Sap Implementation of Fi Co Reallife Project

IMPLEMENTING SAP ERP FOR ABP Ltd
A PROJECT REPORT
Submitted to the
SCHOOL OF MANAGEMENT
In partial fulfillment of the requirements

for the award of the degree
Of
MASTER OF BUSINESS ADMINISTRATION
By
BALASUBRAMANIAN.L
(Reg.No.35080092)
Under the guidance of
P.Saravanan.Asst. Professor(Sr.G)
SCHOOL OF MANAGEMENT
SRM UNIVERSITY
SRM NAGAR, KATTANKULATUR,
KANCHIPURAM DISTRICT-603203
MAY-2010
ACKNOWLEDGEMENT
I first thank my Almighty God and my parents for their sustained blessings
and grace at all stages of my training.
I render my unfathomable gratitude and special institute to P.Saravanan,

Asst.Prof. (Sr.G) for his valuable guidance, remedial encouragement, timely
suggestions and his deference shown during the preparation of this dissertation.
I render my special thanks to our College Management and to our beloved Dean
Dr.Jayshree Suresh, for giving me this opportunity to carry out this Project.
Last but not the least, I thank my friends and well wisher for their good
cooperation while I am doing my project.
BONAFIDE CERTIFICATE
Certified that this project report titled IMPLEMENTING SAP ERP IN ABP Ltd
is the bonafide work of Balasubramanian.L who carried out the research under my
supervision.
Certified further, that to the best of my knowledge the work reported here in does
not form part of any other Project report or dissertation on the basis of which a
degree or award was conferred on an earlier occasion on this or any other
candidate.
Date:
Place:
Student signature
PROJECT GUIDE
HEAD OF THE MBA
P.Saravanan . Asst.Prof. (Sr.G)
DR.JAYSHREE SURESH
..
SAP Implementation of
FI, CO, MM, PP
Table of Contents
1. INTRODUCTION ............................................................................................................................................ 6
1.1 SAP LANDSCAPE .............................................................................................................. 6

1.2 SAP R/3 OVERVIEW ......................................................................................................... 8
1.3 OBJECTIVE OF THE PROJECT ......................................................................................... 10
2. ASAP METHODOLOGY .............................................................................................................................. 11
2.1 PROJECT PREPARATION ................................................................................................. 12

2.2 BUSINESS BLUEPRINT ..................................................................................................... 12
BUSINESS BLUEPRINT................................................................................................................................... 13
2.2.1 Requirements ............................................................................................................................... 10
2.2.2 Existing Organisation Structure ................................................................................................ 11
2.2.3 Overview of Organizational Structure ...................................................................................... 12
REALIZATION .................................................................................................................................................. 18
2.3
REALIZATION .......................................................................................................... 14
2.3.1 Configuration of FI ..................................................................................................................... 15

2.3.2 CO ............................................................................................................................................... 163
2.3.3 MM ..................................................................................................................................................................................170
2.3.4 PP..................................................................................................................................................182
3. CONCLUSION...188
4.BIBLIOGRAPHY.189
1. Introduction
SAP Implementation is the whole of processes that defines a complete method to
implement the Enterprise Resource Planning SAP ERP software in an organization. The SAP
implementation method described in this entry is a generic method and not a specific
implementation method as such. It is based on best practices and case studies from various
literature sources and presents a collection of processes and products that make up a complete
implementation method to allow any organization to plan and execute the implementation of
SAP software
The Generic methods consist of the following steps:

Phases
Delivery Group
Activities
Task
The implementation of SAP software, such as SAP R/3 is almost always a massive operation that
brings a lot of changes in the organization. The whole process can take up to several years.
1.1 SAP Landscape
Landscape is like a server system or like a layout of the servers or some may even call it
the architecture of the servers viz. SAP is divided into three different landscapes Development,
Quality and Production.
- Development (DEV) is where the consultants do the customization as per the company's
requirement. It would have multiple clients for ex: 190- Sandbox, 100- Golden, and 180- Unit
Test.
- Quality is where the core team members and other members test the customization. Quality
may again have multiple clients for ex: 300- Integration Test, 700 to 710 Training.
- Production is where the live data of the company is recorded. It may have something like a
200 Production.
These names and numbers are the implementer's discreet on how they want it or they
have been using in their previous implementations or how are the client's business scenario.
Now whatever we do in the Sandbox doesn't affect the other servers or clients. Whenever
we are satisfied with our configuration and we can use it moving forward, we RE-DO it in the
golden client (this is a very neat and clean client and we cannot use it for rough usage). As we redo everything that we thought was important and usable, we get a transport request pop up upon
saving every time. we save it under a transport request and give our description to it. Thus the
configuration is transported to the Unit Test client (180 in this example).
Now upon a successful transport by the Basis guy, we have the entire configuration in the
Testing client, just as it is in the Golden client. The configuration remains in sync between these
two clients.
But in the Testing client we can not even access SPRO (Display IMG) screen. It's a transaction
only client where you perform the unit test. Upon a satisfactory unit test, we can move the good
configuration to the next Server (DEV). The incorrect or unsatisfactory configuration is
corrected in Golden (may again as well be practiced in the sandbox prior to Golden) and
accordingly transported back to 180 (Unit Test) until the unit test affected by that particular
configuration is satisfactory.
The Golden client remains the 'database' or we may rather call it the 'ultimate' reference client for
the entire good, complete and final configuration that is being used in the implementation.
These three are landscape of any Company. They organized their office in these three ways.
Developer develops their program in Development server and then transports it to test server. In
testing server tester check/test the program and then transport it to Production Server. Later it
will deploy to client from production server.
1.2 SAP R/3 Overview
SAP R/3 is SAP's integrated software solution for client/server and distributed open
systems. SAP's R/3 is the world's most-used standard business software for client/server
computing. R/3 meets the needs of a customer from the small grocer with 3 users to the multibillion dollar companies The software is highly customizable using SAP's proprietary
programming language, ABAP/4. R/3 is scalable and highly suited for many types and sizes of
organizations.
R/3 stands for real-time three tier architecture. This is the kind of architecture SAP R/3 system
has.
R/3 means three layers are installed in Different system/server and they are connected with each
other.
Web-enabled
Presentation
Application
Internet
Transaction
Service/Web
Service
Database
Presentation Layer
The presentation server is actually a program named sapgui.exe. It is usually installed on
a user's workstation. To start it, the user double-clicks on an icon on the desktop or chooses a
menu path. When started, the presentation server displays the R/3 menus within a window. This
window is commonly known as the SAPGUI, or the user interface (or simply, the interface). The
interface accepts input from the user in the form of keystrokes, mouse-clicks, and function keys,
and sends these requests to the application server to be processed. The application server sends
the results back to the SAPGUI which then formats the output for display to the user.
Application Layer
An application server is a set of executables that collectively interpret the ABAP/4

programs and manage the input and output for them. When an application server is started, these
executables all start at the same time. When an application server is stopped, they all shut down
together. The number of processes that start up when you bring up the application server is
defined in a single configuration file called the application server profile. Each application server
has a profile that specifies its characteristics when it starts up and while it is running.
Database Layer
The database layer consists of a central database system containing all of the data in the
R/3 System. The database system has two components - the database management system
(DBMS), and the database itself. SAP does not manufacture its own database. Instead, the R/3
System supports the following database systems from other suppliers: ADABAS D, DB2/400
(on AS/400), DB2/Common Server, DB2/MVS, INFORMIX, Microsoft SQL Server, ORACLE,
and ORACLE Parallel Server.
1.3Objective of the project

Primary Objective
To explain about the end to end process of implementation of SAP

To do the configuration part in FI & CO for ABP Ltd
Secondary objective
To study the concepts of preparing business blueprint
To explain about phases of ASAP Methodology
To brief about step by step Realization part of FI , CO & SD
To discuss about the Testing methodologies
To explain about the requirements of ABP Ltd limited
2. ASAP Methodology
Project
preparation
Blueprinting
Definition
Requirements
Final
preparation
Realization
Design
Build
Test
Implement
Go-live
closeout
ASAP: Accelerated Systems Application and Products in Data Processing

The ASAP provides the methodology for implementing and continuously optimizing the SAP
System.
2.1 Project preparation
In this phase we plan our project and lay the foundations for successful implementation. At this
stage, we can make the strategic decisions crucial to our project:
o
Define project goals and objectives
Clarify the scope of implementation
Define project schedule, budget plan, and implementation sequence
Establish the project organization and relevant committees and assign resources
2.2 Business Blueprint
In this phase, create a blueprint which categorizes documents of enterprise requirements and
establishes how business processes and organizational structure are to be represented in the SAP
System. Here Gap Analysis is explained. There are certain details are necessary in blue print.
(i.e) Duration, Start Date & End date, Status, No. of persons responsible for the project.
BUSINESS BLUEPRINT
2.2.1 Requirements
ABP Ltd manufactures and distributes Tyres and tubes. It has operations in India. The products
are sold throughout India. The company has four manufacturing plants located at Tamilnadu,
Kerala,Karnataka, and Andhrapradesh in India.
Tamilnadu plant produces Three stone Tyres, Karnataka plant produces Tubes, Kerala Plant
produces Tubeless tyres, and AP plant produces Radial tyres.
The purchasing organization at each plant looks after the material needs of the plants
respectively. Each purchasing organization is managed by their respective purchasing groups. 2
purchasing groups are assigned to each purchasing organization VG (Vendor Procurement
Groups) and LG (Local Procurement Groups).
Each plant has two types of storage locations (one for parts, semi-finished materials and the other
for finished products). Each manufacturing plant has its own shipping point.
The company has one sales organization which is responsible for Pricing, Selling and other Sales
related activities in India. Therefore, price of the products provided through the sales
organization should be the same in all the different states in India. There are two Distribution
channels assigned to the sales organization, Retail and Wholesale. All the grinders are sold to
both retailers and wholesalers by the sales organization. The sales area is divided into 4 Sales
districts based on geographical region TN, KL, KA and AP. The Sales districts could use
different marketing strategies and promotion methods. Each sales district has 2 sales offices in
their area and sales offices are divided into sales groups based on geographical region- East
Suburb, West Suburb, South Suburb, North Suburb and other regional areas.
Sales Representatives or Sales persons, the responsible persons for sales are belong to sales
groups and report to sales office about the sales activity of customers. Each Sales Personnel has
own Sales employee ID. These are maintained in Customer master data as partner function and
used in sales orders in SAP ERP.
ABP Ltd uses 2 business areas one for Tilting grinders division and the other for Tabletop
division. Thus, the financial statements including Profit and loss statement are generated
separately for each division. 2 cost centres are assigned to each business areas based on product.
As the company manufactures 4 different types of products, each cost centre calculates all the
related costs for each product. A work centre is assigned to each cost centre based on the type of
the grinders.
2.2.2 Existing Organisation Structure
ABP Limited
ABP Ltd.
TN
ABP Ltd.
KL
ABP Ltd.
KA
ABP Ltd.
AP
2.2.3 Overview of Organizational Structure
2. 2.3.1 FI & CO
Controlli
ng
Area
BA55
BA55
ABP Ltd
Company
Code
BA77
Tyres
BA01
Tyres
CONTROLLING AREA
BA11
Production
of radial tyres
BA88
Tubes
BA02
Tubes
Business
Area
BA22
Tubeless Tyres
Cost
Center
A Controlling area structures the internal accounting operations of an organization within

Controlling. They represent closed units that are used to calculate costs. All internal allocations
relate solely to objects that belong to the same controlling area. ABP Ltd is under a controlling
area of the following:
Controlling Area
Description
BA55
Controlling Area for ABP Limited
COMPANY CODE
A company code is the smallest organizational unit for which a complete self-contained set of
accounts can be drawn up for the purposes of external reporting. As shown in the above diagram,
the following company code will be defined for ABP Ltd:
Company Code
Description
BA55
ABP Limited
BUSINESS AREA
Business areas provide an additional evaluation level for the purpose of segment reporting. In
Financial Accounting (FI), internal balance sheets and profit and loss statements area generated
on the basis of business areas. ABP Ltd has 2 business areas for each division.
Business Area
Description
BA77
BA88
Tyres
Tubes
COST CENTRE
Cost centres are used to collects related costs. There are 4 cost centres used for DG Ltd:
Cost Centre
Description
BA01
BA11
BA02
BA22
TYRES
RADIAL TYRES
TUBELESS TYRES
TUBES
REALIZATION
2.3 Realization
In this phase, configure the requirements contained in the Business Blueprint. Baseline
configuration (major scope) is followed by final configuration (remaining scope), which can
consist of up to four cycles. Other key focal areas of this phase are conducting integration tests
and drawing up end user documentation.
2.3.1 Configuration of FI
2.3.1.1 To create an IMG Project:

Tools -> Customizing ->IMG ->Project Administration
click on the Create Project icon at the top of the screen.
Move on to scope, which is the next tab
Save it. Click on project team member
Change the project name as Dinesh and move on to status vals and select status and move into
right as shown below
Save the project and come back to the following screen
Then select SAP reference IMG in the top of the screen to do the configuration part.
2.3.1.2 Define a company

Enterprise Structure -> Definition -> Financial Accounting -> Define Company
Click on New Entries and Enter the following:
Company:
BA55
Company Name:
BA55
City:
CHENNAI
Country:
IN
Language Key:
EN
Currency:
INR
Save.
2.3.1.3 Define Company Code

Enterprise Structure -> Definition -> Financial Accounting -> Edit, copy, delete, check
company code
Note: Copy Currency and G/L Accounts correctly.
Copy, delete, check company code -> choose
Organization object company code -> click on copy organizational object
From company code:
To my company code:
1000
BA55
Click No to accept to copy the G/L account company code data.

Click Yes to accept not to allocate a different local currency to target company code.
Click on continue to accept the information that certain data was not copied. Continue clicking
until majority of the tables to be copied. Click on continue to perform transport request. Click on
continue again to be completed.
2.3.1.4 Assign Company Code to Company

Enterprise Structure -> Assignment -> Financial Accounting -> Assign Company Code to
Company
Enter CC05 against the company code CC05
Save.
2.3.1.5 Define Business area

Enterprise Structure -> Definition -> Financial Accounting -> Define Business Area
Click on New entries icon and enter the followings:
BA77 Tilting Grinders
BA88 Tabletop Grinders
Save.
2.3.1.6 Define functional area

Enterprise Structure> Definition> Financial Accounting> Define Functional Area
Click on New entries icon and enter the followings:
FA55
FA66
FA77
FA88
FA33
FA99
FA44
Save.
ABP Manufacturing
ABP Sales
ABP General Admin
ABP Financial Expenses
ABP AUC
ABP Sales Revenue
ABP Cost of Goods Sold
2.3.1.7 Define credit control area

Enterprise Structure > Definition > Financial Accounting > Define credit control area
Click on New entries and enter the following:
Credit Control Area: BA55 Credit control area ABP Ltd
Currency: INR
Update: 000012
(Open order value on time axis, delivery and bill.doct value)
Fiscal Year Variant: K4
2.3.1.8 Assign company code to credit control area

Enterprise Structure > Assignment > Financial Accounting > Assign company code to credit
control area
Assign company code BA55 to Credit Control area BA55.
Save.
2.3.1.9 Define Chart of Accounts

Financial Accounting > General Ledger Accounting > G/L Accounts > Master Data >
Preparations > Edit Chart of Accounts List
Click on New entries icon.
Enter the followings:
Chart of Accounts: BA56
Description: Chart of Accounts_ABP Ltd
Controlling integration: as manual creation of cost elements
Save.
2.3.1.10 Assign Company Code to Chart of Accounts

Preparations > Assign Company Code to Chart of Accounts
Find company code BA55 and assign chart of account BA56 for both chart of account field and
country chart of account field.
Save.
2.3.1.11 Copy G/L Accounts

Financial Accounting > General Ledger Accounting > G/L Accounts > Master Data > G/L
Account Creation and Processing> Create G/L Accounts with Reference
Enter company code BA55 and reference company code 1000 which you want to copy from.
Save.
Click on Details icon.
Click on Accounts from reference icon and enter the accounts you want to copy from.
Click on G/L accounts creation icon.
Save.
2.3.1.12 FINANCIAL ACCOUNTING GLOBAL SETTINGS

Enter Global Parameters
Enter Global Parameters
Financial Accounting > Financial Accounting Global Settings > Company code > Enter
Global Parameters
Enter as follows:
Save.
Active Cost of Sales Accounting

Financial Accounting > Financial Accounting Global Settings> Company Code> Cost of
Sales Accounting> Activate Cost of Sales Accounting
Find the company code BA55 and Set to Active.
Set Up Ledger for Cost of Sales Accounting

Financial Accounting > Financial Accounting Global Settings> Company Code> Cost of
Sales Accounting> Set Up Ledger for Cost of Sales Accounting
Double click on Ledger 0F, Cost of Sales Accountng Ledger.
Click on Assign company code/ Company.

On the bottom area, find the company code (BA55) and click on ASSIGN.
Click Continue to accept pop up message.
Find the company code (BA55) on the upper side and click on Assign Activity.
Click on Choose Activity
Copy all the activity and Save.
Enable business area Balance Sheet

Financial Accounting > Financial Accounting Global Settings> Business area> Enable
business area balance sheet
Find company code and tick on the Company code (BA55)
Fiscal Year
Maintain Fiscal Year Variant
Financial Accounting > Financial Accounting Global Settings > Fiscal Year > Maintain
Fiscal Year Variant (Maintain shortened Fisc. Year)
Click on new entries and create fiscal year variant Z1.
Make 12 as ordinary posting period and 4 as special period.
Save.
Assign Company code to a Fiscal Year Variant

Financial Accounting > Financial Accounting Global Settings > Fiscal Year > Assign
Company code to a Fiscal Year Variant
Assign the company code BA55 to the fiscal year variant Z1
Save.
Posting Periods
Define Variants for Open Posting Periods
Financial Accounting > Financial Accounting Global Settings > Document> Posting period>
Define Variants for Open Posting Periods
Click on New entries and enter the following:
BA00 Variant for ABP Ltd
Save.
Open and Close Posting Periods

Financial Accounting > Financial Accounting Global Settings > Document> Posting period >
Open and Close Posting Periods
Click on New entries and enter periods for each account type A, D, K, M, S.
Save.
Assign Variants to Company Code

Financial Accounting > Financial Accounting Global Settings > Document> Posting period >
Assign Variants to Company Code
Assign the variant BA00 to the company code CC05
Save.
Document Number Ranges

Define Document Number Ranges
Financial Accounting > Financial Accounting Global Settings > Document> Document
Number Ranges > Define Document Number Ranges
Enter the company code BA55 and Define number ranges.
Document Header
Define Document types
Financial Accounting > Financial Accounting Global Settings > Document > Document
header > Define Document Types
As document types are pre-defined in SAP, just make sure that Document types are correctly
exist which will be used for the FI process
Document Item
Define Posting keys
Financial Accounting > Financial Accounting Global Settings > Document> Line Item>
Controls> Define Posting Keys
Check posting keys which will be used for the FI process
Maintain Field Status Variants

Controls> Define Field Status Variants
Click on New entries and name field status variant as BA00
Click on Field Status groups folder on the left side of the screen.
Check the followings as field status groups:
BPS1
BPS2
G001
G003
G004
G005
G006
Direct Postings for FI: REV, B/S inc WBS

Direct Postings for FI: COSTS incl WBS
General (with text, allocation)
Material consumption accounts
Cost accounts
Bank accounts (obligatory value date)
Material accounts
G007
G008
G009
G011
G012
G013
G014
G017
G018
G019
G023
G025
G026
G029
G030
G031
G032
G033
G036
G039
G040
G041
G045
G049
G050
G052
G056
G059
G062
G064
G067
G068
G069
G070
G071
ICCF
Z001
Z002
ZFUN
Asset accts (w/o accumulated depreciatn)

Assets area clearing accounts
Bank accounts (obligatory due date)
Clearing accounts (with settlement per.)
Receivables/payables clearing
General (obligatory text)
MM adjustment accounts
Freight/customs provisions/clearing (MM)
Scrapping (MM)
Other receivables/payables
Plant maintenance accounts
Inventory adjustment accounts
Accounts for down payments made
Revenue accounts
Change in stock accounts
Accounts for down payments received
Bank accounts (obligat.value/due dates)
Cost accounts for external services
Revenue accts (with profit center)
Accts for pmnts on acct made for assets
Personnel clearing accounts
Tax office clearing accounts
Goods/invoice received clearing accounts
Manufacturing costs accounts
Customer commission clearing accounts
Accounts for fixed asset retirement
Amortization accounts
Inventory accounting material stock acct
Investment support accounts
Other cost accounts (obligatory text)
Reconciliation accounts
Reconciliatn accts (payables - Austria)
Cost accounts (travel expenses)
Clearing accounts (travel expenses)
Reconcil.accts (KIDNO/foreign payment)
CO <-> FI reconciliation posting
Reserves subsequent settlement
Balance Sheet w. Profit Centre
Client Funds
Assign Company Code to Field Status Variants

Controls> Assign Company Code to Field Status Variants
Assign the company code BA55 to field status variant just created BA00
Define Screen Variants for Document Entry

Controls> Screen Variants for Document Entry
Find the company code and proper variants. If withholding tax is used for document entry, click
on 2. This removes withholding tax field when document is entered.
If not used, leave it to standard version.
Define Tolerance Groups for Employees

Financial Accounting > Financial Accounting Global Settings > Document> Line Item >
Click on new entry and enter the followings:
Tolerance group: BA55
Amount per document : 90000000000
Amount per open item account: 90000000000
Cash discount per line item: 5%
Save.
Assign to the tolerance group just created BA55 to the company code BA55
Document default values

Enable Fiscal Year Default
Financial Accounting > Financial Accounting Global Settings > Document> Default Values
for Document Processing> Enable Fiscal Year Default
Choose the company code BA55 and tick on propose fiscal year
Default Value Date

Financial Accounting > Financial Accounting Global Settings > Document> Default Values
for Document Processing> Default Value Date
Choose the company code and tick on propose value date
Recurring Entries
Financial Accounting > Financial Accounting Global Settings > Document> Recurring
Entries> Define Run Schedules
New entry Define Run Schedules as ZBA1
Define Run dates

Financial Accounting > Financial Accounting Global Settings > Document> Recurring
Entries> Enter Run Dates
Choose Run Schedule BA55 and enter the dates
Tax
Check Calculation Procedure
Financial Accounting > Financial Accounting Global Settings> Tax on Sales/Purchases>
Basic Settings> Check Calculation Procedure
Choose Define process
Choose TAXIN
Double click Control data folder on the left side of the screen
Check Condition types. If not exists as followings, create new entries
BASB
Base Amount
MWAS
Output Tax
MWVZ
Non-deduct.Input Tax
MWVS
Input Tax
Click on Go back icon.

Choose Define Condition types
Find the condition types defined above. Double click on MWVS
Check its Access Sequence whether it is MWST
Click on Go back icon.

Choose Access Sequences
Find the Access sequence checked above. Double click on MWST
Double click Field folder on the left side and check the fields.
Assign Country to Calculation Procedure

Basic Settings> Assign Country to Calculation Procedure
Find the country IN and assign TAXIN to IN
Define Tax Codes for Sales and Purchases

Financial Accounting > Financial Accounting Global Settings > Tax on Sales/Purchases >
Calculation > Define Tax Codes for Sales and Purchases
Find the country key IN and enter new entry D1- Input tax_ABP Ltd
Choose V for tax type which is input tax.

Press Enter.
Enter 10% for Input tax as tax percentage rate
Click on Tax accounts icon on the menu bar and choose Chart of accounts BA56
Assign G/L account 154000 (Input tax) to transaction VST
Define Tax Accounts

Posting> Define Tax Accounts
Find VST (Input tax) and click on details
Enter chart of Account (BA56)
Enter Input tax account 154000
Find MWS (Output tax) and click on details
Enter chart of Account (BA56)

Enter Output tax account 175000
Enable Business Area Balance Sheet

Financial Accounting> Financial Accounting Global Settings> Business Area> Enable
Business Area Balance Sheet
Find the company code BA55 and tick on Business area FS
2.3.1.13 GENERAL LEDGER ACCOUNTING

G/L Master
Define Accounts Group
Preparations > Define Accounts Group
Find company code BA55 and define account groups as follows:
Financial Accounting > General Ledger Accounting > G/L Accounts > Master Records >
Preparations > Define Retained Earnings Accounts
Under Chart of Account BA55, Transaction: BIL Balance Carry Forward, enter retained
earnings account from the chart of account
P&L Statement Account type Account
X
900000 (Inappropriate retained earnings from previous yr)
Y
10900000 (AR60/Unapp.retained earnings from previous yr)
G/L Line items

Define Line Layout
Financial Accounting > General Ledger Accounting > G/L Accounts > Line Items > Display
Line Item > Define Line Layout
Double click on the line layout and click on Insert after. Choose needed fields and save.
Choose Additional fields

Financial Accounting > General Ledger Accounting > G/L Accounts > Line Items > Line
Item Display > Choose Additional Fields
Enter account type as D (Customer) and click on Insert after. Choose needed fields and save.
Repeat the above step for K (Vendor) and S (G/L account) if needed.
Adjustment Posting Reversal

Permit Negative Posting
Financial Accounting > General Ledger Accounting > Business Transactions > Adjustment
Posting/Reversal > Permit Negative Posting
Find company code BA55 and tick on Negative postings allowed
Define Reasons of Reversal

Financial Accounting > General Ledger Accounting > Business Transactions > Adjustment
Posting/Reversal > Define Reasons of Reversal
Check reason codes and add reasons if needed.
G/L Closing
Prepare Automatic Postings for Foreign Currency Valuation
Financial Accounting > General Ledger Accounting > Business Transactions > Closing >
Valuating > Foreign Currency Valuation > Prepare Automatic Posting for Foreign Currency
Valuation
Double click on Exch. Rate Diff. using Exch. Rate Key, Transaction KDB.
Enter the Chart of Account CA05 and enter the followings:

230000
DEM 230000
FRF 230000
USD 230000
280000
280000
280000
280000
230000: Foreign currency Revaluation losses

280000: Foreign Currency Revaluation Gains
Save.
Go back to the previous screen and double click on Exchange Rate Dif.: Open Items/GL Acct,
Transaction KDF
Click on G/L Account 420000

Exchange Rate Difference Realised:
Loss: 230000 (Foreign currency revaluation losses)
Gain: 280000 (Foreign currency revaluation gains)
Valuation:
Val. Loss 1: 230010 (Expense from currency revaluation)
Val. Gain 1: 280010 (Income from currency revaluation)
Bal. Sheet adj: 144099 (Accounts Receivable- other companies (adj acct.))
Repeat the above the steps for the following accounts:

44000 46000 86100 86200 86300 99000 100009 102009 110002 110005 110009 113101
Go back to the previous screen and double click on Payment difference for altern.currency,
Transaction KDW.

Debit
230030 (Translation differences - foreign currency)
Gains)
Credit
280000(Foreign Currency Revaluation
Define Adjustment Accounts for GR/IR Clearing

Reclassify > Define Adjustment Accounts for GR/IR Clearing
Double click on Invoiced but not yet delivered (BNG) and enter the chart of account CA05.

Reconciliation account: 191000, 191100 (Goods Rcvd/Invoice Rcvd)
Adjustment account: 191099 (Adjustment GR/IR clearing)
Target account: 191101 (GR/IR: Goods/services not yet delivered)
Go back to the previous screen.

Double click on Delivered but not yet invoiced (GNB).

Reconciliation account: 191000, 191100 (Goods Rcvd/Invoice Rcvd)
Adjustment account: 191099 (Adjustment GR/IR clearing)
Target account: 191102 (GR/IR: Goods and services not yet invoiced)
Define Financial Statement Versions

Document > Define Financial Statement Versions
Click on New entries and enter the followings:
Financial Statement Version: BA55
Name: Balance sheet ABP Ltd
Maintain Language: EN
Chart of Account: BA56
Save.
G/L Integration
Define Accounts for Materials Management
Financial Accounting > General Ledger Accounting > Business Transactions > Integration >
Materials Management > Define Accounts for Materials Management
Double click on Expense/revenue from consign.mat.consum.(Transaction: AKO)

Valuation Class
3000
sale
3001
sale
3030
sale
3040
sale
3050
sale
Account
236000 Losses - consumption for consignment
3100
sale
7900
sale
7920
sale

Double click on Expense/revenue from Expense/revenue from stock transfer (Transaction:

AUM)

Valuation Class
3000
3001
3030
3040
3050
3100
7900
7920
Account
235000 Losses - inventory transfer
Double click on Subsequent settlement of provisions (Transaction: B01)

Debit
192700 Bonus provisions (MM)
Credit
192700 Bonus provisions (MM)
Double click on Subsequent settlement of revenues (Transaction B02) and enter the accounts to
repeat the above steps.
Debit
281200 Contribution bonus differences
differences
Credit
281200 Contribution bonus
Double click on Change in stock account (Transaction BSV)

Valuation
class
3000
3001
3002
3030
3040
3050
3100
7900
7920
Account
400020 Material Consumed
893010 Cost of goods sold without cost element
893010 Cost of goods sold without cost element
Double click on Inventory posting (Transaction BSX)
Val.
Class
3000
3001
3002
3030
3040
3050
3100
3200
7900
Account
300000 Inventory - Raw Material 1
303000 Operating supplies
304000 Spare Parts
305000 Packaging material
310000 Trading Goods
790000 Unfinished products
790010 Work in process from external
7910 procurement
7920 792000 Finished goods inventory
7925 792500 Finished goods inventory
Double click on Revaluation of other consumables (Transaction COC)

Val.
Class Debit
Credit
231099 ML PRD
231099 ML PRD
0001 consumption
consumption
Double click on Materials management small differences (Transaction DIF)
Debit
Credit
231900 Small price loss - invoice receipt
281900 Small price gains - recepit of
(MM)
invoice (MM)
Double click on Purchasing account (Transaction EIN)
Val.
Valuation Account
Modif class
0001
3000
379998 Purchase
account
0001
3001
379998 Purchase
account
0001
3030
379998 Purchase
account
0001
3040
379998 Purchase
account
0001
3050
379998 Purchase
account
0001
3100
379998 Purchase
account
0001
7910
379998 Purchase
account
Double click on Purchase offsetting account (Transaction EKG)
Val.
Valuation Account
Modif class
0001
3000
379999 Purchase offset account
0001
3001
0001
3030
0001
3040
0001
3050
0001
3100
0001
7910
Double click on Freight clearing (Transaction FR1)
192100 Freight Clearing Account (MM)
Double click on Freight provisions (Transaction FR2)
86100 Freight provision (MM)
Double click on Customs clearing (Transaction FR3)
192300 Customs Duty Clearing Account (MM)
Double click on Customs provisions (Transaction FR4)
86200 Customs provision (MM)
Double click on Purchasing freight account (Transaction FRE)
379998 Purchase account
Double click on External activity (Transaction FRL)
Val.
Class
1210
3000
3001
3002
3003
3030
3040
3050
3100
3200
3300
7900
7910
7920
Account
417001 Purchased services
Double click on Incidental costs of external activities (Transaction FRN)

415000 External procurement costs
Double click on Offsetting entry for inventory posting (Transaction GBB)
Val.
Gen.
Val.
Modif Modif Class
Account
0001 AUA 7900 895000 Factory output of production orders
0001 AUA 7910 895000
0001 AUA 7920 895000
0001 AUF 3040 895000
0001 AUF 7900 895000
0001 AUF 7920 895000
0001 AUF 7925 895000
0001 BSA 3100 799999 Inventory (own goods)
0001 BSA 7900 799999
0001 BSA 7920 799999
0001 BSA 7925 799999
0001 INV 3000 233000 Losses - inventory variance
0001 INV 3001 233000
0001 INV 3030 233000
0001 INV 3040 233000
0001 INV 3050 233000
0001 INV 3100 233000
0001 INV 7900 233000
0001 INV 7920 233000
0001 INV 7925 233000
0001 VAX 3000 400000 Consumption, raw material 1
0001 VAX 3001 400020 Materials consumed
0001 VAX 3030 400020
0001 VAX 3040 400020
0001 VAX 3050 400020
0001 VAX 3100 893010 Cost of goods sold (without cost element)
0001 VAX 7900 893010
0001 VAX 7910 893010
0001 VAX 7920 892000 Change in finished products inventory
0001 VAX 7925 892000
0001 VAY 3000 894025 Inventory change - foreign prod.sale w.cost elemnt
0001 VAY 3001 894025
0001 VAY 3030 894025
0001 VAY 3040 894025
0001 VAY 3050 894025
0001 VAY 3100 894025
0001 VAY 7900 894025
0001 VAY 7910 894025
0001 VAY 7920 893015 Cost of goods sold (with cost element)
0001 VAY 7925 893015
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
VBO
VBO
VBO
VBO
VBO
VBO
VBO
VBO
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VBR
VKA
VKA
VKA
VKA
VKA
VKA
VKA
VKA
VKA
VNG
VNG
VNG
VNG
VNG
VNG
VNG
VNG
3000
3001
3030
3040
3050
3100
7900
7920
1210
3000
3001
3002
3003
3030
3040
3050
3100
3200
3210
3220
3300
3240
7900
7910
7920
7925
8100
8200
3000
3001
3030
3040
3050
3100
7900
7910
7920
3000
3001
3030
3040
3050
3100
7900
7910
400020 Materials consumed

400020
400020
400020
400020
400020
893020 Inventory change - additions to co. produced goods
893020
400000 Consumption, raw material 1
400000
400000
400010 Raw materials consumed 2
400000
400000
403000 Sundry inventory consumed
404000 Spare Parts
405000 Packaging materials consumption
410000 Usage: trading goods
400000
400000
400000
400000
890000 Semi-finished products consumed
891000 Inventory change work in process
892000 Change in finished products inventory
892000
400000
400000
894010 Inventory change - sales OEM products (without CE)
894010
894010
894010
894010
894010
893010 Cost of goods sold (without cost element)
893010
893010
400001 Raw materials scrapped
400001
400001
400001
400001
400001
890001 Scrapped material - own production
890001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
0001
VNG
VQP
VQP
VQP
VQP
VQP
VQP
VQP
VQP
VQP
VQP
VQY
VQY
VQY
VQY
VQY
VQY
VQY
VQY
VQY
ZOB
ZOB
ZOB
ZOB
ZOB
ZOB
ZOB
ZOB
ZOB
ZOB
ZOF
ZOF
ZOF
ZOF
7920
3000
3001
3030
3040
3050
3100
7900
7910
7920
7925
3000
3001
3030
3040
3050
3100
7900
7920
7925
3000
3001
3002
3030
3040
3050
3100
7900
7910
7920
3000
7900
7910
7920
890001
237000 Losses - consumption of quality control
237000
237000
237000
237000
237000
237000
237000
237000
237000
400001 Raw materials scrapped
400001
400001
400001
400001
400001
890001 Scrapped material - own production
890001
890001
400020 Materials consumed
400020
400020
400020
400020
400020
400020
893025 Inventory change - additions to co. produced goods
893025
893025
895000 Factory output of production orders
895000
895000
895000
Double click on Account-assigned purchase order (Transaction KBS)

Debit
81
Credit
91
Double click on Materials management exch.rate diffs (Transaction KDM)
Debit
Credit
230000
280000
Double click on MM exchange rate rounding differences (Transaction KDR)
Debit
Credit
230000
280000
Double click on Material ledger frm low.levels E/R diff. (Transaction KDV)
Debit
Credit
230050
280050
Double click on Consignment payables KON
Gen.
Modif Account
PIP
169900 Accounts Payable - consigment sale
Double click on Accruals and defer.acct(material ledger) (Transaction LKW)
3000
3001
3030
3040
3050
3100
7900
7920
231050
231050
231050
231050
231050
231050
231050
231050 Reconciliation Material ledger
Double click on Price Differences from W/Off WIP (Transaction PRA)

231001 Material ldg single-level price differences (loss)
Double click on Cost (price) differences (Transaction PRD)
General modification Valuation class Account
3000 231000 Loss - price variances
3001 231000
3030 231000
3040 231000
3050 231000
3100 231000
7900 231500 Expense from price difference of own goods
7910 231500
7920 231500
PRA 3000 231000
PRA 3001 231000
PRA 3030 231000
PRA 3040 231000
PRA 3050 231000
PRA 3100 231000
PRA 7900 231500
PRA 7910 231500
PRA 7920 231500
PRF 3000 231000
PRF
PRF
PRF
PRF
PRF
PRF
PRF
PRF
3001
3030
3040
3050
3100
7900
7910
7920
231000
231000
231000
231000
231000
231500
231500
231500
Double click on Price Diff. from WIP Written Off (Mat.) (Transaction PRM)
231002 Material ldg single-level price differences (loss)
Double click on Material ledger fr.low.levels price dif. PRV
231520
281520
Double click on Cost (price) differences (mater.ledger) (Transaction PRY)
0001
231520
281520
0001
231099
231099 ML PRD consumption
Double click on Expense/revenue from revaluation (Transaction RAP)
231080
281080
Double click on Inv.reductions from log.inv.verification (Transaction RKA)
191120 Clearing-invoice reduction
Double click on Neutral provisions (Transaction RUE)
86300 Delivery costs provision (MM)
Double click on Unplanned delivery costs (Transaction UPF)
231600 Unplanned delivery costs
Double click on Input tax
(Transaction VST)
154000 Input tax (See account assignment text)
Double click on WIP from Price Differences (Int. Acty) (Transaction WPA)
791000 Products being processed
Double click on WIP from Price Differences (Material) (Transaction WPM)
791000 Products being processed
Double click on GR/IR clearing account (Transaction WRX)
191100 Goods Rcvd/Invoice Rcvd (third party)
Double click on GR/IR clearing acct (mat. ledger) (old) (Transaction WRY)
0001 191110
Integration Sales & Distribution and Financial Accounting (for billing)

Financial Accounting > General Ledger Accounting > Business Transaction > Integration >
Sales and Distribution > Prepare revenue account determination
Choose CustGrp/ MaterialGrp/ AcctKey
Enter the following in the table:
Save and go back to the previous screen.

Repeat the above steps for custgrp/account and matgrp/accout.
Save.
Go back to the previous screen and choose general.
Define the following for sales organization BA01.
Save.
Go back to the previous screen.

Choose Account key and enter the followings:
2.3.1.14 ACCOUNTS RECEIVABLE & ACCOUNTS PAYABLE
Customer Master
Define Account Groups with Screen Layout
Financial Accounting > Accounts Receivable and Accounts Payable > Customer Account >
Master Data >Preparation for creating customer master > Define Account Groups with
Screen Layout (Customers)
Account Group: BA01
Name: Wholesale customer
Maintain field status if needed by double clicking.
Choose Address and click on Details icon.

Make necessary changes.
Assign Number Ranges to Customer Account Groups

Financial Accounting > Accounts Receivable and Accounts Payable > Customer Account >
Master Record >Preparation for creating customer master > Assign Number Ranges to
Customer Account Groups
Acct
Group Name
BA02 Wholesale customer
Save.
No Ranges
...XX
Vendor Master
Define Account Groups with Screen Layout
Financial Accounting > Accounts Receivable and Accounts Payable > Vendor Account >
Master Data> >Preparation for creating Vendor master > Define Account Groups with Screen
Layout (Vendors)
Account Group: BA02
Name: Vendor
Maintain field status if needed by double clicking.
Save.
Assign Number Ranges to Vendor Account Groups

Financial Accounting > Accounts Receivable and Accounts Payable > Vendor Account >
Master Data > >Preparation for creating Vendor master > Assign Number Ranges to Vendor
Account Groups
Acct
Group Name
BA02 Vendor
Save.
No Ranges
XX
Outgoing Payment
Define Accounts for Overpayments/Underpayments
Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions
> Outgoing Payment > Outgoing Payments Global Settings > Define Accounts for
Overpayments/Underpayments
Chart of Accounts
Transaction
Account
BA56 Chart of accounts_ABP Ltd

ZDI
Payment differences by reason
881000 (Unallowed customer discounts)
Define Accounts for Exchange Rate Differences

> Outgoing Payment > Outgoing Payments Global Settings > Define Accounts for Exchange
Rate Differences
Enter the Chart of Account BA56 and enter the accounts for exchange rate differences.
Define Tolerances (Vendors)

> Outgoing Payment > Manual Outgoing Payments > Define Tolerances (Vendors)
Enter the company code BA55 and make new entries.
Tolerance Group: BA55
Assign the tolerance group to the company code.
Define Accounts for Payment Differences (Manual Outgoing Payment)

> Outgoing Payment > Manual Outgoing Payments > Overpayment/Underpayment > Define
Accounts for Payment Differences (Manual Outgoing Payment)
Chart of Accounts
Transaction
Account
BA56 Chart of accounts ABP Ltd

ZDI
881000 Unallowed customer discounts
A/R & A/P Payment Program

Set Up All Company Codes for Payment Transactions
> Outgoing Payment > Automatic Outgoing Payments > Payment Method/Bank Selection for
Payment Program > Set Up All Company Codes for Payment Transactions
Find the company code BA55 and set up cash discount and tolerance group.
Set Up Paying Company Codes for Payment Transactions

> Outgoing Payment > Automatic Outgoing Payments > Payment Method/Bank Selection for
Payment Program > Set Up Paying Company Codes for Payment Transactions
Find the company code BA55 and set up minimum amount for incoming /outgoing payments.
Decide how Bill of Exchange can be created choose one bill of exchange per due date option.
Set Up Payment Methods per Country for Payment Transactions

> Outing Payment > Automatic Outgoing Payments > Payment Method/Bank Selection for
Payment Program > Set Up Payment Methods per Country for Payment Transactions
Check payment methods for country code IN that it has C (Check), I (Bank transfer- incoming),
O (Overseas payments) and T (Bank transfer).
Set Up Payment Methods per Company Code for Payment Transactions

Financial Accounting > Accounts Receivable and Accounts Payable > Business transactions >
Outgoing Payment > Automatic Outgoing Payments > Payment Method/Bank Selection for
Payment Program > Set Up Payment Methods per Company Codes for Payment Transactions
Find the company code CC05 and check payment methods for the company code which has been
checked the above C, I, O and T.
Set Up Bank Determination for Payment Transactions

Outgoing Payment > Automatic Outgoing Payments > Payment Method/Bank Selection for
Payment Program > Set Up Bank Determination for Payment Transactions
Find the paying company code CC05 and enter ranking order and bank accounts for payment
methods which are C, I, T and O.
Incoming Payment
Define Accounts for Overpayments/Underpayments
Financial Accounting > Accounts Receivable and Accounts Payable >Business transactions >
Incoming Payment> Incoming Payments Global Settings > Define Accounts for
Overpayments/Underpayments
Enter the chart of account CA05 and enter the followings:
Chart of Accounts
Transaction
Account
BA56 Chart of accounts ABP Ltd

ZDI
881000 Unallowed customer discounts
Define Accounts for Exchange Rate Differences

Incoming Payment > Incoming Payments Global Settings > Define Accounts for Exchange
Rate Differences
Enter the chart of account BA56 and enter the accounts for exchange rate differences in the chart
of account.

Incoming Payment > Manual Incoming Payments > Define Tolerance Groups for Employees
Check if the tolerance group is correctly assigned to the company code CC05 which is created in
earlier stage of the implementation.
Define Tolerances (Customers)

Incoming Payment > Manual Incoming Payments > Define Tolerances (Customers)
Check if the tolerance group is correctly assigned to the company code BA55 which is created
previously. The company code should have 2 tolerance group assigned. One to the tolerance
group, which applies tolerance and the other which does not apply tolerance group.
Down Payment
Define Reconciliation Account for Customer Down Payments
Down Payment Received > Define Reconciliation Account for Customer Down Payments
Choose the chart of account BA55 and enter reconciliation accounts for down payment received
and down payment request.
Account type
D (Customer)
Special G/L indicator F (Down payment Request)
Click on Details icon.

Chart of Accounts
BA56
Recon.
Account
140000(Trade Receivables-domestic)
140010 (Trade Receivables - domestic one-time)
141000(Trade Receivables foreign)
141010(Trade Receivables - foreign one-time)
Special
Account
196000 (Payment requests customers)
Chart of Accounts
BA56
Account type
D (Customer)
Special G/L indicator A (Down Payment)
Recon.
Account
Special
Account
170000 (Advanced Customer Payments)
Down Payment Made > Define Alternative Reconciliation Account for Down Payments
Choose the chart of account CA05 and enter reconciliation accounts for down payment made and
down payment request.
Chart of Accounts
BA56
Account type
K (Vendor)
Special G/L indicator F (Down payment Request)
Recon.
Account
160000(Trade Payable-domestic)
160010 (Trade Payable -domestic one-time)
161000(Trade Payable- foreign)
161010(Trade Payable- foreign one-time)
Special
Account
196300 (Payment requests Vendors)
Repeat the above step for down payment current asset, tangible, intangible assets
Reconciliation Account
Define Alternative Reconciliation Account for Customers
Postings with Alternative Reconciliation account > Other Special G/L Transactions > Define
Alternative Reconciliation Account for Customers
Account type
D (Customer)
Special G/L indicator E (Reserve for bad debt)
Click on details icon

Chart of Accounts
BA56
Recon.
Account
Special
Account
142000 (Allowance for doubtful accounts)
Account type
D (Customer)
Special G/L indicator H (Security Deposit)
Chart of Accounts
BA56
Recon.
Special
Account
Account
197000 (Accounts Receivable - payment
withheld)
140010 (Trade Receivables - domestic one-time) 197000 (Accounts Receivable - payment
withheld)
197000 (Accounts Receivable - payment
withheld)
141010(Trade Receivables - foreign one-time) 197000 (Accounts Receivable - payment
withheld)
Define Alternative Reconciliation Account for Vendors

Postings with Alternative Reconciliation account > Other Special G/L Transactions > Define
Alternative Reconciliation Account for Vendors
Account type
K (Vendor)
Special G/L indicator G (Guarantee Received)
Click on details icon.

Chart of Accounts
BA56
Recon.
Account
Special
Account
196400 (Guarantees vendors)
Chart of Accounts
BA56
Account type
D (Customer)
Special G/L indicator H (Security Deposit)
197100 (Accounts Payable - payment withheld)
2.3.1.15 BANK ACCOUNTING

House Bank
Define Housebank
Financial Accounting > Bank Accounting > Bank Accounts > Define House Banks
Define/ Check House banks and its accounts. If needed, add new entries.
Bill of Exchange
Define Alternative Reconcil. Acct Bills/Exch. Receivable
Financial Accounting > Bank Accounting > Business transactions > Bill of Exchange
Transactions > Bill of Exchange Receivable > Post Bill of Exchange Receivable > Define
Alternative Reconcil. Acct Bills/Exch. Receivable
Account type
Special G/L ind.
Chart of Accounts
D (Customer)
B (Bill of exchange received)
BA56
Recon.
Special
Account
Account
126000 (Bills of exchange receivable)
140010 (Trade Receivables - domestic one-time) 126000 (Bills of exchange receivable)
141010(Trade Receivables - foreign one-time) 126000 (Bills of exchange receivable)
Account type
Special G/L ind.
D
S
(Customer)
(Check/ Bill of exchang)
Chart of Accounts
BA56
Recon.
Special
Account
Account
196200 (Contingent claim for bills of
exchange)
140010 (Trade Receivables - domestic one-time) 196200(Contingent claim for bills of exchange)
exchange)
141010(Trade Receivables - foreign one-time) 196200(Contingent claim for bills of exchange)
Define Alternative Reconciliation. Account Bills of Exchange Payable

Transactions > Bill of Exchange Payable > Create Bill of Exchange Payable > Define
Alternative Reconcil. Acct Bills/Exch. Receivable
Account type
Special G/L ind.
K (Vendor)
S (Check/ Bill of exchange)
Chart of Accounts
BA56
Recon.
Account
exchange)
Special
Account
196200 (Contingent claim for bills of exchange)
Define Alternative Reconcil. Account for Reverse Bill/Exch

Transactions > Check/Bill of Exchange > Check/Bill of Exchange Transactions Issued >
Define Alternative Reconcil. Account for Reverse Bill/Exch.
Account type
Special G/L ind.
K (Vendor)
S (Check/ Bill of exchange)
Chart of Accounts
BA56
Recon.
Account
exchange)
Special
Account
Define Alternative Reconcil. Account for Reverse Bill/Exch

Transactions > Check/Bill of Exchange > Check/Bill of Exchange Transactions Received >
Define Alternative Reconcil. Account for Reverse Bill/Exch.
Account type
Special G/L ind.
D
B
(Customer)
(Bill of exchange receivable)
Chart of Accounts
BA56
Recon.
Special
Account
Account
140010 (Trade Receivables - domestic one-time) 126000 (Bills of exchange receivable)
141010(Trade Receivables - foreign one-time) 126000 (Bills of exchange receivable)
Account type
Special G/L ind.
D
S
(Customer)
(Check/ Bill of exchange)
Chart of Accounts
BA56
Recon.
Special
Account
Account
exchange)
140010 (Trade Receivables - domestic one-time) 196200(Contingent claim for bills of exchange)
exchange)
141010(Trade Receivables - foreign one-time) 196200(Contingent claim for bills of exchange)
2.3.2 CO
2.3.2.1 CONTROLLING AREA
Maintain controlling area.
Create controlling area to establish cost centre standard hierarchy
Enterprise Structure -> Definition-> Controlling-> Maintain controlling area-> Maintain
Controlling Area
Click on New Entries:
Controlling Area: BA55 (CO Area = CCode)
Name: ABP Ltd
Assignment Control: Controlling area same as company code
Currency type: 10
Currency: INR
Chart of Accounts: BA56
Fiscal Year Variant: Z1
Assign company code to controlling area

Enterprise Structure -> Assignment -> Controlling-> Assign company code to controlling area
Highlight on controlling area BA55. Click on Assignment of company code BA55. Click on
New entries. Enter BA55.
Save.
2.3.2.2 COST CENTRE ACCOUNTING

Activate cost centre accounting in controlling area
Controlling -> Cost centre accounting -> Activate cost centre accounting in controlling area
Highlight on controlling area CC05. Click on Activate components/control indicators. Click
on New entries. Enter the following:
Fiscal year: 2010
Cost centres: Component active
Order Mgt: Component active
Commit Mgt: Component active
Activity Based costing: Component active for parallel and integrated calculation
Insert tick (activate) on all components
Insert tick on All currencies and Variances
Save.
2.3.2.3 STANDARD HIERARCHY

Enter Standard Hierarchy
Controlling -> Cost centre accounting -> Activate cost centre accounting in controlling area
Highlight on controlling area BA55. Click on Details
You will notice an additional item called CCtr Std Hierarchy under other settings. Insert the
value BA55 and enter. Click on Yes to a message Should system CC05 be created as a standard
hierarchy?
Save.
2.3.2.4 COST CENTRE

Create cost centre standard hierarchy
Controlling -> Cost center accounting-> Master Data-> Cost center-> Define standard
hierarchy.
Normally your standard hierarchy is selected by default. If it is different, to choose your standard
hierarchy for the controlling area BA55, use the following menu path:
Extras => Transport standard Hierarchy
Enter the controlling area BA55. Enter.
In your standard hierarchy/controlling Area, choose Create Cost centre. Enter basic data.
Cost Centre: BA01
Name: Production Centre 1
Description: Tyres
Person Responsible: 51038-01
Cost Centre Category: 1 (Production)
In the next screen, Enter
Business Area: BA01
Functional Area: BA55 (ABP Ltd Manufacturing)
Currency: INR
Repeat the above steps for other Cost Centres and Make 4 cost centres BM01, BM02, BM11,
BM22
Cost Centre: BA11
Description: Productioncentre for radial tyres
Business Area: BA01
Currency: INR
Cost Centre: BA02
Description: Tubes

Business Area: BA02
Currency: INR
Cost Centre: BA22
Description: Tubeless tyres
Business Area: BA02
Functional Area: BA55ABP Ltd Manufacturing)
Currency: INR
Save to activate the cost centres created. If you still see the status as red, move back and come
back to see the standard hierarchy. You will notice the status being active (green).
2.3.2.5 COST ELEMENTS

Define Cost Elements
Controlling -> Cost Element accounting-> Master Data-> Cost Elements -> Create Cost
Elements
Choose Create Primary Cost Element
Enter Controlling Are BA55
Enter
Enter Cost Element 890000 and validate date.
Choose Cost Element Category > Choose 1 (Primary costs/Cost-reducing Revenues)
Save.
2.3.2.6 NUMBER RANGES FOR CO DOCUMENTS

Set Number Ranges for CO documents
Controlling -> General Controlling -> Organization -> Maintain Number Ranges for
Controlling Documents
Enter Controlling Area BA55 and click Copy icon.
Copy from Co Area 1000 to BA55.
Accept a message. Enter.

Click Display Interval to check the number ranges
Your screen will be the following:
1. 1. 5 MM
1.5.1 ENTERPRISE STRUCTURE
Set up a Plant
Enterprise Structure -> Definition -> Logistics General -> Define, copy, delete, check plant
Choose -> Copy, delete, check plant
Organization object plant -> Click on copy organizational object
Copy
From plant: 1000
To plant:
BA01
The above process is repeated for the second plant (BA02), the third plant (BA03) and the fourth
plant (BM04).
Maintain Storage Location

Enterprise Structure -> Definition -> Materials Management -> Maintain Storage Location
Enter Work Area: BA01
All storage locations will have been copied from plant 1000 to plant BM01. Select all and then
deselect the first 2 storage locations. Delete the selected storage locations.
Modify as follows:
0011 Semi Finished
0012 Finished
Repeat the above process for maintaining storage locations (Semi-Finished and Finished) for
Work Area: Plant BA02, BA03, BA04.
Maintain Purchasing Organization

Enterprise Structure -> Definition -> Materials Management -> Maintain Purchasing
Organization
New Entries defined for Purchasing Organisations:
BA01
BA02
BA03
BA04
CN Purchasing Organisation
KL Purchasing Organisation
KA Purchasing Organisation
AP Purchasing Organisation
Assign Plant to Company Code

Enterprise Structure -> Assignment -> Logistics General -> Assign Plant to Company Code
Click on Assign to assign the plants BA01, BA02, BA03, BA04 to the company code BM02.
Create Purchasing Groups

Materials Management -> Purchasing -> Create Purchasing Groups
Create purchasing groups:
VPG: Vendor Proc Grp
LPG: Local Proc Grp
Maintain company code for Materials Management

Logistics-General -> Material Master -> Basic Settings -> Maintain Company Codes for
Materials Management
Against the company code BA55, change the period to current period (current year and current
month) i.e. June, 2010.
Note: Before you start creating any material master in your plant/company code, you need to
perform the above step to initialize the accounting period to the current period. Otherwise, once
material master is created, and if the accounting period is in the past, then you need to close all
the periods by closing one month at a time to move forward to the current period. To close one
month at a time, you can use the following menu path:
(To know the current period of your material master (MM), you need to check the Accounting
view of your material master and note down the period.)
To close the period:

Logistics -> Materials Management -> Material Master -> Other -> Close Period (Transaction
Code: MMPV)
From Company Code: BA55
To Company Code: BA55
Period: Next month
Fiscal Year: Suitable year
Execute.
1.5.2 ACCOUNT GROUP-VENDOR

Logistic-General ->Business Partner ->Vendor ->Control ->Define Account Groups and Field
Selection(Vendor)
If this is done in FI module, the account groups should exist.
Check the followings.
BA01 Vendors
BA02 Vendors-others
1.5.3 PARTNER FUNCTION

Material Management -> Purchasing->Partner Determination->Partner Roles->Define
Permissible Partner Roles per Account Group
VN
VN
Vendor BA01 Vendors

Vendor BA02 Vendors-others
1.5.4 VALUATION AREA

Materials Management> Valuation and Account Assignment> Account Determination>
Account Determination Without Wizard> Group Together Valuation Areas
2. 1. 6 PP
2.6.1 ENTERPRISE STURCTURE
Create work centre
Logistics => Production => Master Data => work centre => work centre => Create
(transaction Code: CR01)
Plant: BA55
Work centre: BA01
Work centre category: 0003 (labour)
Enter
Work centre: Labour 1

Person Responsible: 000
Usage: 001 (Only Routing)
Standard Value Key: SAP1
Under Costing tab, enter the cost centre: BA01
Repeat the above steps for other plants BA02, BA03 and BA04
Plant: BA02
Cost Centre: BA11 Work Centre: BA02
Plant: BA03
Cost Centre: BA02 Work Centre: BA03
Plant: BA04
Cost Centre: BA22
Work Centre: BA04
2.6.2 MASTER DATA

Create a standard routing for the finished product A-IPBW
Logistics => Production => Master Data => Routings => Routings => Standard Routings =>
Create (transaction Code: CA01)
Material:
A-IPBW_01
Plant:
BA01
In the next screen, enter:

Usage:
1 (Production)
Status:
4 (General Released)
Create a Bill of Material (BOM) for A-IPBW_01

Logistics => Production => Master Data => Bills of Materials => Bill of Material =>
Material BOM => Create (transaction Code: CS01)
Material:
Tyres & Tubes
Plant:
BA01
BOM usage:
Alternative BOM:
Activate MRP
Material Requirements Planning> Planning File Entries> Activate MRP and Set Up Planning
File
Click on MRP
Find plants BA01, BA02, BA03 and BA04 and tick on Activate Requirements planning.
Conclusion
Thus The Implementation of SAP ERP for ABP Limited has been done through
various phases of ASAP Methodologies and it is configured based upon the
companys requirements. Also the requirements could be satisfied with reference to
testing Sales and distribution processes. Unit Testing has been done for various
business transactions.
BIBLIOGRAPHY
WWW.SAPHELP.COM
WWW.SAPLIBRARY.COM
WWW.UAC.SAP.COM
WWW.WIKIPEDIA.COM
WWW.ONESTOPSAP.COM

Sap Implementation of Fi Co Reallife Project

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Sap Implementation of Fi Co Reallife Project

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IMPLEMENTING SAP ERP FOR ABP Ltd

In partial fulfillment of the requirements

I render my unfathomable gratitude and special institute to P.Saravanan,

HEAD OF THE MBA

P.Saravanan . Asst.Prof. (Sr.G)

1.1 SAP LANDSCAPE .............................................................................................................. 6

2.1 PROJECT PREPARATION ................................................................................................. 12

2.3.1 Configuration of FI ..................................................................................................................... 15

The Generic methods consist of the following steps:

1.1 SAP Landscape

An application server is a set of executables that collectively interpret the ABAP/4

1.3Objective of the project

To explain about the end to end process of implementation of SAP

ASAP: Accelerated Systems Application and Products in Data Processing

Define project goals and objectives

Clarify the scope of implementation

Define project schedule, budget plan, and implementation sequence

2.2 Business Blueprint

2.2.2 Existing Organisation Structure

2.2.3 Overview of Organizational Structure

A Controlling area structures the internal accounting operations of an organization within

Controlling Area for ABP Limited

2.3.1.1 To create an IMG Project:

click on the Create Project icon at the top of the screen.

Move on to scope, which is the next tab

Save it. Click on project team member

Save the project and come back to the following screen

2.3.1.2 Define a company

2.3.1.3 Define Company Code

Click No to accept to copy the G/L account company code data.

2.3.1.4 Assign Company Code to Company

2.3.1.5 Define Business area

2.3.1.6 Define functional area

2.3.1.7 Define credit control area

2.3.1.8 Assign company code to credit control area

2.3.1.9 Define Chart of Accounts

2.3.1.10 Assign Company Code to Chart of Accounts

2.3.1.11 Copy G/L Accounts

2.3.1.12 FINANCIAL ACCOUNTING GLOBAL SETTINGS

Active Cost of Sales Accounting

Set Up Ledger for Cost of Sales Accounting

Click on Assign company code/ Company.

Enable business area Balance Sheet

Assign Company code to a Fiscal Year Variant

Open and Close Posting Periods

Assign Variants to Company Code

Document Number Ranges

Maintain Field Status Variants

Direct Postings for FI: REV, B/S inc WBS

Asset accts (w/o accumulated depreciatn)

Assign Company Code to Field Status Variants

Define Screen Variants for Document Entry

Define Tolerance Groups for Employees

Document default values

Default Value Date

Define Run dates

Click on Go back icon.

Check its Access Sequence whether it is MWST

Click on Go back icon.

Assign Country to Calculation Procedure

Define Tax Codes for Sales and Purchases

Choose V for tax type which is input tax.

Assign G/L account 154000 (Input tax) to transaction VST

Define Tax Accounts