Sap FI Notes

Finance FI
Basic Settings & GL

Creation of Company
SPRO > Enterprise Structure > Definition > Financial Accounting > Maintain Company
Company: Smallest organizational unit for which individual financial statements can be drawn up
according to the relevant commercial law. A company can consist of one or more company codes. All
company codes within a company must use the same transaction chart of accounts and the same fiscal year
breakdown. The company code currencies, on the other hand, can be different. A company code has one
local currency in which its transaction figures are recorded.
Creation of Company Code
SPRO > Enterprise Structure > Definition > Financial Accounting > Define, Copy, Delete, Check Company
Code
Company Code: The smallest organizational unit for which a complete self-contained set of accounts can
be drawn up for the purposes of external reporting. The process of external reporting involves recording all
relevant transactions and generating all supporting documents required for financial statements (balance
sheets, profit and loss statements and so on.)
Assignment of Company Code to Company
SPRO > Enterprise Structure > Assignment > Financial Accounting > Assign Company Code to Company
Creation of Business Area
SPRO > Enterprise Structure > Definition > Financial Accounting > Define Business Area
Business Area: Organizational unit of financial accounting that represents a separate area of operations or
responsibilities within an organization and to which value changes recorded in Financial Accounting can be
allocated. Business areas are used in external segment reporting (over and above company codes) based on
the significant areas of operation (for example, product lines) of a business enterprise. A segment is an
isolated area of activity.
All essential balance sheet items, such as fixed assets, receivables, payables, and inventories, and all items
of the profit and loss statement can be assigned directly to a business area. The balance sheet items for
banks, capital, and taxes, however, cannot be directly assigned to business areas. They need to be assigned
manually. This means that business area financial statements cannot be drawn up for commercial and tax
law. Business area balance sheets and income statements are used only for internal reporting purposes.
The system determines the appropriate business area from information such as the material, plant, or cost
center we enter in a business transaction like a goods movement. Assignments we make (between cost
centers and business areas for example) or the combination of information we specify (a plant and a
particular division for example) are the basis on which the system determines the appropriate business area.
Maintain Fiscal Year Variant (OB29)
SPRO > Financial Accounting > FAGS > Fiscal Year > Maintain Fiscal Year Variant (Maintain Shortened
Fiscal Year)
Variant Principle:
The variant principle is a three step method used in R/3 to assign special properties to one or more R/3
objects. The three steps are: 1. Define the variant, 2. Populate the variant with values, 3. Assign the variant
to R/3 objects. The principle is used for Field status, Posting periods, fiscal years etc.
Fiscal year variant:
To separate business transactions into different periods, a fiscal year with posting periods has to be
defined. The fiscal year is defined as a variant which is assigned to the company code. The fiscal year
variant specifies the number of posting periods and special periods in a fiscal year and how the system is to
determine the assigned posting periods.
Types of Fiscal Years:
1. Year Dependent:
Periods can vary from year to year. A fiscal year variant has to be defined as year dependent if the start
and the end date of the posting periods of some fiscal years are different from the dates of other fiscal
years, or if some fiscal years shall use a different number of posting periods.
Shortened Fiscal Year: A shortened fiscal year arises through a shift in the end of the fiscal year. The
shortened fiscal year covers the period between the end of the last fiscal year in the old cycle and the
beginning of the next fiscal year in the new cycle.
Instances: Company changing the beginning of the fiscal year or if the company was sold.
2. Year independent (Fiscal Year same as Calendar Year & Fiscal Year not same as Calendar Year):
If each fiscal year of a fiscal year variant uses the same number of periods, and the posting periods always
start and end at the same day of the year, the variant is called year independent.
If the fiscal year is defined as the calendar year, the posting periods are equal to the months of the year.
Therefore a calendar year variant must have 12 posting periods.
If the fiscal year differs from the calendar year, we must specify the number of posting periods we want to
use & how the fiscal year is to be determined from the posting date. To do this, we specify the displacement
for each period compared to the year of the posting date by using the annual displacement indicators -1, +1.
Using these indicators, the system determines the fiscal year.
Assign Company Code to Fiscal Year Variant (OB37)
SPRO > Financial Accounting > FAGS > Fiscal Year > Assign Company Code to a Fiscal Year Variant
Creation of Chart of Accounts (OB13)
SPRO > Financial Accounting > General Ledger Accounting > GL Accounts > Master Records >
Preparations > Edit Chart of Accounts List
The chart of accounts is a variant which contains the structure and the basic information about general
ledger accounts.
Information to be given in Chart of Accounts: Maintenance Language, Length of GL Account Number,
Manual or automatic creation of cost elements, Group chart of accounts etc.
Operative Chart of Accounts:
The operating chart of accounts contains the G/L accounts that you use for posting in your company code
during daily activities. Financial Accounting and Controlling both use this chart of accounts.
Country Specific Chart of Accounts:
These are structured in accordance with legal requirements of the country in question
Group Chart of Accounts:
This is structured in accordance with requirements pertaining to Consolidation.
Assign Company Code to Chart of Accounts (OB62)
Preparations > Assign Company Code to Chart of Accounts
Define Account Groups (OBD4)
Preparations > Define Account Groups
The account group determines:
The data that is relevant for the master record
A number range from which numbers are selected for the master records.
An account group must be assigned to each master record.
Define Retained Earnings Account (OB53)
Preparations > Define Retained Earnings Account
The difference in Profit and Loss account is transferred to Reserves & Surplus
Define Posting Period Variant (OBBO)
SPRO > Financial Accounting > FAGS > Document > Posting Periods > Define Variants for Open Posting
Periods
A variant which contains posting periods. A Posting Period is a period within a fiscal year for which
transaction figures are updated. Every transaction that is posted is assigned to a particular posting period.
The transaction figures are then updated for this period. During the time of the closing procedure, 2 period
ranges have to be open at the same time.
Assign Variants to Company Code (OBBP)
SPRO > Financial Accounting > FAGS > Document > Posting Periods > Assign Variants to Company Code
Open & Close Posting Periods (OB52)
SPRO > Financial Accounting > FAGS > Document > Posting Periods > Open & Close Posting Periods
To define the periods those are open for postings.
Define Document Types & Number Ranges (OBA7)
SPRO > Financial Accounting > FAGS > Document > Document Header > Define Document Types
Document Type: Key that distinguishes the business transactions to be posted. The document type
determines where the document is stored, as well as the account types to be posted. The Document Type
controls the header which is valid for an entire document.
Number Range: Defines the allowable range in which a document number must be positioned and cannot
overlap. (Internal Numbering & External Numbering)
Define Tolerance Groups for GL Accounts (OBAO)
SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Open Item
Clearing > Clearing Differences > Define Tolerance Groups for GL Accounts
Tolerances: Rules that define acceptable differences during Posting of transactions.
Allowed Payment differences will be specified in Tolerance Group for GL Accounts.
Define Tolerance Groups for Employees (OBA4)
SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Open Item
Clearing > Clearing Differences > Define Tolerance Groups for Employees
Tolerance Group for Employees is used to control the Upper Limits for Transactions & Allowed Payment
Differences.
Define Field Status Variant (OBC4)
SPRO > Financial Accounting > FAGS > Document > Line Item > Controls > Maintain Field Status
Variants
The Field Status Variant contains various Field Status Groups. In a Field Status Group each field is defined
whether it is Required, Optional or Suppressed.
Assign Company Code to Field Status Variant (OBC5)

SPRO > Financial Accounting > FAGS > Document > Line Item > Controls > Assign Company Code to
Field Status Variant
Enter Global Parameters (OBY6)
SPRO > Financial Accounting > FAGS > Company Code > Enter Global Parameters
Creation of GL Master Centrally (FS00)
(Centrally = Chart of Accounts segment + Company Code segment)
Accounting > Financial Accounting > General Ledger > Master Records > Individual Processing >
Centrally
Master Data:
The Data which remains unchanged for long periods of time and which is often referred to by other data.
This data is called Master Data.
Chart of Accounts segment:
The COA contains basic information about the accounts. Information per account is bundled into what is
called the COA segment.
Contents: Account Group, P&L account type or Bal Sheet account type, Description of the account Short
text as well as long text and Consolidation in COA like Trading partner and Group Account Number.
Company Code Segment:
Information in this segment is specific for this company code. This information controls entry of
accounting documents and management of accounting data.
Contents: Control Data, Bank/Interest, Information Tabs, under these we specify currency, tax,
reconciliation account, sort key, field status group, house bank, interest calculation information etc.,
Reconciliation accounts (Sub ledger open item function):
Are General Ledger accounts assigned to the business partner master records to record all transactions in
the sub ledger. Any postings to the sub ledger accounts automatically update the balances of the assigned
reconciliation accounts.
Methods for creating GL Accounts:
Manual: one step and two step
Copying: Copy an individual GL account with reference to another GL account, Copy the entire company
code segment, copy the entire chart of accounts segment.
Data transfer: Upload a new chart of accounts from an external system e.g. flat file.
Posting of GL Transaction (F-02)
Accounting > Financial Accounting > General Ledger > Document Entry > Others > General Posting
Display Document (FB03)
Accounting > Financial Accounting > General Ledger > Document > Display
The R/3 system uses the document principle: Postings are always stored in document form. The document
remains as a complete unit in the system until it is archived.
A document is identified by the combination of
Document number
Company code
Fiscal year
The R/3 FI document consists of
A document header (information which applies to the entire document & the important control key is
document type for the header)
2 to 999 line items (information which is specific to that line item & the important control key is posting
key for the line item).
Display GL Account (FS10N)
Accounting > Financial Accounting > General Ledger > Account > Display Balances
To make a default Line Layout (FB00)
Accounting > Financial Accounting > General Ledger > Environment > User Parameters > Editing Options
When a document is displayed, the first screen we see is an overview screen containing the most important
information from the document header and the line items. We have a display line for each line item.
We can decide what data is displayed in this line by specifying the line layout. We can define several
variants for line layout. When displaying a document, we can switch between the variants. We can define
our own variant by selecting from Current Display Variant.
Display Changes to GL Master Records (FS04)
Accounting > Financial Accounting > General Ledger > Master Records > Display Changes > Centrally
Blocking & Unblocking of GL Account (FS00)
FS00 > GL Account > Block/Unblock
Blocking:
Blocked for Creation
Blocked for Posting
Blocked for Planning
Blocked for Posting (in Company Code)
Document Parking
(Release procedure)
Parking a GL Document (F-65)
Accounting > Financial Accounting > General Ledger > Document Entry > Park Document
Display Parked Documents pending for approval and release (FBV3)
Accounting > Financial Accounting > General Ledger > Document > Parked Documents > Display
Post/Delete Parked Documents pending for approval and release (FBV0)
Accounting > Financial Accounting > General Ledger > Document > Parked Documents > Post/Delete
(To change the amount Double Click the amount
To change the date Select Document Header Button
To change the GL Account Delete Line Item and re-enter the new GL account Line Item)
Hold Documents
Holding a GL Document (F-02)
(F-02) > Document > Hold
(System will prompt for a temporary document number to be given by the user)
You can enter incomplete documents. Some information, such as the bank charges or cost center, may be
missing. You can enter incomplete documents by using the Hold function. If you do this, the system does
not update any account balances.
Display Hold Documents and Delete/Complete (F-02)
(F-02) > Document > Get Held Document
Sample Documents
Sample Document is a special type of reference document. Data from this document is used to create
default entries on the accounting document entry screen. A sample document does not update transaction
figures but merely serves as a data source for an accounting document.
Will be used for month end provisions
Account Heads are same, Amounts vary
Steps:
Creation of Number Range Group X2 and Numbers for Sample Document Template
Creation of Sample Document Template
Posting of Entries by using Sample Document as reference
Creation of Number Range Group and Numbers for Sample Document Template (FBN1)
SPRO > Financial Accounting > FAGS > Document > Document Number Ranges > Overview
(Group X2 is mandatory for Sample Documents)
Creation of Sample Document Template (F-01)
Accounting > Financial Accounting > General Ledger > Document Entry > Reference Documents >
Sample Document
Display Sample Documents (FBM3)
Accounting > Financial Accounting > General Ledger > Document > Reference Documents > Sample
Documents > Display
Posting Entries by using Sample Document as reference (F-02)
(F-02) > Select Post with Reference Button > Give the Sample Document Number > Select Display Line
Items
Recurring Documents
A periodical recurring posting made by the recurring entry program on the basis of recurring entry original
document. The procedure is comparable with a standing order by which, banks are authorized to debit rent
payments, payment contributions or loan repayments.
Will be used for Recurring Entries
Amount and Date are fixed for every month
Steps:
Creation of Number Range Group X1 and Numbers for Recurring Document Template
Creation of Recurring Document Template
Posting of Documents by using Recurring Document Template by way of Batch Input
Creation of Number Range Group and Numbers for Recurring Document Template (FBN1)
SPRO > Financial Accounting > FAGS > Document > Document Number Ranges > Overview
(Group X1 is mandatory for Recurring Documents)
Creation of Recurring Document Template (FBD1)
Accounting > Financial Accounting > General Ledger > Document Entry > Reference Documents >
Recurring Documents
Display Recurring Document Templates (F.15)
Accounting > Financial Accounting > General Ledger > Periodic Processing > Recurring Entries > Lists
Posting of GL Document by using Recurring Document Template by way of Batch Input (F.14)
Accounting > Financial Accounting > General Ledger > Periodic Processing > Recurring Entries > Execute
To Post a Session (SM35)

System > Services > Batch Input > Sessions
Accrual/Deferral Documents
To ensure that expenses and incomes are posted to the correct period, we enter accrual/deferral documents.
Accruals: An accrual is any expenditure before the closing key date which represents an expense for any
period after this date.
Deferral: Deferred income is any receipt before the closing key date which represent revenue for any period
after this date.
Steps:
Creation of Reversal Reason which will allow reversing on any day
Posting of Accrual/Deferral Document
Reversal of Accrual/Deferral Document
Creation of Reversal Reason
SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Document
Reversal > Define Reasons for Reversal
(Select Negative Posting & Select Alternative Posting Date)
Posting of Accrual/Deferral Document (FBS1)
Accounting > Financial Accounting > General Ledger > Periodic Processing > Closing > Valuate > Enter
Accrual/Deferral Document
(We mention the reversal reason in the document)
Reversal of Accrual/Deferral Document (F.81)
Accounting > Financial Accounting > General Ledger > Periodic Processing > Closing > Valuate > Reverse
Accrual/Deferral Document
Open Item Management
GL accounts should be administered with open item management when we need to check whether there is
an offsetting posting for a given business transaction. Open and cleared items can be displayed separately,
and therefore it is easy to see which business transactions still need to be cleared.
Examples: GR/IR Clearing A/c., Cash Discount Clearing A/c., Bank Clearing A/cs. etc.
Note: Reconciliation accounts are managed implicitly using Sub Ledger Open Item Function.
Clearings:
Full Payment Clearing
Partial Payment Clearing
Residual Clearing
Account Display for Open Item Managed Account (FBL3N)
Accounting > Financial Accounting > General Ledger > Account > Display/Change Line Items
Outgoing Payment with Clearing (F-07)
Accounting > Financial Accounting > General Ledger > Document Entry > Outgoing Payment
Reversals
Reversal of a posting by entering an identical amount to the opposite side of the account, thereby offsetting
the original amount.
Individual Reversal
Reversal of Reversal
Mass Reversal
Cleared Item Reversal
Accrual/Deferral Reversal
Creation of Reversal Reason for Individual Reversal
SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Document
Reversal > Define Reasons for Reversal
(Reversal Reason is 03 Actual Reversal in Current Period & Select Alternative Posting Date)
Document Reversal Individual Reversal (FB08)
Accounting > Financial Accounting > General Ledger > Document > Reverse > Individual Reversal
(Give Reversal Reason 03, Reverse Document Type AB)
Reversal of Reversal (F-02)
(F-02) > Post with Reference > Select Generate Reverse Posting Check Box
Mass Reversal (F.80)
Accounting > Financial Accounting > General Ledger > Document > Reverse > Mass Reversal
Cleared Item Reversal Reset & Reverse (FBRA)
Accounting > Financial Accounting > General Ledger > Document > Reset Cleared Items
(Select Resetting & Reverse)
Foreign Currency Settings
Currencies:
In Financial Accounting, we have to specify for each of the company codes, in which currency ledgers
should be managed. This currency is the national currency of the company code, that is, the local currency
(or company code currency). From a company code view, all other currencies are then foreign currencies.
The ledgers can be managed in two parallel currencies in addition to the local currency, for example, group
currency or hard currency. Group currency is used in the consolidated financial statements. Hard Currency
or Country-specific second currency used in countries with high rates of inflation.
Global company Currency: Currency used for an internal trading partner.
Global company currency is defined when defining the company that is assigned to the company code.
Check Exchange Rate Types (OB07)
SPRO > General Settings > Currencies > Check Exchange Rate Types
Exchange Rate Type: Key used to define exchange rates in the system.
For each currency pair we can define different exchange rates.
The different exchange rates are used for the purposes of Valuation, Conversion, Translation, Planning etc.
Standard Translation at Bank Buying rate G Type
Standard Translation at Bank selling rate B Type
Average rate M Type
Historical exchange rate 1003
Define Translation Ratios for Currency Transactions (OBBS)
SPRO > General Settings > Currencies > Define Translation Ratios for Currency Transactions
(Define Ratios for G Type, B Type and M Type)
Translation Ratio: The (consistent) relationship between the monetary units of two foreign currencies.
Enter Exchange Rates (OB08)

SPRO > General Settings > Currencies > Enter Exchange Rates
(Enter Exchange Rates for G Type, B Type and M Type)
Set Default Exchange Rate Type for Document Type SA (OBA7)
SPRO > Financial Accounting > FAGS > Document > Document Header > Overview
(In Document Type specify the Default Exchange Rate Type)
Foreign Exchange Revaluation
G Type Bank Buying
Open Item
Non Open Item
B Type Bank Selling
Open Item
Non Open Item
We can create different valuation methods for valuing foreign currency. For each valuation method, we
have to define:
Parameters for the valuation procedure
Parameters for exchange rate determination
Define Valuation Methods (OB59)
SPRO > Financial Accounting > GL Accounts > Business Transactions > Closing > Valuating > Foreign
Currency Valuation > Define Valuation Methods
(Define 4 methods namely B Type Open Item, B Type Non Open Item, G Type Open Item and G Type Non
Open Item & Select Exchange Rate Type from Invoice Reference for Open Item Type & Select
Determine Rate Type from Account Balance for Non Open Item Type)
Valuation Method: A unique key determining foreign currency valuation method.
Prepare Automatic Postings for Foreign Currency Valuation (OBA1)
SPRO > Financial Accounting > GL Accounts > Business Transactions > Closing > Valuating > Foreign
Currency Valuation > Prepare Automatic Postings for Foreign Currency Valuation
(Specify the GL Accounts of FC Loan, Forex Loss and Forex Gain in Exchange Rate difference in Open
Items KDF as well as in Exchange Rate difference in FC Balances KDB and Specify Exchange Rate
Difference Key to be attached to the FC Loan Account in the next step)
Attach the Exchange Rate Difference Key in FC Loan Account (FS00)
Forex Run on Closing Date (F.05)
Accounting > Financial Accounting > GL Accounts > Periodic Processing > Closing > Valuate > Valuation
of Open Items in Foreign Currency
(Specify Valuation Method & Select Balance Sheet Preparation Valuation for year end valuation postings.,
the entries will be posted automatically.)
Interest Calculations
S Type Balance Interest Calculation (for GL Accounts)
o Is applied to the entire balance of a GL or Customer Account, applying a particular interest rate for a
specified period of time
P Type Item Interest Calculation (for Customers & Vendors)
o Interest on arrears is applied to individual items in accounts receivable or accounts payable. A certain
interest rate is applied to the items that are still open or unpaid at a specified date.
Interest calculation configuration:
Interest calculation Indicator
o Interest calculation types set basic parameters used in calculation. To calculate interest for an account
(GL, Customer, Vendor), the master data for that account must include the interest calculation indicator that
applies. Each interest ID must be assigned an interest calculation type, indicating whether it is used for
balance interest calculation or item interest calculation.
General terms
o General terms specify further parameters about how each interest calculation indicator works.
o Here we specify interest calculation ID, interest calculation frequency, settlement day, calendar type (G
type for rupee loans & F type for FC loans).
Define reference interest rates
o Define reference interest rate ID, effect from date and currency
Time dependent terms
o Time-based terms set validity dates and relationships to interest rates. Here we specify interest
calculation ID, currency, valid from, sequence number(1&2), term(credit interest balance interest
calculation for 1 & debit interest balance interest calculation for 2) and reference interest rate ID.
Interest rates
o Interest rates establish reference interest rates that interest calculations can be tied to. Here we specify
Reference interest rate ID, valid from and interest rate.
Account determination
o Account determination establishes which accounts the results of an interest calculation will be posted
to.
Define Interest Calculation Types (OB46)
SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Bank Account
Interest Calculation > Interest Calculation Global Settings > Define Interest Calculation Types
(Give Interest ID & specify Interest Calculation Type S & Dont select Account Number as interest
calculation indicator)
Prepare Account Balance Interest Calculation (OBAA)
Interest Calculation > Interest Calculation Global Settings > Prepare Account Balance Interest Calculation
(Here we give Interest calculation frequency (12months normally), settlement day (normally 1) and Select
Calendar Type G for Rupee Loans & Type F for FC Loans and output control Balance plus interest)
Define Interest Reference Rates (OBAC)
Interest Calculation > Interest Calculation > Define Interest Reference Rates
(Give Interest Reference Rate and also Effective from date)
Define Time Dependant Terms (OB81)
Interest Calculation > Interest Calculation > Define Time Dependant Terms
(Select Credit Interest Balance Interest Calculation for Sequence 1 & Debit Interest Balance Interest
Calculation for Sequence 2 and give date for Valid from)
Enter Interest Values (OB83)
Interest Calculation > Interest Calculation > Enter Interest Values
(Here we specify the rate of interest)
Attach the Interest ID in the GL Account (FS00)
Assignment of Accounts for Automatic Interest Postings (OBV2)
Interest Calculation > Interest Posting > Prepare GL Account Balance Interest Calculation
(Account Symbol Currency GL Account
0002
2000
0001
1000
INR
Interest Account Number (Expense)
+
+++++++++
INR
Interest Account Number (Income)
+
+++++++++)
Interest Calculation Run (F.52)

Accounting > Financial Accounting > General Ledger > Periodic Processing > Interest Calculation >
Balances
To give effect for Floating Rate of Interest (OB83)
Interest Calculation > Interest Calculation > Enter Interest Values
Accounts Payable
Reconciliation accounts are managed implicitly using Sub Ledger Open Item function.
Posting Keys
Vendor Debit: 25
Vendor Credit: 31
Document Types
KR Vendor Invoice
KZ Vendor Payment
KA Vendor Document (Transfers/Reversals)
AP (Vendor Accounts) is a Subsidiary Ledger of Sundry Creditors & Sundry Creditors is a Reconciliation
Account under Current Liabilities.
Steps:
Creation of Vendor Account Groups like FI Vendors (Services), MM Vendors (Materials) and One-time
Vendors with Reconciliation Account Field mandatory.
Creation of Number Range Groups and Numbers for Vendors.
Assignment of Number Range Group to Vendor Account Group
Define Tolerance Groups for Vendors.
Creation of Vendor Master.
Document Types and Number Ranges for KR, KZ and KA.
Define Vendor Account Groups (OBD3)
SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Vendor Accounts > Master
Records > Preparations for creating Vendor Master Records > Define Account Groups with Screen Layout
(Vendors)
Create FI Vendor Group & MM Vendor Group
Company Code Data > Account Management > Reconciliation Account Required Entry
The Vendor Account Group controls
The number ranges of the accounts, the status of the fields in the master record and whether the account is a
one time vendor
One-time Vendor:
Vendors who have a business transaction only once are called one-time vendors. You create collective
master record for one-time vendors. The complete details of the Vendor will be given at the time of Invoice
Posting. (While creating the group a One-time Vendor Group should be created.)
Create Number Ranges for Vendor Accounts (XKN1)

Records > Preparations for creating Vendor Master Records > Create Number Ranges for Vendor Accounts
Assign Number Ranges to Vendor Account Groups (OBAS)
Records > Preparations for creating Vendor Master Records > Assign Number Ranges for Vendor Accounts
Define Tolerance Groups for Vendors (OBA3)
SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions >
Outgoing Payments > Manual Outgoing Payments > Define Tolerances (Vendors)
Tolerances: Rules that define acceptable differences during posting
Tolerance Groups for Vendors:
The tolerances are used for differences in payment and residual items which can occur during payment
settlement. We can specify the tolerances under one or more tolerance groups. Allocate a Tolerance Group
to each Vendor via the master record. For each Tolerance Group we specify:
Tolerances upto which differences in payment are posted automatically to expense or revenue account
when clearing open items.
The handling of the terms of payment for residual items, if they are to be posted during clearing.
Employee Tolerances also can be specified. Employee Tolerance is used to control the Upper limits for
posting procedures (Posting Authorizations) and Permitted Payment Differences. While clearing, the lower
limit of the 2 will be taken.
Creation of Vendor Master (XK01)
Accounting > Financial Accounting > Accounts Payable > Master Records > Maintain Centrally > Create
(The account group is entered on the initial create screen. In FI, once the vendor account is created, its
account group cannot be changed.
Give Reconciliation Account Number, Sort Key 012 Vendor Name, Payment Terms, Tolerance Group &
Select Check Double Invoicing)
Line item display and open item management are always preset to on for every vendor account.
A complete Vendor Account consists of 3 segments 1. General Data at the client level 2. Company code
segment and 3. Purchasing Organization segment
General data consists Address, Control data, Payment transactions etc. The account number is assigned to
the Vendor at the client level. This ensures that the account number for a Vendor is the same for all
company codes and sales areas.
Company data consists of Accounting information, Payment transactions, Correspondence, Insurance,
Withholding tax etc.
Note: If MM creates their segment of the master record and then FI creates their segments of the master
record, there is the risk of creating incomplete or duplicate master records. To find and correct these
incomplete accounts, we can run report RFKKAG00 and make the necessary corrections.
Creation of duplicate accounts can be prevented by:
Using the matchcode before creating a new account
Switching on automatic duplication check
Important Fields
Search Item: Should be filled with a short version of the vendor name according to company rules/desires.
An additional search field also can be filled up.
Group Key: Vendors who belong to one corporate group can be bundled together by a user-defined group
key. This group key can be used for running reports, transaction processing or for matchcodes.
Accounting clerk: The accounting clerks name has to be stored under an ID and this ID can be entered in
the vendor master record of the account he or she is responsible for. The accounting clerks name is then
printed on correspondence and this ID is used to sort dunning and payment proposal lists.
Document Types & Number Ranges (OBA7)
(Define Document Number Ranges for Doc Types KR, KZ & KA)
Purchase Invoice Posting (F-43)
Accounting > Financial Accounting > Accounts Payable > Document Entry > Other > Invoice General
Vendor Account Display (FBL1N) with Open Item, Cleared Item and Special GL Item details
Accounting > Financial Accounting > Accounts Payable > Account > Display/Change Line Items
Vendor Account Display (FK10N)
Outgoing Payments
Define House Bank and Assign GL Account Number for the Account ID (FI12)
SPRO > Financial Accounting > Bank Accounting > Bank Accounts > Define House Banks
House Banks: Bank ID & Bank Account: Account ID
Creation of Check Lots (FCHI)
Accounting > Financial Accounting > Accounts Payable > Periodic Processing > Payments > (sub menu) >
Environment > Check Information > Number Ranges
(Select Non-Sequential for manual payments & Dont select for Automatic Payment Program)
Outgoing Payment with clearing (F-53)
Accounting > Financial Accounting > Accounts Payable > Document Entry > Outgoing Payment > Post
Manual Check Updating (FCH5)
Accounting > Financial Accounting > Accounts Payable > Environment > Check Information > Create >
Manual Checks
(Enter Payment Document Number, House Bank & Bank ID and Check Number)
Display Check Register (FCHN)
Accounting > Financial Accounting > Accounts Payable > Environment > Check Information > Display >
Check Register
Check Encashment Date (FCH6)
Accounting > Financial Accounting > Accounts Payable > Environment > Check Information > Change >
Additional Info/Cash
Define Void Reason Codes (FCHV)
Outgoing Payments > Automatic Outgoing Payments > Payment Media > Check Management > Define
Void Reason Codes
Unused Checks Cancellation (FCH3)

Accounting > Financial Accounting > Accounts Payable > Environment > Check Information > Void >
Unused Checks
(Give Void Reason Code and Check Numbers to be voided)
Issued Checks Cancellation (FCH8)
Accounting > Financial Accounting > Accounts Payable > Environment > Check Information > Void >
Cancel Payment
(Give Check Number, Void Reason Code, Document Reversal Reason and Select Cancel Payment Button)
Result: Resets the cleared item, Cancels the Check and Reverses the Payment
Down Payments to Vendors
Create Special GL Account Advance to Vendors (Reconciliation Account) under Current Assets
Create Link between S/Creditors and Advance to Vendors (Special GL Indicator: A)
Down Payment Posting
Purchase Invoice Posting
Transfer of Down Payment from Special GL to Normal item by clearing Special GL Account
Clearing of Normal Item
Link between S/Creditors and Advance to Vendors (OBYR)
Down Payment made > Define Alternative Reconciliation Account for Down Payments
(Double click on Down Payment on Current Assets, Give Reconciliation Account and Special GL
Account Number)
Setup Company Code for Payment Transaction (To avoid Short Dump Error while posting Down
Payments)
Outgoing Payments > Automatic Outgoing Payments > Payment method/Bank selection for Payment
Program > Setup all Company Codes for Payment Transactions
Down Payment Posting (F-48)
Accounting > Financial Accounting > Accounts Payable > Document Entry > Down Payment > Down
Payment
(Give Special GL Indicator A)
Purchase Invoice Posting (F-43)
Accounting > Financial Accounting > Accounts Payable > Document Entry > Other > Invoice General
Transfer of Down Payment from Special GL Account to Normal item by clearing Special GL Account (F54)
Accounting > Financial Accounting > Accounts Payable > Document Entry > Down Payment > Clearing
Clearing of Normal Item (F-44)
Accounting > Financial Accounting > Accounts Payable > Accounts > Clear
Extended Withholding Tax (TDS)
In Accounts Payable, the vendor is the person subject to tax, and the company code is obligated to deduct
withholding tax and pay this over to the tax authorities on their (the vendors) behalf.
At the time of Invoice Posting
Service Charges A/c.
Dr. 100000
To Contractors A/c.
98000
To TDS A/c.
2000
At the time of Advance Payment Posting

Contractors A/c.
Dr. 100000
To Bank A/c.
98000
To TDS A/c.
2000
Check Withholding Tax Countries
SPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Basic Settings >
Check Withholding Tax Countries
Define Withholding Tax Type for Invoice Posting
SPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Calculation >
Withholding Tax Type > Define Withholding Tax Type for Invoice Posting
(Give a name for Type & Description like 2% TDS on Contractors Invoice Posting
Base Amount Select Gross
Rounding Rules Select Withholding Tax Commercial Rounding
Select Post Withholding Tax amount
Accumulation Type Select No Accumulation
Control Data Select Withholding Tax Base Manual (This should not be selected while creating the Type
for Payment Posting)
Select No Certificate Numbering)
Define Withholding Tax Type for Payment Posting
Withholding Tax Type > Define Withholding Tax Type for Payment Posting
(Give a name for Type & Description like 2% TDS on Contractors Invoice Posting
Base Amount Select Gross
Rounding Rules Select Withholding Tax Commercial Rounding
Cash Discount Select Cash Discount Pre-withholding tax
Select Post Withholding Tax amount
Accumulation Type Select No Accumulation
Do Not Select Withholding Tax Base Manual (This should be selected while creating the Type for Invoice
Posting)
Select No Certificate Numbering)
Define Withholding Tax Codes
Withholding Tax Codes > Define Withholding Tax Codes
(Withholding Tax Code: Give a Code
Base Amount Percentage Subject to Tax: 100%
Calculation Withholding Tax Rate: Give the applicable Rate
Postings Posting Indicator: 1 (Standard Posting Bank/Vendor/Customer Line Item reduced))
Define Formulas for calculating Withholding Tax
Withholding Tax Codes > Define formulas for calculating Withholding Tax
(Give Withholding Tax Type & Code
Valid from: Give the date (Fiscal Year start date)
Select the Line created and double click Formulas for calculating Withholding Tax
To Base amount: Rs. 999999999
Withholding Tax: Give the applicable Rate)
Assign Withholding Tax Types to Company Codes
SPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Company Code
> Assign Withholding Tax Types to Company Codes
(Assign all the Types to Company Code)
Activate Extended Withholding Tax

SPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Company Code
> Activate Extended Withholding Tax
Define Accounts for Withholding Tax to be paid over (OBWW)
SPRO > Financial Accounting > FAGS > Withholding Tax > Extended Withholding Tax > Postings >
Accounts for Withholding Tax > Define Accounts for Withholding Tax to be paid over
(Assign TDS on Contractors, TDS on Rent, TDS on Interest etc. open item managed accounts created under
Current Liabilities to the respective Tax Type and Code)
Assigning Withholding Tax Codes in Vendor Master (XK02)
Accounting > Financial Accounting > Accounts Payable > Master Records > Maintain Centrally > Change
Vendor Statement of Account
Assign Programs for Correspondence (OB78)
SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Vendor Accounts > Line
Items > Correspondence > Carryout and Check Correspondence Settings > Assign Programs for
Correspondence
(Select SAP06 Account Statement, Copy As and Attach the Statement Type to Company Code & Save)
Request for Correspondence (FB12)
Accounting > Financial Accounting > Accounts Payable > Account > Correspondence > Request
(Select SAP06, Give Vendor A/c. No. & specify statement period., Select Continue)
Maintain Statement (F.64)
Accounting > Financial Accounting > Accounts Payable > Account > Correspondence > Maintain
Statement
(Correspondence: SAP06, Company Code: XYZ, Account Type: K, Execute and Double click anywhere on
the report & the statement is displayed)
Terms of Payment & Cash Discounts
Maintain Terms of Payment (OBB8)
Outgoing Invoices/Credit Memos > Maintain Terms of Payment
Terms of payment are conditions established between business partners to settle the payment of invoices.
The conditions define the invoice payment due date and the cash discount offered for early settlement of
the invoice.
Define Accounts for Cash Discounts taken (OBXU)
SPRO > Financial Accounting > Accounts Payable and Accounts Receivable > Business Transactions >
Outgoing Payments > Outgoing Payment Global Settings > Define Accounts for Cash Discounts taken
Define Accounts for Cash Discounts granted (OBXT)
Incoming Payments > Incoming Payment Global Settings > Define Accounts for Cash Discounts granted
Payment Differences
Define Reason Codes for Payment Differences (
Incoming Payments > Incoming Payment Global Settings > Define Reason Codes
Automatic Payment Program (FBZP)
Every company needs some way to pay their vendors. The automatic payment program is a tool that will
help users manage payables. Accounts payable invoices have to be paid on time to receive possible
discounts.
The settings are divided into the following categories:
All company codes
Inter-company payment relationships
The company code(s) that process payments
Cash discounts
Tolerance days for payments
The customer and vendor transactions to be processed
Paying company codes
Minimum amounts for incoming and outgoing payments
Forms for payment advice and EDI (Electronic Data Interchange)
Bill of Exchange parameters
Payment methods / country
Methods of payments such as Cheque, Bank Transfer etc.
Define the basic requirements and specifications for each payment method
Create a Cheque, bank transfer, bill of exchange, etc.
Master record requirements, i.e. address required
Document types for postings
Print programs
Permitted currencies
Payment methods / company code
Define for each payment method and company code
Minimum and maximum payment amounts
Whether payments abroad and foreign currencies are allowed
Grouping options
Bank optimization
Forms for payment media
Bank Determination
These components need to be taken into consideration when selecting the paying house bank
Ranking order (per pmt method, define, 1. which house bank should be considered for payment first,
second, third, etc., 2. Currency, 3. Bill of exchange)
Accounts & Amounts (per house bank and payment method combination, define, 1. The offset account to
the sub-ledger posting, 2. Clearing accounts for bills of exchange 3. The available amount of funds in each
bank)
Charges (Assess additional bank charges for incoming and outgoing payments, Used with bills of
exchange, Additional automatic posting configuration)
Value date (per house bank and payment method combination, value date is 1. Used with cash
management and forecast 2. The number of days until value date plus the posting date)
House banks
Payment methods in Country (OBVCU)
Country: IN
Payment Method: D (Any)
Description: Check Payment
Select Radio Button Outgoing Payments
Select Radio Button Check
Document Type for Payment: KZ
Clearing Document Type: KZ
Payment Medium Program: RFFOUS_C
Name of the Print Dataset: LISTS
Key in Code Line: 01
Payment methods in Company Code (OBVU)

Minimum Amount: 1
Maximum Amount: 999999999
Check on Single Payment for marked item
Check on Payment per due day
Bank Selection: Select Radio Button No Optimization
Click Form Data
Form for the payment transfer medium: F110_PRENUM_CHCK
Click Payment Advice Control
Select Radio Button None
1 Rows Line Items: E1
Select Radio Button Always Payment Advice
All Company Codes (OBVU)
Paying Company Code: XYZ
Check on Separate Payment per Business Area
Check on Maximum Cash Discount
Paying Company Code (OBVU)
Minimum Amount for Incoming Payment: 1
Minimum Amount for Outgoing Payment: 1
Click Forms
Form for Payment Advice: F110_D_AVIS
Click Sender Details
Text ID: ST
Under Text Elements
Letter Header: F_001_Header
Footer Text: F_001_Footer
Sender: F_0001_Sender
House Banks (FI12)
Define House Banks if not defined already
Bank Determination (OBVCU)
Select XYZ Company
Double click Ranking Order
Payment Method Currency Rank Order House Bank
D
INR
1
UTI
D
INR
2
SBI
Double click Bank Accounts
House Bk
Pmt Method Currency A/c ID
Bk Sub A/c.
UTI
D
INR
UTI1
GL A/c. No.
SBI
D
INR
SBI1
GL A/c. No.
Double click Available Amounts
House Bank
A/c. ID
Currency Available for Outgoing Pmt
UTI
UTI1
INR
999999999
SBI
SBI1
INR
999999999
Double click Value Date
Payment Method House Bank A/c. ID
Amount Currency
D
UTI
UTI1
0
INR
D
SBI
SBI1
0
INR
Creation of Check Lots (FCHI)
Accounting > Financial Accounting > Accounts Payable > Periodic Processing > Payments
Environment > Check Information > Number Ranges
Note: Dont Check on Non-Sequential (Should be sequential for the payment program)
Payment Run (F110)

Accounting > Financial Accounting > Accounts Payable > Periodic Processing > Payments
(4 steps to the payment process:
Parameters: In this step, the following questions are asked and answered
Who is going to be paid?
What payment methods will be used?
When will they be paid?
Which company codes will be considered?
How are they going to be paid?
Proposal: Once the parameters have been specified, the proposal run is scheduled and it produces a list of
business partners and open invoices that are due for payment. Invoices can be blocked or unblocked for
payment.
Program: Once the payment list has been verified, the payment run is scheduled. A payment document is
created and the general ledger and sub-ledger accounts are updated.
Print: The accounting functions are completed and a separate print program is scheduled to generate the
payment media.)
Run Date: Current Date
Identification: ABC (any)
Click Parameters Tab
Company Code: XYZ
Payment Method: D
Next Payment Date: Current Date+1
Vendor Account: Give Range
Click Additional Log Tab
Vendor Account: Give Range
Check on Due Date Check
Check on Payment method selection in all cases
Save & Back
Click Schedule Proposal
Select Start Immediately
Target: BBY
Enter till Payment Proposal has been created
Click Edit Proposal
Select Line Items
Click Reallocate
Payment Method: D
House Bank: UTI
A/c. ID: UTI1
Save & Back
Click Printout/Data Medium
Program: RFFOUS_C
Variant: D
Environment > Maintain Variant
Program Run Date: Current Date+1 (Next Payment Date mentioned in the Program)
Identification: ABC
Paying Company Code: XYZ
Payment Method: D
Business Area: XYZH
House Bank: UTI
A/c. ID: UTI1
Currency Key: INR

Print Control:Select Print Checks
Select Print Immediately
Select Print Payment Summary Select Print Immediately
No. of Sample Printouts: 0
No. of items in Payment Summary: 9999
Save & Back Arrow twice
Click Payment Run Tab
Enter till Payment Run is carried out
Click Schedule Print Tab
Job Name:
Enter till Payment Run is carried out
System > Services > Output Controller (SP01)
Execute
Select the item in the report
Click Display Contents Icon
Report can be viewed.
Accounts Receivable
Posting Keys
Customer Debit: 01
Customer Credit: 15
S/Debtors Bill of Exchange Debit: 09
S/Debtors Bill of Exchange Credit: 19
Document Types
DR Customer Invoice
DZ Customer Payment
DA Customer Document (Transfers/Reversals)
AR (Customer Accounts) is a Subsidiary Ledger of Sundry Debtors & Sundry Debtors is a Reconciliation
Account under Current Assets.
Steps:
Creation of Customer Account Groups like FI Customers and SD Customers with Reconciliation Account
Field mandatory.
Creation of Number Range Groups and Numbers for Customers.
Assignment of Number Range Group to Customer Account Group.
Creation of Customer Master.
Document Types and Number Ranges for KR, KZ and KA.
Creation of Customer Account Groups (OBD2)
SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Customer Accounts >
Master Records > Preparations for creating Customer Master Records > Define Account Groups with
Screen Layouts (Customers)
(Create FI Customer Group & SD Customer Group
Company Code Data > Account Management > Reconciliation Account Required Entry)
The Customer Account Group controls

The number ranges of the accounts, the status of the fields in the master record and whether the account is a
one time customer.
Create Number Ranges for Customer Accounts (XDN1)
Master Records > Preparations for creating Customer Master Records > Create Number Ranges for
Customer Accounts
Assign Number Ranges to Customer Account Groups (OBAR)
Master Records > Preparations for creating Customer Master Records > Assign Number Ranges to
Customer Account Groups
Creation of Customer Master (XD01)
Accounting > Financial Accounting > Accounts Receivable > Master Records > Maintain Centrally >
Create
(The account group is entered on the initial create screen. In FI, once the customer account is created, its
account group cannot be changed.
Select Company Code Data Button Give Reconciliation Account Number, Sort Key 012 Vendor Name,
Payment Terms, Tolerance Group & Select Check Double Invoicing)
Line item display and open item management are always preset to on for every customer account.
A complete Customer Account consists of 3 segments 1. General Data at the client level 2. Company
code segment and 3. Sales Area segment
General data consists Address, Control data, Payment transactions etc. The account number is assigned to
the Customer at the client level. This ensures that the account number for a customer is the same for all
company codes and sales areas.
Company data consists Accounting information, Payment transactions, Correspondence, Insurance,
Withholding tax etc.
Note: If SD creates their segment of the master record and then FI creates their segments of the master
record, there is the risk of creating incomplete or duplicate master records. To find and correct these
incomplete accounts, we can run report RFDKAG00 and make the necessary corrections.
Creation of duplicate accounts can be prevented by:
Using the matchcode before creating a new account
Switching on automatic duplication check
Important Fields
Search Item: Should be filled with a short version of the customer name according to company
rules/desires. An additional search field also can be filled up.
Group Key: Customers who belong to one corporate group can be bundled together by a user-defined group
key. This group key can be used for running reports, transaction processing or for matchcodes.
Accounting clerk: The accounting clerks name has to be stored under an ID and this ID can be entered in
the customer master record of the account he or she is responsible for. The accounting clerks name is then
printed on correspondence and this ID is used to sort dunning and payment proposal lists.
Document Types & Number Ranges (OBA7)
(Give Number Ranges for Document Types DR, DZ and DA)
Sale Invoice Posting (F-22)

Accounting > Financial Accounting > Accounts Receivable > Document Entry > Other > Invoice General
Display Customer Account (FBL5N) with Open Item, Cleared Item and Special GL Item details
Accounting > Financial Accounting > Accounts Receivable > Account > Display/Change Line Items
Display Customer Account (FD10N)
Incoming Payment Posting (F-28)
Accounting > Financial Accounting > Accounts Receivable > Document Entry > Incoming Payment
Down Payments from Customers
Create Special GL Account Advances from Customers (Reconciliation Account) under Current Liabilities
Create Link between S/Debtors and Advances from Customers (Special GL Indicator: A)
Down Payment Receipt Posting
Sale Invoice Posting
Transfer of Down Payment from Special GL to Normal item by clearing Special GL Account
Clearing of Normal Item
Link between S/Debtors and Advances from Customers (OBXR)
Down Payments Received > Define Reconciliation Accounts for Customer Down Payments
(Double Click on Down Payment & Give Reconciliation Account Number and Special GL Account
Number)
Customer Down Payment Posting (F-29)
Accounting > Financial Accounting > Accounts Receivable > Document Entry > Down Payment > Down
Payment
(Special GL Indicator A)
Transfer of Advance from Special GL to Normal by clearing Special GL (F-39) Down Payment Clearing
Accounting > Financial Accounting > Accounts Receivable > Document Entry > Down Payment >
Clearing
Clearing of Normal Item (F-32)
Accounting > Financial Accounting > Accounts Receivable > Account > Clear
Bill of Exchange
LC (Letter of Credit 30/60/90 days sight)
Contingent Liability
Bills Discounted with Bank
W is the Special GL Indicator (W stands for Bill of Exchange Bankable)
Bill of Exchange Transaction
Normal Accounting SAP Accounting
Customer A/c. Dr.
To Sales A/c. Customer A/c. Dr. (S/Debtors Debit)
To Sales A/c.
Bill of Exchange Receipt
No Entry Bill of Exchange Receipt

Customer (W) A/c. Dr. (S/Drs. BExchnge A/c. Debit)
To Customer A/c. (S/Drs. With clearing)
Discounting
Bank A/c. Dr.
Interest A/c. Dr.
To Bill Discounting A/c. Discounting
Bank A/c. Dr.
Interest A/c. Dr.
To Bank Bill Discounting A/c.
Reversal of Contingent Liability
Bill Discounting A/c. Dr.
To Customer A/c. Reversal of Contingent Liability Bank Bill Discounting A/c. Dr.
To Customer (W) A/c. (S/Drs. Bill of Exchange with clearing)
Reports
Customer wise, Due Date wise, Bill wise outside the system Reports within the system
Customer wise, Due Date wise, Bill wise within the system
Creation of GL Account S/Debtors Bill of Exchange (FS00)
(Current Assets Loans and Advances Group
Balance Sheet
Deselect Only Balances in Local Currency
Reconciliation Account for Account Type: Customers
Select Line Item Display
Sort Key: 031 (Customer Number)
Field Status Group: G067 Reconciliation Accounts)
Creation of GL Account Bank Bill Discounting (FS00)
(Secured Loans Group
Balance Sheet
Only Balances in Local Currency
Select Open Item Management
Select Line Item Display
Sort Key: G005 (Bank Accounts Obligatory Value Date)
**Select Post Automatically only**)
Link between S/Debtors and S/Debtors Bill of Exchange (OBYN)
SPRO > Financial Accounting > Bank Accounting > Business Transactions > Bill of Exchange
Transactions > Bill of Exchange Receivable > Post Bill of Exchange Receivable > Define Alternative
Reconciliation Account for Bill of Exchange Receivable
(Double Click Special GL Account Determination
Double Click Bill of Exchange Bankable
Chart of Accounts: XYZ
Account Type: D
Special GL Indicator: W Bill of Exchange Bankable
Reconciliation Account: Sundry Debtors A/c.
Special GL Account: Sundry Debtors Bill of Exchange A/c.)
Link between Bank Current Account, Sundry Debtors Account and Bank Bill Discounting Account
(OBYK)
SPRO > Financial Accounting > Bank Accounting > Business Transactions > Bill of Exchange
Transactions > Bill of Exchange Receivable > Present Bill of Exchange Receivable at Bank > Define Bank
Sub Accounts
(New Entries

Bank Current Account: Current A/c. GL No.
Usage: Discounting
Indicator for Special GL: W Bill of Exchange Bankable
Customer Reconciliation: Sundry Debtors A/c.
Bank Sub Account for Liability: Bank Bill Discounting A/c.)
Bill of Exchange Receipt (F-36)
Accounting > Financial Accounting > Accounts Receivable > Document Entry > Bill of Exchange >
Payment
(Date:
Select Incoming Payment
Posting Key: 09 Special GL Debit
Account: Customer A/c. No.
Special GL Indicator: W Bill of Exchange Bankable
Amount:
Text: Bill of Exchange Receipt
Business Area:
Due on: Current Date + LC sight
Planned Usage: Discounting
Central Bank LOC: Bank Main
Select Choose Open Items
Select Process Open Items
Double in INR Gross 9999
Save)
Bill Discounting (F-33)
Discount
(Date:
Type: DA
Usage: Discounting
Bank Account Number: Current Account GL Number
Business Area:
Amount:
Text: Bank Bill Discounting
Posting Key for Debit: 40
Account: Interest GL Account Number under Expenses
Amount: Interest Amount
Business Area:
Press Select Bill of Exchange Button
Document Number: Bill of Exchange Receipt Document Number
Doc Simulate & Save)
To see Customer wise, Due Date wise Outstanding (S_ALR_87012213)
Accounting > Financial Accounting > Accounts Receivable > Periodic Processing > Bill of Exchange
Processing > Korea > Bill of Exchange Management
(Chart of Accounts:
GL Account: Sundry Debtors Bill of Exchange GL Account Number
Company Code:
Special GL Indicator: W
Bill of Exchange Usage: D Discounting
Select Discounted/Collected Bills

Execute
Fields to keep in Report: Due Date, Document Number, Document Date, Customer, Received from,
Amount in Local Currency)
Display Bank wise Outstanding (FBL3N)
Accounting > Financial Accounting > General Ledger > Account > Display/Change Line Items
(Bank Account Number: Bank Bill Discounting GL Account Number
Select Open Items Button & Execute)
Reverse Contingent Liability (F-20)
Reverse Contingent Liability
(Document Date:
GL Account Number: Sundry Debtors Bill of Exchange GL Account Number
Usage: Discounting
Due by:
Select Edit Line Items Buttons
Select the items from the Drop Down Menu
Save & Document Display)
Customer Account Display FBL5N
Bank Bill Discounting Account Display FBL3N
Note: Even in case of Dishonor First Contingent Liability is to be reversed and the additional entry for
dishonor is Customer Debit and Bank Credit.
Dunning
System defined reminder letters
Dunning Area: South, North, East, West
Dunning Levels: 4 (Maximum levels 9)
Dunning Frequency: 10/20/30 days
Grace Period: 3/4/5 days
The Dunning Program settings are divided into the following categories:
Dunning Procedure
o Define the key for the dunning procedure to be used
o Give a description for the dunning procedure
o Define dunning interval in days
o Specify minimum days in arrears after which a dunning notice will be sent
o Grace period per line item
o Interest calculation indicator for calculation of dunning interest
Dunning levels (Each item to be dunned gets a dunning level according to its days in arrears)
o Define minimum number of days, referring to the due date of net payment, to reach a certain dunning
level
o Define whether interest is to be calculated
o Define print parameters
Charges
o Define dunning charges, depending on the dunning level
o Dunning charges can be either a fixed amount or a percentage of the dunned amount
o A minimum amount for the dunning charges can be set
Minimum amounts
o Define minimum amount or percentage of the overdue items to reach a dunning level
o Minimum amount to be reached in order to calculate interest per dunning level
Dunning texts
o Define the name of the form that will be used at each dunning level
Environment
o Company code data
o Sort fields
o Sender details
o Dunning areas
o Dunning keys (A dunning key determines that the line item can only be dunned with restrictions or is to
be displayed separately on the dunning notice. By assigning dunning keys to certain items we can prevent
these items from exceeding a certain dunning level.)
o Dunning block reasons ( A dunning block prevents accounts and items to be dunned)
o Interest
o Dunning grouping
Define Dunning Areas (OB61)
Dunning > Basic Settings for Dunning > Define Dunning Areas
(F5, Company Code: XYZ, Area: leave blank, Text: Dunning Area for XYZ)
Define Dunning Procedure (FBMP)
Dunning > Dunning Procedure > Define Dunning Procedures
(Select New Procedure
Name: XYZ
Text: Dunning Procedure for XYZ
Dunning Interval: 10 days
Number of Dunning Levels: 4 (max)
Line Item Grace Period: 3 days
Select Standard Transaction Dunning
Reference Dunning Procedure: XYZ
Reference Interest Indicator: Item Interest calculation key if any
Select Dunning Text Button (ignore the warning message & enter)
Co. Code: XYZ
Select Customer & Enter
Select New Company Code Button
Give: XYZ & Enter
Select Separate Notice per Dunning Level
Back arrow twice & say Yes to the message Data to be saved?
Select Dunning Text Button once again
Co. Code: XYZ
Select Customer & Enter
{Open one more session with FBMP & Double Click 0001 System defined Dunning Procedure
Select Dunning Text Button and give Co. Code: 0001
Select Customer & Enter}
Copy the Forms from here and Paste in XYZs FBMP
Select Back Arrow
Select Dunning Levels Button & specify interest settings if any
Select Charges Button to specify Dunning Charges if any
Save, Ignore the warning message & Enter)
Assignment of Dunning Procedure in the Customer Master (XD02)
Change
(In Company Code Data > Correspondence Tab > Assign Dunning Procedure)
Dunning Run (F150)

Accounting > Financial Accounting > Accounts Receivable > Periodic Processing > Dunning
Steps in Dunning Run
Maintain Parameters (specify the accounts and documents that are to be considered in the dunning run)
Proposal Run
Editing Proposal
Printing Dunning Notices
(Run on: Current Date
Identification: XYZ1 (any)
Select Parameters Tab
Dunning Date: Current Date
Documents Posted up to: Current Date
Company Code: XYZ
Customer A/c. No.: Give the range & Save & Select Back Arrow
Select Schedule Button
Start Date: Current Date
Output Device: LP01 & Select Schedule Button
Till you get complete message keep on entering
Select Dunning Printout Button
Select Print Button
Select Sample Printout Button
Customer Number: Give Range & Select Print Button
Select Individual Dunning Notice Button
Output Device: LP01 & Select Continue Button
Co. Code: XYZ & Give Customer Range
Select Printout Button)
Note: Dunning Level completed will be updated in Customer Master Record.
Sales Tax
Input Tax or Purchase Tax
Base
100
2% Tax
2
Inventory RM
102
Output Tax or Sales Tax
Base Price
100 Sales Account
4% ST
4 ST Payable Account
104
Define Calculation Procedure (OBQ3)
SPRO > Financial Accounting > FAGS > Tax on Sales/Purchases > Basic Settings > Check Calculation
Procedure
Double click Define Procedures
(F5, Procedure: TaxXYZ {any}, Desc: Sales Tax India & Save
Select the Record Created
Double click Control Data & Select New Entries
Step: 1
Condition Type: BASB Base Amount
Step: 2
Condition Type: MWVS Input Tax
From: 1 To: 1
Account Key: VST Input Tax
Step: 3
Condition Type: MWAS Output Tax
From: 1 To: 1
Account Key: MWS Output Tax
Save)
Assign County to Calculation Procedure
SPRO > Financial Accounting > FAGS > Tax on Sales/Purchases > Basic Settings > Assign County to
Calculation Procedure
(For Country IN attach the procedure TaxXYZ)
Define Tax Codes for Sales & Purchases (FTXP)
SPRO > Financial Accounting > FAGS > Tax on Sales/Purchases > Calculation > Define Tax Codes for
Sales and Purchases
(For Input Tax
Country: IN & Enter
Tax Code: V1 {Any}
Desc: 2% Input Tax
Tax Type: V Input Tax & Enter
Input Tax: 2% (Give Input Tax Rate)
Deactivate the Output Tax Line & Save)
(For Output Tax
Country: IN & Enter
Tax Code: A1 (Any)
Desc: 4% Output Tax
Tax Type: A Output Tax & Enter
Output Tax: 4% (Give Output Tax Rate)
Deactivate the Input Tax Line & Save)
Define Tax Accounts (OB40)
SPRO > Financial Accounting > FAGS > Tax on Sales/Purchases > Posting > Define Tax Accounts
(Double click VST Input Tax key
Chart of Accounts: XYZ & Save
Give the GL Account Number to which Input Tax should go: Inventory-RM A/c.
Select Back Arrow & Double click MWS key for Output Tax
Check On Tax Code wise & Save
Tax Code: A1
Account Number: ST Payable A/c.)
Assign Sales Tax Code in Customer Master (XD02)
Change
(General Data Button > Control Data Tab > Tax Code1: A1 the defined tax code)
Assign Sales Tax Code in GL Account Sales (FS00)

Control Data Tab > Tax Category: * (All Tax Codes allowed)
Check on Posting without Tax allowed
Posting of Sale Transaction in FI (F-22)
The Entry will be
Customer A/c. Dr. 1,04,000/To Sales
1,00,000/To ST Payable
4,000/Asset Management
Subsidiary Ledger
Chart of Depreciation Copy Germany Chart of Depreciation
Depreciation Areas Book, Tax, Consolidated and Costing
Depreciation Methods Straight Line Method and Written Down Value Method
Depreciation Keys Rate + Method
5% SLM, 5%WDV etc.
Rules:
Sub Asset Master is to be created WRT Main Asset Master
Main Asset Master is to be created WRT Asset Class
In Asset Class we mention Account Determination
For Account Determination we assign Accounts on the basis of Transaction like Purchase, Sale, Profit,
Loss, Scrapping, Depreciation, Accumulated Depreciation etc.
Transaction Account Determination Asset Class
Land Free Hold Land
Lease Hold Land
Buildings Factory Buildings
Non Factory Bldgs.
Plant & Machinery Department A
Department B
Department C Machine No.1 Motor
Furniture & Fixtures Furniture & Fixtures
Office Equipment
Vehicles Indigenous Vehicles
Imported Vehicles
Capital Work in Progress Expansion 1
Expansion 2
Expansion 3
Asset Masters
System defined Account Determinations and Screen Layout Rules:

Description Account Determination Screen Layout Rule
Real Estate and Similar Rights 10000 1000
Buildings 11000 1100
Machinery and Equipment 20000 2000
Furniture & Fixtures 30000 3000
Vehicles 31000 3100
Hardware (IT) 32000 3200
Down Payments paid and Assets under Construction 40000
Low Value Assets 50000 5000
4000
Sub Asset Masters
Leasing 60000 6000

Objects of Art 80000 8000
Settings:
Copy Reference Chart of Depreciation/ Depreciation Areas (EC08)
SPRO > Financial Accounting > Asset Accounting > Organisational Structures > Copy Reference Chart of
Depreciation/ Depreciation Areas
Double click Copy Reference Chart of Depreciation
(Menu) Organisational Object > Copy Org. Object (EC08)
From Chart of Depreciation: ODE (Sample Chart of Depreciation, Germany)
To Chart of Depreciation: XYZ & Enter
Double click Specify Description of Chart of Depreciation
Change the Description for XYZ as XYZ Chart of Depreciation
Define Depreciation Areas (OADB)
SPRO > Financial Accounting > Asset Accounting > Valuation > Depreciation Areas > Define Depreciation
Areas
Double click Define Depreciation Areas (OADB)
Select XYZ Chart of Depreciation
Select Choose Button
Edit > Selections > Select All
Deselect 01 Book Depreciation Area
Edit > Delete (10 Entries will be deleted except for Book Depreciation)
Save & Keep on Entering till the Data is saved.
(02, 30 will not be deleted, they remain along with 01 Book Depreciation)
Creation of 0% Tax Codes for Sale & Purchase (FTXP)
SPRO > Financial Accounting > FAGS > Tax on Sales/ Purchases > Calculation > Define Tax Codes for
Sales and Purchases
Country Code: IN
Tax Code: V0 (any) & Enter
Tax Code: V0
0% Input Tax
Tax Type: V (V for Input Tax) & Enter
Input Tax: Give 0 percentage
Deactivate Output Tax Line & Save
In the same way create A0 0% Output Tax Code
Assign Tax Codes for Non Taxable Transactions (OBCL)
SPRO > Financial Accounting > FAGS > Tax on Sales/Purchases > Posting > Assign Tax Codes for Non
Taxable Transactions
(For XYZ Company Code assign Input Tax Code V0 and Output Tax Code A0)
Assign Chart of Depreciation to Company Code (OAOB)
SPRO > Financial Accounting > Asset Accounting > Organisational Structures > Assign Chart of
Depreciation to Company Code
(For XYZ Company Code, Assign XYZ Chart of Depreciation)
Specify Account Determination
SPRO > Financial Accounting > Asset Accounting > Organisational Structures > Asset Classes > Specify
Account Determination
(No settings required, already system has defined)
Create Screen Layout Rules
SPRO > Financial Accounting > Asset Accounting > Organisational Structures > Asset Classes > Create
Screen Layout Rules

(No Settings Required)
Define Number Range Interval for Asset Classes (AS08)
SPRO > Financial Accounting > Asset Accounting > Organisational Structures > Asset Classes > Define
Number Range Interval
Create Intervals
Group No. From
To
01
1
100000
02
100001 200000
03
200001 300000
04
300001 400000
05
400001 500000
06
500001 600000
Define Asset Classes (OAOA)
SPRO > Financial Accounting > Asset Accounting > Organisational Structures > Asset Classes > Define
Asset Classes
New Entries
Asset Class: X10000 Freehold Land
Account Determination: 10000
Screen Layout Rule: 1000
Number Range Group: 01
Select Include Asset under Inventory Data
Select No AuC or Summary Management of AuC
Save
Select Next Entry Button
Asset Class: X11000 Factory Buildings
Select Include Asset
Save
Asset Class: X20000 Department A Plant & Machinery
Save
Asset Class: X20001 Department B Plant & Machinery
Save

Asset Class: X30000 Furniture & Fixtures
Save
Asset Class: X31000 Vehicles Indigenous
Save
Asset Class: X40000 Expansion 1
Select Line Item Settlement
Save
Creation of GL Accounts (FS00)
Land (Deselect Only Bal in LC, Reconciliation: Assets, Sort Key 018, G067)
Buildings
- do Plant & Machinery
- do Furniture & Fixtures
- do Vehicles
- do Capital Work in Progress
- do Accumulated Depreciation Buildings
- do Accumulated Depreciation Plant & Machinery
- do Accumulated Depreciation Furniture & Fixture
- do Accumulated Depreciation Vehicles
- do Asset Sale (Under Other Income Group & Field Status G052, Sort Key 018)
Profit on Sale of Asset (Under Other Income & Field Status G001, Sort Key 018)
Loss on Asset Sale (Under Admn Cost & Field Status G001, Sort Key 018)
Loss due to Scrapping (Under Admn Cost & Field Status G001, Sort Key 018)
Depreciation (Under Depreciation & Field Status G001, Sort Key 018)
Assignment of Accounts (AO90)
SPRO > Financial Accounting > Asset Accounting > Integration with General Ledger > Assign GL
Accounts
Select Details of Chart of Depreciation XYZ
Double Click Choose Account Allocation
Select 10000 Account Determination (Real Estate & Similar Rights)
Double click Define Acquisition/Retirement Accounts
Select 01 Book Depreciation Area
Select Details Button
Acquisition: Acquisition & Production Costs: Give GL A/c. of LAND
Clearing Account Revenue from Asset Sale: Give GL A/c. of ASSET SALE
Gain from Asset Sale: Give GL A/c. of PROFIT ON ASSET SALE

Loss from Asset Sale: Give GL A/c. of LOSS ON ASSET SALE
Loss made on Asset Retirement without Revenue: Give GL A/c. of LOSS DUE TO SCRAPPING
Enter & Save
Select Back Arrow Twice
Select 11000 Account Determination (Buildings)
Double click Define Acquisition/Retirement Accounts
Select 01 Book Depreciation Area
Acquisition: Acquisition & Production Costs: Give GL A/c. of BUILDINGS
Clearing Account Revenue from Asset Sale: Give GL A/c. of ASSET SALE
Gain from Asset Sale: Give GL A/c. of PROFIT ON ASSET SALE
Loss from Asset Sale: Give GL A/c. of LOSS ON ASSET SALE
Loss made on Asset Retirement without Revenue: Give GL A/c. of LOSS DUE TO SCRAPPING
Enter & Save
Double click Define Depreciation Accounts
Select 01 Book Depreciation
Accumulated Depreciation Account for Ordinary Depreciation: Give GL A/c. of ACCUMULATED
DEPRECIATION BUILDINGS
Expense Account for Ordinary Depreciation: Give GL A/c. of DEPRECIATION
Enter & Save
Select Back Arrow Twice
And repeat the procedure for 20000, 20001, 30000, 31000 and 40000
Note: For 40000 Asset under Construction, no need to assign Depreciation Accounts as there will be no
Depreciation on AuC.
Determination of Depreciation Areas in Asset Classes (OAYZ)
SPRO > Financial Accounting > Asset Accounting > Valuation > Determine Depreciation Areas in Asset
Class
Select X10000 Freehold Land
Double Click Depreciation Areas
Activate 01 Book Depreciation by Deselecting it
Layout Depreciation on Asset Sub Number Level: Give 2000 in all 3 records.
Back Arrow
Select X11000 and repeat the process. And repeat the process for the remaining Asset Classes X20000,
X20001, X30000, X31000 and X40000
Specify Document Type for Posting of Depreciation (OBA7)
SPRO > Financial Accounting > Asset Accounting > Integration with General Ledger > Post Depreciation
to General Ledger > Specify Document Type for Posting of Depreciation
Select AF Depreciation Postings & give a number range.
**Select External Documents Check Box**
Specify Intervals and Posting Rules (OAYR)
SPRO > Financial Accounting > Asset Accounting > Integration with General Ledger > Post Depreciation
to General Ledger > Specify Intervals and Posting Rules
Select XYZ Company Code and Double click Posting Rules
Select Details of 01 Book Depreciation
Select Monthly Posting
Specify Rounding off Net Book Value and / or Depreciation (OAYO)
SPRO > Financial Accounting > Asset Accounting > Valuation > Amount Specification (Com Code/Dep
Area) > Specify Rounding off Net Book Value and / or Depreciation
Select XYZ Company Code and Double click Rounding Specification
Select 01 Book Depreciation & Select Details Button
Select Automatically Calculated Depreciation
Select Round to nearest whole
Define Screen Layout for Asset Master Data
SPRO > Financial Accounting > Asset Accounting > Master Data > Screen Layout > Define Screen Layout
for Asset Master Data
Select 1000 Real Estate or Land
Double click Logical Field Groups
Select 2 Posting Information
Double click Field Group Rules
Capitalization Date Required Entry
Check on Main Asset Number, Sub Number and Copy
Back Arrow
Select 3 Time Dependent Data
Business Area Required Entry
Repeat the Process for 1100, 2000, 3000, 3100 & 4000.
Define Screen Layout for Asset Depreciation Areas (AO21)
SPRO > Financial Accounting > Asset Accounting > Master Data > Screen Layout > Define Screen Layout
for Asset Depreciation Areas
Select 2000 Depreciation on Asset Sub Number Level
Depreciation Keys Required Entry at
Depreciation Keys
Define Base Method (SLM 0014)
Define Declining Balance Method (WDV 001)
Define Multi Level Method
Define Period Control Method
Define Depreciation Key
Define Base Method
SPRO > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods > Depreciation
Key > Calculation Methods > Define Base Methods
For SLM always select 0014
0014 Ordinary: Explicit Percentage (after end of life)
No Settings Required
Define Declining Balance Methods (AFAMD)
Key > Calculation Methods > Define Declining Balance Methods
Always Select 001, No Settings Required
Define Multi Level Methods (AFAMS)
Key > Calculation Methods > Define Multi Level Methods
New Entries
M_Level_Method: X1 (any)
Description: 5% SLM
Validity Start: From Ordinary Depreciation Start Date

Save & Double click Levels
New Entries
Acquisition Year: 9999 Years: 999 Periods: 12
Base Value: 01 Acquisition Value Percentage: 5
Save & Back Arrow 3 times
New Entries
M_Level_Method: X2 (any)
Description: 5% WDV
Validity Start: From Ordinary Depreciation Start Date
Save & Double click Levels
New Entries
Acquisition Year: 9999 Years: 999 Periods: 12
Base Value: 24 Net Book Value Percentage: 5
Maintain Period Control Methods (AFAMP)
Key > Calculation Methods > Maintain Period Control Methods
New Entries
Period Control Method: 006 (any)
Acquisition: 01 (Pro rata at period start date)
Add: 06 (At the start of the year)
Retire: 06 (At the start of the year)
Transfer: 06 (At the start of the year)
Maintain Depreciation Key (AFAMA)
Key > Maintain Depreciation Key
Select XYZ Company Code
Select Choose Button
New Entries
Depreciation Key: XYZ1 (any)
Description: 5% SLM
Select Period Control According to Fiscal Years
Select Depreciation to the Day
Save, Ignore the warning message & Enter
Double click Assignment of Calculation Methods
New Entries
Depreciation Type: Ordinary Depreciation
Phase: From the start of Depreciation
Assignment
Base Method: 0014 (Ordinary: Explicit Percentage after end of life)
Declining Balance Method: 001
Period Control Method: 006
Multi Level Method: X1 (for SLM)
Class Straight Line Depreciation
Save & Back Arrow 4 times to Activate Depreciation Key XYZ1
Save
New Entries once again
Repeat the same procedure for creating XYZ2 Depreciation Key for 5%WDV
Select Multi Level Method X2 for WDV
Select Class Declining Balance Depreciation
Creation of Asset Master (AS01)

Accounting > Financial Accounting > Fixed Assets > Asset > Create > Asset
Asset Class:
Co. Code:
No. of similar Assets: 1 & Enter
General Data Description of the Asset:
Posting Info Capitalization Date:
Time Dependent Data Tab Business Area:
Depreciation Area Tab
Depreciation Key:
Use Life: (Life of the Asset)
Per: (Planned useful life in periods)
Ordinary Depreciation Start Date:
Save (Asset XXXXXX 0 is created)
Creation of Sub Asset Master (AS11)
Accounting > Financial Accounting > Fixed Assets > Asset > Create > Sub No. > Asset
Asset: XXXXXX
Class:
Company Code: XYZ & Enter
General Data Description of the Sub Asset:
Posting Info Capitalization Date:
Time Dependent Data Tab Business Area:
Depreciation Area Tab
Depreciation Key:
Use Life: (Life of the Asset)
Per: (Planned useful life in periods)
Ordinary Depreciation Start Date:
Save (Asset XXXXXX 1 is created)
Asset Purchase Posting (F-90)
Accounting > Financial Accounting > Fixed Assets > Postings > Acquisition > External Acquisition > With
Vendor
Doc. Date:
Posting Date:
Doc. Type: KR Vendor Invoice
Posting Key: 31 Vendor Credit
Account: Vendor Account Number
Asset Value:
B. Area: Desc: Asset Purchase Posting
Next Line
Posting Key: 70 Asset Debit
Account: XXXXXX 0
Transaction Type: 100 External Acquisition Type
Amount: * Text: +
Doc > Simulate & Save
Sub Asset Purchase Posting (F-90)
Accounting > Financial Accounting > Fixed Assets > Postings > Acquisition > External Acquisition > With
Vendor
Asset Explorer (AW01N)
Accounting > Financial Accounting > Fixed Assets > Asset > Asset Explorer
Depreciation Run (AFAB)
Accounting > Financial Accounting > Fixed Assets > Periodic Processing > Depreciation Run > Execute
(Planned Posting Run, Unplanned Posting Run, )
Asset Sale (F-92)
Accounting > Financial Accounting > Fixed Assets > Postings > Retirement > Retirement with Revenue >
With Customer
Check on Asset Retirement
Transaction Type: 210 Retirement with Revenue

Select Complete Retirement
The Entry created is
01 Customer A/c. Dr.
70 Acc Depn A/c. Dr.
40 Asset Sale A/c. Dr.
To 50 Asset Sale A/c.
To 75 Asset A/c.
To 50 Profit on Asset Sale A/c.
Asset Transfer within Company Code (ABUMN)
Accounting > Financial Accounting > Fixed Assets > Postings > Transfer > Transfer within Company Code
Asset Scrapping (ABAVN)
Accounting > Financial Accounting > Fixed Assets > Postings > Retirement > Scrapping
Capital Work in Progress Line Item Settlement
Define Line Item Settlement Profile (OK07)
SPRO > Financial Accounting > Asset Accounting > Transactions > Capitalization of Assets under
Construction > Define/Assign Settlement Profile
Double click Define Settlement Profile
Select AI Settlement Assets under Construction
Actual Costs/Cost of Sales Select To be settled in full
Default Values Allocation Structure: A1 (CO Allocation Structure)
Default Object Type: FXA (Asset)
Indicators Select % Settlement
Select Equivalence Numbers
Select Amount Settlement
Valid Receivers Fixed Asset: 2 (Settlement Required)
Other Parameters Doc Type: AA
Max No. of Distribution Rules: 999
Resi Time: 12
Select Back Arrow 2 times & Double click Assign Settlement Profile to Co. Code
Select Company Code XYZ and Assign Profile AI & Save.
Maintain Number Ranges for Settlement Documents (SNUM)
SPRO > Controlling > Internal Orders > Actual Postings > Settlement > Maintain Number Ranges for
Settlement Documents
Select Maintain Groups Button
Keep the Cursor on Element VBCF
Edit > Select Element F2
Check on Standard Accounting Document
Edit > Assign Element Group F5 & Save
Capitalization of Asset (AIAB)
Accounting > Financial Accounting > Fixed Assets > Posting > Capitalize Assets under Construction >
Distribute
Asset: Give the Asset Number to be Settled Sub No.: & Execute
Select the item which is to be settled
Click Enter Distribution Rules Button
FXA XXXXXX 0: 40%
FXA XXXXXX 0: 60%
Click Check Button for Checking Errors
Back Arrow & Save
Select Settlement Button

Give Dates and Text: Asset Settlement
Click to Buttons & Execute & Back Arrow
Remove Test Run & Execute
Financial Statement Version (FSV)
Summary, Schedules and Accounts
We define a financial statement version in 2 steps:
Enter in the directory of financial statement versions
Define hierarchy levels and assign accounts
Each version must have the following special items:
Assets
Liabilities
Profit
Loss
Profit and Loss results
Accounts not assigned
The ABAP/4 program RFBILA00 calculates the balance sheet profit/loss from the assets and liabilities
totals and enters the result in the Balance sheet results profit/loss item. The profit and loss statement
results are determined from all accounts not assigned to either assets or liabilities, and are entered in the
proper item.
A financial statement version consists of a maximum of 10 hierarchy levels
o Assign items to each level. The system calculates a total/subtotal for each item which is then displayed
when the program is run.
o Assign texts to each item.
o Assign the accounts whose balance and account name are to be listed to the lowest levels.
Define Financial Statement Version
SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Closing >
Documenting > Define Financial Statement Version
New Entries
Financial Statement Version: XYZ
Name: Balance sheet & Profit and loss Account
Check on Item keys auto
Save
Click Financial Statement Items button
Double click No text exists: Assets
Item: Assets & Enter
Double click No text exists: Liabilities
Item: Liabilities & Enter
Keep the cursor on XYZ Balance Sheet & Profit and loss Account
Click Create items button
Income
Expenditure & Enter
Keep the cursor on the item which is to be changed
Keep the cursor on Assets
Click Select +/- button (F9)
Keep the cursor on the item after which you want to place, i.e. Liabilities
Click Reassign button
Select Same level Radio button & Enter
Keep the cursor on Income & Place it after Expenditure & Save
To create Schedules:
Keep the cursor on Liabilities & Press Create items button
Give the heads you want
Repeat the same for Assets & Save
To assign Accounts:
Keep the cursor on Share Capital
Click Assign Accounts button
Give the range for the Accounts & Check on Dr. Cr.
Repeat the same for other schedules
Enter
To check all Accounts assigned or not:

Click Check Button (Ctrl+F5)
Select Non-assigned Accounts & Enter
Report can be viewed if there are any non-assigned accounts
Save the version and open one more session to view the balance sheet for defining texts
View Balance Sheet (S_ALR_87012284)
Accounting > Financial Accounting > General Ledger > Information System > GL Reports > Balance
Sheet/P&L Account/Cash Flows > General > Actual/Actual Comparisons > Balance Sheet/Profit & Loss
Statement
Reports
To View Chart of Accounts (S_ALR_87012326)
Accounting > Financial Accounting > General Ledger > Information System > General Ledger Reports >
Master Data > Chart of Accounts > Chart of Accounts
Trial Balance (S_ALR_87012310)
Accounting > Financial Accounting > General Ledger > Information System > General Ledger Reports >
Account Balances > Korea > Trial Balance South Korea
Ledger for Balance Audit Trial (S_P99_41000327)
Accounting > Financial Accounting > General Ledger > Periodic Processing > Closing > Document >
Balance Audit Trial > All Accounts > General Ledger from the Document File
Balance Sheet (S_ALR_87012284)
Sheet/P&L Account/Cash Flows > General > Actual/Actual Comparisons > Balance Sheet/Profit & Loss
Statement
Drilldown Report P&L
Sheet/P&L Account/Cash Flows > General > Actual/Actual Comparisons > Actual/Actual comparison for
year
Vendors List (S_ALR_87012086)
Accounting > Financial Accounting > Accounts Payable > Information System > Reports for Accounts
Payable Accounting > Master Data > Vendor List
Vendor Age Analysis (S_ALR_87012085)
Payable Accounting > Vendor Items > Vendor Payment History with Open Item Sorted List
List of Down Payments to Vendors (S_ALR_87012105)

Payable Accounting > Vendor Items > List of Down Payments open at key date Vendors
Vendors Ledger (S_ALR_87012103)
Payable Accounting > Vendor Items > List of Vendor Line Items
Asset History Sheet (AR02) Schedule 6 Depreciation Chart
Information System > Accounting > Financial Accounting > Fixed Assets > Asset History Sheet
Simulation of Depreciation for Future Years (S_ALR_87012936)
Accounting > Financial Accounting > Fixed Assets > Information System > Reports on Asset Accounting >
Depreciation Forecast > Depreciation on Capitalized Assets (Depreciation Simulation)
Closing Procedure
Month-end closing activities (Preparatory activities)
HR Payroll posting 57
MM Maintain GR/IR clearing account 12-13
Material valuations 14-15
Close material ledger 17
Close material master 18-19
SD - Goods issues/invoices(Verify that all postings for the period have been generated)
FI Accrual/Deferral postings 44-45
Recurring Entries 46
Depreciation posting 5
Interest
Accounting > Financial Accounting > General Ledger > Periodic Processing > Interest Calculation >
Balances (F.52)
AuC settlement 48
Close old period & open new period 63
CO Cost Centers: 51
- Imputed costs, Distribution and assessment, indirect activity allocation, Calculate actual activity prices
and update allocations
Internal Orders: 47, 50
- Overheads
- Settlement (For external settlement to AA or FI, re-open appropriate GL A/cs)
Production orders: 49
- Overheads
- WIP calculation
- Variance calculation
- Settlement
Profitability Analysis: 52
- Cost center assessments
- Activity based costing
- Allocations
Lock old posting period for Controlling transactions 53
Month-end closing activities (Financial closing)
FI Re-open periods for adjustments 63
CO/FI reconciliation postings (Cross-company code, cross-business area and cross-functional area flows
within CO are posted to FI) 54-55
Foreign currency open item valuation 39
Accounting > Financial Accounting > Accounts receivable > Periodic Processing > Closing > Valuate >
Valuation of Open Items in Foreign Currency (
Foreign currency balance sheet account valuation 43

Accounting > Financial Accounting > GL Accounts > Periodic Processing > Closing > Valuate > Valuation
of Open Items in Foreign Currency (F.05)
FI/PCA Balance sheet adjustment 67-70
FI/CO-PA Profit and loss adjustment 71
Final closing of posting periods 63
Final Reporting:
- Compact document journal 72
- Financial statements 2-4
- Taxes on sales/purchases 82
- Balance audit trial 74-75
Year-end closing activities (Preparatory activities)
In addition to the regular month-end closing activities for the final period of the fiscal year to be closed, the
activities to be performed for year-end closing process include:
MM Physical inventory procedure (Year-end or as required) 26
Inventory valuations lowest value determination, LIFO, FIFO (After closing the postings in MM for the
fiscal year) 20-25
CO - PP Material valuation from new material cost estimates 16
FI FI Open new fiscal year 63
AR/AP Balance confirmations 29-30
AA Fiscal year change 8
FI Balance carryforward 64
AA Valuations & Capital investment subsidies (after AA postings completed for fiscal year)
AA Year-end closing 9-10
AR/AP Close fiscal year 63
Year-end closing activities (Financial closing)
FI Analyze GR/IR postings 27
Regroup receivables/payables 41
General adjustments
Final fiscal year closing 63
GL Account balances old fiscal year to new fiscal year (Reconcile carry forward balances with prior
year final balances)
FI/CO/AA Final reporting (same as monthly + Account balances year-end)
AA Asset history sheet 11
Accumulated balance audit trial 76-79
Month-end closing process:
Pre-closing activities, which begin in the old month, include:
o Technical Open new accounting period (FI)
o FI Enter accrual/deferrals, process recurring entries and bad debt expense in AR, post depreciation
and interest expenses
o MM Maintain GR/IR clearing account, post material revaluations
o HR Post payroll expenses
o SD Post goods issues for deliveries to customers
o Technical Close old month (MM), close subledgers (FI), preliminary close of GL (FI)
Internal closing activities include CO allocations and repostings, locking the old posting period in CO, and
re-opening the GL for adjustment postings
Closing activities for external purposes include:
o CO Reconciliation posting to FI (for cross-organizational unit CO postings)
o FI Foreign currency valuations and financial statement adjustments
o Technical Final closing of the old period
o FI/CO Create external and internal reports
Year-end closing process:

In addition to the regular month-end closing process for the final period of the fiscal year, the activities to
be performed for year-end closing process include:
Pre-closing activities, which begin in the old month, include:
o Technical Open the first accounting period of the new fiscal year (FI)
o MM Perform physical inventory count (may be performed on up to a monthly basis)
o PP/CO Update product cost estimates (may be performed more frequently)
o MM Lowest value determination and LIFO/FIFO valuation
o AA Asset valuations and investment support
o FI Balance confirmations for customers and vendors
o Technical Fiscal year change (AA) and balance carry forward (FI)
Closing activities for external purposes include:
o FI GR/IR clearing account analysis, receivables/payables regrouping, reconciliation of prior year to
new year, and other adjustment postings
o Technical Final closing of the old period (AR/AP and GL)
o FI/CO Creating external and internal reports
Class Notes:
Vendor & Customer Balances to be carry forward to next year
Perform year end closing for Assets
GL Balances to be Carried Forward (P&L Bal Retained Earnings A/c. & BS Closing bal to become
Opening)
Copy Document Number Ranges for next year
Open Posting Periods
Vendor & Customer Balances to be carry forward to next year (F.07)
Accounting > Financial Accounting > Accounts Payable > Periodic Processing > Closing > Carry Forward
> Balances
Execute Year End Closing for Assets (AJAB)
Accounting > Financial Accounting > Fixed Assets > Periodic Processing > Year End Closing > Execute
GL Balances Carry Forward (F.16)
Accounting > Financial Accounting > General Ledger > Periodic Processing > Closing > Carry Forward >
Balances
Copying Document Number Ranges for next year (OBH2)
SPRO > Financial Accounting > FAGS > Document > Document Number Ranges > Copy to Fiscal Year
Open Posting Periods (OB52)
SPRO > Financial Accounting > FAGS > Document > Posting Periods > Open & Close Posting Periods
Cross Company Code Transactions
A cross company code transaction involves 2 or more company codes in one business transaction. For a
cross company code transaction, the system will post a separate document in each of the company codes
involved.
Examples for cross company code transactions are:
One company code makes purchases for other company codes (Central Procurement)
One company code pays for other company codes (Central Payment)
One company code sells goods to other company code
Steps:
Create Clearing Accounts in each of the company codes. The Clearing Accounts may be GL Accounts,
Customer or Vendor Accounts.

Configure the Automatic Postings for Cross Company Code Transactions by assigning Clearing Accounts
for both the company codes.
Creation of Clearing Accounts in both the Company Codes (FS00)
In Company Code # 1 In Company Code # 2
Account Group Current Assets Current Liabilities
Balance Sheet Account Balance Sheet Account
Short Text Clearing with CC2 Clearing with CC1
Long Text Clearing with Company Code 2 Clearing with Company Code 1
Account Currency INR INR
Only Bal in Local Currency Only Bal in Local Currency
Line Item Display Line Item Display
Sort Key 001 001
Field Status Group G001 G001
Post Automatically Only Post Automatically Only
Configure Automatic Postings for Cross Company Code Transactions (OBYA)
SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Prepare Cross
Company Code Transactions
Company Code 1: Give CC1
Company Code 2: Give CC2
&
Enter
Under Posted in: Company Code 1 Cleared against: Company Code 2

Receivable
Payable
Debit Posting Key: 40
Credit Posting Key: 50
Account Debit: Clearing A/c with CC2 Account Credit: Clearing A/c with CC2
Under Posted in: Company Code 2 Cleared against: Company Code 1
Receivable
Payable
Debit Posting Key: 40
Credit Posting Key: 50
Account Debit: Clearing A/c with CC1 Account Credit: Clearing A/c with CC1
Cross Company Code Invoice Posting (FB60)
Accounting > Financial Accounting > Accounts Payable > Document Entry > Invoice
Display Cross Company Code Document (FBU3)
Accounting > Financial Accounting > Accounts Payable > Document > Cross CC Transaction > Display
Reverse Cross Company Code Document (FBU8)
Accounting > Financial Accounting > Accounts Payable > Document > Cross CC Transaction > Reverse
Cash Journal
The Cash Journal is a Bank Accounting subledger for the management of cash in a business. It can be used
independently of other posting transactions.
Cash journal entries are saved locally in the cash journal subledger. All balances are automatically
calculated and displayed.
The cash journal entries saved are posted to the GL.
Create GL Account for Cash Journal
SPRO > Financial Accounting > Bank Accounting > Business Transactions > Cash Journal > Create GL
Account for Cash Journal

Or
Accounting > Financial Accounting > General Ledger > Master Records > Individual Processing > Create
(FS00)
Create Account Petty Cash for Cash Journal under Current Assets and select Post Automatically only
Set up Cash Journal
SPRO > Financial Accounting > Bank Accounting > Business Transactions > Cash Journal > Set up Cash
Journal
New Entries
Company Code: XYZ
Cash Journal ID Number: give a number
Account Number: Petty Cash GL Account Number
Currency: INR
Doc Type GL Posting: AB
Doc Type Payment to Vendor: KZ
Doc Type Payment from Vendor: KZ
Document Type Payment from Customer: DZ
Document Type Payment to Customer: DZ
Name: Give a name for the Cash Journal
Define Number Range Intervals for Cash Journal Documents
SPRO > Financial Accounting > Bank Accounting > Business Transactions > Cash Journal > Define
Number Range Intervals for Cash Journal Documents
Create Accounting Transactions to be used in Cash Journal
SPRO > Financial Accounting > Bank Accounting > Business Transactions > Cash Journal > Create,
Change, Delete Accounting Transactions
Create different types of transactions like Expense(E) transaction, Revenue(R) transaction, Cash Transfer
from Cash Journal to Bank(B) transaction, Cash transfer from Bank to cash journal(C) transaction,
Customers incoming/outgoing payment(D) transaction, Vendors incoming/outgoing payment(K) transaction
Enter Transactions in Cash Journal
Accounting > Financial Accounting > Banks > Input > Cash Journal
Enter the transactions and save.
Post the entries to the subledger, by pressing Post pushbutton.
To view the Accounting Documents Go to FI Follow-on Documents
Integration
MM FI Integration
Material Types
ROH Raw Material
ERSA Stores & Spares
VERP Packaging Material
FERT Finished Goods
HALB Semi Finished Goods
HAWA Traded Goods
DIEN Services
Views
Basic View, Purchase View, Production View, Sales View, Quality View, Accounting View, Costing View,
MRP View, Plant View etc.
Creation of Material Master (MM01)

Logistics > Material Management > Material Master > Material > Create General > Immediately
Accounting Views (MM03)
Fields: 1) Valuation Category 2) Valuation Class 3) Price Control
Valuation Category: Batch Classification & Average
Valuation Class: For Raw Material Indigenous and Imported
Rules:
The Material Master is to be created wrt Material Type
In the Material Master we assign the Valuation Class
For Valuation Class we assign the GL Masters based on the type of Transaction
Price Control
SPRO > Material Management > Valuation & Account Assignment > Define Price Control for Material
Types
S Standard Price, will be used for Finished Goods
V Moving Average, will be used for other than Finished Goods
MM FLOW
1. Purchase Requisition No FI Entry
2. Enquiry, Quotation and Price Comparison No FI Entry
3. Purchase Order No FI Entry
4. Purchase Order Release Procedure No FI Entry
5. Goods Receipt (Will be taken wrt PO) Inventory RM Local A/c. Dr
(BS CA) BSX
To GR/IR Clearing A/c.
(BS CL) WRX
6. Invoice Verification
GR/IR Clearing A/c. Dr
(BS CL) WRX
To Vendor A/c.
(BS CL) P.O.
7. Consumption
RM Consumption Local A/c. Dr
(P&L Dr) GBB-VBR
To Inventory RM Local A/c.
(BS CA) BSX
8. Production Receipt
Inventory FG A/c. Dr
(BS CA) BSX
To Increase/Decrease in Stocks FG (P&L Cr) GBB-ZOB
9. FG Delivery
Increase/Decrease in Stocks FG Dr
(P&L Cr) GBB-VAX
To Inventory FG
(BS CA) BSX
10. Billing SD Area
FI MM Integration Settings (OBYC)
SPRO > Material Management > Valuation and Account Assignment > Account Determination > Account
Determination without Wizard > Configure Automatic Postings (OMWB)
Cancel the existing Plant
Select Account Assignment Button (OBYC)
SD FI Integration
SD FLOW
1. Enquiry/Quotation No FI Entry
2. Sales Order No FI Entry
3. Delivery Without PGI & With PGI
Increase/Decrease in Stocks A/c. Dr
GBB VAX
To Inventory FG
BSX
4. Billing -
Party A/c. Dr
SO
Commission A/c. Dr
ERS
To Sales Export A/c.
ERL
To Freight Collection A/c.
ERF
Pricing Procedure VK11
Material
ERS
Region to Region ERL
Tax Code
ERF
Condition Type: KOFI
SD FI Integration (VKOA)
SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Integration > Sales
and Distribution > Prepare Revenue Account Determination
Double Click 003 Material Group Account Key
Application Area: V Sales/Distribution
Condition Type: KOFI
Account Assignment Goods
Account Key
Trading Goods
ERL Revenue
Finished Goods
ERS Sales Deductions
Services
ERF Freight Revenue
Share this:
Twitter
Facebook2
Like this:
Leave a Reply
The Twenty Eleven Theme. | Blog at WordPress.com.

Follow
Follow sameersapfico
Get every new post delivered to your Inbox.
Powered by WordPress.com

Sap FI Notes

Încărcat de

Informații document

Descriere originală:

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Sap FI Notes

Încărcat de

Drepturi de autor:

Formate disponibile

Finance FI

Basic Settings & GL

Assign Company Code to Field Status Variant (OBC5)

To Post a Session (SM35)

Enter Exchange Rates (OB08)

Interest Calculation Run (F.52)

Create Number Ranges for Vendor Accounts (XKN1)

Unused Checks Cancellation (FCH3)

At the time of Advance Payment Posting

Activate Extended Withholding Tax

Payment methods in Company Code (OBVU)

Payment Run (F110)

Currency Key: INR

The Customer Account Group controls

Sale Invoice Posting (F-22)

No Entry Bill of Exchange Receipt

Chart of Accounts: XYZ

Select Discounted/Collected Bills

Dunning Run (F150)

Assign Sales Tax Code in GL Account Sales (FS00)

System defined Account Determinations and Screen Layout Rules:

Sub Asset Masters

Leasing 60000 6000

Screen Layout Rules

Select Next Entry Button

Gain from Asset Sale: Give GL A/c. of PROFIT ON ASSET SALE

Validity Start: From Ordinary Depreciation Start Date

Creation of Asset Master (AS01)

Transaction Type: 210 Retirement with Revenue

Select Settlement Button

To check all Accounts assigned or not:

List of Down Payments to Vendors (S_ALR_87012105)

Foreign currency balance sheet account valuation 43

Year-end closing process:

Customer or Vendor Accounts.

Under Posted in: Company Code 1 Cleared against: Company Code 2

Account for Cash Journal

Creation of Material Master (MM01)

Condition Type: KOFI

The Twenty Eleven Theme. | Blog at WordPress.com.

S-ar putea să vă placă și