Create Customer Sales Invoice FB70 in SAP

FICO
In this tutorial, we will learn How to Create Customer Sales Invoice

Step 1) Enter transaction FB70 in SAP Command Field

Step 2) In the Next Screen , Enter Company Code you want to post invoice to

Step 3) In the next screen, Enter the Following

1. Enter the Customer ID of the customer to be Invoiced

2. Enter Invoice Date
3. Enter Amount for Invoice
4. Select Tax Code for the Tax Applicable
5. Select Tax Indicator "Calculate Tax".
Step 4) Check for Payment Terms in the Payment Tab Page

Step 5) In the Item Details Section, Enter the Following

1. Enter the Sales Revenue Account

2. Select Credit
3. Enter Amount for the Invoice
4. Check Tax code

Step 6) After completing the above entries check the status of the document

Step 7) Press Post Button in Standard bar and wait for Document number to be generated
and display on the status bar for Conformation

You have Successfully posted a Sales invoice

Document Reversal FB08 in SAP: Step by Step Guide

This tutorial will take you through the steps to perform Document Reversal.

Step 1) Enter Transaction code FB08 in the Command Field

Step 2) In the next screen, Enter the Following Data

1. Enter the Document number of the Document to be reversed

2. Enter Company code of the Document posting
3. Enter the Fiscal Year for the Posting
4. Enter the Reversal Code (Reason for Reversal)
5. Enter the posting date
6. Or Enter the posting period
7. If Document has allotted a check for payment, Enter the reason code to void the check.
Step 3) Check the document by pressing " Display before reversal"

Step 4) Check the document

Step 5) Move back to previous screen and then Press Save from the Standard toolbar
Step 6) Check the status bar for the reversal document number generated

You have successfully done a document reversal.

FB75 in SAP: Guide to Post a Sales Returns – Credit

Memo
In this tutorial, we will learn How post a customer credit memo for the Sales Return

Step 1) Enter the transaction code FB75 in the Command Field

Step 2) In the next screen, Enter the Company Code for document to be posted

Step 3) In the Basic Data tab , Enter the Following data

1. Enter the Customer ID of the customer to be issued the credit memo

2. Enter the Document Date
3. Enter the Amount to be credited
4. Enter the tax code used in the original invoice
5. Check the Calculate Tax check box
Step 4) In the Item details section, Enter the following data

1. Enter the Sales Revenue Account for the Original Invoice was posted
2. Enter the Amount to be debited
3. check the Tax code

Step 5)Check the status of the document

Step 6) Press Post button from the Standard Toolbar

Step 7) Check the status bar for the document number to be generated

You have successfully posted a customer credit memo for the Sales Return
How to post Customer Incoming Payments F-28 in SAP
In this tutorial, we will learn How to post Incoming Payments

Step 1) Enter the transaction code F-28 in the Command Field

Step 2) In the next screen, Enter the following data

1. Enter the Document Date

2. Enter the Company Code
3. Enter the Payment Currency
4. Enter the Cash/Bank Account the Payment is to be posted
5. Enter the Payment Amount
6. Enter the Customer Id of the customer making the Payment
Step 3) Press the Process Open Items Button to display the list of Pending Invoice

Step 4) Assign the Payment Amount to Appropriate Invoice so as to balance the Payment with
the Invoice Amount
Step 5) Press Post from the Standard Toolbar to post the Incoming Payment

Step 6) Check for the Status bar for the Document number to be generated

You have successfully post the Incoming Payments

How to Post Foreign Currency Invoice FB70 in SAP

In this tutorial, we will learn Foreign Currency Invoice in SAP

Step 1) Enter Transaction code FB70 in the SAP Command Field

Step 2) In the next screen ,Enter the Following Data

1. Enter Customer Id of the customer whom invoice is to be posted.

2. Enter Invoice Date
3. Enter Document Type as Customer Invoice
4. Enter the Currency in which invoice is to be posted (Document Currency)
5. Enter Invoice Amount
6. Enter Tax Code applicable in the invoice
7. Enter the Sales Revenue G/L Account to be credited
8. Enter the Credit Amount
Step 3) We can adjust the Exchange Rate in the Local Currency Tab

Step 4) After Maintaining the Exchange Rate , Press 'Save' to post the Document

Step 5) Check the Status bar for the Document Number generated
Residual Method: Incoming & Outgoing Partial
Payments Posting in SAP
In this tutorial, we will learn Incoming & Outgoing Partial Payments Posting using Residual
Method

Incoming Partial Payments Posting

In SAP,when a Partial Payment by Customer is Posted as Residual Item against an outstanding
document then , the system clears that document and creates a fresh document with residual
amount as the open item.

Here the Demo of how to post a Partial Payment by Residual Method

Step 1) Enter Transaction Code F-28 in the SAP Command Field

Step 2) In the next screen, Enter the following data

1. Enter Document Date

2. Enter Company Code in which the payment is to be posted
3. Enter payment currency
4. Enter the Cash/Bank Account in which the payment is to be posted
5. Enter the Payment Amount
6. Enter Customer ID of the Customer making the payment
7. Press 'Process Open Items'
Step 3) In the next screen ,

1. Choose the Residual Items Tab

2. Select and Activate the Invoice against which the partial payment has been made.
3. Enter the Residual Amount
Step 4) Press 'Save' to post the Payment Document

Step 5) Check the Status bar for the Document Number Generated.

Outgoing Partial Payments Posting

Step 1) Enter Transaction Code F-53 in the SAP Command Field
Step 2) In the next screen, Enter the following data

1. Enter Document Date

2. Enter Company Code in which the payment is to be posted
3. Enter the Cash/Bank Account in which the payment is to be posted
4. Enter the Payment Amount
5. Enter Vendor ID of the Vendor making the payment
6. Press 'Process Open Items'
Step 3) In the next screen ,

1. Choose the Residual Items Tab

2. Select and Activate the Invoice against which the partial payment has been made.
3. Enter the Residual Amount
Step 4) Press 'Save' to post the Payment

Document

Step 5) Check the Status bar for the Document Number Generated.

Partial Method: Incoming & Outgoing Partial

Payments Posting in SAP
In this tutorial, we will learn Incoming & Outgoing Partial Payments Posting using Partial Method

Incoming Partial Payments Posting

In SAP we can post Incoming Payments as Partial Payments . The partial payments which will be
posted as a separate open(Outstanding) item . For example a customer has an outstanding of
1000 and he makes a payment of 400 as partial payment then there will two separate
open(Outstanding) items of 1000 Dr and 400 Cr .No clearing document is created.
Here is a Demo on how to post a partial payment by Partial Payment Method

Step 1) Enter a Transaction Code F-28 in the SAP Command Field

Step 2) In the next screen, Enter the following data

1. Enter Document Date

2. Enter Company Code in which the payment is to be posted
3. Enter payment currency
4. Enter the Cash/Bank Account in which the payment is to be posted
5. Enter the Payment Amount
6. Enter Customer ID of the Customer making the payment
7. Press 'Process Open Items'
Step 3) In the next screen ,

1. Choose the Partial Payment Tab

2. Select and Activate the Invoice against which the partial payment has been made.
3. Enter Partial Amount
Step 4) Press 'Save' to post the Payment Document
Step 5) Check the Status bar for the Document Number Generated.

Outgoing Partial Payments Posting

Step 1) Enter a Transaction Code F-53 in the SAP Command Field
Step 2) In the next screen, Enter the following data

1. Enter Document Date

2. Enter Company Code in which the payment is to be posted
3. Enter the Cash/Bank Account in which the payment is to be posted
4. Enter the Payment Amount
5. Enter Vendor ID of the Vendor making the payment
6. Press 'Process Open Items'
Step 3) In the next screen ,

1. Choose the Partial Payment Tab

2. Select and Activate the Invoice against which the partial payment has been made.
3. Enter Partial Amount
Step 4) Press 'Save' to post the Payment Document

Step 5) Check the Status bar for the Document Number Generated.

FD32 in SAP: Credit Control Area Tutorial

Multiple outstanding receivables or bad debts can have a considerable impact on company's
performance.

Using Credit Control , you can minimize your credit risk by defining a credit limit for your
customers.

In SAP , Credit and risk management takes place in the credit control area. If your credit
management is centralized, you can define one credit control area for all of your company codes.
On the other hand, if your credit policy requires decentralized credit management, you can define
credit control areas for each company code or each group of company codes.

A credit control area, is used to define ,and control, customer credit limits.
We can Maintain Credit Control Area Master Data for a customer :

Step 1) Enter Transaction Code FD32 in SAP Command Field

Step 2) In the next screen, Enter the Following

1. Enter Customer Id for the Customer for which you want display the Credit Limits
2. Enter the Credit Control Area
3. Check Central data section
Step 3) In the next screen ,Maintain the Credit Management Data for the Customer
Step 4) Press "Save" button from the SAP Standard Toolbar for save the changes made in the
credit limits

Accounts Payable in SAP FI

Accounts Payable is a submodule of SAP FI used to manage and record Accounting data for all
the vendors. It handles vendor invoices, approvals, payments and other allied activities.

Any postings made in Accounts Payable is updated in General Ledger as well. The Accounts
Payable submodule has tons of reports and forecasting to features to track vendor outstanding
and payments.

The chief processes covered in the sub-module are

 Maintain Vendor Master Data

 Invoice Handling
 Payments
 Account Analysis of Reconciliation
 Reports

Here is the list of tutorials that will teach the above process.

1. How to Create a Vendor

2. How To Create a Vendor Account Group
3. How to Display Changes in Vendor Master
4. How to Block or Delete a Vendor
5. Create Vendor Master Data
6. One Time Vendor
7. Purchase Invoice Posting
8. Purchases Returns – Credit Memo
9. Outgoing Payments
10. Foreign Currency Vendor Invoice
11. How to Post Withholding Tax during Vendor Invoice Posting
12. How to Post Withholding Tax During Payment Posting
13. Outgoing Partial Payments By Residual Method
14. Outgoing Partial Payments By Partial Payment Method
15. Reset AP Cleared Items
16. Automatic Payment Run
17. How to Map Symbolic Account to G/L Account
18. Posting Rounding Differences

How To Create a Vendor Account Group in SAP FICO

In this tutorial, we will learn How to Create the Vendor Account Group in SAP
Step 1) Enter Transaction Code SPRO in the SAP Command Field

Step 2) In the next screen, Select 'SAP Reference IMG' button

Step 3) In the next screen, 'Display IMG' Select the menu path Financial Accounting ->Accounts
Receivable and Accounts Payable ->Vendor Accounts -> Master Data ->Preparations for
Creating Vendor Master Data->Define Account Groups with Screen Layout(Vendors)

Step 4) In the next screen , Select the 'New Entries' Button from Application Menu bar

Step 5) In the next screen , Enter the Following

1. Enter a Unique key as Account Group key

2. Enter a short description for the Account Group
3. Check this for creating Account Group for OneTime Vendors
4. Select the Master Data Section for which you want to maintain the Field Status
Step 6) Press 'Edit Field Status' button to maintain the field status of the selected Master Data
Section

Step 7) In the next screen , Select the Group of fields for which you want to maintain Field Status
Step 8) In the next screen , Maintain the Field Status of Fields of the selected Group
Similarly , you can maintain field status of other Master Data Section and their Groups. After
Maintaining the Field Status , Press 'Save' in the SAP Standard Menu to Create the Account
Group

Step 9) In the next screen, Enter the Customizing Request Number Create the Vendor Account
Group.
How to Block or Delete a Vendor in SAP FICO
In this tutorial, we will learn

 How To Block a Vendor

 How to Delete a Vendor

Block a Vendor
Step 1) Enter Transaction code FK05 in the SAP Command Field

Step 2) In the next screen, Enter the Following

1. Enter Vendor Id to be Blocked

2. Enter Company Code of the Vendor for whom the Company Code Data is to be Blocked

Step 3) In the next screen, Check the Block Indicator for the data to be Blocked
Step 4) Press 'Save' button , to proceed with the Block

Delete a Vendor
Step 1) Enter Transaction code FK06 in the SAP Command Field

Step 2) In the next screen, Enter the Following

1. Enter Vendor Id to be Deleted

2. Enter Company Code of the Vendor for whom the Company Code Data is to be Deleted
Step 3) In the next screen, Check the Block Indicator for the data to be Deleted

Step 4) Press 'Save' button , to proceed with the Deletion

Step by Step Guide to Create Vendor Master Data in

SAP
In this tutorial, we will learn,

 How to create a Vendor

 How to Display Changes in Vendor Master
How to create a Vendor
This tutorial takes you through the steps to create Vendor Master Data

Step 1) Enter Transaction code FK01 in SAP Command Field

Step 2) In the Initial Screen, Enter

1. Select Account Group

2. Enter the Company code in which you want to create the vendor
3. Enter unique Vendor id according to number range in Account Group You can also leave
the Vendor field blank. The system will assign a number when the data is saved

Optional - In the Reference section:

1. In the Vendor field, you can enter a reference Vendor if the details are similar to the new
Vendor.
2. In the Company Code field, you can enter the reference Vendor's company code.

In this tutorial we will create a vendor without a reference. Click the Enter button.

Press Enter
Step 3) In the next screen, In Address Tab Enter the Following

1. Enter the name of the Vendor

2. Enter Search Term ,for searching the Vendor Id
3. Enter Street/House Number
4. Enter Postal code/City
5. Enter Country/Region
Step 4) Next in the Account Control section page Enter the Corporate Group if the Vendor
belongs to a corporate group enter the group key

Step 5) Next in the Account Management Section

 1. Enter the Reconciliation Account
2. Enter the Cash Management Group

Step 6) Next in Payment Accounting Section , Enter the Payment Terms

Step 7) Choose Save from the Standard Toolbar

Check the Status bar for Confirmation of successful creation of Vendor Master.

Change an existing vendor account - transaction FK02

Display a vendor account - transaction FK03
How to Display Changes in Vendor Master
Enter the Transaction Code FK04 in the SAP Command Field

In the next screen, Enter the Following

1. Enter the Vendor Account Number

2. Enter the Company Code
In the next screen , Select the Field from the list of Changed Fields
In the next screen, List is generated with New Value and Old Value of the field

How to Create One Time Vendor FK01 in SAP

In SAP , we can create One Time Vendor Master Record for those Vendors who do not have
frequent transactions and we do not want to maintain their master records separately. In such
cases we create One Time Vendor in which General Information(Name , Address, Phone no etc )
can be maintained at the time of transaction.To Create a One Time Vendor Master -

Step 1) Enter Transaction Code FK01 in SAP Command Field

Step 2) In the next screen , Select Account Group and Press F4 for Help

Step 3) In the next dialog box, Select the Account Group in which One Time Vendor Property is
Checked.
Step 4) In the main screen ,Enter the Following

1. Enter the Vendor Id as per the Number range Assigned to the Account Group
2. Enter the Company Code in which the master is to be created
Step 5) In the next screen in the General data - Address Tab, Enter the Following

1. Enter the name for the One Time Vendor Master

2. Enter the Search Term
3. Enter the Communication Language
Step 6) In the next screen in the Company Code Section,in the Account Management Tab

1. Enter the Reconciliation G/L Account Number

2. Enter the Cash Management Group
Step 7) Press 'Save' to Create the new One time Vendor Master

Step 8) Check the Status bar for the Creation of the new Vendor Master

Withholding Tax in SAP during Vendor Invoice &

Payment Posting
In this tutorial, you will learn-

 Post Withholding Tax during Vendor Invoice Posting

 Post Withholding Tax During Payment Posting

Post Withholding Tax during Vendor Invoice Posting

Step 1) Enter the transaction code F-53 in the Command Field
Step 2) In the next screen, Enter the following data

1. Enter the Document Date

2. Enter the Cash/Bank Account the Payment is to be posted
3. Enter the Payment Amount
4. Enter the Vendor Id of the Vendor receiving the Payment
Step 3) In the next screen,Assign the Payment Amount to Appropriate Invoice so as to balance
the Payment with the Invoice Amount
Step 4) From the Standard Menu bar , Navigate to Simulate the Clearing Document

Step 5) In the next screen, we can check the Withholding Tax is also Credited as per the base
amount entered in the Invoice.
Step 6) Press Post from the Standard Toolbar to post the Incoming Payment

Step 7) Check for the Status bar for the Document number to be generated

Post Withholding Tax During Payment Posting

Step 1) Enter transaction FB60 in SAP Command Field
Step 2) In the Next Screen , Enter Company Code you want to post invoice to

Step 3) In the next screen, Enter the Following

1. Enter the Vendor ID (Withholding Tax Enabled )of the Vendor to be Invoiced
2. Enter Invoice Date
3. Check Document Type Vendor Invoice
4. Enter Amount for Invoice
5. Select Tax Code for the Tax Applicable
6. Select Tax Indicator "Calculate Tax".
7. Enter the Purchase Account
8. Enter Amount for the Invoice
Step 4) After completing the above entries Select the Withholding Tax Tab and Enter the
Following

1. Enter the Tax Base Amount

2. Enter the Tax Exempt Amount
3. Check the Withholding Tax Code

Step 5) Press Post Button in Standard bar

Step 6) And wait for Document number to be generated and display on the status bar for
Conformation

Automatic Payment Program Run F110: SAP Tutorial

Introduction
The Payment Process includes the Following Steps

1. Invoices are Entered

2. Pending Invoices are analyzed for due date
3. Invoices due for payment are prepared for review
4. Payments are approved or modified
5. Invoices are paid

A consistently high volume of invoices have to be processed. Accounts Payable Invoices have to
be paid on time to receive possible discounts. The Accounting department wishes to perform this
processing of invoices automatically. The Automatic Payment Program is a tool that will help
users manage payables. SAP gives users the options to automatically:

1. Select Open(Pending) Invoices to be paid or collected

2. Payment Documents to be posted
3. Print Payment Media or generate EDI

The Automatic Payment Program has been developed for both national and international
payment transactions with vendors and customers , and handles both outgoing and incoming
payments. Configuration We can configure the Payment Program by selecting the Payment
Program (Tcode - F110 ) Application menu Environment -> Maintain Config

The Settings for Automatic Payment program are divided into following Categories :

1. All Company Codes

 2. Paying Company Codes
3. Payment Methods / Country
4. Payment Methods / Company Codes
5. Bank Selection
6. House Banks

All Company Codes : In this section we perform the following settings

1. Inter Company Payment Relationship

2. The Company codes that process payments
3. Cash Discounts
4. Tolerance days for Payments
5. The Customer and Vendor Transactions to be Processed
Paying Company codes : In this section we perform the following settings

1. Minimum Amounts for Incoming and Outgoing Payments

2. Bill of Exchange Parameters
3. Forms for Payment Advice and EDI
Payment Method / Country : In this section we perform the following settings

1. Methods of Payments - Cheques , bank transfers etc

2. Settings for individual Payment Methods -
1. Master record requirements
2. Document Types for Posting
3. Permitted currencies
4. Print Programs
Payment Method / Company Code: In this section we perform the following settings

1. Minimum and maximum payment amounts

2. Whether payments abroad and foreign currencies are allowed
3. Grouping Options
4. Bank Optimization
5. Forms for payment media
Bank Selection :

1. Ranking Order
2. Amounts
3. Accounts
4. Charges
5. Value Dates
Ranking Order

Bank Accounts

Available Amounts
Value Dates

Expenses / Charges

Execution : After Configuration of the Payment Process we will enter parameters to execute the
program. Enter the Transaction code F110 in the SAP Command Field
Every Payment Program run is identified by two fields

1. Run date
2. Identification

In the Parameters Tab , We have to define the following

1. What is to be paid - Docs. Entered Up to

2. What payment methods will be used - Payment Methods
3. When will the payments be made - Posting Date
4. Which company codes will be considered - Company Codes
5. How are they going to be paid - Payment Method Sequence decides the Priority of the
Payment Method
Save the Parameters Entered

After the Parameters are Entered we execute the Program by pressing the proposal button in
Application Toolbar

In the next dialog box , Check the "Start Immediately" and press Continue
A payment proposal is generated based on the parameters.

We can view the Proposal Log for possible errors by Pressing the Proposal Log Button
We can edit the proposal to block the some payments if we want, Press the Edit Proposal Button
 In the next screen , the Proposal List of Vendors is generated who are to receive the Payments

After edit the Proposal , and then run the payment run to release the payments. We can schedule
the payment run by coming back to main screen pressing the Payment Run button

In the next Dialog box , Check "Start Immediately" to start the payment run instantly and Press
continue
 We can check the status of the Payment run on the Status Tab

How to perform Dunning: SAP F150

Dunning

It is the process of Correspondence with the Customer/Vendor about pending bills ( in sap as we
call it open items). In SAP we can schedule the Dunning Process and maintain different Dunning
Levels for Dunning run.The Dunning process involves the following steps:
 1. Entering Parameters in the dunning program.The parameters of old dunning run can be
copied and dates can be adjusted.
2. The Dunning run selects the accounts, examines them for overdue items, checks if they
have to be dunned, and assigns dunning levels to them.All dunning data is stored in a
dunning proposal.
3. The Dunning Proposal can be edited ,deleted and recreated as often as necessary until the
dunning clerk is satisfied with the result.
4. If desired ,this step can be skipped and the dunning run can be followed directly by the
printout of dunning notices.
5. In One Click,Dunning notices are printed and dunning data is updated in the master
records and associated documents.

Step 1) We will perform a Complete Dunning run as a background scheduled job- Enter the
Transaction F150 in the SAP Command Field

Step 2) In the next screen ,Enter the Following

1. Enter the Dunning run date

2. Enter the Dunning run Identification
Step 3) In the Parameters Tab

1. Enter the Dunning Date

2. Enter the Date upto which the documents for dunning are to be considered
3. Enter the Company Code for dunning
4. Enter customers and vendors to be dunned

Step 4) Save the Dunning Parameters

Step 5) Schedule the Dunning run by pressing the Schedule button

Step 6) In the next screen select the printer to print the dunning notices generated
Step 7) In the next screen schedule the time of dunning run

Step 8) Check the Status of the Dunning run

Step 9) We can check the Dunning Notice in Spool Requests

SAP Correspondence Tutorial: Configuration,
Generation, Printing & Email
There are various standard correspondence types available like invoice print, account statement
etc. Custom correspondence types can also be created.

Correspondences can be created at the time of particular business transaction processing or at a

later stage for already created transaction postings.

Correspondence can be sent to customer/ vendor in various formats like email, and fax.
Correspondence is basically letters etc. which is sent from SAP to vendor/ customer etc.

Correspondence can be created individually or collectively, ad-hoc or via automated batch job.

In this tutorial, you will learn-

 Types of correspondence
 Correspondence Configurations
 Correspondence Generation
 Correspondence Printing
 Correspondence Via Email

Types of correspondence
Following is example list of various standard correspondence types, which can be copied to
create a specific custom form, program, etc.

Correspondence Correspondence Print Required Data Sample standard SAP

Type Description Program Script Form

SAP01 Payment notices RFKORD00 Document F140_PAY_CONF_01

number

SAP06 Account statements RFKORD10 Account F140_ACC_STAT_01

number and
date

SAP07 Bill of exchange RFKORD20 Document F140_BILL_CHA_01

charges statements number

SAP09 Internal documents RFKORD30 Document F140_INT_DOCU_01

number

SAP10 Individual letters RFKORD40 Account F140_IND_TEXT_01

number

SAP11 Document extracts RFKORD50 Document F140_DOCU_EXC_01

number

SAP13 Customer statements RFKORD11 Customer F140_CUS_STAT_01

number and
date

Correspondence Configurations
Configuration of Correspondence in SAP can be carried out in the following steps below

Step 1) Define Correspondence Type

Path: - SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable >
Customer Accounts > Line Items > Correspondence > Make and Check Settings for
Correspondence > Define Correspondence Types

Transaction Code:-OB77
Here various SAP standard correspondence types are available. You can also create your
custom correspondence types. You can specify that what data is required for generating a
correspondence, e.g. for account statement you can specify that customer/ vendor master is
necessary for the statement. Also, you can specify the date parameters and the text to appear for
date selection.

Step 2) Assign Program to Correspondence Type

Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable >
Customer Accounts > Line Items > Correspondence > Make and Check Settings for
Correspondence > Assign Programs for Correspondence Types

Transaction Code: -OB78

Here you need to link the correspondence generator program to the correspondence type. You
can also specify different programs for different company codes. (Also, you can specify the
default variant here for the program to execute. You can create such variant from
transaction SE38/ SA38for the program.)

You can also create your own custom program as a copy of the standard program and can make
suitable changes to meet any of your client specific need.
Step 3) Determine Call-Up Functions for Correspondence Type

Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable >
Customer Accounts > Line Items > Correspondence > Make and Check Settings for
Correspondence > Determine Call-Up Functions

Transaction Code:-OB79

Here you need to specify that at what point of time you can generate the particular
correspondence type. You can also specify a different setting for different company codes. The
various options available are:-

 At the time of document entry (e.g. FB50, FB60, etc.)

 At the time of posting payments (e.g. F-28, F-26, etc.)
 At the time of document display or change (e.g. FB02, FB03, etc.)
 At the time of account display (e.g. FBL1N, FBL5N, etc.)

Step 4) Assign Correspondence Form to Correspondence Print Program

Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable >
Customer Accounts > Line Items Correspondence > Make and Check Settings for
Correspondence > Define Form Names for Correspondence Print

Transaction Code: -OB96

Here you need to specify that which forms definition will be used by the correspondence print
program. You can also specify a different setting for different company codes. (The SAP Script
form is defined using the transaction SE71, where the various data is arranged in the output
format to get processed. This SAP Script form defines the layout in the output.)

You can also use two digit form IDs, by which you can call different forms for different form IDs in
the same company code.

This form ID can be given in the selection screen of the print program generating
correspondence. You can select only one form ID at one time for a correspondence type. You
can create multiple correspondence types, triggering different form ids.

Step 5) Define Sender Details for Correspondence

Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable >
Customer Accounts > Line Items > Correspondence > Make and Check Settings for
Correspondence > Define Sender Details for Correspondence Form

Transaction Code:-OBB1

You can here link the details for header, footer, signature and sender. This text is defined using
the transaction SO10 with text ID as linked above (e.g. ADRS). You can also specify a different
setting for different company codes.(Also two digit sender variant can be defined, which you can
give to the selection parameters of the print program. This will enable different sender details
within same company code.)

Step 6) Define Sort Variants for Correspondence

Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable >
Customer Accounts > Line Items > Correspondence > Make and Check Settings for
Correspondence > Define Sort Variants for Correspondence

Transaction Code: -O7S4

You can here specify that in which order the correspondence letters will get generated. E.g. if you
are generating account statement for multiple vendors, then vendors will get sorted in this order
and then the letter will get generated. This Sort Variant can be given in the selection screen of the
print program generating correspondence.

Step 7) Define Sort Variants for Line Items in Correspondence

Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable >
Customer Accounts > Line Items > Correspondence > Make and Check Settings for
Correspondence > Define Sort Variants for Line Items

Transaction Code: -O7S6

You can here specify that in which order the various line items will appear in a correspondence
letters. E.g. if a vendor account statement has multiple invoices, then invoices will get sorted in
this order and then the letter will get generated.

This Sort Variant can be given in the selection screen of the print program generating
correspondence.

Correspondence Generation
As shown earlier also while configuring the call-up point, the correspondence can be generated at
below point of times:-

1. At the time of document entry (e.g. FB50, FB60, etc.)

2. At the time of posting payments (e.g. F-28, F-26, etc.)
3. At the time of document display or change (e.g. FB02, FB03, etc.)
4. At the time of account display (e.g. FBL1N, FBL5N, etc.)

Correspondence can be generated for a particular document or for vendor(s)/ customer(s)

account. Subsequent slides will explain the generation of correspondence via different ways and
its printing.

Correspondence Generation (Method A):-

The correspondence can be generated while you create, change or display the document.

For this go to Environment > Correspondence and select relevant correspondence type, e.g. see
the below screen in FB70 customer invoice creation:-
Similarly, you can create the correspondence from document display/ change from the
transaction, like in FB02/ FB03/ FBl1N/ FLB5N, etc.

Correspondence Generation (Method B)

For existing accounting documents you can use transaction code FB12.

Hereafter entering the company code, it will ask the correspondence type. Select
Correspondence Type and it will ask you to enter document number/ account no. etc. based on
the correspondence type setting. After this, the correspondence is requested.
Correspondence Generation (Method C)

From transaction F.27, you can generate the correspondence (Account Statement) for vendor(s) /
customer(s).
Here "Indicator in Master Record", the value given should match with the value given in customer/
vendor master data > Company Code > Correspondence.

If you select "Individual Request" check box, then if the same vendor/ customer has line items in
multiple company codes, then for each company code a separate statement will get generated.

Correspondence Printing
Correspondence Printing (Method A):-

Use transaction code F.61 to print the relevant correspondence type already generated. On
execution, it will simply print the correspondence (If Email/ Fax, etc. is configured, then output will
be generated in that format)

Correspondence Printing (Method B):-

From transaction F.64, you can see the correspondence letter (Spool) generated and can print it.
(The difference from F.61 is that, in F.64 you can also do other operations (like delete, print
preview, etc.) for correspondence request already generated.)

The spool generated can be seen and printed from transaction SP02 or System > Own Spool
request.

Correspondence Via Email

Maintain the email address in the setting in customer/ vendor master > General Data > Address
Tab > Communication and select the communication method as email.

Also maintain the email id in customer/ vendor master > Company Code Data > Correspondence
Tab.
Then the correspondence for this customer/ vendor will get generated in email format instead of
print output (Taking into account the user exit setting made to determine method of
communication in the user exit given in next slide.)

(Note: Similarly you can make setting for Fax output via selecting the standard
communication as FAX and maintaining Fax no.)