SAP IMPLEMENTATION GUIDE (IMG)

The Implementation Guide (IMG) is the tool which adjusts the R/3 System to the requirements of a company. It can be used to structure and organize the implementation of the R/3 System in a company. The Implementation Management Guide (IMG) menu is used for customization settings for all modules in SAP R/3. The implementation guide is a hierarchical structure of application areas in the component hierarchy. It contains all the work steps required for the implementation with documentation. Transaction code SAP SPRO (SAP project Reference Object) is used to configure the system as per the client requirements. There are three implementation guide variants: (a.) SAP Reference IMG (b.) Project IMGs (c.) Project view IMGs The SAP Reference IMG can be used to: (a.) Configure R/3 functions in your company in a quick, safe and cost-effective manner (b.) Adapt standard functions to meet your company requirements (c.) Manage, edit and analyze implementation or upgrade projects (d.) Document and monitor implementation phases with a project management tool (e.) Transfer configuration data automatically from the quality assurance system to the production system to ensure consistency In the standard system, SAP delivers the SAP Reference IMG with each R/3 System. The SAP Reference IMG contains the full functionality of all possible Customizing settings across all countries and application components. It is structured hierarchically according to the R/3 component hierarchy. All Customizing activities are assigned to one or more components. SAP Menu > Tools > Customizing > IMG > SPRO Execute Project

SPECIAL G/L TRANSACTIONS

1. Reconciliation accounts should be specified in the master record so that all postings made to a subsidiary ledger are also posted to the general ledger. 2. When an item is posted to a subsidiary ledger, the SAP system automatically posts the same data to the general ledger at the same time. Each subsidiary ledger has one or more reconciliation accounts in the general ledger. These reconciliation accounts ensure that the balance of G/L accounts is always zero. 3. The aim is to have the values available in the form of totals as well in the general ledger for instant creation of financial/income statement. To determine the payables/receivables, the balances of the reconciliation accounts can be directly displayed instead of having to search for the values in the subledger. 4. The reconciliation account to be posted is entered in each customer/master record. The Reconciliation account field can be found in the company code segment of the customer/vendor master record.

5. The transaction figures are updated on the reconciliation account in question. 6. Special G/L transactions are transactions in the AR/AP which are displayed separately in the G/L & the sub-ledgers. This may be necessary for internal reasons or for certain report purposes. 7. Down Payments may not figure in the balance sheet together with receivables & payables for goods & services. Transactions in the subledger are linked to the general ledger by the reconciliation accounts defined in the subledger master record. 8. If subledger account assignments are made using a special G/L indicator, the postings are performed on alternative reconciliation accounts (special G/L accounts) to allow these transactions to be displayed separately. Special G/L transactions can be divided into 3 classes: (a.) down payments (b.) bills of exchange (c.) other transactions

10. With respect to the transactions in connection with down payments, the SAP system provides special preconfigured programs & entry screens for administration of requested, received & used down payments. They can be used for accounts receivable or accounts payable & can be called up from the respective standard menus. The processing of down payments is integrated in the dunning & payment programs.
Down Payment Request

For Down Payments

Down Payment

Bill of Exchange Payment Request Bill of Exchange Cheque/Bill of Exchange

For Bills of Exchange

Individual value adjustments Guarantee of Payment

Other Transactions
Interest User-defined

11. Transactions in connection with bills of exchange deal with the country specific particularities. The SAP system contains special preconfigured programs & entry screens that utilize the functions of special G/L transactions to meet these requirements. Options for processing bills of exchange are available in the standard menus for accounts receivable & accounts payable. 12. The functions of the special G/L transactions are used for many different kinds of other business transactions. These transactions are controlled using the Other option in the document entry menu in AR/AP. The special general ledger indicator makes it possible to pass on documents for individual items to reconciliation account. The indicator regulates the type of processing that is triggered for a bus. trans. 13. There are three types of special ledger transactions which vary according to their relationship to the main ledger. These types are three ways (special general ledger types) of transferring special general ledger entries to the system. The configuration of the special G/L indicator determines whether the posting is a free G/L account posting, a noted item or a posting with an offsetting entry. 14. Automatic offsetting entries (statistical) are always made on the same offsetting account. To simplify the posting procedure, the number of the account for the offsetting entry are defined in Customizing. The system then makes the offsetting entries automatically. When open items in the respective account are cleared, the system clears the respective items in the offsetting account automatically. These transactions are called statistical postings, since they are generally only shown in the notes to the financial statements (or not at all). e.g. guarantees of payment made are displayed in the notes but not guarantees received.

AUTOMATIC OFFSETTING ENTRY (Statistical)

Posting on a permanent offsetting account

Usually part of the notes to financial statements

15. Noted items are special G/L transactions with informational character which remind the user about due payments or payments to be made & are not displayed in the general ledger or added to it. Only one line item is updated if a noted item is created. No offsetting entry is made. As a result, no zero balance check is made. The payment program & the dunning program can access the noted items for further processing. Noted items are managed as open items in the accounts payable/receivable & the special G/L account. Hence, line item display is always activated for these accounts.

NOTED ITEM

No update in the G/L

Single line account assignment (no zero balance check)

Intended to remind the dept. about due payments to be made

Examples of noted items can be down payment requests, bill of exchange payment requests etc. 16. A down payment request is a reminder, a statistical noted item that is supposed to remind the user to make a down payment. No transaction figures are updated. Like all special G/L transactions that involve down payments, down payment requests can be paid & dunned automatically. All information required by the payment or dunning program is available. The objective of customer down payment requests is to allow down payments to be processed automatically by the payment program (prerequisite: collection authorization from the customer). The down payment request entered in the system is supposed to allow one customer per system. Vendor down payment requests are required to regulate down payments using the payment program. No transaction figures are updated when entering noted items. This means the items can be found on the line item but do not affect the displayed balance of the customer. The special G/L account to which posting is done, always displays a balance of zero. 17. Special G/L transactions defined as free offsetting entries create proper postings in the G/L. The G/L account for the offsetting entry must be entered by the user.

FREE OFFSETTING ENTRY

Usually part of the financial statements

Posting with freely enterable/selectable offsetting account

For example, a customer responds to a down payment request with payment of USD 10000. The SAP system registers the incoming payment in both, the subledger account for the customer & in the alternative reconciliation account (received down payments) of the G/L. The bank account which then appears in the balance sheet (varies according to bank account number) can be selected. A down payment made by the customer prior to the performance of a service is payable & therefore must not change the receivable reconciliation account. It can be concluded that a separate account i.e. the down payment received account is opened instead of using the reconciliation account. (a.) Bank A/cDr. To Down Payment Received A/c
F29

(b.) Down Payment Received A/c.Dr. To Customer A/c

An Alternative reconciliation account is also a reconciliation account which connect vendor/customer accounts with general ledger. The main difference is alternative reconciliation is not assigned to any vendor/customer master records where as it will be assigned along with vendor/customer reconciliation account to differentiate special general ledger transactions like advances, security deposits etc. 18. The down payment procedure in the customer area is as follows: (a.) Down Payment Request (These are noted items which do not change any account balances. Dunning notices can be issued to make payments automatically based on these requests) (b.) Down Payment Received (These are displayed as payables & must not change the balance of Receivables reconciliation account. Received down payments are administered in the Down Payments Received alternative reconciliation account; in the Payables area of Financial Stmt. (c.) Customer Invoice (The customer receives an invoice whenever foods are supplied/services are performed) (d.) Posting a down payment with clearing with invoice (The down payment is no longer considered a down payment from this point since it is cleared & should be displayed as payment in the normal reconciliation account) The process can be demonstrated with the accounting entries at each step: Bank A/c Customer A/c
(DWNP)

Customer A/c Bank A/c

(DWNP)

Customer A/c
(balance pay)

Bank A/c
(balance pay)

In the General Ledger, Reconciliation A/c (Bank or Customer) Customer A/c Bank A/c

Disputed or doubtful receivables are entered as individual value adjustments when preparing the balance statements for year end closing. The special G/L procedure is suitable here since the transaction is entered in the customer account as well as posted to the special G/L account Individual Value Adjustments for Receivables. 19. Guarantees are displayed in the notes to the financial statements. Guarantees of payment are stored in SAP as transactions with automatic offsetting entries. 20. Bills of Exchange are a type of short term financing. If an invoice is paid with a bill of exchange, the payment period is extended for the customers. A bill of exchange can be passed to the third party for refinancing it. It can be discounted at a bank prior to the due date which means the bank charges interest. Bills of exchange are treated as special G/L transactions in SAP. Customer A/c Reconciliation A/c

To A/R A/c

By Bank A/c

To A/R A/c

By Bank A/c

Bills of Exchange Receivable A/c To Bank A/c By BOE Clearing A/c

Bills of Exchange Collection Clearing A/c To BOE Rec.A/c By Collection of BOE A/c

Bank A/c To Collection of BOE A/c

21. Special G/L transactions are posted from the application side using special posting keys & special G/L indicators. The posting keys require a special configuration for this. 22. The special G/L transactions in the standard system are assigned the posting keys 09, 19, 29 & 39. 23. The special G/L indicator indicates that the posting key is used to enter special G/L transactions. It defines the particular configuration of a special G/L transaction & the account type. 24. The special G/L indicator should always be included in the entry. Special G/L transactions are posted to an account defined in Customizing & not to the reconciliation account defined in the master record. These accounts must be created in financial accounting as G/L Accounts & configured according to the requirements. 25. The special G/L accounts have been defined as reconciliation accounts for D or K types. In contrast to normal reconciliation accounts (customers/vendors), the line item display is generally active for special G/L accounts. This means a list of the line items can be displayed. 26. Special G/L transactions are part of the scope of delivery of the standard system. It is possible to make individual adjustments if changes are to be made to the following areas: (a.) different account numbers for reconciliation accounts or special G/L accounts (b.) other posting keys or G/L indicators for individual transactions (c.) other settings for automatic postings, including amounts to be posted to, the posting keys & rules for account assignments with automatic postings 27. The characteristics of each special G/L indicator are defined in Properties. Properties Noted Items Description Special G/L transactions do not update any account balances Special G/L transactions can be included in the credit limit check. Noted items are generally not taken into account Warning messages can be customized to notify the user of the existence of a special G/L transaction when posting to customer/vendor account This entry is only relevant for noted items. This items is usually used in the standard system for down payment requests Determines whether the transaction is a down payment, a bill of exchange or any type of transaction Only these posting keys can be used with the respective special G/L indicators

Relevance for credit limit check

Warning against commitments

Target special G/L indicator Special G/L transaction class Posting Key

28. Statistical postings are always made on the same offsetting account. The account is stored on the basis of a combination of the account type (customer/vendor account).

29. Pre-configured special G/L indicators are used for noted items, special G/L accounts, posting keys & down payment, bills of exchange etc.