SAP Chart of Account

It defines the structure of G/L accounts. It is a list of G/L accounts used by one or more company codes. In that Chart of account you have to specify the length of G/L accounts. In SAP all the entries are document oriented. so from the balance sheet of any entry you can identify the root of an entry. so it's like a flow chart in computer terms. There are three types of Chart of Account are there. 1. Operative Chart of Accounts 2.Group of Chart of Accounts 3.Country Chart of Accounts. 1. Operative Chart of Accounts is a Chart of Account you use for the company code. 2. For different chart of accounts(operative COA) for different company code, you can group the chart of account into one chart of account for internal reporting, but cross company code controlling is not possible, because of different chart of account for different company code. 3. For different country you can have different reporting system. so for different company code you can have different company code, but can have same Operative Chart of account, so cross company code controlling is possible. What is the difference between standard chart of accounts and the operating chart of accounts? What is the difference between corporate group chart of accounts, Operating chart of accounts and Group chart of accounts? To summaries, here is the COA setup in SAP:1. Operative chart of account - It is the main chart of account assigned to each company code in OBY6. 2. Group chart of accounts - This is structured in accordance with requirements pertaining to Consolidation 3. Country-specific charts of accounts - These are structured in accordance with legal requirements of the country in question. Standard COA is a sample COAs provided by SAP. like INT, CAUS etc. You can use them as your operative COA or can create your own operative COA from these standard COA. Corporate Group COA is same as Group COA.

Cost Elements not created for General Ledger Accounts

How can I find out the GL accounts of Profit & Loss type for which Cost Elements have not been created? Is there a standard report to throw these exceptions? What is the best control to ensure that cost element is created for all expense accounts in GL? Well, the first thing that comes to mind is just download the GL Accounts, download Cost Elements and do a quick VLookup in Excel. That will tell you. That'll take you about 5 minutes or so. or You could try this respective transactions: OKB2 OKB3 SM35 To prevent creating of GL P&L items without creating the cost elements on 4.6 / 4.7 onwards, there is an option to allow the automatic creation of Cost Elements whenever a G/L account is created in a Company Code. i.e. It does not create when an account is created at the Chart of Accounts Level, only when it is created in a Company Code. To do this: // Financial Accounting // General ledger Accounting // G/L Accounts // Master Records // Preparations // Edit Chart of Accounts List // Select the Chart of Accounts then; Integration // Controlling Integration // then I'll let you guess. Also, you need to specify within controlling which account ranges should be created under which Cost Element Category; // Controlling // Cost Element Accounting // Master Data // Cost Elements // Automatic Creation of Primary and Secondary Cost Elements // *.* If this was configured, you could also create a batch file now that would catch up with any cost elements not yet created. Notes: If cost elements are not created automatically after the creation of P & L accounts. Use OKB2 to check those P & L accounts are maintained, then use OKB3 to create all cost elements of corresponding P & L accounts. Another account you should note is the COGS account. This G/L account is sometimes created as cost element, and sometimes isn't. It really depends on your settings and the business needs. Further notes: WIP accounts should not create as cost elements since the value flow from CO to FI. If you create it as a cost

element then system will expect a cost object while you are settling WIP. I would like to share our experience with you, hope it helps. In our case we have the materials assigned to the Profit Centers in the Masters based on the Material Groups and also have one to one assignment of Profit Centers to Cost Centers. Thru maintenance in OKB9, based on each of the Profit centers, the postings in the COGS Account (Cost Element) get assigned to the respective Cost Centers. Another use of assignment of COGS postings to Cost Centers is in terms of Functional Profit & Loss Account based on the mappings, which is quite different from the normal management reporting, this is just the additional information and probably, is out of the scope of this discussion.

Cost Elements not created for General Ledger Accounts

How can I find out the GL accounts of Profit & Loss type for which Cost Elements have not been created? Is there a standard report to throw these exceptions? What is the best control to ensure that cost element is created for all expense accounts in GL? Well, the first thing that comes to mind is just download the GL Accounts, download Cost Elements and do a quick VLookup in Excel. That will tell you. That'll take you about 5 minutes or so. or You could try this respective transactions: OKB2 OKB3 SM35 To prevent creating of GL P&L items without creating the cost elements on 4.6 / 4.7 onwards, there is an option to allow the automatic creation of Cost Elements whenever a G/L account is created in a Company Code. i.e. It does not create when an account is created at the Chart of Accounts Level, only when it is created in a Company Code. To do this: // Financial Accounting // General ledger Accounting // G/L Accounts // Master Records // Preparations // Edit Chart of Accounts List // Select the Chart of Accounts then; Integration // Controlling Integration // then I'll let you guess. Also, you need to specify within controlling which account ranges should be created under which Cost Element Category; // Controlling // Cost Element Accounting // Master Data // Cost Elements // Automatic Creation of Primary and Secondary Cost Elements // *.* If this was configured, you could also create a batch file now that would catch up with any cost elements not yet created.

Notes: If cost elements are not created automatically after the creation of P & L accounts. Use OKB2 to check those P & L accounts are maintained, then use OKB3 to create all cost elements of corresponding P & L accounts. Another account you should note is the COGS account. This G/L account is sometimes created as cost element, and sometimes isn't. It really depends on your settings and the business needs. Further notes: WIP accounts should not create as cost elements since the value flow from CO to FI. If you create it as a cost element then system will expect a cost object while you are settling WIP. I would like to share our experience with you, hope it helps. In our case we have the materials assigned to the Profit Centers in the Masters based on the Material Groups and also have one to one assignment of Profit Centers to Cost Centers. Thru maintenance in OKB9, based on each of the Profit centers, the postings in the COGS Account (Cost Element) get assigned to the respective Cost Centers. Another use of assignment of COGS postings to Cost Centers is in terms of Functional Profit & Loss Account based on the mappings, which is quite different from the normal management reporting, this is just the additional information and probably, is out of the scope of this discussion.

Change Reconciliation Account of Customer Master

There is no problem to change the account number in the vendor or customer master data, that is : All Document Items that were created in the old account will be posted in the same old account when you have a payment posting, compensations, etc. All document created after the change will be posted in the new account as well as the payment postings, compensations and others. The system will separate the postings in accordance with the moment at the documents were created. You can do a test in the development client before you do the change in the production. For example :You can create a new reconciliation account because you want the G/L accounts to separate out sales. Just switched the setting in Customer Master and off you go. SAP will recognized the old account for the old postings and used the new account for any new postings. Here is the official SAP help on the subject:You should run balance sheet adjustment program after any reconciliation account change. The system performs any adjustments required due to the change of reconciliation accounts or G/L accounts. The items from the old reconciliation accounts are allocated to the new accounts.

Since you cannot post to the reconciliation accounts directly, the postings are made to temporary adjustment accounts. These adjustment accounts should be displayed along with the relevant reconciliation account in the balance sheet. The postings are then reversed after the balance sheet has been created. The program for sorting the payables and receivables makes the necessary adjustments automatically. This means that you have to define the adjustment account numbers and the posting keys for these postings in the system. If you purchase and install the FI-LC Consolidation application and have bought up a previous customer or vendor (thus also taking on his/her payables and receivables), please refer to the note in the report documentation on changed reconciliation accounts. To define the account numbers, select the activity Define adjustment accounts for changed reconciliation accounts in the Accounts Receivable and Accounts Payable Implementation Guide. You should only run this program if your new reconciliation account is classified differently from the original in your FS. e.g.. AR to Intercompany accounts. It will just reclassify the existing balance. The line items will not be transferred. If not then no need to run the program at all.

How to Configure FICO Reconciliation

In Co, we create Recon accts to keep Fi gl in balance with CO. Not all transactions affect FI gls, best example of it is internal order settlements, they use secondary cost elements and does not affect your G/l accts. To update FI side of it we maintain recon accts. These are primarily for cross company, cross functional and cross business area transactions. The number of recon accts to be defined is dependant on various factors, like how your management wants to see the reports.. whether they want to classify the cost based on CO object class or by Co types etc.. However the basic config you got to follow is: 1. Activate Recon accts (if you have created CO area newly, it would be active). use T.code: KALA 2. Assignment of Recon document type to the Controlling area. T.code: OKKP 3. Creating clearing accts (that you want to us! e for reconciliation. During FI-Co recon.. inter company clearing accounts will be automatically credited or debited and now you need to create offset acct which will show up in P&l acct). Acct determination set up thru T.code: OBYA 4. Maintain accts for Automatic Recon posting. T.code OBYB 5. Assign Number ranges to Recon activity. Tcode OK13

*-- Radha Krishna

Without creating of reconciliation account, can you create vendor? What is the use of reconciliation?

Customer and vendor accounts are sub ledger GL's. We will have to create two reconciliation GLs in viz. Reconciliation GL for Customer and Vendor in chart of accounts. After, while creating customer and vendor master records, we have to mention respective reconciliation GL in their company code segment details. This recon a/c will show you the net balances in GL for customer and vendor a/cs. Without creating Vendor you can still create individual GL for each customer and vendor , but then 1) Your list of GL's in chart of account will be very lengthy. 2) Duplication of work as SD/ MM people are also required to create their own list. 3) Cross company code consolidation will not be possible as the chart of accounts will be different. 4) Very difficult to keep track of individual customer/ vendor a/cs. 5) Not advisable even in real time accounting system i.e. manual book keeping.

Explain Reconciliation Between FI Books & CO Books

What is Reconciliation Ledger? The purpose of Recon Ledger is to display the summarized balances of cost ledger. It is a ledger used for summarized display of values that appear in more detailed form in the transaction form. It has the following functions: 1) Reconciles controlling with Financial accounting. a) The recon ledger provide the reports for monitoring the reco of CO with FI by accounts. b) It can identify & display value flows in Controlling across Company codes, functional area or business area boundaries. c) Value flows can be used in FI as a basis for summarized reco. postings. 2) Provides an overview of all costs incurred. Updation of Recon ledger can be done online or periodically. To update online, you need to activate the recon ledger. For periodical updation, proceed as follows : a) During month end, activate the recon ledger. (T Code-KALA) b) Do follow up postings. c) Deactivate the Recon ledger. (T Code-KALB). RECONCILIATION LEDGER EXAMPLE 1 When you need to drill back from the FI G/L to find which cost center was Posted to on an expense account, the reconciliation ledger is accessed. The need to have a CO to FI reconciliation process is a result of cross company Code, cross-business area, or cross functional area activity that may occur in the CO module. Order settlement or confirmation, cost center assessment, or other internal CO movement may initiate these postings. When costs moved internally within CO, the FI G/L is not updated because of CO use of secondary Cost elements to facilitate the postings. The first two steps in reconciliation ledger configuration are to activate the Ledger within the controlling area and assign a document type. If you have an Existing controlling area that does not have the reconciliation ledger activated. Activate the reconciliation ledger:

Controlling -> Overhead Cost Controlling -> Cost and Revenue Element -> Accounting -> Reconciliation Ledger -> Activate Reconciliation Ledger (KALA) RECONCILIATION LEDGER EXAMPLE 2 A good receipt posting of Rs.100 has occurred on internal order 1, which is assigned to company code One hundred percent of the value of internal order No.1 is settled to internal order 2. Which is assigned to company code 2. A Settlement cost element is used for the settlement posting. When an order Settlement is run, internal order 1 is credited with Rs.100 and internal order 2 is debited with Rs.100. The balances of internal order 1 and internal order 2 are 0 and Rs.100, respectively. However, the balances of company code 1 and 2 remain as they were prior to settlement. The reason: settlement activity was internal to CO. No FI update occurred. To place the FI company codes back in balance, the CO-FI reconciliation posting transaction should be run. The resulting FI postings would credit company code 1 for Rs.100 and debit company code 2 for Rs.100. The internal CO activity will now have been accounted for in FI and company codes are now in balance.

Document flow confusion in SAP FI

I have a problem understanding basic things like how a document flows in the Sap system. When posting a customer invoice the subledger will be debited with that amount, now my confusion is will the same amount be posted to the G/L only or the very same amount will also be posted to the reconciliation general ledger - making 3 postings or The recon acc is the G/L . I don't see 3 postings happening because then 2 debits will be Posted against one debit -please clarify me on this. Also the different between the G/L, Special ledgers and the recon acc is not clear to me.

Customer and Vendor accounts are maintained in a subledger. Posting to these accounts will also be posted to the A/R and A/P reconciliation accounts. All Reconciliation accouints are GL accounts. All G/L accounts are not reconciliation accounts. Why is this done? In large businesses, there will be hundreds/thousands of customers/vendors. All these are personalaccounts (there are three types of accounts: nominal, personal and real). These personal accounts are grouped in to subledgers and any posting to them is reconciled to the G/L via the reconciliation accounts. Prakash

For fulfilling completing the double entry system accounting the Reconciliation accounts i.e., Accounts Receivable and Accounts Payable are used. All the Vendors are grouped under Acounts Payable & Customers are grouped under Accounts Receivable. And also always any time the balance in reconciliation account shows as zero.

Ex: 1) Vendors transaction: For Invoice posting: Inventory A/c Dr To Vendor A/c................Accounts Payable A/c (Reconciliation Ledger) (In SAP since we are linking in the G/L Master Accounts Payable with the Reconciliation Accounts type setting as Vendors. Hence, with one entry 3 Accounts are automatically updated) Accounts Payable is Liability & Inventory is Current Assets. For Payment to Vendor: Vendor A/c Dr.....Accounts Payable A/c To Bank/ Cash A/c Ex:2) Customer Transaction: Sales Invoice Posting: Customer A/c Dr...Accounts Receivable A/c (Reconciliation A/c) To Sales A/c Receipt Posting: Bank A/c Dr To Customer A/c...........Accounts Receivable A/c In Normal Accounting the Reconciliation Accounts are called as Control Accounts and we pass 2 entries for each transaction i.e., Sale, as following: 1) Customer A/c Dr (Sales Ledger / Accounts Receivable A/c) To Sales A/c (General Ledger) 2) Accounts Receivable A/c Dr (General Ledger) To Customer A/c (Sales Ledger Adjustment A/c) Hence, any time the Control A/c balance is zero.

What is "Real Time" Integration?

What is "real time integration" advantage of SAP? What is the Config for Integration entry? How these entries get formulated in backend? Real time integration is nothing but the data posting to all the affected areas instantly when an activity is performed. For E.g. When you do a FI-SD integration, when a PGI is posted, the following entry is affected : 1. Cost of Goods Sold Dr To Inventory Account Cr 100 100

Here the Cost of Goods Sold is an FI entry and Inventory Account related to MM but both of them gets affected immediately when you post a PGI in SD. The updation of these entries when PGI is done is called Real Time Integration. The affect is shown in all FI, MM and SD modules once you save the entry. The configuration for the below entry is done in OBYC

1. Cost of Goods Sold Dr 100 (T-Key GBB) To Inventory Account Cr 100 (T-Key BSX) The automatic entries are posted to inventory accounts through T-keys to which GL accounts are assigned. These T-keys are assigned to movement types in MM. Please refer to T-code OMWN and OMWB for proper understanding.

Various Postings To The GL Account Postings

During various postings, the GL account postings will be taken place as follows: For Domestic Procurement of Raw Material During GR Material Stock Dr. GR/IR clearing During Excise Invoice Credit Cenvat Account Dr. Cenvat Clearing During Invoice Verification Cenvat Clearing Dr. GR/IR Clearing Dr. Vendor Payable For Domestic proceurement of Capital Goods During GR Material Stock Dr. GR/IR clearing During Excise Invoice Credit Cenvat Account Dr. Cenvat On-hold Dr. Cenvat Clearing During Invoice Verification Cenvat Clearing Dr. GR/IR Clearing Dr. Vendor Payable Subsequent of Capital Goods Cenvat Account Cenvat On-hold

Cr.

Cr.

Cr.

Cr. (50%) (50%) Cr.

Cr

Dr.

(50%) Cr. (50%)

For Import Procurement of Raw Material During Customs Duty Clearing invoice Custom Clearing Dr. Custom Payable During GR Material Stock Dr. GR/IR clearing During Excise Invoice Credit Cenvat Account Dr. Custom Clearing During Invoice Verification

Cr.

Cr.

Cr.

GR/IR Clearing Vendor Payable

Dr. Cr.

For Excise Duty Credit of Raw Material without PO Cenvat Account Cenvat Clearing For Excise Duty Reversal through Excise JV Cenvat Clearing Cenvat Account During Excise Invoice Creation Cenvat Suspense Account Cenvat payable For TR6C Challan PLA Account Dr. PLA on hold Account During Fortnightly Utilization Cenvat payable Cenvat Account PLA Account Cr. Dr. Cr. Dr. Cr.

Dr. Cr.

Dr. Cr. Cr.

What is Hold and Parking of Document?

Hold Document: It is for short term and is used when tranaction Dr or Cr is uncertained and generally its is used for external purpose. eg: Advance from potential customer Parking Document: Its is for longer period generally used for internal purpose. eg: Advance made for employes. What is the main purpose of this document. Why we are using this one to in FI? How it is useful? Parking documents is used when we need to get any clarification regarding some account. We can temporarily park or store this document till we get it cleared or approved. Then we can post it. Remember.... parking does not update the accounts....... it just stores the document..... whereas posting will update the accounts....( for example.... the reducing/increasing of the account balances). The TC for Parking Documents is F-02 -> enter the required details ->go to the menu (at top ) ->Document-> Park. To post a parked document : FBV0-> go to the menu Document-> Post.

Other TCs used pertaining to Parking of Documents are : FV50 : Post / Delete : Single Screen Transaction FBV2 : Change FBV3 : Display FBV4 : Change Header FBV5 : Display Changes FBV6 : Refuse

Difference between Posting Key and Field Status Variant

What is the use of Field Status Variant. Why it is required? What is the difference between "Posting Key Variant and Field Status Variant". Why both the things are required to define as both control the fields. What specific fields are controlled this fields. 'Posting Key Variant ' Controls- fields of Posting Key and 'Field Status Variant' controls fields of G/L Account.Fields of G/L Account which are controlled by FSV can see in T.Code OBC4 and Fields of Posting Keys in SPRO-FAGS-Document- Line Item. Both can controls common fields, then SAP applies 'SDRO' rule. SDRO rule. The fields can be Suppressed, Displayed, Required, Optional. Posting is key controls - which type of accounts can be posted to - whether the line item is debit or credit - and the field status of the document line item Where as FSG (group into Field status Variant) controls only the the document line item for that account. There are only three field status options during document entry: - Suppressed - Required - Optional If both Posting key and FSV has the same field as Required and optional, system uses the link rules, takes the one which has the highest priority(in this case required). But in case of Master record Field status which is controlled by Account Group, there are 4 options of field status: - Suppressed - Display - Required - Optional Account group defines: a. length of gl account number b. no. ranges of the gl account numbers c. field status of the GL account master data in the company code segment.(which fields to appear when you create a gl account) (to control...double click on your GL account group in Screen transaction code OBD4)

Posting key defines: a. whether the line item is a debit or credit b. to which type of account the amount should be posted to(ex: when you use posting key 40, you will be able to post to gl accounts. When you use Posting key 01, you will be only able to post to customer account. c. document screen layout during posting of a document. (which fields to appear in a document...double click on the posting key and select field status and make the entries as required /optional etc) Field status group defines: Document screen layout during posting of a document. (which fields to appear in a document...double click on the field status group and select fields and make the entries as required /optional etc) LOGIC: you assign field status variant to the company code, FSV is a bundle of field status groups. ex: in FSG G001 you have made the text as required entry...you assigned the field status group g001 to cash account..so when you use cash account and try to post a document it will definitely prompt you to enter the text (text made as required.) Both FSG and PK control the same feilds in a document.There is no dominance between FSG and Posting keys..but we should know the allowed combinations.... If text is made required in PK and suppressed in FSG..the system will issue a error msg..Rules for PK...and FSG....is set incorrectly for SGTXT field. Permissable combinations: Pk FSG R/S S/R O/S R/o S/O o/r R R S O S O

Result e SD R s e SD Rd np

RD NP NP NP

= required = suppressed = error = Suppressed dominates = required dominates = no problem.

Sample Account Assignment in G/L Account

Where do we specify the sample account in FS00. I created a sample account for all expense accounts to use a particular field status group. Now I want to specify that sample account while creating g/l accounts. how do I do that? We define Sample account at OB15 and the path is SAP Ref: IMG\Financial Accounting\GLAccounting\GLAccounts\MasterRecords\Preparations\Additional Activities\Sample Accounts Step1: Maintain List of Rules types In this step you just create a code for your Sample Account

Create a New Entry XXXX Sample account for Pleasecontact1 then save Step 2: Define Data Tranfer Rules FSK2 In this step you define the data tranfer rule i.e., whether it can be editable or only display etc after a Master recored is created with Sample Account. Selects the fields that you want to transfer (check boxes)and can be changed and can't be changed etc., then save. Step 3: Assign Company Code to Rule Type In this step you will assign your sample account to your company code. Just select your company and select your Sample account and assing then save. Step 4: Create Sample Account. FSM1 Now create Sample Account same as you create at FS00, then Save. Now Sample account is created. Now you can find Sample account field in FS00 (if you assign it company code it won't be displayed) enter Sample account no, and press enter all the fiels that you have selected in Step 2 will be copied (transferred) accrding the the rule (checkboxes) you have selected there. At Tcode FS00 At FS00 you can see/Edit/Create a GL Master Record which is maintained by the Company Code. Where as Sample Account is not GL Master Record but it is a set of settings/rules which are easily available to create a GL Master Record (understand this point clearly) This sample account does not hold your transaction data nor you can edit or view at FS00. To use your Sample Account: 1. Go to FS00, give a GL account no (other than Sample account no ofcourse). Select create 2. Then check all fields, whether any field is filled like Currency, Open Item Management, etc *for your confirmation* (obviously every field is empty) 3. Now enter Sample Account no in Sample Account field and give Account Group. press Enter. U will get a message that "Data from changed Sample account was accepted", check data. 4. Now chek all fields again. Now u will find some fields filled with values which you have defined in Data Transfer Rules while creating Sample Account.

The Procedure For FI Bad Debt Configuration

How do you configure bad debts in FI module? By: Prakash Sharma The procedure for Bad debt configuration:Define Methods: SPRO / Financial Accounting / Accounts Receivables & Payables / Business transactions / Closing / Valuate / Reserve for bad debts

- OB04 - Double click define methods - Select New entries button Prov Period Months Percent1 M SAI 1 10 2 20 Save Creation of Bad Debts Account: FS00 Percent2 M 3 30 Percent3 M 4 100 Percent4

Co.code: XXXX - Select with template button G/L A/c:XXXXXX Co.Code : XXXX Account group: Administration - Select P & L Radio button Short text: Bad debts Long text: Bad debts - Select control tab button Current currency: INR - Select only local currency check box - Select line item check box, Sort key:001 Field status variant: G001 - Save Define Accounts for Reserve & Bad Debts: - OBXD SPRO / Financial Accounting / Accounts Receivables & Payables / Business transactions / Closing / Valuate / Define Accounts for Reserve & Bad debts Chart of Accounts: XXXX PROVISION METHOD XXX XXXXXX DEBIT XXX CREDIT XXX

Select rules tab button Accounts are determined based on - Select Debit/Credit check box 40/50 - Select provision method check box - Save Special G/L Account: - FBKP Double click Special G/L Account Type Special G/L Special G/L Indicator D E Reserve Reserve for Bad debts Double click Reserve - Chart of Accounts: SAI (Enter) Account Assignment Reconciliation A/c:XXXXXX (SD) Receivable Transfer posting (Gross): - F103 Accounting / Financial Accounting / Accounts Receivable / Periodic processing / Closing / Value / Receivable transfer posting (Gross)

Description

Spl.G/L-XXXXXX

Save

Customer A/c:XXXXXX Provision method: XXXX Special G/L Indicator for Debit Rec: E (Reserve for bad debts) - Select create batch input session check box - Batch input session name: SAPF103 - Posting Key:09 Posting document: DA - F8 From the menu Select -> System -> Batch Input -> Session - Select batch input session: SAPF103 Select process - Select display errors only V - Select process button - Exit Batch input Reserve for bad debts (Gross): Customer A/c:XXXXXX Co.Code: XXXX G/L Account: XXXXXX Co.code: XXXX Accounts group: reserves and surplus - Select balance sheet option button Short text: Provision for Bad Debts Long text: Provision for bad debts A/c Currency: INR Rec.Accounts for account type: Customer - Select line item display check box Sort key: 031 Field status group: G067 - Save

Configure Provision For Bad and Doubtful Debts

How is the provision for bad debts configured? You need to create: 1. One alternative recon account for Special GL indicator "E". 2. One expenses account for bad debts and 3. one for provision on Doubtful debts account. Configuration: SPRO-AR&AP-Business transactions-Closing-Valuate-Reserve for Bad debt. 1.Define Methods Here you need to define methods means after how many months client want to reclassify as bad debts and at percentage for how many months. 2.Define Accounts for Reserve for Bad Debt Here you need to assign bad debts expenses account and provision account. User end transactions: 1. Run F103: It transfers the normal open items to special gl E. Entry: Customer account SP gl E debited Customer account 2. After F103 you need to F104 for bad debts posting Based on the percentages maintained for how many months. System will automatically calculates the bad debts Entry: Bad debts Dr Provision CR.

The above steps are for automatically calculation of Bad Debts. If client doesn't want then tell them to pass manual entries. Notes: Both are maintained or entered manually. There is no customisation. You need to create three GL accounts. One in Balance sheet as "Provision for Bad Debts" and other two in P&L. 1st one will be bad debt account, wherein you need to actual post the value which is non-recoverable. 2nd will be the contra for the balance sheet account. At the end of the month/ quarter etc., the company while creating the reserve, should pass the following entry: Dr. A/c 2 (P&L) Cr. Balance sheet A/c Before creating the fresh, the earlier entry should be revered. When actual bad debt happens, then after management approval, please pass the following entry: Dr A/c 1 (P&L) Cr. Customer (Clearing the open line item)

What Is New General Ledger Accounting

ERP In SAP ==> SAP FICO Tell me about new G/L? Explain to me what is new G/L? General Ledger Accounting (FI-GL) (New) The central task of G/L accounting is to provide a comprehensive picture of external accounting and accounts. Recording all business transactions (primary postings as well as settlements from internal accounting) in a software system that is fully integrated with all the other operational areas of a company ensures that the accounting data is always complete and accurate. Beyond fulfilling the legal requirements, General Ledger Accounting also fulfills other requirements for modern accounting: - Parallel Accounting General Ledger Accounting allows you to perform parallel accounting by managing several parallel ledgers for different accounting principles. - Integration of Legal and Management Reporting In General Ledger Accounting, you can perform internal management reporting in parallel with legal reporting.

For this purpose, the Profit Center Accounting functions are integrated with General Ledger Accounting. Furthermore, you can generate financial statements for any dimension (such as profit center). - Segment Reporting General Ledger Accounting supports the segment reports required by the accounting principles IFRS (International Financial Reporting Standards) and US GAAP (Generally Accepted Accounting Principles). For this purpose, General Ledger Accounting contains the Segment dimension. - Cost of Sales Accounting You can perform cost of sales accounting in General Ledger Accounting. For this purpose, General Ledger Accounting contains the Functional Area dimension. Features General Ledger Accounting comprises the following functions for entering and evaluating posting data: - Choice between group level or company level - Automatic and simultaneous posting of all subledger items in the appropriate general ledger accounts (reconciliation accounts) - Simultaneous updating of the parallel general ledgers and of the cost accounting areas - Real-time evaluation of and reporting on current posting data, in the form of account displays, financial statements with different balance sheet versions, and additional analyses. In this way, General Ledger Accounting automatically serves as a complete record of all business transactions. It is the central and up-to-date component for reporting. Individual transactions can be checked at any time in real time by displaying the original documents, line items, and monthly debits and credits at various levels such as: - Account information - Journals - Totals/transaction figures - Balance sheet/profit and loss evaluations However, SAP still offers to choose between the New GL and the old Classic GL way of accounting. There are certain limitations in the new GL and clients are adopting to the new gl concept

Unplanned and Plan Delivery Costs In Stock and G/L Account

1) If I maintain freight in condition FRA1 or FRA2 or in info record, then subsequently if I choose planned delivery cost in miro, it will show, correct?

Ans: Yes. Planned delivery cost --- Maintain FRA1 and FRA2 in PO Details with same or different vendor. Select Goods receipt/service +planned delivery 2) Planned delivery cost in miro only show freight? What about other cost? Ans: If you want to see other costs, then choose Goods items+planned delivery costs 3) What is unplanned delivery cost and where to define? Ans: In MIRO, after entering PO as a reference, choose delivery tab in header and enter any unplanned delivery costs amount in the field Unplanned dely costs. You can customize to post the unplanned dely costs to separate G/L Account or stock account. Enter MIRO --Header details ----Enter unplanned delivery cost. --Planned delivery costs, if you want to capture for different vendor in PO than go to - Conditions in item level, select the delivery condition to be captured and go to condition detail wherein you can mention different vendor to capture delivery cost,, In MIRO Transaction Select Delivery tab. If you are posting the Delivery costs & Other costs as Unplanned delivery cost. Unplanned delivery costs are posted in a separate line. You must enter a specific tax code for the posting. Maintain in MIRO ---Transaction Enter unplanned delivery cost. While doing MIRO, in the header ( details tab ) there is a field for Unplanned delivery cost ( Unpl. Del. Csts ). Here you can enter extra delivery charges that are not in the conditions on the Purchase Order. --Unplanned delivery costs are delivery costs that were not specified in the purchase order and are only entered when you enter the invoice. They are posted in exactly the same manner as subsequent debits/credits. For a material subject to moving average price control, unplanned delivery costs are posted to the stock account, provided that there is sufficient stock coverage. For a material subject to standard price control, unplanned delivery costs are posted to a price difference account. Unplanned delivery costs were not agreed on in the purchase order and are not entered until the invoice is received. You can enter the unplanned delivery costs in the invoice document alongside the costs incurred. You can post unplanned delivery costs as follows: Distribute them prorated to calculated invoice items

Post them to separate G/L accounts You can use the Business Add-In MRM_UDC_DISTRIBUTE to define your own rules for distributing unplanned delivery costs. For more information, see the documentation for the Business Add-In You want to distribute unplanned delivery costs prorated when you post the document. - (Incoming Invoice-Posting Unplanned Delivery Costs). You want to post unplanned delivery costs to a separate G/L account. - Incoming Invoice Maintain Default Values for Tax Codes. Planned costs are costs which are entered directly in the PO. Planned delivery costs are agreed upon with the vendor, a carrier, or a customs office before the purchase order is created. You enter them in the purchase order. Planned delivery costs can be differentiated as follows:

Origin of Costs Freight charges Customs charges Calculation of Costs Fixed amount, irrespective of delivered quantity Quantity-dependent amount Percentage of value of the goods

Difference Between Open Item And Open Item Management

What is the difference between open item and open item management? Open item: open item is an item which has to be cleared with another line item. Open item management: how you want to manage all the open item in particular GL A/C. Open item management is the setting which allows the setting to maintain the open items for the particular GL account. Use of open item : Processing open items involves choosing and then activating the open items. Processing is the last step before posting a clearing document. When posting clearing documents, the system takes tolerances into account. Tolerances are acceptable payment differences. When the line item(s) you enter and the open item(s) you process have been cleared, you can post a clearing document. For example, if you enter a vendor payment for $1000, you must choose and process vendor open items that equal $1000. If your system permits a 1% tolerance, then you can clear open items with a value from $990 to $1010. When you process open items, you can: - Activate or deactivate open items - Activate or deactivate cash discount - Maintain cash discount amounts - Enter partial payments or residual items Activate the open items to be cleared. To process open items, on the screen for selecting open items, choose Goto --> Open items. You can process open items using the following: - Menus or function keys - Commands - Mouse To clear open items with commands or with the mouse, you select and process an item in one step.

Use of open item management Defining "Open Item Management" If you set the "Open item management" indicator in the master record for an account, the line items in this account is marked as open or cleared. The balance of an account with open item management is equal to the balance of the open items. General ledger accounts are kept with open item management if you need to check whether there is an offsetting posting for a given business transaction. You should use open item management for bank clearing accounts, clearing accounts for goods receipt/invoice receipt, and salary clearing accounts. Bank accounts, however, do not use open item management. If you subsequently define open item management for a G/L account, this entry only applies to the items which are posted afterwards. At the date of the change, the account must display a zero balance. Also, when canceling this indicator, the balance must be zero. You therefore have to clear the remaining open items before making the change in the master record. Open item Take an example of misc. purchases. When you purchase from vendor you pass the following entry. Dr. Material / Expenses A/c. Cr. Vendor account (if it is credit purchase) Now the vendor account is showing credit balance till you make payment to the vendor. This in SAP they call is open item. While making payment Dr. Vendor account Cr. Cash / Bank account If once you make the payment to vendor, while making the payment to the vendor, you need to link the payment with lying open item of above purchase. System automatically changes the status of above open item (red colour ball) to cleared item (green colour ball) in the vendor account

G/L Open Item Management

I have situation where the GR/IR account was created without open item managed. Now they want to make it open item but account has line items / values. It been in use for almost a year. Now that they are reconciling it end of fiscal year and they find a mess with account and wants to get this open item management fixed in GR/IR account for the future. Have tried a few option, but the system pops error message telling either " Clear or transfer all open items". There are 10,000 line items in a/c. How can we transfer this line item to new account. Is there any other option to make it open item. Answer: For old line items, you can't enter. Before changing the account master for open line item management the account balance should be 0 (ZERO). You can try doing the following: 1. Pass one JV transferring the balance to some suspense account. 2. By doing above the balance will become 0 (zero). So change the account master & tick on Open line item management. 3. Again pass the reversal entry of the first one. For doing the above, you may have to first remove the tick of automatic line item.

Please follow this steps to setup G/L Open Item Management: Any GL account has a balance standard SAP will not allow to change status to open item managed, if the GL account is not an open item managed earlier. "Z" Program (ZRFSEPA02) will make it an open item managed.

We have created an OSS Message and SAP told us to copy RFSEPA02 to Z program (ZRFSEPA02) and Follow the steps to enable Open Item Management for GL accounts. Step # 1 Create a Dummy or Temporary clearing account to move balance from clearing accounts. Use T.code FS01 Step # 2 Move balance from clearing account (Ex: 113073) to Dummy account. Post a journal entry using T.code F-02 or FB50. Step # 3 Lock Clearing account for any postings. Use T.code FS01 and Lock the account. Step # 4 Run Z program To go T.code SA38 and enter program: ZRFSEPA02 and Execute. Enter Company Code: 1000 GL account: 113073 and Execute (F8). Step # 5 Go to T.code FS01 and validate GL account Open Item Management check box and unlock account for postings. Step # 6 Move balance from Dummy account to clearing account (Ex: 113073). Post a journal entry using T.code F-02 or FB50. Step # 7 Validate Clearing account (Ex: 113073) and Dummy account balances. Use T.code FBL3N Step # 8 Clear dummy account balance using T.code F-03

Details of General Ledger Account & Its Groups

Provide the information & examples of how to create general ledger account & its groups? By: Dasharathi Bejugama The central task of G/L accounting is to provide a comprehensive picture for external accounting and accounts. Recording all business transactions (primary postings as well as settlements from internal accounting) in a software system that is fully integrated with all the other operational areas of a company ensures that the accounting data is always complete and accurate. Before creating the B/L u have to design the Chart of Accounts (COA): COA is a list of all G/L accounts used by one or several company codes. For each G/L account, the chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a company code. You have to assign a chart of accounts to each company code. This chart of accounts is the operating chart of accounts and is used for the daily postings in this company code. You have the following options when using multiple company codes: You can use the same chart of accounts for all company codes If the company codes all have the same requirements for the chart of accounts set up, assign all of the individual company codes to the same chart of accounts. This could be the case if all company codes are in the same country. In addition to the operating chart of accounts, you can use two additional charts of accounts If the individual company codes need different charts of accounts, you can assign up to two charts of accounts in addition to the operating chart of accounts. This could be the case if company codes lie in multiple countries.

The use of different charts of accounts has no effect on the balance sheet and profit and loss statement. When creating the balance sheet or the profit and loss statement, you can choose whether to balance the company codes which use different charts of accounts together or separately. Charts of accounts can have three different functions in the system: Operating chart of accounts: The operating chart of accounts contains the G/L accounts that you use for posting in your company code during daily activities. Financial Accounting and Controlling both use this chart of accounts. You have to assign an operating chart of accounts to a company code. Group chart of accounts: The group chart of accounts contains the G/L accounts that are used by the entire corporate group. This allows the company to provide reports for the entire corporate group. The assigning of an corporate group chart of accounts to a company code is optional. Country-specific chart of accounts: The country-specific chart of accounts contains the G/L accounts needed to meet the country's legal requirements. This allows you to provide statements for the country's legal requirements. The assigning of an country-specific chart of accounts to a company code is optional. You can find the function for creating G/L account master records in Financial Accounting Customizing under General Ledger Accounting -> G/L Accounts -> Master Data -> Creating G/L Accounts. Create your G/L accounts. You have two options: If you want to use a chart of accounts included in the standard system as a reference, or if a chart of accounts is already in your system, use the create with reference method. To do this, use the Create G/L Accounts with Reference activity. You can copy the G/L accounts and the related account assignments. Before creating the G/L accounts, you can change the account numbers and names. If you have G/L accounts in a non-SAP system, you can transfer these G/L accounts to your SAP System. To do so, select the Data Transfer Workbench. You can modify the G/L account master records that were created or transferred. The following functions are available for doing this: You can carry out systematic changes to multiple G/L accounts, such as changing the P&L account type of several P&L accounts. To do so, select the desired function under Change G/L Accounts Collectively. You can change the master record of a single G/L account. To do so, select the desired function under Edit G/L Account.

Changes In Parked And Other FI Documents

This is an audit requirement: Clients want to track changes in parked documents along with the details, who parked the document and posted the document during the fiscal year. Is there a table or standard report in SAP to track changes in parked documents? RFBABL00 - Display of Changed Documents Types of changed documents you can choose from: - Documents

- Recurring documents - Sample documents - Parked documents - Docs which were once parked (other SAP versions -> Previously parked documents) - External documents