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SAP FI/CO (Finance and Controlling) Notes


Version: SAP 6.0 ECC
ECC: Enterprise Central Component

SAP FI (Finance): SAP FI supports for external reporting as per their country
legal requirement and prescribed by accounting standards. Accounting
standards are,
1. Indian GAAP (General Accepted Accounting Principles)
2. IFRS (International Financial Reporting Standards)
3. IAS (International Accounting Standards)
4. US GAAP
5. UK GAAP etc
Under SAP FI, we can generate financial statements. Financial statements
consist of Profit and Loss Account, Balance Sheet and Cash Flow Statement

Coverage of SAP FI:


1. General Ledger Accounting
2. Account Payables
3. Accounts Receivables
4. Asset Accounting
5. Bank Accounting
6. Taxes (CIN: Country India Version)
a. Excise Duty
b. Central Sales Tax (CST)

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c. Local Sales Tax (LST)
d. Value Added Tax (VAT)
e. Service Tax
f. Tax Deduct at Source (TDS) (Extended Withholding Tax)
7. Integrations
a. SAP MM (Materials Management)
b. SAP SD (Selling and Distribution)

SAP CO (Controlling): Controlling nothing costing/management accounting.


SAP CO supports for internal reporting as per client requirement. Under
SAP CO, we can generate contribution margin reports, contract margin
reports, budgeting, planning and variance reports

Coverage of SAP CO:


1. Cost Elements
2. Overheads Management
a. Cost Centers
b. Internal Orders
3. Profitability Management
a. Profit Center Accounting
b. Profitability Analysis
4. Product Costing
a. Product Cost Planning
b. Cost Object Controlling (Actual Cost of the Product)

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c. Variance (Difference between Actual cost of the product and
product cost planning)
d. SAP PP Integration (Production Planning)
5. New General Ledger Concepts
a. Document Splitting
b. Segment Reporting (As per IFRS)
c. Ledger Groups (Parallel Books of Accounts)
d. CO-FI Integration

ASAP Methodology (Road Map)


ASAP: Accelerated SAP
ASAP means accelerated SAP. SAP means Systems, Applications and
Products in data processing. Acceleration means speed up the project

Phases in ASAP Road Map:


1. Project Preparation
2. Business Blue Print
3. Realization
4. Finalization
5. Go Live and Support

Project Preparation:
This is first and initial phase of the project where we start project.

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Activities in project preparation1. POC (Proof of concept): Implementation partner will give
demonstration on SAP system how SAP system will work as per client
requirement. Ex: Reliance group wants to implement SAP system.
Reliance Company selected WIPRO Company to implement SAP.
Reliance Company Client
WIPRO Company Implementation Partner
2. Project Charter: Project Charter consists of two teams (Reliance
company team and WIPRO company team). Model project charter as
follows,
Client Team (Reliance)

Implementation Partner Team


(WIPRO)

Project Director

Project Director

Delivery Manager

Delivery Manager

Project Manager

Project Manager

Team Leader

Team Leader

Senior Power User

Senior Consultant

Power User

Consultant

Junior Power User

Junior Consultant

3. Kick off Meeting: This is initial meeting in the project implementation.


This is a interactive meeting between client team and implementation
team
4. Scope of the project: What are the components clients wants to
implement. For ex:
a. SAP FI (Finance)
b. SAP CO (Controlling)
c. SAP MM (Materials Management)

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d. SAP SD (Selling and Distribution)
e. SAP PP (Production Planning)
f. SAP HR (Human Resource Management)
g. SAP Quality
h. SAP CRM (Customer Relations Management)
i. SAP SRM (Supply Relations Management)
j. SAP Basis (System Administrator)
k. SAP ABAP (Advanced Business Application Program) etc
5. Time lines of the Project: For each phase of the project, we maintain
deadlines. For ex: Project duration is 1 Year
Phases of SAP implementation

Duration of Each Phase

Project Preparation

01.01.2011 31.03.2011 (3 Months)

Business Blue Print

01.04.2011 30.06.2011 (3 Months)

Realization

01.07.2011 31.10.2011 (4 Months)

Finalization

01.11.2011 30.11.2011 (1 Month)

Go Live and Support

01.12.2011 31.12.2011 (1 Month)

Note: Project manager will prepare time lines of project and allocate
work to his subordinates as per time lines
6. AS-IS Document: Client employees will prepare AS IS Document. ASIS Document consists of as it is of their existing business. This
document will be submitted to implementation partner team
7.

TO-BE Document: This document will be prepared by implementation


partner team based on AS-IS document which is submitted by Client
employees

8. GAP Analysis Document: This document will be prepared by


implementation partner team based on AS-IS document and TO-BE

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document. GAP analysis document consists of differences between ASIS Document and TO-BE Document

Business Blue Print:


This is second phase of the project where we gather business requirements of
the client by conducting workshops and lead them by Questionnaires. We
document all business requirements and take sign off on the document from
the client. This is to ensure that move forward to next phase

Realization:
This is third phase of the project where we configure/develop/implement the
business requirements of the client in the SAP system. Project manager will
allocate work to the consultants.
Base line configuration: We can configure the business requirements and test
the business requirements
Final Configuration: If there is any modifications, modify configuration and
finalize realization phase

Finalization:
This is fourth phase and penultimate phase in the project. Activities in
finalization phase

End to testing the business requirements

Training to end users (client employees). Generally we follow


Train-the-Trainer concept

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System settings (Ex: Outlook configuration, MS Office, Printers,


Scanners, some other third party tools)

Go Live check

Data migration from existing system to SAP system

Go Live and Support:


This is fifth and last phase in the project where we give system to client.
Client employees will enter data into SAP system. We maintain internal help
desk to give support to client employees, if they have any problems while
posting data in SAP system

How to enter into System:


Double click on SAP Logon on desktop
Click on Log on
Client

800

User

SAPUSER

Password

india123

Language

EN (English)

Enter
Note: Home screen/Initial screen of SAP is SAP Easy Access
Note: SAP Package was developed in 41 languages
Note: If you don't enter language, Default language is English

Client: Client is an organizational unit. Server can be divided into clients.


Each client consists of separate database and separate tables.

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Ex:
100: Development Client
200: Testing/Quality Client
300: Production Client

User: User is an authorization to enter into SAP system and to process


transactions in SAP system. Ex: SAPUSER

SAP Package was developed in screen wise. Each screen has its own name
that is called Transaction code (Tcode)

Every screen consists of


Menu bar
Standard tool bar
Name bar
Application tool bar
Work area
Status bar

Menu bar, Name bar and Application tool bar will be changed screen to
screen.

Standard tool bar is same in every screen, but based on the screen
requirement some buttons are active and some buttons are disabled

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Work area: We process transactions in work area by using menu bar,


standard tool bar and application tool bar

Status bar: System will update status of the transaction


Red Color Message: Error Message (We cant process transactions)
Yellow Color Message: Warning Message (We can ignore warning
message and process transactions)
Green Color Message: Information Message

SAP has given two screens


1. End user screen (SAP Easy Access)
2. Consultant screen (Tcode: SPRO)
SPRO- SAP Project Reference Object

Enterprise Structure
1. Define Company (Group Company)
Definition: Company is an independent organizational unit, which is
registered under commercial law. Under company, we can generate
consolidated financial statements. Financial statements consist of profit and
loss account and balance sheet. Consolidation means clubbing of all sisters
concerns/subsidiary companies financial statements
Ex: TATA Group, Birla Group, Reliance Group etc.

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Path: SPRO - SAP Reference IMG- Enterprise Structure- Definition- Financial
Accounting - Define Company (Tcode: OX15)
Execute
Click on New Entries (F5)
Company
Company name
Street
PO Box
Postal code
City
Country
Language Key
Currency
Save (Ctrl+S)
Prompt for customizing request dialog box will come
Click on create request (F8)
Short Description : Define Company
Enter and enter

Note:
Customizing Request: For every development, we need to create one
customizing request. These requests will be useful for transportation of
developments from one server to other server or one client to other client

2. Define Company code (Sister concern/subsidiary company)


Definition: Company code is an independent organizational unit, which is
registered under Companies Act, 1956. Under company code, we can generate

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financial statements. Financial statements consist of profit and loss account
and balance sheet. Company codes are assigned to company (Group Company)
Ex: Reliance Power Ltd, Reliance Communication Ltd, Reliance Chemicals
Ltd, Reliance Insurance Ltd, Reliance Industries Ltd, Reliance Media Ltd,
Reliance Retail Ltd, Reliance Infrastructure Ltd, etc
Path: SPRO- SAP Reference IMG- Enterprise Structure- Definition- Financial
Accounting- Edit, Copy, Delete, Check Company Code
(Tcode: OX02)
Execute
Double click on Edit Company Code Data
Click on New Entries (F5)
Company Code
Company Name
City
Country
Currency
Language
Save (Ctrl+S)
Title
Name
Search Term
Street
House number
Postal code
City
Country
Enter
Prompt for customizing request dialog box will come
Click on Create request (F8)

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Short Description : Define Company Code
Enter and enter

3. Define Business Area


Definition: Business area nothing but branch. Under business area, we can
generate branch financial statements. Financial statements consist of profit
and loss account and balance sheet. Branch financial statements will be
useful for internal reporting (branch performance)
Path: SPRO- SAP Reference IMG- Enterprise Structure- Definition- Financial
Accounting- Define Business Area (Tcode: OX03)
Execute
Click on New Entries (F5)
Business Area

Description

Save (Ctrl+S)
Prompt for customizing request dialog box will come
Click on Create Request (F8)
Short Description : Define Business Area
Enter and enter

4. Assign company code to company


Definition: All company codes (sister concerns/subsidiary companies) are
assigned to company (Group company)

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Path: SPRO- SAP Reference IMG- Enterprise Structure- AssignmentFinancial Accounting- Assign company code to company (Tcode: OX16)
Execute
Click on position button
Company code
Enter
Company
Save (Ctrl+S)
Prompt for customizing request dialog box will come
Click on Create Request (F8)
Short Description : Assign company code to company
Enter and enter

5. Define Fiscal Year Variant


Definition: Fiscal year nothing but financial year. Every company has to
maintain financial year as per their country legal requirement. Fiscal year
consists of 12 normal months and 4 special periods. Special periods will be
useful for adjustment of accounts after closing financial year. System can
understand calendar year (January to December). System can not understand
other than calendar year (April to March, July to June and October to
September). We need to explain to the system
For Ex: 2011 2012 (April to March)
In 2011, 9 months (April to December) will come and in 2012, 3 months
(January to March) will come

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If you convert 3 months of 2012 to 2011, we can say financial year 2011. We
put against each month of 2012 (-1)
Otherwise
If you convert 9 months of 2011 to 2012, we can say financial year 2012. We
put against each month of 2011 (+1)
This concept is called Year Shift
If you do business less than one year, we can say shortened financial year.
Life time of the company it will come once (In establishing year)
Important Notes:
Year Shift
Special periods
Shortened financial year
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Ledgers- Fiscal Year and Posting PeriodsMaintain Fiscal Year Variant (Maintain Shortened Fisc. Year) (Tcode: OB29)
Execute
Click on New Entries (F5)
FV (Fiscal Year Variant)
Description

April to March

Number of posting periods

12

No. of Special periods

Enter
Select Variant
Double click on Periods Folder
Click on New Entries (F5)
Month

Day

Period

Year Shift
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4

30

31

30

31

31

30

10

31

11

30

12

31

31

10

-1

28

11

-1

31

12

-1

Double click on Period Texts Folder


Click on New Entries (F5)
Language

Period

Txt

Text

EN

APR

April

EN

MAY

May

EN

JUN

June

EN

JUL

July

EN

AUG

August

EN

SEP

September

EN

OCT

October

EN

NOV

November

EN

DEC

December

EN

10

JAN

January

EN

11

FEB

February

EN

12

MAR

March

Save (Ctrl+S)
Prompt for customizing request dialog box will come
Click on Create Request (F8)
Short Description : Define Fiscal Year Variant
Enter and enter

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6. Assign company code to fiscal year variant


Path: Same path (Tcode: OB37)
Execute
Click on position button
System will through following warning message: No postings are possible
without fiscal year variant
Ignore warning message
Keep on enter until company code dialog box will come
Company code
Enter
Fiscal year variant
Save (Ctrl+S)
Prompt for customizing request dialog box will come
Click on Create Request (F8)
Short Description : Assign company code to fiscal year variant
Enter and enter

Note:
Variant nothing but variable. Variant can be used anywhere if it is necessary

One variant can be assigned to all company codes, which are having same
financial year

Create following financial years


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January to December (Calendar year)
July to June
October to September

7. Define posting period variant


Definition: In posting period variant, we can open and close posting periods
and year. We can post transactions in respective opened posting periods
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Ledgers- Fiscal Year and Posting PeriodsPosting Periods- Define Variants for Open Posting Periods (Tcode: OBBO)
Execute
Click on New Entries (F5)
Variant
Name
Save (Ctrl+S)
Prompt for customizing request dialog box will come
Click on Create Request (F8)
Short Description : Define variants for open posting periods
Enter and enter

8. Assign Variants to Company Code


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Ledgers- Fiscal Year and Posting PeriodsPosting Periods- Assign variants to company code (Tcode: OBBP)
Execute

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Click on Position button
Company Code
Enter
Variant
Save (Ctrl+S)
Prompt for customizing request dialog box will come
Click on Create Request (F8)
Short Description : Assign variants to company code
Enter and enter

Note:
One variant can be assigned to more than one company code also which are
having same financial years

9. Open and Close Posting Periods


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Ledgers- Fiscal Year and Posting PeriodsPosting Periods- Open and Close Posting Periods (Tcode: OB52)
Execute
Click on New Entries (F5)
Var.

From

To

From

Acct

Account Per.1

Year

To

Year

period

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Save (Ctrl+S)
Prompt for customizing request dialog box will come
Click on Create Request (F8)
Short Description : Open and close posting periods
Enter and enter

Note:
A (Account type): In SAP system, account types as follows
+ = Valid for all account types
A = Assets
D = Customers
K = Vendors
M = Materials
S = G/L Accounts
V = Contract Accounts
Always better to open and close posting periods for all account types (+ =
Valid for all account types)

10.Define Document Types


Definition: Document type means to differentiate business transactions.
Business transactions are Customer invoice, Vendor Invoice, Customer
incoming payment, Vendor outgoing payments, General posting, Depreciation
posting, Goods Receipt, Goods Issue etc. For every business transaction, we

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maintain document type. For every document type, we maintain document
number ranges. Document type controls Number ranges and account types.
Ex:
Sl.No Document

Description

type

Number

From

range

number

To number

SA

General posting

01

0100000000 0199999999

KR

Vendor Invoice

19

1900000000 1999999999

KZ

Vendor out going payment

15

1500000000 1599999999

KA

Vendor Document

17

1700000000 1799999999

KG

Vendor Credit memo

17

1700000000 1799999999

DR

Customer invoice

18

1800000000 1899999999

DZ

Customer incoming payment

14

1400000000 1499999999

DA

Customer Document

16

1600000000 1699999999

DG

Customer Credit Memo

16

1600000000 1699999999

10

AF

Depreciation

04

0400000000 0499999999

Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial


Accounting Global Settings (New)- Document- Define Document Types - Define
Document Types for Entry View (Tcode:OBA7)
Execute
Click on Position button
Document type

: SA (G/L Account Document)

Enter
Select SA
Click on Details (Ctrl+Shift+F2)
Observe number range 01 in SA document type
Click on Number range information
Company Code

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Note:
Display Interval: It shows what are the intervals we created
Status button: we can see, how many numbers we used against interval
Change intervals: Create new interval or Change existing intervals
Click on Change Interval
Click on Insert Interval (Shift+F1)
No

01

Year
From number

0100000000

To Number

0199999999

Enter
Save (Ctrl+S) and enter
Note:
Current number: System will update recently posted document number as
current number
Ext (Externally): If you select this indicator, we need to give document
numbers externally (manually) while posting transactions. If you dont set
this indicator, system will allocate document numbers internally
(Automatically)
Note:
We maintain document numbers every year

11.Define Field Status Variants


Definition: Field status variant controls transactional data. Field status
variant consists of Field status groups. Field status groups consist of Fields.
Against each field, we can select either suppress entry, optional entry or
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required entry. Field status variant assigned to company code. Field status
group is assigned to General ledger master record
At the time of entry the system gives 70 fields
Ex: Quantity, Business area, value date, text etc
You can make any field as
1. Suppress field Field will not be visible.
2. Required field To enter the values.
3. Optional field Choice to enter or not enter.
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Ledgers- Fields - Define Field Status
Variants (Tcode:OBC4)
Execute
Select 0001
Click on Copy as (F6)
Replace 0001 to _________
Enter
Click on Copy All
Enter
Save and enter
Select Variant
Double click on field status Groups
Double click on G005
Double click on Payment transactions
Select value date as optional mode

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Save (Ctrl+S)

Note: Value date nothing but check clearing date

12.Assign Company Code to Field Status Variants


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Ledgers- Fields - Assign Company Code to
Field Status Variants (Tcode: OBC5)
Execute
Click on position button
Company Code
Enter
Fld.stat.var
Save and enter

Note:
Field status variant can be assigned to more than one company code

13.Edit Chart of Accounts List


Definition: Chart of Accounts means list of G/L Accounts. Ex: Expenses,
Incomes, Liabilities and Assets
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New) - Master Data- - G/L Accounts - Preparations- Edit
Chart of Accounts List (Tcode:OB13)
Execute
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Click on New Entries (F5)
Chart of accounts
Description
Maint.language

EN English

Length of G/L Account number

Save and enter

Note:
Maint.language, Language in which the chart of accounts is created.
All accounts have a description in this language. Master data can only be
displayed or maintained in this language. If you carry out functions with the
account, the account name can be displayed both in the maintenance
language and in the available alternative languages.

Length of G/L account number, for every general ledger we need to allocate
one unique number. If you maintain length of G/L account number 6, we can
allocate 6 digits number to our general ledgers. We can maintain maximum
10 digit number in SAP system

Blocked, If you set this indicator you cant create general ledger master
records in our chart of accounts

14.Define Account Group


Definition: List of G/L Accounts will be segregated into account groups. Ex:
Liabilities, Assets, Incomes and Expenses. Account Group controls fields in

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the general ledger master record and number ranges for general ledger
master record. We can create N number of account groups in SAP system
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New)- Master Data- G/L Accounts- Preparations- Define
Account Group (Tcode: OBD4)
Execute
Click on New Entries (F5)
Chrt/Accts

Acct Group
LIAB

Name
Liabilities

From acct
100000

To Account
199999

ASST

Assets

200000

299999

INCO

Incomes

300000

399999

EXPN

Expenses

400000

499999

Save (Ctrl+S) and enter

15.Define Retained Earnings Account


Definition: Retained Earnings Account is a bridge to flow the profit or loss to
the balance sheet.
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New)- Master Data- G/L Accounts- Preparations- Define
Retained Earnings Account (Tcode: OB53)
Execute
Chart of accounts
Enter
P&L statmt acct type

Account

100100

Save (Ctrl+S)
It gives the Message, Account 100100 not created in chart of Accounts
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Ignore warning messages
Enter

16.Assign Company Code to Chart of Accounts


Path: SPRO- SAP Reference IMG- Financial Accounting - General Ledger
Accounting- G/L Accounts- Master Data- Preparations- Assign Company
Code to Chart of Accounts (Tcode:OB13)
Execute
Click on position button
Company Code
Enter
Chrt/Accts
Save and enter

17. Define Tolerance Groups for G/L Accounts


Definition: For G/L account clearing, tolerance groups define the limits within
which differences are accepted and automatically posted to predefined
accounts. The groups defined here can be assigned in the general ledger
account master record.
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New)- Business Transactions- Open Item ClearingClearing Differences- Define Tolerance Groups for G/L Accounts
(Tcode:OBA0)
Execute
Click on New Entries (F5)

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Company Code
Debit posting

Percentage

Credit posting

Percentage

Save and enter

18.Define Tolerance Groups for Employees


Definition: SAP system is high secured system. We can give authorizations
to each employee or group of employees
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New)- Business Transactions- Open Item ClearingClearing Differences- Define Tolerance Groups for Employees (Tcode: OBA4)
Execute
Click on New Entries (F5)
Company Code
Upper limits for posting procedures
Amount per document

99999999

Amount per open item account item

99999999

Cash discount per line item


Permitted payment differences

Amount

Percent

Revenue

Expenses

Save (Ctrl+S) and enter

19.Assign Country to Calculation Procedure


Definition: We calculate taxes as per country legal requirement. Tax
procedure will be assigned to country. Calculation procedures containing the

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necessary specifications for the calculation and posting of taxes on
sales/purchases have already been defined in the standard SAP system for
certain countries. We discuss tax procedure in later discussions [SAP MM
(Materials Management) and SAP SD (Selling and Distribution) Integration ]
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Tax on Sales/Purchases- Basic SettingsAssign Country to Calculation Procedure (Tcode: OBBG)
Execute
Click on position button
Country

IN (India)

Enter
Proc

TAXD

Save (Ctrl+S) and enter

20.Deactivate Document splitting


Explanation: We discuss document splitting in controlling area. If you
activate document splitting, following error message will come while posting
transactions There is no item category assigned to account
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New)- Business Transactions- Document SplittingActivate Document Splitting
Execute
Double click on Deactivation per company code folder
Go to position button
Company code

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Enter
Select Inactive
Save (Ctrl+S) and enter

G/L Master Records


Definition:
G/L account master records contain the data that is always needed by the
General Ledger to determine the account's function. The G/L account master
records control the posting of accounting transactions to G/L accounts and the
processing of the posting data
Structure of G/L Master Record:
G/L account master records are divided into two areas so that company codes
with the same chart of accounts can use the same G/L accounts

Chart of accounts area

The chart of accounts area contains the data that is valid for all company
codes, such as the account number.

Company code specific area

The company code specific area contains data that may vary from one
company code to another, such as the currency in which the account may be
posted.

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Creation of G/L Master Record


Path: Accounting - Financial Accounting - General Ledger - Master Records G/L Accounts - Individual Processing - FS00 - Centrally (Tcode:FS00)
Double click on FS00 - Centrally
1. Share Capital A/C
G/L Account

100000

Company Code
Click on Create
Go to Type/Description Tab
Account Group

LIAB Liabilities

Select Balance Sheet Account


Short Text

Share Capital A/C

G/L Acct Long Text

Share Capital Account

Go to Control Data Tab


Account Currency

INR (Indian Rupees)

Select Only Balances in local crcy


Select Line item display

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Sort Key

001 (Posting Date)

Go to Create/bank/interest Tab
Field Status Group

G001

Save

2. Bank Account
G/L Account

290100

Company Code
Click on Create
Go to Type/Description Tab
Account Group

ASST Assets

Select Balance Sheet Account


Short Text

Bank A/C

G/L Acct Long Text

Bank Account

Go to Control Data Tab


Account Currency

INR (Indian Rupees)

Select Only Balances in local crcy


Select Line item display
Sort Key

001

Go to Create/bank/interest Tab
Field Status Group

G005

Select Relevant to cash flow


Save

3. Rent A/C
G/L Account

400010

Company Code
Click on Create

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Go to Type/Description Tab
Account Group

EXPN Expenses

Select P&L Statement Acct


Short Text

Rent A/C

G/L Acct Long Text

Rent Account

Go to Control Data Tab


Account Currency

INR (Indian Rupees)

Select Only Balances in local crcy


Select Line item display
Sort Key

001 (Posting Date)

Go to Create/bank/interest Tab
Field Status Group

G001

Save

4. Interest Income A/C


G/L Account

300010

Company Code
Click on Create
Go to Type/Description Tab
Account Group

INCO Incomes

Select P&L Statement Acct


Short Text

Interest Income A/C

G/L Acct Long Text

Interest Income Account

Go to Control Data Tab


Account Currency

INR (Indian Rupees)

Select Only Balances in local crcy


Select Line item display
Sort Key

001

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Go to Create/bank/interest Tab
Field Status Group

G001

Save

Notes:
Account Currency: The account currency indicates the currency in which this
account is held. If a currency other than the company code currency is
specified, users can only post items in that currency to this account. If the
company code currency is specified, users can post items in any currency to
this account.

Only balances in local crcy: Only balances in local crcy indicate that balances
are updated only in local currency when users post items to this account.
Local currency nothing but company code currency

Line item display: If you set this indicator, we can see ledger balances each
line item wise and balance. If you dont set this indicator, we can see ledger
balances only balance amount.

Sort Key: Based on sort key, we can sort data in the ledger. For ex: posting
date is the sort key that is assigned in general ledger. We can see ledger
balances each posting date wise

Posting Key

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Definition: In this activity you define posting keys. Users specify a posting key
before entering a line item. The posting key controls how the line item is
entered and processed.
For each posting key, you define among other things:

which side of an account can be posted to (Debit or Credit),

which type of account can be posted to (Customers, Vendors, G/L


Account, Assets or Material), and

Which fields the system display on the entry screens and whether an
entry must be made (field status)?

Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial


Accounting Global Settings (New)- Document- Define Posting Keys
(Tcode: OB41)
Execute
Double click on 40 posting key and observe parameters in posting key

SAP has given following standard posting keys


Posting key in General Ledger Component

Posting keys in Accounts Payables

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Posting keys in Accounts Receivables

Posting Keys in Asset Accounting


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General Posting
1. General posting
Path: Accounting - Financial Accounting - General Ledger - Posting - FB50 Enter G/L Account Document (Tcode: FB50)
Double click on FB50 - Enter G/L Account Document
Click on Company code (F7)
Company code
Enter
Document date
G/L acct

D/C

Amount in doc. Curr

Value date

290100

S Debit

25000

11.10.2011

100000

H Credit

25000

Post (Ctrl+S)
Go to Menu bar
Document Display
We can see entry

Note:
Document Date: The document date is the date on which the original
document was issued

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Posting Date: Date which is used when entering the document in Financial
Accounting or Controlling

Currency: In which currency you are posting document in the System that
currency is called Document currency

Reference: The reference document number can contain the document number
of the customer/vendor. However it may contain a different value. The
reference document number is used as a search criterion when displaying or
changing documents. In correspondence, the reference document number is
sometimes printed in place of the document number. Enter the number
specified by the business partner. If the document was created in-house and
you do not know the business partner document number, you can copy the
document number into the reference number field by entering "*".
Doc.Header Text: The document header text contains explanations or notes
which apply to the document as a whole, that is, not only for certain line
items

Cross company code number: In cross-company code document entry, several


documents are created in different company codes. A common transaction
number indicates that the documents belong together logically. The
transaction number can be assigned by the system or manually. The system
creates the number from the document number, company code and fiscal
year. Ex:

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Document number

0003

Company code
Fiscal year

0000004711

11

The automatically created document number reads 0000004711000311


Exchange Rate: Exchange rate used for the translation between foreign
currency and local currency
Translation date: Translation date for determining the exchange rate which
is to be used for translation. The exchange rates are stored in the system

2. Document Display
Path: Accounting - Financial Accounting - General Ledger - Document - FB03
- Display (Tcode: FB03)
Double click on FB03 - Display
Click on Document list (Shift+F8)
Company Code
Document type

SA (G/L Account Document)

Execute (F8)
Double click on document no.

3. Display ledger balances


Path: Accounting - Financial Accounting - General Ledger - Account - FS10N
- Display Balances (Tcode: FS10N)
Double click on FS10N - Display Balances
G/L Account
Company Code

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Fiscal year
Execute (F8)
We can see balance carry forward to this year and each period wise, debit,
credit, balance and cumulative balance

Foreign Currency
1. Maintain Exchange Rates
Path: Accounting- Financial Accounting- General Ledger- EnvironmentCurrent Settings- S_BCE_68000174 - Enter Translation Rates
(Tcode: S_BCE_68000174 or OB08)
Double click on S_BCE_68000174 - Enter Translation Rates
Click on New Entries (F5)
ExRt

Valid from

From

Dir.Quot.

To

03.11.2011

USD

45

INR

03.11.2011

EUR

75

INR

03.11.2011

AUD

40

INR

03.11.2011

GBP

80

INR

Save (Ctrl+S) and enter

2. Post with foreign currency


Path: Accounting - Financial Accounting - General Ledger - Posting - FB50 Enter G/L Account Document (Tcode: FB50)
Double click on FB50 - Enter G/L Account Document
Click on Company code (F7)
Company code
Enter

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Document date
Currency

USD (USA Dollar)

Go to Details tab
Observe Exchange rate which is proposed by System

G/L acct

D/C

Amount in doc. Curr

290100

S Debit

1000

100000

H Credit

1000

Value date

Post (Ctrl+S)
Go to Menu bar
Document Display
Click on Display currency (We can see document in document currency and
local currency)

Note:
Document currency: In which currency we are posting document. Ex: USD
Local currency: Local currency nothing but company code currency which is
maintained in company code creation. Ex: INR

Hold Documents
Definition: When you are entering data, you may be interrupted, or you may
not have all the data you need for entering a document.
In this case, you can temporarily save the data you have entered, and then
continue with the document entry at a later time. If you want the system to
hold a document, it does not have to be complete. Account balances are not

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updated and the document data is not available for evaluation. A document
number is not assigned.

1. Create Hold Document (Tcode: FB50)


Click on Company code (F7)
Company code
Enter
Document date
G/L acct

D/C

Amount in doc. Curr

Value date

290100

S Debit

25000

11.10.2011

100000

H Credit

25000

Click on Hold (F5)


Temporary Document number
Enter

2. If get following message while creating held document Held


documents must be converted: read long text (Tcode: SE38)
Program

RFTMPBLU

Execute (F8)
Execute (F8)
Note:
RFTMPBLU is a standard program for held documents. We need to activate
this program, and then only we can create held documents. This type of error
will not come in real time

3. Post held Documents (Tcode: FB50)

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Click on Company code (F7)
Company code
Enter
Click on Tree on (Shift+F1)
Now opens tree pane
Open Held documents
Choose held document (which document you want to post)
Click on Item not checked (Red color Cross Button before line item)
Information dialog box will come
No errors exist for this item
Enter
Post (Ctrl+S)
Click on Refresh tree (Shift+F7)

Parking Documents
Definition: You can use document parking to enter and store (park)
incomplete documents in the SAP System without carrying out extensive
entry checks.
Parked documents can be completed, checked, and then posted at a later date
- if necessary by a different accounting clerk.
When documents are parked, data (for example, transaction figures) is not
updated.
Data from parked documents can however be used for evaluations by the
system. For example, amounts from parked invoices can be used for the

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advance return for tax on sales and purchases. Using payment requests,
parked invoices can be paid punctually and without loss of discount.

1. Create three parked documents


Path: Accounting- Financial Accounting- General Ledger- Posting- FV50 Edit or Park G/L Document (Tcode: FV50)
Click on Company Code (F7)
Company code
Enter
Document date
G/L Acct

D/C

Amount in doc. Curr

Value date

290100

S Debit

25000

12.10.2011

100000

H Credit

Post (Ctrl+S)

2. Post/Delete parked documents


Path: Accounting- Financial Accounting- General Ledger- Posting- FV50 Edit or Park G/L Document (Tcode: FV50)
Click on Company Code (F7)
Company code
Enter
Document date
Click on Tree on (Shift+F1)
Now opens Tree Pane
Open Parked documents tree
Choose parked document (which parked document you want to post)

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If you want to post parked document
Go to Menu bar
Document Post
If you want to delete parked document
Go to Menu bar
Document Delete parked document
Click on Yes
If you want to park document to his superior
Go to Menu bar
Document Park
Screen Variants
Screen variant is used to post transactions while posting transactions, what
are the fields user is entering. Based on client requirement we can develop
our own fields
1. Create Screen Variant
Path: Accounting - Financial Accounting - General Ledger - Posting - FB50 Enter G/L Account Document (Tcode: FB50)
Double click on FB50 - Enter G/L Account Document
Go to Menu bar
Edit Screen Variant Create Screen Variant
Transaction Code

FB50

Go to Screen Variants Tab


Screen Variant
Program

SAPLFSKB

Screen

0100

Click on Create (F5)


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Document date
Post (Ctrl+S)
Enter
Select all fields invisible except following fields
Status
G/L Acct
D/C
Amount in Doc. Curr
Value date
Text
Business Area
Click on Exit and Save
Save (Ctrl+S)
Click on Local Object (F7)

2. Add Screen Variant (Tcode: FB50)


Click on Tree on (Shift+F1)
Now opens tree pane
Choose screen variant for items
Mouse right click
Screen Variants Add Screen Variant
Variant
Enter
Choose your variant and post transactions

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Reference Documents

Account Assignment Models


Account assignment models are templates to post transactions.
1. Create Account Assignment Models (Tcode: FB50)
Click on Company Code (F7)
Company code
Enter
Document date

13.10.2011

G/L Acct

D/C

Amount in doc. Curr

290100

S Debit

25000

100000

H Credit

Go to Menu bar
Edit Acct Assignment Templates Save Account Assignment Template
Acct asst temp
Enter

2. Post with Account Assignment Models (Tcode: FB50)


Click on Tree on (Shift+F1)
Now opens tree pane
Open Account Assignment Templates Tree
Choose your template and post transactions

Sample Documents
Sample documents also templates like account assignment models. Following
are differences between sample documents and account assignment models

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Sample documents are year dependent but account assignment models


are used life time of the company

We can not sample documents without amount but we can create


account assignment models without amounts also

We can give sample documents numbers internally or externally but


Account assignment models only externally

1. Maintain number ranges for Sample documents


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Document- Document Number RangesDocuments in Entry View- Define Document Number Ranges for Entry View
(Tcode: FBN1)
Execute
Company Code
Click on change interval
Click on Insert interval (Shift+F1)
No

X2

Year
From Number

0002000000

To Number

0002999999

Enter
Save and enter

2. Create Sample document


Path: Accounting - Financial Accounting - General Ledger - Posting Reference Documents - F-01 - Sample Document (Tcode:F-01)
Double click on F-01 - Sample Document

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Document Date

Type

Company Code

Posting Date

Period

Currency/Rate

PstKy

40 (Debit)

Account
Enter
Amount

30000

PstKy

50 (Credit)

Account
Enter
Amount

Post (Ctrl+S)

3. Post with Sample documents (Tcode: FB50)


Click on Company code (F7)
Company code
Enter
Document date
Go to Menu bar
Goto post with reference
Document number
Company code
Fiscal year
Enter and enter
Post (Ctrl+S)
Enter

Recurring Documents

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Definition: Recurring documents means regular transactions. We post every
month in a fixed date and with fixed amount (same amount). Ex: Rent,
Insurance Premiums, Bank Installments etc
1. Maintain number ranges for recurring document
(Tcode: FBN1)
Company Code
Click on change interval
Click on Insert interval (Shift+F1)
No

X1

Year
From Number

0001000000

To Number

0001999999

Enter
Save (Ctrl+S) and enter

2. Create Recurring documents


Path: Accounting - Financial Accounting - General Ledger - Posting Reference Documents - FBD1 - Recurring Document (Tcode: FBD1)
Company Code
First run on
Last run on
Interval in months
Document type

SA (G/L Account document)

PstKy

40 (Debit)

Account

400010 (Rent A/C)

Enter
Amount

25000

PstKy

50 (Credit)

Account

290100 (Bank A/C)


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Enter
Amount

Save (Ctrl+S)

3. Post recurring documents


Path: Accounting - Financial Accounting - General Ledger - Periodic
Processing - Recurring Entries - F.14 - Execute (Tcode: F.14)
Company Code
Document number

:
From

To

9999999999

From

To

Settlement period
Batch input session name
Execute (F8)
Go to Menu bar
System - services - Batch Input - sessions
Select Session
Click on process (F8)
Select display errors
Enter
Click on Exit Batch input

4. Document Display (Tcode: FB03)

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Balance Interest Calculation
Scenario:
Loan taken from SBI Bank

1000000

Interest on Loan

15%
Rs

Formulae

1000000.0
01.04.2011

Loan Taken from bank

30.04.2011

Interest on loan

0
12328.77 (1000000X15%X30/365)
1012328.7

01.05.2011

Loan balance

31.05.2011

Interest on loan

7
12896.79 (1012328.77X15%X31/365)
1025225.5

01.06.2011

Loan balance

01.06.2011

Repayment of Loan

200000.00

01.06.2011

Loan balance

825225.56

30.06.2011

Interest on loan

01.07.2011

Loan balance

10174.01 (825225.56X15%X30/365)
835399.57

1. Define Interest Calculation Types


Path: SPRO- SAP Reference IMG- Financial Accounting(New)- General
Ledger Accounting(New)- Business Transactions- Bank Account Interest
Calculation- Interest Calculation Global Settings- Define Interest Calculation
Types (Tcode:OB46)
Execute
Click on New Entries (F5)
Int ID
Name

Balance Interest

Int calc.type

S Balance Interest Calculation

Save (Ctrl+S) and enter


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2. Prepare Account Balance Interest Calculation


Definition: We maintain parameters for interest calculation indicator; how
you want calculate interest on loan
Path: Same path (Tcode: OBAA)
Execute
Click on New Entries (F5)
Int.calc.Indicator
Interest calc.freq

Calendar type

Select Balance plus int


Save and enter

3. Define Reference Interest Rates


Definition: Reference Interest Rate nothing but interest Rate
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - General
Ledger Accounting (New) - Business Transactions- Bank Account Interest
Calculation- Interest Calculation- Define Reference Interest Rates
(Tcode: OBAC)
Execute
Click on New Entries (F5)
Ref.int.rate
Long Text
Description
Date from
Currency

INR

Click on Next Entry (F8)


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Ref.int.rate
Long Text
Description
Date from
Currency

INR

Save (Ctrl+S) and enter

4. Define Time-Dependent Terms


Path: SPRO- SAP Reference IMG- Financial Accounting (New) - General
Ledger Accounting (New) - Business Transactions- Bank Account Interest
Calculation- Interest Calculation- Define Time-Dependent Terms
(Tcode: OB81)
Execute
Click on New Entries (F5)
Int.calc.indicator
Currency key

INR

Eff.from
Sequential number

Term

Credit interest: balance interest calc.

Ref.interest rate
Click on Next Entry (F8)
Int.calc.indicator
Currency key

INR

Eff.from
Sequential number

Term

Debit interest: balance interest calc.

Ref.interest rate
Save and enter

5. Enter Interest Values


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Path: SPRO- SAP Reference IMG- Financial Accounting (New) - General
Ledger Accounting (New) - Business Transactions- Bank Account Interest
Calculation- Interest Calculation- Enter Interest Values (Tcode: OB83)
Execute
Click on New Entries (F5)
Reference

Valid from

Int.Rate

Save (Ctrl+S) and enter

6. Creation of G/L Accounts (Tcode:FS00)


a. Interest Expense A/C
G/L Account

400080

Company Code
Click on Create
Go to Type/Description Tab
Account Group

EXPN Expense

Select P&L statement acct


Short Text

Interest Expenses A/C

G/L Acct Long Text

Interest Expenses Account

Go to Control data Tab


Select only balances in local crcy
Select Line item display
Sort Key

001

Go to Create/Bank/Interest Tab
Field status group

G001

Save

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b. SBI Term Loan Account
G/L Account

100500

Company Code
Click on Create
Go to Type/Description Tab
Account Group

LIAB Liabilities

Select Balance sheet Account


Short Text

SBI Term Loan A/C

G/L Acct Long Text

SBI Term Loan Account

Go to Control data Tab


Select only balances in local crcy
Select Line item display
Sort Key

001

Go to Create/Bank/Interest Tab
Field status group

G001

Interest Indicator
Save (Ctrl+S)

7. Assign G/L Accounts


Path: SPRO- SAP Reference IMG- Financial Accounting(New)- General
Ledger Accounting(New)- Business Transactions- Bank Account Interest
Calculation- Interest Posting- Prepare G/L Account Balance Interest
Calculation (Tcode:OBV2)
Execute
Click on Accounts (F7)
Chart of accts

Enter
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Acct symbol

Currency

G/L acct

0002

INR

400080

2000

INR

100500

Save (Ctrl+S) and enter

8. Post Loan Taken from bank


Path: Accounting - Financial Accounting - General Ledger - Posting - FB50 Enter G/L Account Document (Tcode: FB50)
Double click on FB50 - Enter G/L Account Document
Click on Company code (F7)
Company code
Enter
Document date
Posting Date
G/L acct

D/C

Amount in doc. Curr

290100 (Bank A/C)

S Debit

1000000

100500 (SBI Term Loan A/C

H Credit

1000000

Post (Ctrl+S)

9. Interest calculation
Path: Accounting - Financial Accounting - General Ledger - Periodic
Processing - Interest Calculation - F.52 - Balance Interest Calculation
(Tcode: F.52)
Chart of accounts
G/L Account

100500 (Loan Account)

Company Code
Calculation period

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Select post interest settlement
Select update master record
Session name

Venkat

Execute (F8)
Go to Menu bar
System - services- batch input - sessions
Select Venkat
Click on process (F8)
Select display errors
Enter
Click on Exit batch input

17. Document display (Tcode: FB03)

18.Display ledger (Tcode: FS10N)

Reversal of Documents
Definition: If you have entered an incorrect document, you can reverse it,
thereby also clearing the open items.
A document can only be reversed if:

It contains no cleared items

It contains only customer, vendor, and G/L account items

It was posted with Financial Accounting

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All entered values (such as business area, cost center, and tax code) are
still valid

Note: Once we post documents in SAP, we cant edit amounts. Reverse the
document and post correct document. We have to know wrongly posted
document number, and then only we can reverse the document

1. Define Reasons for Reversal


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New)- Business Transactions- Adjustment
Posting/Reversal- Define Reasons for Reversal
Execute
Click on New Entries (F5)
Reason
Name

Wrongly posted document

Select Neg.posting
Save (Ctrl+S) and enter

Note:
Negative posting: Indicator that "Negative postings" are to be generated for a
reversal with the specified reversal reason. Negative postings reduce the
transaction figures again. Negative postings must also be allowed for the
company code of the document to be reversed. If a company code does not
generally use any negative postings, the indicator set here is ignored.

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Alternative posting date: Indicator as to whether you are allowed to specify an
alternative posting date for the relevant reversal reason. When you use the
reversal reason, the system checks that reversal is not carried out using an
alternative posting date and therefore possibly in a later posting period or in
a later fiscal year. If you want to use negative postings during reversal but
only if the reversal is posted in the same period, you can define two reversal
reasons:
1st reason: No alternative date allowed, generate negative posting
2nd reason: Alternative date allowed, do not generate negative posting

2. Permit Negative Posting


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New)- Business Transactions- Adjustment
Posting/Reversal- Permit Negative Posting
Execute
Click on position button
Company code
Select Negative posting permitted
Save (Ctrl+S) and enter

3. Reversal of Documents
Path: Accounting - Financial Accounting - General Ledger - Document Reverse - FB08 - Individual Reversal (Tcode: FB08)
Document number
Company Code
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Fiscal year
Reversal reason
Post (Ctrl+S)

4. Document display (Tcode: FB03)


Document number
Company code
Fiscal year
Enter
Observe entry
Click on Reversal document (Shift+F1)
We can see which document we reversed

5. Mass Reversals
Path: Accounting - Financial Accounting - General Ledger - Document Reverse - F.80 - Mass Reversal (Tcode: F.80)
Company code
Document number

From

To

Fiscal year
Reason for reversal
Deselect Test Run
Execute (F8)

Report Layout and Sort filter Command


1. Report Layout (Tcode: FS10N)
G/L Account
Company code
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Fiscal year
Execute (F8)
Double click on Amount
Click on Change Layout (Ctrl+F8)
Select Posting date
Select Posting key
Click on Show Selected fields
Enter

2. Sort filter Commands (Tcode: FS10N)


G/L Account
Company code
Fiscal year
Execute (F8)
Double click on Amount
Click on Doc.Date
Click on Set Filter (Ctrl+Shift+F2)
Document date

Enter

Open Item Management


Outstanding expenses:
Definition: Expenses incurred but not paid. Ex: Outstanding salaries,
Outstanding rent etc
Entries:

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a. Posting outstanding Expenses
Rent A/C
To O/S Expenses A/C
b. Clearing outstanding Expenses
O/S Expense A/C
To Bank A/C

1. Create Outstanding Expenses G/L A/C (Tcode: FS00)


G/L Account

190600

Company Code
Click on Create
Go to Type/Description Tab
Account group

LIAB Liabilities

Select Balance Sheet Account


Short Text

O/S Expenses A/C

G/L Acct Long Text

Out Standing Expense A/C

Go to Control Data Tab


Select only balances in local crcy
Select Open Item Management
Select Line item display
Sort key

001

Go to Create/Bank/Interest Tab
Field Status group

G001

Save

2. Post Outstanding expenses (Tcode: FB50)

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Click on Company code (F7)
Company code
Enter
Document date
G/L acct

D/C

Amount in doc. Curr

400010

S Debit

25000

190600

H Credit

25000

Post (Ctrl+S)

3. Report
Path: Accounting- Financial Accounting- General Ledger- Account- FBL3N Display/Change Line Items (Tcode: FBL3N)
G/L Account

190600 (Out Standing Expense A/C)

Company code
Select Open items
Execute (F8)

4. Payment against Out standing expense


Path: Same path (Tcode: F-03)
Account

190600 (Outstanding Expense A/C)

Company code
Click on Process open items (Shift+F4)
Select O/S Expense against which outstanding expenses you are making
payment (Blue color means selection and block color means deselecting.
Double click on Blue color means deselecting and double click on block color
means selection)

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Click on Document Overview (Shift+F2)
PstKy

50 (Credit)

Account

290100 (Bank A/C)

Enter
Amount

25000

Go to Menu bar
Document simulate
Post (Ctrl+S)

5. Report (Tcode: FBL3N)


G/L account

190600 (Out Standing Expenses A/C)

Company code
Select cleared items
Execute (F8)

Prepaid Expenses
Definition: Expenses paid in advance. Ex: Advance Salary, Prepaid Rent,
Prepaid Electricity, prepaid telephone bill etc
Entries:
a. Posting of prepaid Expenses
Prepaid Expense A/C
To Bank A/C
b. Booking of expenses against prepaid Expenses
Rent A/C
To Prepaid expenses A/C

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1. Create prepaid Expense G/L Account (Tcode: FS00)
G/L Account

290600

Company code
Click on create
Go to Type/Description Tab
Account Group

ASST Assets

Select Balance sheet Account


Short text

Prepaid Ex. A/C

G/L Acct Long Text

Prepaid expense Account

Go to Control data Tab


Select only balances in local crcy
Select open item management
Select line item display
Sort key

001

Go to Create/Bank/Interest Tab
Field status group

G001

Save

2. Post prepaid expenses (Tcode: FB50)


Click on Company code (F7)
Company code
Enter
Document date
G/L acct

D/C

Amount in doc. Curr

290600

S Debit

25000

290100

H Credit

25000

Post (Ctrl+S)

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3. Report (Tcode: FBL3N)


G/L Account

290600 (Prepaid Expense A/C)

Company code
Select Open items
Execute (F8)

4. Clear prepaid expense (Tcode: F-03)


Path: Accounting- Financial Accounting- General Ledger- Account- F-03
Clear (Tcode: F-03)
Account

290600 (Prepaid Expense A/C)

Company code
Select None
Click on Process Open Items (Shift+F4)
Click on Document overview (Shift+F2)
PstKy

40 (Debit)

Account

400090 (Rent A/C)

Enter
Amount

25000

Click on process open items (Shift+F4)


Go to Menu bar
Document Simulate
Save

5. Report (Tcode: FBL3N)


G/L Account

290600 (Prepaid Expense A/C)

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Company code
Select Cleared items
Execute (F8)
Foreign Currency Valuation
1. Define Valuation method
Definition: In this activity, we define valuation methods for the open items.
Valuation method is a grouping of specifications together which we need for
the balance and individual valuation
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New)- Periodic Processing- Valuate- Define Valuation
Methods
Execute
Click on New Entries (F5)
Valuation method
Description
Select always evaluate
Document type

SA

Select balance Val


ExchRate Type for Debit Bal

ExchRate Type for CreditBal

Select determine Exch.Rate type from Acct Bal


Save and enter

Always evaluate: If you select this procedure, revaluations are also taken
into consideration

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Exchange rate types: Exchange rates nothing but currency rate symbols
B: Bank selling rate 46 (Per USD)
G: Bank buying rate 44 (Per USD)
M: Average rate (46+44)/2= 45 (Per USD)

2. Define Valuation Areas


Path: Same path
Execute
Click on New Entries (F5)
Valuation
Valuation method
Crcy type

10 company code currency

Save and enter

Note:
Valuation: Valuation is a unique code to valuate foreign currency.

3. Check Assignment of Accounting Principle to Ledger Group


Path: same path
Execute
Accounting principle

GAAP (General Accepted Accounting


Principle)

Target ledger group

0L (Leading ledger)

Save and enter

4. Assign Valuation Areas and Accounting Principles


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Path: Same path
Execute
Click on New Entries (F5)
Valuation area
Acc.principle

GAAP

Save and enter

5. Creation of General ledger master records (Tcode: FS00)


a. Exchange loss A/C
G/L Account

400090

Company code
Click on Create
Go to Type/description Tab
Account group

EXPN Expenses

Select P&L statement acct


Short text

Exchange Loss A/C

G/L Acct Long Text

Exchange Loss A/C

Go to control data tab


Select only balances in local crcy
Select line item display
Sort key

001 (Posting date)

Go to create/bank/interest tab
Field status group

G001

Save
b. Exchange Gain A/C
G/L Account

300090

Company code
Click on Create
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Go to Type/description Tab
Account group

INCO Incomes

Select P&L statement acct


Short text

Exchange Gain A/C

G/L Acct Long Text

Exchange Gain A/C

Go to control data tab


Select only balances in local crcy
Select line item display
Sort key

001 (Posting date)

Go to create/bank/interest tab
Field status group

G001

Save

c. Valuation Loss A/C


G/L account

400095

Company code
Click on with template
G/L Account

400090

Company code
Enter
Go to type/description tab
Short text

Valuation Loss A/C

G/L Acct Long Text

Valuation Loss A/C

Save

d. Valuation Gain A/C


G/L account

300095

Company code

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Click on with template
G/L Account

300090

Company code
Enter
Go to type/description tab
Short text

Valuation Gain A/C

G/L Acct Long Text

Valuation Gain A/C

Save
e. Valuation Adj A/C
G/L Account

190140

Company code
Click on create
Go to type/description Tab
Account group

LIAB Liabilities

Select balance sheet account


Short text

Valuation Adj A/C

G/L Acct Long Text

Valuation Adjustment account

Go to control data tab


Select only balances in local crcy
Select line item display
Sort key

001 (Posting date)

Go to Create/Bank/Interest Tab
Field status group

G001

Save
a. Loan from BOA A/C
G/L Account

190900

Company code
Click on create

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Go to type/description Tab
Account group

LIAB Liabilities

Select balance sheet account


Short text

Loan from BOA A/C

G/L Acct Long Text

Loan from Bank of America account

Go to control data tab


Account Currency

USD

Select only balances in local crcy


Select Open Item Management
Select line item display
Sort key

001 (Posting date)

Go to Create/Bank/Interest Tab
Field status group

G001

Save

6. Assign G/L Accounts


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New)- Periodic Processing- Valuate- Foreign Currency
Valuation- Prepare Automatic Postings for Foreign Currency Valuation
(Tcode: OBA1)
Execute
Double click on Exchange Rate Dif.: Open Items/GL Acct KDF
Chart of accounts
Enter
Click on New Entries (F5)
G/L Account

190900 (Loan from BOA A/C)

Loss

400090 (Exchange Loss A/C)


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Gain

300090 (Exchange Gain A/C)

Val.Loss 1

400095 (Valuation Loss A/C)

Val.Gain 1

300095 (Valuation Gain A/C)

Bal.sheet adj. 1

190140 (Valuation adj A/C)

Save and enter

7. Maintain translation rates


Path: Accounting- Financial Accounting- General Ledger- EnvironmentCurrent Settings- S_BCE_68000174 - Enter Translation Rates (Tcode:
S_BCE_68000174)
Click on New Entries (F5)
ExRt

Valid from

From

Dir.Quot.

To

USD

45

INR

Save (Ctrl+S) and enter

8. Loan Taken from BOA


Path: Accounting - Financial Accounting - General Ledger - Posting - FB50 Enter G/L Account Document (Tcode: FB50)
Double click on FB50 - Enter G/L Account Document
Click on Company code (F7)
Company code
Enter
Document date
G/L acct

D/C

Amount in doc. Curr

Value date

290100 (Bank A/C)

S Debit

25000

11.10.2011

190900 (BOA A/C)

H Credit

25000

Post (Ctrl+S)
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Go to Menu bar
Document Display
We can see entry

9. Foreign currency valuation


Path: Accounting- Financial Accounting- General Ledger- Periodic ProcessingClosing- Valuate- FAGL_FC_VAL - Foreign Currency Valuation (New) (Tcode:
FAGL_FC_VAL)
Company code
Valuation key date
Valuation area
Go to Posting Tab
Batch input session name
Go to open items Tab
Select Valuate G/L Accounts open items
G/L Account

190900 (Loan from BOA A/C)

Execute (F8)
Go to menu bar
System- Services- Batch input- sessions
Select Session
Click on Process (F8)
Select display errors
Select extended log
Enter
Click on exit batch input (F12)

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10.Document display (Tcode: FB03)

Intercompany transactions
1. Creation General ledger master record in two company codes
(Tcode: FS00)
G/L Account

190101

Company code
Click on create
Goto type/description tab
Account group

LIAB Liabilities

Select balance sheet account


Short text
G/L Account Long Text
Go to Control data tab
Select only balances in local crcy
Select open item management
Select line item display
Sort key

001 (Posting date)

Go to create/bank/interest tab
Field status group

G001

Save

G/L Account

190101

Company code
Click on create
Goto type/description tab
Account group

LIAB Liabilities

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Select balance sheet account
Short text
G/L Account Long Text
Go to Control data tab
Select only balances in local crcy
Select open item management
Select line item display
Sort key

001 (Posting date)

Goto create/bank/interest tab


Field status group

G001

Save

2. Prepare Cross-Company Code Transactions


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New)- Business Transactions- Prepare Cross-Company
Code Transactions (Tcode: OBYA)
Execute
Company code 1
Company code 2
Enter
Posted in

1001

Cleared against

2601

Debit posting

40 (Debit)

key
Account debit

Credit posting

50 (Credit)

key
190101

Account credit

190101

Posted in
Cleared against
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Debit posting

40 (Debit)

key
Account debit

Credit posting

50 (Credit)

key
190101

Account credit

190101

Save (Ctrl+S) and enter

3. Intercompany Posting
Path: Accounting - Financial Accounting - General Ledger - Posting - FB50 Enter G/L Account Document (Tcode: FB50)
Double click on FB50 - Enter G/L Account Document
Click on Company code (F7)
Company code
Enter
Document date
G/L acct

D/C

Amount in doc. Curr

290100

S Debit

25000

290100

H Credit

25000

Company Code

Post (Ctrl+S)
Go to Menu bar
Document Display
We can see entry

Accounts payables
Accounts payable module streamlines Procure To Pay (P2P) process
while providing financial control and information. It supports booking of

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invoices, matching invoices against purchase orders and approval of invoices.
It facilitates recording of debit/credit memos as well as payments. It helps
monitor supplier invoices and creates supplier balance overviews.

This component will deal with vendors, Terms and conditions, Invoices,
outgoing payments, Advance to vendors, Etc. Vendors are subsidiary ledgers.
AP component integrates with General ledger component.

Purpose of Accounts Payables:


The Accounts payable application component records and administers
accounting data for all vendors. It is also an integral part of the purchasing
system. Deliveries and invoices are managed according to vendors. The
system automatically makes postings in response to the operative
transactions.

Features of Accounts Payables:

Payables are paid with the automatic and manual payment program

Postings made in accounts payables are simultaneously recorded in the


general ledger where different G/L Accounts are updated based on the
transaction involved. Ex: Payables and advances to vendors

Balance confirmations, account statements, and other forms of reports


to suit your requirement in business correspondence with vendors

Business Process:

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1. Vendor invoice verification
Vendor invoices will be processed based on the invoices received from the
vendors. In invoice verification, vendor invoices are compared with the
purchase order and the goods receipt and are checked for the price and
quantity

When an invoice is entered with reference to a purchase order, the


system suggests data from the purchase order and the goods receipts
for the purchase order. Ex: Vendor, Material, Quantity still to be
invoiced, Terms of payment and so on

The posting of the invoice completes the invoice verification process.


The system updates the purchase order history and financial
accounting initiates payment for the open invoice items. Invoice
verification creates a link between materials management and
accounting document

2. Vendor Down Payments (Advance to vendors)


Advance payments will be made according to the terms of payments with the
vendor. The advance payments made to the vendor will be tracked as distinct
from the normal payments made to the vendor. The posting for down
payments will be carried out to a G/L account other than the standard
general ledger account for the vendor called as Special G/L Account

3. Clearing of vendor invoice and advance

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The concept of authorizing the document entry can be achieved by the
standard SAP functionality creating and authorizing the payment request.
Payment request will be created by one person and authorized by another
person to keep the control.

4. Vendor payments
By using the SAP standard functionality all the cheque payments can be
managed. The typical procedure under SAP with respect to cheque will be,

Defining Cheque lots for each and every house bank

Entering vendor invoice

Entering the vendor payment by clearing the open item created by


invoice

Attach cheque to the payment document number generated

Check the cheque register to see the cheque updating

Vendor payments can be manual or automatic. The general aspects related to


vendor payment are,

Terms of payment

Method/Mode of payment

Manual payment

Automatic payment

Method/Mode of payment:
The payment methods used in SAP system are as follows,

C= Cheque

E= ECS (Electronic Clearing System)

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T= Bank Transfer

A= Cash

D= Demand Draft/Pay Order (needs to be created in SAP system)

Manual Payments:
Manual payments are those payments, where the user selects vendor and
invoices to be paid. This selection can be used for cheque printing or other
methods of payment (like instruction to bank). Usually this procedure is
preferred where the numbers of selection/payments are less
Automatic Payments:
Automatic payments are configured to make vendor payments based on terms
of payments. The due date wise/vendor invoice wise payment proposal will be
generated and this proposal can be edited to make the selective payments.
After the payment list has been finalized, the payment run will be executed
and accounting entry will be posted automatically. Payment advice and
cheque will be printed through system
1. Define Account Groups
Definition: Account group means list of vendors will be segregated into
different account groups. For ex: Domestic vendors and foreign vendors or
South vendors, North Vendors, East Vendors and West vendors etc. It controls
fields in master record and number range intervals.
Path: SPRO- SAP Reference IMG- Financial Accounting(New)- Accounts
Receivable and Accounts Payable- Vendor Accounts- Master DataPreparations for Creating Vendor Master Data- Define Account Groups with
Screen Layout (Vendors) (Tcode:OBD3)

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Execute
Click on New Entries (F5)
Account Group
Name

Dom. Vendors

Save and enter


Note: Data in vendor master record controls how transaction data is posted
and processed for a vendor. The vendor master record also contains all the
data you require to do business with your vendors. Vendor Master Record will
be segregated into three segments
a. General data
b. Company code data
c. Purchasing data

a. General data
This is data that applies to every company code and every purchasing
organization in your company. The general area includes, for example,
the vendors name, address, language, and telephone number.
b. Company code data

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This is data that is specific to an individual company code. Company
code data includes, for example, the reconciliation account number and
payment terms.
c. Purchasing organization data
This is data relevant to the purchasing organization of your company.
For example, requests for quotations, purchase orders, and invoice
verifications are stored in this section. You need the Materials
Management (MM) application component in order to enter this data
and print purchase orders.
2. Create Number Ranges for Vendor Accounts
Definition: For every vendor we need to allocate one unique number. These
number ranges are assigned account group. Vendor number ranges are client
level. For ex: Client 800
Path: Same path (Tcode: XKN1)
Execute
Click on Change interval
Click on Insert interval (shift+F1)
No
From Number
To Number
Enter
Save and enter

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3. Assign Number Ranges to Vendor Account Groups
Path: same path (Tcode: OBAS)
Execute
Click on Position button
Account group
Enter
Number range
Save and enter
Note: One number range can be assigned to more than one account group.
Other wise for every account group, we can assign one number range
4. Define Tolerances (Vendors)
In this step, you specify the tolerances for vendors. These tolerances are used
for dealing with differences in payment and residual items which can occur
during payment settlement. Specify the tolerances under one or more
tolerance groups. Allocate a tolerance group to each vendor via the master
record. For each tolerance group, specify the following:

Tolerances up to which differences in payment are posted


automatically to expense or revenue accounts when clearing open items

The handling of the terms of payment for residual items, if they are to
be posted during clearing

Path: SPRO- SAP Reference IMG- Financial Accounting(New)- Accounts


Receivable and Accounts Payable- Business Transactions- Outgoing
Payments- Manual Outgoing Payments- Define Tolerances (Vendors)
(Tcode:OBA3)

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Execute
Click on New Entries (F5)
Company code
Save and enter

Note:
Grace Days due date, Number of days by which the payment deadlines may be
exceeded when manual payments are made. In the payment entry facilities,
the grace days are added to the payment deadlines. This means that the
system will accept cash discount deductions and net payments even after the
original deadline. If the days in arrears are displayed during open item
processing, the system reduces them by the number of grace days.

Cash Discount Terms Displayed, during payment settlement, the items are
displayed with the cash discount terms specified here.

Arrears Base Date, from arrears base date system will calculate terms of
payments.
Permitted payment difference for automatic write-off (function code AD),
Payment differences to our advantage are permitted up to the amount
specified here. The local currency is INR. In the field Revenue you have
entered 30 INR and in the field Percent, 1. For incoming payments of up to
3000 INR, you accept an overpayment up to a maximum of 1 percent. This
means that depending on the amount of the incoming payment, amounts

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from 0 to a maximum of 30 INR are tolerated. For incoming payments over
3000 INR, you accept an overpayment up to a maximum of 30 INR.

Residual Items, residual means remaining amount (Payment difference).


System will create new line item for remaining amount and clear entire
invoice
a. Payment term from invoice, Indicator that the terms of payment are to be
transferred from the original item for residual items. In this case, the amount
qualifying for cash discount is set in such a way that the relationship between
the amount qualifying for cash discount and the line item amount of the
original item is also given in the residual item.
b. Fixed payment term, terms of payment key which is to be transferred to the
line item when posting residual items. You only need to specify terms of
payment key here if the terms are not to be transferred from the original
document
5. Maintain Number ranges 19, 15, 17 for KR, KZ, KA document
types respectively (KR: Vendor Invoice, KZ: Vendor payment,
KA: Vendor Document)
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New) - Document- Document Number RangesDocuments in Entry View- Define Document Number Ranges for Entry View
(Tcode: FBN1)
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Execute
Company Code
Click on change interval
Click on Insert interval (Shift+F1)
No

19

Year
From number

1900000000

To Number

1999999999

Enter
Click on Insert interval (Shift+F1)
No

15

Year
From number

1500000000

To Number

1599999999

Enter
Click on Insert interval (Shift+F1)
No

17

Year
From number

1700000000

To Number

1799999999

Enter
Save and enter
6. Create Sundry Creditors A/C (Tcode: FS00)
G/L Account

190100

Company Code
Click on create
Go to Type/Description Tab
Account Group

LIAB Liabilities

Select Balance sheet Account


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Short Text

Sundry Creditors A/C

G/L Acct Long Text

Sundry Creditors Account

Go to Control data Tab


Recon.account for Acct type

K Vendors

Select Line item display


Sort Key

012 (Vendor Number)

Go to Create/Bank/Interest tab
Field Status Group

G067

Save (Ctrl+S)

Note:
Recon. Account for acct type: An entry in this field characterizes the G/L
account as a reconciliation account. The reconciliation account ensures the
integration of a sub ledger account into the general ledger.
Ex: G/L account 190100 is defined as a reconciliation account. In the vendor
account 4711, the G/L account 190100 is determined as a reconciliation
account. In this way, all postings to vendor account 4711 are also posted
automatically to the G/L account 190100. The G/L account itself is not
designed for direct posting. In this way, reconciliation between sub ledger and
general ledger is always guaranteed.

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7. Create Vendor Master Record


Definition: Business transactions are posted to accounts and managed using
those accounts. You must create a master record for each account that you
require. The master record controls how business transactions are recorded
and processed by the system
Specifications you make in master records are used:

As default values when you post items to the account. For example, the
terms of payment you specify in the master record are defaulted for
document entry.

For processing business transactions. For instance, bank details and


the payment methods (check or bank transfer, for example) are
required for automatic payments.

For working with master records. You can prevent certain users from
accessing an account by setting up authorization groups.

Path: Accounting - Financial Accounting - Accounts Payable - Master Records


- FK01 - Create (Tcode: FK01)
Company Code
Account Group
Enter
Title

Company

Name
Search Term
Street
House number
Postal code
City
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Country

IN (India)

Enter, enter and enter


Recon.account

190100

Sort Key

012

Cash mgmnt group

A1

Enter
Payt terms
Save

8. Create Service G/L Master Record (Tcode: FS00)


G/L Account

400100

Company Code
Click on create
Go to Type/Descripition Tab
Account Group

EXPN Expense

Select P&L Statement acct


Short Text

Service A/C

G/L Acct Long Text

Service Account

Go to Control Data Tab


Select only balances in local crcy
Select Line item display
Sort Key

001

Go to Create/bank/interest Tab
Field status group

G001

Save

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9. Define Terms of payments
Definition: In the step Maintain terms of payment, you can define rules with
which the system can determine the required terms of payment
automatically. The rules are stored under a four-character key. You assign the
terms of payment specified to the vendors in the master record via the key.
The key and the terms determined with it are proposed when entering a
document to the vendor account
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Business Transactions- Incoming
Invoices/Credit Memos- Maintain Terms of Payment (Tcode: OBB8)
Execute
Click on New Entries (F5)

Payt Terms

Own Explanation

: Terms of payment for ______

Term

Percentage

No. of days

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1

10

20

30

Save (Ctrl+S) and enter

Day Limit:
Day of the month up until which the corresponding terms are valid.
Ex:
The following terms of payment require you to enter a day limit:

Documents with an invoice date on or before the 15th of the month are
payable on the last day of the next month

Documents with an invoice date after the 15th of the month are
payable on the 15th of the month after the next month.

Account type:
You can use the same key for the terms of payment for both customers and
vendors who have the same payment terms. SAP recommends, however, that
you use different terms of payment keys for customers and vendors and limit
the permitted account type correspondingly within the terms of payment.
This, for example, then has an advantage if the sales department of your
company changes a payment term for a customer. You can then adapt the
accompanying customer terms of payment key without vendors being affected
by the same terms of payment.

Baseline date calculation section:

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Baseline date will be useful for calculation of terms of payment.
Fixed Date: Calendar day with which the system overwrites the day of
the baseline date for payment of the line item.
Additional months: Number of months which the system adds to the
calendar month of the baseline date for payment.

Pmnt block/Pmnt method default section:


Block Key: Default value for the payment blocking key. By using block
key, we can stop payment against that invoice
Payment Method: The payment method determines how payments are
to be made, e.g. by check, bank transfer or bill of exchange.

1) Define Terms of Payment for Installment Payments


Definition: In this step you can determine whether an invoice amount is to be
divided into partial amounts with different due dates. For these terms of
holdback/retainage payment, you must determine the amount of the
holdback/retainage in percent and the terms of payment for each
holdback/retainage payment. If you then post an invoice with terms of
holdback/retainage payment, the system generates the corresponding number
of line items due to your specifications for the holdback/retainage.
a. Define Terms of Payment for each Installment Payments
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Business Transactions- Incoming
Invoices/Credit Memos- Maintain Terms of Payment (Tcode: OBB8)

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Execute
Click on New Entries (F5)
Payt Terms
Own Explanation
Term

Percentage

No. of days

10

20

30

Click on Next Entry (F8)


Payt Terms
Own Explanation
Select Installment Payment
Save (Ctrl+S) and enter

b. Define Terms of Payment for Installment Payments


Path: Same path (Tcode: OBB9)
Execute
Click on New Entries (F5)
Terms of paymen

Inst

Percent

50.000

25.000

25.000

Pmnt term

Save (Ctrl+S) and enter


Note: Terms of payment key will be assigned in vendor/customer master
records or transactions

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Vendor Invoice
Path: Accounting - Financial Accounting - Accounts Payable - Document
Entry - FB60 Invoice (Tcode: FB60)
Click on Company Code (F7)
Company code
Enter
Vendor
Invoice Date
Amount
G/L Acct

D/C

Amount in doc. Curr

400100

S Debit

Post (Ctrl+S)
Go to Menu bar
Document Display
We can see document
Notes to Vendor invoice:
Payment Tab:
Base line date: During document entry for open item accounts, the date may
be defaulted. For this, terms of payment key must have been specified in the
customer's/vendor's master record for which a default value is requested in
the document. The proposed date can be overwritten.
If the cash discount rates (and days) have not been entered, the baseline date
for payment is the same as the due date.

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Discount: This is absolute cash discount agreed against this invoice

Discount Base: Part of the invoiced amount for which cash discount is
granted. For Ex: Invoice amount 35000 and Discount base amount 30000.
System will calculate terms payments on discount base amount (30000).

Fixed: the first or second cash discount term can be taken advantage of
irrespective of whether the corresponding period has elapsed or not. We can
prevent lost cash discounts with this indicator

Payment Method: Payment method with which this item is to be paid. Ex:
Cheque Method, Bank Transfer etc.
If you enter a payment method, then only this payment method can be used in
automatic payment transactions. If you do not enter a payment method, then
one of the payment methods which were allowed in the master record is
selected in the payment program according to specified rules.
For document entry or document changes, you only enter a payment method
if you want to switch off the automatic payment method selection of the
payment program.

Payment Block: By using payment block, we can stop payment against this
invoice

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Invoice Reference: For line items which are related to another line item, this
field contains the number of the partner document. In the standard system
the field is used for:
Credit memos which refer to a particular invoice item
Subsequent invoices for an invoice item
Partial payments for an invoice item
Partial clearings of down payments.

Vendor Line item report


Path: Accounting - Financial Accounting - Accounts Payable - Account FBL1N - Display/Change Line Items (Tcode: FBL1N)
Vendor Account
Company Code
Select open items
Execute (F8)
We can see list of pending invoices

Outgoing payments
By using the standard SAP functionality all the cheque/cash payments can be
managed. Vendor payments can be manual or automatic
1. Standard Payment
Definition: Standard payment means full payment against invoice net (after
deducting cash discounts)

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Path: Accounting - Financial Accounting - Accounts Payable - Document
Entry - Outgoing Payment - F-53 - Post (Tcode: F-53)
Document Date

Type

Posting Date
Bank Data Section

Period

Account

KZ

Company Code
Currency/Rate

290100 (Bank A/C)

Amount
Open Item Selection Section
Account
Enter
Note: Select Invoice against which invoice you are making payment, Deselect
Remaining invoices. Select means Blue color and Deselect means block color.
Note: Amount entered and Assigned amount should be same
2. Vendor Line item report
Path: Accounting - Financial Accounting - Accounts Payable - Account FBL1N - Display/Change Line Items (Tcode: FBL1N)
Vendor Account
Company Code
Select Cleared Items
Execute (F8)
We can see list of cleared invoices

3. Partial payments
Partial payment means part of the invoice payment. For ex:
Invoice amount 50000

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Outgoing payment 10000
Path: Accounting - Financial Accounting - Accounts Payable - Document
Entry - Outgoing Payment - F-53 - Post (Tcode: F-53)
Document Date

Type

Posting Date
Bank Data Section

Period

KZ

Company Code
Currency/Rate

Account

290100 (Bank A/C)

Amount
Open Item Selection Section

10000

Account
Enter
Go to partial payment Tab
Note: Select Invoice against which invoice you are making partial payment,
Deselect Remaining invoices. Select means Blue color and Deselect means
block color.
Note: Amount entered and Assigned amount should be same
Against invoice, enter payment amount (How much amount you are making
partial payment)
Go to Menu bar
Document Simulate
Post (Ctrl+S)
4. Vendor Line item report
Path: Accounting - Financial Accounting - Accounts Payable - Account FBL1N - Display/Change Line Items (Tcode: FBL1N)
Vendor Account
Company Code
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Select Open Items
Execute (F8)
Note: System will show you invoice amount and partial payment as open
items until entire invoice cleared
5. Residual items
Definition: In Residual items, system will re determine terms of payments.
Path: Accounting - Financial Accounting - Accounts Payable - Document
Entry - Outgoing Payment - F-53 - Post (Tcode: F-53)
Document Date

Type

Posting Date
Bank Data Section

Period

KZ

Company Code
Currency/Rate

Account

290100 (Bank A/C)

Amount
Open Item Selection Section

10000

Account
Enter
Go to Residual Items Tab
Note: Select Invoice against which invoice you are making residual payment,
Deselect Remaining invoices. Select means Blue color and Deselect means
block color.
Note: Amount entered and Assigned amount should be same
Against invoice, enter remaining payment amount (put after amount -). Go to
Go to Menu bar
Document Simulate
Double click on Blue Color line item

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Days/percent
Text

Being Residual items

One time go back


Post (Ctrl+S)
Automation of Bank Charges and Cash discount
1. Creation of Bank Charges G/L Account (Tcode: FS00)
G/L Account

400020

Company Code
Click on create
Go to Type/Description Tab
Account Group

EXPN Expenses

Select P&L statement acct


Short Text

Bank Charges A/C

G/L Acct Long Text

Bank Charges Account

Go to Control data Tab


Select only balances in local crcy
Select Line item display
Sort Key

001

Go to Create/bank/Interest Tab
Field status group

G001

Save
2. Creation of Cash Discount Taken G/L Account (Tcode: FS00)
G/L Account

300010

Company Code
Click on create
Go to Type/Description Tab
Account Group

INCO Incomes

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Select P&L statement acct
Short Text

Cash Dis.Taken A/C

G/L Acct Long Text

Cash Discount Taken Account

Go to Control data Tab


Select only balances in local crcy
Select Line item display
Sort Key

001

Go to Create/bank/Interest Tab
Field status group

G001

Save
3. Creation Accounts for Cash Discount Taken
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Business Transactions- Outgoing
Payments- Outgoing Payments Global Settings- Define Accounts for Cash
Discount Taken
(Tcode: OBXU)
Execute
Chart of Accounts
Enter
Save
Account

300010

Save and enter


Note: Through SKE transaction system will post cash discounts automatically
by account 300010

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4. Define Accounts for Bank Charges (Vendors)
Path: Same path (Tcode: OBXK)
Execute
Double click on Bank Charges BSP
Chart of Accounts
Enter
Account

400020

Save and enter


Note: Through BSP transaction system will post bank charges automatically
by account 400020
5. Outgoing payment to vendor with bank charges and cash
discount (Tcode: F-53)
Scenario:
Invoice amount

35000

Cash discount

500

Bank Charges

100

Entry:
Vendor A/C
Bank Charges

Dr
35000
100

To Bank A/C

34600

To Discount

500

Document Date

Type

Posting Date
Bank Data Section

Period

Account

Cr

KZ

Company Code
Currency/Rate

290100 (Bank A/C)

Amount
Bank Charges

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Open Item Selection Section
Account
Enter
Go to Standard Tab
Cash discount
Note: Select Invoice against which invoice you are making payment, Deselect
Remaining invoices. Select means Blue color and Deselect means block color.
Note: Amount entered and Assigned amount should be same
Against invoice, enter Cash discount amount.
Goto Menu bar
Document Simulate
Post (Ctrl+S)
Down payments (Advance To vendors)

1. Create Advance to Vendor G/L Account (Tcode: FS00)


G/L Account

290200

Company Cod
Click on create
Go to Type/Description Tab
Account Group

ASST Assets

Select Balance Sheet Account


Short Text

Adv. to Vendors A/C

G/L Acct Long Text

Advance to Vendors Account

Go to Control Data Tab


Recon. account for acct type

K Vendors

Select Line item Display

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Sort Key

012

Go to Create/Bank/Interest Tab
Field Status Group

G067

Save

2. Assign Adv. to Vendor Account


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Business Transactions- Down Payment
Made- Define Alternative Reconciliation Account for Down Payments (Tcode:
OBYR)
Execute
Double click on
K

Dwn pmt

Down payment on current assets

Chart of Accounts
Enter
Recon.acct

190100 (Dom. Vendors A/C)

Special G/L Account

290200 (Advance to Vendors A/C)

Save and enter


Note: Reconciliation account is assigned in vendor master records. Against
reconciliation account, we assign advance to vendors account. When ever we
give advance to vendors, system automatically posted to advance to vendors
account

Scenario 1
Advance to Vendor

: Rs 100000

Service

: Rs 100000
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1. Advance to Vendor
Path: Accounting - Financial Accounting - Accounts Payable - Document
Entry - Down Payment - F-48 - Down Payment (Tcode:F-48)
Document Date

Type

Posting Date
Vendor Section

Period

KZ

Company Code
Currency/Rate

Account
Special G/L Ind.
Bank Section

Account

290100 (Bank A/C)

Amount

100000

Enter
Amount
Go to Menu bar
Document - simulate
Save

2. Vendor line item Report (Tcode: FBL1N)


Vendor
Company code
Select open items
Select Special G/L Transactions
Execute (F8)

3. Service Invoice (Tcode: FB60)


Click on Company code (F7)

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Company code
Enter
Vendor
Invoice date
Amount

100000

G/L Acct

D/C

Amount in doc. Curr

400100

S Debit

100000

Post (Ctrl+S)

4. Vendor line item Report (Tcode: FBL1N)


Vendor
Company code
Select open items
Select normal items
Select Special G/L transactions
Execute

5. Clearing advance against Invoice


Path: Accounting- Financial Accounting- Accounts Payable- Account- F-44
Clear (Tcode: F-44)
Account
Company code
Special G/L ind.

Select Normal OI
Select invoice and advance (Against which invoice you want to settle which
advance)
Observe Amount entered and Assigned should be Zero
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Go to Menu bar
Document Simulate
Post (Ctrl+S)

6. Vendor line item Report (Tcode: FBL1N)


Vendor
Company code
Select Cleared Items
Select normal items
Select Special G/L transactions
Execute
Go to Menu bar
Environment Clearing transactions
We can see invoices settled against advances

Scenario 2
Advance to Vendor

: Rs 100000

Invoice

: Rs 50000

1. Advance to vendor (Tcode:F-48): Rs100000


Path: Accounting - Financial Accounting - Accounts Payable - Document
Entry - Down Payment - F-48 - Down Payment (Tcode: F-48)
Document Date

Type

Posting Date
Vendor Section

Period

KZ

Company Code
Currency/Rate

Account
Special G/L Ind.

A
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Bank Section
Account

290100 (Bank A/C)

Amount

100000

Enter
Amount

Go to Menu bar
Document - simulate
Save

2. Invoice (Tcode: FB60): Rs50000


Click on Company code (F7)
Company code
Enter
Vendor
Invoice date
Amount

50000

G/L Acct

D/C

Amount in doc. Curr

400100

S Debit

50000

Post (Ctrl+S)
See Report (Tcode: FBL1N)

3. Transfer of Advance
Path: Accounting - Financial Accounting - Accounts Payable - Document
Entry - Down Payment - F-54 - Clearing (Tcode: F-54)
Document Date

Type

Posting Date
Vendor Section

Period

KZ

Company Code
Currency/Rate

Account
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Keep blank invoice Field
Text

Being Transfer posting

Enter
Transfer posting

50000

Save

4. Settle transfer Advance against Invoice (Tcode: F-44)


Path: Accounting- Financial Accounting- Accounts Payable- Account- F-44
Clear (Tcode: F-44)
Account
Company code
Select Normal OI
Select invoice and Transfer advance (Against which invoice you want to settle
which advance)
Observe Amount entered and Assigned should be Zero
Go to Menu bar
Document Simulate
Post (Ctrl+S)
See Report (Tcode: FBL1N)

Scenario 3
Advance To Vendor : Rs 100000
Invoice

: Rs 150000

1. Advance to Vendor (Tcode: F-48): Rs100000

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Path: Accounting - Financial Accounting - Accounts Payable - Document
Entry - Down Payment - F-48 - Down Payment (Tcode: F-48)
Document Date

Type

Posting Date

Period

KZ

Company Code
Currency/Rate

Account
Special G/L Ind.

Account

290100 (Bank A/C)

Amount

100000

Enter
Amount

Go to Menu bar
Document - simulate
Save
See Report (Tcode: FBL1N)

2. Invoice (Tcode: FB60): Rs50000


Click on Company code (F7)
Company code
Enter
Vendor
Invoice date
Amount

150000

G/L Acct

D/C

Amount in doc. Curr

400100

S Debit

150000

Post (Ctrl+S)
See Report (Tcode: FBL1N)

3. Transfer posting (Tcode: F-54): Rs100000

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Path: Accounting - Financial Accounting - Accounts Payable - Document
Entry - Down Payment - F-54 - Clearing (Tcode: F-54)
Enter header data (Type KA)
Account
Keep blank invoice Field
Text

Being Transfer posting

Enter
Transfer posting

100000

Save

4. Outgoing payment (Tcode: F-53): Rs 50000


Path: Accounting - Financial Accounting - Accounts Payable - Document
Entry - Outgoing Payment - F-53 - Post (Tcode: F-53)
Document Date

12.10.2011

Posting Date
12.10.2011
Bank Data Section

Type

KZ

Company Code

4301

Period

Currency/Rate

INR

Account

290100 (Bank A/C)

Amount
Open Item Selection Section

50000

Account
Enter
Note: Select Invoice and transferred advance against which invoice you want
to settle transfer advance and outgoing payment (50000), Deselect Remaining
invoices. Select means Blue color and Deselect means block color.
Note: Amount entered and Assigned amount should be same
Go to menu bar
Document simulate
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Post (Ctrl+S)

Entries for Accounts Payables Advance Scenarios


Scenario 1
Advance

100000

Invoice

100000

1 F-48

Advance to Vendor

Advance to Vendor A/C

Dr

Cr

100000

To Bank A/C
2 FB60

100000
Invoice

Service A/C

100000

To Vendor A/C

100000
Settlement of Advance against

3 F-44

invoice

Vendor A/C

100000

To Advance to Vendor A/C

100000

Scenario 2
Advance

100000

Invoice

50000

1 F-48

Advance to Vendor

Advance to Vendor A/C

100000

To Bank A/C
2 FB60

100000
Invoice

Service A/C

50000

To Vendor A/C
3 F-54

50000
Transfer posting of Advance

Vendor A/C

50000

To Advance to Vendor A/C

50000

Clearing of transfer advance against


4 F-44

invoice
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No Entry
Scenario 3
Advance

100000

Invoice

150000

1 F-48

Advance to Vendor

Advance to Vendor A/C

100000

To Bank A/C

100000

2 FB60

Invoice

Service A/C

150000

To Vendor A/C

150000

3 F-54

Transfer posting of Advance

Vendor A/C

100000

To Advance to Vendor A/C


4 F-53

100000

Outgoing payment

Vendor A/C

50000

To Bank A/C

50000

Credit memo to vendor:


Definition: Credit memo is issued to vendor for service defects or material
return (Purchase returns)
Path: Accounting- Financial Accounting- Accounts Payable- Document EntryFB65 - Credit Memo (Tcode: FB65)
Vendor
Document date
Amount
Go to Payment Tab
Invoice Reference
G/L Acct

D/C

Amount in doc. Curr

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400100

H Credit

Post (Ctrl+S)
Entry:
Vendor A/C
To Service A/C

Down Payment Request


Definition: The Concept of authorizing the document entry can be achieved by
the standard SAP functionality for creating and authorizing the payment
request. Payment request will be created by one person and authorized by
another person to keep control
1. Assign G/L Account for down payment request
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Business Transactions- Down Payment
Made- Define Alternative Reconciliation Account for Down Payments
(Tcode: OBYR)
Execute
Double click on K

Chart of account

Pmt req

Down payment request

Enter
Recon. Acct

Special G/L account

190100 (Dom. Vendors A/C)

290200 (Advance to Vendors A/C)

Save (Ctrl+S) and enter

2. Enter Down Payment request

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Path: Accounting- Financial Accounting- Accounts Payable- Document EntryDown Payment- F-47 Request (Tcode: F-47)
Document Date

Type

Posting Date

Period

KA

Company Code
Currency/Rate

Account

4000000 (Vendor Number)

Trg.sp.G/L Ind.

Enter
Amount

100000

Due on
Post (Ctrl+S)
Down Payment Request number:

3. Vendor Line Item Report (Tcode: FBL1N)


Vendor
Company code
Select Open items
Select Noted Items
Execute (F8)

4. Payment against down payment request


Path: Accounting - Financial Accounting - Accounts Payable - Document
Entry - Down Payment - F-48 - Down Payment (Tcode: F-48)
Document Date

Type

Posting Date
Vendor Section

Period

KZ

Company Code
Currency/Rate

Account
Special G/L Ind

A
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Bank Section
Account

290100 (Bank A/C)

Amount

100000

Click on Request (F6)


Select Request number against which request you are sending advance to
vendor
Click on Create Down Payment (Shift+F1)
Post (Ctrl+S)

5. Vendor Line Item Report (Tcode: FBL1N)


Vendor
Company code
Select Cleared Items
Select Noted Items
Execute (F8)

Screen Layout per company code (Vendors)


Account Group controls fields in the vendor master record. Account groups
are client level. Any company code can use these account groups with in the
client. But we can maintain fields at company code level also

1. Define Screen layout per company code (Vendors)


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Vendor Accounts- Master Data-

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Preparations for Creating Vendor Master Data- Define Screen Layout per
Company Code (Vendors) (Tcode: OB24)
Execute
Click on New Entries (F5)
Company code
Enter
Select Company code
Click on Edit Field Status (F2)
Double click on Account management
Select Head Office Field as Suppress
Save (Ctrl+S)

2. Create Vendor Master Record (Tcode: FK01)


System will not show you head office field while creating vendor master
record in your company code

Screen Layout per Activity (Vendors)


Activities in vendor master records are creation, change and display vendor
master records. For each activity, we can maintain field controls (Suppress,
Required, Optional and Display). For ex: system should not allow changing
some critical fields even we are in change mode
1. Define Screen Layout per Activity (Vendors)
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Vendor Accounts- Master Data-

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Preparations for Creating Vendor Master Data- Define Screen Layout per
Activity (Vendors) (Tcode: OB23)
Execute
Double click on Change Vendor (Accounting)
Double click on Company code data
Double click on Account management
Select Reconciliation account as display mode
Save (Ctrl+S) and enter

2. Change Vendor Master Record (Tcode: FK02)


Vendor
Company Code
Company code data section
Select Accounting Info
Enter
Observe reconciliation account as display mode. We can not edit reconciliation
account

Head Office Vs Branch Office


Scenario: Wipro is our vendor. Wipro Company has some branches. Branches
and head office will provide service to us but we make payment to head office

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Wipro Head Office


Bangalore

Wipro Branch Office


Hyderabad

Wipro Branch Office


Chennai

Wipro Branch Office


Delhi

1. Create two vendor master records


Path: Accounting - Financial Accounting - Accounts Payable - Master Records
- FK01 - Create (Tcode: FK01)
Company Code
Account Group
Enter
Title

Company

Name
Search Term
Street
House number
Postal code
City
Country

IN

Enter, enter and enter


Recon.account

190100

Sort Key

012

Cash mgmnt group

A1

Enter
Payt terms

0001 (Payable Immediately Due Net)

Save (Ctrl+S)
Vendor Head office number

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Company Code
Account Group
Enter
Title

Company

Name
Search Term
Street
House number
Postal code
City
Country

IN

Enter, enter and enter


Recon.account

190100

Head Office

4300005

Sort Key

012

Cash mgmnt group

A1

Enter
Payt terms

0001 (Payable Immediately Due Net)

Save (Ctrl+S)
Vendor Branch Office number

2. Postings in Branch (Tcode: FB60)


Click on Company Code (F7)
Company code
Enter
Vendor
Invoice Date
Amount
Enter

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G/L Acct

D/C

Amount in doc. Curr

400100

S Debit

Post (Ctrl+S)

3. Vendor Line Item Report (Tcode: FBL1N)


Vendor
Company code
Select Open items
Execute (F8)
Enter

4. Outgoing payment for Head Office (Tcode: F-53)


Document Date

Type

Posting Date
Bank Data Section

Period

KZ

Company Code
Currency/Rate

Account

290100 (Bank A/C)

Amount
Open Item Selection Section

25000

Account
Enter
Note: Select Invoice against which invoice you are making payment, Deselect
Remaining invoices. Select means Blue color and Deselect means block color.
Note: Amount entered and Assigned amount should be same
Go to Menu bar
Document simulate
Post (Ctrl+S)

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Inter Company Transactions
1. Vendor invoice posting
Path: Accounting - Financial Accounting - Accounts Payable - Document
Entry - FB60 Invoice (Tcode: FB60)
Click on Company Code (F7)
Company code
Enter
Vendor
Invoice Date
Amount
G/L Acct

D/C

Amount in doc.

Company Code

Curr
400100

S Debit

Post (Ctrl+S)
Go to Menu bar
Document Display
We can see document

2. Outgoing payment
Path: Accounting - Financial Accounting - Accounts Payable - Document
Entry - Outgoing Payment - F-53 - Post (Tcode: F-53)
Document Date

Type

Posting Date
Bank Data Section

Period

Account

KZ

Company Code
Currency/Rate

290100 (Bank A/C)

Amount

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Open Item Selection Section
Account
Enter
Note: Select Invoice against which invoice you are making payment, Deselect
Remaining invoices. Select means Blue color and Deselect means block color.
Note: Amount entered and Assigned amount should be same

3. Report (Tcode: FBL3N)


G/L Account
Company code
Select open items
Execute (F8)

4. Intercompany clearing
a. Incoming payment
Path: Accounting- Financial Accounting- General Ledger- Posting- F-06 Incoming Payments (Tcode: F-06)
Document Date

Type

Posting Date

Period

Account

SA

Company Code
Currency/Rate

290100 (Bank A/C)

Amount
Account
Enter
Go to Menu bar
Document simulate
Save
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b. Report (Tcode: FBL3N)
G/L Account
Company code
Select Cleared items
Execute (F8)
c. Outgoing payment
Path: Same path (Tcode: F-07)
Document Date

Type

Posting Date

Period

Account

SA

Company Code
Currency/Rate

290100 (Bank A/C)

Amount
Account
Enter
Go to Menu bar
Document simulate
Save

Accounts Receivables:
AR deals with customers, terms and conditions with customers, customer
invoice, customer incoming payments, advance from customers and item
interest calculation and dunning (remainder letters)
Features of Accounts receivable component:
1. Serves as a complete record of business transactions with customers
2. Accounting of receipts manually and also automatic clearing of
payments.

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3. When drawing up financial statements, the items in foreign currency
are revalued
4. The credit memo can be entered in any of the currency, for which the
exchange rates are available. The credit memo details are stored in the
entered currency but the ledgers are posted in the local currency
(Company code currency)
5. Simultaneous posting to appropriate general ledger accounts, Dunning
(Remainder letters), balance confirmation etc.
6. Range of tools that you can use to monitor open items, such as account
analysis, due date list etc

Business Process
1. Customer down payments (Advance from customers)
SAP gives a facility to work with customer down payments. If the customer
pays by check/Demand draft as a down payment, it can be captured in a
separate G/L Account (Advance from customer account) and can be adjusted
against invoice.
2. Customer incoming payment
a. This function allows the AR user to record receipts from
customers in the system and adjusts them against invoices and
debit memos.
b. In the case of receipts received against invoices, the user can
enter the invoices to be adjusted. User can record the receipt as
an on account receipt, and link to one or more invoices later

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invoices, advances and debit memos can be settled to the extent
of the outstanding amount
c. Invoices, advances and debit memos can be partially settled.
d. In case the receipt currency is not the local currency, the same is
converted into local currency (Company code currency) for
accounting purposes. The rates as on the value date will be used
for conversion. However, the receipt details are stored in the
entered currency; the balances are stored both in the document
currency and also in the ledger currency
e. Receipt number is generated and the user can print the receipt.
This can be sent across to the customer, as an acknowledgement.
3. Clearing of invoices and advances
a. Account clearing process is used to clear one or more open line
items with in one account. On clearing open items, system will
create a clearing document. Ex: customer can be cleared against
vendor invoice posting). Clearing process may be manual or
automatic.
4. Accounting of Debit/Credit Memos
a. The debit memos are processed for bank charges, sharing of cost
for common expenditures.
b. The credit memos are processed for the price differences, wrong
billing, excess billing in terms of prices, whenever there is a
retrospective pricing effects
5. Sales Realization Provisions

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a. Each regional office is doing this provisional entry activity at the
end of the month
b. They calculate the provisional value of the Selling and
distribution expenses, primary freight and secondary freight.
6. Correspondence with customer
The Account statement and balance confirmations can be sent to customers
periodically.
Reminder notice can be sent to all customers whose payments are overdue.
This is possible by using the SAP standard functionality.

1. Define Account Groups with Screen Layout (Customers)


Definition: Account group means list of customers will be segregated into
different account groups. For ex: Domestic customers and foreign
customers or South customers, North customers, East Customers and
West Customers etc. It controls fields in master record and number range
intervals
Path: SPRO- Financial Accounting- Accounts Receivable and Accounts
Payable- Customer Accounts- Master Data- Preparations for Creating
Customer Master Data- Define Account Groups with Screen Layout
(Customers) (Tcode: OBD2)
Execute
Click on New Entries (F5)
Account Group
Name

Domestic Customers

Save and enter

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2. Create Number Ranges for Customer Accounts


Path: Same path (Tcode: XDN1)
Execute
Click on change interval
Click on Insert Interval (Shift+F1)
No
From number
To Number
Enter
Save and enter

3. Assign Number Ranges to Customer Account Groups


Path: Same path (Tcode: OBAR)
Execute
Click on position button
Account Group
Enter
Number range
Save and enter

4. Define Tolerances (Customers)


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable

and

Accounts

Payable-

Business

Transactions-

Incoming

Payments- Manual Incoming Payments- Define Tolerances (Customers)


Click on New Entries (F5)

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Company code
Save (Ctrl+S) and enter

5. Create sundry debtors (Tcode:FS00)


G/L Account

290300

Company Code
Click on create
Go to Type/Description Tab
Account Group

ASST Assets

Select balance sheet Account


Short Text

Sundry Debtors A/C

G/L Acct Long Text

Sundry Debtors A/C

Go to Control data Tab


Recon.Acct for Account type

D Customers

Select line item display


Sort Key

031

Go to Create/Bank/Interest Tab
Field status Group

G067

Save

6. Creation of customer master Record


Path: Accounting - Financial Accounting - Accounts Receivable Master
Records - FD01 - Create (Tcode: FD01)
Account Group
Company Code
Enter
Title
Name

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Street
House Number
Postal code
City
Country

IN (India)

Click on Company Code Data (Ctrl+F2)


Recon.Account

290300 (Sundry Debtors A/C)

Sort key

031

Save

7. Creation of Service Revenue A/C (Tcode:FS00)


G/L Account

300100

Company Code
Click on Create
Go to Type/Description Tab
Account Group

INCO Incomes

Select P&L statement acct


Short Text

Ser.Revenue A/C

G/L Acct Long Text

Service Revenue Account

Go to control data Tab


Select Only Balances in local crcy
Select Line item display
Sort Key

001

Go to Create/Bank/Interest Tab
Field status group

G001

Save

8. Maintain number ranges 18, 14 and 16 for DR, DZ and DA


Respectively (Tcode: FBN1)
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Company Code
Click on Change Interval
Click on Insert Interval (Shift+F1)
No

18

Year
From number

1800000000

To Number

1899999999

Enter
Click on Insert Interval (Shift+F1)
No

14

Year
From number

1400000000

To Number

1499999999

Enter
Click on Insert Interval (Shift+F1)
No

16

Year
From number

1600000000

To Number

1699999999

Enter
Save and enter

9. Post Customer Invoice


Path: Accounting - Financial Accounting - Accounts Receivable Document
Entry- FB70 Invoice (Tcode: FB70)
Click on Company Code (F7)
Company code
Enter
Customer
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Invoice Date
Posting Date
G/L Acct
D/C
Amount doc. Curr
Post (Ctrl+S)

10. Customer Line items


Path: Accounting - Financial Accounting - Accounts Receivable - Account FBL5N - Display/Change Line Items (Tcode: FBL5N)
Customer Account
Company Code
Select open items
Execute (F8)

11. Customer Credit Memo


Path: Accounting- Financial Accounting- Accounts Receivable- Document
Entry- FB75 - Credit Memo (Tcode: FB75)
Click on Company Code (F7)
Company code
Enter
Customer
Invoice Date
Posting Date
G/L Acct
D/C

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Amount doc. Curr
Post (Ctrl+S)

Incoming payments
1. Standard incoming payment
Path: Accounting - Financial Accounting - Accounts Receivable
Document Entry - F-28 - Incoming Payments (Tcode: F-28)
Document Date
Posting Date
Bank Data Section

Type

DZ

Period

Account
Amount
Open Item Selection Section

Company code
Currency

290100 (Bank A/C)


25000

Account
Enter
Select Invoice against which invoice you are receiving payment from
Customer. Amount entered and assigned amount should be same
Note: Selection means blue color and deselection means block color.
Double click on block color is selection and double click on blue color is
deselection
Post (Ctrl+S)

2. Customer Line items


Path: Accounting - Financial Accounting - Accounts Receivable - Account
FBL5N - Display/Change Line Items (Tcode: FBL5N)
Customer Account

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Company Code
Select Cleared items
Execute (F8)

3. Partial payments (Tcode:F-28)


Document Date
Posting Date
Bank Data Section

Type

DZ

Period

Account
Amount
Open Item Selection Section

Company code
Currency

290100 (Bank A/C)


25000

Account
Enter
Go to partial pmt Tab
Select Invoice against which invoice you are receiving payment from
Customer. Amount entered and assigned amount should be same
Payment amount

5000

Note: Selection means blue color and deselection means block color.
Double click on block color is selection and double click on blue color is
deselection
Post (Ctrl+S)

4. Residual items (Tcode:F-28)


Definition: In Residual items, system will re determine terms of
payments. Customer unable to make payments, we can discuss with

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customer and give new terms of payments for remaining payment
Document Date
Posting Date
Bank Data Section
Account

Type
Period

DZ

Company code
Currency

290100 (Bank A/C)

Amount
Open Item Selection Section
Account
Enter
Go to Residual Items Tab
Select Invoice against which invoice you are receiving payment from
Customer. Amount entered and assigned amount should be same
Residual Payment
Note: Selection means blue color and deselection means block color.
Double click on block color is selection and double click on blue color is
deselection
Post (Ctrl+S)

Automation of Bank Charges and Cash discount given


1 Creation of Cash Discount Given A/C (Tcode: FS00)
G/L Account

400030

Company Code
Click on Create
Go to Type/Description Tab
Account Group

EXPN Expenses

Select P&L Statement Acct

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Short Text

Cash Dis. Given A/C

G/L Acct Long Text

Cash Discount Given Account

Go to Control Data Tab


Select only balances in local crcy
Select line items tab
Sort Key

001

Go to Create/Bank/Interest Tab
Field status Group

G001

Save
2 Creation of Bank Charges G/L Account (Tcode: FS00)
G/L Account

400020

Company Code
Click on create
Go to Type/Description Tab
Account Group

EXPN Expenses

Select P&L statement acct


Short Text

Bank Charges A/C

G/L Acct Long Text

Bank Charges Account

Go to Control data Tab


Select only balances in local crcy
Select Line item display
Sort Key

001

Go to Create/bank/Interest Tab
Field status group

G001

Save

3 Assign Cash Discount Given A/C

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Path: SPRO- Financial Accounting- Accounts Receivable and Accounts
Payable- Business Transactions- Incoming Payments- Incoming Payments
Global Settings- Define Accounts for Cash Discount Granted (Tcode: OBXI)
Execute
Chart of Accounts
Enter
Save
Account

400030 (Cash Dis. Given A/C)

Save and enter

4 Define Accounts for Bank Charges (Customers)


Path: Same path (Tcode: OBXK)
Execute
Double click on Bank Charges BSP
Chart of Accounts
Enter
Account

400020 (Bank Charges A/C)

Save and enter

5 Incoming payment with bank Charges and Cash discount given


(Tcode:F-28)
Document Date
Posting Date
Bank Data Section
Account
Amount
Open Item Selection Section

Type

DZ

Period

Company code
Currency

290100 (Bank A/C)


25000

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Account
Enter
Select Invoice against which invoice you are receiving payment from
Customer. Amount entered and assigned amount should be same
Cash Discount
Note: Selection means blue color and deselection means block color.
Double click on block color is selection and double click on blue color is
deselection
Post (Ctrl+S)

Advance from customers


1 Create Advance from Customers G/L Master Record (Tcode:
FS00)
G/L Account

190200

Company Code
Click on Create
Go to Type/Description Tab
Account Group

LIAB Liabilities

Select Balance Sheet Account


Short Text

Adv.From Customer A/C

G/L Acct Long Text

Advance from Customers A/C

Go to Control data Tab


Recon.Account for Acct type

D Customers

Select Line item display


Sort Key

031

Go to Create/Bank/interest Tab

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Field status Group

G067

Save

2 Assign Advance from Customers Account


Path: SPRO- Financial Accounting- Accounts Receivable and Accounts
Payable- Business Transactions- Down Payment Received- Define
Reconciliation Accounts for Customer Down Payments (Tcode: OBXR)
Execute
Double click on
D

Dwn pmt

Down payment

Chart of Accounts
Enter
Recon.acct

290300 (Sundry Debtors A/C)

Special G/L account

190200 (Adv. from customers A/C)

Save and enter

Scenario 1
Advance From Customer

: 100000

Customer Invoice

: 100000

1 Advance from Customer


Path: Accounting - Financial Accounting - Accounts Receivable - Document
Entry -Down Payment - F-29 - Down Payment (Tcode: F-29)
Document Date
Posting Date
Customer

Type
Period

DZ

Company code
Currency

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Account
Special G/L Ind

Account

290100 (Bank A/C)

Amount

100000

Enter
Amount

Save

2 Customer Line items


Path: Accounting - Financial Accounting - Accounts Receivable - Account FBL5N - Display/Change Line Items (Tcode: FBL5N)
Customer Account
Company Code
Select open items
Select Special G/L transactions
Execute (F8)

3 Create Customer Invoice (Tcode:F-22)


Path: Accounting - Financial Accounting - Accounts Receivable Document
Entry- FB70 Invoice (Tcode: FB70)
Click on Company Code (F7)
Company code
Enter
Customer
Invoice Date
Posting Date
G/L Acct
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D/C
Amount doc. Curr
Post (Ctrl+S)

4 Clear Down payment against Invoice


Path: Accounting - Financial Accounting - Accounts Receivable Account- F32 Clear (Tcode: F-32)
Account
Company code
Special G/L ind

Click on Process open items (Shift+F4)


Select Invoice and advance amount (Against which invoice you want settle
which advance). Observe amount entered and assigned amount should be
zero.
Go to Menu bar
Document simulate
Save (Ctrl+S)

Scenario 2
Advance from customer

: 100000

Customer Invoice

: 50000

1 Create Advance from customer (Tcode: F-29)


2 Customer Invoice (Tcode: FB70)
3 Transfer posting

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Path: Accounting - Financial Accounting - Accounts Receivable - Document
Entry - Down Payment - F-39 - Clearing (Tcode: F-39)
Document Date

Type

Posting Date

Period

DA

Company code
Currency

Account
Keep blank Invoice ref. field
Enter
Transfer posting

50000

Go to Menu bar
Document - simulate
Save

4 Clear Invoice against Down payment


Path: Accounting - Financial Accounting - Accounts Receivable Account- F32 Clear (Tcode: F-32)
Account
Company code
Click on Process open items (Shift+F4)
Select Invoice and transfer advance amount (Against which invoice you want
settle which transfer advance). Observe amount entered and assigned
amount should be zero.
Go to Menu bar
Document simulate
Save (Ctrl+S)

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Scenario 3
Advance from customer

: 100000

Customer Invoice

: 150000

1 Advance from customer (Tcode: F-29): Rs100000


2 Customer Invoice (Tcode: FB70): Rs150000
3 Transfer posting (Tcode: F-39): Rs100000
4 Reciept of Remaining amount (Tcode: F-28): Rs50000

Item Interest Calculation


Definition: System will calculate interest on Customer overdue invoices.
System will calculate interest each invoice wise, which is called item interest
calculation.
Ex:
Item Interest Calculation
Customer
Terms of payment
Interest on late payment

3600000 (Matrix Ltd)


0001
Immediately due net
15%
Late

Invoice Date
01.08.2011
15.08.2011
05.09.2011
25.09.2011
02.10.2011
12.10.2011

Amount
35000
45000
10000
5000
60000
155000

Aug
30
16

Sept
30
30
25
5

Oct
12
12
12
12
10

days
72
58
37
17
10

Interest
Interest
1035.61644
1072.60274
152.054795
34.9315068
246.575342

rounding
1035.62
1072.6
152.05
34.93
246.58
2541.78

Interest on late
12.10.2011

1.

payment
Balance

2541.78
157541.78

Define Interest Calculation Types

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Path: SPRO - SAP Reference IMG- Financial Accounting- Accounts Receivable
and Accounts Payable- Business Transactions- Interest Calculation- Interest
Calculation Global Settings- Define Interest Calculation Types (Tcode:OB46)
Execute
Click on New Entries (F5)
Int ID
Name

Item interest

Int calc.type

P (Item Interest Calculation)

Save and enter

2.

Prepare Item Interest Calculation

Path: Path: SPRO - SAP Reference IMG- Financial Accounting- Accounts


Receivable and Accounts Payable- Business Transactions- Interest
Calculation- Interest Calculation Global Settings- Prepare Item Interest
Calculation
Execute
Click on New Entries (F5)
Interest Ind.
Select No Cleared Items
Ref.Date

2 (Document date)

Calendar type

Select only calculate interest on debit items


Select post interest
Save and enter

3.

Define Reference Interest Rates

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Definition: Reference interest rate nothing but interest rate
Path: SPRO- SAP Reference IMG- Financial Accounting- Accounts Receivable
and Accounts Payable- Business Transactions- Interest Calculation- Interest
Calculation- Define Reference Interest Rates (Tcode: OBAC)
Execute
Click on New Entries (F5)
Ref.int.rate
Long text
Description
Date from
Currency

INR

Save and enter

4.

Define Time-Based Terms

Path: same path (Tcode: OB81)


Execute
Click on New entries (F5)
Int.Calc.Indicator
Currency Key

INR

Eff.From
Sequential number

Term

Debit interest: arrears interest calc.

Ref. interest rate


Save and enter

5.

Enter Interest Values

Path: Same path (Tcode: OB83)


Execute
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Click on New Entries (F5)
Reference

Valid from

Int.Rate

Save and enter

6.

Create Interest Income G/L Master Record (Tcode: FS00)

G/L Account

300020

Company Code
Click on Create
Go to Type/Description Tab
Account Group

INCO Incomes

Select P&L Statement acct


Short text

Interest Income A/C

G/L Acct Long Text

Interest Income A/C

Go to Control Data Tab


Select only balances in local crcy
Select line item display
Sort Key

001

Go to Create/Bank/Interest Tab
Field status group

G001

Save

7.

Assign Interest income and masking

Path: SPRO- SAP Reference IMG- Financial Accounting- Accounts Receivable


and Accounts Payable- Business Transactions- Interest Calculation- Interest
Posting- A/R: Calculation of Interest on Arrears (Tcode:OBV1)
Execute

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Click on Accounts (F7)
Chart of accounts
Enter
Acct symbol

Currency

G/L Acct

0003

INR

300020

1000

INR

++++++++ (Masking)

Save and enter

8.

Assign Interest Calculation Indicator in customer master

record (Tcode: FD02)


Customer
Company Code
Enter
Click on Company Code data (Ctrl+F2)
Interest Indic.
Save

9.

Post customer invoice with one month back date (Tcode: F-22)

10.

Calculate item interest

Path: Accounting - Financial Accounting - Accounts Receivable - Periodic


Processing - Interest Calculation - Item Interest Calculation - FINT - Item
Interest Calculation (Tcode: FINT)
Customer Account

From

To

Company code
Interest Indicator
Select Test Run
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Execute (F8)
Observe whether interest calculated properly or not
One time go back
Deselect Text run
Execute (F8)
Enter

11.

Customer line item report

Path: Accounting - Financial Accounting - Accounts Receivable - Account FBL5N - Display/Change Line Items (Tcode: FBL5N)
Customer Account
Company Code
Select open items
Execute (F8)
Observe customer is updated with interest or not

12.

Display document

Path: Accounting- Financial Accounting- Accounts Receivable- DocumentFB03 Display (Tcode: FB03)
Document number
Company code
Fiscal year
Enter
Screen Layout Per Company code (Customers)

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Account Group controls fields in the vendor master record. Account groups
are client level. Any company code can use these account groups with in the
client. But we can maintain fields at company code level also
1.

Define Screen Layout Per Company code (Customers)

Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts


Receivable and Accounts Payable- Customer Accounts- Master DataPreparations for Creating Customer Master Data- Define Screen Layout per
Company Code (Customers) (Tcode: OB21)
Execute
Click on New Entries (F5)
Company code
Enter
Select company code
Click on Edit Field Status (F2)
Double click on Account management
Select Head office field suppress
Save (Ctrl+S) and enter

2.

Create Customer Master Record (Tcode: FD01)

System will not show you head office field while creating vendor master
record in your company code

Screen Layout per Activity (Customers)


Activities in customer master records are creation, change and display
customer master records. For each activity, we can maintain field controls
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(Suppress, Required, Optional and Display). For ex: system should not allow
changing some critical fields even we are in change mode
1.

Define Screen Layout per Activity (Customers)

Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts


Receivable and Accounts Payable- Customer Accounts- Master DataPreparations for Creating Customer Master Data- Define Screen Layout per
Activity (Customers) (Tcode: OB20)
Execute
Double click on Change Customer (Accounting)
Double click on Company code data
Double click on Account Management
Select Reconciliation account as display mode
Save (Ctrl+S) and enter

2.

Change customer master record (Tcode: FD02)

Customer
Company code
Enter
Click on Company code data (Ctrl+F2)
Go to Account management Tab
Observe reconciliation account field as display mode

Head Office Vs Branch Office


Scenario: Wipro is our vendor. Wipro Company has some branches. Branches
and head office will provide service to us but we make payment to head office

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Wipro Head Office


Bangalore

Wipro Branch Office


Hyderabad

1.

Wipro Branch Office


Chennai

Wipro Branch Office


Delhi

Create two customer master records

Path: Accounting - Financial Accounting - Accounts Receivable Master


Records - FD01 - Create (Tcode: FD01)
Account Group
Company Code
Enter
Title
Name
Street
House Number
Postal code
City
Country

IN (India)

Click on Company Code Data (Ctrl+F2)


Recon.Account

290300 (Sundry Debtors A/C)

Sort key

031

Save
Head office number:

Account Group
Company Code
Enter

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Title
Name
Street
House Number
Postal code
City
Country

IN (India)

Click on Company Code Data (Ctrl+F2)


Recon.Account

290300 (Sundry Debtors A/C)

Head Office
Sort key

031

Save
Branch Office number

2. Postings in Branch
Path: Accounting - Financial Accounting - Accounts Receivable Document
Entry- FB70 Invoice (Tcode: FB70)
Click on Company Code (F7)
Company code
Enter
Customer
Invoice Date
Posting Date
G/L Acct
D/C
Amount doc. Curr
Post (Ctrl+S)

3. Head office/Branch Report


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Path: Accounting - Financial Accounting - Accounts Receivable - Account FBL5N - Display/Change Line Items (Tcode: FBL5N)
Customer Account
Company Code
Select open items
Execute (F8)

4. Incoming Payment
Path: Accounting - Financial Accounting - Accounts Receivable
Document Entry - F-28 - Incoming Payments (Tcode: F-28)
Document Date
Posting Date
Bank Data Section
Account
Amount
Open Item Selection Section

Type

DZ

Period

Company code
Currency

290100 (Bank A/C)


25000

Account
Enter
Select Invoice against which invoice you are receiving payment from
Customer. Amount entered and assigned amount should be same
Note: Selection means blue color and deselection means block color.
Double click on block color is selection and double click on blue color is
deselection
Post (Ctrl+S)

Dunning procedure

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Definition: If the business partners may fail behind on payments you can
send them a payment reminder or a dunning notice to remind them of their
outstanding debts
1.

Define Dunning procedure

Definition: The Dunning procedure controls how dunning carried out by the
system. We can define as many dunning procedures as we like.
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Business Transactions- Dunning- Dunning
Procedure- Define Dunning Procedures (Tcode: FBMP)
Execute
Click on New procedure (F9)
Dunn.Procedure
Name
Dunning interval in days
No. of dunning levels
Select Standard transaction dunning
Ref. Dunning procedure for Texts
Click on Dunning levels (F5)
Ignore warning messages
1

Calculate interest

Always dun

Print all items

Click on Charges (F6)


Currency

INR

Enter
Dunn.Level

Dunn.charges

10
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2

20

30

40

50

Click on minimum amounts (F7)


Currency

INR

Enter
Dun

Minimum amounts

10000

20000

30000

40000

50000

Click on Dunning Texts (F8)


Company code
Select Customer
Enter
Click on New Company code (F9)
Company code
Enter
Select Dunning by dunning area
Select Separate notice per dunning level
Save and enter
Click on Dunning Texts
Company code
Select Customer
Enter
Dun

Form

F150_BE_DUNN_01

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2

F150_BE_DUNN_01

F150_BE_DUNN_01

F150_BE_DUNN_01

F150_BE_DUNN_01

One time go back


Save and enter

20.2. Assign dunning to customer master (Tcode: FD02/ XD02)


Customer
Company code
Enter
Click on company code data (Ctrl+F2)
Go to Correspondence Tab
Dunn.Procedure
Save

20.3. Run the Dunning procedure


Path: Accounting- Financial Accounting- Accounts Receivable- Periodic
Processing- F150 Dunning (Tcode: F150)
Run Date
Identification
Go to Parameter Tab
Dunning date
Docmnts posted up to
Company code
Customers

From

To

Save
Go to Status Tab
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Status is Parameters were maintained
Click on Schedule (F7)
Select Start Immediately
Click on Schedule (F5)
Keep enter until status is Dun. Selection is complete
Click on dunning list (Shift+F6)
Enter
One time go back
Click on Dunning print out (F6)
Enter
Keep on enter until status is dun.Printout is complete
Click on Dunn.history (Shift+F9)
Account type

D (Customers)

Company code
Customer

From

To

Execute (F8)
Select ______
Click on Display dunning notice (Shift+F4)
Click on Print preview
We can see Dunning notice 1
Three times go back
Click on Indiv.Dunn.notice
Company code
Customer
Click on Print out (F6)

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Click on yes
Go to Menu bar
System Services Output Control
Select spool number

BANK ACCOUNTING
1. Creation of House Banks
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Bank
Accounting - Bank Accounts - Define House Banks (Tcode: FI12)
Execute
Company Code
Enter
Click on New Entries (F5)
House Bank
Bank Country

IN (India)

Bank Key
Click on create
Bank name
Street
City
Bank Branch
Enter
Double click on bank Accounts folder
Click on New Entries (F5)
Account ID
Description
Bank Account
G/L

290100 (Bank A/C)


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Currency

INR (Indian Rupees)

Save and enter

Notes:
Bank Key: you specify the bank key under which bank data from the
respective country is stored
SWIFT Code: SWIFT Code will be useful for international payments. SWIFT
Code identifies a bank throughout the world
Bank Group: Bank Group serves to classify banks in such a way that
payment transactions within a group are processed as quickly as possible
(bank chain optimization).
Post Bank Acct: If you set the indicator the account to be treated as a post
office bank current account. This field is used in Germany and Switzerland

2. Maintain Check Leaves


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Business Transactions- Outgoing
Payments- Automatic Outgoing Payments- Payment Media- Check
Management- Define Number Ranges for Checks (Tcode: FCHI)
Execute
Paying company Code
House bank
Account ID
Click on Change (Shift+F5)
Click on Create (Shift+F5)
Lot Number

1
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Check number

100101

To

100200

Short Info

Bank Check lots

Purchasing date
Enter
Save

3. Select Relevant to cash flow in bank account (Tcode: FS00)


G/L Account

290100

Company code
Click on Change
Go to Create/Bank/Interest Tab
Select Relevant to Cash flow
Save (Ctrl+S)

Note: this indicator determines the G/L Account is a cash flow account. The
following Accounts typically define as cash flow account

Bank Account

Account for bank charges

Cheque clearing account

Clearing account for incoming payment

Note: We have to know payment document number then only we can issue
cheque

4. Define Void Reason Codes


You define void reason codes for prenumbered checks.

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The use of prenumbered checks is listed by using the check management
program. You must mark check forms as voided if they were made invalid by
mistake, if they were stolen or if they were made void due to other reasons. To
do this, specify the reason for voiding by using a ratio.
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Accounts
Receivable and Accounts Payable- Business Transactions- Outgoing
Payments- Automatic Outgoing Payments- Payment Media- Check
Management- Define Void Reason Codes (Tcode: FCHV)
Execute
Click on New Entries (F5)
Reason
Void Reason Code

Check Stolen

Save (Ctrl+S) and enter


Check Issue process and Check Register
1. Check Issue to supplier
Prerequisites: Select Relevant to cash flow in bank general ledger master
record. We have to know payment document number, then only we can issue
check to supplier
Path: Accounting- Financial Accounting- Accounts Payable- EnvironmentCheck Information- Create- FCH5 - Manual Checks (Tcode: FCH5)
Payment document no.
Paying company code
Fiscal Year
House Bank
Account ID
Check number
Enter

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Post (Ctrl+S)

2. Check Register Report


Path: Accounting- Financial Accounting - Accounts Payable - Environment Check Information - Display - FCHN - Check Register (Tcode: FCHN)
Paying company code
House bank
Account ID
Execute (F8)
We can see list of checks issued against payments

3. Void unused checks


Path: Accounting- Financial Accounting - Accounts Payable - Environment Check Information Void - FCH3 - Unused Checks (Tcode: FCH3)
Paying company code
House Bank
Account ID
Check number from
Void reason code
Click on Void (Shift+F5)
See Report (Tcode: FCHN)

4. Void Issued Checks


Path: Accounting- Financial Accounting - Accounts Payable - Environment Check Information Void - FCH9 - Issued Checks (Tcode: FCH9)
Paying company code
House Bank

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Account ID
Check number
Void reason code
Click on Void (Shift+F5)
See Report (Tcode: FCHN)

5. Cancel Payment
Path: Accounting- Financial Accounting - Accounts Payable - Environment Check Information Void - FCH8 - Cancel Payment (Tcode: FCH8)
Paying company code
House bank
Account ID
Check Number
Void Reason code
Reversal Reason
Click on Cancel Payment (Shift+F5)
See Report (Tcode: FCHN)
See Report (Tcode: FB03)

Automatic Payment Program (APP)


Vendor payments can be manual or automatic. The general aspects related to
vendor payments are terms of payments, method/media of payment, manual
and automatic payment
The payment methods are as follows,

C = Cheque

E = ECS (Electronic Clearing System)

T = Bank Transfer

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A = Cash

D = Demand Draft/Pay Order (Needs to be created in SAP)

Automatic payments are configured to make vendor payments based on


payment terms. The due date wise/vendor invoice wise payment proposal will
be generated and this proposal can be edited to make the selective payments.
After the payment list has been finalized, the payment run will be executed
and accounting entry will be posted automatically. Payment advice and
cheque will be printed through system
Configuration for APP:
1. Set up Payment Methods per Country for Payment
Transactions
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Accounts
Receivable and Accounts Payable- Business Transactions- Outgoing
Payments- Automatic Outgoing Payments- Payment Method/Bank Selection
for Payment Program- Set Up Payment Methods per Country for Payment
Transactions
Execute
Click on New Entries (F5)
Country

IN (India)

Pymt Method

Description

Check

Select Outgoing payments


Select Check
Select Allowed for Personnel payments
Select Street, P.O.box or P.O.box pst.code

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Document type for payment

ZP

Clearing document type

ZV

Payment medium program

RFFOUS_C

Save (Ctrl+S) and enter

Note: Payment methods will be created at country level

2. Set up Payment Methods per Company Code for Payment


Transactions
Path: Same path
Execute
Click on New entries (F5)
Paying co.code
Pymt Method

Minimum amount

100

Maximum amount

99999999

Select Foreign Business partner allowed


Select foreign currency allowed
Select Cust/vendor bank abroad allowed
Go to Form data
Form for the payment medium

F110_IN_CHECK

Drawer on the form


Save and enter

Note:
Single payment for marked item: This indicator Causes open items which
contain this payment method to be paid individually. All items, for which the

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payment method so indicated is entered explicitly, are paid individually. If the
payment method is not specified explicitly but is instead selected by the
payment program, several items can be paid together.
Payment per due date: Indicator which specifies that only items that are due
on the same day will be paid with a single payment.

3. Set up Paying Company Codes for Payment Transactions


Path: Same path
Execute
Click on New Entries (F5)
Paying co.code
Minimum amount for incoming

100

payment
Minimum amount for outgoing

100

paymen
Click on forms
Form for the payment advice

F110_IN_AVIS

Click on Sender details


Text ID

ST

Letter header

F_0001_HEADER

Footer

F_0001_FOOTER

Sender

F_0001_SENDER

Save and enter

4. Set up All Company Codes for Payment Transactions


Path: Same path
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Execute
Click on New entries (F5)
Company code
Paying company code
Vendor
Sp. G/L transactions to be paid

Save and enter

Note: Sp. G/L transactions to be paid, all open vendor items that have been
entered with one of the specified special G/L indicators are included in the
payment. Advances will be adjusted against invoice. System will generate
check for remaining balance amount

5. Set up Bank Determination for Payment Transactions


Path: Same path
Execute
Click on position button
Paying co.code
Enter
Select Paying company code
Double click on ranking order
Click on New Entries (F5)
PM

Crcy

INR

Rank order

House BK
Double click on Bank Accounts

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Click on New Entries (F5)
House bank
Pay. method

Currency

INR

Account ID
Bank Sub account

290100

Double click on Available amounts


Click on New entries (F5)
House bank
Account ID
Days

999

Currency

INR

Available for outgoing payments

99999999

Save and enter

Note:
Days: The specified amounts are only planned for payments where the value
date on the bank account is expected within the number of days given here.
Using the value dates, you can plan amounts on a time scale. As a rule, you
only need this if you have bill of exchange payments to be posted before their
due date. In all other cases, you can enter 999 and then the value dates will
not be taken into consideration.

Available for outgoing payments:


The amount planned here is available for outgoing payments. The amount is
only used for payments with which the bank debit entry is expected during
the number of days displayed

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6. Maintain number ranges 20 for Document type ZP (Tcode:


FBN1)
Company Code
Click on change interval
Click on Insert interval (Shift+F1)
No

20

Year
From number

2000000000

To Number

2099999999

Enter
Save and enter

7. Maintain Term of payments, Payment method and house bank


in vendor master record (Tcode: FK02)

Vendor
Company Code
Company code data
Select payment transactions
Enter
Payt Terms
Payment methods

House bank
Save

8. Manual Check Printing

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Path: Accounting- Financial Accounting- Accounts Payable- Document EntryOutgoing Payment- F-58 - Post + Print Forms (Tcode: F-58)
Company Code
Payment method

House Bank
Check lot number

Printer for forms

LP01

Select print immediately


Click on Enter Payments (Shift+F1)
Document Date

Type

Posting Date
Bank posting details

Period

KZ

Company Code
Currency/Rate

Amount
Payee

25000

Vendor

4000000

Click on Process open items (Shift+F4)


Select invoice against which invoice you are giving check
Go to Menu bar
Document simulate
Post (Ctrl+S)
Go to Menu bar
System Services Output control
Execute (F8)
Select spool number
Click on Display Content (F6)
We can see check

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9. Run Automatic payment program
Path: Accounting - Financial Accounting - Accounts Payable - Periodic
Processing - F110 - Payments (Tcode: F110)
Run Date
Identification
Go to Parameter tab
Company Codes
Pmt meths

Next p/date
Vendor

9999999999

Save
Go to Status Tab
Observe Status is Parameters have been entered
Go to Additional log tab
Select Due date check
Select payment selection in all cases
Select line items of the payment documents
Vendor

9999999999

Save
Go to Status Tab
Click on proposal (Shift+F1)
Select Start Immediately
Enter
Keep on enter until Status is Payment proposal has been created
Click on Edit proposal (Shift+F4)
Enter

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Go to printout/data medium Tab
RFFOUS_C
Click on Maintain variants (F5)
Select For all Selection screens
Enter
Programs run date
Identification feature
Paying Company Code
House bank
Account Id
Check lot number
Select Print checks
Select Print payment advice notes
Select Print payment summary
Printer

LP01

Printer

LP01

Printer

LP01

Select Print immediately


Select Print immediately
Select Print immediately
Keep blank Number of sample printouts field
One time go back
Enter
Meaning
Save
One time go back
Save
Go to Status Tab
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Click on Pmnt run (F7)
Select start immediately
Select Create payment medium
Enter
Keep on Enter until Status is Payment run has been carried out and Posting
orders: ___ generated, _____ completed
Go to menu bar
System- Services - output control
Execute (F8)
Select spool no.
Click on Display Contents (F6)

Alternative payee
We make payments to alternative payee on behalf supplier or service
provider. Check will be generated in the name of alternative payee. The
Alternative payee concept is applicable to Automatic Payment Program (APP)

1. Create two vendor master records


Path: Accounting - Financial Accounting - Accounts Payable - Master Records
- FK01 - Create (Tcode: FK01)
Company Code
Account Group
Enter
Title
Name

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Search Term
Street
House number
Postal code
City
Country

IN (India)

Enter, enter and enter


Recon.account

190100

Sort Key

012

Cash mgmnt group

A1

Enter
Payt terms

0001 (Payable Immediately Due Net)

Payment Methods

C (Check)

House bank
Save (Ctrl+S)

Company Code
Account Group
Enter
Title

Company

Name
Search Term
Street
House number
Postal code
City
Country

IN (India)

Enter and enter


Alternative payee
Click on permitted payee
Payee
Click on Copy and close (Shift+F1)
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Recon.account

190100

Sort Key

012

Cash mgmnt group

A1

Enter
Payt terms

0001 (Payable Immediately Due Net)

Save (Ctrl+S)

2. Post Invoice (Tcode: FB60)


Path: Accounting - Financial Accounting - Accounts Payable - Document
Entry - FB60 Invoice (Tcode: FB60)
Click on Company Code (F7)
Company code
Enter
Vendor
Invoice Date
Amount
G/L Acct

D/C

Amount in doc. Curr

400100

S Debit

Post (Ctrl+S)
Go to Menu bar
Document Display
We can see document

3. Run Automatic Payment Program (APP) (Tcode: F110)


Observe whether system is generating check in the name of alternative payee
which is assigned in vendor master record as alternative payee

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Checks Deposit
1. Create two G/L master records (Tcode: FS00)
Check Deposit A/C
G/L Account

290110

Company code
Click on Create
Go to Type/Description Tab
Account Group

ASST Assets

Select Balance sheet account


Short Text

Checks Deposit A/C

G/L Acct Long Text

Checks Deposit A/C

Go to Control data Tab


Account Currency

INR (Indian Rupees)

Select only balances in local crcy


Select Open item management
Select Line item display
Sort Key

001 (Posting Date)

Go to Create/Bank/Interest Tab
Field Status Group

G005

Save (Ctrl+S)

Checks Issue A/C


G/L Account

290120

Company code
Click on Create
Go to Type/Description Tab

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Account Group

ASST Assets

Select Balance sheet account


Short Text

Checks Issue A/C

G/L Acct Long Text

Checks Issue A/C

Go to Control data Tab


Account Currency

INR (Indian Rupees)

Select only balances in local crcy


Select Open item management
Select Line item display
Sort Key

001 (Posting Date)

Go to Create/Bank/Interest Tab
Field Status Group

G005

Save (Ctrl+S)

2. Define Posting Keys and Posting Rules for Check Deposit


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank
Accounting- Business Transactions- Check Deposit- Define Posting Keys and
Posting Rules for Check Deposit
Execute
Chart of Accounts
Enter
Click on New Entries (F5)
Account

Text
Main Bank
Check Deposits
Check Issue

Save (Ctrl+S) and enter


Double click on Assign Accounts to Account Symbol Folder
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Act Symbol

Acct Mod.

Currency

G/L acct

INR

290100

INR

290110

INR

290120

Save (Ctrl+S)
Double click on Keys for Posting Rules
Click on New Entries (F5)
Posting Rule

Text
Check Deposit
Check Issue

Save (Ctrl+S)
Double click on Define Posting Rules
Click on New Entries (F5)
Posting Rule
Posting area
Posting key

40 (Debit)

Acct symbol
Document type

DZ

Posting Type

8 (Clear cred.subl.acct)

Save (Ctrl+S)

3. Create and Assign Business Transactions


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank
Accounting- Business Transactions- Check Deposit- Create and Assign
Business Transactions
Execute
Click on New Entries (F5)
Tran
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+-

Post. Rule
Text

Incoming Check Deposit

Save and enter

4. Define Variant for Check Deposit


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank
Accounting- Business Transactions- Check Deposit- Define Variants for Check
Deposit
Execute
Click on Create (F8)
Variant
Name

Check Deposit Variant

No. of Line items

Enter
Lgth

14

Double click on 10-digit check number


Output Lgth

06

Click on Page down


Double click Customer number

(sel.)

Output Lgth

10

Enter
Double click on Invoice reference
Output Lgth

(sel.)
10

Enter
Double click on Invoiced amount
Output Lgth

(sel.)
15

Enter
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Double click on Value date

(sel.)

Output Lgth

10

Enter
Save
Click on Create Request (F8)
Short Description

Check deposit variant

Enter and enter


Select Variant
Click on Activate

5. Enter Check deposit


Path: Accounting- Financial Accounting- Banks- Incomings- Check DepositFF68 - Manual Entry (Tcode: FF68)
Double click on FF68 - Manual Entry
Start variant
Processing type

4 (Further Processing Online)

Enter
Ignore warning messages
Bank key
Bank Account
Currency

INR

Group

1234

User name

SAPUSER

Entry date
Transaction
Posting date
Value date
Currency

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Enter
Amount
Check
Customer
Inv.Ref.
Amount
Value date
Save (Ctrl+S)
Go to menu bar
Check Deposit Transaction Post Individual List

Bank Reconciliation Statement (BRS)


BRS means difference between bank pass book and cash book. Ex: Cheque
deposit but not cleared, Cheque issue but not paid, Bank Charges, Interest
income etc. We do reconciliation day wise, weekly, monthly, quarterly, yearly
etc. System will post differences automatically
1. Define Posting Keys and Posting Rules for Manual Bank
Statement
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank
Accounting- Business Transactions- Payment Transactions- Manual Bank
Statement- Define Posting Keys and Posting Rules for Manual Bank
Statement
Execute
Chart of Accounts
Enter
Click on New Entries (F5)

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Account

Text
Bank Account
Check Deposit
Check Issue
Bank Charges
Interest Income
Interest Expense

Save (Ctrl+S) and enter


Double click on Assign accounts to account symbol folder
Click on New Entries (F5)
Act Symbol

Currency

G/L Account

INR

290100 (Bank A/C)

INR

290110 (Check Deposit A/C)

INR

290120 (Check Issue A/C)

INR

400020 (Bank Charges A/C)

INR

300020 (Interest Income A/C)

INR

400080 (Interest Expense A/C)

Save (Ctrl+S)
Double click on Create keys for posting rules folder
Click on New Entries (F5)
Posting rule

Text
Check Deposit
Check Issue
Bank Charges
Interest Income
Interest Expense

Save (Ctrl+S)
Double click on posting rules folder
Click on New Entries (F5)
Posting rule
Posting area

1 (Bank Accounting)

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Debit
Posting Key

40 (Debit)

Credit
Posting key

50

Acct Symbol

Acct Symbol

Document type

SA

Posting type

1 (Post G/L Account)

Click on Next Entry (F8)

Posting rule
Posting area
Debit
Posting Key

40 (Debit)

1 (Bank Accounting)
Credit
Posting key
50 (Credit)

Acct Symbol

Acct Symbol

Document type

SA

Posting type

1 (Post G/L Account)

Click on Next Entry (F8)

Posting rule
Posting area
Debit
Posting Key

40 (Debit)

1 (Bank Accounting)
Credit
Posting key
50

Acct Symbol

Acct Symbol

Document type

SA

Posting type

1 (Post G/L Account)

Click on Next Entry (F8)

Posting rule
Posting area
Debit
Posting Key

40 (Debit)

1 (Bank Accounting)
Credit
Posting key
50

Acct Symbol

Acct Symbol

Document type

SA

Posting type

1 (Post G/L Account)

Click on Next Entry (F8)


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Posting rule
Posting area
Debit
Posting Key

1 (Bank Accounting)
Credit
Posting key
50

40 (Debit)

Acct Symbol

Acct Symbol

Document type

SA

Posting type

1 (Post G/L Account)

Click on Next Entry (F8)

2. Create and Assign Business Transactions


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank
Accounting- Business Transactions- Payment Transactions- Manual Bank
Statement- Create and Assign Business Transactions
Execute
Click on New Entries (F5)
Tran

+-

Post. Rule

Text
Check Deposit

Check Issue

Bank Charges

Interest Income

Interest Expense

Save (Ctrl+S) and enter

3. Manual Bank Statement


Path: Accounting- Financial Accounting- Banks- Incomings- Bank StatementFF67 - Manual Entry (Tcode: FF67)
Scenario:

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1 Opening balance

2 Checks deposit

50000

3 Interest Income

3000

4 Bank Charges

-600

5 Checks Issued

-30000

6 Interest Expenses

-1000

Closing Balance

21400

Bank Account
Currency
Statement Number
Statement Date
Opening Balance
Closing Balance
Enter
Ignore warning messages
Tran

Value date

Amount
50000
3000
600300001000-

Enter
Observe Amount Entered and Bank Statement amounts are same
Save (Ctrl+S)
Go to Menu bar
Bank Statement - Post - Individual statement
Observe processing statistics

Bills of Exchange

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Bill of exchange is a negotiable instrument which can be transferable as per
Negotiable Instrument Act. Process sequence as follows,

Post customer invoice


Customer A/C
To Service Revenue A/C

Draw bill on customer


Bills Receivable A/C
To Customer A/C

Discount bill with banker


Bank A/C
Bank Charges A/C
To Bills Discount A/C

Reverse Contingent Liability


Bills Discount A/C
To Bills Receivable A/C

1. Creation of General Ledger Master Records (Tcode: FS00)


Bills Receivables A/C
G/L Account

290130

Company code
Click on Create
Go to Type/Description Tab
Account Group

ASST Assets

Select Balance sheet account


Short Text

Bills Receivables A/C

G/L Acct Long Text

Bills Receivables A/C

Go to Control data Tab

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Account Currency

INR (Indian Rupees)

Recon. Account for acct type

D Customers

Select Line item display


Sort Key

031 (Posting Date)

Go to Create/Bank/Interest Tab
Field Status Group

G067

Save (Ctrl+S)
Bills Discount Account
G/L Account

190130

Company code
Click on Create
Go to Type/Description Tab
Account Group

LIAB Liabilities

Select Balance sheet account


Short Text

Bills Discount Account


A/C

G/L Acct Long Text

Bills Discount Account


A/C

Go to Control data Tab


Account Currency

INR (Indian Rupees)

Select Open Item Management


Select Line item display
Sort Key

001 (Posting Date)

Go to Create/Bank/Interest Tab
Field Status Group

G001

Select Post Automatically Only


Save (Ctrl+S)

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Note:
Post Automatically Only: Indicates that this account can only be posted to by
the system using account determination tables
2. Define Alternative Reconcil.Acct for Bills/Exch.Receivable
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank
Accounting- Business Transactions- Bill of Exchange Transactions- Bill of
Exchange Receivable- Post Bill of Exchange Receivable- Define Alternative
Reconcil.Acct for Bills/Exch.Receivable (Tcode: OBYN)
Execute
Double click on
Acct type

SGL Ind.

Name

Description

D (Customer)

B/e rec

Bill of exchange receivable

Chart of Accounts
Enter
Recon. Acct

Special G/L Account

290300 (Sundry Debtors A/C)

290130 (Bills Receivables A/C)

Save (Ctrl+S) and enter

Note:
Recon acct is assigned customer master records. Against reconciliation
account we assign bills receivable A/C. when ever we receive from customer;
system automatically post to bills receivable account

3. Define Accounts for Bill of Exchange Transactions

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Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank
Accounting- Business Transactions- Bill of Exchange Transactions- Bill of
Exchange Receivable- Post Bill of Exchange Receivable- Define Accounts for
Bill of Exchange Transactions (Tcode: OBYH)
Execute
Double click on Bank Discount Charges BDS
Chart of Accts
Enter
Account

400020 (Bank Charges A/C)

Save (Ctrl+S) and enter


Note:
Through BDS transaction system will post bank charges automatically by
account 400020

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4. Define Bank Sub Accounts


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank
Accounting- Business Transactions- Bill of Exchange Transactions- Bill of
Exchange Receivable- Present Bill of Exchange Receivable at Bank- Define
Bank Subaccounts (Tcode: OBYK)
Execute
Click on New Entries (F5)

ChAc Bank Acct

Usage

SGL

Customer Bank Sub Acct for

in

Recon.

Liab

Act
290100

D Discounting

290300

190130 (Bills

(Sundry

Discount A/C)

Debtors
A/C)
Save (Ctrl+S) and enter

Bills Receivable Process:


1. Draw bill on customer
Path: Accounting- Financial Accounting- Accounts Receivable- Document
Entry- Bill of Exchange- F-36 Payment (Tcode: F-36)

191

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Document Date

Type

DZ

Posting Date

Period

Company Code
Currency/Rate

INR

Select Incoming payment


PstKy

09 (Special G/L Debit)

Account
SGL Ind

W (Bills Receivables)

Enter
Amount

100000

Due on
Click on process open items (Shift+F4)
Click on Process open items (Shift+F4)
Select invoice against which invoice you are drawing bill on customer and
remaining invoices deselect
Observe amount entered and assigned should be same
Go to Menu bar
Document Simulate
Post (Crl+S)

2. Discounting Bills with Bank


Path: Same path (Tcode: F-33)
Document Date

Type

Posting Date

Period

DA

Company Code
Currency/Rate

Usage

D Discounting

Bank Account

290100 (Bank A/C)

INR

Amount
Bank Charges
Click on Select Bill of Exch. (Shift+F7)

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Doc. Number
Enter
Go to Menu bar
Document Simulate
Save (Ctrl+S)

3. Reverse Contingent Liability


Path: Same path (Tcode: F-20)
Document Date

Type

Posting Date

Period

DA

Company Code
Currency/Rate

G/L Account

290130 (Bills Receivable A/C)

Usage

D Discounting

INR

Due by
Ignore Warning Message
Save (Ctrl+S)

Cash Journal
The cash journal is a subledger of Bank Accounting. It is used to manage a
company's cash transactions. The system automatically calculates and
displays the opening and closing balances, and the receipts and payments
totals. You can run several cash journals for each company code. You can also
carry out postings to G/L accounts, as well as vendor and customer accounts.
Note:
You should run a separate cash journal for each currency

193

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Cash Journal nothing but Petty Cash Account

1. Create General Ledger Master Records (Tcode: FS00)


Petty Cash Account
G/L Account

290140

Company code
Click on Create
Go to Type/Description Tab
Account Group

ASST Assets

Select Balance Sheet Account


Short Text

Petty Cash A/C

G/L Acct Long Text

Petty Cash Account

Go to Control Data Tab


Account Currency

INR (Indian Rupees)

Select Only Balances in Local Crcy


Select Line Item Display
Sort Key

001 (Posting Date)

Go to Create/Bank/Interest Tab
Field Status Group

G001

Select post automatically only


Select Relevant to Cash Flow
Save (Ctrl+S)

Cash Transfer from Bank A/C


G/L Account

290150

Company code
Click on Create

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Go to Type/Description Tab
Account Group

ASST Assets

Select Balance Sheet Account


Short Text

Cash Tr from Bank A/C

G/L Acct Long Text

Cash Transfer from Bank Account

Go to Control Data Tab


Account Currency

INR (Indian Rupees)

Select Only Balances in Local Crcy


Select Open Item Management
Select Line Item Display
Sort Key

001 (Posting Date)

Go to Create/Bank/Interest Tab
Field Status Group

G001

Select Relevant to Cash Flow


Save (Ctrl+S)

Cash Transfer to Bank A/C


G/L Account

290160

Company code

4001

Click on Create
Go to Type/Description Tab
Account Group

ASST Assets

Select Balance Sheet Account


Short Text

Cash Tr to Bank A/C

G/L Acct Long Text

Cash Transfer to Bank Account

Go to Control Data Tab


Account Currency

INR (Indian Rupees)

Select Only Balances in Local Crcy

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Select Open Item Management
Select Line Item Display
Sort Key

001 (Posting Date)

Go to Create/Bank/Interest Tab
Field Status Group

G001

Select Relevant to Cash Flow


Save (Ctrl+S)

Office Supplies A/C


G/L Account

400110

Company code

4001

Click on Create
Go to Type/Description Tab
Account Group

EXPN Expenses

Select P&L Statement Account


Short Text

Office Supplies A/C

G/L Acct Long Text

Office Supplies Account

Go to Control Data Tab


Account Currency

INR (Indian Rupees)

Select Only Balances in Local Crcy


Select Line Item Display
Sort Key

001 (Posting Date)

Go to Create/Bank/Interest Tab
Field Status Group

G001

Save (Ctrl+S)

Cash Sales A/C

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G/L Account

300110

Company code

4001

Click on Create
Go to Type/Description Tab
Account Group

INCO Incomes

Select P&L Statement Account


Short Text

Cash Sales A/C

G/L Acct Long Text

Cash Sales Account

Go to Control Data Tab


Account Currency

INR (Indian Rupees)

Select Only Balances in Local Crcy


Select Line Item Display
Sort Key

001 (Posting Date)

Go to Create/Bank/Interest Tab
Field Status Group

G001

Save (Ctrl+S)

2. Amount Limit
Use
You use these functions to define limit values for the FI cash journal; where
these limits are reached and exceeded, the user is prompted (in an
information dialog box) to run certain activities. The check is always
performed in the first local currency of the company code.
In the countries of the European Union, these functions are used to draw
attention to the legal requirement for identifying the payer (money
laundering law)
Activities
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Company code:
You do not have to enter a company code. The entry is then valid for all
company codes within a client that use the currency specified as the first local
currency.
Currency:
Each amount must be specified by the classification of the currency. If you
specify a company code, the currency of the company code is entered in the
currency field and you cannot change this.
Date and amount:
The amount limits are defined time-dependent ("Valid From").
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank
Accounting- Business Transactions- Cash Journal- Amount Limit
Execute
Click on New Entries (F5)
CoCd
Crcy

INR (Indian Rupees)

Valid from
Amount

20000

Save (Ctrl+S) and enter

3. Define number range intervals for cash journal documents


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank
Accounting- Business Transactions- Cash Journal- Define Number Range
Intervals for Cash Journal Documents
Execute
CoCd
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Click on Change Interval
Click on Insert Interval (Shift+F1)
No

From Number

To Number

01

9999999999

Enter
Save (Ctrl+S) and enter

4. Set Up Cash Journal


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank
Accounting- Business Transactions- Cash Journal- Set Up Cash Journal
Execute
Click on New Entries (F5)
Company Code
CJ Number
G/L Account

290140 (Petty Cash A/C)

Currency

INR (Indian Rupees)

AB

KZ

KZ

DZ

DZ

Cash Journal Name


Save (Ctrl+S) and Enter

5. Create, Change, Delete Business Transactions


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank
Accounting- Business Transactions- Cash Journal- Create, Change, Delete
Business Transactions (Tcode: FBCJC2)
Execute

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Click on New Entries (F5)
Company Code

Bus.

G/L

Tran

Account

Cash Journal business Trans

.
Type
C

290150

CASH TRANSFER FROM BANK

290160

CASH TRANSFER TO BANK

PAYMENT FROM CUSTOMER

PAYMENT TO VENDORS

400110

OFFICE SUPPLIES

300110

PETTY CASH SALES

Save (Ctrl+S) and enter

6. Set Up Print Parameters for Cash Journal


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Bank
Accounting- Business Transactions- Cash Journal- Set Up Print Parameters
for Cash Journal
Execute
Click on New Entries (F5)
CoCd
Cash Jour. Print Program

RFCASH20

Corr.

SAP18 (Cash Document)

Save (Ctrl+S) and enter

7. Petty Cash Postings


Path: Accounting- Financial Accounting- General Ledger- Posting- FBCJ Cash Journal Posting (Tcode: FBCJ)

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Click on Change Cash Journal (Shift+F5)
Company Code
Cash Journal
Enter
Go to Cash Receipt Tab
Business Transaction

Amount

Customer

CASH TRANSFER FROM BANK

5000

PETTY CASH SALES

1000

PAYMENT FROM CUSTOMER

500

4000000

Business Transaction

Amount

Customer

CASH TRANSFER TO BANK

600

OFFICE SUPPLIES

1000

PAYMENT TO VENDORS

300

Vendor

Click on Post (F6)


Go to Cash Payments Tab
Vendor

4000000

Click on Post (F6)

Extended Withholding Tax


Withholding Tax nothing but TDS (Tax Deduct at Source)
Withholding tax is an income tax which is deducted at the source of the
revenue. The party that is subject to tax does not remit the withholding tax to
the Tax authorities himself.
As SAP system allow defining two different tax types in withholding tax
namely one for invoice posting and one for payment posting. Client
requirement can be achieved with SAP standard functionality

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The tax collected will be deposited in a separate GL accounts and can be
made automatic assignment, so at the time of posting automatically tax
account will be updated
All the withholding settings can be done by using Country India Version
(CIN) so that the requisite forms will be automatically updated and available
for printing
The following section of Income Tax will be covered in extended withholding
tax of SAP
Section

Description

192

TDS on Salaries

193

TDS on Interest on securities

194A

TDS on interest other than securities

194C

TDS on payments to contractors

194H

TDS on Commission and brokerage

194I

TDS on rent

194J

TDS on prof & Tech Services

195

Payment to foreign nationals

206C

Tax Collected at source

The Aspects related to TDS are discussed under the following heads:
1. Location for TDS Processing
TDS processing, accounting will takes place in the respective regions and
payments will be done at corporate office
2. Information required to process TDS calculation
Vendor account will be assigned with one TDS code, if applicable. TDS code
nothing but TDS rate. This TDS code will be the default TDS code for all the
transactions with the vendor. A user can however, change the TDS code

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during the transaction entry. This is provided to ensure correct deduction of
tax in cases where more than one TDS rate is applicable to the same vendor
due to different nature of transactions
3. Time of Tax Deduction
As per Income Tax Act, TDS is required to be deducted on accrual of expenses
or payment whichever is earlier. Accordingly, TDS has to be deducted at the
time of bill passing. In respect of advances given to vendors, TDS will be
deducted while making payment. TDS will be deducted on a transaction-totransaction basis
TDS will be deducted on all the transactions with a vendor once a TDS code is
defined in master record of such vendor
Each of these TDS codes will be defined separately for deduction at the time
of booking the expenses or at the time of payment
4. Printing of TDS Certificates
TDS certificates can be printed vendor wise at corporate office or location.
Once TDS certificate has been generated at corporate or location, system will
not allow to print TDS certificate, only duplicate copy can be printed. System
will provide for generation of annual return on yearly basis
5. Printing of Annual Return
Classify the vendors for calculating withholding tax, whether individual,
company, partnership firm, etc. Standard SAP has only two classifications,
individual and company. There is no separate classification as partnership

Configuration for Withholding Tax

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1. Check withholding Tax countries
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Basic Settings- Check Withholding Tax Countries
Execute
Click on New Entries (F5)
Cty

IN

WCty

IN

Description

India

Save and enter

2. Define Withholding Tax Keys


Definition: If national tax authorities use official withholding tax keys to
identify the different with holding tax types
Ex: Salaries, Contractors, Interest on deposits, Professional and technical
services, Commission and brokerage etc
Path: same path
Execute
Country Key

IN

Enter
Click on New Entries (F5)
Off. Key

Name

192

TDS on Salaries

193

TDS on Interest on securities

194A

TDS on interest other than securities

194C

TDS on payments to contractors

194H

TDS on Commission and brokerage

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194I

TDS on rent

194J

TDS on prof & Tech Services

Save and enter

3. Define Reasons for exemption


Definition: you define reasons for exemption from withholding tax. You can
enter this indicator in the vendor master record or in the company code
withholding tax master record information.
Path: same path
Execute
Country key

IN

Click on New Entries (F5)


Exempt. Resn
Text

Exempt from withholding tax

Save and enter

4. Maintain Types of Recipient


Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Financial
Accounting Global Settings (New)- Withholding Tax- Withholding Tax- Basic
Settings- Maintain Types of Recipient (Tcode: OB97)
Execute
Click on New Entries (F5)
Cty

Rec.ty

Description

IN

Company

IN

Other Than Company

Save and enter

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5. Define Section Codes
Section codes are the location where tax is deducted. A company has various
offices at head office, regional offices etc. Tax can be deducted at any these
places. Withholding tax tracking is thus done based on section codes
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Basic Settings- India- Define Business Places
Execute
Click on New Entries (F5)
Company code
Section code
Name 1
Enter
Name
Street
House number
Postal code
City
Country

IN (India)

Enter
Save and enter

6. Assign Factory Calendars to Business Places


In this IMG activity, you effectively specify which days the tax offices that
you work with are open. The system uses this information when you post a
vendor invoice, so that it can allow for public holidays when it determines the
tax due date.

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This activity is optional. If you do not make any entries, the system still
determines the tax due date, but without reference to any factory calendar.
The factory calendar is assigned to determine the holidays and pre-pone
the payment of tax dues to the previous working day for determination of
payment due date for the tax liability. A common Factory Calendar IN has
been defined and assigned to all the section codes
Path: Same path
Execute
Click on New Entries (F5)
Company code
Section code
Factory Calendar ID

01 (Standard)

Rule

- Day before

Save (Ctrl+S) and enter

7. Define Withholding Tax Type for Invoice Posting


Definition: withholding tax code only controls the percentage rate of the
withholding tax
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Calculation- Withholding Tax Type- Define Withholding Tax Type for
Invoice Posting
Execute
Country key

IN

Enter
Click on New Entries (F5)

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Withhld tax type
Select Gross amount
Select Round w/tax amnt up
Select per year, starting with mnth

:4

Click on Next Entry (F8)


Withhld tax type
Select Gross amount
Select Round w/tax amnt up
Select per year, starting with mnth

:4

Save (Ctrl+S)

Notes:
Gross amount: If you set this indicator, the system uses the gross amount as
the base amount for calculating the withholding tax.
Round w/tax amnt up: If you set this indicator, the withholding tax amount
is always rounded up. You must specify a rounding rule for each withholding
tax type for which withholding tax is to be calculated. This field is used in
India

8. Define Withholding Tax Type for Payment Posting


Path: Same path
Execute
Country key

IN

Enter
Click on New Entries (F5)

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Withhld tax type
Select Gross amount
Select Round w/tax amnt up
Select per year, starting with mnth

:4

Click on Next Entry (F8)


Withhld tax type
Select Gross amount
Select Round w/tax amnt up
Select per year, starting with mnth

:4

Save (Ctrl+S) and Enter

9. Check Recipient Types


Definition: This is required to categorize vendor
Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Financial
Accounting Global Settings (New) - Withholding Tax- Extended Withholding
Tax- Basic Settings- Check Recipient Types
Execute
Country key

: IN (India)

Enter
Click on New Entries (F5)
Wth.t.type

Rec.ty

Name
Company/Invoice
Company/Payment
Other than company/Invoice
Other than
company/Payment

Save (Ctrl+S) and enter


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10.Maintain Tax Due Dates


Definition: In this activity, formula for calculation of tax due date is
maintained. Since for Income tax as well as other taxes 7th of the following
month is the due date, the same value is maintained for all tax types.
Path: Same path
Execute
Click on New Entries (F5)
Country

Official withholding tax

Recipient type

No. days until tax

key

due date

IN

194C (TDS on payment

777

(India)

to contractors)

IN

194C (TDS on payment

(India)

to contractors)

777

Save (Ctrl+S) and enter

Note: Number of Days until Tax Due Date, Specifies how many days you have
to remit this tax, after you have posted it. If you have to remit the tax seven
days from the month end, enter 777.
Otherwise, enter the number of days after which you have to remit the tax to
the tax office.

11.Withholding tax codes


Definition: the withholding tax codes determine the withholding tax
percentage. Withholding tax nothing but tax rate

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Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Calculation- Withholding Tax Codes- Define Withholding Tax Codes
Execute
Country key

IN (India)

Enter
Click on New Entries (F5)
Withhld tax type
W/tax code
Off. W/Tax Key

194C

Description
Percentage subject to tax

100

Post.indic

With/tax rate
Click on Next Entry (F8)
Withhld tax type
W/tax code
Off. W/Tax Key

194C

Description
Percentage subject to tax

100

Post.indic

With/tax rate
Click on Next Entry (F8)
Withhld tax type
W/tax code
Off. W/Tax Key

194C

Description
Percentage subject to tax

100

Post.indic

With/tax rate
Click on Next Entry (F8)

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Withhld tax type
W/tax code
Off. W/Tax Key

194C

Description
Percentage subject to tax

100

Post.indic

With/tax rate
Save and enter

12.Assign withholding tax types to Company codes


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Company Code- Assign Withholding Tax Types to Company Codes
Execute
Click on New Entries (F5)
Company code
Withhld tax type
Recipient type
Select with/tax agent
W/tax obligated frm
Oblig.to w/tax until
W/Tax number
Click on Next Entries (F8)
Company code
Withhld tax type
Recipient type
Select with/tax agent
W/tax obligated frm
Oblig.to w/tax until
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W/Tax number
Click on Next Entries (F8)
Company code
Withhld tax type
Recipient type
Select with/tax agent
W/tax obligated frm
Oblig.to w/tax until
W/Tax number
Click on Next Entries (F8)
Company code
Withhld tax type
Recipient type
Select with/tax agent
W/tax obligated frm
Oblig.to w/tax until
W/Tax number
Save (Ctrl+S) and enter

13.Activate Extended Withholding Tax


Path: Same path
Execute
Go to position button
Company code
Enter
Ignore warning message
Select Ext.w/tax
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Save and enter

14.Creation of TDS on Contractors A/C (Tcode: FS00)


G/L Account

190300

Company code
Click on create
Go to Type/Description Tab
Account Group

LIAB Liabilities

Select Balance sheet account


Short Text

TDS on Contr. A/C

G/L Acct Long Text

TDS on Contractors Account

Go to Control data Tab


Select only balances in local crcy
Select Open Item Management
Select Line item display
Sort Key

001

Go to Create/Bank/Interest Tab
Field status group

G001

Save

15.Define Accounts for Withholding Tax to be Paid Over


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Postings- Accounts for Withholding Tax- Define Accounts for Withholding
Tax to be Paid Over
Execute

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Chart of accounts
Enter
Select withholding tax code
Select withholding tax type
Save
Withholding tax type

Withholding Tax code

Account
190300
190300
190300
190300

Save and enter

16.Specify Document Type (Accounts Payable)


Definition: In this activity, we specify the document type to be used for
journal vouchers for correction of withholding tax entry
Path: SPRO- Financial Accounting (New)- Financial Accounting Global
Settings (New)- Withholding Tax- Extended Withholding Tax- Posting- IndiaRemittance Challans- Document Types- Specify Document Type (Accounts
Payable)
Execute
Click on New Entries (F5)
CoCd

RC Doc Type

SA

Save and enter


17. Define Business Places

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Path: SPRO- SAP Reference IMG- Cross Application Components- General
Application Functions- Nota fiscal- CNPJ Business Places- Define Business
Places
Execute
Company code
Enter
Business place
Save (Ctrl+S)
Name
Street
House number
Postal code
City
Country

IN (India)

Enter and enter


18.Assign section codes to business places
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Basic Settings- South Korea- Define Section Codes
Execute
Company code
Enter
Section code

Business Place

Save (Ctrl+S) and enter

19.Maintain number range groups to business places (Tcode:


SM30)
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Table/View

J_1IEWTNUMGR

Click on Maintain
Click on New Entries (F5)
Company Code
Business Place
Off. W/Tax Key
Number group

001

Save

20.Maintain number range groups to Section code (Tcode: SM30)


Table/View

J_1IEWTNUMGR_1

Click on Maintain
Click on New Entries (F5)
Company Code
Section code
Off. W/Tax Key
Number group

001

Save and enter

21.Maintain Number Groups


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Posting- India- Remittance Challans- Maintain Number Groups
Execute
Click on New Entries (F5)
Company

Section code

Off. W/Tax Key

Number grp

code
001
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Save (Ctrl+S) and enter

22.Assign Number Ranges to Number Groups


Path: Same path
Execute
Click on New Entries (F5)
Number group

001

IntNR

01

Save (Ctrl+S)

23.Maintain Number Ranges


Path: Same path
Execute
Click on Groups (F6)
Select Group without text
Click on Maintain (Shift+F5)
Company code
Enter
Click on Insert Interval (Shift+F1)
Year
From number

100000

To number

199999

Enter
Save and enter

24.Maintain Number Groups and SAPscript Forms

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Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Withholding Tax- Extended Withholding
Tax- Posting- India- Withholding Tax Certificates for Vendors and
Customers- Maintain Number Groups and SAPscript Forms
Execute
Click on New Entries (F5)
Company

Section code

code

Off. W/Tax

Form

Number Grp

J_1IEWT_CER

001

Key
194C

T
Save and enter

25.Assign Number Ranges to Number Groups


Path: Same path
Execute
Click on New Entries (F5)
Number group

001

IntNR

01

Save (Ctrl+S)

26.Maintain Number Ranges


Path: Same path
Execute
Click on Groups (F6)
Select Group without text

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Click on Maintain (Shift+F5)
Company code
Enter
Click on Insert Interval (Shift+F1)
Year
From number

200000

To number

299999

Enter
Save and enter

27. Maintain company code settings


Path: SPRO- SAP Reference IMG- Logistics General- Tax on Goods
Movements- India- Basic Settings- Maintain Company Code Settings
Execute
Click on New Entries (F5)
Company code
First month

4 April

Save and enter

28.Change Vendor Master Record (Tcode: FK02)


Vendor
Company Code
Select withholding tax
Enter
WH Tax Country
With. T. type

IN
W/Tax Code

liable

Rec.ty

Select
Select
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Save (Ctrl+S)
Ignore warning messages

29.Vendor Invoice (Tcode: FB60)


Click on Company Code (F7)
Company code
Enter
Vendor
Invoice Date
Amount
Bus.Place/section
Go to withholding Tax tab
Company/invoice
Keep blank Company/Payment
G/L Acct

D/C

Amount in doc. Curr

S Debit

Post (Ctrl+S)
Go to Menu bar
Document display
We can see document

30.Create Remittance Challan


Path: Accounting- Financial Accounting- Accounts Payable- Withholding TaxIndia- Extended Withholding Tax- Remittance of Withholding TaxJ1INCHLN - Create Remittance Challan (Tcode: J1INCHLN)
Company Code
Fiscal Year

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Business Place/Section Code
Posting Dates
Section
Vendors
Recipient Types
Document Date
Posting Date
Bank Account
Execute (F8)
Select Document number
Enter
Select Document number which amount you are making payment to Income
tax dept
Click on Document overview (Shift+F2)
Double click on line item
Amount

Go to menu bar
Document simulate
Post (Ctrl+S)

31.Enter Bank Challan


Path: Same path (Tcode: J1INBANK)
Company Code
Fiscal Year
Challan Clearing Number
Internal Challan Number
Internal Challan Date
Bank Challan Number
Bank Challan Date

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Bank Key
Execute (F8)

32.TDS Certificate Print


Path: Accounting- Financial Accounting- Accounts Payable- Withholding TaxIndia- Extended Withholding Tax- Certificates- J1INCERT Print (Tcode:
J1INCERT)
Company Code
Fiscal Year
Business Place/Section Code
Section
Posting Dates
Bank Challan Numbers
Bank Challan Dates
Vendors
Certificate Date
Signatory
Designation
Place of Printing
Execute (F8)
Click on Print (Ctrl+P)
Go to Menu bar
System Services Output control
Execute (F8)
Select spool no
Click on Display content (F6)

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Asset Accounting (FI-AA)


The Fixed Assets Module is an integrated asset management solution
for additions, updating, tracking, depreciation and administrative purposes.
Assets are depreciated periodically to arrive at their current net value. Once
an asset is capitalized, it can be transferred between locations, cost centers.
Assets can be removed from the assets ledger by disposing them
Asset Accounting is a subsidiary ledger accounting module in financial
accounting
The fixed assets module will provide following functions:

New Asset Addition

Add to an existing asset

Modify asset details

Asset transfer

Asset disposal

Depreciation

Features of Asset Accounting:

Drill down for a particular asset to view the transaction history for
that asset

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Depreciation is run only once for each period. The system will record
the last period for which depreciation was run. The user can only run
the depreciation program for the next period

Asset that is depreciated, the system automatically generates a journal


and posts it to the fixed asset sub ledger for the depreciation amount

When posting the depreciation expense for an asset the cost center of
the asset at the time of depreciation run is considered

Business Process:
1. Asset Acquisition and capitalization of asset under construction
All asset purchases would be routed through materials management in the
form of a purchase order. The accounts section will create the asset master
record before purchase order is raised through MM Module. Assets purchased
in the nature of office equipment, computer equipment, furniture and fixtures
and vehicles will be capitalized directly without routing it through Capital
Work in Progress (CWIP) to make it capitalized on a stand alone basis
2. Asset Depreciation
Different depreciation rates are configured using different depreciation
keys and they will be attached with the asset masters at the time of creating
an asset master
Depreciation as per the Companies Act, 1956 will be handled by creating
Book Depreciation
SAP gives a functionality of depreciation forecast report where in one can
analyze the depreciation of the asset over a period of years

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The planned depreciation is posted to the general ledger at the time of the
monthly depreciation posting run. This posting run uses a batch input session
to post the planned depreciation for each posting level for individual asset as
a lump sum amount.
The depreciation posting cycle is determined by entering the length of
time between two depreciation posting runs. This means that a setting of 1
indicates monthly posting, 3 means quarterly posting, 6 means semi-annual,
and 12 means annual. When a depreciation posting run is started, one has to
enter the period for which one wants it to be carried out
3. Capitalization of Asset Under Construction (AUC)
For capitalized maintenance, the flow is different. We use CWIP for each
asset class as account assignment in purchase order requisition. CWIP will
accumulate all the costs of the WIP for each asset class and subsequently
based on the capitalization date. The settlement can be done at the asset
concerned
4. Asset Retirement and Transfer
The asset retirement consists of any of the following

Sale of asset with customer, without customer

Scraping of an asset

Transfer of an asset

Posting revenue/loss on asset sale

The above mentioned items can be done by using SAP standard functionality
5. Closing Operation

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The year end closing program is used the fiscal year for one or
more company codes from an accounting perspective. Once the
fiscal year is closed, one can no longer post or change values
within asset accounting. The fiscal year that is closed is always
the year following the last closed fiscal year

At the time of closing the period system performs the following


checks.

The system found no errors during the calculation of


depreciation

The planned depreciation from the automatic posting area


has been completely posted to the general ledger

All incomplete assets (master records) have been


completed, since this check does not make sense for asset
under construction, we can prevent this check from being
made for assets under construction

Asset Accounting Configuration:


1. Maintain Chart of Depreciation
Definition: Charts of depreciation are used in order to manage various legal
requirements for the depreciation and valuation of assets. These charts of
depreciation are usually country-specific and are defined independently of the
other organizational units. A chart of depreciation, for example, can be used
for all the company codes in a given country. Chart of depreciation means list
of depreciation areas. Depreciation Area means one set of book keeping.

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Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Asset
Accounting- Organizational Structures- Copy Reference Chart of
Depreciation/Depreciation Areas (Tcode:OAP1)
Execute
Double click on Copy Reference Chart of Depreciation
Click on Copy org.object (F6)
From chart of dep.

1IN (Sample chart of depreciation:


India)

To chart of dep.
Enter, Enter, Enter and enter
One time go back
Double click on Specify Description of Chart of Depreciation
Click on position button
Chart of Dep.
Enter
Description
Save and enter
One time go back
Double click on Copy/Delete Depreciation Areas
Chart of Dep.
Enter
Observe depreciation areas under our chart of depreciation

2. Assign Input Tax Indicator for Non-Taxable Acquisitions

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In this step, you specify an input tax indicator per company code. The
system then uses this indicator when you post acquisitions that are not
subject to tax, but which are posted to accounts that are tax-relevant.
An acquisition of this type is an acquisition from in-house production.
In the Asset Accounting posting transaction for this acquisition, the input tax
indicator is not ready for input.
In each company code, enter a tax indicator for business transactions
that are not subject to taxes (for example, V0).
Path: SPRO- Financial Accounting (New) - Asset Accounting- Integration with
the General Ledger- Assign Input Tax Indicator for Non-Taxable Acquisitions
Execute
Click on Position button
Company Code
Enter
Input Tax

V0 (0% Tax on purchases)

Output Tax

A0 (0% Tax on Sale)

Save and enter

3. Assign Chart of Depreciation to Company Code


Definition: One chart of depreciation can be assigned to more than one
company codes which are located in same country
Path: SPRO- Financial Accounting (New) - Asset Accounting- Organizational
Structures- Assign Chart of Depreciation to Company Code (Tcode: OAB1)
Execute
Click on position button

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Company code
Enter
Chrt Dep
Save and enter

4. Specify Account Determination


Definition: Account Determination is a bridge to flow the asset values to
General ledger accounting (This is integration point between General ledger
and Asset accounting)
Path: SPRO- Financial Accounting (New) - Asset Accounting- Organizational
Structures- Asset Classes- Specify Account Determination
Execute
Click on New Entries (F5)
Acct.determ.

Name of account determination

Save and enter

5. Create Screen Layout Rules


Definition: Screen layout controls Fields in Asset Master record.
Path: Same path
Execute

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Select 1010, 2000 and 3000
Click on copy as (F6)
Screen Layout Rule

Name of screen layout rule

Save and enter

6. Define Number Range Interval


Path: Same path
Execute
Company Code
Click on change interval
Click on Insert interval (Shift+F1)
No

01

From number

100000

To number

199999

Enter
Click on Insert interval (Shift+F1)
No

02

From number

200000

To number

299999

Enter
Click on Insert interval (Shift+F1)
No

03

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From number

300000

To number

399999

Enter
Save and enter

7. Define Asset Classes


Definition: Asset class means which are having same characteristic features.
Path: same path
Execute
Click on New entries (F5)
Asset Class
Short Text
Account determ
Scr.layout rule
Number range
Click on Next Entry (F8)
Asset Class
Short Text
Account determ
Scr.layout rule
Number range
Click on Next Entry (F8)
Asset Class
Short Text
Account determ
Scr.layout rule
Number range
Save and enter

8. Determine Depreciation Areas in the Asset Class


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Path: SPRO- Financial Accounting- Asset Accounting- Valuation- Determine
Depreciation Areas in the Asset Class
Execute
ChDep
Enter
Click on position button
Asset Class
Enter
Select Asset Class
Double click on Depreciation Areas
Screen layout

2000

Deselect Area deact.


Save and enter

9. Depreciation Key
Definition: Depreciation key nothing but depreciation rate
a. Define Base Methods
Definition: It is particularly important to enter a depreciation type and the
depreciation calculation method. Base method is assigned in depreciation key.
Depreciation type means whether it is Ordinary depreciation or special
depreciation. Special depreciation means other than ordinary depreciation
purely income tax depreciation.
Depreciation method means how we calculate depreciation. For ex:
Percentage depreciation.

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Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Asset
Accounting- Depreciation- Valuation Methods- Depreciation Key- Calculation
Methods- Define Base Methods
Execute
Click on New Entries (F5)
Base method
Type of depreciation

N Ord.depreciation

Dep.Method

P Stated Percentage

Save
Ignore warning message
Enter and enter

b. Define Declining-Balance Methods


Definition: For each declining balance method, we maintain following
specification,
A multiplication factor for determining the depreciation percentage rate,
An upper limit for the depreciation percentage rate and
A lower limit for the depreciation percentage rate
Multiplication factor means system multiplies the depreciation percentage
rate resulting from the total useful life by this factor.
Path: Same path
Execute
Click on New Entries (F5)
Decl.-bal.
Description of the method
Save (Ctrl+S) and enter

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c. Define Multi-Level Methods


Definition: In multi level method, we can define validity period for a given
percentage rate. For ex: planned useful life is 30 Years.
Up to 5 years

20% Depreciation rate

Up to 10 years

15% Depreciation rate

Remaining life

10% Depreciation

Path: Same path


Execute
Click on New Entries (F5)
Multilev.meth.
Validity start

2 from ordinary depreciation start


date

Double click on Levels


Click on New Entries (F5)
Acq.year

9999

Year

999

Per

12

Base Value

24 (Net Book Value)

Percent
Save and enter
d. Maintain Period Control Methods
Definition: Assign period control keys to the period control methods for:
o

Acquisition transactions

Subsequent acquisitions

Retirements and transfers

And so on

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Path: same path
Execute
Click on New Entries (F5)
Prd.c.meth
Description
Acq

1 Pro rata at period start date

Add

1 Pro rata at period start date

Ret

1 Pro rata at period start date

Trn

1 Pro rata at period start date

Save and enter

e. Maintain Depreciation Key


Definition: Depreciation key nothing but depreciation rate
Path: Same path
Execute
Click on New entries (F5)
Dep. Key
Double click on Assignment of calculation methods
Dep type

N Ord.depreciation

Phase

1 From the start of depreciation

Base method
Decl. - bal. method
Prd cont
Class

2 Declining - balance depreciation

Save and enter


4 times go back
Select 2901
Click on activate (Ctrl+F3)

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Save (Ctrl+S)

10.Create G/L Master records (FS00)


a. Building A/C
G/L Account

200100

Company Code
Click on Create
Go to Type/Description Tab
Account group

ASST Assets

Select Balance sheet Account


Short Text

Buildings A/C

G/L Acct Long Text

Buildings Account

Go to Control data Tab


Recon acct for Account type

A Assets

Select line item display


Sort Key

018 (Asset Number)

Go to Create/bank/interest Tab
Field status group

G007

Save

b. Sale of Asset
G/L Account

300030

Company Code
Click on Create
Go to Type/Description Tab
Account group

INCO Incomes

Select P&L Statement Acct

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Short Text

Sale of Asset A/C

G/L Acct Long Text

Sale of Asset Account

Go to Control data Tab


Select only balances in local crcy
Select line item display
Sort Key

001

Go to Create/bank/interest Tab
Field status group

G007

Save

c. Profit on sale of Asset


G/L Account

300040

Company Code
Click on Create
Go to Type/Description Tab
Account group

INCO Incomes

Select P&L Statement Acct


Short Text

Pr. Sale of Asset A/C

G/L Acct Long Text

Profit on Sale of Asset Account

Go to Control data Tab


Select only balances in local crcy
Select line item display
Sort Key

001

Go to Create/bank/interest Tab
Field status group

G007

Save

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d. Loss on Sale of Asset
G/L Account

400040

Company Code
Click on Create
Go to Type/Description Tab
Account group

EXPN Expenses

Select P&L Statement Acct


Short Text

LS. Sale of Asset A/C

G/L Acct Long Text

Loss on Sale of Asset Account

Go to Control data Tab


Select Only balances in local crcy
Select line item display
Sort Key

001

Go to Create/bank/interest Tab
Field status group

G007

Save

e. Scrap on Assets
G/L Account

400050

Company Code
Click on Create
Go to Type/Description Tab
Account group

EXPN Expenses

Select P&L Statement Acct


Short Text

Scrap on Asset A/C

G/L Acct Long Text

Scrap on Asset Account

Go to Control data Tab


Select only balances in local crcy

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Select line item display
Sort Key

001

Go to Create/bank/interest Tab
Field status group

G007

Save

f. Depreciation A/C
G/L Account

400060

Company Code
Click on Create
Go to Type/Description Tab
Account group

EXPN Expenses

Select P&L Statement Acct


Short Text

Depreciation A/C

G/L Acct Long Text

Depreciation Account

Go to Control data Tab


Select Only balances in local crcy
Select line item display
Sort Key

001

Go to Create/bank/interest Tab
Field status group

G007

Save

g. Acc.Dep Account
G/L Account

110000

Company Code
Click on Create

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Go to Type/Description Tab
Account group

LIAB Liabilities

Select Balance sheet Account


Short Text

Acc.Dep A/C

G/L Acct Long Text

Accumulated Depreciation Account

Go to Control data Tab


Recon.account for acct type

A Assets

Select line item display


Sort Key

001

Go to Create/bank/interest Tab
Field status group

G007

Save

11.Assign G/L Accounts


Path: SPRO- SAP Reference IMG- Financial Accounting (New) - Asset
Accounting- Integration with the General Ledger- Assign G/L Accounts
Execute
ChDep
Enter
Select Chrt/Accts
Double click on Account determination
Go to position button
Account Determ.
Enter
Select Account determination
Double click on Balance sheet accounts
Acquisition:Acquis. and production costs

200100
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Loss made on asset retirement w/o reven.

400050

Clearing acct. revenue from asset sale

300030

Gain from asset sale

300040

Loss from asset sale

400040

Double click on Depreciation


Acc.dep. accnt.for ordinary depreciation

110000

Expense account for ordinary depreciat.

400060

Save and enter and enter

12.Maintain Number ranges for Depreciation posting (Tcode:


FBN1)
Company code
Click on change interval
Click on Insert Interval (Shift+F1)
No

04

Year
From Number

0400000000

To Number

0499999999

Enter
Save and enter

13.Define Screen layout Rule


Definition: Screen layout rule controls fields in Asset Master Record
Path: SPRO- Financial Accounting (New) - Asset Accounting- Master DataScreen Layout- Define Screen Layout for Asset Master Data
Execute
Double click on Define Screen Layout for Asset Master Data
Click on Position button
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Screen layout
Enter
Select Screen Layout
Double click on Logical Field groups
Select 3 Time dependent data
Double click on Field Group rules
Select Cost center optional
Save and enter

Notes:
Main number: If this indicator is set, the screen layout rule defines the asset
main number as the level for the field group.
This means that when a sub-number is created for the asset, the values for
this field group in the sub-number are supplied by the asset main number.

Sub number: If this indicator is set, the screen layout rule defines the subnumber as the maintenance level for the corresponding field group.

Copy: If this indicator is set, the screen layout rule specifies that when you
create an asset using another asset as a reference, the specified field group is
automatically supplied with values from the reference asset.

14.Creation of Asset Master Record

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Definition: The "master data maintenance" component is used for recording
the master data of your fixed assets on an individual asset basis. A fixed asset
is defined as an individual economic good that it is recognized in the balance
sheet at the time of closing, and is in the long-term service of the enterprise .
Path: Accounting- Financial Accounting- Fixed Assets- Asset- Create- AS01Asset (Tcode: AS01)
Asset Class
Company Code
Enter
Go to General data Tab
Description
Capitalized on
Go to Deprec.Areas Tab
DKey
Useful life
Odep.start
Save (Ctrl+S)
Ignore warning message

15.Creation of Sub Asset


Path: Accounting- Financial Accounting- Fixed Assets- Asset- Create- Sub
Number- AS11 Asset (Tcode: AS11)
Asset
Company Code
Number of similar sub assets

Enter
Go to General data Tab

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Description
Capitalized on
Go to Deprec.Areas Tab
DKey
Useful life
Odep.start
Save (Ctrl+S)
Ignore warning message

Note:
Similar Assets: Number of similar assets that you want the system to create
when you save an asset master record. We can create 999 similar assets at a
time

Sub Assets: This is the number which, together with the main asset number,
uniquely identifies a fixed asset in Asset Accounting.
Using the asset sub-number, you can:

Provide for separate management of later acquisitions to assets.

Represent complex fixed assets with their component parts.

In contrast to the main asset number, the asset sub-number must be


numerical. We can create 9999 sub assets under one main asset
The following graphic shows the most important depreciation terms in a
depreciation area:

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16.Purchase of Asset
a. With Bank
Path: Accounting- Financial Accounting- General Ledger- Posting- F-02 General Posting (Tcode: F-02)
Document date

Type

Posting date

Period

PstKy

SA

Company code
Currency

70 (Asset Debit)

Account
TType

100 (External Asset Acquisition)

Enter
Amount
PstKy

50 (Credit)

Account

290100 (Bank A/C)

Enter

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Amount

Go to Menu bar
Document - simulate
Save

b. With Vendor
path: Accounting - Financial Accounting - Fixed Assets - Posting - Acquisition
- External Acquisition - F-90 - With Vendor (Tcode:F-90)
Document date

Type

Posting date

Period

KR

Company code
Currency

PstKy

31 (Vendor Credit)

Account
Enter
Amount

20000000

PstKy

70 (Asset Debit)

Account
TType

100 (External Asset Acquisition)

Enter
Amount

Go to Menu bar
Document - simulate
Save

17. Sale of asset

a. With Bank (Tcode: F-02)

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Document date

Type

Posting date

Period

SA

Company code
Currency

PstKy

40 (Debit)

Account

290100 (Bank Account)

Enter
Amount
PstKy

50 (Credit)

Account

300030 (Sale of Asset A/C)

Enter
Amount

Select Asset Retirement


Go to Menu bar
Document - simulate
Asset Number
Sub number
Asset value date
Select Complete retirement
Enter
Save

b. With Customer
Path: Accounting - Financial Accounting - Fixed Assets - Posting - Retirement
- Retirement w/Revenue - F-92 - With Customer (Tcode:F-92)
Document date

Type

Posting date

Period

PstKy

DR

Company code
Currency

01 (Customer Debit)

Account
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Enter
Amount
PstKy

50 (Credit)

Account

300030 (Sale of Asset A/C)

Enter
Amount

Select Asset retirement


Go to Menu Bar
Document - simulate
Asset number
Sub number
Asset value date
Select Complete Retirement
Enter
Save

18.Scrap on Asset
Path: Accounting- Financial Accounting- Fixed Assets- Posting- RetirementABAVN - Asset Retirement by Scrapping (Tcode: ABAVN)
Click on Change company code (F7)
Company code
Enter
Asset
Document date
Posting date
Asset value date
Click on Simulate (F9)
Post (Ctrl+S)

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Entry:
Scrap on Asset A/C
To Asset A/C

19.Takeover of existing assets


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Asset
Accounting- Asset Data Transfer- Manual Online TransferCreate/Change/Display Legacy Asset (Tcode: AS91)
Execute
Double click on Create Legacy Asset
Asset Class
Company Code
Enter
Description
Capitalized on
Go to Deprec.Areas Tab
DKey
Uselife
Click on Takeover values (Shift+F8)
Cum.acquis.val.
Accm.ord.deprec
Enter
Save and enter

20.Depreciation run

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Path: Accounting - Financial Accounting - Fixed Assets - Periodic Processing Depreciation Run - AFAB - Execute (Tcode: AFAB)
Company Code
Fiscal year
Posting period

Select Test run


Execute (F8)
Note: If there is any errors, Click on Error list (F7)
One time go back
Deselect Test run
Go to menu bar
Program - Execute in background
Output device

LP01

Enter
Click on Immediate
Save (Ctrl+S)
Go to Menu bar
System -services - output Control
Execute (F8)
Select Spool no.
Display contents (F6)

18. Document display (Tcode: FB03)


Click on Document list (Shift+F8)
Company Code
Document type

AF

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Execute

19. Asset explorer


Path: Accounting- Financial Accounting- Fixed Assets- Asset- AW01N - Asset
Explorer (Tcode: AW01N)
Company code
Asset
Enter
Observe Planned Values, Posted Values and comparisons

Validations
1. Validation in Accounting Documents
In this activity, we define additional checks for accounting documents in the
form of validations for each of your company code. We can assign a validation
for the document header and one for the line items to each company code. The
assigned validations are valid both for manual entry of documents as well as
for the automatic creation of Documents.
Ex: We can use the validation for the following situation. We want to make
sure that postings to the expense account Telephone Costs can only be
posted to the services cost center Telephone. We can carry out the checks
needed for this by using the validation
Path: SPRO- SAP Reference IMG- Financial Accounting (New)- Financial
Accounting Global Settings (New)- Tools- Validation/Substitution- Validation
in Accounting Documents (Tcode: OB28)
Execute

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Click on New Entries (F5)
Company code
CallPnt

1 (Document Header)

Validation
Double click on Validation
Click on Yes
Click on Insert Step (Ctrl+Shift+F5)
Click on Prerequisite
Double click on accounting document header
Go to menu bar
Settings Technical names
Double click on BKPF-USNAM (User Name)
Click on =
Click on Constant
User Name

SAPUSER

Enter
Click on Check
Double click on Accounting Document Header
Double click on BKPF-BLART (Document Type)
Click on =
Click on Constant
Document type

SA (G/L Account Document)

Enter
Click on Message
Message number
Save (Ctrl+S)

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Three times go back
Activtn level

1 (Active)

2. Posting (Tcode: FB50)


Click on Company code (F7)
Company code
Enter
Document date
Document type

DR

G/L acct

D/C

Amount in doc. Curr

Value date

290100

S Debit

25000

11.10.2011

100000

H Credit

25000

Post (Ctrl+S)
System will through error, because document type is not SA. System will
allow only SA Document type for SAPUSER
Authorizations
SAP system is a high secured system. We can maintain authorizations each
employee wise or Group of employees wise.
1. Maintain user
Path: Tools- Administration- User Maintenance- SU01 Users (Tcode: SU01)
User

V140130

Click on Create (F8)


Title

MR.

Last Name

Venkat

First name

Academic Title

MBA

Function

Accountant

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Department

Accounts

Room number

Floor

Building

Telephone number
Extension

456

Mobil phone

9846412354

Fax
Extension

456

Email

Venkatarao@Infosys.com

Go to Logon Data Tab


Initial password

123456

Repeat password

123456

Save

2. Role maintenance
Path: Tools- Administration- User Maintenance- Role Administration- PFCG
Roles (Tcode: PFCG)
Role

Accountant

Click on Role
Save
Go to Menu Tab
Click on transactions
Transaction code
FB50
FS00
FB03
FS10N
F-01
FKMT
Enter
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Click on Assign transactions (Shift+F7)
Save
Go to Authorizations Tab
Click on Expert mode for Profile generation
Company code
Business area
Enter
Note: We have to convert red color nodes and yellow color nodes should be in
green color.
If it is red color node, open tree structure, click on red color node and enter
If it is yellow color node, open tree structure, Click on yellow color mode
Click on Generate profile (Shift+F5)
Enter
Save
One time go back
Go to User Tab
User ID

V140130

Enter
Click on user comparison
Click on Complete comparison
Click on Yes
Save

3. Enter into SAP System


Double click on SAP Logon on Desktop

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Click on Logon
Client

800

User

V140130

Password

123456

Enter
New Password

1234567

Repeat password

1234567

Enter

4. Define Tolerance Groups for G/L Accounts


Path: SPRO- SAP Reference IMG- Financial Accounting (New)- General
Ledger Accounting (New)- Business Transactions- Open Item ClearingClearing Differences- Define Tolerance Groups for Employees (Tcode: OBA4)
Execute
Click on New Entries (F5)
Group
Company code
Amount per document

25000

Amount per open item account item

25000

Cash discount per line item

Save and enter

5. Assign Users to Tolerance Groups


Path: same path (Tcode: OB57)
Execute
Click on New Entries (F5)
User name

V140130

Tolerance Group
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Save and enter

LSMW (Legacy System Migration Workbench)


Through LSMW, we upload master records (General ledgers, Vendors,
Customers, Assets, Bank data, Cost centers, Cost elements, Profit centers etc)
Uploading Master data (Tcode: LSMW) (Legacy System Migration
Workbench)
Project

UPLOAD

Sub project

GL

Object

GLS

Click on Create (Shift+F1)


Description

Uploading

Enter
Description

GL

Enter
Description

GL

Enter
Execute (F8)
Select Maintain Object Attributes
Execute (Ctrl+F8)
If it is display mode, Click on Display <-> Change (Ctrl+F1)
Select Batch Input Recording
Recording

Venkat

Go to menu bar
Goto Recordings Overview
Click on Create recording (Ctrl+F1)

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Recording

Venkat

Description

GL Upload

Enter
Transaction code

FS00

Enter
Note: We should not use mouse until recording completed
G/L Account
Company code
Click on Create
Go to Type/Description Tab
Account Group

ASST Assets

Select Balance Sheet Account


Short Text
G/L Acct Long Text
Go to Control data (Ctrl+F11)
Account currency

INR

Select Only balances in local crcy


Select line item display
Sort key

001 (Posting date)

Goto Create/Bank/Interest Tab (Ctrl+F11)


Field Status group

G001

Save
Note: We can use mouse now
Click on Default all (Ctrl+F2)
Save
Go to menu bar
System- List- Save- Local file
Select Spread sheet
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Enter
Directory: C:\Documents and Settings\eccadm\Desktop\
File name: GLS
Enter
Open excel sheet, which is saved on desk top (GLS)
Delete up to H column
Keep the following rows and delete remaining rows
290110

SAKNR

G/L Account Number

2301

BUKRS

Company Code

ASST

KTOKS

G/L Account Group

XPLACCT

P&L statement account

XBILK

Indicator: Account is a balance sheet account?

Cash A/C

TXT20_ML

G/L account short text

Cash Account

TXT50_ML

G/L Account Long Text

INR

WAERS

Account currency

XSALH

Indicator: Only Manage Balances in Local Currency

XKRES

Indicator: Can Line Items Be Displayed by Account?

001

ZUAWA

Key for sorting according to assignment numbers

G001

FSTAG

Field status group

Copy the data


Go to A1 cell
Go to menu bar
Edit Paste special
Select Values
Select Transpose
Enter
Enter General ledgers in excel sheet as per template
Delete 1st row and 3rd row

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Convert K column (Sort key) into text format
Select K column and right mouse click and choose format cells
Double click on Text
Change 1 to 001 (sort key) in K Column
Open one note pad on desk top
Copy data in excel sheet to note pad which is saved on desktop
Go to create recording in SAP
Two Times go back
Save
One time go back
Select Maintain Source Structures
Execute (Ctrl+F8)
Click on Display <-> Change (Ctrl+F1)
Click on Create a structure (Ctrl+F4)
Source Structure

Venkat1

Description

GL Upload

Enter
Save
One time go back
Select Maintain Source Fields
Execute (Ctrl+F8)
Click on Display <-> Change (Ctrl+F1)
Select Venkat1
Go to Menu bar
Source fields Copy fields

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Select From Data File (Field name in 1. line)
Enter
Number of fields

9999

Max. Record Length

999999

Enter and enter


Give notepad path, which is saved on desktop
Save
One time go back
Select Maintain Structure Relations
Execute (Ctrl+F8)
Click on Display <-> Change (Ctrl+F1)
Save
One time go back
Select Maintain Field Mapping and Conversion Rules
Execute (Ctrl+F8)
Click on Display <-> Change (Ctrl+F1)
Go to menu bar
Extras Auto field mapping
Select no confirmation
Enter and enter
Save
Select Specify Files
Execute (Ctrl+F8)
Click on Display <-> Change (Ctrl+F1)
Select Legacy data

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Click on Add a entry (Ctrl+F2)
File

: C:\Documents and Settings\eccadm\Desktop\GLs.txt

Note: Give note pad path, which is saved on desktop


Name

Venkat

Select Tabulator
Select Field Names at start of file
Enter
Save
Select Assign Files
Execute (Ctrl+F8)
Click on Display <-> Change (Ctrl+F1)
Save
One time go back
Select Read Data
Execute (Ctrl+F8)
Execute (F8)
Two times go back
Select Display Read Data
Execute (Ctrl+F8)
Enter
One time go back
Select Convert Data
Execute (Ctrl+F8)
Execute (F8)
Two times go back
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Select Display Converted Data
Execute (Ctrl+F8)
Enter
One time go back
Select Create Batch Input Session
Execute (Ctrl+F8)
Execute (F8)
Enter
Select Run Batch Input Session
Execute (Ctrl+F8)
Select GLS
Click on Process (F8)
Select Display errors only
Extended log
Enter
Click on Exit Batch Input (F12)
NBJKLB/ULG;UYFTG;7IORT;79RT7OU

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