Customer master records contain data that control how business transactions are recorded and

processed by the system. They also include all the information about a customer that you need to
conduct business transactions.
Customer Master records in SAP Accounts Receivable represent the subsidiary ledger that
supports the balance sheet accounts for Accounts Receivable, Deposits Payable, and Unearned
Income. Individual customer master records are referred to as customer accounts and represent
the amount owed by the customer (in the case of accounts receivable) or the amount of deposit
paid by a customer. These funds also include money that will be returned or amounts of money
paid in advance by a customer in anticipation of receiving some goods or services from MWR or
VQ Activities.
Entries are posted to customer accounts either by entering a transaction (sometimes referred to as
an invoice) that establishes the receivable or liability against the customer. Payments against
receivables are most frequently posted on a Daily Activity Record (DAR) as are payments
received in advance or deposits. Invoices are entered, for example, when a returned check is
received, when an individual hosts a private function at a MWR facility, or when a Command
checks out of the Visiting Quarters and must be billed all room charges.
Download the Training manual (981) on SAP Accounts Receivable to understand about
creating/extending customer master records, blocking and unblocking customers, accounts
receivable document entry overview, fast entry invoices, deleting and reversing documents,
manually clearing and resetting cleared items.

Activity Types

The activity type classifies the specific activities that are provided by one or more cost
centers within a company.

If a cost center provides activities for other cost centers, orders, processes, and so on,
then this means that its resources are being used. The costs of these resources need to be
allocated to the receivers of the activity. Activity types serve as tracing factors for this
cost allocation.

In an internal activity allocation, the quantity of the activity, such as the number of repair
hours, is entered into the R/3 System. The system calculates the associated cost based on
the activity price and generates a debit to the receiver and a credit to the sender for both
the quantity and costs. Internal activity is allocated using secondary cost elements , which
are stored in the master data of the activity types as default values.

You can restrict the use of the activity type to certain types of cost centers by entering the
allowed cost center categories in the activity type master record. You can enter up to eight
allowed cost center categories, or leave the assignments "unrestricted" by entering an
asterisk (*).

The activity type category is used to determine whether, and how and activity type is
entered and allocated. For example, you can allow some activities to be allocated directly,
but specify for others that they are either not allocated, or allocated indirectly only.

To enable internal activity allocation, you need to specify which cost centers provide which
activity types at what price. You do this in the R/3 System by planning the activity output/prices
for a cost center. Cost center/activity output planning functions here in the same way as an
additional master record.
For direct activity allocation, you enter the quantity of the activity to be allocated manually. To
enable both costs and activity to be allocated, the R/3 System has to valuate the activity quantity
allocated at the price specified by the sender for this activity type. For a direct activity allocation,
the plan price for the combination "cost center/activity type" is used for this calculation.
You can enter the planned price either manually, or have it calculated by the system
automatically within planning. If you want to set the price manually, you need to set the price
indicator to 3 (manual). You can use this procedure if your price calculation is not complex, for
example where the prices required for your rates are determined within your organization and do
not depend on internally produced activities, or where the rate depends on the prices of external
suppliers and not on the costs of the cost center. Automatic calculation of plan prices is covered
in course AC412.
Statistical Key Figures

Statistical key figures such as number of employees or length of phone calls, are
statistical values that describe cost centers, profit centers, and overhead orders. They can
also describe a value for a particular activity provided by a cost center, such as the
number of employees who make repairs at the transport cost center (an activitydependent statistical key figure).

You can post both plan and actual statistical key figures.

You can use statistical key figures as the tracing factor for periodic transactions such as
distribution or assessment, and for key figure analysis.

You define statistical key figures as a fixed value or as a totals value:

The fixed value (such as "employees") is carried over from the period in which it is
entered to all subsequent periods of the same fiscal year. You need enter a new posting
only if the value changes. The fiscal year total is the average of the period totals.

You post the totals value (for example "telephone calls") only to the period in which it
was entered. For totals values, the fiscal year total is the total of all period values.

You can transfer statistical key figures from the Logistical Information System (LIS) by
assigning a key figure from the LIS to a statistical key figure in Cost Center Accounting.

Statistical Key Figure (SKF)

The Statistical Key Figure (SKF) is used as the basis (tracing factor) for making allocations
(assessments/distributions). They are the statistical data such as number of employees, area in
square meters, etc. You will make use of a SKF when you are faced with a situation where it is
not possible to use any other conventional method or measure to arrive at the share of costs to be
allocated to cost centers.
Suppose that you are incurring a monthly expense of USD 5,000 in the cost center cafeteria, the
cost of which needs to be allocated to other cost centers. You can achieve this by the SKF.
Imagine that you want this to be allocated based on the number of employees working in each
of the other cost centers such as administrative office (50 employees) and the factory (200
employees). You will now use the number of employees as the SKF for allocating the costs.
In SKF allocation, you have the flexibility of using two different SKF Categories; namely, Total
value or Fixed value. You will use fixed values in situations where the SKF does not change
very often, as in the case of the number of employees, area, etc. You will use total values in
situations where the value is expected to change every now and then, as in the case of power use
or water consumption and the like.
Distribution
It is a method of allocating costs from one cost center to other cost centers. It allocates all costs
on one primary cost element to the same primary cost element on different cost centers.
All information about the distributing posting, for example details on sender and receiver is
documented in the cost accounting document.
Advantages:

Original cost element on the allocated costs is retained on receiver cost center

Disadvantages:

Total on the original (sender ) cost center is 0, due to using the original cost element for
allocation

More records are generated in the system

2.5 Assessment
It is a method of allocating cots from one cost center to other cost centers. This method does not
allocate using the primary cost element but transfers costs using and assessment (secondary) cost
element. Therefore details of the original cost elements will not be shown on the receiver cost
element. This method allows grouping together of different primary and secondary cost
elements. All information about the allocation posting, for example details on sender and
receiver is documented in the cost accounting document.
Advantages:

Original costs remain on the cost center. So it is possible to report on just the primary
costs.

Data in the system is grouped together, for example material costs can be put to one
assessment cost element.

This method can allocate both primary and secondary cost elements on a cost center.

Disadvantages:

The receiver cost element cannot identify the primary cost element.

Creation of an Assessment Cycle in the System

Assessment is the allocation method that is used most to allocate costs, because it shows
allocated costs on another cost element. The advantage of this method is that reporting can still
be done on the original cost center of all costs before allocation.
Allocation rules (cycles) are defined once in a year and can then be run on a monthly basis. A
cycle groups together different sender-receiver relationships which are defined in segments.
Separate allocation cycles must be created for allocating plan and actual costs, although the
cycles my be copied form each other.

Which objects have to allocate costs (senders)?

Where are the costs to be allocated to (receivers)?

Which costs or activities are to be allocated?

Actual / plan costs

On what basis are the costs or activities to be allocated (tracing factors)?

Fixed amounts, fixed percentages, fixed portions (similar to fixed percentage, with the exception
that the amount is not limited to 100. The sender base is derived from the total of the receiver
tracing factors), variable portions (amounts are allocated based on postings in the database one
the following types: cost elements, versions, activity types, statistical key figures)
When creating cycles there are various options available within the system:
Scaling negative tracing factors
A negative tracing factor can occur within the system if the tracing factors are not defined as
fixed values or percentages, but are derived from objects such as statistical key figures or activity
types. The problem arises only if one portion of the receivers has positive tracing factors and
another portions has negative tracing factors. If the negative values are not scaled, then not only
the sender is credited. Receivers with negative values are also credited and receivers with
positive tracing factors are debited by a larger amount.
Example:

Sender cost center (CC 1) allocates $1000 to 2 receivers (CC 2, CC 3). The tracing factors (e.g.
statistical key figures or activities) posted for the receivers are:+100 for CC 2, -90 for CC 3. The
sender base is the total of the tracing factors: +100 - 90 = 10.
Without scaling of the tracing factors the allocated amounts are calculated as follows:

CC 2 receives $1000 * (+100)/10 = $10000

CC 3 receives $1000 * (-90)/10 = $-9000

CC 3 is thus credited with $9000 at the expense of CC2.

The scaling process works as follows:

1. The lowest tracing factor is set to 0.
2. The other tracing factors are increased accordingly.

Then the newly calculated tracing factors for our example are:

CC 3 is 0. CC 2 is increased by the scaling amount of 90. Sender CC 1 would now be

credited 100% to CC 2 and CC 3 would be neither credited nor debited.

You must define scaling for single segments or for a segment and a cycle.

Iterative indicator
When a cycle is processed iteratively, all segments are processed one at a time. The result of one
segment is then used by the next segment in the cycle. Note however that this indicator only
applies to other senders within the cycle. If a later segment uses 'posted amounts' as a basis of
receiving, then results of earlier segments are not taken into consideration. This indicator should
only be used if really necessary, since it will run the cycle until all the costs in a sender are
allocated, it may have an impact on runtime of the cycles. Depending on the sizes of the created
cycles the runtime could be an issue.
Object currency
If this field is set all the sender values in the object currency are computed separately and
distributed in separate fields. This facility only functions when the object currency of all objects
is the same because no translation will take place during processing.
If this indicator is not set it will result in the object currency being determined by the controlling
area currency.
Transaction currency
In indicating the transaction currency posted sender values are computed separately and the
receiver is updated in the posted transaction currency. In setting this indicator the allocation will
create more records for each receiver and sender relationship. If you don't set this indicator the
allocations will be carried out using the controlling area currency.
5.1 Segments
A segment is a way of grouping together related sender-receiver relationships. Each segment
defines the cost elements and cost centers to be allocated. The receivers can be cost centers,
orders or WBS elements. Each segment has to have one assessment cost element assigned.
Sender cost centers, where the values to be allocated are calculated using the same rules, and the
corresponding receiver cost centers, where the tracing factors are determined using the same
rules, are combined in a segment.
The segments are processed sequentially during an allocation run.
Sender values
Sender values are either actual or planned. If not the total amount, but a fixed predefined amount
or percentage should be allocated it can be defined here.

Tracing Factors
Tracing Factors: The tracing factors within a segment control how the system will compute
allocation. The system has four possible tracing factors:
Variable Portions - this tracing factor computes the allocation from the total file. In order to tell
the system which totals file to access, the appropriate field group must be chosen. The field
group indicates what the allocation base is for the segment. The following groups are
available:actual costs, planned costs, actual consumption, planned consumption, actual statistical
key figures, planned statistical key figures, actual activity, planned activity
Fixed Amounts- within the tracing factor screen the receivers are selected and charged directly
with a fixed amount. The amount credited to the sender is derived from the total of the receiver
debits.
Fixed Percentages - the value form the sender is allocating according to the percentages on the
receivers. The percentage value must not exceed 100. Where the percentage value is less than
100 the remainder stays on the sender.
Fixed Portions - the value form the sender is allocated according to the total number of receiver
portions. Unlike the percentage allocation the value can be a maximum of 999.99.
Allocation Base
The use of allocation base only arises of the tracing factor '1' - variable portions is chosen. Then
it is important to decide which of the field groups will be used to make the most meaningful
allocation. If the field group entered is incorrect it may override any selection criteria chosen
(e.g. if the field group actual costs is used but with a statistical key figure entered in the selection
criteria the statistical key figure will be ignored. The allocation will be made on the basis of
actual costs present on the receivers.)
Use of Statistical Key Figures in Assessments
There are two types of statistical key figures within SAP: a fixed value and total value key
figure.

The fixed value key figure (type 1) indicates that a key figure is fixed from the initial
month for all subsequent months of the current fiscal year.

A total value key figure (type 2) indicates that the amount of the key figure is set for the
respective month and not carried forward to the subsequent months.

Statistical key figures can be incorporated in assessment cycles when the allocation is based on
ratios like headcount square footage, telephone units etc.
6. Processing Allocations
Cycles can be processed directly on-line or as a background job. They can be processed in a test
mode or an updated mode and with/without a detailed list display. Usually allocation cycles are
processed at the end of each month for the period that has to be financially closed.

The use of background jobs is recommended however it is imperative that these jobs are
scheduled after all the statistical key figures have been input into the system.
If errors are found after the cycle has been run, provided the CO posting period is still open, the
cycle can be reversed. It can be corrected if necessary and re-executed. This generates more
records (one record for each posting, one for each reversal) on the database but is the safest way
to perform corrections as no direct posting is permitted on assessment cost elements

Contents

1 Introduction
2 Steps
2.1 Set up Planning Profile - t-code OIF2
2.2 Set up Revenue Profile - t-code OIF3
2.3 Enable use of WBS with Investment Program
2.4 Update Asset screen layout to accept WBS
2.5 Enable statistical posting of acquisition transaction to WBS
2.6 Define Version/Approval Year
2.7 Define Users for Investment Program/Position - t-code OPS6
2.8 Modify/Create Investment Profiles
2.9 OPTIONAL if NOT using statistical WBS on Asset
2.10 Appropriation Request type
2.11 Set up number ranges for Appropriation Requests t-code IMAN
3 Examples
4 Conclusion
Introduction

This describes the configuration of Investment Management in the SAP 4.6c environment. This
does not include the configuration for use with Internal Orders. Also, I have not fully tested
Appropriation Requests, as our users do not desire to use that functionality at the moment.
Note on assigning statistical WBS to the PO directly: SAP allows using the stat. WBS on the
asset for all capitalization, or putting it on the PO and leaving it blank on the asset. The problem
with putting the WBS on the PO is that it assumes the business user will correctly assign the
right stat. WBS in addition to recording the asset. We decided to assign on the asset in all cases,
as this limits that task to the accountants and therefore should increase the accuracy of that part
of the process.
Set up Planning Profile - t-code OIF2
Future timeframe allowed field defines how many years out planning can take place.
Set up Revenue Profile - t-code OIF3
1.

Enable use of WBS with Investment Program

Allow assignment within WBS - t-code OPUK

1.
2.
1.
2.
3.
4.

Scroll to field RAIP1-PRNAM 'Investment Program' and choose radio button

'Input' to make it available
Allow display in WBS detail screen - from SPRO, menu path Project System - Structures
- Operative Structures - WBS - User Interface Settings - Layout of WBS Detail Screens - Define
Layout of WBS Detail Screens
Scroll down to Project Profile(s) that will be used with IM
Double-click on Control tab
Highlight items 17 and 18 on the right, and arrow them over to the left (works
similarly to screen layout variant changes)
Save these changes to transport using method in OSS note 304386 (menu paths on
the note are slightly out of date but work OK)

Update Asset screen layout to accept WBS

Determine which screen layouts are assigned to asset classes that will be used in IM SPRO - Asset Accounting - Organizational Structures - Asset Classes - Define Asset Classes
2.
Update Screen Layout rule - SPRO - Asset Accounting - Master Data - Screen Layout Define Screen Layout for Master Data
1.

Enable statistical posting of acquisition transaction to WBS

Steps 1. and 3. required no changes in our installation
1.

1.
2.
3.
4.

Verify that transaction types are relevant to budget - SPRO - Asset Accounting Transactions - Acquisitions - Define Transaction types for Acquisitions
Define Asset Reconciliation balance sheet accounts as cost elements - t-code KA01
Note: Category is automatically set to 90
Verify Field Status Group to allow additional account assignment to WBS - t-code FS00
with asset account
Click on create bank/interest tab
Double-click on FSG
Double-click on Additional Account Assignments
Verify that WBS is Opt. entry

Define Version/Approval Year

SPRO
Investment Management
Investment Programs
Planning in Program
Versions
Assign Version to Approval Year or Program Type

2.
1.
3.

Define Users for Investment Program/Position - t-code OPS6

Modify/Create Investment Profiles

SPRO

Investment Management

Projects as Investment Measures

Master Data

Define Investment Profile

1.
Update existing IP; under Depreciation Simulation, check 'comparison with actual
settlements' so that actuals will show on the depr. sim. screen of the WBS
2.
Copy existing IP for use with statistical WBS
1.
Discuss with business the settings for distribution rules, comparison values (plan
or budget) for comparison value)

OPTIONAL if NOT using statistical WBS on Asset

OPTIONAL if NOT using statistical WBS on Asset, but directly adding stat WBS to PO (not
recommended)

1.
2.
1.

SPRO
Materials Management
Purchasing
Account Assignment
Maintain Account Assignment Categories
Change the Asset Category (double-click)
Make Project a required field by selecting the radio button in the Reqd field column
Appropriation Request steps (not tested)

Appropriation Request type

SPRO
Investment Management
Appropriation Requests
Master Data
Control Data
Maintain Appropriation Request types
Set up number ranges for Appropriation Requests t-code IMAN
Note: Number range assignment impacts creating WBS or internal order from Appropriation
Requests - test carefully if that is desired.

1.
2.
3.
4.
5.
6.
7.

Click on Groups (pencil icon)

Choose menu path Groups - Insert
Assign Group Name in 'Text' field
Assign range in 'New interval' fields
Save, then highlight new range and click select button (to right of element/group button)
Click element/group button, then Save
Choose menu path Interval - Transport

Examples

Conclusion

IM provides useful combined reporting of WBS that are in progress, PO commitments, and
assets that have been capitalized. The steps above outline configuration in 4.6c. Note that internal
orders can be used, but that functionality is not outlined above as we do not use internal orders
for Capital projects. Likewise the Appropriation Request steps I know about are outlined, but as
we do not use that functionality I have not tested it. For screenshots, please feel free to write the
author Tony Vernon at tonyvernon4@gmail.com.

https://134.27.176.193/owa/
Account determination
Now the sales order process is completed. Let's take a closer look at it from the accounting
perspective.
4.1. Document flow
You find the document flow from the menu Environment in every phase of the sales order
process. There also a button for it. The document flow looks slightly different depending on the
phase, but if you open it from the sales order, you will see all the phases and sub phases.

The document flow ties together all the documents of the sales process. Put the cursor on the line
and click on 'Display document' to open the document.

Accounting documents are created at the goods issue and billing. The text 'not cleared' beside
accounting document means that the invoice is not paid.
The integration points are following:
Sales order: the profit center is determined and copied to the following documents
Goods issue: posting to inventory and inventory change accounts.
Invoice: posting to revenue account, accounts receivable and tax accounts

4.2. Sales order

Move from the document flow to the sales order. Place the cursor on the Standard Order and
click the 'Display document'-button.
The sales order does not create any documents to accounting. However, some of the account
assignments are decided at this point. There are accounting relevant fields on both header and
item level. The item level fields are more relevant. The sales order items can be splitted into
different deliveries and invoices and the accounting information follows the items. Generally you
could say that the header level information is customer related and item level is product related.

Select the sales order line item and then menu Goto / Item / Account Assignment (or double click
the item row and open tab Account Assignment).

The profit center is defined at sales order level. Depending on the system settings the profit
center comes either from the material master (View: Sales:General/Plant) according to delivering
plant (transaction MM03) or from the Sales order substitution rules defined in profit center
accounting (transaction 0KEL). With these rules the profit center can be defined for example
according to sales organisation, product or customer characterics.
If no profit center is found and COPA is active, the dummy profit center is used. If COPA is not
active, the profit center is left empty and you will get an error situation in billing.
4.3. Goods issue posting
In the Document Flow place cursor on the GD goods issue: delvy document and click on
'Display document' -button. This takes you to the MM Material document.

The movement type for sales delivery is 601.

Click the accounting documents button.

A list of created accounting documents is shown. Click on the Accounting document.

In this example the goods issue posting looks like this.

The stock posting goes to a balance sheet account and the offsetting posting to inventory change
(P&L account).
The posting is created automatically at goods issue and the system has to find somewhere all the
necessary information for the posting. The accounts used are determined in MM automatic
account determination. The account assignments of the offsetting posting depend on the settings.
If the account is not defined as a cost element the posting goes to the profit center from the
material master.
If the account is a cost element, a cost object becomes mandatory. Usually the system looks for it
in the CO automatic account assignment table OKB9. In this example the cost assignment is a
profitability segment and the posting rules are defined in COPA IMG.
4.4. Revenue Posting
Move from Document Flow to the billing document. Place cursor over Invoice and click on
'Display Document'.

In the invoice you can find accounting information from several places. There is a direct link to
accounting documents. The Accounting button lists all the accounting documents created. From
the Environment menu you find Account determination Analysis, which lets you analyze how the
account determination is made. On both header and item level you will also find lots of
accounting relevant data.

4.5. Account determination configuration

4.5.1. Goods issue - MM account determination
At goods issue the owner of the goods changes and the stock change must be recorded. It is
posted in the balance sheet to the inventory account and the offsetting posting (cost) goes to a
profit and loss account Inventory changes.

Account assignments
The inventory account is a balance sheet account. In Profit center customizing you can define
whether you transfer the material stock balance to Profit Center Accounting periodically or online. The profit center always comes from the material master according to the delivering plant
(tr. MM03, Sales: General/Plant).
The account assignments of the offsetting posting depend on how the account is defined. If the
inventory change account is not defined as a cost element, the posting goes to a profit center.
Here the profit center is copied from the sales order. It can come from a substitution rule or from
the material master.
If the account is defined as a cost element, it requires a cost assignment, which can be a cost
center, order or profitability segment. As the good issue posting is an automatic posting, the
system has to find the assignment automatically. It looks for the assignment in CO automatic
account assignment table OKB9. You can also define Automatic assignment to a COPA
profitability segment (COPA-IMG: PA transfer structures, tr. KEI2), which is the case here. .
Accounts
The accounts are defined in MM customizing under Valuation and account assignment. MM
account determination is not a 'straight forward -task. SAP has has made Wizard to assist in this.
Here I will only show you how to find the configurations for our example.

Start the 'Configure automatic postings under 'Account determination without the Wizard'. If you
get a pop up for missing account grouping code, press cancel. CLick the 'Simulation' button.

Enter the plant (1200), material number (R-1180) and movement type 601 Goods issue Delivery.
Press enter and then click the Account Assignments button.

On the simulation screen the system combines all the relevant information and shows the
accounts it has determined.

The MM account determination is based on transaction technique. In inventory postings there is

always the transaction Inventory Posting (BSX). It defines the inventory account, which here is
310000. The system finds this account according to the transaction and valuation class of the
material.
The transaction for offsetting posting is GBB 'Offsetting entry for inventory'. This transaction
has an extra specifications called Account Modification key, which has a different meaning
depending on the procedure. The system finds this account according to the transaction, account
modification key and valuations class.
If you are interested on how the account determination works, SAP Press has published a book
about SAP Account determination. In book reviews you find my review of this book.

4.5.2.Billing - SD account determination

The accounting document created at SD billing contains typically following three lines:
- Customer posting in accounts receivable and simultaneously posting to reconciliation
account in general ledger
- Sales revenue posting
- Tax posting
There can also be other accounts like discounts. Let's study the origin of these postings.

Customer line / reconciliation account

The first row in the posting is the customer line. It shows the customer number and makes an
open item posting to accounts receivable. At the same time it makes a posting in general ledger
to a reconciliation account. Double click the customer line and you can see the reconciliation
account.
The main rule is, that the reconciliation account comes from the paying customer's master data.
For special cases, it is possible to use an alternative reconciliation account. Settings for that can
be found in FI and SD customizing.
The reconciliation account is a balance sheet account and has no other account assignments.
However, you can transfer the posting to a profit center. This does not happen automatically. At

period end you must first Calculate Balance Sheet Readjustment in FI closing (tr. F.5D9 and then
transfer the postings in profit center accounting (tr. 1KEK).
Revenue posting
The setting for revenue account are defined in SD customizing.

In spite of the title 'revenue account determination', this is where the settings for all other
accounts are made as well.
Select option Assign G/L accounts.
SD account determination is based on condition techniques. The system reads the conditions
sequentially searching for a match. In this IDES case it will find the match on the second level in
condition CustomerAccountGroup/AccountKey.

Click on the second row.The table looks baffling, but is really is not that complicated.

In the first column you have the appilication. It is always V, which comes from the german word
for sales. Next you have a condition type. There are two alternatives. You choose KOFI, if the
posting goes to accounts that in CO are revenue elements (cost element types 11 and 12) and the
account assighment is profitablity segment (COPA) or profit center. This is usually the case for
revenues and discounts. KOFIK is used if you want to post to an account that is a cost element
(type 01) and the account assignment is cost center. In the third column you give the name of
your Chart of Accounts. In the fourth column enter the name of the Sales Organisation. In the fift
column you give the Account assginment group of the paying customer. Next comes the Account
assignment key. This is defined in SD customizing and is in SD pricing assigned to SD
conditions like sales price.
You don't anywhere define the company code in whose accounting the entry is made. This is
determined indirectly via the sales organisation, which is assigned to the company code.
The Account assignment groups for customers and materials are defined in SD IMG / Account
assignment/costing customizing under 'Check masterdata relevant for account assignment'.

Tax posting
The tax account determination is not done in SD. The account is taken from FI tax account
definitions. The tax account is a balance sheet account and has no account assigments.
1. Create sales order
To what extent should the accounting people know selling and SD? Especially, when SD is such
a huge application. A good compromise is to know the integration points between Fico and SD.
The best way to learn to understand the integration, is to follow the process. In this presentation
you learn how to create a sales order, delivery and billing document. After that you can analyze
the integration.

The sales order process can be found in SAP logistics menu (transaction VA01).
Choose first an Order type. The order type for this exercise is OR Standard Order. The customers
and products are assigned to Sales organization. You can enter the sales organization in the initial
screen or later. Here fill in the following: sales organization: 1000, Distribution Channel: 10,
Division: 00. The combination of sales organization, distribution channel and division is called
Sales Area.

1.1. Integration to accounting and controlling

The first integration point to accounting is here. The sales organization is assigned to the
company code and plant. The sales organization 1000 is assigned to company code 1000. This
means that the revenue and account receivables will be posted to the accounting of company
code 1000. Press enter and you will come to the overview screen. Enter the customer number
1000 in the Sold-to party. Note, that the customer must belong to Sales Area 1000-organization
1000.

Customer 1000 has several delivery locations and you must select a Ship-to party. Select 1000.

Here is also an integration point. The Ship-to party determines the tax code and country.
1.2. Sales order items
Enter the product R-1180 and order quantity 1 pc. Press enter. At this point the system checks
that the product is allowed in the sales area and that it is available in stock.

If you had tried to make an order of 1000 pc, the availability control would notify you, that this
is not possible. In a demo environment this can often happen, as there is no production. You can
create stock coverage for the exercise in MM.

If you come to this screen, the arrow buttons are gray. You get back to the sales order screen with
One-time-delivery-button.

The order is now complete. Open the tab Shipping. Note the Delivery date and shipping point.
You will need this information for the delivery.
1.3. Account Assignment
Double click the item line. Open tab Account Assignment. No postings to accounting are
generated from the sales order, but the profit center is determined here and it cannot be changed
later. Also the profitability segment is shown. It depends on your COPA-settings whether COPA
is updated with sales order items, billing items or both.

Where does the profit center come from? In this case the profit center is taken from the material
master Sales/General/Plant Data -view for the delivering plant (transaction MM03). Another
possibility would be that the profit center is determined from the sales order substitution rules.
With substition rules you can define the rules and the profit center according to your needs
(transaction 0KEL). If no profit center is found and COPA is active, the profit center will be
dummy profit center. In case COPA is not active and profit center accounting is and there profit
center is not found from the product or substitution rule, it will be left empty. This will cause an
error in billing. The profit center is copied from sales order tables to delivery and billing tables
and cannot be changed later.
Save the sales order. Note the number.
2.1. Change sales order, delivery

Go back to the menu and choose VA02 Change Sales order. Go into the order and select from the
menu Sales Document option Deliver.

The initial screen for delivery opens. The information needed to create a delivery should have
been copied from the sales order.

If you get an error message, go back with green error and enter the correct shipping point,
delivery date and order number.
Confirm with enter
Open the picking tab. You can see that the picked quantity is locked. This means that this product
cannot be picked in this screen, a WM transfer order is needed.

2.2. Create transfer order

You can create the Transfer order from the menu Subsequent Functions, Create Transfer order

You have to first save the delivery. Note the delivery number

Press enter on the initial screen Create Transfer Order.

Press button Generate To Item. Save the Transfer order.

Note the Transfer Order number

2.3.Post goods issue
Go back to the menu and choose from Shipping and Transportation / Outbound delivery /
Change (transaction VL02N)

Your delivery number should come defaulted, if not enter it. Confirm with enter.

Open the Picking tab. You can see that the Overalla WMstatus has changed and the is 1 pc in the
both the delivery and picked quantity.

2.3. Accounting issues

All this has so far been irrelevant of accounting perspective. The most important transaction
remains to be done, the goods issue posting. The goods issue date is the posting date for the stock
postings. At this point the stock balance is changed. The Goods issue date is in the standard
system also the billing date. If you press the Post Goods Issue button here, the date will be the
current date (19.11.) although the planned goods movement date is first 27.11. You can also
specify the Actual good movement date.

Save the document.

From integration point the delivery creates accounting documents.
3.1. Create billing document
When the delivery is completed, the order can be billed.

Go back to the menu and select from menu Billing / Billing document Create (transaction VF01).
In the document field the delivery number should be defaulted. If it is not, Enter your delivery
number.

Press enter and you will see the invoice to be created. Save the document. Note the invoice
number.

3.2. Display billing document

Select Display from the Billing document menu.

Press enter on the Display Billing Document screen and look at the created invoice. Note that the
payer is not the customer 1000, but customer 1050. Double click on the item line and open tab
Item partners.

3.3. Accounting documents

From integration point billing creates the revenue postings and updates accounts receivable.

The posting goes to company code 1000, which was assigned to the sales organiztion 1000. The
used reconciliation account can be seen behind the customer line. The profit center is 1500,
which has come from the material master. Look also at the other accounting documents.
3.4. Account determination analysis
From the invoice display you can analyse at the account determination. Choose Revenue
accounts.

Here you can see the SD condition types and the accounting information generated. PR00 is the
condition for sales revenue. Open first level 10. This tell you, that the account determination
could not be done because the account assignment group is missing.

The other condition shown here is factoring discount. It is an invoice list condition and does not
generate postings for the invoice. Open level 20. Revenue Account 800000 is determined. All the
condition steps have valid values.
This is the place where you can examine the causes of accounting errors.