Table of Contents

1. ENTERPRISE STRUCTURE ............................................................................................................................ 3

1.1 Definitions .............................................................................................................................. 3 1.2 Define Credit Control Area ................................................................................................. 4 1.3 Define functional Area ......................................................................................................... 4 1.4 Maintain FM Area Define Segments .......................................................................................................................... 4 1.8 Define Variant for Open Posting Periods .......................................................................... 6 1.9 Open & Close Posting Periods ............................................................................................ 6 1.10 Maintain Field Status Variants .......................................................................................... 7 1.7 Assign Company Code to a Fiscal Year Variant:.............................................................. 8 1.11 Assign Company Code to Field Status Variants ............................................................ 9
2. CHART OF ACCOUNTS .............................................................................................................................. 11

2.1 Edit Chart of Accounts List ............................................................................................... 11 2.2 Define Accounts Group...................................................................................................... 12 2.3 Assign the Co. Code to Chart of Accounts ...................................................................... 12 2.4 Define Retained Earnings Account .................................................................................. 13 2.5 Define Document Number Ranges .................................................................................. 14
3. TOLERANCE ................................................................................................................................................. 15

3.1 Define Tolerance Groups for Employees......................................................................... 15 3.2 Assign users to tolerance groups ...................................................................................... 16 3.3 Define Tolerances for Customers/Vendors .................................................................... 16 3.4 Maintain General Ledger Tolerance ................................................................................. 17
4. NEW G.L. ACCOUNTING ........................................................................................................................... 19

4.1Define Ledger for GL a/cs- (for the NL ledger only, as Leading ledger is system defined) ......................................................................................................................... 19 4.2Define & Activate Non Leading ledger ............................................................................ 20 4.3Assign Scenarios & Customer Fields to Ledger .............................................................. 20 * * * Creating GL a/c: ................................................................................................................ 21
5. DOCUMENT SPLITTING............................................................................................................................. 22

5.1 Classify G/L A/c for Document splitting ....................................................................... 22 5.2 Define Document Splitting characteristics for GL accounting ..................................... 22
6.HOUSE BANK ................................................................................................................................................ 23

Step 1 Creating these 3 GL a/cs .......................................................................................... 23 Step 2 Define House Banks ................................................................................................... 24 Cheque Issue Process .............................................................................................................. 26 Step 1 Define number range for Cheques{FCHI} ............................................................... 26 Automatic Payments Program ................................................................................................ 27 Step 1 Set up all Company Codes for Payment Transactions .......................................... 27 Step 2 Set up Paying Company Codes for Payment Transactions .................................. 27 Step 3 Set up Payment Methods per Country for Payment Transactions ...................... 28 Step 4 Set up Payment Method Per Co. Code for Payment Transaction ..................... 31

Step 5 Set Up Bank Determination for Payment Transactions ........................................ 33 Step 6 Linking Payment Method & House Bank to Vendor Master Record.................. 35 Step 7 Execution of Automatic Payment Program .......................................................... 35
7. ACCOUNTS RECEIVABLE (Customer) ...................................................................................................... 36

7.1 Define Account Group with Screen Layout (Customers) ............................................. 36 7.2 Create Number Range for Customers Account .............................................................. 37 7.3 Assign number Range for Customers Account Group.................................................. 38 7.4 Enter Accounting Clerk Identification Code for Customer .......................................... 38 7.5 Creation of Customer Reconciliation A/c ....................................................................... 38 6.3 Create Customer Master Record [(XD01- Create)] ......................................................... 39 6.4 Number range for Customer Document ......................................................................... 39 6.5 Define Document Types for G.L. View............................................................................ 41 6.6 Posting Customer Invoice .................................................................................................. 41 6.7 Display Balance ................................................................................................................... 42 6.8 Display Line items .............................................................................................................. 42 6.9 Configuration for Incoming Payment .............................................................................. 42 (Step 1) Define Document type for Entry View .................................................................... 42 (Step 2) Define Document type for G.L. View ...................................................................... 43 (Step 3) Classify General Ledger a/c for Document splitting ............................................ 43 (Step 4) Incoming Payments .................................................................................................... 45
7. ACCOUNTS PAYABLE (Vendor) ................................................................................................................ 46

7.1 CONFIG FOR VENDOR INVOICE POSTING ................................................................... 46 7.1.1 Define Account Groups with Screen Layout (Vendors)............................................. 46 7.1.2 Create Number Ranges for Vendor Accounts: ............................................................ 47 7. 1.3 Assign Number Ranges to Vendor Account Groups................................................. 48 7. 1.4 Define Accounting clerk................................................................................................. 49 7. 1.5 Create Vendor Reconciliation Account........................................................................ 49 7. 1.6 Create Vendor Master Records ..................................................................................... 49 7. 1.7 Number ranges for vendor invoice .............................................................................. 50 7. 1.8 Define Document Types for G.L. View........................................................................ 50 7. 1.9 Define Document no range for G.L. View ................................................................... 51 7. 1.10 Vendor Invoice Posting ................................................................................................ 51 7.2 VENDOR PAYMENT CONFIGURATION ......................................................................... 52 7.2.1 Document number ranges for Vendor Payment ......................................................... 52 7.2.2 Define document for GL view........................................................................................ 52 7.2.3 Outgoing Payments ......................................................................................................... 52 7.3 CONFIGURING OUTGOING PAYMENT.......................................................................... 52
8. DOWN-PAYMENTS ..................................................................................................................................... 54

8.1 Customer Down-payments ............................................................................................... 54 8.2 Vendor Down-payments.................................................................................................... 54

9. INTEREST CALCULATION......................................................................................................................... 56

a.i.Define Interest Calculation Types ..................................................................................... 56 a.ii.Define Number Ranges for Interest Forms ..................................................................... 56 a.iii.Prepare Interest on Arrears Calculation......................................................................... 57 a.iv.Define Reference Interest Rates ....................................................................................... 57

a.v.Define Time-Based Terms ................................................................................................. 58 a.vi.Enter Interest Values ......................................................................................................... 58 a.vii.A/R: Calculation of Interest on Arrears........................................................................ 60
10.DUNNING .................................................................................................................................................... 61

i.Define Dunning Procedures .................................................................................................. 61 ii.Define Posting Keys .............................................................................................................. 63

11.ASSET ACCOUNTING ................................................................................................................................ 63

i.Copy Reference Chart of Depreciation/Depreciation Areas............................................ 64 ii.Specify Account Determination........................................................................................... 65 iii.Create Screen Layout Rules ................................................................................................ 66 iv.Define Number Range Interval .......................................................................................... 66 v.Assign G/L Accounts............................................................................................................ 67 vi.Define Screen Layout for Asset Master Data .................................................................... 68 vii.Define Asset Classes ........................................................................................................... 69
Errors.................................................................................................................................................................. 72

1 Balancing field "Profit Center" in line item 001 not filled ................................................ 72 2 During incoming payment clearing (F-28) ......................................................................... 72

ENTERPRISE STRUCTURE 1.1 Definitions

*Create Company: SPRO->IMG->Enterprise Structure->Definition->Financial Accounting->DefineCompany A company is an organizational unit in Accounting which represents a business organization according to the requirements of commercial law in a particular country. You store basic data for each company in company definition. You only specify particular functions when you customize in Financial Accounting. Company G0000 is preset in all foreign key tables. In the SAP system, consolidation functions in financial accounting are based on companies. A company can comprise one or more company codes. When you create a company you should bear in mind the following points relating to group accounting: y If your organization uses several clients, the companies which only appear as group-internal business partners, and are not operational in each system, must be maintained in each client. This is a precondition for the account assignment of a group-internal trading partner. y Companies must be cataloged in a list of company IDs which is consistent across the group. The parent company usually provides this list of company IDs. y It is also acceptable to designate legally dependent branches 'companies' and join them together as a legal unit by consolidation.

*Create Company Code: SPRO->IMG->Enterprise Structure->Definition->Financial Accounting->Edit, Copy, Delete, Check Company Code The company code is an organizational unit used in accounting. It is used to structure the business organization from a financial accounting perspective. We recommend that you copy a company code from an existing company code. This has the advantage that you also copy the existing company code-specific parameters. If necessary, you can then change certain data in the relevant application. This is much less time-consuming than creating a new company code. See "Recommendations" for more details about copying a company code. If you do not wish to copy an existing company code, you can create a new company code and make all the settings yourself. You define your company codes by specifying the following information: y Company code key You can select a four-character alpha-numeric key as the company code key. This key identifies the company code and must be entered when posting business transactions or creating company code-specific master data, for example.

y Company code name y Address data The address data is necessary for correspondence and is printed on reports, such as the advance return for tax on sales/purchases.

y Country currency Your accounts must be managed in the national currency. This currency is also known as the local currency or the company code currency. Amounts that are posted in foreign currency are translated into local currency. y Country key The country key specifies which country is to be seen as the home country; all other countries are interpreted as "abroad". This is significant for business and payment transactions because different forms are used for foreign payment transactions. This setting also enables you to use different address formatting for foreign correspondence. y Language key The system uses the language key to determine text automatically in the language of the relevant country. This is necessary when creating checks, for example.

y y y

1.2 1.3

Define Credit Control Area Define functional Area

1.4 Maintain FM AreaDefine Segments The financial management area is an organizational unit within accounting which structures the business organization from the perspective of Cash Budget Management and Funds Management.

y
1.5 Maintain Fiscal Year Variant IMG F A. Financial Accounting Global Settings Fiscal Year Maintain Fiscal Year Variant (OB29) You can define the following characteristics for a fiscal year variant: y how many posting periods a fiscal year has y how many special periods you need y how the system is to determine the posting periods when posting When defining your fiscal year, you have the following options: y Your fiscal year is the calendar year In this case, you must only select the Calendar year field. y Your fiscal year is not the same as the calendar year and is not year-dependent In this case, you first enter the number of your posting periods in the Number posting per. field. To define your posting periods, select your fiscal year variant and select Periods on the navigation screen. On this screen, enter the month and the day of the period end and the period in each case. y Your fiscal year is not the same as the calendar year and is year-dependent Enter the number of your posting periods in the field Number posting periods and select the field Year-dependent. To define your posting periods, select your fiscal year variant and select Periods on the navigation screen. The system asks for which calendar year your year-dependent fiscal year variant is valid. You then enter the month and day of the period end for each of your periods, and the periods themselves. It is also possible to determine names for the periods of a non-year-specific fiscal year variant. To do so, select your fiscal year variant and choose Period texts on the navigation screen. You can specify a three-character abbreviation (Jan, Feb, Mar...) and a 20-character long text (January, February, March).

Standard settings The following fiscal year variants have been created in the standard system: y Variants in which the fiscal year is the same as the calendar and has up to four special periods y Variants for shortened fiscal years. For more information on shortened fiscal years, see Defining shortened fiscal years. y Variants for non-calendar fiscal years: y April to March with four special periods y July to June with four special periods y October to September with four special periods y Variants that are set up on a weekly basis. These variants can only be used in the Special Purpose Ledger (FI-SL) application. Activities 1. Check the standard fiscal year variants. 2. Change the existing variants, if necessary, or create your own variants. 1.8 Define Variant for Open Posting Periods IMG F.A. F.A.G.S Documents Posting Periods Define Variants for Open Posting Periods In this activity, you can define variants for open posting periods. Standard settings In the standard setting, a separate variant for posting periods is defined for every company code. The name of this variant is identical to the company code name. Every company code is allocated to this variant with the same name. Thus nothing has changed in the system yet: Every company code has its own variant. If you want you can continue to work on this basis (for example, if you manage only a few company codes), you do not have to make any changes in the configuration. If however, you want to use identical variants in several company codes, you must change the default settings as described in the "Activities" section. Activities y Change the name in one of the variants. y Allocate all company codes, for which you want to use identical variants for open posting periods, to this variant. y Delete the variants no longer required. y Detailed information on this can be found in the chapter "Allocate company code to variant".

y y

1.9 Open & Close Posting Periods IMG F.A. F.A.G.S Documents Posting Periods Open & Close Posting Periods In this activity you specify for each variant which posting periods are open for posting. Two intervals are available for doing this (period 1 and period 2). For every interval, enter a lower period limit, an upper period limit and the fiscal year. You close periods by selecting the period specifications so that the periods to be closed are no longer contained. You can also assign authorization groups for permitted posting periods. This means that, for example,

some posting periods can only be opened for particular users within monthly or annual closing. You can only assign the authorization group at document header level and it only affects period 1. The authorization object is called F_BKPF_BUP (Accounting document: Authorizations for posting periods). Read the corresponding chapter on "User maintenance" in the "Assigning authorizations" topic. Note You specify G/L account numbers for your specifications. You determine the posting periods allowed for the subledger accounts via the corresponding reconciliation accounts. To do this, you specify the subledger account type, such as D or K, and the corresponding reconciliation account. Caution There must be at least one entry for each variant. This entry must have + in column A ; the columns "From acct" and "To account" may not be filled. In the columns for the posting periods, you specify the periods which are to be opened for the variant. Via further entries, you determine more specifically which periods are to be opened for which accounts. Activities 1. Specify the periods allowed for posting. 2. First, for all variants (minimum entry), enter the periods to which postings can be made. 3. Then, add entries for account types or account areas if the periods are to be limited to certain accounts. 4. Enter an authorization group for each period 1 via which you want to create an authorization pr

1.10 Maintain Field Status Variants SPRO->IMG->Financial Accounting-> Financial Accounting Global Settings->Documents->Line Items->Controls-> Maintain Field Status Variant In this activity you can define and edit field status variants and groups. You group several field status groups together in one field status variant. You assign the field status variants to a company code in the activity Assign Company Code to Field Status Variants . This allows you to work with the same field status groups in any number of company codes. You can also define and process field status groups. You must define a field status group in the company code-specific area of each G/L account. The field status group determines which fields are ready for input, which are required entry fields, and which are hidden during document entry. Bear in mind that additional account assignments (i.e. cost centers or orders) are only possible if data can be entered in the corresponding fields. Standard settings Field status variant 0001 is entered for company code 0001 in the standard SAP software. Field status groups are already defined for this variant. Note You cannot attach a field status to some fields, such as those in the document header. You can, however, switch between required and optional entry field designations in the document type for some of these header fields. The field status group you enter in the reconciliation accounts affects postings to the related customer or vendor accounts. You cannot enter a field status group in the customer or vendor accounts. Field

status groups are determined for customer and vendor accounts from their respective reconciliation accounts, via the G/L account number in their master records. There are other factors, besides the field status group itself, which have an influence on the field status. Among these are: y the field status defined for the posting key. The status "optional entry field" was assigned to posting keys 40 and 50 in the standard system. These are the standard posting keys for G/L account postings. The "optional entry field" status has no effect on the field status. y Specifications for the document type. You can specify here that a reference number and document header text must always be entered, for example. Recommendation Designate field status via the field status groups in the G/L accounts. This allows you a more account-specific screen layout. You cannot differentiate by posting key, since there are only two such keys for postings to G/L accounts. The situation with reconciliation accounts is different. You do not make any differentiated field status definition via the master record for these special G/L accounts. You use the debit and credit posting keys instead. Activities 1. Create new field status variants using Edit -> New entries . You can also use the copy function to create new field status variants. To do this, select Edit -> Copy as . When copying field status variants, the accompanying field status groups are also copied. 2. Look at the standard field status groups. 3. Find out which fields on the entry screens should be y ready for input y required entry fields y hidden for the G/L accounts in your company. You do not make this definition for each account, but rather for groups of accounts. This is why you may want to adapt the field status groups included in the standard system. 4. If necessary, change the standard field status groups, or define your own for each field status variant. 5. You can delete field status variants that are no longer required via Edit -> Delete . The accompanying field status groups will also be deleted. 1.6 Assign Co. Code to Company: SPRO->IMG->Enterprise Structure->Assignment->Financial Accounting-> Assign Co. Code to Company In this step you assign the company codes which you want to include in the group accounting to a company. Requirements You must have first completed the steps Create company code and Create Company.

1.7 Assign Company Code to a Fiscal Year Variant: IMG F.A. F.A.G.S Fiscal Year-> Assign Company Code to a Fiscal Year Variant (OB37) For every company code, you must specify which fiscal year variant is to be used. Requirements You have defined the relevant fiscal year variant. The variant does not contain more than 16 periods. For more information, see Maintain Fiscal Year Variant. Standard settings The standard company code is assigned to the fiscal year variant that corresponds to the calendar year and uses four additional special periods.

*Assign Posting Period Variant to Co. Code: SPRO->IMG->Financial Accounting-> Financial Accounting Global Settings->Documents-> Assign Variant to Co. Code In this activity, you make the specification that is necessary to be able to work in several company codes with the same variant for open posting periods. For this reason, you assign the same variant key to the company codes you want to group together.

1.11 Assign Company Code to Field Status Variants SPRO->IMG->Financial Accounting-> Financial Accounting Global Settings->Documents->Line Items->Controls-> Assign Company Code to Field Status Variants In this activity, you assign the company codes in which you want to use identical field status groups, to the same field status variant. Standard settings A field status variant with an identical name has already been assigned to company code 0001 in the standard system. Activities Assign the affected company codes to the same field status variant. Additional information You define your field status groups for every field status variant. Refer to the chapter Define status definition groups for more information.

2. CHART OF ACCOUNTS COA is where GL accounts are maintained and the transactions (entries) are noted. This is the level at which Data-entry is done. COA includes general ledger, cash-book, bank book, etc. Note: B/s, P&L, etc are not part of COA but are derived from COA. The flow in the Books of Accounts in SAP is as follows: Charts of accounts Account group (Heads: Like Fixed assets, creditors, etc.) Main G.L. a/c (Like: Building a/c, furniture a/c)

Customizatio n Or Development

End-user Data entry

Transaction entry (example:) Salary A/c To Bank a/c

dr

Chart of Accounts List is where all the COAs are listed. In this step you enter the charts of accounts variant that you want to use in your organization (at client level). Types of Chart of Accounts: y Operational Chart Of Account y Country specific Chart Of Account y Group Chart of Account.

2.1 Edit Chart of Accounts List IMG F.A. (n) G.L. Accounting (n) Master Data

y y

G.L. A/c Preparations Edit COA List (OB13)

Standard settings The list already contains sample charts of accounts for some countries. Charts of accounts GKR and IKR, for example, have been entered for Germany. Activities 1. Check whether you can use one of the charts of accounts supplied with the standard system. To do this, you can display the charts of accounts on the screen or print them out using the "Chart of Accounts" program. You can find the program under A/c ing F.A. G.L. Info.System G.L. Reports Master Data COA. 2. If you want to create your own chart of accounts, enter it in the chart of accounts list.

2.2 Define Accounts Group IMG F.A. (n) G.L. A/c_ing (n) Master Data G.L.A/c Preparations Define Accounts Group (OBD4) When creating a G/L account, you must specify an account group.The account group enables us to:

Use account groups to combine accounts of the same nature (for example, a P&L account group, asset account group and material account group). It also determines the interval in which the account number or the number range is given to each account group in COA say for Fixed-assets 0001-1000.This means that 1000 G.L. a/c can be created under Fixed-asset a/c (head). It also enables us to control the layout of screens i.e., which fields are required, optional and suppressed when creating and changing master records

. Note Account groups for G/L accounts are based on the chart of accounts. Standard settings Account groups are defined for the standard charts of accounts. Activities Check and change the standard account groups as needed. If you set up your own charts of accounts, you must specify account groups for them.

Assign the Co. Code to Chart of Accounts IMG F.A. (n) FAGS (n) Global parameters for Co. Code Enter Global Parameters (OB62)

y 2.3

Position GRSM Click to select your Co. code then click Display button then under COA field ADTY (our COA) For each company code, you need to specify which chart of accounts is to be used. Severalcompany codes can use the same chart of accounts. Requirements The chart of accounts must be defined in the chart of accounts list. Choose Edit Chart of Accounts List to enter a chart of accounts in the chart of accounts list. Standard settings Corresponding charts of accounts were assigned to the standard company codes. Activities y If you use a standard company code, check whether the chart of accounts you require is assigned to it. y Assign the required chart of accounts to your company code.

y y

2.4 Define Retained Earnings Account IMG F.A.(n) G.L. A/c_ing (n) Master Data G.L. A/c Preparations Define Retained Earnings A/c (OB53)

You assign a retained earnings account to each P&L account by specifying a P&L statement account type in the chart of accounts area of each P&L account. At the end of a fiscal year, the system carries forward the balance of the P&L account to the retained earnings account. You can define one or more P&L statement account types per chart of accounts and assign them to retained earnings accounts. Note Your specification depends on the chart of accounts. Requirements The chart of accounts must be specified in the chart of accounts list. Standard settings Account 332000 was defined for chart of accounts IKR and account 900000 was defined for GKR, using the key "X" respectively. Activities 1. Change the standard settings if necessary. If you do not use one of the standard charts of accounts, you must specify the P&L statement account type(s) and the retained earnings accounts for each new chart of accounts you set up. 2. Make sure the accounts you specify are created. (From: http://help.sap.com/saphelp_40b/helpdata/EN/5b/d2284243c611d182b30000e829fbfe/content.htm) Balance Carry Forward When the fiscal year changes, you can carry forward actual and plan values from the previous fiscal year(s) to the new fiscal year using the Balance carry forward function. What Is Balance Carry Forward?S You use the Balance carry forward function to carry forward the balances of accounts from the previous fiscal year to the beginning balance of the new fiscal year. You can carry forward: y Balance sheet account balances y The profit and loss account balances to a retained earnings account Balance Sheet Accounts At the end of the fiscal year, you can carry forward the balances of your balance sheet accounts to the beginning balance of the new fiscal year. All account assignments are transferred for balance sheet accounts when the balance is carried forward. You can also define your system so that specific dimension information is not carried forward. Using the Customizing function, you can change the field movements so that specific dimension information defined in the standard balance carry forward (such as the Business Area) is not taken over into the new fiscal year. Profit and Loss Accounts/Retained Earnings Account You can also carry forward the balance of your profit and loss accounts to a retained earnings account for the new fiscal year. No account assignments are transferred for profit and loss accounts. You can also define your system so that additional dimension information (such as the Business Area) is carried forward for the profit and loss accounts. Alternative Accounts in Local Ledgers In addition to the accounts of the operative chart of accounts, you can also update alternative accounts in the SAP R/3

System. Alternative accounts are those accounts in the corporate and country-specific charts of accounts. You can also store the accounts of a user-defined chart of accounts in your ledger. If alternative accounts are updated in a local ledger, the profit and loss accounts should be carried forward to a retained earnings account taken from the alternative chart of accounts. You can set the Validation type field in your local ledger definition (local company code - ledger assignment) to determine the chart of accounts assigned to the accounts stored in the ledger. The assigned chart of accounts determines which retained earnings account is used to carry forward the ledger balance. If accounts of the operative chart of accounts are stored in your ledger, you do not need to make an entry in the Validation type field in the ledger definition. This is the normal case scenario and the indicator is set to blank (default setting). There are four different chart of account types that you can use when you carry forward the balance of your local ledger: y Operative chart of accounts This is the standard chart of accounts that you would normally use. y Corporate chart of accounts y Country-specific chart of accounts y User-defined chart of accounts If you select this type, you must enter your own chart of accounts. For more information on the different chart of account types, refer to the online help for the Validation type field in the ledger definition (local company code - ledger assignment) in Customizing for Special Purpose Ledger. For more information about creating ledgers, refer to the Maintain Ledgers activity in the ImplementationGuide (IMG) for Special Purpose Ledger. Overview of Balance Carry Forward To use the balance carry forward program, you complete the following steps: y Define the ledger(s) for which you want to carry forward balances. Using the Set up balance c/f indicator in the ledger definition, you can specify if you want to carry forward balances for a ledger. For more information about defining ledgers, refer to the Maintain Ledgers activity in the ImplementationGuide (IMG) for Special Purpose Ledger. y Assign a retained earnings account to a chart of accounts. If you want to carry forward the balance of your profit and loss accounts, you must specify a retained earnings account. You assign a retained earnings account to a chart of accounts for local and global ledgers. For more information about assigning a retained earnings account for local and global ledgers, refer to the Maintain Local/Global Retained Earnings Accounts activities in the ImplementationGuide(IMG) for Special Purpose Ledger. y Define the field movements for the transfer of account data into the next fiscal year, if required. As a rule, you do not need to create a field movement because the standard SAP balance carry forward fulfills your requirements. The field movement determines the account data that is transferred to the new fiscal year and must contain all dimensions that you want to carry forward.

If you want to use the standard field movement definition for carrying forward balances, you do not need to define field movements. Go to step four. If the standard field movement definition does not meet your requirements and you create your own field movements, you have to assign a field grouping code for each ledger for which you want to carry forward balances. You can define separate field movements for balance sheet and profit and loss accounts. The standard system is delivered with a field grouping code (0001) for profit and loss accounts, which is assigned to the ledger containing the account transaction figures for the general ledger. This field grouping code contains an additional field movement for the dimension Business Area, because the business area has to be carried forward to the new fiscal year in addition to the dimension Account. If you want to create your own field movement for the balance carry forward, you can use the field grouping code 0001 as a reference. For more information about defining field movements for carrying forward accounts and assigning the field movements to ledgers, refer to the Maintain Field Movements activity and the Assign Field Movements activity (Balance Carry Forward) in the ImplementationGuide(IMG) for Special Purpose Ledger. Execute the balance carry forward program. Once you have defined the system structures for carrying forward balances, you can execute the balance carry forward program. When you execute this program, all balances for FI-SL ledgers will be carried forward to the beginning balance of the next fiscal year (as specified in the balance carry forward tables). For more information about executing the balance carry forward program, see Using the Balance Carry Forward Program

2.5 Define Document Number Ranges 2.5.1 Define Document Number Ranges for Entry View: IMG FA (n) FAGS (n) Documents Document Number Ranges Documents in Entry View Define Document Number Ranges for Entry View (FBN1) A number range must be assigned to each document type in the SAP System. Via the document types, you distinguish the postings according to the different business transactions, for example customer payment, vendor credit memo, and so on. To store documents separately according to document types, you must assign a separate number range to each document type, for example to invoices or to credit memos. In the following activities: y You define your document number ranges. y You can determine which intervals of document number ranges are to be copied from one company code into another. y You can determine which intervals of document number ranges are to be copied from one fiscal year into another.

2.5.2 Define Document Number Ranges for General Ledger View: IMG FA (n) FAGS (n) Documents Document Number Ranges Documents in G.L. View Define Document Number Ranges for G.L. View

3.

TOLERANCE

Tolerance is the pre-defined maximum limitfor the end-users, Customer & Vendor, andGeneral Ledger pertaining to day to day to transactions. For example a clerk can deal with the transaction only up to the extent of $1 million and an Assistant-manager can deal with the transaction only up to the extent of $5 million and so on. As mentioned above tolerances are of 3 types: y Employee or User tolerance y Customer & Vendor tolerance y General Ledger tolerance Tolerance group is designed, maintained & assigned by HR.

3.1 Define Tolerance Groups for Employees IMG F.A. (n) FAGS (n) Documents Tolerance group Define Tolerance Groups for Employees In this activity, you predefine various limits (in amount) for your employees with which you determine: y the maximum document amount an employee is authorized to post y the maximum line item amount an employee can enter in a customer or vendor account y the maximum cash discount percentage an employee can grant in a line item y &the maximum amount of payment differences acceptable for an employee. Payment differences are posted automatically within certain tolerance groups. This way the system can post the difference by correcting the cash discount or by posting to a separate expense or revenue account. In this respect you define: y the amounts or percentage rates up to which the system is to automatically post to a separate expense or revenue account if it is not possible to correct the cash discount or y Up to which difference amounts the system is to correct the cash discount. In this case the cash discount is automatically increased or decreased by the difference using tolerance groups. You can also additionally differentiate these settings by company code. Since the same rules usually apply to a group of employees, enter the values for employee groups. You can then enter amount limits and tolerances per employee group and company code. Note You can also define tolerances without specifying a tolerance group. Leave the field Grp empty in this case. The stored tolerances are then valid for all employees who are not allocated to a group. There must be at least one entry for every company code. You can also specify tolerances for clearing procedures depending on your customers or vendors. The lower limits from the customer/vendor specifications and employee group are taken in each case during clearing. Standard settings In the system, sample tolerances are defined for the standard company codes.

Activities 1. For every company code, find out which tolerances are to be determined and whether a differentiation according to employee group is necessary. If you want to define different tolerances for your employees, specify the amount limits for each of the groups. If the tolerance limits are to apply to all employees, leave the "group" field empty. 2. Define the tolerances correspondingly. 3. If you have defined differing tolerance groups, you then have to assign your employees to a certain tolerance group. To do this, select the activity "Assign users to tolerance groups" . This is where you enter your employees under the relevant groups.

3.2

Assign users to tolerance groups

This is done by HR consultants. 3.3 Define Tolerances for Customers/Vendors IMG Financial Accounting (n) Accounts Receivable & Account payable Business Transaction Open Item Clearing Clearing Difference Define Tolerances for Customers/Vendors (OBA3) In this activity you define the tolerances for customers/vendors. The tolerances are used for dealing with payment differences and residual items that may arise when payment clearing is carried out. You specify the tolerances in one or more tolerance groups and assign a tolerance group to each customer/vendor using the master record. For each tolerance group specify the following: y Tolerances, up to which payment differences arising from open item clearing can be automatically posted to expense or revenue accounts y The treatment of terms of payment for residual items if they are to be posted during clearing Note Ensure that you can also Define Tolerance Groups for Employees. For clearing, the lower limit from the specifications for the customer/vendor and the specifications for the employee group are valid. Requirements If you want to enter fixed terms of payment for posting residual items from payment differences for a tolerance group, you have to define the terms of payment first. To do this, see Maintain Terms of Payment. If you want to assign a dunning key to a tolerance group, you must have already defined the dunning key. To do this, see Define Dunning Keys. Activities 1. Identify groups of customers/vendors to which identical tolerances apply. 2. Create the required tolerance groups for your customers/vendors. 3. Make sure that the required tolerance groups are assigned to the customers/vendors in the master record. Further notes If you want to work with uniform tolerances for all customers/vendors in a company code, create a tolerance group with the key "blank" ( ) for the company code. In this case, you do not have to enter the

tolerance group in the customer/vendor master record. You can also use a tolerance group with key "blank" ( ), if for example, you want to define lower tolerances for particular customer/vendors than others. In this case, for example, you create a tolerance group 0001 with low tolerances for the customers/vendors and then enter this tolerance group in the customer/vendor master record. All other customers/vendors automatically have the tolerance group "blank" ( ) assigned to them.

3.4 Maintain General Ledger Tolerance IMG F.A. (n) G.L. A/c_ing (n) Business Transaction Open item clearing Clearing Diff. _ _ _ _ For G/L account clearing, tolerance groups define the limits within which differences are accepted and automatically posted to predefined accounts. The groups defined here can be assigned in the general ledger account master record. New entry

--------------------------------------------------------------------x--------------------------------------------------------------------(Create G/L) Centrally : SAP Menu->Accounting -> Financial Accounting-> General Ledger ->Master Records->Individual Processing-> Centrally (FS00) / Chart of Accounts (FSP0) / Co. Code (FSSO) Enter G/L Account Document: SAP Menu->Accounting-> Financial Accounting->General Ledger->Documents Entry-> Enter G/L Account Document (FB50) [(Creating of Customers) Create G/L A/C for S.Drs] Display G/L Balance: SAP Menu->Accounting-> Financial Accounting->General Ledger->Accounts-> Display G/L Balance (FS10N) F-06 - Incoming Payments: SAP Menu->Accounting-> Financial Accounting->General Ledger->Documents Entry->Incoming Payments (F-06) Clear: SAP Menu->Accounting-> Financial Accounting->General Ledger->Accounts->Clear (F-03)

4. NEW G.L. ACCOUNTING In New G.L Concept we maintain 2 types of GL's namely: y Leading ledger This is the default, or say, system defined ledger in the SAP system. This is useful for preparation of consolidated books of accounts for reporting at Client/Group level. Hence, it is maintain at the client level. Leading ledger takes the settings like fiscal year and posting period, etc, as assigned to the Company Code. 0L is the leading ledger given by SAP. y Non-leading ledger N.L. Ledger is maintained parallel to the Leading ledger and under the Co. codeto fulfill the requirements of the local government. This not system defined but is user defined. Note: In a Company Code both, Leading & Non-leading ledgers are maintained. So what I think is that the NON-LEADING LEDGER contains the transaction of the relevant Co.Cd. which are then passed on to the LEADING LEDGER which further works to consolidate the accounts for the combined reproting of the Group of Companies .

y Define Ledger for GL a/c s- (for the NL ledger only, as Leading ledger is system defined)
FA (n) / FAGS (n) / Ledgers / Ledger / Define Ledger for GL a/c s

When a non-leading ledger is created, A LEDGER GROUP is created automatically. A Ledger-group is combination of ledgers for the purpose of applying the functions and processes of general ledger accounting to the group as a whole. On the other hand if it is not created, then it will not be possible to constrain data posted JUST to a group of ledgers but may flow outside the group as well. This may affect the ledgers of the other company codes as well. For example: Without a ledger group the sales transaction of LG-India may flow to LG-Australia and mess it up.

y Define & Activate Non Leading ledger

Give ledger name GR enter New entry

y Assign Scenarios & Customer Fields to Ledger

Scenarios - This determines what fields in a ledger are updated when it receives posting from other application components. Basically it means, when the posting is done what would its whole scene will look like.

Select your NL ledger (GR) and double click Scenarios Folder.

Select (F4) the scenarios, as and when required for a particular object

* * * Creating GL a/c: GL a/c can be created on 3 levels: y Company code level y COA level y Centrally through [FS00] a combination of fields of both of the above mentioned levels i.e. Co. Cd. & COA level. Now creating GL a/c s for: y Retained earnings 100,000

Type Description TAB

A/c group Liability Balance Sheet Text Retained earnings A/c Tick Tick Sort Key 001 Field S.G Only balance in Local currency Line item display

Control DATA TAB

Create/bank/interest TAB

G001

y y

Same way we do it for: Equity Share Capital Cash A/c

5.

DOCUMENT SPLITTING

This is another inclusion in ECC6.0 version. In the previous version there was only Entry view . SAP has enhanced this version which also has G.L. view for which we do Document Splitting. Each document has at least 2 line items (or accounts).Details/scenarios of these line-items have to be also updated to relevant cost-centers, profit-centers, etc. Document Splitting procedure defines how & under what circumstances document split (i.e. updating scenarios) is done. Through document splitting the detail of communication charges automatically get updated to relevant cost-centre and Vendor account to relevant profit center. Document splitting is done in GL view if there is a CO object (cost center) in debit or credit entry. This difference in amount will be used in Zero balance clearing A/c (which will be provided in the customization). Zero Balance Clearing A/c will be debited and credited with the same amount, mainly to zero-wise each of the profit center s balance and also to have a complete accounting entry for each profit centers. Note: Document splitting is done on COA level.

y y y

5.1 Classify G/L A/c for Document splitting FA (n) / G.L. Accounting (n) / Biz transaction / Document splitting / Classify G L A/c for Document splitting COA ADTY New entry It is done as when GL accounts created and required. Mentioned on the right (above) are the Categories through which SPLITTING is done. Thru category, system decides which information is to be updated where.

5.2

Define Document Splitting characteristics for GL accounting

y HOUSE BANK House bank is the BANK with which the company deals with for making day-to-day transactions. As there could be multiple house banks for a company code, each house bank is represented by a Bank ID in the SAP system, and every account within a house bank is represented by an Account ID. In each house bank there are generally 3 G.L. a/c s: y Current a/c (or Main Bank a/c) Cheque Deposit a/c y y Cheque Issue a/c

Step 1 Creating these 3 GL a/c s A/c group Assets Balance Sheet Text ICICI Current A/c Tick _Only bal. in Local crcy Tick _ Line item display Sort Key 001 Field Status Group G005 (Bank A/c) G005

Type Description TAB

Control DATA TAB Create/bank/interest We made: y ICICI Current A/c Same ways we make 2 more GL A/c s: y ICICI Check Issue A/c y ICICI Check Deposit A/c

Step 2 Define House Banks IMG Financial Accounting (new) Bank Accounting Bank Accounts Define House Bank (FI12) new window click new entry Click CREATE button A small address window opens up on the same window. Enter then similarly press new entry again & now we configure: ICICI Cheque Issue A/c

Now select Bank Account Folder ICICI Cheque Deposit A/c&

In the SAP system, you use the bank ID and the account ID to specify bank details. These specifications are used, for example, for automatic payment transactions to determine the bank details for payment. Standard settings Several house banks are supplied as examples in the standard system in order to enable configuration of the payment program. Note For domestic banks, you should enter the bank number in the "bank key" field and for foreign banks you should enter the SWIFT code in this field. For Belgium, the first three house bank ID items must be numeric. Do not forget to create a G/L account for the specified bank account. The G/L account is to be managed in the same currency as the account at the bank.

Activities 1. Work out the specifications you have to enter in the system for your house banks. 2. Define your house banks and the corresponding accounts in the system under a bank ID or an account ID. Additional information If you have already carried out the step "Copy bank directory" , you have already created house banks in the system or have updated the house bank data that already existed. If this is the case, in this step you only have to create the house banks that were not created in the "Copy bank directory" step. You can also add any data that may be required to house banks that were copied along with the bank directory.

Cheque Issue Process (For going back to 7.3 CONFIGURING OUTGOING PAYMENT) Cheque Issue Process is of 2 types y Manual Cheque issue process y Automatic Cheque issue process Cheques in SAP system are of 2 types: y Loose Cheques are non-sequential Cheques. In other words these are in an order that is decided externally by the user. These Cheques cannot be used in APP or in Online Cheque printing. Only worthwhile if issuer writes these Cheques without using SAP system. These are used in smaller, random payments. Preprinted Cheques for Cheques which are sequential i.e. in an order maintained y internally. Used in big and important payments like Vendor payment. These are the Cheques which are used in APP & online Cheque printing. Step 1 Define number range for Cheques {FCHI}

IMG Financial Accounting (new) AP & AR Biz Tran. Outgoing Payment Automatic Outgoing Payment Payment media Check management Define number range for checks new window click create button Click create button small window shown below opens up We are doing this for both kind of Cheques: y Loose Cheques y Pre-printed cheques Enter then again click create button

Step 2 Define Void Reason codes (We are not configuring or changing anything, using as it is in the system) Void reasons are the reasons for cancellations of a Cheque. Void Reasons are maintained at client level.

Automatic Payments Program

In practice and configuration stage - For running APP you should make sure that there is an Open item. (For notes on creating one58) Step 1 Set up all Company Codes for Payment Transactions IMG Financial Accounting (new) AR & AP->Business Transaction Outgoing Payments Automatic Outgoing Payments Payment Method/Bank Selection for Payment Program Set up all Co. Code for Payment Transaction New entry

Step 2 Set up Paying Company Codes for Payment Transactions In this activity, you make the following specifications for the paying company codes: y Data for controlling the payment program Here you specify the minimum amount for which an incoming or outgoing payment is created, for example. You can define additional amount limits for the payment method. To do so, choose the activity Set up Payment Methods per Company Code for Payment Transactions. y Specifications for paying with bills of exchange You can show or hide the settings for paying with bills of exchange. y Forms and sender details for advice notes and EDI accompanying sheets If you wish to print payment advice notes or an EDI accompanying sheet, specify the form name. Specify also the SAPscript text modules that contain details about the sender that are to be printed on the payment advice note. You can go directly from this transaction to the transaction for editing forms and text modules. Standard settings The standard system contains forms for payment advice notes and EDI accompanying sheets which you can copy and adjust to meet your requirements. Further notes For more information about Customizing for payment transactions, see the SAP Library under Financials -> Financial Accounting -> Accounts Receivable (or Accounts Payable) -> FI - Accounts Receivable and Accounts Payable -> Payments. The chapter Forms also contains more information about adjusting forms. New entry If you click FORMS - details under Forms opens up.F110_IN_AVIS is the name of the Form for the Payment Advice use the form under the heading International as this is the generic form for the countries whose name is not mentioned in the list.

Step 3 Set up Payment Methods per Country for Payment Transactions In this activity, you specify which payment methods are to be used in each country. You enter the following details for the payment method: y Country-Specific Specifications for the Payment Method: y Payment method either for incoming or outgoing payments y Characteristics for classifying payment method Here you specify the type of payment method in question (such as check or bank transfer) and any other features of that payment method (the payment method is used for personnel payments, for example). When you select a payment method, only the characteristics that are appropriate for that payment method are displayed. This means that you can only select fields that are relevant for the selected payment method. y Required entries in master record Here you determine which specifications in the master record control whether the payment method is used (such as bank details or collection authorization). Note: If the required details have not been entered in the master record, the payment method cannot be used. y Posting specifications You specify how the payment is to be posted, for example (such as which document type is to be used). y Which procedure is to be used to issue the accompanying payment form One option is to use the classic payment medium programs. All the payment medium programs contain extensive country-specific documentation. If required, you can call up a list of all the payment medium programs available in the standard system, as described under Activities. You can also use the Payment Medium Workbench for the payment forms. For more information, see the SAP Library under Financials -> Financial Accounting -> Accounts Receivable (or Accounts Payable) -> FI - Accounts Receivable and Accounts Payable -> Payments -> Payment Medium Workbench. y You also specify which currencies are to be permitted, dependent on the country and payment method. If you leave the currency table blank, this means that all currencies are permitted. Note If the payment method only allows payments in local currency, the system ignores any currencies specified. y If you use the Payment Medium Workbench , read the documentation under Make Settings for Payment Medium Formats from Payment Medium Workbench in the section Payment Media. Requirements y You have specified which payment methods are used by your organization. y You have already defined the following keys, which you need to enter here: y Document type for posting the payment (see Customizing under Financial Accounting -> Financial Accounting Global Settings -> Document -> Document Header ->Define

Document Types.) y special G/L indicator for posting a bill of exchange Recommendation Ensure that the payment methods to be used for paying the open items of a business partner have been entered in the appropriate customer or vendor master record. Activities 1. Check whether the payment methods required for your organization are defined in the system. 2. Make the necessary adjustments to the required payment methods, and enter the country-specific data. List payment media programs 3. Choose System -> Services -> Reporting. 4. Enter RFFO* and choose Utilities -> Find program -> Program -> Execute. A list of the payment medium programs appears. The title of the programs explains their purpose. Further notes For more information about payments, see the SAP Library under Financials -> Financial Accounting -> Accounts Receivable (or Accounts Payable) -> FI - Accounts Receivable and Accounts Payable -> Payments. For more information about special G/L procedures and posting with alternative reconciliation accounts, see the SAP Library under Financials -> Financial Accounting -> Accounts Receivable (or Accounts Payable) -> FI - Accounts Receivable and Accounts Payable -> Special G/L Transactions: Down Payments and Payment Guarantees. For more information about bills of exchange, see the SAP Library under Financials -> Financial Accounting -> Bank Accounting -> Bills of Exchange Management -> Special G/L Transactions: Bills of Exchange. Select your country and then double click the folder Currencies Allowed

In the table CURRENCY, you list enter those currencies that are permitted for this payment method. Leaving this table empty will mean that all currencies are permitted.

Step 4

Set up Payment Method Per Co. Code for Payment Transaction

New Entry Paying CO. Cd. GRSM Payment Month C Min Amt 1 Max Amt 700000 Click Form Data Form for Payment Method F110_PRENUM_CHCK SAVE In this activity, you specify which payment methods can be used per company code and determine under which conditions a payment method should be used. y Amount limits for payments within which the payment program can select the payment method Note: You always have to specify a maximum amount; otherwise the payment method cannot be used. If you specify the payment method in an open item, the payment program ignores the amounts you enter here. y Specifications for grouping items for payment (such as single payment for marked items) y Specifications for foreign/foreign currency payments y Specifications for optimizing bank selection y Specifications for the form to be used for the payment medium y Specifications for issuing payment advice notes Optimization You can optimize either by bank groups or by postal codes. If you optimize by bank groups, money is transferred from the house bank to the business partner s bank in the shortest possible time. For this to be possible, you assign all banks in the master records to a bank group defined by you. If you optimize by postal codes, the house bank selection is determined by the business partner's domicile. If you select the "Optimization by postal codes" field, you can go directly to the activity for assigning house banks to an interval of postal codes. Foreign payment/Foreign currency payment If you specify that the payment method can also be used for foreign currencies, all currencies are permitted. In the activity Set up Payment Methods per Country for Payment Transactions , you can also specify certain currencies per payment method and country. Only payments in these specified currencies are then made using this payment method. Note If the payment method only permits local currency payments, the specified currencies are ignored. Example y For a transitional period, the existing local currency and the EURO can be used for domestic bank transfers. You permit payments in foreign currency for the payment method "Bank transfer", and enter the EURO and the existing local currency as the possible currencies.

You can only use a payment method such as EURO bank transfer for specific currencies. You use foreign currency checks with a pre-printed currency key (USD checks, for example) and you wish to set up a payment method that you only use for payments in USD, and USD is not your local currency. Payment advice note control Depending on the space available on the payment medium form for information about the note to payee, you have the following options: y If unlimited space is available, you do not need to print payment advice notes (for checks, for example), but can do so if desired. y If there is no space available, a payment advice note containing all the information about the purpose of payment is always printed (for bills of exchange, for example). y If only limited space is available and there is therefore a risk that the space will not be sufficient, you can choose from the following options: y You can have the system create a payment advice note containing the information about the note to payee. If a payment advice note is to be created every time, select "Always payment advice". The note to payee is then printed on both the form (so far the number of lines selected on the form allow) and the payment advice note. If insufficient space is available, a payment advice note indicator is printed on the payment medium. A payment advice note can only be created if the note to payee information does not fit into the available space. Select Payment advice after X lines. y You can have the system distribute the items between several forms. To do so, select No payment advice and Distribute items, XX lines per payment. y You can have the payment program determine another payment method if insufficient space is available. To do so, choose No payment advice and Payment method valid to xx lines. Requirements y You have specified which payment methods are used in each paying company code. y You have already defined the forms for printing payment media. You do this in the system using SAPscript. For more information, see the SAP Library under Financials -> Financial Accounting -> Accounts Receivable (or Accounts Payable) -> FI Accounts Receivable and Accounts Payable -> Payments -> Forms, and under Basis Components -> Basis Services/Communication Interfaces (BC-SRV) -> SAPscript (BC-SRV-SCR) -> BC SAPscript: Printing with Forms. Recommendation Make sure that the payment methods to be used for settling the business partner's open items have been entered in the customer/vendor master records. Activities Check whether the payment methods required by your organization have been defined in the system. Further notes For more information about payments, see the SAP Library under Financials -> Financial Accounting ->

y y

Accounts Receivable (or Accounts Payable) -> FI Accounts Receivable and Accounts Payable -> Payments.

Step 5 Set Up Bank Determination for Payment Transactions Position > Paying Co.Cd. GRSM select GRSM row double click folder Ranking Order New window New entry Currency INR Ranking order 1 House Bk ICICI

P (Payment method) C

Now double click folder Bank Accounts new entry House bank P Currency Account ICICI C Inr ICIC3 Now double click folder Available amounts new entry House bank A/c Days Currency ICICI ICIC3 999 inr

Bank Subaccount 200003

Available for Outgoing Payment 1.000.0000

In this activity, you make settings that the payment program uses to select the banks or bank accounts from which payment is to be made. You define the following: y Ranking order of banks You specify which house banks are permitted and rank them in a list. y Bank accounts For each house bank and payment method (and currency, if required), you specify which bank account is to be used for payments. y Available amounts For each account at a house bank, you enter the amounts that are available for the payment run. You enter separate amounts for incoming and outgoing payments. Specifying available amounts enables you to control which bank account is to be used for payments. You can specify the amounts depending on the value date at the bank. y Value date You specify how many days elapse between the posting date of the payment run and the value date at the bank, dependent on the payment method, bank account, payment amount, and currency. You can have the system determine the value date, taking into account the bank calendar and any individual arrangements made with the bank. To do so, choose the activity Define Value Date Rules y Fees/Charges You define the charges that are printed on the bill of exchange forms (standard practice in Spain). Recommendation

Available amounts Update the amounts before each payment run. Bank accounts Use bank sub-accounts to post incoming and outgoing payments (accounts for outgoing checks, outgoing bank transfers, incoming checks, and bank collection). For more information about bank subaccounts, see the SAP Library under Financials -> Financial Accounting -> Accounts Receivable (or Account Payable) -> FI - Accounts Receivable and Accounts Payable -> Payments. Activities 1. Select the required company code from the list of paying company codes. 2. In the structure on the left of the screen, double-click the required function to select it (such as ranking order). 3. Make the necessary entries. Further notes For more information about bank determination, see the SAP Library under Financials -> Financial Accounting -> Accounts Receivable (or Accounts Payable) -> FI - Accounts Receivable and Accounts Payable -> Payments

Step 6 Linking Payment Method & House Bank to Vendor Master Record EASY Accounting F.A. Account Payable Master Record Maintain centrally FK02 _ Change

Click Payment Transaction check-box under Co.Cd. data & enter Step 7 Execution of Automatic Payment Program In practice and configuration stage - For running APP you should make sure that there is an Open item. (For notes on creating one 58) EASY Accounting F.A. A.P. Periodic Processing Payments Execution of Payment Program (F110)

ACCOUNTS RECEIVABLE (Customer) 7.1 Define Account Group with Screen Layout (Customers)

SPRO F.A. (n) A.R.& A.P Customer Accounts Master Data Preparations for Creating Customers Master Data Define Account Group with Screen Layout (Customers) New entry In this step, you determine the account groups for customers. You can also define reference account groups for one-time accounts. You can use these to control the fields of the one-time account screen so that certain fields are displayed as required, optional or as hidden fields. When creating a customer account, you must specify an account group. You can specify a reference account group under "Control" in the "General data" part of a one-time account's master data. If you do not specify a reference account group, then, as previously, all fields of the one-time account screen are ready for input during document entry. You use the account group to determine: y the interval for the account numbers y whether the number is assigned internally by the system or externally by the user (type of number assignment) y whether it is a one-time account y which fields are ready for input or must be filled when creating and changing master records (field status) Example: You want to hide the address, communication and bank data fields for the one-time accounts. You determine the field status in the general data area for these fields since the fields are contained in this area. The reconciliation account field is defined as a required field since a reconciliation account must also be specified for the one-time accounts. This field is company code-dependent. You define the status of this field in the company code-dependent data area. With the account groups, you group accounts together according to the criteria mentioned above, for example, one-time accounts. You determine the account number interval and the type of number assignment using the number ranges. Note If you create new account groups, do not forget to maintain the field status. Otherwise all corresponding fields are shown. It is recommended that you control the field status via the account groups. In exceptional cases, it can make sense to control the field status either dependent on company code or dependent on transaction. Note on changing the account group You may only delete an account group from the system if there are no master records referencing this account group. Otherwise you can no longer display or change the master record. y Changing the field status definition

If you hide a field at a later stage in which you had already made an entry, the field contents are still valid. y Changing number ranges You can increase the upper limit of the number interval as long as there is no other interval containing the required numbers. You can allocate a new number range to the account group. The numbers of the new master records must then be contained in the new area. Standard settings Sample account groups have been defined. Recommendation Do not use the account groups to group the customer accounts according to content. Therefore do not attempt to allocate the accounts to accounting clerks via the account groups or to group customers together according to countries. You can do this via special master record fields. Activities 1. Check and change the standard account groups if necessary. 2. Make sure that the number ranges specified for the account groups have been created. 7.2 Create Number Range for Customers Account Number ranges maintained at client level. (T. Code: XDN1)

In screen above click (change) interval button click (insert) interval button in this screen above. Current Doc. number showing is 500004, as 4 docs have been entered prior to this report. But when I actually gave the no. range it was 0 .

7.3 Assign number Range for Customers Account Group In this step you assign the number ranges you created in the preceding step to the account groups for customers. You can use one number range for several account groups. Position GRSM In the new window give GR in No. range column

7.4 New entry

Enter Accounting Clerk Identification Code for Customer

14 is employee/authorization id., given to RAMU & this number is put when creating customer master data. 7.5 Creation of Customer Reconciliation A/c Customer Reconciliation A/c is Sundry Debtor A/c where all the customer-transactions are posted. Details of a particular customer are maintained in Customer Master Record which contains name of the customer s firm, address, etc. It also contains Customer Number. While entering a customer invoice we do not use Sundry Debtors A/c but Customer Master Number. Details of the posting are then automatically transferred to Sundry Debtors A/c as well. This happens as we link Customer master to Customer Reconciliation A/c i.e. Sundry Debtor A/c. T.Code: FS00 G.L. A/c 200004 A/c group Assets Type Description TAB Balance Sheet Text SUNDRY DEBTORS A/c

Control DATA TAB

Recon. account for acct type Customers Tick Line item display Sort Key _031_( Customer number) Field Status Group G067(Reconciliation Account)

Create/bank/interest TAB

6.3 Create Customer Master Record [(XD01- Create)] XD02 Change or XD03 Display EASY Accounting FA AR Master Records Maintain centrally XD01 - Create

We can create customer master record in FD01 as well but then it could be used in FI only and so no integration is possible. It is more so part of previous version. Record made through XD01 can be linked or integrated to SD module. 1 2

A/c Group Customer Acct. Group Comp. Cd. GRSM ENTER After we give details in window 1 window 2 opens which contains few TABS. Fill up required details in Address TAB. Then click Company Code Data button above and a new window open up as shown below:

ADDRESS TAB This is general data TAB. Give: Title company Name KALANJALI SAREES Address & so on Then click Company Code Data button above new window

Remaining fields of this TAB as and when required.

6.4 Number range for Customer Document IMG FA (n) FAGS (n) Documents Document Number Ranges Documents in Entry View Define Document types for Entry View

DR is the document type for Customer Invoice Position Doc type DR Double click on DR Enter new window new window Entersave

Click on Number Range information new window

6.5 Define Document Types for G.L. View IMG FA (n) FAGS (n) Documents Document Number Ranges Documents in G.L. View Define Document Number Ranges for G.L. View

ledger GR Enter new window New entry new window Type DR Number Range 99

Now the only thing left for posting an invoice is CreatingSales Revenue A/cG.L. a/c 300000 A/c group Income Type Description TAB Profit & Loss Text Sales Revenue A/c Tick Line item display Control DATA TAB Sort Key 001 Create/bank/interest TAB Field Status Group G029 NOW Document Splitting for a/c 300000 6.6 Posting Customer Invoice EASY Accounting F. A. Accounts Receivable Document Entry F-22 _ Invoice general Vendor a/c dr. To Sales Revenue a/c The entry we are making is:

Screen1 500000 is the Vendor Master No.

Screen 2 300000 is Sales Revenue a/c

Screen 3 Doc. Simulated in Entry view

Screen 4 Doc. Simulated in G.L. view. This is new inclusion in ECC6.0. In the entry above we can see that the particular Custom Below, as it is G.L. view, automatically the G.L. a/c for all the customers i.e. Reconciliation account for all credit sales Sundry D 6.7 Display Balance SAP Menu->Accounting-> Financial Accounting->Accounts Receivable->Accounts->Display Balance (FD10N)

6.8 Display Line items SAP Menu Accounting Financial Accounting Accounts Receivable Accounts Display/change Line

Items to see customer invoice/document(s). Configuration for Incoming Payment Customer invoice raised customer debited so now we receive payment from customer.

y 6.9

y (Step 1) Define Document type for Entry View

Here we configure number range for document type for payment received (in Entry View). IMG FA (n) FAGS (n) Document Document type Define Document types for Entry View For Doc type DZ number range 14 click button Number range Information No . 14 Year 2009 From number 200

To num 299

y y (Step 2) Define Document type for G.L. View

ledger GR Enter new window New entry new window Type DZ Number Range 99

y y (Step 3) Classify General Ledger a/c for Document splitting

FA (n) / G.L. Accounting (n) / Biz transaction / Document splitting / Classify General Ledger a/c for Document splitting COA ADTY New entry Account from 200002 Save Account to 200002 Category 04000

y (Step 4) Incoming Payments

Easy Accounting Financial Accounting A. R. Document Entry-> Incoming Payments (F-28) As shown in Screens 2 and 3, CLEARINGis of 3 types: y Standard full payment y Partial payments in parts y Residual customer had some credit/surplus before this transaction. So this time we keep use the surplus.

y
7. 7.1

To display the balance of customer line item ACCOUNTS PAYABLE (Vendor) This configuration is same as in Accounts-receivable. CONFIG FOR VENDOR INVOICE POSTING

FBL5N

7.1.1 Define Account Groups with Screen Layout (Vendors) IMG Financial Accounting (new) Accounts Receivable & Account payable Vendor Accounts Master Data Preparations for Creating Vendor Master Data Define Account Groups with Screen Layout (Vendors) In this step you determine the account groups for vendors. You can also define reference account groups for one-time accounts. These enable you to control the fields in the one-time account screen. You can, for example, make certain fields required fields and suppress others. When creating a vendor account, an account group must be specified. You can enter a reference account group in the "General data" section of the one-time account master record under "Control data". If you do not specify a reference account group, all fields in the one-time account screen for document entry are ready for input (as before). Via the account group you determine: y The interval for the account numbers y Whether the number is assigned internally by the system or externally by the user (type of number assignment) y Whether it is a one-time account y Which fields are ready for input or must be filled when creating and changing master records (field status) Example: In the one-time accounts you want to suppress the address, communication and bank detail fields. These fields are part of the general data and so you set the field status in the general data section. Define the reconciliation account as a required field since this is a required entry for one-time accounts as well. The field is company code-dependent so you define the status for this field in the company data section. With the account groups, you group accounts together according to the criteria mentioned above, for

example, one-time accounts. You determine the account number interval and the type of number assignment by using number ranges. Note Do not forget to maintain the field status when you create new account groups. If you do not mark a status for a field group, all the corresponding fields are displayed. We recommend that you control the field status by account group. In exceptional cases it may make sense to control the field status by company code or transaction. Notes on changing the account group You can only delete an account group from the system if no master record refers to this account group. Otherwise you can no longer display or change the master record. y Changing the field status definition If you suppress a field which you have already filled in at an earlier date, the field content is still effective. y Changing number ranges You can increase the upper limit of the number range interval as long as no other interval contains the required numbers. You can assign a new number range to the account group. The numbers of the new master records must then be within the new range. Default settings Sample account groups have been defined. Recommendation Do not use the account groups to group the vendor accounts according to content i.e. do not attempt to assign the accounts via the account groups to accounting clerks or to group vendors together according to countries. You can do this via special master record fields. Activities 1. Check and change the standard account groups if necessary. 2. Make sure that the number ranges specified for the account groups have been created. New entry Account group GRSM Name Vendor Account Group One time account ___

7.1.2 Create Number Ranges for Vendor Accounts: IMG Financial Accounting (new) Accounts Receivable & Account payable Vendor Accounts Master Data Preparations for Creating Vendor Master Data Create Number Ranges for Vendor Accounts (XKN1) To no. Current 599999 0 In this activity you create the number ranges for vendor accounts. To do this, specify the following under a two-character key: y A number interval from which the account number for the vendor accounts is to be selected

y The type of number assignment (internal or external number assignment) Assign the number ranges to the account groups for vendors. Note The type of number assignment is especially important. The following is possible: y Transferring the numbers of your vendors from an existing system or a pre-system (external assignment) y Creating the master records under new numbers assigned by the SAP System (internal assignment) External number assignment is useful, for example, if you transfer master data from a pre-system. In all other cases, you should use the internal number assignment. The SAP System offers a number of help functions to determine an account number. Therefore the account numbers no longer have to be "mnemonic". This includes, among other things, the matchcode or the field Prev.acct no. in the vendor master record. Activities 1. Find out which number ranges are needed. 2. Create these number ranges. Notes on transport You transport number range objects as follows: Choose Interval -> Transport in the accounting document Number Range screen. All intervals for the selected number range object are deleted in the target system first. After the import, only the intervals you export are present. The number status are imported with their values at the time of export. Dependent tables are not transported or converted. Additional information For more information on this topic, see the FI Document Posting document.
7. 1.3 Assign Number Ranges to Vendor Account Groups IMG Financial Accounting (new) Accounts Receivable & Account payable Vendor Accounts Master Position A/c Grp. GRSM Data Assign Number Ranges to Vendor Account Groups GRSM Vendor account group [In this step you allocate the number ranges you created in the preceding step to the account groups for vendors. You can use one number range for several account groups. Activities Allocate the required number ranges to the account groups.]

7. 1.4 Define Accounting clerk CO. CD. CLERK GRSM 15

NAME OF THE ACCT CLERK Balu

7. 1.5 Create Vendor Reconciliation Account G.L. Account 100002

Type Description TAB

A/c group Liability Balance Sheet Text SUNDRY CREDITORS A/c Recon. account for acct type VENDOR Tick Line item display Sort Key _012_ (Vendor number) Field Status Group G067 (Reconciliation Account)

Control DATA TAB

Create/bank/interest TAB

7. 1.6 Create Vendor Master Records EASY Accounting Financial Accounting Accounts Payable Master Records FK01 _ Create FK02 for Change FK03 _ for Display

[Reference] is used when working on multiple company codes & we can copy the details of vendors from one C.CD to another. We can change the details copied like name, address, etc. After we give details in window 1 & press enter window 2 opens which contains few TABS. Fill up required details in Address TAB. Then click enterand a new window opens up as shown below:

7. 1.7 Number ranges for vendor invoice

IMG FA (n) FAGS (n) Document Document type Define Document types for Entry View DR is the document type for Customer Invoice Position Doc type KR Double click on KR Click on Number Range information Enter new window new window new window No. Year 19 2009 Enter save From 1 To 999 Current 0

7. 1.8 Define Document Types for G.L. View ledger GR Enter new window New entry new window Type KR Number Range 99

7. 1.9 Define Document no range for G.L. View IMG FA (n) FAGS (n) Document Document Number Range for G.L. View Company code GRSM [Change] INTERVAL [Insert] INTERVAL No . 99 Year 2009 From 1 To 9999999999 Current 0

7. 1.10 Vendor Invoice Posting EASY Accounting Financial Accounting A P Document Entry F-43 _ Invoice general

D m Display Balances S EASY Accounting F. A. A. P. Accounts FK10N _ Display Balance t Display Vendor Document EASY Accounting F. A. A. P. Account FBL1N _ Display/change line items

7.2

VENDOR PAYMENT CONFIGURATION

7.2.1 Document number ranges for Vendor Payment IMG FA (new) FAGS (new) Document Document type Define Document type for Entry View Number Year From To Current 15 2009 1000 1999 0

7.2.2

Define document for GL view Type KZ Number range 99

7.2.3 Outgoing Payments EASY Accounting Financial Accounting Accounts Payable Document Entry Outgoing Payments F-53 _ Post

(Outgoing Payments) Clear: SAP Menu->Accounting-> Financial Accounting->Accounts Payable->Accounts->Clear (F-44)

7.3

CONFIGURING OUTGOING PAYMENT or press Ctrl key &29

Refer page no. 22

8.

DOWN-PAYMENTS
8.1 Customer Down-payments

*Define Reconciliation Account for Customer Down Payments Received: SPRO->IMG-> Financial Accounting->Accounts Receivable & Account payable-> Business Transaction-> Down Payments Received (OBXR) Down Payments Received: SAP Menu->Accounting-> Financial Accounting->Accounts Receivable->Document Entry->Down Payment-> Down Payment (F-29) Clearing Down Payment Received: SAP Menu->Accounting-> Financial Accounting->Accounts Receivable->Document Entry->Down Payment->Clearing (F-39)

8.2

Vendor Down-payments

Define Alternative Reconciliation Account for Down Payments fineAlternative Reconciliation Account for Vendor Down Payments : SPRO->IMG-> Financial Accounting->Accounts Receivable & Account payable-> Business Transaction-> Down Payments Made-> Define Alternative Reconciliation Account for Down Payments (OBYR) In this step, you define an account in which the vendor down payments are managed in the general ledger. The down payment posting is then automatically made to this account instead of to the normal payables account (reconciliation account). Note You can group the specifications account type, special G/L indicator and reconciliation account together under one three-character key. You store the clearing accounts for input tax under this key in the next step. This is only necessary if you display down payments gross. You specify in the alternative reconciliation account via the Tax category field whether a down payment is displayed gross or net. Activities 1. Specify the number of the alternative reconciliation account. 2. Make sure that the account is created and that the Tax category field is filled correctly. 3. If you want the gross display, specify the clearing accounts for input tax in the next step. Down Payments Made: SAP Menu->Accounting-> Financial Accounting->Accounts Payable->Document Entry->Outgoing Payments->Down payment (F-48) Clearing Down Payments: SAP Menu->Accounting-> Financial Accounting->Accounts Payable->Document Entry->Down Payment->Clearing (F-54) Park Documents: SAP Menu->Accounting-> Financial Accounting->General Ledger->Documents Entry-> Enter G/L Account Document (FB50) / Customer (FB70) / Vendor (FB60) (Park Documents Tree On) Post: SAP Menu->Accounting-> Financial Accounting-> General Ledger

->Document Entry->Edit or Park G/L Document (FV50) / Customer (FV70) / Vendor (FB60) (Park Documents Direct) Post: SAP Menu->Accounting-> Financial Accounting-> General Ledger ->Documents->Parked Documents->Post/Delete (FBVO) (FBV2 Change)

9.

INTEREST CALCULATION

Define Interest Calculation Type: SPRO->IMG-> Financial Accounting->Accounts Receivable & Account payable-> Business Transaction->Interest Calculation-> Interest Calculation Global Setting-> Define Interest Calculation Type

y Define Interest Calculation Types

In this step, you create your interest indicators and determine whether they are to be used for the item interest calculation or account balance interest calculation. Note The master record of an account must contain an interest indicator so that it is taken into consideration during interest calculation. Activities 1. Create the required interest indicators. 2. Make sure an interest indicator is entered in the master records of the required accounts Define Number Range for Interest Forms: SPRO->IMG-> Financial Accounting->Accounts Receivable & Account payable-> Business Transaction->Interest Calculation-> Interest Calculation Global Setting-> Define Number Range for Interest Forms

y Define Number Ranges for Interest Forms

In this activity you create number ranges for interest forms by: y Specifying an interval of numbers to assign to the interest forms. y Selecting the type of number assignment (internal). The system assigns a unique number from the number range interval. Once you post an interest document, the number of the form is stored in the "Reference" field. Activities Create a separate number range with internal number assignment for interest calculation. Note Number ranges defined for interest calculation are not used for any other purposes (for example, for document types). If interest is calculated on accounts from various company codes, then you define the same number range for each company code. Notes on transporting You transport number range objects as follows: Choose Interval -> Transport in the accounting document Number Range screen. All intervals for the selected number range object are deleted in the target system first. After the import, only the intervals you export are present. The number statuses are imported with their values at the time of export. Dependent tables are not transported or converted. Further notes For more information on interest calculation, see the documents "FI Accounts Receivable and Accounts Payable" and "FI General Ledger Accounting".

Prepare Interest on Arrears Calculation: SPRO->IMG-> Financial Accounting->Accounts Receivable & Account payable-> Business Transaction->Interest Calculation-> Interest Calculation Global Setting-> Prepare Interest on Arrears Calculation

y Prepare Interest on Arrears Calculation

In this step you make general specifications for each interest indicator for the calculation of interest on arrears. To do this, you make specifications for the selection of items as well as for calculating interest. You can make further specifications as to the subsequent processing of interest, output control and for posting. Activities Make your specifications for each interest indicator and make the required specifications. Define Reference Interest Rates: SPRO->IMG-> Financial Accounting->Accounts Receivable & Account payable-> Business Transaction->Interest Calculation-> Interest Calculation-> Define Reference Interest Rates

y Define Reference Interest Rates

In this step, you define your reference interest rates by entering a key and a mnemonic name. All other fields are purely informative. Activities 1. Define your reference interest rates. 2. Specify the interest rates for the reference interest rates in the "Enter interest values" step. Define Time Based Terms: SPRO->IMG-> Financial Accounting->Accounts Receivable & Account payable-> Business Transaction->Interest Calculation-> Interest Calculation-> Define Time Based Terms

y Define Time-Based Terms

In this activity you specify how the system determines an interest rate for each interest indicator. You can make these settings based on the currency and a validity date. Each entry is assigned a term that determines the type of interest that is calculated (debit or credit interest). You also specify the interest rates that you want to use. You can: y Specify a reference interest rate for which the interest rate is defined. y Specify the required interest rate directly in the Premium field without specifying a reference interest rate. y Specify a reference interest rate and an interest rate in the Premium field. The interest premium is added to the reference interest rate during interest calculation. y You can graduate interest rates by specifying an amount in the Amount from field. Activities 1. Make the required specifications for each interest indicator. 2. After having specified a reference interest rate, ensure that it is defined in the following steps. Enter Interest Values: SPRO->IMG-> Financial Accounting->Accounts Receivable & Account payable-> Business Transaction->Interest Calculation-> Interest Calculation-> Enter Interest Values

y Enter Interest Values

In this step, you specify the required interest rates dependent on the date for the reference interest rates. Activities Specify the interest rates for your reference interest rates. Assign Interest Indicator to Customer: SAP Menu->Accounting-> Financial Accounting->Accounts Receivable->Master Records->Change (Interest Calculation) With Open Items: SAP Menu->Accounting-> Financial Accounting->Accounts Receivable->Periodic Processing-> Interest Calculation->Arrear Interest-> With Open Items (F-28)

(Interest Posting) A/R: Calculation of Interest on Arrears: SPRO->IMG-> Financial Accounting->Accounts Receivable & Account payable-> Business Transaction->Interest Calculation->Interest Posting-> Calculation of Interest on Arrears Toolbar: - System->Services->Batch input->Sessions->Select the Particular session

y A/R: Calculation of Interest on Arrears

In this step, you define the specifications for posting the interest calculated as interest on arrears. The account determination is carried out via the posting interface of application 0002 (interest on arrears). The following specifications are necessary: y Account determination keys and posting details First you determine which account determination keys are used. For the business transaction account determination key, 1000 (interest earned) and 2000(interest paid) should be entered. The other account determination keys (company code, interest indicator, business area) are optional. You use them if you want to define interest posting in more detail. For every combination of the account determination keys, you specify a debit posting key, a credit posting key and account symbols (posting details). You use the account symbol 1000 for the customer posting. It is not necessary to specify an account since the posting is made to the customer account. You do, however, have to specify the posting keys. y G/L accounts For each G/L account symbol, you specify the account allocation for interest earned and interest paid in full. You can differentiate the account specifications according to currencies. y Document type In the Goto menu option you can define a document type for posting the interest. In the standard system, the document type DA is defined for posting interest. Activities Make the necessary specifications for posting the interest.

DUNNING

y Define Dunning Procedures

SPRO->IMG-> Financial Accounting->Accounts Receivable & Account payable-> Business Transaction->Dunning->Dunning Procedure-> Define Dunning Procedure In this activity you enter the settings that control the dunning program by: y Specifying the company codes to include in dunning. You specify these company codes when configuring the dunning program. y Setting up the dunning procedure you want to use. Dunning procedures are company code independent. They determine the dunning interval, the grace periods for the due date determination, and the number of dunning levels. You can also set the dunning level at which you want to list all due items from an account in the dunning notice. y Setting the dunning charges. You can either specify a fixed charge or have the system calculate the charge on the basis of a percentage rate you specify. y Specifying the net payment due date at which a particular dunning level is reached. y Specifying the dunning notice you want to send to your customers. You have to define one or more forms for the notice. Note An account is only included in dunning if it assigned a dunning procedure. To exclude an account from dunning, you can set a dunning block for it. Tips Before defining several dunning procedures and forms, you should check whether you can fulfill all your requirements using one dunning procedure and one form. You should select always dunn. notice? for the last dunning level so that items at this level are not skipped. You can store the header and footer texts separately for your dunning notices. If your letter paper already contains these specifications, you can remove the windows for these texts in the form you define using SAPscript. Activities 1. Find out which company codes to include in dunning. Specify these company codes by choosing Environment -> Company code data. 2. Find out how the dunning procedure should be set up and whether several dunning procedures are necessary. 3. Define your dunning procedures. y To create new dunning procedures, choose New procedure. y To maintain the dunning levels, choose Goto -> Dunning levels in the dunning procedure. Enter the number of days in arrears for each dunning level. The system proposes values which you can overwrite. y To maintain the dunning charges, choose Goto -> Dunning charges in the dunning

procedure. First enter the currency and then enter the dunning charges for the different dunning levels. If you want to define dunning charges dependent on the dunnable amount, also enter the dunning amount. If you want to define charges in other currencies, choose Edit -> Other currency. y To specify minimum amounts for dunning notices, choose Goto -> Minimum amounts in the dunning procedure. Enter the dunning level and the minimum amounts and/or the minimum percentage rates. You can also specify a minimum amount for the interest calculation for each dunning level. y To determine sort fields, choose Environemnt -> Sort fields in the dunning procedures. 4. Find out which forms should be used for dunning. 5. Create these forms and specify one or more forms for each dunning procedure. 6. Make sure a dunning procedure is entered in the master records of the customers/vendors who are to be taken into consideration for dunning. Further notes For more information on the dunning program, see the FI Accounts Receivable and Accounts Payable documentation. Assign the Dunning Procedure to the Customer: SAP Menu->Accounting-> Financial Accounting->Accounts Receivable->master Records->FD01 Create Sending Dunning Notice to Customers: SAP Menu->Accounting-> Financial Accounting->Accounts Receivable->Periodic Processing->Dunning (F150) Sample Documents: SAP Menu->Accounting-> Financial Accounting->General Ledger->Document Entry-> Sample Documents-> Create (F-01) Display Balance of Sample Documents : SAP Menu->Accounting-> Financial Accounting->General Ledger->Document Entry-> Sample Documents ->Display (FBM3) Posting of Sample Documents: SAP Menu->Accounting-> Financial Accounting->General Ledger->Document Entry-> Sample Documents-> Posting (F-01) Define Posting Keys: SPRO->IMG->Financial Accounting-> Financial Accounting Global Settings->Documents->Line Items->Controls-> Define Posting Keys (OB41)

y Define Posting Keys

In this activity you define posting keys. Users specify a posting key before entering a line item. The posting key controls how the line item is entered and processed. For each posting key, you define among other things: y which side of an account can be posted to,

y y

which type of account can be posted to, and which fields the system displays on the entry screens and whether an entry must be made (field status).

Note The system also uses the field status group you specify in a G/L account to determine the status of fields in document entry. Field status groups are defined within a field status variant. Recommendation Use the posting keys delivered with the standard system. Activities 1. Check the standard settings. 2. Modify them if necessary. In particular, you may need to make changes to customer and vendor posting keys if a different field status is required.

ASSET ACCOUNTING

Chart of Depreciation: SPRO->IMG-> Financial Accounting-> Asset Accounting->Organizational Structure->Copy Reference Chart of Depreciation / Depreciation Areas (EC08)

y Copy Reference Chart of Depreciation/Depreciation Areas

In this step, you define your charts of depreciation . The chart of depreciation is a list of depreciation areas arranged according to business and legal requirements. The chart of depreciation enables you to manage all rules for the valuation of assets in a particular country or economic region. You must assign a chart of depreciation to each company code that is defined in Asset Accounting. SAP provides country-specific charts of depreciation with predefined depreciation areas. These charts of depreciation serve only as a reference for creating your own charts of depreciation, and are therefore not directly accessible in the SAP system. When creating a chart of depreciation, you have to copy the reference chart of depreciation. Note When you create a chart of depreciation, the system copies all of the depreciation areas in the reference chart of depreciation. You have to delete any depreciation areas that you do not need in your chart of depreciation. Depreciation areas that are not used can still be activated at a later point in time (after the production startup). A newly activated depreciation area can take over values from another depreciation area. (see the R/3 library FI-AA: Calculation of Asset Values (General) -> Subsequent Creation/Deletion of a Depreciation Area) Standard settings SAP delivers country-specific reference charts of depreciation for each country. They contain all depreciation areas for that country that are necessary to meet legal and business requirements. For example, there are reference charts of depreciation for the following countries:

y USA y Great Britain y Germany y Austria y Spain y Switzerland y and so on Activities Create a chart of depreciation, using either an SAP standard chart of depreciation, or your own existing chart of depreciation as a reference (Organizational unit -> Copy org. unit). 1. If you want to create a chart of depreciation for a country for which a standard chart of depreciation is not delivered by SAP, you can refer to a country-specific standard chart of depreciation with similar depreciation parameters. You then have to specify any further country- specific characteristics during the other customizing steps. 2. Enter the name of your chart of depreciation. 3. Delete the depreciation areas that are not needed from your new chart of depreciation and/or add new depreciation areas by copying them. Further notes R/3 library FI-AA: Organizational Elements
Account Determination: SPRO->IMG-> Financial Accounting-> Asset Accounting->Organizational Structure->Asset Class->Specify Account Determination

y Specify Account Determination

In this step, you define the account determinations for Asset Accounting (key and description). The key of an account determination must be stored in the asset class asset class. In this way, the account determination links an asset master record to the general ledger accounts to be posted for an accounting transaction using the asset class. You specify the general ledger accounts to be posted for the individual accounting transactions in later implementation activities . You can specify various accounts for each depreciation area to be simultaneously posted to. Recommendation Usually, you need at least the same number of account determinations as you have asset balance sheet accounts in the general ledger (normally this is the same as the number of asset types). Requirements You must have defined your company codes. Standard settings SAP supplies account determinations. The account determinations refer to the standard charts of accounts of Financial Accounting. Activities Create account determinations according to your requirements (key/description). Further notes

R/3 library: Transactions -> Account Determination Screen Layout Rules: SPRO->IMG-> Financial Accounting-> Asset Accounting->Organizational Structure->Asset Class->Create Screen Layout Rules [FBAU]

y Create Screen Layout Rules

In this step, you create your screen layout rules. The screen layout specifies the status of the fields in the asset master record. You use the screen layout to determine if fields are required entry or optional entry fields, or if they are suppressed completely, for example. In this step, you create only the keys and descriptions of the screen layout controls. You define the the field group rules for the screen layouts themselves in the step Master Data. You can enter a screen layout rule in one of two places: either in the part of the asset class valid in the entire client, or in the part of the asset class valid for the chart of depreciation. The screen layout rule is then valid either for all assets in the asset class, or for all assets in the asset class/chart of depreciation. Note You creat the screen layouts here for the general master data (only the key and description). There is a separate screen layout control for the depreciation areas and the valuation section of the asset master record. You define this second screen layout control in the step Define screen layout control for asset depreciation areas. Standard settings SAP supplies pre-defined screen layout rules for the most commonly used asset types. Recommendation If you have additional asset types for which you need special screen layout rules, make your own additions to the standard rules. Activities Define the screen layout rule for the general data part of the asset class by entering a key and a description. Additional information R/3 library FI-AA: Master Data -> Screen Layout and Maintenance Level

Define Number Range Interval: SPRO->IMG-> Financial Accounting-> Asset Accounting->Organizational Structure->Asset Class-> Define Number Range Interval (AS08)

y Define Number Range Interval

In this step, you define the number ranges for this company code for assigning the main asset number. You can roughly classify your asset portfolio using the number ranges. In the asset class, you can specify the number range for the assignment of numbers for that asset class. To keep administration needed for the number assignment to a minimum, you should use number ranges with internal assignment. You can enter asset numbers of unique and special significance in the

master data field "inventory number." Using the relevant customer enhancement project you can use these numbers as asset keys in standard reports (see the R/3 library FI-AA: User Modifications). Note The number assignment of asset sub-numbers is also controlled by the asset class. You specify there whether the assignment of sub-numbers is internal or external. Number ranges are not required for the assignment of asset sub-numbers. Requirements You must have worked through the section Company codes for Asset Accounting Standard settings SAP provides standard number ranges. Recommendation If possible, use internal number assignment. Activities 1. First, determine how many separate number ranges you need for assets. You already specified which company codes have separate number ranges and which share the number ranges of another company code, when you defined the company codes for Asset Accounting. Create the number intervals for company codes which have their own number ranges. Further notes (Transport) You transport number range objects as follows: Choose Interval -> Transport in the accounting document Number Range screen. All intervals for the selected number range object are deleted in the target system first. After the import, only the intervals you export are present. The number statuses are imported with their values at the time of export. Dependent tables are not transported or converted.

Assign G/L Account: SPRO->IMG-> Financial Accounting-> Asset Accounting->integration with General Ledger-> Assign G/L Account (AO90)

y Assign G/L Accounts

In this step, you specify the balance sheet accounts, special reserve accounts, and the depreciation accounts for Asset Accounting. Note If you enter accounts for gain/loss for a special depreciation area, the system does not post revenue from the write-off of special reserves. Instead, when there is revenue from write-off of special reserves due to an asset sale, the system includes this amount in the gain/loss. The system then balances the book depreciation area loss by a posting to an offsetting account, and posts the sum/difference between the revenue from the write-off of the special reserve and the book depreciation area loss to these accounts. There are restrictions on the screen layout of accounts that will be posted using collective posting. There cannot be any required fields that are not supplied with values by the batch input posting run. Example:

A posting text cannot be a required entry for value adjustment accounts, since the depreciation posting program does not create any posting texts. Further notes SAP Library FI-AA: Integration with the General Ledger -> Account Determination

Define Screen Layout for Asset Master Data: SPRO->IMG-> Financial Accounting-> Asset Accounting->Master Data->Screen Layout-> Define Screen Layout for Asset Master Data

y Define Screen Layout for Asset Master Data

In this step, you define the screen layout control for asset master data. The screen layout control contains the specifications for the field groups in the asset master record. You enter the screen layout control in the asset class. This method allows you to structure the master record individually for each asset class. Note This step must be carried out exactly to guarantee optimal master data maintenance. Standard settings SAP delivers some sample definitions which you can use as references when formulating a more detailed structure for the asset master. Activities 1. Create the screen layout control according to your requirements. (You may already have carried out this step in the "Organizational Structures" section of the FI-AA Implementation Guide.) 2. Define for the individual field groups y the characteristics of the master record screen (whether fields are required, optional, display fields or should be suppressed) y the maintenance level y whether it can be copied (when creating a new master record using a reference master record) Caution The only field that can be suppressed are initial fields (that is, they have no contents). Fields that have contents are always displayed, regardless of the screen layout. Fields might have contents, despite the screen layout, for example if y the screen layout is changed y the asset data transfer supplies values to suppressed fields If you want to suppress fields that have contents, you have to define them first as modifiable, and then delete their contents. Further notes SAP Library FI-AA: Master Data Maintenance -> Screen Layout and Tab Layout for Master Data Define Asset Class: SPRO->IMG-> Financial Accounting-> Asset Accounting->Organizational Structure->Asset Class-> Define Asset Class (OAOA)

y Define Asset Classes

In this step. you define the asset classes. The asset class is the most important criteria for structuring fixed assets from an accounting point of view. Every asset has to be assigned to exactly one asset class. The asset class is used to assign the assets (and their business transactions) to the correct general ledger accounts. Several asset classes can use the same account assignment. You can see that it is possible to make finer distinctions at the level of the asset class than at the level of the general ledger accounts. The most important tasks of the asset classes are: y the assignment of default values when creating assets (particularly depreciation terms) y the grouping of assets for reporting purposes You define the asset classes in the system in a series of steps. The asset class is structured in three parts: y control parameters y default values for general master data y default values for depreciation terms in the chart of depreciation You can assign depreciation terms to an asset class for any number of charts of depreciation. This makes it possible to manage an asset class catalog that is valid for an entire corporate group, independent of the country-specific charts of depreciation. In this step, you define the asset classes and their control parameters. In further steps, you add further to the asset classes by supplying default values for certain logical field groups in the asset master record. Note Structuring assets for accounting is not dependent on the technically oriented structuring in the PM (Plant Maintenance) component. PM has its own terms for classification (functional location, equipment) that are based on the requirements of plant maintenance. You can set up a relationship between the PM and FI-AA components by entering the asset number in the master record of the related piece of equipment. In this way, you can select all pieces of equipment that belong to an asset. Recommendation The number of asset classes needed varies greatly, depending on the size of your organization. In many cases, the number 50 is usually appropriate. Generally, you should at least group together assets with the same depreciation terms into an asset class. In any case, it must be possible to clearly assign new assets to an asset class when they are entered in the system. Defining the asset classes is fundamental to SAP Asset Accounting. Therefore, you should carry out this step with considerable care and attention. Requirements y You must have created a chart of depreciation. y You must have defined number ranges for assigning the main asset number. Standard settings SAP supplies predefined asset classes as examples (1-8). Activity 1. In the overview screen, enter the key of the asset class, a short text and a description of the asset class. 2. Then maintain the control parameters in the detail screen. The following specifications are very important:

y account determination y Screen layout control (define the screen layout control in the step Master data). y number range for the assignment of the asset main number y assignment of sub-numbers - (internal or external) Further notes R/3 library FI-AA: Organizational Elements -> Asset Classification
Asset Create: SAP menu->Accounting ->Financial Accounting->Fixed Assets->Create->Assets (AS01) Asset Posting: SAP menu->Accounting ->Financial Accounting->Fixed Assets->Create->Assets->Posting->Acquisition->External Acquisition->with Vendor (F-90) Asset Display: SAP menu->Accounting ->Financial Accounting->Fixed Assets->Create->Assets->Display Assets (AS03) Asset Explorer: SAP menu->Accounting ->Financial Accounting->Fixed Assets->Create->Assets-> Asset Explorer (AW01N) CASH Create General Ledger for Cash: SAP Menu->Accounting -> Financial Accounting-> Banking Transaction->Cash Journal->Create G/L (FS00) Cash Journal Number Range: SAP Menu->Accounting -> Financial Accounting-> Banking Transaction->Cash Journal->Define Number Ranges (FBCJC1) Set up of Cash Journal: SAP Menu->Accounting -> Financial Accounting->General Ledger->Document Entry-> Cash Journal Posting->(FBCJ) Define Document type for Cash Journal: SAP Menu->Accounting -> Financial Accounting-> Banking Transaction->Cash Journal-> Define Document type for Cash Journal (FBCJCO) Create, Change, Delete Business Transaction: SAP Menu->Accounting -> Financial Accounting-> Banking Transaction->Cash Journal-> Create, Change, Delete Business Transaction (FBCJC2) Posting of Cash Journal:

Errors

Balancing field "Profit Center" in line item 001 not filled While making a posting of customer invoice

2 During incoming payment clearing (F-28) Cost centre & P. Order was marked Mandatory . Even after giving CC & PO entry wasn t allowed gave an error - Create account 400002 for 09.03.2006 as a cost element in controlling area GRSM. So I changed both from mandatory to optional.