Sap Implementation of Fi Co Reallife Project PDF

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

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

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

P.Saravanan . Asst.Prof. (Sr.G) DR.JAYSHREE SURESH
. ..
SAP Implementation of
FI, CO, MM, PP
Table of Contents
1. INTRODUCTION ............................................................................................................................................ 6
1.1 SAP LANDSCAPE .............................................................................................................. 6
1.2 SAP R/3 OVERVIEW ......................................................................................................... 8
1.3 OBJECTIVE OF THE PROJECT ......................................................................................... 10
2. ASAP METHODOLOGY .............................................................................................................................. 11
2.1 PROJECT PREPARATION ................................................................................................. 12
2.2 BUSINESS BLUEPRINT ..................................................................................................... 12
BUSINESS BLUEPRINT................................................................................................................................... 13
2.2.1 Requirements ............................................................................................................................... 10
2.2.2 Existing Organisation Structure ................................................................................................ 11
2.2.3 Overview of Organizational Structure ...................................................................................... 12
REALIZATION .................................................................................................................................................. 18
2.3 REALIZATION .......................................................................................................... 14
2.3.1 Configuration of FI ..................................................................................................................... 15
2.3.2 CO ............................................................................................................................................... 163
2.3.3 MM ..................................................................................................................................................................................170
2.3.4 PP..................................................................................................................................................182
3. CONCLUSION...188
4.BIBLIOGRAPHY.189
1. Introduction
SAP Implementation is the whole of processes that defines a complete method to

implement the Enterprise Resource Planning SAP ERP software in an organization. The SAP
implementation method described in this entry is a generic method and not a specific
implementation method as such. It is based on best practices and case studies from various
literature sources and presents a collection of processes and products that make up a complete
implementation method to allow any organization to plan and execute the implementation of
SAP software
The Generic methods consist of the following steps:
Phases
Delivery Group
Activities
Task
The implementation of SAP software, such as SAP R/3 is almost always a massive operation that
brings a lot of changes in the organization. The whole process can take up to several years.
1.1 SAP Landscape
Landscape is like a server system or like a layout of the servers or some may even call it
the architecture of the servers viz. SAP is divided into three different landscapes Development,
Quality and Production.
- Development (DEV) is where the consultants do the customization as per the company's
requirement. It would have multiple clients for ex: 190- Sandbox, 100- Golden, and 180- Unit
Test.
- Quality is where the core team members and other members test the customization. Quality
may again have multiple clients for ex: 300- Integration Test, 700 to 710 Training.
- Production is where the live data of the company is recorded. It may have something like a
200 Production.
These names and numbers are the implementer's discreet on how they want it or they
have been using in their previous implementations or how are the client's business scenario.
Now whatever we do in the Sandbox doesn't affect the other servers or clients. Whenever
we are satisfied with our configuration and we can use it moving forward, we RE-DO it in the
golden client (this is a very neat and clean client and we cannot use it for rough usage). As we re-
do everything that we thought was important and usable, we get a transport request pop up upon
saving every time. we save it under a transport request and give our description to it. Thus the
configuration is transported to the Unit Test client (180 in this example).
Now upon a successful transport by the Basis guy, we have the entire configuration in the
Testing client, just as it is in the Golden client. The configuration remains in sync between these
two clients.
But in the Testing client we can not even access SPRO (Display IMG) screen. It's a transaction
only client where you perform the unit test. Upon a satisfactory unit test, we can move the good
configuration to the next Server (DEV). The incorrect or unsatisfactory configuration is
corrected in Golden (may again as well be practiced in the sandbox prior to Golden) and
accordingly transported back to 180 (Unit Test) until the unit test affected by that particular
configuration is satisfactory.
The Golden client remains the 'database' or we may rather call it the 'ultimate' reference client for
the entire good, complete and final configuration that is being used in the implementation.
These three are landscape of any Company. They organized their office in these three ways.
Developer develops their program in Development server and then transports it to test server. In
testing server tester check/test the program and then transport it to Production Server. Later it
will deploy to client from production server.
1.2 SAP R/3 Overview
SAP R/3 is SAP's integrated software solution for client/server and distributed open
systems. SAP's R/3 is the world's most-used standard business software for client/server
computing. R/3 meets the needs of a customer from the small grocer with 3 users to the multi-
billion dollar companies The software is highly customizable using SAP's proprietary
programming language, ABAP/4. R/3 is scalable and highly suited for many types and sizes of
organizations.
R/3 stands for real-time three tier architecture. This is the kind of architecture SAP R/3 system
has.
R/3 means three layers are installed in Different system/server and they are connected with each
other.
Web-enabled
Presentation
Internet
Transaction
Service/Web
Application
Service
Database
Presentation Layer
The presentation server is actually a program named sapgui.exe. It is usually installed on

a user's workstation. To start it, the user double-clicks on an icon on the desktop or chooses a
menu path. When started, the presentation server displays the R/3 menus within a window. This
window is commonly known as the SAPGUI, or the user interface (or simply, the interface). The
interface accepts input from the user in the form of keystrokes, mouse-clicks, and function keys,
and sends these requests to the application server to be processed. The application server sends
the results back to the SAPGUI which then formats the output for display to the user.
Application Layer
An application server is a set of executables that collectively interpret the ABAP/4
programs and manage the input and output for them. When an application server is started, these
executables all start at the same time. When an application server is stopped, they all shut down
together. The number of processes that start up when you bring up the application server is
defined in a single configuration file called the application server profile. Each application server
has a profile that specifies its characteristics when it starts up and while it is running.
Database Layer
The database layer consists of a central database system containing all of the data in the
R/3 System. The database system has two components - the database management system
(DBMS), and the database itself. SAP does not manufacture its own database. Instead, the R/3
System supports the following database systems from other suppliers: ADABAS D, DB2/400
(on AS/400), DB2/Common Server, DB2/MVS, INFORMIX, Microsoft SQL Server, ORACLE,
and ORACLE Parallel Server.
1.3Objective of the project
Primary Objective
To explain about the end to end process of implementation of SAP
To do the configuration part in FI & CO for ABP Ltd
Secondary objective
To study the concepts of preparing business blueprint
To explain about phases of ASAP Methodology
To brief about step by step Realization part of FI , CO & SD
To discuss about the Testing methodologies
To explain about the requirements of ABP Ltd limited
2. ASAP Methodology
Project Final
Realization
preparation Blueprinting preparation Go-live
close-
Definition Requirements Design Build Test Implement out
ASAP: Accelerated Systems Application and Products in Data Processing
The ASAP provides the methodology for implementing and continuously optimizing the SAP
System.
2.1 Project preparation
In this phase we plan our project and lay the foundations for successful implementation. At this
stage, we can make the strategic decisions crucial to our project:
o Define project goals and objectives

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

ABP Limited
ABP Ltd. ABP Ltd. ABP Ltd. ABP Ltd.

TN KL KA AP
2.2.3 Overview of Organizational Structure

2. 2.3.1 FI & CO
BA55 Controlli
ng
Area
BA55
ABP Ltd
Company
Code
BA77 BA88
Tyres Tubes
Business
Area
BA01 BA11 BA02 BA22
Tyres Production Tubes Tubeless Tyres Cost

of radial tyres Center
CONTROLLING AREA
A Controlling area structures the internal accounting operations of an organization within
Controlling. They represent closed units that are used to calculate costs. All internal allocations
relate solely to objects that belong to the same controlling area. ABP Ltd is under a controlling
area of the following:
Controlling Area Description

BA55 Controlling Area for ABP Limited
COMPANY CODE
A company code is the smallest organizational unit for which a complete self-contained set of
accounts can be drawn up for the purposes of external reporting. As shown in the above diagram,
the following company code will be defined for ABP Ltd:
Company Code Description

BA55 ABP Limited
BUSINESS AREA
Business areas provide an additional evaluation level for the purpose of segment reporting. In
Financial Accounting (FI), internal balance sheets and profit and loss statements area generated
on the basis of business areas. ABP Ltd has 2 business areas for each division.
Business Area Description

BA77 Tyres
BA88 Tubes
COST CENTRE
Cost centres are used to collects related costs. There are 4 cost centres used for DG Ltd:
Cost Centre Description

BA01 TYRES
BA11 RADIAL TYRES
BA02 TUBELESS TYRES
BA22 TUBES
REALIZATION
2.3 Realization
In this phase, configure the requirements contained in the Business Blueprint. Baseline
configuration (major scope) is followed by final configuration (remaining scope), which can
consist of up to four cycles. Other key focal areas of this phase are conducting integration tests
and drawing up end user documentation.
2.3.1 Configuration of FI
2.3.1.1 To create an IMG Project:
Tools -> Customizing ->IMG ->Project Administration

click on the Create Project icon at the top of the screen.
Move on to scope, which is the next tab

Save it. Click on project team member
Change the project name as Dinesh and move on to status vals and select status and move into
right as shown below
Save the project and come back to the following screen
Then select SAP reference IMG in the top of the screen to do the configuration part.
2.3.1.2 Define a company
Enterprise Structure -> Definition -> Financial Accounting -> Define Company
Click on New Entries and Enter the following:

Company: BA55
Company Name: BA55
City: CHENNAI
Country: IN
Language Key: EN
Currency: INR
Save.
2.3.1.3 Define Company Code
Enterprise Structure -> Definition -> Financial Accounting -> Edit, copy, delete, check
company code
Note: Copy Currency and G/L Accounts correctly.
Copy, delete, check company code -> choose
Organization object company code -> click on copy organizational object
From company code: 1000

To my company code: BA55
Click No to accept to copy the G/L account company code data.

Click Yes to accept not to allocate a different local currency to target company code.
Click on continue to accept the information that certain data was not copied. Continue clicking
until majority of the tables to be copied. Click on continue to perform transport request. Click on
continue again to be completed.
2.3.1.4 Assign Company Code to Company
Enterprise Structure -> Assignment -> Financial Accounting -> Assign Company Code to
Company
Enter CC05 against the company code CC05

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

BA88 Tabletop Grinders
Save.
2.3.1.6 Define functional area
Enterprise Structure> Definition> Financial Accounting> Define Functional Area
Click on New entries icon and enter the followings:
FA55 ABP Manufacturing

FA66 ABP Sales
FA77 ABP General Admin
FA88 ABP Financial Expenses
FA33 ABP AUC
FA99 ABP Sales Revenue
FA44 ABP Cost of Goods Sold
Save.
2.3.1.7 Define credit control area
Enterprise Structure > Definition > Financial Accounting > Define credit control area
Click on New entries and enter the following:
Credit Control Area: BA55 Credit control area ABP Ltd

Currency: INR
Update: 000012 (Open order value on time axis, delivery and bill.doct value)
Fiscal Year Variant: K4
2.3.1.8 Assign company code to credit control area
Enterprise Structure > Assignment > Financial Accounting > Assign company code to credit
control area
Assign company code BA55 to Credit Control area BA55.
Save.
2.3.1.9 Define Chart of Accounts
Financial Accounting > General Ledger Accounting > G/L Accounts > Master Data >
Preparations > Edit Chart of Accounts List
Click on New entries icon.

Enter the followings:
Chart of Accounts: BA56

Description: Chart of Accounts_ABP Ltd
Controlling integration: as manual creation of cost elements
Save.
2.3.1.10 Assign Company Code to Chart of Accounts
Preparations > Assign Company Code to Chart of Accounts
Find company code BA55 and assign chart of account BA56 for both chart of account field and
country chart of account field.
Save.
2.3.1.11 Copy G/L Accounts
Financial Accounting > General Ledger Accounting > G/L Accounts > Master Data > G/L
Account Creation and Processing> Create G/L Accounts with Reference
Enter company code BA55 and reference company code 1000 which you want to copy from.
Save.
Click on Details icon.
Click on Accounts from reference icon and enter the accounts you want to copy from.
Click on G/L accounts creation icon.
Save.
2.3.1.12 FINANCIAL ACCOUNTING GLOBAL SETTINGS
Enter Global Parameters
Enter Global Parameters
Financial Accounting > Financial Accounting Global Settings > Company code > Enter
Global Parameters
Enter as follows:
Save.
Active Cost of Sales Accounting
Financial Accounting > Financial Accounting Global Settings> Company Code> Cost of
Sales Accounting> Activate Cost of Sales Accounting
Find the company code BA55 and Set to Active.

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

Click on Assign company code/ Company.
On the bottom area, find the company code (BA55) and click on ASSIGN.
Click Continue to accept pop up message.
Find the company code (BA55) on the upper side and click on Assign Activity.
Click on Choose Activity
Copy all the activity and Save.
Enable business area Balance Sheet
Financial Accounting > Financial Accounting Global Settings> Business area> Enable
business area balance sheet
Find company code and tick on the Company code (BA55)

Fiscal Year
Maintain Fiscal Year Variant
Financial Accounting > Financial Accounting Global Settings > Fiscal Year > Maintain
Fiscal Year Variant (Maintain shortened Fisc. Year)
Click on new entries and create fiscal year variant Z1.

Make 12 as ordinary posting period and 4 as special period.
Save.
Assign Company code to a Fiscal Year Variant
Financial Accounting > Financial Accounting Global Settings > Fiscal Year > Assign
Company code to a Fiscal Year Variant
Assign the company code BA55 to the fiscal year variant Z1
Save.
Posting Periods
Define Variants for Open Posting Periods
Financial Accounting > Financial Accounting Global Settings > Document> Posting period>
Define Variants for Open Posting Periods
Click on New entries and enter the following:
BA00 Variant for ABP Ltd
Save.
Open and Close Posting Periods
Financial Accounting > Financial Accounting Global Settings > Document> Posting period >
Open and Close Posting Periods
Click on New entries and enter periods for each account type A, D, K, M, S.
Save.
Assign Variants to Company Code
Financial Accounting > Financial Accounting Global Settings > Document> Posting period >
Assign Variants to Company Code
Assign the variant BA00 to the company code CC05
Save.
Document Number Ranges
Define Document Number Ranges
Financial Accounting > Financial Accounting Global Settings > Document> Document
Number Ranges > Define Document Number Ranges
Enter the company code BA55 and Define number ranges.

Document Header
Define Document types
Financial Accounting > Financial Accounting Global Settings > Document > Document
header > Define Document Types
As document types are pre-defined in SAP, just make sure that Document types are correctly
exist which will be used for the FI process
Document Item
Define Posting keys
Financial Accounting > Financial Accounting Global Settings > Document> Line Item>
Controls> Define Posting Keys
Check posting keys which will be used for the FI process

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

BPS2 Direct Postings for FI: COSTS incl WBS
G001 General (with text, allocation)
G003 Material consumption accounts
G004 Cost accounts
G005 Bank accounts (obligatory value date)
G006 Material accounts
G007 Asset accts (w/o accumulated depreciatn)
G008 Assets area clearing accounts
G009 Bank accounts (obligatory due date)
G011 Clearing accounts (with settlement per.)
G012 Receivables/payables clearing
G013 General (obligatory text)
G014 MM adjustment accounts
G017 Freight/customs provisions/clearing (MM)
G018 Scrapping (MM)
G019 Other receivables/payables
G023 Plant maintenance accounts
G025 Inventory adjustment accounts
G026 Accounts for down payments made
G029 Revenue accounts
G030 Change in stock accounts
G031 Accounts for down payments received
G032 Bank accounts (obligat.value/due dates)
G033 Cost accounts for external services
G036 Revenue accts (with profit center)
G039 Accts for pmnts on acct made for assets
G040 Personnel clearing accounts
G041 Tax office clearing accounts
G045 Goods/invoice received clearing accounts
G049 Manufacturing costs accounts
G050 Customer commission clearing accounts
G052 Accounts for fixed asset retirement
G056 Amortization accounts
G059 Inventory accounting material stock acct
G062 Investment support accounts
G064 Other cost accounts (obligatory text)
G067 Reconciliation accounts
G068 Reconciliatn accts (payables - Austria)
G069 Cost accounts (travel expenses)
G070 Clearing accounts (travel expenses)
G071 Reconcil.accts (KIDNO/foreign payment)
ICCF CO <-> FI reconciliation posting
Z001 Reserves subsequent settlement
Z002 Balance Sheet w. Profit Centre
ZFUN Client Funds
Assign Company Code to Field Status Variants
Controls> Assign Company Code to Field Status Variants
Assign the company code BA55 to field status variant just created BA00
Define Screen Variants for Document Entry
Controls> Screen Variants for Document Entry
Find the company code and proper variants. If withholding tax is used for document entry, click
on 2. This removes withholding tax field when document is entered.
If not used, leave it to standard version.
Define Tolerance Groups for Employees
Financial Accounting > Financial Accounting Global Settings > Document> Line Item >
Click on new entry and enter the followings:
Tolerance group: BA55

Amount per document : 90000000000
Amount per open item account: 90000000000
Cash discount per line item: 5%
Save.
Assign to the tolerance group just created BA55 to the company code BA55
Document default values
Enable Fiscal Year Default
Financial Accounting > Financial Accounting Global Settings > Document> Default Values
for Document Processing> Enable Fiscal Year Default
Choose the company code BA55 and tick on propose fiscal year
Default Value Date
Financial Accounting > Financial Accounting Global Settings > Document> Default Values
for Document Processing> Default Value Date
Choose the company code and tick on propose value date

Recurring Entries
Financial Accounting > Financial Accounting Global Settings > Document> Recurring
Entries> Define Run Schedules
New entry Define Run Schedules as ZBA1

Define Run dates
Financial Accounting > Financial Accounting Global Settings > Document> Recurring
Entries> Enter Run Dates
Choose Run Schedule BA55 and enter the dates

Tax
Check Calculation Procedure
Financial Accounting > Financial Accounting Global Settings> Tax on Sales/Purchases>

Basic Settings> Check Calculation Procedure
Choose Define process

Choose TAXIN
Double click Control data folder on the left side of the screen
Check Condition types. If not exists as followings, create new entries
BASB Base Amount
MWAS Output Tax
MWVZ Non-deduct.Input Tax
MWVS Input Tax
Click on Go back icon.
Choose Define Condition types

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

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

Basic Settings> Assign Country to Calculation Procedure
Find the country IN and assign TAXIN to IN

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

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

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

Enter Input tax account 154000
Find MWS (Output tax) and click on details
Enter chart of Account (BA56)
Enter Output tax account 175000
Enable Business Area Balance Sheet
Financial Accounting> Financial Accounting Global Settings> Business Area> Enable

Business Area Balance Sheet
Find the company code BA55 and tick on Business area FS

2.3.1.13 GENERAL LEDGER ACCOUNTING
G/L Master
Define Accounts Group
Preparations > Define Accounts Group
Find company code BA55 and define account groups as follows:

Financial Accounting > General Ledger Accounting > G/L Accounts > Master Records >
Preparations > Define Retained Earnings Accounts
Under Chart of Account BA55, Transaction: BIL Balance Carry Forward, enter retained
earnings account from the chart of account
P&L Statement Account type Account

X 900000 (Inappropriate retained earnings from previous yr)
Y 10900000 (AR60/Unapp.retained earnings from previous yr)
G/L Line items
Define Line Layout
Financial Accounting > General Ledger Accounting > G/L Accounts > Line Items > Display
Line Item > Define Line Layout
Double click on the line layout and click on Insert after. Choose needed fields and save.
Choose Additional fields
Financial Accounting > General Ledger Accounting > G/L Accounts > Line Items > Line
Item Display > Choose Additional Fields
Enter account type as D (Customer) and click on Insert after. Choose needed fields and save.
Repeat the above step for K (Vendor) and S (G/L account) if needed.
Adjustment Posting Reversal
Permit Negative Posting
Financial Accounting > General Ledger Accounting > Business Transactions > Adjustment
Posting/Reversal > Permit Negative Posting
Find company code BA55 and tick on Negative postings allowed

Define Reasons of Reversal
Financial Accounting > General Ledger Accounting > Business Transactions > Adjustment
Posting/Reversal > Define Reasons of Reversal
Check reason codes and add reasons if needed.

G/L Closing
Prepare Automatic Postings for Foreign Currency Valuation
Financial Accounting > General Ledger Accounting > Business Transactions > Closing >
Valuating > Foreign Currency Valuation > Prepare Automatic Posting for Foreign Currency
Valuation
Double click on Exch. Rate Diff. using Exch. Rate Key, Transaction KDB.
Enter the Chart of Account CA05 and enter the followings:
230000 280000
DEM 230000 280000
FRF 230000 280000
USD 230000 280000
230000: Foreign currency Revaluation losses

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

Loss: 230000 (Foreign currency revaluation losses)
Gain: 280000 (Foreign currency revaluation gains)
Valuation:
Val. Loss 1: 230010 (Expense from currency revaluation)
Val. Gain 1: 280010 (Income from currency revaluation)
Bal. Sheet adj: 144099 (Accounts Receivable- other companies (adj acct.))
Repeat the above the steps for the following accounts:
44000 46000 86100 86200 86300 99000 100009 102009 110002 110005 110009 113101
Go back to the previous screen and double click on Payment difference for altern.currency,
Transaction KDW.
Debit Credit
230030 (Translation differences - foreign currency) 280000(Foreign Currency Revaluation
Gains)
Define Adjustment Accounts for GR/IR Clearing
Reclassify > Define Adjustment Accounts for GR/IR Clearing
Double click on Invoiced but not yet delivered (BNG) and enter the chart of account CA05.
Reconciliation account: 191000, 191100 (Goods Rcvd/Invoice Rcvd)

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

Adjustment account: 191099 (Adjustment GR/IR clearing)
Target account: 191102 (GR/IR: Goods and services not yet invoiced)
Define Financial Statement Versions
Document > Define Financial Statement Versions
Click on New entries and enter the followings:
Financial Statement Version: BA55

Name: Balance sheet ABP Ltd
Maintain Language: EN
Chart of Account: BA56
Save.
G/L Integration
Define Accounts for Materials Management
Financial Accounting > General Ledger Accounting > Business Transactions > Integration >
Materials Management > Define Accounts for Materials Management
Double click on Expense/revenue from consign.mat.consum.(Transaction: AKO)
Valuation Class Account

3000 236000 Losses - consumption for consignment
sale
sale
sale
sale
sale
sale
sale
sale
Double click on Expense/revenue from Expense/revenue from stock transfer (Transaction:

AUM)
Valuation Class Account

3000 235000 Losses - inventory transfer
Double click on Subsequent settlement of provisions (Transaction: B01)
Debit Credit
192700 Bonus provisions (MM) 192700 Bonus provisions (MM)
Double click on Subsequent settlement of revenues (Transaction B02) and enter the accounts to
repeat the above steps.
Debit Credit
281200 Contribution bonus differences 281200 Contribution bonus
differences
Double click on Change in stock account (Transaction BSV)
Valuation Account
class
3000 400020 Material Consumed
7900 893010 Cost of goods sold without cost element
7920 893010 Cost of goods sold without cost element
Double click on Inventory posting (Transaction BSX)
Val.
Class Account
3000 300000 Inventory - Raw Material 1
3030 303000 Operating supplies
3040 304000 Spare Parts
3050 305000 Packaging material
3100 310000 Trading Goods
7900 790000 Unfinished products
790010 Work in process from external
7910 procurement
7920 792000 Finished goods inventory
7925 792500 Finished goods inventory
Double click on Revaluation of other consumables (Transaction COC)

Val.
Class Debit Credit
231099 ML PRD 231099 ML PRD
0001 consumption consumption
Double click on Materials management small differences (Transaction DIF)

Debit Credit
231900 Small price loss - invoice receipt 281900 Small price gains - recepit of
(MM) invoice (MM)
Double click on Purchasing account (Transaction EIN)

Val. Valuation Account
Modif class
0001 3000 379998 Purchase
account
0001 3001 379998 Purchase
account
0001 3030 379998 Purchase
account
0001 3040 379998 Purchase
account
0001 3050 379998 Purchase
account
0001 3100 379998 Purchase
account
0001 7910 379998 Purchase
account
Double click on Purchase offsetting account (Transaction EKG)

Val. Valuation Account
Modif class
0001 3000 379999 Purchase offset account
Double click on Freight clearing (Transaction FR1)

192100 Freight Clearing Account (MM)
Double click on Freight provisions (Transaction FR2)

86100 Freight provision (MM)
Double click on Customs clearing (Transaction FR3)

192300 Customs Duty Clearing Account (MM)
Double click on Customs provisions (Transaction FR4)

86200 Customs provision (MM)
Double click on Purchasing freight account (Transaction FRE)
379998 Purchase account
Double click on External activity (Transaction FRL)
Val.
Class Account
1210 417001 Purchased services
Double click on Incidental costs of external activities (Transaction FRN)
415000 External procurement costs
Double click on Offsetting entry for inventory posting (Transaction GBB)

Val. Gen. Val.
Modif Modif Class Account
0001 AUA 7900 895000 Factory output of production orders
0001 AUA 7910 895000
0001 AUA 7920 895000
0001 AUF 3040 895000
0001 AUF 7900 895000
0001 AUF 7920 895000
0001 AUF 7925 895000
0001 BSA 3100 799999 Inventory (own goods)
0001 BSA 7900 799999
0001 BSA 7920 799999
0001 BSA 7925 799999
0001 INV 3000 233000 Losses - inventory variance
0001 INV 3001 233000
0001 INV 3030 233000
0001 INV 3040 233000
0001 INV 3050 233000
0001 INV 3100 233000
0001 INV 7900 233000
0001 INV 7920 233000
0001 INV 7925 233000
0001 VAX 3000 400000 Consumption, raw material 1
0001 VAX 3001 400020 Materials consumed
0001 VAX 3030 400020
0001 VAX 3040 400020
0001 VAX 3050 400020
0001 VAX 3100 893010 Cost of goods sold (without cost element)
0001 VAX 7900 893010
0001 VAX 7910 893010
0001 VAX 7920 892000 Change in finished products inventory
0001 VAX 7925 892000
0001 VAY 3000 894025 Inventory change - foreign prod.sale w.cost elemnt
0001 VAY 3001 894025
0001 VAY 3030 894025
0001 VAY 3040 894025
0001 VAY 3050 894025
0001 VAY 3100 894025
0001 VAY 7900 894025
0001 VAY 7910 894025
0001 VAY 7920 893015 Cost of goods sold (with cost element)
0001 VAY 7925 893015
0001 VBO 3000 400020 Materials consumed
0001 VBO 3001 400020
0001 VBO 3030 400020
0001 VBO 3040 400020
0001 VBO 3050 400020
0001 VBO 3100 400020
0001 VBO 7900 893020 Inventory change - additions to co. produced goods
0001 VBO 7920 893020
0001 VBR 400000 Consumption, raw material 1
0001 VBR 1210 400000
0001 VBR 3000 400000
0001 VBR 3001 400010 Raw materials consumed 2
0001 VBR 3002 400000
0001 VBR 3003 400000
0001 VBR 3030 403000 Sundry inventory consumed
0001 VBR 3040 404000 Spare Parts
0001 VBR 3050 405000 Packaging materials consumption
0001 VBR 3100 410000 Usage: trading goods
0001 VBR 3200 417000 Purchased services
0001 VBR 3210 400000
0001 VBR 3220 400000
0001 VBR 3300 400000
0001 VBR 3240 400000
0001 VBR 7900 890000 Semi-finished products consumed
0001 VBR 7910 891000 Inventory change work in process
0001 VBR 7920 892000 Change in finished products inventory
0001 VBR 7925 892000
0001 VBR 8100 400000
0001 VBR 8200 400000
0001 VKA 3000 894010 Inventory change - sales OEM products (without CE)
0001 VKA 3001 894010
0001 VKA 3030 894010
0001 VKA 3040 894010
0001 VKA 3050 894010
0001 VKA 3100 894010
0001 VKA 7900 893010 Cost of goods sold (without cost element)
0001 VKA 7910 893010
0001 VKA 7920 893010
0001 VNG 3000 400001 Raw materials scrapped
0001 VNG 3001 400001
0001 VNG 3030 400001
0001 VNG 3040 400001
0001 VNG 3050 400001
0001 VNG 3100 400001
0001 VNG 7900 890001 Scrapped material - own production
0001 VNG 7910 890001
0001 VNG 7920 890001
0001 VQP 3000 237000 Losses - consumption of quality control
0001 VQP 3001 237000
0001 VQP 3030 237000
0001 VQP 3040 237000
0001 VQP 3050 237000
0001 VQP 3100 237000
0001 VQP 7900 237000
0001 VQP 7910 237000
0001 VQP 7920 237000
0001 VQP 7925 237000
0001 VQY 3000 400001 Raw materials scrapped
0001 VQY 3001 400001
0001 VQY 3030 400001
0001 VQY 3040 400001
0001 VQY 3050 400001
0001 VQY 3100 400001
0001 VQY 7900 890001 Scrapped material - own production
0001 VQY 7920 890001
0001 VQY 7925 890001
0001 ZOB 3000 400020 Materials consumed
0001 ZOB 3001 400020
0001 ZOB 3002 400020
0001 ZOB 3030 400020
0001 ZOB 3040 400020
0001 ZOB 3050 400020
0001 ZOB 3100 400020
0001 ZOB 7900 893025 Inventory change - additions to co. produced goods
0001 ZOB 7910 893025
0001 ZOB 7920 893025
0001 ZOF 3000 895000 Factory output of production orders
0001 ZOF 7900 895000
0001 ZOF 7910 895000
0001 ZOF 7920 895000
Double click on Account-assigned purchase order (Transaction KBS)

Debit 81
Credit 91
Double click on Materials management exch.rate diffs (Transaction KDM)

Debit Credit
230000 280000
Double click on MM exchange rate rounding differences (Transaction KDR)

Debit Credit
230000 280000
Double click on Material ledger frm low.levels E/R diff. (Transaction KDV)
Debit Credit
230050 280050
Double click on Consignment payables KON

Gen.
Modif Account
PIP 169900 Accounts Payable - consigment sale
Double click on Accruals and defer.acct(material ledger) (Transaction LKW)
3000 231050
3001 231050
3030 231050
3040 231050
3050 231050
3100 231050
7900 231050
7920 231050 Reconciliation Material ledger
Double click on Price Differences from W/Off WIP (Transaction PRA)

231001 Material ldg single-level price differences (loss)
Double click on Cost (price) differences (Transaction PRD)
General modification Valuation class Account

3000 231000 Loss - price variances
3001 231000
3030 231000
3040 231000
3050 231000
3100 231000
7900 231500 Expense from price difference of own goods
7910 231500
7920 231500
PRA 3000 231000
PRA 3001 231000
PRA 3030 231000
PRA 3040 231000
PRA 3050 231000
PRA 3100 231000
PRA 7900 231500
PRA 7910 231500
PRA 7920 231500
PRF 3000 231000
PRF 3001 231000
PRF 3030 231000
PRF 3040 231000
PRF 3050 231000
PRF 3100 231000
PRF 7900 231500
PRF 7910 231500
PRF 7920 231500
Double click on Price Diff. from WIP Written Off (Mat.) (Transaction PRM)
231002 Material ldg single-level price differences (loss)
Double click on Material ledger fr.low.levels price dif. PRV

231520 281520
Double click on Cost (price) differences (mater.ledger) (Transaction PRY)

0001 231520 281520
0001 231099 231099 ML PRD consumption
Double click on Expense/revenue from revaluation (Transaction RAP)

231080 281080
Double click on Inv.reductions from log.inv.verification (Transaction RKA)

191120 Clearing-invoice reduction
Double click on Neutral provisions (Transaction RUE)

86300 Delivery costs provision (MM)
Double click on Unplanned delivery costs (Transaction UPF)

231600 Unplanned delivery costs
Double click on Input tax (Transaction VST)

154000 Input tax (See account assignment text)
Double click on WIP from Price Differences (Int. Acty) (Transaction WPA)
791000 Products being processed
Double click on WIP from Price Differences (Material) (Transaction WPM)

791000 Products being processed
Double click on GR/IR clearing account (Transaction WRX)

191100 Goods Rcvd/Invoice Rcvd (third party)
Double click on GR/IR clearing acct (mat. ledger) (old) (Transaction WRY)
0001 191110
Integration Sales & Distribution and Financial Accounting (for billing)
Financial Accounting > General Ledger Accounting > Business Transaction > Integration >
Sales and Distribution > Prepare revenue account determination
Choose CustGrp/ MaterialGrp/ AcctKey
Enter the following in the table:

Save and go back to the previous screen.
Repeat the above steps for custgrp/account and matgrp/accout.
Save.
Go back to the previous screen and choose general.

Define the following for sales organization BA01.
Save.
Go back to the previous screen.
Choose Account key and enter the followings:
2.3.1.14 ACCOUNTS RECEIVABLE & ACCOUNTS PAYABLE
Customer Master
Define Account Groups with Screen Layout
Financial Accounting > Accounts Receivable and Accounts Payable > Customer Account >
Master Data >Preparation for creating customer master > Define Account Groups with
Screen Layout (Customers)
Account Group: BA01

Name: Wholesale customer
Maintain field status if needed by double clicking.
Choose Address and click on Details icon.

Make necessary changes.
Assign Number Ranges to Customer Account Groups
Financial Accounting > Accounts Receivable and Accounts Payable > Customer Account >
Master Record >Preparation for creating customer master > Assign Number Ranges to
Customer Account Groups
Acct
Group Name No Ranges
BA02 Wholesale customer ...XX
Save.
Vendor Master
Define Account Groups with Screen Layout
Financial Accounting > Accounts Receivable and Accounts Payable > Vendor Account >
Master Data> >Preparation for creating Vendor master > Define Account Groups with Screen
Layout (Vendors)
Account Group: BA02

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

Transaction ZDI Payment differences by reason
Account 881000 (Unallowed customer discounts)
Define Accounts for Exchange Rate Differences
> Outgoing Payment > Outgoing Payments Global Settings > Define Accounts for Exchange
Rate Differences
Enter the Chart of Account BA56 and enter the accounts for exchange rate differences.
Define Tolerances (Vendors)
> Outgoing Payment > Manual Outgoing Payments > Define Tolerances (Vendors)
Enter the company code BA55 and make new entries.
Tolerance Group: BA55
Assign the tolerance group to the company code.

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

Account 881000 Unallowed customer discounts
A/R & A/P Payment Program
Set Up All Company Codes for Payment Transactions
> Outgoing Payment > Automatic Outgoing Payments > Payment Method/Bank Selection for
Payment Program > Set Up All Company Codes for Payment Transactions
Find the company code BA55 and set up cash discount and tolerance group.
Set Up Paying Company Codes for Payment Transactions
> Outgoing Payment > Automatic Outgoing Payments > Payment Method/Bank Selection for
Payment Program > Set Up Paying Company Codes for Payment Transactions
Find the company code BA55 and set up minimum amount for incoming /outgoing payments.
Decide how Bill of Exchange can be created choose one bill of exchange per due date option.
Set Up Payment Methods per Country for Payment Transactions
> Outing Payment > Automatic Outgoing Payments > Payment Method/Bank Selection for
Payment Program > Set Up Payment Methods per Country for Payment Transactions
Check payment methods for country code IN that it has C (Check), I (Bank transfer- incoming),
O (Overseas payments) and T (Bank transfer).
Set Up Payment Methods per Company Code for Payment Transactions
Financial Accounting > Accounts Receivable and Accounts Payable > Business transactions >
Outgoing Payment > Automatic Outgoing Payments > Payment Method/Bank Selection for
Payment Program > Set Up Payment Methods per Company Codes for Payment Transactions
Find the company code CC05 and check payment methods for the company code which has been
checked the above C, I, O and T.
Set Up Bank Determination for Payment Transactions
Outgoing Payment > Automatic Outgoing Payments > Payment Method/Bank Selection for
Payment Program > Set Up Bank Determination for Payment Transactions
Find the paying company code CC05 and enter ranking order and bank accounts for payment
methods which are C, I, T and O.
Incoming Payment
Define Accounts for Overpayments/Underpayments
Financial Accounting > Accounts Receivable and Accounts Payable >Business transactions >
Incoming Payment> Incoming Payments Global Settings > Define Accounts for
Overpayments/Underpayments
Enter the chart of account CA05 and enter the followings:
Chart of Accounts BA56 Chart of accounts ABP Ltd

Account 881000 Unallowed customer discounts
Define Accounts for Exchange Rate Differences
Incoming Payment > Incoming Payments Global Settings > Define Accounts for Exchange
Rate Differences
Enter the chart of account BA56 and enter the accounts for exchange rate differences in the chart
of account.
Incoming Payment > Manual Incoming Payments > Define Tolerance Groups for Employees
Check if the tolerance group is correctly assigned to the company code CC05 which is created in
earlier stage of the implementation.
Define Tolerances (Customers)
Incoming Payment > Manual Incoming Payments > Define Tolerances (Customers)
Check if the tolerance group is correctly assigned to the company code BA55 which is created
previously. The company code should have 2 tolerance group assigned. One to the tolerance
group, which applies tolerance and the other which does not apply tolerance group.
Down Payment
Define Reconciliation Account for Customer Down Payments
Down Payment Received > Define Reconciliation Account for Customer Down Payments
Choose the chart of account BA55 and enter reconciliation accounts for down payment received
and down payment request.
Account type D (Customer)

Special G/L indicator F (Down payment Request)
Click on Details icon.
Chart of Accounts BA56
Recon. Special
Account Account
140000(Trade Receivables-domestic) 196000 (Payment requests customers)
140010 (Trade Receivables - domestic one-time) 196000 (Payment requests customers)
141000(Trade Receivables foreign) 196000 (Payment requests customers)
141010(Trade Receivables - foreign one-time) 196000 (Payment requests customers)
Special G/L indicator A (Down Payment)
Recon. Special
Account Account
140000(Trade Receivables-domestic) 170000 (Advanced Customer Payments)
140010 (Trade Receivables - domestic one-time) 170000 (Advanced Customer Payments)
141000(Trade Receivables foreign) 170000 (Advanced Customer Payments)
141010(Trade Receivables - foreign one-time) 170000 (Advanced Customer Payments)
Down Payment Made > Define Alternative Reconciliation Account for Down Payments
Choose the chart of account CA05 and enter reconciliation accounts for down payment made and
down payment request.

Account type K (Vendor)
Special G/L indicator F (Down payment Request)
Recon. Special
Account Account
160000(Trade Payable-domestic) 196300 (Payment requests Vendors)
160010 (Trade Payable -domestic one-time) 196300 (Payment requests Vendors)
161000(Trade Payable- foreign) 196300 (Payment requests Vendors)
161010(Trade Payable- foreign one-time) 196300 (Payment requests Vendors)
Repeat the above step for down payment current asset, tangible, intangible assets
Reconciliation Account
Define Alternative Reconciliation Account for Customers
Postings with Alternative Reconciliation account > Other Special G/L Transactions > Define
Alternative Reconciliation Account for Customers

Special G/L indicator E (Reserve for bad debt)
Click on details icon

Recon. Special
Account Account
140000(Trade Receivables-domestic) 142000 (Allowance for doubtful accounts)
140010 (Trade Receivables - domestic one-time) 142000 (Allowance for doubtful accounts)
141000(Trade Receivables foreign) 142000 (Allowance for doubtful accounts)
141010(Trade Receivables - foreign one-time) 142000 (Allowance for doubtful accounts)
Special G/L indicator H (Security Deposit)
Recon. Special
Account Account
140000(Trade Receivables-domestic) 197000 (Accounts Receivable - payment
withheld)
140010 (Trade Receivables - domestic one-time) 197000 (Accounts Receivable - payment
withheld)
141000(Trade Receivables foreign) 197000 (Accounts Receivable - payment
withheld)
141010(Trade Receivables - foreign one-time) 197000 (Accounts Receivable - payment
withheld)
Define Alternative Reconciliation Account for Vendors
Postings with Alternative Reconciliation account > Other Special G/L Transactions > Define
Alternative Reconciliation Account for Vendors

Special G/L indicator G (Guarantee Received)
Click on details icon.

Recon. Special
Account Account
160000(Trade Payable-domestic) 196400 (Guarantees vendors)
160010 (Trade Payable -domestic one-time) 196400 (Guarantees vendors)
161000(Trade Payable- foreign) 196400 (Guarantees vendors)
161010(Trade Payable- foreign one-time) 196400 (Guarantees vendors)
Special G/L indicator H (Security Deposit)
160000(Trade Payable-domestic) 197100 (Accounts Payable - payment withheld)

2.3.1.15 BANK ACCOUNTING
House Bank
Define Housebank
Financial Accounting > Bank Accounting > Bank Accounts > Define House Banks
Define/ Check House banks and its accounts. If needed, add new entries.
Bill of Exchange
Define Alternative Reconcil. Acct Bills/Exch. Receivable
Financial Accounting > Bank Accounting > Business transactions > Bill of Exchange
Transactions > Bill of Exchange Receivable > Post Bill of Exchange Receivable > Define
Alternative Reconcil. Acct Bills/Exch. Receivable

Special G/L ind. B (Bill of exchange received)
Recon. Special
Account Account
140000(Trade Receivables-domestic) 126000 (Bills of exchange receivable)
140010 (Trade Receivables - domestic one-time) 126000 (Bills of exchange receivable)
141000(Trade Receivables foreign) 126000 (Bills of exchange receivable)
141010(Trade Receivables - foreign one-time) 126000 (Bills of exchange receivable)
Special G/L ind. S (Check/ Bill of exchang)
Recon. Special
Account Account
140000(Trade Receivables-domestic) 196200 (Contingent claim for bills of
exchange)
140010 (Trade Receivables - domestic one-time) 196200(Contingent claim for bills of exchange)
141000(Trade Receivables foreign) 196200 (Contingent claim for bills of
exchange)
141010(Trade Receivables - foreign one-time) 196200(Contingent claim for bills of exchange)
Define Alternative Reconciliation. Account Bills of Exchange Payable
Transactions > Bill of Exchange Payable > Create Bill of Exchange Payable > Define
Alternative Reconcil. Acct Bills/Exch. Receivable

Special G/L ind. S (Check/ Bill of exchange)
Recon. Special
Account Account
160000(Trade Payable-domestic) 196200 (Contingent claim for bills of exchange)
160010 (Trade Payable -domestic one-time) 196200 (Contingent claim for bills of exchange)
161000(Trade Payable- foreign) 196200 (Contingent claim for bills of exchange)
161010(Trade Payable- foreign one-time) 196200 (Contingent claim for bills of
exchange)
Define Alternative Reconcil. Account for Reverse Bill/Exch
Transactions > Check/Bill of Exchange > Check/Bill of Exchange Transactions Issued >
Define Alternative Reconcil. Account for Reverse Bill/Exch.

Recon. Special
Account Account
160000(Trade Payable-domestic) 196200 (Contingent claim for bills of exchange)
160010 (Trade Payable -domestic one-time) 196200 (Contingent claim for bills of exchange)
161000(Trade Payable- foreign) 196200 (Contingent claim for bills of exchange)
161010(Trade Payable- foreign one-time) 196200 (Contingent claim for bills of
exchange)
Define Alternative Reconcil. Account for Reverse Bill/Exch
Transactions > Check/Bill of Exchange > Check/Bill of Exchange Transactions Received >
Define Alternative Reconcil. Account for Reverse Bill/Exch.

Special G/L ind. B (Bill of exchange receivable)
Recon. Special
Account Account
140000(Trade Receivables-domestic) 126000 (Bills of exchange receivable)
140010 (Trade Receivables - domestic one-time) 126000 (Bills of exchange receivable)
141000(Trade Receivables foreign) 126000 (Bills of exchange receivable)
141010(Trade Receivables - foreign one-time) 126000 (Bills of exchange receivable)
Recon. Special
Account Account
140000(Trade Receivables-domestic) 196200 (Contingent claim for bills of
exchange)
140010 (Trade Receivables - domestic one-time) 196200(Contingent claim for bills of exchange)
141000(Trade Receivables foreign) 196200 (Contingent claim for bills of
exchange)
141010(Trade Receivables - foreign one-time) 196200(Contingent claim for bills of exchange)
2.3.2 CO
2.3.2.1 CONTROLLING AREA
Maintain controlling area.
Create controlling area to establish cost centre standard hierarchy
Enterprise Structure -> Definition-> Controlling-> Maintain controlling area-> Maintain

Controlling Area
Click on New Entries:

Controlling Area: BA55 (CO Area = CCode)
Name: ABP Ltd
Assignment Control: Controlling area same as company code
Currency type: 10
Currency: INR
Chart of Accounts: BA56
Fiscal Year Variant: Z1
Assign company code to controlling area
Enterprise Structure -> Assignment -> Controlling-> Assign company code to controlling area
Highlight on controlling area BA55. Click on Assignment of company code BA55. Click on
New entries. Enter BA55.
Save.
2.3.2.2 COST CENTRE ACCOUNTING
Activate cost centre accounting in controlling area
Controlling -> Cost centre accounting -> Activate cost centre accounting in controlling area
Highlight on controlling area CC05. Click on Activate components/control indicators. Click

on New entries. Enter the following:
Fiscal year: 2010

Cost centres: Component active
Order Mgt: Component active
Commit Mgt: Component active
Activity Based costing: Component active for parallel and integrated calculation
Insert tick (activate) on all components
Insert tick on All currencies and Variances
Save.
2.3.2.3 STANDARD HIERARCHY
Enter Standard Hierarchy
Controlling -> Cost centre accounting -> Activate cost centre accounting in controlling area
Highlight on controlling area BA55. Click on Details
You will notice an additional item called CCtr Std Hierarchy under other settings. Insert the
value BA55 and enter. Click on Yes to a message Should system CC05 be created as a standard
hierarchy?
Save.
2.3.2.4 COST CENTRE
Create cost centre standard hierarchy
Controlling -> Cost center accounting-> Master Data-> Cost center-> Define standard
hierarchy.
Normally your standard hierarchy is selected by default. If it is different, to choose your standard
hierarchy for the controlling area BA55, use the following menu path:
Extras => Transport standard Hierarchy
Enter the controlling area BA55. Enter.
In your standard hierarchy/controlling Area, choose Create Cost centre. Enter basic data.
Cost Centre: BA01

Name: Production Centre 1
Description: Tyres
Person Responsible: 51038-01
Cost Centre Category: 1 (Production)
In the next screen, Enter
Business Area: BA01

Functional Area: BA55 (ABP Ltd Manufacturing)
Currency: INR
Repeat the above steps for other Cost Centres and Make 4 cost centres BM01, BM02, BM11,
BM22
Cost Centre: BA11

Description: Productioncentre for radial tyres
Business Area: BA01
Currency: INR
Cost Centre: BA02

Description: Tubes
Business Area: BA02
Currency: INR
Cost Centre: BA22

Description: Tubeless tyres
Business Area: BA02
Functional Area: BA55ABP Ltd Manufacturing)
Currency: INR
Save to activate the cost centres created. If you still see the status as red, move back and come
back to see the standard hierarchy. You will notice the status being active (green).
2.3.2.5 COST ELEMENTS
Define Cost Elements
Controlling -> Cost Element accounting-> Master Data-> Cost Elements -> Create Cost
Elements
Choose Create Primary Cost Element

Enter Controlling Are BA55
Enter
Enter Cost Element 890000 and validate date.
Choose Cost Element Category > Choose 1 (Primary costs/Cost-reducing Revenues)

Save.
2.3.2.6 NUMBER RANGES FOR CO DOCUMENTS
Set Number Ranges for CO documents
Controlling -> General Controlling -> Organization -> Maintain Number Ranges for
Controlling Documents
Enter Controlling Area BA55 and click Copy icon.

Copy from Co Area 1000 to BA55.
Accept a message. Enter.

Click Display Interval to check the number ranges
Your screen will be the following:

1. 1. 5 MM
1.5.1 ENTERPRISE STRUCTURE
Set up a Plant
Enterprise Structure -> Definition -> Logistics General -> Define, copy, delete, check plant
Choose -> Copy, delete, check plant
Organization object plant -> Click on copy organizational object

Copy
From plant: 1000
To plant: BA01
The above process is repeated for the second plant (BA02), the third plant (BA03) and the fourth
plant (BM04).
Maintain Storage Location
Enterprise Structure -> Definition -> Materials Management -> Maintain Storage Location
Enter Work Area: BA01
All storage locations will have been copied from plant 1000 to plant BM01. Select all and then
deselect the first 2 storage locations. Delete the selected storage locations.
Modify as follows:
0011 Semi Finished

0012 Finished
Repeat the above process for maintaining storage locations (Semi-Finished and Finished) for
Work Area: Plant BA02, BA03, BA04.
Maintain Purchasing Organization
Enterprise Structure -> Definition -> Materials Management -> Maintain Purchasing
Organization
New Entries defined for Purchasing Organisations:
BA01 CN Purchasing Organisation

BA02 KL Purchasing Organisation
BA03 KA Purchasing Organisation
BA04 AP Purchasing Organisation
Assign Plant to Company Code
Enterprise Structure -> Assignment -> Logistics General -> Assign Plant to Company Code
Click on Assign to assign the plants BA01, BA02, BA03, BA04 to the company code BM02.
Create Purchasing Groups
Materials Management -> Purchasing -> Create Purchasing Groups
Create purchasing groups:
VPG: Vendor Proc Grp

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

To Company Code: BA55
Period: Next month
Fiscal Year: Suitable year
Execute.
1.5.2 ACCOUNT GROUP-VENDOR
Logistic-General ->Business Partner ->Vendor ->Control ->Define Account Groups and Field
Selection(Vendor)
If this is done in FI module, the account groups should exist.

Check the followings.
BA01 Vendors
BA02 Vendors-others
1.5.3 PARTNER FUNCTION
Material Management -> Purchasing->Partner Determination->Partner Roles->Define

Permissible Partner Roles per Account Group
VN Vendor BA01 Vendors

VN Vendor BA02 Vendors-others
1.5.4 VALUATION AREA
Materials Management> Valuation and Account Assignment> Account Determination>

Account Determination Without Wizard> Group Together Valuation Areas
2. 1. 6 PP
2.6.1 ENTERPRISE STURCTURE
Create work centre
Logistics => Production => Master Data => work centre => work centre => Create
(transaction Code: CR01)
Plant: BA55
Work centre: BA01
Work centre category: 0003 (labour)
Enter
Work centre: Labour 1
Person Responsible: 000
Usage: 001 (Only Routing)
Standard Value Key: SAP1
Under Costing tab, enter the cost centre: BA01
Repeat the above steps for other plants BA02, BA03 and BA04
Plant: BA02 Cost Centre: BA11 Work Centre: BA02

2.6.2 MASTER DATA
Create a standard routing for the finished product A-IPBW
Logistics => Production => Master Data => Routings => Routings => Standard Routings =>
Create (transaction Code: CA01)
Material: A-IPBW_01
Plant: BA01
In the next screen, enter:
Usage: 1 (Production)
Status: 4 (General Released)
Create a Bill of Material (BOM) for A-IPBW_01
Logistics => Production => Master Data => Bills of Materials => Bill of Material =>
Material BOM => Create (transaction Code: CS01)
Material: Tyres & Tubes

Plant: BA01
BOM usage: 3
Alternative BOM: 1
Activate MRP
Material Requirements Planning> Planning File Entries> Activate MRP and Set Up Planning
File
Click on MRP
Find plants BA01, BA02, BA03 and BA04 and tick on Activate Requirements planning.
Conclusion
Thus The Implementation of SAP ERP for ABP Limited has been done through
various phases of ASAP Methodologies and it is configured based upon the
companys requirements. Also the requirements could be satisfied with reference to
testing Sales and distribution processes. Unit Testing has been done for various
business transactions.
BIBLIOGRAPHY
WWW.SAPHELP.COM
WWW.SAPLIBRARY.COM
WWW.UAC.SAP.COM
WWW.WIKIPEDIA.COM
WWW.ONESTOPSAP.COM

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IMPLEMENTING SAP ERP FOR ABP Ltd

In partial fulfillment of the requirements

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

PROJECT GUIDE HEAD OF THE MBA

SAP Implementation is the whole of processes that defines a complete method to

The Generic methods consist of the following steps:

1.1 SAP Landscape

1.2 SAP R/3 Overview

The presentation server is actually a program named sapgui.exe. It is usually installed on

1.3Objective of the project

To do the configuration part in FI & CO for ABP Ltd

To study the concepts of preparing business blueprint

To explain about phases of ASAP Methodology

To brief about step by step Realization part of FI , CO & SD

To discuss about the Testing methodologies

To explain about the requirements of ABP Ltd limited

2.1 Project preparation

o Define project goals and objectives

2.2 Business Blueprint

2.2.2 Existing Organisation Structure

ABP Ltd. ABP Ltd. ABP Ltd. ABP Ltd.

2.2.3 Overview of Organizational Structure

BA01 BA11 BA02 BA22

Tyres Production Tubes Tubeless Tyres Cost

Controlling Area Description

Company Code Description

Business Area Description

Cost Centre Description

2.3.1.1 To create an IMG Project:

Tools -> Customizing ->IMG ->Project Administration

Move on to scope, which is the next tab

Click on New Entries and Enter the following:

Note: Copy Currency and G/L Accounts correctly.

Copy, delete, check company code -> choose

Organization object company code -> click on copy organizational object

From company code: 1000

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

Enter CC05 against the company code CC05

Click on New entries icon and enter the followings:

BA77 Tilting Grinders

Enterprise Structure> Definition> Financial Accounting> Define Functional Area

Click on New entries icon and enter the followings:

FA55 ABP Manufacturing

Click on New entries and enter the following:

Credit Control Area: BA55 Credit control area ABP Ltd

Assign company code BA55 to Credit Control area BA55.

Click on New entries icon.

Chart of Accounts: BA56

Enter Global Parameters

Enter Global Parameters

Find the company code BA55 and Set to Active.

Double click on Ledger 0F, Cost of Sales Accountng Ledger.

Find company code and tick on the Company code (BA55)

Maintain Fiscal Year Variant

Click on new entries and create fiscal year variant Z1.

Assign the company code BA55 to the fiscal year variant Z1

Define Variants for Open Posting Periods

Click on New entries and enter the following:

BA00 Variant for ABP Ltd

Assign the variant BA00 to the company code CC05

Define Document Number Ranges

Enter the company code BA55 and Define number ranges.